City of Delray Beach New Rules for Economic Development FCCMA Annual Conference
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1 City of Delray Beach New Rules for Economic Development FCCMA Annual Conference Presentation by Paul Dorling, AICP, Planning & Zoning Director Richard J. Reade, Sustainability Officer/Public Information Officer May 31, 2012
2 New Rules for Economic Development
3 New Rules for Economic Development
4 New Rules for Economic Development
5 New Rules for Economic Development Downtown
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7 before before
8 after
9 before
10 after
11 before
12 after
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18 New Rules for Economic Development Growth management s decentralized approach provides opportunities for locals to: Think outside the box Undertake local initiatives Implement local incentives Implement local creativity All without fear of State oversight
19 New Rules for Economic Development Delray seized this opportunity via a two fold approach: Regulatory incentives. followed by Financial incentives
20 New Rules for Economic Development Identified development area were infusion was needed and would result in the greatest municipal benefit: Four Corners (Overlay District) Congress Avenue (Delray Beach Innovation Corridor)
21 E-3 CANAL E-3 CANAL SOUTH MILITARY TRAIL S.W. 8TH AVE. S.W. 4TH AVE. SOUTH MILITARY TRAIL BARWICK ROAD HOMEWOOD BOULEVARD CONGRESS AVENUE CONGRESS SWINTON AVENUE SEACREST CITY OF DELRAY BEACH, FLORIDA GULF STREAM BLVD. L-30 CANAL F.E.C. R.R. HWY. A1A 906 C.S.X. R.R. LAKE IDA BOULEVARD FEDERAL 1 STATE ROAD LAKE IDA ROAD G. BUSH BLVD. AVE. LAKE IDA ROAD N.E. 4TH ST. N.W. 2ND ST. WATERWAY BLVD. 95 ATLANTIC AVENUE ATLANTIC 806 AVENUE S.W. 2ND ST. OCEAN FOUR CORNERS A1 A 906 LOWSON LINTON BOULEVARD BOULEVARD OLD GERMANTOWN INNOVATION CORRIDOR (MROC) L-38 CANAL ROAD C.S.X. R.R. 95 S.W. 10TH ST. S.W. 10TH AVE. LINDELL C-15 CANAL BLVD. LINTON F.E.C. R.R. BLVD. DIXIE HIGHWAY FEDERAL HIGHWAY 1 INTRACOASTAL STATE ROAD A1A N
22 E-3 CANAL E-3 CANAL SOUTH MILITARY TRAIL S.W. 8TH AVE. S.W. 4TH AVE. SOUTH MILITARY TRAIL BARWICK ROAD HOMEWOOD BOULEVARD CONGRESS AVENUE CONGRESS SWINTON AVENUE SEACREST CITY OF DELRAY BEACH, FLORIDA GULF STREAM BLVD. L-30 CANAL F.E.C. R.R. HWY. A1A 906 C.S.X. R.R. LAKE IDA BOULEVARD FEDERAL 1 STATE ROAD LAKE IDA ROAD G. BUSH BLVD. AVE. LAKE IDA ROAD N.E. 4TH ST. N.W. 2ND ST. WATERWAY BLVD. 95 ATLANTIC AVENUE ATLANTIC 806 AVENUE S.W. 2ND ST. OCEAN FOUR CORNERS A1 A 906 LOWSON LINTON BOULEVARD BOULEVARD OLD GERMANTOWN INNOVATION CORRIDOR (MROC) L-38 CANAL ROAD C.S.X. R.R. 95 S.W. 10TH ST. S.W. 10TH AVE. LINDELL C-15 CANAL BLVD. LINTON F.E.C. R.R. BLVD. DIXIE HIGHWAY FEDERAL HIGHWAY 1 INTRACOASTAL STATE ROAD A1A N
23 New Rules for Economic Development Two areas discussed by Florida Public officials Design Institute (Florida Atlantic University) Four Corners Overlay District Vision: Creation of high quality jobs Encourage mixed use development Create a signature identity for this area Congress Avenue Corridor Vision: Creation of high quality jobs Infusion of Class A office uses Transient oriented mix use development around Tri-Rail Station Mix of Commercial /office ground floor /residential above
24 New Rules for Economic Development Implementation: Four corners Left existing zoning designations in place...created an overlay district (new urban design principles ) Increased lot coverage (75% vs. 40%) Increased Height (60 vs. 48 ) Increased density (30 du/ac vs. 12 du/ac) (75%/25% mix) Shared parking Congress Avenue (Delray Beach Innovation Corridor) Creation of new FLUM designation CMU (Congress Mixed Use) and new Zoning district (MROC) Mixed Residential, Office, and Commercial District
25 Existing Conditions Old Office Uses/Storage
26 Existing Conditions Old Office Uses/Storage
27 Existing Conditions Old Office Uses/Storage
28 Existing Conditions Old Office Uses/Storage
29 Existing Conditions Old Housing in Need of Redevelopment
30 Existing Conditions Old Housing in Need of Redevelopment
31 Existing Conditions Old Housing in Need of Redevelopment
32 Existing Conditions Old Housing in Need of Redevelopment
33 Existing Conditions Old Housing in Need of Redevelopment
34 Existing Conditions Hardrives
35 Existing Conditions Hardrives
36 Existing Conditions Hardrives
37 Existing Conditions Hardrives
38 Existing Conditions Hardrives
39 Existing Conditions Vacant Property
40 Existing Conditions Existing Office in Corridor
41 Existing Conditions Existing Office in Corridor
42 Existing Conditions Existing Office in Corridor
43 Existing Conditions Existing Office in Corridor
44 Existing Conditions Existing Office in Corridor
45 Existing Conditions Existing Office in Corridor
46 Existing Conditions Existing Office in Corridor
47 Existing Conditions Existing Office in Corridor
48 Existing Conditions Existing Office in Corridor
49 Existing Conditions Existing Office in Corridor
50 Existing Conditions Existing Office in Corridor
51 Existing Conditions Existing Office in Corridor
52 Existing Conditions Existing Office in Corridor
53 Existing Conditions Existing Office in Corridor
54 Existing Conditions Tri-Rail Station
55 Existing Conditions Tri-Rail Station
56 Existing Conditions Tri-Rail Station Multimodal Connection
57 Delray Beach Innovation Corridor Land use focus Higher intensity mixed Use development Higher density residential development in proximity to the trirail station. Particular emphasis on Class A office Zoning focus Residential 50 du/ac of tri-rail stand alone Mixed 50 du/ac , 80%/20% floor area Mixed 40 du/ac - beyond 2500, 75%/25% floor area 20% workforce in all scenarios Allowed significant supplementary uses (support for office uses exercise, child care, dry cleaner etc.
58 Regulatory Incentives Include: Increases in densities 50/40 du/ac vs. 12 du/ac Increases in lot coverage 75% vs. 40% Increases in height 85 vs. 48 Decreased parking requirements (residential in proximity to Tri-Rail) Shared parking options
59 Changing Conditions New Development
60 Changing Conditions New Development
61 Changing Conditions New Development
62 Other General Corridor Incentives: Design new urban design principles Aggregation encouraged Regional Activity Center (RAC) development Processing changes (relief as part of master plan process) Branding the Corridor Other Citywide Regulatory Changes: Expedited permitting of development plans and permits Parking modifications (net vs gross)
63 CREATING A STRATEGIC MARKETING PLAN DELRAY BEACH INNOVATION CORRIDOR (CONGRESS AVENUE)
64 SCOPE & OBJECTIVES: Create a strategic marketing and branding plan that brings new economic development, jobs, and demand for real estate along Congress Avenue in Delray Beach. A real estate branding strategy that repositions key underutilized properties along Congress Avenue will transform this Corridor into a catalyst for new private investment.
65 SWOT ANALYSIS CONGRESS AVENUE CORRIDOR: Strengths Excellent access to I-95, ports, rail, airports, universities, and hospitals Real estate prices are generally lower than Boca and Palm Beach Delray Beach has a track record of success in redevelopment MROC zoning is perfect for the uses necessary to redevelop land on Congress and good utilities Boca leadership and BDB are ready to support a new Congress Ave strategy Opportunities Connecting to downtown Delray s success in a way that attracts new businesses to Congress Weaknesses Vacancy and status of IWA and lack of any market energy or excitement Certain properties diminish the potential uplift of the Corridor Lack of nearby food and retail services for office occupancy No competitive package of incentives and/or funding for users No sense of place along Congress Avenue that would help to draw new business Threats IWA continues to stay dormant and de-stabilizes the absorption of existing office space Strategic alliance with Boca for branding and demand uplift based on shared borders Continuing the MedUTech concept north of Boca along Congress into Delray Development of vacant commercial land now available right off I-95 on Congress Working with Delray Medical Center and FAU to attract new healthcare users to Congress Ave Numerous vacant land parcels available for sale with limited buyers and feasibility for years Boca and Palm Beaches markets have millions of SF of vacant space that competes with Delray Public schools are not well perceived and present challenges for attracting new residents Congress Avenue in Delray is left to market forces and remains stuck with no clear vision
66 INITIAL BRANDING DIRECTION: Technology, Research, Education, Aspiration, Talent Corporate Headquarters and Regional Offices Tourist and Destination Demand from I-95 New Food, Lifestyle, Retail & Leisure Uses Solar-Power & Green Technology - Powering the New Mix of Uses
67 INITIAL BRANDING DIRECTION: Reposition the IWA property (Formerly Office Depot World Headquarters) Main Street Entrance with Specialty Retail Uses/Restaurants Corporate/Regional Headquarters Office Technology/Educational Campuses - Adult, STEM and Children Multi-Family Units - FAU Med, Young Families & Professionals Park and Open Space for Community Use (Gazebo, Concerts) Model of Sustainability and Innovative Land Uses
68 DELRAY BEACH INNOVATION CORRIDOR LINTON BOULEVARD TO ATLANTIC AVENUE
69 DELRAY BEACH INNOVATION CORRIDOR US INTERSTATE 95 TO LINTON BOULEVARD
70 CONCEPTUAL PLANS DELRAY BEACH INNOVATION PARK Scenario 1 Scenario 2
71 CRITICAL INGREDIENTS FOR SUCCESS: A competitive financial incentive & economic development package for Business Development Board (BDB) Aesthetic improvements, infrastructure, CRA District and accelerated entitlements for new users IWA owners working with the City on the new strategic marketing and branding plan for redeveloping their property into the Delray Innovation Park A green trolley link and/or transit connection between Congress, the rail stations and Downtown Delray Creating a PR story and branding/marketing collaterals about the transformation of IWA property into Delray Innovation Park Partnering with Boca Raton and Boynton Beach along the Congress Avenue corridor to accelerate everyone s success
72 NEXT STEPS: Refine and polish the conceptual corridor plan and branding collaterals that capture the new mix of uses comprising the Delray Innovation Corridor Finalize the economic development incentive package and branding refinements to make the Delray Innovation Corridor credible Present the strategy and new brand to the City Commission, BDB, Chamber of Commerce, and key stakeholders to build excitement and support for the concept Fast-track the process for the IWA property redevelopment to be entitled for new uses and become the Delray Innovation Park Finalize the market awareness package for BDB including the Economic Development and Financial Incentives Plan for the Delray Innovation Corridor
73 Existing Economic Conditions Congress Avenue Corridor Statistics Assessed valuations have decreased more than $106 million over past 5 years: CONGRESS AVENUE ASSESSED VALUE No substantial corporate development over past 3 to 5 years Alta Congress Residential Project ~ only recent major development 369 apartments (including 74 workforce units) under construction Included within the Congress Park Office Park Close proximity to Tri-Rail Station CONGRESS AVENUE ASSESSED VALUE $376,770,522 $269,892,630
74 Existing Economic Conditions CRA Economic Development Incentives (Available only within CRA District) 6 new incentive programs established in 2010 & 2011 $2 million allocated towards economic development projects Nearly $1 million in incentives awarded: Large Projects: Approved - 2 new hotels & relocated law office Planned - several office buildings & 3 rd hotel Small Projects: Approved - various property renovations as well as new & expanding employers 175 new jobs created (projected) Over $20 million in new assessed valuations (projected)
75 Existing Economic Conditions Operating Without Citywide Economic Development Program Promote job creation Preserve existing jobs Increase property valuation ~ long term, tax base Improve business image and visibility of Delray Beach Need Direction on Economic Development Activities to Target Recruitment & Relocation ~ new businesses to Delray Beach Retention ~ keeping our long-standing companies from looking elsewhere Expansion ~ assisting businesses with growth & market expansion Support Start-Up & Second-Stage Companies ~ higher risk/reward Renovation & Redevelopment ~ improve aesthetic appeal of City business districts State & County Financial Incentives Limited availability due to lack of funds to support required local match Not fully utilizing available state & county incentives (i.e., State Urban Job Tax Credit Program)
76 Existing Economic Conditions Urban Job Tax Credit Program Up to $1,500 in state funding per job created within targeted areas and for specific industries (other qualifications also apply)
77 Economic Development Programs Review of Other Communities Delray Beach is not just competing with neighboring municipalities and surrounding counties, we are up against other parts of the state and the country in trying to attract/retain target industries and businesses. We reviewed (and should continuously review) what other successful communities are offering to attract/retain their targets (i.e., jobs, businesses, etc.) Conversations & meetings with municipalities considered to be aggressive in targeting economic development opportunities. Discovered leading practices & best practices
78 Citywide Economic Development Goals Goals & Strategies Continue to improve the perception that Delray Beach is business friendly and a viable corporate destination Level the playing field by matching economic development tools offered by locally & regionally competitive communities Grow sustainable & livable wage jobs Encourage new & retain existing entrepreneurs (i.e., startups) Increase Delray Beach tax base
79 Citywide Economic Development Strategies: Non-Fiscal Goals & Strategies Ongoing review of overall development & permitting processes (i.e., MROC zoning & expedited permitting) Create new Delray Beach Economic Development Action Team to work with corporate prospects Create new business visitation program for effective retention/expansion of local businesses Continuous improvement of web site and other related web sites in Delray Beach (City/Chamber/CRA/DDA) for consistent messaging Constructive & continued engagement with strategic partners Enterprise Florida & Florida Office of Economic Opportunity Business Development Board (BDB), Palm Beach County Economic Development Office & Economic Council of Palm Beach County Delray Beach CRA, DDA, DBMC & Chamber of Commerce South County neighboring municipalities
80 Citywide Economic Development Strategies - Fiscal Goals & Strategies Implement economic development financial incentives Delray Beach Economic Development Fund Step-up branding & marketing/promotion activity Create sustainable economic development systems Create CRA District along the Congress Avenue Corridor to improve the aesthetics and infrastructure necessary for a true corporate environment, support financial incentives and to fund marketing/promotion efforts Collaborate with state legislative delegation to create an Enterprise Zone to support the Delray Beach Innovation Corridor
81 Citywide Economic Development Incentives Recommendations
82 Recommendations 1. Adopt City Resolution #21-12 to provide local match for state and county incentive programs: Qualified Target Industry Refund Program (QTI) Governor s Quick Action Closing Fund Economic Development Transportation Fund Road Fund 2. Commit City s unrestricted reserve funds ($1 to $2 million) to support City incentives & local match for county and state incentives 3. Establish annual budget allocation for economic development activities: Grants & incentives smaller projects Citywide branding Citywide marketing/promotion
83 Recommendations 4. Develop grant/loan incentive programs to encourage good economic development. Program examples may include: Job Growth (business development) incentive grants/loans Extraordinary Opportunity/Alternative incentive program Ad-Valorem (property) Tax Exemptions and rebates Economic gardening (technical assistance) grants Workforce Development Assistance and Training grants Green grants/loans (PACE Property Assessed Clean Energy Program) Rent Subsidies 5. Request state legislative delegation to support City s effort to establish Enterprise Zone for Congress Avenue area 6. Authorize development of CRA district along Congress Avenue to support the Delray Beach Innovation Corridor
84 City of Delray Beach, Florida Web: : ww.twitter.com/citydelraybeach Paul Dorling, AICP Planning & Zoning Director dorling@mydelraybeach.com Richard J. Reade Sustainability Officer/PIO reade@mydelraybeach.com
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