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Minutes 03-23-06 MEETING MINUTES OF THE CRA RETAIL DEMAND ANALYSIS WORKSHOP HELD AT THE BOYNTON BEACH PUBLIC LffiRARY, PROGRAM ROOM THURSDAY, 6:30 P.M. ON MARCH 23, 2006 Present: Jeanne Heavilin, Chair Marie Horenburger Stormet Norem James Barretta Alexander DeMarco Ken Spillas, Board Attorney Lisa Bright, Executive Director Vivian Brooks, CRA Planner Absent: Steve Myott Henderson Tillman, Vice-Chairman I . Opening Remarks Lisa Bright, CRA Executive Director, opened the meeting at 6:22 p.m. and announced the moderator for the meeting, Dr. Chuck Bohl, had not yet arrived. She explained this is the third and final discussion held by the CRA regarding the retail study and density issues. At a recent CRA meeting, the Board was undecided on the density for the downtown area. This is needed as a possible response for a Department of Community Affairs Initiative that is being sent out April 1 st. Ms. Bright turned the meeting over to Chair Heavilin. Chair Heavilin indicated the workshop is for information and discussion only, and introduced Howard Kohn, President of The Chesapeake Group, Inc. 2. Moderator - Chuck Boht Director, Knight Program in Community Building, University of Miami Mr. Bohl was not available until later in the meeting. 3. Presentation of Boynton Beach Retail Analysis and Strategy - Howard Kohn, The Chesapeake Group Mr. Kohn reviewed his credentials and invited the attendees to view his company's website at www.chesapeake.com. He explained his firm has worked in areas of the United States that have been highly successful from a commercial standpoint. Mr. Kohn thought it would be helpful to review some of the previous information and then go through the new information Mr. Kohn conducted a variety of activities for the report such as: · Reconnaissance of the area. · Stakeholder interviews. · Tracked retail over time in Boynton Beach and the County and the number of units of each type. · Survey of businesses. · Telephone survey with residents of Boynton Beach and the County. · Comparative assessment and demand forecast. MEETING MINUTES CRA RETAIL DEMAND ANALYSIS WORKSHOP BOYNTON BEACH, FL MARCH 23, 2006 · Reviewed development both planned and processed, which was critical to their initial figures resulting in further analysis. A Comparative Assessment with like communities around the country identified some businesses as under-represented including: · Used merchandise stores. · Limited service restaurants. · Snack and non-alcoholic beverage facilities. · Alcoholic beverage facilities. The Demand Forecast identified two primary markets - one being Boynton Beach residents, and the other being Palm Beach County residents. The trend in Palm Beach County is it will continue to grow at about 2,900 new housing units per year. Growth is occurring due to up-migration from other parts of Florida as opposed to in-migration from other states. Mr. Kohn recognized the following in conducting the analysis: 1. There is continued growth in Boynton Beach and Boynton Beach will capture a greater part of the growth in the County. 2. There has been some success with urban centers in the County. 3. The growth in households will continue and the residential growth geography will shift because the virgin land inside the City is near extinct unless the City makes a Boundary Adjustment formerly known as annexation. This means the redeveloped areas become extremely important. 4. Retail growth is linked to residential growth and he made the assumption the Board did not want to "steal" from other businesses because, the end result tax wise and job wise, is negated. 5. Price positioning, which was property values have not gone up in the last six months in the same way they previously had, was reviewed. 6. Congress Avenue is the retail hurdle to overcome. In determining demand, Mr. Kohn reviewed other critical elements, in order not to "steal" from another area, and reviewed the following: · Penetration level for growth in Boynton Beach market segment was 20% to 50%. · Penetration level for Palm Beach averaged 4% of growth. · A verage income in the future for residents in the CRA area would be greater than it is today and more than the average Boynton Beach resident. · Water resource - Intracoastal. Mr. Kohn provided the following factors to understand how retail fits in: 2 MEETING MINUTES CRA RETAIL DEMAND ANALYSIS WORKSHOP BOYNTON BEACH, FL MARCH 23, 2006 · Build it and they will come thinking does not work with retail unless there are no other opportunities, or there are other sufficient intervening opportunities available. · A household that spends $20K per year on purchase of retail goods and services = $400 per week (food, gasoline, clothing, automotive, general merchandise operations, etc) · 80% capture of all $20K was assumed which in addition to the above, included vacations · Ten retail categories, and within each category there are various types of businesses. Mr. Kohn reported the proportion of spending going to the non-physical areas is growing by leaps and bounds and is the fastest portion of retail sales in the United States. Taking the household with $20K in retail sales, and using a capture rate of 80% would yield $18K in sales. If a business needs $500 per square foot to pay all the costs of operations in order to show a return on investments, the calculations would show that one household would support 47 square feet of retail space. Mr. Kohn noted multiple households coming in and spending on a regular basis are needed. Mr. Kohn further broke down the above. If a household spends $3,340 per year in food annually and a supermarket needs $12 million in sales, using a 100% capture rate would yield 3,593 households would be needed to support that one supermarket. If you capture at 50%, then 7,186 households would be needed in order to support the supermarket. Mr. Kohn explained the CRA area, geographically, is on the far side of Boynton Beach and to be successful, the redevelopment area would need to be a destination trip. He commented that on the way to the redeveloped area, travelers would have to cross over Congress A venue. Mr. Kohn noted he has continuously heard that people like the Delray Beach downtown area. He expressed there are other areas in Florida that have been redeveloped such as Stuart, Las Olas, Coral Gables and new urbanism projects such as Mizner Park. Mr. Kohn traveled to downtown Delray to critique the area and determine how much change there has been since he was there last. His observations were there were a limited number of unique uses and noted: · A chocolate chain. · A quilt store, and in addition to those, · Six or more banks. · A pharmacy. · A UPS store. In the newer western space, there were: · A pizza shop. · Sushi restaurant. · One additional restaurant, and, · A vacant corner. Additionally Mr. Kohn noted low density zoning fit right in with the character of the area. There were antique shops and galleries but they were exclusively situated in older existing buildings, less expensive buildings. Mr. Kohn also observed the largest of the galleries was closing and the buildings were low cost maintenance. He urged the eRA to physically look at Delray Beach before all their decisions were made. Delray Beach currently has professional offices, realtors, lawyers, restaurants located downtown and it is a traditional main street. 3 MEETING MINUTES CRA RETAIL DEMAND ANALYSIS WORKSHOP BOYNTON BEACH, FL MARCH 23, 2006 Mr. Kohn asked the CRA to determine what product and neighborhood character needs to be developed. The questions to be answered were: how many residential units, where, and what retail uses. Other factors to consider were: · New retail may, or may not, locate in the CRA area and not all retail is wanted in the CRA area. · Whether they wanted a store that would cover a large land mass or a five-story building. · Regarding holding capacity, the developed plan called for active first floor space that would be linear retail. · The coverage area would be 35% to 40% of the site or less. Mr. Kohn reviewed the issues noted below: · What is average density to achieve the holding capacity level of retail. · Is the holding capacity level necessary to achieve successful retail. · What amount of retail is necessary to achieve retail success in a sub-area (node). · How many areas need or should have retail, and what are the implications to the CRA's plan. · Why assume retail is an essential component of the redevelopment of the CRA. · Are there suggestions or alternative approaches to the situation the CRA is in. The nodal areas were identified as Boynton Beach Boulevard west of the railroad tracks, Ocean Avenue and Federal Highway excluding under-construction, Woolbright at Federal Highway, Federal Highway north of Boynton Beach Boulevard, MLK and Seacrest but only east of Seacrest, and MLK east of the railroad to Federal Highway. The holding capacity using linear footage would be 900,000 square feet of retail space in order to satisfy what the plan calls for in those nodes. In reviewing gross coverage of the lot, it came up to 1,000,000 square feet of retail space, and using a more realistic capture rate, the calculations showed more than 1,300,000 square feet would be needed. Mr. Kohn recommended using a 25% capture rate. The estimates they developed for the Boynton Beach Boulevard node were above 25% including the 2,700 units already in process and an additional 13,000 to 20,000 units to support the level of retail in the plan at the present time if not one bit of retail goes outside of the node. Mr. Kohn reported between 1998 and 2004, Palm Beach County averaged 2,900 units per year. The main street area would need between 13 and 31.6 years supply of historic growth for Boynton Beach, (with no growth elsewhere), to support the retail units. He noted Boynton Beach would also have to take 34% to 47% of the multi-family units in the County over the next 15 years. He emphasized there was no reason to believe Boynton Beach could not capture a larger share in the housing market in the CRA area. Mr. Kohn broke down the area based upon the holding capacity. Boynton Beach, west of the railroad tracks would need 3,741 units, Ocean Avenue 2,142 units (all on top of the 2,700 units already planned for), and the MLK area would need 200 to 1,900 units. He emphasized because of the critical mass of space, lots of other new housing units would be needed in the area to make it successful as well. The average density to achieve the holding capacity, assuming retail only in the nodes would come out in the main street area, would come out to 62 to 72 units per acre. The holding capacity is not likely to be achieved in the next 20 years for retail, rather the factors of success will be the critical mass, the character of the area and the synergism within the mass. Every study conducted indicates people will walk about three blocks, in an outside environment, on a regular basis, to shop and do other things. 4 MEETING MINUTES CRA RETAIL DEMAND ANALYSIS WORKSHOP BOYNTON BEACH, FL MARCH 23, 2006 The best location to develop was discussed. Ocean Avenue and Federal Highway would work well up to Boynton Beach Boulevard. The second area, Wooldbright, would make sense because there is already successful retail there. If Woolbright redevelopes, the CRA is essentially replacing what is there. To maintain the character of the area at Ocean Avenue, the minimum square feet of critical mass would be 300,000 square feet of retail space and preferably 500,000 square feet, not necessarily in linear form. This includes multiple full service restaurants, evening entertainment venues, wine/cheese, collectibles/cards and other higher end retail operations. Some of those businesses may already have a facility on Congress, but could have a second location there. This area would have its own market if it has its own rooftops. For the Woolbright node, it was envisioned about 200,000 to 250,000 square feet would be needed and it would be a good location for specialty supermarkets, (convenience shopping), family priced chain restaurants (buffets, financial institutions, small electronic stores, i.e. Radio Shacks, etc.) In addition to the 2,700 units already processed and, in order to make the Ocean Avenue node happen along with Woolbright, another 10,000 - 12,000 residential units would be needed with retail occurring only in the nodes. From Mr. Kohn's perspective, changes in the plan are needed. He stressed the need for a common vision and strongly recommended having visual aids. He indicated the regulations in place are great for first floor, but it should not be all retail. It should be active first floor space and it needs to look like active space from a design standpoint,. He recommended the CRA minimize and restrict retail leases initially elsewhere in the area, and visit other locations to look for patterns and determine if they are applicable. He further recommended having increased flexibility in the plan design. He reported zoning and development ordinances are moving heavily in the direction that the development should be compatible with the surrounding areas to get the highest quality development. Mr. Kohn showed pictures of Atlantic Station in Atlanta, Georgia, which had multi-level facilities in an area, heavy with new housing. He explained Dillard's has occupied one of the multi-level structures and emphasized this was the first time Dillard's has located to a downtown area. Dr. Chuck Bohl was available and presented his credentials as Director, Knight Program in Community Building, University of Miami. He worked in Economic Development in New York for about 11 years, has a background in planning, and is on the Urban Land Institute Executive Committee for South East Florida. More recently he wrote a book on new town centers and main streets. He was interested in hearing the Board's comments and recommended waiting until Vivian Brooks, CRA Planner made her presentation before discussing the issues. 4. Review of Proposed Land Use/Zoning Changes - Vivian Brooks. CRA Planner Ms. Brooks showed slides depicting mixed use areas and a node She contended Boynton Beach does not have a downtown area, but functionally, it is Congress A venue which is not pedestrian friendly. She noted the mixed uses on Federal Highway, but elaborated Federal Highway is four miles long and is not walkable. Ocean Avenue from Seacrest to the marina was a half mile. She pointed out if you look at Ocean A venue east to west, it showed a critical mass. There was the Promenade and Ocean One in the process of being developed. Marina Village is almost complete. The marina is there and the other promenade would be an attractor. If you go west, there is the Old High School, Children's Museum and the Library. The Arches have been approved. There are about 1,600 units going into the area without development of the post office site and another area which is starting to experience some assembly. She explained there is a logical pathway in the area. 5 MEETING MINUTES CRA RETAIL DEMAND ANALYSIS WORKSHOP BOYNTON BEACH, FL MARCH 23, 2006 She concurred that staff needs to detennine the area to concentrate the retail in, and what polices need to be changed to make that happen. Dr. Bohls' first impression was the development was driven by how much retail was wanted and then working from that detennining how many housing units were needed. He explained it could be a long scenario of building a downtown. He reiterated countywide, 2,900 units per year on average were constructed and were absorbed in the past six years, but questioned the assumption for the next 13-31 years that Boynton Beach could capture 34% of the units. He indicated that growth for the State of Florida over the long tenn looked good and traditionally ebbs and flows. He recommended the CRA familiarize themselves with the other alternatives and noted Mizner Park had less than 250,000 units. Dr. Bohl explained traditional main streets are pretty confined and are composed of about 1,000 to 2,000 linear feet. He recommended not thinking of retail in tenns of generic items and suggested, in reference to supply and demand, of thinking in tenns of the quality and types of places the retail environments would provide. He observed there were an abundance of auto-oriented retail but a shortage of the walkable retail. He agreed, when people decide where they are going to eat, the environment plays a factor. City Place has struggled in its retail but its restaurants have been hugely successful because it is a great environment to dine in. He clarified the CRA does not need a huge quantity of retail to create a great area and one does not need to think in tenns of large numbers to create a downtown area. 5. Discussion and Concensus Building for Various Options - Chuck Bohl Chair Heavilin opened the floor for questions. · The current plan calls for four miles of mixed use along Federal Highway. Developers have been actively encouraged to use first floor retail. Dr. Bohls was asked how to transition from the current Master Plan to a new design and responded there are alternatives to having active units. He explained in new places such as Celebration where the market to support retail on day one was absent, space can be designed initially and then converted later. · The question was posed regarding the dilemna where developers will design first floor retail and it would need to be discouraged. Mr. Kohn responded the plan would need significant modifications once the CRA detennines what they want the nodes to look like. What is being promoted currently is a four-mile linear strip. There is one mixed use zone which was an error. He indicated that currently, active first floor space is needed but retail is being promoted. Dr. Bohl added it is a delicate balance. The frontage must be pleasant to walk past. Ms. Brooks explained most of the map showing mixed use zoning is mixed use low and it is not a requirement in the code. The problem, she noted, is developers have a difficult time figuring out what that means. There has been some misinfonnation that retail was required in the low category, and they are looking at strengthening the language. · Examples of communities situated near water that were not resort type areas were requested. Mr. Kohn responded there are some communities nearby that have created cold space and they are resort communities with hotels. He suggested looking at the differences in the areas between Ft. Lauderdale, Las Olas and Sunny Isle Beaches having both commercial and retail from a design standpoint. He indicated some of the redevelopment that has occurred has been disastrous. The following comments and responses were received: 6 MEETING MINUTES CRA RETAIL DEMAND ANALYSIS WORKSHOP BOYNTON BEACH, FL MARCH 23, 2006 Ms. Horenburger commented she thought there was too much retail and more office space was needed in the CRA area. She disagreed the "Build it and they will come." theory would not work. She explained Delray Beach built and marketed the area and further expressed the problem with any retail space is always going to be landlord rents. She stressed the rents are astronomical in Delray Beach compared to what they once were. She observed there are destinations in Boynton Beach such as Two Georges and the Marina and too much retail downtown along Federal Highway is not good. She thought there should be tighter nodes. Dr. Bohl elaborated you can still define the main street. He explained there are different kinds of places people will travel to for different reasons. This concept needs more nurturing and protecting. Mr. DeMarco shared his observations from different areas of the state and country and noted each location provided a different atmosphere. He elaborated the CRA has the ocean and the intracoastal. He reported in the area between Boynton Beach Boulevard and Gateway, there are 40 to 50 restaurants. In one area he visited there was a section of the city that had restaurants from all the countries in the world. Mr. Kohn felt there is great opportunity here because there will be residential growth as long as the growth is the way the CRA envisions. Ms. Bright explained the CRA and the City Commission would be undertaking a visioning process. Dr. Bohl strongly suggested having visual aids in place for the Visioning Workshop. He explained drawings cut through the numbers and refines a common vision. It was also recommended a fair representation from the developers' perspective be given in order to balance the vision versus the cost. The process could result with a real consensus. Dr. Bohl observed the projects appear to be numbers driven as opposed to the quality of life. Additional steps that could be taken to assist with the visioning process would be to do some visualization examples ahead of time so options could be presented and tweaked, and do as much work behind the scenes as possible such as getting the land values projections for developers ahead of time. The CRA would not have all the specifics of the regulations to make everything happen, but the CRA would have the guidelines. Having professional services as facilitators was suggested. Dr. Bohl recommended recogmzmg the value of the VISIOning and defining what portions of the community would look like. To make that happen, development must be based on what can be regulated and he cautioned to be aware of what the market will support. The importance of knowing what you want to be was emphasized. The present plan with four miles is unrealistic. The retail industry has rediscovered street oriented retail and they are being built. In some cases, there are lifestyle centers locating in the these areas. He suggested looking for a central node, determining what you want and then capturing it. Dr. Bohl advised it was okay to sacrifice some streets to make sure you have good pedestrian walkways in others. Mr. Kohn indicated if he were developing the area, he would have one significant node and would focus developing along the water. It was also noted having a top floor and first floor restaurant overlooking the water could be equally appealing. The CRA observed that people would drive to another county for good food and a good restaurant atmosphere. Both Dr. Bohl and Mr. Kohn thought it could be a starting point to develop clusters downtown which happens naturally in cities. Using density to determine restaurant feasibility was discussed, but as a starting point, if it is done correctly, there could be a higher penetration of a larger population frequenting those establishments. 7 MEETING MINUTES CRA RETAIL DEMAND ANALYSIS WORKSHOP BOYNTON BEACH, FL MARCH 23, 2006 Hannas Matras, Economic Development Planner for the City of Boynton Beach indicated there should be a vision, but if some of the visions are unrealistic and they might still want it put in the plan. She added she went to Celebration on a Saturday afternoon and nobody was there. She ate at a restaurant and there were about 15 people in the restaurant. She emphasized, locations such as Mizner Park have serious problems. New urbanism projects from a residential standpoint have been phenomenally successful but not for retail. That is not what is being created here, but there will still be a need to have some areas within walking distances. There will need to be certain components such as office activity, residential development and retail. The CRA has to detennine what they want it to look like. Even if it is the same business as is located on Congress Avenue, it would provide a different ambience. The whole east side of Federal Highway does not need to be developed. There was discussion that the CRA is an advisory body and it would have been much better to have a joint workshop with the City. The visioning process will be worked on together with the City Commission and they need to move forward with visioning and place making. The study area will be broken up into understandable pieces. Mr. Norem recommended taking the lead and selecting who should attend the Visioning Process. It was noted the CRA should look to the Regional Planning Council or the FAU center. Using a professional to facilitate the process was suggested. The report from Mr. Kohn will be delivered to the CRA for distribution. 6. Adjournment Chair Heavilin thanked all for the presentations. There was consensus to adjourn. Meeting adjourned at 8:15pm. Respectfully submitted, /, (i '! Uj~'L - , . ~A.J "f)//;! Catherine erry-Gubennan Recording Secretary 032706 8