Item 4 - Status of South Poway Community , GENDA REPORT '
CITY OF POWAY
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Ma'l~~
INITIATED BY: John D. Fitch, Assistant City Manager
Reba Wright-Quastler, Director of Planning Services^~¢-~ tjx'.
DATE: March 21, 1995
SUBJECT: Status of South Powa¥ Planned Community including: financial
status and outlook; review of current plan and allowed uses;
possible new uses and their direct and indirect effects.
At the January 30, 1995, City Council meeting, the Council requested that a
workshop be held to discuss the future of the South Poway Business Park. This
report gives an overview of the existing uses allowed in the park, the development
that has taken place, financial aspects of development and possible new uses that
might be considered for the area.
(;URRENT SITUATION
The South Poway Community Plan provides for industrial and commercial
development in the Industrial Park, Light Industrial and South Poway Commercial land
use designations. The Industrial Park designation is designed to allow three basic
categories of industrial uses: Research and Development; Manufacturing; and
Warehouse and Distribution. The Light Industrial classification allows manufacturing,
and warehouse and distribution development. The South Powa¥ Community Plan also
includes 28 acres of commercial-office use which is intended to support the adjacent
industrial uses. The specific uses allowed in each of these categories is shown in
Attachment A to this report and the distribution of these categories is shown in
Attachment B. The various ownerships of land within the business park are shown
in Attachment C.
There are currently 121 businesses in the business park (listed in Attachment D). The
location of the properties that are developed can be seen on the aerial photo which
is included as Attachment E to this report.
ACTION:
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Agenda Report
March 21, 1995
Page 2
The location and extent of improvements is shown on Attachment F. This lack of
final infrastructure coupled with completed rough grading leaves property in a very
desirable situation from a development perspective because, while the cost of major
earthwork and the environmental issues have been taken care of, redesigning the
project would still be very easy because there are no finished streets or utility lines to
be relocated. It could be compared to a prepared, blank canvas.
When completed to SR67, in the configuration currently approved, the Scripps Poway
Parkway will be capable of carrying the amount of traffic expected to be generated
during peak hour at build-out under current zoning.
The uses presently allowed in the business park are estimated to general about 9
"equivalent dwelling units" of sewerage per acre. Water and sewer demand vary
widely with industrial uses, however. Some, such as warehousing, have very Iow
demand while others, such as food processing and some electronic industries, have
very high water usage and sewer demand.
FINANCIAL SITUATION
One of the questions that was requested to be addressed in this report was the
financial status and possible impacts of different land use options. Specifically, a
comparison of the original projections, the current status, and a projection to the year
2000 was requested assuming industrial land use (see Attachment J). In addition, the
exhibit also attempts to quantify the possible financial impacts of some of the other
land use concepts that have been discussed. The revenue estimates used for these
projects are based on information supplied by project proponents and reviewed by
staff.
Another question raised relates to the financial impact on the RdA from the two
foreclosures. The foreclosures will have one known impact, and possibly one other
impact on the RdA. The limited impact results from the fact that the RdA, with one
exception, did not commit any of the Tax Increment (TI) from either of the Community
Facilities Districts to secure the Agency's Tax Allocation Bonds. TI from these areas
was used to secure notes authorized for the Developers to repay some of the public
improvements they installed. The only security for those notes was the TI from the
CFD's. The exception relates to the only note that was actually issued. This note is
for approximately $9.3 million and is secured by the improved property in the CF
Pomerado portion of the park. The TI from this area has fallen below the amount
necessary to cover i00% of the debt service on the note. The shortfall is required
to be made up by the RdA's general fund. This shortfall occurred last year as a result
of property tax reassessments. This shortfall will be further impacted by CF
Pomerado's non payment of property taxes and assessments. CF Pomerado's share
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Agenda Report
March 21, 1995
Page 3
of the TI generated is approximately 29% of the total. This equals approximately
$234,000 per year of the annual debt service. This shortfall will eventually be
corrected as the TI increases due to property sales, and/or new construction.
The other adverse impact the foreclosures may have is on the Agency's bond rating.
There is no clear evidence as to how the market would respond when the Agency is
ready to issue another tax allocation bond. The unknown here is whether the financial
market would react to CFD's foreclosures when evaluating the security of an new
Bond issue. The markets may separate the two and focus only on the security of the
revenue source from the new bonds or they may make some link. Since this has
never happened to date, it is hard to predict how the market would respond,
Another question deals with the potential impact on planned public services and
projects. Except as mentioned above, the TI was not pledged for any project and,
therefore, there is no impact on public services or projects, Further, the City/Agency
did not use projected revenues from any developments in the CFD's, therefore, no
services or projects were undertaken based on such an assumption.
POSSIBLE NEW USES
In considering potential new uses for South Poway, it is important to remember that
some uses are not feasible at all. Others may only be feasible in conjunction with
other uses. Businesses in the retail, amusement/entertainment and travel categories
are particularly likely to need to be near similar uses. For example, hotels need other
uses near them to draw customers while entertainment uses often need hotels for
their visitors to stay in. Outlet centers prefer to be in areas frequented by tourists.
Restaurants prefer locations with businesses to provide lunch customers and
residential and entertainment uses to provide dinner customers.
One example of a planned industrial area which has been replanned to accommodate
different uses in the Eckes Ranch property in the City of Carlsbad. This property is
now planned to house an interdependent mixture of uses including LegoLand, hotels,
commercial and industrial such as the American Gemological Institute.
A number of types of uses have been mentioned in conjunction with South Poway at
various times. These can be grouped into five general categories which are discussed
further below. These are: retail/amusement/travel uses; city-owned golf course;
Palomar College campus; housing; and, additional office type uses.
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Agenda Report
March 21, 1995
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Retail/amusement/travel
Uses considered in this category include: hotels, including conference/convention
center hotels; performance venues including theaters, music halls, dinner theaters, and
amphitheaters; amusement parks, including water parks and theme parks; restaurants;
and shopping areas such as manufacturers outlet centers. As mentioned above, these
are uses that are particularly benefited by proximity to similar uses.
A seminar presented by the Urban Land Institute last week, was devoted to a
discussion of new forms of urban entertainment destination projects that are expected
to emerge in coming years. The projects discussed included theme parks and resorts,
theme attractions at malls, specialty retail showcases, and nighttime entertainment
complexes. As people become ever busier, they will seek leisure activities nearer home
and they will seek to combine relaxation with other activities, such as shopping.
Attachment I is a report from the Urban Land Institute which discusses these
concepts further.
Finances. Retail/amusement/travel uses can have a significant positive impact on the
finances of the city because they generate taxes which contribute to the general fund
such as sales tax and transient occupancy tax.
Tr~ffi(;. While most of these uses produce more Average Daily Trips (ADT's) than
industrial development, many of these trips occur at off-peak hours. See Attachments
and for peak hour traffic generation per acre.
p~mi~nd for Services. Uses in this category require fire and police protection as well
as streets, water and sewer. The level of demand would vary considerably depending
on the specific use. None of these uses would impact the schools.
Crime. SANDAG has no statistics of criminal activity by land use type; however, in
general terms, SANDAG staff indicated that the impacts tend to follow fairly
predictable patterns such as theft being higher in retail areas (because of greater
access to things to steal). They also confirmed that having "people on the street"
tends to reduce crime.
pQIlution. Some of the uses in this category have the potential to create substantial
noise (amphitheater, outdoor amusement rides, arena). Air pollution would increase
incrementally related to the amount of vehicle traffic generated. None of these uses
would be expected to generate significant water pollution.
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City Owned Golf Course.
~ A golf course would require about 150 acres which, if city owned, would
be removed from the property tax rolls. Golf courses are only profitable if there is no
need to capitalize the land costs. In private development situations, this occurs
because the presence of the golf course adds to the value of surrounding property
and, hence, there is no need to capitalize the land cost for the golf course directly.
Adding additional cost to the price of the industrial land remaining if a golf course
were developed would work against industrial development in the area.
Traffic. Golf courses are Iow traffic generators.
Demand for Services. Golf courses have a fairly limited demand on city services with
the exception of water. In South Poway, reclaimed water will be available in the
future.
Crime. See discussion above.
- pollution. Because of the fertilizers used on the extensive lawns, traditional golf
courses can be significant sources of water pollution.
p~lgmar Colleoe Campus It is anticipated that a campus of Palomar Community
College will be built in Poway in the next few years. The South Poway Business Park
has been mentioned as a possible location for such a campus. The community college
district would like to have about 16 acres available for their ultimate use.
Finances. As a publically owned facilitv, a community college campus would be
removed from the property tax rolls. If the campus was located near retail
development, it could provide sales tax revenues through purchases by students and
staff of the college.
Traffic. Traffic generation patterns for a 2-year community college are very similar to
those of industrial development with the exception that the outbound P.M. peak is
about half that of industrial.
Demand for Services. A community college campus would not be expected to have
an unusually high demand for services.
Crime. See discussion under Retail/amusement/travel above.
Pollution. A community college campus would not be expected to generate significant
pollution.
5 of 7 MAR 23. 1995 ITEM ,'
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March 210 1995
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h r n i r i n . There is a state law that requiresa 10-mile separation between
campuses of community colleges in different districts. A campus in the business park
would be within 10 miles of Mira Mar Community College and may not be approved
by the State Chanceller's Office.
Housino. At various times, particularly during discussion of potential affordable
housing sites, the possibility of building housing in the South Poway areas has arisen.
Finances. The only revenue directly generated by housing is property tax which, in
the redevelopment project area, goes to the Redevelopment Agency rather than to the
City.
Traffic. While housing generates total ADT's similar to that of industrial development,
the direction of flow would typically be the opposite of that for employment uses such
as manufacturing or office.
Demand for Services. In addition to general city services, housing requires
educational services which are not required by the other uses being considered. Each
dwelling unit in Poway currently uses about 570 gallons of water per day and
generates one "equivalent dwelling unit" of sewage.
Crime. See discussion under retail/amusement/travel above.
Pollution. No significant pollution problems would be expected from residential
development.
Other Considerations. The maximum number of residential units allowed within the
South Poway Planned Community was established by Proposition FF which was
adopted by the voters in 1988. Approval of additional units would require a vote of
the people.
Office Uses. Another possibility for the business park would be to allow additional
office development. While office uses would be compatible with the industrial park
type development currently allowed, there is a question of how much demand for
office development exists in the area.
Finances. Office development generally has a higher value than industrial and would,
therefore, add more to the property tax base. While this would benefit the
Redevelopment Agency it would not add to the general fund. There would be only
limited sales tax generated.
6 of 7 [,'1AR ~ 1995 FJ'E~ 2+ ~
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March 21, 1995
Page 7
Traffic. Office uses generate about four time as much traffic as industrial uses and
have similar peak hours. Office development could have a significantly negative
impact on traffic in the area, therefore.
f r rvi . Office uses would not be expected to have excessive demands
for services.
Crime. See discussion under retail/amusement/travel above.
Pollution. Office uses are not significant polluters although there would be
incremental air pollution related to the increased traffic generation.
RECOMMENDATION
It is recommended that the city council receive and file this report.
ATTACHMENTS:
A. List of permitted, conditional and prohibited uses
_ B. Map of land use categories in the business park
C. Map of ownerships in the business park
D. List of businesses currently in the business park
E. Aerial photo of development in the business park
F. Map of improvements currently in place
G. Peak Hour traffic generation per acre by use
H. Vehicular traffic generation rates
I. Re/nvent/ng Rea/Estate, Urban Land Institute
J. South Poway Industrial Park - Economic Analysis
JLB:RWQ
E:\ClTY\SPOWAY.AGN
7 of 7 l,lAR211995 FrE~ h ~,
E. LIST OF PERMITTED~ CONDITIONAL AND PROHIBITED USES 1N THE
AND LI ZONES
The following uses shall be permitted where the symboi "P" appears, shall be
permitted subject to a Conditional Use Permit where the symbol "C" appears, and
shall be prohibited ~vhere the symbol "X" appears:
I? LI
1, Research and Development
a. Scientific research development activities; P X
laboratories and facilities for scientific research,
development and testing
b. Headquarters or administrative offices of firms P X
engaged in research, development and manufacturing
on the premises when such use is restricted to one
single company per parcel
c. Manufacturing prototype fabrication; production of P P
products requiring advanced technology and skills
directly related to research and development
activities on the premises
d. Production of experimental products p p
e. Manufacturing of biochemical research and diagnostic P P
compounds to be used primarily by universities,
laboratories, hospitals and clinics for scientific
research and development
2. Manufacturing
a. Establishments engaged primarily in the design, P P
development, manufacturing, compounding,
fabricating, assembly, testing, repair and processing of
manufactured products, including the following
permitted uses:
1) manufacturing of products from previously P P
prepared materials such as: canvas, cellophane,
cloth, cork, felt, fiber, fur, glass, leather, paper
-55-
Attachment A
I,]AR g i 1995 I'iEi~tl 4 , ~
(no milling), precious or semi-precious stones or
metals, plastics, shell, textiles, tobacco, wood,
and yarns; novelty items, (not including
fireworks or other explosive type items),
electrical and related parts; electrical
appliances, motors, and devices; radio,
television, phonograph, and computers;
electronic precision instruments; medical and
dental instruments; timing and measuring
instruments, audio machinery; visual machinery;
cosmetics, drugs, perfumes, toiletries, and soap
(not including refining or rendering of fats or
o/Is).
2) Furniture upholstering
3) Rubber and metal stamp manufacturing
4) Bottling plants
5) Cement products, ready-mix plants, asphalt
batch plants as temporary uses as called out in
the Gravel Resources section of the 5outh Poway
- Planned Community Development Plan (Volume
l).
3. Warehouse and Distribution
a. Storage warehouses and wholesale distribution of the P P
following products: Drugs, chemicals, and allied
products, dry goods and apparel, groceries and related
products, electrical goods, hardware, plumbing, and
heating equipment and supplies, machinery, equipment
and supplies, tobacco and tobacco products, beer, wine
and distilled alcoholic beverages, paper, paper
products, and kindred supplies, furniture and home
furnishings and ice.
b. Storage warehouses and wholesale distribution uses: X P
Mini-storage/warehouses, public storage, moving and
storage firms, building equipment/tool rentals,
truck/automobile fleet storage, trailer/truck/bus
terminal, earthmoving equipment storage/sales/rentals
and repairs and storage yards.
c. Storage warehouses: storage of fuels and hazardous P P
chemicals shall be permitted subie<:t to City of Poway
-56-
regulations wher~ such storage is necessary to support
the primary use on-site. No warehousing or
distribution of fuel or hazardous chemicals shall be
permitted.
4. Accessory Uses
The following on-premise accessory uses shall be permitted:
IP LI
a. In-plant cafeteria, gymnasium/showers and day P P
care facilities which are only intended to serve
employees and others affiliated ~vith the primary
uses of the premises;
b. Retail Outlets for research, development, P P
manufacturing or warehouse uses where such
retail use is accessory to the primary industrial
use and does not exceed 25 percent of the gross
floor' area of each building. These retail outlets
shal! not be a freestanding structure and shah
support the primary tenant of the building.
- 5. Industrial Support Services X P
The fo{lowing uses shall be permitted as support
services and shall be limited to ten percent of the
gross floor area of each building. These support
services shal! not be a freestanding structure, shall be
oriented away from the major public rights-of-way,
and shall support the primary tenant of the building or
be local-serving uses· The permitted support services
include: data processing services; office furniture and
office equipment display, sales and servicer cleaning
and dying works, laundry and dry cleaners~ drafting,
blueprinting and photocopying, commercial printers,
office supply establishment, including stationers,
addressing, secretarial and telephone answering
services; pharmacies (sale of drugs, medicine and
medical supplies only)i medical appliance sales;
restaurants~ and travel bureaus.
(4. Other Industrial Uses C C
Any uses which the City Council determines are
similar in character to the permitted and compatible
uses listed in this section and which are clearly within
the intent and purpose of the IP and LI zones.
-57-
LI
7. Public Use Amenities
a. Bicycle trails, pedestrian/jogging trails and staging P P
areas, public transit stops.
g. Public and Private Utility Uses
a. Public utility electric transmission and distribution X P
substations.
b. City governmental services and facilities such as fire P P
stations, police stations and other such facilities.
c. Other governmental services and facilities C C
d. Gas regulators and communications equipment P P
buildings developed in accordance with development
plans approved for the parcel.
e. Telecommunications towers C C
f. Cogeneration plants producing 2 megawatts or less P P
9. Other Uses
a. Multiple-tenant, commercial for-lease office build- X X
ings.
b. Agricultural packing houses, metal forging, X X
fireworks/explosives, refining, rendering, hazardous
chemicals/materials manufacturing, tire retreading,
recapping, and manufacturing, mobile home
manufacturing, paint manufacturing, stockyards or
slaughter of animals.
c. Buildin§ material/lumber yards, contractors yards, X X
- building material/lumber yards, hazardous
materials/chemicals/fuels, trash, or refuse processing
or distribution. Storage of fuels and hazardous
chemicals shall be permitted if necessary to support
the primary use on-site.
d. Residential dwellings, churches, hospitals, hotels, X X
motels and other similar uses offering lodging to
guests, convelescent care facilities, schools except for
trade schools accessory to a permitted use, and trailer
parks.
e. Commercia! 'uses except for Industr[a! Support X X
Services for up to J. 0 percent o~ the gross f!oor area o[
each parcel, or Retail Outlets as an accessory use ~or
up to 25 percent of the gross f!oor area of each parcel.
Il. USE STANDARDS FOR SOUTH POWAY COMMERCIAL (SPC) ZONE
The South Poway Planned Community includes 28 acres of commercial-office use
within Subareas 1,2 and 3. These commercial-office areas are designated SPC
(South Poway Commercial) and are intended to support the adjacent industrial
areas along the South Poway Arterial. The SPC zone is primarily intended ior
commercial o~fice uses, but various retail support services are also permitted.
These relatively small commercial areas will serve the o~fice and retail needs of
employees within the South Poway community and travellers on the South Poway
Arterial. The plan does not include large commercial centers that would attract
significant numbers of trips from the already developed areas of Poway.
The following uses shall be permitted where the symbol "P" appears, shall be
permitted subject to a Conditional Use Permit where the symbol "C" appears, and
shall be prohibited where the symbol "X" appears.
SPC
A. Administrative and Professional Services
I. Administrative offices; financial institutions, ' P
clerical and legal services; counseling services;
public utility company offices.
2. Medical, dental and related health services. C
B. General Commercial Uses
I. Art, music and photographic studios and supply stores P
2. Athletic and health club P
3. Barber and beauty shops P
4. Blueprint and photocopy services when operated
in conjunction with a professional office of
engineering, planning, surveying, architecture
drafting - P
5. Cleaners including dry cleaning with or without
cleaning machinery on-site P
6. Day nurseries, day care schools C
7. t~ating and drinking establishments
a. Bars (no entertainment) C
b. Restaurants, coffee shops, delicatessans with
or without alcoholic beverage C
c. Snack bars, take-out only, refreshment
stands contained within a building P
SPC
d. Fast food restaurants with drive-in or
drive-through. C
8. Educational institutions, public or private, including
vocational schools P
9. Convenience stores, drug stores with and/or without
pharmacies P
10. Furniture stores, with or without repair and
upholstery (no outdoor storage and/or display
except as permitted by the Zoning
Development Code of the Poway Comprehensive Plan.) P
l }.. Gasoline dispensing and/or automotive service
stations C
12. Car Washes and rental agencies C
13. Hotels and motels C
14. 3anitorial services and supplies P
15. Liquor stores P
16. Newspaper and magazine stores, including printing
and publishing
17. Office supplies/stationery stores P
15. Photocopying services P
19. Printing shops P
20. Recycling drop-off bins located in the parking
lot or other suitable area with property owners'
permission, other than charitable or school
sponsored permitted by the Zoning Development
Code of the Poway Comprehensive Plan. P
21. Swimming pool supplies P
22. Television, radio sales and repair P
23. Adult businesses as defined in the Zoning Develop- X
ment Code
24. Antique shops X
25. Apparel stores
26. Appliance stores and repair X
27. Arcades and electronic games X
28. Automobile and/or truck services, including but not C
limited to body repair, painting, sales,
29. Bakeries - retail only X
30. Bicycle shops, non-motorized X _
31. Boat and camper sales and service X
32. Book and §irt stores X
33. Candy stores and confectionaries X
X
34. Catering establishments
35. Commercial recreation facilities not X
otherwise listed
36. Equipment rental yards including, but not limited X
to, trucks, trailers, hitches and service thereof
37. Feed and tack stores X
SPC
35. Florists Shops X
X
39. Hardware stores
40. Hobby shops X
X
4i. 3ewelry stores
42. ~unior department, department stores, discount X
department stores and membership department stores
43. Mortuaries X
4#. Motorcycle sales and services including X
motorized bicycles
45. Nurseries and garden supply stores. X
46. Retail stores and shops including but not limited X
to variety, shoe, toys
47. Sign painting shops X
~g. Stamp and coin shops X
49. Supermarkets X
50. Theaters (motion picture and playhouse) X
51. Tire sales and service X
52. Vehicle storage yard X
53. Veterinary offices or animal hospitals X
C. Public and Semi-Public Uses SPC
I. Clubs and lodges including YMCA, YWCA, and P
- similar youth group uses (no alcoholic beverages
shall be served or sold except for speCial events
permitted by the Zoning Development Code).' Clubs
and lodges serving or selling alcoholic beverages
under other conditions shall be prohibited in the
SPC Zone.
2. Post office branch P
3. Convalescent homes and hospitals X
4. Religious institutions X
5. Group care facilities or residential retirement X
ho te Is.
~E Z
Z
Land Use Categories
Attachment B
o z_~
Businesse,~-Currently in the Bus ess Park
i BUS~NI:bb NAM~: It~Ub~m~b~ I 5 I REEt NAME I TYPE OF BUSINESS
!ADI PROPERTIES, INC. 112255 Parkway Centre Dr. IReal Estate Development/Property M
~' ADVANCED COMPUTER SOLUTI 112675 Danielson Court Suite 407 Computer Equipment Assembly
AHERN RENTALS 12585 Kirkharn Court --- Equipment Rentals
AIR CONTROL MECHANICAL 12528 IKirkham Ct. Suite #11 IAir Conditioner/Refrigerator Contract
ALLSORT INC I12925 '~Srookprinter Place Suite 300 !Dry Agr cu tura Process ng
AMERICAN TECHNOLOGY CORPi112800 iBrookpr nter P ace [Consumer Electronic Manufacturer
ANACOMP, INC I' 2365 Crosthwaite Circle IManufacturing Micrographic Equipm
B F & M, LTD.11 2580 Stowe Drive [-Property Ownership
BALA BOOKS, INC. '12520 Kirkham Ct. Ste 7 IPublishers
BAVARIAN RENNSPORT 12544 Kirkham Ct, #16 ,Auto Restoration
BEAUTIFUL FLOOR INSTALLATI 2675 !Danielson Ct. #403 Floor Installation
BELL BRAND FOODS 12650 Brookprinter Place Suite 111 Wholesale Delivery
BIOSCAN, INC 12500 Stowe Drive Used Radiology Equipment
BLACK MOUNTAIN FOUNDATIO 13855 Stowe Drive Shooting Range
BLACKINGTON TOOL AND CUTT 12520 Kirkham Ct. #C-6 Light Manufacturing-Tool Sharpenin
BRIAN F. SMITH & ASSOCIATES 12528 Kirkham Court Suite 3 Archaeological Consulting
C.A.S.E.L. INTERNATIONAL 12568 !Kirkham Court Wholesale Distributor
~,F. POMERADO INC. 13000 Gregg Street Land Development
2ALJFORNIA DATA CABLE AND 12545 Kirkham Court IMa~facturi~g Computer Cables --
2ARPET COUNTRY 12675 Danielson Ct.IWarehousing of Carpet and Vinyl
:LASSIC BUSINESS REFURBISHI ~2544 Kirkham Ct. Ste. 8 Upholstery
:NA/CNC DESMEDT SERVICES 12528 Kirkham Court B2 ~etrofitting Computer Controlled Ma
:ONTOUR FINE TOOLING (CA) I 12600 Stowe Drive, Suite 3 ~epair of cutting tools
,~OR-O-VAN MOVING & STORAG 12375 Kerran Street Moving & Storage
)EVWARE MAIL SERVICE 12520 Kirkham Court Suite 1 Boftware Sales
~IVERSIFIED COATED FABRICS, 12255 Kirkham Road 8300 Nholesale Vinyl Materials
31VERSIFIED HARDWOOD PROD 12900 Brookprinter Place Suite B ~torage and Warehouse for Doors
DMA VENDING 12544 Kirkham Ct. #Al 1 Vending
DURASY'S INCORPORATED 12655IDaniels°n Court Suite 306 =_lectronic Equipment Manufacturing
- ECONOMIC LIGHTING TECHNOL 12580 IStowe Drive .ighting
END TIME PRINTERS 12520 Kirkham Ct. //5 Bilk Screen Printing
EURO ENTERPRISES 12544 Kirkham Ct. //13 rool Manufacturing
EXECUTONE INFORMATION SYS 12250 Kirkham Road ~epair Center/Warehouse
EXPRESS SERVICE PRINTING 12675 Danielson Ct. Suite 401 ~rinting
FERRIN DOOR AND WINDOW 12675 Danielson Court Ste, 402 )DOt & Window Systems
FOCUS CO. 12300 Stowe Drive Ste. B & C -'lectronic Distribution
FORD FINISHES OF CA, INC. 12185 )earborn Place ~Vholesale Paint Operation
FORTEN CORPORATION 12320 Btowe Drive #J IWholesale Sporting Goods
FRANKLINS INDUSTRIES OF SA 12544 (irkham Court Suites 1 & 2 Machine Shop
GPS TECHNOLOGIES, INC. 12675 )anielson Ct. #406 _ight Manufacturing and Assembly
GRAVA ENTERPRISES i12520 (irkham Ct. Ste. #4 Wholesale Clothing
GREAT WESTERN COIN, INC. 12678 ~rookprinter Place Vending Company
HOL DAY PROMOT ONS AUD O/ 12675 3anielson Ct. #410 Audio & Video Distributors
HOME 2 OFFICE COMPUTING S 12600 Btowe Drive Ste. 11 Consulting
HORIZON ENGINEERING INC 12528 Kirkham Ct. Machine Shop
HUGHES MISSILE SYSTEMS CO 13550 Stowe Drive Warehouse/Office
HUNTER DOUGLAS EABRICATIO 12400 Stowe Drive Window Blinds Manufacturing
ICE CARVINGS BY JAMES J. LO 12520 Kirkham #5 Ice Carvings
~-NTEGRATED SYSTEMS GROUP 12655 Danielson Court Suite 301 Computer Systems Integration &Te
INTER-GLOBE U.S.A. 12925 Brookprinter Place Suite C Office/~Narehouse-Light Assembly
INTERNATIONAL LIGHTING & SE 12580 Stowe Drive, Ste. B Retail/ Consulting
J V TOMAHAWK INC. 12255 Kirkham Road Suite 100 Manufacturing
JAPER ELECTRONICS, INC 12900 Brookprinter Place Ste C Retail, Wholesale & Export of Electr
JOHNSON STORAGE & MOVING 12525 Stowe Drive Moving & Storage
K & D INSTALLATION 12340 Stowe Drive Office Furniture - Moving & Storage
-~EATIVE KIDS COMPUTER CA 12600 Stowe Drive Ste 11 Computer Training
.-EGGS PRODUCTS, INC. 12310 Stowe Drive Ste. A Wholesale Distribution
.ABARBERA ENGINEERING & DE 12675 Danielson Court Suite 414 Assembly
~1.1. "MIKKI" TUGGEY, CPA 12600 Stowe Drive #12 CPA
MAILING CONCEPTS !12625 Stowe Drive Direct Mail
Attachment D
BUSINESS NAME IBUSINESS I STREET NAME TYPE OF BUSINESS
MAREDY CORPORATION I~2215 iKirkham Road Ste. 400 Mail Order
MARKAY ENTERPRISES 112544 [Kirkham Ct., Suite A-lO IPet Food Distribution
I
MERRY MAIDS I12635 ~Danieison Ct. #201 House Cleaning
MITCHELL INTERNATIONAL112245 Kirkham Road Suite 100-400 Warehousing
MOBILE MAINTENANCE SYSTEMi12625 IDanielson Ct. #1 0 Sates and Service of Commercial
MODULAR BUILDING CONCEPTSI12580 iStotler Court Soil & Lease Modular Buildings
MONTGOMERY ELEVATOR COM I12150 Tech Center Drive Sales/Service elevator
NAPA AUTO PARTS I12875 Brookprinter Place Suite B & C Wholesale Auto Parts
NORRIS COMMUNICATIONS 112725 ~lStowe Drve Electronic Research & Development
'qORTH COUNTY MAINTENANCE 12255 ~Parkway Center Drive Maintenance
~XT 112528 ~(irkham Ct. #9 Retail Store
3LHAUSEN BILLARD MFG. INC. 12460 Kirkham Court Pool Table Manufacturing
3PTICS MASTERS CORP 12625 Oanielson Court Suite 105 IPrecision Optical Manufacturing
=AC[FIC BOOKS AND TAX 12600 Stowe Drive #1 'Accounting/Tax Service
3ANOSPREY INC. 12254 lavelli Way Golf Products
PENNZOIL 12215 Kirkham Road Suite 100 Petroleum Product Sales
PIONEER FLOOR & BUILDING M/~ 12625 3anielson Ct. Ste. 110 Janitorial Service
PLAN S 12528 ~,irkham Court Wholesale Skateboard Distribution---
POWAY DELI 12600 Stowe Drive #2 Restaurant
POWAY GLASS & SCREEN 12320 ~towe Drive #A Retail/Wholesale Glass
POWAY GYMNASTICS 12850 ~rookprinter PI Gyrn~astics school or training facilit
PRECISION PRINT & COPY 12600 5towe Drive Printing & Grap~T~'
PREMIER FOOD SERVICES ,12365 Srosthwaite Circle Food Service
PREMIER RECOVERY SERVICE 12300 Stowe Drive Suite A Recovery Service
PRODUCTION TOOLING SYSTEM 12675 Danielson Court Ste. 408 Mold Making
PROLINK iNTERNATiONAL TECH 12600 5towe Drive #10 Computer Sales/Mostly Wholesale
PSICOR, INC 12925 Brookprinter Suite D Medical Services
QUALITY ASSEMBLY 12900 Brookprinter Place Suite E Electronic Assembly
~.A. MULLET 12528 Kirkham Ct. 85 Cabinet Manufacturing
RAINBOW CRANE INC. 12678 Brookprinter Place Manufacturing
SAN DIEGO MACHINERY MOVER 12375 Kerran St. Machinery Moving & Storage
SAN DIEGO MULTIWlRE SYSTE 12550 Stowe Drive Manufacturer
SANCHEZ SPECIALTY MERCHA~12625 Danielson Court Ste 101 Repairs
SATCOM ELECTRONICS, INC 112625 Danielson Ct., Suite 104 Electronics Research
SCENIC VIEW BUSINESS PARK 12600 Stowe Drive Suite 3 Leasing Office
SCITRONIX 12655 Danielson Court Suite 312 Engineering Design Services
ECURE CONCEPTS 12900 Brookgrinter PI. #D Consulting
SERVPRO OF POWAY/RANCHO 12900 Brookprinter Place #H Carpet Cleaning
~IERRA SNACKS 12528 Kirkham Court Suite 10 IVending
,MART GOLF, ~NC 12625 Danielson Court Sales
~ONIC DRY CLEAN AIR FILTER R 12170 Tech Center Drive, Suite A ~ir Filter C[eaning
SONIC DRY CLEAN INC. 12170 Tech Center Drive ~ir filter cleaning systems sales & m
SPOONERS BUILDING PRODUCT 12525 Kirkham Court Subcontractor
SPOONERS WOODWORKS 12525 Kirkham Court Noodworking
SPORTSPARK AT POWAY 12349 Vlclvers Ct. ~ecreation Services
SR PACKAGING CORPORATION 12215 (irkham Road #300 ndustrial Pkg Supplies
T.M. COBB 13450 Stowe Drive IDoor Manufacturing
TEK-ICE, INC. 12330 ~towe Dr.!ice Skating Rink
TIERRA MECHANICAL 12527 Kirkham Court -teating & Air Conditioning Contract
TURBO INTERNATIONAL 12655 Danielson St., Ste.305 :3istributor
U.S. WEST CELLULAR OF CA., I 12544 Kirkham Ct. #18 ~ellular Transmission Facility
ULTIMATE POWER SOLUTIONS 12544 Kirkham Court Suite 19 Electronic Test and Light Assembly
UNITED FABRICARE SUPPLY, IN 12775 Stowe Drive Laundry and Dry Cleaning Supply
UWE SCALE CO., LTD. 12600 Stowe Drive, Ste. 10 Electronic Scales Wholesale
V.Q.S. ENTERPRISES 12225 K[rkham Road Commercial Printer
VOICEIT TECHNOLOGIES INC. 12925 Brookprinter Place Ste. D1 Electronics
W.T, BILLARD INC. 12255 Kirkham Road #400 Material Handling Equipment Sales &
WASSCO 12778 Brookprinter Place Wholesale Distribution of Electronic
WESTERN PARCEL EXPRESS 12200 Kirkham Freight/Parcel
WIEDENBACH AMERICA, ~NC. 12655 Danielson Court Suite 308 Retail Sales
IZOOK'S WAREHOUSE FOR QU L 2625 Danie[son Court, Ste. 111 Quilting Sales
~ San Diego
(NOT SO) [ASSOCIATION OF
BRIEF GUIDE OF VEHICULAR TRAFFIC GENERATION RATES ~ GOVERNMENTS
FOR TH E SAN DIEGO REGION Suite 600, ~irsl ~nterslale P~a~e
401 B Street
San Diego. California 92101 --
OCTOBER 1993 (619)595-5300 Fax (619)595-5::,
NOTE: This listing only represents a Quide of average, or estimated, traffic generation "driveway" rates and some very general trip data for land uses (emphasis on acreage and building square footage)
in the San Diego region. These rates are subject to change as future documentation becomes available, or as local sources are updated. For more specific information regarding traffic data and trip rates,
please refer to the San Diego Traffic Generators manual. Always check with local iurisd[cfions for their preferred or applicable rates.
LAND USE TRIP CATEGORIES ESTIMATED WEEKDAY VEHICLE HIGHEST PEAK HOUR % (plus IN:OUT ratio) TRIP LENGTH
[PRIMARY:DIVERTED:PASS-BY]' TRIP GENERATION RATE (DRIVEWAY) Between 7-9 A,M. Between 4-6 P.M. (Milee)~
AGRICULTURE (Open Space) ........................................ [80:18:2] 2/acre" 10.8
AIRPORT ................................................................................ [78:20:2] 12.5
Commercial 12/acre, 100/flight. 70/1000 sq. ft.'* 6% (6:4) 7% (5:5)
General Aviation S/acre, 3 flight. 7/based aircraft' **
Heliports 100/acre" 10% (6:4) 15% (5:5)
AUTOMOBILEs
Car Wash
Automatic 9gO/site, 600/acre" 4% (5:5) 9% (5:5)
Se~f-serve lO0/wash stall" 4% (5:5) 8% (5:5)
Gasoline ............................................................................ [21:51:28] 2.8
With/Food Mart 150/vehicle fueling space" 6% (5:5} 8% (5:5)
With/Pood Mart Et Car Wash 155/vehicle fueling space*' 8% (5;5) 9% (5:5)
Old Service Station Design 750/station, 130/vehicle fueling space" 7% (5:5) 11% (5:5)
Sales (Dealer Et Repair) 50/1000 sq. ft., 300/acre, 60/service stall' '* 5% (7:3) 8% (4:6)
Auto Repair Center 20/1000 sq. ft.. 400/acre, 20/service stall' 8% (7:3) 11% (4:6)
CEMETERY 6/acre'
CHURCH (or Synagogue) ............................................... [64:25:11] 9/1000 sq. ft.. 30/acre" (quadruple rates 4% (8:2) 8% (5:5) 5.1
for Sunday. or days of assembly)
COMMERCIAL/RETAILs
Super Regional Shopping Center 40/1000 sq. ft.,c 400/acre' 2% (7:3) 9% (5:5)
{More than 60 acres, more than
600.000 sq, ft., w/usually 3+
major stores)
Regional Shopping Center .......................................... [54:35:11] 50/1000 sq. ft.,c 500/acre* 2% {7:3) 9% (5:5) 6.2
(30-60 acres, 300,000-600.000
sq, ft., w/usually 2+ major stores)
Communiry Shopping Center .................................... [47:31:22] 70/1000 sq. ft., 700/acre'" 3% (6:4) 10% (5:5) 3.6
(10-30 acres, 100,000-300.0. O0 sq. ft..
w/usually I major store and detached
restaurant)
Neighborhood Shopping Center 120/1000 sq. ft., 1200/acre*" 4% (6:4) 11% (5:5)
(Less than 10 acres, less than
100,000 sq. ft.. w/usually grocery
store Et drug store)
Commercial Shops ........................................................ [45:40:15]
Specialty Retail/Strip Commercial 40/1000 sq. ft., 400/acre' 3% (6:4) 9% (5:5) 4.3
Supermarket 150/1000 sq. fl,, 2000/acre '" 4% (7:3) 10% (5:5)
Convenience Market (15-16 hours) 500/1000 sq. ft." 8% (5:5) 8% (5:5)
(24hours) 700/1000 sq. ft." 9% (5:5) 7% (5:5)
Discount Club 50/10OO sq. ft.. 800/acre" 1% (8:2) 9% (5.5)
Store 70/1000 sq. ft., 600/acre *' 2% (6:4) 10% {5:5)
Furniture Store 6/1000 sq. ft., 100/acre" 4% (7:3) 9% (5:6)
Lumber Store 30/1000 sq, fl,. 150/acre" 7% (6:4) 9% (6:5)
Hardware/Paint Store 60/1000 sq. it.. 600/acre" 2% (6:4) 9% (5:5)
Garden Nursery 40/1000 sq. ft.. 90/acre" 3% (6:4) 10% (5:5) --
EDUCATION
University (4 years) ........................................................... [91:9:O] 2.5/student, 100 acre' 10% (9:1) 9% {3:7) 8,9
Junior College (2 years) ................................................... [92:7:1] 1.6/student, 80/acre' 12% (9:1) ' 8% {3:7) 9.O
High School ...................................................................... [75:19:5] 1.4/student, 11/1000 sq. ft.. 5g/acre' '* 20% (8:2) 14% (3:7) 4.8
Middle/Junior High ......................................................[63:25:12] 1.0/student. 40/acre" 24% (7:3) 7% (3:7) 5.0
Elementary ....................................................................... [57:25:10] 1.4/student, 14/1000 sq. ft., 60/acre" 26% (6:4) 5% (3:7) 3.4
Day Care .......................................................................... [28:58:14] 5/child, 80/1000 sq. fl." 19% (5:5) 18% (6:5) 3.7
FINANCIAL$ ........................................................................ [35:42:23] 3.4
Bank (Walk-in Only) 160/1000 sq. fl., 1000/acre'" 4% {7:3) 8% (4:6)
With Drive-Through 200/1000 sq. ft., 1500/acre' 5% (6;4) 10% (5:5)
Drive-Through Only 250 (125 one-way)/lane' 3% (5:5) 13% (5:5)
Savings ~ Loan 60/1000 sq. ft.. 600/acre*' 2% 9%
Drive-Through Only 1 O0 (50 one-way)/lane" 4% 15%
HOSPITAL ............................................................................. [73:25:2] 8.3
General 20/bed, 20/1000 sq. ft.. 300/acre' 9% (7:3) 10% (3:7)
Convalescent/Nursing 3/bed" 7% (6:4) 7% (4;6}
INDUSTRIAL
Industrial/Business Par k (commercial included) ........... [79:19:2] 16/1000 sq. ft., 200/acre' 12% (8:2) 12% (2:8) 9.0
Industrial Park (no commercial) 8/1000 sq. ft.. gO/acre' 11% (9:1) 12% (2:8)
industrial Plant (multiple shilt$) .......................................... [92;5:3] 10/1000 sq. ft.. 120/acre' 14% (8:2) 15% (3:7) 11.7 _
Manufacturing/Assembly 4/1000 sq, ft., SO/acre" 20% (9:1) 20% (2:8)
Warehousing 5/1000 sq. ft., 60/acre" 15% (7:3) 16% (4:6)
Storage 2/1000 sq. (t., 0.2/veull, 30/acre' 6% (5;6) 9% (5:5)
Science Research Et Development 8/1000 sq. lt., 80/acre' 16% )9:1) 14% (1:9)
)OVER)
MEMBER AGENCIES: Cities of Carlsbad. Chula Vista. Coronado, Del Mar, El Cajon, Encinkas, Escondido. Impedal Beach, La Mesa, Lemon Grove, National City,
LAND USE TRIP CATEGORIES ESTIMATED WEEKDAY VEHICLE HIGHEST PEAK HOUR % (plus IN:OUT ratio) TRIP LENGTH
[PRIMARY:DIVERTED:PASS-BY]P TRIP GENERATION RATE (DRIVEWAY) Between 7-9 A.M. Between 4-6 P.M. (Milel)r
LIBRARY ...................................................................................... [44:44:12] 50/1000 sq. lt., 400/acre'* 2% (8:2) 10% (5:5) 3.9
7.6
')GING ........................................................................................ [58:38:4]
Hotel (w/convention facilities/restaurant) 1 O/room, 300/acre 6% (6:4) 8% (6:4)
Mota~ 9/room. 200/acre' 8% (4:6) 9% (6:4)
Resort Hotel 8/room. lO0/acre' 5% (6:4) 7% (4:6)
MILITARY ...................................................................................... [82:16:2] 2.5 military B civilian personnel' 9% (9:1 ) 10% (2:8) 11.2
OFFICE
Standard Commercial Office ................................................ [77:19:4] 20/1000 sq. ft.,° 300/acre' 14% (9:1) 13% (2:9) 8.8
(less than 100,000 sq.
Large (High-Rise) Commercial Office ................................. [82:15:3] 17/1000 sq. ft.,° 600/acre' 13% (9:1) 14% (2:8) 10.0
(more than 100,000 sq. ft.. 6+ stories)
Corporate Office (single tenant) 10/1000 sq. ft.. 180/acre' 15% (9:1) 15% (1:9}
Government (Civic Canter) .................................................[50:34:16] 30/1000 sq. it,'* 9% (9:1) 12% (3:7) 6.0
Post Office
Central/Walkqn Only 90/1000 sq. ft." 5% 7%
Community {not including mall drop lane) 200/1000 sq. ft., 1300/acre' 6% (6:4) 9% (6:5)
{w/mail drop lane) 300/1000 sq. ft., 2000/acre' 7% (5:5} 10% (5:5)
Mail Drop Lane only 1500 (760 one-way)/lane* 7% (5:5} 12% (5:5)
Department of Motor Vehicles 180/1000 sq, ft., 900/acre'* 6% (6:4) 11% (4:6)
Medical ........................................................................... i....-[60:30:10] 50/1000 sq. ft., 500/acre' 6% {8:2) 10% {3:7) 6.4
~RKS .......................................................................................... [66:28:6] 4% 8% 5.4
City (developed) 50/acre'
Regional (developed) 20/acre'
Neighborhood/Regional (undeveloped) 5/acre'
Amusement (Theme) 80/acre, 130/acre (summer only)" 6% (6:4)
San Diego Zoo 115/acre*
Sea World 80/acre*
RECREATION
Beach. Ocean or Bay ........................................................ [52:39:9] 600/1000 ft. shoreline, 60/acre' 11% (4:6) 6.3
Beach, Lake (fresh water) 50/1000 It. shoreline, 5/acre'
Bowling Center 30/lane, 300/acre** 7% (7:3) 11% (4:6)
Campground 4/campsite" 4% 8%
Golf Course 8/acre. 40/hole. 600/course" 6% (8:2) 9% (3:7}
Marinas 4/berth, 20/acre' '* 3% (3:7) 7% (6:4)
Racquetball/Health Club 40/1000 sq. ft., 300/acre, 40/court' 4% (6:4) 9% (6;4)
Tennis Courts 16/acre. 30/court" 5% 11% (8:5}
Sports Facilities
Outdoor Stadium 50/acre. 0.2/seat'
Indoor Arena 30/acre, 0.1/seat'
Racetrack 40/acre, 0.6 seat'
Theaters(multiplex) .............................................................. [66:17:17] 80/1000 sq. it, 1.8/seal' 0.3% 8% (7:3) 6.1
7.8
RESIDENTIAL .............................................................................. [ 86:11:3]
Single Family Detached lO/dwelling unit' 8% (2:8) 10% (7:3)
(average 4 DU/acre)
Condominium 8/dwelllng unit' 8% (2:8) 10% (7:3)
(or any multi-family less than 20 DU/acre)
Apartments 6/dwelling unit' 8% (2:8) 9% (7:3)
(or any multi-family units more than 20 DU/acre)
MobileHome
Family ' 5/dwelling unit, 40/acre' 9% (3:7) 12% (6:4) ~'~
Adults Only 3/dwelling unit. 20/acre' 9% (3:7) 10% (6:4)
Retirement Community 4/dwelling unit**
Rural Estate 12/dwelling Unit" E
Congregate Care Facility 2/dwelling unit*' 3% {6:4) 8% (5:5)
4.7
RESTAURANTs ......................................................................... [51:37:12]
Quality 100/1000 sq. it,, 3/seat. 500/acre'" 1% (6:4) 8% (7:3)
Sit-down, hlg5 turnover 250/1000 sq. ft., 7/seat, 1200/acre'" 8% (5:5) 6% (6:4) -~
Fast Food (w/drive-through) 700/1000 sq. ft., 22/seat. 3000/acre'" 4% (6:4) 8% (5:5) ""
Delicatessen (7am-4pm) 150/1000 sq. ft., 11/seat'* 9% (6:4) 0.4% ·
TRANSPORTATION
Bus Depot 25/1000 sq. ft."
Truck Terminal 10/1000 sq, ft., 7/bay. 80/acre** 9% (4:6) 8% (6:5)
Waterport 170/berth, 12/acre"
Transit Station (Rail) 300/acre" 14% (7!~] 15% (3:7)
Park Et Ride Lots 400/acre (600/paved acre)' 14% (7:3} 15% (3:7)
November, 1990):
PRIMARY - one trip directly between origin and pril~nar¥ destination.
Fitted
Ln(T)
0.756
Ln{x)
5251,- T=totaltrips, x= 1,000sq ft.
Fitted curve equation: La(T)= 0.756 Ln(x)+ 3.95 J
Suggested PASS-BY[undivertedor diverted <t mile] percentages for trip rate reductions only during PM peak period (based on combination oflocaldata/reviewandOther sources");
COMMERCIAL/RETAIL
Regional Shopping Center 20%
Community .... 30%
Neighborhood " 40%
Specially Retail/Strip Commercial Iolher) 10%
Supermarket 40%
Comvenlence Market 50%
Oiscount Club/Store 30%
FINANCIAL
Bank 25%
AUTOMOBILE
Gasoline Station 50%
RESTAURANT
ULI on the Future
Reinventing
Real E ate
Underwritten in part by:
~ "~'~ Design and Development
,.~ Prudential Home Building Investors. Inc.
P Id lB I
Urban Land
Instibite
Attachment
About ULl..-the Urban Land Insttblte UI.J Officers
ULI-the Urban Land Institute is a nonprofit educa- Charles H. Shaw, President
tion and research institute that is supported and di-
rected by its members. Its mission is to provide re- Joseph C. Can~aro, Vice President
sponsible leadership in the use of land in order to James J. Chaffin, Jr., V/ce Pres/dent
enhance the total environment.
Wayne Ratkovich, Vies Pre~'dent
ULI sponsors educational programs and forums to eh-
courage an open international exehange of ideas and Peter S. Rummell, V/ce Pres/dent
sharing of experience; initiates research that antici- M. Leanne Lachman, Vice PresidenYSecretary
pates emerging land use trends and issues and pro-
poses creative solutions based on this research; pro- Start Ross, Vice President~Treasurer
vides advisory services; and publishes a wide variety
of materials to disseminate information on land use Richard M. Rosan, Executive Vice Prcsid~nt
and development. Report Re~r~h
Established in 1936, the Institute today has some Rachelle L. Levitt
13,000 members and associates from 46 countries rep-
resenting the entire spectrum of the land use and de- Senior Vice President, Research, Education, and
velopment disciplines. They include developers, build- Publica~kms
ers, property owners, investors, architects, public Dean Schwanke
officials, planners, real estate brokers, appraisers, at- Project Dircctor and Edito~
torneys, engineers, financiers, academics, students, Director, Information $~e
and librarians. ULI members contribute to higher
standards of land use by sharing their knowledge and Michael D. Beyard
experience. The Institute has long been recognized as Sen/or Director,
one of America's most respected and widely quoted J. Thomas Black
sources of objective information on urban planning, Residg~t Fellow/Urban D~velopment Eco~w~mist
growth, and development.
Lloyd Bookout
Richard M. Rosan Director, Re~ideq~tia~Communigy D~velopment
Executive Vice Presid~mt
Robert T. Dunphy
Senior' D~rector, Tmnspo~ztio~Infrus~cturc
Recommended bibliographic listing. D. Seott Middleton
ULI-the Urban Land Institute. ULI o~ t~ Futur~. Direct, Resorf. s/En~'fro~m~
Wsshing~on, D.C.: ULI-~he Urban Land Institute. 1995.
ULI Catalog Number U05 David W. Parham
International Standard Book Numbe~. 0-87420-766-5 Director, Public and Policy Education/Real Estate
List Price of ULI on th~ Futu~: S95 (For information on W°rksh°ps/C°mm~rc'w~l
bulk purchases, call 1-80/~321-5011.)
Report Publication Production Staff
Copyright 1995 by ULI-the Urban Land Institute
625 Indiana Avenue, N.W. Senior Vice President, Research, Education, and
Washington, D.C. 20004-2930 Publications
Rachelle L. Levitt
Printed in the Un/ted States of A. meri~. All rights reserved.
No pm't of this book may be reproduced in any form or by Vice President/Publisher
any means, electrodie or mechanical, including photocopying, Frank H. Spink, Jr.
recording, or by/ny information storage and retrieval sys-
tam, without written permission of the publisher. Managin~j Edit4yr
Nancy H. Stewart
Copy Editor
Heidi Fritschel
Survey Coordinator
David M. Emmey
Art Director
Betsy VanBuskirk
Artist
Jeffrey Urbancic
Production Manager
Dlann Stanlay-Austin
Word Processor
Joanne Nanez
ii
Contents
Foreword .................................................. iv
Preface ..................................................... v
Part I. Overview
Real Estate Markets in Perspective Dean $chwanke ......................... 2
Part II. Commercial Development
Remak~g the Shopping Center Patrick L. Phillips ......................... 18
Revitalization through Entertainment-Enhanced Development
Michael S. Rubin .............................................. 26
Repositioning the Office Building Harold L. Adams and David W. Parham ........... 36
The Economics of Renovation in the Commercial Property Sector
J. Thomas Black~ . ............................................. 44
Part III. Residential and Community Development
Rethinking Master-Planned Communities V.R. Halter ........................ 56
Reinvesting in Transportation Frederick C. Dock .......................... 64
iii
Foreword
Successful land use decisions have always required the. best information avail-
able. The composition of such information has continued to expand and must
now fully distill the impacts of larger social, political, and econom/c trends.
ULI on the Future, an annual report of the Urban Land Institute, was created in
1993 to meet this challenge.
As trustees of ULI, we know and are proud of the organization's abilities to serve
the information needs of development decision makers.
As leaders in our respective companies, we recognize the value ULI delivers and
appreciate operating in a more enlightened environment because of its work.
Our companies are pleased to sponsor the third edition of ULI on the Future. "Re-
inventing Real Estate" focuses on improving the value of ex~sting development, a
strategic imperative that will be with us into the next century. We are honored to
help bring this book to ULI's many constituencies.
Peter S. Rummell Claude J Zinngrabe, Jr
President Chairman
Disney Design and Prudential Home Building Investors
Development Company "
Preface
Unlike real estate cycles of the past, the current real estate recovery has little
to do with new development or new construction; it pertains rather to ira-
provements in the performance of existing properties. As a result, the cur-
rent recovery is rather weak compared with those of the past; because it has not
generated substantial new construction, except in housing, it is having minimal ira-
pact on the overall economy. Compared with property market performance over
the past few years, however, the recovery is a welcome improvement.
As we clear the debris and begin anew, it is evident that much of the focus for the
next several years will be, as it has been in the past several.years, on managing
and repositioning existing real estate assets. The recovery is delineating clearer
and sometimes sobering options for owners of existing properties regarding reposi-
tioning and renovation. Many properties that were suffering have seen performance
improve significantly with the broader economic recovery, others are continuing to
suffer because of any number of problems, and still others are simply obsolete in
their current condition.
The 1995 edition of ULI on the Futu~'e uses the theme "Reinventing Real Estate"
to explore the many issues involved in this unusual recovery and its heavy focus on
the management and improvement of existing properties and property perform-
ance. The publication is divided into three sections. Part I provides an overview of
general real estate market trends, drawing on a recent survey of market experts
as well as informal observations made by numerous individuals at ULI's semian-
nual meeting in Orlando. The bottom line consensus is that the market is improv-
ing in most sectors and areas faster than many anticipated, and there are now even
some fears that new development will begin to stifle the recovery in rents andvalues.
Parts II and III contain six papers commissioned by ULI that explore the reinvent-
ing theme as it relates to various issues. Patrick L. phi11~ps looks at the vast changes
occurring in the world of retail and the implications for existing shopping centers.
Michael S. Rubin covers the many exciting concepts being developed in the enter-
tainment world .d how they relate to existing development. Repositioning the
office building is the subject of Harold L. Adams and David W. Parham's paper,
which reviews the changing demands of office building tenants and what is being
done to meet these demands. J. Thomas Black provides an economic perspective
on renovation of commercial, properties, emphasizing that many older buildings
are having a tough time competing today; many that are not especially old are al-
ready obsolete.
While most of the reinventing has taken place in the hard-hit commercial side of
the real estate market, residential and community development--including master-
planned communities and transportation infrastructure and systems--is changing
as well. In Part III, V.R. Halter discusses the many changes in the residential mar-
ket and the ways that developers are rethinking planned communities to meet the
needs of the next century. Frederick C. Dock takes the discussion to a broader
level in the world of transportation, where he addresses public policy initiatives
and technical innovations that are improving transportation systems and services.
Rapid change has made reinventing, reengineering, and repositioning popular
themes in management circles today, and real estate is no exception. The emphasis
being given to managing existing assets rather than developing new properties
has, at least for the near term, fundamentally changed the real estate industry. Re-
inventing our existing developed areas and real properties---one of the most impor-
tant and valuable asset classes in our economy--so that they continue to be useful
and marketable is imperative not only for real estate but also for the users of real
estate. Productivity in the future will depend upon it. Reinvention and reposition-
ing are critical from a public policy perspective as well, as the alternatives are dete-
rioration or underutilization of much of our existing built environment.
Richard M. Rosan
Executive Vice President
Dean Schwanke
Project Director and Editor, ULI on the Future
Revitalization through
Entefla nment-Enhanced
Development
Michael S, Rubin
f~l~ael s. Rual. is Ilgbe prospect of economic revit~]~-~tion and Trends, Value Shifts, and Economic
pr'"'~ident of MRA ~nter- ~area renewal through entertainment- Restructuring
r~ti0t~l, inc., of Phila-
delphia, a development ~enhanced development has garnered inter-
ac~so~ ~d mar~e- est among developers, local governments, cul- The entertainment sector of the economy is un-
rnent corrupt finn rural institutions, and entertainment companies, dergoing unprecedented expansion and funda-
ment. reso~, a~d a~vat- A survey of prototypes across the ~Jnited States mental redefinition. According to the Bureau of
opn~er~ io~u~. MR~ reveals a staggering array of ambitious projects, Labor Statistics, entertainment accounted for
is cu~n~ i,vo~ in including sports complexes, cultural centers, 12 percent of all net new employment in ~he
str~t~ic I)[annin9 for a
w~e wrist/of enter- urban resorts, urban entertainment centers, United States in 1993, surpassing the health
*~inment-en~oc~ ~e- enterffdm-nent~eni~anced malls, urban theme parks, care industry as the nation's leading job l)ro'
ve~oo~t oroi~c~ in gaming complexes, and entertainment-enhanced ducer. Entertainment, which has traditionally in-
the [Jnit~ $~tes,
and ~tin ~menca. lifestyle retailing. A. review of the trends al- cluded filmed entertainment, recorded entertain-
fecting entertainment-enhanced development ment, publications, toys and sports equipment,
raises a number of questions about the potential amusement and theme parks, theaters, specta-
for broad-based revitalization. What is clear, tot sports, and gaming and pari-mutuel activi-
however, is that for urban areas and mature sub- ties, is being redefined to include a variety of
urban communities this new approach to devel- related activities ranging from interactive enter-
opment, in its various forms, represents a signifl- tainmant to electronics and computer products.
cant impetus to renewal. It is also apparent that This redefinition mirrors the restructuring of
a number of new development products will be the industry as much as it does consumer spend-
created before the end of the decade in response lng patterns. In 1993, according to the U.S. Corn-
to market opportunities tha~; are just beginning merce Department, $341 billion was spenf~ on en-
to be understood, tertainment products ranging from consumer
electronics to specta, tor sports. This expansion
By evaluating the trends and emerging patterns in the definition of entertainment has a direct re-
of opportunity, ! will attempt to answer some of lationship to entertainment-based development.
the fundamental strategic questions that con- On the one hand, bricks-and-mortar projects
front government officials, developers, institu- worth $21 billion are under development, i]~'clud-
tional directors, entertainment executives, and lng new construction, expansions and tenors-
retailers: What are the fundamental shifts occur- t;ious to theme parks, arenas, stadiums, casino
ring in consumer demand and lifestyles? How complexes, theater complexes, museums, con-
will technological innovations affect leisure time vention centers, entertainment districts, and
activities and preferences? Where are the great- retail developments. On the other hand, approxi-
est opportunities for leveraging revitalization mately $100 billion may be spent on entertainment
through entertainment-enhanced and leisure- and communications infrastructure, including
oriented development? her optic networks designed to pipe entertain-
ment into homes. These two parallel patterns of ever. Since 1984, consumer patterns driven by the
investment and development raise the most fun- boomers have steadily sh/fted to entertainment-
damental question underlying entertainment- and recreation-oriented spending. Since 1991, _
based investment: will consumers continue to spending on entertainment and recreation has
increase their spending on entertainment, rec- increased 13 percent, or twice the rate of overall
reation, and cultural venues, or will they i'eall6- consumer spending. Unlike the period from the
cate their spending to at-home entertainment 1950s to the 1970s, when leisure time expendi-
products? The prospects for entertainment- tures were concentrated in vacations, holidays,
based renewal, revitalization, and repositioning and weekends, consumption in the 1980s became
projects rest largely on this question, characterized by smaller unit time expenditures
on leisure, but greater total leisure unit expendi-
Demographics tures. Leisure has become integrated with the
Through the 1990s U.S. consumer patterns will work week in conjunction with the increase in
continue to be dominated by the baby-boom gem hours worked per week, the increase in hours
oration. In the mid-1990s, the 45 to 54 age cohort worked while at home, and the decrease in con-
will grow by approximately 12 million, while by secutive-day vacations. Leisure consumption
decade's end 45- to 64-year-olds will make up over among the boomers is characterized by con-
20 percent of the U.S. population. As the boom- sumption of leisure goods that can be used any-
ers move into their peak earning years they will time (videos, sporting goods) and activities that
confront a variety of at.cult economic, social, and can be scheduled easily (attending a spectator
life value choices. A large segment of this popu- game, visiting a nearby attraction).
lotion will face financial pressures because of the
need to pay for children's college education, save For this cohort of the population, ease of access
for retirement, and meet health and medical costs, has become the determinant for participation in
the 1990s. Indeed, it is this trend that the enter-
Leisure spending patterns of the boomers are tainment and hospitality industries have re-
likely to be well established at this point, how- cently been seeldng to address through online
ULI Leadership CountelTIoint
Proceed with caution--there are risks as spaces are more readily available and Toronto's controversial decision to build
well as opportunities associated with per-square-foot costs are lower. Since a stadium near downtown is no longer
entertainment-enhanced development, saias need to be higher on a per-square* challenged; now that the stadium has
This was the conclusion at a meeting of foot basis in downtown locations, project been operating for almost a year no one
the ULJ Commercial & Retail Develop- viability can be more difficult to achieve,questions the decision's merit.
merit Council (Green Flight). Much recent expedeoce'indicatas that In conclusion, entertainment uses have
Many of the projects cited as prototypes traditional retail does not typically work synergias with some types of retail. The
for this type of development are still con-well with entertainment. Although enter- real question for areas considering enter-
sidered unproven, high-risk ventures, tainment uses added to shopping marls tainment uses as a revitalization strategy
and their early success may be tenuous, may be a large draw, if they have any is, how can ente~inment uses enhance
Deveiopere and operators report that real positive effect on total sales it is for res- what is already there?
economic returns associated with these taurants and tast-focd establishments,
projects are rarely as great as original and rarely for other types of retailers.
projections indicate. Moreover, few of Furthermore, projects that work in one iD-
the projects that are up and running have
been built to the size and scale that were cation may not work in another. The Commercial & Retail Development
structural demographics must be right. Couocil (Green Flight)
originally contemplated. Developers must also sensitively address
Only a limited number of companies the effects on existing neighborhoods. It
have the operations and management ex- may be more difficult with this type of wd;il[Nll:la~ll~,,~ra:~
pertise necessary to undertake this type project than with others to create some- Dougal M. Casey
of project. Simply put, entertainment- thing that enhances the community. Jones Lang Wooten Realty Advisors
New York, NY
enhanced development is not for every- Although entertainment-enhanced devet-
one--it is extremely operations intensive, opment is not a panacea and much re- Linda S. Congiaton
Also, upfront costs are significant. Devel-search needs to be done, this concept Linda S. Congleton and Associates
opers iocking at the potantial for these clearly has promise for revitalizing some In/ine, CA
projects in downtowns, where per-square- areas. Cleveland's new stadium, arena, Kerry D. Vandell
foot COSTS are high. must not base proj- and Rock'n'Roll Hall of Fame are al- University of Wisconsin
ects on suburban prototypes where large ready breathing new life into downtown. Madison, WI
Figur~ 1 will be a further increase in the popuiaxiw of
LEISURE EXPENDITURE PAI'rERNS, 1993 (BILLIONS OF DOLLARS) home entertainment and a deckine in leisutre time
allocated to out-of-home entertaisment settings.
Cocooning Congregating
lng of the population and its increasing diversity
Vicleotaoes $ 2 Live Entertainment $ 6 will not only support the growth of at-home lei-
Magazines and Books $47 Amusement Parks $74 sure, but devastate attendance at public venues.
The current trend of leisure consumption, how-
Cable Television $19 Gaming $28 ever, provides a different picture. In 1993, total
Video Rentals $ 8 Movie Admissions $ 5 leisure consumption was evenly divided between
Home Computers ~Jl Spectator Sports $ 6 at-home, or cocoonLng, activities and out-of-
home, or congregating, activities (see Figure 1).
B~ats/Aircraf~
$~42 $131 Coeooning and congregating~activities are there-
fore likely to be complementary features in a
Source: U.S. 0epartment of Commerce and I~RA lmemati0nal, mass customization of leisure time activities.
VMue choices will be influenced less by the ques-
tion of whether to stay at home or go out than
services, out-of-home entertainment venues, ur- by the existence of constellations of specialized
ban resorts, enhanced arena and stadium envi- leisure products and services that .appeal to spe-
ronments, and the proliferation of retail stores cifie segments of the population.
and restaurants in convenient locations.
Maturation of the Boomers and Xers. America's
Leisure consumption patterns will also be dra- infatuation with a youth culture was driven by
matieally affected by the so-called Generation X the phenomenon of the baby-boom generation.
cohort. Market researchers are only beginning As the boomers mature, the driving lifestyle
to understand the range of value orientations shift will result from a confrontation with the ag-
represented by this diverse group of teens and Lng process and a search for personal fulfillment.
twentysomethings, but it is clear that they are
knowledgeable consumers. While this cohort For boomers the search for meaningful avoca-
may have little spending power until the end of tions or "life after work," approaches to ex-
the decade, it currently expends a higher pro- tended wellness, and the pursuit of communities
portion of income on filmed entertainment, ride of interest will redefine current conceptions of
parks, concerts, spectator events, and recorded retirement and leisure. Highly customized at-
music than the boomers, home services may provide access to specialized
educational, shopping, and leisure programs but
During the 1990s, the population of youths aged are unlikely to fulfill the boomers. For boomers,
17 and under is expected to increase by about access to sports clubs, urban resorts, cultural
6.5 millio~. This suggests an increase in both centers, college outreach programs, and specta-
family-oriented entertainment and recreational tor sports will increase in importance. Ease of
expenditures. Households headed by older access will remain important, as will perceived
adults and dual wage earners will have dispos- value, but boomers will increasingly seek amena-
able income to direct to leisure activities, but ble settings tl~at suppor~ congregating. Tee tirst
will be highly value conscious, given the afore- indication of this desme is wsible ~n tee rapid
mentioned concerns about large-ticket expendi- growth of bookstores with coffee bars, record
tures such as college educations, stores with listening libraries, sporting goods
stores with demonstration areas, in-mall cul-
Values rural attractions, dinner theaters, entertainment-
enhanced restaurants, and other public an&pri-
The maturation and diversity of the U.S. popula- vate settings that support social interaction.
tion in the 1990s will usher in several significant
shifts in lifestyle and values. A number of these The next wave of "thirtysomethLngs," who are
shifts will have a direct influence on how leisure currently part of Generation X, will be more at
time and dollars are allocated, ease with the interactive and online technolo-
gies of the information highway. Like boomers,
Cocooning versus Congregating. The most per- however, this diverse group will be more con-
vasive question for the 1990s is whether there cerned with the customization of leisure time
28
than with the choice between sta~ng at home or
going out. With the increased spending power
that accompanies this group's rise in the work-
place, expenditures on electronics and recrea-
tional gear should increase, especially toward
the end of the decade. From a lifestyle perspec-
tive, the next wave of thirtysomethings are
likely to bring Generation X's emphasis on a bal-
ance between work life and leisure time to the
forefront of consumer consciousness. Reorienta-
tion of the boomers will support this shift.
The affinity with high-tech products wiI] pro-
vide support for new cinema formats, ride film
theaters, virtual reality applications, and themed
entertainment. However, the preference for
"hanging out" with friends at fast food joints,
recreation centers, and bars is likely to shi~ to-
ward restaurants, coffee houses, pubs, and health
clubs. This diverse group is likely to experience grams, which have expanded to such venerable Tho search for
a need to create a shared identity. Venues rang- institutions as the Metropolitan Museum of Art, shared values and
lng from reconceived arena complexes to newly the San Diego Zoo, and London's National Gallery. the boom in country
music have spurted
conceived urban entertainment complexes may the popularity of
address this need. Diversity and Identity venues like Gaylord
Entertainment's
Popularization of High Culture and Oiscoveq The increasing ethnic and cultural diversity of Wildhorse Saloon in
Nashville, a country
Learelng the United States suggests that the leisure, en- music dance club,
tertainment, and recreation market will become restaurant, concert
Another lifestyle shift underway is the populari- highly segmented. Indeed, retailers, television venue, and televi-
cation of '~igh culture" science, technology, and and cable programmers, and cultural institu- sion studio.
history. The current trend toward making zoos, tions have slowly turned to lifestyles marketing
science museums, art museums, and concert halls to draw in the large, underserved markets of
highly interactive are indications of this shift, ethnic and cultural minorities.
These projects range from major renovations of
museums such as Chicago's Field Museum of Simultaneously, this diversity has created a de-
Natural History to new mixes of entertainment sire for shared experiences. Americans are suf-
and culture such as the concept; of Disney~s fering from an emerging identity crisis based on
America, a pJesentation of American history the perceived loss of a shared culture. With little
that combines living history with themed attrac- else in the leisure market providing a medium
tions. Popularization is an effort to make culture, for cultural cohesion, sports teams continue to
science, and history widely accessible through be the most successful source of shared regional
formats that are both entertaining and oduca- identities. David Nasaw, author of Going Out:
tional. This approach has, however, been centre- The Rise and Fall of Public Attractions (Har-
versial. Disney's America, for example, has been perCollins, 1993), has said the country needs a
confronted with opposition not only from envi- new class of public attractions that serve a di-
ronmentalists but also from a consortium of verse population similar to the function the
American history scholars and preservationists, grand movie palaces, vaudeville theaters, and
amusement parks played in the industrial city.
The most interesting feature of this shift is the -.
emergence and growth of 'clmcovar~ learmng.' The spectacular growth of country music and its
Based on intense individual ancl group interac- showcases in Nashville, Branson, Myrtle Beach,
tion with a subject through a series of progres- and A ' ' '
ustm s SLxth Street are another example
sire, self-determined stages, discovery learning of a search for basic shared values in an era of in-
has been adopted by a variety of museums and creasing diversity. Like cocooning and congre-
cultural institutions. The Boston Children's Mu- gating, diverse value orientations and the need
scum and the Indianapolis Children's Museum for shared identity are complementary forces
have led the way in introducing discovery pro- shaping American values and the leisure market.
29
Technology 1) f~zteractive technology, as described, provides
for the customization of visitor experiences as
The explosive growth in leisure and entertainment- well as new forms of social interaction.
based development that occurred at the turn of
the century was clearly driyen by technolo~c~l 2) Miniaturization of ride technology allows
innovations. These innovations included electrifl- themed attractions to be transposed from theme
cation, which produced the opportunity for night- parks to urban settings and malls in formats
time activities in the cities; audio and cinematic that take a fraction of the space,
advances, which led to the grand movie houses;
and the development of trolley lines, which made 3) Amplification and multisensory technologies
downtown accessible, will allow for spectacular three-dimensional ef-
fects that will enhance attractions at public ven-
Now an equally remarkable technological trans- uss from arenas to cinemas.
formation is underway and will inevitably affect 4) Virtual reality will be harnessed to create eh-
entertainment, recreation, and cultural activi- hanced experiences in live settings from the
ties over the next 15 years. Like the earlier theater to the stadium, with individualized re-
wave of innovation that revitalized sections of
America's industrial centers, the coming wave sponses.
of new technologies could help revitalize down- As remarkable as the new technologies may be,
towns, suburban malls, and regional centers, they will support, but not drive, entertainment-
based development. Far more significant will be
The most widely discussed technologies are these the competitive strategies of the major enter-
that provide the basis for the information high- talnment companies.
way, or I-highway. Fiber optics, digital eompres-
sion, parallel processing, interactive systems, Industrial Reconfiguration
multimedia technologies, and various software The entertainment and leisure industry has
innovations will eventually provide unprece-
dented ease of access to information. These by- been in the throes of a major recomgguration
brid technologies are currently being developed over the past decade. Characterized in large
to meet the huge growth potential seen for at- part as a consolidation, the driving force behind
home entertainment. These systems, however, the flurry of mergers, acquisitions, and strategic
can also serve to reposition and renew communi- alliances has been the quest for product syner-
ties by enhancing public venues from museums gies. This strategy holds that leisure products
and services should be part of a broad constella-
to concert halls. Using advances in acoustics, tion that reduces the risks of particular shifts in
cinematography, and high-density screens, down-
town Little Rock can pipe in Nashville's Grand demand by building brand recognition and loy-
Ole 0pry one day and the opening of New York's alty. The quest for synergy has, to date, ap-
Metropolitan Opera on the next. The creation of peared more like a drive for diversity, with eh-
special access networks will provide for simul- tertainment giants such as Disney, Matsushita,
casting of musical, theatrical and sports events Paramount, Viacom, News' Corporation, Sony,
in electronically enhanced venues (theaters, are- and Time Warner acquiring business operations
nas, convention spaces) in second cities and towns in sectors ranging from filmed entertainment to
across the Udited States. theme parks to cable networks (see Figure 2).
Industry consolidation will have a far greater
Whether the I-highway ultimately is deployed impact on entertainment trends than advances
to support public life and the revit~!iT~tion of in technology. By 1993, the movie releases of six
public places will not depend on technological companies accounted for 80 percent of U.S. box
forces. The shape of the "delivery systems" will office receipts; the ten largest gaming compa-
be determined by the highly concentrated indus- hies accounted for 45 percent of casino rOVe-
tries that provide access and programming-es- nues; the ten largest movie thea.ter companies
pecially the nation's ten leading diversified en- gained control of 45 percent of the nation's
tertalnment compaules. 25,700 movie screens; and even in the fragmented
restaurant industry, McDonald's and Pepsico
The I-highway has also led to an array of innova- generated 13 percent of U.S. restaurant sales.
tions designed to enhance public venues. Four
technological innovations are signxi.qcant for the The product development strategies of the lead-
creation of a new generation of public attractions: lng entertainment and leisure companies will
Figure 2
ENTERTAINMENT OPERATIONS AND ASSETS OF MAJOR MOVIE AND TELEVISION COMPANIES
Ares icss iCapital !Disney IGayiord !General iMatsu- INews IPara- iSony ',Turner iTele- ITribune ;Time lViac~'".
ICi,les/ IEflter- IEiectric ishita ]Corpor- imonnt !Broad- IComm ICg. IWarner
,ABC ,tahlment. lotion ,C~m.nyi ,casting,Inc.
Theaters · · · · ·
TV Network i · , · · ·
Network(s) i
Network(s)
Systems t
Theme · ·
Parks
Players
Video ·
Players
Note: Me,~i;O,~ of some relatively minor operations may be excJuded. Viacom and Psramount merged in [ate 1994; they are listed separately here besed on avaiiabdity of
data.
Source: Standard & Poor's.
have a large influence on the degree to which What distinguishes recent projects and develop-
various entertainment venues will be available ment plans is an overarching emphasis on con-
as resources for rev~tAli*ng downtowns, subur- sumer service. Driven by losses in patronage,
ban areas, and exurban locales. The competition cultural institutions have worked long and hard
between the major companies bodes well for a to redefine their assets as consumer offerings.
shif~ to wide distribution of such venues and their An example is the Liberty Science Center in
increasing availability as a tool for redevelopment. Jersey City, New Jersey, which uses interactive
exhibits and personalized discovery itineraries
to mix entertainment with ]earning. Orchestra
Prospects for Revitalization hnllq such as the Morton H. Meyerson Symphony
Given these trends and pattern shifts, what Center in Dallas have been planned to provide
are the implications for revitalization through prefunction and postperformance activities,
entertainment-enlumced development? A look from in-house restaurants to social events.
at seven entertainment-related forms of devel-
opment may offer some answers. On a broader scale, a number of cities are using
Culture and the Arts cultural facilities to create multivenue attrac-
tions, establishing entire arts and theater dis-
The concept of investing in cultural facilities to tricts. Philadelphia's Mayor Ed Rendell is lead-
bolster area renewal has a long history in Ameri- ing a public/private effort to revitalize a 15-block
can and European cities. From the Chicago Ex- area as an Avenue of the Arts. The $,330 million
position (1893) to the development of New project includes four new theaters, a new sym-
York's Lincoln Center for the Performing Arts phony hall, refurbishment of the renowned
in (19624 public expenditures are often prem- Academy of Music, and a new high school of the
ised on the wider benefits these projects bring performing ar~. New York's plans for the revi-
to the broader community and the city's eco- talization of the 42nd S~reet district, also driven
nomic growth, by a pubUdprivate development strategy, repre-
31
sents an equally bold effort at area renewal. Cur- talnment district to support the revitalization of
rent plans include restoration of nine historic the surrounding Summerhi!l neighborhood. Plans
theaters--including the Disney Company's reno- for Yankee Stadium in the Bronx (New York)
~ vation of the landmark New Amsterdam Theatre-- also involve an areawide revitalization plan.
a 1,000-room tourist convention hotel, four new
office buildings, and a mer~hamlise mart Bur- Sports-based entertainment is also taking new
rounded by an entertainment and retail district, forms as entertainment giants such as Blockbuster,
Disney, Warner Brothers, and MCA]Universal
To some extent these projects appear to mirror consider sports-related venues.
the grand boulevards and entertainment dis-
tricts built half a century ago. The focus of the While America's appetite for sports seems tuBa-
current projects, however, is on economic revi- tiable, supply-side strategies have inherent risks.
talization through regional and overnight tour- St. Petersburg's $140 million Suncoast Dome re-
ism. The critical question is whether these proj- mains dark most of the year, after an unsuccess-
ects can create a coherent pattern of visitor ful bid to draw a baseball franchise to the site.
itineraries that will help revitalize the city's cul-
tural resources and economically reposition it Enterteinment-Enhanced Retail
through teurisrm A quarter century ago, James Rouse had the in-
sight that urban revitalization might depend
Sporte-Oriented Entertainment upon making cities "fun" to visit. The festival
Following the success of Baltimore's Oriole · marketplaces that resulted in cities from Boston
New ~tadium and Park and San Antonio's Alamodome, cities from to New Orleans have often been the impetus for
arena projects are
at the center of reel- Atlanta to San Jose have announced new sta- major revitalization efforts. Now, a second gen-
tuiization efforts _ dium and arena projects as part of revitalization oration of projects that combine entertainment
around the couat~, efforts. Atlanta's Olympic Stadium reflects the with retail are underway.
In downtown At- new strategy. The innovative $165 million facil-
laura, EIlerbe 6ecket ity was designed by Ellerbe Becket to be con- A handful of developers are defining the urban
has designed the
stadium for the 1~9~verted from an 85,000-seat Olympic venue to a entertalnmeflt center as a new product combin-
--qlympics so that it 45,000-seat baseball stadium for the Atlanta lng retail, restaurants, and food emporia with
an be converted Braves. In conjunction with the planned conver- trtemed attractions, recreational venues thea-
into a major league sion, two adjacent sites have been designated ters, and nightclubs. In ~eattle, Ken Himmel
baseball stadium,
the new home of the for redevelopment as part of a retail and enter- (Himmel aaa Company), Tom IGutznick (Thomas
Atlanta Braves. J. Klutznick Company), and Jeff Rhodes (Rhodes
Company) are working in collaboration with
'" ~ - :L .... _. ' - Nordstrom and the city to create a three-block
-='- - a--~,- .... --~- entertainment and recall complex.
· ' In New York, Millennium Partners recently
, .~- . ~ -r.4:..~ ~ completed the first fully integrated urban enter-
~ ~ talnment complex. Millennium has taken the
""~ _~&"-- lead in defining this exciting new development
~ ___ product by creatively combining an advanced
~ '~ ~ ~-' technology Sony/Loews theater complex, includ-
· . ~.~.:~ ~' ' ~ · .~o " lng a"Hollywood premieres" theater and a 3-D
~j~, '--.. r~ '~ :,_ . .... -~_- _~__.'~ Imax/Sony SolidoTMtheater; a state-of-the-art
Reebok/L.A. Sports Health Club; a variety of
· .-~,.. --.~. '.-:?-~.=~ .... : .... concept stores; and a residential tower· Millen-
_ ~ ~~ .~:--. -. nium's Lincoln Square project, which will in-
~... elude three blocks of entertainment-enhanced
~- ~'~,.~~. "~:'*'~-~ ~ .' k-~' ~- _ development when completed, is one block from
~ - ,,~.,...~.-~'~1~ ~ ~ Entertalnment-enhanced development is also
being evaluated as a strategy to revitalize retail
32
projects from regional malls to festival markets, l~e first ~u~y inte-
grated urban enter-
The city and port of Miami are collaborating on taJnment complex is
a combined cruise port and entertainment eom- drawino crowds in
plex, designed to support the growth of the Bay- New York Citv
side Festival Market and to encourage develop- leneium Part
ment in the surrounding 0vertown redevelopment creatively mixed an
advanced technol-
district. A new performing arts hall is also planned, ogy Sony/Loews
theater complex, a
Indeed, entertainment-enhanced development 3-D Imax/Soey
can be observed in a new form of retailing often Solido theater, a
state-of-tbe-a~l
referred to as the concept store. Pioneered by Reebok/LA. Spo,ts.
Nike, Sony, Bass Pro, Oshman's, the Nature Cum- Club, and a variety
pany, and others, these stores are both product of concept stores in
showcases and beta sites (sites for testing con- this new develop-
sumer preferences). Using seenographies, inter- meet product.
active exhibits, and demonstration areas, con-
cept stores provide settings that transform
shopping into entertainment. Niketown in Chi-
cago, a 68,000-square-foot "retail theater," was
one of the cAtfs top five tourist attractions in 1992.
For cities and suburban areas one of the most
exci_ting opportunities for rev~f~li?~tion is in cans- LBE concepts have rarely been conceived as
tering stores aroL~)d entertainment activitms standalone attractions, but rather as compo-
aha tnemea environments. Pioneered by NI-~I Si- nents designed to elevate the enterta/nment
mort and Sheldon Gordon at the Forum Shops at value of a larger development. In Ledyard, Con-
Caesar's World in Las Vegas, a variety of projects necticut, Iwerks rolled out a prototype LBE
that use this strategy are now under development, product it calls Cinetropolis. Designed to help
draw families to the Foxwoods Casino Resort,
Themed Attractions and Lormtlon-Based Cinetropolis combines motion picture theaters
Entertainment with features such as RoboCop, a motion simula-
tor ride based thematically on the movie Robo-
Location-based entertainment (LBE) refers to Cop; a 360-degree cinema experience cum disco;
out-of-home attractions specially created for a and a superscreen theater. LBE concepts are also
local market. In contrast to theme parks, which being deployed to create an urban version of the
draw from a broad reginn{d or national market theme park. Sports Center USA, a Baltimore-
base, LBE depends on high repeat visitation based venture, recently unveiled Sports RealmTM,
from residents within a single metropolitan area. a 160,000-square-foot complex of immersion
LBE projects have been discussed as a market sports ride simulators, interactive sports experi-
penetration strategy .since the 1980s, following a ences, and a 1,600-square-foot Sports Fantasy
Disney study of the potentiai for themed attrac- Camp and arena.
tions for major cities. Recent advances in ride Musical venues employing advanced acoustics
technology, shifts in demogrsphies, and the emer- technology are a secono form of LB E with po-
gence of new entrants in the themed attraction tentiai to rev]taiize urban settings. In Camden,
market have spurred LBE product develop- New Jersey, Sony and Pace Entertainment are
ment. First introduced at regional theme parks completing a 25,000-seat, high-tech amphithea-
and a number of casinos in Las Vegas, LBE proj- ter with retractable walls as part of the city's
ects use innovative cinema--graphic technologies, waterfront revitalization strategy. Looking out
flight simulator platforms, and special effects-- to Philadelphia's skyline, the $35 million facility.
to create fantasy experiences in the space of a wiil be a showcase for concerts and music festivals.
small screening room. Ideal for urban settings
and mails, LB1Z concepts are being predueed by In Old Town Temeeula, 45 miles east of San Di-
Imax Corporation with Doug Trumbull, Iwerks ego, theatrical producer and developer Zev Buff-
Corporation, and Showscan, as well as by enter- man has unveiled a plan to create a new country
tainment giants such as Sony, Time Warner, and music capitai, with two state-of-the-art perform-
Paramount. ante theaters, an opera house, a Wild West arena,
a showboat, two virtual reality pavilions, and sense of identity, density, and variety. Here a
two hotels, to reinforce the city's draw as a his- combination of restaurants, cafes, bars, a cine-
toric attraction. When conceived in relation to a plex theater, an amphitheater, retail stores, and
fundamental shift in vacation and leisure pat- a Hyatt hotel built around an urbane pizza pro-
terns, LBE projects can b~ a k~y source of revi- vided a destination spot. Designed as a center-
talization to both urban areas such as Camden piece for the Reston community, the Tow~ Con-
and exurban towns such as Temecula. ter draws visitors from a one-hour driving radius.
O~an Resorts Declines in consumer visits and expenditures at
regional malls have sparked an effort to reposi-
Another potential source of area revitalization is tion these projects as regional centers. Enter-
the recent repositioning of selected hotel proper- tainment enhancements are often viewed as fun-
ties as urban resorts. Driven by market satura- damental to this repositioning effort. Family
tion and shifts in consumer travel patterns, ho- entertainment centers, restaurants, cineplex
tel operators have added a variety of amenities theaters, regional cultural institutions, and even
ranging from extensive sports and spa facilities arenas are under consideration as components
to on-site clubs and restaurants. While business- in the mixed enter~dm~ent offerings planned for
oriented travel has remained stagnant, leisure regional mails. Developers such as Mol Simon
travel has grown consistently over the past five and Associates, the Hahn Company, and Richard
years and represents the brightest opportunity I. Rubin are investigating mixes of entertain-
for growth, ment that address the demands of an increasingly
In San Diego, the Hyatt Aventine, developed Sol~histicated market. But developers remain
concerned that entertainment enhancements
primarily as a business and meeting hotel, intro- must be better concept,]~l~ed to attract demand
duced a 34,000-square-foot, three-story sports and to create a synergy with retail operations.
club and spa and a magnet restaurant complex
consisting of four signature restaurants. The In some respects, current plans seem to harken
Ritz-Carlton at Marina del Rey and La Mansion back to the concept for the regional mall first en-
del Rio on San Antonio's Riverwalk are addi- visioned by Victor Graen. Rather than providing a
tional examples of the developing relationship new public commons, however, the entertainment-
between the resort hotel and the city. enhanced mail will be more akin to an arena,
with a reguiar schedule of events and attrac-
For cities and towns, urban resorts may serve
as an impetus for area revitalization, drawing tious designed to boost operating revenues. In
contingent development in the form of residen- the near future, the new malls will likely contain
tiai and retail development, while helping give cable television studios for audience participa-
the area a new image. In addition to the shift in tion game shows, performance "floors" for a va-
vacation and leisure time patterns, the boomers' riety of traveling road shows, themed environ-
new focus o.n managing the aging process through ments using flexible set design techniques, and
weliness programs and enrichment experiences a variety of electronic enhancements. Unlike the
bodes we[1 for the urban resort. Ease of access te~rn center, which provides a sense of central-
to high-quality spas and sports medicine pro- ity through permanence, the mall will create an
grams, recreational facilities, and discovery and identity as an events center, consistently provid-
learning programs will be a key requirement for ing a new reason to visit. The mall will also be
wired into the I-highway, acting as a kind of smart
attracting this growing base of demand, store that redefines the logistics of shopping.
New Town Centers and Regional Malls
Gaming Destinations
The phenomenon of entertainment-enhanced de-
velopment is hardly restricted to urban environ- A survey of entertainment-enhanced develop.-
ments. Once the bedroom communities for down- ment must include the gaming industry. While
town areas, many suburbs have become major growth in the leisure industry has been impres-
centers of employment, government services, sive, growth in gaming has been unprecedented.
and shopping. Critics have faulted suburbia's According to Standard & Poor's "Leisure Time
lack of shared community identity and sense of Industry Survef' (July 21, 1994), one-third of
a central place, the industry's $15 billion in wins in 1994 will be
derived from states where gaming became legal
Reston Town Center in Virginia illustrates the after 1988. Although legalized gaming legisla-
pent-up demand for central places that offer a tion has slowed, a survey commissioned by
At Reston Town Cen-
ter in suburban Re-
sion, Viroiflia, res-
teurants, cafes, a
cineplex, shops,
and even a skating
rink provide a sense
of identity and at
the same time real
variety. The RTI(L.
designed center
draws visitors from
more than an hour
away.
Promus Companies suggests an expansion mar- varied widely, however, slowing the legislative
kef of $20 bfllinn in potential revenues, rnomentmn considerably in the past year.
A number of cities have 'qearued from Las Vegas" From a development perspective, the key to us-
and developed integrated tourism plans linking lng gaming as an economic tool will be to employ
gaming with other forms of entertainment- it as a lever. Gaming-dependent economies will
enhanced development. In Las Vegas, projects be highly vulnerable to competitive sites, mar-
such as the Forum Shops at Caesar's World, the ket saturation, and alternative forms of wager-
Egyptian-themed Luxor Hotel with its Doug ing (such as lotteries). Creating a more reliable
Trurnbnil-desig~ed adventure ride, and Trees- basis of revit~li?~tion will depend on integrative
ute Island Casino's streetside pirate ship battle strategies like that pursued by Shreveport.
represent a multibillion dollar bet on attracting
the family market. More modest but similarly dj- Foresight versus ForecasL~
retted developments are planned from Atlantic
City to Shreveport. Atlantic City has selected Revitalization of urban, suburban, and rural
the Rouse Company to lead a revit~!~?~tion ef- areas depends on integrating a vibrant economic
fort aimed at bringing family tourism back to base, a strong social infrastructure, a high-
the city. quality environment, and a sense of community.
The process of revitalization requires a strategic
Shreveport, anticipating the legalization of gain- sense of the future-foresight--more than a
ing in Texas, its major source of demand, is em- forecast of the future. Clearly, entertainment-
barking on an integrated destination strategy, enhanced development can serve as an impor-
The city seeks to use its current advantage as a tant spark in initiating redevelopment and re-
gaming center to build a mix of attractions and newal. However, it will require deveinpers,
recreational facilities to secure a competitive po- entertainment executives, and public officials to
sition as a diversified regional destination, develop a disciplined perspective on opportuni-
ties to reposition an area or a region--foresight
over prediction.
Legalized riverboat gaming in Illinois, Iowa,
Louisiana, and Mississippi will account for an es- The Greeks, who introduced the notion of the
tire,ted $2.5 billion in revenues in 1994. Pending public realm, or agora, also created the concept
legislation or voter approvals in Indiana and of public leisure, or p/ate/a. A modern plateia
Missouri and proposals for legalized gaming in can seem as elusive as the agora in a society as
Alabama, Arkansas, Florida, Ohio, Pennsylva- complex and diverse as this one, but the use of
nia, and Texas may lead to a second wave of riv- leisure and entertainment appears to be re-
erboat gaming sites. Economic evaluations of emerging as a source of renewal and re-creation
the impact of gaming on area revitalization have for our communities. ·
Attachment J
MAR gl 1995 ~EM ~ ~'