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HomeMy WebLinkAbout031400 ORD - 03/27/2018 Ordinance adopting Downtown Area Development Plan; rescinding Central Business Development Plan; and amending comprehensive plan. WHEREAS, the Planning Commission has forwarded to City Council its reports and recommendations concerning the adoption of the Downtown Area Development Plan. WHEREAS, with proper notice to the public, public hearings were held on Wednesday, August 23, 2017, during a meeting of the Planning Commission, on Tuesday, September 26, 2017, during a meeting of the City Council, and on Tuesday, March 20, 2018, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; WHEREAS, City Staff invited the public to workshops and public meetings that were held on November 18-20, 2014, February 24, 2015, and May 21, 2015 to give input to help develop a Downtown Area Development Plan for Corpus Christi, and to receive public feedback, City Staff held an Open House regarding the Downtown Area Development Plan on July 24, 2017. WHEREAS, a Community Advisory Committee provided guidance and assistance throughout the process and staff coordinated with various community agencies. WHEREAS, the city shall use the Downtown Area Development Plan as a guideline to facilitate other plans that the city considers necessary for systematic growth and development. WHEREAS, the City Council has determined that these amendments would best serve public health, safety, necessity, convenience, and general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE FT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Corpus Christi Central Business Development Plan, previously named the Corpus Christi South Central Area Development Plan, adopted by City Council ordinance #025658 on February 17, 2004 and amended by City Council ordinance #029842 on May 28, 2013 is hereby rescinded. SECTION 2. That the Downtown Area Development Plan amended to remove -R5 Road diet-6 to 4 lanes-Shoreline Blvd Phase II roadway improvements (Cooper's Alley to 1-37 3,250 If); convert 2 lanes to parking and/or public space" Infrastructure initiative from pages 48 and 49, including: vision themes, priority policy initiatives and 031400 implementation plans, infrastructure initiatives, district framework, framework for development guideline's within TIRZ #3, transportation initiatives, and all other components of the Downtown Area Development Plan, are adopted by this ordinance to read shown as exhibits attached and incorporated by reference: A. Downtown Area Development Plan as amended, B. Appendix A, Real estate market analysis documents for housing, office, hotel, and retail. SECTION 3. To the extent that the amendment made by this ordinance represents a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the amendment made by this ordinance. The Comprehensive Plan, as amended from time to time and except as changed by this ordinance, remains in full force and effect. SECTION 4. The City Council intends that every section, paragraph, subdivision, clause, phrase, word or provision hereof shall be given full force and effect for its purpose. Therefore, if any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, that judgment shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance. SECTION 5. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. That the foregoing or ina,ce was read for the first time and passed to its second n ` reading on this the iday of ` vadyci-g2018, by the following vote: ______C* Joe McComb (01, , Ben Molina Rudy Garza 4Lucy Rubio i� Paulette Guajardo 0 Greg Smith f f Michael Hunter _____a+ V A_A– Debbie Lindsey-Opel A g., That the forsggoing ordi`n�nnce was re dfor the second time and passed finally on this the Cr; 1 ''day of _ I V1 Ca-r2018, by the following vote: Joe McComb rte„ I ' Ben Molina I Al Rudy Garza i— Lucy Rubio I ad ., . Paulette Guajardo 0 )! Greg Smith ____Ily . Michael Hunter /..A: -_____=a4L2 Debbie Lindsey-Opel PASSED AND APPROVED on this the a� day of ' C17-2018. ATTEST: k I . / ," ljtv,' 7, K. - / Rebecca Huerta Joie c omb City Secretary M:y.r Mo3Y4 (:)C lill do n owr area, Ilove II I an CORPUS I 4k 14 C - r MARCH 27, 2018 r y EXHIBIT 1 AREA DEVELOPMENT PLAN Acknowledgements ADVISORY COMMITTEE MEMBERS Ms.Maureen Brooks Ms.Darlene Gregory Ms.Jaime Nodarse Treasurer President Assistant Vice President of Development Hillcrest-AL.Leathers-Solomon Coles Neighborhood Uptown Neighborhood Initiative Texas A&M University-Corpus Christi Council,Nueces County Community Action Agency Mr.Gabriel Guerra Dr.Gilda Ramirez Mr.Jim Charnquist President-CCMarket Westside Business Association, President Kleberg Bank,Type A Board United Corpus Christi Chamber of Commerce Sage Properties Corporation, Ms Casey Lain Ms.Carrie Robertson Meyer Bay Vista Developer House of Rock, President Mr.Brian Connor Downtown Management District Board North Beach Community Association President of Memorial and Shoreline Hospitals Mr.Brett Loeffler Mr.GordonRobinson CHRISTUS Spohn General Manager Director of Planning Mr.PeterDavidson LAZ Parking Central Texas CC Regional Transit Authority Marina Superintendent/Director City Marina Ma a OmarLopez MTerry Sweeney Corporate Communications Manager Executive Director Mr.Bill Durrill Texas AEP, CC Downtown Management District Durrill Properties,SEA District Dia de los Muertos,Homeless Advocate Mr.Victor Vourcos Ms.Brigida Gonzalez Mr.Rueben C.Medina Advance Project Development Engineer Assistant Transportation Planning Director Director of Business Development Texas Department of Transportation CC Metropolitan Planning Organization Port ofCorpus Christi Authority Ma Henry Williams Mr.Rocco Montesano President Executive Director Hillcrest Residents Association U.S.S.Lexington Museum on the Bay EXHIBIT A Ordinance adopling D.WrIld*n Are. DevelOplr4ont Plan; SECTION 4,The Gilt'C—cil nlendslhel every 3echan,paragraph,iubdlvimlon, ros-indinq Central Bimness Develffprmont Ppan;and atnainel lg dausu,phrase,word w pro-vls1w hFreot shall he glyan 4,M ioecfl and 010CI for Ns carnprrhensiwn plan. p,q.—ThAnniota,d any-ctlor.,partt{praph,nlhdivislan,cloom phrase,word or provaslon of Ws ordhlrnce 1=held invalid or,rh0JLH3blullonal by kraal Judgment.of a WHEREAS,the Planning Commisslon has forwarded to City Cound As repw1% cot,-t of comp®leak Jur:sdlclio-.T that judgment shah nal affect any olber seidbw, and recomrendalkms concerning the adQpillon of the Ovwntowri Arra 1)wmlopmanl paragm^aubdivismc.clause.ulrraso.word or provislon of this tudieaance. Plan. SECTION 5. Puhllca uon snau be made in Use arfcial publiralion of LTie Gay of CorpL-- WHEREAS,with propar nrltir.to the putVlic,public hmHnoz ware held on Chnsll as requlred by lyre City Charier al Lille Glly of Corpus Chdsti. Wednesday,A.uga-I 23,2017,during a mealing of the Planning Gomrnission.era Tuasdey.SeAer-bar 215,2017,during a meeurtg of 1he City Caundl,and on Tuearlay.March 20,3016.durft a meeting of Uwe Ctly Cflundl,In Mie Co,oitd Chamk>tra,al City Hall,in the City a4 Gafpuii Chriell.during whims all inlaressied persons witre allowed l0 appear and be heard; ThaL 14,41 Furegatnij d @�1a+�,r:'Was r2.7d For the f t drgc a+d pa sin to Its necond twang cn wars rhr Fy of r-4,vld,41(),12478,by Lhe FallowAng vine: WHEREAS,icily SLarl Inviled the public to workshops and pybliu meetings thal were held nn Nauember 18-2D,2044,February 24,20f 5,and May 21,20'51u give f pllt to help d.Q0.p n Downtown Area Dewelopmenl flan for Corpora Chi mli.and 1a Jw:McComb 6111 Dan Maine +~ �- receive public femlbaclt,Cily Staff held an Open Houae regasding the Du ynt�.yn luea ❑aveldpmenl Plan on July 24.2(117. Rudy Garza Lucy Rubio WHEREAS,o Community Fid issory Committee provd,ad gala mce and Paulette Gualarda _ �{�`— Ging Smith assialance Throughout the proc ss aAd Ataff omdlAaled with various community IiDwcies. Michael Hmnlef WHEREAS,the ally ahall use the CaWnlawn Area Development Plan as a onbie,Lind5sy-'3ver r vu Mlne Go Facilitate cthi r plans Thal the city wnmdders nerx.syery for sy stemdg, (} orowlli and developmeril. %4EREAS,the Cily Council tim dnier"mrped diol.Lhase amendmens wovrW best serv®pwhic hesllh.Sataly,nec—E:Ly.tnv"Ien t,arl.d general vrellara Df die 1111el I4, rr Ing ord.d ice war:ra9lwdfor the wewrld IlrIe and pos5ed finrNly on[Mm Cily of Corpus Chrtslr and IIs citixnns +»e I"ifay 41LL, t.�Y-r ZDiB,by the foliamog vole. NoWu THEREFORE,BE R ORDAINED BY THE CITY COUNCIL OF THE CITY !rad McGdn6 Ben Mawna Of CORPUS CHRISTI.TEXAS: '$'ECTION 1,That Lhe carpus Chrise Central 6uatnesa Develspm"l Plan,prnvously -Rudy Garza LLrcy R.ubta named Me Corpus Gnrisll Saith Central Area{levedopmeni Plan.adapted by City l' Cr ldlpMlnanm#025658onFebwwy17.204andamendedbyCiryGwncl PaLd-tteGua;eatn �-I, Gteg'S"lh ofdhlarlceil ll]88A2 on May 2Js,2013 Is hereby resdnded. Michael H rMer Vac 0-sa 9E.C1170114 il.That Ute D4TrYrt lQvtn r+iea'17esrebpxneni Plan­M ut J I,u. .,oc.R, iUo'dh4e Lind5oy'31"`il Sad diel 9 lQa an hnrQl ne Stud Phase II+oeclway,mp yJ rienu AllP_y IQ 1-.1_7 ]�a �riNen 1`e�E'�ro ca•kI7C a�dlnr aJd11C 59a[+P InrL-d81ir.SlbrP Ilii se___JI a f`pa End a0.Inyudincx v sten l emir.ornrrity Llerlce+rilliaMvea a w smplerrreerlaLton plans,in[rasirucrwe inilislives-d�Gicl lnanvev.erk,frarrrewarl Ta develnpntant rgrideline's wHhin TIRZ 1193,Irartsporiallen midaiives,and a1 other camponanlm of Uta Doymlown Area Davelopment Plan,are ddopled by II G ordlnamm PAESE€7 AND AP PROYED on lir li tna ! day a 7 r r[1 R X416. to read shown as erhlblls alladtad ar•d w wrpp aletl by raferessa A. dowr,Lgwn Area Davdldpm.r,l Plan ATTEST: B. Apillendbt A.Real astels market analysis documasts for housuig.afllce, hQIe1,anil rl l_7 Owl il�. J/' ) 4_ _��- L . 'C SECTION 3.To die extant ftl this amtxrdmenl made by this ordlni;rn"repre"nia a Reheoca Huerla Jca wconib devialron From the Camlimhanelve Plan,the Camprehenslve Plan is Amended k7 City Secretary cxrnforrn to the amandmarsl made by dtl:s ordinance.The Comprehanstva Plan,as amended From Lime'tc Lima and er.cePl as c4angreiJ by d11s ard'u,anc,@,r@main%m lull *�t torte end effect. EXHIBIT A CONTENTSQ 1. Introduction:A new era of opportunity.................................................................l in Corpus Christi Shaping the Downtown Area's future:A unique moment..........................................................2 The DADP aligns closely with Corpus Christi's citywide plan...................................................7 Downtown vision themes.......................................................................................................................8 �r A community-driven process.............................................................................................................10 Taking initiative to seize the opportunity......................................................................................12 Workingtogether....................................................................................................................................14 I �►_� -- 2. Priority Policy Initiatives and Implementation:.....................................17 - r. How to build the Downtown Area vision -. Vision themes and policy initiatives................................................................................................19 Frameworkdiagrams............................................................................................................................40 V. Infrastructure initiatives.....................................................................................................................48 ILI ii PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A 3. District Framework and P�o�t�m _____� Targeted~ for ���0�� tand connected - 00 Corpus Christi MarinaArts District..............................................................................................................................o4 BayshoreNeighborhood.......................................................................................................................*u ° | Uptown and Surrounding Neighborhoods.....................................................................................*o Washington-Coles Hulezut.....................................................................................................................................................r4 SEADistrict..............................................................................................................................................ro NorthBeach.............................................................................................................................................. 4 | 4. Development Guidelines for TDRZ#3......................................................................oe Guidelines urstreet corridor..............................................................................................................ou Generalguidelines..................................................................................................................................on 5. Transportation _-_-_-_-_-'_--.or Harbor Bridge opportunities..............................................................................................................oa Dormntowuuzeaucconuunzovomouts----------------------------.u)o rzouoitultozuatmoo-----------------------------------------.u)u V71 - °w� w � Parking 104 Ile ~~~~~~~~~~~~ ^used imthis document zn* ` Appendix A. Real estate market analysis documents for housing,office,hotel and retail [available separately] EXHIBIT PLAN oDOWNTOWN AREA DEVELOPMENT PLAN / MARCH o.,mo 1 /// r� sf 7� �....Ir "-��° e• �..�- �� r �lE.~ � Y _ ..-.fir^ '�-�• .r Ll s _ r ` IT A Corpus Christi Marina Introduction A new era of opportunity in Corpus Christi he Downtown Area Development Plan(DADP)is an action-oriented,market-driven strategy to generate economic growth and quality of life in Corpus Christi over the next 20 years.The DADP builds on past planning efforts and current investment in the city,and is part of the Plan CC Comprehensive Plan initiative.At its heart,the DADP aims to establish Corpus Christi as a premier 21st Century waterfront city in Texas,with safe,vibrant,walkable,and connected districts in which to live,work, learn,and play. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 INTRODUCTION I A new era of opportunity for Corpus Christi SHAPING THE DOWNTOWN AREA'S , FUTURE:A UNIQUE MOMENT This is an exciting time for Corpus Christi.At +� • �F 'i a moment when people of all ages across the 1 country are seeking out great urban places to !ky- live,work,learn,and play,the Downtown Area isgoo primed to capitalize on its unique strengths—its ' spectacular and '�" •^ ,!._ } The Downtown accessible wa- .. ter&ont,unique Plan emphasizes destination attrac- f•_ --�= "how"to get tions,people and _ 7 things get done, neighborhoods, +� as much as and proximity to - jobsandtranspor- tation options. � The Downtown Area addressed by this plan' large and encompasses several related areas: - • The Traditional Downtown core—now brand- R ed the Marina Arts District—and Uptown • The SEA(Sports,Entertainment,Arts)District Arts and cultural attractions Infrastructure and development initiatives that • Washington-Coles and Hillcrest neighbor- Major destination attractions,including the are already completed or in the works open a hoods(note that Hillcrest is in Corpus Chris- USS Lexington,Texas State Aquarium,Art Mu- wealth of possibilities for further investment ti's Westside Planning Area) seum of South Texas,Corpus Christi Museum that will improve Corpus Christi's near-and • North Beach of Science&History and several others long-term future.The planned Harbor Bridge Tod •each area has its strengths and weak-ssMajor convention and meeting facilities at relocation creates a once-in-a-lifetime opportu- neesAmerican Bank Center nity for the City to work closely with the Texas di s But taken together the Downtown Area's Minor League baseball at Whataburger Field Department of Transportation(TxDOT),commu- stricicts include many of the ingredients that nity leaders,and private developers to transform provide the foundation forrsuccessful and vibrant Because of its large size,the overall Downtown the SEA District,Washington-Coles,Uptown, downtowns: Area will continue to develop as a number of Downtown and North Beach into more walkable be • attractive waterfront setting that combines distinct areas with their own unique identities, and connected places.Streetscape improvements beaches,parks and marinas offering complementary attractions and expe- have made Downtown segments of Chaparral • An active,walkable district centered along riences.Over the longer term,these areas will Street and Shoreline Boulevard delightful places Chaparral Street become more strongly connected,while retain- to walk.As such,they also invite people to live • Restaurants and entertainment venues ing unique identity and character. and work,to enjoy entertainment and tourism, 2 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A INTRODUCTION I A new era cfopportunityfor Corpns Christi and explore accessible,welcoming waterfront major driver of downtown development nation- DOWNTOWN AREA DEVELOPMENT OFFERS activities that all support each other.The Down- ally)is beginning to take root downtown,there CITY-WIDE BENEFITS town Area has always been and remains a key is significant work to do to tap the full potential Downtown Area destinations matter signifi- driver of Corpus Christi's identity.It has the that downtown offers as a housing location.This cantly to the local and regional economies—par- greatest opportunity in a generation to become a plan,therefore,focuses on the actions that can ticularly visitor attractions located within the much deeper source of community life and pride. most effectively diminish the challenges posed SEA District and North Beach.In 2014,approx- by the Downtown Area and open up invest- imately 2,750,000 people flocked to the Texas CHALLENGES TO OVERCOME ment—particularly private investment—that is State Aquarium,USS Lexington,Convention The Downtown Area has notable strengths but naturally attracted by the downtown's assets. Center,Art Museum,Museum of Science and it continues to struggle to attract development Downtowns are inherently complex places, History,Whataburger Field,and Hurricane Alley, and businesses due to low foot traffic,a phys- and a plan helps organize the actions of many an increase of 47%in just three years.These ical environment designed more for cars than people around common purposes to draw great attractions,together with the Downtown Area's people,rent levels too low to justify redevel- value from a downtown's intensity of activity. nearly 40%share of Corpus Christi hotel rooms, opment costs,unpredictable status of various Downtown Corpus Christi already has many anchor citywide visitor destination spending infrastructure and development projects,some stakeholders who are taking important actions that exceeded$1.2 billion and provided an challenging adjacencies to industrial activity, toward well-conceived goals,but who also could overall economic impact of over$1.5 billion for perceived lack of safety or cleanliness in places, achieve more,sooner,through increased coordi- each fiscal year 2012 and 2013.This infusion of and a traditional office-dominated identity that nation of these actions.Thus the Downtown Area outside spending continues to grow.The tour- does not reflect the much more diverse activity Development Plan emphasizes"how"to get things ism industry supported almost 29,000 local jobs and market opportunities available today.While done,as much as"what"gets done. either directly or indirectly in 2013.1 there are signs that residential development(a 1 Source:Email correspondence with Corpus Christi Convention and Visitors Bureau,March 12,2015 I- 0 41 edwith The planned replacement of the existing Harbor Bridge with a New Harbor Bridge creates opportunities for significant change,including new connections and development opportunities amidst several Downtown Area districts(panoramic view looking north from the Frost Bank Tower). EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 3 INTRODUCTION I A new era of opportunity for Corpus Christi The Downtown Area offers broader quality of life A MARKET-DRIVEN PLAN: SETTING THE growth in downtown housing has been a key benefits to Corpus Christi as well.Besides the STAGE FOR PRIVATE SECTOR INVESTMENT driver of downtown revitalization efforts across signature visitor destinations highlighted above, A key foundation of the DADP planning process the country,and the potential for Corpus Chris- the area's beaches,parks,marina,restaurants,art has been an assessment ofthe downtown's mar- ti to benefit from this trend is very strong.The centers,churches and other amenities enrich life ket potential to attract new private sector invest- Downtown Area already attracts existing Corpus for residents on a daily basis.As the Downtown ment. These analyses have identified significant Christi residents as well as people living outside Area gains a stronger dimension as a neighbor- opportunities for downtown growth and devel- the city(and region)who are looking to relocate hood—while continuing to be a hub of business opment,provided that some key barriers can be to a downtown setting with high quality of life and tourism—the added residential character eliminated.The DAPD outlines the opportunities and walkable destinations.This interest comes will raise the value of the Downtown Area not and presents strategies to remove the barriers to from a wide spectrum of household income lev- just as a place to live,but also to work,learn and capturing this growth. els.Yet today there are relatively few good quality play.Downtown can offer housing options and a options for living in the Downtown Area,wheth- type of neighborhood environment not currently Analyses of Downtown Area's residential,office, er at market-rate or more affordable rent levels. available in other Corpus Christi neighborhoods, hotel,and retail real estate market potential— helping the city attract and retain a more diverse conducted as part of citywide market analysis for There is market potential in the Downtown workforce with abroad range of skills.This will plan CC—shape the DADP's plan of action.New Area for 1,850 market-rate apartment and further enhance quality of life and economic housing offers by far the strongest invest- townhouse housing units over the next opportunity for the whole city. ment opportunity.This is significant because five to seven years—primarily multi-family __4r uL&Jw—, New grocery on Chaparral Street Shoreline promenade Farmer's market at the Art Center of Corpus Christi 4 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A INTRODUCTION A new era ofopportunityfor Corpns Christi units focused in the Marina Arts,Bayshore Neighborhood and SEA District with poten- tial for additional mixed-income housing in Washington-Coles,Uptown and North Beach. sy 1 This market demand responds to the Down- town Area's unique appeal as a center of walkability,amenities and character unequaled in the region. > For those 1,850 units,market potential by unit type translates to approximately 1,000 ' rental lofts or apartments,500 for-sale lofts or apartments,and 400 for-sale townhous- es.These unit types are especially suited to reinforcing a walkable,active character in the Downtown Area;no other part ofthe city would attract such a strong concentration ofIMAGE , CORPUS multi-family and attached units. >Additional demand for single-family de- The 2017Fiesta de laFlor attracted 55,000 people to the SEA District,with an estimated economic tached ownership units may also be present; impact of$15 million. approximately 20%of households interested the rest.Total Downtown Area population pated,and could be accommodated by existing in living in the Downtown Area would prefer growth over 15-20 years could exceed 8,000 vacant space.Downtown's emergence as a live- a single-family unit.Single-family units people,assuming each household contains ly residential neighborhood will,however,help do not offer sufficient economic value or an average of approximately 1.5 people. stimulate Downtown Area business growth by benefits to walkability to be appropriate in > This market potential does not always creating a more active,appealing and ameni- much ofthe Downtown Area.However,those equate to immediate development feasibili- ty-rich setting for business,and attracting and portions ofthe area where single-family ty.As in many downtowns,public incentive retaining valuable workforce. detached dwellings are traditionally present policies will be needed to catalyze new real The hotel economy in Corpus Christi is would be appropriate places to develop new estate development,providing near-term healthy,particularly in the Downtown Area single-family detached ownership housing financial assistance that unlocks strong where tourism and destination visitors are on compact parcels.These areas principally longer-term returns to the city in terms of dominant markets.The market has grown by include portions of Uptown west of Staples tax revenue,Downtown Area vitality and 2A%per year in the last 10 years.Market anal- and south of Agnes,Washington-Coles west attraction of additional private investment. ysis conducted in 2015 indicated healthy de- of Staples,and northern portions of North Downtown office growth has more modest mand for hotel rooms in the Downtown Area. Beach. prospects,as regional office growth is project- This outlook was validated by subsequent > Younger singles and couples(millennials) ed mainly in administrative and support indus- development proposals for nearly 500 rooms make up the primary target markets to fill tries that are not typically downtown tenants. in five new hotels in the Downtown Area,split that new housing(68%),with empty nest- Up to 100,000 square feet of Downtown between the SEA District and Bayshore Neigh- ers and retirees(19%),and traditional and office demand in the next 10 years is antici- borhood.Demand for additional hotel rooms non-traditional families(13%)comprising EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 5 INTRODUCTION A new era of opportunity for Corpus Christi such as the South Padre Island Drive(SH 358) community there,downtown offers students an and other auto-oriented locations,the Down- attractive location for studying and living,and town Area offers Corpus Christi's strongest the program operates independently ofthe main concentration ofdining and nightlife des- campus.The university has explored potential a tinations.Numerous choices for live music to place the arts program downtown in reno- and unique,locally-owned venues set the Down- vated or leased space in the past,but has not town Area apart as a destination for locals and yet acted on this goal due to cost challenges.A visitors alike.Growth opportunities include: collaborative effort between the university,city > Small(100-person)and mid-sized and/or downtown property owners to overcome (1,000-person)live music venues; these challenges is encouraged,as the program's > Nightlife with an added"twist"such as bowl- presence downtown would yield value not only ing,dueling pianos or an arcade, to for the university and its students,but also > Destination dining,especially restaurants for downtown as an additional arts partner and North Beach that are regionally-based or have just one daytime center ofactivity. Corpus Christi location;and > Mobile retail,such as food trucks Downtown investment in development,programs A growing residential population will also help and infrastructure is happening at its highest level • `"� diversify Downtown Area retail to include new in decades and sets the stage for a substantially I choices appealing to residential,worker and higher level of investment capitalizing on the mar- �I1 - visitor markets alike—such as a drugstore, ket opportunities described above.Demonstrating l d limited-assortment grocer,family restaurant/ Corpus Christi's Downtown Area housing market diner,discount variety store,coffee house, potential,ongoing or recently completed down- and other specialized services.There is also town housing development has added 615 new untapped market potential for several poten- market-rate units,between the Cosmopolitan, North Beach Gateway tial destinations that could serve as valuable Atlantic Lofts,Nueces Lofts,Bay Vista,and Bay daytime anchors:an outdoor outfitter,a fami- Vista Pointe.Other initiatives in the Downtown besides these proposed projects is not antic- ly-themed amusement destination(in addition Area that reflect market interest include new boat ipated in the near term.However,additional to Hurricane Alley Waterpark),and an art slips at the marina,Bayfront Inn redevelopment hotel development proposals in the Downtown supply store(if Texas A&M-Corpus Christi's and a new hotel on Shoreline Boulevard,addition- Area should be welcomed if market demand Master of Fine Arts program locates down- al hotel development planned in the SEA district, for them can be demonstrated.A convention town,see below). the new Corpus Christi Regional Transportation hotel supporting the American Bank Center is Relocatingthe Master of Fine Arts program Authority transportation center in Uptown,Texas desired as a strategic resource to expand the of Texas A&M-Corpus Christi downtown State Aquarium's$60 million expansion in North visitor economy. represents another valuable development or Beach,and community enthusiasm for park im- • Downtown Area retail and entertainment tenanting opportunity.This graduate-level provements along the former Shoreline Boulevard offerings have a distinct and deepening market program would be particularly well suited right-of-way and Sherrill and McCaughan Parks. niche.While shopping in Corpus Christi is pri- to a downtown location because faculty and marily driven by areas outside the downtown, students can connect with the established arts 6 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A INTRODUCTION I A new era ofopportunityfor Corpus Christi THE DADP ALIGNS CLOSELY WITH ff-1rTVTTMTTT".T.7M THE DADP SUPPORTS THE VISION BY- CORPUS CHRISTI'S CITYWIDE PLAN Our broadly diversified Supporting Downtown Area business growth with more attractive, The Downtown Area Development Plan economy provides walkable settings for tourism,dining,office-inclined industries,and (DADP)was created in parallel with the Plan opportunity for all. other business activities. CC Comprehensive Plan for all of Corpus Helping attract and retain skilled workforce by substantially expanding the number and variety of Downtown Area housing Christi,so that both plans,and the com- options-featuring qualities and amenities not available in other munity conversations that informed them, portions of the City. shared a common base of information, ideas,priorities and initiatives.The table at Modernized city services Identifying priority infrastructure investments that can be cost- right highlights key elements of the Plan and systems support effectively paced with market-driven real estate development. CC Vision in the left column,and how the growth and vitality in all parts of the city. Applying updated TIRZ incentive policy to help fund infrastructure DADP supports these in the right column. investments. • Reconnecting districts and opening up attractive development sites,by restoring the street grid after removal of the old Harbor Bridge from the SEA District and North Beach. • Getting more out of existing streets and parking through new man- agement partnerships and better public information. High-quality,safe, Leveraging market opportunity for downtown housing and connected,and diverse supportive retail,through cost-effective TIRZ#3 and other neighborhoods provide a development incentives. variety of living choices. • Applying building design guidelines to enhancing the quality of properties and public spaces,putting more doors,windows,people and plantings people on the streets. • Creating a more complete set of quality transportation choices- emphasizing walkable sidewalks,safe bike routes,convenient bus services,and improved options for driving routes and parking-to connect the Downtown Area better with other parts of Corpus Christi. Stewardship of our Improving access to,and appreciation of,the bayfront and destina- natural heritage and tion parks by filling gaps in the Downtown Area's remarkable park green-space networks and pathway network strengthens our unique Encouraging sustainable building design and preservation character and supports resilience. techniques through downtown area development incentives. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 7 INTRODUCTION 1 A new era of opportunity for Corpus Christi DOWNTOWN VISION THEMES Five major themes,responding to priority goals voiced by community members,guide Downtown Area Development Plan initiatives: I � ns'9; J Encourage market- Create more : Complete a driven development. housing choices. : waterfront park The established Tax Increment Reinvestment While much of the demand for downtown liv- and trail network. Zone[TIRZj is a powerful and underutilized ing can be accommodated by the private de ; The Bayfront is the Downtown Area's signa- tool that can make new development possible velopment industry,assisted in some cases by ture amenity,enhancing quality of life for all by funding street and utility improvements the TIRZ,proactive effort is needed to expand ; city residents and attracting residents and and short-term tax rebates using the new tax options for all residents.Households of more : visitors to the region.The Marina,Sea Wall, revenue it creates.This well-conceived pro- limited means will particularly benefit from ; Shoreline Boulevard,Beachwalk,and other es gram can help a wide variety of development living amidst the Downtown Area's concentra tablished parks and pathways already provide projects take advantage of the strong market tion of jobs,services,transportation choices, an impressive level of access to the Bayfront, interest in living in and around Downtown. and established neighborhood communities. : but would join into a more memorable and convenient network,attracting more residents and visitors,with the completion of a few missing pieces.The New Harbor Bridge project and other planned improvements will make major progress toward this goal. 8 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A INTRODUCTION 1 A new era of opportunity for Corpus Christi � t -V" The ideas and strategies documented here arose from a collaborative and community-driven ` eight-month process ofstakeholder interviews, open houses,walking tours and public work- ' . shops in which Corpus Christi citizens and : business owners played a central role.Diverse : stakeholders have come together to champion an n inspiring revitalization ofthe Downtown Area, investing significant time and offering awealth of input and insights into the actions that will un- lock the city's great potential.See the following ; pages for more on this community conversation. Reconnect Celebrate this unique neighborhoods. place to live, work, Removal of the existing Harbor Bridge creates learn and play■ an unprecedented opportunity to reconnect An extensive array of visual and performing Uptown,Washington-Coles,the SEA Dis- arts already infuses much of the Downtown trict,Marina Arts District,and North Beach : Area,and will become a stronger core of with walkable streets lined with high-quali- Corpus Christi culture as more residents and ty development.Attractive landscapes and : visitors come to experience them.Corpus architecture scaled to people will transform Christi's highly successful Marina and down- the experience of arrival in North Beach,the town will grow together around streets that Downtown Area Bayfront and surrounding are active day and night with people living, districts. visiting,learning and working. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 9 INTRODUCTION I A new era of opportunity for Corpus Christi A Community Driven Process that Builds on Planning Efforts he DADP comes out of a City-led, the foundation of understanding regarding the Bridge relocation opportunities and challenges, 8-month process of comprehensive challenges and opportunities in Corpus Christi. and met regularly with the local R/UDAT ad- and intensive public outreach.Early Relevant input from meetings conducted for visory group on an ongoing basis to integrate interviews with City leaders and key the broader Plan CC Comprehensive Plan was its goals and ideas with the DADP.A series of Downtown Area community stakeholders, studied.The downtown planning team partic- open public meetings were held in November neighborhood associations,business owners, ipated in the Regional/Urban Design Assis- 2014,February 2015,and April 2015 along with land owners,developers,and citizens provided tance Team(R/UDAT)event exploring Harbor a diversity of walking tours and open houses in which public input and discussions were KEY INPUT facilitated and recorded around key topics such r t A ` - Tl � as Vision and Strategies,Market and Econom- CITIZENS OF CORPUS 9 i ` +° f s �� ics,and Transportation.Information about the CHRISTI DURING THE - ti meetings was advertised through print and DADP'°O social media outlets as well as the Plan CC TheDowntown website.A Steering Committee and Advisory Area should be NOVEMBER 2014-Presentation of purpose and goals of the study with analysis Committee were formed at the outset to guide safe,vibrant,and of opportunities and challenges for the Downtown Areas as well as presentation of the City and its consultants towards the rec- connected residential market potential,followed by breakout groups and report backs on DADP ommendations in this report. Distinctive districts,themes,and priorities. portions - - - ' 16 ; . A number of ongoing or earlier plan documents D, , rea ` provided a strong foundation for the Down- , J r - ? .< -*"+�° .* tiM town Area Development Plan.The DADP builds own character and ," is _ - � on these plans while incorporating new think 41k, - identityI !-' �` ing around specific implementation actions that will create transformative change. TheDowntownArea r should FEBRUARY 2015-Presentation of Draft Vision and Strategies,Office and Hotel HARBOR BRIDGE RELOCATION(ongoing)-The walkable and Market,Development Economics,and Transportation findings,followed by discussion Harbor Bridge relocation is a long-term inviting,and groups around the presentation topics, plan to replace the Harbor Bridge and Cresent the heart orpus Christi ` �� reconstruction of portions of US 181,1-37, Theand the Crosstown Expressway to address �' p �"°' _ safety and structural deficiencies as well AreaDevelopment A _ +# as navigational limitations for the Port.The Planshouldfocusf - redesign will change access routes to/from 'n enabling real, ° North Beach,SEA District,the Northside,and visible investment. Downtown and transform downtown Corpus MAY 2015-Presentation of draft DADP recommendations derived from public dis- Christi.This project is one of the key cata- cussions and stakeholder input to receive final comments in anticipation of creating lysts that drives the need for the DADP. the final DADP for Corpus Christi City Council review and approval. 10 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 '.1 1_`., , INTRODUCTION I A new era of opportunity for Corpus Christi • NORTHSIDE LIVABILITY PLAN(2014-Ongoing)-The and techniques is presented as well as perfor- City,County,and Del Mar College on the taxable Northside Livability Plan is an ongoing initia- mance measures and implementation priorities property value increment within the zone. tive being led by TxDOT and supporting Fed- for certain areas of the City.In 2016,the City CORPUS CHRISTI DOWNTOWN VISION PLAN(2008)- eral agencies HUD and DOT,to ensure that the adopted the Corpus Christi Metropolitan Planning The Downtown Vision Plan focused on housing Harbor Bridge project incorporates mitigation Organization(CCMPO)Strategic Plan for Active and retail along walkable streets along Chapar- measures for impacted neighborhoods.To-date, Mobility,Phase 1:Bicycle Mobility Plan as a com- ral,Peoples and Schatzel.Chaparral,marina,and a number of public meetings have been held for ponent of Mobility CC to provide an integral plan hotel connectivity was emphasized.The DADP community input. for the community intended to foster cycling as a promotes a similar approach to the Downtown • R/UDAT STUDY FOR THE SEA DISTRICT[2014)-The meaningful transportation alternative for riders district,with specific priority development par- Regional/Urban Design Assistance Team(R/ of diverse abilities. cels and public policy incentive approaches to UDAT)was an initiation of the American Institute CITY'S CAPITAL BOND PROGRAM(2012-2016)-The implement the recommendations. of Architects(AIA)and continues through the City's capital bond program continues to provide CORPUS CHRISTI DOWNTOWN MANAGEMENT DIS- work of the local R/UDAT Steering Committee. tangible improvements to streets and utilities TRICT fDMD)THREE-YEAR STRATEGIC PLAN(2015)- Recommendations for reconnecting district and throughout the city.With over 40 projects in de- This plan leverages new leadership and part- streets,adding new street segments,streets- sign,bidding,or construction,the Bond program nerships to expand the DMD's success in making cape improvements and walkable infill develop- is a visible,voter approved program that has Downtown a better place to visit,do business ment were promoted in the R/UDAT plan and are shown results both within the DADP focus area and live.It charts clear priorities and initiatives similarly reinforced in the DADP study. and beyond.The DADP suggests future recom- supporting cleanliness,business recruitment • UNIFIED DEVELOPMENT CODE[2011)-Approved in mendations and priorities to focus public dollars and support,development,community events, 2011,the UDC is a comprehensive planning and and aims to leverage these public investments and other elements critical to making the most zoning document with overlay districts that to catalyze private development initiatives wher- of all Downtown has to offer. replaced the City's older zoning code and other ever possible. IMPLEMENTATION PLAN FOR THE HILLCREST/WASH- standards to ensure that growth and develop- NORTH BEACH DEVELOPMENT PLAN[2011)-Major INGTON-COLES REDEVELOPMENT PLAN[2009)-This ment meets certain land use and architectural themes in the North Beach plan included a beach plan illustrates vision goals expressed by the standards in Corpus Christi.The UDC will play an walk and restoration of natural areas,including a Hillcrest community. important role in the rational implementation of native,water receiving landscape for the Surf- TRANSIT PLAN 20/20-CCRTA's Five-Year Transit development as recommended in the DADP as side/Timon Boulevard median,all themes that Plan,was completed in October 2016 for the well as Plan CC. are reflected in the DADP.A focus of the DADP is dual-purpose of evaluating current bus ser- CENTRAL BUSINESS DEVELOPMENT PLAN(2013)- to ensure integration and connectivity between vice performance and formulating bus service This work promoted a walkable,mixed-use North Beach,the SEA District,and Downtown improvements through year 2020.The plan in- range of development in the downtown,with an with the future Harbor Bridge relocation project. cludes prioritized short-term bus service recom- expanded range of accessible affordable housing TAX INCREMENT REINVESTMENT ZONE(TIRZ) mendations to increase ridership while meeting options.A recreational path and water access (2008-Ongoing)-The TIRZ district#3 specifically the needs of the Coastal Bend region. Phase 1 network was proposed,similar to updated ideas geared to Downtown was established in 2008 as recommendations,which included six new bus included in the DADP. part of a broader range of Tax Increment Financ- routes,12 modified routes,and one discontinued • MOBILITYCC(2013,updated 2016)-MobilityCC is ing Districts(TIF).The zone includes approxi- route,was implemented in January 2017. Ad- the transportation component of Corpus Christi's mately 856 acres and captures the SEA District ditionally,an in-depth analysis of CCRTA fares comprehensive plan and provides a framework and Downtown as far west as Tancahua Street under five phased scenarios was completed to for the interrelated transportation elements of and as far south as Morgan Avenue.The pri- further increase public transportation options the plan in terms of design,standards,opera- mary revenue source for the zone will be funds and sustainability. tions,and maintenance.A tool box of features contributed from property tax collections of the DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 11 INTRODUCTION I A new era of opportunity for Corpus Christi EFFORTScuTRENT PLANNING by the development of the Down- TAKING INITIATIVE TO SEIZE town ADP,the City has engaged in several THE OPPORTUNITY follow-through The DOWNTOWN PARKING MANAGEMENT The Corpus Christi community has clearly defined its goals for the Downtown Area.Ten initiatives STUDYAND STRATEGIC PLAN will guide im- utilize available leadership and resources to achieve those goals: plementation strategies for the next three years[2017). The NORTH BEACH REDEVELOPMENT INITIA- REAL ESTATE REINVESTMENT TIVE engaged the North Beach community for input to outline redevelopment con- Utilize TIRZ#3 to unlock mar- Proactively encourage redevelop- cepts.The plan details capital improvement projects and rams that will catalyze ket-driven development with © ment ofwell-located underutilized developmenteconomic � promote flexible,effective options serving properties.Make owners ofpromi- • the different incentive needs of different nent vacant properties aware of available market .••the realignment of the Harborprojects.Take advantage of the flexibility of interest,incentives and plan guidelines that all TIRZ funds by offering projects the incentives encourage reinvestment.The City and partners The TIRZ#3 INTEGRATED TRAFFIC AND that suit them best.For some projects this could like Nueces County and the Port of Corpus PLANNING STUDY will respond to the Harbor be a tax rebate;for others this could be street and Christi can set an example by selling their Bridge replacement project creating an ur- utility improvements;and still others could use a underutilized parcels for projects that advance gent need to enhance connectivity between combination of such investments.Projects DADP goals.Focus on sites that are in marketable downtown and the new freeway and an seeking higher levels of incentive should demon- locations,encourage private investment in opportunity _ nearby TIRZ#3 districts and strate how they would be financially infeasible nearby sites by enhancing their market position, without it. and/or are large enough to support a significant borhoods.This planning effort will identify opportunities to develop linkages and con- critical mass of development. nectivity of destinations within and among the SEA District,the Marina Arts District, Target tax abatement and other and other surrounding neighborhoods and © incentives to reinforce neighbor- districts.This findings from this study will hoods with new job and mixed-in- guide public investment and incentives come housingdevelopment.Focus tax abate- the next decade(underway). ment along major corridors like Staples,Agnes, Laredo,and Leopard Streets where new busi- nesses and development will be most likely to succeed and have the most visible impact.Use Type A/B funds to support multifamily, mixed-income housing development serving Corpus Christi's workforce. 12 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A INTRODUCTION I Anew era ofopportunityfor Corpns Christi GREAT PLACES FOR PEOPLE I 0 Focus infrastructure investmentsActively manage event traffic. Intensify destination arts and retail to maximize leverage of private During major events,some streets are ; programming.The Downtown Area is sector investment.Coordinate0 clogged with traffic while others are the heart of Corpus Christi's cultural improvements closely with known development underutilized.Provide audiences more and culinary scene.Raise the profile of this projects—when and where necessary.Corpus information on access route options,and add amenity with additional,and more visible, Christi has invested in high-quality street and reasons to come early and stay late,to spread out programming of arts,music,food,recreation and park infrastructure along Shoreline Boulevard traffic over more area and time,ensuring conve- other activities serving the city and its visitors. and Chaparral Street.Before undertaking other nient access for all. large infrastructure projects,focus on enabling the development that has been attracted by past Fill missing links in Corpus Chris- investments. Transform old Harbor BridgeO ti's signature waterfront park and infrastructure to connect districts path network.Take advantage of the and the bay with walkable develop- New Harbor Bridge project and several smaller, 0 Organize parking at district scale to ment and access.Removal of obsolete highway near-term opportunities to knit together Corpus increase convenience and efficien- infrastructure will enable new streets and Christi's Bayfront Marina,parks and paths into a cy.The Downtown Area needs enough development to connect Uptown,Washing- highly accessible system serving residents, conveniently located parking to satisfy market ton-Coles,SEA District and Marina Arts District workers and visitors. demand,but not so much that the land and in ways that create more cohesive sense of place, funding needs of parking get in the way of greater market opportunity and a more connect- high-value development.Make the most of every ed community.Install street trees,pathways and Create clean,safe,welcoming parking space through parking management that signage to create much more welcoming ap- 0 places.Maintain streets,parks and lets an office worker's daytime parking space proaches to North Beach. other public places to be consistently serve a resident,hotel guest or concertgoer in the clean and attractive.Expand partnership evening or weekend. between the City,property and business owners, residents,and district management to encourage good stewardship of downtown's public places. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 13 INTRODUCTION I A new era ofopportunityfor Corpus Christi w. WORKING TOGETHER Corpus Christi's Downtown Area is building CHAPTER 3 is devoted to a detailed look at momentum,seeing new vibrancy and activity each of the six Downtown Area districts—the emergingfrom market opportunity,existing as- Marina Arts District,Bayshore Neighbor- sets,and the dedicated efforts of awide variety of hood,Uptown&Surrounding Neighborhoods, residents,business owners,institutions,public Washington-Coles,SEA District,and North officials and other stakeholders.The following Beach—as well as Hillcrest—through a series chapters of this document provide stakeholders of reinvestment priorities.(See diagram on and partners direction,tools and guidance to facing page.) 7 work together toward shared goals.This coordi- CHAPTER 4 provides a set of development nation of effort around mutual goals will do the guidelines that will achieve high-quality, most to unlock greater levels of opportunity in people-scaled design for buildings,streets and Corpus Christi. landscapes. • CHAPTER 2 focuses on the key priority policy CHAPTER 5 explores key transportation topics initiatives and implementation strategies that shape improved ways that residents and that will make the five vision themes tangible visitors can move about the city.Analysis and and visible in the Downtown Areas.The down- recommendations for IH-37,for SEA District town plan's relationship to Plan CC vision, access,for public transit,and for parking are goals and strategies is described,as well as included, its roots in thoughtful past planning. 14 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A �N INTRODUCTION A new era of opportunity for Corpus Christi I I � i r USE LEXINGTON IEMS STATE Y KARIN AIll1ARIUA Y ra AWPICAH BANE CENTER r CENTER + t + ULU i ,'tit f yCOEA[311(RISE + _ �+r `—' 9,Slse[I T�` II �, iv I d � I� ( i� dP •Y `•.1 WIIA BURGER FIELD •+'r.,.. t 1 I Y /f I__�— ——..—..——J F SIYIIIS5IQET g'� 1 CITY mi I r • d � I I ti IY E CROSSTGYNNE]�I f r I r , r , + r + I �* I + J J EXHIBI! A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 15 %L � •� J 3' 1 � 4 MAW Ongoing housing and retail development together with pedestrian friendly paving,trees and signage recently installed at the corner of Chaparral and Lawrence Streets,provide strong DOWNTOINN AR.�p Mi1A 1 ;.�- mome�;,,,U;;,L0s.pv..:•additional actions that willfurther enhance the Downtown Area. PriorityPolicy Initiatives and Implementation How to build the Downtown Area vision owntowns,more so than other development patterns,enable many different people to engage in many different activities that support each other,creating a place that is greater than the sum of its parts.Achieving compelling results from a downtown plan requires a structure to ensure stakehold- er actions are indeed mutually supportive.Without this,efforts and resources may be dispersed in ways that lack synergy.The ten priority initiatives in this chapter provide such a structure.The initiatives emphasize themes that appeal to a broad range of stakeholders,and actions that do the most to catalyze further actions and investments that build toward big results.Maps following these initiatives indicate key places they should influence in the study area. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 17 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the DowntownArea vision k.p- { i i r The Downtown ManagementDistrict,one of the Downtown Areas major community organizations,held this open house in November 2014 to highlight its priority goals and actionsfor the next three years.Events like this help achieve the Downtown Area vision by publicizing and coordinating opportunities for the areas many stakeholders to work together toward common goals. 18 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLA@ I MARCH 27,2018 EXHIBIT A PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision VISION THEMES AND POLICY INITIATIVES To achieve DADP plan goals,the City and partner stakeholders should focus on 10 main initiatives that will produce results serving the five vision themes. 041,r?YVA4, CAW, 10A OA, 41 - Z.r INITIATIVES to 0 Utilize TIRZ#3 to unlock market-driven development with flexible,effective options serving the different incentive needs of different projects. yV t;; Ift Target tax abatement and other incentives to reinforce neighborhoods with TmT newjob and mixed-income housing development. CW Proactively encourage redevelopment of well-located underutilized VI 0 properties. 10 0 Focus infrastructure investments to maximize leverage of private sector investment. Organize parking at district scale to increase convenience and efficiency. VI OActively manage event traffic. Transform old Harbor Bridge infrastructure to connect districts and the bay with walkable development and access. Intensify destination arts and retail programming. WJ Fill missing links in Corpus Christi's signature waterfront park and tR path network. Create clean,safe,welcoming places. 0 EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 119 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision REAL ESTATE REINVESTMEM . Utilize TIRZ 3 to unlock market-driven developmentwith V I l 4 L W 7•'i W i 0 flexible, effective options serving the different incentive needs of different projects. RESPONSIBIMY KEY ELEMENTS City Business Liaison,TIRZ#3 board • Complete and apply a project plan for TIRZ#3 TIRZ area as additional projects are developed. _ that requires applicants to demonstrate finan- This helps to maintain and increase value of all cial need and consistency with DADP goals, properties. Established City operations,TIRZ revenues and offers incentives in several forms that can Once an efficient,effective means of managing be tailored to specific project needs.These TIRZ#3 is in place,consider creating addi- policy updates were completed within one year. different forms should include tax rebates of tional TIRZ area in the downtown study area Implementation ongoing variable duration,and infrastructure including in places where redevelopment is especially utilities and street improvements.See also desired.As a first priority,consider extend- TIRZ#3 funding priorities under Initiative 4. ing TIRZ#3 to include the Agnes and Laredo • Assess project financial need through third Street corridors,to promote reinvestment MOMENTUM > TIRZ#3 Project Plan updated and party professional evaluators.Establish a along these important downtown gateways. means for discussing project financial need Establishing a North Beach TIRZ should also and appropriate incentive packages with appli- be considered. >Nine projects have advanced in 18 cants in confidence(using real estate finance Suspend use ofthe city's established tax abate months thanks to TIRZ#3 incentives. - professionals not on city staff or the TIRZ ment program in the TIRZ#3 area,where it board),and then providing recommendations undermines TIRZ resources.Instead,focus to the TIRZ board for review and approval. the tax abatement program in areas outside • Develop and adopt design guidelines for new TIRZ#3,where it will offer greater value(see projects in TIRZ#3.Examples of such guide- Initiative 2).Inside TIRZ#3,TIRZ-funded lines are included in Chapter 4 ofthe Down- tax rebates can offer equal or greater value to town Area Development Plan.These reason- development projects than the tax abatement able design standards provide investors a program, predictable context for project review,and help ensure continued design quality across the 20 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A TIRZ#3 Boundary PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the DowntownArea vision y a e r t s �' ' '. pry r •�: - ` TIRZ#3 . • , . .. DADPStudyArea _ r ,+ F� n xc J _ "- �`*';,ry � b •r. a _. 6 t is.mtl r PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision REAL ESTAATE REINVESTMEREINVESTMENTVIl4[W •iWil-ST' Target tax abatement and other incentives to reinforce 0 neighborhoods with new fobs and mixed-income housing. RESPONSIBILITY HEYELEMENTS City manager's office,with support from EDC and • Explicitly expand tax abatement eligibility to Consider applying the Downtown Area Devel- Type A/B board non-convention center hotels,multi-tenant of- opment Plan's Design Guidelines to anyproject fice buildings,and full tax abatement levels for receiving tax abatement incentives.As for small businesses with as few as 20 employees. the TIRZ#3 area,applying design guidelines Established City operations • Focus tax abatement and other non-TIRZ will make the project approval process more incentives(such as fee waivers,Type A/B predictable,and will encourage quality develop- Apply updated policy within one year funds,Affordable Housing Trust funds,or ment throughout the study area,help maintain sale of surplus public land at reduced cost)on and increase property value overtime. • Update and consolidate information on devel- areas outside of TIRZ#3,to avoid redundancy Utilize additional resources to help make opment incentives,to make the full range of or conflicts.(TIRZ#3 can independently fund possible the development,renovation and policies and choices clear to developers,prop- tax rebates—equivalent in effect to tax abate- preservation of affordable/workforce housing erty owners and others interested in making ment—and targeted infrastructure improve- serving a broad spectrum of incomes.Current investments.This should begin with a collab- ments to support eligible development within and potential resources include: orative effort between the City and the Corpus its boundary.) > TypeA/Bfunds.Continue to utilize Type Christi Regional Economic Development • To leverage the greater impacts possible with A/B funding to help create new multifamily Corporation to update information available revitalization projects that are concentrated housing options at below-market rates to online,and to designate a single,consistent within compact areas,prioritize provision address demand from households.As one point of contact for comprehensive informa- of tax abatement to projects in areas that are potential use,consider funding property tion.It should also extend to partnerships with highly visible,accessible,and include a num- acquisition for new housing construction,in local community organizations(such as the ber oflarge parcels with revitalization poten- coordination with Initiative 3. Uptown Neighborhood Initiative and Down- tial and multiple owners. > Corpus Christi A,ffordableHousing Trust. town Management District)and other entities • A base level of tax abatement may be offered This new lending entity would utilize Cor- who can help connect potential developers to any proposed project consistent with DADP pus Christi Finance Corporation Bonds to with these resources. goals,but higher levels of tax abatement provide low-interest financing and permit should be offered only to applicants demon- fee waivers to affordable/workforce housing strating financial need for it.Determine finan- development projects. cial need through the approach recommended >Neighborhood Empowerment Zones. for TIRZ#3. These zones may be created as priority areas to offer tax abatement,fee waivers and/or other development incentives. 22 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A Priority incentive areas outside of TIRZ#3 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build theDowntownArea tfision AptWflgl - -. ►L�rrnel,�L�� �1. 41 �. TIRZ#3 - ,a DADP Study Area , _ U? 0"F Priority areas for T _ , tax abatement and other non-TIRZ incentives.As stated +' in Initiative#1,consider adding the Agnes and Laredo corridors into the TIRZ#3 area to increase their potential access to incentives. s r .. PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision R,E ESTATE,EINVESTMEM Proactively encourage redevelopment of well-locatedI l4 LW�•'iWi G�.©� 1 underutilized properties. RESPONSIBILITY KEYELEMENTS City Business Liaison,with support from DMD,UNI Target privately-owned property by proactive- Encourage reinvestment in privately-owned and/or other area improvement entities for outreach ly contacting property and business owners to vacant buildings or lots in prominent areas. to private property owners,and from REDC,city-af- highlight market potential,incentive policies,re- Inform owners of real estate market analysis filiated housing corporations or other appropriate cent and planned public infrastructure improve- findings,TIRZ#3 incentives,and the predict- entities for strategic land acquisition,holding and ments,and other DADP elements that establish able framework provided this plan and its sale. a more predictable and beneficial setting for guidelines.Encourage property sale or part- investment.To the extent possible,task DMD, neringto tap developer expertise with new UNI or other locally-focused agents to conduct market opportunities. Cityst ffandareaimprovns through shentenities;ng streamsforr this outreach to maximize impact. Establish Vacant Building Registry to assist acquisition through oughTpeA/Bfundsities;property • Tar et underutilized publicly-owned owned roe withidenti n opportunities forinvestment. acquisitionthroughType is fundsorotherstrate- g P Y- property rtY identifying by offeringit for sale to private developers for Where extended vacancy is anticipated,seek Sic economic development sources(and ultimately evolving funds through sale ofparcels). development ofs ecific projectsthat support opportunity for temporary"pop-up"Pro�am- DADP goals.Time these sales to when devel- ming of vacant lots and storefronts,by arts or opment is favorable due to market conditions, recreation organizations or other entities. Apply updated policy within 1 year. completed infrastructure improvements,or Explore opportunities to expand Heritage Park other factors. and other areas as an opportunity to improve our Convention market reach with outdoor programming space and to protect the viability MOMENTUM of existing public facilities and investments. Nueces County has attracted a Downtowndevelopment proposal for restoration and adaptive reuse of the former Nueces County Courthouse.Bringing this prominent vacant building back to file with an appropriate use would benefit the entire of smart real estate reinvestment at an important gateway. 24 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A Potential Redevelopment PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision HarborExisting a ' "fAUK LEGEND sTMs 01 Pnolt Pnpt"16-am .. rokvalappw an An hwing 5 hNik _ 1 PLAN CC 'aN AREA DEVELOPMENT PL:- MARCH 27,2018 1 25 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision 0 Support new development with infrastructure investments that are timed and located together with private investment. RESPONSIBILITY HEYELEMENTS City Business Liaison,TIRZ#3 board,City Engi- • Pace City investment in streets,parks,utilities, and funding for new bridge,street,multi-use neering Department,and City Planning staff with parking and other infrastructure in parallel path and park infrastructure(associated support from area stakeholder organizations such with private development projects.See pages with the New Harbor Bridge and areas where as DMD,and community organizations;and from 48-49 for priority infrastructure invest- the existing Harbor Bridge and its approach partner agencies building and using infrastructure mentsinthe downtown study area-Integrate streets will be removed)to ensure these in- i nc I u d i ng the Texas De pa rtme nt of Tra nsportatio n, appropriate priorities and concepts developed vestments fully support DADP goals.See also CCRTA and Port of Corpus Christi. by stakeholders such as the Downtown Man- Initiative 7. agement District.Include North Beach water Minimize any adverse impact on area prop- TIRZ#3 funds;City and grant-sourced capital im- service upgrades where needed.Unless there erties and businesses from infrastructure provement funds;Federal and state transportation is clear immediate need or benefit for improve- construction by: funding associated with the New Harbor Bridge, ment,begin infrastructure project investment > Designing and phasing projects to reduce port improvements and other projects;TypeA/B onlywhenprivate development that will benefit time and area of impact, funds and/or Marina revenues for appropriate from the infrastructure improvement is moving > Enforcing performance criteria for contrac- waterfront projects. forward. tors(such as incentives for timely project • Top priority use of TIRZ#3 funding should be completion), for investments that directly enable develop- > Investing in"we're open for business"cam- Confirm conceptual design and funding of New ment projects,such as gap financing,utility con- paigns that highlight operations and access Harbor Bridge-related projects.Build development nections,sidewalk or street tree improvements, during construction through supplementary project-related infrastructure in parallel with de- or other general street improvements/upgrades signage or other publicity,and velopment.Complete a construction management directly related to the project.Remaining > Involving local stakeholder organizations plan with affected stakeholders at least two months TIRZ funds may then be invested in broader such as DMD,UNI,SEA District and NBCA in before starting any infrastructure project. improvements serving the district.Larger planning and applying these impact mitiga- scale infrastructure like street extensions and tion strategies. MOMENTUM parking structures may require funding from >Reconstruction and relocation of Shoreline other sources such as the City's biannual capital Given the large scale ofwork anticipated with Boulevard in the funding bonds paid through its general budget, construction ofthe New Harbor Bridge and •Downtown or grants such as have been used to improve removal of the Existing Harbor Bridge,work and creating improved waterfront park area. Downtown Area street lighting, closely with the Texas Department of Transpor >Comprehensive reconstruction of Staples - • Continue to work closely with the Texas De- tation,its contractors,and community stake Street,encouraging business and property - partment of Transportation to confirm design holders to avoid adverse impacts. investment in this important corridor Downtownlinking the 26 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision f 2O b" n Capital investments have enhanced the Downtown Area as a place to invest and visit.Recent initiatives include Shoreline Boulevard reconstruction(left),anew playground at the Corpus Christi Museum of Science&History(center),and extension of Chaparral Street streetscape and utility improvements to Taylor Street (right).See pages 48-49 for recommended future improvements. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 27 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision Organize parking at district scale to increase convenience and efficiency. RESPONSIBILITY KEYELEMENTS CCPD Parking Control Division,with support from Encourage sharing ofparking spaces byuses dinate pricing ofpublicly accessible on-and Parking Advisory Committee,City Business Liaison, with different demand peaks(such as daytime off-street parking,with prime on-street spaces DMD,and other appropriate stakeholders.Coordi- office worker demand and evening/weekend res- priced higher to encourage more frequent nate with street operations and capital projects. ident demand)through private agreements and/ turnover, or district parking policy.This will help mini- Rationalize public on-street parking by estab- ter mizecost and land area needed for new parking, lishing a consistent meter policy in the Marina Fund managementthroughcuructurerent through while providing new revenue to existing property Arts District,Uptown,North Beach and any revenues.Fund new parking structures through the owners.Contact current owners ofunderutilized future areas designated for metered parking. City's capital improvement program or other avail- parking to confirm potential interest in leasing The policy should determine appropriate able sources,with possible supplemental funding spaces to others.Connect development appli- meter pricing and time allowances for meters from TIRZ#3. cants to these parking owners. on each street,calibrated to characteristics of • Over the longer term,directly and/or indirectly nearby destinations.Conduct an inventory of Update Marina/Downtown/Uptown parking policy create public parking shared by multiple users supply and demand to inform policy approach. within I year.As developers apply for development to enable additional development projects.A Coordinate with planned relocation ofsome projects,discuss with them the potential for inclu- direct approach would involve proactive acqui- on-street parking spaces as part of Chaparral sion of public parking on their sites,and connect sition ofland suitable for structured parking, Street improvements. them with owners of available parking.As part of in areas ofknown development interest.An Enhance the Parking Advisory Committee Action 3,contact owners of sites suitable for poten- indirect approach would encourage develop- with additional professional parking expertise, tial longer-term public parking structures within 2-5 ment applicants to incorporate shared parking through its membership and/or staff resources. years to determine interest. in their projects by committingto fund some Reinvest parking proceeds into maintaining or all of a parking structure with City capital and building additional parking,maintaining funds,TIRZ revenues and/or other appropriate, or improving sidewalk facilities,and/or other available sources.See Development Guide- priority needs in the parking districts. MOMENTUM lines chapter for design guidelines explaining In North Beach,ensure adequate parking for Downtown to adoption of the Downtown Parking how structured and surface parking should be visitors to the beach and other attractions. Study Action Plan that will guide designed to enhance walkability and safety. implementation strategies for the next • Design and install clear,consistent signage for three years,including an improved parking facilities open to the public.Coorparking pricing and management - 28 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A _ - h- va PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the DweWownArea vision MARINA aw y �_'} 5" A X15°ss 'k"�'•' . 'a.® . �A... , 5124 t 4. Y 111 71 _ ,! 346 ; )— 60 - ' - _ - z s3 07 J. '40 _ <+ rr-�.. -' ' 50 6 15 � 30o CyAP 300 I ARRA ��` I 325 T :f Marina Arts 58 SrREE� _ - 126 239 80 .F 164Y- } BRBADWAY STREET r- 64 . b T `a € r • - _~ _ h 143 305 412 1075 305 $ 300 277 # #i 69 rY LEUENI ' „' 550 i ".1�. 51 239 196 ' 196 302Tata 51" { µ.y*� �'z f r:Y'.tk t ,f, >F tom► rtt�.�o i, — 266 282 Th gh Rut aroa ralIk 11 •''�at 4_�� � - t y K. ' I, I�•. _ - underutilized 266 structuredparking spaces ,supVortnetv developmen4 and enable �. redevelopment ofsurface parking lots forhigher-value uses. 1 «N r E ITS PLAN CC 4 MARCH 2 l' F tY L' t r.5 �.�. A�'1'� �i� ��i �,'h R�.✓). .. 1 ,� ". _... • I - I.`- � 1 1 i PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision 0 Actively manage event traffic. RESPONSIBILITY KEYELEMENTS CCCVB,DMD,with support from Corpus Christi • Establish a working group responsible for > Minimize pedestrian/vehicle movement Street Operations Department,Parks&Recreation planning and implementing traffic and parking conflicts near venues by temporarily limiting Department,and Police Department,CCRTA and management in the Downtown Area.Include vehicular access within one block or other other stakeholders as appropriate. participation by Corpus Christi Convention appropriate distance from venue. � _ and Visitor's Bureau,Corpus Christi Street > For events large enough to merit park-and- Operations Department,Corpus Christi Police ride shuttles,temporarily designate dedicat- Shared support from SEA District,City departments, Department,CCRTA,DMD,and other stake- ed lanes to serve shuttles to ensure efficient CCRTA and/or other involved stakeholders. holders as appropriate,under leadership ofthe movement.Offer ferry service in addition to CCCVB.Determine typical levels ofmanage- buses. Establish working group within 3 months. ment intervention needed depending on size/ > Provide additional programming,dining or attendance of events. other activities before and after major events • Consider these strategies,among others,to to spread driving trips over a longer period of improve access to and from large events in the time and reduce traffic peaks. SEA District and other portions of the Down- Help advance supportive infrastructure town Area: investments like improved walks between > Provide people driving to events directions, Shoreline Boulevard,Chaparral and Brewster via real time street signage and through Streets,Port Avenue and area parking facili- advance notice,that disperse traffic to and ties,and potential vehicular traffic connection from different events across multiple routes from Shoreline Boulevard at the Art Museum such as Port Avenue. of South Texas to Port Avenue. > Use signage and consistent pricing to direct To manage event-related traffic and parking in drivers to parking efficiently,preventing other portions of the study area,set up similar drivers from having to travel additional working groups and apply successful coordina- blocks seeking parking. tion techniques used in the SEA District. 30 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision 6 1� r � J Concept for walking path and street alongside the Water Garden,connecting Shoreline Boulevard and Chaparral Street and creating additional arts and event programming opportunities. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 31 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision 0 Transform old Harbor Bridge infrastructure to connect districts and the bay with walkable development and access. RESPONSIBILITY KEYELEMENTS City Planning&ESI Department,City Engineering • Study and confirm preferred street network Restore east-west street connections across Department,with support from TxDOT connections to replace the current interchange the old Harbor Bridge approach in the SEA Dis- at IH 37 and the US 181/Harbor Bridge ap- trict,and create a new grade-level street along proach at Broadway Street. the approach,utilizing new Harbor Bridge New Harbor Bridge funding for specific projects. • Rebuild IH 37 from the Crosstown Expressway project funding.Similarly,in North Beach, Supplemental city capital funding for areas beyond to Mesquite Street as a boulevard with lower extend Timon Boulevard and cross streets the scope of the Harbor Bridge project. traffic speeds,alandscaped median,sidewalks where the existing bridge will be removed,De- east of Staples Street,and opportunity for sign streets to be safe and inviting for walking. Timed with the Harbor Bridge Project. development adjacent to the right of way. Discuss new street alignment and design with > Consider restoring the original street name area property owners to ensure new streets for this corridor,Aubrey. support development opportunity. > Create street connections that maximize Ensure convenient use of multiple access development opportunity on adjacent sites, routes to the SEA District,including Port create safe walking and biking conditions, Avenue and the potential future Staples Street distribute traffic via multiple routes across a extension to Fitzgerald,as well as Broadway gridded street network,and have moderate and existing streets to the east ofthe current maintenance costs. bridge. > Consider a roundabout at the intersection of Ensure the project enhances Downtown and Aubrey and Broadway as a signature gateway Uptown connections at key intersections to Corpus Christi and the bayfront. along I-37 between Port Avenue and Shoreline > Consider one or more additional intersec- Boulevard,and via Agnes and Laredo Streets. tions between Carancahua and Waco Streets Ensure the project enhances North Beach offering improved vehicular,pedestrian and access with convenient,attractive access at bike connections between Uptown,Wash- Beach Avenue connecting to Surfside and ington-Coles,SEA District and regional Timon Boulevards. highways. Ensure that all major highway approaches > Maintain communication and keep up to have programmable signage that can be used date on the Harbor Bridge Project construc- to provide access instructions for events and tion process with Texas Department of tourist destinations. Transportation(TxDOT). 32 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A Transforming obsolete Harr a age appro highwaysa walkable PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision xg . 51lEAR9ll WAC t w �$�"ipvF;�• tar �'"- * 3 �f :r" ' i s "� �e -:� is Pa IL ■ - a _�1 M■■■■>•■p>!■s■■f#+_ 4 '' Lmao ex; 5mne■udlrgl ■� '4 qy Drax i 41 *A" # r t# ■ LEGEND Using araritamed street gr� ;1►` p A #AA A+ 1411urT streets A+# A r r y## A#AA 4'*,, *4) aa_� «N EXHIBIT A PLAN CC *9TiOPMENT PLAN MARCH 27,2018 33 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision GREA.4LAC.41ES F0,PEO66 PLE0. Intensify destination arts and retail programming. RESPONSIBILITY KEYELEMENTS DMD and Corpus Christi Marina for Downtown/Ma- Develop and apply a coordinated approach projects in this area to include active ground rina branding and marketing;CCCVB with support to Downtown and Marina branding,building floor uses facing Shoreline Boulevard,prefera- from other stakeholders noted above for broader on branding efforts by the DMD and Corpus bly including restaurants or shopping. branding and marketing;DMD,Marina and Art Christi Marina. Create a working inventory ofavailable Center for Shoreline Boulevard programming;DMD, • Coordinate branding and marketing efforts to downtown retail space to assist marketing to Art Center and other arts organizations and stake- visitors among the DMD,Marina,SEA District, potential retail business tenants.To the extent holders for arts programming;Corpus Christi City CCCVB,American Bank Center,Texas State possible,focus retail uses within one block of Council,TAMU-CC and DMD for downtown graduate Aquarium,USS Lexington,hotels and other Chaparral Street to create synergy. arts facility. visitor industry stakeholders Create a stronger presence ofthe arts along or _ M • Add regular dining,recreation and/or other within one block of Chaparral Street.Replace destination activities along Shoreline Boule- prominent vacancies with galleries,studio DMD funding from public improvement district and vard to highlight and expand synergies be- space and/or other arts-related programming. City;contributions from stakeholder organizations; tween the Marina,Bayfront,Downtown and Install public art(preferably on a rotating potential TIRZ#3 funding;TAMU-CC. adjacent areas.Enable expansion ofthe Art basis)along improved sections of Chaparral, Center of Corpus Christi's restaurant/cafe La Retama Park and/or other key public spac- Update branding and marketing for the Downtown/ space with outdoor dining as part oftransfor- es.Engage the Art Gallery of Corpus Christi, Marina and broader Downtown Area by end of 2017. mation offormer Shoreline Boulevard right TAMU Department ofArt,Art Museum of Expand Shoreline Boulevard programming during ofway into park space.Program Shoreline South Texas,gallery owners and/or other arts summer 2018;add more permanent dining opportu- Boulevard median space near Lawrence and/ stakeholders in programming and publicity. nity by 2019.Fill at least five vacant downtown retail or Peoples Street with dining,starting with Relocate graduate programs in the Department spaces byendof2019.0pendowntown TAMU-CC mobile vendors and exploring potential for of Art of Texas A&M University Corpus Christi graduate arts facility within 5 years. more permanent restaurant facilities.Require (TAMU-CC)to Downtown. building development and major renovation MOMENTUM >Marina Arts District branding conceived andlaunched >Broader downtown area branding initiative under way 34 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A w I� Conceptfor expanded outdoor dining,walking,seating and Marina/bay * observation areas occupyingformer roadway between the Art Center and the *'' Shoreline promenade. i r 1 P, I r i S r ' EXHIBIT A DOWNTOWN AREA DEVELO ME*� PLAN PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision GREAT PLACES FOR PEOPLE 6iIl,.4 .14it Fill missing links in Corpus Christi's 0 signature waterfront park and path network. KEYELEMENTS City Planning&ESI Department,Engineering Ser- Complete reconstruction ofthe Marina's boat Connect the new Harbor Bridge multi-use path vices Department,Parks&Recreation Department, slips south of Coopers Alley. to North Beach and the bay with a new multi- CCRTA bus service • Complete design and construction of Shoreline use path extending along Beach Avenue to the FTTTMMT� Boulevard park improvements between Fur- Beachwalk,and along Timon and Surfside man Avenue and Coopers Alley,using funding Boulevard to the Texas State Aquarium ferry Dedicated and future capital project allocations; previously dedicated. dock. CCRTA for bus service,TxDOT mitigation require- Design,fund and implement Phase II Shore- Build the planned birding park in North Beach ments line Boulevard walkability and streetscape north of Beach Avenue,utilizing new Harbor improvements between I-37 and Lawrence Bridge required wetlands mitigation. Complete Shoreline Boulevard crosswalk improve- Street.Add crosswalks across Shoreline Boule- Connect Uptown to the bay with improved ments,Leopard/Peoples Street lighting improve- vard at any cross streets where they are absent, pedestrian lighting and walks along Leopard, ments and marina boat slips within 3 years.Com- such as Schatzell,People's(north side),Starr, Peoples and Lawrence Streets,Cooper's Alley, plete park and path improvements along Shoreline Taylor and Twigg Streets.Include curb bump- and along Park Avenue from South Bluff Park Boulevard and Park Ave.within 4 years.Complete outs,signage or other devices to promote to McGee Beach.Include bike infrastructure North Beach birdingpark and Timon/Surfside path traffic speeds at or below 25 mph. as prescribed in the adopted Bicycle Mobility within 5 years.Complete new Harbor bridge path • Complete design and construction of North Plan.Include sidewalk,crosswalk and acces- connections in conjunction with the bridge comple- Shoreline Boulevard promenade from the sible ramp improvements at the bluff along tion. Texas State Aquarium ferry dock to Bridge- Broadway to enhance Uptown-Downtown port Avenue and the Beachwalk,using funding connections. Inaugurate a Bayfront shuttle service along previously dedicated. Explore opportunities for pedestrian-only the Shoreline Boulevard corridor between the • Connect the new Harbor Bridge multi-use corridors throughout the Downtown planning SEA District and downtown.Brand the service path to neighborhoods and the bay with a new district. differently from standard public transporta- multi-use path extending west to Hillcrest, Recruit ferry service provider or similar tion services,and proactively market service to East to Shoreline Boulevard via Washing- service with stops at the SEA District(at Ortiz visitors(as well as the Corpus Christi commu- ton-Coles and the SEA District,and south to Center dock)and increased service frequency nity). Uptown.Include the Solomon Coles Recre- (30 minutes)by replacing the previous model Consider opportunity to connect waterfront ation center and historic Old Bayview Ceme- of a single ferry with multiple smaller boats. paths to Westside neighborhoods with multi- tery as part ofthe route. Explore private and public-private models, use trails along former rail corridors. 36 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A Bayf3ront Park&Path Network PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build theDowntownArea vision °� L f ''"y. by r�``,^• �""`«.. -S- -4.4, .5S--4.4, y t 4 i f •aIle • .�. N � �eaa(•. * _. �l1�IwY, I l ,..W^•tea" ... �� �•Y+• "�,•.1!' { '9�.. �.1. �.} � Jam' �. 'A •'� '•p_ ,., ........ ................ ..-^•'f ••, h, '4 I a.,~•ryla e I •.,...... .. 1 r �N EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2015 37 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision GREAT PLACES FOR PEOPLE Create clean, safe, welcoming places. RESPONSIBILITY KEYELEMENTS DMD,other area service organizations,City Busi- • Continue and expand the highly successful regular maintenance.Maintain facilities sup- ness Liaison,Parks&Recreation Department,Police public/private partnership and volunteer porting daily use,and program periodic events, Department. efforts led by the Downtown Management to leverage the parks'amenity value and to � - District(DMD)promoting cleanliness,safety, promote safety. and a welcoming environment in the Marina Address issues associated with public nui- City and private-sector funding. Arts District.These efforts include presence sance complaints and transient populations. of uniformed"Clean Team"staff who perform This includes ongoing efforts by the DMD,and Ongoing. dual roles:1)maintaining downtown public other stakeholders as applicable,to communi- places,and 2)serving as tourism ambassadors cate with social service providers. providing people information and assistance. Continue the mural painting programs that They also include periodic volunteer events for have been applied in the Marina Arts DisMOMENTUM - cleaning,painting and other maintenance of trict and SEA District for buildings as well >Implementation of new street cleaning public streets and parks. as electrical boxes and other infrastructure. equipment • Consider applying similar initiatives in other Engage local arts and business organizations portions ofthe Downtown Area. to provide artwork that celebrates distinctive • Continue the DMD's partnership with the City qualities of the Downtown Area. to manage the bike patrol program,which con- In coordination with Initiative 8,develop a tracts off-duty police officers to ride downtown plan for signature architectural lighting and streets,providing additional security. signage in the Marina Arts District and/or • Encourage regular use ofparks,include the other areas. recently rebuilt park spaces at La Retama Park and along Shoreline Boulevard,through 38 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision s" m _ P Downtown ManagementDistrict staff and volunteers help maintain curb markings.New murals include one covering the Corpus Christi Caller Times building. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 39 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision '+�� ...... tic-. J �+5 DOWNTOWN AREA FRAMEWORK: •••`'+,• '�_ BAYFRONT PARK&TRAIL NETWORK +'+f This comprehensive park and recreation trail system links the waterfront,public parks,neighborhoods,and Downtown Area districts of Corpus Christi through new multi-use paths and walkable,bikable recreation loops.A newly marked path along Shoreline Boulevard and the waterfront connects to interior paths at Park Avenue,Peo- ples Street,I-37(transformed into a green Boulevard after the Harbor Bridge relocation) and Port Street.The trail network extends to North Beach via a reinstated and expanded water ferry service from the marina and SEA District,connecting to the existing North Beach"beachwaW and new pathways on Beach Avenue,Surfside and Timon,and along the proposed Harbor Bridge.The path from the new Harbor Bridge would link through the Hillcrest and Washing Lon- neighborhoods connecting both to the SEA District and the bay.The recreation trail would be comprised ofwider sidewalks,dedicated bike lanes,and/or shared bike lanes along existing streets,with beach trails and bridge treat- ments to complete the network. I I 40 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A �N PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision ., y w raur cavi. : T ' +a rr.a"tw�' CrF+a•`+ •r+e. " '• ri.t � �,".4- !ar:. S— p,- TL •� "43{'{'' 'J � ' �, A•''� +,r ...�............... . t,ar .....•...rra '+af EXHIBIT A .r..re PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 41 i PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision DOWNTOWN AREA FRAMEWORK: , POTENTIAL REDEVELOPMENT SITES Significant development opportunities exist in Corpus Christi based on an analysis of publicly-and privately-owned land parcels that appear vacant or underutilized.Cri- teria for noting these parcels—color coded according to ownership by the Port,TxDOT, City,or County—include large,open surface parking lots,vacant or underperforming buildings where redevelopment value exceeds current value,and reclaimed land that will be made available with the relocation of the Harbor Bridge.The diagram does not suggest a proposal for specific development on specific sites.Instead it is meant to focus discussion on the possibility of redeveloping key parcels through public/private partnerships,that would have significant positive impacts on their related districts and neighborhoods.Note that the majority of City owned sites are located in the SEA LEGEND District,while privately owned sites are distributed throughout the Downtown Area putEntial 005 districts. *604mmul an Ihon 3.0t for r6161y*XW1 Ohm ow t"31141t Dr II Nunn cnlml� 42 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A �N PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision �dEGUYta Fm SW A', 41 LN xff ..IlIi 4► ---------- 6? -Jk d , o EXHIBIT A PLAN CC MARCH 27,2018 43 r PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision I DOWNTOWN AREA FRAMEWORK: STREET CHARACTER This diagram highlights the network of streets of different types that serve the Down- town,SEA District,Bayshore Neighborhood,and Uptown and surrounding neighbor- hoods.Taken together,this street character framework defines appropriate design approaches for development on each type of street.Chaparral Street between William and Taylor is logically a primary walking street and priority retail location given its recent streetscape improvement program.This model could also be followed on Leopard Street between Broadway and Tancahua and eventually in the SEA District as well on Chaparral between Fitzgerald and Port Street.Shoreline Boulevard and Broadway Street are emphasized as primary walking streets,while Water and Mesquite Streets are de- noted as flexible access streets,meaning they primarily serve atransportation function although integration of commercial and/or residential uses is possible.Gateway Streets and Boulevards complete the network and feature additional attention to landscape and pedestrian facilities,combined with convenient vehicle access. F 44 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A �N PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision mom ucis L i--� 1 wljkmi 1 ��f� • � I � I �!3 { 4 + � s rµl {4 EXHIBIT A PLAN CC MARCH 27,2018 45 r� PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build theDowntownArea vision DOWNTOWN AREA FRAMEWORK: ARTS&CULTURE FRAMEWORK r. The arts playa significant role in the life and activity of Corpus Christi's Downtown Areas.Bracketed by the Art Museum of South Texas to the north and the Corpus Christi Art Center on Shoreline Boulevard to the south,a diversity of arts offerings and pro- grams are already available to residents and visitors alike.A variety of other facilities expand available cultural experiences to include festivals,community history,marine science,architecture,and more—all close to a spectrum of culinary experiences.The Arts&Culture Framework diagram ties these locations and programs together to create a connected and clear network of arts related facilities that can promote syner- gies and other complementary arts offerings.These can range from outdoor,temporary programs along the waterfront—particularly on the former Shoreline Boulevard right- of-way at the Art Center and farther south near McGee Beach—as well as more potential permanent locations for galleries or a"school for the arts"in the Marina Arts District. The framework suggest ways that area organizations such as the Art Museum of South Texas,Art Center,Harbor Playhouse,Corpus Christi Museum of Science&History Museum,Instituto de Cultura Hispanica de Corpus Christi,Texas State Museum of Asian Cultures,TAMU-CC,the Downtown Management District(DMD),and others can promote an integrated arts and culture fabric as a key driver of downtown activity and LEGEND identity. 46 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A �N PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I now to build the Downtown Area vision NORTH HEACH ART MUSEUM OF E[ SOUTH TEXAS "" SHERRILI PAR T� `h .ma ()�..�•,. Afi�E lAlf �i IFmna MCGEEBEACK ., ARK w Q db� ; Km Kim= :� Sa nm LdII�EfAMAPAhIL 5 geu�wrwav, C3HC�ft�EPARK '- �� m� � „RY7KA r .t .• , pFF14791i1 1M1Y� upp[iU16! Jg EXHIBIT A PLAN CC MARCH 27,2018 47 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision i � INFRASTRUCTURE INITIATIVES PARKS AND PATHS Landscape&paving improvements- Parking supply/demand,placement La Retama Park.COMPLETED and pricing study Leopard Street Phase 1:Broadway to Park improvements-Water's Edge Park. Parking structureA[assumed north, Tancahua completed COMPLETED 1-37 or other appropriate SEA District Leopard Street Phase 2:Tancahua to Artesian Park-upgrade irrigation,land- location];600±space structure,with Josephine completed scaping,gazebo.COMPLETED occupied space along any adjacent Staples Street from Morgan to 1-37 Park improvements-H.J.Williams Park street edges [Bond 20121.COMPLETED Shading,streetscape,food truck plaza- Parking structure B[assumed south Street extension-Shoreline Boulevard Shoreline Boulevard at Arts Center of Lawrence,or other appropriate extension and/or Lawrence location];600±space structure,with occupied space along any adjacent Staples Street pedestrian and bike im- Park improvements-South Bluff Park. street edges provements/safety,traffic calming-1-37 Bike/ped improvements-Antelope from to West Broadway[2,000 If] Staples to Broadway;Peoples from ®Streetscape improvements Roadway and sidewalk improvements- Broadway to Shoreline(3,9201f] miscellaneous streets[3,000 If] JESJ[Streetscapeimprovements Mesquite St bike boulevard[Cooper's Study and confirm street plan replacing inter- Alley to 1-37-3,330 If] IEStStreetscape improvements 37/Harbor Bridge/Broadway inter- Pedestrianimprovements-Leop- change Waterfront bike/ped improvements- and Street at Broadway:stop signs, -37 Traffic Circle at Broadway Art Museum to Art Center(6,9301f] crosswalks Bike/ped improvements-waterfront Street extensions-Power,Palo Alto, LEGEND Pedestrian improvements-Accessible Fitzgerald,Resace&Hughes from between Art Museum and ferry dock/ ramps from Upper to Lower Broadwayg g Ortiz Center[1,500 If] p pp Tancahua to Mesquite replacing Harbor Bike boulevard-Ortiz Centerto 1-37 on Light Up CC-Peoples Street Bridge approach[5 @e 720 If=3,600 If]; Mesquite(3,7001f] Uptown Neighborhood Initiative light- Rebuild Broadway[3,600 If] Cycle track&transitional bike bou- ing-Leopard Street IRIFStreet extension-Staples to Fitzgerald/ wpnntVZrls levard-Hillcrest Park to MesquitePhase 1:Brewster from Tancahua to Tancahua connector(1,5001f] via Winnebago,Sam Rankin,N Sam Chaparral;sidewalks/shared ped/ Water Street pedestrian and bike Rankin,Resaca[11,000 If] vehicle street improvements/safety,traffic calming- Phase 2:Brewster/Me uite/Cha ar- Kinney to Furman[2,500 If] Bike boulevard-Port Ave from Mes- sq p quite,W Broadway,Lexington,Minton, ral/Hirsch Pa rk Avenue pedestrian and bike Kennedy,Koepke,Van Loan,Noakes to Phase 3:Chaparral to Whataburger improvements/safety,traffic calming- Nueces Bay Blvd[7,730 If] Field and Brewster Tancahua to Shoreline Blvd(1,6001f] Cycle track-Winnebago,Staples, Street/ped improvements-Shoreline . Timon overlay-Coastal Ave.to Sandbar Comanche,Alameda Boulevard Ave.[6,000 If] r Cycletrack,bike boulevard,Blucher Street/ped improvements-CoopersSurfside overlay-Coastal Ave.to Reef �, f] Park path-Comanche from Culbertson, Alley-Shoreline Blvd to Broadway Ave.[5,400 I _ Blucher Park,Cooper's Alley Street/ped improvements-Lawrence Beach Avenue from Bridge to Beach South Chaparral and Coleman bike Street-Shoreline Blvd to Broadway access[1,300 If] boulevards[4,920 If];Park Ave cycle Street/ped improvements-Hill- Parks.p-o veffmidE track(9301f] crest-Kennedy Ave.,Peabody Ave., Utility upgrades-Water main line Buford and 3rd St Cycle tracks[3,850 Van Loan Ave.,Hulbirt St.,Minton St., upgrade/extension.ONGOING Ifiltmonal pal If];6th St Bike boulevard to Morgan Neuces St.,John St. [1,000 If] aRecreation Trail-Aquarium to Dolphin New marina docks.COMPLETED Park along existing Beachwalk to New SEffRecruit ferry service/station Harbor Bridge;along Timon and Surf- Bus rapid transit-Staples Street side median[8,000 If] Birding and wetland park 48 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A �N PRIORITY POLICY INITIATIVES AND IMPLEMENTATION How to build the Downtown Area vision EXISTING HEACHWALK ® -----------------------------------~ - ... .,. to EaLf RWro DARK RECREATION PATH' � � } ---4 PLANNED AS PA{T CF HARBOR 8 6 a 4w+v ........... ------------- `v v yi ' EXHIBIT A PLAN CC MARCH 27,2018 49 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION I How to build the Downtown Area vision 50 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A District Framework and Reinvestment Priorities Targeted priorities tor a vibrant and connected Corpus Christi INTRODUCTION he District Framework and Reinvestment Priorities chapter begins with an overview of the Down- town Area districts,highlighting their unique qualities alongside opportunities for targeted reinvest- ment.The analysis of market-based development potential described in Chapter 1 sets the foundation for these recommendations,as do recent infrastructure initiatives taking place in the Downtown Area—most importantly the Harbor Bridge relocation,recent Chaparral streetscape implementation,and Shoreline Boule- vard reconfiguration. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 51 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi For each of the districts,a list of reinvestment * priorities is presented that identifies where the " Gk'e Marina Arts District most proactive efforts promise the most trans- "Leveraging infrastructure investment and filling formative,catalytic,and cost-effective impacts— the gaps with livelwork/learnlplay" development of priority land parcels,improved streets for pedestrians and bicyclists,and/or new .............................................................................................................................................. programs for parks,for example.Districtrecom- mendations Neighborhood are also provided for land use,urban design,transportation and streets/public realm "Connecting neighborhoods and people to the Bay which present a range of specific public and pri- and destination parks" vate actions that would bring both near-term and "7�j long-term improvements. Uptown and Surrounding Neighborhoods "Expanding choices for housing,jobs,and transportation" . ........................................................................................................................................... Washington-Coles - Strengthening an established neighborhood with r connected streets and housing" .......................................................................................................................... Hillcrest `Providing housing options and opportunities for current residents" II SEA District `Promoting vibrant and accessible destinations within a walkable setting" North Beach nes `Beach and attractions" 52 PLAN CC DOWNTOWN AREA DEVELOPMENT PLn MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES Targetedprioritiesfor a vibrant and connect Corpus Christi Downtown 1Area and Districts $y4 MRMU plam uas1EIIIeIurt — — �� I f I I f I ��T�STIR M1 � Y .. AN[XitJ4$AXI r w I •. ,' '1'. } �, L':A'-Sfil''r^e- may. r�ai\ - ' Sal' 't y I. E1616 I I� ,t I 1 i ti�y� :-I •:� � f J � r e t � + I a r r r rr Jrr EXHIBIT A PLAN C ;OWNTO N AREA DEVELOPMENT PLAN MARCH 27,2018 1 53 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi Marina Arts District IDENTITY KEYTHEMES "Leveraging infrastructure investment >Branding and walks that connect the Marina and traditional downtown and filling the gaps with live/work/ walkable learn/playneighborhood that makes the district a cohesive >Great dining,arts,waterfront,and other attractions drawing people from near and far Great strides have been made in recent years to promote vibrancy in the Marina Arts District. The City has made important investments in the primary transportation corridors of Chaparral Street and Shoreline Boulevard.Work by the anagement istrict Downtown mu s t spur act on through focused • d effo is on t district operations and cleanliness,development # 4 initiatives and filling vacant storefronts,market- MARINA ing and events,and organizational management. * 1[ The Marina has upgraded boating facilities and collaborated with the DMD on branding.There p I� �1T are several important and immediate oppor- - ARTS CENTE tunities to further leverage and sustain these ■ efforts,capturing the powerful potential of the WATER STREP Downtown Area's core as a strong generator of economic growth and community identity. I • Downtown andthewaterfront are inex- tricably linked and deserve strategic invest- ment to be better connected.The ongoing nvest-menttobebetterconnected.Theongoing COURTHUME �Ff Marina Arts District branding initiative and ` t �~ anticipated programming,public space and �--��,�,� v �, � development improvements along Shoreline - -- Boulevard will help the Downtown,Marina and shoreline parkland all succeed better as interconnected places. iidRhH • Downtown's compact,connected,walk- f able environment is a core asset.This character can be reinforced by encouraging 54 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpns Christi redevelopment of large surface parking lots POTENT' and other underutilized land parcels with oc- Outdoor dining Shadetrees Drive tone andparkingfor cupied,active,high-value buildings and public and public art and canopies promenade and Art Center spaces. • Housing development offers the strongest opportunity by far to capture market-driven investment opportunity and produce a wide variety of visible,transformative benefits.New housing can take advantage of the dramatic ongoing improvements to Chaparral Street, joining the Cosmopolitan,the Atlantic Lofts, rr_a�d F� _ the Buena Vista and other recent downtown housing development to create a true neigh- borhood. • Downtown should continue to be aplace where visitors gather to experience Corpus ` r Christi's stunning waterfront and marina as well as inviting destinations for the arts,dining -° and shopping.Additional events programming, public art,retail recruitment,and shuttle services will help Corpus Christi draw greater ' benefit from its strongest concentration of • hotel rooms and destinations that appeal to residents and visitors alike. - LAND USE AND URBAN DESIGN EXISTING Shoreline Boulevard infront ofthe Art Center The priority goal for land use in the Downtown looking north with new food offerings,arts,and activities. should be to attract a permanent residential population through new housing construc- tion on available sites.This recommendation is supported by a detailed DADP residential mar- iihig ket analysis that anticipates potential demand for up to 1,850 new housing units in the next 5 years. Simply put,this means that Downtown could absorb approximately ten new developments the size ofthe 165-unit Cosmopolitan by 2020. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 55 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi Development should be targeted to sites near or existing surface parking lots with housing or existing retail and help support additional retail, on Chaparral Street with vacant,single-story other higher-value uses,while minimizing the dining and cultural offerings. buildings,large underperforming parcels with significant costs of providing parking for new de- single ownership,and/or other underutilized velopment.Rehabilitation of existing structures The retail market analysis shows that the Mari- sites such as large surface parking lots.With over can also play a role in new housing—potentially na Arts District possesses the Downtown Area's 11,000 existing off-street parking spaces in the leveraging historic tax credits as an important best established cluster of destination retail and Downtown,there is ample opportunity to use funding mechanism—with vacant multi-story entertainment destinations,and some of its best existing parking—particularly structured park- and well-designed buildings like the former opportunities to reinforce this cluster with more ing—more efficiently among uses like housing Montgomery Ward structure at the corner of and larger venues.Live music and unique dining and office that have peak demands at different Chaparral and Peoples as prime candidates. destinations are prime strengths,with opportu- times.This would enable redevelopment of Future residents will in turn increase demand for nity to grow their share of market demand.The DEVELOPMENT PROGRAM MARINA ARTS DISTRICT Building Type/Density Multifamily residential with structured parking,office, 7 , hotel SNOR�LB&9[II9lEYARfI PROERWQIINB +rlth loud m>x and vm�lrmn Typical Height Range 3-5+stories i2AlY plslGT PARICWGSIRI7EGY Range of Development 1,000,000 sf Quantity lin SF) rs _ Unit Counts 1,500-2,000 residential ;, a r� ,� a -�,-'View �", units,150,000-200,000 sf — - office space lCancept View P 57' STREETIHPROTEKIENT 5MUSNEWPFIELDPYffNI Gl12dR?cdl _ t*+ O io 9errraye sTraslriclurc - P: [,1 ,MIX RAINCr ^, r uturc Qr.-:. ACTRATE LF RETAWA 'h.4RI.ICGSrllEIIdL#IS&STA;RS PARK rNXING OPMWN TO DOWNDWN I� 1 .`NPRORe 1E9PARD ST.CONNECTIVITY 1UPEOPM Ou SFHAe£FL * , ion t. 56 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpns Christi district's established role in tourism and emerg- on the SEA District(two hotels)and Bayshore average Texas city.That said,demand for up ing role as a neighborhood will strongly benefit Neighborhood(one hotel),but the Marina Arts to 100,000 square feet of additional downtown from and contribute to a stronger retail and District remains an appropriate place for poten- space for administrative and support industries entertainment presence. tial additional hotels and upgrades to existing is projected over the next 10 years.There is hotels. enough existingvacant office space in Downtown The Marina Arts District is well known for its Corpus Christi to accommodate this.Trends array of hotels along Shoreline Boulevard facing Prospects for office space growth are less strong, in other downtowns like Corpus Christi's that the waterfront which welcome tourists and as the office-inclined financial services,informa- are seeing an influx of residents indicate that visitors.The hotel market is performing well tion and professional&business services sectors mixed-use downtowns particularly support the and continues to deserve a major presence in the play only about half as much a role in Corpus establishment and growth of small businesses, Downtown.Active hotel proposals have focused Christi's underlying economy as they do in the POTENTIAL Lr New Restored New Chaparral;wider sidewalks, Artesian Park ' housing Ritz Theater housing compact lanes,two-way activated 4- kr; EXISTING -'—'-:air-- T ` Chaparral Street at Artesian Park,looking south with new residential development and streetscape. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 57 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi which together contribute more to job growth emphasis on providing active ground floor uses routes and improved information.Continued than large businesses. like retail wherever possible,and particularly linkage to the new RTA center on Leopard Street Having a variety of uses present on or near all along established retail corridors.Active ground is essential and could be integrated within an blocks—keeping streets active day and night, floor uses also deserve priority along Shoreline improved Leopard Street(see Streets and Pub- weekday and weekend—will help expand market Boulevard,which lacks retail today but offers lic Realm below).Convenient service to North potential for development.Improved walking important opportunity for it with signature Beach is also essential and must be integrated connections between the concentration of office walks attracting tourists,workers and residents with street pattern changes associated with the uses on the bluff west of Broadway,and the alike,and connections to the Marina. new Harbor Bridge. greater mix of retail,office,hotel and housing activities east of Broadway,could effectively 0101w- With over 11,000 parking spaces in private improve the integration ofland uses.This would TRANSPORTATION AND PARKING garages and surface lots in the Downtown enhance the emerging residential character (including the two blocks west of Upper Broad- The existing street grid has inherent advantages Broad- present on parts of the bluff,and reinforce way to Tancahua Street),there is an abundant that enhance access capacity and convenience: Chaparral Street retail by harnessing demand walkable,bikeable scale;a density of destina- supply of parking that can be leveraged as an from more daytime workers. tions that makes walking,transit and biking asset for future development.Focus on in- access convenient;and multiple driving routes creasing utilization of existing parking by Urban design in the Marina Arts District that prevent bottlenecks.Moving forward, establishing district-scale parking man- should be geared towards creating an invit- transportation policy for the district should agement that enables uses with different ing,memorable,and walkable street and maintain and enhance this set of qualities,with demand peaks to share spaces during block pattern.Downtown already offers the particular emphasis on prioritizing walkability the course of a day or week.In the near- city's best environment for walkable mixed-use amidst the balance of transportation modes. term,surface lots can potentially serve new development—owing to its frequently spaced Inviting people to walk or bike instead of drive development nearby,while large surface lots streets,human-scaled streets and sidewalks, through safe,convenient sidewalks,transit themselves—particularly between Shoreline and variety of established,interdependent land service and bike routes in Downtown will calm Boulevard and Water Street and along Chap- uses,These qualities are principally responsible traffic,ease parking demand,and create still arral—may be prime candidates for redevelop- for the recent attractiveness of downtown as a safer streets for pedestrians and bicyclists.Spe- ment.In those instances,new parking could be place to invest in new housing.To maintain and cifically,transit improvements should take the contained on site within the new development expand these qualities,and the investment that form of a branded circulator for visitors(and (as in the Cosmopolitan)or be accommodated comes with them,any development incentives others)that would run between the Art Center in nearby garages if applicable.Overtime and offered through TIRZ#3 or other means should and the SEA District on Shoreline Boulevard with development momentum,additional be conditioned on building design that supports linking the two districts.Similarly,recruiting structured parking utilizing public funds or these goals.With each development project,this a water ferry or similar service between the through public-private partnerships might be approach will enhance the quality and value not Marina,the SEA District(with re-established considered in strategic locations.For further only of one parcel but of the streets and prop- service)and North Beach would link all three detail,see the Transportation Chapter on page erties around it as well.See chapter 4 for more districts efficiently while highlighting Corpus 101 and the map of potential shared parking detail on appropriate development guidelines. Christi's signature bayfront.Established bus opportunities on page 59. To leverage its traditional walkable charac- routes serving workers,residents and the gen- ter,the Marina Arts District deserves special eral public should be improved with simplified 58 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi ir Qffce space,hotels,housing and retail can share use of some of the Marina Arts Districts many of-street parking spaces at different hours of the day,freeing parking lots for redevelopment and reducing need to ++ build parking to serve new development. — e JJ11 jY T e� ,'341 �yt( 917 y I 4 MAMSTREET- S _y • r 6,. 71 53 ; 131 . J1 207 50 � ,53 'F�d'-� �-r-Z . .r o iso ki„M1 �. : Y ' - 15 A� i +M,,, i �I 1 �• � � � �r F ~ °g ®iya 7 � l __- ti �',-� 325 �,!':- '�••-. f 126 �.f 239 ® ®" 0 $,. 164a / r61 *� �_ � � _•1 � � :. - T—.• � � � vim' 'c� � - t # — ORWAY STREET ' LEGEND 143 11,395 parking spaces available -' 3• r _ 305 _.i 4,iaExisting surface parking spaces Existing structured parking space& F►-� 1. ; Total 4,294 y f 10]5 A- IS � • L 300 277 69 Total B.917 Throughouterea 1 - r 51 239 196 196 302 9 Organize managerneot placement of on street;orking- of proceeds ii� - 266 Sample"Parking she.. 82 opportunity for land uses with Pc different demand peaks to share spaces iIy �' I r{ - EL 266 e7`yc: 1 I {•r a i-.`� ;ice'- ly y k,' r M s �'S• ��w'I�,�' q'r4 �.��'�1' � '� �� f r '4 J � f 1�. Y «N EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 59 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi i (Art Center,YMCA)that will promote vibrancy to traffic on summer Sundays from sunrise to STREETS AND PUBLIC REALM on the waterfront.New or improved Shoreline sunset.Phase 2 Chaparral Street improve- While there should be current focus on lever- Boulevard crosswalks at every intersection ments will be supported through dedicated City agingprivate investment and incentivizing between Lawrence and Mann Streets should funding,but based on the Phase 1 precedent it is housing,this development should be supported be implemented through wide paint striping, critical that construction processes emphasize with targeted public investments in specific pedestrian controlled walk signals,ADA accessi- unimpeded pedestrian and vehicular access to street and public realm improvements.For ble curb cuts,and landscape treatments to calm existing businesses,to minimize disruptions to instance,the former northbound Shoreline traffic and create a seamless integration between these establishments.This can be accomplished Boulevard right-of--way between William interior streets and the waterfront.In addition, through sequenced construction staging,public Street and Furman Avenue offers a unique and "pedestrian and bicycle-only"days might be media alerts,and other forms ofpublic informa- timely opportunity to focus new arts,dining, considered through the closing of Shoreline tion sharing.Improvements to Leopard Street Boulevard northbound and southbound lanes and Upper and Lower Broadway are recommend- and recreation programming tied to nearby uses MESUIT€ETRE€T s r Uk,4 i • � � , 1 rl 1. i I I I � r I.IY - " T • '�.� � I.Y• I ; ; }�+ � - "_".+� -� - -moi • 1 r M CARANCANA _. _+'ACEI r' r.: .__.._"f. , • � � Proposed pedestrian improvements connecting Upper and Lower Broadway 60 PLAN CC MARCH 2T 2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES Targetedprioritiesfor a vibrant and connect Corpns Christi ed,including improved landscape,paving,and of Corpus Christi public spaces and districts. lighting in the near term and pedestrian ramps The recreation trail could be extended into the in the long term to strongly connect Uptown and marina T-heads at Peoples and Lawrence as a Downtown(see diagram on page 60). clear wayfinding route that welcomes people into the marina environment and provides access to DMD programming of La Retama Park and the easternmost edge facing the bay.The trail Artesian Park should be continued to contrib- should be defined by clear,consistently designed ute to a lively,community-building atmosphere. signage,shade,water fountains,benches and Both of these public spaces could be connected lighting,as well as opportunities for public art. to the waterfront through a new multi-purpose recreational trail for pedestrians and bicyclists that ties into a larger network and links a variety T - h Potential promenade replacing former roadway at As in these examples of theArt Center of Corpus Christi rides led by Ride Texas A andtheDowntown � - .. �S Management District, • FIRE 1 ' portions of Shoreline �_- „ �- r t•' ' ' +, , Boulevard or other7" �� ,gip, roadways could be closed to trafc on weekends or at other times oflow C-- trrgficdemand,to allow biking,walking and in- line skating. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 61 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi Bayshore Neighborhood IDENTITY KEYTHEMES "Connecting neighborhoods and people Downtown to the Bay and destination parks" >Signatureparks >An established place to live that can grow into a waterfront „neighborhood„ >Active hotels,churches,and neighborhood services he Bayshore Neighborhood is defined by two main features—the parks along �`t i `RE ; I ' the waterfront and Corpus Christi Bay ; r itself.Recent reconstruction of Shore- ! line Boulevard,Sherrill Park,Water's Edge Park 1 (formerly known as Bayshore or McCaughan j Park),and the McGee Beach bathroom/conces- sion pavilion have dramatically enhanced the ARTS G � area's appearance and opportunity for enjoyable 16h I activities near the water.Between this signature M CG E BEACH public space and established neighborhoods on the bluff to the west,there is an attractive oppor- tunity to transform vacant lots into a mixed-use district that celebrates its connections to the IRdf��[ f�� �jEjIE waterfront,to the Marina Arts District,and to other neighborhoods.Water and Park Streets are well-located to play important roles as principal streets in the district.Water Street isa ,� '6 a wide,vehicle dominated corridor with narrow sidewalks and few street trees.New residences would create an inviting,active street with the potential for focused retail activity.Park Avenue is currently an auto-oriented street with narrow 1D� CIE 7y sidewalks.A new approach would recognize this LiL i I I street's potential as a gateway to the Bay from -a*— �_ 1 kT[tlj}jsr Uptown,with exceptional views to the water NUR3 N along the top of the bluff.Together,these changes will make the Bayshore Neighborhood a gracious, 62 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi connected,visitor-and family-oriented commu- nity steps from the Bay.An opportunity exists Pr for the City to initiate a stakeholder process to develop an identity for the neighborhood. LAND USE AND URBAN DESIGN Current land use in the Bayshore Neighbor- ----: hood is characterized by a mix of multifamily i -= residential,small office,and retail in the vicinity of Water Street.Other residential and institu- tional uses,including the YMCA and a number '`+j� i------------------- of ------ -of churches,some with associated schools,are found farther to the south and west along the cor- ridors of Broadway,Chaparral,Carancahua,and Tancahua—eventually connecting with Uptown to the west and the Spohn Shoreline hospital I " area to the south.New privately-led development on underutilized land along Water Street will add two hotels and a health care facility.Other 016. parcels offer excellent potential for new housing, �' ` with easy access and views to Water's Edge and P ACR111'REUfYE1t1PMEXl. Sherrill Parks and the Bay to the east.This would nit err complement and create a critical mass with new DEVELOPMENT PROGRAM _ BAYSHORE NEIGHBORHOOD I 'r Building Type/Density Multifamily residential with -N surface parking,multifamily residential with structured = parking,hotel Typical Height Range 3-5 stories Range of Development 860,000 sf Quantity[in SFJ Unit Counts 1,000-1,500 residential units Water Street looking towardDoumtoum Bay Vista Apartmentsfrom Caraneahua Street EXHIBIT A PLAN CC :OWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 63 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi residential land uses already taking shape at Shoreline circulator could ultimately connect to Bay Vista apartments(169 units)and Bay Vista TRANSPORTATION Spohn Hospital as well as Cole Park to link these Pointe apartments(181 units).There are also Public transit connectivity between the destinations to the Marina Arts and the SEA opportunities to strengthen land use connections Bayshore Neighborhood,the Marina Arts Dis- Districts, with infill development between Bay Vista and trict,Uptown,and the SEA District,as well as the Spohn Shoreline Hospital,including housing, points to the south should be clear,efficient,and medical and other professional offices,and/or STREETS AND PUBLIC REALM accessible.This can logically take the form of improved streets. improved public bus routes alongprimary north/ Improving Park Avenue and Water Street to south corridors such as Tancahua,Carancahua, make them invitingto pedestrians and bicyclists In terms rl urban design,view corridors are Chaparral,Water,and Shoreline Boulevard.F�- and to promote ongoing and future develop- particularly important in the district,with long ture connective should be considered through ment deserves priority,views to the Bay from the upper bluff.These �' g P ty,as does repurposing the the dedicated Shoreline Boulevard circulator former Shoreline Boulevard right-of-way into an streeviews can be strengthened through improved route that is being analyzed by the RTA and is one active,public space destination.The Shoreline and p scape and trees that define sidewalk edges of the key recommendations in the DADP.The Boulevard paving could be simply re-painted to and promote wayfinding.New buildings should front onto Water Street with limited setbacks to create a more intimate walkable environment that still allows generous sidewalks,on-street parking,and vehicle traffic lanes(see potential street section diagram).At the same time,those buildings should have fagades that address Shoreline Boulevard,Sherrill and Water's Edge t Parks,and the water to the east through key pri- mary entries,balconies,and window treatments. Development should be at a scale that creates a comfortable walking environment with engaging ground floor uses(possibly retail,small office, and/or transparent residential entries)while integrating building forms that highlight the intersection of Park Avenue and Water Street as C a memorable district center. SMRAIR II�NS� � I0.M[We �RWkL G IRRYIIAG �RANFLIK �FM',4�it SR7i11.M1111 STOP SGfM S0.TN fifielN N01RN 51M Proposed street section for Water Street,featuring shade trees and ground level plantings separating pedestrians from trrgfic,and narrower lanes to reduce vehicle speed 64 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpns Christi indicate places to exercise or sit,with new shade - C- -'C-structures or other play-related elements.A ded- L ILIL � 4- IL - WW icated bike lane as part of the larger recreation - c trail network for the Downtown Area could be in- { _ �- cluded at low cost,connecting to the Art Center and points farther north in the Marina Arts and SEA Districts.Improved food concessions-par- ticularly at the terminus of Park Avenue and the water-should be integrated as well as landscape 75P zones for shade trees or palms that would tier _ in directly with adjacent Sherrill and Water's Edge Parks.Dedicated funding and improve- ment plans by the City Department of Parks and Recreation already in place for these two family " z parks are critical and should be implemented as a «� priority initiative as soon as possible. Conceptual Plan of re-striping and programming ofabandoned Shoreline Boulevard at McGee Beach. POTENTIAL JJJW," Improved park and Growing neighborhood Walkable,bikable,tree-lined ' beach destination along ParkAve. street with views to Bay EXISTING C ALI Safe,generous,and - - A view on Park Avenue looking east toward the attractive crosswalks bayfrontwith new streetscape and infill housing. ys EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 65 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi Uptown and Surrounding Neighborhoods IDENTITY KEYTHEMES "Expanding choices for housing,jobs, Downtown and transportation" vibrant,walkablecorridors for living,working,and shopping along Staples, Agnes opportunities>New mixed-income housing >Va riety of excellent transportation options ptown is the focus of municipal F T 7 life in the city with City Hall posi- tioned strategically at the corner of Leopard and Staples Streets,and the Nueces County Courthouse complex nearby. Uptown is also a place of offices,small busi- nesses and the new RTA transit hub for the city, at Staples and Leopard Streets.Established is 0 residential neighborhoods are arrayed to the west and south,and additional housing is present 4 r just to the east,including the Trinity Towers — 4 senior housing at Carancahua Street and Coo- o— ST14lESS1REE5 pers Alley,and Atlantic Lofts at Carancahua and !I Winnebago Streets.At the same time,Uptown YAM lacks sufficient cohesiveness to feel like a place of consistent identity and quality.As in the Ma- I-37 EITYu I � = rina Arts District and Bayshore Neighborhood, w ` however,housing can be a catalyst.There is potential to bring new market-rate and af- fordable housingto selected areas of Uptown �. ! and the surrounding neighborhoods,building -= g neighborhood cohesion and leveraging the pres- ence of jobs and transportation.The Leopard, Staples,Agnes and Laredo Street corridors offer particular need and opportunity for this invest- ment. CROSSTOWN The significant visibility,accessibility and ND development gaps of these corridors enhance development opportunity,and the high visibility of potential new development would in turn have 66 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLA, I MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant andconnect Corpus Christ{ an outsized impact benefiting the area's image and market position.Ongoing reconstruction of Public/private partnerships and incentives Staples Street will help provide a better climate for business development . nd affordable and for investment in all these corridors.The private ~; x1F- workforce housing in Uptown south of Leopard sector,City,Uptown Neighborhood Initiative and - Street are needed.Focusing established tax other stakeholders can produce visible change7--a abatement tools,along major corridors like Agnes, ' '` for the better in avariety of different ways. expandingLaredo,Staples,and Leopard,and eligibilityfor small businesses can help. LAND USE AND URBAN DESIGN Market-rate development opportunities - f •'���F"_ '�T"�— "�`� exist along the eastern edge of Uptown closer to the Marina Arts District,particularly in the vicinity of the Atlantic Lofts condominium ,=fit -• _ building.New development here would create a ";;A concentration ofresidential units at the top of o, �,� the bluff which might leverage existing parking ° structures while creating more pedestrian vi- brancy in Uptown.To complement this poten- tial,key parcels on LeopardStreetbetween Broadway and the new RTA center should be R redevelopment priorities.Several underuti- �W lized sites or large surface parking areas have the potential to be redeveloped in this location to f " d ffn •' E L —_ t `'. bring vitality to Leopard Street.As an example, portions ofthe City's own parking lots serving City Hall should be considered as potential de- DEVELOPMENT PROGRAM { t l-� ty UPTOWN - ��;tet t -1'. S . �44 x�•" .f t ` . Building Type/Density Single-family residential. .,., :�:" ���_ "�'��,�i _ • �•�� ` Multifamily residential with. surface parking,hotel,office Typical Height Range 2-5 stories m0lydlYR£LQYfl11 www Upin aimlCi WKKFLN TY Range of Development 1,250,000 sf Quantity lin SF) Unit Counts 500-1,000 residential units, 25,000-75,000 sf,office space EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN l MARCH 27,2018 1 67 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpns Christi velopment sites.Making arrangements to accom- of Agnes and Laredo need particular attention helping create a more marketable setting for real modate infrequent peak city hall parking needs as prominent entrance and exit points from estate investment on surrounding blocks.This on nearby blocks could free up enough space for the Marina Arts District(becoming more so location allows efficient access and connectivi- new housing at the corner of Leopard and Staples with the coming ofthe new Harbor Bridge),and ty to Uptown and the Marina Arts District east Streets,extending south along Staples to comple- could provide a focus for affordable housing and along Leopard and Lipan Streets and north along ment the new RTA building,making a powerful diverse businesses.Public spaces such as South Staples Street to Washington-Coles.The DADP statement about new housing and development Bluff Park and Blucher Park provide important recommends extending Staples Street into opportunities in Uptown.Staples Street still re- public space options for existing neighborhoods the SEA District thereby creating even greater tains the character of a mixed-use corridor with and potential new housing. connectivity and access opportunities between potential for housing,retail,and small business- Uptown and the waterfront. es.South of Lipan Street,the historic corridors TRANSPORTATION Uptown also presents important opportunities to The CCRTA Staples Street Center at the inter- create a network of convenient,safe bike routes A � section of Leopard Street is a new Uptown land- serving the Downtown Area.Bike lanes parallel w mark.The$22 millifacility to Leopard on Antelope Street,and parallel to —. on y provides a strong center of activity and use in the heart of Uptown, Staples on Alameda Street,deserve priority to +1 serve major Uptown destinations and connect ........... ..e'G r` =° x., �e it • C , ` i 4x. Conterprovides Xtensive transit Itions to Uptown d surrounding Z r r _ r n � it • r e ,e K+w- ftaM�i��.Wmr.w !7� iWw�st iwurc wa .wc 1mk �a,K�x [.arm V wa+t xnuri �mr •W «Neighborhoods. .. ;.� Proposed street section:Leopard Street 68 PLAN CC DOWNTOWN AREA DEVELOPMENT PLI-. MARCH 27.2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi to Westside and Downtown.Connection to the reducing the number ofvehicle lanes from four more walkable and inviting.Future infill devel- new Harbor Bridge's planned recreational path to three,expanding space for sidewalks,street opment will help fully reinforce these corridors will open a direct off-street biking connection trees,and occasional landscaped medians.A as active mixed-use destinations for residential, to North Beach.From the southern end ofthe lighting initiative for increased pedestrian retail,and businesses. New Harbor Bridge,east-west bike routes should lighting—focusing on public safety for intensive- connect with Park Avenue to access Shoreline ly used pedestrian zones along Leopard Street Boulevard parks and trails. (extending into the Marina Arts District along Peoples Street)—is already underway and should EXISTING be fully coordinated and integrated with Leopard STREETS AND PUBLIC REALM ' Street redesign(see potential street section,page k# 68).These improvements can complement new Beyond the Staples Street improvements already development to make Leopard Street an attrac- F "e underway,Leopard Street improvements and economically strong gateway t the city. deserve first priority to improve walkability Critical improvements are also needed to bikability in Uptown.Possibilities include o make a Staples Street,Agnes Street,and Laredo Street P®TEN7IAL Visible businesses Expanded sidewalks Newhousing using 6. Shade Newhousingusing on side street and landscape areas existing parking trees existing parking nUa. a Leopard Street looking east towards Downtown with improved streetscape and infill development. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 69 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi Washington-Coles IDENTITY KEYTHEMES "Strengthening an established >Transformative reconnection to the waterfront and Uptown along new streets and recreational paths neighborhood with connected streets >Expression 'long, and housing" >New mixed-income housing opportunities ashington-Coles isanestab- lished,historic neighborhood ------------------------------- in _ ___ _ __ _ - -in Corpus Christi,defined by modest single-family homes,res- idential streets and blocks,historic churches and landmarks such as the Old Bayview Cemetery and Coles High School and Educational Center. Historically confined by the West Broadway rail ••. WHhTA URGER _ tracks and Harbor Bridge to the east and I-37 •QELD q to the south,Washington-Coles has long felt ___•'. r disconnected from the Marina Arts District,the _ SEA District and the waterfront.Largely as a re- `•r 137 sult ofthese barriers,the neighborhood has seen �•. CITY HAU little market-driven investment in decades,and Y K� contains numerous vacant properties. The Harbor Bridge relocation project will !( ' dramatically lessen those barriers,opening new opportunities for connectivity and r reinvestment in the neighborhood.Principal 1� ' new street connection opportunities include the r extension of Staples Street to the SEA District, f a rebuilt"Nuevo Aubrey Street"to the Bayfront in the place of I-37,more direct connections to Tancahua and Carancahua streets,and ramp HTsa�,r ` ! access to the new Harbor Bridge.Improved ac- � ORTH cess and ample underdeveloped land present many opportunities for new residential and commercial development that can reinforce 70 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAt. MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpns Christi neighborhood qualities and open up economic Ar development.Several opportunities are present b to rebuild Washington-Coles with development of mixed-income workforce housing: e • aggregating vacant and underutilized proper- ties for redevelopment, •:�_ b.» • designating the neighborhood a priority area ( ;_ for tax abatement incentive, I • re-using vacant city land such as the former _ Booker T.Washington School site(and eventu- ally,possibly highway right ofway vacated by y r TxDOT)for housing,and • partnering with workforce housing providers. Affordable multi-family housing and affordable WASHINCTOH COLES a j. wig single-family ownership housing on compact 4 a .•f F; lots could be focused within a couple blocks of Staples Street and on vacant parcels near - West Broadway,Tanea.hua,and Caraneahua Streets.These areas will open up as the closure - of the Harbor Bridge link here will allow I-37 to Washington-Coles could contain a variety of be redesigned from a highway to a boulevard east housing types such as these single-and multi- of Carancahua Street.With focused attention ti family housing examples. and dedication over time,Washington-Coles can r; be repositioned as an attractive neighborhood once again,close to amenities in the Marina Arts «N r. District,SEA District and Uptown,and offering flexibility for job-intensive development as well. DEVELOPMENT PROGRAM WASHINGTON-COLES LAND USE AND URBAN DESIGN Building Type/Density Multifamily residential with surface parking Current land use in Washing Lon- includes Typical Height Range 2-5 stories housing,three churches—St.Matthew,Holy Cross,and St.Paul—the Solomon-Coles commu- Range Development 1,680,000 sf Quantity [in SF] nity center,and several light industrial proper- ties near I-37.These uses are largely dispersed, Unit Counts 1,000-1,500 residential units with many vacant or underutilized properties between them,leaving no strong perception of a neighborhood or district.With future land use EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 71 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES Targetedprioritiesfor a vibrant and connect Corpus Christi UTENTIAL 1ZA a I moi, . ; I: 11' I .ry# A Y EXISTING Staples Street has the opportunity to become afocusofaffordable,workforce housing tostrengthen the established Washington-Coles neighborhood. �y emphasis an open question,renewing housing job-intensive uses benefitingfrom visibility as the neighborhood's primary land use de- and accessibility.Staples Street can be extend- serves special emphasis for several reasons. ed through to the SEA District across disused It will leverage market opportunity,leverage portions ofthe Broadway sewage treatment city-owned and other vacant land with redevel- plant,making this a more visible and attractive opment potential,fit with the existing neighbor- corridor for business investment.One block to hood-scale street network,and revive a neigh- the west,the former Northside Manor prop- borhood with important history,particularly as erty has been closed following relocation of its a center of Corpus Christi's African-American affordable housing units to the Palms at Leopard, community.Portions ofthe neighborhood along and the property is up for sale.Depending on the 1-37 can also be appropriate for office or other purchaser,this too might provide possibilities for 72 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpns Christi new workforce housing in a band ofdevelopment PROPOSED PEDESTRIAN AND BICYCLE NETWORK near Staples Street.East of Washington-Coles, the I-37 and Harbor Bridge interchange will be transformed,enabling an at-grade intersection at Broadway that will improve connection to the Marina Arts District.With these changes new ------ - I development opportunities will emerge be- i+irip •" •'""""....•.... ' tween the Old Bayview Cemetery,I-37 and West Broadway facing the bayfront and well connected paoun " "'•+-. to the Marina Arts,Uptown and SEA Districts. ++ Repurposingthe formertrain depot building :1 in this area,alongside new development,could bring activity and some amount of retail or din- 1L < I' ing options to serve the community. d TRANSPORTATION AND PUBLIC Ifl� - REALM The extension of Staples Street to the SEA "' ' -",�"'t`drru=.Y '" District will transform the street network of * !{ ' Washington-Coles,making Staples a focus of r'; R+.... W; ❑ 1M pedestrian and bike improvements in concert WASHINGTON-COLES with future development.Extension of Belden ti Street to intersect West Broadway should also be I • ` . considered to add a third route connecting the �`'•:.,+ r neighborhoodwiththe SEA District;this would �' �•'•+. ■,h+ '* reqre truncating the existing railroad spur to the former railroad station.Contingent on avail- able vail able funding,rerouted public transit should take ... advantage of these new connections.A new east- «N ''•+.•�� west pedestrian and bicycle route,located along neighborhood streets and park space where The proposed pedestrian and bicycle network would be routed through Washington-Coles along Lake available,would provide another important new Street connecting west to Hillcrest,east to the waterfront and south to Uptown. spine in Washington-Coles.Portions ofthis and Uptown.The proposed route would tie into have been proposed as part ofthe Harbor Bridge the larger DADP pedestrian and bicycle network project;to be fully effective,the route should and greenway recommendation connecting to extend east to Shoreline Boulevard and west to the Bay,Uptown,Hillcrest,and North Beach via Hillcrest,with connections to the Harbor Bridge the new Harbor Bridge. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 73 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi Hillcrest IDENTITY KEYTHEMES "Providing housing options and >Improved neighborhood streets and parks opportunities for current residents" >New recreationalpath Bridge, "' Options for living in or out of the district illcrest has been a cherished residen- tial neighborhood in Corpus Christi for generations.Hillcrest now faces a number of challenges that com- promise its long-term future.The new Harbor # 4* # � Bridge will create a significant barrier to the east, � t 4111, while surrounding port and industrial facilities j NILLCR6TPMN to the north and west have long had negative im- # #* pacts on the neighborhood.Over the past two to # ��►+ three decades,industrial entities have followed 4* a consistent pattern of acquiring residential # properties and removing any buildings on them, * R generally west of Palm Drive.Some light indus- trial uses are present on blocks adjacent to the � # oil refinery to the west,while blocks adjoining remaining residential properties are generally 'R p vacant.Blocks to the east that remain residential *► ► have a mixture of occupied and vacant proper- 4+!♦ ties.Houses vary in their state of repair;some are �� 4!+ # in good condition,while others need repair or are 40 / abandoned.Of the 700 parcels in the neighbor- hood,there are approximately 400 housing units. Approximately 235 units are inhabited.Some are owner-occupied,while others are rental proper- ties.Blocks at the center ofthe neighborhood are � a , occupied by Hillcrest Park,Bayview Cemetery and the abandoned,fire-damaged Crossley Ele- mentary School. 74 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES Targetedprioritiesfor a vibrant and connect Corpus Christi Current residents and property owners have var- ied opinions on the best future for the communi- ty.Some desire to continue to inhabit Hillcrest, due to their long term connection to the place and its people.Other residents and property owners acknowledge the neighborhood's signifi- cant challenges,and envision an ongoing transi- tion whereby residents move to other sustainable neighborhoods,and residential properties are ` sold to capture their value as industrial or com- HIIICRFSTPARK mercial real estate. A 2009 City-sponsored design charrette with H R E E R E S T Hillcrest residents resulted in a vision plan for neighborhood revitalization supported by some current residents.The plan maintains existing vacant,industrially-owned properties west of Palm Drive as abuffer from industrial uses,while reinforcing residential blocks to the east with rehabilitation of existing homes and construc- tion of new ones on vacant lots amidst them. '{ r �a New multi-family housing replacing the school 4 and around the park would restore a neighbor- hood center.To date,no action has been taken on +a _ implementing the plan. There are two ongoing initiatives focusing on the Hillcrest neighborhood.The Livability Plan,an initiative led by the Texas Department of Trans- Del Richardson and Associates,Inc.and current- portation to mitigate impacts ofthe new Harbor ly under way,offers current residents opportuni- Bridge,will identify strategies to enhance quality ty to sell their property,or receive rental assis- of life for residents who remain in Hillcrest.City tance,and move to an alternative neighborhood, Planning staff is actively participating in this ifthey wish to do so. Livability Planning Process with the community and remain committed to working on capturing the vision for the neighborhood.The Voluntary Acquisition&Relocation Program,managed by EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 75 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES Targetedprioritiesfor a vibrant and connect Corpus Christi Hillcrest is home to more than 200 families Industrial uses serve as a backdrop to the Theformer Crossley Elementary School Hillcrest neighborhood building,damaged by a 2013 fire r-- , IS SVR f�LLL.r.BfE�� R•. f/'f r 4Y _ �y ry 'HCl fJf' r Charrette concept and illustration of Hillcrest redevelopment vision from 2009 community charrette.To-date,implementation has not occurred ofthe plan envisioned. 76 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi THIS PAGE INTENTIONALLY LEFT BLANK. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 77 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi SEA District IDENTITY KEYTHEMES "Promoting vibrant and accessibledestination destinations within a walkable setting" >Exciting newplaces to play, and District,live >Attractive,walkable public streets,waterfront,and gathering places >New street and recreational path connections to the Marina Arts Washington-Coles he SEA District is Corpus Christi's pre- mier sports,entertainment,and arts t I destination serving an ever-growing USS LESINUMN local and regional population.Plan- ning for the SEA District's future in light of the AS ST1iE forthcoming Harbor Bridge relocation has been AMMEARIIW an intensive,ongoing process,driven by the 2014 AMERICAN BANK Regional Urban Design Assistance Team(R/ GENT>ER r w UDAT)study.With the relocation of the Harbor , '� tiArftVSTR�T Bridge,the SEA District stands to evolve from * euNYFt[iAN l an auto-oriented destination area,separated i pt CEHiEA 4 + from the Marina Arts District by I-37,to a morePat + - C0�1€THINISf connected,accessible,and walkable setting.Key +,« street and sidewalk improvements within the +++ '' _ ----------- district, ----district,and pedestrian street improvements and '• _._�_._w_ -. public transit to and from the area are critical A and should be implemented as soon as possible. In addition,there are significant development w opportunities between the Convention Center �U and Federal Courthouse which would add needed •••�•`• WHAiABURUER housing in areas facing Shoreline Boulevard and , •'• ETp s the waterfront and bring added vitality to both. i .®aml s W.r■v r 1 Nam ",•*. 78 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi LAND USE AND URBAN DESIGN Current land use in the SEA District is focused on entertainment uses to the north along the Bay and shipping channel.Opportunity exists to tie these destinations together through clear walkable connections particularly between Whataburger Field,Brewster Street Ice House, "ri.d,cI wr+wd the Museum of Science and History,Harbor Playhouse,the Art Museum and Convention Center.Excellent expansion opportunities for c s the Convention Center exist on surface parking parcels to the west of the facility(following a R/ UDAT recommendation),while more residential mixed-use opportunities are possible on un- derutilized or vacant lots between the Conven- tion Center and I-37.This is especially important in creating an active built environment of streets and buildings internally along Chaparral and Wa- ter Streets,as well as having a formal built edge I $� along Shoreline Boulevard with ground floor -� entries and other active uses that take advan- tage of the new Shoreline Boulevard park zone '4* *�r5 NMI I ammupww and waterfront.Similarly,available land parcels °P could be developed north of I-37 between the ~ old and new Courthouse buildings adding much 5fd I]I5TRICT needed vitality along this street segment.Land uses along North Broadway(old US 181 right- of-way)figure prominently for future parking DEVELOPMENT PROGRAM and will be a focus of arrivals with walking and SEA DISTRICT transit connections to facilities for events. Building Type/Density Multifamilyresidentialwith structured parking,office,hotel Typical Height Range 3-5+stories Range of Development 1,590,000 sf Quantity[in SF] Unit Counts 2,500-3,000 residential units, 50,000-100,000 sf office space, Convention Center hotel desirable EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 79 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi i District and waterfront.A generous pedestrian The current I-37 and old Harbor Bridge TRANSPORTATION promenade should be included along the new highway interchange can be transformed Three key enhancements are recommended in street segment,which could be closed during once the bridge is relocated.A new gateway the SEA District to improve the transportation special events such as Ride-In movie nights. and traffic circle have the potential to allow for and pedestrian network: Extending Staples Street past West Broad- more clear and efficient wayfindingto the SEA • Addingan extension of Shoreline Boule- way through Washington-Coles to Fitzger- District,the Marina Arts District,and Uptown ald Street is recommended.Promoting this while offering better pedestrian connectivity vard between the Convention Center and Art important access link from the west once the across the I-37 corridor.The current south Museum past the Water Gardens and connect- Harbor Bridge is relocated would relieve traffic approach to the bridge can be rebuilt as North ing to Port Street will complete the Shoreline during events and connect Uptown,Washing- Broadway Street,which existed here prior to loop and tie the SEA District to the Marina Arts ton-Coles,and the SEA District. bridge construction,and cross-streets linking POTENTIAL Convenient Stiongerconnections Enhanced development Expanded trafficflow among districts address sidewalks A /I A roundabout concept replaces the highway interchange where 1-37 today meets the current Harbor Bridge—this would create efeient trafc flow and a new gateway to Corpus Christi. 80 1 PLAN CC I MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi Tancahua to Mesquite and other north/south porate pedestrian and bike improvements across with a station at the Solomon Ortiz Center com- streets.Broadway can connect directly into the the 1-37 corridor to improve access and wayfind- plete the SEA District access network south leg of the traffic circle,improving links to ing from the Marina Arts District.Programmati- Uptown and the Marina Arts District. cally,an"event traffic management"plan should be put into place that coordinates the work ofthe Port Street can also take on added significance as City,TxDOT,RTA,and event hosts,along with away to enter the SEA District from the west— event signage and other directional assistance to the street has already been improved to accom- parking and event facilities.Public transit in the modate high traffic volumes generated by events form of a dedicated Shoreline Boulevard circula- and industry.The primary north/south local for and recruiting a water ferry or similar service streets of Chaparral and Mesquite should incor- 1 s t s xl � 4 F � _ = w r y �1'll'1 edl �I j A EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 81 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi STREETS AND PUBLIC REALM PROPOSED PEDESTRIAN AND BICYCLE NETWORK Street and walkability improvements should be an immediate priority in the SEA District. "` �, ,•` Making the district more walkable and con- •-.---.-��_�.�-- ,�......� .�. ,.... ; nected through good streets and shaded,well lit _ ,xsu �+ „ •..T sidewalks will improve the identity of the SEA _ 1 District as a place to stroll and circulate between S+ +�+,. •'•• '+ t- attractions,creating dynamic synergies betweenu, ,; uses as opposed to a series of stand-alone facili- ties.Streetscape work should focus first on both ` sides of Brewster Street between the Ice House and the Convention Center(Tancahua to Chap- arral),followed by both sides of Chaparral to hap-arral),followedbybothsidesofChaparralto *!'• ;� n Hirsch,and finally Hirsch and Mesquite Streets. The recreation trail concept in the DADP should be integrated with recent park improvements mei:° Vii_, along Shoreline Boulevard between I-37 and Be- �:� l yi TL- saca Street.A new promenade around the Con- vention Center and Art Museum and reachingV A! to a new ferry stop at the Solomon Ortiz Center $ �4 extends the trail and is recommended to allow for I 1 � ' ferry transit connectivity and a place for visitors to get close to the water(leveraging exception- A al views to the USS Lexington and Texas State Aquarium across the channel).Mesquite Street '`• ... ,. becomes part of the recreational trail network as well between Heritage Park and the Marina Arts �`'• •• District,with a dedicated bike lane or shared bike lane as space allows,alongside enhanced land- scape,lighting,and signage-I-37 should become a unique landscaped gateway to the Bay,tying into a new traffic circle at the former I-37 and old Harbor Bridge interchange,while the recreation trail would be integrated along Belden Street between Washington-Coles and the waterfront. 82 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES Targetedprioritiesfor a vibrant and connect Corpus Christi POTENTIAL 7 The area between the Convention Center and Art Museum of South Texas,looking towards the new HarborBridge and showing an activated space with arts and Shoreline Boulevard connection to _ Port Street. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 83 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpns Christi North Beach IDENTITY KEYTHEMES "Beach and attractions" >Easy access to spectacular beachfront >Exciting opportunities to explore nature and history >A unique dining,shopping,and hotel destination „neighborhood„ orth Beach is atourist destina- tion and beachfront residential NORTH EIAEH community with a mixture of single familyhomes,condominiums,and hotels extending north from the Texas State Aquarium and USS Lexington along Corpus Christi Bay.Distinct from the SEA District and Marina Arts District,yet still connected to them by the Harbor Bridge,North Beach is a unique place in the City to experience long,uninterrupt- ed expanses of sand,the distant horizon line of the Bay,the open sky,and the water's edge.Re- cent renovations to waterfront hotels and restau- F WS LEINNUION rants,new single family residential construction n to the north—with raised first floors and other TEXAS STATE flood prevention design elements—and projects + ARUARIUM k such as the Aquarium expansion and improve- ments to North Shoreline Boulevard in front of NEIrlARf�LIR'•., *r the Lexington are changing the face of North 9REOGE s t Beach.The biggest change will come through the relocation of the Harbor Bridge which will transform the circulation patterns between North Beach and the Downtown area.Reloca- tion of on/off ramps will free up land previously occupied by highway infrastructure that can be I[ re-purposed or possibly redeveloped.RecognizNow - ingthe previous planning efforts and extensive community input embedded in the North Beach Development Plan(2011)and the North Beach 84 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi MAN rw�rr, •�` r Redevelopment Initiative(2017),strategic initia- tives are recommended to promote continued connectivity and to reinforce the identity of North Beach as a livable,inviting,"can't- miss"local and regional destination.Both North Beach Plans,available separately,should be used to help guide these initiatives. LAND USE AND URBAN DESIGN 4; -_Y4& North Beach development along and offthe ryr*,� waterfront is a reflection of the land's proximity to the bay and vulnerability to flooding and storm events.Raised first floors,parking underneath, 40 and other flood mitigation approaches are a common sight,and fixture development should carefully-follow City zoning,standards,and FAMIMM ' guidelines.Development opportunities exist in the northern area of North Beach near Beach DEVELOPMENT PROGRAM Avenue,where recent single-family cottage NORTH BEACH development can expand further.Additional Building Type/Density Multifamily residential units sites in the central and southern portions of and hotels with surface parking the district will become available for potential (some below buildings) development when the current Harbor Bridge Typical Height Range 2-5 stories infrastructure is removed.Opportunities here Range of Development 1,860,000 sf could include hotels,other tourism-related uses, Quantity(in SFJ and surface parking serving the beach and other Unit Counts 1,000-1,500 residential units visitor destinations.The DADP does not recom- EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 85 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targetedprioritiesfor a vibrant and connect Corpus Christi POTENTIAL DEVELOPMENT SITES 1. raiaw� iLIZ.. Native coastal plantings in the median ofTimon and Surfside Boulevard can help to create a new «N North Beach Boulevard"with other pedestrian and bike improvements. mend future development in sensitive lands west and lightingto ensure a bold and recognizable improvements are planned along North Shore- of the Harbor Bridge along the interior canal in entrance point.Sculptural elements that reflect line Boulevard to link the existing North Beach order to encourage natural landscape and water the Texas State Aquarium and Lexington could Beachwalk to the ferry dock,USS Lexington, retention areas,and to focus any development in also be located here within the median of Timon Texas State Aquarium and other visitor destina- areas with existing structures and infrastructure. and Surfside Boulevard for wayfinding.A new tions.This in turn will link to the Beach Avenue Portions ofthat infrastructure have been upgrad- -North Beach Boulevard"should also be cre- improvements,extending to new wetlands,bird ed,and additional improvements will be needed ated,through the redesign of existing Timon and watching park,and beach access in the northern to accommodate growth. Surfside Boulevards with street upgrades,a new portion of North Beach and to the recreation trail wide multi-purpose path for pedestrians and along the new Harbor Bridge.As funding allows, bicyclists(as part of the larger city-wide pedes- public transit bus service from North Beach TRANSPORTATION,STREETS,AND trian and bicycle trail network),and planting to Downtown and other employment centers PUBLIC REALM the center median with a rich palette of native, should be maintained and upgraded as part ofthe First among these will be the creation of a coastal plant species.The Harbor Bridge recre- Harbor Bridge construction. welcoming Beach Avenue gateway at the new ational trail can tie into this greenway at Gulf- point of entry to North Beach off the Harbor spray Avenue.A ferry or similar service should Bridge.Beach Avenue should be improved with be established to connect North Beach to the new pathways,destination signage,plantings, SEA District and downtown marina.Pedestrian 86 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES Targetedprioritiesfor a vibrant and connect Corpns Christi Vt PROPOSED PEDESTRIAN AND BICYCLE NETWORK 4. ESISIING BEADIWALK 4,� 'may NEWPEBESTRIA�" AIU BICYCLES RWTES + EXISTING POTENTIAL Additional North _ Nulti-use path to Signage and landscaping Beach gatewaysign beach and bridge introducing visitor destinations k 4 O Anew Beach Avenue Gateway"would welcome oortheproposed on/off A ramp and Povide anxc tingorientaton point - , as well as a recreational link to the beach. EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 87 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES I Targeted prioritiesfor a vibrant and connect Corpus Christi 88 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A Development Guidelines for TIRZ #3 & Connecting Corridors EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 89 DEVELOPMENT GUIDELINES FOR TIRZ#3&CONNECTING CORRIDORS his chapter provides a framework for future design guidelines for new development focused in TIRZ#3,but expanding to other J high-traffic areas.The design concepts are intended to promote high-quality new development thatpromotes a walkable attractive mixed- use environment and maximizes value for new projects and properties around them.These concepts build off guidelines adopted by the TIRZ#3 Board as part of incentive requirements and emphasize walkability and hu- man scale.The guidelines vary according to three distinct types of streets that occur in the TIRZ,that have different implications for program,design and vehicular access for properties that face them.The diagram at right indicates street type,and the following pages explain the design concepts for each type,with visual examples. 90 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A �N DEVELOPMENT GUIDELINES FOR TIRZ#3&CONNECTING CORRIDORS _.L PLAN CC :OWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 91 DEVELOPMENT GUIDELINES FOR TIRZ#3&CONNECTING CORRIDORS Primary Walking Street priority location for retail, other active ground floor uses, KEY STREETS&SEGMENTS and a safe and inviting walling environment;vehicular ' Chaparral from Kinney to Hirsch • Leopard from Staples to Upper Broadway access and parking should be discouraged • Shoreline from Park to Hirsch • Starr,Peoples,Schatzel1,and Lawrence DESIGN CHARACTER CONCEPT:PEOPLES STREET FAQADE IMPROVEMENT CONCEPT:CHAPARRAL STREET MAIM 1 a L M 92 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DEVELOPMENT GUIDELINES FOR TIRZ#3&CONNECTING CORRIDORS Flexible Access Street desirable location for occupied commercial and/or KEY STREETS&SEGMENTS residential buildings featuring a regular occurrence Most east-west streets downtown • Chaparral from Kinney to Park of windows and doors, with flexibility to include some • Water Street from Resaca to Kinney vehicular access for parking or service Mesquite from Brewster to Cooper's Alley • Tancahua from Port to Padre,then from Buffalo to Furman DESIGN CHARACTER CONCEPT:KINNEY STREET FAQADE IMPROVEMENT CONCEPT:WILLIAM STREET �rr�a I� EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 93 DEVELOPMENT GUIDELINES FOR TIRZ#3&CONNECTING CORRIDORS Gateway Street or Boulevard desirable location for occupied commercial and/or KEY STREETS&SEGMENTS • residential buildings featuring a regular occurrence of New Aubrey(former IH 37)east of Carrizo• Agnes and Laredo windows and doors, enhanced by prominent landscape plantings;vehicular access absent or minimal DESIGN CHARACTER CONCEPT:SHORELINE BOULEVARD&1-37 r 14 94 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A DEVELOPMENT GUIDELINES FOR TIRZ#3&CONNECTING CORRIDORS ing of all elements,including bays,fenestration, GENERAL GUIDELINES and materials,and any patterns created by their BUILDING FAQADE PLACEMENT arrangements. Building fagades—especially fagades with prima- Avoid large blank walls along visible fagades ry building entrances—should be located near the wherever possible.Where expanses ofblank sidewalk of ad-joining streets.The fagade should walls,retaining walls,or garage fagades are generally be located at or within ten feet—or unavoidable,include uses or design treatments other dimension typical of adjacent traditional at the street level that have human scale and are buildings—ofthe back of sidewalk or property line for most of its length(up to fifteen feet may designed for pedestrians.These may include fea- TREES AND ENVIRONMENT be appropriate along a Gateway Street or Bou- tures like landscaped areas or display windows. Incorporate on-site natural habitats and land- Building materials should be able to withstand levard).Facades at or close to the sidewalk are scape elements such as:existing trees,native generally preferred where retail or other active, the salt and moisture that is present in the air plant species or other vegetation into project publicly accessible uses occur at ground level. due to downtown's Bayfront location. design.Consider relocating older trees and veg- Deeper setbacks ofup to ten feet are appropriate OFF-STREET PARKING AND VEHICULAR etation if retention is not feasible.The planting where housing occurs at ground level.Site area ACCESS of native shade trees throughout the district is between the fagade and the sidewalk should be Off-street parking should be located and de- encouraged and will create a comfortable public landscaped with plantings and/or paved walk- realm. ing/seating areas as appropriate to building use. signed to have minimal presence,hany,along Parking should not be located between the fagade streets and other public spaces.Where a parcel SIDEWALKS and the street,particularly along Primary Walk- abuts two c more streets of different types, Sidewalks along Primary Pedestrian Streets ing Streets. vehicular access and parking should preferably should aim to include at least 8 feet of clear width way Street be located or a Flexible Access Street or Gate- available for walking,in addition to street trees, BUILDING FAPADE TREATMENT Street rather than a Primary planting strips and paved access to on-street Ensure that all fagades are attractive and well Walking Stre . parking.Additional paved area along building proportioned through the placement and detail- fagades may be used for outdoor dining,retail sales or other use related to adjacent buildings. v I + r ! l � E Fig EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 1 95 DEVELOPMENT GUIDELINES FOR TIRZ#3&CONNECTING CORRIDORS 96 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A Transportation EXHIBIT A PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 1 97 TRANSPORTATION �a r+ HARBOR BRIDGE OPPORTUNITIES +' The Harbor Bridge Relocation Project opens up significant opportunities to reconnect streets,add new streets,and promote better bicycle and pedestrian connectivity be- tween districts and neighborhoods.In particular,I-37 between the Crosstown Express- way(SH 286)and the waterfront can be reimagined as a landscape city arterial street, given that previous traffic volumes will be greatly reduced along this corridor.Similarly the previous I-37/01d Harbor Bridge interchange will no longer be needed.This old in- terchange has the potential to become a new roundabout and gateway that links together Downtown,Uptown,Washington-Coles,and the SEA District.In this scenario,North Broadway connects the roundabout and Whataburger Field along the old Harbor Bridge corridor with local linkages(Belden,Power,Resaca)being made across the former right-of-way.An extension of Staples to meet Fitzgerald Street would open up another important new connection to and from the SEA District.Finally,a recreation trail can also be accommodated on the new bridge,linking Downtown areas to North Beach. I' 98 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A �N TRANSPORTATION R a+ �r1 iy yi Oiiy}y y yiriy a7 yi 1r W.e}: Y� iy !� it [� ''1 `Y •� �.J .�. - }i ' yi } ys • .....L� u `` � n�,`- `fix• +. D •� ry4 } •yy }}y i ♦yr} }fir iy} +yi EXHIBIT p #PLAad -*OWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 99 TRANSPORTATION DOWNTOWN AREA ACCESS IMPROVEMENTS Access to the SEA District,Downtown,Uptown,North Beach,Washing Lon- Hill- crest,and other areas can be greatly improved with the relocation of the Harbor Bridge and other complementary strategies.Port Avenue could take on added significance as a way to enter the SEA District from the west.This street has already been improved to ac- commodate high traffic volumes generated by special events and industry.Staples Street could be extended past West Broadway and into the SEA District connecting to Fitzger- ald Street once the former sewage treatment facility is completely vacated.Agnes Street (as a entrance route)and Laredo Street(as a departure route)deserve special emphasis as important gateways to Uptown,Downtown and adjacent areas today and,more so when the new Harbor Bridge is in operation.Streetscape and signage improvements,as well as incentives for reinvestment in adjacent real estate,are warranted to enhance the transportation and land use functions of this gateway corridor. Chaparral and Mesquite should work together as extensions ofAgnes and Laredo,to connect the Crosstown Expressway with both the Marina Arts District and the SEA District.Chaparral and Mesquite should also function as welcoming walking and biking connections between the MarinaArts and SEA Districts.Critical pedestrian and bike fa- cility improvements within the SEA District itself would greatly enhance circulation be- tween these activity centers.Priority streets include Brewster Street,Chaparral,Hirsch, and Mesquite.North Beach will lose its Burleson Street bridge access with Harbor Bridge relocation,and connect to the bridge solely at Beach Avenue.Thus improvements are needed to Beach Avenue,and Timon and Surfside Boulevards from Beach Avenue to Breakwater Avenue,for vehicles as well as pedestrians and cyclists. I Programmatically,an"event traffic management"plan should be put into place that co- ordinates the work of the City,TxDOT,CCRTA,and event hosts,along with event signage and other directional guidance to parking and event facilities.Strategies to complete the n SEA District access network include public transit in the form of a dedicated Shoreline Boulevard circulator,and establishing a public or public-private water ferry or similar service. 100 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A �N TRANSPORTATION 1, -----------------�-�� 1 4> f AY CC MARCH 27,2018 101 i TRANSPORTATION TRANSIT ALTERNATIVES Public transit in Corpus Christi will playa key part in enhancing the Downtown areas. A dedicated circulator shuttle along Shoreline Boulevard should be added to link hotels and visitor destinations.Existing north/south and east/west bus routing should be en- hanced to be more clear and efficient.In addition,awater ferry or similar service should be established between the Marina,SEA District,and North Beach to improve connec- tivity.The diagram at right indicates where these networks might intersect and where stations can be located for access and transfers.The corridors of Chaparral,Tancahua, Carancahua,and Staples are the primary north/south routes,while Leopard and Lipan provide the primary east/west routes between Uptown and the Marina Arts District. The new Harbor Bridge alignment also accommodates an important bus route linking North Beach and Downtown area destinations.As funding permits,bus operation hours should be extended to accommodate workers and visitors traveling to and from hospital- ity and dining destinations. 102 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A �N TRANSPORTATION l -------------------------------- cl t •J' e ^a. o� 1 1) �— sri�l�wue " r?,4 J 4 i �t PLAN CC JWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 103 TRANSPORTATION PARKING MANAGEMENT With nearly 16,800 parking spaces—including 4,33'7 on-street spaces and 12,642 off- JJFWA YM street spaces in private garages and surface lots in the Uptown District,Marina Arts Dis- ERRR trict,Bayshore Neighborhood,and SEA District—there is an abundant supply of parking ••_ that can be leveraged as an asset for future development.In the near-term,some surface W_ Nit.- lots can potentially serve new development nearby,while others may be prime candi- � 77 dates for redevelopment.In those instances,new parking could be contained on site ' a within the new development(as in the Cosmopolitan Apartments)or be accommodated s in nearby garages.Other key strategies include: + y R • Sharing of parking by uses with different demand peaks(such as daytime office work- ' er demand and evening/weekend resident demand)through private agreements and/ ffiyr or district parking policy _ • Rationalizing the public on-street parking system by establishing a consistent meter- ing policy eter-ingpolicy • Enhancing the Parking Advisory Committee with additional professional parking expertise • Reinvesting parking proceeds into maintaining and building additional parking as t LEGEND i needed 11395 parking spacEs available On North Beach,enhance the visitor experience with improved parking options serving the beach and other attractions. roughout area }. Y }1�� . 1111a�mmmt mi .v. _a5 ! -5 104 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN MARCH 27,2018 EXHIBIT A O _ -�- 1RANSPOWAIw► I ' Sk r t , •.r f� i l� t " ! ,m =. r f L 325 !ate+*' - .$ .y� +� " _ f •f t - .S@ 11 C F4 ,mss I` 2n t- sY 239 lafi 441, +� 202 y ,y fy frisk r S h `% '1 �4l1 1 _ I —v 4 �i - i :t" Pib v r 1 i df -IPT y N . _ryI -cv F ♦ C/��'"�]gif,l .. �.A * 1; '' fff� lA I ryLAH CC _ r.`. - MARC 2 105 *r Abbreviations used inthis document CCCVB Corpus Christi Convention&Visitors Bureau CCRTA Corpus Christi Regional Transportation Authority DADP Downtown Area Development Plan DMD Downtown Management District NBCA North Beach Community Association REDC Corpus Christi Regional Economic Development Corporation SEA District Sports/Entertainment/Arts District TAMU-CC Texas A&M University-Corpus Christi TIRZ Tax Increment Reinvestment Zone TxDOT Texas Department of Transportation UNI Uptown Neighborhood Initiative 106 1 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN I MARCH 27,2018 EXHIBIT A do n own area, eve opment Plan CORPUS CHRISTI APPENDIX: REAL ESTATE MARKET ANALYSIS DOCUMENTS FOR HOUSING, OFFICE, HOTEL AND RETAIL k. •.-� "�' � .Y '�,:.k ,.z.,, nit j��'1a3,a "e s Ju?US MARCH 27, 2018 = Downtown y y m ,fAREA DEVELOPMENT PLAN J y ias2 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL The Downtown Corpus Christi Study Area City of Corpus Christi Nueces County, Texas October,2014 Conducted by ZIMMERMANNOLK ASSOCIATES,INC. P.O.Box 4907 Clinton,New Jersey 08809 E EXHIBIT B ZIMMERMANNOLK ASSOCIATES, INC. P.O.Box 4907 Clinton,New Jersey 08809 908 735-6336 www.ZVA.cc•info@ZVA.cc Research&Strategic Analysis STUDY CONTENTS An Analysis of Residential Market Potential 1 Introduction 1 Citywide Market Potential 3 Market Potential for the Downtown Corpus Christi Study Area 4 Table 1: Annual Market Potential 6 Target Market Analysis 7 Table 2: Downtown Residential Mix By Household Type 10 The Current Context 11 Multi-Family For-Rent— 11 Table 3: Summary of Selected Rental Properties 15 Multi-Family and Single-Family Attached For-Sale— 21 Table 4: Summary of Selected For-Sale Multi-Family and Single-Family Attached Properties and Listings: Units Priced at$200,000 or More 22 —Single-Family Detached For-Sale— 25 Table 5: Summary of Selected For-Sale Single-Family Detached Properties 26 Market-Rate Rent and Price Ranges: The Downtown Corpus Christi Study Area 29 —Rental Distribution— 29 Table 6: Target Groups For New Multi-Family For-Rent 30 —For-Sale Distribution— 31 Table 7: Target Groups For New Multi-Family For-Sale Units 32 Table 8: Target Groups For New Single-Family Attached For-Sale Units 33 Table 9: Optimum Market Position: 1,850 New Market-Rate Dwelling Units 38 Downtown Study Area Absorption Projections 41 Study Area Building and Unit Types 43 Methodology 55 Assumptions and Limitations 66 Rights and Study Ownership 67 EXHIBIT B ZIMMERMANNOLK ASSOCIATES, INC. P.O.Box 4907 Clinton,New Jersey 08809 908 735-6336 www.ZVA.cc•info@ZVA.cc Research&Strategic Analysis AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 INTRODUCTION The purpose of this study is to identify the market potential for newly-introduced market-rate multi- family and single-family attached housing units that could be leased or sold in the Downtown Corpus Christi Study Area. The Study Area includes the Corpus Christi zip codes of 78401 and 78402, encompassing the traditional downtown and the SEA district, as well as Washington Coles, Uptown, and North Beach. The depth and breadth of the potential market have been determined using Zimmerman/Volk Associates' proprietary target market methodology. The target market methodology is particularly effective in defining housing potential because it encompasses not only basic demographic characteristics, such as income qualification and age, but also less-frequently analyzed attributes such as mobility rates, lifestyle patterns and household compatibility issues. The remarkable transformation of American households (particularly the emerging predominance of one- and two-person households) over the past decade, combined with steadily increasing traffic congestion and unstable gasoline prices, has resulted in significant changes in neighborhood and housing preferences, with major shifts from predominantly single-family detached houses in lower- density, auto-oriented suburbs to a diverse mix of detached houses, attached houses and higher- density apartments in downtowns and walkable, mixed-use traditional neighborhoods. This fundamental transformation of American households is likely to continue for at least the next decade, representing an unprecedented demographic foundation on which cities can re-build their downtowns and in-town neighborhoods. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 2 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 For this analysis, Zimmerman/Volk Associates examined the following: • Where the potential renters and buyers for new and existing housing units in the City of Corpus Christi and the Downtown Study Area are likely to move from (the draw areas); • How many have the potential to move to the Downtown Study Area if appropriate housing units were to be made available (depth and breadth of the market); • What their housing preferences are in aggregate (rental or ownership, multi-family or single-family); • Who is the potential market for new housing in the Downtown Study Area (the target markets); • What their alternatives are (new construction or adaptive re-use of existing buildings in the Corpus Christi market area); • What they will pay to live in the Downtown Study Area (market-rate rents and prices); and • How quickly they will rent or purchase the new units (market capture/absorption forecasts over the next five years). The target market methodology is described in detail in the METHODOLOGY section at the end of this study. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 3 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 CITY-WIDE MARKET POTENTIAL Analysis of migration, mobility, socio-economic and lifestyle characteristics of households currently living within defined draw areas is integral to the determination of the depth and breadth of the potential market for new and existing housing units within the City of Corpus Christi. Historically, American households, more than any other nation's, have been extraordinarily mobile. In general, household mobility is higher in urban areas; a greater percentage of renters move than owners; and a greater percentage of younger households move than older households. Nationally, one result of the Great Recession has been a considerable reduction in household mobility. However, the City of Corpus Christi, where an average 18 percent of households moved every year in recent years, has a considerably higher mobility rate than the national average. An understanding of these mobility trends, as well as analysis of the socio-economic and lifestyle characteristics of households currently living within defined draw areas, is integral to the determination of the depth and breadth of the potential market for housing units within a given area. The draw areas are derived primarily through migration analysis (using the latest data provided by the Internal Revenue Service, and supplemented by the most recent American Community Survey data), but also incorporate information obtained from real estate brokers, sales and leasing agents and other knowledgeable sources, as well as from field investigation. As derived from migration analysis then—based on the most recent taxpayer records from the Internal Revenue Service—the draw area distribution of the potential housing market (those households likely to move both within and to the City of Corpus Christi) would be as follows (see also the METHODOLOGY section at the end of this document): Market Potential by Draw Area City of Corpus Christi, Nueces County, Texas City of Corpus Christi: 61.2% Balance of Nueces County: 5.6% San Patricio,Bexar,Harris,Kleberg, and Jim Wells Counties: 8.3% Balance of US: 24.9% Total: 100.0% SOURCE:Zimmerman/Volk Associates,Inc.,2014. ZIMMERMAN/VOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 4 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 MARKET POTENTIAL FOR THE DOWNTOWN CORPUS CHRISTI STUDY AREA The target market methodology also identifies those households that prefer living in downtowns and other urban neighborhoods. After discounting for those segments of the city's potential market that typically choose more suburban, exurban and/or rural locations, and including only households in target market groups with annual incomes above $70,000 (those households with the ability to rent or purchase new market-rate dwelling units), the distribution of draw area market potential for newly-created housing units within the Downtown Study Area would be as follows (see also Appendix One, Table 9): Market Potential by Draw Area DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas City of Corpus Christi: 60.8% Balance of Nueces County: 1.0% San Patricio,Bexar,Harris,Kleberg, and Jim Wells Counties: 6.6% Balance of US: 31.6% Total: 100.0% SOURCE:Zimmerman/Volk Associates,Inc.,2014. As determined by the target market methodology, an annual average of over 3,400 younger singles and couples, empty nesters and retirees and compact families, represent the potential market for new housing units within the Downtown Corpus Christi Study Area (see again Appendix One, Table 9). To create the appropriate densities in the Downtown, residential development in the Study Area should concentrate on the development of higher-density housing types including: • Rental lofts and apartments (multi-family for-rent); • For-sale lofts and apartments (multi-family for-sale); and • Townhouses, rowhouses, live-work or flex units (single-family attached for-sale). Excluding households with preferences for single-family detached units, then, an annual average of 2,785 households currently living in the defined draw areas represent the pool of potential renters/buyers of new housing within the Downtown Study Area each year over the next five years (see Table 1). This number represents less than 12 percent of the city-wide annual market potential of 23,745 households. ZIMMERMAN/VOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 5 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Based on the tenure and housing preferences of those 2,785 draw area households, the distribution of rental and for-sale multi-family and for-sale single-family attached housing types would be as shown on the following table: Annual Potential Market for New Housing Units Higher-Density Housing Units DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas NUMBER OF PERCENT HOUSING TYPE HOUSEHOLDS OF TOTAL Rental Multi-Family 1,480 53.1% (lofts/apartments,leaseholder) For-Sale Multi-Family 715 25.7% (lofts/apartments,condo/co-op ownership) For-Sale Single-Family Attached 590 21.2% (townhouses/rowhouses,fee-simple ownership) Total 2,785 100.0% SOURCE:Zimmerman/Volk Associates,Inc.,2014. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B Table 1 Annual Market Potential Derived From New Unit Purchase And Rental Propensities Of Draw Area Households With The Potential To Move To The Downtown Corpus Christi Study Area Each Year Over The Next Five Years Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas City of Corpus Christi,Balance of Nueces County,Regional Draw Area,Balance of the U.S. Draw Areas Total Target Market Households With Potential To Rent/Purchase In The City of Corpus Christi,Nueces County,Texas 23,645 Total Target Market Households With Potential To Rent/Purchase In The Downtown Corpus Christi Study Area 2,785 Annual Market Potential Multi- Single- . . . . . .Family. . . . . . . . .Family. . . . .Attached. . For-Rent For-Sale All Ranges Total Total Households: 1,480 715 590 2,785 (Mix Distribution}: 53.1% 25.7% 21.2% 100.0% NOTE: Reference Appendix One,Tables 1 Through 11. SOURCE: The Nielsen Company; Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 7 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 TARGET MARKET ANALYSIS As determined by the target market analysis, the annual potential market—represented by lifestage— for new housing units in the Downtown Corpus Christi Study Area can be characterized by general unit type as shown on the following table (see also Table 2): Downtown Residential Mix By Household Type DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas PERCENT RENTAL FOR-SALE FOR-SALE HOUSEHOLD TYPE OF TOTAL MULTI-FAM. MULTI-FAM. SF ATT. Empty-Nesters&Retirees 19% 13% 29% 22% Traditional& Non-Traditional Families 13% 11% 7% 23% Younger Singles&Couples 68% 76% 64% 55% Total 100% 100% 100% 100% SOURCE:Zimmerman/Volk Associates,Inc.,2014. At 68 percent, younger singles and couples make up by far the largest share of the market for new housing in the Downtown Study Area. Among the principal factors in the larger share of the market held by younger households are: • Their higher mobility rates—young people tend to move much more frequently than older people; • Their strong preference for urban living, particularly lofts; • Their preference for rental units, resulting from their negative experiences during the recent housing recession; • The reduced mobility of older singles and couples because of their inability, or reluctance, to sell their existing units; and • The fact that, outside of cities like New York, Chicago, or San Francisco, downtown dwelling units are rarely the choice of traditional families, in large part because of concerns about school quality and the lack of private outdoor space in which their children can play unsupervised. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 8 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 This younger market includes a variety of white-collar professionals—the VIPs, Upscale Suburban Couples and Fast-Track Professionals; young entrepreneurs, artists, and "knowledge workers"—the Entrepreneurs, e-Types, and New Bohemians; as well as recent college graduates—Twentysomethings;. Approximately half of the younger single and two-person households would be moving to the Downtown Study Area from elsewhere in the city, 10 percent from the regional draw area, and the remaining 40 percent from elsewhere in Texas or the country. Older singles and couples (empty nesters and retirees) comprise 19 percent of the potential market for new Downtown Study Area housing units, approximately 52 percent of whom are currently living in other Corpus Christi neighborhoods. Empty nesters and retirees—ranging from the most affluent Old Money and Urban Establishment households, to the upper-middle-income Small-Town Establishment, Cosmopolitan Elite, Suburban Establishment, Affluent Empty Nesters, New Empty Nesters, and Cosmopolitan Couples, to the middle- income Middle-Class Move-Downs, Mainstream Retirees, and No-Nest Suburbanites—represent a smaller than typical potential market for new housing units in the Study Area; the collapse of the ownership housing market in 2007-2008 has had a significant impact on this market segment, as a larger number of older households are choosing not to move. At 13 percent, the third general market segment—family-oriented households (traditional and non- traditional families)—includes just three target household groups: Unibox Transferees, Full-Nest Suburbanites, and Full-Nest Urbanites. More than 30 percent of the traditional and non-traditional family households that represent the potential market for new housing units in the Downtown Study Area will be moving from outside Corpus Christi or Nueces County. Depending on housing type, family-oriented households, many of whom are compact families or single parents with one or two children, will comprise between seven percent (for-sale multi-family units) and 23 percent (for-sale single-family attached units) of the market for new housing units within the Downtown Study Area. In 2014, the primary target groups, their estimated median incomes, and estimated median home values, if owned, are: ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 9 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Primary Target Groups (In Order of Median Income) DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas HOUSEHOLD MEDIAN MEDIAN HOME TYPE INCOME VALUE(IF OWNED Empty Nesters&Retirees Old Money $155,100 $306,200 Urban Establishment $124,000 $301,000 Small-Town Establishment $111,700 $195,800 Cosmopolitan Elite $110,200 $174,500 Suburban Establishment $100,500 $163,100 Affluent Empty Nesters $99,100 $173,400 New Empty Nesters $98,000 $135,800 Cosmopolitan Couples $81,000 $168,400 Middle-Class Move-Downs $73,000 $109,200 Mainstream Retirees $72,400 $127,400 No-Nest Suburbanites $70,500 $101,900 Traditional&Non-Traditional Families Unibox Transferees $118,800 $161,100 Full-Nest Suburbanites $100,100 $131,800 Full-Nest Urbanites $79,800 $158,500 Younger Singles&Couples The Entrepreneurs $143,400 $241,400 e-Types $125,600 $289,800 The VIPs $104,200 $166,000 Fast-Track Professionals $103,800 $183,200 Upscale Suburban Couples $94,600 $140,700 New Bohemians $78,600 $244,700 Twemysomethings $72,400 $117,600 NOTE: The names and descriptions of the market groups summarize each group's tendencies-as determined through geo-demographic cluster analysis-rather than their absolute composition. Hence, every group could contain "anomalous" households, such as empty-nester households within a"full-nest"category. SOURCE:Zimmerman/Volk Associates,Inc.,2014. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B Table 2 Downtown Residential Mix By Household Type Derived From New Unit Purchase And Rental Propensities Of Draw Area Households With The Potential To Move To The Downtown Corpus Christi Study Area Each Year Over The Next Five Years Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas Multi- Single- . . . . . .Family. . . . . . . . .Family. . . . .Attached. . Total For-Rent For-Sale All Ranges Number of Households: 2,785 1,480 715 590 Empty Nesters &Retirees 19% 13% 29% 22% Traditional& Non-Traditional Families 13% 11% 7% 23% Younger Singles&Couples 68% 76% 64% 55% 100% 100% 100% 100% SOURCE: The Nielsen Company; Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 11 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 THE CURRENT CONTEXT Multi-Family For-Rent— Thirty-four rental properties located within the Corpus Christi city limits have been included in the rental survey. (See also Table 3 at the end of this section.) Five of the 34 properties are located in the Downtown Study Area. Phase One of Bay Vista Apartments, a 169-unit property located on the southern edge of the Study Area, is leasing one-bedroom/one-bath units from $1,035 to $1,535 per month for 697 to 940 square feet of living space ($1.48 to $1.63 per square foot); and two-bedroom/two-bath apartments containing 1,059 to 1,270 square feet ranging between $1,410 and $2,185 per month ($1.33 to $1.72 per square foot). Amenities at Bay Vista include clubhouse, business center, conference center, fitness center, and pool. Phase Two, the 164-unit Bay Vista Pointe Apartments, the newest community in the Downtown Study Area, is now leasing, with rents at $1,035 to $1,340 per month for 616- to 905-square-foot one-bedroom, one-bath apartments ($1.48 to $1.68 per square foot) and with two-bedroom, two- bath units leasing for $1,475 to $2,135 per month for 1,057 to 1,247 square feet of living space ($1.40 to $1.71 per square foot). In addition to a fitness center, conference center, and business center, property amenities include an internet cafe, a swimming pool, and waterfall. Nueces Lofts, the redevelopment of the former Sherman building, is leasing 64 studios, one- and two-bedroom loft apartments. Rents for 556- to 786-square-foot studios range between $790 to $1,025 per month (between $1.30 and $1.42 per square foot); one-bedroom/one-bath lofts lease for $950 to $1,200 per month for 663 to 763 square feet of living space ($1.43 to $1.57 per square foot) and two-bedroom/two-bath 916- to 1,161-square-foot units rent for $1,300 to $1,650 per month ($1.42 per square foot). Nueces Lofts provides a fitness center for its residents. Retama Vista Apartments is currently the smallest Downtown property, with just 16 units. Rents start at $710 per month for a 592-square-foot one-bedroom/one-bath apartment and go as high as $1,220 per month for a two-bedroom/one-bath unit containing 1,023 square feet of living space ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 12 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 ($1.19 to $1.43 per square foot). Property amenities include a rooftop balcony and basketball courts. The oldest property is the Princess Apartments, which contains 59 studios and one- and two- bedroom units. Monthly rents range between $600 for a 375-square-foot studio to $775 per month for an 825-square-foot two-bedroom unit with one bath. One-bedroom/one-bath apartments contain 500 square feet and lease for $650 per month. The property-wide rent per square foot ranges between $0.94 and $1.60. A swimming pool is available for the use of the tenants. Site work and building construction has already begun on the Cosmopolitan, a redevelopment of the site of the former Lichtenstein building. The five-story building will contain 165 apartments on the upper four floors with retail spaces on the ground floor. The property is expected to begin leasing at the end of the year, with occupancies scheduled for the spring of 2015. Outside of Downtown, most of the other rental properties are located in the South Side. Six properties included in the survey are located in Central City/Bayside, one of which, Aspen Heights, is income-restricted. —One-Bedroom Units— • Rents for one-bedroom units start at $645 per month at Alameda Apartments, located on South Alameda Street. • The highest one-bedroom rent is $1,650 per month at The Villas of Ocean Drive, a new property that recently opened and is still in lease-up. • One-bedroom units range in size from 504 square feet to just over 900 square feet. • One-bedroom rents per square foot fall between $1.00 and $2.19. —Two-Bedroom Units— • Rents for two-bedroom units start at $805 per month at Alameda Apartments. • The highest two-bedroom rent is $3,000 per month at The Villas of Ocean Drive. • Two-bedroom units range in size from 909 square feet to 1,383 square feet. • Two-bedroom rents per square foot fall between $0.77 and $2.34. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 13 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 —Three-Bedroom Units— • Rents for three-bedroom units start at $975 per month at Alameda Apartments. • The highest three-bedroom rent is $1,889 per month at Camden South Bay on Ennis Joslin Road. • Three-bedroom units range in size from 1,100 square feet to 1,827 square feet. • Three-bedroom rents per square foot fall between $0.89 and $1.45. Eighteen properties included in the survey are located in the South Side, one of which, South Pointe Apartments, is income-restricted. Only two of the 18 Valhalla Apartments, built in 1978 on Everhart Road, and the newly-constructed Springs at Corpus Christi on Timbergate—lease studio apartments. The Valhalla studios rent for $550 to $575 per month for 550 to 575 square feet ($1.00 to $1.04), and those at the Springs are renting for $885 to $914 per month for 525 to 623 square feet ($1.47 to $1.69). —One-Bedroom Units— • Rents for one-bedroom units start at $650 per month at Lipes Apartments, located on Cimarron Boulevard, and Candlewood Apartments on Airline Road. • The highest one-bedroom rent is $1,260 per month at San Marin on South Staples Street. • One-bedroom units range in size from 501 square feet to 921 square feet. • One-bedroom rents per square foot fall between $0.98 and $1.74. —Two-Bedroom Units— • Rents for two-bedroom units start at $765 per month at Candlewood Apartments. • The highest two-bedroom rent is $2,363 per month at San Marin. • Two-bedroom units range in size from 795 square feet to 1,186 square feet. • Two-bedroom rents per square foot fall between $0.87 and $2.54. —Three-Bedroom Units— • Rents for three-bedroom units start at $1,089 per month at Walnut Ridge on South Staples Street. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 14 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 • The highest three-bedroom rent is $1,843 per month at The Springs at Corpus Christi. • Three-bedroom units range in size from 1,088 square feet to 1,399 square feet. • Three-bedroom rents per square foot fall between $0.84 and $1.49. Three properties included in the survey are located in Flour Bluff/Padre Island. Only one—Water's Edge on South Padre Island Drive—leases three-bedroom apartments. These units have rents of $1,095 per month for 1,038 square feet ($1.05 per square foot). —One-Bedroom Units— • Rents for one-bedroom units start at $690 per month at Bay Club, located on South Padre Island Drive. • The highest one-bedroom rent is $1,080 per month at Compass Bay Apartments on Compass Street. • One-bedroom units range in size from 667 square feet to 836 square feet. • One-bedroom rents per square foot fall between $1.00 and $1.51. —Two-Bedroom Units— • Rents for two-bedroom units start at $810 per month at Bay Club. • The highest two-bedroom rent is $1,405 per month at Compass Bay. • Two-bedroom units range in size from 856 square feet to 1,062 square feet. • Two-bedroom rents per square foot fall between $0.93 and $1.32. Two properties included in the survey are located in the West Side—Peachtree Apartments, built in the 1970s on Peachtree Street, and Christy Estates on Holly Road. Peachtree rents range between $525 to $1,000 per month for 394-square-foot studios to 1,122-square-foot two-bedroom townhouses ($0.86 to $1.33). Units at Christy Estates are renting for $665 to $1,270 per month for 740-square-foot one-bedrooms to 1,500-square-foot three-bedroom townhouses ($0.73 to $0.95). Excluding those properties which have recently opened and are still in the lease-up phase, nearly all of the rental communities in the survey are at functional full occupancy (occupancy rates at 95 percent or higher). ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B Table 3 Page 1 of 6 Summary Of Selected Rental Properties The City of Corpus Christi,Nueces County, Texas August 2014 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq.Ft. Amenities Address . . . . . Downtown. . . . . The Princess Apartments 59 Studio/1ba $600 375 $1.60 Pool, 1001 N. Water Street 1br/1ba $650 500 $1.30 laundry facility. 2br/1ba $775 825 $0.94 Retama Vista Apts(2004) 16 1br/1ba $710 to 592 to $1.20 to Rooftop balcony, 425 Schatzell Street $1,225 856 $1.43 basketball courts, 2br/1ba $1,210 to 1,010 to $1.19 to laundry facility. $1,220 1,023 $1.20 Nueces Lofts (2009) 64 Studio/1ba $790 to 556 to $1.30 to Fitness center, (formerly the Sherman Building) $1,025 786 $1.42 laundry facility. 317 Peoples Street 1br/1ba $950 to 663 to $1.43 to $1,200 763 $1.57 2br/2ba $1,300 to 916 to $1.42 to $1,650 1,161 $1.42 Bay Vista Pointe(2014) 164 1br/1ba $1,035 to 616 to $1.48 to Pool,waterfall, 802 S. Carancahua $1,340 905 $1.68 fitness center, 2br/2ba $1,475 to 1,057 to $1.40 to conference center, $2,135 1,247 $1.71 internet cafe, business center. Bay Vista(2008) 169 1br/1ba $1,035 to 697 to $1.48 to Clubhouse, 522 Hancock $1,535 940 $1.63 business center, 2br/2ba $1,410 to 1,059 to $1.33 to conference room, $2,185 1,270 $1.72 fitness center,pool. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 3 Page 2 of 6 Summary Of Selected Rental Properties The City of Corpus Christi,Nueces County, Texas August 2014 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq.Ft. Amenities Address . . . . . Central CitylBay Area. . . . . Alameda Apts (2005) 62 1br/1ba $645 to 504 to $1.00 to Swimming pool, 4422 South Alameda Street $725 726 $1.28 BBQ grills& 2br/1ba $805 936 $0.86 laundry facility. 2br/2ba $845 1,100 $0.77 3br/2ba $975 1,100 $0.89 Aspen Heights (2014) 153 2br/2.5ba $779 to 1,468 to $0.53 to Fitness center, 4855 South Alameda Street TH $814 1,490 $0.55 pool, Income-Restricted 3br/3.5ba $699 to 1,827 $0.38 to computer lab,volleyball, TH $734 $0.40 movie theater, 4br/4.5ba $689 to 1,967 to $0.35 to study lounge& SFD $714 1,969 $0.36 tanning beds. 5br/5.5ba $679 to 2,299 to $0.30 to SFD $714 2,343 $0.30 Baypoint Resort Apartments 350 1br/1ba $871 to 675 to $1.29 to Yoga, massage therapy, (1998;2004) $1,126 822 $1.37 fitness center, 1802 Ennis Joslin Road 2br/1ba $1,061 to 909 $1.17 to clubhouse,pools, $1,161 $1.28 hot tub,BBQ pit, 2br/2ba $1,181 to 928 to $1.26 to cappuccino machine, $1,741 1,383 $1.27 walking trail,pet park, 3br/2ba $1,571 to 1,385 $1.13 to putting green& $1,821 $1.31 multi-sport court. The Villas of Ocean Drive 180 1br/1ba $875 to 580 to $1.51 to Clubhouse, (2014) $1,650 753 $2.19 fitness center, 4657 Ocean Drive 2br/2ba $1,570 to 1,069 to $1.47 to playground, $3,000 1,282 $2.34 waterfall& 3br/2ba $1,655 to 1,247 $1.33 to pool. $1,805 $1.45 Camden South Bay(2007) 270 1br/1ba $959 to 642 to $1.13 to Basketball court, 1701 Ennis Joslin Road $1,019 902 $1.49 billiards,sand volleyball, 2br/2ba $1,339 to 1,170 to $1.06 to business&fitness $1,379 1,297 $1.14 centers,pool, 3br/2ba $1,689 to 1,428 to $1.18 to BBQ/Picnic area. $1,889 1,570 $1.20 La Joya Bay Resort 336 1br/1ba $1,070 to 712 to $1.50 to Basketball courts, 1514 Ennis Joslin Road $1,485 878 $1.69 business center, 2br/2ba $1,290 to 1,119 to $1.15 to clubhouse,pool, $1,730 1,226 $1.41 fitness center,pet park. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 3 Page 3 of 6 Summary Of Selected Rental Properties The City of Corpus Christi,Nueces County, Texas August 2014 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq.Ft. Amenities Address . . . . . South Side. . . . . South Pointe Apts(1999) n/a 2br/2ba $539 to 990 $0.54 to Children's play area, 5725 Curtis Clark Drive $662 $0.67 swimming pool, Income-Restricted 3br/2ba $625 to 1,189 $0.53 to clubhouse,laundry $727 $0.61 facility. Valhalla Apts (1978) 165 Studio/1ba $550 to 550 to $1.00 to Clubhouse,fitness 6730 Everhart Road $575 555 $1.04 center,hot tub,pool, 1br/1ba $675 721 $0.94 &tennis court. 2br/1ba $790 910 $0.87 2br/2ba $825 855 $0.96 Lipes Apts (2003) 170 1br/1ba $650 to 650 $1.00 to Clubhouse, 3701 Cimarron Boulevard $700 $1.08 swimming pool& 2br/1ba $800 to 820 $0.98 to laundry facility. $850 $1.04 3br/2ba $1,150 to 1,334 $0.86 to $1,200 $0.90 Candlewood 288 1br/1ba $650 to 501 $1.30 to 2 pools, 2002 Airline Road $775 $1.55 tennis, 1br/1ba TH $700 to 714 $0.98 to basketball courts, $830 $1.16 clothing care centers, 2br/1ba $765 to 795 $0.96 to BBQ/Picnic area. $910 $1.14 2br/2ba $824 to 907 $0.91 to $964 $1.06 3br/2ba $1,210 to 1,088 $1.11 to $1,425 $1.31 Walnut Ridge 704 1br/1ba $679 to 580 to $1.08 to Fitness center, (1981;2000) $759 700 $1.17 6 swimming pools, 5757 South Staples Street 2br/1.5ba $819 to 830 to $0.99 to tennis courts, $839 855 $1.01 laundry facilities, 2br/2ba $839 to 874 to $0.96 to racquetball courts, $899 939 $1.03 &free tanning salon 3br/2ba $1,089 1,133 $0.96 Chandler's Mill Apts. 248 1br/1ba $687 to 524 to $1.28 to Residents'lounge, 6350 Meadowvista Drive $975 763 $1.31 pool,whirlpool, 2br/2ba $1,028 to 935 to $1.10 to fitness center. $1,308 1,035 $1.26 SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 3 Page 4 of 6 Summary Of Selected Rental Properties The City of Corpus Christi,Nueces County, Texas August 2014 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq.Ft. Amenities Address . . . . . South Side[continued]. . . . . Crosswinds (1999) 176 1br/1ba $725 580 $1.25 Fitness center, 6617 Weber Road 2br/1ba $895 813 $1.10 swimming pool& 2br/2ba $985 to 914 to $1.02 to laundry facility. $995 977 $1.08 3br/2ba $1,225 1,103 to $1.08 to 1,139 $1.11 Towne Oaks 185 1br/1ba $734 to 746 $0.98 to Pool,sundeck. 6310 South Padre Island Drive $809 $1.08 2br/1ba $879 to 996 $0.88 to $959 $0.96 2br/2ba $909 to 1,050 to $0.87 to $1,129 1,094 $1.03 3br/2ba $1,094 to 1,297 $0.84 to $1,219 $0.94 Camden Copper Ridge(1986) 344 1br/1ba $739 to 543 to $1.11 to Pool,sand 6635 South Staples Street $859 773 $1.36 volleyball, 2br/2ba $1,109 to 998 to $1.11 to laundry facility, $1,149 1,034 $1.11 BBQ/Picnic area. Stoneleigh Corpus Christi 348 1br/1ba $765 to 482 to $1.25 to Business center, (2005) $950 760 $1.59 grill&picnic area, 5750 Curtis Clark Drive 2br/2ba $1,086 to 916 to $1.13 to fitness center,pool, $1,162 1,030 $1.19 laundry facilities. San Marin(1997) 220 1br/1ba $800 to 724 $1.10 to Clothes care center, 7221 South Staples Street $1,260 $1.74 internet cafe, 2br/2ba $900 to 931 $0.97 to pool&sundeck. $2,363 $2.54 3br/2ba $1,305 to 1,156 $1.13 to $1,720 $1.49 Arbors on Saratoga 252 1br/1ba $878 to 760 to $1.14 to Residents lounge, 6225 Saratoga Boulevard $920 808 $1.16 pool,sundeck, 2br/2ba $1,012 to 955 to $0.95 to fitness center, $1,098 1,161 $1.06 business center, 3br/2ba $1,243 to 1,151 to $1.00 to basketball courts. $1,385 1,382 $1.08 SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 3 Page 5 of 6 Summary Of Selected Rental Properties The City of Corpus Christi,Nueces County, Texas August 2014 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq.Ft. Amenities Address . . . . . South Side tcontinued}. . . . . Springs at Corpus Christi 284 Studio/1ba $885 to 525 to $1.47 to Clubhouse,pool, (2014) $914 623 $1.69 fitness center, 5702 Timbergate 1br/1ba $1,129 to 857 to $1.32 to coffee bar, $1,211 909 $1.33 car care area, 2br/2ba $1,429 to 1,062 to $1.28 to dog park. $1,519 1,186 $1.35 3br/2ba $1,801 to 1,302 to $1.32 to $1,843 1,399 $1.38 Gulf Breeze Apts. 200 1br/1ba $900 706 $1.27 Business center, 6533 Patti Drive 2br/1ba $1,035 to 899 $1.15 to fitness center, $1,085 $1.21 playground, 2br/2ba $1,118 to 954 to $1.16 to pool. $1,174 1,011 $1.17 3br/2ba $1,317 to 1,168 to $1.10 to $1,349 1,229 $1.13 Island Villa Apartments n/a 1br/1ba $900 to 842 to $1.07 to Clubhouse, 1641 Nile Drive $1,040 921 $1.13 business center, 2br/2ba $1,100 to 1,025 to $1.07 to fitness center,pool, $1,340 1,181 $1.13 gazebolgrilling area. 3br/2ba $1,400 to 1,293 $1.08 to $1,440 $1.11 Encore Crossings (2009) 200 1br/1ba $909 to 824 to $1.10 to Pool wlaquatic lounge, 2133 Nodding Pines $1,025 853 $1.24 poolside grilling station, 2br/2ba $1,124 to 1,033 to $1.09 to conferencelstudy center, $1,254 1,060 $1.21 cyber cafe,fitness center. Tuscana Bay(2014) 228 1br/1ba $929 to 789 to $1.13 to BBQ/Picnic area, 2921 Airline Road $969 856 $1.18 business center, 1br/1ba w/attached garage $1,109 860 $1.29 clubhouse,dog park, 2br/2ba $1,199 to 1,050 to $1.13 to fitness center, $1,249 1,108 $1.14 pool&sundeck. 2br/2ba w/attached garage $1,401 1,176 $1.19 Camden Breakers (1995) 288 1br/1ba $979 to 651 to $1.49 to Basketball court, 4901 Saratoga Boulevard $1,129 757 $1.50 business center, 2br/2ba $1,179 to 876 to $1.22 to fitness center, $1,269 1,037 $1.35 pool, 3br/2ba $1,739 1,226 $1.42 BBQ/Picnic area. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 3 Page 6 of 6 Summary Of Selected Rental Properties The City of Corpus Christi,Nueces County, Texas August 2014 Number Unit Reported Reported Rent per Property (Date Opened) of Units Type Base Rent Unit Size Sq.Ft. Amenities Address . . . . .Flour BlufflPadre Island. . . . . Bay Club 248 1br/1ba $690 to 667 $1.03 to Pool, 9350 S.Padre Island Drive $800 $1.20 tennis courts, 2br/1ba $810 to 856 $0.95 to playground, $970 $1.13 basketball courts. 2br/2ba $840 to 900 $0.93 to $1,000 $1.11 Water's Edge 250 1br/1ba $714 714 $1.00 Two pools, 9320 S.Padre Island Drive 1br/1.5ba TH $760 714 $1.06 fitness center, 2br/1ba $865 860 $1.01 tennis courts. 2br/2ba $925 924 $1.00 3br/2ba $1,095 1,038 $1.05 Compass Bay Apts(2004) 82 1br/1ba $1,005 to 667 to $1.29 to Fitness center, 14501 Compass Street $1,080 836 $1.51 picnic area,pool, 2br/2ba $1,295 to 1,018 to $1.27 to sundeck BBQ grills, $1,405 1,062 $1.32 heated pool,boat slips. . . . . . West Side. . . . . Peachtree (1970s) 230 Studio/1ba $525 394 $1.33 Clubhouse,pool. 3150 Peachtree Street 1br/1ba $695 to 623 to $1.12 $750 672 $1.12 2br/2ba $835 to 885 to $0.86 to $895 1,042 $0.94 2br/2.5ba TH $1,000 1,122 $0.89 3br/2ba $975 1,059 $0.92 Christy Estates 262 1br/1ba $665 to 740 to $0.90 to Pool. 3942 Holly Road $745 820 $0.91 2br/1ba $765 to 900 to $0.85 to $905 1,000 $0.91 2br/1.5ba TH $880 to 1,200 $0.73 to $905 $0.75 3br/2ba $1,085 to 1,200 $0.90 to $1,135 $0.95 3br/2.5ba TH $1,245 to 1,500 $0.83 to $1,270 $0.85 SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 21 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Multi-Family and Single-Family Attached For-Sale— Two newly-constructed townhouse properties are currently being marketed in the Corpus Christi market area. Padre Beach View is a 30-unit property located on Beach View Drive. The 1,300- square-foot three bedroom townhouses are priced at $249,900 ($192 per square foot). The Cottage House at Padre Beach on Granada Drive is marketing four-bedroom townhouses priced between $284,900 and $529,000 for 1,852 and 2,475 square feet of living space ($154 to $214 per square foot). (See also Table 4 at the end of this section.) All of the non-water-oriented condominiums and townhouses on the market at the time of the survey in September 2014 are resales at three properties: Cliff House and Atlantic Lofts in Downtown Corpus Christi, and Country Club Townhouses, in close proximity to the Corpus Christi Country Club. The weighted average price of the non-water-oriented units on the market is $302,369 for an average unit size of just over 2,000 square feet ($151 per square foot). Two units are for sale at the high-rise Cliff House on South Upper Broadway Street—a 2,300- square-foot two-bedroom condominium listed for $799,900 ($346 per square foot) and a 1,400- square-foot two-bedroom on a lower floor for $279,000 ($201 per square foot). At Atlantic Lofts, on North Upper Broadway Street, four units are listed ranging in price from $275,000 to $349,500. All but one are two-bedroom units, ranging in size from approximately 1,800 to over 2,000 square feet ($161 to $178 per square foot); the one-bedroom unit contains 1,550 square feet ($177 per square foot). Seven two- and three-bedroom units are on the market at the Country Club townhouses. The asking prices range from $205,000 to $242,000, with units ranging in size from just under 1,900 to 2,550 square feet. The resale price per square foot ranges between $89 and $127. Multiple water-oriented condominiums and townhouses priced above $200,000 were listed in September, 2014. A 1,552-square-foot three-bedroom condominium at Admirals Court is priced at $203,900; the highest price is $745,200 for a 1,983-square-foot two-bedroom unit at Twin Dolphins ($131 to $376 per square foot). The weighted average price of all water-oriented units on the market is $288,166 for an average unit size of just under 1,500 square feet ($193 per square foot). ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B Table 4 Page 1 of 3 Summary Of Selected For-Sale Multi-Family And Single-Family Attached Properties and Listings Units Priced at$200,000 or More City of Corpus Christi,Neuces County, Texas September,2014 Housing Unit Price Per Year Development Type Type Unit Price Unit Size Sq.Ft. Built Address Padre Beach View TH 3br/2.5ba $249,900 1,300 $192 2014 15000 Beach View Drive 30 du The Cottage House at Padre Beach TH 4br/2.5ba $284,900 1,852 $154 2013 14890 Granada Drive 20 du $529,000 2,475 $214 . . . . .Non-Water-Oriented Resales. . . . . Cliff House CO 2br/2.5ba $799,900 2,309 $346 1965 Cliff House CO 2br/2.5ba $279,000 1,391 $201 1965 Atlantic Lofts CO 2br/2ba $349,500 2,013 $174 2009 Atlantic Lofts CO 2br/2ba $338,000 1,902 $178 2009 Atlantic Lofts CO 2br/2ba $290,000 1,799 $161 2009 Atlantic Lofts CO 1br/2ba $275,000 1,551 $177 2009 Country Club TH 2br/2ba $242,000 2,301 $105 1978 Country Club TH 2br/2ba $239,900 1,889 $127 1978 Country Club TH 3br/2.5ba $235,000 2,552 $92 1978 Country Club TH 3br/3ba $234,000 2,034 $115 1978 Country Club TH 3br/3ba $224,500 1,940 $116 1978 Country Club TH 3br/3ba $219,000 2,062 $106 1978 Country Club TH 3br/2.5ba $205,000 2,296 $89 1978 Weighted Averages: $302,369 2,003 $151 . . . . . Water-Oriented Resales. . . . . Twin Dolphins CO 2br/2.5ba $745,200 1,983 $376 1983 Twin Dolphins CO 2br/2ba $699,900 1983 Twin Dolphins CO 3br/2.5ba $379,900 1,988 $191 1983 Twin Dolphins CO 3br/2.5ba $299,900 1,988 $151 1983 Sea Gull CO 3br/2.5ba $509,900 1,678 $304 1982 Landmark CO 2br/2ba $460,000 1,811 $254 1983 Las Palmas TH 3br/3.5ba $389,900 2,422 $161 2007 Las Palmas TH 3br/3.5ba $340,000 2,358 $144 2007 Marina del Sol CO 3br/2ba $379,000 1,573 $241 1981 Marina del Sol CO 3br/2ba $279,900 1,730 $162 1981 Marina del Sol CO 3br/2ba $240,000 1,108 $217 1981 Marina del Sol CO 3br/2ba $225,000 1,700 $132 1981 Marina del Sol CO 3br/2ba $209,500 1,573 $133 1981 SOURCE: Multiple Listing Service; Zimmerman/Volk Associates,Inc. EXHIBIT B Table 4 Page 2 of 3 Summary Of Selected For-Sale Multi-Family And Single-Family Attached Properties and Listings Units Priced at$200,000 or More City of Corpus Christi,Neuces County, Texas September,2014 Housing Uriit Price Per Year Development Type TlIpe Unit Price Unit Size Sq.Ft. Built Address . . . . . Water-Oriented Resales[continued]. . . . . Grande Vistas Duplex 3br/2.5ba $365,000 4,392 $83 2003 Gulfstream CO 2br/2ba $349,000 949 $368 1970 Gulfstream CO 2br/2ba $310,000 949 $327 1970 Gulfstream CO 2br/2ba $299,900 949 $316 1970 Gulfstream CO 2br/2ba $279,000 949 $294 1970 Gulfstream CO 2br/2ba $275,000 949 $290 1970 Gulfstream CO 2br/2ba $259,000 949 $273 1970 Gulfstream CO 2br/2ba $239,000 949 $252 1970 Gulfstream CO 2br/2ba $230,000 949 $242 1970 Gulfstream CO 2br/2ba $229,900 949 $242 1970 Gulfstream CO 2br/2ba $225,000 949 $237 1970 Gulfstream CO 2br/2ba $219,900 949 $232 1970 Padre Island TH 4br/4.5ba $330,000 2,479 $133 2008 Padre Island TH 4br/4.5ba $312,000 1,765 $177 2014 Ports o Call TH 4br/2.5ba $315,000 2,027 $155 2002 Point Tesoro TH 3br/3.5ba $309,900 2,041 $152 2005 Seamount Cay TH 3br/2.5ba $307,223 1,831 $168 2007 Nautica TH 3br/2.5ba $299,000 1,627 $184 2007 Portofino CO 3br/3ba $289,000 1,392 $208 1974 Portofino CO 2br/2ba $250,000 1,127 $222 1974 Portofino CO 2br/2ba $240,000 1,127 $213 1974 Portofino CO 1br/1ba $230,000 834 $276 1974 Portofino CO 2br/2ba $214,900 1,406 $153 1974 Casa Viento TH 3br/2.5ba $275,000 1,948 $141 2005 Casa Viento TH 4br/2.5ba $209,500 1,948 $108 2005 El Constante CO 2br/2ba $269,900 1,060 $255 1985 El Constante CO 2br/2ba $249,900 1,060 $236 1985 El Constante CO 2br/2.5ba $249,900 1,060 $236 1985 El Constante CO 2br/2.5ba $214,900 1,060 $203 1985 Gun Cay Bay TH 3br/2.5ba $250,500 2,031 $123 2004 Gun Cay Bay TH 3br/2.5ba $242,000 1,800 $134 2004 Gun Cay Bay TH 3br/2.5ba $215,000 1,253 $172 2004 Palm Bay Village TH 3br/2.5ba $249,900 1,648 $152 2006 Vista del Rey TH 3br/3ba $249,500 1,557 $160 1999 Compass CO 3br/2ba $249,900 1,403 $178 2003 Compass CO 3br/2ba $224,500 1,403 $160 2003 SOURCE: Multiple Listing Service; Zimmerman/Volk Associates,Inc. EXHIBIT B Table 4 Page 3 of 3 Summary Of Selected For-Sale Multi-Family And Single-Family Attached Properties and Listings Units Priced at$200,000 or More City of Corpus Christi,Neuces County, Texas September,2014 Housing Unit Price Per Year Development Type Type Unit Price Unit Size Sq.Ft. Built Address . . . . . Water-Oriented Resales[continued]. . . . . Mayan Princess CO 2br/2ba $239,000 1,160 $206 1984 Mariner Cay Marina CO 3br/2ba $227,700 1,193 $191 1982 Mariner Cay Marina CO 3br/2ba $220,000 1,193 $184 1982 Salt Cay TH 3br/2.5ba $225,000 1,603 $140 1999 Beach Breezes CO 3br/2.5ba $215,000 1,732 $124 2004 Cayo Linda TH 3br/2.5ba $204,750 1,539 $133 2000 Cayo Linda TH 3br/2.5ba $203,900 1,505 $135 2000 Admirals Court CO 3br/2.5ba $203,900 1,552 $131 1985 Weighted Averages: $288,166 1,493 $193 SOURCE: Multiple Listing Service; Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 25 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 —Single-Family Detached For-Sale— The majority of the new single-family detached houses being built in Corpus Christi are located in the South Side or just outside the city limits in the south. Multiple properties in the area have recently completed new houses, which are now on the market, or have several under construction. (See also Table 5 at the end of this section.) The least expensive new houses being marketed in the South Side are Braselton Homes' Cottages at South Lake, where the base prices for the 1,100- to 1,500-square-foot cottages range between $129,900 and $179,900 ($118 to $120 per square foot). Several of the cottages are alley-loaded, although most are more conventional models. Terra Mar is a large master-planned community being developed by Hogan Homes, with several subdivisions of varying lot and house sizes and base prices. The least expensive houses are being constructed at Los Vientos at Terra Mar; these houses range in price between $199,415 and $227,625 for between 1,750 and 1,780 square feet of living space ($112 to $130 per square foot). The most expensive houses are being built at San Cristobal at Terra Mar, where a spec house is priced at $504,700 for 3,144 square feet, and another, containing 3,578 square feet, is priced at $551,900 ($154 to $161 per square foot). There are multiple smaller subdivisions in the South Side that are also building and selling spec houses, ranging from Manhattan Estates, where base prices start at $242,900, to The Coves at Lago Vista, where the most expensive house on the market is priced at $585,000. Nearly all of the spec houses contain between 2,300 and 3,000 square feet, with a general price per square foot range between $104 and $140. New single-family development is also occurring in Flour Bluff and Padre Island, and on the West Side. The most significant new residential development is being planned adjacent to the Schlitterbahn Waterpark and Resort, where a mix of single-family detached houses, multi-family units, and waterfront properties is being planned. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B Table 5 Page 1 of 3 Summary Of Selected For-Sale Single-Family Detached Properties City of Corpus Christi,Neuces County, Texas September,2014 Lot Sizel Unit Price Unit Size Price Per Total Property(Date Opened) Price Range Range Range Sq.Ft. Lots DeveloperlBuilder . . . . South Side . . . . Cottages at South Lake (2013) $129,900 to 1,100 to $118 to 105 Braselton Homes 3,200 sf $179,900 1,500 $120 Terra Mar(2008) Hogan Homes Los Vientos at Terra Mar $199,415 to 1,781 to $112 to $227,625 1,749 $130 Los Arboles at Terra Mar 5,000 sf $192,490 to 1,686 to $104 to $238,490 2,300 $114 Monte Verde at Terra Mar 6,600 sf $267,990 to 2,192 $122 8,550 sf $367,990 Entrada Del Sol 6,000 to $315,490 2,458 to $128 to 18 {Villas} 12,000 sf $369,900 2,500 $148 San Cristobal at Terra Mar 0.25 to $504,700 t 3,144 to $154 to 3+acres $551,900 3,578 $161 San Sebastian at Terra Msar 1.75 to 3+acres/ $240,000 Rancho Vista $213,900 t 2,001 $107 396 Braselton Homes 8,614 sf $229,900 t 1,801 $128 $245,430 t 2,160 $114 $289,900 t 2,369 $122 0.38 acre $319,900 t 2,655 $120 Manhattan Estates (2000) $242,900 to 2,343 to $104 to 6 listings Multiple Builders 6,720 sf $270,648 t 2,500 $108 0.17 acre $255,900 t 2,395 $107 Ranch Lake $249,000 to 2,377 to $105 to 8 listings Multiple Builders $310,000 t 2,860 $108 King's Point $259,000 to 2,487 to $104 to 6 listings Several Builders $299,000 t 2,860 $105 t Spec or model home. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 5 Page 2 of 3 Summary Of Selected For-Sale Single-Family Detached Properties City of Corpus Christi,Neuces County, Texas September,2014 Lot Sizel Unit Price Unit Size Price Per Total Property(Date Opened) Price Range Range Range Sq.Ft. Lots DeveloperlBuilder . . . . South Side {continued}. . . . Graford Place $264,900 to 2,525 $105 5 listings Multiple Builders $327,900 t 2,921 $112 Barataria Bay 0.15 acre/ $269,900 to 2,443 $110 3 specs listings K&M Homes $39,900 to $348,500 t 2,898 $120 17 lots listed $54,900 Graceland 8,000 sf $271,900 t 2,423 $112 Multiple Builders Kings Crossing 0.5 acre $499,000 t 3,652 $137 80 Multiple Builders $720,116 t 4,300 $167 The Coves at Lago Vista 0.5 to $539,000 t 4,045 $133 160 Multiple Builders 1 acre $574,900 t 3,242 $177 $585,000 t 4,175 $140 . . . .Flour Bluff and Padre Island . . . . Pine Hollow $179,900 to 1,505 to $120 to 127 Fox Home Builders $229,900 t 1,090 $211 Blue Grass Estates $229,500 to 2,125 to $108 to 9 listings Flour Bluff Pine Hollow LLC $299,900 t 2,427 $124 Point Tesoro $229,900 to 1,966 to $117 to 5 listings Multiple Builders 6,200 sf $519,900 t 2,149 $242 Commodore's Pointe 8,032 sf $650,000 t 2,300 $283 Multiple Builders t Spec or model home. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 5 Page 3 of 3 Summary Of Selected For-Sale Single-Family Detached Properties City of Corpus Christi,Neuces County, Texas September,2014 Unit Type Lot Size Unit Price Unit Size Price Per Total Property(Date Opened) Range Range Range Sq.Ft. Lots DeveloperlBuilder . . . . West Side . . . . Wood Oaks on the River 6,700 sf $247,000 t 2,137 $116 39 Multiple Builders {Phase II} London Club Estates 1+acre/ 7 listings Multiple Builders 67,500 $354,900 t 2,635 $135 $448,116 t 3,125 $143 t Spec or model home. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 29 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 MARKET-RATE RENT AND PRICE RANGES:THE DOWNTOWN CORPUS CHRISTI STUDY AREA —Rental Distribution— Based on the incomes and financial capabilities of the 1,480 households that represent the target markets for new market-rate rental units (hard and soft lofts and upscale apartments) each year over the next five years, the distribution of annual market potential by rent range would be summarized as follows (see also Table 6): Annual Market Potential For Rental Lofts/Apartments Distributed By Rent Range Households In Target Groups With Median Incomes At Or Above$70,000 DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas MONTHLY HOUSEHOLDS RENT RANGE PER YEAR PERCENTAGE $75041,000 135 9.1% $1,000—$1,250 150 10.1% $1,25041,500 260 17.6% $1,50041,750 325 22.0% $1,750—$2,000 245 16.6% $2,000—$2,250 210 14.2% $2,250 and up 155 10.4% Total: 1,480 100.0% SOURCE:Zimmerman/Volk Associates,Inc.,2014. Note: The number of households by rent range was determined by applying the calculation of a monthly rental payment, excluding utilities, totalling no more than 25 percent of the target households' annual gross incomes. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B Table 6 Target Groups For New Multi-Family For-Rent Households In Target Groups With Median Incomes At Or Above$70,000 Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas Empty Nesters Number of &Retirees Households Percent Urban Establishment 55 3.7% Small-Town Establishment 10 0.7% Cosmopolitan Elite 5 0.3% Suburban Establishment 5 0.3% Affluent Empty Nesters 5 0.3% New Empty Nesters 20 1.4% Cosmopolitan Couples 25 1.7% Middle-Class Move-Downs 30 2.0% Mainstream Retirees 5 0.3% No-Nest Suburbanites 25 1.7% Subtotal: 185 12.5% Traditional& Non-Traditional Families Unibox Transferees 15 1.0% Late-Nest Suburbanites 5 0.3% Full-Nest Suburbanites 40 2.7% Full-Nest Urbanites 110 7.4% Subtotal: 170 11.5% Younger Singles&Couples The Entrepreneurs 25 1.7% e-Types 325 22.0% The VIPs 50 3.4% Fast-Track Professionals 25 1.7% Upscale Suburban Couples 110 7.4% New Bohemians 495 33.4% Twentysomethings 95 6.4% Subtotal: 1,125 76.0% Total Households: 1,480 100.0% SOURCE: The Nielsen Company; Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 31 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 For-Sale Distribution— Based on the incomes and financial capabilities of the 715 households that represent the target markets for new market-rate for-sale multi-family units (condominium soft lofts and luxury apartments) each year over the next five years, the distribution of annual market potential by price range would be summarized as follows (see also Table 7): Annual Market Potential For For-Sale Lofts/Apartments Distributed By Price Range Households In Target Groups With Median Incomes At Or Above$70,000 DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas PRICE HOUSEHOLDS RANGE PER YEAR PERCENTAGE $150,000—$200,000 70 9.8% $200,000—$250,000 105 14.7% $250,0004300,000 140 19.6% $300,0004350,000 135 18.9% $350,000—$400,000 125 17.5% $400,000—$450,000 85 11.9% $450,000 and up 55 7.6% Total: 715 100.0% SOURCE:Zimmerman/Volk Associates,Inc.,2014. Note: For the for-sale distribution of both condominiums and townhouses, the number of households by price range was determined by assuming a down payment of 20 percent and then calculating monthly mortgage payments, including taxes and utilities, totalling no more than 30 percent of the annual gross income of the target households. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B Table 7 Target Groups For New Multi-Family For-Sale Households In Target Groups With Median Incomes At Or Above$70,000 Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas Empty Nesters Number of &Retirees Households Percentage Old Money 5 0.7% Urban Establishment 60 8.4% Small-Town Establishment 15 2.1% Cosmopolitan Elite 25 3.5% Suburban Establishment 15 2.1% Affluent Empty Nesters 10 1.4% New Empty Nesters 5 0.7% Cosmopolitan Couples 35 4.9% Middle-Class Move-Downs 15 2.1% Mainstream Retirees 5 0.7% No-Nest Suburbanites 15 2.1% Subtotal: 205 28.7% Traditional& Non-Traditional Families Unibox Transferees 5 0.7% Late-Nest Suburbanites 5 0.7% Full-Nest Suburbanites 10 1.4% Full-Nest Urbanites 30 4.2% Subtotal: 50 TO% Younger Singles&Couples The Entrepreneuers 50 TO% e-Types 125 17.5% The VIPs 50 7.0% Fast-Track Professionals 25 3.5% Upscale Suburban Couples 75 10.5% New Bohemians 95 13.3% Twentysomethings 40 5.6% Subtotal: 460 64.3% Total Households: 715 100.0% SOURCE: The Nielsen Company; Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 33 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Based on the incomes and financial capabilities of the 590 households that represent the target markets for new market-rate for-sale single-family attached units (townhouses/live-work units) each year over the next five years, the distribution of annual market potential by price range would be summarized as follows (see also Table 8): Annual Market Potential For For-Sale Townhouses/Rowhouses/Live-Work Units Distributed By Price Range Households In Target Groups With Median Incomes At Or Above$70,000 DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas PRICE HOUSEHOLDS RANGE PER YEAR PERCENTAGE $150,000—$250,000 60 10.2% $200,000—$250,000 80 13.6% $250,0004300,000 100 16.9% $300,0004350,000 115 19.4% $350,000—$400,000 90 15.3% $400,000—$450,000 80 13.6% $450,000 and up 65 11.0% Total: 590 100.0% SOURCE:Zimmerman/Volk Associates,Inc.,2014. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B Table 8 Target Groups For New Single-FamilyAttached For-Sale Households In Target Groups With Median Incomes At Or Above$70,000 Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas Empty Nesters Number of &Retirees Households Percentage Old Money 5 0.8% Urban Establishment 35 5.9% Small-Town Establishment 5 0.8% Cosmopolitan Elite 10 1.7% Suburban Establishment 10 1.77, Affluent Empty Nesters 5 0.8% New Empty Nesters 10 1.77o Cosmopolitan Couples 20 3.47o Middle-Class Move-Downs 15 2.57o No-Nest Suburbanites 15 2.57o Subtotal: 130 22.07o Traditional& Non-Traditional Families Unibox Transferees 25 4.27o Late-Nest Suburbanites 10 1.77o Full-Nest Suburbanites 25 4.27o Full-Nest Urbanites 75 12.77o Subtotal: 135 22.97o Younger Singles&Couples The Entrepreneuers 35 5.9% e-Types 85 14.47o The VIPs 30 5.17o Fast-Track Professionals 20 3.47o Upscale Suburban Couples 65 11.0% New Bohemians 70 11.970 Twentysomethings 20 3.4% Subtotal: 325 55.1% Total Households: 590 100.0% SOURCE: The Nielsen Company; Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 35 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 For purposes of this analysis, the target residential mix and optimum market position for the Downtown Study Area have been established for a total of 1,850 higher-density dwelling units, a number which could have a significant impact on the establishment of Downtown as a neighborhood. The target residential mix of 1,850 units would be derived from market preferences, as follows: Target Residential Mix-1,850 Units Higher-Density Housing Units DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas PERCENT NUMBER HOUSING TYPE OF TOTAL OF UNITS Multi-family for-rent 53.1% 983 Multi-family for-sale 25.7% 475 Single-family attached for-sale 21.2% 392 Total 100.0% 1,850 SOURCE:Zimmerman/Volk Associates,Inc.,2014. Based on projected market capture rates (see DOWNTOWN STUDY AREA ABSORPTION PROJECTIONS below), a total of 1,850 new market-rate dwelling units developed within the Downtown Study Area—in a mix of 983 rental lofts and apartments, 475 for-sale lofts and condominiums, and 392 townhouses and live-work units—could be absorbed in five to seven years. Therefore, established according to the housing preferences and the socio-economic and lifestyle characteristics of the target households, and the relevant residential context in the Corpus Christi market area, the general range of rents and prices for newly-developed market-rate residential units in the Downtown Study Area that could currently be sustained by the market is shown on the following page (see also Table 9 for greater detail: ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 36 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Rent, Price and Size Ranges DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas RENT/PRICE SIZE RENT/PRICE HOUSING TYPE RANGE RANGE PER SQ.FT. MULTI-FAMILY FOR-RENT— Hard Lofts $800—$1,500/month 500-1,100 sf $1.36—$1.60 psf Soft Lofts $750—$2,000/month 400-1,250 sf $1.60—$1.88 psf Upscale Apartments $1,350—$2,500/month 700-1,500 sf $1.67—$1.93 psf MULTI-FAMILY FOR-SALE— Hard Lofts $150,000—$225,000 800-1,300 sf $173—$188 psf Soft Lofts $185,000—$285,000 900-1,450 sf $197—$206 psf Upscale Condominiums $295,000—$425,000 1,250-1,850 sf $230—$236 psf SINGLE-FAMILY ATTACHED FOR-SALE— Townhouses/Rowhouses $250,000—$335,000 1,300-1,850 sf $181—$192 psf Live-Work $315,000—$365,000 1,350-1,600 sf $228—$233 psf SOURCE:Zimmerman/Volk Associates,Inc.,2014. The realization of the full market potential for ownership units, condominiums in particular, could be challenging, given the availability of development financing and mortgage underwriting by financial institutions, the disinterest on the part of large numbers of younger households in becoming owners, and the fact that many otherwise-qualified households, particularly current renters, lack the funds for a down payment. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 37 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Based on the unit types, sizes, configurations, and mix outlined in the optimum market position on Table 9, the weighted average rents and prices for each of the housing types is as follows: Weighted Average Base Rent and Prices DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas WEIGHTED AVERAGE HOUSING WEIGHTED AVERAGE WEIGHTED AVERAGE BASE RENT/PRICES TYPE BASE RENT/PRICES UNIT SIZE PER SQ.FT. Multi-family for-rent $1,374 per month 842 sf $1.63 Hard lofts $1,093 per month 753 sf $1.45 Soft lofts $1,275 per month 780 sf $1.63 Upscale apts. $1,890 per month 1,070 sf $1.77 Multi-family for-sale $263,316 1,238 $213 Hard lofts $184,500 1,015 $182 Soft lofts $226,000 1,115 $203 Upscale condos. $351,000 1,505 $233 Single-family attached for-sale $304,022 1,597 $190 Townhouses/rowhouses $298,250 1,613 $185 Live-work $343,500 1,493 $230 SOURCE:Zimmerman/Volk Associates,Inc.,2014. Proposed rents and prices are in year 2014 dollars, are exclusive of consumer options and upgrades, floor and/or location premiums, and cover the broad range of rents and prices that could be sustained by the market in the Downtown Corpus Christi Study Area. Location will have a significant impact on rents and prices; projects situated within a short walking distance of high-value amenities, such as locations with views of the bay, the restaurants and shops on Chaparral Street, or one of the parks, will likely command rents and prices at the upper end of values. Those projects in less desirable locations, such as adjacent to the Interstate, are likely to command rents and prices at the lower end of values. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B Table 9 Page 1 of 3 Optimum Market Position-4,850 New Market-Rate Dwelling Units Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Annual Unit Unit Base Unit Rent/Price Market Percent Housing Type Configuration Mix Rent/Price Size Per Sq.Ft. Capture Number 53.1-7, Multi-Family For-Rent 222 to 266 units 250 Hard Lofts Loft/1ba 257o $800 500 $1.60 Loft/1ba 30% $975 650 $1.50 Loft/1ba 257, $1,200 850 $1.41 Loft/1ba 20% $1,500 1,100 $1.36 Weighted averages: $1,093 753 $1.45 500 Soft Lofts Microloft/1ba 15% $750 400 $1.88 Studio/1ba 207o $900 550 $1.64 1br/1ba 25% $1,300 800 $1.63 2br/1ba 15% $1,450 900 $1.61 2br/2ba 157o $1,600 1,000 $1.60 2br/2ba/den 10% $2,000 1,250 $1.60 Weighted averages: $1,275 780 $1.63 233 Upscale Apartments 1br/1.5ba 25% $1,350 700 $1.93 1br/1.5ba/den 25% $1,750 950 $1.84 2br/2ba 207, $1,975 1,150 $1.72 2br/2.5ba/den 15% $2,300 1,350 $1.70 3br/2.5ba PH 157o $2,500 1,500 $1.67 Weighted averages: $1,890 1,070 $1.77 983 units Overall Weighted Averages: $1,374 842 $1.63 NOTE: Base rents/prices in year 2014 dollars and exclude floor and view premiums, options and upgrades. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 9 Page 2 of 3 Optimum Market Position-4,850 New Market-Rate Dwelling Units Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Annual Unit Unit Base Unit Rent/Price Market Percent Housing Type Configuration Mix Rent/Price Size Per Sq.Ft. Capture Number 25.7% Multi-Family For-Sale 72 to 86 units 100 Hard Lofts Loft/1ba 30% $150,000 800 $188 Loft/1ba 30% $175,000 950 $184 Loft/1ba 20% $210,000 1,150 $183 Loft/1ba 20% $225,000 1,300 $173 Weighted averages: $184,500 1,015 $182 200 Soft Lofts 1br/1ba 25% $185,000 900 $206 1br/1ba/den 30% $205,000 1,000 $205 2br/2ba 25% $245,000 1,200 $204 2br/2ba/den 20% $285,000 1,450 $197 Weighted averages: $226,000 1,115 $203 175 Upscale Condominiums 2br/2ba 35% $295,000 1,250 $236 2br/2.5ba 30% $350,000 1,500 $233 3br/2ba 207o $395,000 1,700 $232 3br/2.5ba 15% $425,000 1,850 $230 Weighted averages: $351,000 1,505 $233 475 units Overall Weighted Averages: $263,316 1,238 $213 NOTE: Base rents/prices in year 2014 dollars and exclude floor and view premiums, options and upgrades. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B Table 9 Page 3 of 3 Optimum Market Position-4,850 New Market-Rate Dwelling Units Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Annual Unit Unit Base Unit Rent/Price Market Percent Housing Type Configuration Mix Rent/Price Size Per Sq.Ft. Capture Number 21.2% Single-FamilyAttached For-Sale 59 to 71 units 342 Townhouses/Rowhouses 2br/1.5ba 20% $250,000 1,300 $192 2br/2.5ba 30% $290,000 1,550 $187 2br/2.5ba 25% $310,000 1,700 $182 3br/2.5ba 25% $335,000 1,850 $181 Weighted averages: $298,250 1,613 $185 50 Live-Work Units 1br/1.5.5ba 257o $315,000 1,350 $233 500 sf work space 1br/1.5.5ba 45% $345,000 1,500 $230 on ground floor 2br/1.5.5ba 307o $365,000 1,600 $228 Weighted averages: $343,500 1,493 $230 392 units Overall Weighted Averages: $304,022 1,597 $190 1,850 Total Units NOTE: Base rents/prices in year 2014 dollars and exclude floor and view premiums, options and upgrades. SOURCE: Zimmerman/Volk Associates,Inc. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 41 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 DOWNTOWN STUDY AREA ABSORPTION PROJECTIONS After more than two decades' experience in scores of cities across the country, and in the context of the target market methodology, Zimmerman/Volk Associates has determined that, over the near term, those households that prefer new construction, rather than previously-occupied units, currently represent between 15 and 18 percent of the potential Downtown Corpus Christi rental market, and between 10 and 12 percent of the potential Downtown Corpus Christi for-sale market, assuming the production of appropriately-positioned new housing. (Until the collapse of the housing market in the fall of 2008, newly-constructed dwelling units comprised approximately 15 percent of all units sold in the nation; in 2011, that percentage had dropped to just 8.5 percent of all units sold, but has now risen to over 9.5 percent of all units sold.) Based on a 15 to 18 percent capture of the potential market for new rental housing, and a 10 to 12 percent capture of the potential market for new for-sale housing units, the Downtown Corpus Christi Study Area should be able to absorb between 353 to 423 new market-rate housing units per year over the next five years as follows: Annual Capture of Market Potential DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas NUMBER OF CAPTURE NUMBER OF HOUSING TYPE HOUSEHOLDS RATE NEW UNITS Rental Multi-Family 1,480 15%to 18% 222 to 266 (lofts/apartments,leaseholder) For-Sale Multi-Family 715 10%to 12% 72 to 86 (lofts/apartments,condo/co-op ownership) For-Sale Single-Family Attached 590 10%to 12% 59 to 71 (townhouses/rowhouses,fee-simple ownership) Total 2,785 353 to 423 SOURCE:Zimmerman/Volk Associates,Inc.,2014. These capture rates support the creation of between 1,765 and 2,115 new dwelling units within the Downtown Corpus Christi Study Area over the next five to seven years. Over the longer term (beyond five to seven years), these capture rates are likely to increase as the Downtown neighborhood is established. Depending on whether there is a sufficient number of developable ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 42 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 sites, over 10 to 14 years, the market could likely support up to 5,000 new rental and for-sale housing units in the Downtown Study Area. Approximately 80 percent of the annual market capture of new units—or 178 to 213 new rental units, 58 to 69 new condominiums, and 47 to 57 new townhouse/live-work units, a total of 283 to 339 new market-rate units per year over the next five years—would be located in the area encompassed by zip code 78401; the remaining 20 percent of units—or 44 to 53 new rental units, 14 to 17 new condominiums, and 12 to 14 new townhouse/live-work units, a total of 70 to 84 new market-rate units—would be located in North Beach, the residential area included in zip code 78402. The market is constrained in North Beach due to the additional cost of development incurred by flooding issues. The impact of the substantial number of new units in the Downtown Study Area will be significant, by making the Study Area a much more desirable location for retailers and small businesses, by increasing the number of young people living in Downtown, and by providing greater housing and income diversity. NOTE: Target market capture rates are a unique and highly-refined measure of feasibility. Target market capture rates are not equivalent to—and should not be confused with—penetration rates or traffic conversion rates. The target market capture rate is derived by dividing the annual forecast absorption—in aggregate and by housing type—by the number of households that have the potential to purchase or rent new housing within a specified area in a given year. The penetration rate is derived by dividing the total number of dwelling units planned for a property by the total number of draw area households, sometimes qualified by income. The traffic conversion rate is derived by dividing the total number of buyers or renters by the total number of prospects that have visited a site. Because the prospective market for a location is more precisely defined, target market capture rates are higher than the more grossly-derived penetration rates. However, the resulting higher capture rates are well within the range of prudent feasibility. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 43 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 STUDY AREA BUILDING AND UNIT TYPES Building and unit types most appropriate for the Downtown Study Area include: • Courtyard Apartment Building: In new construction, an urban, pedestrian-oriented equivalent to conventional garden apartments. An urban courtyard building is three or more stories, often combined with non-residential uses on the ground floor. The building should be built to the sidewalk edge and, to provide privacy and a sense of security, the first floor should be elevated significantly above the sidewalk. r I`rf Courtyard apartment building ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 44 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 • Loft Apartment Building: Either adaptive re-use of older warehouse or manufacturing buildings or a new-construction building type inspired by those buildings. The new- construction version usually has double-loaded corridors. Microlofts: Several cities across the country are changing minimum unit size requirements as part of a strategy to attract young knowledge workers. Millennial knowledge workers have responded positively to efficiency units as small as 220 square feet, often leasing out new micro loft projects within a matter of days. The City of Boston reduced the city's 450-square-foot unit minimum to 350 square feet in a pilot program currently limited to the South Boston "Innovation District." As of February, 2014, 353 micro-units have been approved. The first property to market micro-units, the 38-unit Factory 63, was completely leased within a week, reportedly all to renters who worked within a 10-block radius of the property. Initial rents were between $1,200 a month for 337 square feet to $2,450 for 597 square feet; fully-leased. There is a waiting list for vacancies in the property where rents now start at $1,699. 2 INNOVATION LOFT A 0 Factory 63. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 45 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 San Francisco has reduced allowable minimum from 290 square feet to 220 square feet, but limited the change to 375 units until market impact has been assessed by the City's planning department; the concern is that the higher-profit micro units could reduce housing opportunities for households with children. The first completed project, SoMa Studios with 23 295-square-foot units, was bulk leased for five years to the California College of the Arts. The same developer, Panoramic Interests, has a 160-unit building planned with 220-square- foot units slated when announced in 2012 with monthly rents between $1,300 and $1,500 ($5.90 to $6.80 per square foot); at the time the average San Francisco studio rent was $2,075 for 493 square feet, or $4.21 per square foot. The building will include substantial common space and parking for 240 bicycles but, other than a single car-share spot, no automobile parking. etas i OF , The Sero with a queen bed ...switched to dining table The Duo:two twin beds Panoramic Interests. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 46 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 In New York City a pilot program accommodates units smaller than the current 400-square- foot minimum. The first project, the 55-unit My Micro NY, won the City's "adapt NYC" micro-unit competition. Units in the modular building range from 250 to 370 square feet; 40 percent will be affordable. Every floor will have a common area, and the building will include an attic garden, a ground-floor porch, a lounge and a fitness deck. I� I APT. #3A - DAY 9'•10`high wa s-urfwc behind cutch used as pin-up ►call;kitchen counter B�down and ready for a onitlie. LJ F Is 4 APT. #3A - NIGHT Cornwtlble sofa-bed folded dmn.kitchen connarr folded up.coffee tablL on whccls relnsafed to�%:+T l My Micro NY. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 47 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Because of their small size and intricate layouts, small units are challenging to develop within existing buildings. A U.S. example of creating micro-units through the adaptive re-use of a non-residential building is the redevelopment of the historic, 1828 Arcade building in Providence, Rhode Island. The oldest surviving indoor mall in the nation, the Arcade closed when its three-story interior retail format was no longer economically viable. It re-opened in 2014 with ground-level retail and its two upper levels converted into 48 dwellings, including 38 micro units ranging from 225 to 450 square feet furnished with built-in beds, storage, banquette seating. In February, 2014, when half the units were completed and occupied, there was a 2,000-name waiting list for the remaining units. Units are now fully leased at rents starting at $550 a month, $2.44 per square foot. - A W' gym I.Now ' __ kill Arcade Building. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 48 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Hard Lofts: Unit interiors typically have high ceilings and commercial windows and are minimally finished (with minimal room delineations such as columns and fin walls), or unfinished (with no interior partitions except those for bathrooms). Soft Lofts: Unit interiors typically have high ceilings, are fully finished and partitioned into individual rooms. Units may also contain architectural elements reminiscent of"hard lofts," such as exposed ceiling beams and ductwork, concrete floors and industrial finishes, particularly if the building is an adaptive re-use of an existing industrial structure. --"" Hard loft 1 ; 4 w �i Soft loft ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 49 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Luxury Apartment: A more conventionally-finished apartment unit, typically with completely-partitioned rooms.—trim, interior doors, kitchens and baths are fitted out with higher-end finishes and fixtures. WL Luxury apartment ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 50 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 • Mansion Apartment Building: A two- to three-story flexible-use structure with a street facade resembling a large detached or attached house (hence, "mansion"). The attached version of the mansion, typically built to a sidewalk on the front lot line, is most appropriate for downtown locations. The building can accommodate a variety of uses—from rental or for-sale apartments, professional offices, any of these uses over ground-floor retail, a bed and breakfast inn, or a large single-family detached house—and its physical structure complements other buildings within a neighborhood. Parking behind the mansion buildings can be either alley-loaded, or front-loaded served by shared drives Mansion buildings should be strictly regulated in form, but flexible in use. However, flexibility in use is somewhat constrained by the handicapped accessibility regulations in both the Fair Housing Act and the Americans with Disabilities Act. �;.'Nrr1N�IG�IIIIffI�I11l11II 11�IIIINt�I�?l fRIU!lIIIIIII IIIIlIIIIIIIIII Il11111111111• Mansion apartment building ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 51 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 • Mixed-Use Building: A pedestrian-oriented building, either attached or free-standing, with apartments and/or offices over flexible ground floor uses that can range from retail to office to residential. w V ONON o A R T Mixed-use buildings ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 52 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 —SINGLE-FAMILY ATTACHED— Townhouse: Similar in form to a conventional suburban townhouse except that the garage—either attached or detached—is located to the rear of the unit and accessed from an alley or auto court. Unlike conventional townhouses, urban townhouses conform to the pattern of streets, typically with shallow front-yard setbacks. q _ _ V L77 eve 77ii1� Townhouses ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 53 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 • Live-work is a unit or building type that accommodates non-residential uses in addition to, or combined with living quarters. The typical live-work unit is a building, either attached or detached, with a principal dwelling unit that includes space that can be used as office, retail, or studio space, or as an accessory dwelling unit. Regardless of the form they take, live-work units should be flexible in order to respond to economic, social and technological changes over time and to accommodate as wide as possible a range of potential uses. The unit configuration must also comply with the requirements of the Fair Housing Amendments Act and the Americans with Disabilities Act. Some of the most effective neighborhood revitalization efforts have incorporated live-work housing for artists and artisans. Perhaps the best example of arts-led revitalization has taken place on two nearly-adjacent blocks in downtown Providence, Rhode Island. In over decade an artists' non-profit, AS220, has re-developed a series of buildings with a mix of uses including eating and drinking establishments, retail uses, gallery and performance spaces, shared technical equipment, and work and residential studios. �Fjy h AS220 ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 54 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 The second redevelopment was the restoration of The Dreyfus, an historic hotel building and former dormitory that now includes a bar and restaurant and 14 residential studios, 11 of which rent to income-qualified artists. The most recent redevelopment is called the Mercantile Block, which includes ground floor market-rate retail, the group's shared print shop, a floor of office space, and two floors with 22 apartments. R _ _ 4 The Dreyfus ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 55 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 METHODOLOGY The technical analysis of market potential for Downtown Corpus Christi included determination of the draw areas—based on the most recent migration data for Nueces County, and incorporating additional data from the 2012 American Community Survey for Nueces County and the City of Corpus Christi—as well as compilation of current residential rental and for-sale activity in the Corpus Christi market area. The evaluation of the city's market potential was derived from the target market analysis of households in the draw areas, and yielded: • The depth and breadth of the potential housing market by tenure (rental and ownership) and by type (apartments, attached and detached houses); and • The composition of the potential housing market (empty-nesters/retirees, traditional and non-traditional families, younger singles/couples). NOTE:The Appendix Tables referenced here are provided in a separate document. DELINEATION OF THE DRAW AREAS (MIGRATION ANALYSIS)— Taxpayer migration data provide the framework for the delineation of the draw areas—the principal counties of origin for households that are likely to move to Nueces County and the City of Corpus Christi. These data are maintained at the county and "county equivalent" level by the Internal Revenue Service and provide a clear representation of mobility patterns. The migration data for the county has been supplemented by mobility data from the 2012 American Community Survey for the City of Corpus Christi. Appendix One, Table 1. Migration Trends Analysis of the most recent Nueces County migration data available from the Internal Revenue Service—from 2005 through 2009—shows that the county consistently lost households over the study period. (See Appendix One, Table 1.) Annual in-migration into the county rose from 7,015 households in 2006 (the lowest in-migrating total over the five years) to 7,575 households in 2008 (the highest in-migrating total), but falling ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 56 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 again to 7,155 households in 2009. Nearly 30 percent of the county's in-migration is from just five counties: the adjacent counties of San Patricio, Kleberg, and Jim Wells, as well as Bexar County (City of San Antonio) and Harris County (City of Houston). It is likely that migration data from 2010 and ensuing years will show increasing in-migration due both to the lessening of the impact of the Great Recession (household mobility typically drops during recessions) and the recent oil boom resulting from the development of the Eagle Ford Shale formation. Historically, although the numbers of households that move are likely to vary from year to year, migration patterns (the counties from which households are moving) typically remain consistent. Between 2005 and 2009, the number of households moving out of the county each year generally ranged between 7,685 out-migrating households in 2005 to 7,545 out-migrating households in 2009, with a study period peak of 7,730 out-migrating households in 2006. Net migration—the difference between the number of households that move into a given area and the number that move out—in the county ranged from a peak net loss of 715 households in 2006, to a net loss of only 60 households in 2008. In 2009, the net loss rose again to 390 households. Each year, the county loses households to Bexar and Harris Counties, but gains a small number of households adjacent San Patricio, Kleberg, and Jim Wells Counties. NOTE: Even though net migration provides insights into a county's historical ability to attract or retain households compared to other locations, it is those households likely to move into an area (gross in-migration) that represent that area's external market potential. Based on the migration data, then, the draw areas for Nueces County and the City of Corpus Christi have been delineated as follows: • The local (internal) draw area, covering households currently living within the Corpus Christi city limits; • The county (external) draw area, covering households currently living in the balance of Nueces County; • The regional (external) draw area, covering households with the potential to move to the City of Corpus Christi from the adjacent San Patricio, Kleberg, and Jim Wells ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 57 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Counties as well as Bexar County (City of San Antonio) and Harris County (City of Houston); and • The national (external) draw area, covering households with the potential to move to the City of Corpus Christi from all other U.S. counties. Migration Methodology: County-to-county migration is based on the year-to-year changes in the addresses shown on the population of returns from the Internal Revenue Service Individual Master File system. Data on migration patterns by county, or county equivalent, for the entire United States, include inflows and outflows. The data include the number of returns (which can be used to approximate the number of households), and the median and average incomes reported on the returns. 2014 TARGET MARKET CLASSIIFICATION OF CITY AND COUNTY HOUSEHOLDS— Geo-demographic data obtained from The Nielsen Company provide the framework for the categorization of households, not only by demographic characteristics, but also by lifestyle preferences and socio-economic factors. An appendix containing detailed descriptions of each of these target market groups is provided along with the study. The three main lifestages are: • Younger singles and couples, largely one- and two-person households with the head of household typically aged between 20 and 40, encompassing the leading edge of the Millennial generation, who were born between 1977 and 1996; • Families, comprising both "traditional' families (married couples with one or more children) and "non-traditional' families (a wide range of family households, from a single parent with one or more children, an adult caring for younger siblings, a grandparent with custody of grandchildren, to an unrelated, same-sex couple with children), primarily Generation X, born between 1965 and 1976; and ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 58 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 • Empty nesters and retirees, largely one- and two-person households with the head of household typically aged over 50, primarily encompassing the Baby Boom generation, born between 1946 and 1964, as well as earlier generations. Appendix One, Tables 2 and 3. Target Market Classifications An estimated 118,660 households live in the City of Corpus Christi in 2014. (Reference Appendix One, Table 2.) Over 46 percent of the city's households can be characterized as empty nesters and retirees, 35.1 percent can be characterized as traditional and non-traditional families, and the remaining 18.5 percent can be characterized as younger singles and couples. Median income within the city is estimated at $45,400, 12 percent lower than the national median of $51,600. Median value of owner-occupied dwellings within the city is estimated at $119,700, over 34 percent less than the national median of$182,100. Nueces County is estimated to comprise 130,735 households in 2014. (See Appendix One, Table 3.) Approximately 47.6 percent of county households can be characterized as empty nesters and retirees, 35.4 percent can be characterized as traditional and non-traditional families, and the remaining 17.1 percent can be characterized as younger singles and couples. County median income is estimated at $45,000, $400 less than the city median. Median value of owner-occupied dwellings within the county is estimated at $116,300, $3,400 below the city median. Target Market Methodology: The proprietary target market methodology developed by Zimmerman/Volk Associates is an analytical technique, using the PRIZM NE household clustering system, that establishes the optimum market position for residential development of any property—from a specific site to an entire political jurisdiction—through cluster analysis of households living within designated draw areas. In contrast to conventional supply/demand analysis—which is based on supply-side dynamics and baseline demographic projections—target market analysis establishes the optimum market position ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 59 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 derived from the housing and lifestyle preferences of households in the draw area and within the framework of the local housing market context, even in locations where no close comparables exist. Clusters of households (usually between 10 and 15) are grouped according to a variety of significant "predictable variables," ranging from basic demographic characteristics, such as income qualification and age, to less-frequently considered attributes known as "behaviors," such as mobility rates, lifestage, and lifestyle patterns. Mobility rates detail how frequently a household moves from one dwelling unit to another. Lifestage denotes what stage of life the household is in, from initial household formation (typically when a young person moves out of his or her parents' household into his or her own dwelling unit), through family formation (typically, marriage and children) to retirement (typically, no longer employed). Lifestyle patterns reflect the ways households choose to live, e.g., an urban lifestyle includes residing in a dwelling unit in a city, most likely high-density, and implies the ability to walk to more locations than a suburban lifestyle, which is most likely lower-density and typically requires automobile ownership to get to non-residential locations. Zimmerman/Volk Associates has refined the analysis of these household clusters through the correlation of more than 500 data points related to housing preferences and consumer and lifestyle characteristics. As a result of this process, Zimmerman/Volk Associates has identified 41 target market groups with median incomes that enable most of the households within each group to qualify for market-rate housing. The most affluent of the 41 groups can afford the most expensive new ownership units; the least prosperous are candidates for the least expensive existing rental apartments. Another 25 groups have median incomes such that most of the households require housing finance assistance. Once the draw areas for a property have been defined, then—through field investigation, analysis of historic migration and development trends, and employment and commutation patterns—the households within those areas are quantified using the target market methodology. The potential ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 60 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 market for new dwelling units is then determined by the correlation of a number of factors— including, but not limited to: household mobility rates; median incomes; lifestyle characteristics and housing preferences; the location of the study area; and the current supply-side context. DETERMINATION OF MARKET POTENTIAL FOR THE CITY OF CORPUS CHRISTI (MOBILITY ANALYSIS)— The mobility tables, individually and in summaries, indicate the number and type of households that have the potential to move within or to the City of Corpus Christi over the next five years. The total number from each county is derived from historic migration trends; the number of households from each group is based on each group's mobility rate. Appendix One, Table 4. Internal Mobility (Households Moving Within the City of Corpus Christi)— Zimmerman/Volk Associates uses U.S. Bureau of the Census data from the American Community Survey, combined with data from the Nielsen Company, to determine the number of households in each target market group that will move from one residence to another within a specific jurisdiction in a given year (internal mobility). Using these data, Zimmerman/Volk Associates has determined that an average of 14,475 households currently living in the City of Corpus Christi have the potential to move from one residence to another—rental or ownership, new or resale—within the city each year over the next five years. Approximately 47.7 percent of these households are likely to be traditional and non-traditional families (in all market groups); 38.9 percent are younger singles and couples (in all but one group); and the remaining 13.4 percent are empty nesters and retirees (in all groups). Appendix One, Table 5. External Mobility (Households Moving to the City of Corpus Christi from the Balance of Nueces County)— The same sources of data are used to determine the number of households in each target market group that will move from one area to another within the same county. ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 61 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 The data shows that an average of 1,315 households, currently living in the balance of Nueces County, have the potential to move from a residence in the county to a residence in the City of Corpus Christi each year over the next five years. More than 58 percent of these households are likely to be traditional and non-traditional families (in six market groups); 33.5 percent are empty nesters and retirees (in 12 groups); and the remaining 8.4 percent are younger singles and couples (in one group). Appendix One, Tables 6 and 7;Appendix Two, Tables 1 through 5. External Mobility (Households Moving to the City of Corpus Christi from Outside Nueces County) These tables determine the number of households in each target market group living in each draw area county and the balance of the United States that are likely to move to the City of Corpus Christi each year over the next five years (through a correlation of Nielsen data, U.S. Bureau of the Census data, and the Internal Revenue Service migration data). Appendix One, Table 8. Annual Market Potential for the City of Corpus Christi— This table summarizes Appendix One, Tables 4 through 7. The numbers in the Total column on page one indicate the depth and breadth of the potential market for new and existing dwelling units in the City of Corpus Christi annually over the next five years originating from households currently living in the draw areas. An average of 23,645 households have the potential to move within or to the City of Corpus Christi each year over the next five years. Traditional and non-traditional families are likely to account for 45.4 percent of these households (in all of Zimmerman/Volk Associates' target market family groups); 38.5 percent are likely to be younger singles and couples (in all of the younger target market groups); and the remaining 16.1 percent are likely to be empty nesters and retirees (in all of the empty nest/retiree groups). As derived from the migration and mobility analyses, then, the distribution of the draw areas as a percentage of the potential market for new or existing dwelling units in the City of Corpus Christi is outlined on the following page (see again Appendix One, Table 8): ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 62 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Potential Housing Market by Draw Area City of Corpus Christi, Nueces County, Texas City of Corpus Christi: 61.2% Balance of Nueces County: 5.6% San Patricio,Bexar,Harris,Kleberg, and Jim Wells Counties: 8.3% Balance of US: 24.9% Total: 100.0% SOURCE:Zimmerman/Volk Associates,Inc.,2014. DETERMINATION OF THE POTENTIAL MARKET FOR THE DOWNTOWN CORPUS CHRISTI STUDY AREA— The total potential market for new market-rate housing units within the Downtown Corpus Christi Study Area includes the same draw areas. Zimmerman/Volk Associates uses U.S. Bureau of the Census data, combined with Nielsen data, to determine which target market groups, as well as how many households within each group, are likely to move to the Downtown over a five-year period. Appendix One, Tables 9 through 11. Market Potential for the Downtown Corpus Christi Study Area— As derived by the target market methodology, an average of 3,405 households have the potential to rent or purchase new market-rate housing units in the Downtown Corpus Christi Study Area each year over the next five years. (Reference Appendix One, Table 09.) Over 60 percent of these households are likely to be younger singles and couples (in seven market groups); another 23.3 percent are likely to be empty nesters and retirees (in 11 groups); and 16.4 percent are likely to be traditional and non-traditional families (in four groups). The distribution of the draw areas as a percentage of the market for the Downtown Study Area is shown on the following page: ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 63 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Market Potential by Draw Area DOWNTOWN CORPUS CHRISTI STUDY AREA City of Corpus Christi, Nueces County, Texas City of Corpus Christi: 60.8% Balance of Nueces County: 1.0% San Patricio,Bexar,Harris, Meberg, and Jim Wells Counties: 6.6% Balance of US: 31.6% Total: 100.0% SOURCE:Zimmerman/Volk Associates,Inc.,2014. The 3,405 draw area households that have the potential to move to the Downtown Study Area each year over the next five years have been categorized by tenure propensities to determine renter/owner ratios. Approximately 43.5 percent of these households (1,480 households) comprise the potential market for new market-rate rentals. The remaining 56.5 percent (or 1,925 households) comprise the market for new market-rate for-sale (ownership) housing units. (Reference Appendix One, Table 10.) Of these 1,925 households, 37.2 percent (or 715 households) comprise the market for new multi- family for-sale units (condominium apartments and lofts). Another 30.6 percent (620 households) comprise the market for new attached single-family (townhouse/rowhouse/live-work) for-sale units. The remaining 32.2 percent (or 620 households) comprise the market for all ranges and densities of new single-family detached houses. (Reference Appendix One, Table 11.) —Target Market Data— Target market data are based on the Nielsen (formerly Claritas) PRIZM geo-demographic system, modified and augmented by Zimmerman/Volk Associates as the basis for its proprietary target market methodology. Target market data provides number of households by cluster aggregated into the three main demographic categories—empty nesters and retirees; traditional and non-traditional families; and younger singles and couples. Zimmerman/Volk Associates' target market classifications are updated periodically to reflect the slow, but relentless change in the composition of American households. Because of the nature of ZIMMERMAN/YOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 64 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 geo-demographic segmentation, a change in household classification is directly correlated with a change in geography, i.e.—a move from one neighborhood condition to another. However, these changes of classification can also reflect an alteration in one of three additional basic characteristics: • Age; • Household composition; or • Economic status. Age, of course, is the most predictable, and easily-defined of these changes. Household composition has also been relatively easy to define; recently, with the growth of non-traditional households, however, definitions of a family have had to be expanded and parsed into more highly-refined segments. Economic status remains clearly defined through measures of annual income and household wealth. A change in classification is rarely induced by a change in just one of the four basic characteristics. This is one reason that the target household categories are so highly refined: they take in multiple characteristics. Even so, there are some rough equivalents in household types as they move from one neighborhood condition to another. There is, for example, a strong correlation between the Suburban Achievers and the Urban Achievers; a move by the Suburban Achievers to the urban core can make them Urban Achievers, if the move is accompanied by an upward move in socio-economic status. In contrast, Suburban Achievers who move up socio-economically, but remain within the metropolitan suburbs may become Fast-Track Professionals or The vzps. Household Classification Methodology: Household classifications were originally based on the Claritas PRIZM geo-demographic segmentation system that was established in 1974 and then replaced by PRIZM NE in 2005. The revised household classifications are based on PRIZM NE which was developed through unique classification and regression trees delineating 66 specific clusters of American households. The system is now accurate to the individual household level, adding self-reported and list-based household data to geo- demographic information. The process applies hundreds of demographic variables to nearly 10,000 "behaviors." ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 65 The Downtown Corpus Christi Study Area City of Corpus Christi,Nueces County, Texas October,2014 Over the past 26 years, Zimmerman/Volk Associates has augmented the PRIZM cluster systems for use within the company's proprietary target market methodology specific to housing and neighborhood preferences, with additional algorithms, correlation with geo-coded consumer data, aggregation of clusters by broad household definition, and unique cluster names. For purposes of this study, only those households in groups with median incomes of$50,000 or more are included in the tables. ZIMMERMANNOLK ASSOCIATES,INC. EXHIBIT B ZIMMERMANNOLK ASSOCIATES, INC. P.O.Box 4907 Clinton, New Jersey 08809 908-735-6336 info@ZVA.cc•www.ZVA.cc Research&Strategic Analysis ASSUMPTIONS AND LIMITATIONS— Every effort has been made to insure the accuracy of the data contained within this analysis. Demographic and economic estimates and projections have been obtained from government agencies at the national, state, and county levels. Market information has been obtained from sources presumed to be reliable, including developers, owners, and/or sales agents. However, this information cannot be warranted by Zimmerman/Volk Associates, Inc. While the methodology employed in this analysis allows for a margin of error in base data, it is assumed that the market data and government estimates and projections are substantially accurate. Absorption scenarios are based upon the assumption that a normal economic environment will prevail in a relatively steady state during development of the subject property. Absorption paces are likely to be slower during recessionary periods and faster during periods of recovery and high growth. Absorption scenarios are also predicated on the assumption that the product recommendations will be implemented generally as outlined in this report and that the developer will apply high-caliber design, construction, marketing, and management techniques to the development of the property. Recommendations are subject to compliance with all applicable regulations. Relevant accounting, tax, and legal matters should be substantiated by appropriate counsel. EXHIBIT B ZIMMERMANNOLK ASSOCIATES, INC. P.O.Box 4907 Clinton, New Jersey 08809 908 735-6336 www.ZVA.cc •info@ZVA.cc Research&Strategic Analysis RIGHTS AND STUDY OWNERSHIP— Zimmerman/Volk Associates, Inc. retains all rights, title and interest in the methodology and target market descriptions contained within this study. The specific findings of the analysis are the property of the client and can be distributed at the client's discretion. ZIMMERMANNOLK ASSOCIATES,INC.,2014 EXHIBIT B -SHA, LLC OFFICE, RETAIL, AND HOTEL MARKET ASSESSMENT CORPUS CHRISTI, TEXAS Submitted By: W-ZHA, LLC September, 2014 EXHIBIT B W-Z H A, LLC INTRODUCTION This report provides a baseline analysis of current conditions and recent trends in the Corpus Christi marketplace. Key market indicators and trends are presented for the office, retail and hotel markets. Market opportunities are identified, on a preliminary basis, given 10-year population and employment projections. EXECUTIVE SUMMARY • The City of Corpus Christi's population has grown rapidly recently with over 40,000 more residents and approximately 20,000 more households today than there were in 2010. • With 80 percent of the region's job, City of Corpus Christi is the employment hub of the Coastal Bend region. • Like the population, employment has grown in Corpus Christi and the City continues to enjoy an unemployment rate below the state and national average. • Corpus Christi's office market is quite weak with relatively high vacancy and low rents. Growth in the regional economy has had relatively little impact on the office market. Future employment growth among industries that typically occupy office space will likely reduce vacancy over the next decade. The prospects for new general office construction are constrained average rents that are not sufficient to cover construction costs. • Corpus Christi is a shopping destination for the region. It does not appear, however, that tourists are contributing signficantly to retail sales. The data do indicate that the tourisst market greatly contributes to eating and drinking sales in the City. Population growth over the next decade will result in demand for approximately one million square feet of new retail and eating and drinking development in the City. • With an overall occupancy rate of 65 percent and average revenue per available room over $70.00, the midscale and upscale hotel market is healthy. The hotel market benefits from a robust business and tourist market. Employment growth alone over the next decade will generate demand for an additional 300 to 500 rooms in Corpus Christi. EXHIBIT B -2 - _Z HAr, LLC ECONOMIC FRAMEWORK Demographics The Corpus Christi Metropolitan Area consists of Nueces,Aransas and San Patricio counties. MetropolitanMost Populous State of Texas 2010 2010 Population Dallas-Fort Worth -Arlington 1 4 6,526,548 Houston -Sugar Land - Baytown 2 5 6,086,538 San Antonio- New Braunfels 3 25 2,142,508 Austin-Round Rock-San Marcos 4 35 1,716,289 EI Paso- Las Cruces 5 58 1,045,180 McAllen - Edinburg - Mission 6 68 774,769 Corpus Christi 7 114 428,185 Brownsville- Harlingen 8 126 406,220 Killeen - Temple- Fort Hood 9 127 405,300 Beaumont- Port Arthur 10 132 388,745 Source: US Census; W-ZHA F:\8000s, misc\82325 Corpus Christi\[house hold trend.xlsx]Sheet4 The Corpus Christi Metro Area is the 7th most populous Metro Area in Texas. In terms of total population the Metro Area ranked 114th in the Country. Population and Households Select Areas 2014 Population Households City # Share # City Share Coastal Bend 590,567 54% 214,141 55% Corpus Christi Metro 444,428 72% 164,746 72% Nueces County 353,424 90% 130,736 91% Corpus Christi City 318,033 100% 118,651 100% Source: Claritas,Inc.;W-ZHA f:\8000s,misc\82325 Corpus Christi\[household trend.xlsx]exist The Coastal Bend region consists of Aransas, Bee, Brooks, Duval,Jim Wells, Kenedy, Kieberg, Live Oak, McMullen, Nueces, Refugio, and San Patricio counties. The Coastal Bend region contains approximately EXHIBIT B -3 - _ZHAr, LLC 444,000 people. Nueces County is the largest county in the region-it accounts for 60 percent of Coastal Bend's population. Most Populous Cities State of Texas 2013 13 Est. Population Houston Houston 1 2,195,914 San Antonio- New Braunfels 2 1,409,019 Dallas 3 1,257,676 Austin 4 885,400 Fort Worth 5 792,727 EI Paso 6 674,433 Arlington 7 379,577 Corpus Christi 8 316,381 Plano 9 274,409 Laredo 10 248,142 Source: US Census; W-ZHA f:\8000s, misc\82325 Corpus Christi\[household trend.xlsx]city r Corpus Christi is the 8th largest city in Texas. The U.S. Census estimated the City's population to be approximately 316,400 in 2013. Claritas, Inc. estimates that the City's current population is approximately 318,000. Population . Household Trends CorpusTexas,Coastal Bend, . . rrr r r r . Population Change 2000-2010 2010-2014 2000-2014 rrr r r # I Avg Ann # Avg Ann # Avg Ann Texas 1.9% 1.5% 1.8% Coastal Bend 549,082 571,987 590,567 22,905 0.4% 18,580 0.8% 41,485 0.5% Corpus Christi Metro 403,279 428,185 444,428 24,906 0.6% 16,243 0.9% 41,149 0.7% Nueces County 313,641 340,223 353,424 26,582 0.8% 13,201 1.0% 39,783 0.9% Corpus Christi City 277,552 305,215 318,033 27,663 1.0% 12,818 1.0% 40,481 1.0% Households 2000-2010 2010-2014 2000-2014 rrr r r # I Avg Ann # T Avg Ann # Avg Ann Texas 1.9% 1.5% 1.8% Coastal Bend 189,303 205,406 214,141 16,103 0.8% 8,735 1.0% 24,838 0.9% Corpus Christi Metro 141,591 157,019 164,746 15,428 1.0% 7,727 1.2% 23,155 1.1% Nueces County 110,364 124,587 130,736 14,223 1.2% 6,149 1.2% 20,372 1.2% Corpus Christi City 98,922 112,843 118,651 1 13,921 1.3% 5,808 1.3% 19,729 1.3% Source: Claritas,Inc.,W-ZHA F:\8000s,misc\82325 Corpus Christi\[house hold trend.xlsx]pop trend EXHIBIT B -4- -ZHA, LLC The City of Corpus Christi has grown faster than its region over the last fourteen years. The City's households grew at an average rate of 1.3 percent per year between 2000 and 2014. Households by Lifestage Corpus Christi Metropolitan Area and Corpus Christi City 2014 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Younger Years Family Life Mature Years Metro Area City Source: Claritas;W-ZHA As compared to the Metro Area, the City of Corpus Christi contains a higher share of households that are young and childless. Like the Metro Area, almost half of the City's households are in their "mature years" (older households without children at home). • • Two-Person Households Coastal Bend, CC MSA, Nueces County, 2014 Coastal Bend 121,181 57% Corpus Christi Metro 93,698 57% Nueces County 73,841 56% Corpus Christi City 67,666 57% Source: Claritas, Inc.; W-ZHA F:\8000s, misc\82325 Corpus Christi\[household trend.xlsx]proj by hshld type Over half of the City's households are one-and two-person households. This is the case throughout the Coastal Bend region. EXHIBIT B -5 - _Z H , LLC Population Projections Coastal Bend, Nueces County,Corpus Christi City 2014,2020,2024,2030 Population # Avg Ann. Texas 26,668,922 29,510,184 29,510,184 33,628,653 2,841,262 0.7% Coastal Bend 590,567 614,790 633,185 661,815 42,618 0.5% Nueces County 353,424 374,157 387,167 407,534 33,743 0.7% Corpus Christi City 318,033 335,657 347,328 365,599 29,295 0.6% Source: Texas Water Development Board;W-ZHA f:\8000s,misc\82325 Corpus Christi\[household trend.xlsx]pop proj According to projections from the Texas Water Development Board, the population growth rate will be slower in the next decade than it was from 2000 to 2014. The State's population is projected to grow 0.7 percent per year over the next ten years. The City's growth rate is projected to be 0.6 percent per year over this same time period. Median . Select Areas i - Texas $50,464 Coastal Bend $44,285 Corpus Christi Metro $45,749 Nueces County $44,979 Corpus Christi City $45,408 Source: Claritas, Inc.; W-ZHA f:\8000s, misc\82325 Corpus Christi\[household trend.xlsx]median income The region's median household income is below the Texas average. The median income among City households is $45,400. EXHIBIT B -6 - -ZHA, LLC Median Household Income by Census Tract Corpus Christi City 2014 u —TEXAS �,6brpus Chmtl % 6a no � t a —5� . Xis LFGFND Y 4.y c93ab pamr I$. x35 W m]5399 ��� JsaW mJ9199 �' 399CD m 9)939 _ �aaaoom+9�z - i �- ss0000ms6999 r� �550©9 m 6)939 _ � �6sOW aN aOwe i J DIIrR 1.5 3 Source: Claritas, Inc.;W-ZHA The map illustrates median household income by census tract. Incomes are high on Padre Island and in the South Side neighborhood. EXHIBIT B -7 - _ZHA►, LLC Employment As of 2013, there were 187,770 jobs in the Corpus Christi Metropolitan Area. City Share of Metropolitan Area Employment Corpus Christi Metropolitan Area and Corpus Christi City 2011 Metropolitan Area,21% \ Corpus Christi City,79% Source: US Census;W-ZHA Almost 80 percent of these jobs are located in the City of Corpus Christi. . . Ten Employers Corpus Christi Metro Area 2012 Type of Product -Service . . Corpus Christi Army Depot Helicopter Repair 6,500 Corpus Christi ISD School District 5,178 CHRISTUS Spohn Health System Hospital 5,144 H.E.B Grocery 5,000 City of Corpus Christi City Government 3,171 Naval Air Station -Corpus Christi Flight Training 2,822 Kiewit Offshore Services Offshore Rig Manufacturer 2,200 Bay, LTD Industrial Construction 2,100 Driscoll Children's Hospital Hospital 1,800 Del Mar College Junior College 1,542 Source: Corpus Christi Regional Economic Development Corporation; W-ZHA F:\8000s, misc\82325 Corpus Christi\[economy emp.xls]employers EXHIBIT B -8- -ZHA►, LLC There are large public sector and private sector employers in the Corpus Christi Metro Area. Health, energy and the military play a major role in the Corpus Christi economy. Employment by Industry Texas and the Corpus Christi Metropolitan Area 2013 20.0% m 18.0% c 16.0% 14.0% +° 12.0% 10.0% - w 8.0% G-) 6.0% s 4.0% MCI: 'n 2.0% 0.0% e`' a' Q �a\a� mea\ e�0�t (-P a�Q' o\e�a\� SIP t ■Texas Metro Area Source: Texas Workforce Commission;W-ZHA Compared to Texas, the Corpus Christi Metropolitan Area has a higher share of its employment in the mining, construction, health, and tourism industries. According to the Convention and Visitors Bureau, Corpus Christi is the 5t" most popular tourist destination in Texas. An estimated 7.1 million visitors spent over 18 million days in the Corpus Christi area in 2011. Approximately 43 percent of Corpus Christi's tourism is nature tourism. EXHIBIT B -9 - _Z KA, LLC Relative Employment Performance(1995 = 100) United States and Corpus Christi Metropolitan Area 1995-2013 130 125 = 120 X 115 c 110 105 100 Ln Lo r, 00 Q1 O —1 N M Ln LD r, 00 Q1 O c-1 N M 071 M M M M O O O O O O O O O O r-I r-I r-I r-1 M M M M M O O O O O O O O O O O O O O c-I c-I c-I c-I —i N N N N N N N N N N N N N N US °Corpus Christi Source: Moody's Analytics;W-ZHA The Corpus Christi Metroplitan economy is expanding at a rapid pace and employment is at an all time high. Growth is being driven by drilling in the Eagle Ford Shale and rising exports from the Port of Corpus Christi. Unemployment CorpusUS, Texas, . 2014 Unemployment Rate United States 5.9% Texas 4.7% Corpus Christi Metro 4.6% Corpus Christi City 4.2% Source: Texas Workforce Commission; W-ZHA F:\8000s, misc\82325 Corpus Christi\[economy emp.xls]current unemployment The City's unemployment rate is well below the State and National average. Corpus Christi has maintained a low unemployment rate, while it's labor force has been expanding rapidly. EXHIBIT B - 10- _Z KA, LLC Unemployment Rate Texas,Corpus Christi Metropolitan Area and Corpus Christi City 2000-2013 9.0% 8.0% d 7.0% M M 6.0% c 5.0% c 4.0% a GE 3.0% c 2.0% 1.0% 0.0% O -1 N M � Ln lD r, 00 Q1 O c-1 N M O O O O O O O O O O -1 -1 -1 -1 O O O O O O O O O O O O O O N N N N N N N N N N N N N N Texas °Corpus Christi Metro Corpus Christi City Source: Texas Workforce Commission;W-ZHA As illustrated in the graph above,the City's unemployment rate has been consistently below the Metropolitan Area's and Texas' unemployment rate. Employment Trends by Major Industry Corpus Christi Metropolitan Area 2003,2008,2013 o00•s LLL LL LL 2003 •,2008 1 1 2013 --7-177g Ann # I Avg Ann I I Avg Ann Natural Resources and Mining 2.85 4.88 7.48 2.0 21.3% 2.6 8.9% 4.6 10.1% Construction 14.35 17.69 16.40 3.3 2.7% (1.3) -1.5% 2.0 1.3% Manufacturing 11.87 11.08 9.77 (0.8) -3.8% (1.3) -2.5% (2.1) -1.9% Wholesale Trade 5.03 5.90 5.90 0.9 3.2% 0.0 0.0% 0.9 1.6% Retail Trade 19.01 21.13 20.77 2.1 1.8% (0.4) -0.3% 1.8 0.9% Transportation,Warehousing,and Utilities 5.34 5.55 7.01 0.2 5.6% 1.5 4.8% 1.7 2.8% Information 2.73 2.47 2.08 (0.3) -5.4% (0.4) -3.4% (0.7) -2.7% Financial Activities 7.77 8.18 7.77 0.4 0.0% (0.4) -1.0% 0.0 0.0% Professional and Business Services 16.02 16.61 15.69 0.6 -0.4% (0.9) -1.1% (0.3) -0.2% Education 0.60 0.74 0.86 0.1 7.3% 0.1 3.1% 0.3 3.6% Health 23.86 26.83 28.95 3.0 3.9% 2.1 1.5% 5.1 2.0% Leisure and Hospitality 18.61 20.78 24.14 2.2 5.3% 3.4 3.0% 5.5 2.6% Other Services 6.70 7.15 7.73 0.5 2.9% 0.6 1.6% 1.0 1.4% Total Government 31.90 33.54 33.24 1.6 0.8% (0.3) -0.2% 1.3 0.4% Total Non-Agricultural Employment 166.65 182.52 187.77 15.9 2.4% 5.3 0.6% 21.1 1.2% Source: Moody's Analytics;W-ZHA F:\8000s,misc\82325 Corpus Christi\[economy emp.x1s]Sheet1 The greatest job gains since 2003 have occurred in the leisure and hospitality, health and mining industries. Employment the natural resources and mining industry grew by an average of 10 percent per year from 2003 to 2013. This was growth was driven by Eagle Ford Shale. EXHIBIT B WZHA, LLC Between 2003 and 2013 jobs were lost in industries that typically occupy office space (information, financial activities, and professional and business service industries). Approximately, 1,000 jobs were lost in these industries during this timeframe. Relative Employment Performance Projection(1995 = 100) United States and Corpus Christi Metropolitan Area 1995—2023 150 145 140 135 130 X 125 c 120 115 1100, 110 105 100 �h 01 9� Oti O3 O� 01 O� �� ti� tih til �°5 �ti L3 y� _1C 1� ,LO ,LO LO LO LO LO LO LO LO "0 LO LO US Corpus Christi Source: Moody's Analytics;W-ZHA According to projections from Moody's Analytics, a national economics firm, the Corpus Christi Metropolitan Area will continue to outperform the United States in employment growth. Moody's outlook for Corpis Christi is optimistic as a result of output growth from Eagle Ford Shale and port infrastrucure expansion. These drivers are also expected to spur jobs gains in construction and professional services. Associated income growth is also expected to drive other industries such as retail and leisure and hospitality. EXHIBIT B - 12 - _Z Hak, LLC Employment Trends by Major Industry Corpus Christi Metropolitan Area 2013,2018,2023 000's ��� 00 2013 •,2018 2023 # Avg Ann #, Avg Ann I Avg Ann Natural Resources and Mining 7.48 9.66 10.50 2.2 7.0% 0.8 1.7% 3.0 3.4% Construction 16.40 20.17 19.35 3.8 3.4% (0.8) -0.8% 2.9 1.7% Manufacturing 9.77 9.81 9.48 0.0 -0.6% (0.3) -0.7% (0.3) -0.3% Wholesale Trade 5.90 6.27 6.18 0.4 0.9% (0.1) -0.3% 0.3 0.5% Retail Trade 20.77 21.63 22.24 0.9 1.4% 0.6 0.6% 1.5 0.7% Transportation,Warehousing,and Utilities 7.01 7.76 7.68 0.7 1.8% (0.1) -0.2% 0.7 0.9% Information 2.08 2.12 2.12 0.0 0.5% 0.0 0.1% 0.0 0.2% Financial Activities 7.77 8.55 8.77 0.8 2.5% 0.2 0.5% 1.0 1.2% Professional and Business Services 15.69 16.89 17.93 1.2 2.7% 1.0 1.2% 2.2 1.3% Education 0.86 0.98 1.07 0.1 4.5% 0.1 1.6% 0.2 2.2% Health 28.95 34.03 38.41 5.1 5.8% 4.4 2.4% 9.5 2.9% Leisure and Hospitality 24.14 29.38 32.56 5.2 6.2% 3.2 2.1% 8.4 3.0% Other Services 7.73 8.74 9.26 1.0 3.7% 0.5 1.2% 1.5 1.8% Total Government 33.24 35.37 36.67 2.1 2.0% 1.3 0.7% 3.4 1.0% Total Non-Ag Employment 187.77 211.37 222.21 23.6 3.4% 10.8 1.0% 34.4 1.7% Office-Inclined Employment 27.31 29.54 30.91 2.2 2.5% 1.4 0.9% 3.6 1.2% Source: Moody's Analytics;W-ZHA F:\8000s,misc\82325 Corpus Christi\[economy emp.xls]proj The industries forecasted to experience the greatest job gains are the health industry and leisure and hospitality. OFFICE MARKET Existing Conditions and Trends Office CorpusOffice Quarter Building Class M, Class A 938,000 Class B 6,579,000 Class C 2,210,000 Total 9,727,000 Source: CoStar Group and Burbach Associates;Texas Real Estate Center at Texas A&M University, "2013 Texas Metro Market Overview data";W-ZHA According to data provided by the Costar Group and Burbach &Associates,there are currently 9.7 million square feet of office space in the Corpus Christie market. EXHIBIT B - 13 - _Z KA, LLC Office Supply Corpus Christi Market 4`"Quarter 2013 `Class A, 10% Class C,23%� Mftbb- Class B, 68% Only 10 percent of the office supply is classified as Class A office space. Almost 70 percent of the office supply is classified as Class B office space. Office CorpusOffice Quarter Central Business District 4,497,000 46% South Side 2,213,000 23% Mid-City 1,486,000 15% West Side 658,000 7% Other* 873,000 9% Tota 1 9,727,000 100% * The data from the "2013 Texas Metro Market Overview" is not consistent. The "Other" category was created to compensate for total supply discrepancies. Source: Costar Group and Burbach Associates;Texas Real Estate Center at Texas A&M University,"2013 Texas Metro Market Overview Data";W-ZHA EXHIBIT B - 14- _Z HAr, LLC The Central Business District (CBD) is the largest sub-market containing slightly less than half of all of the office space in the Corpus Christi market. The South Side is the second largest sub-market with 2.2 million square feet. The largest office buildings are located in the Uptown and Central Business District. Many of these buildings are struggling—they have a lot of available space. The three Class A buildings listing space for- lease on Loopnet, a commercial property listing service, have a combined vacancy rate of 24 percent— over 230,000 square feet of Class A space is available for-lease. Office Space Corpus Christi Downtown and Uptown Market 2014 Building Name SF % One Shoreline Plaza 800 N Shoreline Blvd A 363,300 86,465 24% Frost Bank Plaza 802 N Carancahua St A 310,858 58,925 19% Tower II 555 N Carancahua St A 289,462 86,090 30% Bank of America Building 500 North Shoreline B 350,000 50,000 14% Bayview Tower 400 Mann St B 120,000 10,000 8% Furman Plaza 418 Peoples St B 25,428 8,530 34% AEP Building 539 N Carancahua St B 280,744 11,393 4% American Bank Building 711&811 N.Carancahua St B 234,270 31,530 13% Park Tower 710 Buffalo St B 79,070 22,642 29% Source: Loopnet;W-ZHA f:\8000s,misc\82326 Corpus Christi\[office.xlsx]Sheet 3 The table above summarizes the office space listed for-lease by Loopnet in Corpus Christi's Downtown and Uptown areas as of fall, 2014. EXHIBIT B - 15 - _Zf7A, LLC Select Buildings Asking Rent Corpus Christi Office Market June, 2014 Building Name 0 1 Asking Rent Uptown and Downtown Area One Shoreline Plaza 800 N Shoreline Blvd A $20.00 - $24.00 Frost Bank Plaza 802 N Carancahua St A $17.21 Tower 11 555 N Carancahua St A $14.75 Bank of America Building 500 North Shoreline B $15.00 Bayview Tower 400 Mann St B $13.25 Furman Plaza 418 Peoples St B $14.00 - $16.50 AEP Building 539 N Carancahua St B $14.50 American Bank Building 711 &811 N.Carancahua St B $13.00 Park Tower 710 Buffalo St B $8.40 - $10.49 South Side Sun Plaza 5656 S. Staples St A $17.00 Century South 400 South Padre Island Drive B $15.00 New York Life 5350 S. Staples St B $15.50 Congressional Plaza 6262 Weber Rd B $15.00 Source: Loopnet;W-ZHA f:\8000s,misc\82326 Corpus Christi\[office.x1sx]Sheet1 Office Market Rents Corpus Christi Office Market 2011 M MEffective Avg Rent Downtown Office Class A $17.00 $22.00 $19.50 Class B $9.00 $13.00 $11.00 Suburban Office Class A $13.00 $17.00 $15.00 Class B $9.00 $13.00 $11.00 Source: NAI Cravey Real Estate Services;W-ZHA F:\8000s,misc\82325 Corpus Christi\[office.x1sx]Sheet6 EXHIBIT B - 16- - HA►, LLC Rents are quite low in Corpus Christi. The average rent for Class A office in the CBD is less than $20 per square foot. It is hard to develop new office product with such low rents. Office Rent Corpus Christi Market 2006-2014 SUX0- S 14-00- S12-00- S10.00- SO_Vyl' 2006 240? 2048 2009 1'070 2011 2072 2013 2014 S41t — Utlr* —Counix —ciby Source: Loopnet;W-ZHA As the chart above illustrates average rents have increased within the last year. Even with this increase, however, average office rent is still very low in Corpus Christi. Low rents will deter office investment as tenants are reluctant to pay the premium necessary to support new construction. The more recent office development has occurred in the South Side office sub-market. With its access and its residential growth and retail offerings, South Side is a desirable office location. There has not been an office building developed in the Central Business District or Downtown for 20 years. EXHIBIT B - 17 - _Z KA, LLC Office Prospects General Office The primary market for general office space are businesses in the information, financial activities, professional and business services industries as well as religious, grantmaking, civic and professional organizations. In the Corpus Christi Metro Area, office-inclined industries are projected to grow by approximately 2,200 jobs by 2018 and another 1,400 jobs between 2018 and 2023. Employment Trends by Major Industry Corpus Christi Metropolitan Area 2013,2018,2023 r r r rr • 2013 2018 2023 # Avg Ann # Avg Ann # Avg Ann Information 2,075 2,117 2,125 42 0.5% 7 0.1% 49 0.2% Finance and Insurance 4,633 5,275 5,509 642 3.5% 234 0.9% 876 1.7% Real Estate 3,134 3,280 3,262 146 0.8% (18) -0.1% 128 0.4% Prof,Sci,Tech Services&Mgmt of Companies 6,943 6,921 7,031 (22) 0.3% 110 0.3% 88 0.1 Administrative,Support,Waste Management,& Remediation Services 8,743 9,972 10,898 1,230 4.5% 926 1.8% 2,155 2.2% Religious,Grantmaking,Civic, &Professional Organizations 1,783 1,972 2,081 189 3.1% 109 1.1% 297 1.6% Total 27,312 29,538 30,906 2,226 2.5% 1,368 0.9% 3,594 1.2 Source: Moody's Analytics;W-ZHA f:\8000s,misc\82326 Corpus Christi\[economy emp(Recovered).x1s]Sheet3 Most of this growth is projected to occur in administrative, support,waste management and remediation services industry sector. Administrative and support services account for 92 percent of the jobs in the administrative, support, waste management and remediation industry sector. Examples of firm-types in the administrative and support services industry include temporary employment services, business support services like telephone call centers, and office administrative services. EXHIBIT B - 18- _Z HAr, LLC Jobs by Office-Inclined Industry Corpus Christi Metro Area 2003,2008,2013,2018,2023 12,000 10,000 8,000 c 6,000 4,000 2,0000 023 c o c o m _. 2 'c S L E C E Cu 0o �- ago ao — � v' E E a r (DL o uO ao O . > U Q v' cc O L L V) ■2003 ■2008 ❑2013 E2018 2023 Source: Moody's Analytics; W-ZHA As the graph illustrates, some of the employment growth projected from 2013 to 2023 will compensate for job losses that occurred between 2003 and 2013. This is true for the administrative, support, waste management and remediation industry sector. Where jobs in this industry are projected to grow by 2,155 jobs between 2013 and 2023, 865 of these jobs (or 40 percent) compensate for job losses since 2003.Therefore, a portion of new job growth in this industry sector will likely occupy existing leased, but under-utilized office space. To quantify likely office demand over the next ten years, this analysis assumes that growth that compensates for job losses does not demand new office space. Instead, it is assumed that these new employees will likely occupy a business' existing (under-utilized) office space. Because firms in the administrative and support industries can occupy telephone call center-type space, it was assumed that the average square feet of space per employee is lower for this industry than the professional office average. An average of 125 square feet per employee was assumed. (Call centers range from 90 to 140 square feet per employee.) EXHIBIT B - 19 - —ZHA'#, LLC Administrative and Support Services Office Demand Corpus Christi Office Market 2013-2023 EFTWON-IIIIIIIIIIIII1 1 Administrative &Support" 1,128 849 1,978 Less: Job Losses Since 2003 (865) 0 (865) Net New 263 849 1,112 Office Sq Ft/Job 125 125 125 Sub-Total 32,860 106,170 139,030 1. New jobs multiplied by 92 percent to account for non-office employment in waste management and remediation services. Source: NAIOP "Changes in Average Square Feet per Worker"; Moody's Analytics; W-ZHA f:\8000s, misc\82326 Corpus Christi\[economy emp(Recovered).xls]Sheet 14 The administrative and support services industries will demand 139,000 square feet of office space. These industries may occupy existing vacant office space. They may also occupy vacant retail space where parking is plentiful. Real employment growth is projected for the finance and insurance industry sector. Over the next ten years, this industry sector is projected to gain eight hundred and seventy six jobs. Jobs in religious, grant, civic, and professional organizations are also projected to grow slightly. Professional businesses are using less office space per employee today than they were but five years ago. According to the CoreNet Global Corporate Real Estate 2020 survey of 500 corporate real estate executives, the metric has changed from 225 square feet in 2010 to 176 square feet in 2012, and is projected to reach 151 square feet in 2017. Other • Office Demand CorpusOffice Market 2013-2023 1 1 : 1 1 Other Office-Inclined Industry 996 442 1,438 Sq Ft/Job 175 150 167 Sub-Total 174,360 66,320 240,680 Source: NAIOP "Changes in Average Square Feet per Worker"; Moody's Analytics; W-ZHA f:\8000s, misc\82326 Corpus Christi\[economy emp(Recovered).xls]gen off Using these survey findings as a guideline, for the "other office-inclined" industries, 175 square feet per employee was assumed for new jobs generated between 2013 and 2018 and 150 square feet per employee between 2018 and 2023. Other office-inclined industries will demand approximately 241,000 square feet of office space between now and 2023. EXHIBIT B -20- _ZHA►, LLC The U.S. Census collects data on the number of jobs at the City level. The most recent data is from 2011. In 2011, 85 percent of all of the office-inclined jobs in the Metro Area were in the City of Corpus Christi. Most of the office supply is in the City. OfficeGeneral Corpus Christi City 2013-2023 • • • r-PTIng Administrative and Support Services 32,860 106,170 139,030 Other Office-Inclined 174,360 66,320 240,680 Total Demand: Metro Area (Sq Ft) 207,220 172,490 379,710 City Capture 80% 80% 80% City General Office Demand 165,800 138,000 303,800 Source: W-ZHA f:\8000s, misc\82326 Corpus Christi\[economy emp(Recovered).xls]Sheet13 For purposes of planning, it as assumed that the City would capture 80 percent of the general office demand. This translates into demand for 303,800 square feet of office space in the City by 2023. This demand will likely be satisfied with existing office supply as there is excess vacancy and the average rent is so low that new construction will be challenging from a financial feasibility standpoint. Medical Office Medical office space will also be in demand with the projected growth in the health and social service industries. Medical office space demand is generated from doctors' offices or "ambulatory care" providers. From 2002 to 2012, 40 percent of health and social services employment growth occurred in ambulatory care businesses. From 2007 to 2012, 27 percent of job growth in the the health and social services industry occurred in ambulatory care businesses. Ambulatory care businesses include doctor's offices, diagnostic laboratories, and clinics. Medical Office Demand CorpusOffice 2013-2023 New Jobs in Health and Social Service Industry 5,082 4,375 9,457 Percent Ambulatory Care 30% 30% 30% Medical Office Jobs 1,525 1,310 2,835 Source: Moody's Analytics;W-ZHA f:\8000s,misc\82325 Corpus Christi\[economy emp.x1s]Sheet8 The health care and social service industry is projected to grow significantly in the Metro Area between now and 2023. Given trends from 2002, it was assumed that 30 percent of the new job growth would occur in the ambulatory care industries. Therefore, it is estimated that there will be 2,835 new jobs in EXHIBIT B -21 - -ZHA►, LLC health-related businesses that typically occupy general office (for example, psychiatrists) or medical office space (for example, dentists and general practitioners) by the year 2023. Medical Office: New Establishment Demand CorpusOffice Market 2013-2023 Medical Office Jobs 1,525 1,310 2,835 Share New Establishments 50% 50% 50% New Medical Establishment Jobs 760 660 1,420 Source: Moody's Analytics;W-ZHA f:\8000s,misc\82325 Corpus Christi\[economy emp.x1s]Sheet10 A portion of the employment growth will likely be absorbed by existing practitioners. While some of the employment growth will result in new businesses. Employment and establishment data from 2002 through 2012 indicates that roughly half of the new jobs generated in ambulatory care located in new firms. The other half of the new jobs located in existing businesses. Medical Office Demand Corpus Christi Office Market 2013-2023 New Medical Establishment Jobs 760 660 1,420 Sq Ft/Job 100 - 150 100 - 150 100 - 150 Total Sq Ft 76,000 - 114,000 66,000 - 99,000 142,000 - 213,000 Source: Moody's Analytics;W-ZHA f:\8000s,misc\82325 Corpus Christi\[economy emp.xls]med office The average number of square feet per medical employee varies depending upon the type of medical practice. For purposes of this analysis, a range of 100 square feet to 150 square feet per medical employee was assumed. Given this assumption, employment growth among new firms has the potential to demand between 142,000 and 213,000 square feet of medical-related office space over the next decade. Medical Office Demand Corpus Christi City 2013-2023 Total Sq Ft 76,000 - 114,000 66,000 - 99,000 142,000 - 213,000 City Share 85% 85% 85% City Potential (Sq Ft) 65,000 97,000 56,000 84,000 121,000 181,000 Source: Moody's Analytics;W-ZHA f:\8000s, misc\82326 Corpus Christi\[economy emp(Recovered).xls]Sheet12 EXHIBIT B -22 - _Z KA, LLC In 2011, the City contained 90 percent of the Metropolitan Area's health and social service employment. For purposes of planning, it is assumed that the City has the potential to capture 85 percent of future growth. Given this assumption,there will be demand for between 121,000 and 181,000 square feet of medical office space in the City by 2023. RETAIL Retail and Eating and Drinking Sales Retail Sales Retail Sales Coastal Bend,Corpus Christi Metro and Corpus Christi City 2014 000's City Share Coastal Bend $9,240,452 53% Corpus Christi Metro $6,683,170 74% Corpus Christi City $4,929,767 100% Source: Claritas,Inc.;W-ZHA F:\8000s,misc\82325 Corpus Christi\[retail ana1ysis.x1sx]Sheet6 2014 retail sales in the City are estimated to total $5 billion. The City of Corpus Christi contains 72 percent of the Metro Area's population and City retail sales are 74 percent of the Metro's retail sales. The City's share of the region's total retail sales are in-line with the City's share of population. Comparing the population's retail spending power to estimated sales indicates whether a location is experiencing market leakage (outflow) or retail spending inflow. Typically, tourist destinations experience retail spending inflow. EXHIBIT B -23 - _Z HAr, LLC Total Retail Sales Inflow . Outflow Select Areas 2014 $000's CorpusCoastal . Bend Metr City Retail Expenditure Potential $7,545,450 $5,839,097 $4,171,993 Retail Sales $9,240,452 $6,683,170 $4,929,767 Inflow/(Outflow) $1,695,002 $844,074 $757,773 Inflow/(Outflow) 22% 14% 18% Source: Claritas,Inc.;W-ZHA F:\8000s,misc\82325 Corpus Christi\[retail ana1ysis.x1sx]Sheet2 There are more retail sales in the City than would be expected if only local residents were shopping. Eighteen percent of the City's retail sales are inflow sales. Total Retail Sales Net of Vehicle Sales Inflow Outflow Select Areas 2014 $000's CorpusCoastal . Bend Metr City Retail Expenditure Potential $6,092,990 $4,704,098 $3,347,382 Retail Sales $6,723,793 $4,710,601 $3,419,531 Inflow/(Outflow) $630,804 $6,503 $72,149 Inflow/(Outflow) 10% 0% 2% Source: Claritas,Inc.;W-ZHA f:\8000s,misc\82325 Corpus Christi\[retail ana1ysis.x1sx]Sheet3 If vehicle sales are excluded from total retail sales, resident spending power and retail sales are essentially equal in the Metro Area and the City. Therefore, the retail inflow is mostly from vehicle sales, not recreational shopping. This is surprising given that Corpus Christi is a tourist destination. EXHIBIT B -24- ZKA, LLC Percent Retail Sales Inflow or Outflow Corpus Christi City 2014 80% v 6Q90 O 40% 2046 a w � � -4090 -6.99676 C LLL r I:]. L YL m Ll = S] Source: Claritas,Inc.;W-ZHA It appears that many people come to Corpus Christi to purchase motor vehicles. This is not surprising given that the City is the region's economic hub. The City is also a destination for building material and garden equipment sales. These stores benefit from regional population growth. As the regional healthcare center, the City also experiences a net inflow of health and personal care sales. The City experiences a net outflow of general merchandise and miscellaneous store sales. It does not appear that tourists are shopping for general merchandise, specialty goods or clothing when visiting Corpus Christi. Eating and Drinking Sales Eating and drinking sales are distinct from retail sales. Eating and drinking sales are those sales that occur in restaurants, cafes, clubs, and take-out restaurants. Once again, it is normal for a tourist economy to experience above average eating and drinking sales due to the visitor market. EXHIBIT B -25 - _Z HAr, LLC Total Eating and Drinking Sales Inflow . Outflow Select Areas 2014 $0001s CorpusCoastal . Bend Metr City Retail Expenditure Potential $807,877 $616,198 $444,184 Retail Sales $986,507 $773,661 $573,192 Inflow/(Outflow) $178,630 $157,463 $129,007 Inflow/(Outflow) 22% 26% 29% Source: Claritas,Inc.;W-ZHA F:\8000s,misc\82325 Corpus Christi\[retail ana1ysis.x1sx]Sheet5 Where retail has not fully capitalized on the tourist market, it appears that the eating and drinking industry has benefited from the tourist. The City has almost 30 percent more eating and drinking sales than would be expected from resident spending. The City has the greatest eating and drinking inflow as compared to the Metro Area and Coastal Bend. Eating Drinking Sales CorpusCoastal Bend, . . 2014 000's City Share Coastal Bend $986,507 58% Corpus Christi Metro $773,661 74% Corpus Christi City $573,192 100% Source: Claritas,Inc.;W-ZHA F:\8000s,misc\82325 Corpus Christi\[retail ana1ysis.x1sx]Sheet7 The City's population is 54 percent of the Coastal Bend population, but the City's eating and drinking sales are 58 percent of the region's eating and drinking sales. EXHIBIT B -26 - -ZHA, LLC Retail and Eat/Drink Sales Per Capita Select Areas 2014 Total Retail Retail Sales(Net of Sales Vehicle Sales) Eat/Drink Sales Texas $15,053 $11,331 $1,589 Coastal Bend $15,647 $11,385 $1,670 Corpus Christi Metro $15,038 $10,599 $1,741 Corpus Christi City $15,501 $10,752 $1,622 Source: Claritas, Inc.;W-ZHA F:\8000s,misc\82325 Corpus Christi\[retail analysis.xlsx]per cap On a per capita basis, retail sales (net of vehicle sales) in the City are below the Texas average. Eating and drinking sales per capita are above the Texas average. The Retail Supply and Market According to the "2013 Texas Metro Market Overview Data: Corpus Christi" produced by the Texas Real Estate Center at Texas A& M University,there are 22 million square feet of retail space in the Corpus Christi market. Retail space is located in seven sub-markets. EXHIBIT B -27 - _Z HAr, LLC Retail Inventory Corpus Christi Market Area 4th Quarter 2013 Sq Ft I Share of 000's Tota I CBD 1,694 8% Mid-City 5,940 29% South Side 6,228 30% West Side 1,585 8% Northwest 1,648 8% Four Bluff/Padre Is. 1,628 8% Portland/Ingleside 1,830 9% Total/1 20,553 100% 1. The total square feet varies slightly from Commercial Real Estate Market Report where total square feet is 22.382 million. Source: Costar Group and Burbach Associates;Texas Real Estate Center at Texas A&M University,"2013 Texas Metro Market Overview Data";W-ZHA Retail is concentrated on South Padre Island Drive which carries over 100,000 vehicles per day. South Padre Island Drive serves both the Mid-City and the South Side sub-markets. Together these sub- markets contain 12 million square feet of retail space or approximately 60 percent of the market's retail space. EXHIBIT B -28 - _Z HAr, LLC Retail Inventory and Vacancy Rate Corpus Christi Market Area 4th Quarter 2013 Sq Ft Vacancy 111Rate CBD 1,694 6.0% Mid-City 5,940 4.0% South Side 6,228 4.7% West Side 1,585 6.4% Northwest 1,648 12.8% Four Bluff/Padre Is. 1,628 4.7% Portland/Ingleside 1,830 6.6% Source: CoStar Group and Burbach Associates;Texas Real Estate Center at Texas A&M University,"2013 Texas Metro Market Overview Data";W-ZHA As of the 4t" Quarter of 2013, the overall retail vacancy rate in the Corpus Christi market was 5.6 percent. Retail in the Central Business District reported a vacancy rate of 6 percent while Mid-City and South Side have vacancy rates below 5 percent. The highest vacancy rate was in the Northwest Sub- market. Aggregate Income Per Square Mile Corpus Christi Census Tracts 2014 sZ chrW Fw Source: Claritas, Inc.;W-ZHA EXHIBIT B -29 - _Z K , LLC The dominant retail intersection in the Corpus Christi Metropolitan Area is the corner of South Padre Island Drive and Staples Drive. As the map illustrates this location is convenient to those areas with a concentration of income. The La Palmera Mall,the Shops at La Palmera,the Staples Center and the Moore Center are located here. La Palmera Mall is a regional shopping center with over a million square feet. The mall is anchored by Dillard's, Macy's and JC Penney. The Shops at La Palmera is an adjacent 230,000 square foot strip center. The Staples Center is a strip community center across from La Palmera Mall and adjacent to the struggling Sunrise Mall. Moore Plaza is a 535,000 square foot regional strip shopping center that is anchored by HEB,Target and Steinmart. CorpusRetail Inventory and Rental Rates Quarter Sq Ft Rental 000's Rate CBD 1,694 $10.09 Mid-City 5,940 $12.88 South Side 6,228 $17.54 West Side 1,585 $10.22 Northwest 1,648 $5.43 Four Bluff/Padre Is. 1,628 $14.17 Portland/Ingleside 1,830 $14.60 Source: CoStar Group and Burbach Associates;Texas Real Estate Center at Texas A&M University,"2013 Texas Metro Market Overview Data";W-ZHA The South Side sub-market commands the highest retail rents, while Northwest rental rates are the lowest. EXHIBIT B -30- -ZHA, LLC Retail Prospects Corpus Christi's strong economy and projected growth should have a positive impact on retail. MetropolitanRetail(Net of Vehicle Sales) Potential Corpus Christi 2014-2024 New Residents 29,295 Spending/Resident $10,800 Tota 1 $316,382,800 Sq Ft @ $350 Sales/Sq Ft 904,000 Source: W-ZHA F:\8000s,misc\82325 Corpus Christi\[retail analysis.xlsx]proectin Population growth over the next ten years should support 904,000 square feet of retail. Eating Drinking Potential MetropolitanCorpus Christi 2014-2024 New Residents 29,295 Spending/Resident $1,620 Total $47,457,400 Sq Ft @ $450 Sales/Sq Ft 105,500 Source: W-ZHA f:\8000s,misc\82325 Corpus Christi\[retail ana1ysis.x1sx]Sheet13 Population growth over the next ten years should support 105,500 square feet of eating and drinking space. EXHIBIT B -31 - _Z HAr, LLC HOTEL MARKET Hotel Market Trends The performance of the Corpus Christi hotel market was analyzed from 2008 to 2013. The performance of the midscale and upscale hotel market was compared to all hotels in the Corpus Christi market. The hotels included in the midscale and upscale sample were developed with the assistance of a hotel owner who owns a number of competitive hotels in the Corpus Christi market. Midscale . Upscale Class Hotels Corpus Christi Hotel Market 2014 Hampton Inn & Suites Port Aransas Upper Midscale Class 78 Omni Corpus Christi Hotel Upper Upscale Class 475 Best Western Marina Grand Hotel Midscale Class 173 Holiday Inn Corpus Christi Downtown Marina Upper Midscale Class 334 Quality Inn & Suites On The Beach Midscale Class 112 Radisson Hotel Corpus Christi Beach Upscale Class 139 Comfort Suites Central Corpus Christi Upper Midscale Class 93 La Quinta Inns & Suites Corpus Christi Airport Midscale Class 67 Holiday Inn Corpus Christi Arprt Conv Ctr Upper Midscale Class 237 Hampton Inn Suites Corpus Christi 137 Navigation Upper Midscale Class 80 Holiday Inn Express & Suites Corpus Christi North Upper Midscale Class 64 Holiday Inn Express Corpus Christi NW Calallen Upper Midscale Class 71 La Quinta Inns & Suites Corpus Christi West Midscale Class 66 Hampton Inn Corpus Christi Northwest 137 Upper Midscale Class 55 Comfort Inn & Suites Corpus Christi Upper Midscale Class 61 Courtyard Corpus Christi Upscale Class 105 Embassy Suites Corpus Christi Upper Upscale Class 150 Holiday Inn Express & Suites Corpus Christi Upper Midscale Class 88 Staybridge Suites Corpus Christi Upscale Class 84 Springhill Suites Corpus Christi Downtown Upscale Class 119 Residence Inn Corpus Christi Upscale Class 66 TownePlace Suites Corpus Christi Upper Midscale Class 107 Hyatt Place Corpus Christi Upscale Class 103 Hilton Garden Inn Corpus Christi Upscale Class 119 Comfort Suites Near Texas A& M Corpus Christi Upper Midscale Class 66 Candlewood Suites Corpus Christi Spid Midscale Class 74 Hawthorn Suites by Wyndham Corpus Christi Midscale Class 62 Homewood Suites Corpus Christi Upscale Class 86 Comfort Suites North Padre Island Corpus Christi Upper Midscale Class 75 Holiday Inn Corpus Christi North Padre Upper Midscale Class 149 Source: W-ZHA; Smith Travel Research F:\8000s, misc\82326 Corpus Christi\[hotel.xls]Sheetl EXHIBIT B -32 - _Z HAr, LLC The midscale to upscale class hotels analyzed are presented in the table above. SupplyHotel Room Midscale to Upscale Class Hotels and All Hotels Corpus Christi Hotel Market 2008 -2013 Room Night Supply Hotels Total 2008 1,031,675 3,638,505 2009 1,108,425 3,654,306 2010 1,131,135 3,693,806 2011 1,144,831 3,709,684 2012 1,143,769 3,708,989 2013 1,196,466 3,761,262 Change '08-'13 16% 3% Source: Smith Travel Research; W-ZHA F:\8000s, misc\82326 Corpus Christi\[hotel.xls]Sheet2 The supply of midscale to upscale hotels in Corpus Christi has increased since 2008. There are sixteen percent more midscale to upscale room nights available in Corpus Christi than there were in 2008. Hotel Occupancy Midscale to Upscale Hotels Corpus Christi Hotel Market 2008-2013 66% 64% 62% 60% 58% 56% 54% 52% 50% 48% 2008 2009 2010 2011 2012 2013 Source: Smith Travel Research;W-ZHA EXHIBIT B -33 - _Z HAr, LLC Even with the increase in supply, occupancy among the midscale to upscale hotels has been increasing. At year-end 2013, room nights available in these hotels were 65 percent occupied. Revenue Per Available Room Midscale to Upscale Hotels Corpus Christi Hotel Market 2008-2013 $80.00 $70.00 E °o $60.00 d Z $50.00 M a $40.00 L y $30.00 _ c d $20.00 $10.00 $0.00 — 2008 2009 2010 2011 2012 2013 Source: Smith Travel Research;W-ZHA The average daily rate for a hotel room in these hotels was$102.34 in 2008. Five years later,the average daily rate was$113.79 in midscale to upscale hotels. The revenue per available room in midscale to upscale hotels has increased by 28 percent over five years even as the supply has increased. EXHIBIT B -34- _Z HAr, LLC Revenue Per Available Room Midscale to Upscale Hotels and All Hotels Corpus Christi Hotel Market 2008-2013 $80.00 $70.00 $60.00 $50.00 $40.00 CL u $30.00 O $20.00 $10.00 $0.00 2008 2009 2010 2011 2012 2013 —�Mid/Upper Hotels All Hotels Source: Smith Travel Research;W-ZHA Like the midscale to upscale hotels, the entire Corpus Christi hotel market experienced an increase in revenue per available room since 2008. The new hotel supply does not appear to be cannibalizing the market by taking market share from older hotels. It appears that growth in the economy is supporting the overall hotel industry. EXHIBIT B -35 - _ZHAr, LLC Revenue Per Available Room by Month Midscale to Upscale Hotels Corpus Christi Hotel Market 2013 $120.00 E $100.00 0 73 $80.00 M a' $60.00 L a $40.00 c d $20.00 $0.00 � Zt �C ,a��atJe POG�o� zG��� F �e� �o Qe Source: Smith Travel Research;W-ZHA Both business travel and tourism support the hotel industry in Corpus Christi. Hotels do best during the summer season when children are out of school and the weather is good. The fall and winter months are the weakest (September to February). EXHIBIT B -36- _Z KA, LLC Hotel Occupancy by the Day of the Week Midscale to Upscale Hotels and All Hotels Corpus Christi Hotel Market 2013 80% 72/0 o 72/0 0 72% 69% 70% 67% 62% 60% d m 50% o c 40% M CL u 30% O 20% 10% 0% Sun Mon Tue Wed Thu Fri Sat ■AII Mid/Upper Source: Smith Travel Research;W-ZHA While the tourist is recognized as central to the hotel market, it is important to note that during the heart of the work week(Tuesday and Wednesday), the midscale to upscale hotels are as occupied as they are on a Saturday night. According to hotel managers, 70 percent of their occupancy is driven by the business traveler. The needs of both the business traveler and the tourist are important considerations from an economic development standpoint. Hotel Market Prospects Corpus Christi's hotel market has responded to regional economic growth. With an overall occupancy rate of 65 percent and the average revenue per available room over$70.00, the midscale and upscale hotel market is healthy. Employment is projected to continue to increase over the next decade. This will drive additional hotel demand in Corpus Christi. Employment growth alone will generate demand for an additional 300 to 500 rooms by 2023. EXHIBIT B 11 k A Retail Real Estate Consulting Firm 2730 Forest Avenue, Suite W Berkeley, California 94705 85 Fourth Avenue, Suite 6A New York, New York 10003 Office Phone: 510-356-4956 Mobile Phone: 917-816-8367 info(o-)consultmjb.com www.consultmib.com Memorandum To: Ben Carlson Director of Urban Design, Goody Clancy From: Michael J. Berne President, MJB Consulting Cc: Mitch Glass Senior Urban Designer, Goody Clancy Re: Retail Market Analysis and Strategy / Downtown Corpus Christi — Findings and Recommendations Date: June 19, 2015 In 2014, Goody Clancy was commissioned by the City of Corpus Christi to develop a Comprehensive Plan for the entire City ("Plan CC") as well as an area plan for its Downtown ("Downtown Area Development Plan", or DADP). To ensure that these planning efforts were informed by market realities, Goody Clancy's team included specialists for each of the primary land uses. For the DADP, the firm asked MJB Consulting (MJB), a retail planning and real estate consultancy, to undertake an analysis of Downtown retail and propose a strategy for enhancing it. 1 EXHIBIT B MJB's due diligence for this assignment consisted of the following: - Familiarization with past plans and projects, including conversations with City staff as well as in-depth review of Caller-Times archives - Guided and self-guided walking and driving tours of the study area and immediate vicinity as well as other Corpus Christi and Coastal Bend neighborhoods, including (but not limited to) Westside, Six Points, Southside, Lamar Park, Padre Island, Portland and Port Aransas - Observations of existing retail mix and dynamics in Downtown Corpus Christi and each of its individual sub-districts and corridors (Core, Uptown, SEA District, North Beach, Hillcrest and Washington-Coles), including review of available spaces and sites, relevant projects and initiatives, etc. - Survey and assessment of competing districts and centers, including (but not limited to) South Padre Island Drive / SR 358 (La Palmera, Shops at La Palmera, Moore Plaza, etc.), Staples Street, Portland / U.S. 181, Westside, Six Points, Lamar Park, Port Aransas, Padre Island and Outlets at Corpus Christi Bay (future) - Interviews with property owners, leasing professionals and key stakeholders, including Terry Sweeney (DMD), Brad Lomax (Water Street Market), Casey Lain (House of Rock), Matt Cravey (Cravey Real Estate Services), Wayne Lundquist (Cobb-Lundquist & Atnip) and Joe Adame (Joe Adame and Co.) - Presentations to and meetings with two groups of retail stakeholders as well as the DADP Advisory Committee - Retrieval and analysis of demographic and sales-leakage data for Downtown Corpus Christi primary trade area, along with comparisons to the Corpus Christi MSA - Gathering of available information on non-residential sources of consumer demand in Downtown Corpus Christi, including (but not limited to) daytime workers, tourism and "destination" businesses - Review of and integration with findings from other experts on the consultant team (i.e. Goody Clancy, Zimmerman/Volk, W-ZHA, etc.) - Reference to relevant comparables from across Texas and North America, including Downtown San Antonio (where MJB Consulting is currently working on a retail strategy and implementation effort) In undertaking this scope-of-work, MJB's Principal, Michael J. Berne, applied the firm's unique "total immersion" methodology, visiting Corpus Christi three times and spending twelve days on site. 2 EXHIBIT B Detail The following presents MJB's findings and recommendations, in the format of an "executive summary" memo as agreed upon in the initial contract. Identifying the right "positioning" of a retail mix requires an assessment of two discrete "markets", one in which consumers demand goods and services from businesses, and the other in which tenants seek street-level space from landlords. I. Consumer Demand - For the purposes of quantifying and characterizing those nearby residents who would be most likely to gravitate to the Downtown core, a "primary trade area" has been hypothesized (see map below), corresponding to a five-minute drive time from the intersection of N Chaparral Street and Peoples Street. tea- Source:Nielsen Claritas,MJB ConsultingA - The demographic profile of this primary trade area is summarized in the table below, with the numbers for the Corpus Christi metro provided for the sake of comparison: 3 EXHIBIT B Downtown Corpus Christi Corpus Christi Metro Primary Trade Area Population Population 20,000 449,000 Education and Employment Percent College-Educated 11% 19% Percent Without H.S. Diploma 39% 21% Percent Not In The Labor Force 50% 37% Income and Wealth Median Household Income $28,000 $52,000 Percent Housing Units Owner-Occupied 37% 63% Median Home Value $73,000 $123,000 Mobility Percent Households Without Cars 26% 8% Source:Nielsen-Claritas, MJB Consulting The primary trade area lags the Corpus Christi metro when measured in terms of percentages and medians. In absolute numbers, it can point to a modestly sized contingent of roughly 800 to 1,600 "blue-chip" consumers (i.e. 1,520 college-educated residents; 1,140 creative class workers; 1,150 households with annual incomes of$75,000 or more, with 350 living in homes valued at $200,000 or more), although, with new projects like The Cosmopolitan and in light of Zimmerman/Volk's finding that there is potential for 4,400 more residents by the year 2025, this sub-market will continue to grow. - In addition to those who live in the primary trade area, the Downtown can also draw on certain non-residential generators of demand, like, for instance, the approximately 20,500 daytime workers. Yet while a significant percentage is employed in higher-paying, white-collar office positions, these jobs are heavily concentrated in Uptown, just a five- minute walk from the core but psychologically much further owing to the grade change. Another non-residential demand generator is tourism. The Coastal Bend attracts 8.1 million visitors per year, and while mid-market families are the core demographic, 38% of the households earn annual incomes of $75,000 or more, and 23%, $100,000 or more. However, only 900,000 of the 8.1 million actually spend time in the core, as most of the popular attractions are located to the north, in the SEA District and North Beach. II. Competition - Downtown Corpus Christi must vie for the attention of both consumers and prospective tenants with other centers and districts across the city and metro. And in most categories, it struggles to compete and will likely continue doing so, owing to the strong gravitational pull of much larger rivals with more conventional anchors and superior co-tenancy. For example, it stands little chance against South Padre Island Drive (SR 358) as a mass-market shopping destination or retail location. -The same sort of competitive disadvantage applies within smaller sub-markets and niches as well, with upscale consumers and brands most likely to gravitate to the Alameda Street corridor in Lamar Park, antique collectors and dealers to the Avalon Street "Antique 4 EXHIBIT B Lane" near the intersection of Alameda and Everhart, the "artsy-urban" set to Six Points, neo-hippies to the Water Street Village complex along South Water Street, etc. III. Positioning and Tenanting Strategy - Given that there are no obvious "silver-bullet(s)", that none of the aforementioned demand segments (i.e. trade area residents, office workers, tourists, etc.) are large enough to sustain the retail mix on their own, Downtown Corpus Christi will need to be multi- dimensional, catering to several different sub-markets and day-parts, with the businesses corresponding to each one clustered together so as to generate cross-traffic for each other and coalesce into a visible and recognizable niche. - The most promising of these "mini-opportunities" are ones that build from strength and that leverage existing anchors and co-tenancies. Downtown, for example, is already well established as a regional destination for live music, boasting a diverse ecosystem of performance venues that range in size from the American Bank Center (with a capacity for 10,000 patrons) to the House of Rock(500), and that can accommodate a wide variety of acts. While the subject demands further examination, Downtown's live-music niche might be capable of supporting additional offerings, including perhaps a mid-sized option like The Knitting Factory (a famed New York City venue that has since expanded to smaller markets like Spokane, Boise and Reno) as well as more intimate bars, with capacity for 100 to 200, that can showcase smaller touring bands. - Downtown used to be more prominent as a drinking destination but has lost some of its luster in recent years. It might, however, start to fill that void by offering arg eater diversity of evening-oriented concepts that, while still dependent on alcohol as a source of revenue, also offer the possibility of other sorts of activities and experiences besides excessive consumption. Examples might include: 1) a "dueling-piano" bar; 2) a "bar-cade", which combines food and drink with a selection of vintage arcade games; 3) a bowling alley which, in contrast to family/league-oriented suburban venues, doubles as a lounge or nightclub; and/or 4) a true sports bar, designed specifically with the sports fanatic in mind, with large-screen televisions seemingly in every direction (e.g. Dallas-based, Canadian-born Boston's Restaurant & Sports Bar). One especially intriguing possibility is Los Angeles-based Trifecta Management Group, which develops unique food and entertainment concepts customized to the specifics of local (often secondary) markets. Venues might include live music, arcade games, bowling alleys, high-definition TV's as well as various other leisure activities (e.g. billiards, bocce, etc.), and typically feature local chefs and vendors. - Downtown missed a golden opportunity to expand its evening economy when Alamo Drafthouse Cinema decided to develop its first Corpus Christi theater on the Southside. 5 EXHIBIT B Another possibility, however, is a niche concept like Maya Cinemas, the California-based exhibitor drawn to revitalizing areas with large Latino populations. While its multiplexes feature first-run movies, it also devotes screens to Spanish-language fare. Its founder and CEO, Moctesuma Esparza, is an industry veteran who co-produced Selena and The Milagro Beanfield War, among other pictures. - In stark contrast to the perceived dominance of larger chains on the Southside, Downtown Corpus Christi also boasts one of the Coastal Bend's largest concentrations of unique, owner-operated restaurants, several of which — like Water Street Oyster Bar, Bleu Bistro and the Republic of Texas Bar & Grill, for example -- enjoy a regional draw. This existing collection could serve as the basis for a marketing campaign that draws new customers and operators. In order, however, to preempt cannibalization and complement (rather than undermine) what already exists, additional offerings should focus on capturing more destination diners and taking market share from other parts of the region, while at the same time drawing tourists and workers. Possibilities include small regional chain-lets that typically open just one location per market, or local restaurateurs already successful elsewhere in the Coastal Bend and interested in developing a new concept in the Downtown. As part of this positioning, additional offerings might showcase homegrown dishes and formats that locals would perceive as uniquely Corpus Christi, perhaps offering new interpretations of familiar foods and beverages. And while restaurateurs cannot afford to venture too far from prevailing tastes and sensibilities, there would seem to be room in the market for at least one or two more elevated (though still moderately-priced) "foodie" concepts. - One of the most dynamic areas in the industry today is in non-permanent "mobile" retailing, like carts, trucks and shipping containers. A chief advantage of these formats is that they allow businesses to customize their operations to periods of peak demand (e.g. weekday lunch, weekend nightlife, special events, etc.) and avoid the high fixed costs of a storefront lease. In so doing, they lower the barriers-to-entry for early-stage entrepreneurs who have ideas and talent but limited capital. The result, as anyone who has visited one of Austin's famed food-truck pods will corroborate, is a flowering of new and innovative concepts, which can help to activate vacant lots and public spaces, generate buzz and media attention, portray the host district as hip and contemporary as well as validate an unproven market for other prospects. Some vendors even ultimately become permanent storefront tenants themselves. Yet while this movement is most commonly associated with food, it could take many other forms as well, like, for instance, fashion trucks, which customers can enter via a collapsible staircase in back and then browse the offerings within, even trying them on in a cordoned-off dressing room. A similar sort of low-cost setup could also work for other kinds of comparison goods, like books, or various services and conveniences, such as haircuts or beauty supplies. 6 EXHIBIT B - So-called "traditional" retail — that is, businesses selling goods and services (as opposed to food, drink or entertainment) — will be far more difficult to attract and sustain at this early stage of Downtown's evolution, given the relatively low levels of daytime foot traffic (when most consumers shop) and close-in residential (generating pedestrian activity on the weekends) as well as the weak connectivity between its individual districts (limiting potential spin-off from the few existing pockets of vitality). - The retail categories that typically receive the most attention in a fledgling Downtown like Corpus Christi's are the basic conveniences thought to be essential to its emergence as a residential neighborhood. Yet while the arrival of a grocery store would be an important symbol and milestone, its absence is by no means a deal-breaker, and certainly not as detrimental as the failure of one that opened too soon. Generally speaking, a dedicated population of 10,000 to 15,000 is considered the minimum threshold for a full-service supermarket. Right now, though, the trade area's 20,000 residents can already shop at one of three H.E.B. stores (on Leopard, Port and Alameda). Furthermore, the trade area is currently importing expenditures of roughly $2.7 million in the category, meaning that if anything it is over-supplied. Roughly the same threshold applies to a large-format drug store. In this case, however, the trade area is grossly over-supplied, with $21.3 million in imported expenditures, and contributions from other sub-markets (e.g. workers, visitors, patients, etc.) are not sufficient to close the gap. Indeed, the CVS that had been located at Six Points closed, despite its proximity to CHRISTUS Spohn's Shoreline hospital campus. Additional stores from these operators would most likely cannibalize their existing locations in or near the trade area: another H-E-B in the Downtown core, even if it were successful, would be simply taking customers and sales from itself. In other words, it is only with continued residential growth that such formats will start to become more attainable and sustainable: the market cannot be forced. - In terms of comparison retail, the low number of nearby residents can in some instances be overcome by the presence of anchors that can draw high volumes of foot traffic during the day (when consumers typically shop for such goods), and particularly on the weekends. They might live in other parts of the Corpus Christi metro and/or be visiting the Coastal Bend as tourists. A clear example of the latter is the Rivercenter Mall in Downtown San Antonio, a 500,000 square foot enclosed center that generates north of $500 per square foot — thereby qualifying as a "Class A" mall by industry standards — largely on the shoulders of tourists (who are responsible for 75% of its overall sales) and in the absence of nearby residents. Of course, Downtown San Antonio contains 14,000 hotel rooms (versus approximately 1,760 in the Downtown Corpus Christi study area), and draws 30 million annual visitors (8.1 million). Furthermore, the mall there is centrally located with respect to the tourist 7 EXHIBIT B experience, with connections to the Riverwalk as well as frontage on Alamo Plaza. And even with such advantages, it still struggles to expand beyond its core teen and 20- something customer. In other words, Downtown Corpus Christi is far from the point when it could hope for something on this scale. While the Coastal Bend might very well be capable of sustaining a second regional comparison-oriented shopping center, the more imminent possibility is in Robstown, at the intersection of U.S. 77 and SR 44, where the 330,000 square foot Outlets at Corpus Christi Bay would be able to capture expenditures from motorists driving to and from Mexico, the Rio Grande Valley and South Padre Island. - The larger point is that retail revitalization in a Downtown setting like Corpus Christi's must be understood as a kind of evolution: each phase corresponds to certain kinds of categories and operators, and in the absence of massive and ongoing operating subsidies from the City and/or the developers, none of these phases can be "skipped" without risking some sort of"black eye" (i.e. a failed store) and jeopardizing the entire process. - At this earlier stage in its evolution, there are other formats in some of these categories that Downtown could support. These include a so-called "limited-assortment" grocer, like an ALDI, which retails an edited selection of mostly private-label brands in a no-frills environment at very low prices, or a discount variety store, such as 99 Cents Only, that also sells groceries and even produce. Another basic convenience that might be possible at this point is a family restaurant or "diner", like a Village Inn, which offers an extensive and broadly appealing menu (without alcohol) in an unpretentious setting at reasonable prices. And finally, a new cafe might avoid the fate of the closed Coffee Waves location at Water Street Market if it is able to secure a below-market rent from a landlord, can supplement revenue from other sources (e.g. as a lunch spot, wine bar, etc.) and/or includes a drive-thru window. Given the low levels of daytime foot traffic, comparison retail remains high-risk at this stage -- as is clear from the ongoing churn at Water Street Market, arguably the most favorable location for such businesses in the Downtown. Exceptions include ones that: 1) are operated by savvy, high-caliber merchants; 2) can draw as destinations while also enjoying other sources of revenue besides the walk-in trade (e.g. online, wholesale, etc.); and 3) benefit from low occupancy costs and flexible property owners. - Generally speaking, the food, drink and entertainment categories discussed above are the more important ones in the early stages of Downtown revitalization, inasmuch as they — far more than basic services like grocery and drug stores — help in establishing the "there, there" that then drives interest in the location as a residential address and creates value for developers. Put simply, in a metro like Corpus Christi, where sprawl is not constrained, one lives, or wants to live, in a Downtown not because it has a supermarket, but rather, because it is an exciting place to be, with attractions and energy that simply cannot be found elsewhere. 8 EXHIBIT B In the absence of such "sizzle", even the presence of a new and gleaming H-E-B would not be enough. "Retail follows rooftops" is an oft-quoted industry adage, and it is largely true in most categories. The challenge with Downtown revitalization, however, is that the rooftops themselves only materialize in response to pioneering retail. Indeed, if one were simply to wait for the former before even tackling the latter, then the demand might never actually arrive. Take, as an example, the Pearl Brewery in San Antonio. When Silver Ventures initially proceeded with the redevelopment in the early 2000's, there were no rooftops on site or in the vicinity. Its first move was to entice local celebrity chefs to develop new dining concepts there, followed by a new campus for the prestigious Culinary Institute of America (CIA) and then, a weekly Farmers Market. Today, the Pearl Brewery contains no less than fifteen restaurant and bars, along with 40,000 square feet of retail space, and it has become a premier residential address, with 300+ housing units that command the highest lease rates and sales prices in the entire metro (in addition to several new mid-rise apartment complexes that others have developed in the immediate vicinity). Its success could be attributed to a number of different factors, including its owner -- a deep-pocketed billionaire intent on developing a "legacy project"and both willing and able to absorb early losses in the name of a longer-term vision — but there can be little doubt that retail, food specifically, played a critical role in its evolution and residential appeal. - In order to sustain a cluster of comparison retailers as well as improve the prospects for restaurants and cafes, it will be necessary to land one or more daytime anchors capable of generating large volumes of foot traffic and providing an additional day-part. Such efforts could point to the well-located vacant land and the consolidated property ownership, the latter theoretically offering an incentive for subsidizing "loss-leaders". One possible anchor is a family-oriented amusement park concept, similar to what was proposed by TRT Holdings for the Memorial Auditorium site in 2006, and far more extensive than either Hurricane Alley Waterpark or Schlitterbahn. Such an attraction would align with the psychographics of both visitors and metro-wide residents, and would draw large numbers to the Downtown — nearly 500,000, in TRT's earlier estimation. Another possible anchor is the outdoor-recreation "category killer". According to the Corpus Christi CVB, "nature tourism"was part of nearly half of all visitor trips in 20 12/13, and yet none of the most well known operators -- Bass Pro, Cabela's and Gander Mountain, for example -- have a presence in the Coastal Bend, leaving just the (comparatively) limited selections at Wal-Mart, Academy Sports, Dick's Sporting Goods, etc. 9 EXHIBIT B While their typical floor-plates of 100,000+ square feet might be too large for a Downtown setting, both Bass Pro and Cabela's have started to open roughly 40,000 square foot "Outpost" stores in smaller markets (e.g. Bass Pro's new 42,000 square foot unit in Lubbock, an MSA of 306,000 people). They typically do not gravitate to conventional strips like S.P.I.D., and while The Outlets at Corpus Christi Bay might appeal to them, they could also be intrigued by Downtown's more central location. Lastly, a campus for a TAMU-CC School of Art, along with student housing, could have a transformative impact on Downtown retail: not only would it synergize with the existing live-music venues and art galleries, but also, it would provide support for an art supply store (such as a Jerry's Artarama), a coffeehouse, casual eateries and perhaps even one or two niche-specific comparison retailers (like a vintage clothier, for instance). And while it might not offer quite the same sex appeal or spin-off potential as a university arts program, a cosmetology and beauty academy, like the Texas-based Ogle School (with eight locations statewide), would offer valuable training for possible careers in the salon industry (as well as affordable haircuts for the general public) and would appeal in particular to lower-income residents in nearby neighborhoods. - Finally, just as each of the evolutionary phases in the revitalization process correlates with specific categories and operators, each also corresponds to a certain quantity and scale of retail, and disregarding such limits would likely backfire in the form of vacant storefronts or constant turnover. In the case of Downtown Corpus Christi, there is, at this point, only enough demand (from consumers and prospective tenants) to support the equivalent of one walk-able business district. This current level of demand should be concentrated, to the extent possible, in one place -- rather than diluted across the several that exist in the study area — so as to take full advantage of the synergistic potential of co-location. Specifically, adjacent retailers generate cross-traffic for each other that they would not necessarily be able to attract on their own, and more easily cohere into something marketable than if they were scattered across a sprawling, disconnected land mass. The precedent for retail is strongest, and the catalytic potential seemingly greatest, in the Downtown core itself, which, with Chaparral Street and the adjoining side streets, can still point to a compact, walk-able, largely intact storefront fabric with historic and symbolic resonance. And with its cluster of dining and nightlife draws, its collection of hotels, its proximity to the Uptown office district and its potential for new housing, it can also offer a greater level of diversity and consistency in its consumer demand. Of course, with most of the visitor attractions located to the north, additional food, drink and entertainment uses might be possible there as well, particularly in the SEA District. That, however, would first require the creation of new inventory, which would likely assume a more isolated and disconnected form -- similar to the attractions themselves — and which would present formidable competition to (and amount to an abandonment of) the core. 10 EXHIBIT B - Within the core itself, Chaparral Street should be the top priority: as the most identifiable street in the Downtown and, with the recent streetscape improvements, also the most attractive and walk-able, its progress — both real and perceived -- will have the greatest bearing on Downtown's overall brand. Focusing efforts there would also serve to reinforce and protect such public investments as well as private ventures like The Cosmopolitan. And in terms of the consumer, Chaparral Street is the most central of the core's north- south thoroughfares, and therefore, the most convenient for its various sub-markets. For while Shoreline Boulevard can offer the bay-front, and Water Street, visibility and access to the motorist, a Chaparral location is able to capitalize on proximity to and provide an added amenity for the daytime workers in Uptown, while, at least on one side, also enjoying Water Street frontage (a la Water Street Market). - Again, a strategy of prioritizing the core and Chaparral Street makes sense for Downtown Corpus Christi in the current stage of its evolution, but as the demand fundamentals improve, as the residential population grows and new daytime anchors are added, other districts could become more viable for retail. For now, though, these other districts are more appropriately designated for other (equally critical) uses and initiatives. In the meantime, the retail mix in each should be limited to what exists today, and perhaps, a few other ancillary businesses that would not weaken tenant demand for or reduce consumer expenditure in the core. For example, the Uptown intersection of Leopard Street and Staples Street, near the City Hall, the County Courthouse and soon, the RTA's new Staples Street Center, would be suitable, say, for additional quick-service food and beverage operators like Subway, Dunkin Donuts or even a Huddle House. - In terms of specific blocks and sites, the approach should be one of building from existing strengths, with near-term tenanting should focus on: I) available spaces along the stretch of Chaparral Street from William to Schatzell, leveraging both the Water Street Market and The Cosmopolitan; 2) storefronts on intersecting side streets headed towards Uptown, including William, Schatzell and Peoples, from Chaparral to Mesquite; and 3) mobile retailing opportunities for La Retama Park. In the medium term, tenanting efforts would encompass new Chaparral Street inventory created by the redevelopment of now-vacant building and sites (first initiated in the near term), including: 1) the Ward Building; 2) the Greyhound Bus Station; and 3) the parcels currently owned by TRT Holdings at the northern end of the existing fabric. The leasing climate north of Schatzell should start to improve once there is a clear and positive direction for the future of these last two. IV. Next Steps - Retail tenanting in a struggling Downtown requires a fundamentally different mindset. Unlike most suburban shopping centers, it does not necessarily sell itself. For this reason, 11 EXHIBIT B simply posting a "For Lease" sign and then waiting for tenants to discover the opportunity on their own — the sort of reactive approach taken by most developers, landlords and brokers -- is often not enough, especially if the goal is not just to fill space but also, to catalyze broader revitalization. There is a need, then, for a more proactive effort, one that recognizes the true balance- of-power in this small corner of retail leasing — that the buyer, not the seller, is the one with all of the leverage — and that it therefore falls to the property owner (or its representative or advocate) to take the case directly and forcefully to the tenant, offering a convincing argument for why Downtown should be on its radar screen, with both a compelling pitch as well as other inducements, financial or otherwise. - The DMD assumes a pivotal role in this regard. Not only can it point to an energetic executive director with a background in real estate development — especially important in light of the relatively weak corporate presence in Downtown -- but also, as a property and business organization with a place-specific (versus a city- or metro-wide) mandate, it can more easily sidestep messy political dynamics that could potentially derail such efforts. Specifically, it is the DMD that should take the lead on the retail strategy outlined here, advocating on behalf of (or in opposition to) specific tenancies and uses; serving as their "concierge" or middleman with the City and other stakeholders (when necessary); lobbying for other broader initiatives and investments that might be necessary; and, more generally, providing a level of reassurance to prospective tenants and existing merchants that, like a shopping center manager, someone is "minding the store" and protecting their interests. Obviously the DMD does not have much actual leverage in this arena, but it can gain some clout by partnering closely with the public sector, which might have to remain behind the scenes for political reasons but which could align its various "carrots" and "sticks" — like, for instance, modestly sized forgivable loans for build-out assistance (below), expedited "fast-track" permitting, etc. — with the tenanting strategy outlined here. The DMD should also look to develop and strengthen relationships with the sub-set of property owners that are for various reasons incentivized to take a broader approach to retail leasing and might consider one or more "loss-leaders". These include landlords that have a larger portfolio and stake in the Downtown, that can appreciate the value of street- level tenanting in driving premiums on the (more profitable) uses upstairs, and/or that retain a sentimental attachment to the district and the city. - The DMD should position itself as an information clearinghouse, offering — with a separate link on its website as well as in print form (below) -- hard-to-find data points that retailers and brokers cannot easily obtain on their own, including a comprehensive inventory of available (and soon-to-be-available) spaces, details on individual sub-markets (e.g. visitors) and demand generators (e.g. live-music venues), testimonials from existing merchants, news on future developments and improvements, etc. 12 EXHIBIT B The print format would offer more than just information: a professionally developed and designed brochure that challenges prevailing assumptions about Downtown retail and reframes the opportunity through a combination of creative data mining, coherent narrative and visual flourish, it would serve as a useful tool to landlords and brokers, particularly those ones educated in the "post-a-sign-and-wait-for-calIs" school of retail leasing. The DMD is also prepared to take its role one step further by signing master leases for the ground-floor retail space in new mixed-use project(s), and then proceeding to "curate"the tenant mixes there by actively pursuing desired tenancies and offering below- market rents. Yet as much as this might be needed, and although the public / non-profit sector must be willing at this stage in Downtown's evolution to take high-risk positions until private interests are ready to do so, it would be breaking new ground for a BID, especially a fledgling and capacity-challenged one like the DMD. - Incentivizing retail, it might be argued, amounts to an attempt to "skip" certain stages in the revitalization process. As already discussed, this typically backfires, at least when the purpose is to overcome inadequate consumer demand, for the recipient, upon draining the full amount, will still likely fall victim to the limitations of the market. (And ongoing operating support is never recommended, given the risk of protecting lousy merchants and creating the conditions for "moral hazard"). Incentives can play a critical role, however, if the goal is to overcome risk aversion on the tenant side. Of course, subsidies should not be offered in categories where the consumer demand simply does not yet exist, but in ones where the findings have revealed nearer- term potential (above) and where the reluctance is driven by other factors, like perception or undercapitalization, such assistance actually helps to facilitate latent (yet very real) market opportunities. One might argue that certain categories warrant exceptions to this general approach, like, for instance, art galleries and studios, which, irrespective of their ability to generate sales, could help in changing perceptions about Downtown. However, while this might be true, other sources of financial support are presumably available for such uses, particularly if they are run as non-profits or, for that matter, sponsored by a new TAMU-CC School of Art (see above). - There is precedent for Corpus Christi to make use of so-called Chapter 380 agreements in pursuing catalytic anchors for its Downtown: as just one example, Fort Worth-based Trademark received $23 million in tax incentives for the renovation and expansion of the old Padre Staples Mall (now, La Palmera). This practice is well established across Texas: indeed, one of Corpus Christi's competitors for new development, the City of Robstown, is providing $38 million to the developers of The Outlets at Corpus Christi Bay. There is also the need, however, for a separate incentive geared towards early-stage entrepreneurs, perhaps using "Type A" funds. In addition to the existing Fa4ade Improvement Grant program, modestly sized forgivable loans should be offered to help 13 EXHIBIT B defray the build-out costs incurred by small businesses, including not just prospects considering a new location but also, current merchants looking to improve or expand their operations. The availability of such funding can be critical: many landlords assume that a period of free rent is sufficient, but this presupposes that the entrepreneur can still somehow front amounts in the tens or hundreds of thousands. And while some continue to view an inability to secure start-up capital as a red flag of sorts, the recent revolution in micro- scaled retail and food service has shown how undercapitalization is not necessarily an indication of business acumen or a predictor of success. Finally, in light of the complicated political dynamics surrounding growth and development in Corpus Christi, this incentive pool should be funded by the established TIRZ that is specific to the Downtown, jointly administered by both the City and the DMD but with the latter as the "front man". And again, such monies should be used as "carrots" to incentivize businesses and locations that have been prioritized in the tenanting strategy (above). - Of course, retail revitalization in a Downtown setting is not only or even primarily a function of consumer demand and tenant attraction: it requires a far more comprehensive approach encompassing initiatives and improvements in a broad range of areas, and while the DMD can and should take a leadership role in championing and coordinating what needs to happen, much of it will ultimately depend on support from and collaboration between a host of other entities and stakeholders. Given, for example, the weak connectivity between Downtown's various districts, it will be especially important not just to establish and reinforce links to the extent possible — for pedestrians between the core and Uptown, for motorists negotiating the new Harbor Bridge, etc. — but also, to ensure and expand direct, relatively fast and frequent transit alternatives that provide access to key consumer sub-markets, such as out-of-town tourists. Another critical piece is personal safety. Even this element, however, is more complicated than it seems. Of course the DMD will be playing a "clean-and-safe" function, but perceptions are also influenced by various other factors, including the cosmetics of building facades, the age of store signage, the condition of basic infrastructure, the design and programming of public spaces, even the communication protocols in crisis situations. And while retail can, as explained earlier, play a pivotal role in growing rooftops and catalyzing revitalization, ultimately its performance will hinge on the markets for these other uses. Demand, for example, could exist for new housing but if the numbers do not pencil or the price point is not right, it will not materialize. And on a macro level, structural forces impacting the larger economy or certain industries (e.g. oil and gas) could accelerate, slow or halt the process. 14 EXHIBIT B In other words, retail revitalization, especially in a Downtown setting, is a marathon, not a sprint. Even in the frothiest of markets, there are countless variables and potential roadblocks, and there will be disappointments and setbacks. Furthermore, the only constant about retail is that it changes, constantly. Yet while staying the course carries no guarantee of a successful outcome, refusing to resolve upon one or failing to stick with it is more likely to result in failure. 15 EXHIBIT B Lailer Times PART Of THE USA TODAY NETWORK Certificate of NOTICE OF PASSAGE OF Publication ORDINANCE(S) NO.031399, Ordinance adopt- ing North Beach Redevelop- In Matter of Publication of: ment Initiative Specific Plan; and NO.031400, Ordinance adopt- ing Downtown Area Devel- opment Plan; rescinding Central Business Develop- ment Plan; and amending comprehensive plan. These CORPUS CHRISTI ordinances were passed and CITY OF CORPUS CHRISTI approved on second reading by the Corpus Christi City PO BOX 9277 Council on March 27,2018. /s/Rebecca Huerta CORPUS CHRISTI,TX 78469-9277 City Secretary State of Wisconsin) ))§ County of Brown) I,being first duly sworn,upon oath depose and say that I am a legal clerk and employee of the publisher, namely, the Corpus Christi Caller-Times, a daily newspaper published at Corpus Christi in said City and State, generally circulated in Aransas, Bee, Brooks, Duval, Jim Hogg, Jim Wells, Kleberg, Live Oak, Nueces, Refugio, and San Patricia Counties, and that the publication of which the annexed is a true copy, was inserted in the Corpus Christi Caller- Times on the following dates: April 2, 2018 1 LegLI?eti On this April 2,2018,I certify that theed document is a true and exact copy made by publisher. L14Cfl(Ge Notartguy1, to o Wi consin,County of Brown NOTICE OF PASSAGE OF ORDINANCE(S) NO.031399, Ordinance adopt- J .• eneach\\\\\ FECT/1/ mInitiative Specific Plan; , '.��i and NO.031400, Ordinance adopt- • ing Downtown Area Devel- :`• �0TAR I' _ opment Plan; rescinding ®0 4110 = Central Business Develop- ment Plan; and amending .. PU 81-�G :r comprehensive plan. These •• .• ordinances were passed and X**. . . p ��� approved on second reading Ad#: 1973110 ,/I, FiiW�� G'��\\\ Counhcil on March 27 2018ity /s/ tySecHuerta raCiSecretary #of Affidavits:0 -n — D A � C") rn N -13 A CO -r 1�!