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HomeMy WebLinkAbout2012-3468 - Ordinance - 12/13/2012ORDINANCE N0. AN ORDINANCE DESIGNATING THE EASTERN PORTION OF THE COLLEGE STATION MS[)KC/\L DISTRICT AS REINVESTMENT ZONE NO. 19. CITY OF COLLEGE 8T/\TK)N CB%A8, ENUMERATING THE QUALIFYING CRITERIA, ADOPTING & PRELIMINARY DEVELOPMENT AND FINANCING PLAN, ESTABLISHING & BOARD OFDIRECTORS FOR SUCH ZONE, ���U 8[DE� /��\TT��� ����[I�G TD���TO� PROVIDING FOR A ` SEVEKAB/L\TY CLAUSE AND f\NOPEN MEETINGS CLAUSE. WHEREAS, the City's 2009 Comprehensive Plan identified the general area around State Highway 6 and Rock Prairie Road ns one ofseveral unique districts located within the City; WHEREAS, in 2011 the City partnered with the College Station Medical Center and other stakeholders for the creation of a Medical District to act as a focused healthcare and wellness district within the City; WHEREAS, City Council appointed u Medical Corridor Advisory Committee to work with staff and a consultant temnbu complete un early plan for the Medical District; YV|{EQ[A3, un October |l, 2012 City Council adopted a Medical District Master Plan establishing guiding principles for the development of approximately 1 acres in south College Station to accommodate medical facilities, walkable village centers, oornnoecuio| epuoo and avuriety of residential unit types, all in close proximity to parks, open space, and trails; WHEREAS, the k3uaker Plan amended the Pntnro Land Use and Character map in the City's Comprehensive Plan, as wel|as an alteration to the City's Thoroughfare Man and Thoroughfare Context maps, additional trails have been added to the Proposed Pedestrian yuciUdeu map in the Bicycle, Pedestrian, and Grecnvvayo Master Plan, and the City's VVu1cr Master P|uo Proposed Pedestrian Facilities map, and 9rnpuxod Bicycle Facilities map will be amended in rcmpooyc to changed thoroughfare alignments; WHEREAS, staff created a Medical District Master Plan Implementation Report to recognize the infrastructure needs over the life of the Medical District Master Plan, as well as to provide cydooutcd costs associated with the infrastructure; WHEREAS, the Implementation Report identifies uTux Increment Reinvestment Zone aaafunding source for some of the needed infrastructure in the &1odiou| District by capturing taxes paid on the inoronncntu| ioun:uau in property values in the area um properties develop; WHEREAS, on December 6, 2012, notice o[apublic hearing to be held on December 13, 2012 was published ln the Bryan-College Station Eagle; WHEREAS, a public hearing was held before the College Station City Council on December 13, 2012, at 7:00 p.m. ut the regular meeting of the Council; WHEREAS, the City Council at such hearing invited any interested person to appear and contend for or against the creation of the reinvestment zone, the boundaries of the proposed rcinveaUurm{ zone, whether all oz part ofthe territory, which is described by boundary survey uXuohod hereto as QIr6l6lk "A" and depicted iu the diagram attached hereto asExhibit ''B'", should be included in such proposed reinvestment zone, the concept of tax increment financing; WHEREAS, all owners of property located within the proposed reinvestment zone and all other taxing units and other iuteceakx\ persons were given the nppmrkuohv ed aoob ou6Uo hearing to protest tile �' ,' creation of the proposed reinvestment zone or the inclusion of their property in such reinvestment zone; WHEREAS, the City staff presented the preliminary prcject and financing p|oo for the proposed reinvestment zone attached hereto um Exhibit "C";and WHEREAS, the proponents of tile reinvestment zone offered evidence, both oral and documentary, in favor of the foregoing matters related tothe creation of the reinvestment zone; NOW, THEREFORE, BElT ORDAINED bv the City Council o[ the City of College Station, Texas, \U*: The facts and recitations contained in the preamble of this ordinance are hereby found and declared to bu true and correct. The City after such hearing and having heard such evidence and testimony and considering the preliminary project und financing plan, has made the following findings and deteoni nation based upon the evidence and testimony presented to i{: A. That the public hearing on adoption of the reinvestment zone has been properly called, held and conducted, and that notice of such hearing has been published as required by law. B. That the City has jurisdiction to hold and conduct this public hearing on the creation of tile proposed reinvestment zone pursuant to the TAX INCREMENT FINANCING ACT. C. That creation of the proposed zone with boundaries as described in Exhibits "A" and "B" will result in benefits to the City, its residents and property owners, and to the property, residents and property owners in the reinvestment zone. D. That the reinvestment zone as described in Exhibit "A" and "B" ineets the criteria for the creation of a reinvestment zone as set forth in the TAX INCREMENT FINANCING ACT in that: (l) kimucontiguous geographic area located wholly within the corporate limits of the City. (2) That the area is predominantly uodtrproducdve and underdeveloped and substantially impairs oo arrests the sound growth of the municipality. (]) That development of the area would not occur in the foreseeable future solely through private investment. (4) The total appraised value of all taxable ncu\ property in the zone according to the most ,coeot appraisal no\\n of the City, together with the total appraised value of the taxable real property and all other taxing existing reinvestment zones within the City, according to the most recent appraisal rolls nf the City, does not exceed fifty percent (5U96)ofthe current total appraised value of the taxable real property in the City. (j) Improvements in the reinvestment zone will enhance significantly the value ufall taxable real property io the reinvestment zone. (6} That preliminary project financing have b��o and are attached . . r'', developed beretoas Exhibit "C" Such prelimi pro ject and financi plans will bc the bas for the master plan for the final project and financing plan for the reinvestment zone and abuU assist the staff and board of directors in implementing a muoocmsfb| reinvestment (7) That the following Council Members were present and considered the ordinance on December 13, 2012. Nancy Berry Blanche Brick Jess Fields Karl Mooney John Nichols Julie Schultz JumcmBcnhun/ That the City hereby creates u reinvestment zone over the area described by the boundary survey in lKz&i8it "A" attached hereto and such reinvestment zone sha be based oothe preliminary project uud Oouooiug plans. This zone mbu\| hereafter be identified as Reinvestment Zone No. 18, City of College Station, Texas (the "Zone"). [V. The Board of Directors for the Zone shall consist of five (5) member directors. The City Counc ufthe City of College Station shall appoint four (4) members who shall meet the eligibility requirements as set fhUb in the Act to serve on the Board of Directors. The Brazos County Conurnivaioocra Court ohu|) appoint one (l) member who shall meet the eligibility requirements as se( forth io the Act tu serve as a member of the Board ofDirectors. The Brazos County Commissioners Court member, and two (2) mcnobum appointed by the City of College Station, shall serve an initial two (2) year term while the other two (2) appointed by the City of College Station shall serve initial one (l) year terms. All subsequent appointments will he made for two (2) staggered 1eona or until a successor director may hc appointed thereafter. The City Council obu|| designate one (l) nmenuhec to serve as [baionao of the Board nf Directors for the year ending December 3 1, 2013, and each year thereafter, and authorizes the Board to elect from its members a Vice-Chuirnoan and other officers as it mecu fit. The Board yba|} ro|uio all powers provided it iu the Act. The Board of Directors shall make recommendations tothe City Council concerning the administration of the Zuoo and sha prepare and cause to be prepared and oJnn1 a Project Plan based upon the preliminary project and financing plan for the Zone and nouei submit such plans to the City Council for its review and approval. The City hereby delegates to the I3oo,d of Directors all powers necessary to prepare and irop|enueo1 such Project Plan, subject to approval by the City Council, including the power to direct the staff and employ omneohonis to umyiat in the preparation of the Project Plan and in the issuance of certificates ufobligations. V. That operation of the Zone shall commence immediately following tile passage of this ordinance, and that termination of the operation of the Zone shall occur upon the collection of the levies of September, 2032 (due in FY 2032 -203 or at a time designated by subsequent ordinance or at such time subsequent ho the issuance nf certificates of obligation asd| 'uc�ooebuod�cdi�oa/onofob\i ioa, , , " and the interest thereon, have been paid in full. \/[ That the tax increment base for the Zone iu the total value of all taxable real property iothe reinvestment zone aaof January |,20l2. VD. That there is hereby created and established u Tax Increment Fund for the Zone which may be divided into such sub-accounts as may be authorized by subsequent ordinances into which all tax increments are k`hedeposited. The Tax Increment Fund and any sub-accounts are to be maintained at the depository bank nfthe City and ohu|\ be secured in the manner prescribed by law for Texas cities. The tax increments shall equal the arnount of property taxes levied for a year on the captured and appraised value, that is, the amount by which the current appraised value of all taxable real property located in the Zone exceeds its tax increment base less any other funds which are tobe a||ocn1edfrnrn the tax increments pursuant |o the Act. All revenues from the sale ofany tax increment finance bonds and notes hereafter issued by the City may be deposited into such fund or sub-account from which money will be disbursed to pay project ouatsfbcthe Zone orto satisfy the claims of holders of tax increment bonds or notes issued for the Zone. VtU, That i[ any sect paragraph, clause, or provision of this ordinance sha for any reason he held tnhu invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance. |}(� That kiahereby found, determined and declared that uaufficient written notice of the date hour, place and sub of the meeting of the City Council of the City of College Station at which this ordinance was adopted was poakx] at place convenient and readily accessible at all times 0othe general public at the City Hall o[ the City ofCollege Station for the time required by law preceding this meeting, as required by the Open Meetings Act, and that this meeting has been open to the public as required by law, at all times during which this ordinance and the subject matter hereon has been presented, discussed, considered and finally acted upon. The City Council of the City ofCollege Station further ratifies, approves and confirms such written notice and the contents and posting thereof. a That the contents of the notice of public hearing, which hearing was held before the City Council of the City ofCollege Station on Deoenzhcc 13, 2012, and the publication of said notice, ia hereby ratified, approved and confirmed. � yASS£D,/\[)DPTBDuud/\PPK()V6Doothisthcl] day afDecember, 2012. ATTF,ST: Sherry Masl6um, City Secretary APPROVED: F174 IZI 24 Carla Robinson', City Attorney CITY OF COLLEGE STATION Nancy Berry, Mayor vsff• Joe Orr, Inc. Surveyors & Engineers 2167 Post Oak Circle College Station, Texas 77845 (979) 693-2777 Tax Increment Reinvestment Zone 19 1301.76 acres (net) College Station, Texas December 2012 Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (60 feet south of surveyed centerline) and the east boundary of Block 7 of the Scott & White Healthcare Subdivision (vol. 10179, pg. 50), being the northeast comer of Lot 1, Block 7 ♦ said subdivision, and from where City of College Station GPS control monument no. f# 7016.5 feet. Thence N 2 ' 42' 34" W — 120.04 feet along an extension of the said east boundary line of Block 7, to a point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (59.0 feet north of the surveyed centerline) as follows: S 86 27' 34" E — 1771.13 feet, S 85' 02' 05" E — 1228.54 feet and S 84 23' 02" E —10.29 feet to a right-of-way offset point in the common line of the Dale and Reba Conrad 26.25 acre tract (vol. 460, pg. 505) and the Flying Ace Ranch, Ltd. 26.245 acre tract (vol, 3767, pg. 237); Thence S 24' 22' 52" W — 1.58 feet along said common tract line to another offset point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (57.5 feet north of the surveyed centerline) as follows: S 84 23' 02" E — 606.93 feet, S 82 02' 02" E — 1453.40 feet, S 77 01' 02" E — 1052.59 feet, S 76 28' 02" E — 2876.58 feet, S 69' 53' 32" E - 2812.30 feet to the beginning of a tangent curve to the right with a radius of 1057.50 feet, along said curve through a central angle of 11 43' 34" to a point in the old northeast prescriptive right-of-way fenceline, and S 69 17' 50" E — 269.35 feet along said fenceline to the southeast line of the Hartzell Elkins 35.37 acre tract (vol. 1920, pg. 323) and northwest line of William D. Fitch Parkway; TIRZ 19 Page 1 of 4 Thence across Rock Prairie Road East as follows: S 42 32' 30" W - 32.00 feet to the south comer of said Elkins tract, called to be in the centerline of the road, S 19' 52' 04" W - 36.01 feet to the east comer of the College Station Independent School District 44.535 acre tract (vol. 8413, pg. 291) at the old right-of-way fence comer post, and S 41 ' 51' 48" W - 170.08 feet along the southeast line of said C.S.I.S.D. tract and northwest line of Fitch Parkway to its intersection with the south right- of-way chamfer of Rock Prairie Road East; Thence S 41' 51' 48" W - 1842.68 feet along said common tract line to its southwest end in a northeast line of the 11N.S.W.M.A. 179.99 acre Tract 1; Thence S 48' 05' 47' E - 941.57 feet, along the common line of said Tract I and the C.S.I.S.D. tract to their common comer in the northwest right-of-way of William D. Fitch Parkway; Thence S 41 51' 48" W - 1425.30 feet, along said northwest right-of-way line, to the south comer of the said 11N.S.W.1vl.A. Tract 1; Thence S 4 1 ' 5 1' 48" W - 1066.80 feet, continuing along said northwest right-of-way line of William D. Fitch Parkway, to the east common comer • the City • College Station 140.29 acre Tract One (vol. 3900, pg. 188) and Spring Meadows Phase I (vol. 5106, pg. 284); Thence along the southern boundaries • multiple City • College Station tracts (vol. 3900, pgs. 188 & 223, vol. 5056, pg. 43) as follows: N 73 00'00" W - 496.40 feet, S 51' 00' 00" W - 175.05 feet, N 76' 00' 00" W - 200.00 feet, S 41 51'44" W - 51.88 feet, N 70' 46' 00" W - 157.10 feet, S 41' 51'44" W - 262.67 feet, N 82 55' 43" W - 700.87 feet S 41 52' 26 W - 650.00, N 48 08' 02" W - 412.47 feet, S 66 47' 54" W - 827.57 feet, N 47' 45' 25" W - 129.90 feet, S 28' 59' 29" W - 2.01 feet, S 41 48' 43 W - 336.13 feet, S 48 45' 08" E - 440.00 feet and S 53 00'00 W - 1304.90 feet to the northeast right-of-way line of State Highway no. 6; Thence along the northeast right-of-way lines of said highway as follows: N 49 25' 00" W - 438.00 feet, N 55' 07' 38" W - 201.00 feet, N 49 25' 00" W - 751.78 feet to the west comer of the City of College Station 36.9 acre tract (vol. 4329, pg. 134), and N 49 25' 00" W - 1025.93 feet to the south corner of Barron Park Subdivision (vol. 939, pg. 209); TIRZ 19 Page 2 of 4 Thence along the southeast, northeast and northwest lines of Lots I and 2 of said Barron Park Subdivision as follows: S 41 09' 46" E - 1353.16 feet, N 49' 12' 46" W - 88.68 feet to the south corner of the City of College Station 100.64 acre tract (vol. 6927, pg. 226), N 54' 07' 24" W - 29 1.11 feet, N 64 27' 21" W - 117.03 feet, N 54" 53' 54" W - 24.95 feet N 53' 19' 32" W - 113.87 feet, N 49 26' 59" W - 190.11 feet and S 41' 09' 38" W - 1286.04 feet to the common comer of said Lot 2 and Lot 3 in the northeast right-of-way line of State Highway no. • Thence along the said northeast right-of-way lines of said highway as follows: N 47 46' 18" W - 537.86 feet to the southwest common comer of Lot 3 of said BarTon P Subdivision and that City of College Station 46.60 acre tract (vol. 33 10, pg. 32 1), N 47' 4-6] 48" W - 65.34 feet, N 55 07' 37" W - 201.00 feet, N 49 25' 00" W - 600.00 feet and N 44• 08' 33" W - 147.79 feet to the southwest common comer of said 46.60 acre tract an the Barker Subdivision (vol. 5101, pg. 182); Thence N 38° 5 OT' E - 279.95 feet along the southeast line of said Barker Subdivision to its east comer; Thence N 47' 42' 16" W - 1053.70 feet along the northeast line of said Barker Subdivision and continuing along the northeast line of Cooper's Subdivision (vol. 4708, pg. 230) to its north corner, also being the east corner of the Harley Subdivision (vol. 3961, pg. 236) and the south corner of that IHD Properties, LLC 2.77 acre Tract One (vol. 10144, pg. 203); Thence along the south, east and north lines of said IHD Properties tract as follows: 175.00 feet, N 47 42' 56 W - 638.83 feet and S 72 19' 02" W - 202.14 feet to the northeast line of said Harley Subdivision and a southwest line of that M.D. Wheeler, Ltd. 71.52 acre Tract Two (vol. 3007, pg. Thence along the southwest lines of said Wheeler Tract Two and continuing along the southeast lines of the Wheeler 10.01 acre Tract One as follows: N 47 42' 33" W - 177.08 feet, N 46 46' 09" W - 304.24 feet, S 21 27' 46" W - 145.09 feet and S 41' 43' 32" W - 194.25 feet, returning to the northeast right-of-way line of State Highway no. 6; Thence along the said highway northeast right-of-way lines as follows: N 42 27' 25" W - 105.18 feet, N 36' 45' 17" W - 383.87 feet, N 27 43' 31" W - 192.30 feet and N 34' 27' 26" W - 55.00 feet to the southeast line of Block 4 of the said Scott & White Healthcare Subdivision; Thence along the east boundary lines of said Scott & White subdivision as follows: N 41 15' 39" E - 1224.44 feet, N 47 37' 11" W - 128.13 feet, N 50 49' 32 E - 930.60 feet and N 2' 42' 34" W - 1023.83 feet to the Point of Beginning and containing 1308.51 acres of land more or less. TIRZ 19 Page 3 of 4 Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (57.5 feet south of the surveyed centerline) and the west line of Lot 1 of Rock Prairie Baptist Church (vol. 7312, pg. 207), from where City of College Station GP S control monument no. 9 bears S 78' 01' 24" E — 3240.0 feet. Thence S 82' 02' 02" E — 414.05 feet along said south right-of-way line, parallel and 7.50 feet south of the north line of said Lot 1, to its intersection with the east line of said Lot 1; Thence S 20* 22' 54" E — 600.82 feet along the east line of Lot I to its southeast comer; Thence N 7" 57' 58" E — 528.77 feet along the west line of Lot 1 to the Point of Beginning and containing 6.76 acres of land more or less. Leaving a net acreage for this described tract of 1301.76 acres more or less. Bearings are Texas State Plane, NAD-83(CORS) datum, based on City of College Station GPS control points and GPS observations. Volume and page numbers cited refer to the Brazos County public rMec S. No monuments were set for this survey and found monuments are not cited. This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground survey and is not to be used to convey or eAq.Nish intL,-rests in real vrovertir exce those rights and interests itw,>lied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared, TIRZ 19 Page 4 of 4 XITITMUO-1 Scott & White Healthcare Subdivision 10179/50 Control Reference: Point -of- Beginning (p'0JEi) t o Cps monument no' 9 S 82'02'35"E - 7016.5' Rice 3636/65 3 87/1 "14 X 71113' JOE OP-R INC. SURVEYORS di ENGINEERS C'a" a - ER Not a E calslion Tract Poin p. j 216 7 Post Oak Cilld. are T .... State Piano, NAD-83(CORS) datum, based an Bearings City of CS GPS -html points and CPS .1ba-ti.a.. (P.O.B,) to CPS an S 78 °07'24"E - 3240.0' I g' C"ll-9a Stealth. Texas 77845 f9791693-2777 joa-uls-re, _,_ F <3 This document was prepared order 22 TAC §663.21, does not Conrad ,9 460 376 05 fiy, Ace R anch -h Thil .. I./Y/ X., reflect the results of an on the ground survey, and is not to be ..ad to a.ay.y or establish interests in real property �a tho rits and intere imied esblish b f se or g r s o ts f the ly ta of the ed o_a I th pl an nd- NO 2 '� 02 Cot, 'e r ke Po aaadivi., an for which it was prepared. 3, 6,9 82�02 L35 N 38 °51'07"E- 279.95' L 69'53*3 W - 551.37' ' ' L36 N 42'17'04 4$ No monuments were set for this suey and found monuments su rvey are not cited on this reference map. 11 S 51 °00'00 "W - 1 75.05' Olson / /I / L39 N 46°46'09 304 L 1 5 41 °51'44 "W - 51. / I tider< L16 N 70'46'OCr W- 15 1 0' - 4 L41 S 41 94 ' 25 L17 5 41 L42 N 42 °27'25 "W - 1 05.18' '8 2828 g8' Old- L19 N 4745'25'W-129,90' L44 N 2 7 ° "W - 192.30' L20 S 28'59'29"W-2.0I' L45 N 34 L21 S 41'48'4sW-336.13' / Carl) / / L22 S 48-45 06 E- 440.00' 6 Johnson Johnson/ 69, Lt. S 82'02'027E-414,05' L2 N 55°07'38"W-201.00' , 81 L25 N 49 °12'46 "W - 88.68' 1-3x N 82-02'02"W-699.33' L26 N 54 °07'24 "W - 291.1 ! L4. N 7'5758"E-528.77' J HO Q a- < LINE TABLE \__/ '/" '- -- - -1 N 2°42'34"W- 120.04' L27 N 64°27'21"W-117,03 L2 S 84 - 2302"E-1 54°53'54"W- 0�29' 24.95' L28 N S35CW-24.95' L3 S 24 °22'52 "W - 1.58' L29 N 53 °19' "W - 113.87' L4 S 69°17'50"E-269.35' L30 N 49 °26'59 "W - 190.11' L5 S 42°32'30" 32.00' L31 N 47°4 "W - 537.86' L6 S 1 9*52 be W- 36.01' L3 2 N 47-46 ' 4Er'W-65,34* L7 S 41 °51'48 "W - 170. L33 N 55 °07 '37"W- 20 1.00' L8 N 5°38'11 " - 67.56' L34 N 44 °08'33"W- 147.79' L9 N 53 °08'1 1 12.88' L35 N 38 °51'07"E- 279.95' L 69'53*3 W - 551.37' ' ' L36 N 42'17'04 � 0 L2 N 73 °00' "W - 49 37 S 72 L '19 11 S 51 °00'00 "W - 1 75.05' L38 N 4 7 ° 42'33"W- 177.0 L14 76-00'00!'W-200.00' N L39 N 46°46'09 304 L 1 5 41 °51'44 "W - 51. L40 S 21 °27'46 "W - 145.09' : L16 N 70'46'OCr W- 15 1 0' - 4 L41 S 41 94 ' 25 L17 5 41 L42 N 42 °27'25 "W - 1 05.18' '8 L18 N 48'08'02"W-412.47' L43 N 36° " - 383.87' L19 N 4745'25'W-129,90' L44 N 2 7 ° "W - 192.30' L20 S 28'59'29"W-2.0I' L45 N 34 L21 S 41'48'4sW-336.13' L46 N 47 °37'1 "W - 128.13' L22 S 48-45 06 E- 440.00' L23 N 49'25'00 'W-438J00' Lt. S 82'02'027E-414,05' L2 N 55°07'38"W-201.00' -2x S 20'22'54!'E-600.82' L25 N 49 °12'46 "W - 88.68' 1-3x N 82-02'02"W-699.33' L26 N 54 °07'24 "W - 291.1 ! L4. N 7'5758"E-528.77' XMIOMM City of College Station Tax Increment Reinvestment Zone Number lg Preliminary Project Plan and Preliminary Financing Plan 7*2rJ-=- Executive Summary 3 Tax Increment Financing 5 Tax Increment Reinvestment Zone Number 19 B Priority Projects and Costs 7 Benefits to Taxing Jurisdictions 9 Statutory Requirements for h final Project Plan and Financing O Proiect Plan Existing Conditions and Proposed Improvements 2 Proposed Changes of | rd �� ��8 List of Nonproject Costs NO, 19 Method of � Q��o| ' 2O Financing Plan List of Project Costs 21 Statement f b| k/ �� Economic Feasib.1,1ity Study 23 d 24 ap Time When Co r e n 25 Financing Met u rc�s of Revenue 25 eMLyin the Zone 28 in Each Year nfExistence 29 30 Armen AIN E s I I Z Number 19 Project Costs 32 Es rna Z Number 19Revenue 53 TI um 19 Legal Description 34 Medical District Master Plan —[hapters 3 &4 39 4 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Executive Summary In 2011 the City of College Station partnered with the College Station Medical Center (The Med) and other stakeholders in the creation of a Medical District to serve as a focused healthcare and wellness district within the City. The Medical District focuses on the general area around State Highway 6 and Rock Prairie Road, and includes The K4ed and the future Scott & White Hospital, both along Rock Prairie Road. The City's consulting team, led by SchrickeL Rollins and Associates, Inc. Council appointed Advisory Committee consisting of various stakeholders, community. The Advisory Committee, consultant team, and staff c draft plan for the Medical District in late 2011 and the results were of the City Council and the Advisory Committee. Staff then c use and transportation components of the Master Plan,Of District to include properties further tnthe south SOO Adopted October I1,2Q12,the Medical Disthct",�ast |an0���an Comprehensive Plan, altering the Future La Plan, and Thoroughfare Context map. In City's Water Master Plan, d will also need tobeamended4h con I io| been added 0o the P Greenvvays Master Plan to 9124 with a City 'ugnnuzrne vork on the 6 meeting imendment to the City's r m ap' the City Thoroughfare J, ies�, Proposed Bicycle Facilities maps �h theliftw thoroughfares. Additional trails have 4 h es map in the Bicycle, Pedestrian, and , �e community envisioned by the Medical District � aster Pi An ImplementatiooRe y City staff to accompany the Master Plan. The Report T u n t, n ital expenditures needed for the success of the Medical District."T Wort re J mended the pursuance of the creation of Municipal Management Districts aR"x Incre ment Reinvestment Zones (TIRZ) as the two most appropriate tools to facilitate the i6i0ementation of the Medical District. Prior to the creation of any TlRZ the City must develop a Preliminary Financing Plan. A Preliminary Project Plan and the Preliminary Financing Plan identify the proposed projects, and demonstrate the financing method and expected increment for the Zone. 3 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan This document serves as the Preliminary Project Plan and Preliminary Financing Plan for the Tax Increment Reinvestment Zone Number 19' City ofCollege Station, as required by Chapter 3I1 of the Texas Tax Code. In addition to implementing the Medical District, the purpose of the Zone, in conjunction with a Municipal Management District, is to provide an opportunity to further diversify the economic base and enhance the overall quality oflife for all College Station residents. The Zone is to finance public improvements related to construction of roadways drainage water, sanita sewer, storm sewer, mrernes broadband, trails, greenvvays and open spages to support development of medical uses, oononnerda| activity, single family and multi- family units in the City ofCollege Station Medical District. 0�� The owners of real property in the Zone will advance funds cert ,, -tn t costs arid pftc reimbursed from tax increment revenues of the Zone a,, pro id dilj"`­'- - �pa r 6 reimbursement agreement and other documentation between the ddy" effdb'p�"' The City will fund other projects and a portion of those costs wi be reird rs one. In accordance with Section 311.010(h) Zurle's board of directors will develop and submit for City Council ap he public purpose of developing or expanding transportation se,rV and open space infrastet"ttture W. endftrage ical activity, other business and commercial NO activity and residential devi4 11711", 4? 9_ In addition, a Munici t " is proposed to be created through the Texas Legislature with b n ri r B\contiguous to the Zone proposed in this Plan. A Munic�p "' ana4 ent trict sp cial district created for the purpose of promoting, ent qqm AN d e taining employment, commerce, economic development, and g6' era I p 66, 1 i c welfare within a defined area. Its overall purpose is to supplement city The managemen'"istrict will be funded by an assessment and ad valorem tax on property within its boundaries to provide public projects and services such as landscaping, lighting, s|gnoQe, streets and walkways, drainages, solid waste, water, wastewater, inte/netbmnadband, parks, parking facilities, transit systems, works of art, economic development and others. El Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and ^ PpeUminoryFinancing Plan The Texas Constitution and multiple State statutes identify the role of economic development bv both the State and its municipalities asa public purpose. While recognizing there isnVsingle strategy, po||q\ or program for economic development, the Texas Legislature has created a vast array of tools that local governments have at their disposal. The objective of these tools is to not only encourage development and diversification of the Texas economy, but to simultaneously enhance the participating community's overa|l quality of life. Such available tools were carefully evaluated in order to determine how best to implementtl6e College Station Medical District from both an administrative and financial perspe I ion in tax increment financing through the creation of Tax Increment Rei one such tool. According to the Texas Comptroller's Biennial Report of Tax . .... .. F'i" g Zone R gistry, as of December 2010, there were 172 reported tax incre i6nes in Texas. Tax ntrei increment financing is used to provide Iarg%Fapitq r ` improvements, or other hard-costs within a created zone. These, coM-_i--1are increase, or tax increment, of future ad valorem tax revenue Within ;,he z ra articipating jurisdiction (e.g. City of College Station, Brazos County). A jt(ftri' dit1t;-ipon d ate all, a portion, or none of the tax increment to the fund. I Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Tax Increment Reinvestment Zone Number 19 The College Station Medical District Tax Increment Reinvestment Zone Number 19 is located generally east of the future Scott & White Hospital on Rock Prairie Road. The Zone encompasses property owned by various public, semi-public, and private landholders including the City of College Station's planned Spring Creek Corporate Campus. / T ng _7°� : 9 T ng Tax Increment Reinvestment Zone 19 The legal,blescripp 0 be found in the Appendix. 9 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan The Zone includes areas that are largely underdeveloped. Though there are currently funded capital projects to serve this area, the majority of the needed infrastructure projects are unfunded. All identified costs are for infrastructure to serve the Zone, and are primarily within the Med ical District and Zone boundaries. The largest exception is sewer, which requires, and the costs include, notable offsite improvements beginning at the Lick Creek Plant. It should be noted that expanded sewer service is critical for deve|op_,ent he Zone and much of the Medical District east of State Highway 6. The infrastructure identified and estimated in this d infrastructure to serve the area. Additional future infrastr the specific developments. This primary fm through general master planning efforts sdtl,'�""'P as thedf Plan, etc. The City will likely play a larger rol infrastructure, where private developers ill' I infrastructures, This additional infrastructw'i"."), ��re been. pat primarVqor main red 6v40dwith anned and sized r Master Vhding the initial primary nsibks for all additional quantified in any form in this Preliminary Project Plan and PreIiminaT("" h" qbncinl��P'fan t fough development will require many further minor extenslor.) For/ ex ys will be required in addition to the primary thoroughfares 0 but to break block length, provide connectivity, secondary eme*PC The provided estimatq�� werali t e conservative or inflated, to account for design costs, future co unforeseen considerations, some enhancements, and cont1q,g ar-tg',/� &ft futu re etailed information, the estimates should be updated A d d i t i o n a I C rters Creek Wastewater Treatment Plant expansion has not been included in these estim*4,as it was not deemed necessary for the specific development of the District; though again, eacffivould be appropriate for future planning consideration. Over the course of the Medical District master planning process, a series of priority projects were identified as projects that must be completed to facilitate development within the Zone. These projects can be further delineated as Priority One Projects and Priority Two Projects. Priority One Projects are those that must be complete to accommodate any development at all. 7 Tax Increment Reinvestment Zone Number 19 ` Pre Project Plan and Preliminary Financing Plan Priority Two Projects are those that are needed to provide a wider range of development options. Barron Thoroughfares Description From To Class Pvmt (ft) Length (ft) Cost ($) Bird Pond Rock Prairie Lakeway 4 Ln Min Art 72 2,800 $3,290,000 Lakeway Rock Prairie 4 L Min Art 72 5,400 $6,345,000 Lakewav Medical Barron 4 L Mai Coll 54 3,00 �30,000 Description From To Diarq*r(in) cost Lick Creek — Trunk Ph 11 S of Pebble Crk Sub WD Fitch Lakeway Medical $3,350,000 Spring Creek — Baseline C WD Fitch Baseline A C fork 6 000 $2,640,000 Soring Creek — Baseline A Baseline A C fork Lift Station #2 (SH6)i''- 7:500 $3,300,000 Along From To Diameter Bird Pond Rock Prairie 5Hb 12 Barron keway Rock Prairi Lakeway Medical Barron PRIORITY ONE PROJECTS PRIORITY TWO PROJE 7 Thoroughfares 0 Description FMW' Class Pvmt (ft) Length (ft) Cost G Along Fro To Width (ft) Length Cost E-13 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan RIMMOM It should be noted that the majority of the planned infrastructure is required for the development of this area even if the Zone is not formed. However, this effort, in short, plans to focus and broaden medical and urban uses, enhance and accelerate the delivery nfprimary infrastructure, and establish financial mechanisms to make this possible and attractive, to ultimately bring an increased tax base of medical uses and activity, as well as urban densities, which likely would not occur otherwise. It is anticipated that the proposed improvements in this plan will provide th $283 million in combined commercial and residential capital dev 11 College Station, Brazos County, and the College Station Indep I Di Years 1-5 Residential (SFR) $25 Million Residentia|(SFR) Multi-Family and Non-Residential Multi-Family and Non-Resid ;for nearly the City of W Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Texas Tax Code Subtitle B — Special Property Tax Provisions Chapter 311— Tax Increment Financing Act Section 311.O11— Project and Financing Plans (a) The board of directors of reinvestment zone shall prepare and adopt a project plan and a reinvestment zone financing plan for the zone and submit the plans to the governing body of the municipality or county that designated the zone. (b) The project plan | d (1) a description and map showing existing uses and cnnom in the zone and proposed uses of that property; ( proposed changes orzoning ordinances, the maszerp/ ng codes, other municipal rd d bd of the county, if applicable; (3) a list of estimated nonproject costs; and (4) a statement of a method f , if any, as a result of implementing the plan. (c) The reinvestment zone financing | ( a detailed list denc ct costs of the zone, including administrative expenses; N — i —j- d ki' &'puriiber, and location of all public works or i6M feasible and an economic feasibility study; (4) the estimatJ pnou indebtedness to be incurred; (5) the est1, ti X11- lated costs or monetary obligations are to be incurred; N I M ' ds of financing all estimated project costs and the expegged""' 0 re inance or pay project costs, including the percentage of takpia)1cre e' e ived from the property taxes of each taxing unit anticipated to t i�-onf lb t ta i t to the zone that levies taxes on real property in the zone; nt PIZ the cur t total appraised value of taxable real property in the zone; men MEMO (9) the estiffiked captured appraised value of the zone during each year of its existence; he duration of the zone. (d) The governing body of the municipality or county that designated the zone must approve a project plan or reinvestment zone financing plan after its adoption by the board. The approval must be by ordinance, in the case of municipality, or by order, in the case of county, that finds that the plan isfeasible. (e) The board of directors of the zone at any time may adopt an amendment to the project plan consistent with the requirements and limitations of this chapter. The amendment takes effect on approval by the governing body of the municipality or county that created the zone. That approval must be by ordinance, in the case of a munidpa|ity, or by order, in the case of we Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan county. If an amendment reduces or increases the geographic area of the zone, increases the amount of bonded indebtedness to be incurred, increases or decreases the percentage of tax increment to be contributed by a taxing unit increases the total estimated project costs, or designates additional property in the zone to be acquired by the municipality orcounty, the approval must be by ordinance or order, as applicable, adopted after a public hearing that satisfies the procedural requirements of Sections 311.003(c) and (d). (D in a zone designated under Section 3I1.005(o)(4) that is located in a county with a population of 3.3 million or more, the project plan must provide that at least one-third of the tax increment of the zone be used to provide affordable housing during the t rm of the zone. (g) A school district that participates in a zone is not required to in amount of the tax increment to be contributed by the school distric. eo a endment to the project plan or reinvestment zone financing plan for the ',Unless" erning body of the school district by official action approves the amendmen 'W"N", P, (h) Unless specifically provided otherwise in the plan, a a ct plan or reinvestment zone financing plan, including amounts ofixpendifib to proj6ct costs and amounts relating to participation by taxing uml�_,�M onst ed es ates and do not act as a limitation on the described items, ""Bbt o the project plan or reinvestment zone financing plan may not v#Y MR&J, 11 e estimates. This subsection may not be construed to increase the amount' a n xp""g under Section 403.302(d)(4), Government Code, in the total taxabld'PMW th op in the zone as computed under SettW,"ff"p"403. code. Added by Acts 1987, 70th'k, ch. 119, 7. Amended by Acts 1989, 71st Leg., ch. September 1, 2005.Acts 80th h. 921, Sec. 14.010, eff. September 1, 2007.Acts 2011, 11 d 11 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Existing Conditions and Proposed Improvements proposed uses of that property" The following maps represent the existing land use, comprehensive land use plan, and proposed improvements to the Zone. 12 Existing Land Use Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 13 Comprehensive Land Use Plan PRIORITY ONE PROJECTS r r,. i Thoroughfares Description From fo r, > Mass Pvmt (ft) Length (ft) Cost () Bird Pond Rack Prairie Lae ay 4 l ri Min Art 72 2,8070 $3,290,000 Barron Lakeway Nn, Rock rairie ' 4 Ln MI h, Art 72 5,400 $6,345,000 Lakeway Medical c b rr on Maftoll 54 3,000 $3,030,000 Desd n romp To A Class Pvmt (ft) Length (ft) Cost ( ) Rock P' le E j 6 Bird Pond 4 Ln Maj Art 78 5,200 $3,302,000 qggg Unnamed _ ck PraEne , r, Lakeway 2 Ln Min Coll 38 2,300 $3,367,000 RE Tax Increment Reinvestment Zone Dumber 19 Preliminary Project Plan and Preliminary Financing Plan Tax Increment Reinvestment Zone Number 19 - Preliminary Project Plan and Preliminary Financing Plan Description m < y To Diameter (in) Length (ft) Cost (5) Lick eek— Trunk Ph I I S I b ,Vv U I M 36 6,700 $3,350,0 Spring Creek — Baseline C wD I « ine A C fork 36 6,000 $2,640,000 Spring Creek — Baseline A n I-Attation #2 (SH6) 24 7,500 $3,300,000 15 PRIORITY ONE PROJECTS Wastewater Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan PRIORITY ONE PROJECTS Water Along From . . . . . . . 6*eter (iii� Length (ft) Cost Bird Pond Rock Prairie S H 4,800 $360,000 Lakeway Medical WM 2 3,000 $225,000 Barron SH 6 A2 2,000 $150,000 IN Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Along From To J&idtL# it U6 (ft) Cost (5) LCT 11 Rock Prairie Lick C 0 4, hi 46b $760,000 IVA PRIORITY TWO PROJECTS R ...... . ... Greenway Trails Tax Increment Reinvestment Zone Number Ig Preliminary Project Plan and Preliminary Financing Plan other municipal ordinances, and subdivision rules and regulations, if any, of the county, if Adopted October 11, 2012, the Medical District Master Plan was an amendment to the [kvs Comprehensive Plan, altering the Future Land Use and Character map, the City's Thoroughfare Plan, and Thoroughfare Context map. In response to changed thoroughfafe� alignments, the City's Water Master Plan, Proposed Pedestrian Facilities, and Proposed,,-.Bicyc*Facilities maps Ad-,ditid I trails have will also need to be amended in conjunction with the new thoroughfa' been added to the Proposed Pedestrian Facilities map in the��cycle, A;,ea , e ; -s and Greenways Master Plan to create the walkable community the Med4Pistrict Master Plan. VE All infrastructure is proposed to follow the,,,, ,ryan Station., Um f6'd Design Standards, except as otherwise noted in the Medical Distri� r Plaffillglhe�" of College Station has also adopted the following International BuildiniAdes" e • International Building Code (2012 Ed! tip dop wiff d Amendments • International Residential Code (2Q.1 Edift w`ff'ft,,Adop1ed Amendments • International Plumbing, 2E4 iti -- pted Amendments clopted Amendments clopted Amendments • International Energy eq, y , 012 Edition) with Adopted Amendments • International Prop e (2012 Edition) with Adopted Amendments • Wtj allq*tr ca - e (2* Edition) with Adopted Amendments IN, Tax Increment Reinvestment Zone Number 19 Prelin Project Plan and Preliminary Financing Pla n List of Nonproject Costs "A list of estimated nonproject costs" Significant to the success of the Medical District, the follow items were not included or estimated within this Preliminary Project Plan: way-finding, district branding, hardscape enhancements, transit, bus stops, and other nonproject costs. Such costs may be funded from developers, the City, a Municipal Management District, and/or other sources. Though the majority of the needed infrastructure projects are unfunded, t funded capital projects considered to be nonproject costs. These fu mean either the project was included and approved with a bond and Trails), included within Water Services 5-Year Budget (i.e. Watet,!`ancl funded by the State, or funded privately, etc. Funded does n6t%11.,qec( is also certain E!cts generally ,,water Mains), Thoroughfares 10 Description From To Cla vmt , , y ) cost (s) Lakeway Barron Spring Creek 4 Ln MaiColl """"'54 "%5,36 $9,868,000 Rock Prairie E Bird Pond WD Fitch 21ri\,Mi Co 30 10,600 $2,055,000 Wastewater Diameter (in) Length (ft) cost (s) Description Lick Creek — Trunk Ph I b�"re4Nnt Souffibif Pebble Crk Sub 36 5,400 $2,800,000 Greenway Trails Along From (ft) Length (ft) cost W Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Method of Relocating Persons to be Displaced "A statement of a method of relocating persons to be displaced, if any, as a result of implementing the plan" There is no intended displacement of residents. 811% Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan List of Project Costs "A detailed list describing the estimated proj costs of the zone, including administrative The follow table itemizes the project costs for the Zone for which reimbursement is available. The developer will advance funds necessary for the construction of certain public improvements and will be reimbursed as provided in separate agreements between the developer and the TIRZ. Total project costs are estimated in today's dollars b',96,be $30,824,000. Project costs include roadway improvements, water improvements, wast and greenway trails. Also included in these estimates are design c s ew4l) q, floodplain mitigation, bridges, electric lines, streetlights, signals, pavers, t211hd'?fk'1' U e eta t this amount administrative and implementation expenses are esti mated to"bri the 20 year life of the TIRZ. Pursuant to Chapter 311, Texas Tax Cod`6�"' I i n 41 e a j with approval of the TIRZ board of directors. These cost e�. J,,m, w tf,(Ib e M _,ates s more detailed design occurs on the individual projects. T mft*mi*"reost" — From k1bilical to raide Road East - From SH 6 to Bird Pond Infrastructure Costs Zone Creation and 21 Tax Increment Reinvestment Zone Number 1g Preliminary Project Plan and Preliminary Financing Plan Statement of Public Works/Public Improvements "A statement listing the proposed kind, number, and location of all public works or public improvements to be financed by the zone" The public infrastructure improvements that the T|RZ is designed to facilitate will be located throughout the Zone. These improvements will provide public infrastructure for the Medical District to include commercial and residential development. This infrastructure includes street extensions and widening, wastewater line extensions water main extensi * and greenvvay 8irdPondR' ad— From Rock Prairie to3H6 BannnRnad — FmomLakevvaytoRockPoide Lakeway —From Medical toBarron Barron Road — From SH6tnLakeway Greenway Trails, Parks and Open Space Infrastructure Priority Two Lick Creek Trail Greenway — From Rock Prairie to Lick Creek 22 Tax Increment Reinvestment Zone Number a9 Preliminary Project Plan and Preliminary Financing Plan Included in the Medical District Master Plan and as part of its corresponding work efforts, the City's consultant team conducted market research and a market analysis to determine the economic feasibility of 1,708 acres that encompasses the Zone and adopted Medical District. The analysis included, but was not limited to, medical/healthcare uses, retail/village center, senior housing, and single-family/multi-family housing. The market researcN parket analysis, and resulting development program can be found in the Appendix. Prior to the adoption of the Final Financing Plan an Ec I I ill be completed on the estimated impact of the $283,000,000 in n ha Jected ISO over the life of the Zone. dflk " CE 23 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Bonds may be issued by the City ofCollege Station and the K8K4D pursuant to an in1erkzca| agreement with the Zone which pledges incremental revenue for debt service. Bond sizing will be based on the maximum amount Zone revenues could reasonably sustain according tVthe City's financial advisor and market conditions at the time ofissuance. Wil Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan The time when related costs or monetary obligations are to be incurred is a function of the availability ofT|RZ nevenues. Details of the time when related costs or monetary obligations may be incurred are shown on the following table. This summary shows the time when T|RZ revenues are expected to be available to pay project costs. IN Tax Increment Reinvestment Zone Number 1g Preliminary Project Plan and Preliminary Financing Plan "A description of the methods of financing all estimated project costs and the expected e of tax increment to be derived from the property taxes of each taxing unit anticipated to contribute tax increment to the zone that levies taxes on real property in the zone" Methods of Rnancing - The developer will advance funds for certain project costs and the Zone will reimburse these costs from tax increment revenues as they 4e realized. The reimbursement will be as described in a separate agreement and ntation between the developer and the city. A portion of the project costs by the developer as described in the Reimbursement Agreement. 1 he city-,'Vill portion of the cost of the projects through the sources outlined ON AW Sources of Tax Increment Revenues - The tax incremetx _venufll "e r &A"K 664p h project costs is expected to come from increased k perty-y, ei`IiWet neAPO to the construction of new commercial and residential buildings irigthe e 1 10 1, ED entered into with Brazos County formalizing the ti from Brazos County. Captured Value sse 1 6 and the asse T-`,Va uatitns development. This represents the ting estimated increment�'r��ppd"f� vaitf associated with the development. It is estimated that there will -2283 6 ed property value in the Zone. cipate at 100% of its ad valorem tax rate. participate with only the K8&O portion of its ad valorem tax eWat the following levels. 1-5 0% Years 15-16 60% Yea rs6-1J 100Y6 Years 17-18 40Y6 Years 13-14 80Y6 Years 19-20 IO% EstimotedTIRZ Revenue The estimated captured property value in the Zone of $283,000,000 will generate captured property tax revenue from the City of College Station and Brazos County NW Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan totaling $16.7 million over the life of the T|RZ. These new revenues will be used to pay I Years 15-16 60% W, :Years 17-1840% fflh AS 40 Years 19-2020% "Ib, ' I '--' e 6ffier sources of revenue to fund a portion of these projects. Funds generat ',,u unicipal Management District (MMD) will also Utility req,,,, s er Fund and the Wastewater Fund will be used to pay for a tewater projects. at r pertyk, t s in the General Debt Service Fund may be used for the t a i n a rail projects through future bond authorizations for the issuance of G igation Bonds and/or the issuance of Certificates of Obligation. If nec cash resources from the City's General Fund may also be utilized to fund these projects. 27 for a portion of the costs in the Zone. Estimated TIPZ Number 19 Revenue 100% 83.94% �nnual New New Non Res & Total New cocs BC Residential Multi Family Development Appraised Valuo. Tax Re\enue Tax Revenue Revenue $ 114132 I Years 15-16 60% W, :Years 17-1840% fflh AS 40 Years 19-2020% "Ib, ' I '--' e 6ffier sources of revenue to fund a portion of these projects. Funds generat ',,u unicipal Management District (MMD) will also Utility req,,,, s er Fund and the Wastewater Fund will be used to pay for a tewater projects. at r pertyk, t s in the General Debt Service Fund may be used for the t a i n a rail projects through future bond authorizations for the issuance of G igation Bonds and/or the issuance of Certificates of Obligation. If nec cash resources from the City's General Fund may also be utilized to fund these projects. 27 Tax Increm Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Current Total Appraised Value of Property in the Zone "The current total appraised value of taxable real property in the zone" The current total appraised value of taxable real property within the Zone at the time of creation was $9,O46,D5O. Value Taxable Real NM R10720 �BRA OS VALLEY SOLID WASTE EX 119.53 $ 418,360,00 $ 230,350,00 :BRAZOS VALLEY SOLID WA E EX 6&00 1,12 000.00 $ R10581 'COLLEGE STATION CITY OF EX 384.19 12,551,490�00 $ t",$,jb51,490,00 R302665 COLLEGE STATION CITY OF EX 100.64 $ 754,800,00 T ��7,s4,800.00 1 -6 COLLEGE STATION CITY OF EX 68.56 1,131,240.00 $ I $ Ej 240,00 i R13867 'COLLEGE STATION CITY OF EX 48.59 48,590�00 $ R10583 COLLEGE STATION LAND INVE TMENT LP $ :COLLEGE STATION LAND INVESTMENT LP 221.97 $ 1,664,750�00 5 53 010 OG, R10663 GOEN GRACE E TESTAMENTARY TRUST R13877 IM D WHEELER LTD 3,781,760�00 R10646 : NELSON BARRY CRAIG DV2, HS, OV65 10.35 $ R10637 PERRY BRIAN HOWARD HS R10696 SAVAGE EUGENE B III REVOCABLE TRUST q 421;2" 1 $ Von "NO? $ 422,290.00 R10634 WHITE HOUSTON 2,00 011" L870 , 0 1 PW 48,140,00 $ $ 120,010,00 Value Taxable Real NM Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan Estimated Captured Value of Zone in Each Year of Existence "The estimated captured appraised value of the zone during each year of its existence" The captured appraised value of the TlRZ during each year of existence is shown in this table based upon a conservatively projected development schedule. The cumulative estimated captured value over the life of the Zone is S283,000,000. Actual value will depend upon WE implementation of the Medical District Master Plan, and changes from these projections will Tax Increment Reinvestment Zone Number l9 Preliminary Project Plan and Preliminary FinancingPbn The duration of the Zone is2Dyears. The T|RZ will take effect on the date itiscreated. January 1, 2012 will be established as the base year and the TIRZ will terminate on December 31, 2032, or the date when all project costs are paid and all debt is retired, or by subsequent city ordinance terminating the Zone. xl go] Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 31 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 'Estimated Infrastructure Costs - Priority One P rojects �Lakewav - From Medical to Barron Barron From Lakeway to Rock Prairie Bird Pond - From Rock Prairie to Lakeway 290, 000 'Streets Subtotal xb `665 000 'Lick Creek Trunk Line Ph 11 aa !Spring Creek - Baseline A ig 00, ,Wastewater Subtotal 9 290 00p sig r Bird Pond Road — From Rock Prairie 6 360,000 Barron Road — From Lakewav to Rock Praip, 405,000 Lakeway — From Medical to Barron Barron Road $ Vater Subtotal al Lick Cree wbtot "'IffE Costs - Priority Two Proiects 7,429,000 Other Cosfsb Develo r Reimbursement Interest 0 nizational Costs, Zone Creation and Administration $ 250,000 Per and Related Fees Subtotal $ 300,000 Jotal Estimated Costs 30,824,000 32 0) to r ci I rn m Joe Orr, Inc. Surveyors & Engineers 2167 Post Oak Circle College Station, Texas 77845 (979) 693-2777 Tax Increment Reinvestment Zone 19 1301.76 acres (net) College Station, Texas December 2012 Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (60 feet south of surveyed centerline) and the cast boundary of Block 7 of the Scott & White Healthcare Subdivision (vol. 10 179, pg. 50), being the northeast comer of Lot 1, Block 7 of said subdivision, and from where City of College Station OPS control monument no. 9 bears S 82' 02' 35" E — 7016.5 feet. Thence N 2 ' 42' 34" W — 120.04 feet along an extension of the said east boundary line of Block 7, to a point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (59.0 feet north of the surveyed centerline) as follows: S 86 27' 34" E — 1771.13 feet, S 85' 02' 05" E — 1228.54 feet and S 84' 23' 02" E —10.29 feet to a right-of-way offset point in the common line of the Dale and Reba Conrad 26.25 acre tract (vol. 460, pg. 505) and the Flying Ace Ranch, Ltd. 26.245 acre tract (vol. 3767, pg. 237); Thence S 24' 22' 52" W — 1.58 feet along said common tract line to another offiset point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (57.5 feet north of the surveyed centerline) as follows: S 84 23' 02" E — 606.93 feet, S 82 02' 02" E — 1453.40 feet, S 77 01' 02 E — 1052.59 feet, S 76 28' 02" E — 2876.58 feet, S 69' 53' 32" E - 2812.30 feet to the beginning of a tangent curve to the right with a radius of 1057.50 feet, along said curve through a central angle of 11 ° 43' 34" to a point in the old northeast prescriptive right-of-way fenceline, and S 69 17' 50" E — 269.35 feet along said fenceline to the southeast line of the Hartzell Elkins 35.37 acre tract (vol. 1920, pg. 323) and northwest line of William D. Fitch Parkway; TTRZ 19 Page 1 of 4 Thence across Rock Prairie Road East as follows: S 42 32' 30" W - 32.00 feet to the south comer of said Elkins tract, called to be in the centerline of the road, S 19' 52' 04" W - 36.01 feet to the east comer of the College Station Independent School District 44.535 acre tract (vol. 8413, pg. 291) at the old right-of-way fence comer post, and S 41' 51' 48" W - 170.08 feet along the southeast line of said C.S.I.S.D. tract and northwest line of Fitch Parkway to its intersection with the south right- of-way chamfer of Rock Prairie Road East; Thence along the south right-of-way lines of Rock Prairie Road East (57.5 feet south of the surveyed centerline) as follows: N 5 38' 11" W - 67.56 feet, N 53 08' 10" W - 112.88 feet to the beginning of a tangent curve to the left with a radius of 942.50 feet, along said curve through a central angle of 16' 45' 22" to the point of tangency, and N 69' 53' 32" W - 551.37 feet to the common line of said C.S.I.S.D. tract and the Brazos Valley Solid Waste Management Agency, Inc. 76.00 acre Tract 11 (vol. 9857, pg. 186); - Thence S 4 1 ' 5 V 48" W - 1842.68 feet along said common tract line to its southwest end in a northeast line • the B.V.S.W.M.A. 179.99 acre Tract 1; Thence S 48' 05' 47" E - 941.57 feet, along the common line of said Tract I and the C.S.I.S.D. tract to their common comer in the northwest right-of-way of William D. Fitch Parkway; Thence S 41 ' 51' 48" W - 1425.30 feet, along said northwest right-of-way line, to the south comer of the said B.V.S.W.M.A. Tract 1; 1066.80 feet, continuing along said northwest right-of-way line of William D. Fitch Parkway, to the east common comer of the City of College Station 140.29 acre Tract One (vol. 3900, pg. 188) and Spring Meadows Phase I (vol. 5106, pg. 284); Thence along the southern boundaries of multiple City of College Station tracts (vol. 3900, pgs. 188 & 21-3, vol. 5056, pg. 43) as follows: N 73 00' 00" W - 496.40 feet, S 51' 00' 00" W - 175.05 feet, N 76' 00'00" W - 200.00 feet, S 41 5 1' 44" W - 51.88 feet, N 70' 46 00" W - 157.10 feet, 262.67 feet, N 82 55' 43" W - 700.87 feet, S 41 52' 26" W - 650.00, N 48 08' 02" W - 412.47 feet, S 66 47' 54" W - 827.57 feet, N 47' 45' 25" W - 129.90 feet, S 28 59' 29" W - 2.01 feet, S 41 48' 43 W - 336.13 feet, S 48 45' 08" E - 440.00 feet and S 53 00 W - 1304.90 feet to the northeast right-of-way line of State Highway no. 6; Thence along the northeast right-of-way lines of said highway as follows: N 49 25' 00" W - 438.00 feet, N 55 07' 38" W - 201.00 feet, N 49 25' 00" W - 751.78 feet to the west comer of the City of College Station 36.9 acre tract (vol. 4329, pg. 134), and N 49 25' 00" W - 1025.93 feet to the south comer of Barron Park Subdivision (vol. 939, pg. 209); TIRZ 1 9 Page 2 of 4 Thence along the southeast, northeast and northwest lines of Lots 1 and 2 of said Barron Park Subdivision as follows: S 41 09' 46 E - 1353.16 feet, N 49" 12' 46" W - 88.68 feet to the south corner of the City of College Station 100.64 acre tract (vol. 6927, pg. 226), N 54' 07' 24" W - 291.11 feet, N 64 27' 21" W - 117.03 feet, N 54 53' 54" W - 24.95 feet, N 53' 19' 32" W - 113.87 feet, N 49 26' 59" W - 190.11 feet and S 41 09' 38" W - 1286.04 feet to the common comer of said Lot 2 and Lot 3 in the northeast right-of-way line of State Highway no. 6; Thence along the said northeast right-of-way lines ♦ said highway as follows: N 47 46' 18" W - 537.86 feet to the southwest common comer of Lot 3 of said Barron Park Subdivision and that City of College Station 46.60 acre tract (vol. 33 10, pg. 32 1), N 47' 46' 48" W - 65.34 feet, N 55 07' 37" W - 201.00 feet, N 49 25' 00" W - 600.00 feet and N 44 08' 33" W - 147.79 feet to the southwest common comer of said 46.60 acre tract and the Barker Subdivision (vol. 5101, pg. Thence N 38° 51' 07" E - 279.95 feet along the southeast line of said Barker Subdivision to its cast comer; Thence N 47' 42' 16" W - 1053.70 feet along the northeast line of said Barker Subdivision and continuing along the northeast line of Cooper's Subdivision (vol. 4708, pg. 230) to its north comer, also being the east comer of the Harley Subdivision (vol. 3961, pg. 236) and the south comer of that 1HD Properties, LLC 2.77 acre Tract One (vol. 10144, pg. 203); Thence along the south, east and north Imes of said IHD Properties tract as follows: N 42 17' 04" E - 175.00 feet, N 47 42' 56" W - 638.83 feet and S 72 19' 02" W - 202.14 feet to the northeast line of said Harley Subdivision and a southwest line of that M.D. Wheeler, Ltd. 71.52 acre Tract Two (vol. 3007, pg. 341); Thence along the southwest lines of said Wheeler Tract Two and continuing along the southeast lines of the Wheeler 10.01 acre Tract One as follows: N 47 42' 33" W - 177.08 feet, N 46" 46' 09" W - 304.24 feet, S 21 27' 46" W - 145.09 feet and S 41 ' 43' 32" W - 194.25 feet, returning to the northeast right-of-way line of State Highway no. 6; Thence along the said highway northeast right-of-way lines as follows: N 42 27' 25" W - 105.18 feet, N 36° 45' 17" W - 383.87 feet, N 27 43' 31" W - 192.30 feet and N 34c' 27' 26" W - 55.00 feet to the southeast line of Block 4 of the said Scott & White Healthcare Subdivision; Thence along the east boundary lines of said Scott & White subdivision as follows: N 41 15' 39" E - 1224.44 feet, N 47 37' 11" W - 128.13 feet, N 50' 49' 32" E - 930.60 feet and N 2" 42' 34" W - 1023.83 feet to the Point of Beginning and containing 1308.51 acres of land more or less. TIRZ 19 Page 3 of 4 SAVE and EXCEPT the following tract: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (57.5 feet south of the surveyed centerline) and the west line of Lot I of Rock Prairie Baptist Church (vol. 7312, pg. 207), from where City of College Station GPS control monument no. 9 bears S 78' 01' 24" E — 3240.0 feet. Thence S 82' 02' 02" E — 414.05 feet along said south right-of-way line, parallel and 7.50 feet south of the north line of said Lot 1, to its intersection with the east line of said Lot 1; Thence S 20' 22' 54" E — 600.82 feet along the cast line of Lot I to its southeast comer; Thence N 82' 02' 02" W — 699.33 feet along the south line of Lot I to its southwest comer; Thence N 7' 57' 58" E — 528.77 feet along the west line of Lot I to the Point of Beginning and containing 6.76 acres • land more or less. Leaving a net acreage for this described tract of 1301.76 acres more or less. Bearings are Texas State Plane, NAD-83(CORS) datum, based on City o College Station GPS control points and GPS observations. Volume and page numbers cited refer to the Brazos County public recor No monuments were set for this survey and found monuments are not cited. I This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground survey and is not to be used to convey • establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. F III I TIRZ 19 Page 4 of 4 Control Reference: Paint -of- Beginning (P.O.B.) to CPS monument no. 9 S 82'02'35'E - 7016.5' Rise R- 3636/85 3387 /115w / S 86:27'34"E Scott & White Healthcare Subdivision 10179/50 41 JOE ORR, INC Not..: VIRVI 't VNGINEERS 2167 Post Os' circle Bearings ore Texas State Plane, NAD-83(CORS) datum, based collog. salial, To-, 7-5 a City of CS GPS control points a GPS observa tions. (979)693-2777 100544 X1, kq�,, F-, This document was prepared under 22 TAC §663.21, d..s net L6 S 19 047W-36.01' reflect the re of an on the ground survey, and is not to to convey orie interests in real property he used L7 S 41 ° "W - 170,08' as s sat t hose rights a nd interests impfled or -t.bfi5had by the creation or reconfiguration of the boundary of the political J�/ -baMskm for which it was prepared. o No monuments were set for this survey one found monuments are not cited on this reference map. k Olden L36 N 42'1704E 175.00 C utQ Ing �)Iden< ?6-' 1 EclaeAddin. I � I , , E I-L � L5 S 41 51 4eW-51.88' 1-40 S 21 °27'4$ "W - 1 45.09' L 1 6 N 704600 "W 157.10' L41 5 41*43'32"W-194,25' L17 S 415144 W-261 67' Johnson Johnson,/ L8 N 48 °08 " W : 412.47' L43 N 36 "45'17"W- 383.87' L 1 9 N 47°4525"W 129,90* L44 N 27 °4331 "W 192.30' L20 S 28'59'29"W-2.01' L45 N 34P27'26"W-55,00' L21 S 41 °48'43'W- 336. F/M. L5 L L6 " f I-1 LQ � \�k " �\, LINE TABLE --------------------- 7027'21"W-117� L N 2*4234"W-120.0 L27 N 6 L2 S 84P23:Of 17- 10.29' L28 N 54 L3 S 24 5ZW- 1 .58' L29 N 5Y19 32 113,87* L4 S 69° 1 750` E-269,35' L30 N 49 °26 59 190 11: L5 S 42 ° "W - 32.00' L31 N 47*46 1 W- 53786 L6 S 19 047W-36.01' IN L32 47 °4648 L7 S 41 ° "W - 170,08' L33 N 55,07,3 7"W-201.00' L8 N 5 ° 38'11 "W - 67.56' L34 N 44°0833W-147.79' , Lq N 53- 08 :10' 11288' L35 N 38-5107-E -_ 279,95: L 10 N 69 °53'32 ° W - 55137' � L36 N 42'1704E 175.00 L1 2 N N 73' 00 'OOPW-496.40' L37 S 72°19'02 ° W - 202.14' -1 3 S 51-0000"W-175.05' L38 N 47°42'33 "W 17708' L�4 N 76 L39 N 4646'WW-304 24' L5 S 41 51 4eW-51.88' 1-40 S 21 °27'4$ "W - 1 45.09' L 1 6 N 704600 "W 157.10' L41 5 41*43'32"W-194,25' L17 S 415144 W-261 67' L42 N 42°2725 "W - 10518' L8 N 48 °08 " W : 412.47' L43 N 36 "45'17"W- 383.87' L 1 9 N 47°4525"W 129,90* L44 N 27 °4331 "W 192.30' L20 S 28'59'29"W-2.01' L45 N 34P27'26"W-55,00' L21 S 41 °48'43'W- 336. L46 N 47 °37'1 "W - 128.13' L22 S 4845*0)6 "E-440M' -23 N 49'25'WW-438,00' Lt. S 82'02'02"E-414.05' L24 N 55'07 ' 36W-201,00' 20°22'54 "E - 600.82' -2x 20°22'54 "E - 600.82' L25 N 49 °12'46' 88.68' -3x N 82'02'02 ° W - 699.33' L26 N 54 °07'24' 291.1 . Lox N 7-57'58 'E-528.77' aff Central Refer- Exception h t Trout Point -of- Beginning (P a a CPS ancroment no 9 S 78 °01'24 "E - 324M' C. ad f� 4 60/505 �(yirg Ace Ra-h Thir.m.l. S 8 5'0 2'0 " 0 E S / 3767/237 192a i8423'nq- - " 1 9 1 ark Bar ron b,cl, �*'""' vision 939/209 Lot 2 CURVE TABLE 10 A Rod!.. Chord C1 1 1'43'34" 1057,50' S 64P01'46'JE-216.05' C2 16'45'22" 942.50' N 61'30'51"W-274,65' - Note: C1 and C2 a,. concentric - 7; 14EN MA YO ......... . . 5045 C S U L16 R se nd w SBCO p1% 5106/284 2012 -t-19 December 21 - L22 e 0 500 F t 1000 2000 Feet r Tax Increment Creek Reinvestment 4 Zone 19 College Station, Texas Healthcare drivers Both in the College Station area and nationwide, healthcare is a large, strong and growing industry—in sharp contrast to most other sectors of the nation's economy over the past three years. The fundamental drivers of this growth are: • The growing number of Americans who are over 65 years of age. • General population growth. • Affluent demographic groups around the globe that will travel if necessary to seek out the best healthcare and wellness facilities available. • National policy that has expanded the number of citizens covered by insurance. • Strong continued growth potential for the biosciences, pharmaceutical, medical devices, and related industries. • The growing awareness of the need and benefits for health and wellness programs. The Graying of America Throughout their lives —as America's largest generation —baby boomers (born between 1946 and 1964) have made headlines. This continues today, as economists, demographers and forecasters attempt to discern the impacts that aging baby boomers will have on America in the 21 st century. The impact will be broad and will include impacts to the workplace, public policy, retail and other facets of life. Figure S shows the dramatically changing shape of America's population over the past half- century. Between 2010 and 2040, the US Census projects that the number of Americans over the age of 65 will double —from approximately 40 million today, to 80 million in 2040. Beginning in January 2011, and over the next 19 years, at least 10,000 baby boomers per day will turn 65. Younger households: Modest growth; Figure 6. Nationwide Household Growth, 2010 – 2020 (Millions) Source: Joint Center for Housing Studies at Harvard University, Leland Consulting Group Figure 6 underscores the scale of the growth in older households nationwide, while also illustrating some additional elements of the nation's changing demographics. This data also portends a growing need for smaller dwelling units with a richer variety. As referenced above, the greatest amount of overall household growth during the coming decade will come from the baby boomer generation. Younger households, with heads-of-households younger than 40 years of age, will also grow—though at a lesser pace. In particular, households aged 25 to 34—a key demographic that drives apartment demand and development—will experience strong growth. The number of middle-age households, however, will decrease, because of the relatively small number of "Generation V (born between the early to mid 1960s and the early 1980s) households compared to baby boomers. The decrease in this age group—which has the largest percentage of families and children— suggests that the single-family housing market will continue to stagnate for some time. However, there will be a growth in the number of minority-headed middle-age households. Seniors Drive Healthcare Demand America's aging population will require more medical and healthcare services. Healthcare industry experts estimate that as much as 60 percent of all physician demand is driven by the 65-plus population. (Source: Medical Office Development Continues to Rise, Real Estate Finance, April 2008.) As Figure 7 shows, senior citizens require approximately three times more physicians, in all categories of medicine, compared with younger age groups. The demand for services in turn stimulates strong demand for healthcare and healthcare related real estate including hospitals, clinics, physician offices, outpatient centers, senior housing and related facilities. The specific need for these facilities is outlined in Chapter 4 – Development Program. Figure S. America's Population: From Pyramid to Rectangle Source: US Bureau of Census, Leland Consulting Group AQe 6+ 45-64' 0 -2 Physiciansper 10,000,people Figure 7. Physicians Required per 100,000 Population by Age Group Source: Department of Health and Human Services, Leland Consulting Group More than Healthcare— Lifestyle As the generation that came of age with rock and roll, increasing mobility and personal freedom, and amidst a seemingly limitless American economic expansion, baby boomers are unlikely to want to register at a retirement community and live out the rest of their days apart from the outside world. They will be seeking more from their communities than simply reliable healthcare. According to a 2007 survey, the following are some of the key features that baby boomers will look for in their future housing choices and communities (Source: "Who are you calling a senior ?" Urban Land Magazine, January 201 1): Working will continue to be an important part of the boomer lifestyle. Fifty -five percent of boomers plan to continue to work at least part -time, making urban areas close to job opportunities and transportation more desirable. Urban workforces are better plugged into the new economy, a trend that only stands to strengthen as the U.S. information economy expands. Arts and culture. Boomers overwhelmingly seek locations that offer travel, arts, hobbies, fitness, entertainment, dining, culture, shopping and gardening — raising the question, what are boomers not interested in? Surprisingly, they agree on their lack of interest in golf, tennis or a move to a warmer climate. Of the boomers who are anticipating a move, only 20 percent are very interested in golf and /or warm locales, and plan to include those factors as part of their moving decision. Eighty -six percent of baby boomers want to live in a typical community setting where people of all ages live, diversity of age and experience is critical to boomers. Information suggests that our definition of "senior housing" will change. Rather than seclusion and exclusivity, many boomers will want activity and connection —with their children, grandchildren, friends and communities. Along with outdoor pursuits, seniors will be looking for arts, culture, food, continuing education and lifelong learning and other pastimes. Further, while high quality healthcare is very important to senior citizens, they are looking for communities in which it is part of an overall puzzle, not the entire picture. Increase in Healthcare - Related Jobs job growth in the United States has stagnated over the past several years. In the coming decades, job growth is expected to come from several well- defined industry segments, led overwhelmingly by healthcare and professional services. The Bureau of Labor Services (BLS) predicts that the healthcare industry will generate 3.2 million new jobs between 2008 and 2018. Therefore, the opportunity to accelerate the development of a medical district or cluster of institutions is a major economic development opportunity, since this industry sector is expected to be among the fastest growing in the country. Figures 9 and 10 show both the types and locations (by development type) of jobs expected to be created in the healthcare fields. This information is relevant because it is indicative of the types of development likely to take place in College Station, and because it shows the breadth of jobs that could be created within the City and region. The greatest demand, as shown in Figure 9, will be for those trained as nurses, physicians and surgeons, followed by many other professionals including social workers, lab technicians and physician assistants. These job types Mining; Construchon Manufacturing' Utilities Whotesele trade Retail trade Transportation andwarehousing' Information' Financial activities: Professional and business services Educational services Healthcare and "social assistance: Lelsureancl hospitality Other services+ Federal government State and local government Agricultureforestryfishing, and hunting; Figure 8. National Employment Growth by Industry Sector, 2008 – 2018 (thousands of jobs) Source: Bureau of Labor Services, Leland Consulting Croup r � � r. in general offer relatively high wages and security compared with national averages. College Station's educational institutions, led byTexas A &M's Health Sciences Center, have already begun preparing to meet the need for a highly- educated healthcare workforce. Figure 10 shows that the locations where healthcare professionals will work is diverse and extends well beyond the traditional hospital, to physicians offices, senior housing communities, patient's homes and clinics. Thus, a diverse range of real estate types will be needed within the medical district. Real Estate Development Outlook Real estate development was a major source of the national recession, and an industry that continues to suffer in its aftermath. Nationwide, most types of real estate development continue to be out-of-favor with investors due to dramatic overbuilding in the early part of the last decade, increased unemployment and stagnating wages, more caution on the part of consumers, increased scrutiny by lending managers, ratings agencies, and regulators and other related factors. These conditions are reflected in Figure 11, which shows some of the key findings from the Urban Land Institute's (ULI) 2011 Emerging Trends in Real Estate, a leading annual real estate industry publication. While industry leaders are extremely pessimistic about most types of development—most development types are seen as nearly "abysmal " -- development within several land uses is "fair ", that is, financeable and profitable under the right conditions. These include apartments, medical offices, senior housing and other types of affordable and infill housing —all Registered nurses Licensed nurses Physicians and surgeons Social workers Clinical laboratory techniciansi Counselors Physician assistantsi Paramedics/EMT Pharmacists. Dietitians and nutritionists Figure 9. Net New Healthcare lobs by Title, 2008 – 2018 Source: BLS Guide to Healthcare Industry, 20 10-1 1 Edition, Leland Consulting Group offices of physicians Nursing Hcrmehaa3thcere services. c3utpatleh #4ard ceritets Other healthcare services - 100 200 300 400 500 600 700 Soo 900 Figure 10. Net New Employment by Facility Type, 2008 -2015 Source: BLS Guide to Healthcare Industry, 2010-11 Edition, Leland Consulting Group Minna 100 200 300 400 500 600 Employment {thousands): development types with strong long-term demand drivers that did not suffer from the same scale of dramatic overbuilding as single - family housing and other types did in the early 2000s. While these trends are important for the medical district, there are a number of qualifications to this information that should be recognized. The Emerging Trends analysis is nationwide and intended for the short term (multi-year outlook focusing on 2011). In fact, we know that every real estate market is highly localized, with its own demand drivers (economy, demographics, etc.) and players (existing development, developers, property owners, etc.), Many Texas cities and metropolitan areas have continued to create jobs and enjoy strong real estate markets through much of the last several years, thus avoiding the worst of the national real estate downturn. In addition, the medical district is intended to be a long-term vision with a long-term build out, and thus, the trends in effect in 2020 and beyond will be nearly as important as those for next year. However, with these caveats in mind, the land uses anticipated to be strong opportunities in 2011 should continue to maintain their top positions for much of the coming decade. Nationally, the medical office sector has outperformed most other commercial property types through the recession. Texas was expected to add 1,7 million square feet of medical office space in 2010, an increase of 2.5 percent. Asking rents are strong, averaging nearly $23 per square foot. (Source: Medical Office Research Report, Marcus & Millichap, Q3 and 4 2010) The City and its medical district development partners should take these uses into account when planning and implementing the master plan. Figure 1/. 2011 Real Estate Development Prospects Source: Urban Land Institute, Leland Consulting Croup Previously Uninsured Entering the Healthcare System In addition to the growth of the over-65 population and other demand drivers discussed above, the expansion of healthcare to a broader segment of the population, particularly through greater access to insurance, is expected to increase the need for hospitals and other medical real estate. Healthcare and health insurance has, of course, been much in the news during the past two years. As of 201 approximately 46 million Americans were estimated to be uninsured. The federal healthcare reform bill, signed into law in March 2010, is expected to lead to coverage for approximately 32 million, and thus an increase of approximately 64 million square feet of healthcare related real estate nationwide. (Source: 'Can Healthcare Rescue Real Estate?" Meyer, Kenneth and Rob Grossman, Deloitte Consulting) Figure 1 2 shows the demographic groups that are currently least likely to carry insurance today, but would be covered in the future. Some of these groups— particularly Hispanics, households aged 18 – 29, and southern and western households—are also groups expected to grow quickly in the coming decades, and thus, their impact on healthcare demand will be amplified. Fxpanded coverage is generally expected to be neutral to positive for the financial health of medical service providers (although its impact on the health insurance industry may be negative). More patients will be able to pay fair-market rates for care through insurance, but insurers may be forced to reduce their co-payments across the board. However, fierce disagreement- about the proper direction of federal and state policy continue. While it is likely that at least some of the insurance expansion put in place in 201 will continue, it is also possible that the insurance expansions could be diminished or eliminated. This report assumes that at least some of the insurance expansion will stay in place, and that this in turn, will contribute to demand for healthcare related real estate. Additional Trends Affecting Healthcare Real Estate The following are additional trends affecting the development and operation of healthcare-related real estate within the state and across the nation. Healthcare reform. New legislation will change healthcare delivery over the next several years, as uninsured people are brought into the system. Insurance companies will be challenged because those who can afford healthcare already have it. Those who have to be added typically cannot pay for services and will have to be supplemented in some way, which will probably mean lower reimbursements for providers. Therefore insurance companies and medical providers will have to look for ways to streamline costs. Many of the uninsured are young and healthy, 20 to 30 year olds. Others are extreme poverty situations, W 4 0 6:\ M N N , 11 ffi N 0 a X RMH t�1' V 01 6 k. 03. Figure 72. Demographic Characteristics of the Uninsured, 2009 Source: Gallup Well-Being Index, June 2009, Leland Consulting Croup and will likely need assistance to pay for healthcare. Dental care will be especially critical to this group. • Insurance. The first step in the process will be primarily focused on insurance, getting the uninsured into an insurance group. • Delivery: The second step in the process will be delivery focused, streamlining costs in the system and providing care for an increased number of people. • Access and Affordability. Many HMOs will do well in the future because they control costs with an integrated approach. They are financially stable and will continue to grow. • Consolidation. Physicians will have to be part of a group, as most will not be able to stand alone because the costs of running a private office continues to increase significantly. • Streamline Costs. There will be even greater emphasis placed on reducing redundancies and streamlining the "flow" of patients (as measured by through -put metrics). For example, electronic healthcare records give access to a patient's medical history, lab tests, etc., to all providers and specialists, thereby reducing repetitive tests and consolidating office visits. • Reimbursement. New members will be paying less than others will. Payments through Medicare /Medicaid barely cover the costs of administration; however, providers will at least get some (albeit low) reimbursement for patients that previously had to be covered for free in the ER. Robotic surgery. Larger operating roams will be required. Insurers. Regional providers will be supporting their communities and will step up to provide care to the currently uninsured. National for - profit providers are looking for self- funded members where they can get higher profit margins. • Collaborative effort. Healthcare will be less of a hierarchical system. There will be more groups that deliver care through nurse practitioners and other support staff when possible, and fewer stand -alone physicians, mostly out of a necessity to reduce costs. • In -home monitoring. The advent and improvement of electrical monitoring technology allows more patients to be at home, and yet have distant professionals monitoring vital signs and looking for signs that they may need critical attention. • Military technology. The military has long been a leader in technological advances. Equipment and technology developed for use by the military will change the medical community. • Electronic ICU (EICU) critical care monitor. One facility can monitor multiple hospitals, similar to flight control at an airport monitoring multiple airlines. This could help lower costs for regional facilities in areas with several critical care or ICU units. • Streamline real estate holdings. Healthcare institutions will look for ways to cut costs including real estate holdings. Some hospital groups are currently looking to downsize administrative space. They are experimenting with alternate workspaces, such as shared stations, and allowing employees to work at home or otherwise off site. • Dental and Medical Synergy. Providers are recognizing the importance of dental health in a person's overall health. More dental care providers will be needed in the future. Information Systems. Information systems and electronic records streamline costs and improve care by being accessible to multiple providers. eVisits. Physicians have started responding to patients through email, and can sometimes avoid an office visit. Industry experts expect to see a reduction in office visits, but this has not been the case yet. Rural innovations. Providers are looking for ways to provide cost effective care to rural areas, where it has traditionally been difficult to attract physicians and other providers. At least one hospital group is testing a small 2,500 square foot clinic for rural areas. Another experiment is a mobile mammogram van, which, while it requires a low level of capital investment, is still costly to operate and requires "partner sites" for water, power and other services. Medical Districts and Urban Development Major healthcare institutions and related uses have clustered together in medical districts across the country. These districts are a result of deliberate and assertive action by healthcare providers, the public sector, and other stakeholders, who seek to provide their patients with more complete offerings for care; proximity to other experts, suppliers and complementary uses; and increased economic outcomes such as growth in jobs and tax bases. The following case studies summarize some of the key characteristics of medical corridors and districts nationwide. Research of medical districts across the nation indicates successful medical districts tend to be F i s ..� i r i , ..�: i �. /. J i r w i located in larger communities with populations in excess of 500,000. However, one well established and notable example is Winston-Salem, NC. With a population of nearly 230,000, Winston-Salem is comparable to the combined population of College Station and Bryan. Tyler, Texas is also in the process of evaluating and planning a medical corridor with a population similar to College Station and Bryan, but it is too early to identify useful lessons. Communities of less than 50,000 are known to have established medical districts, with East St. Louis, IL being a good example. Attempts to identify a distinct set of success factors for medical districts is problematic given the variation in the size of host cities and the history of medical district development. promoted and instilled internally to city residents. The district could be useful in establishing a distinct gathering place for meetings focused on medical issues and for patients and their friends and families in the course of access to comprehensive health care solutions. Great downtowns and urban districts are able to overcome obstacles. This requires partnerships, shared resources, vision and patience. The premise of the medical district itself is the product of a shared vision and shared resources. This lesson needs to be extended throughout the district and the community. In the context of current and predicted economic reality, there is no viable alternative to a robust public-private partnership to get things done. Great districts are walkable and have pedestrian scale. There must be interesting features that Capture the attention of pedestrians while assuring personal safety. The variety of patrons and residents of medical district institutions will help to attract a variety of businesses, public art, aesthetically pleasing strectscapes and visual 4. Common Traits of Highly Successful 5. Downtowns and Vibrant Urban Districts (Source: 'Common Traits of Highly Successful Downtowns," Gary Ferguson, Ithaca Downtown Partnership, 2005) 1. No single organizational model exists. While College Station can and, should learn from other medical district models in similar locations, the approach adopted in College Station will be distinctive to College Station. 2. Multiple traffic generators are within short walking distances. The medical district cannot be a single-purpose district. Visitors to and residents of the district will demand a variety of accessible activities including health, wellness, and recreational services, as well as dining, retail and jobs. 3. Great urban districts are beloved by their citizenry. Pride in the medical district must be diversity. 6. Great urban districts have a commitment to mixed-use development. Developers and investors are urged to build for and attract a range of occupants, business types and institutional services. Virtually by definition, the medical district will itself be a form of a mixed-use development, so this theme can be applied more broadly, too. 7. There is broad public/private investment in the future of downtowns and urban districts. Partnerships are essential for the private, public and non-profit realms. The medical district can and must demonstrate that public/private investments can achieve significant results, and should include a variety of private interests (developers, etc.), public leadership and non- profits such as a district steering committee or business association. 8. Entertainment is the driving market segment. Revitalized downtowns increasingly serve as places for dining and recreation rather than simply centers for retail merchandise. The medical district can be a leader in attracting and sponsoring public events (fairs, concerts, art walks, "healthy foods" farmers market, etc.) that instill interest in the medical district, eventually leading to a wide range of investments, 9. There is a prevalence of strong, adjacent residential neighborhoods that are within walking distance of an urban district. Respecting the existing area neighborhoods while establishing new residential neighborhoods is essential for the success of the medical district. Access to and from housing in the neighborhoods must be redesigned to encourage pedestrians into the medical district. 10. Housing is either prevalent or underway. The medical district must add a substantial amount of housing in addition to improvements in transportation and pedestrian routes. Such housing should appeal to the workforce in the medical district as well as seniors, include affordable options, and be walkable neighborhoods. 11. Colleges and Universities help, but are not the sole answer. Many of the medical districts studied are university towns, but the research found that universities are not automatic keys �gg , "M On to district vitality. However, research indicates that a strategic partnership with institutions of higher education is vital to medical districts, is an attraction for regional visitors and a source of well-trained labor for the entire area. Certainly this is true for all major medical providers in the College Station-Bryan market today. Texas A&M University is foundational to the development of a regionally competitive medical district. Additionally, the excellence of the College Station Independent School District is a major asset in the successful establishment of a medical district and is a key element in attracting medical professionals and organizations into the medical district. With these metrics in mind, a strategic model for establishment of a medical district in College Station and the broader community that leverages the characteristics of its existing strengths can be designed. Such a model, however, must be unique to College Station and must be supported by those who use or would use the medical district more actively, National Medical Corridors and Districts. Key Characteristics and Tenants Successful medical corridors and districts have been established in a wide spectrum of urban areas. Table 1 provides a sample of some of these districts. Approaches to urban revitalization success must be multifaceted, multidisciplinary, and holistic. Keep the puzzle pieces together! Source: Leland Consulting Group Dallas, TX University of Texas at Dallas 6,500,000 Houston, TX At least 15 Health related University Organizations 6,100,000 Philadelphia, PA University of Pennsylvania 6,100,000 Miami, FL University of Miami 5,547,000 Boston, MA Harvard Medical School 4,500,000 San Antonio, TX University of Texas at San Antonio 2,140,000 Oklahoma City, OK University of Oklahoma 1,253,000 New Orleans, LA Tulane University 1,236,000 Memphis, TN University of Tennessee 647,000 Aurora, CO University of Colorado Denver Anschutz Campus, VA 325,000 Birmingham, AL Univerity of Alabama 212,000 Tyler, TX University of Texas at Tyler, Texas College 210,000 Englewood, CO University of Colorado Denver 32,532 East St. Louis, IL University of Illinois 27,000 Bryn Mawr, PA Bryn Mawr College (Pre-Med) 21,000 Table 1. Successful Medical Districts, University Affiliation and Population Size Source: Leland Consulting Group, US Census Texas Medical Center Houston, Texas • World's largest medical center, 93,500 employees. • 1000 acres, • 14 hospitals and two specialized patient facilities. • 160,000 daily visitors, • 69,000 students, 5,000 of whom are international students. • 5.6 million annual patient visits. • 50-year Master Plan completed in 2006, • $7.1 billion in building and infrastructure investments approved between 2010-2014. • Annual Economic Impact— $14 billion. • Annual Research Expenditures $1.2 billion. Stemmons Corridor Southwest Medical District Study Area Dallas, Texas • Plan adopted 2010 (to be implemented through 2013). • TIE district. • 100,000 employees. • 5,000 businesses. • Biotechnology and medical services — key targeted industries. • Key healthcare providers and tenants: • UT Southwestern Medical Center. • Parkland Health & Hospital System. • Children's Medical Center. • Texas Woman's University School of Nursing. • 40 Hotels (Stemmons Corridor). • Planned expansion of clinical care and new research buildings. • Planned 350,000 SF biotech and life science research park. Texas Research Park - San Antonio, Texas • UT - Institute for Biotechnology. • UT - Institute for Longevity and Aging, • Biornanufacturing firms. • TEKSA Innovations Corporation. Source: Texas Medical District Source: City of Dallas Source, Urban Land Institute Special Report: Office/ Medical Development, 2008 I Oth Street Medical Business District Five Points Medical District Sugarland, Texas Oklahoma City, Oklahoma Birmingham, Alabama Key healthcare providers Recommended Development Program, 2006 to 2020: • Office: 450,000 to 800,000 SE • Retail: 130,000 to 175,000 SF, groceries, restaurants, bars, drug stores, household goods, gas stations, apparel, day care, bars. • Mid-size hotel: 200-250 rooms. • Residential: 1,500 to 2,000 units (average of 1,200 SF per unit). Key healthcare providers: • University of Alabama Hospital — 908 beds, • HealthSouth Medical Center — 73 beds. • HealthSouth Lakeshore — 100 beds. • Callahan Eye Foundation Hospital — 20 beds. • Children's Hospital Of Alabama — 310 beds. • Cooper Green Mercy Hosp — 141 beds. • Veterans Affairs Medical Center— 122 beds. • St. Vincent's Hospital — 372 beds. • Brookwood Medical Center — 602 beds. • Princeton Baptist Medical Center— 368. • Birmingham Baptist Medical Center -375 beds. • Select Specialty Hospital — 38 beds. • Hill Crest Behavioral — 80 beds. Key healthcare providers: • Memorial Herman Sugar Land Hospital — 77 beds. • Triumph Hospital Southwest— 170 beds. • Sugar Land Surgical Hospital — 6 beds. • Methodist Sugar Land Hospital — 127 beds. Source: 10th Street Medical Business District Development Strategy, 2006 Source: health.usnews.com Source: health, usnews.com College Station: Local Demographics and Healthcare Context The population and demographic trends at work in the City of College Station and its surrounding areas reflect the conditions under which a concentrated medical district would be expected to thrive. College Station is part of the College Station-Bryan Metropolitan Statistical Area (MSA, a US Census designation), and at a larger geographic scale, Texas' 'golden triangle," the super-region framed by three large metropolitan areas: Dallas-Fort Worth, Houston, and San Antonio. The Golden Triangle contains most of the economic engines that are powering the state's economy and population growth, Because of its location within the triangle and its own unique attributes, College Station is also experiencing rapid growth. As Figure 15 shows, the College Station MSA grew nearly 24 percent between 2000 and 2010, the sixth fastest rate in a fast-growing state. The City itself has grown dramatically, from a population of just over 52,000 in 1990, to an estimated 113,000 by the year 2020. All five of the major metropolitan areas in the Golden Triangle grew faster than the state average in the last decade. This population growth will surely drive demand for medical and healthcare services. The market area for the medical district, however, extends beyond the City's boundaries and even the officially designated metropolitan area. A market area is the area from which most patients and customers will come from and within which most of the medical district's competition will be found. The estimated market area for the medical district is approximately a 50-mile radius from the City (also shown in Figure 13). Those who live fewer than 50 miles from College Station will tend to come here for medical services, assuming that the medical district is competitive in terms of quality of care; those who live further away will tend to go to the city center that they are closest to. Obviously a number of intangible factors— Population Projedons -city of College Stage, -College Siatl­-Bryan MSA 208258 195,410 • .......... g X 0 E P Figure 13. College Station and the Golden Triangle Source: ESRI, Leland Consulting Group Senior Population and "Old Aggies" As discussed above, the other primary driver of healthcare demand beyond raw population growth is the rate of growth amongst the senior population. Here, as well, demographic trends point towards increasing demand for medical services. Table 2 shows that, while there are 4,000 residents of the City of College Station who were 65 or older in 2010, 62,000 residents (or 12 percent) of the 50 -mile market area are seniors. This is a far larger group, in terms of share and total numbers, than the City's population alone, and indicates a large population of aging seniors. This group is also growing, and will represent 28 percent (nearly 12,000 new seniors) of the total population growth in the market area in the next five yea rs. The consultant team's research and interviews support the story told by the Census data. Those interviwed consistently stated that "lots of 'Old Ags' are moving back to town" to reconnect with their old friends and community. Old Ags are certainly potential patrons, for the medical services in the medical district, as well as the residential and retail components. A story from 2007 in The Eagle stated that, "Many senior citizens consider Brazos County a retirement haven because of Texas A &M, the region's medical facilities and its friendliness. And Texas overall— partly because of inexpensive housing relative to many other states and partly because it has no state income tax —is popular with retirees, ranking No.2 among the 50 states as a retirement destination. The Kovars, both 63, had a long history with Texas and Brazos County. They met at A &M, where Gary Kovar was a guard on the football team. They married while still in school, and when he retired after 35 years with Amoco Chemical Co., they moved back to Aggieland.' Retirees like Bryan - College Station due to A &M, healthcare, social life" The Eagle, December 16, 2007. r 111 t 1 Austin -Round Rock -San Marcos McAllen- Edinburg - Mission Laredo Houston-Sugar Land-Baytown San Antonio -New Braunfels College Station -Bryan Dallas -Fort Worth - Arlington Killeen- Temple -Fort Hood Brownsville- Harlingen State of Texas Tyler Midland El Paso Lubbock Odessa Longview Amarillo Waco Sherman - Denison Corpus Christi San Angelo Texarkana Victoria Abilene Beaumont -Port Arthur Wichita Fails Figure 15. Growth Rate of Texas Metropolitan Areas, 2000 - 2010 Source: Texas State Data Center, Leland Consulting Group 0% 5% 10% 15% 20% 25% 30% 35% 40% Another important demographic feature of the College Station area is the tremendous number of young, college age residents. As Table 2 shows, approximately 48 percent of the City's population is between the ages of 0 and 24, while this percentage is only 40 percent of the 50-mile market area. The percentage of college age residents in College Station is said to be among the highest in the nation, and is certainly one of the highest in Texas. Historically, this high percentage of younger residents has been one of the reasons that the number of hospitals and healthcare-related uses has been lower than average on a per-capita basis—younger people need less care than older people. However, the percentage of the population that is over 65 is expected to grow over time, reaching 13 percent in the City by 2030, as opposed to the eight percent of the population that was over 65 in 201 The 50 mile market area is expected to have even more seniors, reaching 17 percent by 2030. As is happening nationally, this regional shift to an older population will create more demand for healthcare, Housing Demand Based on existing and projected demographic trends, there is expected to be demand for approximately 10,100 new housing units of all types within the College Station-Bryan MSA. This amount of demand will help to gauge the potential demand for housing in the medical district, outlined in the Development Program. This is based on population growth of over 25,000 in the MSA, and the City's expected average housing size of 2.5. This is a rough projection of demand, since housing can be provided in many forms, ranging from student housing, to single-family housing to a variety of senior housing. These housing types are explored in greater depth in Chapter 4 – Development Program. As shown in Figure 16, College Station grew at a faster rate than Bryan over the past decade and is expected to continue this trend. Therefore, it is reasonable to assume that College Station will capture a greater share of the projected housing demand for the College-Station-Bryan MSA than will the City of Bryan. College Station Healthcare Environment College Station and Bryan already serve as the focal point for healthcare services within the market area. There are two large-scale, established general medical Table 2. Population of College Station and 50-Mile Market Area by Age Group Source: US Census, ESRI, Leland Consulting Group Figure 16. Growth Rate and Population of College Station and Bryan 2000 -20 - Source: Census Bureau, Leland Consulting Group 1, I ­­­ Iss "I "FE 7 7 M N 'M\ 3� gffil\ M M Wn M, Offi W Z12ET,11 hospitals, College Station Medical Center (The Med) and St. Joseph Regional Health Center (Bryan), The new Scott & White Hospital is currently under construction at the intersection of SH 6 and Rock Prairie Road in College Station. In addition, two new healthcare-related institutions are expected to grow rapidly in the College Station-Bryan area: Texas A&M University's Health Science Center (HSQ and Research Park. Supplementing these major facilities and institutions are an array.of physician's offices, pharmacies and small local clinics that serve nearby neighborhoods. A medical district has already begun to take shape in the vicinity of SH 6 and Rock Prairie Road. This has long been the site of The Med (approximately 150 beds), which will be joined by the new Scott & White Hospital (projected capacity of 143 beds upon completion). The Med, with 21 active physicians, was founded in 1931 as an acute care hospital and moved from Bryan to College Station in 1997. Through construction of additional floors on the existing building, The Med could accommodate as many as 250 total beds. The two hospitals form the nucleus of a medical cluster, or medical district, and are complemented by a range of other "supporting uses" such as medical office buildings, pharmacies and physician's offices. In their own way, the existing retail, housing and parks are also supporting uses. St. Joseph Regional Health Center's main campus in Bryan has 310 beds. Their outpatient facility in College Station is located on 27 acres at William D. Fitch Parkway and SH 6. The St. Joseph outpatient facility is outside the study area, however, St. Joseph is an important institution and part of the College Station medical community. In 2010, approximately, 24,000 College Station residents chose St. Joseph for their outpatient care while 2,951 residents used St. Joseph for inpatient care. The Physicians Centre Hospital is also located in Bryan, but has only 16 beds and is not considered a full service hospital. The medical facilities that are currently on the ground or under construction show that the private market is already confident that a medical district is feasible. Thus, the questions for the future really revolve around not if the medical district will happen, but how and at what scale. In other words, what are the scales of medical and related non-medical uses, the time frame for development, qualities of the physical environment and how can new facilities be introduced without creating excessive competition for existing providers? In planning for future medical facility expansions and additions, the College Station medical community and the City should carefully review the area's competitive position vis-a-vis other areas— particularly larger metro areas such as Houston and Austin. The City's healthcare institutions can and should be able to offer general hospital/medical and acute care facilities that are every bit as good as those in larger metro areas. However, in some specialty care areas—for example, oncology, cardiology and gastroenterology—local institutions will have trouble competing directly and should offer these services through strategic relationships with larger, regional specialty healthcare providers. This dynamic is explained in greater detail in Chapter 4 -Development Program, m ��n& R IN A development program is a narrative description of how a property or area should be developed. The program serves as a guide to the physical planners (land planners, landscape architects, architects and engineers) who are responsible for translating the narrative program into a physical land use, transportation and utility plan. The development program describes an overall identity for the project including theme, image and attributes to be merchandised; the overall objective is to capture target markets, maintain economically viable conditions, and create a positive, long-term identity for the project. Product and amenity opportunities are based on the research and analysis of markets for the project—all of which should be simultaneously pursued for the purpose of accelerating project sales and mitigating absorption risk. Programming includes identifying and formulating alternative concepts for the master plan, including: Development theme and character. Timing and phasing. This development program is intended for an approximately 10- to 20-year period. However, some uses will develop before others. Land uses by type, including a wide range of medical and non- medical components. Land use mix, uses. Likely amounts of medical and commercial uses (measured in square feet) and housing (measured in dwelling units). Recommended amenities. Forecasting in the Fog: The Past and the "New Normal" Making accurate long-term development projections has never been easy. But it is arguably more difficult now than ever before, given the dramatic changes to the nation's economy and real estate markets that have taken place over the past four years, and the ripple effect this has had on consumer preferences and demand for housing, retail space and other components of the built landscape. and exactly what the 'new normal" will be. Some markets—defined geographically or by real estate product type—will fare much better than others. For example, the apartment market is in most cases seen as a more desirable area for investment at the moment than single-family homes—which are in most areas overbuilt. Figure 18 illustrates the difficulty of "forecasting in the fog:" pre-crash data shows a red-hot market in which all real estate products—ranging from single-family homes to commercial real estate— were funded and leased quickly, while post-crash data shows just the opposite. Neither can be relied upon to accurately predict long-term trends, and thus, determining the precise pace or timing of redevelopment in College Station and most other markets is very difficult. The future market realities are almost certainly somewhere between the 2007 peak and the current trough, This principle is likely to be true with respect to measurements such as annual housing starts, commercial real estate absorption, rent and lease rates and other metrics throughout the College Station market area. However, the downturn and eventual upturn— expected in 2011, 2012 or potentially later—will be "lumpy". Traditional lending institutions are hesitant to make loans to developers, and when they do, the parameters of the loan are often prohibitive. Many households have seen serious wealth depletion, as much of the household worth depends on the value of single-family homes, access to home equity loans, retirement accounts and other funds related to the value of financial markets. No one knows when these forces will return to a state of normalcy Similarly, in retail, some stores will fare better than others or even be more profitable than before. Sales among fast casual restaurants are up. Movie theaters are generally doing well as consumers redefine leisure as dinner and a movie rather than a week long vacation abroad. In summary, College Station should take a long view of real estate redevelopment, hope for the best but also plan to be patient with the still-struggling economy. Successful Programs are Market-Driven The master plan, which can expect successful implementation, must address, to the extent possible, the goals of the City. The additional and equally rigorous layer of considerations that impact the program consists of: WOON" - agpsw , -, , , , g , - " , " ag M w %Vll AM I� R , W\ Ml,_O 00 110 "i" sail Figure 77, Medical District with Land Use Concentrations Source: Leland Consulting Group, SRA, Townscape Figure 18. Forecasting in the Fog Source: Leland Consulting Croup • Market willingness to seek out medical services, housing, shopping or leisure activities, or other products and experiences in the physical environment to be developed. • Market capacity to pay either through equity, debt service, rents, home ownership or commercial rents. • Lending and loan underwriting policy and criteria. • Achieving reasonable levels of profitability commensurate with risk to attract private development capital to the study area. • Establishing an arrangement of land uses which can be successfully introduced in the marketplace with sufficient velocity (rate of sales) to generate revenues adequate to cover or partially cover the cost of infrastructure both on-site and off-site. Hence, all development strategies must thoughtfully consider the needs of the potential employers, residents, and shoppers who will come to the district. These considerations include price, size, quality levels, image, quality of life and other factors. Development Identity and Character Preparing a development program for the medical district begins with establishing a statement of the recommended overall identity and character for the project. This statement of the project should be adopted by the medical district leadership and organization. It is analogous to the mission statement in a business plan. It is the guiding statement against which later program details can be "tested" for compliance in support of the overall theme. The recommended program is for a medical district and mixed-use community, as illustrated in the following graphic. Exceptional Medical Care This is the key differentiating feature of the district and the set of uses that will drive its success. Exceptional medical care currently brings substantial numbers of patients and employees to the district every year, and will continue to do so in greater numbers in the future. These visitors then make up the market for the other uses and activities in the medical district, including the "village center" retail, office space, housing and parks. It is absolutely critical to the long-term success of the district that residents of the College Station market area believe in the quality of care and receive the best care possible. The land use components of medical care include hospitals, specialty and subspecialty clinics (such as children's medicine, oncology, mental health, etc.), medical office buildings, pharmacies and medical suppliers, research and development, and education and university related uses. Not all of these uses must be on site at all times. For example, The Med currently has relationships with certain specialty doctors who are only in College Station on a part- time basis, since the market is not big enough to sustain those who focus on specific and relatively rare procedures. Thus, some services can be offered through outsourcing or even off-site relationships. A Special Place and Destination The Texas A&M campus is one example of a special place: A place that people return to time and again to enjoy experiences with friends and family, that evokes memories, emotion and attachment. On the Texas A&M campus, experiences include sporting events, reunions, military services, etc. The medical district will of course have a different look, feel, and identity than the A&M campus, but it should establish a sense of place and, in doing so, create a means by which it can differentiate itself from its competition. This will help it to attract patients, doctors and residents because of a natural desire to spend time in high-quality environments. Research completed by Texas A&M and the Center for Health Design shows that quality of place matters. According to one in a series of articles and presentations authored by professor Leonard L. Berry of Texas A&M and his colleagues: - The buildings in which customers receive services are inherently part of the service experience The evidence indicates that the one-time incremental costs of designing and building optimal facilities can be quickly repaid through operational savings and increased revenue and result in substantial, measureable, and sustainable financial benefits.' ("The Business Center Case for Better Buildings,' Leonard L. Berry et, al., Healthcare financial Management, November 2004.) ... .. . . " Man K ", 110 41,40ii; This analysis is consistent with real estate research completed on the relationship between the quality of the built environment and the price that customers or residents will pay to be there. (Source: - The Business Case for Better Buildings,' Leonard L. Berry et. al., Healthcare Financial Management, November 2004. See Valuing the New Urbanism: The Impact of the New Urbanism on Prices of Single-Family Homes, Eppli, Mark J. et al, Urban Land Institute, 1999, and Back to the Future: The Need for Patient Equity in Real Estate Development Finance, Brookings Institution, 2007. The capital costs of high-quality development are also usually higher, but as these analyses show, this is offset by higher revenues when implemented properly) "Place making" can be achieved through a "village center" or active central place for commerce and social functions, design of signage, gateways and entrances, streets and sidewalks, street lighting, common architectural themes, consistent imagery, graphic design and other features. Holistic Wellness The medical district has the opportunity to incorporate aspects of health and healthcare that extend beyond the walls of its hospitals and clinics— through health and fitness clubs, walking and biking paths, restaurants that emphasize healthy eating, ball fields, yoga studios, plazas, open spaces and many other features. An example is The Med's current partnership with Aerofit Health and Fitness that will result in a new fitness center just south of Rock Prairie Road. The American public is, today, broadly interested in a definition of health and well-being that is much broader than medicine alone. By incorporating and integrating health and wellness broadly into the medical district, and by demonstrating this approach through the area's physical design, the City and its partners can enhance the district's brand, improve people's connection to the place, and increase revenues and economic viability. Great Neighborhoods: Housing Options for Seniors, Medical Professionals and Families Two key groups—senior citizens and medical professionals—will have a distinct interest in living close to the medical district. Seniors have a demonstrated propensity for living in close proximity to quality medical care, and people tend to seek housing that is within easy access to their jobs. This suggests strong demand within the medical district for both senior housing—which includes a "continuum of care" that ranges from independent living, to assisted living, to skilled nursing facilities—and a wide range of housing for medical professionals. The types of housing sought by medical professionals w i l l also be very broad, and may range from large-lot, single-family homes, to urban-style condominiums within walking distance of the hospitals. Making these housing options available will enhance the value proposition of the medical district and its potential for long-term success. The medical facilities • Existing Hospital-sand • Retail ] expansions General, Office • Medical Office Buildings Hotel and confe will benefit from a consistent base of patients, and find it easier to attract the best doctors, nurses and technicians if great neighborhoods are located nearby. Finally, this population will also help the village center retail component to thrive. Medical and Supporting Uses As shown in Figure 19, the medical district can be generally divided into major use areas: an existing and expanded medical core and a large area of supporting uses. However, both areas--core and periphery—will include a mix of medical and non- medical uses. The types and locations of these uses are summarized in Figure 19. Land Available for Development The study area for the master plan is several hundred acres in size. This total area includes some areas that will remain as-is for many decades, areas that are vacant and are expected to develop and some smaller areas that are already developed but are expected to redevelop within this development program's time frame. space Plazas, pathways, parks, and other public spa,ces Figure 19. Medical and Supporting Uses Source: Leland Consulting Group Senior Housing o Independent Living o Assisted Uving a Skilled Nursing Facility Singe-Family Detached and Attached Housing • Neighborhood retail "k "we ..... . .. ...... . .... M M Table 3. Gross and Net Developable Areas (based on intial study area) Source: Leland Consulting Group As Table 3 shows, there are approximately 534 net developable acres within the intial study area that can be reasonably expected to develop within the next decade or beyond. Because of the inherent uncertainty associated with large scale, long-term development (see the "Forecasting in the Fog" section) this area could build out in more or less time. A number of considerations and inputs influence this land development analysis: East and West sides. A considerable amount of land is currently vacant—most of it on the east side of SH 6. The east side of SH 6 is best suited for large-scale development, especially for residential communities; however, significant amounts of medical and supporting commercial uses will be clustered along Rock Prairie Road, particularly close to SH 6. The west side of SH 6 will also accommodate a mix of uses; however, these are more likely to be "infill" opportunities. Because of their close proximity to The Med and other established uses, there is a more immediate opportunity to create an urban core or village center for the medical district on the west side. Right of Way. The amount of land needed for right-of- way (ROW), open space and other public areas varies considerably, particularly in contrasting "developable pads" that are already surrounded by urban streets (west side) versus large parcels that still require a network of local streets to be built through them (east side). Thus, on the east side, a greater percentage of the total area must be deducted for ROW and public space, Expansion on The Med and Scott & White properties, The Med and Scott & White hospitals have additional capacity to expand their services on their existing properties—particularly Scott & White, whose primary property is approximately 99 acres. Some new development (to be planned and completed by the hospitals themselves) can take place here. Constrained/Public Uses. Some properties are considered undevelopable (parkland) or are considered undevelopable pending further site- specific analysis (landfills), Redevelopment. Some properties—particularly those that are not highly improved or that experience large increases in visibility or traffic due to the expansion of the medical district —are likely to redevelop. Development Program Table 4 shows the development program for the medical district at full build out, including land uses by area, density and development quantity. The time frame for this build out is generally 10 to 20 years, with the speed of absorption to be determined by a number of factors including the national and local economies, demographic patterns such as the in- migration rate of seniors to College Station, timing of regulatory approvals, lending environment and other conditions. Medical and Healthcare Uses Hospitals As shown in Table 5 and Figure 20 there is a significant undersupply of hospital facilities (measured in hospital beds and physicians) in the College Station MSA in the longer term. While this undersupply is only modest from the perspectives of the short term of the College Station- Bryan MSA alone, it becomes quite significant when viewed from the perspective of the entire 50-mile market area and over the long term. (For the purposes ", ..... .. . .. -, ...... . ..... .. -, a 6, 87 East Side . .... . ....... Subtotal 667 . ........ . J ...... . .. ...... Pedi Uses: Existing pindPlann ........ . .. . . ..... ....... .. ..... ..... ..... .. .. ........ . . The Med ... . . . . .. f . ... . .. .... .. ..... SQott &White 99, 50 . ..... . 49, Subtotal 1251 .......... . ....... ......... . . . ........... 54 �Gonstrainecl[Public Uses 245 NA Re,develloprmnt .. . .......... 25: . .. ........ Total IO,35 y ....... ...... ............ . ............... 534 Table 3. Gross and Net Developable Areas (based on intial study area) Source: Leland Consulting Group As Table 3 shows, there are approximately 534 net developable acres within the intial study area that can be reasonably expected to develop within the next decade or beyond. Because of the inherent uncertainty associated with large scale, long-term development (see the "Forecasting in the Fog" section) this area could build out in more or less time. A number of considerations and inputs influence this land development analysis: East and West sides. A considerable amount of land is currently vacant—most of it on the east side of SH 6. The east side of SH 6 is best suited for large-scale development, especially for residential communities; however, significant amounts of medical and supporting commercial uses will be clustered along Rock Prairie Road, particularly close to SH 6. The west side of SH 6 will also accommodate a mix of uses; however, these are more likely to be "infill" opportunities. Because of their close proximity to The Med and other established uses, there is a more immediate opportunity to create an urban core or village center for the medical district on the west side. Right of Way. The amount of land needed for right-of- way (ROW), open space and other public areas varies considerably, particularly in contrasting "developable pads" that are already surrounded by urban streets (west side) versus large parcels that still require a network of local streets to be built through them (east side). Thus, on the east side, a greater percentage of the total area must be deducted for ROW and public space, Expansion on The Med and Scott & White properties, The Med and Scott & White hospitals have additional capacity to expand their services on their existing properties—particularly Scott & White, whose primary property is approximately 99 acres. Some new development (to be planned and completed by the hospitals themselves) can take place here. Constrained/Public Uses. Some properties are considered undevelopable (parkland) or are considered undevelopable pending further site- specific analysis (landfills), Redevelopment. Some properties—particularly those that are not highly improved or that experience large increases in visibility or traffic due to the expansion of the medical district —are likely to redevelop. Development Program Table 4 shows the development program for the medical district at full build out, including land uses by area, density and development quantity. The time frame for this build out is generally 10 to 20 years, with the speed of absorption to be determined by a number of factors including the national and local economies, demographic patterns such as the in- migration rate of seniors to College Station, timing of regulatory approvals, lending environment and other conditions. Medical and Healthcare Uses Hospitals As shown in Table 5 and Figure 20 there is a significant undersupply of hospital facilities (measured in hospital beds and physicians) in the College Station MSA in the longer term. While this undersupply is only modest from the perspectives of the short term of the College Station- Bryan MSA alone, it becomes quite significant when viewed from the perspective of the entire 50-mile market area and over the long term. (For the purposes ", ..... .. . .. -, ...... . ..... .. -, a 6, of this report, the short term is considered to be the next five years, medium term from five to 10 years, and long term from 10 to 20 years.) This is both an important community issue for the area and a significant market opportunity. As of 2013, there will be approximately 636 operating hospital beds within College Station and Bryan, including the Scott & White Hospital now under construction and an expansion underway at the Med. (Source: The number of hospital beds projected is as follows: College Station Medical Center, 167; Scott &White, 743; St. Jospeh, 310; Table 4. Medical District Development Program Source: Leland Consulting Group. Some figures may not sum correctly due to rounding (based on intial study area) Physician Centre Hospital, 16.) Presently, the existing hospital bed supply is operating at or near full capacity even as some residents look elsewhere for their medical needs, especially in specialty care. As the population continues to grow and age, this supply will become more obviously inadequate just as the supply of quality senior housing is becoming more obviously inadequate. The need for future medical facilities can be assessed in several ways and should take into account several factors. The primary factors influencing a projection of medical services include population size, industry Two frequently used metrics for forecasting hospital and medical facility demand are hospital beds and physicians per 10,000 residents of a given area. The current national average is 31 hospital beds and 27 physicians for each 10,000 residents. (Source: Kaiser Family Foundation, wwwglobalhealtlifacts, orgldataltopiclmap.aspx?ind=78.) On average, the Texas healthcare industry has built somewhat fewer beds per 10,000 residents, but the standard varies significantly between healthcare-intensive cities and rural areas where healthcare services are less accessible. The Houston and San Antonio regions have approximately 45 beds per 10,000 residents and are known nationally and internationally for the reputation of their respective medical districts. Given the evolving characteristics of the College Station MSA and market area, an increase in medical services and concomitant bed-count can be viewed as both reasonable and responsible public policy, standard measures of services needed, age of the population and presence of other medical demand- drivers, and other market characteristics, As explained in Chapter 3, age is a major factor that has a very significant impact on the demand for medical care and hospital facilities. Senior citizens over the age of 65 require more than three times the number of physicians as those in the 25 to 44 age group. The percentage of senior citizens within the market area is anticipated to nearly double from 62,000 today to 120,000 in 2030. As the market area's population ages in keeping with national trends, and there is no rational basis for supposing College Station can or will avoid these trends, demand for hospitals and healthcare services will grow significantly, College Station's ratio of hospital beds has clearly been low historically and comparatively due to the large percentage of college- age residents. And while this will, of course, continue to be an important part of the region's demographic character, hospital demand should move back into line with state and national averages in the coming decades. The projections in Table 5 and Figure 20 were developed based on the factors outlined above: the market area's growing and aging population, and industry standards for required hospital facilities. The need for hospital facilities has been adjusted to account for the ages of populations served. This analysis shows a gap of almost 700 beds in 2015, and more than 1,000 beds by 2030. While significant new facilities will be needed throughout College Station and Bryan, and in the medical district specifically, much of the growth within the medical district should be able to take place on property already controlled by the Med and Scott & White. Figure 20. Elderly Living in the Community, by Type of Care Source: Long Term Care in America, National Commission for Long Term Care, 1999; Leland Consulting Group Table 5, Senior Housing Demand in the Market Area and Medical District Source: Department of Health and Human Services, US Census, Leland Consulting Group Medical Office Building Medical office buildings (MOBs) typically include routine and preventative care facilities such as physician's offices, dentists, opthamologists and various other providers. MOBS have many of the same locational requirements as typical office buildings such as easy access for clients; proximity to support services such as food, hotels, labs and medical suppliers; ample parking; and access to intra- and inter-regional transportation connections such as freeways, high capacity transit and airports. However, MOBS usually require a higher degree of technology and services, such as advanced computer systems, greater number of plumbing fixtures,and a higher standard of air quality and purification than typical office buildings. Specialty Healthcare Specialty healthcare includes specialists in cardiology, oncology, OBGYN, mental health and other fields that cannot be completely addressed within a single general-care hospital. These specialty services can be offered in multi-tenant or single- tenant clinics, or on a contract basis within the existing hospitals, in addition, medical hardware suppliers and other support facilities are likely to locate in the medical district in the future. Research and Development Research and Development (R&D) facilities can be comparable to office buildings, flexible warehouses, or industrial properties depending upon the type of research being conducted. Often they need both types of facilities: an office in which to develop and market concepts and a lab or production room to conduct experiments and fabricate prototypes. Like MOBS they require a greater level of technology and often have higher energy and water consumption. They also require a greater level of security, as products may be in a highly secretive phase of development. R&D facilities benefit from proximity to universities and large research hospitals for prospective employees as ideas spin off from research conducted at these institutions, g g� 6W N N .rte g 'g �'mqgpas a Oggg 'g WN gl, gg"p "Ap g g g pffi ININ-10- M. ffi _10 • Manageable competitive environment. Most retailers will avoid an area if competitors are already located there. • Demographic match. Retailers choose sites located near their 'target market" customers. • Anchor tenants, Retail developments are often , anchored" by one tenant (for example, a high- profile department store) who then attracts other tenants. • Sense of place, safety, cleanliness. • Contiguity. Urban retail must be continuous, or many shoppers will stop and turn back. • Parking capacity. A village center with a strong retail component could thrive within the medical district. Retail provides activity and amenities to the residents, employees and visitors of the medical district. Retail is the "theater" that will entertain visitors and create a sense of place, making the medical district more desirable for residents, visitors and employees of the area. Requirements for Success: • Visibility. Thousands of customers must pass and see the site on a daily basis. Daily traffic volumes of approximately 20,000 are desirable for most national retailers. SH 6 running through the medical district has daily traffic counts of 60,000 at the intersection of Rock Prairie Road. • Accessibility. Must be very easy to get to; daily- shopping or convenience retail should be on the "way home" (right) side of the street. • Central location vis-a-vis target markets. For example, grocery anchored centers should be within approximately one mile of 10,000 residents. Experience from other medical corridors shows that additional hotels and conference space will be needed in this medical district to accommodate visiting families, patients, and doctors. Requirements for Success: • Visitor amenities and attractions. • Easy access to major thoroughfares. • Co-location with other hotels. • Visibility. • Parking capacity. Office Office uses would be an excellent addition to the medical district as they would provide daytime activity to the area and are compatible with the other uses being proposed for the area. Requirements for Success: • Easy access to and from clients, • Accessibility to workforce and executive residences; offices tend to be sited near the center of metro regions or at major transportation hubs. "Address status." • Proximity to suppliers and collaborator firms. • Parking capacity. • Proximity to support services: banking, food, hotels and other services. • Access to intra- and inter-regional transportation connections such as freeways, high capacity transit and airports. Q,"'R o " p, A ✓ , i �, a kw ng a r i � w , a a IN I � im W Supporting Uses: Senior Housing Stakeholder interviews and research indicate strong recognition of the need for more senior housing and Long Term Care (LTC) facilities in College Station, Given the significant increases in the College Station over-65 age group over the next 20 years, and the likelihood of significant influx of retirees, the consultant team has estimated the level of senior housing demand. in the decade between 201 and 2020, the number of residents of the City of College Station who are over the age of 65 is expected to increase by approximately 5,000, from 17,500 to 23,400. In the 50-mile market area, this demographic group is expected to increase by approximately 22,000, from 62,000 to 84,600. See Table 2 in Chapter 3 — Healthcare Trends and Regional Demographics for details. The facilities listed below show the typical range of senior housing, all of which are appropriate in Independent Living Multi-unit complex marketed to seniors. Rent premium of approximately 10 percent (above other equivalent multifamily units) for, communal dining, housekeeping and transportation services. Source: wwivasla.org.20 70avvards-564.html photo varying quantities for the medical district. In addition to the categories shown below, continuing care facilities offer the full range of these senior housing types within a single large development. This allows residents to "age in place" and move easily from one housing type to another as their medical needs or preferences change. Continuing care facilities typically require a long-term contract from residents with an initial down payment, whereas the stand- alone facilities are often contracted on a monthly basis. Senior housing differs from other housing types in that it is not only a real estate investment, but also involves a hospitality and health care component that must be considered when operating the facility. The following sections evaluate the amount of senior housing likely to be in demand within the medical district. Demand for senior housing will come from two primary sources: latent demand and the net new senior population moving to the area. Assisted Living Support services include laundry, food service, arranged activities, limited medical oversight and assistance to those with physical impediments such as blindness or decreased mobility. Source: wwwlakewayjoseyranci7.com Latent Demand Interviews with College Station residents and those in the healthcare industry strongly indicate that while there are thousands of senior residents of the city and surrounding areas, there is very little senior housing within the City itself. Many seniors reported having to move out of the City in order to find a senior community that met their expectations. Thus, there is expected to be latent demand for senior housing in the market. Up to 420 units of senior housing could be quickly absorbed within the medical district if facilities were provided for a mere five percent of the over-65 population found in College Station- Bryan MSA in 2010, as shown in Table 3. This is a conservative estimate that does not take into account any seniors currently living outside of the area who would like to relocate, but have been unable to find a suitable location. With an aggressive marketing campaign the initial absorption could be even higher. Source: www.mirabellaassistedliving,com rgggg% g 0 W m ­0 MM"I" 'gg-,A asm n n / ' 100 M 011.1 M aw Skilled Nursing Facilities designed to provide 24-hour care and intensive medical attention. Staff assists residents with daily tasks such as bathing, dressing and other needs. Net New Senior Housing Growth Besides the latent demand to meet the need of seniors already living in the community, there will be a continued need to supply senior housing facilities to those who will be turning 65 over the coming decade. The primary market area, or the 50-mile radius, is projected to increase from 62,000 people over age 65 in 201 to a little over 84,000 by 2020. This is an increase of 22,000 people who will need varying levels of specialized care. As shown in Figure 21, nearly 47 percent of seniors live in some type of independent living facility. If the medical district were to capture 10 percent of these new households, there would be a need for 680 independent living units by 2020, as shown in Table 6. This can be further broken down by number of units projected for the medical district by other facility types. Given the medical district's unique position in the region, this significant capture rate is reasonable. Figure 21: Elderly Living in the Community, by Type of Care Source: Long Term Care in America, National Commission for Long Term Care, 1999; Leland Consulting Group While it is true that LTC facilities and assisted living facilities may be located anywhere in the primary market area, those facilities located closer to the community hospitals are more attractive to the senior population for obvious reasons. Planning for the medical district should take into account adequate land reservation for senior housing proximate to or in the medical district. According to the National Commission for Long Term Care, 28 percent of seniors prefer to remain in their homes or to live with family members rather than move to a senior housing facility. Seniors with a preference for living in unaffiliated private residences will most likely not be captured in the medical district and are not included in the senior housing demand projection. R g ffl g 0 , Table 6: Senior Housing Demand in the Market Area and Medical District Source: Department of Health and Human Services, US Census, Leland Consulting Group Supporting Uses: Single - Family and Multifamily Housing As previously stated, the housing market in College Station and other locales in the state has changed significantly over the past several years. In contrast to the middle of the last decade, the best selling houses in College Station are smaller (1,500 to 1,800 square feet) and considerably less expensive ($150,000 to $300,000 maximum). Some houses priced in the $400,000 range have been sitting on the market for more than two years. The core of the short -term housing market is seen as those seeking affordable homes and downsizing retirees who have moved out of large homes and are now looking for comparatively smaller and lower- maintenance homes, including "cluster" or "cottage" communities. Both trends are well suited for the medical district. Requirements for Success • Critical mass: adjacent residential neighborhoods and urban amenities (schools, parks, retail, and services). • Safety. • Large share of one and two person households within market area. • Easy access to employment centers. e, garage or tuck under parking a :Leland Consulting Group Cluster or Cottage Housing 10 to 25 du /acres, 1 to 2 stories Surface parking Source:Leland Consulting Group Mixed Use Mid -Rise 40 to 60 dulacre, 4 to 6 stories Structured parking Source:Leland Consulting Group Single - Family Housing' 5 to 70 dulacre, 1 to 2 stories Surface parking Source: Istockphoto.com 15 to 25 dulacre, 2 to 3 stories Surface parking or parking within each unit Source: Leland Consulting Group