SNIDER PLAZA Parking and Improvement Strategies Source: Google - - PowerPoint PPT Presentation

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SNIDER PLAZA IMPROVEMENT STRATEGIES

City Council Briefing – July 17th, 2018

Source: Google

SNIDER PLAZA

Parking and Improvement Strategies

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U R B A N P L A N N I N G

SNIDER PLAZA IMPROVEMENT STRATEGIES

Topics: Cost Scenarios Recommendation Funding Concepts Later Phases Next Steps

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Cost Scenarios parking shortfall: 493 spaces average

✓ Design Option 1 – Basic (273 sp shortfall) $7,477,021

• Replace deteriorated on-site infrastructure

Traditional City Costs: $6,069,140

• Streetscape and identity enhancements

Additional Costs: $1,407,882

• Parking management plan with district valet
• - Site area infrastructure & landscaping
• Small addition to on street parking
• Surface parking lot on City land
• Some sharing of office spaces (with owner acceptance)

✓ Design Option 2 – Moderate (195 sp shortfall) $16,169,840

• Replace deteriorated on-site infrastructure

Traditional City Costs: $6,083,568

• Streetscape, identity and pocket park enhancements

Additional Costs: $10,086,271

• Parking management plan with district valet
• - Site area infrastructure & landscaping
• Small addition to on street parking
• - Park Plaza garage expansion
• Some sharing of office spaces (with owner acceptance)
• Expand Park Plaza garage

✓ Design Option 3 – Full (34 sp surplus) $33,290,821

• Replace deteriorated on-site infrastructure

Traditional City Costs: $6,083,568

• Streetscape, identity and pocket park enhancements

Additional Costs: $27,207,253

• Parking management plan with district valet
• - Site area infrastructure & landscaping
• Small addition to on street parking
• - Park Plaza garage expansion
• Some sharing of office spaces (with owner acceptance)
• - Snider Plaza underground garage
• Expand Park Plaza garage
• Snider Plaza underground garage

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Recommendation

Phase One:

Design Option 1: Street & utility enhancements and landscaped Daniel surface lot

Total Estimated Cost: $7,477,021 (+/- 220 spaces)

• Traditional City Costs:

$6,069,140 Scope: Base “on-site” street utility and landscaping

• Additional Costs:

$1,407,882 Scope: Site infrastructure & special landscaping Note: Larger neighborhood infrastructure improvements of +/-$3M required at some pointed on anticipated new sales

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Recommendation

✓ Design Option 1 -- (273 sp shortfall) Total: $7,477,021

Traditional City Costs

• - $6,069,140

Additional Costs -- $1,407,882 General Conditions $ 540,000 Demolition $ 126,320 Relocate Utilities $ 750,000 Barricades $ 45,000 Surface Parking Lot $ 304,000 Paving $2,021,120 Sidewalks $ 108,000 Caulking and Sealants $ 35,000 Fountain and Graphics $ 75,000 Landscape and Irrigation $ 305,627 $ 305,627 Entry Monuments $ 100,000 Striping and Wheel Stops $ 15,000 Street Lighting $ 80,750 $ 80,750 Power $ 28,500 $ 28,500 Light Pole Bases $ 38,000 $ 38,000 Decorative Lighting $ 32,063 $ 32,062 Soft Costs $1,281,523 $ 443,943

Note: Conceptual cost estimate prepared by Lincoln Builders of Texas, Bear Creek Utility Contractors Engineered drawings will be required to determine final costs.

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SNIDER PLAZA IMPROVEMENT STRATEGIES Special Financing Period

Funding Concepts

Premise: Parking and aesthetic improvements allow Snider Plaza values to increase (ad valorem and sales tax)

Revenue (AV and/or Sales Tax) Base Tax Revenue

Belongs to all taxing entities

Incremental Revenue

Pays for project costs

Value after Special Financing Period

Total revenue belongs to all taxing entities

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Funding Concepts

Tools: (a) Tax Increment Financing (TIF)

• Captures additional increase in property tax beyond current assessed base value
• Generally used to finance desired improvements
• Additional ad valorem increment generated (assuming 30% value increase post

improvements) estimated at +/- $9.84M over 25 years

(b) Public Improvement District

• Property owners agree to a special assessment
• Generally used to fund the maintenance of the improvements post construction
• Additional sales tax increment generated (assuming 50% increase post improvements)

estimated at +/- $17.79M over 25 years

(c) Private Investment

• If return structure is created, private capital can replace public investment
• Would require the incremental values created to generate return
• City would backstop these values to minimum level to create proper risk threshold

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Cost Share Concepts

✓ Design Option 1 – Basic $7,477,021

• 1. City pays for traditional city costs

Traditional City Costs: $6,069,140

• 2. Private owners pay for additional costs

Additional Costs: $1,407,882 ➢ Special assessment district

• - Site area infrastructure & landscaping

✓ Design Option 2 – Moderate $16,169,840

• 1. City pays for traditional city costs

Traditional City Costs: $6,083,568

• 2. Private owners pay for portion of additional costs

Additional Costs: $10,086,271 ➢ Parking management plan with district valet

• - Site area infrastructure & landscaping

➢ Special assessment district

• - Park Plaza garage expansion
• 3. Private investment group finances remainder

➢ Backstopped private investment strategy based on 380 agreement tied to ad valorem and sales tax increment

✓ Design Option 3 – Full $33,290,821

• 1. City pays for traditional city costs

Traditional City Costs: $6,083,568

• 2. Private owners pay for portion of additional costs

Additional Costs: $27,207,253 ➢ Parking management plan with district valet

• - Site area infrastructure & landscaping

➢ Special assessment district

• - Park Plaza garage expansion
• 3. Private investment group finances remainder
• - Snider Plaza underground garage

➢ Backstopped private investment strategy based on 380 agreement tied to ad valorem and sales tax increment

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U R B A N P L A N N I N G

SNIDER PLAZA IMPROVEMENT STRATEGIES

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Recommendation

Phase One:

Design Option 1: Street & utility enhancements and landscaped Daniel surface lot

• I. Cost Sharing

$7,477,021 (+/- 220 spaces)

• City pays for traditional city costs

Traditional City Costs: $6,069,140

• PID created to pay for non-traditional costs

Additional Costs: $1,407,882

• Assessment based on anticipated new sales

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Recommendation

Phase One:

Design Option 1: Street & utility enhancements and landscaped Daniel surface lot

• II. Additional Measures
• City creates Tax Increment Finance District (TIRZ) with 2018 as base year to capture new value

created by Park Plaza

• City works with property owners to create Public Improvement District (PID) to fund enhanced

costs and administration of parking district

• City creates Municipal Parking Authority (MPA) to administer parking management plan with

district valet and resident parking provisions

• MPA enters into master lease agreements for certain private parking spaces:

Options may include:

• 1. Park Plaza –
• Required pay spaces ($3 after first hour)
• Possible excess spaces (based on actual density of office users)
• After hours spaces (if agreed to by owner)
• 2. Medical Office Building –
• After hours spaces (if agreed to by owner)
• 3. SMU --
• After hours spaces (if agreed to by University)

Opportunities: (a) Property owners can sublease master lease spaces as needed to add more restaurants/retail (b) City seeks out third party investors to enter into 380 agreement investment strategy for larger options if interested

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Recommendation

Phase Two:

Explore Options 2 and 3 (After impact of phase one is fully determined)

• I. Cost Sharing

Options

• City paid for traditional costs and created Districts

Option 2 Costs: $10,086,271

• Private investment group finances additional costs
• - 78 spaces additional from Option 1
• Tied to 380 Agreement based on

Option 3 Costs: $27,207,253 ad valorem and sales tax increment generated

• - 307 spaces additional from Option 1
• II. Other Considerations
• Degree of participation by owners of area garages
• Desired scale of investment as communicated by private investors
• Level of participation required by City as part of 380 agreement proposals

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Next Steps

✓ Refine Approach as Needed ✓ Investigate Implementation Tools Through Committees:

• Degree of Private Funding
• Financing vehicles
• Operational vehicles