BAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
Main120703 downtownhear tandsoul - reaching boiling point - los altos forward
1. Vibrant Downtown
The Heart and Soul of America’s
Communities
Reaching the Boiling Point
Presentation by Clifton Consulting Group
Los Altos Forward
July 11, 2012
2. 2
Vibrant Downtown
Is Los Altos Dense?
1. Marked by compactness or crowding together
of parts
2. Slow to understand
3. Having high or relatively high opacity
3. 3
Vibrant Downtown
Who is the Clifton Consulting Group?
• Ted & Jerry Sorensen
• 30 year residents
4. 4
Vibrant Downtown
Who is the Clifton Consulting Group?
• Ted Sorensen
• Attorney
• 15+ years real estate development
• Master Degree in Engineering
• Transportation/economic planning
5. 5
Vibrant Downtown
Who is the Clifton Consulting Group?
• Jerry Sorensen
• 25+ years real estate
• Market Center management/development
• Vibrant Buildings
• Trade Shows
• Management Consulting
6. 6
Vibrant Downtown
• Why downtowns are important
• Metrics for downtowns
• Economic Levers
• The Economic Model
• Parking the key lever
• Village Feel v. Mass & Bulk
• Create Great Streets
7. 7
Vibrant Downtown
Why our interest in Downtowns
• Downtown Development Committee 3
• How many people?
• How many more people?
• How do you quantify?
8. 8
Vibrant Downtown
• If you don’t know where you are!
• If you don’t know where you’re going!
Any Road will get you there!
9. 9
Vibrant Downtown
“Doing the same thing over again and expecting
different results.”
- Albert Einstein's Definition
of Insanity
10. 10
Vibrant Downtown
• Redevelop Downtown
• Revitalize Downtown
• Reenergize Downtown
Why is it Important?
11. 11
Vibrant Downtown
What is Vibrancy?
To be Vibrant
• “Pulsating with life, vigor, or activity”
• “She (the city) has a vibrant personality”
• “New legislation to help small businesses and restore
the vibrance of the local economy”
13. 13
Vibrant Downtown
Why Downtowns are important!
• Pulse of a community
• Community pride
• Quality of life
14. 14
Vibrant Downtown
Why Downtowns are important!
• Attracts new businesses
• Creates local jobs
• Allows residents to work in town
15. 15
Vibrant Downtown
Why Downtowns are important!
Did you know?
• $3 Million Annually to MVLA
• $3 Million Annually to LASD
• $900 parcel tax
16. 16
Vibrant Downtown
Why Downtowns are important!
Did you know?
• $4 Million Annually to City
$10 Million/yr incremental tax revenues!
―Is it time for downtown to contribute?‖
17. 17
Vibrant Downtown
Common Characteristics of Vibrant districts
• Events
• Entertainment
• Destination retail
18. 18
Vibrant Downtown
Common Characteristics of Vibrant districts
• Geographically remote
• Transit hub
• College town
• Tourist town
19. 19
Vibrant Downtown
Common Characteristics of Vibrant districts
• Sense of Place
• Density
These we can achieve
20. 20
Vibrant Downtown
Architecture – sense of place
How do communities create vibrancy?
“If you plan cities for cars and traffic, you get cars
and traffic, If you plan for People and Places, you
get People and Places.”
Fred Kent – Project for Public Spaces
21. 21
Vibrant Downtown
Metrics for Downtown!
Where are we?
• Inventory the town
• People
• Parking Stalls
• Parking demand
22. 22
Vibrant Downtown
Where are we?
• Inventory the town
• Parcels
• Buildings
• Uses
• Owners
23. 23
Vibrant Downtown
• Parking demand
= People
2,200 People
24. 24
Vibrant Downtown
Metrics for Downtown!
How do we quantify vibrant?
• How many people?
• 1,000 people/hr
William Whyte
―Rediscovering the center city‖
25. 25
Vibrant Downtown
Metrics for Downtown!
How do we define vibrant?
People on the Street? – 12:30-1:30
• 575 Castro Street
• 512 California Ave
• 933University Ave
• 870 Castro Street – 8:20-9:20
26. 26
Vibrant Downtown
Metrics for Downtown!
How do we define vibrant?
How does Los Altos compare?
• 225 2nd & Main
• Location • Location • Location
• ―Where would you open your retail store?‖
900 – 700 –500 or 225
27. 27
Vibrant Downtown
Metrics for Downtown!
How do we define vibrant?
225 people
= 25% vibrant
= Lack of sales
= Lack of rent
= Diminished retail environment
= Diminished Social Environment
= Second hand shops – salons – other services
28. 28
Vibrant Downtown
Metrics for Downtown!
How do we quantify vibrant?
• Retail Rents
29. 29
Vibrant Downtown
Metrics for Downtown!
How do we quantify vibrant?
• Retail rents > Office Rents
• Retail rents = 4% to 12% (8%) gross sales
• @8%, $4.00 rent = $600 per square foot
30. 30
Vibrant Downtown
Metrics for Downtown!
Sales Tax Trends – Los Altos Downtown Core
100.00
80.00
60.00
PERCENT
40.00
Fourth Street Berkeley
20.00
Burlingame
Los Gatos
0.00
Mountain View
20.00 Los Altos
40.00
The figures in this chart
represent the
60.00 downtowns for each of
the jurisdictions and are
1995 1997 1999 2001 2003 2005 2007 2009 not city-wide, i.e., the
Downtown Los Altos
YEAR Retail Core.
Source: City Data adjusted to 1995 constant dollars by Andrea Eaton
31. 31
Vibrant Downtown
Metrics for Downtown!
How do we define vibrant?
• 100% Vibrant = $600 / sf annual sales
• 1995 Avg. Los Altos = $300 / sf Annual sales
• 2009 Avg. Los Altos = $180 /sf annual sales
• Los Altos Retail/Restaurant = @8% = $1.20
32. 32
Vibrant Downtown
Metrics for Downtown!
Retail Rents
= $1.20 ÷ $4.00
= 30% Vibrant
―Our Businesses close, they almost never sell!‖
33. 33
Vibrant Downtown
Metrics for Downtown
Where are you?
• People – 25%
• Economics – 30%
Where do you want to go?
34. 34
Vibrant Downtown
2008 Rezoning
20 year prediction
• 34 parcels
• 895,000 sq ft office
• 495 residential units
36. 36
Vibrant Downtown
Last 5 years
• 895,000 • 1,000
• 495 • 70
• 18 hotel rooms
37. 37
Vibrant Downtown
3 parcels
14,305 sq ft
No Parking capacity
38. 38
Vibrant Downtown
Metrics for Downtown!
How vibrant do you want to be?
• 2,200 today = 25% to 30% vibrancy
• 50% to 60% = 2,200
• 75% to 90% =4,400
• 100% to 120% = 6,600
• 125% to 150% = 8,800
39. 39
Vibrant Downtown
How Vibrant do you want to be?
• 100%
• Add 4,400 people
=2,000 Residential units
=3,500,000 sq. ft.
= 1,900,000 sq. ft. office
40. 40
Vibrant Downtown
Economics – the Dismal Science!
Why don’t properties develop?
• Prop 13
• Property owners have been here forever
• Property owners comfortable—Don’t care
No Compelling Economic Reason!
41. 41
Vibrant Downtown
Economics – the Dismal Science!
Why will properties develop?
• How to create the boiling point?
• Market Conditions
• Policy changes/city levers
42. 42
Vibrant Downtown
Where is the Development Boiling Point?
• Develop a proforma for specific properties
• Developed multiple proformas – testing the
edge
• The Economic Boiling Point for...
• Developer
• Property Owner
43. 43
Vibrant Downtown
The Economic Model
Why will properties develop?
• Policy changes/city levers?
• Floor Area Ratio (FAR)
• Height
• Fees
44. 44
Vibrant Downtown
The Economic Model
Why will properties develop?
• Policy changes/city levers?
• Use requirements (rents)
• Parking
Requirements
In lieu Program/Fees
45. 45
Vibrant Downtown
The Economic Model
Why will properties develop?
• Ratio Redeveloped Value/Current Value
= Development Pressure Index (DPI)
Greater DPI = Greater Development opportunity
46. 46
Vibrant Downtown
Achieving the development boiling point!
Additional outputs
• School revenues
• City revenues
• Parking spaces required
• People on the street
• etc
47. 47
Vibrant Downtown
The Economic Model
Why Will Property Develop?
• Case Study #1 2001
• Office Rent $7.50
• Parking 4/1000
• No In Lieu program
48. 48
Net New Development
3,000,000
2,500,000
Six Story
Five Story
Four Story
2,000,000
Three Story
Square Feet
Current
1,500,000
1,000,000
500,000
0
0 1-5 6-10 11-15 16-20 21-25
Years
49. 49
Vibrant Downtown
The Economic Model
Why Will Property Develop?
• Case Study #2 Current Situation
• Office Rent $4.00
• Parking 3.3/1000
• No In Lieu Program
50. 50
Net New Development
3,000,000
2,500,000
Six Story
Five Story
Four Story
2,000,000
Three Story
Square Feet
Current
1,500,000
1,000,000
500,000
0
0 1-5 6-10 11-15 16-20 21-25
Years
51. 51
Vibrant Downtown
The Economic Model
Why Will Property Develop?
• Case Study #3
• Office Rent $4.00
• Parking 2.2/1000*
• $10,000 In Lieu Fee**
*Based on 4 recent parking studies of 22 office buildings in Los Altos
** Based on Parking, Best Practices.
52. 52
Net New Development
3,000,000
2,500,000
Six Story
Five Story
Four Story
2,000,000
Three Story
Square Feet
Current
1,500,000
1,000,000
500,000
0
0 1-5 6-10 11-15 16-20 21-25
Years
53. 53
Daily Census
8000
7000
6000 Six Story
Five Story
People
5000 Four Story
Three Story
4000 Current
3000
2000
0 1-5 6-10 11-15 16-20 21-25
Years
54. 54
Vibrant Downtown
Why Downtowns are important!
Did you know?
A Vibrant Downtown Could Contribute…
• $3 Million Annually to MVLA
• $3 Million Annually to LASD
• $4 Million Annually to City
$10 Million/yr incremental tax revenues!
55. 55
Vibrant Downtown
Should we zone for dollars?
NO!
56. 56
Vibrant Downtown
We Should zone for…
• Great streets
• Distinctive Architecture
• A sense of place
57. 57
Vibrant Downtown
Parking Requirements
A Quick History
• Nobody studied Parking!
1. Build More!
2. What are their requirements?
3. What does ITE recommend?
58. 58
Vibrant Downtown
Parking Requirements & Parking
Management
• Lead Poison
• The first step – The seminal step to
revitalizing downtown!
• Without change – Look for continuing
decline
▫ Economics
▫ Vibrancy
▫ As the Social Center/Place
59. 59
Vibrant Downtown
Parking Best Practices
• Understand current requirements
• Medium term growth requirement
• Efficiencies in Parking lay-out
• Efficiencies in Parking management
60. 60
Vibrant Downtown
Best Practices Los Altos
• Establish a Parking Benefit District (PBD)
• Create a parking In-lieu program
• Adopt parking requirements based in reality
• Identify future parking
61. 61
Vibrant Downtown
Los Altos Actual Average Demand!
• Private Office – 1.6 per thousand!
• Average Peak – 2.0 per thousand!
• Grocery Retail – 2.4 per thousand!
63. 63
Vibrant Downtown
Parking In-Lieu Program
Benefits for Los Altos
• Would open up development
• Creates shared parking resources
• Shared Resources lead to activity (vibrancy) on
the street.
64. 64
Vibrant Downtown
• ―The Opinion of this mischievous Effect from
Lead is at least above Sixty Years old; and you
will observe with Concern how long a useful
Truth may be known, and exist, before it is
generally receiv’d and practis’d on‖
Benjamin Franklin
84. 84
Vibrant Downtown
We want a more vibrant Downtown!
• Greater economic vitality
= Taller buildings/more density
• You must reach the Development Boiling Point!
• Nostalgic feel low density
= Diminished retail
• Excessive Parking
= Stunted downtown
85. 85
Vibrant Downtown
We want a more vibrant Downtown!
The model
• Informs Community
• Informs Policy Makers
• Identifies Alternatives/Tradeoffs
A Powerful tool for a community based visioning
process
86. 86
Vibrant Downtown
Los Altos Recent survey
• 47% opposed
• 43% supported
• 3 stories or more
• What if they knew?
87. 87
Vibrant Downtown
Why Downtowns are important!
What is the vibrant downtown experience?
―What attracts people most, it
would appear, is other people‖
Walkable Streets