Sup with Burke

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Sup with Burke?

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Scenario Remove Burke Lakefront Airport and
Create Alternative Land Use Plan
Patrick Christie-Mizell James DeRosa Jessica
Dunn Michael P. Graham John Storey
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Burke Lakefront
Taking It To New Heights
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Project Goals

• Increase overall productivity and usage of
  currently under utilized Burke parcel
• Minimize losses and negative impacts of closing
  the airport
• Encourage universal access to the lakefront
• Maximize tax benefits
• Make a splash in the national development scene

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Debunking Burke Myths

• Rerouting flights can be accomplished within
  existing regional framework of airports
• Oberlin (Lorain County Airport) undergoing
  expansion
• Cuyahoga County Airport
• Akron Fulton Airport
• Akron-Canton Regional Airport
• 2nd fastest growing airport in US (2002)
• Adding runway/terminal space

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Debunking Burke Myths

• Business Convenience?
• Witness 20-year exodus of Fortune 500 companies
• CEOs of Northeast Ohio live closer to other
  airports businesses themselves are not
  centralized near Burke
• Hopkins itself 15 minute drive from Downtown
• Chicago (Meigs Field)

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Debunking Burke Myths

• FAA money
• 15 yearsthis project will take years just to
  plan, so this figure can be paid down without
  penalty or figured into the cost
• Only 6 million to begin with
• The long-term economic benefit of redeveloping
  will exceed the startup costs

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Debunking Burke Myths

• Building Residential on Landfill
• According to Ohio Law, this is permissible so
  long as the land use promotes public access
  and/or navigation
• Devoting a large portion of the redeveloped land
  to park space (as intended by this plan) would
  satisfy this requirement

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What Can We Expect to Gain?

• Tax base
• Public Space/Lake Access
• Benefit of an enormous already-assembled site
• Catalyzing effect for the entire region

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Downtown Neighborhoods

• Halt Reverse Population Drain
• Draw from outside the city
• Jane Campbells campaign promises
• 500,000 goal
• 1500 new homes per year

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Housing Demand Survey

• Methodology
• Stratified random sample
• Two distinct suburban community types
• Brief telephone interviews
• 206 respondents

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Housing Demand Survey

• Sample Question
• Try to imagine a new neighborhood of townhouses,
  loft units, and condominiums within one mile of
  downtown Cleveland, on a tree-lined boulevard
  with nearby freeway access, adjacent to
  waterfront parkland, and connected to a system of
  biking/walking trails. On a scale of 3 to 3,
  where 3 means Id never live there, 3 means
  Id move there tomorrow, and 0 means Im
  neutral toward the idea, please estimate your
  interest in living in such a neighborhood.

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Target Population

• Considering a move within the next year
• Rated interest in living in described
  neighborhood between 2 and 3
• Identified interest in living in townhouse or
  stacked flat
• 5.3 of the sample

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Characteristics of Target Population

• 91 childless households
• 45 single-adult households 55 multi-adult
• 45 plan to rent (rent range 350-1000)
• 55 plan to buy
• 22 lt 175,000
• 45 175,000 -200,000
• 33 gt 200,000
• 82 under the age of 50

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Amenities

• Public biking trail/walking trail 2.3
• View of Lake Erie 2.0
• Next to lakefront public park 1.9
• View of downtown skyline 1.8
• Close to downtown 1.7
• Proximity to freeway interchange 1.5
• Adjacent to retail 1.4
• Access to marina/boat slip 1.0

Survey results based on a 3 to 3 scale
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Drawbacks

• Exposure to aircraft fumes -2.0
• Small-plane takeoff/landing noise -1.3
• Capped landfill of river dredging -1.3
• Within ½ mile of railroad -1.0
• Adjacent to Burke Airport -0.9
• Remediated brownfield -0.4
• View of airport activity -0.1

Survey results based on a 3 to 3 scale
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Supportable Housing Demand
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Multiple Design Objectives

• Provide public access to lakefront
• Preserve open space
• Offer recreational activities
• Increase boat slips
• Offer many housing products
• Provide transportation access to development
• Incorporate public art
• Provide economic return to the landowner

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Burke Lakefront Master Plan
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Public Use Features

• Park space, trails, and paths
• Promenade along water
• Public boat ramp and boat slips
• Cleveland Sports Complex
• Pond/Ice skating
• Ferry access to Flats, E. 9th, and Dike 14
• Fishing piers
• 1/2 mile beach
• Top notch 9 hole public golf course

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Public Areas
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Housing Features

• High-tech telecommunity
• Access to Waterfront Line
• Market rate and affordable products
• For rent, for sale, and rent to condo options
• Millionaires Row replicas
• Houseboat style units
• Mainstreet with new urban village feel
• New charter school
• Energy efficient design and windmill powered

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Housing Products

• Millionaires Row
• 200 stacked flat units replicating 40 historic
  Cleveland mansions
• The Edge
• 155 individual condominium units simulating
  houseboat living
• 600 units in 4 10-story apartment buildings

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Housing Products

• Burke Towers
• 1,200 units in four 20-story high rise
  residential apts. condominiums
• Wright Estates
• 133 single family detached homes
• Burke Homes
• 1,100 cluster homes

• North Coast Townhouses
• 100 townhouse
• Aviation Assisted Living
• 268 units in historic conversion of Aviation HS
  with two three story additions
• Main Street Apartments
• 100 market rate and affordable apartments

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Residential Retail
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Marketing Strategy

• Actively market to young professionals, empty
  nesters, including those living outside of
  Cuyahoga County
• Market as a transit oriented community
• Emphasize proximity to downtown Cleveland and
  waterfront location
• See Concord Place in Vancouver marketing as
  example

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Some Rejected Ideas

• Retain paved area for Grande Prix and air show
• Relocate Thistledown Racetrack to Burke site
• Create outdoor amphitheater
• Create private parks for residents
• Offer less public amenities
• Private golf course

• Office uses
• Low-rise biotech office uses
• Big box uses
• Industrial uses
• More high rise residential
• No single family detached residential
• Rehab Aviation H.S. into school

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Financing Phase 1Redevelopment Costs

• Demolition of Airport
• Brownfield Remediation
• Park Development
• Construction Costs
• Soft Costs
• Total Redevelopment Costs 93,910,601

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Financing Phase 1New Residential Construction

• 100 Low-Rise Apartments _at_ 1000 SF. Lease rate of
  1,000/month
• 200 Stacked Flats 1200-1700 SF. Sales Price of
  145,000-175,000.
• 100 Townhouses- 2500 SF. Sales Price of
  225,000.
• Potential Gross Income28,730,000

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Financing Phase 1New Public Use Construction

• Community Center- 25,000 SF
• Marina W/Restaurant-12,000 SF
• 125 acres of New Parkland-5,000,000 SF
• Total Construction Costs 8,000,000

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Financing Phase 1New Residential NOI

• Potential Gross Income 28,730,000
• Total Operating Expenses 5,618,725
• Net Operating Income 23,111,275
• Cash available for Debt Service 19,013,416
• Cap Rate 19,013,416/93,910,60120

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Financing Phase 1Financing Partnership

• TIF District Financing 65,000,000
• Clean Ohio Fund
• 10,500,000
• Developer Equity
• 6,500,000
• Port of Cleveland-Revenue Bond
• 12,000,000

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Built Value
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Projected Cleveland Revenues

• Property Tax 30.5 M
• (based on 1.95)
• Income Tax 6.9 M
• (based on 2)
• TOTAL 37.4 M per year
• (does not include sale or lease of land to
  developers, revenue from construction, etc)

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Conclusion

• Underperforming airport on largest contiguous,
  downtown, lakefront site in region.
• City has projected 12 million deficit.
• Mass exodus of Fortune 500s has continued
  despite Burkes presence.
• City seeks to build population base and add to
  public green space.

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Conclusion (cont.)

• Our project would
• Generate 37 M per year in tax revenue.
• Add up to 6,000 downtown residents
• Add park space lakefront access
• Make a statement in national development scene
• Illustrate that this City is planning for its
  future.