SNIDER PLAZA Parking and Improvement Strategies Source: Google City Council Briefing – July 17 th , 2018 SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
Topics: Cost Scenarios Recommendation Funding Concepts Later Phases Next Steps SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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 SNIDER PLAZA IMPROVEMENT STRATEGIES SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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 OUT IN OUT IN IN IN OUT OUT SNIDER PLAZA IMPROVEMENT STRATEGIES SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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. SNIDER PLAZA IMPROVEMENT STRATEGIES SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
Funding Concepts Premise: Parking and aesthetic improvements allow Snider Plaza values to increase (ad valorem and sales tax) Revenue (AV and/or Sales Tax) Value after Special Financing Period Incremental Revenue Total revenue belongs to Pays for project costs all taxing entities Base Tax Revenue Belongs to all taxing entities Special Financing Period SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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 SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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 SNIDER PLAZA IMPROVEMENT STRATEGIES SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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 OUT IN OUT IN IN IN OUT OUT SNIDER PLAZA IMPROVEMENT STRATEGIES SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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 – o Required pay spaces ($3 after first hour) o Possible excess spaces (based on actual density of office users) o After hours spaces (if agreed to by owner) 2. Medical Office Building – o After hours spaces (if agreed to by owner) 3. SMU -- o 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 SNIDER PLAZA IMPROVEMENT STRATEGIES SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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 SNIDER PLAZA IMPROVEMENT STRATEGIES SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
Next Steps ✓ Refine Approach as Needed ✓ Investigate Implementation Tools Through Committees: • Degree of Private Funding • Financing vehicles • Operational vehicles OUT IN OUT IN IN IN OUT OUT SNIDER PLAZA IMPROVEMENT STRATEGIES SNIDER PLAZA IMPROVEMENT STRATEGIES CATALYST U R B A N P L A N N I N G
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