Date post: | 07-Nov-2014 |
Category: |
Documents |
Upload: | robert-wilonsky |
View: | 14,804 times |
Download: | 1 times |
Ground Floor Activation Program
I. Downtown Dallas 360 Plan ‐ Main Street District Retail Activation Strategy In 2011, City Council adopted the Downtown Dallas 360 Area Plan funded by the Downtown Connection TIF District. The plan set forth a shared vision for Downtown’s future that provided implementation actions for achieving the vision. The plan is a long‐term, strategic guide to ensure Downtown Dallas is a vibrant urban center, by providing clear, targeted recommendations. The recommendations and concepts presented in the plan are intended to be considered when reviewing development, considering public investments and making development decisions. In conjunction with the Downtown Dallas 360 Plan, a Main Street District Retail Activation Strategy was completed. The strategy aims to create a contiguous downtown core that eliminates gaps in the pedestrian experience created by vacant buildings and ground level space and disjointed streetscape improvements. The Main Street District Retail Activation Strategy’s Tool Box provides techniques and methods for achieving a vibrant and active ground level experience for downtown residents, workers and visitors and will be used to guide the district’s Ground Floor Activation Program. II. Priority Areas (Geographic Focus)
III. Pop‐Up Retail
In an effort to activate vacant space and “clean up” derelict properties, the Main Street District Retail Activation Strategy calls for pop‐up art and retail uses. “Pop up” uses are defined as those that are temporary in nature and require only basic infrastructure to operate. The ultimate goal is to generate retail leasing activity by activating these storefronts with temporary uses. The pop up program will be applicable to properties within Zones A and B of the Main Street District Retail Activation Strategy.
The City of Dallas will create a coordinated pop up program that will market participating spaces to both temporary and permanent tenants. The program will be created under one umbrella brand with coordinated window signage that identifies the space as a part of the program, and contains information on who to contact for permanent leasing interest.
Participating building owners will be required to: • Provide space at no cost, including utilities, to tenants
• Provide space in “CO” condition (if space is not up to code, the landlord may be eligible for a White Box Grant)
• Provide a minimum three‐month agreement with an option to renew for one additional six‐month term if tenant is deemed successful and space is not permanently leased
• Provide repair and maintenance of the premise as it stands at the point of occupancy
Tenants will be required to: • Creatively merchandise and “light up” window frontage
• Activate the space with approved events
• Meet a minimum requirement of operating hours as set by the Retail Committee
• Vacate the premises within 15 days if a permanent lease is secured
• Finish out the space at their own cost, with no permanent changes to the location without landlord approval (this includes interior and exterior finish out)
• Maintain the interior and exterior of the property, providing basic janitorial maintenance including clean up and removal of all waste, to include garbage, refuse, rubbish and litter from the premises and the area within ten feet of the Property
• Seek approval from the landlord for exterior signage
• Provide insurance to the landlord
• Report sales and patronage on a quarterly basis to the City
IV. Ground Floor Activation Incentive Tool Box
One of the greatest leasing challenges facing the downtown core is the lack of contiguous lease ready space. Outdated and derelict facades create “holes” in the pedestrian experience moving from one retail or restaurant venue to another. Approximately 100,000 square feet of “vacant/available” space exists in zones A and B in the Main Street District today. This includes space that is in need of
improvement before a tenant can move in, but can be activated relatively quickly with white box improvements. The Retail Activation Strategy recommended incentive tools that could be used to activate the vacant ground floor space of the downtown core. The City will use a mixture of the incentives described below to activate vacant street level space with retail that attracts and serves downtown residents, workers, and visitors. The intent of the program is to provide financial assistance to owners of buildings with vacant ground floor space to:
Decrease the amount of vacant street level space within the downtown core Attract retail uses or services that increases diversity of downtown shopping options Encourage high‐quality interior build out of vacant ground floor space Stimulate private retail investment and property improvement Improve the appearance of downtown’s streetscape by activating vacant street‐level storefronts
Create new jobs Activate vacant spaces temporarily with “Pop‐Up” business
This program aims to generate permanent leasing activity by providing building owners with a “grant” to bring vacant ground floor space to “white box”, lease ready condition, improve the facade of existing buildings in disrepair, activate “blank walls” with shallow‐depth retail public art, and/or construction of outdoor dining or patios. Such improvements will also improve the pedestrian experience, filling in empty and dark “gaps” at the ground level, linking continuous active blocks with other vibrant spaces.
Incentive Tool Box
White Box Grant. Grant is available to building owners with vacant ground floor space to reimburse costs to bring the space to a “white box”, leasable condition. Generally acceptable improvements are those that can remain in the space after vacation by a tenant and be used by a future tenant in the same leased premises. Grant funds cannot be used for non‐fixed equipment of inventory. Improvements may include:
Electrical Repair/Upgrade HVAC/Mechanical Repair or Upgrades Fire Suppression Plumbing Dry Walls Feature Walls
Flooring Windows/Doors Lighting Attached Fixtures ADA Accessibility Improvements
The White Box Grant will reimburse eligible project costs over a two year period. The amount of the grant will be based on the size of the building and total cost of improvement project. Reimbursement will be up to $30.00 per square foot of vacant space or no more than 30% of total project costs, whichever is less. The program will not invest more in a project than the owner.
Façade/Storefront Renovation Grant. Grant is available for building owners to enhance the exterior of their buildings, particularly at the street level. Generally acceptable improvements are those that create
an active storefront, entrances and/or display windows. Façade lighting installation that adds visual interest to a façade/storefront is encouraged. For historic buildings, façade and storefronts should be restored to their original conditions but improved, where possible, to enliven the street. Improvements may include:
Exterior treatments including painting, murals, bricking
Repairs, replacement and installation of exterior doors, windows and trim
Structural improvements to the façade Lighting Improvements
Removal of elements that cover architectural details
Restoration of details on historically significant buildings
Awnings and signage, including installation costs
Blank wall activation The Façade/Storefront Renovation Grant reimburses 50% of total eligible project costs over a two year period, with a maximum grant amount of $30,000. Applicant must match grant amount on at least a one to one basis. The program will not invest more in a project than the owner. Outdoor Dining/Patio Grant. Grant is available for building owners to construct additional outdoor cafes and patios to further liven and animate the ground floor. Outdoor dining may occur on sidewalks, private property or public open spaces. Patios should serve as an extension of a restaurant space onto private or public spaces. This grant intends to encourage businesses and building owners to provide such experiences and/or improve existing conditions. The Façade/Storefront Renovation Grant reimburses 50% of total project costs over a two year period, with a maximum grant amount of $30,000. Applicant must match grant amount on at least a one to one basis. The program will not invest more in a project than the owner. Pegasus Plaza Café Grant. Grant provides funding to activate Pegasus Plaza, a key element of the main Street Retail Activation Strategy. As the geographic center of Downtown, this “Main and Main” corner should be a meeting point, gathering place and prime retail location. The addition of a café on the Plaza will transform its use. The Pegasus Plaza Café should activate the plaza with breakfast, lunch, dinner and late‐night food and beverage service. A private restaurant developer of the Pegasus Café will be eligible for a one‐time grant to reimburse up to 40% of project construction costs, not to exceed $150,000. A minimum 5‐year operation agreement is a requirement to receive grant funds. The Magnolia Hotel will receive first right of offer to develop the café. If they do not wish to move forward, a developer/operator will be secured by a Request for Proposals (RFP) to be issued by the City of Dallas with input from the Retail Committee. This RFP will spell out more specific operating guidelines including Dallas Park and Recreation Department approval of park property use, default terms, revenue contributions back to the Program and ownership of the structure.
Glass Boxes Grant. The Activation Strategy recommends “street retail” to complement existing ground level uses. This street retail may be housed in Glass Boxes as outlined in the Strategy. Two classifications of Glass Box retail are recommended, those in the public and private realms. Locations in the public realm are primarily identified in or near parks and plazas, such as Browder Street, Belo Garden and Pegasus Plaza, but may also be in the pedestrian right‐of‐way of sidewalks and other open areas where space allows. Privately developed kiosks may also be appropriate on private property such as the Comerica Plaza Tower and Third Rail Lofts. Glass Box users may sell: soft goods (i.e. art, apparel, accessories and gifts), as well as unique food service and/or “service” retail such as newsstands. Glass Box use, design and location are critically important. Glass Boxes in the public realm will be developed through an RFP process, while glass boxes on private property may be proposed directly by developers who intend to lease the space to tenants, or operators who show the ability and wherewithal to construct and operate the spaces. Preferred locations of glass boxes in the public realm include public open spaces, parks and plazas, areas adjacent to blank walls, parking garages, and DART stations. Glass Box Grants for private development will reimburse up to 40% of the boxes construction costs over a 2 year period with a maximum grant amount of $300,000, contingent upon continued operation of the structure. Each space may remain vacant for no more than 45 days either after construction or between tenant rotations. Any violation of the occupancy agreement will result in a monthly claw back of grant funds at $1,000/month. Minimum two year lease/occupancy agreements are required. The named owner is required to report sales on a quarterly basis to the City of Dallas. Glass Box Grants for construction in a public open space, parks or plazas will reimburse 100% of boxes construction cost over a 3 year period. The City of Dallas will negotiate lease and occupancy agreement and requirements with the prospective developer.
The first phase of Glass Box grants should be prioritized within Zone A, per the Main Street District Retail Activation Strategy. However, the Retail Committee may reserve the right to adjust these locations depending on developer interest. V. Eligibility
Grants are available to property owners recruiting new businesses to occupy vacant ground floor space of their downtown buildings. Expansions to an existing street level business to provide outdoor or patio dining is acceptable. Relocation of a business currently located downtown to another location downtown is not eligible for this program. National retailers, local establishments and independent operators are sought to achieve a well rounded tenant mix that caters to unmet consumer need and/or serve as destination establishments. Preferred businesses include, but are not limited to:
Book Store Apparel/Shoes & Other Soft Goods Flower Shop Sporting Goods Drug Stores Alteration Shops Gourmet Food, Specialty Grocery
Jewelry Store Specialty Boutique Restaurant Bakery Candy/Ice Cream/Yogurt Home Furnishings
Businesses not listed may be considered on a case‐by‐case basis. VI. Grant Funding
Grant awards are not “as of right”; they are determined on a case‐by‐case basis. Funds are dispersed only after all project improvements are completed, paid invoices for eligible project costs have been submitted and reviewed by the City, the is occupied and open for business and has met all requirements in the contractual agreement for the grant. The City reserves the right to recommend funding at a lesser amount than requested based on size of space, proposed improvements, budget and diversity of retail use. Applicants must comply with City of Dallas codes, permits, health regulations, etc. VII. Tool Box Funding Sources
The Ground Level Activation Program is funded by the City Center and Downtown Connection TIF Districts, with minimal contributions from the City’s Public/Private Partnership fund. The program supports specific goals of each TIF Districts’ adopted Project Plans related to street level activation of the downtown core.
City Center TIF District Goals • Encourage development of street‐front retail. • Provide TIF incentives to fund a ground floor activation program based on the recommendations
of the Downtown 360 Plan’s retail activation strategy. • Encourage development of new residential, retail, office, and mixed‐use developments • Activate 300,000 square feet of vacant ground floor and/or retail space in the downtown core.
Downtown Connection TIF District Goals • Improve pedestrian connections between and within the Uptown and Downtown areas. • Improve the appearance of the buildings, surface parking lots, undeveloped sites and parks and
open spaces within Downtown Connection area. • Support redevelopment of the existing building supply. • Improve key linkages between the DART light rail transit mall and other significant
Downtown and Uptown venues by extending streetscape improvements and encouraging street level pedestrian oriented development.
• Encourage the redevelopment of surface parking lots and undeveloped sites, especially those located on key pedestrian linkages, to create residential and retail opportunities and achieve critical mass goals within the district.
Listed below are the funding amounts contributed to this initiative by each TIF District. Downtown Connection TIF District Funds are in cash and are currently available for project reimbursement. City Center TIF District funds are collected annually. The District has allocated 15% of its annual increment collected for 5 years (2013 through 2018) and 10% of annual increment for the remaining term of the District (2019 through 2038) to the Ground Floor Activation Strategy Program. Downtown Connection TIF District $1,525,155 Retail Initiative line item in District Budget City Center TIF District $8,300,000 Ground Floor Activation line item in District Budget Total $8,825,155 VIII. Application
The applicant must meet with City staff prior to submitting an application. Grant applications will not be scheduled for review by the appropriate committee and board until all requested information is submitted and reviewed by City staff. Grant submission requirements:
Completed application (See Attachment A) Written statement of what the project will involve and why improvements are needed. Provide as much detail as possible, including what is changing or being replaced, type of new materials to be used, color, location on building, etc.
Color photographs of existing conditions: (1) ground level of building; and (2) surrounding ground level of adjacent buildings
Detailed description of prospective tenant and business for vacant space including the following: o Funding sources and uses for the project o Proposed timeline for project construction o Projected opening date o Floor plan/layout of physical space, including square footage and existing fixtures o Photographs, renderings of proposed improvements to the interior, including
design/layout/”feel” (photos of similar concepts, material samples, etc) Architectural drawings and/or renderings of the improvements associated with the project Detailed proposal from a licensed contractor reflecting work to be performed and costs Copy of lease for the vacant ground floor space (may be in draft form at time of application, but a copy of the executed lease must be submitted for reimbursement)
IX. Review Process
Review and consideration of a grant application is a two step process. A Retail Committee comprised of private sector individuals (downtown stakeholders), Downtown Dallas Incorporated (DDI) and City of Dallas staff. DDI’s representative and City staff will serve in a non‐voting advisory and administrative capacity. The Retail Committee will review grant applications and make a recommendation of approval or denial to the TIF Boards. The City Center and Downtown Connection TIF District’s Board of Directors will make the final decision on grant funding for proposed projects. Once a grant is approved the applicant has up to six (6) months to begin construction. Once construction has started, the applicant has one (1) year to complete project and open for business. If the business has not opened at the end of the one year period, the applicant will be notified in writing that the grant will lapse and the agreement will be terminated. If an approved project is nearing the 6 month to begin construction or one year to open requirements, the applicant may request an extension. One extension may be granted at the discretion of the TIF Boards. Any expenditure incurred for an approved, but not completed project will not be reimbursed.