HomeMy WebLinkAboutPR 15600: PORT ARTHUR DOWNTOWN REVITALIZATION BOARDP.R No. 15600
UPDATED 11/12/09 sb
RESOLUTION NO.
A RESOLUTION ESTABLISHING THE PORT ARTHUR
DOWNTOWN REVITALIZATION BOARD AND
APPOINTING THREE (3) MEMBERS TO THE BOARD OF
DIRECTORS
WHEREAS, the Port Arthur City Council received a Port Arthur Downtown
Revitalization Strategy Report from the International Economic Development Council
(IEDC) attached as Exhibit "A"; and
WHEREAS, one of the recommendations of the report was to establish the Port
Arthur Downtown Revitalization Boazd of seven (7) members; and
WHEREAS, the composition of the boazd of directors shall be; City of Port
Arthur three (3) seats; Port Arthur Economic Development Corporation two (2) seats;
Chamber of Commerce one (1) seat and Lamar State College Port Arthur one (1) seat;
and
WHEREAS, the City Council will confinn the nominations and finalize the
appointment submitted from each entity; and
WHEREAS, the term will be for a period of three (3) years and the seats will be
staggered; and
WHEREAS, the City Council wishes to appoint three (3) members to the Port
Arthur Downtown Revitalization Boazd; and
WHEREAS, the Economic Development Board wishes to appoint Vicki Derese
and Kerry Thomas as Directors to the Port Arthur Downtown Revitalization Board; and
WHEREAS, Lamaz State College Port Arthur wishes to appoint Conrad Cooper
to the Port Arthur Downtown Revitalization Board; and
WHEREAS, the Chamber of Commerce needs to make their nomination to the
Board.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble aze true and correct.
Section 2. That the Port Arthur Downtown Revitalization Board is herein
established.
PR 15600
Section 3. That the term of office shall be three (3) yeazs and shall be
staggered, effective immediately.
Section 4. That the purpose of the Port Arthur Downtown Revitalization
Boazd is to work with City Council to implement a revitalization strategy plan for
downtown Port Arthur.
Secfion 5. That the Port Arthur Downtown Revitalization Boazd shall be
made up of seven members that bring expertise in finance, real estate development,
retai]/commercial attraction and government relations and include professionals from the
petrochemical industry and senior management from major private sector employers.
Section 6. That and
aze hereby appointed to the Port Arthur Downtown Revitalization Boazd.
Section 7. That Vicki Derese and Kerry Thomas aze hereby appointed to the
Port Arthur Downtown Revitalization Board as nominated by the Economic
Development Corporation.
Section 8. That Conrad Cooper is hereby appointed to the Port Arthur
Downtown Revitalization Boazd as nominated by Lamar State College Port Arthur,
Section 9. That the Chamber of Commerce needs to make its nomination to
the Boazd.
Secfion 10. That a copy of the Resolution be spread upon the minutes of the
City Council.
READ, ADOPTED AND APPROVED on this day of _
A.D., 2009, at a Regular Meeting of the City Council of the City of Port Arthur, Texas,
by the following vote:
AYES: Mayor
NOES:
MAYOR
PR 15600
ATTEST:
CITY SECRETARY
TO FORM:
ACTING
APPROVED FOR ADMINISTRATION:
C:11 Y AGER '
PR. 15600
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Port Arthur Downtown
Revitalization Strategy
Final Report
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June 2009
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!Cl)NOMIC t)kVELUPMkNI
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Submitted to:
City of Port Arthur
and
P
ort Arthur Economic Development Corporation
1
June 2009
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
International Economic Development Council (Washington, DC)
' Staff:
Lauise Anderson, Sr. Economic Development Associate
International Economic Development Council (Washington, DC)
Research Support
' Edtlie Bates, Research Intern
Nancy Moorman, Research Intern
1
Port Arthur Downtown Revitalization Strategy
Table of Contents
I. INTRODUCTION AND OVERVIEW .............................................................................1
DOWNTOWN REVITALIZATION DISTRICT ....................................................................... ..................... 1
'
I I. KEY OBSERVATIONS ................................................................................................3
ASSETS AND STRENGTHS ............................................................................................
CHALLENGES AND CONSTRAINTS ................................................................................. ..................... 3
..................... 4
III. RECOMMENDATIONS AND IMPLEMENTATION STRATEGY ......................................6
A~ ESTABLISH A DOWNTOWN REVITALIZATION ORGANIZATION ........................................................... 6
B~ DESIGNATE THE DOWNTOWN REVITALIZATION DISTRICTASATAX 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 DF LIFE ...................................................................................................... 32
IV. SUMMARY AND CONCLUSIONS .............................................................................37
V. APPENDICES ..........................................................................................................39
VI. BACKGROUND REPORT .........................................................................................99
^ IEDC Technical Assistance Report I
^ Port Arthur Downtown Revitalization Strategy
^ I. Introduction and overview
The International Economic Development Council (IEDC) has been retained by the Cit<~ of
Port Arthur, Texas, and the Port Arthur Economic Development Corporation (PAEDC) to
develop a revitalization strategy- for dou-ntou-n Port Arthur focused on implementation. Port
Arthur's downtown has seen significant disim-estment over decades and continues to be in
poor condition in spite of regional economic growth due largeh• to considerable im~estment
by the petrochemical industry- in recent }ears. The city and I'AI'.DC want to take advantage
of this industry's anticipated X12 - 15 billion imrestment in the region over the next three to
five }ears to grow the Port Arthur econom}- and improve quality of life for its residents,
particularly by revit<3lizing the downtown and surrounding neighborhoods. ~Ianv city
' stakeh~~lders believe that a unique window- of opportunity- is no~v open to revitalize this area.
In order to assist the city and PAEDC with 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, Dountou-n Development District of New Orleans
• G. Lamont Blackstone, President, G. Lamont Blackstone and Associates
• Dave ~~'ilcox, Independent Consultant
• Louise Anderson, Sr. Economic Development Associate,lF,DC (staff)
• Swati A. C7hosh, Sr. Economic Development Associate, IL-'DC {staff)
In preparation for the site visit, IEDC staff compiled a background report for the team,
which is attached at the end of this report. This Final Report builds on those
' recommendations and provides additional details as well as relevant case study examples to
demonstrate wags in which other communities have implemented downtown revitalization
projects.
The objective of this report is to present realistic strategies for downtown revitalization ~ehile
outlining implementatinn guidelines. Responsible agencies, resources needed and suggested
timelines have been included where possible. The IEDC team believes that the city
ultimately is responsible far implementing the recommendations provided in this report,
starting with the creation of a new- downtown public-private partnership and development of
a downtown plan (discussed in detail later). PAEDC will be a strong partner throughout the
process as u-ell.
' Downtown Revitalization District
Tlus 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 Callege (i.e., from Houston avenue on the west to Lake Charles Avenue on
the east). The northern border of this Downtou-n Revitalization District is 9`h 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 revitalization district so as not to restrict
redevelopment to one side of the street.
. IEDC Technical Assistance Report 1
n
1
1
Port Arthur Downtown Revitalization Strategy
' This proposed district is designed to be much larger than just downtown for mans- 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 ('I'll~~
' district {discussed later) can be established to capture the benefit in the broader area and
alloul for larger ta.~ increment collections to be invested into do«-nto«~n re~-italization.
Second, Lamar State College is an important partner in doivntourn revitalization. Even
though it is located outside the downtown and cannot be 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 lots =approx. 1,820
• Gross area (including roads, sidewalks, etc.) =approx. 49U acres or .75 square miles
• Net area = 7 5°..i~ of gross acres = approx. 365 acres or .57 square miles
• leverage size of block = approx. 2 acres
• Current major employers in the area = Cin- of Port Arthur, Sub-District Courthouse,
Post Office, Lamar State College Port Arthur
^ IEDC Technical Assistance Report 2
Figure 1: Downtown Revitalization District Boundaries
Port Arthur Downtown Revitalization Strategy
II. Key Observations
' Port Arthur stakeholders agree that now is an opportune time in the development efforts of
the cin•. Unprecedented levels of private im-estment are expected in the local economy over
the next three to five years. This can be combined with nee;-1~~ authorized 4b tax 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 ~~'estside. In addition, in interviews with
t the IEDC team, Port Arthur stakeholders recognized the importance todati~ of a vibrant
community in attracting talented workers and in inspiring }-Dung people who grew up in the
cin~ to sta~~ or return. Below is a compilation of the key strengths and challenges ohsen•ed by
nc~ IEDC team during the site visit and follow-up conversations.
Assets and Strengths
Investment by Industry
The petrochemical industry «-ill be investing an estimated $12-15 billion in the
rel,~ional economy around Port Arthur through plant upgrades and construction of
nezv facilities over the next three to five years. ~~-hile the investments will be made
outside of the cirt~ limits, they will create 300-400 permanent jobs for the regrion.
Furthermore, the multiplier effect of the investment will create additional jobs and
development opportunities. ror example, a number of hotels have been built in the
past couple of }ears in Port Arthur to provide temporary housing to construction
workers im-oh-ed with the refiners- expansions. Increased demand for housing,
schools, ret~~il and sere-ices is also anticipated.
Assets Available
The waterfront and availability of land along it are tremendous assets in revitalization
efforts. The cite has demolished a number of dilapidated buildings in the do~cntourn
area, leaving parcels available throughout the downtown for development projects of
~~arious h'pes. Downtown also has several historic properties (including one on the
National Historic Register), providing opportunities for accessing federal and state
funds for historic presen-ation as part of revitalization efforts. In addition, Lamar
Scate College is a thriving institution and is planning modest expansion projects to be
located close to downtown as well.
Regional Economic Base
As in man}• Gulf Coast communities, the petrochemical industry is a major
c~ ~mponent of Port Arthur's economic base. The industry has expanded in the region
in recent years and continues to do so. The industn~'s strength in the Port Arthur-
Beaumont region has helped it to experience relative economic stahility and modest
growth despite the global economic recession so far.
^ IEDC Technical Assistance Report 3
Port Arthur Downtown Revitalization Strategy
Confluence of Commitments
Civic leaders, citt- council members, business o~°ners, and other stakeholders
interviewed b}- 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 pro~dde funding for redevelopment projects. The
city also has indicated that funds could be made available for redevelopment and
revitalization projects for downtown and Vi'estside. There is a gro~~ting 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 25,000 people from around the
Beaumont-Port Arthur region and beyond over a 3-day period each year. Other local
cultural festivals and celebrations such as the 1\lercado Days, Jazz Festival, and Lotus
and Bamboo Dav also attract visitors 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
,-~rthur and downtown.
Challenges and Constraints
History of Disinvestment and Resulting Blight
Downtown Pott Arthur used to be a vibrant place for people to work, live and be
entertained. However, over the past several decades, businesses and residents have
moved out of the downtown and the cit<- in general to outlying areas fnr higher
dualist- 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 with the move of its administrative
offices out of downtown to another location in the citti). This has left many
abandoned and vacant properties in do~tmtown, mostly in disrepair, creating a
climate c>f neglect that hinders new private investment in downtown.
The cit}- 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 propern• values in
the surrounding area.
' Geographically Constrained Market Area
~jUestside and do~rntown lie on the southern side of Port Arthur, bounded b}~ the
Sabine-Neches Pass Channel to the south. The refineries are clustered on the west
' and north sides of the city. Therefore, accessibilinT co the area is primarily chrnugh
1\~ood~~~orth Blvd running north-south, and Gulfs;-a~- Drive and Procter Street
running east-west; there is no direct highway access. Limited eonnectivit}- with the
^ IEDC Technical Assistance Report 4
Port Arthur Downtown Revitalization Strategy
rest of the cit}~ and loss of businesses downtown has resulted in reduced traffic and
increased difficulties in retaining and attracting much-needed retail services in this
area.
Population Loss
The cities of Port Arthur, Beaumont and Orange, and Jefferson Count- have been
losing population over the last several dears. People appear to be moving to outl`-ing
areas far larger land parcels, better services and newer homes. As residents have
moved out, businesses and sernices have moved or closed as well, and the cycle of
abandonment continues.
Public Safety Perception
The blight in downto~~m and ~~'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 tact, 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 \~'estside were later included in a ~~'eed and Seed site established outside of
drnvntown.
Move of the School Board Administrative Offices from Downtown
The Port Arthur Independent School llistrict (PAISD) currently has its
administrative offices downtown, in addition to a bus ~~ard. In conjunction ~~~th 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} fram 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 sen~ices 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 PAISD and enlist it as a partner in building a
critical mass of acti~-it,• 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 b~- staff and teachers.
1
^ IEDC Technical Assistance Report 5
^ Port Arthur Downtown Revitalization Strategy
^ III. Recommendations and Implementation Strategy
Based on the above-mentioned strengths and challenges, the IEDC team believes that the
revitalization of Port Arthur's downtow>n will come from a strategy that rnmbines long-term
planning, short-term action steps, and financial incentives to attract private-sector
im-estment. To achieve this, Port Arthur (i.e., the citE•, PAEDC and other downtown
stakeholders) must develop a roadmap for downtown development that builds on existing
assets and addresses w~eaknesscs.
Rernmmendations are organized under two separate categories -organizational and physical
development. The organizational recommendations provide 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 I~iarketing Efforts
4. Increase Housing Opportun-ties DOw'ntOw"n
5. :attract Retail Activity- to Downtown
G. lmprave QualinT of life
The recommendations are summarized at the end of the report according to resources
needed to implement and priority-. Please refer to Section IV far these details.
ORGANIZATIONAL DEVELOPMENT RECOMMENDATIONS
a) Establish a Downtown Revitalization Organization
Revitalizing downtown Port Arthur wtill be a long process, perhaps 10 to 15 rears. It is
.•ital that this long and complex undertaktng have its own dedicated management to
shepherd the process. Therefore, a new organization should be established with the
explicit mission and goals of revitalizing downtown, pro~7ding continued leadership and
management, and keeping stakeholders engaged in the process throughout.
' The new organization should be set up as apublic-private partnerslvp to bring an array
of expertise, leadership and resources to the table. This new arganization is referred to as
the Downtown Public Private Partnership (Downtown PPP) throughout the remainder
of the document. The Dolvntown PPP should be an independent entity(outside of cite-
go~-ernment), possibly anot-For-profit organization, to allowT fle~ibilin- in seeking and
leveraging private sector resources, as well as slvelding the organization from undue
political influence. Bur., the Downtawn PPP will work closely w7th the public sector i.e.
the city and PAEDC, in implementing downtown projects at all limes.
Broad-based buy-in from all dawntow-n stakeholders, from the very beginning, will be
critical to the continued success of the never organization. Getting key stakeholders
im-olved in the leadership of the new arganization through a process of nominations to
^ IEDC Technical Assistance Report 6
t
Port Arthur Downtown Revitalization Strategy
the board of directors (described below in detail) is one u°ay of achie~ring this objective.
~~1ile it is necessary to have representation from a variet}• 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 effectiveh~. Therefore, the IEDC 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. An active and diverse board
Bringing in the right leaders to the governing directors can bring the organization:
body will ensure that the mission is balancc~l . Knowledge and expertise ab
with the external en~~iranment. The practical communit~* development and
means b}' which a h~~;lyd acc~m~~li~lle~ flu` corporateu~orld
includes: . Leadership and managem
• Financial oversi,~~hs techniques
• Strategic planning • Access to financial capital throe
• Raising funds local, regional, national
• Developing polio- international networks
• Communin• relations • Status and political clout
1 • 1\tonitoring and evaluari~,n
• Hiring/firing Executi~-e Director
• Development of the I3oard of Directors
• Providing counsels
The 11,:DC team recommends a seven-member board that brings expertise in
finance, real estate development, retail/commercial attraction and government
relations to the Downtown PPP. IEDC recommends the follouring composition for
the board of directors:
• CihT of Port Arthur - 3 seats, u-ith at least one appointment from the
petrochemical industry such as the Port Arthur Industrial Group
• PAP.DC - 2 seats, with at least one appointment from the petrochemical
industry 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. Each nominating entit}~ will provide three nominations for each
hoard seat. The nominations ~~-i11 be confirmed by the Port Arthur City Council from
among the nominations submitted. Board members u*ill be appointed for staggered,
fixed terms of three years.
' Nummel, Joan M. Starting and Running a Nonprofit Organization, Second Edition, (Minneapolis, University of Minnesota Press,
1996)
^ IEDC Technical Assistance Report 7
tI
Port Arthur Downtown Revitalization Strategy
It is important to note the significance of engaging major private sector emplo}•ers in
the downtown revitalisation process. ~~+'hile the petrochemical industry is the major
pri~-ate 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 P~•~EDC maj- 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':
t
L
Cl
Board Structure Overview
Total \umber of 7 Seats
Board ~Iemhers
Terms Sr ered, Fixed Term of Three (3) years
City of Port Arthur Total: 3 seats, nominated b~- the Cin~ Council
- Required that 1 seat be filled by senior
management from major priz-ate sector employers.
Senior management from the petrochemical
industn-, perhaps the Port Arthur Industrial
Group, should be appointed for the seating of the
first board
Port ryrthur L'DC Total: 2 seats, nominated b}• the F.xecuti~•e Director and
the Board of Directors
- Required that 1 seat be filled by senior
management from major private sector emplo~•ers.
Senior management from the petrochemical
industry, perhaps the Port Arthur lndustrial
Group, should be appointed for the seating; of the
first board
- Board of Directors can self-nominate
Chamber of Total: 1 seat, nominated by Executi~re Director and
Commerce Board of Directors
- lsecutive Director or Board of Directors can self-
nominate
Lamar State Total: 1 seat, nominated bti~ Universit}- President and
College Port Arthur Board of Trustees
- Universin~ President or Board of Trustees can self-
nominate
It will be the responsibilin~ of the nominating agencies to provide qualified
candidates far each board seat that reflect expertise in at least one of the
following areas: finance, real estate devehpment, retail/commercial attraction
and government relations. It ~=ill be the responsibility- of the Cin• Council to
balance the expertise an the board -ensuring that all the above-mentioned
qualifications are represented while finalizing the appointments. Amajority- of
the board members should come from the Port r'~rthur business communin_• and
drive im-estment inter the area.
^ IEDC Technical Assistance Report
8
t
Port Arthur Downtown Revitalization Strategy
In all cases it is expected that the Board ofDirectors will identify with the
mission of the public private partnership and the needs of doivntoum Port
Arthiu as their primary motive for serving on the Board. The representatives
have a legal and tiducian- responsibilit~• to the board and must set aside other
relationships or potential conflicts of interest when sen-ing nn the Downtown
PPP board.
Staggered Term
Board appointments will be for a period of three (3) }ears and the seats will be
staggered. Term length will be determined at the first board meeting through a
lotten~. Two names u-ill be selected to serve one-year terms; two more names will
be selected to sen•e two-}=ear terms; and remaining three members will sense
three-}-ear terms.
Terminations
1~'hile the Cin~ Council will be responsible for contirming the nominations and
finalizing appointments for the Board of Directors, the Cin~ Council u-ill not able
to terminate a board member once he or she has been appointed. r'1 nvo-thirds
majority- vote of the remaining board will be required to terminate a board
member (i.e. a minimum of four af{-irmative votes). The Downtown PPP will
need to establish detailed terms and conditions for board member terminations
in the bylaws.
Organizational Mission and Geographic Focus
The missicm of the Downtown PPP will be to re~ritalize downtown by engaging the
public, private and non-profit sectors in redevelopment projects. The organization
will need to embark on 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 urill he the lead agenc}- in implementing catalytic projects in the
downtown revitalization district. Therefore, any major projects undertaken in the
downtown revitalization district should include the Downtown PPP as a major
stakeholder in planning, design and implementation to ensure alignment of
objectives with larger doumtown revitalization efforts.
In addition to ph~•sical development, tenant attraction and event programming in
downtown, the Downtown PPP can possibh~ engage in the management of the area
in the long term, especiall}- with regards to extra cleaning and safety sen•ices.
Downtown organizations frequenti}• have greater capacities to provide these sen-ices
than over-extended city- governments. The Downtou-n PPP will need to secure
additional funding to provide increased safer}- and cleaning sen-ices.
^ IEDC Technical Assistance Report 9
Port Arthur Downtown Revitalization Strategy
Organizational Management
Dat--to-dav activities of the organization will need to be managed by 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 1/xecuuve Director u-ill he recruited by the board of directors and acts as the
link bern-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 ~~7th the Board of
Directors
• Providing information and ad~~ice to the Board and its committees
• Idenuh~ing prospective sources of funding
• ,kung as an intermedian- betu-een committee chairs and the Board
Staff
The Executive Director will need to hire additional staff to work full-time on
dawntoum issues. However, it is recommended that consultants he hired for the
first 6-12 months far critical functions such as marketing, real estate analyses,
communications and autreach, fundraising, etc. Full-time staff should he hired
once an organizational strategic plan has been created (discussed below), and the
need for staff and levels of expemse has been assessed.
r Office Space and Other Resources
The Dawntou-n PPP should be hosted u.7thin the PAEDC offices, for at Icast
the initial years. The organization will be focusing on organizational capacity-
building during this time. Consultants uTill provide functional area support as
noted above.
i Once staff has been hired, the Downtown PPP should remain co-located u-ith
the PAEDC. This will provide 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 (affice equipment, ere.), and opportunin•
for collaboration and information-sharing among staff members of the ttvo
organizations. In addition, the Do~mtown PPP and PAEDC u-ill work closeh~
with each other an key economic development-related topics, such as the use of
incentives to attract tenants to downtown, business retention and expansion,
~ marketing, etc.
Two different approaches toward organization can be taken:
1. i~fanagement by the PAEDC
2. Hiring separate executive direcmr and staff
' The advantages and disadvantages of these approaches arc discussed in detail belou-.
IEDC Technical Assistance Report 10
Port Arthur Downtown Revitalization Strategy
Management by PAEDC
The Downtowwn PPP will work very closely with the PAEDC, especially given
that PAEDC may spend up to ~?50,000 per rear in downta~wn redevelopment
projects having received voter approval in the recent elections. Being a small
organization «•ith a defined geographic focus, the 1 EDC team recommends that
the daw-to-day operations of the Downtown PPP be managed by the PAEDC.
~~hile different in their missions and objectives, the two organizations can build
synergies through a common interest in do~~mto~wn development, relationships
with kee local and regional stakeholders for economic development of Port
Arthur, and the ability to achieve economies of scale through combined
operations.
Day-to-day affairs of the Downtown PPP, under this approach, will be overseen
by the Executiie Director of the PAEDC - i.e., the same Executive Director will
be responsible to two separate boards of directors. This will alloEV the
Downtown PPP to capitalize on the existing relationships and capacity of the
PAEDC, especially in the short term, to undertake critical strategic planning,
board development and organizational capacin~-building.
PAEDC ~~-ill share staff resources uyith the Downtown PPP in certain critical
areas such as administrative support, legal counsel, accounting, etc. Obviously,
costs for such senyices will be shared betuyeen Downtown PPP and PAEDC.
Such costs can be ascertained through a negotiated management fee that the
Dotwnto~~•n PPP will pay the PAEDC for a certain set of services.
The h,ecutl~ e Director maw hire additional staff to work full-time an 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 far full time staff should be evaluated upon completion of the strategic
planning pracess.
The chart below outlines the relationship of the new downtown organization to
the city and PAEDC under this organizational model.
1
.~
e
IEDC Technical Assistance Report
11
Port Arthur Downtown Revitalization Strategy
Hiring Separate Executive Director and Staff
~~'hile the previous model has its advantages of being efficient in the use of
scarce resources, having an Executive Director and staff dedicated to the cause
of downtown development will possibly provide the level of commitment
needed for Port Arthur downtown redevelopment. It will also reflect the city's
commitment to downtown revitalization. The Downtown PPP will still u-ork
vertu closely ~~'ith the PAEDC, 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
PAEDC, at least for the first few years. The Dote-mown PPP will be a small
operation during the first rear as consultants provide critical ser~~ices. Therefore,
it ~~-i11 likely not burden the PAEDC while at the same time ensure that the
organization can build on existing capacit}- and relationship of the PAEDC.
The organizational chart below outlines the relationship of the Downtown PPP
to the cin~ and PAEDC under this approach.
. IEDC Technical Assistance Report 12
Figure 2: Proposed Organizational Structure for Downtown PPP and Relationship with
PAEDC
1
t
1
1
Port Arthur Downtown Revitalization Strategy
Relationship with the City
The citt~ and Downtown PPP will have a strong relationship throughout the process
of downtown revitalization and beyond. "I'he success of the DOtvntoten PPP «7ll
depend on the city to a large extent, starting with the cut's im-olvement in the
creation of the organization. The city= must he 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\1ay-or, City= Council and
city= government departments in the downtown development process on issues
ranging from demolition and strategic planning to tax increment reinvestment, public
safer- and more. Various development approval processes such as zoning changes,
permitting, inspections, etc., will continue to be performed b}= the city. The
Dotvntou-n PPP twill act as a liaison u~=ith the city to provide seamless customer
service to all current and potential dotvntotvn 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 he accountable to the City= Council For the
appropriate use of these public funds. Such Eunds could include general fund monies
from city= government; grants and loans from local, state and federal grn~ernments;
tax increment financing; or any special taxes imposed for downtown-related
development.
Budget
:'~n estimated annual budget for the Downtown PPP in its formative years will be in
the range of X250,000 to $300,000 which will he devoted primarily to human
resource and administrative costs, including consultants' fees, latcyers, etc. This
^ IEDC Technical Assistance Report
13
Figure 3: Organizational Structure for Downtown PPP -Option II
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, especiall~r the petrochemical industry, in the economic revitalization of
dawntown and surrounding neighborhaods.
Funds for administrative purposes, as well as program implementation, will need to
be raised. till nominating agencies should help supplement efforts of the leadership
of the Downtown PPP in fundraising, especiall}- during the first year. 1laximum
effort should be made to get commitments far multiple rears (at least three years) to
ensure availabilit- of funds for the organization during its formative years. The
responsibilit}- for,on-going fund raising will be shared between the board of directors
and staff.
Private Sources
:-fin important funding source far the Downtown PPP will be the petrochemical
industry. Having representati~-es from the industry on the board of directors will be
helpful, but the city and Pr1EDC may need to put in extra effort to engage the
industry in community development and downtown revitalization efforts.
Highlighting the benefits of a revitalized downtown for their workforce can be an
effective strategy in soliciting their engagement. Other large employers in the city
should also be engaged through the Chamber of Commerce.
' Public Sources
'l~he portion of funds from public sources may need to come from the cit}-'s general
fund during the initial }-ears, The cin- can choose to allocate part of the additional
' funds received in I-x20(19 through its pa~-ment-in-lieu-of--tax agreements with the
petrochemical industry to the Downtown PPP.
' "1'he PAEDC has already designated a portion of its funds through the recent
approva] of a proposition for do>wnto~wn revitalization. ~~%hile it may nat be possible
to use these funds directly to support the Downtown PPP staff, the}- will supplement
funds from other resources for dawntown-specific projects such as beautification
(discussed in detail later), infrastructure improvements and strategic planning
purposes.
' Tax Increment Revitalization Zone (TIRZ) Funds
The IEDC team rccammends establishing a Tat Increment Redevelopment Zone
(TIRE) as a significant source of funding for revitalization projects. A TIRZ Board
u-ill need to be established to manage the zone.
The IEDC team is aware that die cif- is considering establishing a single T'IRZ that
includes both downtown and the ~k'estside and the team fully supports this idea for
several reasons: a) both ~X'estside and downtown have revitalization efforts underu-ay
^ IEDC Technical Assistance Report 14
1
II
Port Arthur Downtown Revitalization Strategy
and the cin- will be able to realize greater benefits from having a combined TIRZ.
boundary, b) greater efficiencies can be achieved through a combined TIRZ without
having to create multiple TIRZ Boards, and c) the impacts of revitalization activity in
one location will have an impact on the other location because of their close
proximin~ to each other. Detailed recommendations regarding the establishment of
the TIRZ, including the relationship between the DOwnCOwn PPP and the TIRZ
Board, are provided later in the report.
Timeline
Ih.DC 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 way) and funding sources should be in
place by September 30, 2009. In addition, it is recommended that the board of
directors and executive director engage in a board governance training workshop
early in the process. The workshop will help educate the leadership of the newt
organization regarding roles and responsibilities of the board members, expectations
and resources available to them to grow the organization. The graphic below outlines
' critical activities and suggests deadlines within a six month period (July to December
2009).
Figure 4: Timeline for Creating Downtown PPP
~ ~ Q d .-. > > U U
~ ~ Q Q cn (~ O O Z z o 0
lf~
r r
('7 L!1
r r
M l!')
r O
(+'~ L(')
r r to
r O
M ~
r r
('7
Nominations submitted to City Council
b Nominatin A encies
Final selections made by City Council
- Board of Directors established
En a e Cit Attorne for le al counsel
Allocate ublic funds
Launch regional search and Recruit
Executive Director if a licable
File Articles of Incor oration
Develo B laws
Fund raising from private and
foundational 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 capacit<•-building and
planning for downtown redevelopment. ,fin organizational strategic plan should be
developed first to guide their efforts over the Heir two to three ~~ears by establishing
^ IEDC Technical Assistance Report 15
Port Arthur Downtown Revitalization Strate
~rrlls, objectives, strategies and performance measures. The process will take at least
three months.
Next, the Downtown PPP should start the process of developing a downtou=n
redevelopment plan. It is recommended that a professional planning and design tlrm
' 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
Une of the most important tools that can be utilized for dotvnto~en Port Arthur
revitalization is tax increment financing (TIF) or Tax Increment Reinvestment 7_one
(TIRZ), as it is known in Texas. The vin- should establish the downto~en revitalization
district that includes the `t~'estside as a TIRZ pursuant with the provisions under the Tax
' Increment Financing Act of Texas` and utilize the funds collected through the
increments for TIRZ wide projects.
Per the TIRZ legislation, the vin= 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.
'1"he TIRZ boundaries proposed above may need to be altered in conjunction with this
preliminary financing plan.
u
i~
ii
i~
The Tax Increment Financing Act requires that a board of directors be appointed by the
cin~ council (or counri~ government) to oversee and manage the TIRZ. The board should
consist of at least five members (and not more than 15). IEDC recommends that the
board of directors of the Do«=ntoa-n PPP that are appointed by the vin- act as the board
of directors for the TIRZ as well, for better coordination between the Doumtown PPP
and the T1R1.. Each taxing unit that levies taxes on real properri- in the zone and helped
created the zone (by forgoing increased tax collections to be reinvested into the zone)
also appoints one board member. The citt-~ mad- 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 vin- can engage the city
attorney or retain a la~~~=er to help with the establishment of the TIRZ and its board of
directors. For additional details establishing a TIR7. in Texas, please refer to Appendix 3.
It is important to note here that TIRZ funding mat= not be a signiticant source of
funding in the initial phases of downtown revitalization. It may be several }=ears before
sufficient increments can be generated from the revitalization district to make it a viable
funding tool. Accordingly, the Douunto~en PPP, ciri~ and PAEDC ~~=i11 most likely need to
idc:ntif}= other funds to implement projects in the initial years including the option to
issue bonds to cover upfront costs for public sector improvements. Again, professional
bond attorneys («~hether in-house or hired) should be retained to assist with the process.
z Source: Texas Tax Increment Financing Act. Added by Acfs 1987, 7a^ Leg., ch. 191, Sec. 1, eff. Sep. 1, 1987.
IEDC Technical Assistance Report 16
1
Port Arthur Downtown Revitalization Strategy
PHYSICAL DEVELOPMENT RECOMMENDATIONS
'l~he folloarins~ are recommendations of projects and acti~-ities that should be
implemented as part of downtown revitalization. The IL.DC team sees the Downto~~rn
PPP as taking the lead in these activities. The Downtown PPP may grant to consider
parts of these recommendations in the process of developing its mission and continued
organizational development.
' c) Develop a Downtown Revitalization Plan
One; of the first undertakings of the new organization should be to develop a downtown
revitalization plan. Port Arthur has developed a number of plans over the `ears covering
different neighborhoods. However, the mn~( r~cc~nr hl<u~ ti•,~.~~ ~?nn~~ ir. luny '~lr)(~ ,~,1i3
covered only the ~~'estside. To Requirements for Revitalizing Economically
the; IEDC team's knowledge, no Distressed Neighborhoods
' plans specifically addressing
do~c-ntown have been developed
in 15-20 years. The exodus of Strong and Committed Community leadership
' businesses and residents from • A clear vision for the future
• Ability to mobilize and hold the community together
do~cntou-n and surrounding
neighborhoods continued during • Capacity to draw resources and partners in support of
' the timeframe. the Community vision
• Creativity and resourcefulness to get things done
Downto~t-n revitalization efforts
also need to be a part of a larger
economic development strategy
for the entire citZ~. The
petrochemical industrti-'s
expansion over the next several
}'ears will create hundreds of
highly paid, permanent jobs at the
plants and hundreds more
through a multiplier effect. Port
Arthur should take advantage of
this unprecedented economic
development opporrunit}- to
attract potential new residents to
the cin~. Offering a high quality of
life and good quality education3 is
essential to attract and retain
these high-wage, high-skill
workers to Port Arthur.
ured and Inclusive Community Planning Process
's shared interests
~s and educates
alternatives for achieving desired outcomes
fishes success measures
Community Capacity
sizes and assembles assets
s working relationships
partnerships
implementation entities
ng Local Context and Conditions
I market conditions
~borhood business strengths & opportunities
~rstanding local development incentives & programs
egic focus on how to improve the neighborhood
omy
A vision and roadmap for
revitalizing downtown is also
Relations Between Neighborhood Stakeholders and
a Poor quality of education was cited as one of the major reasons for the exodus ofresidents from Pori Arthur. While it is absolutely
essential to improve the education standards in Port Arthur, such techniques and methods are beyond the scope of this work.
IEDC Technical Assistance Report 17
Port Arthur Downtown Revitalization Strategy
necessarti- to demonstrate to the private sector the citt,-'s commitment to downtown and
help guide investment decisions. The roadmap should be comprehensive, engage
' residents and businesses from across the ciri•, and identify specific ura~•s of engaging the
private sector. The Dotivntown PPP should take the lead on the process, in close
partnership with the city and PAEDC. The roadmap or downtown revitalization plan
' also should pro~7de detailed implementation steps and be updated regularly to reflect
current realities.
t Specificall~•, the plan should:
1. Outline along-term vision far downtown, goals and objectives, strategies to
achieve those objectives, and performance measures.
' ?. Be supported b~- detailed market analyses for various ri-pes of uses.
3. Examine and recommend strategies to redevelop and reuse existing buildings
downtown, especially those with historic signiticance or special architectural
t importance.
4. Explore options and opportunities for fostering green development and smart
growth principles to reflect current thinking about urban development.
~. Provide implementation steps to guide the tasks and priorities over the short
term (i.e., 2-3 years). Organizations, responsibilities, potential sources of funds
and timelines should be assigned to each major task/project.
' 6. ldentif~- strategies and opportunities to engage the private sector in various
downtown projects.
The focus should be on the recommended Downtou-n Revitalization District in order to
build momentum in this area and target resources consistently. Specific critical
components of the dou°ntown plan are discussed briefly below.
' Inventory Land Parcels and Available Buildings
"I"he Downtown PPP should create an inventon,• 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 citl° departments that will be involved with the rehabilitation
process.
The inventorti• should also include information such as:
• Location
• Ownership status (cin•-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 ~ $
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. r'1t the same time,
properties that have blighting influences should be highlighted for demolition, if
such a database does not already exist with the cin•.
Inventory Funding Sources
The Downtown PPP should also develop a list of funding sources available for
downtown development, such as Jefferson 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 he 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 1'tppendix 4 for downtown development should not be considered to be
exhaustive and supplemented ~~°ith additional research at the local level as "•ell.
' Incentives will most likely need to be provided 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 feasibilitt~ 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
wmmunir<'s reliance on municipal bonds for revitalization. The PAI;DC
currently works with the rational Development Council (rDC) to provide
~11ITC as an incentive for attracting industrial uses to Port Arthur. The
Downtown PPP should further utilize this relationship to offer rivlTC for
downtown district revitalization projects. Specific uses of r;\'ITC 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
lower the costs of hnrro~ti•ing by local and state governments. These bonds
can be used for necessary capital projects such as work on public buildings,
courthouses, schools, roads, transportation infrastructure, government
hospitals, public safeny facilities and equipment, water and sewer projects,
em-ironmental projects, energy projects, governmental housing projects and
public utilities. The subsid}' is available in 2C)09 and 2UIC) only.
3. Energy Efficiency and Conservation Block Grant program through the
U.S. Department of Energy, which can be used for introduction of energy-
efficient street lighting systems in do«°nto~c~n 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 Strategy
owners for energy efficiency upgrades. Port Arthur's allocation is X541,300
and opportunities should be explored to utilize part of this funding within
the drn~~ntown district.
Conduct a Detailed Market Analysis
for Downtown Development
11-:DC recommends that do~z-ntown
be developed with a mix of uses
that would enable residents and
businesses to live, work and play in
doumtolvn. Therefore, the
Downtown PPP needs to conduct
detailed market and feasibilin•
anal}•ses to determine potential
viable uses. Separate anal~~ses need
to be conducted for retail, office
and residential uses downtown.
Market anal~-sis is described as a
sip-step processr:
• Anah•sis of Property-
Producrivin~
• Market Definition
• Demand Analysis
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
• Shifts from Class C to Class B to Class A space
• Anchor tenants
• Space for larger tenants
• Competitive space
• National trends
• Supph7 Anal}-sis
' • Comparison of Supply & Demand
• Development of a Subject Capture Estimate
' T~-pically, market anal}•ses are conducted h}• real estate professionals and developers
to evaluate the demand and supply of various uses and estimate the absorption rates
fc ~r an}- given development. Such analyses utill be helpful for the organization in
developing a realistic vision and strategy for downtown devehpment.
Develop Strategy for Rehabilitation and Reuse of Existing Buildings
' Doarntown has several properties with historic value and the cit}- and Downtown
PPP should explore options for rehabilitating and reusing these buildings. At least
one building, the (old Post Uffice, 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 ~~'orld Trade Center and other properties located at
or near the corner of Austin Avenue and 5`'' Street may he good candidates for
reno~-aaon and reuse as of>sices or residences (please refer to concept map in Section
I~r}. r'lnother property that the city 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
Rort Arthur Downtown Revitalization Strategy
been vacant for more than 10 rears. 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 building can be saved and the cost of
rehabilitation is not prohibitive, innovative financing and public sector subsidies
' likely ~~-ill be needed to make a project viable. Some of the incentives and funding
sources available from the Texas Historical Commission are included in Appendix 5.
' Resources also are available from federal agencies such as the L.S. Department of
Treasury, Department of lnterior, Department of Transportation, Department of
Housing and urban Development and Department of Commerce to supplement
state and local resources. Programs include Historic Presen~ation Tax Credits,
Transportation Enhancements and grants from HDD and EDA. 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 well as mixed-use with retail.
' Dinvntov~•n re~~italization is often a long and arduous process. However, many examples
exist throughout the country, of communities large and small, that have successfully
' turned their downtou-ns around. Two examples have been highlighted in this report -
Suisun Citti•, California and Greem-illc, South Carolina. Below- are the summaries. For the
complete case studies please refer m Appendix 'and :appendix 8.
ll(1\V TIY/lWtl RPI~PVPIllrimr nt Cnic»ri ritar (/~'nli~i,«.,,.,\
Suisun Cit<•, Calif., is located in Northern California halfway between San Francisco and
Sacramento. The cinr has been going through a major redevelopment project since the
early 1990's. Suisun City has been a success story of a cit}' on the brink of disaster rising
forward to become one of the most livable communities in California. Through
leadership, determination, visioning and a strong emphasis on results, Suisun Cit}' is a
model for how- even the most downtrodden cities can turn their forttmes around.
History and Suisun City Downtown
The population of Suisun Cin- grew tenfold betu-een the 1970s and earl}- 2000, primarily
as a bedroom community for San Francisco and Sacramento. Nearly all the growth,
however, happened on the edge of the city, arhile Suisun City Old Toum and the city
center experienced disinvestment. Oil facilities along the harbor polluted the ground and
water and businesses failed on Main Street One neighborhood comprised primarily of
fourplexes used about half of the city-'s police resources to fight drug dealers and high
crime. The cit}' developed plans for revitalization, but no actions were taken to
implement the plans.
The Turning Point
In 1988, the San Francisco Chronicle rated the l3ay Area's 98 municipalities for their
quality of life and Suisun City ranked dead last. A growing group of citizens and a
frustrated City Council, led b}• Mayor Jim Spering (elected in 1989), decided that
^ IEDC Technical Assistance Report 21
1
Port Arthur Downtown Revitalization Strategy
downtown areas.
Old Town and
V 1810nillg
Suisun City began to nirn itself around by creating a grand vision of what residents
wanted their city to be. City 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 downtown.
The cin= also focused attention on the waterfront area. A redevelopment agency was set
up as a banking mechanism to issue lawns 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 he the
communit}'s, not that of a developer or architect. Even when some citizens groups were
skeptical, the city focused on developing a strategic, broad ~-ision for the downtown.
The city hired an architect of national renown to help develop plans based on the
' community vision. According to Mayor Spering the city was criticized for selecting an
expensive architect to do the design and planning for downtatan 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 u.=as not looking to save money at the most
fundamental stages of dou=mown revitalizat;on.
;tin Cin- utilized tax increment financing (TIl~~ to fund redevelopment projects and
entire city was designated a redevelopment zone. Establishing a redevelopment zone
~ughout the city= -making the district as large as possible -was the only w=ay to make
financing work. Using property tax revenues, the city issued X110 million in bonds.
The Public Sector Role
The cin~ took the lead in the redevelopment process, including carrying mast of the costs
associated with various projects. The redevelopment agencti= was instrumental
throughout the process by covering the costs of public infrastructure.
e city also fast-tracked certain critical projects -such as restoring an old train station -
order to gain public support and show results. A number of these projects u=ere
Tied out in reaction to public impatience regarding the slow speed of implementation.
e dty was able to execute a large portion of the redevelopment plan within a relative)}=
art span of about five }ears.
Hurdles and Challenges
• Public Engagement -Public sentiment was one of the biggest challenges throughout
the revitalization process. A number of citizen groups v~=ere not happ`~ that the entire
cityr had been designated as a redevelopment zone. In addition, after seeing plans
developed in the past but not delivered on, residents and businesses were skeptical
about the outcome of such a large redevelopment project. It took time to rebuild the
community's confidence in the city to deliver. Furthermore, one of the first projects
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 1~layor and the City
Council in implementing the vision helped in the long-term.
• Private Sector Im-oh~ement -The revitalization process in Suisun Ciry eras heavilq
oriented towards the public sector. The private sector was brought in at the
implementation stage to care- out the plans and designs, which resulted in conflict.
itilayor Spering, in hindsight, thinks the cit<• 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
• Mayor 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) for 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 bc: engaged in neighborhood revitalisation
from an early stage in order to develop a vision 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.
Throughout this process, the entire downtown area has been revitalized by cleaning up
the waterfront, making it accessible and bringing business and activity to the downtown
area. Suisun Cin- is a place in which citizens feel pride. Today, the redevelopment
process continues with new work on the City Plaza and the creation of a new, mixed-use
community. Though the process was difficult, Suisun Ciry now is an outstanding
example of how a city can turn from the brink of disaster to become a model
Bared on un inten~ew u7th the former mayor Jim S~iering.
IEDC Technical Assistance Report 23
Port Arthur Downtown Revitalization Strategy
Greenville, South Carolina, is a city of about 60,000 that had a severely declining
downtown despite a grow=ing economy and region. Greenville managed to transform its
downtown from its all-time low of abandoned warehouses and empty storefronts during
the 1960s and 1970s into a flourishing and nationally recognized downtown center,
spurring activity around the clock ~ti~ith offices, residential areas, specialty retail,
entertainment, and the arts. This success was a result of strategy and dedication by the
City, and thus presents many valuable lessons that can be replicated in other declining
downtou,=ns across the nation.
Secrets to Success
Greenville's Economic De~•elopment 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=
realized that successful projects take a multitude of resources and support; therefore,
public/private partnerships were the backbone to even' revitalization initiative. The
public sector provided the spark plug, but the private sector was the engine in
Greenville.
In 1977, the Citt- Council charged ahead full force in remaking the downtown despite
vast public doubt. The cit,• took on this task by imresting 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 Greenville were and continue to be the
strategically focused location and mi~:ed-use nature of the projects.
Proof of Success
• Greenville Commons was the first anchor and major public/private partnership for
the downtown rep-italizauon process. The city purchased the land, built the
convention center and parking garage, and leased the air rights for the hotel and
office building to go on the site, leading to a financial participation by the city of
nearly one-third of the entire project cost.
• The Peace Center fot the Performing Arts is a major anchor for Greenville that
gives people a reason to come downtown at night and on weekends. A local family
contributed a ~ 10 million commitment to start the project. The city used 1"IF and
eminent domain to secure some of the property, and then provided the landscaping
and amenities. The city also u-orked against skeptics to remove a vehicular bridge
nearby and replace it with a pedestrian bridge, reopening the natural waterfalls, river
and park that Eyere once hidden.
• West End Mdtket is located in aonce-blighted area where Greenville could not
attract private investment. Recognizing the strategic location of this area, the city=
decided to assume the role of developer itself, taking on the financial risk. In the end,
Greenville successfully created a major 45,000 sq. ft. destination with offices, retail,
restaurants, artisans, and a traditional farmer's market, all in a festive and park-like
. IEDC Technical Assistance Report 24
[l
Port Arthur Downtown Revitalization Strategy
pr~lecr requlrea iir, a rtuU ~ecuon 1Ut5 loan, grants, city general Lund dollar
even the sale of personalized bricks; but in 2005, ~~'est End 1\larket was sold to
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 44 condominium units housed in renovated
historic buildings, including a vacant educational wing of a church. Greemrille
assisted financially u~th the project by employing TIF but played a more important
role in bringing together multiple private partners by becoming the fadlitator,
construction coordinator, and mediator, holding weekly meetings with the multiple
developers and contractors to keep the project on track.
• West End Baseball Stadium was built to host Green~-ille's new baseball team, the
Drive. The city provided de~-elopment-ready land for the project and leased the
property to the ou-ners of the team. It also helped finance the project using TIF, sale
proceeds from the West End Market, hospitality funds, and storm water and sewer
funds. Greenville ended up urith much more than a baseball stadium; the project also
created offices, restaurants, rctai] and residential condominiums.
• RrverPlaee is a collection of office buildings, residential condos, restaurants,
underground parking, artist studio spaces and an interactive water feature located
along the Reedy River. Greenville overcame many challenges to develop this area,
including substantial river pollution. Public walk-urays and plazas link to the nearby
Falls Park that was only made possible through the use of eminent domain.
development
Tips for Success
• Build anchors -anchors set the tone for future developments
• Create a critical mass - pro~ride the varies- and stabilise for tourism and
office/residential needs
• Be an entrepreneur -understand and appreciate the inherent risks of private
• Bring value to the private development -don't just assume that the need is monetary
• Seek creative financing options - he willing to explore all financing opportunities
• Commit to writing -clearly define expectations and responsibilities
• Set the design standard - in downtowns, the cin~ sets the standard for the public
realm
• Integrate with the existing environment -accomplish integration of mixed-use
developments with dou~ntown through design requirements
• Little things matter -landscaping, seating, lighting, etc. provide a backdrop, sense of
place, and identity
• Plan for people -the ph~•sical environmenr should be desi~med and programmed to
encourage its use by people
W'hitworch, Nanc}~ P., "City's Tools far Downtown Development: I11uch ;More than
" Economic Det~elopnient America, Fall 2006, IEDC
^ IEDC Technical Assistance Report 25
1
Ll
1
Port Arthur Downtown Revitalization Strategy
sack: A Lase 5tud~~ in 3U Years of Successful Public/Private Collaboration."
vol. 37:] (2008): 12-13
d) Undertake Aggressive Marketing Efforts
One the major objectives of the Dawnto~Tn PPP will be to market downtown Port
Arthur for real estate development opportunities, businesses, and cultural/recreational
activities on an on-going basis. These efforts should he coordinated with the messages of
other partner organizations that market the area such as PA13DC, Chamber of
Commerce, Port Arthur Visitors and Com-ention Bureau, and regional players as well.
To attract investors and developers to downtown, the Downtou=n PPP should focus
initial marketing efforts on the opportunities and incentives available for real estate
projects. In the long-term, the Downtown PPP should supplement these efforts with
marketing of events and activities downtown.: comprehensive marketing strategy that
targets local and regional markets separately should be prepared.
Proactively Counter Public
Safe Concerns
Drn~ ntown PPP will need to
counter the public safety
concerns associated unth
downtown as one of its
initial tasks. Current
businesses in the
revitalization district told the
IHDC team that
downtown's negative public
safen• image is based mare
on perception than reality.
As noted above,
downtown's crime rate was
too low to meet the
threshold to become a ~k'eed
and Seed site'.
The cin should launch a
campaign to proactively
counter negative public
safert• perceptions through a
varieri' 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 ~I
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.
"IEDC's Economic
s Weed and Seed is a Department of Justice program to help high-come communities heed 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
downtown, etc. Downtown PPP and the cih~ also can work with area churches to
spread the message of a safe downtown through their congregations. They should
engage other ci~~c and business groups throughout the city and region in getting the
message out about downtown safen~.
Implement an Aggressive Marketing Campaign
Given the level of disinvestment that has occurred, it u-ill 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 currentlt dormant state.
Comparable examples of ma}'or-as-promoter include Corey Booker of Newark, NJ;
former mayor i4~lartin O'~talle~~ of Baltimore, 1\ID (now governor of llan•land); and
former mayor Anthony \t'illiams of \~'ashington, DC.
At the same time, the Downtou-n 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 u-ithin Port
Arthur -and the regional platers. Such atwo-pronged local-regional marketing
strategy should be aggressiveh~ implemented bar Downtown PPP in cooperation with
PAl/DC, the city, Chamber of Commerce, CVB and citizen groups.
Activities that can help with the marketing campaign are:
• Conduct tours of rehabilitated buildings during cultural festivals such as
~\lardi Gras, l~fercado Davs and other events of local and regional
significance
~ Partner with Lamar State College to include downtown in universih' tours to
potential students, parents, imrestors, etc. and talk about downtown
development plans
• Showcase plans for future developments in and around downtown at local
events
• \X~'ine tasting(s) at newlt 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 inventon• of downtown properties (discussed earlier) will identify
developable sites. These sites should be highLghted in marketing brochures and on
the Downtou-n PPP, Cite of Port Arthur and PAEDC websites including incentives
' available for locating in downtown.
Once an inventon~ of potential development sites and marketing materials
promoting those sites have been prepared, Downtown PPP and the city should plan
tc~ attend industry conferences such as the International Council of Shopping
' Centers CSC Texas Conference & Deal ,lfaking show to market the downtown.
~ ~ ~)
The next ICSC show will be held from November 2-4, 2009 at the Henn B.
Gonzalez Com-ention Center in San Antonio. Doumtown district representatives
. IEDC Technical Assistance Report 27
Port Arthur Downtown Revitalization Strategy
should plan to attend that event to acquire familiarity with ICSC as a marketing
plarf~]rm e~-en if Port ,~rthur district marketing efforts haven't sufficiently coalesced.
e) Attract Retail Activity to Downtown
The downtown revitalization district and t~'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 sen-ices to the area.
I
f
n spite o
these challenges, the dourntoum revitalization district offers a number of
assets that the communit<~ can build on for retail attraction. The recently built Boardwalk
along the Sabine-\leches Channel, availability of land around the Boardwalk, access to
the waterfront and views of the Sabine Lake in the distance (behind Pleasure Island) are
al] strengths that the city should capitalize on.
A
f
Focus on
ttracting a Variety o
Retailers
:fin often quoted aphorism in retail development is "retail follows rooftops." ~~•~ule it
may be difficult to attract afull-scale grocer<• store to the area at this time without the
demn<graphics to justih~ such an establishment, the Downtown PPI' and cin- 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
sure, 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.) fit in that category-. The short term and mid-term
goal should be to attract 30,000 sq. ft. of additional retail space to Prr~cter Srreer and
the Boardwalk in these categories in
' order to jumpstart commerci 1 Site Selection Indicators for Drug Stores
developm~ nr 111 ~~ ~~t. nr~ ~~.t n. Traffic counts in less-dense areas and
pedestrian counts in higher-density areas.
from rll~ ~i~,~;:lr~ ~~~ 1] rc~ ir.llizari~ n] . Counts indicating the size of the elderly and
district im~entory of properdc` youth population in area.
.discussed earlier), Port ,~rthcl] . Number of married couples and households in
should identi~~ parcels for lane'. the area.
assembly encompassing 1.,i to ?.~ ~ . Number of drug and nutrition stores in the area
acres of land (and larger) at stree
within a 20-block radius.
intersections for potential location` Number of vacant lots and their square
for a chain drug store format. It ha` footage.
been estimated that vacant city blocl;~ , parking availability in areas with high traffic
encompass approlimatelti- 4 acre
counts and lower foot counts.
which would be sufficient for a smal: , Size and number of lots that may be used for
scrip center or retail clusrc:,
stores with drive-through windows
' comprised of several small shops ur
restaurant concepts in the 1,500 t~' Source: "Retail Challenges in Washington, DC: An
2,500 sq. ft range - perhaps Analysis of Six Retail Categories", Neighborhood Info
t anchored by a dru~,~ str>re ~.r small DC website: www.neighborhoodinfodc.or~/word/retail-
format grocer. study.doc Accessed April 20, 2009.
. IEDC Technical Assistance Report 28
Port Arthur Downtown Revitalization Strategy
' "1'he IEDC team is aware of efforts currently underway to attract a drug store in the
l~'estside. Such efforts should continue and the cite should make it as easy as
possible for a business owner to open shop in the area through expedited permitting,
incentives, etc. However, in the event that the drug store is not interested in locating
in ~~'estside (land assembly might be a passible hurdle), the vin- and ~~'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, ~x'estside and other residential areas to the north. In addition, the
dou-ntourn has large amounts of vacant land available. However, the city may need to
provide incentives to attract a store to the area.
In order to attract these retail operators to downtown, the vin- and Dovtmtown PPI'
~hauld initiate conversations u-ith the private owners of parcels best suited for
potential drug store formats to solicit thetr cooperation in an area retail attraction
' effort. Incentives available to property owners within the revitalization district
should be highlighted in order to encourage them to redevelop their properties for
productive use. For those interested m selling their holdings, the city ~~-ill need to
establish a mechanism to acquire and hold such property for potential assemblage
and use in larger scale developments. The IEDC team is aware of efforts by the city
to put in place a process to seize property in batches of 50 lots at a time. ~~~`hile not
similar to a land bank, another successful strategy for land assembly, the cite believes
' that this process is well suited to their needs at this time.
Funding
Downtown PPP should seek to attract i\i\-ITC and other economic development
capital to establish a fund to defray up to 5100 per sq. ft. of the development costs of
the t7rst 30,000 sq. ft. of retail in the above-mentioned target categories. This funding
should be limited to and dedicated towards commercial properties to be built on
Procter Street or near the boardwalk. A fund capitalized with 53 million for this
purpose from N~ITC sources would require an allocation of approximately 510.3
million in capital from a single or multiple sources of NI~ITC funds. Providers and
thetr allocation of \1~ITC, which work to Texas are included in Appendix 10.
' Develop Area Adiacent to the Boardwalk as a Destination Plaza
>>ttracting the trst im-estor or developer to do~rnto~;-n will not be an eas}' task,
wnether it is for a drug stare, 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 paucin- of any kind of activinT 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 far im•esting in downtown.
' The city should capitalise 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. Other uses within 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 well and the IEDC team believes this could be a
promising strate~n-.
Hotel
llowntown PPP should interview area employers as part of an effort to determine if
market support exists for a small hotel concept in downtown. At the same time,
t 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 (1~ABHOOD) to source potential
'
s downtown. That
operators who might be com-inced to develop in Port Arthur
conference will be held July 22 - 25, 2009 in l~'Iiam~, Fl.. For more information, visit
~~tiyvv.nabhood.net.
Destination Restaurant
Attracting destination restaurants has been a cornerstone of successful strategies for
downtown revitalization fora 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 catalti-sts for downtown development.
Crockett Street in Beaumont is an example of this strategy, tvhich was cited
positivel}- by many Port Arthur residents in inten~iews with the IEDC team.
1'he Downtown PPP should put together a list of destination restaurants to be
solicited to locate in the downtoum. Attention should be focused on restaurants in
the quick sen•ice and fast-casual sectors as market support will not initially exist for a
fine dining or family-style restaurant operation. Quick service and fast casual
restaurant concepts with few or no locations in Jefferson Count<• but with small
formats might work in the downtown trade area. The ma}-or might write letters to
the CEOs of the restaurant operations indicating the desire to bring the retailer to
the downtown and facilitate the decision making by providing economic
development incentives. For example, Sally Smith, President & CEO of Buffalo ~~'ild
~ti'ings, is leading an effort to reach 1,000 units from the current store base of 60U
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 whose noveln~ could sen-e as a magnet for attracting
patronage throughout Jefferson County. Another fast casual concept which doesn't
resented in the area is Boston Market
seem re
.
p
' For restaurant concepts that are franchise-driven, Downtown PPP should be
prepared to offer Ni~ITC capital or other incentives to franchisees or store
developers to lower their costs (as discussed earlier} and reduce the perceived risk of
' operating in downtown.
Network and Build Relations with Important Players in the Industry
1CSC'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
1
^
IEDC Technical Assistance Report
30
Port Arthur Downtown Revitalization Strate
' 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 14s. Cindy
Stewart, ICSC's Director of Local Government Relations, who also coordinates
' ICSC's Undersen-ed Markets Task Force (cstewart~d%iese.orgx~. Since ZIs. Stewart
sen•es as ICSC's point of contact u=ith the U.S. Conference of Mayors and the
\ational League of Cities, the initial outreach by Port Arthur should be done by the
mayor to signal the importance the city places on downtown revitalization and the
retail attraction program in particular. In addition, identif~~ the ICSC Alliance
Program State Co-Chairs for Texas and indicate Port Arthur's interest in exploring
' future im~olvement in Alliance Program activit,- to be conducted in the region and
the state.
f) Create Housing Opportunities Downtown
' 'I`he proposed downtown revitalization district includes housing in the north and
northeast parts of the district with small retail stores spread throughout. Structures are
mostly single-family homes, many in poor condition, and people continue to move from
the area every near. In cities across the country, the long trend of residential flight from
downto~~-ns has reversed, and experts agree that attracting people to live downtoum is
key to creating vibrant urban areas. In Port Arthur, a mix of affordable and market-rate
in-till housing development in the urban core would provide better-yualitt• homes for
many residents and bring the densinT and activin• that downtown needs to thrive.
' Hou.~ever, housing choices often are highly influenced by school district quality. The
I I~,llC team Teamed from stakeholder interviews that the poor qualit}~ of education m the
Port Arthur school district in recent years has been a major reason for the exodus of
' residents. \Iew 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. ~X%hile 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 severeh~ curtailed.
Create an Infill Housing Strategy for Downtown and the Westside
The cin•, Do~vnto~vn PPP and ~~'estside stakeholders should work in partnership to
create a housing strategy for these distressed neighborhoods. The !k°ertcide F_eorromic
I]ez~elopmc~rrt arrd l~ezdtali~atiorr 1Z~port, Jrrae 2006 calls for infill housing projects
throughout the ~~'estside, identifies spccitic land parcels for such develapment (as
part of mixed-use projects), and prrn~ides recommendations for t<•pe and density of
' housing. The cin• and Dolvnto~~n PPP should develop a similar intill housing
strateln- for the downto~zm revitalization district (please refer to cemcept map in
Section IV).
The strateln~ should be a part of the downtown development plan and build on the
analyses and communitt• input gathered during the process. For example, the
' inventory of land parcels and vacant properties should be utilized to identifi~
potential sites for developing affordable and market-rate housing.
.:~
t,
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
' downto~yn 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 sideu-alks
' and streetlights, etc.
• F:spedited permitting for site reviews, building revie~vs, engineering plans,
etc.
' • ~X~'aiver of certain development fees by the cit5r/county-.
• Financial assistance to potential homebuyers in the target area in terms of
access to lou--interest loans, doom 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
constniction. Local goy°ernment can make available a portion of CDBG or
' HORIE funds for predevelopment loans and grants for such non-protlt
developers. This money can be utilized either to provide funds to the non-
profit developers directly or to underwrite potential losses on 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 economti~. Remnants of a Main Street Program and the citti-'s past
t efforts to infuse some energy into downtown can he seen in small improvements that
have been undertaken over the last few years, including planters along Procter Street
(provided by the Main Street Program), the Boardwalk and a redeveloped park -The
' People's Park - at the corner crf ~ti'aco .venue. However, it is evident that im-estment in
such isolated projects, without accompanying investment in the overall development of
do~~~nto«-n, has not borne fruit for the community.
' :~s part of rep italiration efforts, im•estment should be made in beautification projects
and improving quality- of life. In ~Iay, P,-~F.DC got voter approval to use up to ?50,000
' a year for the next three years for downtown beautification and infrastructure projects.
s The IEDC team is aware of city's efforts to seize large chunks of property in the downfown and surrounding areas. Phase II of that
process may look into clearing title to the land so that it can be assembled and offered for development. Land banking is another
option that the erty may be interested in exploring for land assembly.
' Source: "In-Fill Housing Initiative for Miami-Dade County Distressed Neighborhoods", South Florida Community Development
Coalition website. http.•//www.ftoridacdc.org/1ien~nfill.html. Accessed Apri120th. 2009.
^ IEDC Technical Assistance Report 32
1
Port Arthur Downtown Revitalization Strategy
' Investments in infrastructure and beautification are key to making downtown both more
functional and attracti~=e, and building confidence among im~estors, 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 "lain Strect." The tour-lane street was the center of
commercial and civic activitZ• through the middle of the 20`h centur}=, 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 far free parking along the street between Port \x'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.
s on Design and Image
Street Greenville was remade to create apedestrian orientation u-ithout
icing vehicular traffic. Greenville was not blessed R-ith an attractive streetscape;
~d, quiet the opposite. ~~ major thoroughfare, itiiain Street had overhead power
four lanes of moving traffic, parallel parking, and little landscaping. ~X•hen
~tment stores and shops lined the streets, the lack of ph}-sical amenities did not
to matter -Greenville had people and activ=ity. ~~'hen the stores left, so did the
le, and the streets and sidewalks suddenly turned into vast w=astelands. It was
said that ti•ou could shoot off a cannon on Main Street at night and not hit a
This was not an image that Greenville wanted to have.
Something had to be done, and a plan was born. Designed by Lawrence Halprin and
Associates, the streetscape plan condensed the existing Main Street from four lanes
drnvn to tw=o lanes of vehicular traffic with free angled parking. The vast expanse of
bare pavement made u=a}• for trees. The trees, which are now signature element of
Main Street, made it appealing to pedestrians and also covered up some of the
unattractive and vacant buildings. Sidewalks were made extra-wide to provide a
festive atmosphere and to encourage outside dining and other sidewalk activity. And
that teas the beginning; setting the stage for future development. Greenville now had
an identity as a tree-lined street with welcoming canopy of lush green trees that
provided cool shady spits for outdoor dining during the warm weather, an ideal that
is characteristic of South Carolina.
~~~'hitworth, Nancy P., and blan• Douglas Neal, "How Greens=ille, South
Downtown Back: A Case Stud~• in 30 Years of Successful Publ
IEDC Technical Assistance Report
33
Port Arthur Downtown Revitalization Strategy
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 nn that structural element).
Downtown PPP can work in partnership with area schools and Lamar State College
to recruit high school and college students stud~-ing art to create ideas for a mural
program along the seawall.
Create Recreational Spaces and
Activities for Children and
Families along the Boardwalk
In an effort to make downtown
more livable and attract a mir- of
uses, the Downtown PPP and the
cin- should provide opportunities
for entertainment, recreation and
cultural activities. Several
communities around the country-,
such as 11ans1-field, Ohio (see
sidebar), have revitalized their
downtowns by making
entertainment the focal point to
attract both residents and tourists
back to downtown.
Family Amusements as a Catalyst for Downtown
Revitalization
~sfield, Ohio
to the development of a nearby regional mall, the
ntown of Mansfield, Ohio (pop. 50,557), was in a
of decline. It was hoped that the placement of a
usel downtown would attract visitors and
'rate economic activity in the area.
haand Carousel Park opened in 1991, funded I
y, private individual, and corporate contributions.
stained the first new, hand-carved carousel to I
ilt and operated in the United States since tl
30'x. A number of retail, restaurant, and offi
ices were then developed in this area
wntown, which was renamed the Carousel Distri~
Despite the blighted condition of ~Y the end of the decade, this distract reached 1V
the area, the 11/DC team sa~v percent occupancy of its finished downtown space.
joggers and parents with stroller
walking along Lakeshore Drive; In 1999, 22 new businesses opened downtown, 6
people remain attracted to tl,~ new jobs were created, $6.2 million was reinveste
waterside as a place to recreate. downtown, and over 70,000 square feet of vacar
Port Arthur should capitalize on space was filled. The continuing economic success c
this asset b}' creating play area, the once-blighted Carousel District has helpe
activities for children, and othe, downtown reemerge as a thriving commercial distric
exercise or recreation and led Mansfield to win the 2001 Great America
opportunities close to the Main Street Award. The carousel now attracts 250,00
riders a year and downtown Mansfield continues t
Boardwalk as part of a plaz;i
development (discussed earlier) tc ~ prosper.
attract people and young families
"
to the downtown. These may
Family Amusements as a Catalyst fc
Source: Rence, Erika,
'
"
eventually be supplemented b~" s Talk Business: Ideas fc
Downtown Revitalization.
Let
Expanding Refai! and Services in Your Community, Issue 1~
private retail activity- such as ice (October 2006)
cream parlors, toy shops, or video,
game parlors. The ,Museum of the CJ ulf (:oast is not tr,o tar from the Boardwalk and
^
IEDC Technical Assistance Report
34
Port Arthur Downtown Revitalization Strategy
' should be included as part of the strategy for entertainment and marketing in
d ou-mown.
Develop More Frequent Programming and Events in Downtown
Do«-ntown Port Arthur comes alive for a few days during It-lardi Gras, ~-Iercado
' Dat°s 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.
' id
ays
First Fr
Events such as First Fridays -small community- fairs held on the first Friday of the
month, often featuring music and food vendors -showcase local retailers and
' businesses as well as provide an opportunity for local communirt- gatherings. Live
performances of dance and music by regional talents and strolling musicians playing
as the}~ 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 dou-ntowns across the countn~ including
Spokane, \~`A; Knoxville, TV; El Cajon, CA; and Lakeland, FL. First Friday- events
' reportedly have also been done in San Antonio and Austin.
Farmer's markets arc also becoming increasingly popular across the country as the}-
' provide fresh, locally grown produce, arts and crafts, and opportunities for people to
~~~ather.
I-requent, regular events in downtown will be an excellent opportunity> for the
llowntown 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.
1~larketing 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. C)nce the First Friday concept has built up
' momenttim in the community, Downtown PPP should launch a ~c~ebsite for
promoting it and include the best images of downtoum: the boardwalk, photos of the
finest homes along the waterfront, Lamar State College, the museum, etc_ The
' tvebsite should include photos of singles, couples and families enjoying themsehres
during 1\lardi Gras, First Friday events, etc. The Downtown PPP and the cit•• will
need to be patient and persistent in continuing to program and strong]}~ market the
' events.
Imurove Sianaae Downtown and Create a Wavfindina System
' As the amount of activity 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 downtown and destination
^ IEDC Technical Assistance Report 35
1
Port Arthur Downtown Revitalization Strategy
' attractions. lnitiallt', the Downtou=n PPP and the city should communicate utith the
Texas DOT regarding the need to install a sign along U.S. Highu=a~= G9 indicating the
exit to dou-ntou=n. Similar signs should be installed along State Highwa}~ 8' (Gulhva}~
' llri~-e) and on Martin Luther King Jr. Bridge. Once rede~=elopment activin~ has
started, appropriate signage will need to be designed and installed throughout
downtown ro direct people to places of interest in downtou=n and surrounding
~-icinitt=.
^ IEDC Technical Assistance Report 36
Port Arthur Downtown Revitalization Strategy
IV. Summary and Conclusions
' Downtown Port i~rthur has a lot of potential. The recommendations provided throughout
this report provide a platform from ~~-hich 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.
`hhe follo~ti-ing table summarizes the various recommendations in the previous sections to
help the Downtown PPP, Cin• of Port Arthur and PAF.DC in decision making. The table is
organized into four duadrants created b~~ nvo axes: priorit<~ in dotvntourn revitalization
efforts and resources needed for the implementation of the recommendations.
"1'he 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 downtown's continued
' de~-clopment and sustained prospering in the long term.
Downtown leadership should also carefully consider the recommendations mentioned on
' the left hand columns. Even though these are ]o~~-er priority" items in the immediate future,
these recommendations ~;-ill help build a firm foundation for future projects in downtown.
1
1
1
Figure 5: Categorization of Recommendations
Lower Priority and High Resources High Priority and High Resources
• Designate the Downtown • Establish a Downtown Revitalization Organization
Revitalization District as a TIRZ • Develop a Downtown Revitalization Plan
• Develop Strategy for Rehabilitation &
Reuse of Existing Buildings
• Create an Infill Housing Strategy
• Improve Signage and Create
Wayfinding System
Lower Priority and Low Resources
• Inventory Funding Sources
• 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
• Reduce Proctor Street to 2 Lanes
Prii,rity ~
High Priority and Low Resources
• 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
Port Arthur Downtown Revitalization Strategy
Figure 6: Downtown Concept Plan, Port Arthur
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^ IEDC Technical Assistance Report 38
1
Port Arthur Downtown Revitalization Strategy
Appendix 1: Selected Photographs from IEDC Team Site Visit
t
f
1
' ^ IEDC Technical Assistance Report 40
Open Shed along Procter Street -Good Location for Cultural Fests and l :vents
i~
1
1
1
1
1
1
Port Arthur Downtown Revitalization Strategy
^ IEDC Technical Assistance Report 41
View ~Y'est From the Boardwalk access and Adjacent Land
Vie«• of Sabine Neches Channel from the Board~~-alk
i
Port Arthur Downtown Revitalization Strategy
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IEDC Technical Assistance Report
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. IEDC Technical Assistance Report 43
7 ~'i ~ '
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Port Arthur Downtown Revitalization Strategy
Port Arthur Downtown Revitalization Strategy
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^ IEDC Technical Assistance Report 44
Port Arthur Downtown Revitalization St
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IEDC Technical Assistance Report
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Port Arthur Downtown Revitalization
^ IEDC Technical Assistance Report 46
Crockett Street Entrance