HR&A Associate's June 21-22 parks development overview presentation to the Minneapolis Riverfront Development Initiative (MR|DI)

1. Business Planning for a 21st Century Park System
June 22, 2011

2. RiverFIRST: an economic development strategy
Population, City of Minneapolis
600,000
500,000
400,000
300,000
200,000
100,000
0
1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
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3. RiverFIRST: an economic development strategy
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4. RiverFIRST: an economic development strategy
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5. RiverFIRST: an economic development strategy
Racial Composition, City of Minneapolis
2010
2000
0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
White Alone Black Alone
American Indian Alone Asian or Pacific Islander Alone
Some Other Race Alone Two or More Races
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6. RiverFIRST: an economic development strategy
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7. HR&A experience
Central Delaware, Philadelphia London Olympic Park Anacostia Riverfront, Washington DC
The High Line, NYC Brooklyn Bridge Park South Street Seaport, NYC
Governors Island, NYC Don Mouth, Toronto Daniel Island, SC
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8. HR&A experience in the Twin Cities
Peavey Plaza Great River Park
Ford Site Open Space Planning The Union Depot, Saint Paul Bottineau Transitway
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9. RiverFIRST | A Perspective on Revenue Identification

10. Great ideas, great designs and strong leadership attract capital.
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11. Following decades of resource challenges, cities are increasingly
turning to a range of private sector funding sources.
General Special BID Charge Food & Events & Parking Corporate Real Estate
Fund Levy Beverage Promotions Fees Philanthropy Sponsorship Proceeds
Public Earned Income 501(c)(3) Private
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12. Real estate is often the most significant potential revenue source.
Legacy Amendment Funding?
Tax Increment Financing? Quantity & timing
Improvement District?
Development pro forma
Public capacity Development / Parkland
ability to support
to fund parkland concessions
parkland
Other public benefits? Privatized Public Space?
Corporate Sponsorships?
Philanthropy?
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13. Typically, new parks systems rely on phased revenue streams.
Real Estate
Development
Events & Programming
Revenue Scale
Government Funding
Sponsorship & Fundraising
Time
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14. RiverFIRST | Stories from the Front Lines
The South Brooklyn Waterfront

15. History of a working-class industrial waterfront
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16. History of a working-class industrial waterfront
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17. More than two decades of master-planning through engagement
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18. The public sector committed to funding park capital costs.
PANYNJ/NY State ~36%
City of New York ~60%
Borough President & City Council ~2%
Private Donors ~2%
Secured Funding $233 million
Planned City Supplement $55 million
~$355 million total development costs
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19. Elected leadership made a policy decision to leverage owned
lands for real estate development to sustain park operations.
75 acres of public space
10 acres of development
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20. Marine infrastructure and the inclusion of an appropriate capital
reserve became significant cost drivers.
EIS Projection
2004 $
Landscape O&M $4,475,000
Security and Recreation $2,682,000
Staff
Utilities and Insurance $1,037,000
Administrative Expenses $1,380,000
Marine Infrastructure $3,600,000
Vehicle Replacement $202,000
Capital Reserve $1,820,000
TOTAL: $15,200,000
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21. Real estate development value potential was calibrated against
ongoing project costs, with considerations for parkland activation.
Maintenance Budget $15.2M
Annual Land Value per SF ÷ $12-15
Required Development = 1-1.3M SF
Absorption & activation
considerations
Development Program
Residential Units 1,210-1,240
New Construction 710-740
Adaptive Re-Use 500
Retail SF 400,000
Hotel Rooms 170-225
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22. Results
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23. Results
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24. A mission to bring New Yorkers to the waterfront and support the
growth of burgeoning residential neighborhoods in Brooklyn
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25. Results
TODAY
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26. A mission to bring New Yorkers to the waterfront and support the
growth of burgeoning residential neighborhoods in Brooklyn
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27. Programming: …and for all New Yorkers
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28. $3M provided / $15.2M needed
Results: One Brooklyn Bridge Park
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35. RiverFIRST | Stories from the Front Lines
Hudson River Park

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40. Restrictions on development program have prohibited success.
Pier 40: 2 failed development attempts
Pier 57: 1 failed development attempt, with second selected
during the great recession
Chelsea Piers: a pioneering tenant secured a great deal after
multiple workouts
Short of changing legislation, two alternatives remain:
• A proven, politically challenging source: special levies on
upland real estate
• An unproven source with recessionary risk: Transitioning the
Friends from an advocacy organization to a major source of
philanthropy
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41. RiverFIRST | Stories from the Front Lines
Rose Kennedy Greenway, Boston

42. Rose Kennedy Greenway: building open space through a tunnel
project to reconnect downtown to its waterfront.
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43. Mission: a string of parkland to support downtown development
through new amenities and connections.
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44. Design & Programming: 4 different segments reflective of 4
different neighborhoods with 4 different development targets.
North End Wharf District
Amenitize residential Attract visitors
Dewey Square Chinatown
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Retain & attract businesses Build on cultural assets

45. Whereas capital sources were part of the “Big Dig” project,
operating sources lack long-term government commitments.
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
?
$2,000,000
$1,500,000
$1,000,000
?
$500,000
$-
FY2010 Future Year
Massachusetts Dept of Transportation Mass Development Philanthropy & Sponsorships Event Revenue Other
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46. New development parcels made available as part of the “Big
Dig” project were planned for civic use, not revenue generation.
75% of reclaimed land dedicated to
“public open space”
Parcels unsuitable to parkland or on
the fringe were dedicated to civic uses:
• YMCA
• Boston Museum
• New Center for Arts & Culture
• Horticulture Society “Garden Under Glass”
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47. All development plans have failed.
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48. Value creation on adjacent properties is a long-term proposition,
as buildings redevelop to face the Greenway.
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49. RiverFIRST | Stories from the Front Lines
Central Delaware River Waterfront, Philadelphia

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51. Create a truly Philadelphia waterfront
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Philadelphia, PECO

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53. Total Property 1,129 Acres
Total Land 930 Acres
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54. Washington Penn’s Landing Spring Garden
Development Park
Penn’s Landing 1,200,000 sf 18.1 ac
Spring Garden 2,600,000 sf 6.5 ac
Washington 1,940,000 sf 18.9 ac
Subtotal 5,740,000 sf 43.5 ac
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57. RiverFIRST | FIRST Impressions

58. General Special BID Charge Food & Events & Parking Corporate Real Estate
Fund Levy Beverage Promotions Fees Philanthropy Sponsorship Proceeds
501(c)(3)
Public Earned Income Private
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59. Resource identification
NOT Downtown
NOT affluent neighborhoods
+ NOT a city projected for significant near-term growth
LIMITED real estate value creation (total $)
LIMITED corporate interest
LIMITED philanthropy
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60. Distinct contexts suggest distinct strategies for North & Northeast
North
Northeast
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61. North riverfront: an established industrial district
Active light industrial district with
significant “green” business
Tensions between industrial and
residential land uses
Inefficient “Port of Minneapolis”
with uncertain future for barges
Highly constrained access from
disadvantaged neighborhood
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62. North riverfront: an implementation strategy?
Strengthened/Rebranded North
Washington Jobs Park
• Next generation trails, providing
neighborhood access, commutation &
industrial tourism
• Port consolidation for efficiencies &
potential long-term phase-out
• Fabulous wetlands restoration park 
increased commercial value
Potential mixed use enclave
bounded by rail line
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63. North riverfront: revenue implications?
1. In-kind management /
Commercial assessment district
2. Land disposition
3. Philanthropy
4. Environmental mitigation
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64. Northeast riverfront: established & emerging community
Residents, artists & neighborhood
retail
Limited connections to the river
Mostly multi-party, small-plot,
private shoreline ownership.
Fantastic waterfront uses – boat
launches, Psycho Suzie’s, distinctive
housing
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65. Northeast riverfront: an implementation strategy?
Focus on Scherer, Boom & Nicollet,
major publicly-owned sites
Leverage development for
parkland activation & funding.
Consider relative benefit of:
• Major employers’ expansion
• Mixed use
• Community facilities
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66. Northeast riverfront: revenue implications?
1. Land disposition(!)
2. Special assessment district
3. Events & concessions
4. Parking
5. In-kind management
6. Environmental mitigation
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67. Prerequisite of phase I: demonstrate the vision can be realized
• Bring all Minneapolitans to the river
• Foster advocacy for plan completion
• Secure media attention
• Demonstrate public sector ability to conclude transactions
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68. Prerequisite of phase I: demonstrate the vision can be realized
• Bring all Minneapolitans to the river
• Foster advocacy for plan completion
• Secure media attention
• Demonstrate public sector ability to conclude transactions
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69. Phase I: Green Port?
 Activation  Advocacy  Attention  Transactions
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70. Phase I: North Washington Jobs Park?
 Activation  Advocacy  Attention  Transactions
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71. Phase I: Farview Park Extension?
 Activation  Advocacy  Attention  Transactions
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72. Phase I: West River Road North?
 Activation  Advocacy  Attention  Transactions
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73. Phase I: Downtown Cultural Connections & Spirit Island?
 Activation  Advocacy  Attention  Transactions
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74. Phase I: Scherer Park District?
 Activation  Advocacy  Attention  Transactions
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75. Phase I: East Bluff?
 Activation  Advocacy  Attention  Transactions
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76. Phase I: Trails?
 Activation  Advocacy  Attention  Transactions
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77. Next Steps
Q: Where is HR&A’s value-add?
A: Where is the revenue-generation potential?
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78. Next Steps
Scherer Park District
Downtown Cultural Connections
Green Port
North Washington Experience
Trails
Farview Park Extension
East Bluff
West River Road North
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