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HomeMy WebLinkAboutAgenda Packet City Council - 10/24/2019City Council Workshop Session City of Corpus Christi Meeting Agenda 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com 1901 N. Shoreline Blvd., American Bank Center, Selena Rotunda 8:30 AMThursday, October 24, 2019 JOINT CITY COUNCIL AND NUECES COUNTY WORKSHOP A.Mayor Joe McComb to call the meeting to order. B.Assistant City Secretary Paul Pierce to call the roll of the required Charter Officers. C.BRIEFINGS TO CITY COUNCIL: The following items are for Council's informational purposes only. No public comment will be solicited. 1.19-1471 Joint City Council and Nueces County Workshop on Proposed North Beach Tax Increment Reinvestment Zone Preliminary Project Plan D.ADJOURNMENT Page 1 City of Corpus Christi Printed on 10/23/2019 DATE:October 16, 2019 TO:Mayor, City Council, Nueces County Judge and County Commissioners THROUGH:Peter Zanoni, City Manager FROM:Arlene Medrano, Business Liaison ArleneM@cctexas.com (361) 826 - 3356 STAFF PRESENTER(S): Name Title/Position Department 1. Peter Zanoni City Manager City Manager’s Office 2. Arlene Medrano Business Liaison Finance & Business Analysis 3. Dan McGinn Director of Planning Planning Department ISSUE: The City Council and Nueces County Commissioners will provide input on the staff proposed Preliminary Project Plan for the proposed North Beach Tax Increment Reinvestment Zone. On Tuesday, October 15, 2019, the City Council received a briefing on the draft Preliminary Project and Financing Plan for the proposed Tax Increment Reinvestment Zone (TIRZ) Number Four at North Beach. City Council members and Nueces County Commissioners will meet in a workshop to discuss the Project Plan. No action will be taken at this meeting. Chapter 311.011 of the Tax Code provides: Sec. 311.011. PROJECT AND FINANCING PLANS. (a) The board of directors of a reinvestment zone shall prepare and adopt a project plan and a reinvestment zone financing plan for the zone and submit the plans to the governing body of the municipality or county that designated the zone. The Zone is anticipated to engage in projects that will support the types of development and economic activity projected in the Downtown Area Development Residential Market Analysis (Attached) as well as contribute to the image and attractiveness of North Beach Corpus Christi on a local, regional, and national level. In addition, the Zone will pay the costs of Zone creation and ongoing administration. Presentation Joint City Council and Nueces County Workshop on the Proposed North Beach Tax Increment Reinvestment Zone Preliminary Project Plan AGENDA MEMORANDUM Presentation Item for the Joint Workshop of October 24, 2019 The City Council and the Nueces County Commissioners will meet to review and discuss the following list of projects that currently are contained in the Preliminary Project Plan for the proposed North Beach TIRZ: 1. Wayfinding Infrastructure 2. Park Improvements 3. Demolition of Blights Structures 4. Public Safety 5. North Beach Public Spaces Beautification & Revitalization Program & Services 6. North Beach Parking Structure Initiative 7. Project Specific Development Agreement 8. North Beach Property Improvement Program 9. North Beach Living Initiative 10. Residential Streets 11. Creation Costs 12. Administration Costs RECOMMENDATION: Staff recommends that a briefing be presented to City Council and the Nueces County Commissioners on the proposed North Beach TIRZ Project Plan and that the City Council and the Nueces County Commissioners provide feedback on the staff recommendation’s contained within the Project Plan. LIST OF SUPPORTING DOCUMENTS: 1. PowerPoint – (Not Included) 2. Preliminary Project & Financing Plan Additional Supporting Documents Available Online: 3. North Beach Development Plan (November 2011) 4. North Beach Redevelopment Area Specific Plan (February 2018) 5. Downtown Area Development Plan with Appendix (DADP) (March 2018) PRELIMINARY PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN Tax Increment Reinvestment Zone #4 NORTH BEACH, CORPUS CHRISTI, TEXAS October 2019 DRAFT TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................... INTRODUCTION ............................................................................................................ 1 Criteria for Zone Creation 1 Vision for North Beach 2 Anticipated Zone Role in North Beach Improvements 2 PROJECT PLAN …………………………………………………………………………………………………………… 3 Existing Uses and Conditions / Boundaries §311.011(b)(1) 3 Exhibit A ‐ Zone Boundaries and Land Use 3 Exhibit B.1 ‐ Existing Land Use 4 Exhibit B.2 ‐ Existing Property Designation 5 Exhibit B.3 ‐ Existing City Limits, City Owned, Port Owned & Proposed TIRZ Parcels 6 Exhibit C ‐ Legal Description of the Zone 7 Municipal Ordinances §311.011(b)(2) 10 City Planned Improvements (Non‐Project Costs) §311.011(b)(3) 11 Relocation §311.011(b)(4) 12 REINVESTMENT ZONE FINANCING PLAN ....................................................................... 13 Estimated Project Cost Description §311.011(c)(1) and Kind, Number, and Location of TIRZ Improvements §311.011(c)(2) 13 Economic Feasibility Study §311.011(c)(3) 16 Estimate of Bonded Indebtedness §311.011(c)(4) 16 Timing of Incurring Costs or Monetary Obligation §311.011(c)(5) 16 Method of Financing and Sources of Revenue §311.011(c)(6) 16 Sources of Revenue 16 Current Appraised Value §311.011(c)(7) 19 Estimated Captured Appraised Value §311.011(c)(8) 19 Duration of the Zone §311.011(c)(9) 19 Appendices ................................................................................................................... 20 Appendix A – Economic Feasibility Study §311.011(c)(3) DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas 1 | P a g e INTRODUCTION The City of Corpus Christi is proposing to create a Tax Increment Reinvestment Zone or TIRZ (hereafter referred to as the “Zone”) over a portion of the city that includes the city’s North Beach area along the Bayfront from the Rincon Channel at the north end, south to the USS Lexington, adjacent to the Texas State Aquarium, and west to the Port of Corpus Christi. Criteria for Zone Creation The area within the Zone qualifies for a TIRZ because it suffers from economic stagnation, inadequate infrastructure, and deteriorating properties. Without intervention by the public sector, private market forces will not be sufficient to generate significant development and redevelopment. Conditions meeting the criteria of the Tax Code of the State of Texas, Chapter 311, Section 005 for reinvestment zone designation include: • A substantial number of substandard, slum, deteriorated, or deteriorating structures; • The predominance of defective or inadequate sidewalk or street layout; • Unsanitary or unsafe conditions; • The deterioration of site or other improvements; and • Conditions that endanger life or property by fire or other cause. According to the language of Chapter 311, these conditions must “substantially arrest or impair the sound growth of the municipality or county creating the zone, retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition and use.” The existing conditions in the North Beach area of Corpus Christi hamper investment in residential, retail and hospitality-related property improvements, as outlined in the portions of the Downtown Area Development Plan (DAPD) Residential Market Analysis relevant to North Beach, included in Appendix A. The conditions outlined above will not be overcome or corrected without significant intervention and assistance from the public sector, therefore satisfying the general criteria for creation of the Zone. DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas 2 | P a g e Vision for North Beach Over 800,000 people visit the Texas State Aquarium and USS Lexington on North Beach each year. Each of those visitors drives through areas with frequent flooding and many blighted as well as vacant properties. Corpus Christi’s first impression to over 800,000 people each year is largely a pathway of deferred maintenance, disrepair, and unimproved properties on the way to the beautifully maintained and exciting Texas State Aquarium and USS Lexington. This is not the first impression of Corpus Christi we want nearly 1 million visitors each year taking back home. In recent years, the new Harbor Bridge construction has changed the entrance and exit ramps to and from North Beach. These changes will have an enormous impact on access to and from North Beach and its ability to remain the most visited location in all of the Coastal Bend area. The completion of the Harbor Bridge, and demolition of the old bridge, will spur new opportunities for North Beach revitalization. The proposed Zone can directly aid in the realization of this vision while addressing the deficiencies and challenges outlined above. Anticipated Zone Role in North Beach Improvements The DAPD Analysis of Residential Market Potential (attached as Appendix A) 2011 North Beach Development Plan and 2018 North Beach Redevelopment Area Specific Plan, included as Appendices to this document, indicate the nature of the intervention and assistance needed to spur economic growth in different areas of the Zone. Flooding, vacant properties, the aging of existing development, inadequate public infrastructure and facilities together depress the viability of new development and redevelopment in North Beach. However, continued investment by the Texas State Aquarium, changes brought by the new Harbor Bridge, new multi-family construction, new single-family homes, and the City’s commitment to solving the stormwater flooding, infrastructure and public amenity improvements indicate that a reversal of fortune is possible. The primary functions of the zone will be to support: • Roads and wayfinding infrastructure • Parks and community center improvements • Public restroom improvements • Drainage improvements • Demolition of blighted structures • Parking Structure The zone is expected to be one of a variety of planned funding sources and programs that will be acting in concert to accomplish a transformed public environment in North Beach. By improving and maintaining public spaces with a high level of service, plus increasing density through parking structure, the zone and the other programs will encourage the development of new land uses and the redevelopment or rehabilitation of existing uses. The intended result is that North Beach will become a vibrant and economically vital urban waterfront district with a variety of tourist, entertainment, residential, retail, and lodging uses, sending a strong first impression to nearly 1 million annual visitors to Corpus Christi. DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas 3 | P a g e PROJECT PLAN Existing Uses and Conditions / Boundaries §311.011(b)(1) The Zone includes approximately 435.3 acres wholly within the City of Corpus Christi. Its boundaries encompass all of the North Beach area east of the Port of Corpus Christi land, as shown in Exhibit A. A variety of land uses, shown in maps in Exhibit B and described generally below, are present within the proposed TIRZ. A legal description of the Zone is given in Exhibit C. The Texas State Aquarium and the USS Lexington, in the southern area of North Beach, draw more than 800,000 tourists and visitors annually, combined. Removing the Burleson exit leaves only one northbound exit from the new Harbor Bridge, impacting accessibility to these two heavily visited attractions. To the north, the zone transitions to an area of tourist retail, restaurants, hotels, vacant buildings and unimproved land. The beach runs along the eastern portion of the zone. Further north along the beach are multi-story condominiums, city owned Surfside Park, a small number of single-family homes, and a popular city park, Dolphin Park. If funding is determined to be appropriate and TIRZ and City Council choose to fund them, the off shore area allows for the potential inclusion of breakwater barriers. Central North Beach has a linear right of way, formerly a rail easement, owned by the City of Corpus Christi. Timon and Surfside Boulevards run along its edges, acting as a main thoroughfare through North Beach. This right of way is the location of a proposed drainage solution, a canal to mitigate extensive flooding that occurs with even light rain. This North Beach drainage solution will improve stormwater flow, thereby bringing public safety response times within an adequate range and allowing travel during rain events. Residents in the northwest portion of North Beach often experience difficulty making the turnaround at the north end of North Beach under the causeway due to flooding. The new Harbor Bridge, TxDOT and the Port of Corpus Christi border the zone to the west. Exhibit A ‐ Zone Boundaries DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Exhibit B.1: Existing Uses Throughout the Zone DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Exhibit B.2 DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Exhibit B.3 DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Exhibit C ‐ Legal Description of the Zone DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Municipal Ordinances §311.011(b)(2) The City is not contemplating any specific changes to municipal ordinances as part of any projects to be undertaken by the Zone. DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas City Planned Improvements (Non‐Project Costs) §311.011(b)(3) It is expected that the City, Nueces County, TxDOT, and other public agencies will participate in the rehabilitation of existing and development of new public facilities and infrastructure within the Zone. In addition, various nonprofit organizations, private citizens and developers may also consider efforts to remediate environmental and safety deficiencies on existing private properties. The City of Corpus Christi has identified about $11,882,989 million in projects planned for locations partly or wholly within the Zone intended to rehabilitate and improve existing public facilities and infrastructure. TIRZ funds may be used to assist these projects; however, the bulk of funding is anticipated to come from other sources. The table below lists some of these projects. Note: Amounts may not add perfectly due to rounding Current City Planned Improvements (Non‐Project Costs) Project Source Status Projected Cost Gas US 181 at Burleson Due to conflicts with the new bridge construction there will be 860 feet of 6” steel gas line replacement located in the Burleson St. and US181 intersection. Rev Bond Complete $557,788 Breakwater Ave.. at W Causeway Blvd. Due to conflicts with the new bridge construction there will be 425 feet of 2” steel gas line replacement located in the East Causeway Blvd. and Plum St. area. Rev Bond Complete $202,883 Streets North Beach Area Road Improvements & Area Beautification Includes pavement restoration to North Shoreline Boulevard, new wastewater and water lines on North Shoreline Boulevard, and cleaning existing stormwater and wastewater pipes and manholes on Breakwater Avenue and Coastal Avenue. Bond 2012 Streets Storm Water Wastewater Water Substantially Complete $801,500 North Beach Breakwater Plaza, North Shoreline Repair and Enhancement Includes new curb and gutter, sidewalks, ADA ramps, markings, signage, seating, on-street parking enhancements and illumination improvements to North Shoreline Boulevard. Improvements also include a paved surface to Breakwater Plaza and cleaning existing stormwater pipes and manholes on North Shoreline Boulevard. Bond 2012 Substantially Complete $1,623,900 Beach Avenue (E. Causeway Blvd. to Dead End at Gulfbreeze Blvd.) Reconstruction of existing 2-lane roadway with new pavement, curb & gutter, sidewalks, ADA compliant curb ramps, signage, pavement markings and illumination. Includes bike mobility improvements per the adopted MPO bicycle mobility plan and approved in North Beach Area Plan. Bond 2018 In planning phase $1,000,000 N. Beach Area Primary Access (Beach & Timon/Surfside Intersection) Design and construction of a new curved access road from E. Causeway Blvd. onto Timon Blvd. with a new traffic circle at intersection of Timon/Surfside and Beach roads. Provides a new Bond 2018 In planning phase $1,250,000 DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Relocation §311.011(b)(4) No relocation of existing residents is anticipated to be required as a result of the Zone’s projects. route for the single access road into North Beach from the new Harbor Bridge. Traffic circle connects Timon/Surfside and Beach and converts Beach Avenue to one-way from Surfside to E. Causeway Blvd. New Traffic circle also allows development of new gateway feature for the entry into North Beach approved in the North Beach Area Plan. N. Beach Gulfspray Ave. Pedestrian/Bike Access (Beach Access to E. Causeway Blvd.) Pedestrian and bicycle infrastructure improvements to create a new train for improved access from Harbor Bridge and the beach approved in the North Beach Area Plan. Bond 2018 In planning phase $300,000 N. Beach Coastal Protection (Breakwater Barrier) Preliminary engineering and permitting with USACE, GLO, Port of Corpus Christi and other agencies for the design and construction of new breakwater barriers to mitigate beach erosion and coastal flooding as approved in the North Beach Area Plan. Bond 2018 In planning phase $250,000 Water US 181-Beach Ave to Elm St Due to conflicts with the new bridge construction there will be 3000 feet of 12” waterline replacement, 600 feet of 16” waterline replacement and 800 feet of 6” waterline replacement to maintain water quality. The work is concentrated on the east side of US181 between Reef Ave. and Burleson St. Rev Bond 90% complete by TxDOT $3,715,322 Breakwater- W. Causeway Blvd Due to conflicts with the new bridge construction there will be 500 feet of 12” waterline replacement to maintain water quality. The work is located on Breakwater Ave. between Avenue F and East Causeway Blvd. Rev Bond 90% complete by TxDOT $1,021,191 Wastewater Due to conflicts with the new bridge construction there will be 500 feet of 4” wastewater force main replacement and abandonment of a total of 1000 feet of 6” and 8” gravity sewer main. This work is located west side of the existing US181 between Burleson St. and Avenue F. US 181 at Plum St. Rev Bond 90% complete by TxDOT $201,649 US 181 at E Walnut St Rev Bond 90% complete by TxDOT $446,815 Burleson St from US 181 SBFR to Seagull Rev Bond 90% complete by TxDOT $411,941 Parks and Recreation North Beach Historic Plaza Placement and installation of a series of historical panels in North Beach plaza currently being constructed as part of Bond 2012. Hotel Occupancy Tax Dec 2019 $100,000 Total $11,882,989 DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas REINVESTMENT ZONE FINANCING PLAN Estimated Project Cost Description §311.011(c)(1) and Kind, Number, and Location of TIRZ Improvements §311.011(c)(2) The Zone is anticipated to engage in projects that will support the types of development and economic activity projected in the DAPD Residential Market Analysis (Appendix A) as well as contribute to the image and attractiveness of North Beach Corpus Christi on a local, regional, and national level. In addition, the Zone will pay the costs of Zone creation and ongoing administration. The following project cost estimates are derived from similar types of projects and should not be construed as definitive costs for the listed projects. PUBLIC IMPROVEMENTS, FACILITIES, AND INFRASTRUCTURE (not listed in priority order) 1. Wayfinding Infrastructure – $3,000,000 The Zone may participate in proposed construction of a gateway feature with wayfinding throughout North Beach. It may also build multi-use paths to major tourists destinations. 2. Park Improvements – $4,000,000 The Zone may contribute to enhancements to Dolphin Park, Surfside Park, and Kiwanis and construct a North Beach birding park (Eco Park). 3. Demolition of Blighted Structures – $2,000,000 Many older vacant or underutilized buildings within the Zone are not economically feasible to reuse because they contain environmentally undesirable or unsafe elements that present a public safety hazard. The Zone may provide assistance to property owners and developers who must remediate or demolish such structures in order to develop or redevelop. 4. Public Safety – $2,500,000 With the purpose of increasing safety and security within the Zone, the Zone will provide support for security cameras and associated costs. 5. North Beach Public Spaces Beautification & Revitalization Programs & Services - $1,735,556 The Zone may contribute five percent of the total incremental ad valorem taxes collected per year in the Zone to beautification projects including the creation of or enhancements to common areas, roadway & median streetscapes, pedestrian landscapes, beach beautification, public fountains, wayfinding signage, lighting, public facilities and any services relating to such program. In addition, any City funding currently and annually appropriated to maintain North Beach, could be used by the Zone for this intended use pending a full and thorough evaluation via a Request for Proposal process. DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas 6. North Beach Parking Structure Initiative– $10,000,000 With the purpose of increasing density and maximizing land availability on North Beach, the Zone will provide support for parking structure(s) in key location(s) where parking is undersupplied or inadequately distributed. In order to encourage the building of public access off street and concealed parking infrastructure ahead of the economic growth generated by New Developments, the Zone will establish a grant that will provide up to a $25,000 per built parking space reimbursement for any New Developments containing a concealed or enclosed parking structure comprising at least 20 parking spaces, with at least 22% of such spaces, on property, accessible to the public. The maximum value of this grant will be $10,000,000. Each applicant will have preference to receive reimbursement equal to ninety-five (95) percent of the cumulative, incremental ad valorem taxes generated by all new projects on North Beach at least 75% commonly owned by applicant(s) and served by the parking structure. Reimbursements will be paid to recipients annually until the total incentive amount is met or up to the end date of the tax increment collection. 7. Project Specific Development Agreement- pending available funding In situations where higher development costs create a financing gap, TIRZ #4 can provide assistance to property owners or developers through a Development Agreement for reimbursement of net new tax increment on new developments. The total reimbursement by the TIRZ #4 will not exceed 20% of the total project cost. A pro-forma is required to qualify for up to 75% reimbursement of the new taxes for 10 years if a development is 5,000 sq. ft or creating 25 or more new residential units. If further gap exists, staff will undertake additional third-party review to justify any additional reimbursement up to 95% of the qualifying tax increment, based on the “but, for” principle. The qualifying cost elements for this Program include: • Environmental Remediation/Code Compliance • Historic Preservation • Structured Parking, including availability for public parking • Urban Design/Landscaping • Public Improvements/Utilities 8. North Beach Property Improvement Program – $4,000,000 This grant will support and encourage private investment in the existing structures and facilities already built on North Beach. The Zone will match approved property improvements funded by the property owners. The Zone will consider a match of 50/50 (Property Owner / Zone), depending upon the extent to which the scope of the project meets the priorities of the Zone. The maximum amount of Grants to be paid to property owners under this program will be $200,000 annually. 9. North Beach Living Initiative– $4,000,000 In order to stimulate the development of North Beach and quickly build residential density in the area, the Zone will establish a grant that will provide a $10,000 per unit reimbursement for multi-family developments of over 10 units. Any applicant awarded a grant must obtain a Building Permit for the entirety of such project(s) within six (6) months of award of such grant. If a Building Permit is not obtained within the six -month time period, then the grant will be forfeited. DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas 10. Residential Streets- $797,431 In November 2016, the voters approved a Charter Revision to Article VIII. Taxation and Bonds, Section 1. Taxation of the City’s Charter which authorized the City Council to levy, assess and collect a property tax not to exceed six cents per $100 valuation for residential street reconstruction to be gradually implemented at a rate not to exceed two cents per $100 valuation per year (ie. 2+2+2 = 6 cents). The City Council exercised that authority in FY 2018 and in FY 2019. The additional four cents must be used for residential streets as approved by the residents of Corpus Christi on November 8, 2016. City Charter Art. VIII, Sec. 1(c): (c) A dedicated fund to be used solely for residential street reconstruction is established, and the city council is authorized each year to levy, assess and collect a property tax not to exceed six cents ($0.06) per one hundred dollars ($100.00) of assessed value for the purpose of residential street reconstruction to be deposited in such fund. Said taxes shall be used solely for the purpose of residential street reconstruction, including associated architectural, engineering and utility costs, and shall be implemented gradually at a rate not to exceed two cents ($0.02) per one hundred dollars ($100.00) of assessed value per year. For the purposes of this provision, the term "reconstruction" is defined as removing all or a significant portion of the pavement material and replacing it with new or recycled materials. The dedicated fund established by this subsection (c) may not be used for payment of debt service. ADMINISTRATIVE COSTS 11. Creation – $250,000 The Zone may reimburse the City for expenses related to the costs of creating the Zone. 12. Administration – $2,000,000 Zone funds may pay for the City’s costs of ongoing administration of the Zone, including but not limited to accounting, legal services, document production and maintenance, and other administrative costs. These costs are estimated at $100,000 per year for the 20‐year life of the Zone. The Project Costs are estimated as follows: Public improvements, facilities, and infrastructure $32,282,987 Administrative costs $2,000,000 TOTAL $ 34,282,987 DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Economic Feasibility Study §311.011(c)(3) Several market and economic feasibility studies for the Zone have been completed. The MJB Consulting “Retail Market Analysis and Strategy” and the Zimmerman/Volk Associates “Office, Retail, and Hotel Market Assessment” are provided under separate cover. In addition, a feasibility analysis by Landmark Renewal was completed in August 2019, which is also included in Appendix A to this Plan. Estimate of Bonded Indebtedness §311.011(c)(4) It is not initially anticipated that the Zone will issue bonded debt; instead the Zone’s projects will be funded on a pay‐as‐you‐go basis or utilize other financing methods. However, if the annual Zone revenue and available non‐bonded debt financing are insufficient to address the needs of the Zone, the Zone may issue bonded debt commensurate with the specific project costs under consideration and anticipated annual Zone revenues to support debt service payments. Timing of Incurring Costs or Monetary Obligation §311.011(c)(5) Costs will be incurred over the life of the Zone based on its Board of Directors’ identification of priority activities and projects, opportunities for implementation, and available revenues to sustain a pay‐as-you‐ go project expenditure approach or a bonded debt issuance. Method of Financing and Sources of Revenue §311.011(c)(6) Methods of financing. The Zone will initially take a pay‐as‐you‐go approach to financing projects that could utilize the following methods: • Cash funds generated from existing property value increment, • Short term anticipation notes or other debt issued by private financial institutions based on projected property tax increment to be generated from taxable development under construction at the time o f debt issuance, and • Developer cash reimbursement agreements where the revenues from the Zone’s property tax increment compensate a developer for fronting eligible expenditures in a specific taxable project after the project is completed. If future Zone revenues to support debt service payments are anticipated, the Zone may also issue bonded debt, the term of which will not extend past the expected life of the Zone. Sources of revenue. The primary source of revenue for the Zone will be funds from the contributed property tax collections of the City of Corpus Christi and Nueces County on the taxable property value increment within the Zone. It is currently projected that the County will agree to participate in funding the Zone with 100% of the incremental property taxes collected over the life of the Zone and that the City will participate in the funding of the Zone based on the table below. If the City reaches or exceeds $25 million, then the City shall cease contributions to the increment. DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas TABLE- TIRZ Contributions Taxing Entity Maximum Dollar Contribution Increment Percentage Tax Year(s) City of Corpus Christi $20,000,000 100% 2019 through 2028 75% 2029 through 2038 Nueces County None 100% 2019 through 2038 The assessed value base year for the City of Corpus Christi is 2019; the base year for Nueces County is also projected to be 2019. Based upon 2018 tax rates for each jurisdiction, the projection of incremental property tax revenue contributed to the Zone is as follows: Certified Appraised Values Base value is from 2019 (January 1, 2019) taxable appraised value. Values in future years are based on current development projections. Net Taxable Values from the Certified Roll 2019 (*with estimated development) 3% Fiscal Year Tax Year Values City County Total City Scaled County County 100% City Scaled FY 20 2019 60,689,500 392,214 189,101 581,316 FY 21 2020 62,510,185 403,981 194,774 598,755 11,766 5,673 17,439 FY 22 2021 64,385,491 416,100 200,617 616,718 23,886 11,516 35,402 FY 23 2022* 140,317,055 906,819 437,211 1,344,030 514,604 248,110 762,714 FY 24 2023 144,526,567 934,023 450,327 1,384,351 541,809 261,226 803,035 FY 25 2024* 187,362,364 1,210,856 583,799 1,794,654 818,641 394,697 1,213,339 FY 26 2025 200,708,235 1,297,105 625,383 1,922,488 904,891 436,282 1,341,172 FY 27 2026 214,686,232 1,387,440 668,937 2,056,376 995,225 479,835 1,475,061 FY 28 2027 229,322,271 1,482,027 714,541 2,196,568 1,089,813 525,439 1,615,252 FY 29 2028 244,643,256 1,581,041 762,279 2,343,320 1,188,827 573,178 1,762,005 FY 30 2029 260,677,109 1,684,662 812,239 2,496,901 969,336 623,137 1,592,473 FY 31 2030 277,452,814 1,793,078 864,510 2,657,587 1,050,647 675,408 1,726,056 FY 32 2031 295,000,453 1,906,482 919,186 2,825,668 1,135,701 730,085 1,865,785 FY 33 2032 313,351,242 2,025,076 976,365 3,001,441 1,224,646 787,264 2,011,910 FY 34 2033 332,537,578 2,149,071 1,036,147 3,185,218 1,317,642 847,046 2,164,688 FY 35 2034 352,593,078 2,278,682 1,098,638 3,377,320 1,414,851 909,537 2,324,387 FY 36 2035 373,552,625 2,414,136 1,163,945 3,578,081 1,516,441 974,844 2,491,285 FY 37 2036 395,452,410 2,555,667 1,232,182 3,787,849 1,622,589 1,043,081 2,665,670 FY 38 2037 418,329,985 2,703,516 1,303,466 4,006,982 1,733,476 1,114,365 2,847,841 FY 39 2038 442,224,308 2,857,936 1,377,918 4,235,854 1,849,292 1,188,817 3,038,108 32,379,912 15,611,564 47,991,477 19,924,084 11,829,540 31,753,624 TOTALS Year Tax Revenue Tax Increment Total DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas According to these projections, 63% of the tax increment revenues will come from the City of Corpus Christi and 37% will come from Nueces County. Revenue estimates will be monitored and adjusted annually. The 2019 tax rate applicable to the reinvestment zone is $0.957852 (or approximately $0.96) per $100 of assessed valuation, broken down as follows: City of Corpus Christi 0.646264 Nueces County 0.311588 Total 0.957852 Applying the 2019 tax rate of $0.957852 per $100 assessed valuation to the 2019 total certified roll taxable value of properties within the zone, property taxes of $581,316 are generated. This amount produced from the tax increment base (or the “frozen base”) will continue to be allocated and paid to the taxing entities levying taxes in the zone area, based on their respective tax rates. Zone property tax contributions from the participating tax jurisdictions could be supplemented with other sources of revenue as available. These could include but are not limited to: • Grants from other local, state, and federal agencies; • Grants from private entities such as foundations; and • Joint implementation and funding agreements with other public agencies or private entities such as civic associations for specific projects. Current Appraised Value §311.011(c)(7) According to the Nueces County Appraisal District, the 2019 certified roll total assessed value for the Zone as of July 26, 2019 is $64,724,132. Due to differences in policies regarding exemptions and tax abatements, the net taxable values differ among the two jurisdictions. According to the Nueces County Appraisal District, the 2019 certified roll net taxable value for the Zone as of July 26, 2019 is $60,689,500 for the City of Corpus Christi and $59,657,026 for Nueces County. Estimated Captured Appraised Value §311.011(c)(8) The table above provides the projected schedule of taxable value increment captured by the Zone over its proposed 20‐year duration. There is a column shown for each entity. Captured value projections assume a 3.0% annual value appreciation rate for existing development. In year 2022, the development currently underway on North Beach, LaVista Pointe Apartments, will be complete with an estimated future property value increase of $24 million. Additionally, there are other developments planned throughout the zone with a combined projected increase in value of $105 million. Based on calculations in the TIRZ # 4 Feasibility Analysis, beginning in 2024 and continuing throughout the remaining life of the Zone, 22 apartment units valued at $150,000 each and 12 condominium or townhome units valued at $300,000 each, are projected to be added to the tax rolls each year. The per unit amounts are adjusted for inflation at 3% per year. The tax increment is the amount of property taxes produced yearly during the term of the reinvestment zone on the captured appraised value. This value is the appraised value of taxable real property within DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas the reinvestment zone which exceeds the tax increment base. The table above shows estimated TIRZ revenues over the 20 life of the zone to be as follows: City of Corpus Christi: $19,924,084 Nueces County: $12,351,108 Total $31,753,624 Duration of the Zone §311.011(c)(9) The proposed duration of the Zone is twenty years from the time of its creation. Assuming creation in 2019, the Zone would expire after 2038. City Council may, by ordinance, extend the length of the TIRZ to allow additional time to expend funds. DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Appendix A – Economic Feasibility Analysis Appendices Appendix A – Economic Feasibility Study §311.011(c)(3) Feasibility Analysis Tax Increment Reinvestment Zone # 4 North Beach Area City of Corpus Christi, Texas August 2019 Jim Johnson, PhD Landmark Renewal DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Appendix A- Economic Feasibility Analysis I. Introduction The North Beach area of Corpus Christi, Texas, already a leading tourist destination with 800,000 visitors annually, is primed for accelerated redevelopment upon completion of the new Harbor Bridge and demolition of the old bridge. A number of planning processes have focused on the area, producing a wealth of reports including: • North Beach Development Plan (November 2011) - NBDP • Zimmerman Volk Associates: Residential Market Potential (October 2014) - ZVA • North Beach Redevelopment Area Specific Plan (February 2018) - NBRA • Downtown Area Development Plan, Corpus Christi (March 2018) - DADP In addition, the Market and Economic Feasibility Study Update for TIRZ # 2 (July 2019), contains a detailed residential, retail and hotel development analysis of the Corpus Christi metropolitan statistical area (MSA) applicable in part to North Beach. The feasibility of a tax increment reinvestment zone (TIRZ) depends on whether tax increment stimulated by TIRZ improvements will cover the costs of those improvements, leaving local tax jurisdictions better off at termination of the TIRZ than they would be without a TIRZ. While some new development would occur regardless, establishing the zone provides a revenue source for public improvements that can spur additional and more intensive development than would otherwise occur. The year in which a TIRZ is established becomes its base year, with each succeeding year’s incremental tax revenues pledged to a fund controlled by the zone’s board of directors. Local taxing jurisdictions may contribute up to 100% of their tax increment. TIRZ revenues depend on: • Overall changes in property valuations; • Timing and value of new development; and • Loss of value from demolition of existing improvements. Once the zone has sufficient revenue, infrastructure improvements should coincide with and enable associated private investment (DADP, p. 26). This analysis assumes that TIRZ spending will be based on articulated stakeholder and planning priorities, such as the February 2018 North Beach Redevelopment Initiative Near-Term Projects and Mid- and Long-Term Projects lists. DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Appendix A- Economic Feasibility Analysis II. TIRZ Revenue Projection City of Corpus Christi is expected to participate at 100% for the first ten years and at 75% for the last ten years. Nueces County is expected to participate with 100% of tax increment for the full length of the TIRZ. Base year taxable values vary slightly between jurisdictions, primarily due to differing property tax exemptions offered. Exemptions on owner-occupied residential property include homestead and the over-65 tax freeze. For purposes of these projections, we assume the effect of these exemptions will be small since most existing and new development will be commercial, including multifamily, that is ineligible for these residential exemptions. The aggregate value of single family residential property tax exemptions changes slowly over time. We assume no effect from commercial property tax abatements that could be offered by participating jurisdictions. The following projections of TIRZ revenue are based on the following assumptions: • 3% annual growth in taxable property valuations • Completion of a $24 million apartment complex, LaVista Pointe, in 2022 • New residential development in North Beach equivalent to 22 new apartment units and 12 new condominium or townhome units per year beginning in 2024 Prudence requires a conservative bias in revenue assumptions so that TIRZ spending can be reasonably planned. There is no assumption of added taxable value from retail/commercial or hotel/hospitality/tourism-related new development, despite a reasonable possibility of such investments. According to ZVA (p. 42), the residential “market is constrained in North Beach due to the additional cost of development incurred by flooding issues.” In the five years since the ZVA report, no multifamily residential development has been completed. The TIRZ revenue forecast assumes that a flooding mitigation solution, such as the proposed canal (NBRI Alternative 2), is devised and implemented by the City of Corpus Christi within the next five years. While drainage improvements are unlikely to erase the additional costs of development in North Beach, it should substantially ease that market constraint, making the ZVA residential projections for North Beach realizable in the future. LaVista Pointe, a 150-unit apartment complex, is planned for completion around 2022. ZVA projects North Beach annual residential absorption over a 10-year period of 44-53 apartment units and 26-31 condominium and townhome units. Taking a middle point of those projections, or 48 apartment units DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Appendix A- Economic Feasibility Analysis and 28 condo/townhome units, times 10 years, and subtracting the 150 completed apartment units, results in a projection of 330 additional apartment units and 280 new condo/townhome units after 2024. This analysis assumes that tax revenue from these units is, conservatively, spread over a 15-year period beginning in 2024, after LaVista Pointe has likely reached stabilized occupancy. Apartments are estimated at $150,000 per unit and condos and townhomes at $350,000 at the beginning of the 15-year period, with 3% inflation for new construction in each succeeding year. The 2024 per unit values discounted back to 2019 values at 3% per year equal about $129,000 per apartment unit and $300,000 per condo/townhome unit. While the TIRZ revenue forecast involves no additional retail or hotel development, TIRZ infrastructure should make high intensity tourism-oriented development appealing to the private sector. In particular, TIRZ infrastructure, a canal or other drainage solution, and right of way opened up by demolition of old the Harbor Bridge ramps, together should enable the transformative potential of high-density mixed-use development and structured parking near existing tourist attractions and associated parking needs (DADP, p. 87). “Opportunities here could include hotels, other tourism-related uses, and surface parking serving the beach and other visitor destinations.” (DADP, p. 85) III. TIRZ Projects, Costs and Timing The proposed TIRZ project list is derived from the planning documents listed above and stakeholder input. Project costs are estimates derived from similar types of projects, and therefore should not be construed as definitive costs for the listed projects. The TIRZ Project Plan should contain cost estimates in categories of spending rather than for specific projects, which over the 20-year life of the zone may change conceptually and in terms of scope and extent. Among recommendations of the DADP are the following: • Restore street connections where old Harbor Bridge is removed, and provide “convenient, attractive access at Beach Ave. connecting to Surfside and Timon Blvd.” (p. 32) • Build a “new multi-use path extending along Beach Ave. to the Beachwalk, and along Timon and Surfside Blvd. to the Texas State Aquarium ferry dock.” (p. 36) • “Complete North Beach birding park and Timon/Surfside path within 5 years.” (p. 36) • “Create a welcoming Beach Ave. gateway at the new point of entry to North Beach off the Harbor Bridge.” (p. 86) DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Appendix A- Economic Feasibility Analysis • “A new ‘North Beach Blvd.’ should also be created through the redesign of existing Timon and Surfside Blvd. with street upgrades, a new wide multi-purpose path for pedestrians and bicyclists…and planting the center median with a rich palette of native, coastal plant species.” (p. 86) The North Beach TIRZ should include the following project categories: Roads and wayfinding • Beach Ave. roadway/pedestrian improvements and area beautification • Construction of Traffic Circle at the intersection of Beach Ave. with Surfside Blvd. and Timon Blvd. including gateway feature with wayfinding Parks • Dolphin Park improvements • Surfside Park improvements • Kiwanis Park and Community Center improvements Other infrastructure Demolition of blighted structures Structured parking DRAFT TIFTIRZ #4 ‐ Preliminary Project Plan and Reinvestment Zone Financing Plan Corpus Christi, Texas Appendix A- Economic Feasibility Analysis Cumulative revenue is projected as follows: TIRZ spending could begin as early as 2022 on modest improvements, but assuming a pay-as-you-go structure, major infrastructure spending would have to wait at least until approximately $2.8 million had been accumulated in 2024. A parking structure would have to wait until near the end of the TIRZ lifetime, unless a private developer could be induced to build a garage in a public-private partnership earlier than that. With the opportunity of vacated ROW from the demolished Harbor Bridge ramps, such a partnership is feasible, perhaps in conjunction with an on-street meter parking policy as envisioned by the DADP (p. 28). . Fiscal Year Tax Year Annual Cumulative FY 20 2019 FY 21 2020 17,439 17,439 FY 22 2021 35,402 52,842 FY 23 2022 762,714 815,556 FY 24 2023 803,035 1,618,591 FY 25 2024 1,213,339 2,831,929 FY 26 2025 1,341,172 4,173,102 FY 27 2026 1,475,061 5,648,162 FY 28 2027 1,615,252 7,263,415 FY 29 2028 1,762,005 9,025,419 FY 30 2029 1,592,473 10,617,893 FY 31 2030 1,726,056 12,343,949 FY 32 2031 1,865,785 14,209,734 FY 33 2032 2,011,910 16,221,644 FY 34 2033 2,164,688 18,386,332 FY 35 2034 2,324,387 20,710,720 FY 36 2035 2,491,285 23,202,005 FY 37 2036 2,665,670 25,867,675 FY 38 2037 2,847,841 28,715,516 FY 39 2038 3,038,108 31,753,624 Year Revenue DRAFT Resort/Marina/Hotel/Condominium Protected water area with great views. Other uses could include docks and boat ramps, boat storage, fueling for boaters and restaurants. Harbor Market and Plaza Small shops with an attractive pedestrian walkway between each city block. An ideal location for public plazas, public art, music stage and outdoor seating and eating areas. A participatory public water feature to wash of the beach sand for beach goers would complete the area. Texas State Aquarium USS Lexington Mu-High Impact Tourist Uses / Service Uses Great location for a casino, major theme park, or some other high impact tourist oriented use. Also a location for service commercial uses that benefit the overall destination theme of the area. Services uses could include off-site parking facilities, parking garage, bars, restaurants, rental shops, or other uses. Timon / 181 Corridor Incremental development with commercial uses gradually reducing intensity away from the highway. However, if a large tract could be acquired, the area could be the site of a large master planned development. Potential uses could be: Mixed use commercial and residential development; Theme park; Regional multi-field soccer complex; High quality RV site for 200 to 400 RV pads to attract a large visitor community; Casino development, if permitted by State Law. The Beachwalk ADA Kayak Launch Site Hotel Hotel A unique opportunity for birding trails and wetlands enhancement Per Texas Local Government Code, Chapter § 219.005: "A comprehensive plan shall not constitute zoning regulations or establish zoning district boundaries." 25+ Acre Redevelopment Site This site occupies a strategic location for potential high impact tourist oriented uses and is one of the few properties on North Beach with significant acreage under one ownership. High impact uses could include a theme park, casino, etc. The Pavilion RV Park and Bait Stand The RV Park and the Bait Shop / boat ramp are in need of redevelopment. The City should work with the operators to encourage improvement of both properties. Cargo Dock 9 Parking Adopt a Specific Implementation Plan for Dolphin Park Include several visitor and family oriented recreational themes including an ADA Adventure Park for those with special needs, a beach theme, and an ecotourism theme. Each of these themes should include active and passive recreational uses. Birding Educational Trail Create a birding educational trail with information on birds, plants, and the “must see” birding sites throughout the region. Pursue designation as a State Birding Center. North Beach Fishing Piers and Lighthouse The existing and proposed breakwater facilities will reduce erosion and capture sand for a new beach. The two breakwater facilities will also create a protected water area for kayaking, sailing classes, snorkeling, etc. Each facility should contain an ADA accessible sidewalk, safety railing and lighting. Public walkways of the highest caliber creates its own destination. Paradise Landing and Observation Platform In the early 20th century a major feature of North Beach was Paradise Fishing Pier. Placing the landing opposite Surfside Park creates a dramatic destination for residents and visitors. Attractions could include a ferris wheel, saltwater pool, educational signage for bay fishing, and restaurant. Water Taxi Dock Opportunity The Water Taxi dock should be placed as near to shore as is practical to reduce walk time to the taxi. High Density Tourist Oriented Development High density hotel / condominium uses and / or large tourist commercial and retail uses. The ideal complement to the existing destinations would be a Casino Resort use if allowed by State Law. Potential New Harbor Bridge Location Water Taxi Docking Connectivity is vital to both sides of the ship channel entertainment and convention center complex. Beachside Neighborhood Cozy walkable residential neighborhood to include single/multi -family, cottages, townhomes, row houses and bed / breakfast businesses. Architectural and design incentives to create an intimate, resort-inspired, tourist/residential community. North Pelican Beach Market Pavilion Food concession, water craft rental, and beach weekend market. FEMA flood elevation requirements to elevate structures to at least 13 feet MSL create a need for elevated public walkways. Elevated walkways to connect commercial areas with parking and public plazas at ground level would provide a wonderful backstop to Corpus Christi Bay, the USS Lexington and the Texas State Aquarium. North Shoreline Redesign to make more efficient use of the right-of- way to allow for wider sidewalks, landscaping, outdoor seating and more on street parking. Establish plaza areas at the entrance to the Aquarium and the Lexington. Remove parking from the Breakwater dead-end street and create an attractive entrance to a seaside walk on the breakwater structure. Offsite Beach Parking Overflow & Staging Area Surfside Park Create a recreational beach theme for family events such as weddings and reunions. Add a modern attractive shelter, lush landscaping, new restrooms, and participatory water feature. Pedestrian Plazas Potential Site for Cruise Ship Dock - improvements to the breakwater structure Financing and Implementation Grants, bond programs and innovative public private partnerships to achieve development of the park should be aggressively pursued. September 2011 Recreational Vehicle Park - RV RV Research/Business Park –RBP RBP High Density Res.—HDR Med Density Res.—MDR Beachside Residential—BR Includes B & B* Estate Residential—ER Beach Mixed Use Hotel, Motel, B & B (Neighborhood Business & Residential) Commercial—COM Tourist—TOR Light Industrial—LI Heavy Industrial—HI Public Semi-Public—PSP Park Public Open Space Drainage Corridor—DC Dredge Placement—DP Conservation Preservation—CP Wetlands Water General Shoreline *Bed & Breakfast Future Land Use Transportation Plan Proposed Marina North Beach Development Plan November 2011 Exhibit C NORTH BEACH DEVELOPMENT PLAN INTRODUCTION The North Beach Development Plan is an element of the Comprehensive Plan and a more specific supplement to the City’s adopted Future Land Use Plan. This plan replaces the North Central Area Development adopted in 1990 and later amended in 1995. The purpose of the Corpus Christi Development Plan is to provide a vision for City Council decisions concerning rezoning, capital improvement projects, legislative goals, and funding strategies. The plan is intended to send a clear message to residents, property owners, potential property owners, the Port of Corpus Christi, the County and any other agencies with an interest in North Beach regarding the City’s high priority for development of North Beach. The land uses displayed in the plan are adopted as required by the City’s Charter. The inset pictures, text explanations and map annotations on the Future Land Use Plan Map are provided as examples or concepts of potential development and to assist in communicating a desirable “Vision” for the future. STATE ENABLING AUTHORITY Chapter §219 of the Texas Local Government Code authorizes a municipality to create a Comprehensive Plan “…. for the purpose of promoting sound development of municipalities and promoting public health, safety, and welfare.” Chapter §219 authorizes a municipality, without limitation, to address future land, transportation, public facilities or other topics in the Comprehensive Plan. Before the governing body of a municipality may adopt a Comprehensive Plan, the City Planning Commission must conduct at least one public hearing, provide comments and a recommendation to City Council. The City Council must also conduct at least one public hearing for citizen comments before adopting the plan. HISTORY North Beach has had a colorful history from the mid-1800s during the Mexican-American War to modern day as a key destination for visitors to Corpus Christi. On August 1, 1845, Zachary Taylor set up camp for 4,000 soldiers, half of the US Army at the time, on North Beach. After the war, North Beach became a point of departure for Forty-niners headed for the California gold rush. During the early 1900s North Beach was connected to the downtown by a small street car line. In 1913, the North Beach Hotel was purchased by the government for use as a convalescent hospital for World War I soldiers. The hospital survived the 1919 hurricane and was later sold in 1927 and once again became a hotel, this time named “The Breakers”. In 1939, the City was chosen as the site of a new naval air station and many of the transient workers for constructing the naval base set up camp on North Beach. From the 1900s through the end of WWII North Beach had become a thriving tourist destination complete with Paradise Pier, a roller coaster and a ferris wheel. However, repeated hurricane impacts, especially the hurricanes of 1919 and a series of hurricanes from 1961 to 1970 (Carla, 1961; Beulah, 1967 and Celia, 1970) either destroyed the tourist facilities or put them in a severe state of decline. In the 1980s the City took action to stem the decline by establishing North Beach as the site for the Texas State Aquarium. In 1990, the Texas State Aquarium opened with over 400,000 visitors in its first year. Two years later the USS Lexington opened with over 350,000 visitors. The Beach, The Aquarium and the USS Lexington continue to be three of the premier destinations for visitors to the area. PLAN AREA DESCRIPTION Approximately 453 acres of land and water bounded on the north by the Corpus Christi City limits/ Nueces Bay, on the east by Corpus Christi Bay, on the south by the north side of Corpus Christi Ship Channel, and on the west by the Port of Corpus Christi Herbie A. Maurer Material Placement Area and the existing city limits. EXISTING CONDITIONS POPULATION AND HOUSING CHARACTERISTICS EXISTING LAND USE With a total area of 436 acres, the North Beach area is the smallest by far of all of the City’s planning areas. The amount of right-of-way at 29% of all the land is not so much different then most fully developed areas where right-of-way is usually about 25% of the total. Still, the amount of right-of- way, suggests that the City should be receptive to requests for right-of-way closure on a case by case basis, especially where a closure may allow for economic or park development and where there is not a significant impact on beach access. Closure of any of the roadways the direct traffic to the City’s on beach parking should be construed as having a significant impact on beach access. Very little industrial uses such as warehousing and manufacturing exist on North Beach and wherever possible industrial uses should be discouraged or prohibited. The City’s Zoning Ordinance defines out- door amusements as industrial uses but such uses should not be prohibited from North Beach and, except for the City’s Zoning Ordinance, are generally not considered “industrial uses”. ZONING The North Beach Area zoning is primarily intended to promote tourist oriented development with some permanent residential uses. The zoning districts in the area include: CG-2 General Commercial District; CR-1 Resort Commercial District; CR-2 Resort Commercial District; CR-3 Resort Commercial District; RM-AT Multifamily AT; and CN-1Neighborhood Commercial District. The vast majority of property on North Beach is zoned a CR-1, CR-3, or RM-AT District. Several of these districts have a tourist or visitor orientation with higher amenities and higher density then most districts used throughout the city. In general, the Resort Commercial Districts are used in the area south of Burleson Avenue. The Resort Commercial Districts allows a wide range of tourist oriented uses with a required 20 foot landscape strip along street frontages. The Resort Commercial Districts provide a selection of tourist retail oriented uses and a provision for providing parking off-site within 2,000 feet of the use. Given the limited space available near the Aquarium, the intent is to allow parking to be provided off-site to assure the highest possible retail space density and to prevent the area from turning into a parking lot. As an aid to redevelopment and to promote pedestrian oriented development, the Resort Commercial District allowance for parking to be placed within 2,000 feet should be considered for other areas near the beach located east of Surfside Boulevard. In addition, consideration should be given to creation of an architectural overlay district to promote the beach / waterfront theme in the area. PLATTING The City Charter requires a property be platted before a building permit can be issued and essentially the entire North Beach area is platted. The entire area was part of the Brooklyn Subdivision recorded in Nueces County Court House on November 8, 1890. The plat contained two piers, including “Paradise Pier”, Mirimar Hotel site (the Aquarium site) and a proposed County Fair Grounds between Causeway Boulevard and Surfside Boulevard and south of Surfside Park. A number of replats have occurred since the initial Brooklyn Subdivision, such as the Texas State Aquarium Subdivision, recorded on April 15, 1988 and the North Beach Park Subdivision (22.361 acres of city land at the north end of North Beach), recorded February 18, 1988. The only areas not platted are those lands on both sides of Rincon Channels A and B. There are also some properties that have replatted only a portion of an original lot, thereby leaving a remainder portion that is not now part of a whole platted lot. BUILDING There are three FEMA Velocity Zone designations on North Beach which have had and will continue to have a dramatic effect on the nature of construction in the area. The Velocity Zone requires to have a finished floor elevation of 15, 13 or 12 feet depending on the North Beach location. These designations require that the first habitable floor of any structure be protected by building up, which results in single family stilt structures and commercial structures with parking located underneath the structure. BEACH MANAGEMENT North Beach is approximately one-mile long with a sandy area of about 30 acres making it the area’s single most important asset. The entire beach is open to the public with nine access points with public parking. Several of the access points have restrooms, outdoor showers and covered picnicking areas. Motorized vehicles are not allowed on the beach and a 10 foot wide concrete promenade runs the entire length of the beach from the Texas State Aquarium to the terminal groin structure at the north end of the beach. North Beach has smaller waves and very little undertow which minimizes hazards to swimmers, especially children. The one major concern with the beach is erosion. Since General Zachary camped on the beach in the 1840s, “the beach” has been known to be an eroding beach. It has been estimated that the beach, in the 1800s extended beyond where the USS Lexington is located. Currently the city has a shoreline monitoring program to monitor erosion as periodic beach re- nourishment will be needed. The terminal groin, constructed in the 1970s as part of a major beach renourishment project by the City and the State, does successfully trap some of the sand for redistribution. The last beach redistribution of sand / beach re-nourishment occurred in the early 2000s. DEVELOPMENT ISSUES Lack of multiple destinations Lack of a large permanent residential community - A small vocal residential population does exist but a larger permanent residential population would support a greater range of commercial businesses and add vitality to the area during the workweek and off-season time periods. Lack of a detailed City Master Site Plan for Surfside and Dolphin Parks Lack of agreement between the City and the Port of Corpus Christi—An agreement is needed to assure the land in the industrial district next to Rincon Channel A is developed in a manner compatible with the vision for North Beach. Heavy industrial uses and the associated noise, light, dust, and visual effects could have a negative impact on the area Beach renourishment— A plan is needed for continued maintenance and restoration. A continuous Police presence on North Beach is beneficial and essential to continued investment in the area. Quality of life crimes such as littering and graffiti are on going problems on Corpus Beach. Flooding of streets and park areas after heavy rains Dead-end water lines - Where elimination of dead-end water lines is not feasible, consideration should be given to flushing the lines by using the water for irrigation or potentially a water feature on the beach or at on the parks. Lack of water / wastewater infrastructure to support proposed development Protection of public visual access to the bay along streets accessing public parking areas Excess street right-of-way Eroding city land north of the terminal groin Protection and enhancement of existing wetlands at the north end of North Beach. Fragmented land ownership — Poses a challenge to redevelopment and destination projects. There are only three sites either on North Beach or immediately abutting the area which contain 20 or more acres of contiguously owned property by a single entity. DEVELOPMENT GOALS Create a uniquely attractive atmosphere for small and large scale visitor destination attractions Promote birding, ecotourism and ADA accessibility Design public spaces to create destinations with uniquely attractive public facilities. Target the southern half of North Beach as a location for “high impact” destinations with the north half of North Beach as a destination for “low impact” destinations. High impact destinations may have visual and noise impacts, such as a Ferris wheels, roller coaster, etc. . . Generate community pride by creating public destinations available to the citizens of Corpus Christi. Create a detailed master plan for Surfside and Dolphin Parks. These two potential assets could be the catalyst for renewed growth on North Beach. City commitment to maintaining the North Beach to the highest standard of cleanliness for public beaches. City commitment to target the area for redevelopment. PLAN POLICIES ENVIRONMENTAL Policy Statement 1: Prepare for beach renourishment. For the last 200 years, North Beach has and will continue to be an eroding beach area. The City should anticipate the future need for beach renourishment, either by gradual erosion or following a storm surge. In order to prepare for North Beach renourishment, annual beach erosion monitoring should take place. Additionally, a beach fund should be created to match state or federal grants. LAND USE AND ECONOMIC DEVELOPMENT Policy Statement 2: Promote and develop a host of community and tourist destinations for North Beach. Currently, North Beach has three major destinations including the beach, the Texas State Aquarium and the USS Lexington. Three destinations are not adequate for tourism and economic development. Proposed destinations could include: Water features Public plazas Exhibitions of public art Development: New Pier “Birding Base Camp” Pavilion/Tourist Information Center Casino Style Gambling Soccer Tournament Center Grand Beach Pavilion Beachwalk Expansion Upscale City Recreational Vehicle Park Each of these can be found on the proposed plan map. Policy Statement 3: Develop a master site plans for Dolphin and Surfside Parks consistent with the recommendations of this Area Plan. A birding/ecotourism theme should be a primary theme for Dolphin Park, while Surfside Park should be themed for beach-bound social events and water sport theme activities. A secondary theme for both parks could be Americans with Disabilities Act (ADA) compliant destinations. Policy Statement 4: The City should pursue State designation as a “Texas State Birding and Ecotourism Center.” The State designation should be for the City park at the north end of the beach. The City should then consider development of a headquarters for ecotourism activities, especially birding. Policy Statement 5: The City should rezone the North Beach area consistent with the plan, remove barriers to development and to create a tourist oriented theme. The zoning district or overlay should require new development to follow common coastal architectural themes and remove barriers to development. Residential and commercial requirements should include architectural features such as the inclusion of at least one coastal architectural element. These elements could include balconies, cupolas, or widow’s walks, etc. Commercial requirements should provide incentives for creation of plazas, outdoor seating areas, fountains, public art, shade structures or other features that build on the coastal design theme. Pedestrian oriented uses should be emphasized. Parking requirements should be altered to encourage development of buildings / destinations on beachfront property. TRANSPORTATION Policy Statement 6: TRANSIT: The City and Regional Transit Authority (RTA) should provide a seamless transit system between the north and south sides of the ship channel. Fundamental objectives are to provide transit services between the American Bank Center and North Beach to the citizens of Corpus Christi and visitors to the community. The RTA should provide the operational infrastructure for transit while the City or its public and private partners should encourage transit development by allowing development of RTA funded infrastructure were city land is available. Enhanced transit services should consist of high quality boarding and drop off facilities and include a combination of land and water transit choices. Policy Statement 7: The City should consider alternative street designs for the North Beach area. In coastal locations, standard curb and gutter designs for public streets may not be feasible due to drainage and high water table issues. However, ADA compliant sidewalks on all public streets on North Beach should continue to be one of the City’s highest priorities. INFRASTRUCTURE / PUBLIC SERVICES Policy Statement 8: RECREATION: Establish the highest possible standard of public beach maintenance. North Beach is a destination for visitors to the community. Therefore, maintenance services should be held to a higher standard than maintenance services for other areas of the City. In this area, Parks and Recreation services have the potential to add to “economic development.” Until the City can afford to implement a higher standard of maintenance, volunteer support in the form of park clean-ups should be integral or even an essential aspect of providing the service. Enhanced clean-up should be conducted prior to, during and following peak tourist holidays and vacation season. Policy Statement 9: PUBLIC EDUCATION: Initiate a public education program focusing on community pride including the elimination of quality of life crimes such as littering and graffiti. A “Crime Stoppers” style program should be implemented encouraging citizens to report littering violations. The installation of video cameras should also be considered as a littering determent method and public signage should indicate the penalties for littering. The City should continue to aggressively prosecute these crimes. Policy Statement 10: POLICE / SECURITY: Continue the neighborhood patrol program for North Beach. Police service in the North Beach area is integral to the economic success of the area. Without enhances police protection services, destinations in any community cannot thrive. Coordination between the Police, private security and the City’s Parks and Recreation Department on litter control and enforcement of vagrancy laws is critical to the success of the North Beach destination. Policy Statement 11: STORM DRAINAGE: Develop a specific Drainage Master Plan for North Beach. Evaluation of the existing system is needed to identify problem areas for drainage and recommendations for solutions. However, the only practical solutions may be to reduce or mitigate drainage problems FINANCING Policy Statement 12: BOND PROGRAMS: Obtain bond project monies for the North Beach area. The City is currently on a four year bond program cycle and scheduled for bond programs in 2012, 2016, and 2020. The North Beach Association, the Texas State Aquarium and the USS Lexington should present a united front to obtain these monies. Policy Statement 13: The City should create a Tax Increment Reinvestment Zone (TIRZ). After commitment from a major development, ranging from $25 to $50 million, the TIRD should be created. The revenues should be used for funding public improvements. Policy Statement 14: The City should consider creating a Public Improvement District (PID) or a Municipal Management District (MMD). A PID or MMD should be formed for upgrading substandard or non-existent public improvements. A Districts provide a city with an avenue to pay for public improvements. If 50% of the property owners serviced agree to an increase in city property taxes, the revenues can pay for public improvements. While the increase in taxes is not usually popular, typically the property owner pays only a portion of the total cost of the project with the city covering the remaining portion of the project. Policy Statement 15: The City should aggressively pursue grant funding for North Beach projects. Plan Project Priorities 1) Develop Paradise Landing and Observation Platform. Paradise Pier was once a major attraction on North Beach and a new landing and observation platform would provide an enhancement to existing beach activities and a potential new destination. 2) Reduce street flooding by cleaning out clogged underground drainage lines. Determine what additional drainage improvements are needed. 3) Improve streets with sidewalks next to existing high density residential developments, next to Surfside Park and to beach access parking lots. Eliminate dead-end water lines serving existing high density residential development. 4) Adopt a specific implementation site plan for Surfside Park and Dolphin Parks. Consider participatory water features, pavilions and public art as potential destinations. 5) Replace the public bathrooms at Surfside and Dolphin Parks in a location consistent with a specific park master plan. 6) Develop a public pedestrian plaza at the entrance to the Breakwater Structure between the Lexington and the Aquarium, enhance the Breakwater Structure with safety railing, lighting and a wider sidewalk and widen sidewalks and add on street parking on North Shoreline Boulevard between Pearl Street and Coastal Avenue. 7) Develop an ADA accessible sidewalk with lighting and a fishing platform on top of the Terminal Groin next to Dolphin Park. 8) Construct a new groin at the north end of North Beach to reduce erosion, capture sand and to create a new beach with a protected water sports area. 9) Create a regional Birding and Ecotourism headquarters at Dolphin Park. A. Enhance the three major wetlands at Dolphin Park B. Create trails and looks outs for birding C. Seek designation as the Texas State Birding Center 10) Create large, attractive shelter areas at Dolphin and Surfside Parks. 11) Encourage private mobile vendors for beach necessities, food, surfboard rentals, etc. along the beach walk and in Dolphin Park. 12) Pursue state law changes to permit Las Vegas style gambling on North Beach. 13) Once a major development (25 to 50 million) commits to development, create a Tax Increment Reinvestment Zone to “capture” the increase tax value (the tax increment) for funding public improvements. 14) Update the CR-3 Resort Commercial District and then rezone the area south of Surfside Park to the CR-3 District. Create an architectural zoning overlay district to promote a consistent coastal architectural theme for commercial and residential properties. 15) Preserve physical and visual access to the beach along streets which terminate in public beach parking areas. All other streets not on the City’s Transportation Plan maybe be considered for closure on a case by case basis at the request of the abutting property owners. Adopted by City Council Ordinance #029272 on November 8, 2011. H.U.D. Community Development Block Grant monies were used to partially fund preparation of this plan. For more detailed map information refer to www.cctexas.com under the heading of Planning / Area Development Plans. On July 17, 2012, City Council adopted Ordinance #029564 which changed the name of Corpus Christi Beach to North Beach. NORTH BEACH DEVELOPMENT PLAN November 2011 Photographs Donated: by Third Coast Photo & The Texas State Aquarium A special thanks to the members of the North Beach Task force for their hard work and dedication in development of this plan. Juan Perales Billy Delgado Joann Gilbertson Eddie Ortega Carrie Robertson Jorge Cruz-Aedo Stacie Talbert Marilyn Jordan Pete Anaya Rich Tuttle F.W. Rocco Montesano Ronald Arispe Tom Schmidt The Planning Department Project Planner: Robert Payne, AICP, Senior City Planner Technical Planning Support: Elena Juárez Buentéllo, Planning Technician Census 2000 CC Beach Corpus Christi Population 440 277,454 Housing 392 107,831 Households 253 98,791 Household Size 1.74 2.75 Owner Occupied Housing 38.7% 59.6% Median Age 48.1 33.2 Median Household Income 32,045 36,414 Households with individuals under 18 9.9 41.4 Households with individuals 65 years and over 25.3 22.3 Corpus Christi Beach is located in Census Tract 1 0 4 8 9 11 16 26 26 30 70 111 125 0.00 50.00 100.00 150.00 Light Industrial Mobile Home Low Density … Medium … Public Semi-… High Density … Conservation … Water Commercial Park Vacant Right-of-way Acres Existing Land Use Copyright: Texas State Aquarium Copyright: Texas State Aquarium Copyright: Texas State Aquarium Copyright: Texas State Aquarium Copyright: Third Coast Photo NORTH BEACH DEVELOPMENT PLAN Existing Land Use Exhibit C 1RUWK%HDFK5HGHYHORSPHQW,QLWLDWLYH_$OWHUQDWLYH &RUSXV&KULVWL7H[DV -XQH 1 Single Family Detached 2 Multi-Family 3 Single Family Attached 4 5HWDLO2I¿FH 5 Hotel/Hospitality 6 Mixed-Use 7 Restaurant/Destination 8 Eco-Destination (a) Dolphin Viewing (b) Bird Watching (c) Wetland/Water Amenity 9 Texas State Aquarium 10 USS Lexington 11 Bioswale and Trail 12 Harbor Bridge 13 City Park Entry 14 Potential Tourism Destination 15 Parking Structure /HJHQG   $ %&                               7,021%/9'%( $ & +  $ 9 ( *8 / ) 6 3 5 $ <  $ 9 ((685)6,'(%/9'%5 ( $ . : $ 7 ( 5  $ 9 ( %5 , ' * ( 3 2 5 7  $ 9 ( %8 5 / ( 6 2 1  6 7 North Beach 3FEFWFMPQNFOU Initiative"MUFSOBUJWF Corpus Christi, Texas February 8, 2018 North Beach Redevelopment Initiative Capital Improvement Projects (CIP) (1) Surfside Blvd. Overlay (completed) (2) Timon Blvd. Overlay (completed) (3) North Beach access improvements (4) Beach Ave. Improvements (5) Traffic Circle (6) Land Aquisition (7) Wetlands Identification (8) Gulfspray Ave. Pedestrian and Bike Improvements (9) Seagull Blvd. Extension (10) Timon Blvd. Realignment (11) Connect Walnut St. and Paul Pl. (12) Connect Elm St. to Surfside Blvd. (13) Connect Coastal Ave. (14) Storm Water Management (15) Pedestrian and Bike Trail (16) Pedestrian Improvements (17) Close Portion of Reef Ave. (18) Close Portion of Seagull Blvd. (19) Close Portion of Timon Blvd. (20) Close Portion of Gulfbreeze Blvd. (21) Close Sandbar Ave. (22) Bring Seagull Blvd. to collector standards (23) Bring streets up to adopted street standards (24) Remove W. Surfside Blvd. (25) Remove current Seagull Blvd. (26) Eco-Destination (27) Dolphin Park (28) Surfside Park (29) Kiwanis Park (30) Potential Cruise Ship Tourism Infrastructure (31) Canal/ Cove/ Jetties - Private/ Public Opportunity (32) Breakwater Islands - Private/ Public Opportunity (33) TxDOT street projects 3 3 6 5 7 Road Closures Street Realignment Bike/Pedestrian Projects New Road Construction Projects 8 New Open Space 26 16 19 21 22 23 23 24 15 2 1 10 9 30 32 32 31 32 33 28 25 29 18 27 1 1 2 1 14 13 12 11 Propsed CIP List February 12, 2018 SURFSIDE BLVDBE A C H A V E SA N D B A R A V E TIMON BLVDTIMON BLVDH U L L BR E A K W A T E R A V E _ _ _ BR I D G E P O R T A V E CO A S T A L A V E HWY 181 FWY SBHWY 181 FWY SBSHORELINE BLVD EL M S T PL U M S T PLUM STSEAGULL BLVDGO L F P L KL E B E R G P L PA U L P L HO T E L P L BR E A K E R S A V E BU S H I C K P L ST E W A R T P L BU R L E S O N S T CH U R C H D A L E A V E ST C H A R L E S A V E TO U R I S T A V E TR E A S U R E S S T SU R F B O A R D A V E SEAGULL BLVDRE E F A V E GU L D E N S T GULFBREEZE BLVDNE A L S T HA Y E S S TE CASUEWAY BLVDGU L F S P R A Y 31 23 New Harbor Bridge Allignment W A L N U T S T 4 20 17 LEGEND 1 2 3 4 Beach Ave. roadway/ pedestrian improvements and area beautification from East Causeway to Beach Parking. Dead end at Beach Parking (1,350 lf) 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Close Gulfbreeze Blvd. north of Gulden St. (400 lf) (in conjunction with Dolphin Park development) 21 22 23 24 25 26 27 Dolphin Park Improvements 28 Surfside Park Improvements 29 Kiwanis Park and Community Center Improvements 30 31 32 Breakwater Islands - Private/ Public Opportunity 33 February 12, 2018 *All measurements are approximate North Beach Redevelopment Initiative Proposed Capital Improvement Projects List Surfside Blvd. Overlay from Coastal Ave. to Reef Ave. (5,400 lf) (completed) North Beach access improvements from E. Causeway to Surfside Blvd.: explore curved loop road (1,000 lf) or free right turn options (400 lf), requires a detailed engineering, cost-comparison, and design process Land acquisition for roads under current Harbor Bridge from Burleson St. to Breakwater Ave. Timon Blvd. Overlay from Coastal Ave. to Beach Ave, and from Sandbar Ave. to East Causeway Blvd. (6,350 lf) (completed) Close Sandbar Ave. (700 lf) (in conjunction with Eco Park development) Bring Seagull Blvd. to collector standards from Breakwater Ave. to Gulfspray Blvd. (4,700 lf) Bring streets up to adopted City standards with ADA sidewalks and drainage (in conjunction with new development) Storm Water Management in median between Surfside Blvd. and Timon Blvd. running north/south from Coastal Ave. to Beach Ave. (18.5 acres) Pedestrian and bicycle trail along Surfside Blvd. and Timon Blvd. median running north/south from Coastal Ave. to Beach Ave. (10,200 lf) Pedestrian improvements from East Causeway Blvd. at Timon Blvd. under Causeway to West Causeway Blvd. and Beach Ave. (2,800 lf) Close Reef Ave. from Seagull Blvd. to Timon Blvd. (200 lf) (in conjunction with new development) TxDOT projects associated with Harbor Bridge Relocation: street projects under the current bridge - projects TBD Construction of Traffic Circle at the intersection of Beach Ave. with Surfside Blvd. and Timon Blvd. including gateway feature with wayfinding (500 lf) U.S. Army Corps of Engineers Wetlands Identification for City owned land, right of way, and easements on North Beach Remove West Surfside Blvd. from Burleson St. to Elm St. (1,600 lf) Connect Coastal Ave. from Seagull Blvd. to Surfside Blvd. (390 lf) Connect Elm St. from the New Timon Blvd. alignment (current W. Surfside Blvd.) to Surfside Blvd. (230 lf) Canal, Cove, and Jetties - Private/ Public Opportunity Close portion of Timon Blvd. north of Beach Ave. (2,000 lf) (in conjunction with Eco Park development) Public-Private Partnership Opportunity - Potential Cruise Ship Tourism Infrastructure Remove Seagull Blvd. from Burleson St. to Elm St. (1,500 lf) Public-Private Partnership Opportunity - Eco-Destination to integrate more open space and serve as wetland mitigation opportunity (35 acres) Close Seagull Blvd. north of Beach Ave. (350 lf) (in conjunction with new development) Extend Seagull Blvd. from Plum St. to Burleson St. (1,100 lf) Realign Timon Blvd. from Bushick Pl. to Breakwater Ave. (3,000 lf) Connect Walnut St. and Paul Pl. from E. Causeway Blvd. to New Timon Blvd. alignment (800 lf) Gulfspray Pedestrian and Bicycle infrastructure Improvements from E. Causeway Blvd. to Beach Access. (1,400 lf) MARCH 27, 2018 CORPUS CHRISTI downtownarea development plan Acknowledgements ADVISORY COMMITTEE MEMBERS Ms. Maureen Brooks Treasurer Hillcrest-A.L. Leathers-Solomon Coles Neighborhood Council, Nueces County Community Action Agency Mr. Jim Charnquist President Sage Properties Corporation, Bay Vista Developer Mr. Brian Connor President of Memorial and Shoreline Hospitals CHRISTUS Spohn Mr. Peter Davidson Marina Superintendent / Director City Marina Mr. Bill Durrill Durrill Properties, SEA District Ms. Brigida Gonzalez Assistant Transportation Planning Director CC Metropolitan Planning Organization Ms. Darlene Gregory President Uptown Neighborhood Initiative Mr. Gabriel Guerra President-CC Market Kleberg Bank, Type A Board Mr. Casey Lain House of Rock, Downtown Management District Board Mr. Brett Loeffler General Manager LAZ Parking Central Texas Mr. Omar Lopez Corporate Communications Manager Texas AEP, Dia de los Muertos, Homeless Advocate Mr. Rueben C. Medina Director of Business Development Port of Corpus Christi Authority Mr. Rocco Montesano Executive Director U.S.S. Lexington Museum on the Bay Ms. Jaime Nodarse Assistant Vice President of Development Texas A&M University-Corpus Christi Dr. Gilda Ramirez Westside Business Association, United Corpus Christi Chamber of Commerce Ms. Carrie Robertson Meyer President North Beach Community Association Mr. Gordon Robinson Director of Planning CC Regional Transit Authority Mr. Terry Sweeney Executive Director CC Downtown Management District Mr. Victor Vourcos Advance Project Development Engineer Texas Department of Transportation Mr. Henry Williams President Hillcrest Residents Association CONTENTS 1. Introduction: A new era of opportunity .................................................................1 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 A community-driven process .............................................................................................................10 Taking initiative to seize the opportunity ......................................................................................12 Working together ....................................................................................................................................14 2. Priority Policy Initiatives and Implementation: .....................................17 How to build the Downtown Area vision Vision themes and policy initiatives ................................................................................................19 Framework diagrams............................................................................................................................40 Infrastructure initiatives .....................................................................................................................48 12 ii | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 3. District Framework and Reinvestment Priorities: .............................51 Targeted priorities for a vibrant and connected Corpus Christi Marina Arts District ..............................................................................................................................54 Bayshore Neighborhood .......................................................................................................................62 Uptown and Surrounding Neighborhoods .....................................................................................66 Washington-Coles ..................................................................................................................................70 Hillcrest .....................................................................................................................................................74 SEA District ..............................................................................................................................................78 North Beach ..............................................................................................................................................84 4. Development Guidelines for TIRZ #3 ......................................................................89 Guidelines by street corridor ..............................................................................................................92 General guidelines ..................................................................................................................................95 5. Transportation ....................................................................................................................................97 Harbor Bridge opportunities ..............................................................................................................98 Downtown area access improvements .........................................................................................100 Transit alternatives ............................................................................................................................102 Parking management ..........................................................................................................................104 Abbreviations used in this document .................................................................106 Appendix A. Real estate market analysis documents for housing, office, hotel and retail [available separately] 345 PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | iii Corpus Christi Marina 1The 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. Introduction A new era of opportunity in Corpus Christi PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 1 SHAPING THE DOWNTOWN AREA’S FUTURE: A UNIQUE MOMENT This is an exciting time for Corpus Christi. At a moment when people of all ages across the country are seeking out great urban places to live, work, learn, and play, the Downtown Area is primed to capitalize on its unique strengths—its spectacular and accessible wa- terfront, unique destination attrac- tions, people and neighborhoods, and proximity to jobs and transpor- tation options. The Downtown Area addressed by this plan is large and encompasses several related areas: • The Traditional Downtown core—now brand- ed the Marina Arts District—and Uptown • The SEA (Sports, Entertainment, Arts) District • Washington-Coles and Hillcrest neighbor- hoods (note that Hillcrest is in Corpus Chris- ti’s Westside Planning Area) • North Beach Today, each area has its strengths and weak- nesses. But taken together the Downtown Area’s districts include many of the ingredients that provide the foundation for successful and vibrant downtowns: • An attractive waterfront setting that combines beaches, parks and marinas • An active, walkable district centered along Chaparral Street • Restaurants and entertainment venues • Arts and cultural attractions • Major destination attractions, including the USS Lexington, Texas State Aquarium, Art Mu- seum of South Texas, Corpus Christi Museum of Science & History and several others • Major convention and meeting facilities at American Bank Center • Minor League baseball at Whataburger Field Because of its large size, the overall Downtown Area will continue to develop as a number of distinct areas with their own unique identities, offering complementary attractions and expe- riences. Over the longer term, these areas will become more strongly connected, while retain- ing unique identity and character. Infrastructure and development initiatives that are already completed or in the works open a wealth of possibilities for further investment that will improve Corpus Christi’s near- and long-term future. The planned Harbor Bridge relocation creates a once-in-a-lifetime opportu- nity for the City to work closely with the Texas Department of Transportation (TxDOT), commu- nity leaders, and private developers to transform the SEA District, Washington-Coles, Uptown, Downtown and North Beach into more walkable and connected places. Streetscape improvements have made Downtown segments of Chaparral Street and Shoreline Boulevard delightful places to walk. As such, they also invite people to live and work, to enjoy entertainment and tourism, The Downtown Area Development Plan emphasizes “how” to get things get done, as much as “what” gets done. 2 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 INTRODUCTION | A new era of opportunity for Corpus Christi and explore accessible, welcoming waterfront activities that all support each other. The Down- town Area has always been and remains a key driver of Corpus Christi’s identity. It has the greatest opportunity in a generation to become a much deeper source of community life and pride. CHALLENGES TO OVERCOME The Downtown Area has notable strengths but it continues to struggle to attract development and businesses due to low foot traffic, a phys- ical environment designed more for cars than people, rent levels too low to justify redevel- opment costs, unpredictable status of various infrastructure and development projects, some challenging adjacencies to industrial activity, perceived lack of safety or cleanliness in places, and a traditional office-dominated identity that does not reflect the much more diverse activity and market opportunities available today. While there are signs that residential development (a major driver of downtown development nation- ally) is beginning to take root downtown, there is significant work to do to tap the full potential that downtown offers as a housing location. This plan, therefore, focuses on the actions that can most effectively diminish the challenges posed by the Downtown Area and open up invest- ment—particularly private investment—that is naturally attracted by the downtown’s assets. Downtowns are inherently complex places, and a plan helps organize the actions of many people around common purposes to draw great value from a downtown’s intensity of activity. Downtown Corpus Christi already has many stakeholders who are taking important actions toward well-conceived goals, but who also could achieve more, sooner, through increased coordi- nation of these actions. Thus the Downtown Area Development Plan emphasizes “how” to get things done, as much as “what” gets done. DOWNTOWN AREA DEVELOPMENT OFFERS CITY-WIDE BENEFITS Downtown Area destinations matter signifi- cantly to the local and regional economies—par- ticularly visitor attractions located within the SEA District and North Beach. In 2014, approx- imately 2,750,000 people flocked to the Texas State Aquarium, USS Lexington, Convention Center, Art Museum, Museum of Science and History, Whataburger Field, and Hurricane Alley, an increase of 47% in just three years. These attractions, together with the Downtown Area’s nearly 40% share of Corpus Christi hotel rooms, anchor citywide visitor destination spending that exceeded $1.2 billion and provided an overall economic impact of over $1.5 billion for each fiscal year 2012 and 2013. This infusion of outside spending continues to grow. The tour- ism industry supported almost 29,000 local jobs either directly or indirectly in 2013.1 1 Source: Email correspondence with Corpus Christi Convention and Visitors Bureau, March 12, 2015 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). N. TA NC A H U A STN. CARANCAHUA STW. BR O A D W A Y BR O A D W A Y I-37 Uptown Marina Arts District Hillcrest North Beach Washington-Coles SEA District Opportunity to change streets and roadways to improve Downtown Area connections and development areas Approximate location and profile of New Harbor Bridge Existing Harbor Bridge to be removed Existing Harbor Bridge approach to be removed and replaced with traditional streets and blocks PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 3 INTRODUCTION | A new era of opportunity for Corpus Christi The Downtown Area offers broader quality of life benefits to Corpus Christi as well. Besides the signature visitor destinations highlighted above, the area’s beaches, parks, marina, restaurants, art centers, churches and other amenities enrich life for residents on a daily basis. As the Downtown Area gains a stronger dimension as a neighbor- hood—while continuing to be a hub of business and tourism—the added residential character will raise the value of the Downtown Area not just as a place to live, but also to work, learn and play. Downtown can offer housing options and a type of neighborhood environment not currently available in other Corpus Christi neighborhoods, helping the city attract and retain a more diverse workforce with a broad range of skills. This will further enhance quality of life and economic opportunity for the whole city. A MARKET-DRIVEN PLAN: SETTING THE STAGE FOR PRIVATE SECTOR INVESTMENT A key foundation of the DADP planning process has been an assessment of the downtown’s mar- ket potential to attract new private sector invest- ment. These analyses have identified significant opportunities for downtown growth and devel- opment, provided that some key barriers can be eliminated. The DAPD outlines the opportunities and presents strategies to remove the barriers to capturing this growth. Analyses of Downtown Area’s residential, office, hotel, and retail real estate market potential— conducted as part of citywide market analysis for Plan CC—shape the DADP’s plan of action. New housing offers by far the strongest invest- ment opportunity. This is significant because growth in downtown housing has been a key driver of downtown revitalization efforts across the country, and the potential for Corpus Chris- ti to benefit from this trend is very strong. The Downtown Area already attracts existing Corpus Christi residents as well as people living outside the city (and region) who are looking to relocate to a downtown setting with high quality of life and walkable destinations. This interest comes from a wide spectrum of household income lev- els. Yet today there are relatively few good quality options for living in the Downtown Area, wheth- er at market-rate or more affordable rent levels. • There is market potential in the Downtown Area for 1,850 market-rate apartment and townhouse housing units over the next five to seven years—primarily multi-family Shoreline promenade New grocery on Chaparral Street Farmer’s market at the Art Center of Corpus Christi 4 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 INTRODUCTION | A new era of opportunity for Corpus 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. 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 of the city would attract such a strong concentration of multi-family and attached units. > Additional demand for single-family de- tached ownership units may also be present; approximately 20% of households interested in living in the Downtown Area would prefer a single-family unit. Single-family units do not offer sufficient economic value or benefits to walkability to be appropriate in much of the Downtown Area. However, those portions of the area where single-family detached dwellings are traditionally present would be appropriate places to develop new single-family detached ownership housing on compact parcels. These areas principally include portions of Uptown west of Staples and south of Agnes, Washington-Coles west of Staples, and northern portions of North Beach. > Younger singles and couples (millennials) make up the primary target markets to fill that new housing (68%), with empty nest- ers and retirees (19%), and traditional and non-traditional families (13%) comprising the rest. Total Downtown Area population growth over 15–20 years could exceed 8,000 people, assuming each household contains an average of approximately 1.5 people. > This market potential does not always equate to immediate development feasibili- ty. As in many downtowns, public incentive policies will be needed to catalyze new real estate development, providing near-term financial assistance that unlocks strong longer-term returns to the city in terms of tax revenue, Downtown Area vitality and attraction of additional private investment. • Downtown office growth has more modest prospects, as regional office growth is project- ed mainly in administrative and support indus- tries that are not typically downtown tenants. Up to 100,000 square feet of Downtown office demand in the next 10 years is antici- pated, and could be accommodated by existing vacant space. Downtown’s emergence as a live- ly residential neighborhood will, however, help stimulate Downtown Area business growth by creating a more active, appealing and ameni- ty-rich setting for business, and attracting and retaining valuable workforce. • The hotel economy in Corpus Christi is healthy, particularly in the Downtown Area where tourism and destination visitors are dominant markets. The market has grown by 2.4% per year in the last 10 years. Market anal- ysis conducted in 2015 indicated healthy de- mand for hotel rooms in the Downtown Area. This outlook was validated by subsequent development proposals for nearly 500 rooms in five new hotels in the Downtown Area, split between the SEA District and Bayshore Neigh- borhood. Demand for additional hotel rooms Downtown Area visitor attractions, together with the Downtown Area’s nearly 40% share of Corpus Christi hotel rooms, anchor citywide visitor destination spending that exceeded $1.2 billion and provided an overall economic impact of over $1.5 billion for each fiscal year 2012 and 2013. The 2017 Fiesta de la Flor attracted 55,000 people to the SEA District, with an estimated economic impact of $15 million. IMAGE SOURCE: CORPUS CHRISTI CALLER-TIMES PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 5 INTRODUCTION | A new era of opportunity for Corpus Christi such as the South Padre Island Drive (SH 358) and other auto-oriented locations, the Down- town Area offers Corpus Christi’s strongest concentration of dining and nightlife des- tinations. Numerous choices for live music and unique, locally-owned venues set the Down- town Area apart as a destination for locals and visitors alike. Growth opportunities include: > Small (100-person) and mid-sized (1,000-person) live music venues; > Nightlife with an added “twist” such as bowl- ing, dueling pianos or an arcade; > Destination dining, especially restaurants that are regionally-based or have just one Corpus Christi location; and > Mobile retail, such as food trucks • A growing residential population will also help diversify Downtown Area retail to include new choices—appealing to residential, worker and visitor markets alike—such as a drugstore, limited-assortment grocer, family restaurant/ diner, discount variety store, coffee house, and other specialized services. There is also untapped market potential for several poten- tial destinations that could serve as valuable daytime anchors: an outdoor outfitter, a fami- ly-themed amusement destination (in addition to Hurricane Alley Waterpark), and an art supply store (if Texas A&M-Corpus Christi’s Master of Fine Arts program locates down- town; see below). • Relocating the Master of Fine Arts program of Texas A&M-Corpus Christi downtown represents another valuable development or tenanting opportunity. This graduate-level program would be particularly well suited to a downtown location because faculty and students can connect with the established arts community there, downtown offers students an attractive location for studying and living, and the program operates independently of the main campus. The university has explored potential to place the arts program downtown in reno- vated or leased space in the past, but has not yet acted on this goal due to cost challenges. A collaborative effort between the university, city and/or downtown property owners to overcome these challenges is encouraged, as the program’s presence downtown would yield value not only to for the university and its students, but also for downtown as an additional arts partner and daytime center of activity. Downtown investment in development, programs and infrastructure is happening at its highest level in decades and sets the stage for a substantially higher level of investment capitalizing on the mar- ket opportunities described above. Demonstrating Corpus Christi’s Downtown Area housing market potential, ongoing or recently completed down- town housing development has added 615 new market-rate units, between the Cosmopolitan, Atlantic Lofts, Nueces Lofts, Bay Vista, and Bay Vista Pointe. Other initiatives in the Downtown Area that reflect market interest include new boat slips at the marina, Bayfront Inn redevelopment and a new hotel on Shoreline Boulevard, addition- al hotel development planned in the SEA district, the new Corpus Christi Regional Transportation Authority transportation center in Uptown, Texas State Aquarium’s $60 million expansion in North Beach, and community enthusiasm for park im- provements along the former Shoreline Boulevard right-of-way and Sherrill and McCaughan Parks. North Beach Gateway North Beach besides these proposed projects is not antic- ipated in the near term. However, additional hotel development proposals in the Downtown Area should be welcomed if market demand for them can be demonstrated. A convention hotel supporting the American Bank Center is desired as a strategic resource to expand the visitor economy. • Downtown Area retail and entertainment offerings have a distinct and deepening market niche. While shopping in Corpus Christi is pri- marily driven by areas outside the downtown, 6 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 INTRODUCTION | A new era of opportunity for Corpus Christi THE DADP ALIGNS CLOSELY WITH CORPUS CHRISTI’S CITYWIDE PLAN The Downtown Area Development Plan (DADP) was created in parallel with the Plan CC Comprehensive Plan for all of Corpus Christi, so that both plans, and the com- munity conversations that informed them, shared a common base of information, ideas, priorities and initiatives. The table at right highlights key elements of the Plan CC Vision in the left column, and how the DADP supports these in the right column. PLAN CC VISION ELEMENT THE DADP SUPPORTS THE VISION BY: Our broadly diversified economy provides opportunity for all. • Supporting Downtown Area business growth with more attractive, walkable settings for tourism, dining, office-inclined industries, and other business activities. • Helping attract and retain skilled workforce by substantially expanding the number and variety of Downtown Area housing options—featuring qualities and amenities not available in other portions of the City. Modernized city services and systems support growth and vitality in all parts of the city. • Identifying priority infrastructure investments that can be cost- effectively paced with market-driven real estate development. • Applying updated TIRZ incentive policy to help fund infra structure 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, connected, and diverse neighborhoods provide a variety of living choices. • Leveraging market opportunity for downtown housing and supportive retail, through cost-effective TIRZ #3 and other development incentives. • 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— em phasizing 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 natural heritage and green-space networks strengthens our unique character and supports resilience. • Improving access to, and appreciation of, the bayfront and destina- tion parks by filling gaps in the Downtown Area’s remarkable park and pathway network • Encouraging sustainable building design and preservation techniques through down town area development incentives. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 7 INTRODUCTION | 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: Encourage market- driven development. The established Tax Increment Reinvestment Zone (TIRZ) is a powerful and underutilized tool that can make new development possible by funding street and utility improvements and short-term tax rebates using the new tax revenue it creates. This well-conceived pro- gram can help a wide variety of development projects take advantage of the strong market interest in living in and around Downtown. Complete a waterfront park and trail network. The Bayfront is the Downtown Area’s signa- ture amenity, enhancing quality of life for all city residents and attracting residents and visitors to the region. The Marina, Sea Wall, Shoreline Boulevard, Beachwalk, and other es- tablished parks and pathways already provide an impressive level of access to the Bayfront, 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. Create more housing choices. While much of the demand for downtown liv- ing can be accommodated by the private de- velopment industry, assisted in some cases by the TIRZ, proactive effort is needed to expand options for all residents. Households of more limited means will particularly benefit from living amidst the Downtown Area’s concentra- tion of jobs, services, transportation choices, and established neighborhood communities. 8 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 INTRODUCTION | A new era of opportunity for Corpus Christi The ideas and strategies documented here arose from a collaborative and community-driven eight-month process of stakeholder 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 inspiring revitalization of the Downtown Area, investing significant time and offering a wealth 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 neighborhoods. Removal of the existing Harbor Bridge creates an unprecedented opportunity to reconnect Uptown, Washington-Coles, the SEA Dis- trict, Marina Arts District, and North Beach with walkable streets lined with high-quali- ty development. Attractive landscapes and architecture scaled to people will transform the experience of arrival in North Beach, the Downtown Area Bayfront and surrounding districts. Celebrate this unique place to live, work, learn and play. An extensive array of visual and performing arts already infuses much of the Downtown Area, and will become a stronger core of Corpus Christi culture as more residents and visitors come to experience them. Corpus Christi’s highly successful Marina and down- town will grow together around streets that are active day and night with people living, visiting, learning and working. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 9 INTRODUCTION | A new era of opportunity for Corpus Christi The DADP comes out of a City-led, 8-month process of comprehensive and intensive public outreach. Early interviews with City leaders and key Downtown Area community stakeholders, neighborhood associations, business owners, land owners, developers, and citizens provided the foundation of understanding regarding the challenges and opportunities in Corpus Christi. Relevant input from meetings conducted for the broader Plan CC Comprehensive Plan was studied. The downtown planning team partic- ipated in the Regional/Urban Design Assis- tance Team (R/UDAT) event exploring Harbor KEY INPUT FROM CITIZENS OF CORPUS CHRISTI DURING THE DADP PROCESS • The Downtown Area should be safe, vibrant, and connected • Distinctive portions of the Downtown Area should have their own character and identity • The Downtown Area should be walkable and inviting, and represent the heart of Corpus Christi • The Downtown Area Development Plan should focus on enabling real, visible investment. NOVEMBER 2014—Presentation of purpose and goals of the study with analysis of opportunities and challenges for the Downtown Areas as well as presentation of residential market potential, followed by breakout groups and report backs on DADP districts, themes, and priorities. FEBRUARY 2015—Presentation of Draft Vision and Strategies, Office and Hotel Market, Development Economics, and Transportation findings, followed by discussion groups around the presentation topics. MAY 2015—Presentation of draft DADP recommendations derived from public dis- cussions and stakeholder input to receive final comments in anticipation of creating the final DADP for Corpus Christi City Council review and approval. A Community Driven Process that Builds on Planning Efforts Bridge relocation opportunities and challenges, and met regularly with the local R/UDAT ad- visory group on an ongoing basis to integrate its goals and ideas with the DADP. A series of open public meetings were held in November 2014, February 2015, and April 2015 along with a diversity of walking tours and open houses in which public input and discussions were facilitated and recorded around key topics such as Vision and Strategies, Market and Econom- ics, and Transportation. Information about the meetings was advertised through print and social media outlets as well as the Plan CC website. A Steering Committee and Advisory Committee were formed at the outset to guide the City and its consultants towards the rec- ommendations in this report. A number of ongoing or earlier plan documents provided a strong foundation for the Down- town Area Development Plan. The DADP builds on these plans while incorporating new think- ing around specific implementation actions that will create transformative change. • HARBOR BRIDGE RELOCATION (ongoing)—The Harbor Bridge relocation is a long-term plan to replace the Harbor Bridge and reconstruction of portions of US 181, I-37, and the Crosstown Expressway to address safety and structural deficiencies as well as navigational limitations for the Port. The redesign will change access routes to/from North Beach, SEA District, the Northside, and Downtown and transform downtown Corpus Christi. This project is one of the key cata- lysts that drives the need for the DADP. INTRODUCTION | A new era of opportunity for Corpus Christi 10 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 • NORTHSIDE LIVABILITY PLAN (2014–Ongoing)—The Northside Livability Plan is an ongoing initia- tive being led by TxDOT and supporting Fed- eral agencies HUD and DOT, to ensure that the Harbor Bridge project incorporates mitigation measures for impacted neighborhoods. To-date, a number of public meetings have been held for community input. • R/UDAT STUDY FOR THE SEA DISTRICT (2014)—The Regional/Urban Design Assistance Team (R/ UDAT ) was an initiation of the American Institute of Architects (AIA) and continues through the work of the local R/UDAT Steering Committee. Recommendations for reconnecting district and streets, adding new street segments, streets- cape improvements and walkable infill develop- ment were promoted in the R/UDAT plan and are similarly reinforced in the DADP study. • UNIFIED DEVELOPMENT CODE (2011)—Approved in 2011, the UDC is a comprehensive planning and zoning document with overlay districts that replaced the City’s older zoning code and other standards to ensure that growth and develop- ment meets certain land use and architectural standards in Corpus Christi. The UDC will play an important role in the rational implementation of development as recommended in the DADP as well as Plan CC. • CENTRAL BUSINESS DEVELOPMENT PLAN (2013)— This work promoted a walkable, mixed-use range of development in the downtown, with an expanded range of accessible affordable housing options. A recreational path and water access network was proposed, similar to updated ideas included in the DADP. • MOBILITYCC (2013, updated 2016)—MobilityCC is the transportation component of Corpus Christi’s comprehensive plan and provides a framework for the interrelated transportation elements of the plan in terms of design, standards, opera- tions, and maintenance. A tool box of features and techniques is presented as well as perfor- mance measures and implementation priorities for certain areas of the City. In 2016, the City adopted the Corpus Christi Metropolitan Planning Organization (CCMPO) Strategic Plan for Active Mobility, Phase 1: Bicycle Mobility Plan as a com- ponent of Mobility CC to provide an integral plan for the community intended to foster cycling as a meaningful transportation alternative for riders of diverse abilities. • CITY’S CAPITAL BOND PROGRAM (2012–2016)—The City’s capital bond program continues to provide tangible improvements to streets and utilities throughout the city. With over 40 projects in de- sign, bidding, or construction, the Bond program is a visible, voter approved program that has shown results both within the DADP focus area and beyond. The DADP suggests future recom- mendations and priorities to focus public dollars and aims to leverage these public investments to catalyze private development initiatives wher- ever possible. • NORTH BEACH DEVELOPMENT PLAN (2011)—Major themes in the North Beach plan included a beach walk and restoration of natural areas, including a native, water receiving landscape for the Surf- side/Timon Boulevard median, all themes that are reflected in the DADP. A focus of the DADP is to ensure integration and connectivity between North Beach, the SEA District, and Downtown with the future Harbor Bridge relocation project. • TAX INCREMENT REINVESTMENT ZONE (TIRZ) (2008–Ongoing)—The TIRZ district #3 specifically geared to Downtown was established in 2008 as part of a broader range of Tax Increment Financ- ing Districts (TIF). The zone includes approxi- mately 856 acres and captures the SEA District and Downtown as far west as Tancahua Street and as far south as Morgan Avenue. The pri- mary revenue source for the zone will be funds contributed from property tax collections of the City, County, and Del Mar College on the taxable property value increment within the zone. • CORPUS CHRISTI DOWNTOWN VISION PLAN (2008)— The Downtown Vision Plan focused on housing and retail along walkable streets along Chapar- ral, Peoples and Schatzel. Chaparral, marina, and hotel connectivity was emphasized. The DADP promotes a similar approach to the Downtown district, with specific priority development par- cels and public policy incentive approaches to implement the recommendations. • CORPUS CHRISTI DOWNTOWN MANAGEMENT DIS- TRICT (DMD) THREE-YEAR STRATEGIC PLAN (2015)— This plan leverages new leadership and part- nerships to expand the DMD’s success in making Downtown a better place to visit, do business and live. It charts clear priorities and initiatives supporting cleanliness, business recruitment and support, development, community events, and other elements critical to making the most of all Downtown has to offer. • IMPLEMENTATION PLAN FOR THE HILLCREST/WASH- INGTON-COLES REDEVELOPMENT PLAN (2009)—This plan illustrates vision goals expressed by the Hillcrest community. • TRANSIT PLAN 20/20—CCRTA’s Five-Year Transit Plan, was completed in October 2016 for the dual-purpose of evaluating current bus ser- vice performance and formulating bus service improvements through year 2020. The plan in- cludes prioritized short-term bus service recom- mendations to increase ridership while meeting the needs of the Coastal Bend region.  Phase 1 recommendations, which included six new bus routes, 12 modified routes, and one discontinued route, was implemented in January 2017.  Ad- ditionally, an in-depth analysis of CCRTA fares under five phased scenarios was completed to further increase public transportation options and sustainability. INTRODUCTION | A new era of opportunity for Corpus Christi PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 11 TAKING INITIATIVE TO SEIZE THE OPPORTUNITY The Corpus Christi community has clearly defined its goals for the Downtown Area. Ten initiatives utilize available leadership and resources to achieve those goals: 1 Utilize TIRZ #3 to unlock mar- ket-driven development with flexible, effective options serving the different incentive needs of different projects. Take advantage of the flexibility of TIRZ funds by offering projects the incentives that suit them best. For some projects this could be a tax rebate; for others this could be street and utility improvements; and still others could use a combination of such investments. Projects seeking higher levels of incentive should demon- strate how they would be financially infeasible without it. 2 Target tax abatement and other incentives to reinforce neighbor- hoods with new job and mixed-in- come housing development. Focus tax abate- 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. 3 Proactively encourage redevelop - ment of well-located underutilized properties. Make owners of promi- nent vacant properties aware of available market interest, incentives and plan guidelines that all encourage reinvestment. The City and partners like Nueces County and the Port of Corpus Christi can set an example by selling their underutilized parcels for projects that advance DADP goals. Focus on sites that are in marketable locations, encourage private investment in nearby sites by enhancing their market position, and/or are large enough to support a significant critical mass of development. REAL ESTATE REINVESTMENT CURRENT PLANNING EFFORTS Influenced by the development of the Down- town ADP the City has engaged in several follow-through studies: • The DOWNTOWN PARKING MANAGEMENT STUDY AND STRATEGIC PLAN will guide im- plementation strategies for the next three years (2017). • The NORTH BEACH REDEVELOPMENT INITIA- TIVE engaged the North Beach community for input to outline redevelopment con- cepts. The plan details capital improvement projects and programs that will catalyze economic development and promote infill opportunities while capturing momentum from the realignment of the Harbor Bridge (underway). • The TIRZ #3 INTEGRATED TRAFFIC AND PLANNING STUDY will respond to the Harbor Bridge replacement project creating an ur- gent need to enhance connectivity between downtown and the new freeway and an opportunity to establish synergy between the TIRZ #3 districts and nearby neigh- borhoods. This planning effort will identify opportunities to develop linkages and con- nectivity of destinations within and among the SEA District, the Marina Arts District, and other surrounding neighborhoods and districts. This findings from this study will guide public investment and incentives for the next decade (underway). 12 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 INTRODUCTION | A new era of opportunity for Corpus Christi 4 Focus infrastructure investments to maximize leverage of private sector investment. Coordinate improvements closely with known development projects—when and where necessary. Corpus Christi has invested in high-quality street and park infrastructure along Shoreline Boulevard and Chaparral Street. Before undertaking other large infrastructure projects, focus on enabling the development that has been attracted by past investments. 5 Organize parking at district scale to increase convenience and efficien- cy. The Downtown Area needs enough conveniently located parking to satisfy market demand, but not so much that the land and funding needs of parking get in the way of high-value development. Make the most of every parking space through parking management that lets an office worker’s daytime parking space serve a resident, hotel guest or concertgoer in the evening or weekend. 6 Actively manage event traffic. During major events, some streets are clogged with traffic while others are underutilized. Provide audiences more information on access route options, and add reasons to come early and stay late, to spread out traffic over more area and time, ensuring conve- nient access for all. 7 Transform old Harbor Bridge infrastructure to connect districts and the bay with walkable develop- ment and access. Removal of obsolete highway infrastructure will enable new streets and development to connect Uptown, Washing- ton-Coles, SEA District and Marina Arts District in ways that create more cohesive sense of place, greater market opportunity and a more connect- ed community. Install street trees, pathways and signage to create much more welcoming ap- proaches to North Beach. 8 Intensify destination arts and retail programming. The Downtown Area is the heart of Corpus Christi’s cultural and culinary scene. Raise the profile of this amenity with additional, and more visible, programming of arts, music, food, recreation and other activities serving the city and its visitors. 9 Fill missing links in Corpus Chris- ti’s signature waterfront park and path network. Take advantage of the New Harbor Bridge project and several smaller, near-term opportunities to knit together Corpus Christi’s Bayfront Marina, parks and paths into a highly accessible system serving residents, workers and visitors. 10 Create clean, safe, welcoming places. Maintain streets, parks and other public places to be consistently clean and attractive. Expand partnership between the City, property and business owners, residents, and district management to encourage good stewardship of downtown’s public places. INFRASTRUCTURE GREAT PLACES FOR PEOPLE PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 13 INTRODUCTION | A new era of opportunity for Corpus Christi WORKING TOGETHER Corpus Christi’s Downtown Area is building momentum, seeing new vibrancy and activity emerging from market opportunity, existing as- sets, and the dedicated efforts of a wide variety of residents, business owners, institutions, public officials and other stakeholders. The following chapters of this document provide stakeholders and partners direction, tools and guidance to work together toward shared goals. This coordi- nation of effort around mutual goals will do the most to unlock greater levels of opportunity in Corpus Christi. • CHAPTER 2 focuses on the key priority policy initiatives and implementation strategies that will make the five vision themes tangible and visible in the Downtown Areas. The down- town plan’s relationship to Plan CC vision, goals and strategies is described, as well as its roots in thoughtful past planning. • CHAPTER 3 is devoted to a detailed look at each of the six Downtown Area districts—the Marina Arts District, Bayshore Neighbor- hood, Uptown & Surrounding Neighborhoods, Washington-Coles, SEA District, and North Beach—as well as Hillcrest—through a series of reinvestment priorities. (See diagram on facing page.) • CHAPTER 4 provides a set of development guidelines that will achieve high-quality, people-scaled design for buildings, streets and landscapes. • CHAPTER 5 explores key transportation topics that shape improved ways that residents and visitors can move about the city. Analysis and recommendations for IH-37, for SEA District access, for public transit, and for parking are included. Downtown Study Area and Districts 14 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 INTRODUCTION | A new era of opportunity for Corpus Christi PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 15 INTRODUCTION | A new era of opportunity for Corpus Christi 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 momentum to spur additional actions that will further enhance the Downtown Area.16 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 INTRODUCTION | A new era of opportunity for Corpus Christi 2Priority Policy Initiatives and Implementation How to build the Downtown Area vision Downtowns, 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. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 17 The Downtown Management District, one of the Downtown Area’s major community organizations, held this open house in November 2014 to highlight its priority goals and actions for the next three years. Events like this help achieve the Downtown Area vision by publicizing and coordinating opportunities for the area’s many stakeholders to work together toward common goals. 18 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | 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. INITIATIVES REAL ESTATE REINVESTMENTUtilize TIRZ #3 to unlock market-driven development with flexible, effective options serving the different incentive needs of different projects. Target tax abatement and other incentives to reinforce neighborhoods with new job and mixed-income housing development. Proactively encourage redevelopment of well-located underutilized properties.INFRASTRUCTUREFocus infrastructure investments to maximize leverage of private sector investment. Organize parking at district scale to increase convenience and efficiency. Actively manage event traffic. Transform old Harbor Bridge infrastructure to connect districts and the bay with walkable development and access.GREAT PLACES FOR PEOPLEIntensify destination arts and retail programming. Fill missing links in Corpus Christi’s signature waterfront park and path network. Create clean, safe, welcoming places. 1 2 3 4 5 6 7 8 9 10 VISI O N T H E M E S Enc o u r a g e m a r k e t - d r i v e n d e v e l o p m e n t . Cre a t e m o r e h o u s i n g c h o i c e s . Rec o n n e c t n e i g h b o r h o o d s . Com p l e t e a w a t e r f r o n t p a r k and t r a i l n e t w o r k . Cele b r a t e t h i s u n i q u e p l a c e t o live, w o r k , l e a r n a n d p l a y . PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 19 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS • Complete and apply a project plan for TIRZ #3 that requires applicants to demonstrate finan- cial need and consistency with DADP goals, and offers incentives in several forms that can be tailored to specific project needs. These different forms should include tax rebates of variable duration, and infrastructure including utilities and street improvements. See also TIRZ #3 funding priorities under Initiative 4. • Assess project financial need through third party professional evaluators. Establish a means for discussing project financial need and appropriate incentive packages with appli- cants in confidence (using real estate finance professionals not on city staff or the TIRZ board), and then providing recommendations to the TIRZ board for review and approval. • Develop and adopt design guidelines for new projects in TIRZ #3. Examples of such guide- lines are included in Chapter 4 of the Down- town Area Development Plan. These reason- able design standards provide investors a predictable context for project review, and help ensure continued design quality across the TIRZ area as additional projects are developed. This helps to maintain and increase value of all properties. • Once an efficient, effective means of managing TIRZ #3 is in place, consider creating addi- tional TIRZ area in the downtown study area in places where redevelopment is especially desired. As a first priority, consider extend- ing TIRZ #3 to include the Agnes and Laredo Street corridors, to promote reinvestment along these important downtown gateways. Establishing a North Beach TIRZ should also be considered. • Suspend use of the city’s established tax abate- ment program in the TIRZ #3 area, where it undermines TIRZ resources. Instead, focus the tax abatement program in areas outside TIRZ #3, where it will offer greater value (see Initiative 2). Inside TIRZ #3, TIRZ-funded tax rebates can offer equal or greater value to development projects than the tax abatement program. Utilize TIRZ #3 to unlock market-driven development with flexible, effective options serving the different incentive needs of different projects. RESPONSIBILITY City Business Liaison, TIRZ #3 board RESOURCES Established City operations, TIRZ revenues TIMEFRAME Policy updates were completed within one year. Implementation ongoing MOMENTUM > TIRZ #3 Project Plan updated and implemented > Nine projects have advanced in 18 months thanks to TIRZ #3 incentives. REAL ESTATE REINVESTMENT 1 initiative 20 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision TIRZ #3 DADP Study Area TIRZ #3 Boundary PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 21 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS • Explicitly expand tax abatement eligibility to non-convention center hotels, multi-tenant of- fice buildings, and full tax abatement levels for small businesses with as few as 20 employees. • Focus tax abatement and other non-TIRZ incentives (such as fee waivers, Type A/B funds, Affordable Housing Trust funds, or sale of surplus public land at reduced cost) on areas outside of TIRZ #3, to avoid redundancy or conflicts. (TIRZ #3 can independently fund tax rebates—equivalent in effect to tax abate- ment—and targeted infrastructure improve- ments to support eligible development within its boundary.) • To leverage the greater impacts possible with revitalization projects that are concentrated within compact areas, prioritize provision of tax abatement to projects in areas that are highly visible, accessible, and include a num- ber of large parcels with revitalization poten- tial and multiple owners. • A base level of tax abatement may be offered to any proposed project consistent with DADP goals, but higher levels of tax abatement should be offered only to applicants demon- strating financial need for it. Determine finan- cial need through the approach recommended for TIRZ #3. • Consider applying the Downtown Area Devel- opment Plan’s Design Guidelines to any project receiving tax abatement incentives. As for the TIRZ #3 area, applying design guidelines will make the project approval process more predictable, and will encourage quality develop- ment throughout the study area, help maintain and increase property value over time. • Utilize additional resources to help make possible the development, renovation and preservation of affordable/workforce housing serving a broad spectrum of incomes. Current and potential resources include: >Type A/B funds. Continue to utilize Type A/B funding to help create new multifamily housing options at below-market rates to address demand from households. As one potential use, consider funding property acquisition for new housing construction, in coordination with Initiative 3. >Corpus Christi Affordable Housing Trust. This new lending entity would utilize Cor- pus Christi Finance Corporation Bonds to provide low-interest financing and permit fee waivers to affordable/workforce housing development projects. >Neighborhood Empowerment Zones. These zones may be created as priority areas to offer tax abatement, fee waivers and/or other development incentives. RESPONSIBILITY City manager’s office, with support from EDC and Type A/B board RESOURCES Established City operations TIMEFRAME Apply updated policy within one year • Update and consolidate information on devel- opment incentives, to make the full range of policies and choices clear to developers, prop- erty owners and others interested in making investments. This should begin with a collab- orative effort between the City and the Corpus Christi Regional Economic Development Corporation to update information available online, and to designate a single, consistent point of contact for comprehensive informa- tion. It should also extend to partnerships with local community organizations (such as the Uptown Neighborhood Initiative and Down- town Management District) and other entities who can help connect potential developers with these resources. Target tax abatement and other incentives to reinforce neighborhoods with new jobs and mixed-income housing. REAL ESTATE REINVESTMENT 2 initiative 22 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision Priority areas for 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. Priority incentive areas outside of TIRZ #3 TIRZ #3 DADP Study Area PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 23 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS Target privately-owned property by proactive- ly contacting property and business owners to highlight market potential, incentive policies, re- cent and planned public infrastructure improve- ments, and other DADP elements that establish a more predictable and beneficial setting for investment. To the extent possible, task DMD, UNI or other locally-focused agents to conduct this outreach to maximize impact. • Target underutilized publicly-owned property by offering it for sale to private developers for development of specific projects that support DADP goals. Time these sales to when devel- opment is favorable due to market conditions, completed infrastructure improvements, or other factors. • Encourage reinvestment in privately-owned vacant buildings or lots in prominent areas. Inform owners of real estate market analysis findings, TIRZ #3 incentives, and the predict- able framework provided this plan and its guidelines. Encourage property sale or part- nering to tap developer expertise with new market opportunities. • Establish Vacant Building Registry to assist with identifying opportunities for investment. • Where extended vacancy is anticipated, seek opportunity for temporary “pop-up” program- ming of vacant lots and storefronts, by arts or recreation organizations or other entities. • Explore opportunities to expand Heritage Park and other areas as an opportunity to improve our Convention market reach with outdoor programming space and to protect the viability of existing public facilities and investments. RESPONSIBILITY City Business Liaison, with support from DMD, UNI and/or other area improvement entities for outreach to private property owners, and from REDC, city-af- filiated housing corporations or other appropriate entities for strategic land acquisition, holding and sale. RESOURCES Operations through established funding streams for City staff and area improvement entities; property acquisition through Type A/B funds or other strate- gic economic development sources (and ultimately revolving funds through sale of parcels). TIMEFRAME Apply updated policy within 1 year. MOMENTUM Nueces County has attracted a development proposal for restoration and adaptive reuse of the former Nueces County Courthouse. Bringing this prominent vacant building back to life with an appropriate use would benefit the entire Downtown Area, as a demonstration of smart real estate reinvestment at an important gateway. Proactively encourage redevelopment of well-located underutilized properties. REAL ESTATE REINVESTMENT 3 initiative 24 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision Existing Harbor Bridge Future Harbor Bridge alignment Potential Redevelopment Sites PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 25 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS • Pace City investment in streets, parks, utilities, parking and other infrastructure in parallel with private development projects. See pages 48–49 for priority infrastructure invest- ments in the downtown study area. Integrate appropriate priorities and concepts developed by stakeholders such as the Downtown Man- agement District. Include North Beach water service upgrades where needed. Unless there is clear immediate need or benefit for improve- ment, begin infrastructure project investment only when private development that will benefit from the infrastructure improvement is moving forward. • Top priority use of TIRZ #3 funding should be for investments that directly enable develop- ment projects, such as gap financing, utility con- nections, sidewalk or street tree improvements, or other general street improvements/upgrades directly related to the project. Remaining TIRZ funds may then be invested in broader improvements serving the district. Larger scale infrastructure like street extensions and parking structures may require funding from other sources such as the City’s biannual capital funding bonds paid through its general budget, or grants such as have been used to improve Downtown Area street lighting. • Continue to work closely with the Texas De- partment of Transportation to confirm design and funding for new bridge, street, multi-use path and park infrastructure (associated with the New Harbor Bridge and areas where the existing Harbor Bridge and its approach streets will be removed) to ensure these in- vestments fully support DADP goals. See also Initiative 7. • Minimize any adverse impact on area prop- erties and businesses from infrastructure construction by: > Designing and phasing projects to reduce time and area of impact, > Enforcing performance criteria for contrac- tors (such as incentives for timely project completion), > Investing in “we’re open for business” cam- paigns that highlight operations and access during construction through supplementary signage or other publicity, and > Involving local stakeholder organizations such as DMD, UNI, SEA District and NBCA in planning and applying these impact mitiga- tion strategies. Given the large scale of work anticipated with construction of the New Harbor Bridge and removal of the Existing Harbor Bridge, work closely with the Texas Department of Transpor- tation, its contractors, and community stake- holders to avoid adverse impacts. RESPONSIBILITY City Business Liaison, TIRZ #3 board, City Engi- neering Department, and City Planning staff with support from area stakeholder organizations such as DMD, and community organizations; and from partner agencies building and using infrastructure including the Texas Department of Transportation, CCRTA and Port of Corpus Christi. RESOURCES TIRZ #3 funds; City and grant-sourced capital im- provement funds; Federal and state transportation funding associated with the New Harbor Bridge, port improvements and other projects; Type A/B funds and/or Marina revenues for appropriate waterfront projects. TIMEFRAME Confirm conceptual design and funding of New Harbor Bridge-related projects. Build development project-related infrastructure in parallel with de- velopment. Complete a construction management plan with affected stakeholders at least two months before starting any infrastructure project. MOMENTUM > Reconstruction and relocation of Shoreline Boulevard in the Bayshore Neighborhood, enhancing access to the Downtown Area and creating improved waterfront park area. > Comprehensive reconstruction of Staples Street, encouraging business and property investment in this important corridor linking the Downtown Area with Southside. Support new development with infrastructure investments that are timed and located together with private investment. INFRASTRUCTURE 4 initiative 26 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision Capital investments have enhanced the Downtown Area as a place to invest and visit. Recent initiatives include Shoreline Boulevard reconstruction (left), a new 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. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 27 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS Encourage sharing of parking spaces by uses with different demand peaks (such as daytime office worker demand and evening/weekend res- ident demand) through private agreements and/ or district parking policy. This will help mini- mize cost and land area needed for new parking, while providing new revenue to existing property owners. Contact current owners of underutilized parking to confirm potential interest in leasing spaces to others. Connect development appli- cants to these parking owners. • Over the longer term, directly and/or indirectly create public parking shared by multiple users to enable additional development projects. A direct approach would involve proactive acqui- sition of land suitable for structured parking, in areas of known development interest. An indirect approach would encourage develop- ment applicants to incorporate shared parking in their projects by committing to fund some or all of a parking structure with City capital funds, TIRZ revenues and/or other appropriate, available sources. See Development Guide- lines chapter for design guidelines explaining how structured and surface parking should be designed to enhance walkability and safety. • Design and install clear, consistent signage for parking facilities open to the public. Coor- dinate pricing of publicly accessible on-and off-street parking, with prime on-street spaces priced higher to encourage more frequent turnover. • Rationalize public on-street parking by estab- lishing a consistent meter policy in the Marina Arts District, Uptown, North Beach and any future areas designated for metered parking. The policy should determine appropriate meter pricing and time allowances for meters on each street, calibrated to characteristics of nearby destinations. Conduct an inventory of supply and demand to inform policy approach. Coordinate with planned relocation of some on-street parking spaces as part of Chaparral Street improvements. • Enhance the Parking Advisory Committee with additional professional parking expertise, through its membership and/or staff resources. • Reinvest parking proceeds into maintaining and building additional parking, maintaining or improving sidewalk facilities, and/or other priority needs in the parking districts. • In North Beach, ensure adequate parking for visitors to the beach and other attractions. RESPONSIBILITY CCPD Parking Control Division, with support from Parking Advisory Committee, City Business Liaison, DMD, and other appropriate stakeholders. Coordi- nate with street operations and capital projects. RESOURCES Fund management through current parking meter revenues. Fund new parking structures through the City’s capital improvement program or other avail- able sources, with possible supplemental funding from TIRZ #3. TIMEFRAME Update Marina/Downtown/Uptown parking policy within 1 year. As developers apply for development projects, discuss with them the potential for inclu- sion of public parking on their sites, and connect them with owners of available parking. As part of Action 3, contact owners of sites suitable for poten- tial longer-term public parking structures within 2-5 years to determine interest. MOMENTUM > TIRZ #3 Downtown Parking Study led to adoption of the Downtown Parking Study Action Plan that will guide implementation strategies for the next three years, including an improved parking pricing and management approach Organize parking at district scale to increase convenience and efficiency. INFRASTRUCTURE 5 initiative 28 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision 4,115 spaces 2,309 spaces 1,550 spaces 2,047 spaces Uptown Marina Arts District 412 143 305 305 300 917341 239 15 300 300 126 111 71 500 185 950 124 53 53 50 53 58 80 61 60 550 282 325 346131 170 164 207 302196 196239 51 266 266 277 691075 WHATABURGER FIELD AMERICAN BANK CENTER ART CENTER MCGEE BEACH PARK AVENUEI-37 LIPAN STREETCHAPARR A L S T R E E T BROADWAY STREET WATER STREET MARINA CITY HALL Off-Street Parking Concentrations in Downtown and Uptown District-scale parking management can help utilize existing, underutilized structured parking spaces to support new development, and enable redevelopment of surface parking lots for higher-value uses. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 29 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS • Establish a working group responsible for planning and implementing traffic and parking management in the Downtown Area. Include participation by Corpus Christi Convention and Visitor’s Bureau, Corpus Christi Street Operations Department, Corpus Christi Police Department, CCRTA, DMD, and other stake- holders as appropriate, under leadership of the CCCVB. Determine typical levels of manage- ment intervention needed depending on size/ attendance of events. • Consider these strategies, among others, to improve access to and from large events in the SEA District and other portions of the Down- town Area: > Provide people driving to events directions, via real time street signage and through advance notice, that disperse traffic to and from different events across multiple routes such as Port Avenue. > Use signage and consistent pricing to direct drivers to parking efficiently, preventing drivers from having to travel additional blocks seeking parking. > Minimize pedestrian/vehicle movement conflicts near venues by temporarily limiting vehicular access within one block or other appropriate distance from venue. > For events large enough to merit park-and- ride shuttles, temporarily designate dedicat- ed lanes to serve shuttles to ensure efficient movement. Offer ferry service in addition to buses. > Provide additional programming, dining or other activities before and after major events to spread driving trips over a longer period of time and reduce traffic peaks. • Help advance supportive infrastructure investments like improved walks between Shoreline Boulevard, Chaparral and Brewster Streets, Port Avenue and area parking facili- ties, and potential vehicular traffic connection from Shoreline Boulevard at the Art Museum of South Texas to Port Avenue. • To manage event-related traffic and parking in other portions of the study area, set up similar working groups and apply successful coordina- tion techniques used in the SEA District. RESPONSIBILITY CCCVB, DMD, with support from Corpus Christi Street Operations Department, Parks & Recreation Department, and Police Department, CCRTA and other stakeholders as appropriate. RESOURCES Shared support from SEA District, City departments, CCRTA and/or other involved stakeholders. TIMEFRAME Establish working group within 3 months. Actively manage event traffic.INFRASTRUCTURE 6 initiative 30 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision Concept for walking path and street alongside the Water Garden, connecting Shoreline Boulevard and Chaparral Street and creating additional arts and event programming opportunities. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 31 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS • Study and confirm preferred street network connections to replace the current interchange at IH 37 and the US 181/Harbor Bridge ap- proach at Broadway Street. • Rebuild IH 37 from the Crosstown Expressway to Mesquite Street as a boulevard with lower traffic speeds, a landscaped median, sidewalks east of Staples Street, and opportunity for development adjacent to the right of way. > Consider restoring the original street name for this corridor, Aubrey. > Create street connections that maximize development opportunity on adjacent sites, create safe walking and biking conditions, distribute traffic via multiple routes across a gridded street network, and have moderate maintenance costs. > Consider a roundabout at the intersection of Aubrey and Broadway as a signature gateway to Corpus Christi and the bayfront. > Consider one or more additional intersec- tions between Carancahua and Waco Streets offering improved vehicular, pedestrian and bike connections between Uptown, Wash- ington-Coles, SEA District and regional highways. > Maintain communication and keep up to date on the Harbor Bridge Project construc- tion process with Texas Department of Transportation (TxDOT). • Restore east-west street connections across the old Harbor Bridge approach in the SEA Dis- trict, and create a new grade-level street along the approach, utilizing new Harbor Bridge project funding. Similarly, in North Beach, extend Timon Boulevard and cross streets where the existing bridge will be removed. De- sign streets to be safe and inviting for walking. Discuss new street alignment and design with area property owners to ensure new streets support development opportunity. • Ensure convenient use of multiple access routes to the SEA District, including Port Avenue and the potential future Staples Street extension to Fitzgerald, as well as Broadway and existing streets to the east of the current bridge. • Ensure the project enhances Downtown and Uptown connections at key intersections along I-37 between Port Avenue and Shoreline Boulevard, and via Agnes and Laredo Streets. Ensure the project enhances North Beach access with convenient, attractive access at Beach Avenue connecting to Surfside and Timon Boulevards. • Ensure that all major highway approaches have programmable signage that can be used to provide access instructions for events and tourist destinations. RESPONSIBILITY City Planning & ESI Department, City Engineering Department, with support from TxDOT RESOURCES New Harbor Bridge funding for specific projects. Supplemental city capital funding for areas beyond the scope of the Harbor Bridge project. TIMEFRAME Timed with the Harbor Bridge Project. Transform old Harbor Bridge infrastructure to connect districts and the bay with walkable development and access. INFRASTRUCTURE 7 initiative 32 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision Transforming obsolete Harbor Bridge approach highways into walkable city streets PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 33 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS • Develop and apply a coordinated approach to Downtown and Marina branding, building on branding efforts by the DMD and Corpus Christi Marina. • Coordinate branding and marketing efforts to visitors among the DMD, Marina, SEA District, CCCVB, American Bank Center, Texas State Aquarium, USS Lexington, hotels and other visitor industry stakeholders • Add regular dining, recreation and/or other destination activities along Shoreline Boule- vard to highlight and expand synergies be- tween the Marina, Bayfront, Downtown and adjacent areas. Enable expansion of the Art Center of Corpus Christi’s restaurant/café space with outdoor dining as part of transfor- mation of former Shoreline Boulevard right of way into park space. Program Shoreline Boulevard median space near Lawrence and/ or Peoples Street with dining, starting with mobile vendors and exploring potential for more permanent restaurant facilities. Require building development and major renovation projects in this area to include active ground floor uses facing Shoreline Boulevard, prefera- bly including restaurants or shopping. • Create a working inventory of available downtown retail space to assist marketing to potential retail business tenants. To the extent possible, focus retail uses within one block of Chaparral Street to create synergy. • Create a stronger presence of the arts along or within one block of Chaparral Street. Replace prominent vacancies with galleries, studio space and/or other arts-related programming. Install public art (preferably on a rotating basis) along improved sections of Chaparral, La Retama Park and/or other key public spac- es. Engage the Art Gallery of Corpus Christi, TAMU Department of Art, Art Museum of South Texas, gallery owners and/or other arts stakeholders in programming and publicity. • Relocate graduate programs in the Department of Art of Texas A&M University Corpus Christi (TAMU-CC) to Downtown. RESPONSIBILITY DMD and Corpus Christi Marina for Downtown/Ma- rina branding and marketing; CCCVB with support from other stakeholders noted above for broader branding and marketing; DMD, Marina and Art Center for Shoreline Boulevard programming; DMD, Art Center and other arts organizations and stake- holders for arts programming; Corpus Christi City Council, TAMU-CC and DMD for downtown graduate arts facility. RESOURCES DMD funding from public improvement district and City; contributions from stakeholder organizations; potential TIRZ #3 funding; TAMU-CC. TIMEFRAME Update branding and marketing for the Downtown/ Marina and broader Downtown Area by end of 2017. Expand Shoreline Boulevard programming during summer 2018; add more permanent dining opportu- nity by 2019. Fill at least five vacant downtown retail spaces by end of 2019. Open downtown TAMU-CC graduate arts facility within 5 years. MOMENTUM > Marina Arts District branding conceived and launched > Broader downtown area branding initiative under way Intensify destination arts and retail programming.GREAT PLACES FOR PEOPLE 8 initiative 34 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision Concept for expanded outdoor dining, walking, seating and Marina/bay observation areas occupying former roadway between the Art Center and the Shoreline promenade. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 35 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS • Complete reconstruction of the Marina’s boat slips south of Coopers Alley. • Complete design and construction of Shoreline Boulevard park improvements between Fur- man Avenue and Coopers Alley, using funding previously dedicated. • Design, fund and implement Phase II Shore- line Boulevard walkability and streetscape improvements between I-37 and Lawrence Street. Add crosswalks across Shoreline Boule- vard at any cross streets where they are absent, such as Schatzell, People’s (north side), Starr, Taylor and Twigg Streets. Include curb bump- outs, signage or other devices to promote traffic speeds at or below 25 mph. • Complete design and construction of North Shoreline Boulevard promenade from the Texas State Aquarium ferry dock to Bridge- port Avenue and the Beachwalk, using funding previously dedicated. • Connect the new Harbor Bridge multi-use path to neighborhoods and the bay with a new multi-use path extending west to Hillcrest, East to Shoreline Boulevard via Washing- ton-Coles and the SEA District, and south to Uptown. Include the Solomon Coles Recre- ation center and historic Old Bayview Ceme- tery as part of the route. • Connect the new Harbor Bridge multi-use path to North Beach and the bay with a new multi- use path extending along Beach Avenue to the Beachwalk, and along Timon and Surfside Boulevard to the Texas State Aquarium ferry dock. • Build the planned birding park in North Beach north of Beach Avenue, utilizing new Harbor Bridge required wetlands mitigation. • Connect Uptown to the bay with improved pedestrian lighting and walks along Leopard, Peoples and Lawrence Streets, Cooper’s Alley, and along Park Avenue from South Bluff Park to McGee Beach. Include bike infrastructure as prescribed in the adopted Bicycle Mobility Plan. Include sidewalk, crosswalk and acces- sible ramp improvements at the bluff along Broadway to enhance Uptown-Downtown connections. • Explore opportunities for pedestrian-only corridors throughout the Downtown planning district. • Recruit ferry service provider or similar service with stops at the SEA District (at Ortiz Center dock) and increased service frequency (30 minutes) by replacing the previous model of a single ferry with multiple smaller boats. Explore private and public-private models. RESPONSIBILITY City Planning & ESI Department, Engineering Ser- vices Department, Parks & Recreation Department, CCRTA bus service RESOURCES Dedicated and future capital project allocations; CCRTA for bus service, TxDOT mitigation require- ments TIMEFRAME Complete Shoreline Boulevard crosswalk improve- ments,Leopard/Peoples Street lighting improve- ments and marina boat slips within 3 years. Com- plete park and path improvements along Shoreline Boulevard and Park Ave. within 4 years. Complete North Beach birding park and Timon/Surfside path within 5 years. Complete new Harbor bridge path connections in conjunction with the bridge comple- tion. • Inaugurate a Bayfront shuttle service along the Shoreline Boulevard corridor between the SEA District and downtown. Brand the service differently from standard public transporta- tion services, and proactively market service to visitors (as well as the Corpus Christi commu- nity). • Consider opportunity to connect waterfront paths to Westside neighborhoods with multi- use trails along former rail corridors. Fill missing links in Corpus Christi’s signature waterfront park and path network. GREAT PLACES FOR PEOPLE 9 initiative 36 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision Bayfront Park & Path Network PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 37 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision KEY ELEMENTS • Continue and expand the highly successful public/private partnership and volunteer efforts led by the Downtown Management District (DMD) promoting cleanliness, safety, and a welcoming environment in the Marina Arts District. These efforts include presence of uniformed “Clean Team” staff who perform dual roles: 1) maintaining downtown public places, and 2) serving as tourism ambassadors providing people information and assistance. They also include periodic volunteer events for cleaning, painting and other maintenance of public streets and parks. • Consider applying similar initiatives in other portions of the Downtown Area. • Continue the DMD’s partnership with the City to manage the bike patrol program, which con- tracts off-duty police officers to ride downtown streets, providing additional security. • Encourage regular use of parks, include the recently rebuilt park spaces at La Retama Park and along Shoreline Boulevard, through regular maintenance. Maintain facilities sup- porting daily use, and program periodic events, to leverage the parks’ amenity value and to promote safety. • Address issues associated with public nui- sance complaints and transient populations. This includes ongoing efforts by the DMD, and other stakeholders as applicable, to communi- cate with social service providers. • Continue the mural painting programs that have been applied in the Marina Arts Dis- trict and SEA District for buildings as well as electrical boxes and other infrastructure. Engage local arts and business organizations to provide artwork that celebrates distinctive qualities of the Downtown Area. • In coordination with Initiative 8, develop a plan for signature architectural lighting and signage in the Marina Arts District and/or other areas. RESPONSIBILITY DMD, other area service organizations, City Busi- ness Liaison, Parks & Recreation Department, Police Department. RESOURCES City and private-sector funding. TIMEFRAME Ongoing. MOMENTUM > Implementation of new street cleaning equipment Create clean, safe, welcoming places.GREAT PLACES FOR PEOPLE 10initiative 38 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision Downtown Management District staff and volunteers help maintain curb markings. New murals include one covering the Corpus Christi Caller Times building. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 39 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision DOWNTOWN AREA FRAMEWORK: BAYFRONT PARK & TRAIL NETWORK 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 “beachwalk” 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 Washington-Coles neighborhoods connecting both to the SEA District and the bay. The recreation trail would be comprised of wider sidewalks, dedicated bike lanes, and/or shared bike lanes along existing streets, with beach trails and bridge treat- ments to complete the network. 40 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 41 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 District, while privately owned sites are distributed throughout the Downtown Area districts. 42 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 43 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision 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 a transportation 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. 44 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 45 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision DOWNTOWN AREA FRAMEWORK: ARTS & CULTURE FRAMEWORK The arts play a 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 Hispánica 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 identity. 46 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 47 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision INFRASTRUCTURE INITIATIVES PARKS AND PATHS G1 Landscape & paving improvements— La Retama Park. COMPLETED G2 Park improvements—Water’s Edge Park. COMPLETED G3 Artesian Park—upgrade irrigation, land- scaping, gazebo. COMPLETED G4 Park improvements—H. J. Williams Park G5 Shading, streetscape, food truck plaza— Shoreline Boulevard at Arts Center and/or Lawrence G6 Park improvements—South Bluff Park. G7a Bike/ped improvements—Antelope from Staples to Broadway; Peoples from Broadway to Shoreline (3,920 lf) G7b Mesquite St bike boulevard (Cooper's Alley to I-37—3,330 lf) G8a Waterfront bike/ped improvements— Art Museum to Art Center (6,930 lf) G8b Bike/ped improvements—waterfront between Art Museum and ferry dock/ Ortiz Center (1,500 lf) G8c Bike boulevard—Ortiz Center to I-37 on Mesquite (3,700 lf) G9a Cycle track & transitional bike bou- levard—Hillcrest Park to Mesquite via Winnebago, Sam Rankin, N Sam Rankin, Resaca (11,000 lf) G9b Bike boulevard—Port Ave from Mes- quite, W Broadway, Lexington, Minton, Kennedy, Koepke, Van Loan, Noakes to Nueces Bay Blvd (7,730 lf) G10a Cycle track—Winnebago, Staples, Comanche, Alameda G10b Cycle track, bike boulevard, Blucher Park path—Comanche from Culbertson, Blucher Park, Cooper's Alley G11a South Chaparral and Coleman bike boulevards (4,920 lf); Park Ave cycle track (930 lf) G11b Buford and 3rd St Cycle tracks (3,850 lf); 6th St Bike boulevard to Morgan (1,000 lf) G12 Recreation Trail—Aquarium to Dolphin Park along existing Beachwalk to New Harbor Bridge; along Timon and Surf- side median (8,000 lf) G13 Birding and wetland park PARKING P1 Parking supply/demand, placement and pricing study P2 Parking structure A (assumed north, I-37 or other appropriate SEA District location); 600± space structure, with occupied space along any adjacent street edges P3 Parking structure B (assumed south of Lawrence, or other appropriate location); 600± space structure, with occupied space along any adjacent street edges STREETSCAPE S1 Streetscape improvements S2 Streetscape improvements S3 Streetscape improvements S4 Pedestrian improvements—Leop- ard Street at Broadway: stop signs, crosswalks S5 Pedestrian improvements—Accessible ramps from Upper to Lower Broadway S6 Light Up CC—Peoples Street S7 Uptown Neighborhood Initiative light- ing—Leopard Street S8 Phase 1: Brewster from Tancahua to Chaparral; sidewalks/shared ped/ vehicle street S9 Phase 2: Brewster/Mesquite/Chapar- ral/Hirsch S10 Phase 3: Chaparral to Whataburger Field and Brewster S11 Street/ped improvements—Shoreline Boulevard S12 Street/ped improvements—Coopers Alley–Shoreline Blvd to Broadway S13 Street/ped improvements—Lawrence Street–Shoreline Blvd to Broadway S14 Street/ped improvements—Hill- crest-Kennedy Ave., Peabody Ave., Van Loan Ave., Hulbirt St., Minton St., Neuces St., John St. ROADWAY CHANGES AND/OR OTHER MAJOR STREET IMPROVEMENTS R1a Leopard Street Phase 1: Broadway to Tancahua completed R1b Leopard Street Phase 2: Tancahua to Josephine completed R2 Staples Street from Morgan to I-37 (Bond 2012). COMPLETED R3 Street extension—Shoreline Boulevard extension R4a Staples Street pedestrian and bike im- provements/safety, traffic calming—I-37 to West Broadway (2,000 lf) R4b Roadway and sidewalk improvements— miscellaneous streets (3,000 lf) R5a Study and confirm street plan replacing 37/Harbor Bridge/Broadway inter- change R5b I-37 Traffic Circle at Broadway R6 Street extensions—Power, Palo Alto, Fitzgerald, Resace & Hughes from Tancahua to Mesquite replacing Harbor Bridge approach (5 @ 720 lf = 3,600 lf); Rebuild Broadway (3,600 lf) R7 Street extension—Staples to Fitzgerald/ Tancahua connector (1,500 lf) R8 Water Street pedestrian and bike improvements/safety, traffic calming— Kinney to Furman (2,500 lf) R9 Park Avenue pedestrian and bike improvements/safety, traffic calming— Tancahua to Shoreline Blvd (1,600 lf) R10a Timon overlay—Coastal Ave. to Sandbar Ave. (6,000 lf) R10b Surfside overlay—Coastal Ave. to Reef Ave. (5,400 lf) R11 Beach Avenue from Bridge to Beach access (1,300 lf) UTILITY/INFRASTRUCTURE U1 Utility upgrades—Water main line upgrade/extension. ONGOING TRANSIT T1 New marina docks. COMPLETED T2 Recruit ferry service/station T3 Bus rapid transit—Staples Street 48 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 49 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision 50 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 PRIORITY POLICY INITIATIVES AND IMPLEMENTATION | How to build the Downtown Area vision 3District Framework and Reinvestment Priorities Targeted priorities for a vibrant and connected Corpus Christi INTRODUCTION The 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. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 51 For each of the districts, a list of reinvestment priorities is presented that identifies where the most proactive efforts promise the most trans- formative, catalytic, and cost-effective impacts— development of priority land parcels, improved streets for pedestrians and bicyclists, and/or new programs for parks, for example. District recom- mendations are also provided for land use, urban design, transportation and streets/public realm which present a range of specific public and pri- vate actions that would bring both near-term and long-term improvements. Marina Arts District “ Leveraging infrastructure investment and filling the gaps with live/work/learn/play” Uptown and Surrounding Neighborhoods “ Expanding choices for housing, jobs, and transportation” SEA District “ Promoting vibrant and accessible destinations within a walkable setting” Bayshore Neighborhood “ Connecting neighborhoods and people to the Bay and destination parks” Hillcrest “ Providing housing options and opportunities for current residents” Washington-Coles “ Strengthening an established neighborhood with connected streets and housing” North Beach “Beach and attractions” 52 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Downtown Study Area and Districts PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 53 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi 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 Downtown Management District (DMD) con- tinues to spur action through focused efforts on district operations and cleanliness, development initiatives and filling vacant storefronts, market- ing and events, and organizational management. The Marina has upgraded boating facilities and collaborated with the DMD on branding. There are several important and immediate oppor- tunities to further leverage and sustain these efforts, capturing the powerful potential of the Downtown Area’s core as a strong generator of economic growth and community identity. • Downtown and the waterfront are inex- tricably linked and deserve strategic invest- ment to be better connected. The ongoing Marina Arts District branding initiative and anticipated programming, public space and development improvements along Shoreline Boulevard will help the Downtown, Marina and shoreline parkland all succeed better as interconnected places. • Downtown’s compact, connected, walk- able environment is a core asset. This character can be reinforced by encouraging Marina Arts District KEY THEMES > Branding and walks that connect the Marina and traditional downtown > Buildings that benefit from, and help create, walkable streets > New housing that makes the district a lively, cohesive neighborhood > Great dining, arts, waterfront, and other attractions drawing people from near and far IDENTITY “ Leveraging infrastructure investment and filling the gaps with live/work/ learn/play 54 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Shoreline Boulevard in front of the Art Center looking north with new food offerings, arts, and activities. Outdoor dining and public art Shade trees and canopies Drive lane and parking for promenade and Art Center redevelopment of large surface parking lots and other underutilized land parcels with oc- cupied, active, high-value buildings and public 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, the Buena Vista and other recent downtown housing development to create a true neigh- borhood. • Downtown should continue to be a place where visitors gather to experience Corpus 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 The priority goal for land use in the Downtown 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- 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 of the 165-unit Cosmopolitan by 2020. POTENTIAL EXISTING PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 55 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Development should be targeted to sites near or on Chaparral Street with vacant, single-story buildings, large underperforming parcels with single ownership, and/or other underutilized sites such as large surface parking lots. With over 11,000 existing off-street parking spaces in the Downtown, there is ample opportunity to use existing parking—particularly structured park- ing—more efficiently among uses like housing and office that have peak demands at different times. This would enable redevelopment of existing surface parking lots with housing or other higher-value uses, while minimizing the significant costs of providing parking for new de- velopment. Rehabilitation of existing structures can also play a role in new housing—potentially leveraging historic tax credits as an important funding mechanism—with vacant multi-story and well-designed buildings like the former Montgomery Ward structure at the corner of Chaparral and Peoples as prime candidates. Future residents will in turn increase demand for existing retail and help support additional retail, dining and cultural offerings. The retail market analysis shows that the Mari- na Arts District possesses the Downtown Area’s best established cluster of destination retail and entertainment destinations, and some of its best opportunities to reinforce this cluster with more and larger venues. Live music and unique dining destinations are prime strengths, with opportu- nity to grow their share of market demand. The DEVELOPMENT PROGRAM MARINA ARTS DISTRICT Building Type/Density Multifamily residential with structured parking, office, hotel Typical Height Range 3–5+ stories Range of Development Quantity (in SF)1,000,000 sf Unit Counts 1,500–2,000 residential units, 150,000–200,000 sf office space See page 60 for more detailed information. 56 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi district’s established role in tourism and emerg- ing role as a neighborhood will strongly benefit from and contribute to a stronger retail and entertainment presence. The Marina Arts District is well known for its array of hotels along Shoreline Boulevard facing the waterfront which welcome tourists and visitors. The hotel market is performing well and continues to deserve a major presence in the Downtown. Active hotel proposals have focused on the SEA District (two hotels) and Bayshore Neighborhood (one hotel), but the Marina Arts District remains an appropriate place for poten- tial additional hotels and upgrades to existing hotels. Prospects for office space growth are less strong, as the office-inclined financial services, informa- tion and professional & business services sectors play only about half as much a role in Corpus Christi’s underlying economy as they do in the average Texas city. That said, demand for up to 100,000 square feet of additional downtown space for administrative and support industries is projected over the next 10 years. There is enough existing vacant office space in Downtown Corpus Christi to accommodate this. Trends in other downtowns like Corpus Christi’s that are seeing an influx of residents indicate that mixed-use downtowns particularly support the establishment and growth of small businesses, EXISTING POTENTIAL Chaparral Street at Artesian Park, looking south with new residential development and streetscape. New housing New housing Restored Ritz Theater Chaparral: wider sidewalks, compact lanes, two-way Artesian Park activated PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 57 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi which together contribute more to job growth than large businesses. Having a variety of uses present on or near all blocks—keeping streets active day and night, weekday and weekend—will help expand market potential for development. Improved walking connections between the concentration of office uses on the bluff west of Broadway, and the greater mix of retail, office, hotel and housing activities east of Broadway, could effectively improve the integration of land uses. This would enhance the emerging residential character present on parts of the bluff, and reinforce Chaparral Street retail by harnessing demand from more daytime workers. Urban design in the Marina Arts District should be geared towards creating an invit- ing, memorable, and walkable street and block pattern. Downtown already offers the city’s best environment for walkable mixed -use development—owing to its frequently spaced streets, human-scaled streets and sidewalks, and variety of established, interdependent land uses, These qualities are principally responsible for the recent attractiveness of downtown as a place to invest in new housing. To maintain and expand these qualities, and the investment that comes with them, any development incentives offered through TIRZ #3 or other means should be conditioned on building design that supports these goals. With each development project, this approach will enhance the quality and value not only of one parcel but of the streets and prop- erties around it as well. See chapter 4 for more detail on appropriate development guidelines. To leverage its traditional walkable charac- ter, the Marina Arts District deserves special emphasis on providing active ground floor uses like retail wherever possible, and particularly along established retail corridors. Active ground floor uses also deserve priority along Shoreline Boulevard, which lacks retail today but offers important opportunity for it with signature walks attracting tourists, workers and residents alike, and connections to the Marina. TRANSPORTATION AND PARKING The existing street grid has inherent advantages that enhance access capacity and convenience: walkable, bikeable scale; a density of destina- tions that makes walking, transit and biking access convenient; and multiple driving routes that prevent bottlenecks. Moving forward, transportation policy for the district should maintain and enhance this set of qualities, with particular emphasis on prioritizing walkability amidst the balance of transportation modes. Inviting people to walk or bike instead of drive through safe, convenient sidewalks, transit service and bike routes in Downtown will calm traffic, ease parking demand, and create still safer streets for pedestrians and bicyclists. Spe- cifically, transit improvements should take the form of a branded circulator for visitors (and others) that would run between the Art Center and the SEA District on Shoreline Boulevard linking the two districts. Similarly, recruiting a water ferry or similar service between the Marina, the SEA District (with re-established service) and North Beach would link all three districts efficiently while highlighting Corpus Christi’s signature bayfront. Established bus routes serving workers, residents and the gen- eral public should be improved with simplified routes and improved information. Continued linkage to the new RTA center on Leopard Street is essential and could be integrated within an improved Leopard Street (see Streets and Pub- lic Realm below). Convenient service to North Beach is also essential and must be integrated with street pattern changes associated with the new Harbor Bridge. With over 11,000 parking spaces in private garages and surface lots in the Downtown (including the two blocks west of Upper Broad- way to Tancahua Street), there is an abundant supply of parking that can be leveraged as an asset for future development. Focus on in- creasing utilization of existing parking by establishing district-scale parking man- agement that enables uses with different demand peaks to share spaces during the course of a day or week. In the near- term, surface lots can potentially serve new development nearby, while large surface lots themselves—particularly between Shoreline Boulevard and Water Street and along Chap- arral—may be prime candidates for redevelop- ment. In those instances, new parking could be contained on site within the new development (as in the Cosmopolitan) or be accommodated in nearby garages if applicable. Over time and with development momentum, additional structured parking utilizing public funds or through public-private partnerships might be considered in strategic locations. For further detail, see the Transportation Chapter on page 101 and the map of potential shared parking opportunities on page 59. 58 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi PARKING 4,115 spaces 2,309 spaces 1,550 spaces 2,047 spaces Uptown Marina Arts District 412 143 305 305 300 917341 239 15 300 300 126 111 71 500 185 950 124 53 53 50 53 58 80 61 60 550 282 325 346131 170 164 207 302196 196239 51 266 266 277 691075 WHATABURGER FIELD AMERICAN BANK CENTER ART CENTER MCGEE BEACH PARK AVENUEI-37 LIPAN STREETCHAPARR A L S T R E E T BROADWAY STREET WATER STREET MARINA CITY HALL LEGEND 11,395 parking spaces available Existing surface parking spaces Total 4,294 Existing structured parking spaces Total 6,917 Throughout area Organize management + placement of on street parking: pricing, time limits,and investment of proceeds Sample “parking sheds” with opportunity for land uses with different demand peaks to share spaces Office space, hotels, housing and retail can share use of some of the Marina Arts District’s many off-street parking spaces at different hours of the day, freeing parking lots for redevelopment and reducing need to build parking to serve new development. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 59 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi STREETS AND PUBLIC REALM While there should be current focus on lever- aging private investment and incentivizing housing, this development should be supported with targeted public investments in specific street and public realm improvements. For instance, the former northbound Shoreline Boulevard right-of-way between William Street and Furman Avenue offers a unique and timely opportunity to focus new arts, dining, and recreation programming tied to nearby uses (Art Center, YMCA) that will promote vibrancy on the waterfront. New or improved Shoreline Boulevard crosswalks at every intersection between Lawrence and Mann Streets should be implemented through wide paint striping, pedestrian controlled walk signals, ADA accessi- ble curb cuts, and landscape treatments to calm traffic and create a seamless integration between interior streets and the waterfront. In addition, “pedestrian and bicycle-only” days might be considered through the closing of Shoreline Boulevard northbound and southbound lanes to traffic on summer Sundays from sunrise to sunset. Phase 2 Chaparral Street improve- ments will be supported through dedicated City funding, but based on the Phase 1 precedent it is critical that construction processes emphasize unimpeded pedestrian and vehicular access to existing businesses, to minimize disruptions to these establishments. This can be accomplished through sequenced construction staging, public media alerts, and other forms of public informa- tion sharing. Improvements to Leopard Street and Upper and Lower Broadway are recommend- Proposed pedestrian improvements connecting Upper and Lower Broadway 60 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi ed, including improved landscape, paving, and lighting in the near term and pedestrian ramps in the long term to strongly connect Uptown and Downtown (see diagram on page 60). DMD programming of La Retama Park and Artesian Park should be continued to contrib- ute to a lively, community-building atmosphere. Both of these public spaces could be connected to the waterfront through a new multi-purpose recreational trail for pedestrians and bicyclists that ties into a larger network and links a variety of Corpus Christi public spaces and districts. The recreation trail could be extended into the marina T-heads at Peoples and Lawrence as a clear wayfinding route that welcomes people into the marina environment and provides access to the easternmost edge facing the bay. The trail should be defined by clear, consistently designed signage, shade, water fountains, benches and lighting, as well as opportunities for public art. As in these examples of rides led by Ride Texas and the Downtown Management District, portions of Shoreline Boulevard or other roadways could be closed to traffic on weekends or at other times of low traffic demand, to allow biking, walking and in- line skating. Potential promenade replacing former roadway at the Art Center of Corpus Christi PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 61 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi The Bayshore Neighborhood is defined by two main features—the parks along the waterfront and Corpus Christi Bay itself. Recent reconstruction of Shore- line Boulevard, Sherrill Park, Water’s Edge Park (formerly known as Bayshore or McCaughan Park), and the McGee Beach bathroom/conces- sion pavilion have dramatically enhanced the area’s appearance and opportunity for enjoyable activities near the water. Between this signature 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 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 is 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 sidewalks. A new approach would recognize this street’s potential as a gateway to the Bay from Uptown, with exceptional views to the water along the top of the bluff. Together, these changes will make the Bayshore Neighborhood a gracious, Bayshore Neighborhood KEY THEMES > The attractive, welcoming southern gateway to the Downtown Area > Signature waterfront parks > An established place to live that can grow into a waterfront neighborhood > Active hotels, churches, and neighborhood services IDENTITY “ Connecting neighborhoods and people to the Bay and destination parks” 62 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi connected, visitor- and family-oriented commu- nity steps from the Bay. An opportunity exists 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 residential, small office, and retail in the vicinity of Water Street. Other residential and institu- tional uses, including the YMCA and a number 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 area to the south. New privately-led development on underutilized land along Water Street will add two hotels and a health care facility. Other parcels offer excellent potential for new housing, with easy access and views to Water’s Edge and Sherrill Parks and the Bay to the east. This would complement and create a critical mass with new DEVELOPMENT PROGRAMBAYSHORE NEIGHBORHOOD Building Type/Density Multifamily residential with surface parking, multifamily residential with structured parking, hotel Typical Height Range 3–5 stories Range of Development Quantity (in SF)860,000 sf Unit Counts 1,000–1,500 residential units Water Street looking toward Downtown Bay Vista Apartments from Carancahua Street PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 63 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi residential land uses already taking shape at Bay Vista apartments (169 units) and Bay Vista Pointe apartments (181 units). There are also opportunities to strengthen land use connections with infill development between Bay Vista and the Spohn Shoreline Hospital, including housing, medical and other professional offices, and/or improved streets. In terms of urban design, view corridors are particularly important in the district, with long views to the Bay from the upper bluff. These views can be strengthened through improved streetscape and trees that define sidewalk edges 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 façades that address Shoreline Boulevard, Sherrill and Water’s Edge 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 a memorable district center. Proposed street section for Water Street, featuring shade trees and ground level plantings separating pedestrians from traffic, and narrower lanes to reduce vehicle speed TRANSPORTATION Public transit connectivity between the Bayshore Neighborhood, the Marina Arts Dis- trict, Uptown, and the SEA District, as well as points to the south should be clear, efficient, and accessible. This can logically take the form of improved public bus routes along primary north/ south corridors such as Tancahua, Carancahua, Chaparral, Water, and Shoreline Boulevard. Fu- ture connectivity should be considered through the dedicated Shoreline Boulevard circulator route that is being analyzed by the RTA and is one of the key recommendations in the DADP. The Shoreline circulator could ultimately connect to Spohn Hospital as well as Cole Park to link these destinations to the Marina Arts and the SEA Districts. STREETS AND PUBLIC REALM Improving Park Avenue and Water Street to make them inviting to pedestrians and bicyclists and to promote ongoing and future develop- ment deserves priority, as does repurposing the former Shoreline Boulevard right-of-way into an active, public space destination. The Shoreline Boulevard paving could be simply re-painted to 64 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi indicate places to exercise or sit, with new shade structures or other play-related elements. A ded- icated bike lane as part of the larger recreation 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 zones for shade trees or palms that would tie 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 parks are critical and should be implemented as a priority initiative as soon as possible. Conceptual Plan of re-striping and programming of abandoned Shoreline Boulevard at McGee Beach. A view on Park Avenue looking east toward the bayfront with new streetscape and infill housing. Improved park and beach destination Safe, generous, and attractive crosswalks Growing neighborhood along Park Ave. Walkable, bikable, tree-lined street with views to Bay POTENTIAL EXISTING PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 65 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Uptown is the focus of municipal 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 residential neighborhoods are arrayed to the west and south, and additional housing is present just to the east, including the Trinity Towers senior housing at Carancahua Street and Coo- pers Alley, and Atlantic Lofts at Carancahua and Winnebago Streets. At the same time, Uptown lacks sufficient cohesiveness to feel like a place of consistent identity and quality. As in the Ma- rina Arts District and Bayshore Neighborhood, however,housing can be a catalyst. There is potential to bring new market-rate and af- fordable housing to selected areas of Uptown and the surrounding neighborhoods, building 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. The significant visibility, accessibility and development gaps of these corridors enhance development opportunity, and the high visibility of potential new development would in turn have Uptown and Surrounding Neighborhoods KEY THEMES > The attractive, welcoming western gateway to the Downtown Area > Safe, vibrant, walkable corridors for living, working, and shopping along Staples, Leopard, Laredo, Agnes > New mixed-income housing opportunities > Variety of excellent transportation options IDENTITY “ Expanding choices for housing, jobs, and transportation” 66 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi an outsized impact benefiting the area’s image and market position. Ongoing reconstruction of Staples Street will help provide a better climate for investment in all these corridors. The private sector, City, Uptown Neighborhood Initiative and other stakeholders can produce visible change for the better in a variety of different ways. LAND USE AND URBAN DESIGN Market-rate development opportunities exist along the eastern edge of Uptown closer to the Marina Arts District, particularly in the vicinity of the Atlantic Lofts condominium building. New development here would create a concentration of residential units at the top of the bluff which might leverage existing parking structures while creating more pedestrian vi- brancy in Uptown. To complement this poten- tial, key parcels on Leopard Street between Broadway and the new RTA center should be redevelopment priorities. Several underuti- lized sites or large surface parking areas have the potential to be redeveloped in this location to bring vitality to Leopard Street. As an example, portions of the City’s own parking lots serving City Hall should be considered as potential de- Public/private partnerships and incentives for business development and affordable and workforce housing in Uptown south of Leopard Street are needed. Focusing established tax abatement tools, along major corridors like Agnes, Laredo, Staples, and Leopard, and expanding eligibility for small businesses can help. DEVELOPMENT PROGRAM UPTOWN Building Type/Density Single-family residential. Multifamily residential with surface parking, hotel, office Typical Height Range 2–5 stories Range of Development Quantity (in SF) 1,250,000 sf Unit Counts 500–1,000 residential units, 25,000–75,000 sf, office space PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 67 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi velopment sites. Making arrangements to accom- modate infrequent peak city hall parking needs on nearby blocks could free up enough space for new housing at the corner of Leopard and Staples Streets, extending south along Staples to comple- ment the new RTA building, making a powerful statement about new housing and development opportunities in Uptown. Staples Street still re- tains the character of a mixed-use corridor with potential for housing, retail, and small business- es. South of Lipan Street, the historic corridors Proposed street section: Leopard Street of Agnes and Laredo need particular attention as prominent entrance and exit points from the Marina Arts District (becoming more so with the coming of the new Harbor Bridge), and could provide a focus for affordable housing and diverse businesses. Public spaces such as South Bluff Park and Blucher Park provide important public space options for existing neighborhoods and potential new housing. TRANSPORTATION The CCRTA Staples Street Center at the inter- section of Leopard Street is a new Uptown land- mark. The $22 million facility provides a strong center of activity and use in the heart of Uptown, helping create a more marketable setting for real estate investment on surrounding blocks. This location allows efficient access and connectivi- ty to Uptown and the Marina Arts District east along Leopard and Lipan Streets and north along Staples Street to Washington-Coles. The DADP recommends extending Staples Street into the SEA District thereby creating even greater connectivity and access opportunities between Uptown and the waterfront. Uptown also presents important opportunities to create a network of convenient, safe bike routes serving the Downtown Area. Bike lanes parallel to Leopard on Antelope Street, and parallel to Staples on Alameda Street, deserve priority to serve major Uptown destinations and connect CCRTA headquarters at Leopard and Staples Streets CCRTA’s Staples Street Center provides extensive transit options to Uptown and surrounding neighborhoods. Bus routes 68 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi to Westside and Downtown. Connection to the new Harbor Bridge’s planned recreational path will open a direct off-street biking connection to North Beach. From the southern end of the New Harbor Bridge, east-west bike routes should connect with Park Avenue to access Shoreline Boulevard parks and trails. STREETS AND PUBLIC REALM Beyond the Staples Street improvements already underway, Leopard Street improvements deserve first priority to improve walkability and bikability in Uptown. Possibilities include reducing the number of vehicle lanes from four to three, expanding space for sidewalks, street trees, and occasional landscaped medians. A lighting initiative for increased pedestrian lighting—focusing on public safety for intensive- ly used pedestrian zones along Leopard Street (extending into the Marina Arts District along Peoples Street)—is already underway and should be fully coordinated and integrated with Leopard Street redesign (see potential street section, page 68). These improvements can complement new development to make Leopard Street an attrac- tive and economically strong gateway to the city. Critical improvements are also needed to make Staples Street, Agnes Street, and Laredo Street more walkable and inviting. Future infill devel- opment will help fully reinforce these corridors as active mixed-use destinations for residential, retail, and businesses. Visible businesses on side street New housing using existing parking Expanded sidewalks and landscape areas Shade trees New housing using existing parking POTENTIAL Leopard Street looking east towards Downtown with improved streetscape and infill development. EXISTING PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 69 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Washington-Coles is an estab- lished, historic neighborhood 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 tracks and Harbor Bridge to the east and I-37 to the south, Washington-Coles has long felt disconnected from the Marina Arts District, the SEA District and the waterfront. Largely as a re- sult of these barriers, the neighborhood has seen little market-driven investment in decades, and contains numerous vacant properties. The Harbor Bridge relocation project will dramatically lessen those barriers, opening new opportunities for connectivity and reinvestment in the neighborhood. Principal new street connection opportunities include the extension of Staples Street to the SEA District, a rebuilt “Nuevo Aubrey Street” to the Bayfront in the place of I-37, more direct connections to Tancahua and Carancahua streets, and ramp access to the new Harbor Bridge. Improved ac- cess and ample underdeveloped land present many opportunities for new residential and commercial development that can reinforce Washington-Coles KEY THEMES > Transformative reconnection to the waterfront and Uptown along new streets and recreational paths > Expression of a long, strong community history > New mixed-income housing opportunities IDENTITY “ Strengthening an established neighborhood with connected streets and housing” 70 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi neighborhood qualities and open up economic development. Several opportunities are present to rebuild Washington-Coles with development of mixed-income workforce housing: • aggregating vacant and underutilized proper- ties for redevelopment, • designating the neighborhood a priority area for tax abatement incentive, • re-using vacant city land such as the former Booker T. Washington School site (and eventu- ally, possibly highway right of way vacated by TxDOT) for housing, and • partnering with workforce housing providers. Affordable multi-family housing and affordable single-family ownership housing on compact lots could be focused within a couple blocks of Staples Street and on vacant parcels near West Broadway, Tancahua, and Carancahua Streets. These areas will open up as the closure of the Harbor Bridge link here will allow I-37 to be redesigned from a highway to a boulevard east of Carancahua Street. With focused attention and dedication over time, Washington-Coles can be repositioned as an attractive neighborhood once again, close to amenities in the Marina Arts District, SEA District and Uptown, and offering flexibility for job-intensive development as well. LAND USE AND URBAN DESIGN Current land use in Washington-Coles includes housing, three churches—St. Matthew, Holy Cross, and St. Paul—the Solomon-Coles commu- nity center, and several light industrial proper- ties near I-37. These uses are largely dispersed, with many vacant or underutilized properties between them, leaving no strong perception of a neighborhood or district. With future land use Washington-Coles could contain a variety of housing types such as these single-and multi- family housing examples. DEVELOPMENT PROGRAM WASHINGTON-COLES Building Type/Density Multifamily residential with surface parking Typical Height Range 2–5 stories Range of Development Quantity (in SF)1,680,000 sf Unit Counts 1,000–1,500 residential units PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 71 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi EXISTING POTENTIAL Staples Street has the opportunity to become a focus of affordable, workforce housing to strengthen the established Washington-Coles neighborhood. emphasis an open question, renewing housing as the neighborhood’s primary land use de- serves special emphasis for several reasons. It will leverage market opportunity, leverage city-owned and other vacant land with redevel- opment potential, fit with the existing neighbor- hood-scale street network, and revive a neigh- borhood with important history, particularly as a center of Corpus Christi’s African-American community. Portions of the neighborhood along I-37 can also be appropriate for office or other job-intensive uses benefiting from visibility and accessibility. Staples Street can be extend- ed through to the SEA District across disused portions of the Broadway sewage treatment plant, making this a more visible and attractive corridor for business investment. One block to the west, the former Northside Manor prop- erty has been closed following relocation of its affordable housing units to the Palms at Leopard, and the property is up for sale. Depending on the purchaser, this too might provide possibilities for 72 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi new workforce housing in a band of development 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 development opportunities will emerge be- tween the Old Bayview Cemetery, I-37 and West Broadway facing the bayfront and well connected to the Marina Arts, Uptown and SEA Districts. Repurposing the former train depot building in this area, alongside new development, could bring activity and some amount of retail or din- ing options to serve the community. TRANSPORTATION AND PUBLIC REALM The extension of Staples Street to the SEA District will transform the street network of Washington-Coles, making Staples a focus of pedestrian and bike improvements in concert with future development. Extension of Belden Street to intersect West Broadway should also be considered to add a third route connecting the neighborhood with the SEA District; this would require truncating the existing railroad spur to the former railroad station. Contingent on avail- able funding, rerouted public transit should take advantage of these new connections. A new east- west pedestrian and bicycle route, located along neighborhood streets and park space where available, would provide another important new spine in Washington-Coles. Portions of this have been proposed as part of the Harbor Bridge project; to be fully effective, the route should extend east to Shoreline Boulevard and west to Hillcrest, with connections to the Harbor Bridge The proposed pedestrian and bicycle network would be routed through Washington-Coles along Lake Street connecting west to Hillcrest, east to the waterfront and south to Uptown. PROPOSED PEDESTRIAN AND BICYCLE NETWORK WASHINGTON-COLES and Uptown. The proposed route would tie into the larger DADP pedestrian and bicycle network and greenway recommendation connecting to the Bay, Uptown, Hillcrest, and North Beach via the new Harbor Bridge. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 73 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Hillcrest 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 Bridge will create a significant barrier to the east, while surrounding port and industrial facilities 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 a consistent pattern of acquiring residential properties and removing any buildings on them, 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 vacant. Blocks to the east that remain residential have a mixture of occupied and vacant proper- ties. Houses vary in their state of repair; some are in good condition, while others need repair or are 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 of the neighborhood are occupied by Hillcrest Park, Bayview Cemetery and the abandoned, fire-damaged Crossley Ele- mentary School. I-37 HILLCREST PARK Hillcrest KEY THEMES > Improved neighborhood streets and parks > New recreational path connections to the New Harbor Bridge, waterfront and other neighborhoods > Options for living in or out of the district IDENTITY “ Providing housing options and opportunities for current residents” 74 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for 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- mercial real estate. A 2009 City-sponsored design charrette with 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 a buffer 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. New multi-family housing replacing the school and around the park would restore a neighbor- hood center. To date, no action has been taken on 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- portation to mitigate impacts of the new Harbor Bridge, will identify strategies to enhance quality of life for residents who remain in Hillcrest. City Planning staff is actively participating in this 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 I-37 PORT A V E N U E FUTUR E H A R B O R B R I D G E HILLCREST PARK Del Richardson and Associates, Inc. and current- ly under way, offers current residents opportuni- ty to sell their property, or receive rental assis- tance, and move to an alternative neighborhood, if they wish to do so. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 75 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Hillcrest is home to more than 200 families Industrial uses serve as a backdrop to the Hillcrest neighborhood The former Crossley Elementary School building, damaged by a 2013 fire Charrette concept and illustration of Hillcrest redevelopment vision from 2009 community charrette. To-date, implementation has not occurred of the plan envisioned. 76 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi THIS PAGE INTENTIONALLY LEFT BLANK. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 77 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi The SEA District is Corpus Christi’s pre- mier sports, entertainment, and arts destination serving an ever-growing local and regional population. Plan- ning for the SEA District’s future in light of the forthcoming Harbor Bridge relocation has been an intensive, ongoing process, driven by the 2014 Regional Urban Design Assistance Team (R/ UDAT) study. With the relocation of the Harbor Bridge, the SEA District stands to evolve from an auto-oriented destination area, separated from the Marina Arts District by I-37, to a more connected, accessible, and walkable setting. Key street and sidewalk improvements within the district, and pedestrian street improvements and public transit to and from the area are critical and should be implemented as soon as possible. In addition, there are significant development opportunities between the Convention Center and Federal Courthouse which would add needed housing in areas facing Shoreline Boulevard and the waterfront and bring added vitality to both. SEA District KEY THEMES > Corpus Christi’s premier sports, entertainment and arts destination > Exciting new places to play, work, and live > Attractive, walkable public streets, waterfront, and gathering places > New street and recreational path connections to the Marina Arts District, Washington-Coles and North Beach IDENTITY “ Promoting vibrant and accessible destinations within a walkable setting” 78 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for 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, the Museum of Science and History, Harbor Playhouse, the Art Museum and Convention Center. Excellent expansion opportunities for 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 along Shoreline Boulevard with ground floor entries and other active uses that take advan- tage of the new Shoreline Boulevard park zone and waterfront. Similarly, available land parcels could be developed north of I-37 between the old and new Courthouse buildings adding much needed vitality along this street segment. Land uses along North Broadway (old US 181 right- of-way) figure prominently for future parking and will be a focus of arrivals with walking and transit connections to facilities for events. DEVELOPMENT PROGRAMSEA DISTRICT Building Type/Density Multifamily residential with structured parking, office, hotel Typical Height Range 3–5+ stories Range of Development Quantity (in SF)1,590,000 sf Unit Counts 2,500–3,000 residential units, 50,000–100,000 sf office space, Convention Center hotel desirable PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 79 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi EXISTING POTENTIAL A roundabout concept replaces the highway interchange where I-37 today meets the current Harbor Bridge—this would create efficient traffic flow and a new gateway to Corpus Christi. Convenient traffic flow Enhanced development address Stronger connections among districts Expanded sidewalks TRANSPORTATION Three key enhancements are recommended in the SEA District to improve the transportation and pedestrian network: • Adding an extension of Shoreline Boule- vard between the Convention Center and Art Museum past the Water Gardens and connect- ing to Port Street will complete the Shoreline loop and tie the SEA District to the Marina Arts District and waterfront. A generous pedestrian promenade should be included along the new street segment, which could be closed during special events such as Ride-In movie nights. • Extending Staples Street past West Broad- way through Washington-Coles to Fitzger- ald Street is recommended. Promoting this important access link from the west once the Harbor Bridge is relocated would relieve traffic during events and connect Uptown, Washing- ton-Coles, and the SEA District. • The current I-37 and old Harbor Bridge highway interchange can be transformed once the bridge is relocated. A new gateway and traffic circle have the potential to allow for more clear and efficient wayfinding to the SEA District, the Marina Arts District, and Uptown while offering better pedestrian connectivity across the I-37 corridor. The current south approach to the bridge can be rebuilt as North Broadway Street, which existed here prior to bridge construction, and cross-streets linking 80 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Tancahua to Mesquite and other north/south streets. Broadway can connect directly into the south leg of the traffic circle, improving links to Uptown and the Marina Arts District. Port Street can also take on added significance as a way to enter the SEA District from the west— the street has already been improved to accom- modate high traffic volumes generated by events and industry. The primary north/south local streets of Chaparral and Mesquite should incor- porate pedestrian and bike improvements across the I-37 corridor to improve access and wayfind- ing from the Marina Arts District. Programmati- cally, an “event traffic management” plan should be put into place that coordinates the work of the City, TxDOT, RTA, and event hosts, along with event signage and other directional assistance to parking and event facilities. Public transit in the form of a dedicated Shoreline Boulevard circula- tor and recruiting a water ferry or similar service with a station at the Solomon Ortiz Center com- plete the SEA District access network. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 81 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi STREETS AND PUBLIC REALM 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 sidewalks will improve the identity of the SEA District as a place to stroll and circulate between attractions, creating dynamic synergies between 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 Hirsch, and finally Hirsch and Mesquite Streets. The recreation trail concept in the DADP should be integrated with recent park improvements along Shoreline Boulevard between I-37 and Re- saca Street. A new promenade around the Con- vention Center and Art Museum and reaching to a new ferry stop at the Solomon Ortiz Center extends the trail and is recommended to allow for ferry transit connectivity and a place for visitors to get close to the water (leveraging exception- 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. PROPOSED PEDESTRIAN AND BICYCLE NETWORK 82 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi POTENTIAL EXISTING The area between the Convention Center and Art Museum of South Texas, looking towards the new Harbor Bridge and showing an activated space with arts and Shoreline Boulevard connection to Port Street. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 83 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi North Beach is a tourist destina- tion and beachfront residential community with a mixture of single family homes, 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- rants, new single family residential construction to the north—with raised first floors and other flood prevention design elements—and projects such as the Aquarium expansion and improve- ments to North Shoreline Boulevard in front of the Lexington are changing the face of North 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 re-purposed or possibly redeveloped. Recogniz- ing the previous planning efforts and extensive community input embedded in the North Beach Development Plan (2011) and the North Beach North Beach KEY THEMES > Easy access to spectacular beachfront > Exciting opportunities to explore nature and history > A unique dining, shopping, and hotel destination > A connected neighborhood community IDENTITY “Beach and attractions” 84 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi 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 North Beach development along and off the waterfront is a reflection of the land’s proximity to the bay and vulnerability to flooding and storm events. Raised first floors, parking underneath, and other flood mitigation approaches are a common sight, and future development should carefully-follow City zoning, standards, and guidelines. Development opportunities exist in the northern area of North Beach near Beach Avenue, where recent single-family cottage development can expand further. Additional sites in the central and southern portions of the district will become available for potential development when the current Harbor Bridge infrastructure is removed. Opportunities here could include hotels, other tourism-related uses, and surface parking serving the beach and other visitor destinations. The DADP does not recom- DEVELOPMENT PROGRAM NORTH BEACH Building Type/Density Multifamily residential units and hotels with surface parking (some below buildings) Typical Height Range 2–5 stories Range of Development Quantity (in SF)1,860,000 sf Unit Counts 1,000–1,500 residential units PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 85 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi mend future development in sensitive lands west of the Harbor Bridge along the interior canal in order to encourage natural landscape and water retention areas, and to focus any development in areas with existing structures and infrastructure. Portions of that infrastructure have been upgrad- ed, and additional improvements will be needed to accommodate growth. TRANSPORTATION, STREETS, AND PUBLIC REALM First among these will be the creation of a welcoming Beach Avenue gateway at the new point of entry to North Beach off the Harbor Bridge. Beach Avenue should be improved with new pathways, destination signage, plantings, and lighting to ensure a bold and recognizable entrance point. Sculptural elements that reflect the Texas State Aquarium and Lexington could also be located here within the median of Timon and Surfside Boulevard for wayfinding. A new “North Beach Boulevard” should also be cre- ated, through the redesign of existing Timon and Surfside Boulevards with street upgrades, a new wide multi-purpose path for pedestrians and bicyclists (as part of the larger city-wide pedes- trian and bicycle trail network), and planting the center median with a rich palette of native, coastal plant species. The Harbor Bridge recre- ational trail can tie into this greenway at Gulf- spray Avenue. A ferry or similar service should be established to connect North Beach to the SEA District and downtown marina. Pedestrian improvements are planned along North Shore- line Boulevard to link the existing North Beach Beachwalk to the ferry dock, USS Lexington, Texas State Aquarium and other visitor destina- tions. This in turn will link to the Beach Avenue improvements, extending to new wetlands, bird watching park, and beach access in the northern portion of North Beach and to the recreation trail along the new Harbor Bridge. As funding allows, public transit bus service from North Beach to Downtown and other employment centers should be maintained and upgraded as part of the Harbor Bridge construction. Native coastal plantings in the median of Timon and Surfside Boulevard can help to create a new “North Beach Boulevard” with other pedestrian and bike improvements. POTENTIAL DEVELOPMENT SITES 86 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi Additional North Beach gateway sign Signage and landscaping introducing visitor destinations Multi-use path to beach and bridge POTENTIAL A new “Beach Avenue Gateway” would welcome visitors from the proposed Harbor Bridge on/off ramp and provide an exciting orientation point as well as a recreational link to the beach. EXISTING PROPOSED PEDESTRIAN AND BICYCLE NETWORK BEACH AVENORTH B E A C H B L V D HARB O R B R I D G E NEW PEDESTRIAN AND BICYCLES ROUTES EXISTING BEACHWALK PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 87 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi 88 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DISTRICT FRAMEWORK AND REINVESTMENT PRIORITIES | Targeted priorities for a vibrant and connect Corpus Christi 3District Frameworks and Reinvestment Priorities Targeted priorities for a vibrant and connected Corpus Christi4Development Guidelines for TIRZ #3 & Connecting Corridors PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 89 This chapter provides a framework for future design guidelines for new development focused in TIRZ #3, but expanding to other high-traffic areas. The design concepts are intended to promote high-quality new development that promotes 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 | MARCH 27, 2018 DEVELOPMENT GUIDELINES FOR TIRZ #3 & CONNECTING CORRIDORS PLAN CC DOWNTOWN 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, and a safe and inviting walking environment; vehicular access and parking should be discouraged KEY STREETS & SEGMENTS • Chaparral from Kinney to Hirsch • Leopard from Staples to Upper Broadway • Shoreline from Park to Hirsch • Starr, Peoples, Schatzell, and Lawrence DESIGN CHARACTER CONCEPT: PEOPLES STREET FAÇADE IMPROVEMENT CONCEPT: CHAPARRAL STREET BEFORE AFTER 92 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DEVELOPMENT GUIDELINES FOR TIRZ #3 & CONNECTING CORRIDORS Flexible Access Street desirable location for occupied commercial and/or residential buildings featuring a regular occurrence of windows and doors, with flexibility to include some vehicular access for parking or service KEY STREETS & SEGMENTS • Most east-west streets downtown • Chaparral from Kinney to Park • Water Street from Resaca to Kinney • Mesquite from Brewster to Cooper’s Alley • Tancahua from Port to Padre, then from Buffalo to Furman DESIGN CHARACTER CONCEPT: KINNEY STREET FAÇADE IMPROVEMENT CONCEPT: WILLIAM STREET BEFORE AFTER 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 residential buildings featuring a regular occurrence of windows and doors, enhanced by prominent landscape plantings; vehicular access absent or minimal KEY STREETS & SEGMENTS • New Aubrey (former IH 37) east of Carrizo • Agnes and Laredo DESIGN CHARACTER CONCEPT: SHORELINE BOULEVARD & I-37 94 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DEVELOPMENT GUIDELINES FOR TIRZ #3 & CONNECTING CORRIDORS GENERAL GUIDELINES BUILDING FAÇADE PLACEMENT Building façades—especially façades with prima- ry building entrances—should be located near the sidewalk of ad-joining streets. The façade should generally be located at or within ten feet—or other dimension typical of adjacent traditional buildings—of the back of sidewalk or property line for most of its length (up to fifteen feet may be appropriate along a Gateway Street or Bou- levard). Façades at or close to the sidewalk are generally preferred where retail or other active, publicly accessible uses occur at ground level. Deeper setbacks of up to ten feet are appropriate where housing occurs at ground level. Site area between the façade and the sidewalk should be landscaped with plantings and/or paved walk- ing/seating areas as appropriate to building use. Parking should not be located between the façade and the street, particularly along Primary Walk- ing Streets. BUILDING FAÇADE TREATMENT Ensure that all façades are attractive and well proportioned through the placement and detail- ing of all elements, including bays, fenestration, and materials, and any patterns created by their arrangements. Avoid large blank walls along visible façades wherever possible. Where expanses of blank walls, retaining walls, or garage façades are unavoidable, include uses or design treatments at the street level that have human scale and are designed for pedestrians. These may include fea- tures like landscaped areas or display windows. Building materials should be able to withstand the salt and moisture that is present in the air due to downtown’s Bayfront location. OFF-STREET PARKING AND VEHICULAR ACCESS Off-street parking should be located and de- signed to have minimal presence, if any, along streets and other public spaces. Where a parcel abuts two or more streets of different types, vehicular access and parking should preferably be located on a Flexible Access Street or Gate- way Street or Boulevard, rather than a Primary Walking Street. TREES AND ENVIRONMENT Incorporate on-site natural habitats and land- scape elements such as: existing trees, native plant species or other vegetation into project design. Consider relocating older trees and veg- etation if retention is not feasible. The planting of native shade trees throughout the district is encouraged and will create a comfortable public realm. SIDEWALKS Sidewalks along Primary Pedestrian Streets should aim to include at least 8 feet of clear width available for walking, in addition to street trees, planting strips and paved access to on-street parking. Additional paved area along building façades may be used for outdoor dining, retail sales or other use related to adjacent buildings. PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 95 DEVELOPMENT GUIDELINES FOR TIRZ #3 & CONNECTING CORRIDORS 96 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 DEVELOPMENT GUIDELINES FOR TIRZ #3 & CONNECTING CORRIDORS 3District Frameworks and Reinvestment Priorities Targeted priorities for a vibrant and connected Corpus Christi5Transportation PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 97 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/Old 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. 98 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 TRANSPORTATION PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 99 TRANSPORTATION DOWNTOWN AREA ACCESS IMPROVEMENTS Access to the SEA District , Downtown, Uptown, North Beach, Washington-Coles, 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 of Agnes 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 Marina Arts 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. 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 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 | MARCH 27, 2018 TRANSPORTATION PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 101 TRANSPORTATION TRANSIT ALTERNATIVES Public transit in Corpus Christi will play a 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, a water 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 | MARCH 27, 2018 TRANSPORTATION PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 103 TRANSPORTATION PARKING MANAGEMENT With nearly 16,800 parking spaces—including 4,337 on-street spaces and 12,642 off- street spaces in private garages and surface lots in the Uptown District, Marina Arts Dis- 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 lots can potentially serve new development nearby, while others may be prime candi- dates for redevelopment. In those instances, new parking could be contained on site within the new development (as in the Cosmopolitan Apartments) or be accommodated in nearby garages. Other key strategies include: • 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/ or district parking policy • Rationalizing the public on-street parking system by establishing a consistent meter- ing policy • Enhancing the Parking Advisory Committee with additional professional parking expertise • Reinvesting parking proceeds into maintaining and building additional parking as needed On North Beach, enhance the visitor experience with improved parking options serving the beach and other attractions. 104 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 TRANSPORTATION PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 | 105 TRANSPORTATION Abbreviations used in this 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 | PLAN CC DOWNTOWN AREA DEVELOPMENT PLAN | MARCH 27, 2018 MARCH 27, 2018 CORPUS CHRISTI downtownarea development plan APPENDIX: REAL ESTATE MARKET ANALYSIS DOCUMENTS FOR HOUSING, OFFICE, HOTEL AND RETAIL AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL The Downtown Corpus Christi Study Area City of Corpus Christi Nueces County, Texas October, 2014 Conducted by ZIMMERMAN/VOLK ASSOCIATES, INC. P.O. Box 4907 Clinton, New Jersey 08809 ZIMMERMAN/VOLK 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 o ZIMMERMAN/VOLK ASSOCIATES, INC. P.O. Box 4907 Clinton, New Jersey 08809 908 735-6336 www.ZVA.cc • info@ZVA.cc Research & Strategic Analysis A N A NALYSIS OF R ESIDENTIAL M ARKET P OTENTIAL 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 2 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 3 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 4 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 D OWNTOWN C ORPUS C HRISTI S TUDY A REA 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 5 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 D OWNTOWN C ORPUS C HRISTI S TUDY A REA 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. 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 7 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 D OWNTOWN C ORPUS C HRISTI S TUDY A REA 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 8 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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: AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 9 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. Primary Target Groups (In Order of Median Income) D OWNTOWN C ORPUS C HRISTI S TUDY A REA 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 Twentysomethings $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. 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 11 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 café, 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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 12 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. ($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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 13 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. —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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 14 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. • 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). Table 3 Page 1 of 6 SOURCE: Zimmerman/Volk Associates, Inc. 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. Table 3 Page 2 of 6 SOURCE: Zimmerman/Volk Associates, Inc. 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 City/Bay 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. Table 3 Page 3 of 6 SOURCE: Zimmerman/Volk Associates, Inc. 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 Table 3 Page 4 of 6 SOURCE: Zimmerman/Volk Associates, Inc. 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 café, 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 Table 3 Page 5 of 6 SOURCE: Zimmerman/Volk Associates, Inc. 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}. . . . . 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 gazebo/grilling 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 w/aquatic lounge, 2133 Nodding Pines $1,025 853 $1.24 poolside grilling station, 2br/2ba $1,124 to 1,033 to $1.09 to conference/study center, $1,254 1,060 $1.21 cyber café, 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. Table 3 Page 6 of 6 SOURCE: Zimmerman/Volk Associates, Inc. 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 Bluff/Padre 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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 21 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. —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). 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. 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 Unit Price Per Year Development Type Type 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. 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 25 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. —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. ! 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 Size/ Unit Price Unit Size Price Per Total Property (Date Opened)Price Range Range Range Sq. Ft. Lots Developer/Builder . . . . 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 † 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 † 2,001 $107 396 Braselton Homes 8,614 sf $229,900 † 1,801 $128 $245,430 † 2,160 $114 $289,900 † 2,369 $122 0.38 acre $319,900 † 2,655 $120 Manhattan Estates (2000)$242,900 to 2,343 to $104 to 6 listings Multiple Builders 6,720 sf $270,648 † 2,500 $108 0.17 acre $255,900 † 2,395 $107 Ranch Lake $249,000 to 2,377 to $105 to 8 listings Multiple Builders $310,000 † 2,860 $108 King's Point $259,000 to 2,487 to $104 to 6 listings Several Builders $299,000 † 2,860 $105 † Spec or model home. SOURCE: Zimmerman/Volk Associates, Inc. ! 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 Size/ Unit Price Unit Size Price Per Total Property (Date Opened)Price Range Range Range Sq. Ft. Lots Developer/Builder . . . . South Side {continued} . . . . Graford Place $264,900 to 2,525 $105 5 listings Multiple Builders $327,900 † 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 † 2,898 $120 17 lots listed $54,900 Graceland 8,000 sf $271,900 † 2,423 $112 Multiple Builders Kings Crossing 0.5 acre $499,000 † 3,652 $137 80 Multiple Builders $720,116 † 4,300 $167 The Coves at Lago Vista 0.5 to $539,000 † 4,045 $133 160 Multiple Builders 1 acre $574,900 † 3,242 $177 $585,000 † 4,175 $140 . . . . Flour Bluff and Padre Island . . . . Pine Hollow $179,900 to 1,505 to $120 to 127 Fox Home Builders $229,900 † 1,090 $211 Blue Grass Estates $229,500 to 2,125 to $108 to 9 listings Flour Bluff Pine Hollow LLC $299,900 † 2,427 $124 Point Tesoro $229,900 to 1,966 to $117 to 5 listings Multiple Builders 6,200 sf $519,900 † 2,149 $242 Commodore's Pointe 8,032 sf $650,000 † 2,300 $283 Multiple Builders † Spec or model home. SOURCE: Zimmerman/Volk Associates, Inc. ! 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 Developer/Builderc . . . . West Side . . . . Wood Oaks on the River 6,700 sf $247,000 † 2,137 $116 39 Multiple Builders {Phase II} London Club Estates 1+ acre/7 listings Multiple Builders 67,500 $354,900 † 2,635 $135 $448,116 † 3,125 $143 † Spec or model home. SOURCE: Zimmerman/Volk Associates, Inc. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 29 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 $750–$1,000 135 9.1% $1,000–$1,250 150 10.1% $1,250–$1,500 260 17.6% $1,500–$1,750 325 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. 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 31 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. —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% $250,000–$300,000 140 19.6% $300,000–$350,000 135 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. 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 7.0% Younger Singles & Couples The Entrepreneuers 50 7.0% 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 33 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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% $250,000–$300,000 100 16.9% $300,000–$350,000 115 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. 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 1.7% Affluent Empty Nesters 5 0.8% New Empty Nesters 10 1.7% Cosmopolitan Couples 20 3.4% Middle-Class Move-Downs 15 2.5% No-Nest Suburbanites 15 2.5% Subtotal:130 22.0% Traditional & Non-Traditional Families Unibox Transferees 25 4.2% Late-Nest Suburbanites 10 1.7% Full-Nest Suburbanites 25 4.2% Full-Nest Urbanites 75 12.7% Subtotal:135 22.9% Younger Singles & Couples The Entrepreneuers 35 5.9% e-Types 85 14.4% The VIPs 30 5.1% Fast-Track Professionals 20 3.4% Upscale Suburban Couples 65 11.0% New Bohemians 70 11.9% Twentysomethings 20 3.4% Subtotal:325 55.1% Total Households:590 100.0% SOURCE: The Nielsen Company; Zimmerman/Volk Associates, Inc. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 35 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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): AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 36 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. Rent, Price and Size Ranges D OWNTOWN C ORPUS C HRISTI S TUDY A REA City of Corpus Christi, Nueces County, Texas RENT/PRICE SIZE RENT/PRICE HOUSING TYPE RANGE RANGE PER SQ. FT. M ULTI-F AMILY F OR-R ENT— 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 M ULTI-F AMILY F OR-S ALE— 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 S INGLE-F AMILY A TTACHED F OR-S ALE— 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 37 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 D OWNTOWN C ORPUS C HRISTI S TUDY A REA 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. Table 9 Page 1 of 3 Optimum Market Position--1,850 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%Multi-Family For-Rent 222 to 266 units 250 Hard Lofts Loft/1ba 25%$800 500 $1.60 Loft/1ba 30%$975 650 $1.50 Loft/1ba 25%$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 20%$900 550 $1.64 1br/1ba 25%$1,300 800 $1.63 2br/1ba 15%$1,450 900 $1.61 2br/2ba 15%$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 20%$1,975 1,150 $1.72 2br/2.5ba/den 15%$2,300 1,350 $1.70 3br/2.5ba PH 15%$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. Table 9 Page 2 of 3 Optimum Market Position--1,850 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 20%$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. Table 9 Page 3 of 3 Optimum Market Position--1,850 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 25% $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 30% $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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 41 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 D OWNTOWN C ORPUS C HRISTI S TUDY A REA 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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 42 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 43 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. Courtyard apartment building AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 44 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. • 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. Factory 63. 617.426.7100 63 MELCHER ST, BOSTON, MA 02210 FACTORY63.COM INNOVATIO N LOFT A 10 FEET AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 45 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. Panoramic Interests. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 46 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. My Micro NY. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 47 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. Arcade Building. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 48 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 Soft loft AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 49 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. Luxury apartment AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 50 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. • Mansion Apartment Building: A two- to three-story flexible-use structure with a street façade 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. Mansion apartment building AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 51 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. • 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. Mixed-use buildings AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 52 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. —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. Townhouses AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 53 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. • 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. AS220 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 54 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. The Dreyfus AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 55 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. D ELINEATION OF THE D RAW A REAS (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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 56 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 57 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 T ARGET M ARKET C LASSIFICATION OF C ITY AND C OUNTY H OUSEHOLDS— 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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 58 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. • 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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 59 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 60 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. D ETERMINATION OF M ARKET P OTENTIAL FOR THE C ITY OF C ORPUS C HRISTI (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. AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 61 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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): AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 62 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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: AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 63 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. Market Potential by Draw Area D OWNTOWN C ORPUS C HRISTI S TUDY A REA 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. 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 AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 64 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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 VIPs. 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.” AN ANALYSIS OF RESIDENTIAL MARKET POTENTIAL Page 65 The Downtown Corpus Christi Study Area City of Corpus Christi, Nueces County, Texas October, 2014 ZIMMERMAN/VOLK ASSOCIATES, INC. 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. o ZIMMERMAN/VOLK 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. o ZIMMERMAN/VOLK 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. o ZIMMERMAN/VOLK ASSOCIATES, INC., 2014       OFFICE, RETAIL, AND HOTEL MARKET ASSESSMENT  CORPUS CHRISTI, TEXAS          Submitted By:  W‐ZHA, LLC              September, 2014      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.     ‐ 2 ‐      ECONOMIC FRAMEWORK  Demographics  The Corpus Christi Metropolitan Area consists of Nueces, Aransas and San Patricio counties.    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.    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  Metro Area TX Rank US Rank 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 El 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\[household trend.xlsx]Sheet4 Most Populous Metropolitan Areas State of Texas 2010 # 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 HouseholdsPopulation Population and Households Select Areas 2014 ‐ 3 ‐      444,000 people.  Nueces County is the largest county in the region – it accounts for 60 percent of  Coastal Bend’s population.    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.    City TX Rank 2013 Est. Population 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 El 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 Most Populous Cities State of Texas 2013 2000 2010 2014 # 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% 2000 2010 2014 # Avg Ann # 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 13,921 1.3% 5,808 1.3% 19,729 1.3% Source: Claritas, Inc.; W-ZHA F:\8000s, misc\82325 Corpus Christi\[household trend.xlsx]pop trend 2000-2014 Change Population Population and Household Trends Texas, Coastal Bend, Corpus Christi Metro, Nueces County, Corpus Christi City 2000, 2010, 2014 2010-2014 2000-2010 2010-2014 Change 2000-2010 2000-2014 Households ‐ 4 ‐      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    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).      Over half of the City’s households are one‐ and two‐person households.  This is the case throughout the  Coastal Bend region.    0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Younger  Years Family  Life Mature Years Metro Area City Total Share 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 One- and Two-Person Households Coastal Bend, CC MSA, Nueces County, CC City 2014 ‐ 5 ‐          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.      The region’s median household income is below the Texas average.  The median income among City  households is $45,400.         2014 2020 Extrapolated 2024 2030 #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 Population Projections 2014, 2020, 2024, 2030 Population 2014-2024 Change Texas, Coastal Bend, Nueces County, Corpus Christi City 2014 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 Median Income Select Areas 2014 ‐ 6 ‐      Median Household Income by Census Tract  Corpus Christi City   2014    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.       ‐ 7 ‐      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    Source:  US Census; W‐ZHA    Almost 80 percent of these jobs are located in the City of Corpus Christi.      Corpus Christi  City, 79% Metropolitan  Area, 21% Business Type of Product - Service Civilian Employment 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 Top Ten Employers Corpus Christi Metro Area 2012 F:\8000s, misc\82325 Corpus Christi\[economy emp.xls]employers ‐ 8 ‐      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    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 5th 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.       0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%Share of Total JobsTexas Metro Area ‐ 9 ‐      Relative Employment Performance (1995  = 100)  United States and Corpus Christi Metropolitan Area  1995 – 2013    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.    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.     100 105 110 115 120 125 130 1995199619971998199920002001200220032004200520062007200820092010201120122013IndexUS Corpus Christi 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 Unemployment Rate US, Texas, Corpus Christi Metro, Corpus Christi City April, 2014 F:\8000s, misc\82325 Corpus Christi\[economy emp.xls]current unemployment ‐ 10 ‐      Unemployment Rate  Texas, Corpus Christi Metropolitan Area and Corpus Christi City  2000‐2013    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.      The greatest job gains since 2003 have occurred in the leisure and hospitality, health and mining  industries.  Employment ihe 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.  0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%20002001200220032004200520062007200820092010201120122013Unemployment RateTexas Corpus Christi Metro Corpus Christi City Industry 2003 2008 2013 # Avg Ann # Avg Ann # 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.xls]Sheet1 Employment Trends by Major Industry Corpus Christi Metropolitan Area 2003, 2008, 2013 000's Jobs (000's) Chng 2003-08 Chng 2008-13 Chng 2003-13 ‐ 11 ‐      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    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.    100 105 110 115 120 125 130 135 140 145 150 IndexUS Corpus Christi ‐ 12 ‐        The industries forecasted to experience the greatest job gains are the health industry and leisure and  hospitality.  OFFICE MARKET  Existing Conditions and Trends    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.     Industry 2013 2018 2023 # Avg Ann # Avg Ann # 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 Employment Trends by Major Industry Corpus Christi Metropolitan Area 2013, 2018, 2023 Jobs (000's) Chng 2013-18 Chng 2018-2023 Chng 2003-13 000's Building Class Sq. Ft. Class A938,000 Class B6,579,000 Class C2,210,000 Total 9,727,000 Office Market Supply Corpus Christi Office Market 4th Quarter 2013 Source:  CoStar Group and Burbach  Associates; Texas Real Estate Center at  Texas A & M University, "2013 Texas  Metro Market Overview data"; W‐ZHA ‐ 13 ‐      Office Supply  Corpus Christi Market  4th Quarter 2013    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.    Class A, 10% Class B, 68% Class C, 23% Sub‐Market 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% Total 9,727,000 100% Sq. Ft. *  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 Office Sub‐Market Statistics Corpus Christi Office Market 4th Quarter 2013 ‐ 14 ‐      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.    The table above summarizes the office space listed for‐lease by Loopnet in Corpus Christi’s Downtown  and Uptown areas as of fall, 2014.  Building Name Address Class Size (SF) 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]Sheet3 Office Space For‐Lease Corpus Christi Downtown and Uptown Market Fall, 2014 Available ‐ 15 ‐            Building Name Address Class One Shoreline Plaza 800 N Shoreline Blvd A $20.00 ‐$24.00 Frost Bank Plaza 802 N Carancahua St A $17.21 Tower II 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 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.xlsx]Sheet1 South Side Select Buildings Asking Rent Corpus Christi Office Market June, 2014 Asking Rent Uptown and Downtown Area Low High Effective 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.xlsx]Sheet6 Office Market Rents Corpus Christi Office Market 2011 ‐ 16 ‐      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    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.       ‐ 17 ‐      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.      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.       Office-Inclined Industry 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).xls]Sheet3 Employment Trends by Major Industry Corpus Christi Metropolitan Area 2013, 2018, 2023 Jobs Chng 2013-18 Chng 2018-2023 Chng 2003-13 ‐ 18 ‐      Jobs by Office‐Inclined Industry  Corpus Christi Metro Area  2003, 2008, 2013, 2018, 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.)  0 2,000 4,000 6,000 8,000 10,000 12,000 InformationFinance and InsuranceReal EstateProf, Sci, Tech Services & Mgmt of CompaniesAdministrative, Support, Waste Management, & …Relig, Grant, Civic, Prof OrganizationsJobs2003 2008 2013 2018 2023 ‐ 19 ‐        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.    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.  2013-2018 2018-2023 Total Administrative & Support /1 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 f:\8000s, misc\82326 Corpus Christi\[economy emp (Recovered).xls]Sheet14 Administrative and Support Services Office Demand Corpus Christi Office Market 2013-2023 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 2013-2018 2018-2023 Total Other Office-Inclined Industry 996 442 1,438 Sq Ft /Job 175 150 167 Sub-Total 174,360 66,320 240,680 f:\8000s, misc\82326 Corpus Christi\[economy emp (Recovered).xls]gen off Other Office-Inclined Industry Office Demand Corpus Christi Office Market 2013-2023 Source: NAIOP "Changes in Average Square Feet per Worker"; Moody's Analytics; W-ZHA ‐ 20 ‐      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.      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.    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  2013-2018 2018-2023 Total 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 f:\8000s, misc\82326 Corpus Christi\[economy emp (Recovered).xls]Sheet13 General Office Demand Corpus Christi City 2013-2023 Source: W-ZHA New Jobs in Health and Social Service Industry Percent Ambulatory Care Medical Office Jobs Source: Moody's Analytics; W-ZHA f:\8000s, misc\82325 Corpus Christi\[economy emp.xls]Sheet8 1,525 1,310 2,835 5,082 4,375 9,457 30%30%30% Medical Office Demand Corpus Christi Office Market 2013-2023 2013-2018 2018-2023 Total ‐ 21 ‐      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.      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.    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 Jobs Share New Establishments New Medical Establishment Jobs Source: Moody's Analytics; W-ZHA f:\8000s, misc\82325 Corpus Christi\[economy emp.xls]Sheet10 760 660 1,420 1,525 1,310 2,835 50%50%50% Medical Office: New Establishment Demand Corpus Christi Office Market 2013-2023 2013-2018 2018-2023 Total New Medical Establishment Jobs 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 760 2018-2023 660 Total 1,420 Medical Office Demand Corpus Christi Office Market 2013-2023 2013-2018 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 Medical Office Demand Corpus Christi City 2013-2023 2013-2018 2018-2023 Total ‐ 22 ‐      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    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.  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 analysis.xlsx]Sheet6 Retail Sales Coastal Bend, Corpus Christi Metro and Corpus Christi City 2014 ‐ 23 ‐        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.      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.       Coastal  Bend Corpus Christi  Metro Corpus Christi  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 analysis.xlsx]Sheet2 $000's Total Retail Sales Inflow and Outflow Select Areas 2014 Coastal  Bend Corpus Christi  Metro Corpus Christi  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 analysis.xlsx]Sheet3 Total Retail Sales Net of Vehicle Sales Inflow and Outflow Select Areas 2014 $000's ‐ 24 ‐      Percent Retail Sales Inflow or Outflow  Corpus Christi City  2014            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.  ‐ 25 ‐        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.    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.  Coastal  Bend Corpus Christi  Metro Corpus Christi  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 analysis.xlsx]Sheet5 Total Eating and Drinking Sales Inflow and Outflow Select Areas 2014 $000's 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 analysis.xlsx]Sheet7 Eating and Drinking Sales Coastal Bend, Corpus Christi Metro and Corpus Christi City 2014 ‐ 26 ‐        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.  Total Retail  Sales Retail Sales (Net of  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 Retail and Eat/Drink Sales Per Capita Select Areas 2014 ‐ 27 ‐        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.    Sq Ft  000's Share of  Total 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% Retail Inventory Corpus Christi Market Area 4th Quarter 2013 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 ‐ 28 ‐        As of the 4th 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    Source:  Claritas, Inc.; W‐ZHA  Sub‐Market Sq Ft  000's Vacancy  Rate 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% Retail Inventory and Vacancy Rate Corpus Christi Market Area 4th Quarter 2013 Source:  CoStar Group and Burbach Associates; Texas Real  Estate Center at Texas A & M University, "2013 Texas Metro  Market Overview Data"; W‐ZHA ‐ 29 ‐      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.       The South Side sub‐market commands the highest retail rents, while Northwest rental rates are the  lowest.     Sub‐Market Sq Ft  000's Rental  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 Retail Inventory and Rental Rates Corpus Christi Market Area 4th Quarter 2013 Source:  CoStar Group and Burbach Associates; Texas Real  Estate Center at Texas A & M University, "2013 Texas Metro  Market Overview Data"; W‐ZHA ‐ 30 ‐      Retail Prospects  Corpus Christi’s strong economy and projected growth should have a positive impact on retail.      Population growth over the next ten years should support 904,000 square feet of retail.    Population growth over the next ten years should support 105,500 square feet of eating and drinking  space.     New Residents 29,295 Spending /Resident $10,800 Total $316,382,800 Sq Ft @ $350 Sales/Sq Ft 904,000 Source:  W‐ZHA F:\8000s, misc\82325  Corpus Christi\[retail analysis.xlsx]proectin Retail (Net of Vehicle Sales) Potential Corpus Christi Metropolitan Area 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 analysis.xlsx]Sheet13 Eating and Drinking Potential Corpus Christi Metropolitan Area 2014‐2024 ‐ 31 ‐      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.      Name Class Rooms 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 I 37 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 I 37 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]Sheet1 Midscale to Upscale Class Hotels Corpus Christi Hotel Market 2014 ‐ 32 ‐      The midscale to upscale class hotels analyzed are presented in the table above.      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    Source:  Smith Travel Research; W‐ZHA  Mid/Uppermid 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 Room Night Supply Hotel Room Supply Midscale to Upscale Class Hotels and All Hotels Corpus Christi Hotel Market 2008 - 2013 48% 50% 52% 54% 56% 58% 60% 62% 64% 66% 2008 2009 2010 2011 2012 2013 ‐ 33 ‐      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    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.     $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 2008 2009 2010 2011 2012 2013Revenue Per Available Room ‐ 34 ‐      Revenue Per Available Room  Midscale to Upscale Hotels and All Hotels  Corpus Christi Hotel Market  2008 ‐ 2013    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.      $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 2008 2009 2010 2011 2012 2013Occupancy RateMid/Upper Hotels All Hotels ‐ 35 ‐      Revenue Per Available Room by Month  Midscale to Upscale Hotels  Corpus Christi Hotel Market  2013    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).     $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Revenue Per Available Room ‐ 36 ‐      Hotel Occupancy by the Day of the Week  Midscale to Upscale Hotels and All Hotels  Corpus Christi Hotel Market  2013    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.      45% 62% 72%72% 67%69%72% 0% 10% 20% 30% 40% 50% 60% 70% 80% Sun Mon Tue Wed Thu Fri SatOccupancy RateAll Mid/Upper 1 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@consultmjb.com www.consultmjb.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. 2 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. 3 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. Source: Nielsen-Claritas, MJB Consulting - 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: 4 Downtown Corpus Christi Primary Trade Area Corpus Christi Metro 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 5 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 a greater 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. 6 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. 7 - 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 8 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 café 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. 9 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 2012/13, 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. 10 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. 11 - 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: 1) 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, 12 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. 13 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-calls” 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 Façade Improvement Grant program, modestly sized forgivable loans should be offered to help 14 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. 15 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.