HomeMy WebLinkAboutItem B: West Broadway Development Update
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Work Session: West Broadway Development Update
Meeting Date: January 9, 2006 Agenda Item Number: B
Department: Planning and Development Staff Contact: Mike Sullivan
www.eugene-or.gov Contact Telephone Number: 682-5448
ISSUE STATEMENT
This work session will provide an update of the proposed redevelopment of West Broadway.
BACKGROUND
Opus Development, in partnership with local property owners Connor and Woolley, are considering a
$165 million redevelopment of West Broadway between Willamette Street and Charnelton Street. The
two-block stretch of Broadway being considered for redevelopment has experienced a steady decline
over the past two decades and is currently characterized by high vacancy rates and below market
property values.
The conceptual plan for this mixed-use project includes new ground floor retail, cinema, housing, hotel,
and office uses. New embedded, structured parking is also included in the development proposal. The
footprint of the development includes the entire half blocks north and south of Broadway between
Willamette and Charnelton, and the Atrium Building quarter block. The retail would include a mix of
national, regional and local shops and restaurants. All of the street front, ground floor space within the
development footprint is planned for retail. A second-floor cinema over retail is envisioned for the
Atrium Building quarter block. The plan also envisions a new hotel at the northwest corner of
Broadway and Olive Street.
Three half-blocks of housing (approximately 288 units) above retail are planned along Broadway. The
proposal for the housing units is a mix of condo ownership and rental units. Plans call for the future
conversion of rental units to ownership condos. Single level flats are envisioned for the second floor,
with two-level units encompassing the third and fourth floors. A green-roof common area for residents
is envisioned above the top level of the embedded parking.
The former Bon/Symantec building is planned for conversion of the ground floor to retail, and office use
on the upper floors. The building has been presented as a possible site for the relocation of Planning and
Development, which will be required if the Atrium Building is included in the proposed development
plan.
The developers have indicated that additional parking is necessary to support both retail and housing
uses. They feel strongly that the marketability of ownership housing is contingent on having dedicated
parking spaces immediately adjacent to condo units. Similarly, the marketability of the retail concept is
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contingent on industry standard parking supply. Their preliminary analysis would require
approximately 743 new structured parking spaces, of which 288 would be dedicated to condo units, and
455 would be City-owned public parking. The development proposal would require significant financial
support through the Urban Renewal District. Details of this proposed financial support are still pending.
Additional project detail is included in Attachment A provided to the City by Connor and Woolley. It is
important to note that the proposed development plan is in a conceptual phase. The developers are still
considering a variety of site plan options for the development footprint but are committed to the retail
and housing mixed-use character of the proposal.
Broadway is identified in the Eugene Downtown Plan as a “Great Street.” The concept of Great Streets
was one of the most strongly supported ideas in the Vision for Greater Downtown Eugene. Ground floor
retail, restaurants, and sidewalk activities such as outdoor cafes are specifically encouraged along
Broadway. The consolidated property ownership, the ability of Opus to assemble an attractive mix of
retailers, and the significant housing investment proposed provide a unique opportunity for a
comprehensive redevelopment of this lagging stretch of Broadway.
RELATED CITY POLICIES
Related policies and implementation strategies included in the Eugene Downtown Plan:
Downtown development shall support the urban qualities of density, vitality, livability and
?
diversity to create a downtown, urban environment.
Actively pursue public/private development opportunities to achieve the vision for an active,
?
vital, growing downtown.
Use downtown development tools and incentives to encourage development that provides
?
character and density downtown.
Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety
?
of income levels and ownership opportunities.
Promote multi-story, mixed-use structures downtown through financial incentives or code
?
amendments.
Develop additional financial tools to assist with the development of housing, including the use of
?
bonds, tax increment financing, land assembly and parking.
Related Growth Management objectives:
Policy 2: Encourage in-fill, mixed-use, redevelopment, and higher density development.
Policy 3: Encourage a mix of business and residential uses downtown using incentives and zoning.
Policy 10: Encourage the creation of transportation-efficient land use patterns and implementation
of nodal development concepts.
Policy 14: Development shall be required to pay the full cost of extending infrastructure and
services, except that the City will examine ways to subsidize the costs of providing
infrastructure or offer other incentives that support higher-density infill, mixed use, and
redevelopment.
COUNCIL OPTIONS
This agenda item is for informational purposes. There are several options for the council to consider,
including:
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1. Do nothing.
2. Direct the City Manager to cease discussions with Connor and Woolley on the West Broadway
development proposal.
3. Direct the City Manager to work with Connor and Woolley on developing a more detailed proposal
related to West Broadway development to be brought back to the council.
CITY MANAGER’S RECOMMENDATION
Although this is just an informational update, City staff will likely need to spend resources to move this
project forward. The City Manager recommends Option #3 above: Direct the City Manager to work
with Connor and Woolley on developing a more detailed proposal related to West Broadway
development to be brought back to the council.
SUGGESTED MOTION
I move to direct the City Manager to work with Connor and Woolley on developing a more detailed
proposal related to West Broadway development to be brought back to the council.
ATTACHMENTS
A. Summary of Development Plan (provided to City by Connor and Woolley)
FOR MORE INFORMATION
Staff Contact: Mike Sullivan
Telephone: 682-5448
Staff E-Mail: michael.c.sullivan@ci.eugene.or.us
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Retail Tenant Mix
We envision a sought after mix of retailers to join the ongoing re-development of
Downtown Eugene. With Whole Foods anchoring the east end of Broadway and
Connor/Opus Northwest project anchoring the west end of Broadway, Downtown
Eugene will be the address of choice for retailers and restaurants that wish to benefit
from the underserved strong demographic profile of Eugene and surrounding Lane
County. Combining this with the ability to leverage off of the Regional Transit Hub, the
new library, the performing arts venues and Downtown's proximity to the University of
Oregon will be strong selling points that will drive retail tenant demand.
It will be important to establish a balanced mix of national and regional tenants with
great locally based Eugene retailers and restaurants. Creating this type of blend of
offerings will separate Downtown Eugene from other typical retail venues in the market
and will ensure a dynamic point of difference. The list of tenants that locate in projects
and districts like Bridgeport Village (Lake Oswego/Tigard/Tulatin), University Village
(Seattle), The Pearl (Portland) and The Northwest District (Portland) help foster a
sense of distinction. This is our goal with the streetfront of Downtown Eugene.
Our goal is to create an environment that continually draws customers from a large
regional trade area to a vibrant streetfront in Downtown Eugene, thereby making it a 16
hour per day venue. To do this, the tenant mix must be include apparel, soft goods and
lifestyle offerings coupled with entertainment and restaurant venues that are not found
in the Eugene/Lane County trade area.
Residential Uses
A mix of for rent and for sale multi-family housing will be developed. The predominant
residential product will be condominiums. Apartments may comprise 25% to 35% of
the residential units, depending upon market conditions. If there is sufficient demand, all
of the residential units could be developed as condominiums.
12/20105
Parki ng
Requirements
Residential
288 units @ 1.5 per unit
432 spaces
Retail (typical)
166,591 sf @ 4/ I ,000sf
666
Theatre
1,600 seats @ 1/4.5 seats
356
Restau rants
20,000sf @ 10/ I ,000sf
200
Office
I OO,OOOsf @ 2/I,OOOsf
200
Total requirement
1,854
Availability
Broadway Place (729 total less 179 committed)
550
Parkade (438 total less 314 committed)
124
Overpark (598 total less 161 committed)
437
Total available
1,111
New Construction Needed
Total requirement
1,854
Available
1,111
New construction required
743
Owned by residential units
288
Owned by City of Eugene
455
Parking Location
New parking construction would be located in each of the half blocks to be
redeveloped. Condominiums require parking located on site. Some parking on each
half block would be owned by the residential units and some would be owned by the
city.
12120/05
City's Role in Parking
The City of Eugene would buy, own and operate 455 public parking spaces to satisfy the
demand for retail parking and to provide additional parking for residents.
Estimated Value of Completed Project
The estimated value of the completed project is $165,000,000, including the value of the
city owned parking.
Opus Northwest Resume
The Opus Group was founded by Gerald Rauenhorst in 1953 in an effort to find a
better way to do business. A "better way" meant building a business on principles of
fairness and honesty. It also meant creating a model that would combine design and
construction in a turnkey approach, consolidating responsibility for every aspect of a
building project from concept through completion. This approach resulted in a savings
in time and money for our clients.
Today Opus continues to create high quality building of all sizes and types, on time and
within budget. Opus is a vertically integrated design-build developer offering in-house
experience in real estate development; architecture and engineering; construction;
property and asset management; and financing, leasing and sales. Opus Group was
named the Number One Industrial Developer and the Number Two Office Developer
in the United States by National Real Estate Investor in 2004. Our areas of expertise go
beyond the office and industrial markets to include significant multi-family, mixed-use,
retail and institutional expertise as well. From its inception in 1953, the Opus Group
has grown and expanded to include 1,400 dedicated professionals in 29 locations in the
United States and Canada.
The Portland office was established in 1994 and has steadily built its reputation as one of
the leading developers in the region. With roughly twenty professionals on staff
seasoned in real estate, architecture and engineering, and construction, our local team
has completed approximately 3.5 million sq.ft. of real estate development.
12120/05
Project Financing
The project will be financed with equity contributed by Opus Northwest and its local
partners and through a construction loan. The project is similar in scope (value) to
Opus Northwest's Bridgeport Village project in Tualatin, OR, which was financed by
Opus using internal equity and a conventional construction loan.
Property Acquisitions
The Opus/Connor/Woolley team expects that the City of Eugene will acquire all of the
listed parcels and will sell those parcels to the development team at cost. The
development team further expects that the city will sell the Atrium building to the
developer.
Atrium Building Relocation Plan
City offices currently located in the Atrium Building can be accommodated in the
Symantec Building at Broadway and Charnelton if that is the city's desire. The ground
floor of the Symantec Building will be remodeled as retail space. The upper floors are
currently built out as office space and can be reconfigured to meet the city's needs.
Plans to accommodate other tenants in the Atrium Building will be developed after
meeting with those tenants.
12/20/05
Representative Projects
Cornell West Class A Office Building
Bridgeport Village Lifestyle Center
American Honda Motor Facility
Southwest Center
Tigard, OR
Chosen as the 2001 SIOR Office
Development of the Year, Southwest
Center features an exterior made up of 47
percent glass and thin brick embedded in
concrete panels. The construction
duration of this project was only 8
months.
Cornell West
Beaverton, OR
Chosen as the winner of ABC's 2001
Excellence in Construction Award and as
a finalist for the OCAP A 2001 Excellence
in Concrete Award, Cornell West is the
first three-story concrete tilt-wall office
building built in the Portland
Metropolitan area.
BridgepOJi Village
Tualatin, OR
This highly anticipated lifestyle center is
the site of Oregon's first Crate & Barrel
home store. More than the typical retail
center, the high-profile project offers an
open-air atmosphere with landscaping and
a main street appeal. As the premier
location for entertainment and shopping,
Bridgeport Village consists of the perfect
blend of high-end anchor stores, specialty
shops, theaters, and restaurants.
American Honda Motor Facilitv
Gresham, OR
The American Honda Northwest Regional
Facility is a parts distribution center,
technical training facility, and zone office
for American Honda Motor Company.
This project has received the "Version 2.0
Gold" LEED (Leadership in Energy and
Environmental Design) rating. American
Honda is the first industrial facility with this
high a rating in the nation.
Use
Class A Office
Size
92,000 sq.ft.
Completion Date
May 2001
Use
Class A Office
Size
120,000 sq.ft.
Completion Date
November 2000
Use
Mixed Use:
Retail, Office,
Theater
Size
505,000 sq.ft.
Completion Date
Phase I -
November 2004
Phase II - May
2005
Use
Regional
Training &
Distribution
Size
180,000 sq.ft.
Completion Date
August 2001
12/20/05
The Opus Group - Facts
Annual Revenues
2004 revenue - approximately $1.4 billion
2004 construction volume - $829 million
Development Expertise
Development projects totaling more than 218 million square feet
since 1953
52 years' experience
Over 2,250 projects completed
Approximately 24 million square feet of space planned or under
development for 2005
National/Regional Resources
28 U.S. offices and 1 office in Toronto, Ontario
1,400 employees nationwide
154 architectural and engineering professionals
National Rankings
#1 among the Top 10 Industrial Developers by National Real Estate
Investor (2004)
#2 among the Top 10 Office Developers by National Real Estate
Investor (2004)
#4 among the Top Real Estate Developers by Commercial Property
News (2004)
#14 among the Top 100 Design-Build Firms by Engineering News
Record (2004)
Opus East, L.L.C.
Washington, D.C. *
Philadelphia, PA
Opus North Corporation
Chicago, IL *
Columbus, OH
Detroit, MI
Indianapolis, IN
Milwaukee, WI
Opus Northwest, L.L.C.
Minneapolis, MN *
Denver, CO
Kansas City, MO
Portland, OR
Seattle, WA
St. Louis, MO
Opus South Corporation
Tampa, FL *
Atlanta, GA
Boca Raton, FL
Naples, FL
Orlando, FL
Pensacola, FL
Opus West Corporation
Phoenix, AZ *
Austin, TX
Dallas, TX
Houston, TX
Los Angeles, CA
Orange County, CA
Sacramento, CA
San Diego, CA
San Francisco, CA
O.R.E. Development
Corporation
Toronto, ON
* Headquarters