Park Place Redevelopment Area Commercial Redevelopment & Public Infrastructure Improvements

Transcription

1 BROWNFIELD PLAN Park Place Redevelopment Area Commercial Redevelopment & Public Infrastructure Improvements Grand Traverse County Board of Commissioners March 15, Eligible Property Qualifying Criteria: Historic Resource and Facility (contaminated) 300 E. State Street Park Place Hotel & Conference Center Tax ID:

2 Brownfield Plan Brownfield Plan Structure Considerations: Eligibility and Reasonableness of Costs DDA Plan Conference Center identified in Plan New Public Infrastructure for future growth Look to Future Impact not just immediate Long-term benefits How does this Project help achieve other Economic goals Eligible Activities Requested by Park Place PARK PLACE REDEVELOPMENT AREA Brownfield Plan Developer Eligible Activities and Eligible Costs Requested Included Removed Eligible Activities Eligible Costs by Eligible Costs in Eligible Costs from Developer Brownfield Plan Brownfield Plan Baseline Environmental Assessment (BEA) Activities $ - $ - $ - Due Care Activities $ 19,365 $ 19,365 $ - Additional Response Activities $ 26,700 $ 26,700 $ - Demolition Activities $ 431,080 $ 431,080 $ - Lead and Asbestos Abatement Activities $ 376,600 $ 376,600 $ - Infrastructure Improvements Activities (Public)- In Public ROW/Easements $ 186,325 $ 186,325 Site Preparation Activities $ 267,600 $ - $ 267,600 Contingency (15%) $ 196,151 $ - $ 196,151 Interest (2.5%) $ 412,775 $ - $ 412,775 Subtotal $ 1,916,596 $ 853,745 $ 1,062,851 Brownfield Plan & Work Plan Preparation (and application fees, if any) $ 47,037 $ 47,037 $ - GRAND TOTAL $ 1,963,633 $ 900,782 $ 1,062,851 2

3 Eligible Activities and Costs Opportunities: Additional Tax Growth with: Infill development on Washington St. and Infill development on Park Place parking lot along Washington St. and State St. *Eligible Activities totaling $2,740,851 may not be fully reimbursed if Taxable Value assumptions don t increase over the 30-year capture period because the Plan only identifies $2,017,280 in tax capture Gain In Taxes Projected (after Project completion) Economic Impacts: 31% Increase in taxable value Over 360 inquiries annually for group events to area averaging roughly 350 attendees Added disposable income spent in area of $127/day/person minimum If only 20% of conference inquiries were secured, that would equate to a financial impact of over $3 million per year to our area 3

4 Brief Project Introduction Developer: Developer: Regency Midwest Ventures LP. Project Investment * : $4.73 million New Conference Center and Pool/Health Club Additional $2 million Historic Tower updates * Inclusive of Brownfield eligible activity costs Total Private Capital Investment: $6.73 million, not including land Full Time Equivalent Jobs * : Retained = seasonally adjusted Created = * Not including construction jobs City of Traverse City, Michigan Park Place Redevelopment Area Commercial Redevelopment & Public Infrastructure Improvements Traverse City Historic Park Place Hotel New Conference Center and Pool/Health Club 4

5 Development Description: Project Improvements - demolition, renovation and replacement of existing 12,900 square foot Conference Center and Pool/Health Club. Hotel Renovation - new fixtures, furniture, room and fitness center renovations as well as energy efficiency improvements and upgrades. Park Place Additions Conference Center Building 5

6 Conference Center Building Pool/Health Club Building 6

7 Park Place Redevelopment Area Commercial Redevelopment & Public Infrastructure Improvements Traverse City Historic Park Place Hotel New Conference Center and Pool/Health Club New Conference Center Summary: Construct a NEW modern upscale conference and business meeting center: Large room 7,800 SF: accommodates ~ 500 people with tables and chairs; 1,157 with just chairs or 1,620 standing; Theatre area approximately 80 to 100 people; Small meeting room about 80 people, and; Nine other meeting rooms of various sizes in existing plan Conference Center Building 7

8 Conference Center Building Pool/Health Club Building 8

9 Public Infrastructure Improvements Public Infrastructure Improvements Public Infrastructure Improvements: 12 Watermain: $975,000 Area Wide Stormwater Improvement: $250,000 Streetscapes (Park Street): $515,000 Added Infrastructure (from Community Outreach Meeting): Underground Electric: $200,000 9

10 Public Infrastructure Improvements 12 Watermain: $975,000 Public Infrastructure Improvements Underground Electric: $200,000 10

11 Brownfield as a Tool for Community Reinvestment Why in Downtown: Core Downtown Community versus Non-Core Suburban Community o Core Downtown Communities have existing infrastructure No need to add public services / infrastructure Improve aging infrastructure that is already there o Place development and density where it already exists o Higher densities are allowed in downtowns meaning greater investment occurs on less land Promote the reuse/redevelopment of old/functionally obsolete/contaminated property Protect greenfield / undeveloped property and encourage land preservation Place developments in downtowns because developments in downtowns generate significantly higher property taxes as compared to more suburban type developments Community Taxable Values City of Traverse City, Michigan 11

12 Community Taxable Values City of Traverse City, Michigan BROWNFIELD PLAN Park Place Redevelopment Area Commercial Redevelopment & Public Infrastructure Improvements Thank You! Grand Traverse County Board of Commissioners March 15,