Urban Renewal and Economic Development Committee

Regular Meeting

Charleston, WV · September 23, 2020

Minutes

MINUTES URBAN RENEWAL AND ECONOMIC DEVELOPMENT COMMITTEE MEETING 12:00 P. M., SEPTEMBER 23, 2020 A/V CONFERENCE ROOM Brent Burton, Chair, called the meeting of the Charleston City Council Committee on Urban Renewal and Economic Development to order at 12:00 p.m., SEPTEMBER 23, 2020, in the Audio/Visual Room in City Hall. Committee Members Present: Brent Burton, Chair Tiffany Wesley-Plear, Vice Chair Brady Campbell Adam Knauff Chuck Overstreet Jennifer Pharr (arrived after approval of minutes) 1. Approval of Previous Minutes – Councilmember Wesley-Plear moved to approve the minutes of the previous meeting on 2-6-2020. Councilmember Overstreet seconded. There was no objection and the minutes were approved. 2. Presentation on the 2020 Downtown Charleston Housing Study ‐ Charleston Area Alliance (Susie Salisbury) & Bowen National Research (Patrick Bowen) - Councilmember Burton introduced Patrick Bowen from Bowen National Research and Susie Salisbury from the Charleston Area Alliance. He added that CAA hired Bowen to conduct a housing needs assessment of Downtown Charleston. Salisbury added that the update to the 2015 Downtown Housing Study was just completed, with a focus on Market Rate Housing to include rental and for-sale housing. CAA partnered with the Greater Kanawha Valley Foundation and United Bank for the study. Councilmember Knauff stated that since there was an economic study for Downtown went pretty far into the West Side, what was what was the basis or rationale for the most recent study. Salisbury added that the study was stretched over to Maryland Avenue as much of the “flats” are considered Downtown to include people looking for market rate housing. Bowen added that the inclusion of a few blocks won’t materially affect the conclusions of the study. Additionally, the study in 2015 looked at the entire spectrum of housing, while the current study focuses on Market Rate Housing. Highlight’s of Bowen presentation:  The study examined a large economic demographic, housing supply information (historical and current), transportation, parking, crime etc. that would affect why someone would choose to live Downtown or not. Additional information was gathered from an online survey. Case studies were performed on 4 other communities that examined downtown housing markets at different price points.  Showed how Downtown has historically changed from the rest of the City (with a stabilized growth). If nothing is done to encourage economic and housing growth, the area will start to lose additional households over the next 5 years. Age groups 65+ are expected to grow a lot, which points to an increased demand in senior housing.  Changes to housing by income are projected to increase in middle to upper income renters. Homeowner growth is expected in households with the highest incomes. Multi-family apartments have a 96.1% occupancy rate (the ideal is 94-96%). The City overall needs additional Market Rate Housing. Premium rates for rentals occur the most for 1-2-bedroom apartments. It is possible that there will be an increased demand for 2- bedroom apartments. There is a high demand for high-end rentals.  Most non-conventional rentals (single-family home, duplex, etc.) are priced at a premium.  For-sale housing is stable with price points slowly increasing. Average days on market is 80 days, which indicates a good level of demand.  The Downtown market is at a competitive disadvantage (older, smaller square footage, less choices, etc.).  Commuting patterns show that 80% of the workforce does not live in Charleston. It is likely many of those people would be open to living Downtown if their requirements are met.  There are 2 Qualified Opportunity Zones in the Downtown area that provides incentives for developers.  Downtown case studies show similar cities to be Altoona, PA, Lancaster, PA, Huntington, WV and Chattanooga, TN. Projects in the downtowns of the cities added to their vibrancy, helped employers attract and retain employees, contributed to urban renewal, etc. It also included construction costs, uncertainty with downtown living, etc. The studies show that housing built downtown with the right product and the right price will be successful.  Recommendations: network and reach out to groups and developers to promote opportunities, more nightlife and retail opportunities are needed and encourage public/private partnerships. Councilmember Knauff confirmed that the study suggested that the focus be to smaller development rentals and away from condo units. Bowen added that while condos would be beneficial, the steady shift will be to smaller apartment rentals which will lead to bigger projects. Councilmember Wesley-Plear asked how much of the non-conventional housing is located on the West Side. Bowen replied that they didn’t break it out into geography beyond the Downtown area as opposed to the rest of the City. He added there is a map in the study. Councilmember Wesley-Plear asked if the housing around the King Center or Washington Manor were included. Bowen replied that the index in the back of the survey listed every project that was surveyed, but he did not know from memory. Salisbury added that the townhouses in front of Washington Manor (Clendenin Square/Charleston Village) were included. Bowen added that anything that would an affordable component (tax credit, government subsidized, etc.) would not have been included in the survey. Bowen added that the national average for pre-leasing is 10-20%, which is much lower than pre-leasing for the Atlas Building as stated by Councilmember Pharr. Councilmember Pharr added that many similar buildings in the area are prime for this sort of development. Todd Dorcas, from the Greater Kanawha Valley Foundation, asked if the study showed the percentage of renter versus ownership and how that compares city-wide. Bowen replied that it is estimated that 87.1% of units Downtown are renter occupied. The rest of the City is 46.2%. Dorcas asked if the population loss to the number of housing units consistent with typical demands. Bowen replied that it’s complicated, but he believes that there isn’t much of a choice Downtown (that does not include affordable housing). That is why he recommended building smaller rentals as a base and building condos and larger rental projects on top of that. Councilmember Knauff asked what was the difference between somewhat and very walkable as listed in the study. He added that Kanawha Blvd was listed as somewhat, but he felt that it is a very walkable area. Councilmember Knauff additionally asked if parking concerns were included in the study. Bowen replied that the study broke down more walkability sports than would normally be done, and generally they found Downtown to be very walkable (yellow and green areas). Councilmember Knauff said that the study didn’t mention anything about grocery stores or access to fresh food, adding that if the area had been extended a block further, it would have included a Kroger. He asked if that should be a concern. Salisbury added that the Capital Market is also in the study area. Salisbury added that the City conducted a parking study several years ago and noted 30,000 parking spots Downtown. Councilmember Knauf agreed that Charleston has a lot of parking and would like to see it as a selling point. 3. Administrative Updates - Mayor Goodwin announced to the Committee that the City has received grant money to work on the development of Slack Plaza, adding that this will be a great opportunity to encourage urban growth. It will be a seamless connector for walkability as well as building on city center. A design draft was presented to the Committee. Mayor Goodwin added that it is more than just housing, that it is about the amenities and quality of life the City can offer to attract and keep citizens and businesses. Councilmember Knauff confirmed that there is a planned ice-skating rink. Councilmember Wesley-Plear asked if Slack Plaza could be rented out. Mayor Goodwin replied that is something that would need to be examined. Councilmember Pharr added that some younger professionals said they have stayed on the City because there is now more available housing Downtown. Councilmember Overstreet motioned to adjourn the meeting. Councilmember Pharr seconded. Meeting adjourned.

Agenda

Packet

CITY OF CHARLESTON West Virginia Council Member – 13th WARD Brent Burton Urban Renewal and Economic Development, Chair 340 MacCorkle Ave SE Finance Committee Charleston, WV 25314 Parking Committee Telephone: 304.541‐0991 E‐mail: brent.burton@cityofcharleston.org TO: Urban Renewal and Economic Development Committee FROM: Brent Burton, Chair RE: Committee Meeting UNTIL FURTER NOTICE, MEETINGS WILL BE MADE AVAILABLE TO THE PUBLIC VIA ZOOM There will be a Committee meeting of Urban Renewal and Economic Development on September 23, 2020 at 12:00 PM, in the A/V Conference Room, City Hall, Room 308. *Join via internet: https://us02web.zoom.us/j/85075946174?pwd=OUhiUWwwTURYNVhLa2VyKzROUklWZz09 Passcode: 873089 *Join via Telephone: (312) 626‐6799 or (929) 436‐2866 Webinar ID: 850 7594 6174 *Join via CivicClerk: https://charlestonwv.civicclerk.com Agenda Approval of Previous Minutes 1. 2‐6‐2020 Presentation on the 2020 Downtown Charleston Housing Study ‐ Charleston Area Alliance(Susie Salisbury) & Bowen National Research(Patrick Bowen) 1. Housing Needs Snapshot Administration Updates BB/ns City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax Page | 1 of MINUTES URBAN RENEWAL AND ECONOMIC DEVELOPMENT COMMITTEE MEETING 5:30 P. M., FEBRUARY 6, 2020 A/V CONFERENCE ROOM Brent Burton, Chair, called the meeting of the Charleston City Council Committee on Urban Renewal and Economic Development to order at 5:30 p.m., FEBRUARY 6, 2020, in the Audio/Visual Room in City Hall. Committee Members Present: Brent Burton, Chair Tiffany Wesley-Plear, Vice Chair (via phone) Ben Adams Naomi Bays Jennifer Pharr Bobby Reishman 1. Approval of Previous Minutes – Councilmember Bays moved to approve the minutes of the previous meeting on 1-23-2020. Councilmember Pharr seconded. There was no objection and the minutes were approved. Page | 2 of 2. Discussion concerning downtown revitalization, housing and the new projects from the water crisis settlement funds. Councilmember Burton asked Mayor Goodwin and Chief of Staff, Matt Sutton, to give the Committee an update. Mayor Goodwin asked if members had questions regarding the outline for the Community Participation Fund that they had been given. She remined them that the funds have to go through a 501(c)(3). Councilmember Bays confirmed that they could buy equipment for a Community Center. Mayor Goodwin added that the enhancements have been made to the Coliseum and Convention Center, such as the basketball/volleyball courts. She stressed that there had been no plan on how the newly renovated Convention Center was to be utilized to its maximum potential. The funds will be used to attract people/groups to the facilities. Mayor Goodwin also stated that some of the money in the Business Economic Impact Fund will go to façade grants. Additionally, it will also go to assist businesses in creating business plans. The Administration is currently working to coordinate with the local Universities and Business Schools for an unspecified entrepreneurial project. Councilmember Bays confirmed that the façade grants will be based on similar CURA grants but for the entire City. Mayor Goodwin stated that a long-term but very important project will be advertising and promoting the City. The Administration wants to develop strong, effective marketing strategies. The Mayor added that last May, the Convention Center and CVB had a meeting to create a strategy to work together to promote the facility. Anything spent for advertising and marketing will need to have quantitative and qualitative data attached to it, such as focus groups and surveys. It will be a national approach. As an example, Mayor Goodwin cited the colors assigned to the different neighborhoods; it was a good idea, but was executed inconsistently. She stressed that this kind of re-branding will take a lot of time and funds to do correctly and effectively. Councilmember Wesley- Plear stated that a friend from out of town was confused about the different colors, and the reasons behind them weren’t obvious or meaningful. Councilmember Adams asked what the process and time frame would look like. The Mayor answered that research would come first, involving outside companies and focus groups, and future decisions would be based on the results. Councilmember Pharr asked if there was any sort of requirement that the various groups involved (CVB, Charleston Main Streets, CAA, etc.) would have to effectively communicate with each other and the Administration if the City had provided funds to them. Mayor Goodwin answered that there was. Mayor Goodwin stated that she believed that if the City went to those various groups with any research data that had been gathered, it would be easier to get them on board. Sutton stated that, in his experience, the most successful City re-brandings are those that listened to the outside consultants. Councilmember Pharr pointed out that the City does not have any billboard in any direction that describes what they can do in Charleston. The Committee discussed that the blue travel signs are not allowed by the DOH, but they could get Page | 3 of creative with billboards on strategically placed buildings along the interstate. Mayor Goodwin stated that the City needs to think about what it can invest in that will attract massive amounts of people, such as sports tourism. Mayor Goodwin updated the Committee on the installation of the kayak dock by saying that the location may need to be changed to the other side. The goal is to get it completed by Spring. The Administration is also working on relaunching the Charleston Summer Youth Professional and Career Program for 14-17-year-old kids to get experience in a career field. Councilmember Wesley-Plear suggested reaching out to West Virginia State. Chief of Staff, Matt Sutton, stated that over the past few weeks, there had been a very large amount of business owners seeking medical marijuana permits. While the City does not reap the tax benefits of the dispensaries, they do provide 8-16 jobs at each location, with growth facilities providing more. Councilmember Adams asked if there was going to be a cap on locations per region. Sutton answered he did not think that will be the case as there are only a few cities in the state in which the businesses seem interested. Sutton added that the businesses seems most interested in Kanawha City, Downtown and the West Side. Councilmember Pharr suggested that the Committee invite the leadership of the CVB, Charleston Main Streets, CAA, etc. to speak about updates and what the groups’ commitment will be to work together. Councilmember Pharr asked for an update on the search for a new Director for the Convention Center. Sutton answered that the consultants met with the stakeholders and will begin to write the job description based on those needs. The Convention Center Board is also looking into hiring an outside marketing and booking firm. Councilmember Reishman motioned to adjourn the meeting. Councilmember Adams seconded. Meeting adjourned. Page | 4 of Downtown Charleston, WV Market-Rate Housing Needs Snapshot Snapshot of Market-Rate Housing Needs Assessment by Bowen National Research Susie Salisbury | VP, Community Development Charleston Area Alliance 304-340-4253 ssalisbury@charlestonarealliance.org Page | 5 of Snapshot Summary ABOUT THE SNAPSHOT The Charleston Area Alliance, with support from the Greater Kanawha Valley Foundation and United Bank, hired Bowen National Research to conduct a housing study on downtown Charleston, West Virginia to: Provide an update on the 2015 downtown Charleston housing study. Obtain updated data and information on market-rate housing needs. Serve as a catalyst for property DOWNTOWN STUDY AREA (DSA) development in Charleston and the Kanawha Valley. SCOPE OF WORK Evaluated demographics and analyzed economic conditions. Inventoried existing housing stock rents/costs and availability for market-rate housing. Evaluated livability factors. Gathered community input. Provided housing gap estimates. CAPITOL STREET, CHARLESTON, WV CharlestonAreaAlliance.org Page | 6 of The Snapshot HOUSING GAP ESTIMATES The study estimated there are 424 units needed in downtown Charleston within the next five years. 322 rental units needed in 102 for-sale units needed downtown Charleston. in downtown Charleston. Renter household growth in downtown Charleston is projected to occur among those earning $60,000+, indicating a need for higher priced housing products.. DEVELOPMENT OPPORTUNITIES There are desirable buildings and parcels poised for potential development. Much of the study area properties are eligible for Federal and State Historic Tax Credits due to their location within a National Register Historic District. Downtown Charleston has three Census Tracts recently designated as Qualified Opportunity Zones (QOZ). QOZs spur investment in communities through tax benefits. DEMOGRAPHICS & ECONOMIC CONDITIONS Focus on Charleston, West Virginia should explore LIVEABILITY, strategies that offer a diversified housing which creates stock to attract and retain millennials, ages housing options 25-45, and accommodate a senior for all ages, population, ages 65+. incomes and CharlestonAreaAlliance.org abilities. Page | 7 of DOWNTOWN'S SUCCESS atlas lofts The Atlas Building project is a testimony to the potential for mixed-use rental space in downtown Charleston. The lofts feature 52 premier studios, and 1BR and 2BR apartments with ground floor commercial space. Pre-leasing began in August 2020 and within two weeks, the property manager saw a pre-lease rate of 44%, well above the national average of 30%. The Atlas Building's success is not included in the ATLAS BUILDING, CHARLESTON, WV Bowen report due to the project being under construction. parkview lofts Parkview Lofts is a success story for condominium development in Charleston, WV. Based on information from the local Tax Assessor, most of the units sold between $200,000-$349,000, with the majority at or above $270,000. These price points make for an average price per-square-foot of $203. PARKVIEW LOFTS, CHARLESTON, WV Most of the available downtown condominium products are priced above $200,000, with average price per-square-feet between $136-$258. These figures, as well as the Parkview Lofts project, are desirable illustrations of pricing potential for new downtown condominium projects. CharlestonAreaAlliance.org Page | 8 of MARKET-RATE HOUSING INVENTORY High occupancy rates reveal few choices for prospective downtown renters. Healthy market rates fall between 94-96%. 100 100 96.1% 99.3% 96.6% 75 75 setaR ycnapuccO setaR ycnapuccO 50 50 25 25 0 0 Downtown CWV Remainder of CWV Kanawha Co. G ov er Vi llage * no r's O ne C ou C M or rt en C Te ris teou r nt rra ce Ap ts .* ry C Pa C lub To rk ha Villa w n H Ea st rle ge Ap ou se st ts Ap on .& To *Located in Downtown w ts . nh om Ea es gle R Vi ew ox alan a H ills The significant shortage of available units The eight sampled market-rate housing outside of downtown Charleston adds to projects have a total of 1,410 units and the rental demand. a combined occupancy rate of 95.3%, Downtown rents among the most indicating a good level of demand for common unit types are generally higher, higher end market-rate rentals. which indicates rent premiums for downtown development. Downtown CWV The market-rate housing inventory data and rent per-square-foot provides a baseline for establishing 1BR $1.46 .yduts newoB 0202 rents and features for future, ni dehcraeser stcejorp comparable projects. 2BR $1.25 detelpmoc no desab ,tooF-erauqS-reP tneR More recent downtown projects are seeing price per-square-foot ranging from $1.17-$1.76. CharlestonAreaAlliance.org Page | 9 of FOR-SALE HOUSING County-wide home sales remain steady and sell relatively quickly. Average downtown sales price is $202,075, which is about $20,000 more than the average for the remainder of Charleston. City-wide availability rate is 2.3%, within range of typical healthy markets. LIVABILITY FACTORS Strong economic network Charleston's downtown including employee work is considered a walker's locations, community services paradise, where daily and retail are concentrated in tasks do not require a the downtown Charleston car. area, making it easy to access work and leisure in a central location. COMMUTING PATTERNS Over 47,000 people commute into Charleston on a daily basis. It is anticipated that as additional housing is added to Charleston overall, the market will have a greater chance of attracting commuters as potential residents to the city and into downtown Charleston. Attracting less than 1% of daily commuters would fill the housing gap over the next 5 years. 47,000+ Daily Commuters CharlestonAreaAlliance.org Page | 10 of