Posts tagged with "Development":

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The Golden State's cities calculate how to use unspent development revenues

Los Angeles’s San Fernando Valley Reseda neighborhood is poised to spend $23 million in reactivated excess bonds as a result of post-redevelopment bills signed late last year by Governor Jerry Brown.

The action came last September after a series of legislative moves that in 2011 began to wind down and ultimately dissolve all 400 of California’s local city and County Redevelopment Agencies (CRAs)—entities originally conceived to funnel tax increments into blighted areas to promote economic development and affordable housing projects. Leading up to the dissolution, much criticism had been directed to community redevelopment agencies, citing waste and corruption.

“The only way to mend it was to end it and cut out abuses,” said L.A. city councilmember Bob Blumenfield, who was serving in the California State Assembly at the time of the 2011 CRA dissolution and now represents the Third District, which spans the northwest portion of Los Angeles in the San Fernando Valley, including the communities of Canoga Park, Reseda, Tarzana, Winnetka, and Woodland Hills. His district contains three of the nine CRA-owned properties that must be developed within a certain frame of time, as set forth in the governor’s bills. “If we don’t put together an acceptable development deal within three years, the nine properties get sold off. Having said that, we have the potential with these three lots in our district to generate catalytic investment that we think will create a domino effect of more development.”

Reseda’s plans for the reinvestment of funds in Los Angeles consist of two key vision plans related geographically and culturally along the historic portion of Sherman Way. The Reseda Theater Adaptive Reuse Project (for which the RFP phase is underway) hopes to spur commercial oriented development, including entertainment, dining, and other services, to activate the street and generate more foot traffic. The “Reseda Rising” project is a larger revitalization project for Sherman Way’s historic commercial corridor and would include two non-contiguous CRA properties as lynchpins in the effort.

For other parts of Los Angeles, the city was able to transfer a pipeline of affordable housing projects, as well as some unspent affordable housing and general redevelopment purpose bonds. Once those projects are completed, however, there will be no more traditional tax increment funds to devote to redevelopment. Los Angeles is currently gearing up to establish a new type of agency that will take the place of the former redevelopment agencies. This model, provisionally referred to as Community Revitalization and Investment Authorities (CRIAs), would provide a minimum 25 percent work programs for affordable housing, with the intention to put a focus on challenged neighborhoods. Unlike the former CRAs, CRIAs would be run by separate boards composed of elected officials and at least two public members.

But the new agencies would be working with nearly 70 percent fewer funds under the CRIA model in accordance with restrictions governor Brown has set out in AB107 and other respective bills. When asked, Mayor Eric Garcetti’s office couldn’t give benchmark dates or a timeline for this kind of reorganization, but re-emphasized the mayor’s strong desire to get 100,000 new housing units built in the city by 2021 (Under the mayor’s plan, outlined in 2014, 30,000 new building permits for housing have already been issued as of September 2015.)

Meanwhile, San Francisco will use its reinstated funds to finance a few key housing projects, but the city also negotiated to spend a portion of reactivated funds to implement the Transbay Redevelopment—a large-scale neighborhood and transportation redevelopment atop derelict and demolished highway ramps that were damaged in the 1989 Loma Prieta earthquake. Currently used for parking, the mixed-use, transit-oriented neighborhood will comprise approximately seven million square feet of residential, office, retail, hotel, and park spaces, but 1,200 new units reserved for very low, low, and moderate income households (befitting SB 107 requirements). The project between the South of Market Street area and Rincon Hill on San Francisco’s east side also features a 1,100-foot tall-skyscraper by Pelli Clarke Pelli—the Salesforce Tower. San Francisco was able to continue with the Transbay Redevelopment in part because it is  a continuation of funds originally allocated through a CRA, and also because of sheer political will and a big lobbying effort.

Other cities continue to fight for what they view are their legal rights to the property taxes and accrued interest that made up their local CRA funds. Watsonville and Glendale’s lawsuits against the California Department of Finance were settled in the municipalities’ favor, but hundreds of others remain unresolved.

Back in Reseda, councilmember Blumenfield is looking ahead to the economic development opportunities in his district, despite the looming questions about what kind of new agency might accommodate such projects in the future. “If we don’t spend the excess bond money from a development perspective, it’s just gone,” he said. “In my district we need market rate housing and affordable housing. We might be able to use some of the bond money to build affordable housing. Instead of traditional redevelopment funding, there are other options, such as borrowing on future tax revenue or subverting funds back into a project—these are just another shade of the same color.” 

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Pier 57 set to receive $225 million boost from PNC Bank

Pier 57, recently renamed the "SuperPier," has received a $225 million loan from PNC Bank, according to a source close to the Commercial Observer. The $350-million project by RXR Realty and partner Youngwoo & Associates is set restore this old shipping and bus terminal. 560,000 square-feet of mixed-used development will be the result. Seth Pinksy of RXR told the Commercial Observer that they were "still finalizing terms and agreements with all of the relevant parties." Around 480,000 square-feet has already been set aside for office blocks. Google has managed to secure 250,000 square-feet of that space when it signed a 15-year lease, as reported by the Wall Street Journal. So far, there's no word on who'll be Google's neighbors. A food market run by celebrity chef Anthony Bourdain will occupy 100,000 square-feet. Speaking to The New York Times, Bourdain said the food hall will feel like "an Asian night market." In addition, 80,000 square-feet will make up the public park that will housed on top of the pier while promenades on which the public can walk will take up 34,000 square-feet of the structure.
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SHoP and West 8 reveal plans for Philadelphia "Innovation Neighbrhood" at Drexel University

Fourteen acres next to Philadelphia’s 30th Street train station will be transformed into a $3.5 billion “innovation neighborhood” designed to mix education, housing and entrepreneurship, under plans unveiled this week. [beforeafter]Current view looking northwest towards University City. © 2016 SHoP Architects PC / West 8Future view looking northwest towards University City. Schuylkill Yards will be built intentionally in phases designed by different architects over time. © 2016 SHoP Architects PC / West 8[/beforeafter] Schuylkill Yards is the name of the mixed-use project, which will add up to eight million square feet of offices, labs, and housing in new and recycled buildings next to the third busiest passenger rail station in the country. Drexel University, which assembled the land and envisioned the project, announced this week that it has selected Brandywine Realty Trust of Philadelphia to be the master developer and its joint venture partner in the project. SHoP Architects and the Dutch firm West 8 are working on the master plan. SHoP will handle the district planning and development of the architectural standards, and West 8 will be responsible for creating the public realm and development of the landscape standards. Renderings unveiled this week show a combination of high-rise and low-rise buildings on a 10-acre site next to Drexel’s main campus, Amtrak’s 30th Street Station, and Brandywine’s Cira Centre development. “Schuylkill Yards will undeniably transform Philadelphia’s skyline as new towers rise on the west side of the Schuylkill River,” said Gerard H. Sweeney, president and CEO of Brandywine Realty Trust. [beforeafter]Current view from Center City looking west towards West Philadelphia. © 2016 SHoP Architects PC / West 8Future view from Center City looking west towards West Philadelphia. © 2016 SHoP Architects PC / West 8[/beforeafter] Proposed uses in this “collaborative neighborhood” include entrepreneurial spaces, educational facilities and research laboratories, corporate offices, residential and retail spaces, hospitality and cultural venues, and public open spaces. While the community is being designed for a wide range of users, from educational and medical institutions to residents and businesses, developers say the common theme will be the pursuit of innovation “Drexel has always believed there’s a superior use for this unique location — essentially the 50 yard line of the Eastern Seaboard — as a neighborhood built around collaboration and innovation. That’s why the University assembled these parcels, and the time is right to put this vision into action,” said Drexel President John A. Fry. “Schuylkill Yards is more than a large-scale development; it will be the heart of America’s next great urban innovation district.” The developers say this is a long-term investment in Philadelphia and its University City neighborhood, and it’s aimed at people who want to live or work in the area and have easy access to the train station. Besides its proximity to 30th Street Station, Schuylkill Yards will have connections to Philadelphia’s international airport. The master plan calls for a new gateway to Drexel and University City, a real estate submarket with a high concentration of education and medical institutions. Construction of Schuylkill Yards will take place in multiple phases over the course of approximately 20 years. As master developer, Brandywine, will oversee a team that includes Gotham Organization leading the residential development, and Longfellow Real Estate Partners leading the life sciences component. When completed, developers say, the site will contain a mix of repurposed existing buildings and new towers connected by a “diverse network of public spaces.” The development will begin with the creation of Drexel Square, a 1.3 acre park at 30th and Market streets, directly across from Amtrak’s 30th Street Station. In addition, they say, the historic former Bulletin Building will  be reimagined by transforming its east facade with “inside/out viewports and a dynamic front screen.” Philadelphia Mayor Jim Kenney said the project represents “one of the most valuable assemblages of real estate” in the nation. “Schuylkill Yards is a big step forward in University City’s transition to a next-generation business district,” he said. “It will provide our region’s current and future innovators with a central hub for collaboration and signal to the world that Philadelphia is ready for business in the 21st century’s new economy.” Schuylkill Yards “will bring new, innovative businesses and residents to Pennsylvania, and the potential economic impact is tremendous,” said Pennsylvania Governor Tom Wolf, “Those who choose to make Schuylkill Yards their home will have access to many of the most innovative companies, organizations and educational institutions in our state.”
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In gentrifying Brooklyn, illicit luxury housing is sprouting from community gardens

Larceny and deed fraud are on the rise, and those with a mind for leaving confusing trails of paperwork are profiting from illegitimate purchases of land. A classic case of this can be found on Maple Street in Prospect Lefferts Gardens, Brooklyn. https://vimeo.com/6258261 According to a report by The Nation, the area became a tranquil community space in the summer of 2013. Using a lot no bigger than one-eighth of an acre, local residents constructed vegetable patches and seating areas that successfully brought people together to make use of a shared space. The residents' retreat however, was short-lived. The owners,  Joseph (Joe) and Kamran (Mike) Makhani, apparently have a history of using illegitimate signatures to gain property and have even been to prison in the past for selling homes they did not own. Their company name, H.P.D., LLC, is quite similar to the government agency, NYC Housing Preservation and Development (HPD). When questioned in the video above, Joe Makhani said, "if the client is stupid, that's not my problem." Cut to 2014 and the Makhanis show up and start destroying the lot that the residents had carefully made. Ignoring calls to stop, they only do so when the police turn up demanding a court order to prove ownership. The Makhanis promptly left after no document was produced. So what of the significance of this debacle? The sad truth is that these ordeals are cropping up more and more with cases being becoming increasingly complex with name irregularities making documented selling and purchasing of land harder to find. "No one is talking about it, but we're seeing this every day," said Sonia Alleyne told The Nation on behalf of the Department of Finance. "I don't think anyone realizes how big this story is." The ordeal features all the tell-tale signs of larceny and deed fraud. The initial purchase of land from the nephews of the deceased owners for $5,000 (an incredible and questionably low price); Social Security numbers failing to match up; spelling "mistakes" (McKany rather than Makhani); illegible notary names and the fact that the license number isn't even present; traits that, in the City of New York Sheriff Joseph Fucito's eyes, scream fraud. Anyone attempting to investigate ownership/sale history of the land, it seems, is lead down rabbit hole after rabbit hole. Sheriff Fucito stated that 15 deed-fraud arrests were made in in the last year, and that (as of August 2015) his office was on the trail of over 1,000 cases. Gardens in Bushwick and Crown Heights have likewise found themselves embroiled in similar conflicts. Fucido believes that many fraudulent cases go undetected and that the real number of cases is much higher. Why the sudden rise in deed fraud? Gentrification may be partly to blame. Brooklyn residential prices are increasing at an alarming rate, and land with debatable ownership is the perfect target for fraudsters. Experts such as Christie Peale, executive director of the Center for New York City Neighborhoods, say that paperwork is deemed legitimate all too easily. "The problem is this open process that allows people to just walk in and file false instruments," said Peale.
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Federal agency eyes St. Louis' Pruitt-Igoe site for new development

More than 40 years after its last high-rise fell, the site of St. LouisPruitt-Igoe public housing development remains basically empty. Design competitions, documentaries, and local developers have all pondered its future. Now the National Geospatial-Intelligence Agency has said it’s considering the 34 acres once home to the infamous housing project as a location for 3,000 jobs. The website nextSTL reported this week that the NGA—a federal agency created in 1996 to provide maps and data for national defense—is looking at Pruitt-Igoe as it relocates its St. Louis offices from the city’s Kosciusko neighborhood. The site is one of six under consideration, but officials say the decision won't be made until 2016. The city recently sought $25 million in infrastructure improvements to the area, which some called a necessary investment regardless of the site’s future. Others disparaged it as a handout to developer Paul McKee, who has an option on the Pruitt-Igoe site and already owns nearly 2,000 other parcels of land in St. Louis. In January the city extended McKee's option, which he purchased in 2012 for just over $1 million, for another two years. The infamous post-war development in St. Louis’ DeSoto-Carr neighborhood (now Carr Square) was demolished less than 20 years after its construction in 1954. Photos of its demolition with the Gateway Arch in the distance have come to symbolize the failure of midcentury public housing projects in the U.S. Several of the development’s smaller buildings remain, including a one-story brick building that served as the development’s electric substation, three churches, a library, a school and a health center.
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Chinese developer releases plans for Chicago tower that would be the city's third tallest

Chinese real estate developers Wanda Commercial Properties announced Wednesday plans to build an 89-story mixed-use tower in Chicago’s Lakeshore East neighborhood that would unseat Aon Center as the city’s third tallest building. At approximately 1,150 feet tall, the tower at 375 E. Wacker Dr. would be among the tallest buildings in Chicago. AN reached out to Alderman Brendan Reilly’s office to confirm the announcement, which was reported in the Wall Street Journal and Chicago Architecture Blog Tuesday, but so far our calls have not been returned. A spokesman for Lakeshore East developer Magellan Properties declined to comment. Chinese news agency Sina reported the building will house a five-star hotel and apartments, and is expected to open in 2018. Along with a retail component, that should total 1.4 million square feet of space, according to Chicago Architecture Blog. The designer is still unspecified, but a rendering from Wanda Group shows three staggered volumes constructed from stacked frustums, or cut-off pyramid shapes. If built, it would occupy the lot adjacent to the new GEMS World Academy building, designed by bKL Architecture. The Beijing-based company, commonly called Wanda Group, is known in the U.S. for buying cinema chain AMC Entertainment Holdings, and has amassed dozens of hotels and department stores in China. The $900 million Chicago project would be the first step in what Wanda Group Chairman Wang Jianlin said will be a big move into U.S. real estate. "Investing in Chicago property is just Wanda's first move into the U.S. real estate market," Jianlin said in a statement, "Within a year, Wanda will invest in more five-star hotel projects in major U.S. cities like New York, Los Angeles and San Francisco. By 2020, Wanda will have Wanda branded five-star hotels in 12–15 major world cities and build an internationally influential Chinese luxury hotel brand." We’ll update this post as more information becomes available.
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Streamlined Streets Aim to Enhance Houston’s Quality of Life

Dunlavey Street in central Houston typifies the image of a Southwestern city street. It's a sprawling, four lane affair that is approximately 50 percent usable, 80 percent pedestrian unsafe, and, in this case, 100 percent in need of an update. Transportation officials are evening out the numbers for a proposed road diet that would reduce the four-lane street to two and using the outer lane space for parking, improved sidewalks, and bike lanes. Currently, many of Houston’s wide streets—and some of its highways—operate under the principle of induced demand. This idea dictates that existing space is utilized by sheer import of its presence. In other words, people use big roads because there are big roads to use. But the outer lanes of Dunlavey are hardly drivable. They are pothole-ridden, with uneven gutters and extensive debris. Because the lanes go largely unused, pedestrians misguidedly utilize them, sometimes with fatal results. Removing the exterior two lanes would remove confusion over what is drivable area and what is not. It would clearly delineate the road’s functionality, and create a responsible message to drivers and citizens about the roadway’s capacity. In years past, expanding outward has been the modus operandi of Southwestern transportation. Cars, and not people, determined the size of roadways. But this proposal overturns that tradition. The space that comes from the unused exterior two lanes will be converted into parking, bicycle lanes, and better sidewalks. According to planners, these changes will facilitate more efficient traffic, increase pedestrian safety, and encourage alternative methods of transportation such as biking or walking. It also curbs the expansion trend’s tendency to impinge upon private property—an aspect that, commuter or not, Houston’s citizens should be pleased about. If all goes according to plan, the proposal aims to not only increase the quality of life in Houston, but to be the beginning of a larger trend. Developers hope that Houston will be the next city that roadway planners look to when considering developments. A June open house meeting will follow up on the proposal’s details, while City Council will officially consider the changes in September. The plan’s announcement comes a week after Houston was named among the ten worst cities for pedestrians.
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Houston Offering Tax Breaks to Build Housing Downtown, Create a Vibrant City

Houston is set to double the amount of tax breaks it gives to developers for downtown apartments and condos to try to lure people to the city's sleepy business district. The City Council unanimously agreed to expand the Downtown Living Initiative, which first launched a year and a half ago, to offer tax breaks for 5,000 residential units, up from a previous cap of 2,500. Houston will now offer developers up to $15,000 for each residence they build in a complex of at least 10 units, provided they meet design guidelines focused on getting retail built at street level. The idea is to lessen the hurdles to developing downtown, such as high land costs, and to draw in retailers to serve the new residents and create a more vibrant street scene. "We made a judgment that it was needed when we looked at the extra cost of construction downtown," Andy Icken, the city's chief development officer, told the Houston Chronicle. "Retail follows rooftops, and it's our view that critical mass is needed. We've had a lack of retail in downtown. We believe that will follow and we believe this is needed to make it happen, to really continue the momentum that's on right now." In the decade preceding the subsidy, only one new residential development was built. After the subsidy initiative launched, 13 new projects have been announced, including six recent proposals that could add more than 2,200 new apartments to the urban core. The momentum is hard to miss. The total cost of the tax breaks could reach $75 million.
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Minneapolis City Council to vote on mixed-use makeover for Downtown East neighborhood

In its last scheduled meeting of the year, Minneapolis City Council could give the go-ahead on a $400 million mixed-use development near the new Vikings stadium. Surface parking lots currently occupy much of that land. The Minneapolis Star-Tribune editorial board called the Downtown East neighborhood “a part of the city’s commercial core in desperate need of new life.” The newspaper stands to benefit from the project, as the editorial announces—they plan to sell five blocks of nearby property, including their current headquarters, and move downtown. With 1.1 million square feet of office space, apartments, retail space, and a park, the Ryan Cos. project could attract tax revenue to the city, as Wells Fargo is reportedly looking to anchor the development as a corporate tenant. It also includes a 1,625-space parking ramp. Mayor R.T. Rybak said that over 30 years the project will generate $42 million in property taxes for the city, $50 million for Hennepin County and $35 million for the Minneapolis public schools. The public-private partnership does not call for tax-increment financing. Instead, it asks the City Council to approve $65 million in bonds, to be paid off by revenue from the project’s parking ramp over 30 years. The developer would cover shortfalls for the first 10 years. Minneapolis has embarked on several large-scale urban redevelopment projects, including a makeover of the city's "Main Street" by James Corner Field Operations.
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Community Members in Chicago Protest Lathrop Homes Plans

As plans to makeover Chicago’s Lathrop Homes become more clear, debate becomes more heated over whether the development team has the storied development’s best interests in mind. Twelve years after the Chicago Housing Administration announced its intention to overhaul the 1930s housing projects, the fate of the site remains unclear. Lathrop Community Partners—a team counting among its partners Related Midwest, Studio Gang Architects, Wolff Landscape Associates, Farr Associates, bKL, and Bauer Latoza Studio— revealed a draft master plan [PDF] this month that aimed for compromise between restoration and scaling up. lathrop_proposed_master_plan At a community meeting Tuesday night residents pressed the design team to offer more affordable housing, but it appears the ratio of market rate to public housing remains firm. The plan calls for 1,208 residential units on the 32-acre property—504 market-rate units, 400 public-housing residences, 212 affordable homes, and 92 for senior citizen public housing residents. It also includes 752 parking spaces with 259 more on the street. With parks, greenspace, and a landscaped riverwalk, the plan apparently consolidates Lathrop’s celebrated design elements. Taller buildings south of Diversey Avenue would raise property values nearby, but the stepped-up development doesn’t sit well with those who would like to see the renewal of this historic housing project do more for low-income residents.
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Unveiled> Abu Dhabi's Second CBD?

Abu Dhabi’s dizzying building boom slowed down somewhat after the 2008 financial collapse dried up the liquidity that inspires big projects. The damage appears not to have been permanent, however, as the UAE capital will forge ahead with a 24-story speculative office tower—part of a new central business district on Al Maryah Island. Al Hilal Bank is the first private development on the island, which is the subject of a masterplan designed to accommodate a citywide population of 3 million by 2030. The city proper is currently home to just over 600,000 people. But Abu Dhabi’s modern history is already a story of explosive growth. “When we first visited,” said Steven Nilles, the Goettsch partner in charge of the firm’s recently opened Abu Dhabi office, “the site was a strip of sand with a desert fox and some barbed wire.” Now it’s a canvas for ambitious urban planning. The 2030 plan includes light rail and a subway system for the new district, which Nilles called “a critical link” between the city’s three main islands. The building, which will be Al Hilal’s flagship, features three cubical masses slightly shifted as they are stacked, allowing for column-free spaces inside. A transparent three-story lobby will look out to the north, engaging the area’s urban character with the help of pedestrian arcades to the east and west. All ongoing projects on the island have parking below grade, where underground service corridors reserve podium-level development for pedestrians. “We’re creating a whole new urban fabric for Abu Dhabi’s central business district,” Nilles said. Goettsch expects to complete the development in late 2013, at which point the clean slate of Al Maryah Island will provide some perspective on the city’s 2030 aspirations.
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Unveiled> Missoni's Mondo Condo in the Philippines

With bright colors, rich patterns, and futuristic forms that would make Verner Panton drool, Italian homewear company MissoniHome has recently completed their first fully-branded residential tower, the 52-story Acqua Livingstone in Manila, Philippines.  The project is the fourth tower of six in the $315.9 million Acqua Private Residences project, developed in the Philippine capital by Century Properties Group. MissoniHome is the home goods branch of Missoni, the fashion line whose colorful patterns and prints attempt to elevate knitwear to artform.  Set in the lush tropical environment of the Phillipines, the tower is a "lifestyle experience," and features not only vibrant interior design and arresting furniture, but also a skydeck, called "The Canopy." The Canopy’s lower level includes a business center, an indoor and outdoor gym, Jacuzzi, a library and spa. The upper level is a social and entertainment space with an amphitheatre, lounge, DJ booth and dance floor, pool with swim up bar, and barbecue facilities. Click on a thumbnail to launch the slideshow.