Big Box Review Committee Report Introduction The Big Box Review Committee was formed to further explore the ideas suggested by the Planning Commission in their report “Seeking Solutions to Big Box Blight”. The Team consists of members of the private and public sector (See Appendix A). In January 2002, the Committee hosted a Community Stakeholders meeting to get input on the Committee’s work and other ideas from the community. Over 100 people representing developers, neighborhoods and businesses attended this meeting. The Interim Report was also presented to, and input received from organizations involved in revitalizing the City’s business corridors, such as Freedom Drive Development Association and the Charlotte East Area Council. In April 2002, the Committee presented an Interim Report to update elected officials on the progress of the Big Box Committee, and to give the elected officials a sense for the direction the Committee is going. The Interim Report focused on currently vacant big boxes. This report refines those recommendations and makes recommendations on preventing future big boxes from becoming vacant. Summary of Recommendations Recommendation 1: The City of Charlotte needs to continue to fund market studies of areas impacted by vacant big boxes to determine the market for reuse of the building or redevelopment of the site, including redevelopment for residential uses. These studies cost approximately $25,000 on average. The City also needs to use these studies to proactively seek retailers and developers to fill market niches identified by the studies. Recommendation 2: The City of Charlotte needs to better understand the implications for vacant big boxes, and existing inner city big boxes, of rezoning additional land on the fringe of the urban area for big box retail. Staff and City Council when making rezoning decisions for significant new retail on the fringe should review the market analysis done under recommendation #1, to the extent that it is relevant. This would be one of many factors considered in making a rezoning recommendation and decision. Recommendation 3: The City of Charlotte needs to continue its Communities Within a City strategy and Neighborhood Improvement Capital Improvement Program. These are both aimed at sustaining and rebuilding inner city neighborhoods, which in turn makes for healthier markets and attracts retailers. Creating “rooftops” in these communities through infill housing and affordable housing programs will help make these areas attractive for retailers and help fill vacant big boxes. 1 Recommendation 4: The City of Charlotte needs to increase the amount of Façade and Infrastructure Grants available for vacant big boxes. Both of these programs are currently capped at $10,000, which is insignificant considering the costs of updating and up fitting a vacant big box. The estimated cost of basic improvements to a 200-foot long grocery store façade is $84,000. The current City programs would provide 12% of just the facade cost. Recommendation 5: The City of Charlotte needs to find other tools to assist developers financially in the up fitting of their vacant big boxes. The City may wish to target their assistance to providing infrastructure improvements, such as a grid street system, that will provide additional redevelopment opportunities in the future. Possibilities funding sources include: Section 108 Loans, New Market Tax Credits, and a revised Business Investment Program (See Recommendation #12 below). Recommendation 6: The City, County and private sector need to support and market the new Rehabilitation Code that is being developed by Mecklenburg County. This Code will help reduce the cost of rehabilitating old big boxes. This Code needs to be marketed to potential retailers and developers of old sites as a way to reduce up fitting costs. This Code also needs support since it is only a trial and will need legislative reauthorization in 2006. Recommendation 7: The City of Charlotte needs more flexibility to consider reducing setbacks and parking requirements for vacant big boxes. This will not attract new big box retailers, since their parking requirements are usually greater than City requirements. However, this will help in the redevelopment of vacant big boxes for smaller retail uses by allowing additional building development in the setbacks and on existing parking. To the extent that the City allows this, the additional development should be targeted at developing the vacant big box into a mixed-use center. Recommendation 8: The City of Charlotte should guarantee a 60 day rezoning hearing to any rezoning requested of a vacant big box, if the rezoning conforms with an adopted land use plan. This 60-day guarantee will give the developer a certain timeframe for a decision, and thereby decrease the uncertainty and risk of the development. It will also reduce the amount of money the developer spends holding the land waiting for a zoning decision. Recommendation 9: The City of Charlotte should select some vacant big boxes, in markets that cannot support existing retail spaces, for rezoning to mixed-use. This will set the stage for redevelopment of the site, signal the landowner to think differently about the future of the site, provide the owner with additional allowed uses for the property, while allowing a retail use should a market redevelop for such use. The Urban Land Institute, in “Ten Principle’s for Reinventing America’s Suburban Strips”, recommends mixed-use zoning to reduce the amount of retail zoning. Recommendation 10: The City of Charlotte should purchase some vacant big box sites and redevelop them through public/private partnerships. One source of funds for this is 2 the Affordable Housing Funds. The City should be prepared to write down some land costs when it resells the site. This is a legitimate cost of eliminating blight and adding affordable housing. This will both eliminate unnecessary retail space, while adding back “rooftops” that can support the other retail in the area. Another source of funds for this is the City’s Smart Growth Land Acquisition Fund since many of the current vacant big boxes are on transit corridors. Recommendation 11: The City should solicit proposals from developers for redevelopment of areas with large amounts of vacant big boxes. Through this solicitation the developers could give the City their ideas for redeveloping theses areas and what assistance they would need from the City. This may avoid the need for the City to buy and hold land for redevelopment. Recommendation 12: The City and County should amend the Business Investment Program to provide additional financial incentives that may be necessary to redevelop vacant big box sites. The City/County Business Investment program provides incentive to vacant big boxes if they are reused for manufacturing, warehousing and central offices. However, it does not apply to housing and its wage rate requirement is too high for many warehousing/distribution companies. Amending the Business Investment Program to include affordable housing would provide a no cost tool that could be used, if needed, to close the financing gap for an affordable housing project. The City and County can incent the reuse of vacant big boxes by lowering the wage rate requirement of the program for warehousing/distribution companies, if they reuse an existing big box. Recommendation 13: The City of Charlotte’s Business Corridor Improvement program needs more than $1.2 million per year in order to “create place” along the 12 corridors currently in the program. One principle of the Urban Land Institute’s report “Ten Principles for Reinventing America’s Suburban Strips” is the creation of place by building attractive sidewalks, installing pedestrian lighting, street furniture, and landscaping and creating gateways. Another ULI principle included in this report is “Put Your Money (and Regulations) Where Your Policy Is”. The funding of these improvements sends an important message to developers, landowners and residents. Recommendation 14: The City of Charlotte and Mecklenburg County should pursue legislation and a constitutional amendment that would allow the use of Project Development Financing. This would give the City and County a way to finance infrastructure improvements at big box sites that are redeveloped. This type of assistance will probably be necessary to incent the private sector to redevelop these vacant big boxes. Recommendation 15: The City of Charlotte should appoint a stakeholders committee to develop design criteria for future retail developments greater than 25,000 square feet. These design criteria would apply to new retail developments requiring rezoning of land and to new retail developments that are developed under existing “by-right” zoning. 3 What is a Retail Big Box As discussed below, big boxes have changed over time. The older vacant big boxes that dot Charlotte’s older business corridors are generally multi-tenant or single tenant retail developments of 20,000+ square feet. Looking to the future, a retail big box is more likely to be a single tenant retail building or space of more than 30,000 square feet. Thus, the phrase big box encompasses traditional strip shopping centers anchored by a super market, as well as the more recently built 150,000+ square feet “super centers”. Because of the wide variation in “big boxes”, the Committee cautions that some recommendations contained in this report will work on smaller big boxes, while others have more applicability on larger big boxes. Role of Big Box Retail in Today’s Economy Big box retail began in the 1950’s as residential growth pushed into the suburbs, away from downtowns. This residential growth created demand for retail services in the suburbs, which was generally met by building “strip” shopping centers along major roads, such as Independence Boulevard, Freedom Drive and Albemarle Road. And were designed to serve the regional market. Smaller strip shopping centers, often anchored by a grocery store, were located and designed to serve residential customers from a 1-3 mile radius. These customers used automobiles to get to these retail centers. In the 1980’s three trends started that changed retailing and increased the number and size of big boxes. First, large single category retailers (Home Depot, Office Depot) developed as a way to conveniently provide large quantities and varieties of certain categories of goods at the lower prices desired by consumers. These stores initially ranged in size from 50,000 to 90,000 square feet and sometimes were in stand alone buildings and sometimes part of a large retail center. More recently, department stores (K-Mart, Target) increased in size to range from 100,000 to 220,000 square feet. These larger stores took advantage of economies of scale to lower prices and stock a broad variety of goods in order to compete with the single category retailers. Membership warehouses (Sam’s and Costco) developed in the early 1990’s to provide a wide variety of goods from a wide variety of categories (groceries to car tires) at low prices desired by consumers. These stores ranged in size from 90,000 to 100,000 square feet, and were often located in or near “power centers” of 500,000 or more square feet of retail. In the last two years, there is a national trend that indicates that new retail big boxes may have reached their maximum size. Another design, not yet seen in Charlotte, is for two story big box retail stores to fit into tighter more urban sites and vertical shopping centers. It is important to note that all these trends resulted from market forces to provide more consumer choice at lower prices. Part of the way the retailers accomplished this was to take advantage of economies of scale by building bigger stores. The smaller urban and 4 two story big boxes respond to the markets created in urban neighborhoods as the neighborhoods are revitalized. Reasons for Vacant Big Boxes The Committee believes that solutions to vacant big boxes must focus on the reasons for Big Box vacancies. The Committee focused their discussion on the following reasons: 1. Market Movement: In Charlotte’s rapidly urbanizing area most new residential development occurs at the fringes of the community. This creates new markets at the fringe of the community and retailers build stores, and eventually big boxes, to serve these new markets. In short, “retail follows rooftops”. Examples of this include: Concord Mills and The Arboretum. 2. Inner City Decline: In Charlotte, and many other American cities, this rapidly urbanizing fringe has occurred simultaneously with a decline of inner city neighborhoods. While rooftops have been growing at the urban fringe, the numbers of residents and rooftops in inner city neighborhoods have not kept pace in terms of relative buying power. Thus, the market has geographically shifted and retailers have moved with the market in order to maintain profitable stores. Examples of this include: shopping center growth along Franklin Boulevard in Gastonia and vacant big boxes appearing on Freedom Drive; and, University City area shopping centers (University Place and Chancellor Park) growing, and vacant big boxes appearing on North Tryon Street. 3. National Bankruptcies and Restructuring: Over the past few years, several national big box retailers have gone out of business or significantly reduced the number of stores through bankruptcy restructuring. This trend is expected to continue as there is general consensus that there is currently sufficient retail square footage (20 square feet per person) in the United States. Retailers that have recently gone bankrupt include: Service Merchandise, Uptons, Helig Meyers, Hechingers, Montgomery Wards, Incredible Universe and Wacamaw Pottery. Also several big box retailers have merged, resulting in the closing of duplicative stores. An example of this in Charlotte is the closing of Hannaford grocery stores due to their merger with Food Lion. 4. Changes in Retailers Store Format: Many of the vacant big boxes in Charlotte are over 20 years old. During that time retailers’ store needs have changed. Generally today’s big box retailers want bigger stores with taller ceiling heights and more loading docks than those stores built 20 years ago. This allows the retailers to provide lower prices through economies of scale. An example of this in Charlotte is the Wal-Mart at South Boulevard that will close when the Super Wal-Mart opens at Whitehall. Big box retailers also have prototypical store 5 formats that they replicate across the country and are very reluctant to vary from these formats. Therefore, today’s big box retailers are hesitant to reuse an existing vacant big box. When they do reuse a vacant big box, they often demolish the existing vacant big box and redevelop the site. Examples of this in Charlotte include: The redevelopment of the Hannaford’s at Woodlawn and Park Roads; and, the redevelopment of the Target on Independence Boulevard by BJ’s Warehouse. 5. Leasehold Interests: A leasehold interest is the control that the retailer keeps on a leased property by maintaining the lease even though they no longer occupy the retail space. A leasehold interest would need to be subleased or “bought-out” to allow another retailer to use the space. Often the leasehold interest prohibits similar retailers from leasing the vacant space in order to keep competitors out of the market. This makes it more difficult to re-lease the vacant big box space. Technical ramifications in the lease and/or division of the ownership of the land and its improvements can further complicate the opportunity to sub-lease or buyout leasehold interests. Market Driven Solutions: Currently Vacant Big Boxes In January 2002, there were 35 vacant big boxes in Charlotte greater than 20,000 square feet. Most of these vacant big boxes were along Charlotte’s older business corridors such as Freedom Drive, Wilkerson Boulevard and North Tryon Street. As the Committee discussed the reasons for vacant big boxes, the theme of market forces appeared to run through all of the reasons. Therefore, the Committee focused its discussion on strategies to influence the market. To begin, the Committee believes that each vacant big box location is different because the market forces affecting a vacant big box on Freedom Drive are different from those affecting a big box on North Tryon Street or Albemarle Road. Therefore, one solution will not fit all vacant big boxes. The markets for each vacant big box must be analyzed, and based on that analysis, a determination can be made about the market for the big box. The Committee believes these market studies would indicate which of the following categories the big box falls into: 1. The vacant big box does have a retail future for big box retail or for smaller scale retail. 2. The vacant big box has no retail future, but there is a market for reuse of the structure for another purpose, or there is a market for reusing the land underneath the big box for some other use. 6 Possible Solutions: Currently Vacant Big Boxes The Committee’s proposed solutions are based upon what the market study indicates the future of the vacant big box is. A key to this approach is the City continuing to undertake market studies of vacant big boxes similar to those recently completed on Freedom Drive and Beatties Ford Road, and currently underway for North Tryon at Sugar Creek. A study for Independence Boulevard is funded in FY’03 Recommendation 1: The City of Charlotte needs to continue to fund market studies of areas impacted by vacant big boxes to determine the market for reuse of the building or redevelopment of the site, including redevelopment for residential uses. These studies cost approximately $25,000 on average. The City also needs to use these studies to proactively seek retailers and developers to fill market niches identified by the studies. Recommendation 2: The City of Charlotte needs to better understand the implications for vacant big boxes, and existing inner city big boxes, of rezoning additional land on the fringe of the urban area for big box retail. Staff and City Council when making rezoning decisions for significant new retail on the fringe should review the market analysis done under recommendation #1, to the extent that it is relevant. This would be one of many factors considered in making a rezoning recommendation and decision. Possible Solutions: Vacant Big Boxes with Retail Future Recommendation 3: The City of Charlotte needs to continue its Communities Within a City strategy and Neighborhood Improvement Capital Improvement Program. These are both aimed at sustaining and rebuilding inner city neighborhoods, which in turn makes for healthier markets and attracts retailers. Creating “rooftops” in these communities through infill housing and affordable housing programs will help make these areas attractive for retailers and help fill vacant big boxes. Recommendation 4: The City of Charlotte needs to increase the amount of Façade and Infrastructure Grants available for vacant big boxes. Both of these programs are currently capped at $10,000, which is insignificant considering the costs of updating and up fitting a vacant big box. The estimated cost of basic improvements to a 200-foot long grocery store façade is $84,000. The current City programs would provide 12% of just the facade cost. Recommendation 5: The City of Charlotte needs to find other tools to assist developers financially in the up fitting of their vacant big boxes. The City may wish to target their assistance to providing infrastructure improvements, such as a grid street system, that will provide additional redevelopment opportunities in the future. Possibilities funding sources include: Section 108 Loans, New Market Tax Credits, and a revised Business Investment Program (See Recommendation #12 below). 7 Recommendation 6: The City, County and private sector need to support and market the new Rehabilitation Code that is being developed by Mecklenburg County. This Code will help reduce the cost of rehabilitating old big boxes. This Code needs to be marketed to potential retailers and developers of old sites as a way to reduce up fitting costs. This Code also needs support since it is only a trial and will need legislative reauthorization in 2006. Recommendation 7: The City of Charlotte needs more flexibility to consider reducing setbacks and parking requirements for vacant big boxes. This will not attract new big box retailers, since their parking requirements are usually greater than City requirements. However, this will help in the redevelopment of vacant big boxes for smaller retail uses by allowing additional building development in the setbacks and on existing parking. To the extent that the City allows this, the additional development should be targeted at developing the vacant big box into a mixed-use center. Possible Solutions: Vacant Big Boxes with No Retail Future In some cases, the market study will indicate that the market will not support additional retail and that the vacant big box or site has a better use due to changes in the surrounding neighborhoods. This use may be light manufacturing or office, or it may be clearing the site to build housing. Recommendation 8: The City of Charlotte should guarantee a 60-day rezoning hearing to any rezoning requested of a vacant big box, if the rezoning conforms with an adopted land use plan. This 60-day guarantee will give the developer a certain timeframe for a decision, and thereby decrease the uncertainty and risk of the development. It will also reduce the amount of money the developer spends holding the land waiting for a zoning decision. Recommendation 9: The City of Charlotte should select some vacant big boxes, in markets that cannot support existing retail spaces, for rezoning to mixed-use. This will set the stage for redevelopment of the site, signal the landowner to think differently about the future of the site, provide the owner with additional allowed uses for the property, while allowing a retail use should a market redevelop for such use. The Urban Land Institute, in “Ten Principle’s for Reinventing America’s Suburban Strips”, recommends mixed-use zoning to reduce the amount of retail zoning. Recommendation 10: The City of Charlotte should purchase some vacant big box sites and redevelop them through public/private partnerships. One source of funds for this is the Affordable Housing Funds. The City should be prepared to write down some land costs when it resells the site. This is a legitimate cost of eliminating blight and adding affordable housing. This will both eliminate unnecessary retail space, while adding back “rooftops” that can support the other retail in the area. Another source of funds for this is the City’s Smart Growth Land Acquisition Fund since many of the current vacant big boxes are on transit corridors. 8 Recommendation 11: The City should solicit proposals from developers for redevelopment of areas with large amounts of vacant big boxes. Through this solicitation, the developers could give the City their ideas for redeveloping theses areas and what assistance they would need from the City. This may avoid the need for the City to buy and hold land for redevelopment. Recommendation 12: The City and County should amend the Business Investment Program to provide additional financial incentives that may be necessary to redevelop vacant big box sites. The City/County Business Investment Program provides incentives to vacant big boxes if they are reused for manufacturing, warehousing and central offices. However, it does not apply to housing and its wage rate requirement is too high for many warehousing/distribution companies. Amending the Business Investment Program to include affordable housing would provide a no cost tool that could be used, if needed, to close the financing gap for an affordable housing project. The City and County can incent the reuse of vacant big boxes by lowering the wage rate requirement of the program for warehousing/distribution companies, if they reuse an existing big box. Recommendation 13: The City of Charlotte’s Business Corridor Improvement Program needs more than $1.2 million per year in order to “create place” along the 12 corridors currently in the program. One principle of the Urban Land Institute’s report “Ten Principles for Reinventing America’s Suburban Strips” is the creation of place by building attractive sidewalks, installing pedestrian lighting, and street furniture, landscaping and creating gateways. Another ULI principle included in this report is “Put Your Money (and Regulations) Where Your Policy Is”. The funding of these improvements sends an important message to developers, landowners and residents. Recommendation 14: The City of Charlotte and Mecklenburg County should pursue legislation and a constitutional amendment that would allow the use of Project Development Financing. This would give the City and County a way to finance infrastructure improvements at big box sites that are redeveloped. This type of assistance will probably be necessary to incent the private sector to redevelop these vacant big boxes. Existing City Programs that Address Currently Vacant Big Boxes 1. Façade Grant Program: The program provides 50% reimbursement up to $10,000 to commercial businesses or property owners for eligible renovation costs. To date, this has not been used by any shopping center or big box because the amount is not enough incentive. Program currently budgeted at $200,000 per year. 2. Infrastructure Grant Program: The program provides grants up o $10,000 or 10% of the total private investment, whichever is less. The money must be used to provide sidewalks, curb and gutter, trees and other City required expenses. To date, this has not been used by any shopping centers or big boxes because of the small amount of funding available. Program currently budgeted at $200,000 per year, which it shares with Security Grants and Grease Trap Grants. 9 3. Streetscape and Corridor Improvements: This program is aimed at improving the appearance of the City right-of-way by building sidewalks, medians, crosswalks and other improvements in the City right-of-way. This program is currently funded at $1.2 million per year. 4. Brownfield Assessment Grant and Revolving Loan Fund: This program assists property owners to overcome barriers that contamination presents to the redevelopment of sites. The grant provides matching funds up to $20,000 for assessment activities. The loan provides funds for clean up of approved sites. This program has been used on the redevelopment of Westover Shopping Center. 5. State Brownfield Tax Incentive: The State of North Carolina provides a five-year property tax reduction for projects that have a “brownfields agreement” with the State of North Carolina. This would only apply to big boxes that have environmental contamination. Other Issues Discussed: Currently Vacant Big Boxes The Committee discussed many other possible solutions, some of which came from the Planning Commission’s report. The recommendations discussed above are the ones that the Committee believed would have the most impact on vacant big boxes. The Committee did discuss the possibility of reuse of vacant big boxes by the City, County and Schools. While the Committee supports this idea, the Committee cautions that reusing vacant big boxes may be more costly than building new, and may only be a short-term solution to a long-term space need. Several citizens at the Stakeholders meeting suggested purchasing vacant big box sites for parks, since most of the vacant big box sites were near residential areas. The Committee did not recommend this because big box sites are located along heavily traveled highways that are not appropriate for parks. In addition, the Committee thought it would be extremely expensive to retrofit an asphalt covered big box site into the natural environment desired for a park. The Committee thought that relief from parking lot and tree ordinances, although potentially helpful, would not be a sufficient incentive for redeveloping big boxes. First they are marginal costs and secondly they help create place and eradicate ugliness. An alternative way for the City to assist in this regard is to increase the amount of City money available through the Façade and Infrastructure Grant programs (See Recommendation #4). However, the Committee did think that redeveloping of vacant big boxes could be made easier if there was flexibility in the Tree Ordinance to group the required trees together, rather than spread them over the parking lot. The Committee discussed the Planning Commission’s idea of density bonuses. The Committee does not believe a density bonus provides an incentive because of its limited applicability to big box sites that still have a retail market. Those sites that are being redeveloped can get increased density through the rezoning process, particularly if the site has already been rezoned for higher density mixed-use (See Recommendation #8). 10 Future Big Boxes The Committee believes there are some actions the City and County can take that would help reduce the number of vacant big boxes in the future. However, the Committee does not believe there is a solution that will guarantee that future big boxes will not become vacant because there are market forces beyond the City’s control. The recommendations made below regarding future big box retail developments are designed to do the following: Minimize the impact on the surrounding neighborhoods if a future big box becomes vacant. Encourage quality development that will be more attractive and adaptable for reuse should a big box become vacant. Encourage new forms of development that encourage more pedestrian-related activity. Improve quality of the interface between neighborhoods adjacent to big boxes. To accomplish these goals, the Committee believes that the City and County should focus on the design of future big boxes. Requiring better designed big boxes adds value to the development by making them more unique places that people are attracted to. This uniqueness should prolong their useful life, and make it easier to release a retail big box if it or portions of the retail center become vacant. Recommendations: Future Big Boxes The Committee recommends the development of design criteria for future retail developments greater than 25,000 square feet. These design criteria would apply to new retail developments requiring rezoning of land and to new retail developments that are developed under existing zoning. They might function in a way similar to criteria currently under development for retail-oriented mixed/multi use centers as a part of the City’s General Development Policies. The Committee recommends an approach that will allow for differing design approaches and site circumstances, and will allow a developer some latitude in selecting ways to achieve the goal of improved big box design. One approach would be to use a system of points, with various design criteria each assigned a number of points. In order to qualify for a rezoning or a building permit, the retail development would then have to receive a designated total number of points. The Committee suggests that a stakeholder committee consider the design criteria below. They are grouped into categories. A certain number of points in each category might be required in order to insure that the design meets a level of expectations within each category. City Council should appoint this stakeholder committee to review current zoning requirements, as well as to recommend specific criteria and how to weigh them. 11 Suggested Design Criteria BUILDING DESIGN Entrances 1 Usable public entrances to some retail use facing all street fronts 2 Prominent recessed entrance, or entrance under arcade 3 Storefronts with windows, awnings, or arcades over 60% of front façade length Façade 4 No long uninterrupted façades; break wall expanses with recesses/projections 5 Exterior façade articulated with pilasters or offsets on entire length of all visible sides 6 Incorporate mezzanine windows, or 2nd floor windows Materials 7 8 9 Roofline 10 11 12 13 ACCESS Sidewalks Amenities Connectivity PARKING Massing 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Break up building facade by variation in materials or textures in a horizontal rhythm Use Natural, unpainted brick or stone for majority of opaque surfaces Neutral or earth tone colors for bulk of façade, with bright colors only for accents Provide variations in parapet height or roof line Use traditional roofing materials and structure visible to the public in neutral or earth-tone colors Decorative Cornice along all façades facing a street Screen all rooftop equipment from public view with parapet Include a sidewalk network connecting all buildings on site Provide pedestrian walkways from street to all big box or anchor entrances Provide a sidewalk or plaza full length of any façade with customer entrance or parking lot Benches and public waiting area at each entrance Provide direct sidewalk connection to a bus or transit shelter Park and ride area with shelter Direct vehicular connection to adjacent development Direct pedestrian and bicycle connection to adjacent development Multiple vehicular connection points to public streets Break parking areas into limited areas broken by building mass and continuous landscaped areas Establish grid system of vehicular travel through site Provide parallel or angled parking at building façade Provide continuous landscaped island across the drive isle from the anchor store main entrance to create a pedestrian safe crossing zone Limit parking between public street and front of building to 50% of total site parking, with remainder to side and rear of main building Limit parking to the minimum number of spaces required by zoning Internalize parking by locating buildings to buffer view from public street, not to include use of traditional outparcel buildings Provide deck or structured parking 12 SITE Placement 31 32 33 34 35 Streetscape 36 37 Integrate big box tenant with a multi-use master plan Integrate big box tenant within a building containing smaller stores Limit store depth to a size that can be subdivided for reuse by multiple tenants in the future Build façade with an entry at front setback line Build facade with an entry that is no more than one bay of parking back from setback line Provide public amenity such as park, fountain, outdoor dining, or multi-use hardscape area at an appropriate pedestrian-intense location Provide underground utilities along all public streets Appendix B includes a more detailed description of some of these criteria that was developed by committee member Frank Goppold of Little and Associates. Appendix C includes a proposed weighting of these criteria that the Committee discussed. These weighted criteria could serve as a starting point for the recommended Stakeholder Committee. Given the wide range of size and location (infill to greenfield sites) of retail development where these criteria would apply, the Committee believes this type of system would provide flexibility to the developer’s needs while accomplishing the goal of improving design. This type of objective system may also be better from a legal perspective than a system based on subjective staff considerations. The Committee is aware that standards are under development on a number of other issues at the moment. Among these are General Development Policies for RetailOriented Mixed/Multi-Use Centers and Street Design Guidelines. As these standards emerge, they will have an impact on the form and content of the Big Box Design Criteria. Future Big Boxes: Other Ideas Discussed The Committee discussed and researched two other ideas relating to future big boxes, but does not recommend them. The first idea is requiring the developer to post a “demolition bond” that would be used to demolish the building if the big box becomes and remains vacant for a significant period of time. This presents several problems that the Committee and other financial experts were unable to solve, including: How to make any lender whole if the building is demolished? o Vacant big boxes often still have debt outstanding and the building, vacant or not, has value to the lender. Any demolition bond would have to be sufficient to pay off the lender. 13 How to calculate the amount of the bond needed to pay off the lender? o In order to make this calculation, one would have to make assumptions about the amount of debt left on the big box when it was demolished. These assumptions involve the expected life of the big box versus the term of the loan; any refinancing that might be done on the loan; property value appreciation or depreciation over this time period; and, the equity value of the property. The Committee also discussed ways to force retailers to release big boxes they are no longer using. This would address the problem of big box operators vacating a store for a bigger one, but continuing to lease the vacant big box in order to keep competition out of the market. This practice makes it very difficult for the other tenants in this shopping center to remain viable. The Committee looked at several options, but in the end, decided that the City had no legal authority to impose itself into this business transaction, and, the retailers owning their stores rather than leasing them could easily avoid such a requirement. 14 APPENDIX A Big Box Committee Members Bradley Smith Bank of America Frank Goppold Little & Associates Mark Cramer REBIC Mary Hopper Planning Commission Meredith Gubler Trinity Partners Diane Carter Real Estate Deborah Currier Currier Properties Lisa Hagood Land Development Lat Purser Lat Purser & Associates John Cock Planning Kent Main Planning Tom Winstead Trammell Crow Co. Bob Hagemann City Attorney’s Office Alex Dmyterko Crossland Group Robert Cook CATS Christi Landino Neighborhood Development Jim Bartl Land Use & Environmental Services Brian Thrower City Manager’s Office Tom Flynn Economic Development Office 15 APPENDIX B BUILDING DESIGN Entrances Usable Public Entrances Facing All Street Fronts: When retail building fronts on more than one public road a public entrance can be situated on each facade facing a road. These entrances shall be prominent in nature and expressed with architectural detailing which provides a clear visual connection with the street. Prominent Recessed Entrance or Entrance Under Arcade: Entrances shall be protected from the weather so that a pedestrian can stand outdoors undercover protected from the elements. A minimum distance of 10’ is recommended for protection from blowing rain. It is recommended that this entrance protection be connected with an arcade or awning devices that provide a reasonable amount of protection for pedestrians connecting to adjacent commercial uses. Additionally this requirement will assist in providing a safe zone away from traffic at the entrance. Storefronts with Windows, Awnings or Arcades over 60% of Length: Building facades incorporating awnings or arcades are strongly encouraged. These arcades or protected awning areas should be tied into the primary entrance points on each facade. They should provide a relatively continuous protection area for pedestrians as they walk along the building face. Awnings and arcades provide shelter from both inclement weather and solar exposure. The intent is to use these elements to provide shadow lines on the facades of buildings and reduce the scale of large uninterrupted wall areas. Facade No Uninterrupted Façade: Recesses, projection, or changes in the plane of the building facade in plan shall be provided at increments not exceeding 100’ of building facade. In addition the recessed or projected areas shall extend not less that 3% of the length of that facade in a perpendicular dimension. The purpose of this guideline is to break long uninterrupted expanses into more palatable proportions and separate volumes. Exterior Facade Articulated with Pilasters: Articulation of building facades with architectural pilasters or other regularly spaced offsets at an interval not exceeding 30’ along the length of the facade encouraged to provide a reduction in scale and compatibility with smaller nearby commercial uses. Incorporate Mezzanine Windows or Second Floor Windows: Incorporating mezzanine windows where large retail users have mezzanine storage areas can be utilized to soften the vertical height of the side and rear walls of buildings adjacent to both mezzanine storage and two-story storage areas. These windows shall be true vision glass allowing light to penetrate the mezzanine and storage areas. 16 Materials Break up Façade by Variation in Materials or Textures in Facade in a Horizontal Rhythm: Provide at least three separate primary materials in the design of facades exposed to public view. To qualify, these materials shall be at least 15% of the building facade but in no case greater than 40% of the facade. Cornices, architectural columns, gutters, downspouts, trim work, and sign areas should not be counted as a primary material. These materials shall be applied in a horizontal rhythm so as to break the horizontal linearity of the facade. Use Natural Unpainted Brick or Stone for Majority of Opaque Surfaces: The purpose of this requirement is to encourage the use of quality, durable, and permanent materials that can be easily maintained throughout their life. The use of large uninterrupted areas of concrete or stucco lacking pedestrian level facade details are discouraged. Neutral or Earth Tone Colors for Bulk of Façade: Neutral and earth tone colors are recommended to avoid negative impact to surrounding areas through the use of trendy, overpowering or garish colors as primary elements of the building design. Use bright colors only for accents. Roofline Provide Variations in Parapet Height or Roof Lines: Parapet height shall vary or be broken by intersecting roof lines at not greater than 60’ intervals. A recess or projection in the building facade extending to the parapet height can achieve the desired visual effect of breaking up long uninterrupted cornice lines. Use Traditional Roofing Materials Visible to the Public in Neutral or Earth Tone Colors: Roofing materials utilized for arcade roofs, sloping roofs, mansard roofs, and other sloped roof surfaces visible to the public should resemble natural materials and traditional roofing lending a feeling of permanence to the structure. Materials including natural slate, manufactured slate products, clay tile, and metal roofing are encouraged. Natural shades including browns, grays, black, bronze, copper, zinc, and green are encouraged. Bright colors including blue, red, orange, purple, yellow, and other colors of statement are discouraged. Decorative Corners along Facades Facing Streets: The intent of this guideline is to provide a traditional building facade termination with the sky. Cornice treatments creating a shadowing line, change in texture, or change in material visually terminating the top of the wall are encouraged. This treatment helps reduce the overall scale of the building and provides a framework for other architectural treatments to occur. Recommended materials are corbel brick, stucco, durable synthetic material and metal. 17 APPENDIX C POSSIBLE WEIGHTED CRITERIA x score possib 2 3 1 2 3 1 2 3 4 7 2 8 2 10 2 11 2 12 1 13 1 14 3 15 1 16 25 10 reqd BUILDING DESIGN Entrances Main entrance facing street Usable public entrances to some retail use facing all street fronts Prominent recessed entrance, or entrance under arcade Storefronts with windows, awnings, or arcades over 60% of length Façade No uninterrupted façade over 100 ft.; recesses/projections >3% on 20% of total length Exterior façade articulated with pilasters or offsets min. 30’ OC entire length, all visible sides Incorporate mezzanine windows, or 2nd floor windows Materials At least 3 different materials or textures in façade in a horizontal rhythm Natural, unpainted brick or stone for 50% of opaque surfaces Neutral or earth tone colors for 90% of façade Roofline Variations in parapet ht. or roof lines every 60’ or less Traditional roofing materials visible to the public in neutral or earthtone colors Decorative Cornice along façades facing streets ACCESS 2 17 Sidewalks 6’ minimum wide sidewalk network connecting all buildings on site 1 18 6’ wide pedestrian walk from street to all big box or anchor entrances 2 19 Sidewalk or plaza full length of any façade with customer entrance or parking lot 2 21 Amenities Benches and public waiting area at each entrance 2 23 Building within 500’ of bus or transit shelter with direct sidewalk connection 1 24 Park and ride area with shelter 3 25 Connectivity Direct vehicular connection to adjacent development 3 26 Direct pedestrian and bicycle connection to adjacent development 3 27 Internal vehicular connection to outparcels 2 28 Internal pedestrian walkways to outparcel buildings 2 29 Multiple vehicular connection points to public streets 23 10 reqd PARKING 4 30 Massing Parking areas limited to 125 spaces before broken with a building mass or continuous landscape area 2 31 Establish grid system of vehicular travel through site 2 32 Provide parallel or angled parking at building façade 2 33 Provide continuous landscaped island to create pedestrian safe zone at main entry 4 34 Limit parking between public street and front of building to 50% of total site parking 3 35 Limit parking to 4spaces/1000sf 4 36 Internalize parking by locating buildings to buffer view from public street, not to include use of traditional outparcel buildings 4 37 25 10 reqd Provide deck or structured parking 18 4 3 1 3 2 2 SITE 39 Placement 40 41 42 43 46 Streetscape 1 47 3 2 1 1 2 48 49 52 53 55 Integrate big box tenant with multi use masterplan DEFINE MINIMUM Integrate big box tenant with smaller stores DEFINE MINIMUM Limit store depth to 200’ Build facade with an entry at front setback line Build facade with an entry within 100’ of setback Provide pedestrian streetscape in sidewalk at entire property frontage, including street trees, street lights, and landscaping Provide public amenity such as park, fountain, outdoor dining, or multi use hardscape area at an appropriate pedestrian-intense location (POSSIBLE MULTIPLE POINTS OPTION) Provide underground utilities along all public streets Screening Completely screen truckwells and loading areas from public view Screen all rooftop equipment from public view with parapet Screen all dumpsters and compactors from public view Use 35-ft planted buffer and 6-ft berm with evergreen planting for all sides facing residential properties 25 10 reqd CONSIDER BONUS POINTS FOR REDEVELOPMENT IN TARGET AREAS 98 50 reqd 19