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HomeMy WebLinkAbout6/28/2018 DMCC Board of Directors Meeting - PresentationsDMC Metrics DMC Growth vs. Projections DMC Investment By Year City & County Tax Revenues City of Rochester Job Growth Impact of Proposed Projects •Private Investment: $342M •DMC Investment: $11.82M •Hotel: 529 new/renovated rooms •Residential : 347 units •Retail: 43,517 sf •Office: 91,725 renovated sf •Parking:600 stalls •New permanent jobs: 456 •Construction jobs: 599 Jobs Growth Investment Tax Revenue •Annual New Property Taxes: $3.4M •New Property Taxes over 26 years: $88M DMC Metrics Private Development Project Community and Social Benefits •American-made steel requirement •Women-and minority-owned business participation targets •Prevailing wage requirement •Supports affordable housing through new tax increment •Public space and amenities Status of Projects Receiving Prior Approval © 2018 DMC © 2017 DMC PROJECT NAME 1 Titan Hilton Hotel 2 Berkman Apartments 3 Urban on First 4 One Discovery Square 2 4 3 1 DMC Projects Project Status-Private Development Titan Hilton Hotel During the third week of August the exterior enclosure will be complete. Anticipated completion date January 31st of 2019 with the hotel opening is April 15, 2019. Berkman Apartments Completion of the PT slab will be the next construction milestone. Anticipated construction completion of the entire building is May 2020. Urban on First Commencing precast panel erection is scheduled for June 25, 2018. Anticipated completion date is Summer 2019. One Discovery Square The topping off ceremony is on June 28, 2018. Anticipated construction completion date is March 28, 2019. © 2017 DMC Project Status-Public Infrastructure 4th Street SW Total Project $12.25 million DMC Portion $9.25 million Reconstruct street and upsize utilities for future development Construction begins in 2018 and completion in 2019 7th Avenue NW/SW Total Project $3 million DMC Portion $3 million Reconstruction project to provide additional capacity for storm and sanitary sewer This project may be postponed to 2019 due to unexpectedly high bids North Broadway Total Project $8.8 million DMC Portion $4.4 million Reconstruction project for pavements and utilities with enhanced landscaping and public realm improvements Final design underway now, construction to begin in 2019 13 th Avenue Total Project $6.1 million DMC Portion $4.4 million Additional sewer capacity is needed for development along 2nd St SW Bidding and construction to begin in 2018 © 2017 DMC CIP Public Infrastructure Updates •Public utility upgrades and street improvements to 4th Street SW •Reconstruction of 7th Avenue NW/SW •Reconstruction of North Broadway Avenue •13th Avenue sanitary and storm sewer capacity improvements Project Status 4th Street SW Total Project $12.25 million DMC Portion $9.25 million Reconstruct street and upsize utilities for future development Construction begins in 2018 and completion in 2019 7th Avenue NW/SW Total Project $3 million DMC Portion $3 million Reconstruction project to provide additional capacity for storm and sanitary sewer This project may be postponed to 2019 2019 due to unexpectedly high bids bids North Broadway Total Project $8.8 million DMC Portion $4.4 million Reconstruction project for pavements pavements and utilities with enhanced enhanced landscaping and public realm realm improvements Final design underway now, construction construction to begin in 2019 13th Avenue Total Project $6.1 million DMC Portion $4.4 million Additional sewer capacity is needed for needed for development along 2nd St 2nd St SW Bidding and construction to begin in begin in 2018 © 2017 DMC •Bloom Waterfront (Bloom International Realty LLC) •21 1st Street SW (Ryan Companies US, Inc.) (Wells Fargo Renovation) •Holiday Inn Downtown Rochester (RHI Hotel JV, LLC) (Hotel Indigo) •Hyatt House Civic + First Rochester (First Civic Center, LLC) (American Legion Site) Project Approval Impact of Proposed Projects •Private Investment: $342M •DMC Investment: $11.82M •Hotel: 529 new/renovated rooms •Residential : 347 units •Retail: 43,517 sf •Office: 91,725 renovated sf •Parking:600 stalls •New permanent jobs: 456 •Construction jobs: 599 Jobs Growth Investment Tax Revenue •Annual New Property Taxes: $3.4M •New Property Taxes over 26 years: $88M MEETING METRICS DASHBOARD: YEAR 3/20 Projects Summary DMC Metrics Private Development Project Community and Social Benefits •American-made steel requirement •Women-and minority-owned business participation targets •Prevailing wage requirement •Supports affordable housing through new tax increment •Public space and amenities Evaluation Criteria DMC Vision, Goals and Objectives Development Plan Financial Viability Adopted Strategies, Phasing and Capital Improvement Planning Targeted Business Enterprise Strategies Economic-Fiscal Goals and Objectives Other Project Policy Considerations © 2017 DMC PROJECT NAME 1 Residence at Discovery Square 12 Heart of the City Public Space 2 Urban on First 13 Berkman Apartments 3 One Discovery Square 14 Ronald McDonald House 4 Associated Bank 15 501 on First 5 Titan Hilton Hotel 16 Conley-Maass Building 5a 1st Ave Parking Ramp 17 Mayo Civic Center 6 Bloom Waterfront 18 Creative Salon Site 7 Flats on 4th 19 Hyatt House 8 Lofts at Mayo Park 20 Saint Marys Place 9 Wells Fargo 21 Discovery Walk 10 First Avenue Flats 22 Castle Community Rochester 11 Chateau Theatre 23 Hotel Indigo 13 14 1 3 15 16 2 7 817 6 4 12 11 59 10 19 18 5a 20 21 No DMC Funding DMC Funding 22 23 Proposed for DMC Funding © 2017 DMC PROJECT NAME 1 Bloom Waterfront 3 Hotel Indigo 2 Wells Fargo 4 Hyatt House 13 14 1 3 15 16 2 7 817 1 5 9 10 4 18 5a 20 21 22 2 3 Bloom Waterfront 43,500 rentable square feet Phase 1: senior living/memory care units, food and beverage, retail and parking Phase 2: hotel, condominiums, rehab clinic, food/beverage, retail, parking and public realm space 498 total parking spots Downtown Waterfront Subdistrict Public amenities: river walk with water features, anchor at the end of Historic 3rd Street, fountain that can be converted into a winter ice rink and a winter garden Approx. 925,700 sq. ft. mixed use development (650,000 square feet building only) Bloom Project Details Bloom Project Details Project investment $230 mm Property tax increase from $222,596 to $2,588,733 per year 275 permanent jobs created Approx. 400 construction jobs Eligible public infrastructure-$46 mm Eg Land acquisition Parking garage Demolition Site utilities Site work Public Realm Landscaping Water feature Public park space Environmental remediation Bloom Support •Total Support Request: $20 million •Support Recommended: $18.05 million (with “look-back” provision) •City Portion: $12.03 million (City may provide an additional $2.65 million for additional parking) •DMC Portion: $6.02 million Bloom Next Steps •DMC Corporation Board Action •June 28, 2018 •City Council Action •July 2, 2018 21 1st St. SW (Wells Fargo Renovation) Glass lobby addition creating indoor space complementing Heart of the City Public Realm. Project has committed to targeting a 20% energy reduction Updated glass exterior providing significantly improved energy efficiency and a more contemporary exterior on Peace Plaza. Heart of the City subdistrict Approx. 101,200 rentable square feet Provides connection between subway, street and skyway Catalyst for public realm in the Heart of the City subdistrict Wells Fargo Project Details Wells Fargo Project Details Project investment $26.6 mm Property tax increase from $377,274 to $584,868 per year Retains current tenants and additional space provides the opportunity for new tenants to add up to 115 employees Approx. 30.5 construction jobs Eligible public infrastructure-$18.9 mm Eg Acquire real property Facade renovation Iconic glass corner lobby Connection between subway, street & skyway Wells Fargo Support •Total Support Request: $1.78 million •Support Recommended: Up to $2.4 million •DMC Portion: Up to $2.4 million Wells Fargo Project Next Steps •DMC Corporation Board Action •June 28, 2018 •City Council Action •July 16, 2018 Holiday Inn Renovation / Hotel Indigo Project will provide a prominent point of first impression to those entering downtown from S Broadway Close proximity to Bloom, part of a renovated 2 city blocks Includes a range of energy and sustainability design alternatives based on the project scope Downtown Waterfront Subdistrict Approx. 114,500 square feet Renovation of 173 hotel rooms, improved restaurant, ballroom, pool area, fitness center, expanded meeting /conference space and construction of a roof top bar off the 2nd story lobby. New glass facade and activation to 1st and 2nd floors Hotel Indigo Project Details Hotel Indigo Project Details Project investment $41.5 mm Property tax increase from $215,123 to $533,491 per year 28 additional permanent jobs created Approx. 111 construction jobs Eligible public infrastructure-$21.7 mm Eg Acquire real property Rehabilitate building-exterior facade renovation Public infrastructure-street level landscaping Promote tourism-addition of board room and meeting space Hotel Indigo Support •Total Support Request: $3.3 million •Support Recommended: $2.98 million •City Portion: $1.53 million •DMC Portion: $1.45 million Hotel Indigo Project Next Steps •DMC Corporation Board Action •June 28, 2018 •City Council Action •July 2, 2018 Hyatt House / American Legion Site Project will provide a prominent point of first impression to those entering downtown from West Civic Center Drive Project is pursuing green building certification barring any unforeseen economic and design impacts Project intends to achieve a 20% energy reduction Central Station Subdistrict Approx. 110,805 square feet 8 Story, 175 room extended-stay hotel 102 structured parking spaces Project has the potential to be a catalyst for other construction on the Northern half of the DMC District Hyatt House Project Details Hyatt House Project Details Project investment $44 mm Property tax increase from $20,634 to $540,295 per year 38 permanent jobs created Approx. 257 construction jobs Eligible public infrastructure-$31.1 mm Eg Land acquisition Demolition of building Environmental Remediate Public infrastructure Construct parking facilities Promote tourism Hyatt House Support •Total Support Request: $4.4 million •Support Recommended: $3.9 million (with “look-back” provision) •City Portion: $1.95 million •DMC Portion: $1.95 million Hyatt House Project Next Steps •DMC Corporation Board Action •June 28, 2018 •City Council Action •July 2, 2018 DMC Transportation Plan June 2018 Status Report & Next Steps Presentation Outline •Overview of progress since March 2018 update •Actions requested of DMCC Board •Next steps and future action items Progress since March •Finalization of the four Integrated Transportation Studies (ITS) •Completion of Executive Summary documents •Identify areas where recommended solutions may need further study •Preliminary work on development of Implementation and Phasing Framework •Developer’s meeting to discuss overall plan and TH52 freeway decking concept •Public outreach and community engagement sessions •Preparation of grant submittals Actions being Requested •Acceptance of ITS studies •Agreement on areas for further study and action •Feedback on Implementation and Phasing Framework •Resolutions of Support for grant applications Needs & Concept Development Full Alternatives Assessment Concept Design & Environmental Review Preliminary Engineering/ Design Detailed Design Procurement Construction Today DMC Development Plan April 2015 ITS: What has been Accomplished Will occur over the next 20 years at the individual project level. Acceptance of ITS Preferred Solutions •Travel Reduction/Travel Management Program Strategies •Parking Investment Strategy •Transit Service Investment Strategy •Street Investment Strategy •Active Transportation Investment Strategy Summary of Preferred Solutions Infrastructure •Commuter parking outside District •Resident, patient, customer parking in District •2 circulator alignments •Active transportation elements •City Loop, expanded bike network •Unified district design guidelines for streets Summary of Preferred Solutions Services & Programs •Transportation Management Association •Downtown area transit circulator •Expanded Park & Ride express bus •Primary Transit Network / BRT Core Corridor Service •Mobility Hub strategy •Autonomous Vehicle Potential (Long-term) Areas of Further Study and Action •Location of peripheral commuter parking/Mobility Hubs •Feasibility of potential Decking over TH52 •Refinement of BRT Circulator Routes: •Operations, Stations, Connections •Impact of Right-of-Ways on Private Property •Repurposing of General Travel Lanes •Reallocation and/or Management of current curbside parking Implementation &Phasing Framework •Identify & define specific projects to advance Transportation & Infrastructure Program •Each project assigned to a 5 year window when improvement is expected to be needed •Document anticipated costs, responsibilities, and dependencies •Revisit and update plan on regular basis •Likely to occur in conjunction with annual CIP preparation Implementation Plan Example Federal Grant Opportunities •BUILD Grants: “Better Utilizing Investments to Leverage Development” •Applications •Solar Powered Bus (capital grant) •Redesign/construction of TH52 / 14W interchange (capital grant) •Potential decking over TH52 (planning grant / no local $$) •Federal Transit Administration (FTA) Grants •No-Low Emission Program •FTA Transit Oriented Development Pilot Program Federal Transit Administration Grants •Low or No Emission Bus Program •Funding for purchase/lease of zero or low emission buses and supporting facilities •FTA Pilot Program: Transit Oriented Development Planning •2nd Street Circulator (Route 1) is eligible •Can address land use and redevelopment planning along corridor, station area planning, mechanisms for financing, and more. Actions being Requested •Acceptance of ITS studies •Agreement on areas for further study and action •Feedback on Implementation and Phasing Framework •Resolutions of Support for grant applications Reduce SOV Commuters INTO District * Aspirational Goal Minimum Target: 50% TODAY 2040 TARGET Number of Daily Commuters: 35,250 Number of Daily Commuters: 62,400 HOW CAN THIS BE ACHIEVED? •Provide Options •Manage Parking Demand•Add Density Downtown Travel Management Association Trip Matching Travel Options Incentives •Activate Travel Management Association •Online Travel Planning Tool (expected to launch September 2018) How it Works Get Started! Travel Reduction / TDM Strategies Parking policies Developer policies Implementation Facility improvements Active transportation Transit programs Education Shared mobility Examples may include: •Improved wayfinding •Free transit passes •Trip planning & ride matching •On-site showers & bike parking •Guaranteed ride home*A Transportation Management Association (TMA) is an organized body that facilitates and encourages alternate modes of transportation that are defined in a Transportation Demand Management (TDM) strategy. Parking Investment Strategy Parking Investment Strategy •Expand Park & Ride Capacity •Expand Transit Support Mobility Hubs, not just parking ramps Transit Investment Strategy BUS RAPID TRANSIT (BRT) CIRCULATOR Bus Rapid Transit (BRT) is a transit mode that uses buses and incorporates many of the premium characteristics of light rail transit (LRT). District Transit Circulator Phase 1:All day, all week service from Mobility Hub A to St Marys, downtown Rochester, Government Center to Mobility Hub B. Phase 2:Direct access to the Gonda Building from Mobility Hubs A & B. Provides direct access to the future location of UMR and other locations along 3rd/4th Avenue Cooridor. An Improved Street Network for All Active Transportation Strategy Downtown Bike Network Civic Civic Center Dr & 4th Ave NW East Center St @ Zumbro River Bridge System Cost Non Transit-Streets $29m Transit $300m City Loop / Bikeways $36m Commuter Parking $385m Subtotal $750m Other Parking (Primarily Private Costs) $460m Transportation Infrastructure $1.2B Estimated Program Costs $1.2B Federal State County CityPrivate DMC Other Diversity of Public-Private Funding to be used TH 14/52 Interchange Improvements BUILD Capital Investment Grant RPT Solar Powered Bus Fleet BUILD Capital Investment Grant •A pilot project involving the purchase of Electric Buses and charging stations. •Acquisition of electric fleet would be accomplished through two grants: •FTA Low or No Emission Bus Program(Buses and charging station) •BUILD Grant(Buses, charging station, and solar array) TH 52 Air Rights Development Study BUILD Planning Grant •Feasibility study and design investigation of a mixed use development with a Mobility Hub that spans TH 52. Civic Center Dr. Hw y 5 2 Public Realm Updates •Chateau Theatre •Heart of the City •Discovery Square •Saint Marys Place Chateau Theatre Current Status •Architectural firm, Miller Dunwiddie, is developing construction and bid docs -To secure and protect the building -To make improvements for interim activation Next Steps •Continue to engagement with Ryan regarding Wells Fargo connection •Commence construction for Interim Use •Develop interim use programming and management model •Develop RFP for full redevelopment proposal Heart of the City Current Status •Coen + Partners under contract for Design Development phase Next Steps •Schematic design reconciliation focusing on water feature, grand stairs, and balconies •Defining public art process •Integrating design with Ryan Companies/Wells Fargo building •Developing protoyping scenarios Discovery Walk Current Status •Schematic design phase is complete •Final report shared with City, Mayo, Community, DMC, and City Council Next Steps •Intergrating project with design of 4th Street reconstruction •Develop interim activation strategies to test design concepts •Projecting catalytic impact on future development Saint Marys Place Status •Schematic design phase is complete •Presentations to City, Mayo, Community, DMC EDA, DMCC, and City Council Final report under revision Next Steps •Apply design concepts with upcoming projects, including 2nd Street redesign •Prototype or demonstrate project ideas Energy and Benchmarking Discussion June 28, 2018 © 2018 DMC 2015 –DMC Plan Approved 1. Established eight goals for sustainability, human health, and transportation environmental outcomes 2015 –DMC Approved CEE Sustainable Options Report Key Goal: 1. Achieve carbon neutrality across the DMC District Methods: 2. Implement a progressive, responsive, and resilient district energy network in the country 3. Convene the Energy Integration Committee 2016 –McKnight Grant to Support Sustainability efforts and hired personnel Focus Areas of Position: 1. District Energy 2. Sustainability in New Construction 3. Sustainability in Existing Buildings 4. Create a Sustainability Culture DMC Sustainability Timeline Carbon Neutrality is an ambitious goal 1.Globally, 19 cities have committed to carbon neutrality goals –Most of them have a longer timeline (2050) than the DMC project (2035) 2.Nationally, 5 colleges have achieved carbon neutrality To achieve carbon neutrality need to address and seek guidance on the following two topics: 1.New Construction 2.Existing Building Efficiency Other Strategies: 1.District Energy System Planning 2.Renewable Energy Infrastructure 3.Culture of Sustainability 4.Incentive Programs DMC District Sustainability Focus Areas Resource Reduction: •Water –Reduce consumption below 2012 levels by 2030 •Materials and Waste –Reduce total waste generated by 30% below 2012 levels by 2030 •Energy –Reduce EUI and consumption by 25% below 2010 levels by 2030 •Climate –Reduce DMC-wide emissions per square foot by 80% below 2005 levels by 2050 Plan lacks specific project detail, so difficulty is how best to apply these overall goals to new projects and existing buildings New Construction –Current Approach •Approach: •Early conversations with developer •Review design expectations and sustainability outcomes for design •What we learned: •Often projects are farther along in design to easily integrate sustainability measures •Developers want to know the expectations –sustainability and financial •Redundancies in application •DMC Sustainability Goals don’t easily apply to individual projects New Construction –Desired Process Integrate sustainability elements into the DMC funding application Key Components: 1.EUI target from project’s inception •Must be 20% below energy code 2.75% diversion rate 3.35% water reduction 4.50% irrigation reduction 5.Alternative Transportation elements 6.Third Party Certification 7.Energy Benchmarking Key Tools: 1.Energy Targeting 2.Energy Modeling 3.Benchmarking Existing Buildings –Current Approach 1.Pairing education with case studies, incentives and programs •Education: Sustainability Series and presentations •Case Studies: City Energy Conservation Projects / Affordable Housing Energy Conservation •Incentives: prescriptive retrocommissioning incentives evaluation •Programs: Voluntary Energy Benchmarking •Seek guidance on how to strengthen approach 2.What we learned •Difficulty reaching commercial sector •Many entities unaware of their utility bills –are they paying too much? Existing Buildings: Desired Process 1.Key Recommendation: •Establish a voluntary energy benchmarking program for Rochester 2.Stakeholders: •City of Rochester •Olmsted County •Rochester Public Schools •Grow to commercial / non-profit / higher education 3.Why? •Provides tool for owners to track their energy consumption •Ability to benchmark performance to others •Compliment with incentive opportunities •Improve facility energy performance at scale Other Strategies Under Development To achieve carbon neutrality need to address and seek guidance on the following two topics: 1.New Construction 2.Existing Building Efficiency Other Strategies: 1.District Energy System Planning 2.Renewable Energy Infrastructure 3.Culture of Sustainability 4.Incentive Programs 1 2018 Marketing Update 2016: Retained Minneapolis-based ad agency Clarity Coverdale Fury as agency of record; research, marketing plan and creative development Marketing timeline 2018: Audience refinement; hyper targeting and lead generation, build consideration and conversion 2017: First full year of marketing – build brand awareness; increase dmc.mn traffic © 2018 CCF 3© 2018 CCF 4 Market map © 2018 CCF Regional: Maintain awareness of DMC progress National: Hyper-target investors, commercial real estate and bioscience professionals via digital strategies and at conferences/tradeshows 5© 2018 CCF Native Geo-targeted mobile banners Display banners LinkedIn ©2018 CCF 6 Key results *Display banner CTR benchmarks range from 0.08% -0.15% •Exceptional banner performance, 3x benchmark click-through-rate (0.26% v. 0.08%) •Time on dmc.mn of 2:30 (1.5x benchmark), up 49% v. 2017 average •80% of videos watched start-to-finish (benchmark 70-80%) •92 qualified leads generated on LinkedIn from categories including financial services, construction, hospital and healthcare, real estate and hospitality ©2018 CCF 7 Top Performing Display States Top Lead Generating States Highest Engaged Markets Engagement clusters: national success 8© 2018 CCF •Investor & Developer and Discovery Square pages saw significant growth •Contact us now one of most popular pages Page Rank 1st Half 2017 2nd Half 2017 1st Half of 2018 #1 Home page Home page Home page #2 Blog post Blog post Investors-Developers #3 Maps Maps Maps #4 Blog post Blog post What is DMC #5 What is DMC Blog post Plans-Priorities #6 Plans-Priorities What is DMC Discovery Square #7 Blog post Blog post Blog Home #8 Blog home page Discovery Square DMC Corporation #9 DMC Corporation Blog post Events #10 Investors-Developers Blog home page Contact Us Top pages visited comparison on dmc.mn Thank you. 9© 2017 CCF