Near-Northwest-Neighborhood-Plan-Final-Strategic-Plan-2019

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42 Lot width analysis in Sherman & Harrison target area The neighborhood level lot width analysis was used to conduct a lot analysis within the target area. Lot combinations, where there are multiple adjacent vacant lots, were analyzed to determine typical di- mensions and explore what opportunities exist for a variety of building types in the area. $- $828,266 $2,804,978 $5,850,195 $9,632,290 0 50 100 150 200 250 300 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Year 0 Year 5 Cumulative Revenue Year 10 Cumulative Revenue Year 15 Cumulative Revenue Year 20 Cumulative Revenue Total # of UnitsProperty Tax RevenueCumulative Property Tax Revenue & Unit Count Oneplex Duplex Fourplex Townhome Cottage Court Legend Oneplex Duplex Fourplex Townhome Cottage Court Legend Oneplex Duplex Fourplex Townhome Cottage Court Legend Oneplex Duplex Fourplex Townhome Cottage Court Legend Oneplex Duplex Fourplex Townhome Cottage Court Legend No matter which building type is developed on a particular property, there are some basic guiding prin- ciples that should be followed to ensure that there is cohesive and thoughtful development: • Building design should be completed with a spe- cial consideration for the character of the neigh- borhood; • Larger scale buildings are most appropriate at corridors, nodes, and/or corner locations; • More intense uses should be focused along the corridors or in nodes; • Buildings should address the street; • Details will assist in making buildings consistent with the neighborhood – including, but not lim- ited to: roof design and pitch, exterior trim size, porch or stoop proportions, first floor elevation, eaves, etc.; and • Consistent with City Code, garages will be ac- cessed off an alley where one is present. Using the Residential Market Potential Study as a basis, projected 5, 10, and 20-year build-out scenarios were developed. These are not intended to show the exact type and location of new buildings but rather provide a vision for how the neighborhood could develop based on general urban planning and mar- ket-based principles. The buildout scenarios may appear aggressive, and many of the units are anticipated to be missing mid- dle housing types such as duplexes and fourplexes rather than single family houses. As a result, the devel- opment of one parcel could account for two or four units. Based on the future scenarios, the potential property tax revenue was calculated for the target area. Under- standing the potential tax revenue provides a frame - work for examining the return on investment (ROI) and can help determine the type and amount of City investment. In five (5) years roughly $800,000 in tax revenue could be generated and by year twenty (20) a cumulative total of over $9 million in tax revenue is possible based on the developed buildout scenarios. For additional information, see Appendix 4. As part of the process, proformas were created for each housing type in order to examine the current market viability within the Sherman & Harrison tar- get area. It was determined that none of the housing products examined can be accomplished with the tra- ditional financing model. Based on this, we then ex- plored what needs to happen in order to “get to yes” rather than simply saying it does or does not work. Of scenarios, the duplex appears to be most viable. Viability of a housing type is determined based on the amount of variation from the traditional financial model that is required to make construction possible. While both the owner-occupied duplex and purely for rent duplex both perform relatively well, the own- er-occupied duplex has the benefit of lower operating expenses which improves its financial performance. Financial constraints are based on the proforma – including the baseline assumptions – and current market conditions. The examination of market viabil- ity helped identify the potential programs to assist with addressing the financial gap which are listed in the Neighborhood Strategy. Since the findings are based on market conditions within a specific geogra- phy – the Sherman & Harrison target area – it cannot be assumed that the findings will directly apply to other locations. Differing market conditions will result in different levels of viability and differing financial needs for the construction of the various housing types. For additional information on the proformas, see Appendix 3. While efforts will focus in the Sherman & Harrison tar- get area, it is anticipated that development will occur in other portions of the neighborhood, building off existing or future strengths and spreading outwards. NORTH