New York Avenue Corridor Strategy Adopted Report New York Avenue Corridor Strategy Adopted Report | Page 131

NEW YORK AVENUE CORRIDOR STRATEGY
New York Avenue Corridor Strategy
IV. ECONOMIC ANALYSIS
Opportunity Project Economic Analysis
Analysis Objectives
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Determine financial impact of potential “prototype” projects:
East Abram Road and New York Avenue (Retail, Live/Work Units)
East Park Row Drive and New York Avenue (Mixed-Use Retail/Residential, Live/Work
and Townhome Units, Library/Rec Center)
 East Pioneer Parkway and New York Avenue (International Marketplace – Infill Retail
and Senior Housing)
Quantify economic “gaps” between prevailing market conditions and desired real estate
products
Educate public and private partners
Provide “independent” story to tell potential investors/developers/property owners
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Methodology
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Assumed private developer perspective – How much development value can be created
from each prototypical product type?
Prepared build-out economic analysis for each prototype
Sale prices/commercial rents for each prototype based on current and future market
conditions in Arlington and DFW Metroplex
Estimated project value vs. project cost, resulting in margin or “gap”
Once “gap” quantified, estimated potential “contributions to gap”
“Gap filling” measures considered included:
 Land Acquisition/Writedown
 Site Improvements Contribution (infrastructure, parking)
 Property Tax TIF (25 years)
 Sales Tax Sharing (380 Loan)
 Public Improvement District (20 Years)
 Property Tax Abatement (10 Years)
 Development Fee Waivers (Roadway, Water)
 Federal/State/Local Grants
 Streamlined Development Approval Process
 Tax Credit Equity (LIHTC, Historic, New Market)
Economic gaps could be filled with a combination of measures outlined above
Several variables affect economic feasibility (both negatively and positively): land cost;
building density; rehab vs. new construction costs; parking requirements; premiums on
rents and sale prices; “place-making” potential (amenities, connections, public spaces)
Goal in redevelopment is to balance variables in an aesthetically and economically
responsible manner
Community Strategists
FINAL REPORT | SEPTEMBER 2013
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