04-19-18 Community Investment - Laserfiche WebLink

Home Browse Search

®CITY OF SOUTH BEND I OFFICE OF THE CLERK Mr. Foyle went on, What this model is trying to do is correlate expectations for density with other certain details of things like South Bend's Consent Decree. This means we have to think about the preservation of storm water and that impacts our calculations to a certain extent. So again,the goal today is not to set policy but to start thinking about the shares of development we might expect to unfold at each of the locations and the amount of space we might want to use, all in hope to give us a framework for our conversation. Thinking about these sites, they are all very different. Particularly, the site at the airport and the Chocolate Factory site included more of a retail commercial conversation and not an industrial conversation. We were more concerned about the idea of residential development in proximity to an airport as a general idea. What you see in all of these assumptions is the extent to which we add residential development. That would obviously be a higher value real estate use compared to industrial, simply on a square foot basis. That factor alone starts to influence the values we are generating from these different sites as well as the densities we are going to achieve at these different sites. Mr. Foyle continued, Behind these tables (referencing the presentation) is a tremendous amount of information. I think one (1) of the things we looked at very carefully between Honeywell and Amtrak was to understand the differences in real estate value. When we look at Honeywell, there is at least a sense that real estate values have stabilized. Whereas at Amtrak there is more concern about real estate values as they may have not stabilized yet. They are generally slightly lower as well. We are also looking at the amount of land we have around each of these locations. What you see in the presentation is just a set of assumptions that are allowing us to have a conversation about how we might understand and program the square footage. You will see this notion of how we try to allocate demand. Downtown is six hundred and seventy (670) dwelling units, Amtrak is two hundred and seventy (270), Honeywell Mixed-Use is four hundred and seventy (470), and Honeywell Industrial is two hundred and twenty(220).Again,obviously,Downtown,we can build a dense building that we can't build at other locations. That is our reality. I think one (1) of the assumptions we did make in this program is we felt that the pure office conversation would only happen Downtown whereas we could have a flex office location at any of the other station locations. That is also an important detail. Obviously it is cheaper to build flex office than it is to build just office. Mr. Foyle went on, Again, we are trying to get to this notion of real estate built value. When we think about these as reality, when we look at Downtown, we can build, whether it is an apartment or condominium project. There are a number of projects right now that are talking about$200,000 - $400,000 homes. The developer can look at that program and can move forward. I think there are other station locations where land may be at a premium that may influence our judgment over whether or not that is a realistic outcome. It is not to say a developer wouldn't try. We are trying to find a realistic starting point for the conversation. We are getting at this notion of our values and trying to get the notion of the square footage. So again for Honeywell and Chocolate,we can start to talk about significant chunks of industrial space.The main thing with industrial space these days is we're building 200,000 — 400,000 square foot buildings. Some of these internet fulfillment centers may be up to 500,000 square feet. That is a very different land paradigm than what we are talking about for retail or apartments. So they are different land use conversations. Mr. Foyle continued, These values are trying to reflect what a realistic outcome could be over the next ten (10) years. Obviously things like inflation come into play, the reality of what will likely EXCELLENCE I ACCOUNTABILITY ( INNOVATION I INCLUSION ( EMPOWERMENT 455 County-City Building 1227W Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If574.235.91731TM574.235.5567lwww.southbendin.gov 7