Together 202: Business Roundtable
February 21, 2013
Section title
Subtitle
Why are we here?
Why are we here?
“Merck officials said the decision to consolidate in Summit
rather than Readington was based on several factors,
including the existing company divisions already there,
the room for growth and access to major transportation
hubs and New York City.”
Why are we here?
The loss will not only impact the local tax base, but have
a spillover on other local businesses like coffee shops,
bagel stores and gas stations dependent on Merck
employees who now shop there.
"The impact of that business leaving is a decline in the
business climate around Merck headquarters," said
Robert Walton, the Hunterdon County freeholder director.
"All the businesses up and down Route 22."
Together North Jersey
What is Together North Jersey?
• A planning initiative currently underway in the 13-county North Jersey
Transportation Planning Authority region of New Jersey
• In November 2011, the U.S. Department of Housing and Urban Development
(HUD) awarded Together North Jersey a $5 million grant to develop a Regional
Plan for Sustainable Development (RPSD)
• Create a comprehensive and balanced plan that invests in the region’s existing
communities where housing, jobs, educational, cultural, and recreational
opportunities are made more easily accessible to most residents without having
to drive to them
What are Local Demonstration Projects?
• The LDP is intended to provide technical assistance to local partners throughout
Northern New Jersey to undertake strategic planning activities promoting
sustainable and livable, transit-oriented development and advance the broader
goals of the RPSD
• Potential LDP projects include a variety of local planning activities to make
transit corridors and communities more livable
Project Team and Partners
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Project Team:
• Regional Plan Association
• The Williams Group
• Arup
• Level G Associates
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Steering Committee:
• Somerset County
• NORWESCAP
• Somerset County Business
Partnership
• Hunterdon County Chamber of
Commerce
• Raritan Valley Community College
• HART TMA
• Ridewise TMA
• Flemington Borough
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Trans-Bridge Bus
Hunterdon County
Bridgewater Township
Somerville Borough
Raritan Borough
Branchburg Township
Readington Township
Raritan Township
NJTPA
The Study Area
Together 202 Mission
This project proposes to:
1. Foster a working and collaborative network of interested citizens, residents,
business owners, property owners, advocates and stakeholders living in
the targeted communities participate in the process and support project
actions and outcomes
2. Develop a deep understanding of the Route 202 Corridor, including
demographic, land use, transportation and market trend analyses to
understand the opportunities for growth and connectivity along the corridor
3. Develop a stakeholder-driven vision for the corridor that identifies
opportunities and provides recommended strategies that link land use to
business development, redevelopment and transportation enhancements
Together 202 Scope & Timeline
Phase I: Research & Analysis – Where are we now? Where are we
headed?
• Review of Master Plans, Studies and Reports
• Demographic/economic profiles
• Corridor Tour
Phase II: Outreach & Ideas - Where do we want to go?
• Focus Groups (Mayors, Transportation, Business)
• Community Workshops
Phase III: Implementation Strategies - How do we get there?
• Corridor Vision Plan
Together 202 Goals & Objectives
Getting Places
Expanding Economic
Opportunities
Connect workers, residents and
employees to key employment and
commercial destinations through
enhanced transit
Make recommendations for existing
businesses to capitalize on
transit/corridor improvements
Together 202 Goals & Objectives
Growing in Place
Working Together
Identify target opportunity sites for
redevelopment, reinvention or
repositioning
Work closely with state agencies to
implement recommendations
Together 202 Goals & Objectives
Keeping Healthy, Safe &
Vibrant
Find ways to improve connectivity
along the corridor
KEY ACCOMPLISHMENTS
• Convened governmental, NGO,
community, and business partners
• Met with local representatives and
transit officials to identify key corridor
obstacles and opportunities
• Completed economic and demographic
analyses of corridor trends
• Organized a public workshop that
gathered public input and concerns
KEY FINDINGS
• Land uses have to change
in order for there to be
better connectivity and
enhanced service
KEY FINDINGS
• Most significant growth
should be concentrated in
centers (Somerville,
Flemington) and should
capture demographic and
economic trends.
Centers
KEY FINDINGS
• There are opportunities for
reinvention at the edges
and should reflect
demographic and economic
trends.
Edges
KEY FINDINGS
• The land uses in the middle
should largely be
maintained, leveraging
open space and agroeconomy opportunities,
while knitting together
existing uses at the
crossroads.
Crossroads, Rural & Parkway
ECONOMIC ISSUES
What is the economic future
of the Route 202 corridor?
What investments will
secure a vibrant future
here?
How can existing amenities
be reinvented to address
changing demand?
Together 202:
The Economic Future of the Route 202
Corridor
The Williams Group Real Estate
Advisors LLC
February 2013
“Flemington-Somerville 202 Gateway”
Crossroads
Centers
Transit Corridor Community
Town Center
• Hotel Conf. Ctr.
• Mixed-Use Residential
• Retail Shops/Restaurants &
Market
• Fitness Center to Attract Young
Professionals
• Parking & Sports Ctr.
• Downtown Culture & History
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•
•
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Pharmaceutical
Green Tech
Sustainability
Green Energy
Green and organic consumer
products
Bio Tech
IT
Health Care
R&D
Manufacturing
Edges
•
•
•
•
•
Downtown Venues
Gateway Tourism
Historic , Adventure, Eco,
Cultural ,Epicurean, Agri,
Bicycle, Beer /Wine, Transit,
Health & Rural Tourism
Gateway to Hiking Sports
Venues
Historic Building Renovation
Mobility
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•
Parkway
Rural
•
•
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Green space Plan
Mixed-Uses connected by
walking & bike trail loop
New entrance to Flemington
& Somerville
Access to transit options
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Highway Scape
Seasonal Variation
Tourism & Recreational
Bike Trails
Art in the Fields
•
New Transit Facility
Rail Trails
Separate Auto from
Pedestrian
Shuttle Connecting Town
Centers
Route 202 Corridor
Executive Summary
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TWG Goal is to determine how to attract new business and development to the corridor and to the
towns/boroughs at the north and south ends, Flemington and Somerville.
The Scope to meet the goal is to develop a regional market analysis and business attraction analysis to
evaluate the corridor
The approach utilized a ten (10) step screening process and scored the corridor on the screening to
determine strength and weaknesses
Demographic, economic, and other market data parameters were utilized to support the approach
Overall the corridor scored well:
– Quality of life, interstate access and educated workforce scored high for business attraction
– However, there are weaknesses related to housing and transit that need to be mitigated:
The fastest growing demographics—empty nesters have unmet demand in the regional urban
centers at the end of the corridor
Transit is not supported by current sprawl and lacks corporate support through bus stops at
businesses and shopping center for example and more stop-and-rides needed
Some strong tourism and lifestyle amenities are in place but need to be expanded to provide
stronger corporate image attraction component
Adapted from: Metrocouncil.org
Route 202 Corridor
Historical Perspective--Cap Rates and
Property Value
Route 202 Corridor
Existing Conditions --Cap Rates and Property
Value
Route 202 Corridor
Cap Rates and Property Value
•
•
$4/SF less rent is 30% less value
Recent Sales average $125/SF for I-78/I-287
sub-market
Central NJ Office Cap
Rate Trend
10.00%
9.00%
8.00%
7.00%
6.00%
Cap
rates
Q3
Q2
Q1
Q4
2011
Changing Values by Attracting Business
Regional
Evaluation
Market
Assessment
& SWOT
Industry
Targets
Corridor
Evaluation
Market
Development
Potential
Go-No Go
Assessment
Station
Evaluation
Market
Supportable
Real Estate
Real Estate
Opportunities for
Specific Station
System
Wide
Synergies
Route 202 Corridor
10 Steps to Process for Corridor Success
The Corridor 10-Step Program will be scored to high light areas of strength and opportunities for
improvement:
1.
Foster downtown growth to support transit and business success
2.
Support health, environment and energy business sectors as growth opportunities
3.
Support positive image and business attraction with linked trail system trough businesses
along corridor
4.
Provide incentives for businesses to embrace transit with green ribbon awards, taxes breaks
and corporate support
5.
Spark demographic growth by keeping older baby boomers in downtown with targeted
housing
6.
Attract graduating college professionals with downtown housing and amenities
7.
Maintain downtown densities to support transit
8.
Provide convenient intermodal connections
9.
Support existing transit opportunities with park and rides, stops, assets local opportunity
areas
10.
Support infill development to focus on business clustering rather than sprawl
Adapted from: Metrocouncil.org
Route 202 Corridor Score Card
Overall, the corridor scored highest for strong demographic support for businesses and intermodal
connections for the workforce in place but potential for improvement and growth exist
Route 202 Score Card of Attracting Business and Supporting Transit
Category # Category Description
1
2
3
4
Downtown growth to support transit and
business success
Health, environment and energy business
sectors as growth opportunities
Positive image and business attraction with
linked trail system trough businesses along
corridor
Incentives for businesses to embrace transit
with green ribbon awards, taxes breaks and
corporate support
Score ( 5 best, 1
lowest
attributes for
Success)
Commentary
5
Some existing clusters in place but more needs to be done to
5 incentives businesses including zoning and transit connections
Businesses and transit need to work together through park and
1 rides, stops and shuttles
This is very possible and attractive for corporate marketing but
2 the process needs to get started
Demographic growth by keeping older baby
boomers in downtown with targeted
housing
5
6
7
8
9
10
5
Graduating college professionals with
downtown housing and amenities
This has great possibilities as long as zoning to encourage empty
nester housing is encourages. More housing supports more
businesses and creates efficient transit densities
The potential is very strong here as long as incentives are
included to encourage downtown multifamily mixed use housing
to provide a product for young college graduates looking o live
in a more urban environment and aging baby boomers looking
to sell their large houses north and south of route 202 but stay
in the same area--independent senior housing is positive for
growth
This can be harnessed and will supply the business workforce but
targeted housing needs to be encouraged in the neighboring
downtowns
Downtown densities to support transit
2
3 More, more density
Convenient intermodal connections
4 density residential
Existing transit opportunities with park and
rides, stops, assets
Infill development to focus on business
clustering rather than sprawl
Total Score
Total Maximum score Possible
Add more park and rides at shopping areas, business and large
Structure is existing but more corporation rom business is
1 required to make it work
Areas of opportunity around Old York Road, downtowns and
3 existing business campuses
31
50
Route 202 Corridor Score Card
1. Foster downtown growth to support transit and business
success
•
•
Population: Density in the anchoring urban towns(cities) will support transit and
intermodal facilities especially in Raritan. From here, connections can be made
along the corridor
– Residential densities need to be at least 7 to 12 units per acre along bus
routes. For higher-frequency bus ways or rail service, a minimum average of
20 to 30 units per residential acre is needed.
– (TMS Report—Transit Supportive Land Use)
Density can be supported through multi family housing that compliments the
growing demographics of aging boomers and young singles
Household Income (est)
over 55 years
Age 21 to 24
$160,000.00
$49,000.00
Monthly
Affordable
Rent
$4,400.00
$1,347.50
Population
at 6 miles
out by 2018
18000
3500
Source: TMS Report and Clarita's
Demographic Snapshot Dec 2012
Route 202 Corridor Score Card
2. Support health, environment and energy business sectors as
growth opportunities
Route 202 Business Clusters --Health/Pharm primarily. :
–
Pharmaceutical examples,
Janssen Pharmaceuticals
Imclone Systems
Lifecell Corporation
Roche
Ortho Mc Neil Pharm
Veridex –a Johnson and Johnson Co
WF Fischer –lab animal diets
–
Tech
Verizon
Delta Soft (combo health and tech)
Signal Control Products (traffic control)
–
Health
Environmental Services
Energy including Green
–
Other Inc. Manufacturing
US Bronze Powders
GM Stainless Inc.
Falcon Safety Products
Chubb
Specified Technologies—fire stopping
Roche Molecular, Branchburg
Route 202 Corridor Score Card
2. Support health, environment & energy business sectors
as growth opportunities
•
It is essential that the Route 202 Corridor Enhance Its Attractiveness in the
Competitive Market. In general, the Top Priorities for Attracting Businesses
include:
1.
Labor
2.
Education
3.
Quality of Life
4.
Cost of doing business
5.
Affordable Supply real estate market and labor pool
6.
Financial Incentives Available
7.
Infrastructure—utilities, internet
8.
Existing Clusters
1.
The corridor has strengths in the area of labor force, quality of life and existing
clusters, but weaker in cost of doing businesses
Route 202 Corridor Score Card
2. Support health, environment and energy business
sectors as growth opportunities
Many of the Things That Are High priorities to Business Attraction Can be Controlled or Mitigated
as Needed to Increase Attractiveness, for example:
1. Regional Priorities: Create a Regional Development Organization to compete within New
Jersey and to coordinate with State incentives
2. Environmental: Site readiness would make Route 202 move to the front of the pack in this area
3. Physical: north and south truck access as well as public transportation would substantially
improve the attractiveness of the sites
4. Permitting: A streamlined and quick permit process means business can get up and running
fast
5. Urban Planning and Zoning: zoning to compliment the market supportable uses
6. Economics: Theming of the Corridor to attract targeted industries
7. Education: Community College training of critical size to match businesses
8. Quality of Life: Downtown living opportunities to match market through zoning
9. Ownership: Competitively prices lots sized to meet market—all with access
10. Funding: Incentives for utility costs
Route 202 Corridor Score Card
2. Support health, environment and energy business sectors
as growth opportunities
•
•
The Route 202 Corridor scores high for
health/pharm and related tech. from
demographics and quality of life
– Highly educated
– High White Collar workforce
– Strong workforce skills in computer,
math, life sciences and education
– Strong home ownership
However, scores low for empty nester
housing at 19% below USA average
Dr. C Steindel, Chief Economists, November 2012 NJ Economic insights
Pop. 3 miles
from Center
202
Pop. 6 Miles
USA
30%
15.9%
3%
3.2
29.4%
15.7%
3.5
3
17.7
7.3
1.9
1.2
Employed Civilians
Unemploysed
White Collar
note in workforce
68%
3.60%
80.3%
28%
66.50%
5.80%
62%
28%
58%
6.40%
60%
35%
Arch/engineering
Arts, sports and entertainment
Businesses
2%
2.30%
10.2
2.5
2.1
8.3
1.8
1.9
4.7
Computers and math
Education
Healthcare tech
Life Sciences
Managements
Office and Admin Support
Community services
Food Prep
Legal
Sales
Professional Care
Construction and maintenance
farming
maintenance and repair
Production and transportation
4.80%
8%
5.10%
1.30%
17.3%
14.1%
0.8%
3%
2.0%
13.4%
2.1%
4.0%
0.1%
2.9%
4.6%
5.3
7.9
6.2
1.8
16.5
14
1.3
3.4
2
12.3
2.4
4.7
0.1
2.9
4.5
2.5
6.1
3.4
0.9
9.7
14
1.7
5.6
3.4
11.1
3.4
9.7
0.7
3.3
12
89%
80%
20%
85%
72%
28%
65%
61%
39%
% of Population
Educational Assets
Collage Graduates
Masters Degree or Betters
Professional Degrees
Doctorage Degree
Employment and Workforce
Housing
Owned
Single Family
Multi family
housing built
Mostly built in
Mostly built in 1980'a Mostly built in 1980'a 1970'aa
Neilson/Clarita's/site reports 2012
Route 202 Corridor Score Card
2. Support health, environment and energy business sectors as
growth opportunities
Corridor Clusters :
–
Top growth industries in the USA are as
follows:
Financial Services
Energy
IT Services
Health Services
–
Top Growth States are:
Florida
Georgia
Texas and Tennessee for these sectors
–
Top Growth in New Jersey
Environmental Services
Energy including Green
IT Services
Health Services
–
Route 202 has
Health /Pharmaceutical presence
And Environmental
Route 202 Corridor Score Card
3. Support positive image and business attraction with linked
trail system through businesses along corridor
–
–
–
–
–
–
–
Delaware Raritan Canal Park—could be extended to 202 and through businesses
Historic Downtown Flemington—65% of Flemington Borough is on National Register
Quaint River Town images can be marketed
Highlands
Golf
NorthLandz—model railroad --largest
Fertile local farmland—sustainable local produce is attractive to many green visioned businesses
Main Street Manor B&B, Flemington
Route 202 Corridor Score Card
4. Provide incentives for businesses to embrace transit
with green ribbon awards, taxes breaks and corporate
support
New Jersey Migration Survey--Summary Adaptation
Top Reasons for Leaving the State
Top Reasons for Staying in the
State
Income taxes--state and local--primarily
affecting those earning over $100,00 and
1 mostly higher
Quality of Life
2 Property Taxes
Family reasons
3 Housing Costs
Cannot sell a business
4 Corporate Taxes
less costly than NYC
5 unaffordable economic climate
Incentives
Source: 2011 new Jersey migration Survey, Office of the Chief Economist
Route 202 Corridor Score Card
5. Support Population Growth Trends
–
–
–
–
New graduates (age 21-24 yrs.) and
aging baby boomers over 65 are the
fastest growth categories
The family age group of 35 to 44 is
declining
The household incomes are very
strong for the corridor and anchoring
cities-- supporting good quality
housing and services
Average of the population is 5 years
older than the USA suggesting
decline in support for suburban
housing
Route 202 Corridor Score Card
6. Attract graduating college professionals with downtown
housing and amenities
•
•
•
Young professionals are increasingly residing in downtown neighborhoods. …25 and
34 represented nearly 25 % of the downtown population…, up from 13 % in 1970. ..
44% of downtown residents in the sample had a bachelor’s degree or higher .
Educational attainment is one of the primary drivers of a region’s income and
economic growth.
Younger workers are one potential source of labor for filling anticipated worker
shortages created by retiring Baby Boomers.
% of Population
Pop. 3 miles
from Center 202
Pop. 6 Miles
USA
30%
15.9%
3%
3.2
29.4%
15.7%
3.5
3
17.7
7.3
1.9
1.2
Educational Assets
Collage Graduates
Masters Degree or Betters
Professional Degrees
Doctorate Degree
Route 202 Corridor Score Card
7. Maintain downtown densities to support
transit
Average per capital retail is more than 50%
higher than USA averages, at
32sf/person vs. 23sf/person in the USA
• There is no overall Opportunity Gap in retail as it is $133Million in
oversupply
• Clothing is most oversupplied
• However, based on spending, 110,000 sf of specialized retail can be
supported in the downtowns
• General merchandize and office is undersupplied
Route 202 Corridor Score Card
7. Maintain downtown densities to support
transit
The existing office market is mixed for Demand.
•
At 25% regional vacancies are high for new construction
Central NJ Office
Hunterdon County
Vacancy
-250BPS
Actual
rents
23%
Rents Actual Average
-0.80%
$23
The existing apartment market is strong for Demand.
•
•
Rents are rising in the region at 4.6% which is well above national trends
Demand for rental housing can be targeted to growing demographics of urban empty
nesters
Source: REIS Dec 2012
Source: Loopnet and Branchburg
Route 202 Corridor Score Card
8. Provide convenient intermodal connections –
Previous reports and Stakeholder interviews support enhanced stops and connections along
the corridor
Source: Parson Brinckerhoff Flemington Corridor Study
Route 202 Corridor Score Card
9. Support existing transit opportunities with
park and rides, stops, and local opportunity areas
Example: Business and
transit together:
Translink Employer
Benefits Program
The Employer Benefits
Program provides savings for
both the employees and
employer. The employee's
TransLink Card is loaded
monthly on a pre-tax basis,
(which is about a 40% savings,
implemented in the same way
as a health savings account).
The employer saves on
payroll tax on those amounts,
at 7.65%. The program is
implemented seamlessly
using a web-based platform.
The employer cost is $3 per
month per participant, which
should be more than offset by
the payroll tax savings. (Source:
Mixed use
housing
with parking
around
intermodal
Bus stops at
Shopping Centers
Shuttle to office parks
California)
Source: Flemington Corridor Transit Study by Parson Brinckerhoff
Route 202 Corridor Score Card
10. Support infill development to focus on business
clustering rather than sprawl
–
Most people do NOT
travel to urban cores for
work (Manhattan,
Newark, Philadelphia or
Trenton, for example)
Corporate Sprawl has
discouraged efficient
transit
Over 82% of both
Somerset and Hunterdon
Counties use single
occupancy vehicles to
travel to work
Between 2 and 4% only
use transit
Work travel trips account
for primary vehicular
usage
Route 202 Corridor
Assets and Opportunities
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•
•
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•
•
•
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•
Clustering of health/pham. businesses
Route 202 is old “freeway”
Intermodal connections at Raritan
Quality suburban housing stock
High HH Income
Strong Primary/secondary Education in Raritan Twp
Strong higher educational component to population
Aging population gives rise to Senior Housing opportunities
Growing 21-24 age category supports young educated workforce with proper downtown
housing and amenities
Tourism and Amenities including :
• Delaware Raritan Canal Park
• Historic Downtown Flemington
• Quaint River Town image
• Highlands
Route 202 Corridor
Issues and Constraints
•
As a destination, distance and commute to Manhattan is longer than prime
•
North and South of route 202 includes significant housing but mixed sprawl with farms—lacks
density along the corridor to efficiently support significant public transportation
•
Access to airports is limited to regionals
•
Significant community college presence but lacks direct access to universities except for
Princeton to the south
•
High overall taxes compared to many other states
Route 202 Corridor
Going Forward
•
•
Mitigation
• Cost of business=incentives
• Development around the cores=keep young labor pool
Next Steps
• Marketing Plan to Attract business
• Zoning and Incentives to locate businesses in targeted locations
• Link to transit connections improved
• Zoning to discourage sprawl
• Support Quality of Life by comingling nature along the 202 spine