The SoNo Collection Norwalk, CT

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Irma Richard
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1 The SoNo Collection Norwalk, CT Norwalk Common Council Planning Committee

2 Table of Contents 1 Project Site 2 Requested Approvals 3 Updated Conceptual Renderings 4 Economic Impacts

3 1 Project Site

4 Site Location 4

5 2 Requested Approvals

6 Project Timeline 2013 GGP purchased the 12-acre site in November for $35 million 2014 Extensive outreach with residents, business owners, community leaders, and elected officials to develop a proposed plan 2015 City Joint Ad-Hoc Review Process and Concept Master Site Plan (CMSP), Land Disposition Agreement (LDA), Urban Renewal Plan (URP) Review and Approval by City and Redevelopment Agency 2016 Planning and Zoning approvals secured & OSTA permit issued October 2016 Planning and Zoning review and approval of project updates and signage guidelines 6

7 Requested Approvals GGP is requesting approval to construct the SoNo Collection with retail and public realm uses. In lieu of a third use on-site, GGP will pay $3.5 Million to the City of Norwalk. Norwalk Common Council Amend CMSP / LDA / URP Norwalk Redevelopment Agency Amend CMSP / LDA / URP Norwalk Planning and Zoning Modify zoning text and special permit approvals 7

8 Why the change? Current approvals for the SoNo Collection allow for retail, public realm, and 152 room hotel. Under the LDA, the hotel could be replaced with 60 to 350 residential units, or 85,000 to 625,000 square feet of office. After considerable research and analysis, GGP determined that none of these three options are economically feasible for the SoNo Collection. Hotel GGP has made significant efforts to date to bring a hotel to the project, marketing the hotel opportunity locally, regionally and nationally. Our attempts have not been successful and have led us to request this finding of infeasibility Extensive research confirms the hotel is not financially feasible. The research indicates that the revenue potential is inadequate to support the hotel development and construction costs Projected 4.4% return with $2.2M of income at $50M of cost. 49% of expected 9% market return Office Current office market conditions in Southwest Connecticut do not support the development of speculative office space in the Tower. The market for new office space in Norwalk remains flat, with almost no new building activity, little rent growth, and relatively high vacancy $35 PSF rent and $45.9M cost generates 4.29% return. 47% of expected 9.1% market return Residential Market rents are well below that required to justify the cost of construction of the Tower portion of this project Rents 10% above Class A average generate 3.3% return. 49% of expected 6.7% market return 8

Modified Proposed Program The SoNo Collection will continue

stores (300,000+/- SF in total) 80-100 small shop inline

(180,000+/- SF) Curated selection of food and beverage uses

including indoor/outdoor sculpture garden, rooftop SoNo

streetscape, potential museum and education space, and three

9 Modified Proposed Program The SoNo Collection will continue to contain: o o o o o Full Line Nordstrom and Bloomingdale s stores (300,000+/- SF in total) small shop inline retailers (343,000+/- SF) Large public common area (180,000+/- SF) Curated selection of food and beverage uses (Up to 6% of GLA) Over 87,000 square feet of Public Realm including indoor/outdoor sculpture garden, rooftop SoNo garden, exterior public plazas, enhanced West Avenue streetscape, potential museum and education space, and three interior courts RETAIL RESTAURANT INDOOR PUBLIC SPACES EDUCATION / CULTURAL PUBLIC REALM 9

10 Community Engagement Over 100 Meetings Civic Government Business Not For Profit Educational Cultural Religious Neighborhoods Coalition of Norwalk Neighborhood Associations SoNo Task Force Norwalk District B Residents Washington St. Restaurant Coalition Norwalk Chamber of Commerce Stepping Stones Museum for Children Lockwood Mathews Mansion Museum Norwalk Maritime Aquarium Norwalk Community College Fairfield County Community Foundation Macedonia Church Norwalk Arts Commission Carver Foundation Human Services Council of Mid-Fairfield Norwalk Housing Authority Norwalk Education Foundation Norwalk Seaport Association Keystone House Norwalk Hospital Norwalk Public Library Horizons National Norwalk Grassroots Tennis & Education Roodner Court / Washington Village Crystal Theatre ElderHouse Norwalk Senior Center 10

11 3 Updated Conceptual Renderings

12 Conceptual Rendering Updated 12

13 Conceptual Rendering Updated 13

14 4 Economic Impacts

15 Additional Commitments Remain in Place $3.5 Million payment to the City of Norwalk towards a Community Development Fund that will benefit the surrounding community $1,022,500 fixed payment to the City of Norwalk for necessary easements $550,000 payment to the City of Norwalk towards a circulator trolley system to get people around the corridor without having to use their cars 5% of the project dedicated to Public Realm space, this includes activated and programmable space for the public to enjoy Limit restaurants to 6% of leasable area. GGP intends to connect with and complement the existing restaurant and entertainment businesses in SoNo Upgrades to surrounding pedestrian walkways and bicycle trails, connecting to the Norwalk River Valley Trail, on-site bike share program and bike storage facilities A commitment to sustainable development 15

16 Jobs, Jobs, Jobs The project will create thousands of jobs during the 30 month construction phase alone. We are projecting approx. 1,745 construction jobs in Norwalk, employed for 3 years at an average salary of $86,500. Once operational, we expect the SoNo Collection to create approx. 2,485 permanent full time equivalent jobs within the state, with an average salary of $42,000. Salaries range from $37,000 to over $100,000 covering a whole variety of entry level, mid-level, and management level positions. GGP will prioritize Norwalk based and lower Fairfield County based Disadvantaged Business Enterprises (DBE) for bidding and performing construction. We shall use best efforts to have at least 10% of the total value of the cost of the project performed by DBE s. GGP has committed $250,000 to create a career training program for local residents, focusing on those in the most distressed areas of Norwalk. The training will be administered in partnership with Norwalk Community College and each participant who successfully finishes the training will receive certification by the College. The certification will be recognized by tenants and occupants of the center that need to fill the jobs that will be created onsite. 16

17 Construction Impacts The SoNo Collection will be a transformative project. With a total financial impact of almost $1 Billion, including multiplier effects, it will generate substantial and far reaching impacts to Norwalk and the State of Connecticut. Economic Output: One-time construction economic output (spending) will generate an impact of $773 million to the City and $967 million in the State. Employment: The Project will support 1,745 construction jobs in the City of Norwalk. In addition to construction jobs, supporting industries such as architecture, real estate, healthcare, and retail in the state will also benefit. Labor Income: Construction will generate $424 million in one-time labor income within the state, with the majority from high-wage construction jobs. Tax Revenues: Project construction will generate over $34.3 million in one-time fiscal impact to the City and State. This includes City building permit fees, State sales and use tax for construction materials, fixtures, furniture, equipment, and State personal income tax from direct and multiplier employment. Economic impact analysis provided by HR&A Advisors, Inc. 17

18 Ongoing Operating Impacts Sales Tax Revenues: The Project is projected to generate approximately $26.6 million in sales and personal income tax revenues to the State each year, equivalent to $299.6 million over 15 years in net present value terms. An Enterprise Zone agreement will bring $2.5 million in new real estate tax revenue to the City of Norwalk for 7 years, with $5 million in revenue per year thereafter. It will become the third largest taxpayer in the City after the Enterprise Zone has phased out. The total tax revenue generated to the City of Norwalk by the Project over 15 years is equivalent to $45.7 million ($2017) in net present value terms. Employment: Operations will support 2,485 FTE jobs, ranging from entry-level to management opportunities, of which 2,190 are expected to be in the City of Norwalk. Labor Income: Ongoing operations will generate $105 million in labor income within the state each year, in addition to benefits. Economic Output: Retail operations will generate $265 million in total economic output (spending) within the state each year, including labor income. Economic impact analysis provided by HR&A Advisors, Inc. 18

19 The SoNo Collection will continue to have substantial positive impacts to SoNo, the City of Norwalk, and State of Connecticut Enhance SoNo as a cultural and entertainment destination GGP s proposed program will attract additional visitors to the City and bolster existing businesses and attractions such as the Maritime Aquarium and the waterfront to create an even stronger destination. Generate spillover spending for SoNo restaurants and retailers The project will generate new visitors to the area, resulting in spillover spending for nearby retailers and restaurants. It will complement existing businesses given its limited food and beverage program and the upscale positioning of potential retail. Bridge the gap between Wall Street and SoNo The project will build upon the City s revitalization efforts along West Avenue. In combination with the Waypointe District, the Project will help stich together Wall Street and SoNo. Recapture retail spending leaking out of Connecticut Currently, shoppers seeking a major upscale retail destination must travel outside of Connecticut. The proposed destination will increase retail spending in Connecticut and help recapture a significant amount of the State s lost sales tax revenue. 19

20 The SoNo Collection Norwalk, CT

Draft CRA Plan Amendment. Community Redevelopment Agency Advisory Board September 23, CRA Plan Amendment

Draft CRA Plan Amendment. Community Redevelopment Agency Advisory Board September 23, CRA Plan Amendment Draft Community Redevelopment Agency Advisory Board September 23, 2013 1 Project Scope Feasibility Study Public Workshops/Stakeholder Interviews Market Study 2 Schedule to Date Feasibility Study Community