Funding for the Proposed Kent Central Gateway Multimodal Transit ...

TIGER Discretionary
Grant Application
U.S. Department Of Transportation
September 15, 2009
Prepared for:
Portage Area Regional
Transportation Authority
Funding for the Proposed
Kent Central Gateway
Multimodal Transit Facility
Project Partners
Kent State University
City of Kent, Ohio
Transit Project Type
Project Location:
Downtown Kent (Urban)
Portage County, Ohio
OH 17 th Congressional District
Amount of Grant Request:
$ 21,000,000

TABLE OF CONTENTS
Page No.
I. INTRODUCTION 1
II. GRANT FUNDS AND SOURCES AND USES OF PROJECT FUNDS 6
III. PRIMARY SELECTION CRITERIA – LONG TERM OUTCOMES 8
IV. PRIMARY SELECTION CRITERIA – JOB CREATION AND STIMULUS 12
V. SECONDARY SELECTION CRITERIA 16
APPENDICIES
APPENDIX A – Detailed Construction Cost Estimates
APPENDIX B – Proposed Construction Schedule
APPENDIX C – Letters of Support
APPENDIX D – Public-Private Partnership Memorandum
APPENDIX E – Market and Financial Overview Report
APPENDIX F – Table of Long Term Operating Costs
APPENDIX G – Federal Wage Rate Requirement Certification
UNDER SEPARATE COVER
(Additional supporting materials may be accessed via the following website:
ftp://tsftp.transystems.com (User = Kent , Password = Gateway)
• Project Architectural and Civil Engineering Plan Sets
• Site Selection Report (Completed 2008)
• Facility Schematic Plan Report (Completed 2008)
• Categorical Exclusion Document (Completed 2008)
Phase II ESA (Completed July 2009)

I. INTRODUCTION
The Kent Central Gateway (KCG) project has moved through the planning, environmental, site selection, and public
involvement phases during the last two years. Preliminary Engineering and Architectural plans for the facility, and
required adjacent infrastructure improvements, were completed in August 2009. Since the Phase 1 and Phase 2
Environmental Site Assessment’s (ESA) have been completed, and an approved environmental document (CE) is
expected before the end of 2009, this project is truly “shovel-ready”. Therefore, PARTA and its stakeholders are
applying for construction funds through the TIGER grant program in order the complete the construction phase of the
project. The following pages contain a project background, detailed description of existing and future facilities,
economic development opportunities, and an explanation of how the project meets the TIGER grant application
criteria. Previously completed documents and supporting documents are located in the Appendix.
Project Background
The Kent Central Gateway (KCG) is a proposed transit center being considered to improve the connections between
city neighborhoods, Kent State University’s campus and the downtown; to enhance bicycle and pedestrian linkages;
to support economic development; and to create opportunities for new community amenities. It would solve several
transit-related problems: providing an efficient park-and-ride for express routes to Cleveland and Akron; serving as a
transfer point for numerous PARTA routes; and providing a comfortable location to load and unload passengers with
special needs away from the traffic along a major roadway (Main Street). In addition to the transit benefits, the KCG
offers the potential to incorporate businesses and community uses, which help to make it a destination that citizens
can be proud of and spur economic development of the downtown.
The KCG project was identified in the City of Kent Bicentennial Plan (2004), which resulted from a thirteen month
planning process that included public input via 45 community meetings. The plan coordinated transportation and
land use planning decisions as its findings linked land use, transportation, economic and community development
issues. In 2006, the Kent Transportation Citizen’s Advisory Committee produced a Purpose and Needs Statement
for a multimodal facility. The committee was comprised of representatives from Kent State, PARTA, City of Kent,
Kent City Council, Kent residents, and other local citizens. This statement set the groundwork for a feasibility study
for a facility that would emphasize taking the bus, bicycling, and walking as convenient and enjoyable modes of
transportation in people’s everyday lives. Kent State University commissioned this study, with the City of Kent and
PARTA as key stakeholders. The purpose of the multimodal facility, which was soon after named the Kent Central
Gateway, was to become a center of activity for residents, students, and visitors to Kent. Furthermore, the KCG
would;
• Increase transit accessibility and emphasize multi-modal transportation.
• Be a catalyst for economic development that will contribute to a vibrant downtown that is seamlessly
connected to the university campus.
• Build upon Kent’s heritage of environmental awareness and recreational enjoyment.
• Provide bicycle amenities and be both an entrance to and a destination along the Portage Hike and Bike
Trail.
• Be environmentally friendly by incorporating “green” design features.
• Be a welcoming facility for people of all abilities and backgrounds.
• Be a model of sustainable development that emphasizes a diverse transportation system.
• Be a vital civic space that will contribute to the health, safety, and sustainability of the Kent community for
generations to come.
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The Purpose and Needs Statement set the groundwork for a feasibility study which was kicked off in 2007 and is
nearing completion. The feasibility study included a site selection analysis, facility schematic plan, and
environmental clearance which included coordination with various stakeholders and two public open houses. Several
locations were evaluated based upon existing transit service, physical access for transit vehicles, exposure and
visibility to encourage transit use, potential to connect to future passenger rail, support of existing planning, economic
development potential, pedestrian and bicycle connectivity, social and environmental resource impact, property
acquisition and traffic operations. The chosen location, call the Northwest Gateway, ranked as the highest location
overall. Some of the specific reasons given for choosing this location included; good accessibility to current transit
routes, good proximity to both downtown and KSU, good ability to foster economic development along Main Street,
high visibility, partially vacant land, unique topography that allows for multi-level development, good ability to
leverage public transportation funding, good ability to connect to proposed Portage Hike and Bike Trail, good ability
to take advantage of currently underutilized Depeyster Street, good linkage to other proposed developments
downtown, and good ability to improve pedestrian connection and town-gown link.
Project Partners
City of Kent – The City of Kent is located on the western edge of Portage County along the Cuyahoga River in the
northeastern part of Ohio. Kent had a population in 2000 of 27,906 (U.S. Census Bureau) and a 2008 estimate of
27,983 (U.S. Census Bureau), making it the largest city in the county. Kent is located in the Akron Metropolitan
Statistical Area (MSA) and the Cleveland-Akron-Elyria Combined Metropolitan Statistical Area (CMSA).
PARTA – The Portage Area Regional Transportation Authority (PARTA) serves Portage County with fixed route and
demand response vehicles on an approximately 492 square mile area. In total, PARTA operates 73 vehicles and has
167 employees. PARTA’s ridership has increased from 68,451 trips in 1996 to 1,299,113 trips in 2007 (ODOT Status
of Public Transit in Ohio, May 2009). The area near Kent’s downtown and Kent State University is currently served
by the greatest number of bus routes in the county including; the Kent Circulator, Campus Loop, Cleveland Express,
Interurban #30, and Suburban #40.
Kent State University – Kent State University, located just east of the downtown core, is the third largest university
in Ohio and the largest residential university in northeast Ohio. The university has approximately 23,000 students
and over 1,000 faculty members.
Fairmount Properties & Pizzuti Companies – Private Development and Real Estate Management firms, partnering
with the City of Kent and PARTA to develop the proposed multimodal transit center, an adjacent hotel and
conference center, offices, and retail spaces.
Existing Facilities
PARTA has administrative offices, maintenance, and bus storage at a facility about 2 miles southeast of the study
area at 2000 Summit Road, on the opposite side of the Kent State University campus. This facility meets PARTA’s
needs for these functions and does not require replacement. PARTA also operates a bus transfer station out of the
“Midway C Lot” on the Kent State University campus. Several deficiencies exist in this facility. It is located just under
a half mile east of the study area along SR 59/Main Street. It is called Midway C because it is accessed along
Midway Drive and it is a parking lot for KSU students with “C” parking permits, therefore it does not allow members of
the public to park at the facility in order to transfer to use the bus. Circulation at the Midway C Lot at KSU is
complicated and potentially unsafe, with automobiles traveling in the same lanes as buses and parking adjacent to
the bus waiting area. In addition, the Midway C Lot at KSU contains insufficient space for the number of buses that
stack at the facility, and it lacks any bicycle amenities.
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Proposed Facility
The Kent Central Gateway site is located in downtown Kent, along East Main Street, Depeyster Street, Erie Street,
and Haymaker Parkway. The project as initially planned includes;
• Bus transfer facility,
• Parking garage to include 100 parking spaces for transit use as well as 200 to 300 spaces to support an
adjacent planned hotel/conference center, office and retail development,
• Commercial spaces to include approximately 22,000 square feet, initially broken out as; 9,900 square feet of
retail, 3,200 square feet of restaurant, and 9,300 square feet of office.
The building is proposed to include 10 bus bays, an indoor waiting area, small employee break area/storage area,
public bathrooms, employee bathroom, communications/electrical/mechanical room, automobile parking, passenger
pickup/drop-off area, outdoor waiting area, and bicycle storage area. Analysis conducted during the development of
the facility schematic plan recommended 10 bus bays. That conclusion was reached using current PARTA schedule
data and estimating route deviations to see that there are numerous 15-minute periods throughout the day when 9 or
more buses will be at the terminal. The 10 bays allow for some flexibility and leave open the possibility for a bay for
tour buses or an additional PARTA bus. The facility will be environmentally friendly by incorporating “green” design
features such as a geothermal heating and cooling system, solar panels, natural materials from local and regional
suppliers, and other LEED eligible building components. The facility will include civic space that will contribute to the
health and sustainability of the Kent community for generations to come. Elevations and Floor Plan renderings of the
proposed facility are shown in Figures 1 and 2 below. Full Architectural and Civil Engineering plans sets may be
accessed on the project’s ftp site (see the Table of Contents for the web link).
The facility will not be used as garage storage space for bus vehicles or as a service location for vehicles. Those
functions will remain at PARTA’s headquarters. PARTA’s administrative offices will also remain at its headquarters.
PARTA’s Midway C lot will to continue to operate for Kent State students, while the KCG will provide space
specifically designed for PARTA buses, separation of cars and bus circulation, parking specifically devoted to public
use, and space for bicycle racks. All of these features will address the known issues with the Midway C lot and will
increase the efficiency and effectiveness of the transportation system and the movement of workers (Source: Kent
Central Gateway Site Selection Report).
Economic Development Opportunities
There are many economic development benefits associated with the location of the KCG in downtown Kent at the
selected site. These include its potential to: attract activity; generate foot traffic for downtown businesses; and
optimize transit/pedestrian activity. Another benefit includes its ability to supply yet minimize and efficiently provide
needed parking to support downtown development. In this sense, the KCG could serve as an important catalyst for
downtown development, and could help propel Kent further toward becoming a vibrant university downtown similar
to: Charlottesville, VA; Chapel Hill, NC; Austin, TX; Boulder, CO; West Lafayette, IN; Princeton, NJ; and that is being
provided by multimodal transit facilities in Athens, GA and Normal, IL.
The market and financial overview assessment shows that sufficient demand exists to support the non-transit related
spaces in the KCG as well as other mixed-use (i.e. office, multifamily housing and retail projects) planned downtown.
The key lynchpin in making such downtown projects possible is the KCG, which will serve as a downtown attraction
and source of efficient parking to support downtown revitalization. The downtown area is underserved with retail
offerings, and needs a critical mass of retail which could be in part supported with the KCG. The expansion of the
3

etail sector could allow for a stronger connection between downtown and Kent State University, bringing stronger
foot traffic between the two areas. Ultimately, a stronger connection with KSU will enhance ridership at the transit
center, because many students take long-term trips on weekends to the Cleveland area.
Despite the economic downturn at the national and regional levels, there are reasons to be optimistic about the
market for mixed-use, pedestrian friendly development in downtown Kent that would be both transit oriented and
downtown appropriate. Developers and businesses have expressed demonstrated interest in downtown’s relatively
untapped market, and are planning high-quality new and rehabilitated spaces to accommodate this demand. Over
the next five years, households and jobs are expected to grow despite the current downturn, and particular industries
(notably education and health care) are even adding jobs during the economic downturn. The enhanced
attractiveness of downtown with the catalytic investment in the KCG could further increase the appeal of new
downtown spaces.
The transformation of downtown Kent into a lively commercial and residential hub similar to other university towns
across the nation will not occur overnight. One potential method to jumpstart this transformation would be to allow
the KCG to offer parking to support downtown revitalization projects. A master lease agreement that allows joint
merchandising of commercial space also could potentially include developer operation of such parking. This would
be relatively attractive to a developer in that construction of parking atop the KCG (which already would include 100
spaces of parking spaces devoted to transit use) would be less costly than building an entire garage; the former does
not have site acquisition costs, site work costs, nor elevator costs to the developer.
Figure 1: First Floor Plan for the Proposed Multimodal Transit Center
4

Figure 2: Rendered Elevations of the Proposed Multimodal Transit Center
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II.
Grant Funds and Sources and Use of Project Funds
i) Amount requested
Total TIGER grant request: = $21.0 M
The grant amount request was developed from detailed construction cost estimates, which are included in
Appendix A. The grant request amount includes only those project elements which are FTA eligible (e.g.,
the costs of the build-outs of the retail spaces will provided by a local development partner, and are not
included in the grant request amount.)
The total grant request is based on the following major construction components:
Multimodal Facility $14,649,981
Geothermal System $ 204,457
Road/Pedestrian Connections & Utilities $ 6,145,562
Total $21,000,000
Tenant Improvements (Funded by Private Developer): $1.1 million 1
ii) Other funds being used-amount and source(include other federal)
The following other funds were or are being used:
Federal (used to fund feasibility studies, CE environmental investigations, and preliminary
engineering and architectural plans):
Surface Transportation Act, 2004 = $ 215,371
Consolidated Appropriations Act, 2005 = $ 364,077
SAFETEA-LU (thru 5309 Program) = $ 834,077
H.R. 2764, Division K Earmark, 2008 = $ 196,000
Total (Federal) = $ 1,609,525
1 Private tenant improvement calculation assumes $50 per square foot in tenant improvements (to transform space from ‘cold dark shell’ space
to finished space). Assumes 22,428 in private sector retail, restaurant and office space. Excludes 1,762 in public waiting area space.
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Local Match Commitments to date:
PARTA, City of Kent, and Kent State University =
$258,000 (CE Documents and PE)
City of Kent:
Upper levels of Parking in the Facility =
$3.0 M (see Appendix C– Letters of Support)
Private Development Partners (i.e., Fairmount Properties):
Retail and Office Tenant Improvements =
$1.1 M (current estimate)
Total Other Funds = $ 5,967,525
Note: These funds do not include the proposed $61.818 M adjacent private developments by the
Fairmount-Pizzuti Group, which the multimodal center will support.
iii) % of TIGER funds for the project
Total Project Costs:
Planning and Feasibility (completed 2008) = $421,823
Preliminary A/E and Phase II ESA (completed 8/2009) = $450,600
Estimated Remaining A/E & Property Acquisition = $737,102
Estimated Office and Retail Tenant Improvements = $1,100,000
Estimated Upper Levels of Parking (non FTA eligible) = $3,000,000
Estimated Construction (FTA eligible) = $21,000,000
Total = $26,709,525
Percentage of Tiger Funds (NOT including adjacent proposed private development):
($ 21,000,000 / $ 26,709,525) x 100 = 79%
Percentage of Tiger Funds (including adjacent proposed private development):
($ 21,000,000 / ($ 26,709,525+ $61,818,000)) x 100 = 24%
iv) % share for other sources of funds
Percent Share of Other Funds (NOT including adjacent proposed private development):
($5,967,525/ $ 26,709,525) x 100 = 22%
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III.
Primary Selection Criteria – Long Term Outcomes
• Project will measurably contribute over the long-term to growth in employment, and project
will make improvements that allow for expansion, hiring, or other growth of private sector
production
The Kent Central Gateway project will create employment opportunities through both direct need
for jobs on site to service parking, enhanced transit usage and commercial spaces, indirect
employment impacts, and induced employment created through enhancement of the downtown.
The Kent Central Gateway will improve the connectivity between downtown Kent, Kent
neighborhoods, and the Kent State University (KSU) campus, thereby bringing additional transit
riders to the area and offering enhanced opportunities for downtown revitalization, which ultimately
will lead to increased competitiveness and employment.
In addition to increasing connectivity, the Kent Central Gateway will provide parking that will
support projects planned and underway in downtown. These projects include a hotel and
conference center (the result of a partnership between the City, KSU, and private developers), a
new mixed-use development project (office, retail, restaurant and housing), and a rehabilitation
project consisting of office and retail spaces which are fully leased. Jobs will be created and
retained through support for these projects, both during the construction period and during longterm
operations. The estimated development cost of these projects is in the range of $60 to $80
million, and does not include other downtown development activities that may occur over the longterm
as the Kent Central Gateway contributes to downtown revitalization.
The Kent Central Gateway will enhance the position of Kent State University in that improvements
associated with the project will support downtown revitalization. A thriving downtown will improve
recruitment efforts at Kent State University, thereby supporting a stronger student body and faculty.
The strength of students and faculty members may lead to enhanced university research, which
ultimately will contribute to the economic competitiveness of the United States.
• Project enhances hiring in an Economically Distressed Area:
The KCG is located in Portage County, an economically distressed county in Ohio. The
unemployment rate in Portage County, like many counties in Ohio, is higher than that of the
national average. Portage County’s unemployment rate is more than 1 percentage point higher
than the national average, at 10.8 percent in June 2009 compared to 9.8 percent for the nation as
a whole (Source: U.S. Bureau of Labor Statistics and Ohio Department of Job and Family
Services).
• Project will increase the efficiency and effectiveness of the transportation system through
integration or better use of all existing transportation infrastructure, and project will
improve long-term efficiency, reliability and cost-competitiveness in the movement of
workers
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The site chosen for the Kent Central Gateway offers good access to existing bus routes, which will
be re-aligned to service the transit center, making use of existing infrastructure. The new facility
also will address a number of deficiencies at a bus transfer facility that PARTA has operated out of
a parking lot at KSU, and by addressing these deficiencies, increase the efficiency and
effectiveness of the transportation system and the movement of workers. Such improvements may
result in new ridership as new riders are attracted to the enhanced services and enhanced
downtown.
When located downtown, the Kent Central Gateway will provide a better location than the prior bus
transfer station operated by PARTA at the “Midway C Lot” on the Kent State University campus,
which is situated in a parking lot for KSU students with “C” parking permits. Since this prior station
was located in a permit-only parking lot, it did not allow members of the public to park at the facility
in order to transfer to use the bus. Circulation at the Midway C Lot at KSU is complicated and
potentially unsafe, with automobiles traveling in the same lanes as buses and parking adjacent to
the bus waiting area. The Midway C Lot at KSU contains insufficient space for the number of
buses that stack at the facility, and lacks bicycle amenities. The KCG addresses these issues, with
space specifically designed for PARTA buses, separation of cars and bus circulation, parking
specifically devoted to public use, and space for bicycle racks. All of these features will increase
the efficiency and effectiveness of the transportation system and the movement of workers
(Source: Kent Central Gateway Site Selection Report).
Ridership will increase as a result of the system and downtown enhancements, and currently, the
buses have excess passenger capacity. As ridership increases, the buses will decrease their
operating costs which will enhance cost effectiveness indices. PARTA’s operating efficiency will
rise as the cost per passenger mile decreases. The KCG project will increase bus utilization
without substantially increasing operating costs and effectively put the buses to better use.
• Project will have a positive impact on qualitative measures of community life, and will
provide benefits to many users in the community (with description of the community and
scale of project’s impact):
The Kent Central Gateway project will not only improve transit service and connectivity in the City
of Kent and to and from Kent State University and the downtown area, but also support downtown
revitalization, the economic viability of the university and regional economic development. The
KCG will potentially provide space for commercial and community uses, possibly to include space
for university/student uses, classrooms, art events and a city and university welcome center, which
would provide additional activity and community gathering space in downtown. It will serve as a
catalyst for downtown revitalization as it provides better service and brings more people downtown.
The KCG will serve as an anchor for downtown revitalization by becoming a destination in its own
right, a civic focal point, and a transportation and parking hub. The KCG will enhance pedestrian
and transit connections between residential neighborhoods, Kent State University and downtown,
thereby encouraging potential customers to walk or use public transit throughout downtown and
patronize businesses.
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The KCG has potential to enhance the quality of life of many people. The scale of the project
includes:
o
o
o
The downtown walkshed, in which downtown revitalization will be catalyzed by the
center, and residents may walk to transit service and commercial and community uses
downtown. This area includes the land generally within a quarter mile walk of the Kent
Central Gateway, bound by Crain Avenue to the north, Lincoln Street to the east, Summit
Street to the south, and the Cuyahoga River to the west. In 2009, there were an
estimated 1,091 residents located in this area and 1,545 employees.
Neighboring Kent State University (KSU), from which students will walk to the KCG to
take long-distance buses to Cleveland and Akron, and from which students will walk
downtown to patronize businesses created as a result of the KCG and other downtown
investments. There were 23,000 students at the Kent campus of KSU in 2009 and 1,000
faculty members. The population of the campus swells during special events, with up to
46,000 parents, 92,000 grandparents, 166,000 alumni, and 14 NCAA sports teams
visiting KSU throughout the year for various events. These visitors will be more likely to
visit downtown with the KCG in that it will provide and support commercial spaces to
accommodate businesses for a more active downtown.
The driveshed surrounding the KCG, from which residents may easily travel to the
park-and-ride to take long-distance buses to Cleveland or Akron. Within an easy 15-
minute drive of the KCG there were over 195,000 residents in 2009.
• Project will significantly enhance user mobility through the creation of more convenient
transportation options for travelers
As described above, the Kent Central Gateway will provide a more convenient bus transfer service
than that which PARTA has operated at the Midway C Lot at KSU, and this enhanced convenience
will enhance user mobility. Improvements to the service which will enhance the overall ease of use
and convenience of transit use include the provision of parking specifically devoted to public use,
space for bicycle racks, and separation of cars and buses. The KCG also will be located in
convenient walking distance of other public services, including a courthouse, police station, fire
station, and City Hall. The transit center will serve downtown residents, university-related users,
and non-university related visitors.
• Project will improve existing transportation choices by enhancing points of modal
connectivity or by reducing congestion on existing modal assets
The Kent Central Gateway will improve transit service by acting as an efficient park-and-ride for
passengers traveling to and from areas within the region, including Cleveland, Akron, and Kent
State University, and serving as a transfer point for PARTA routes.
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The Kent Central Gateway also offers potential to connect to a potential future passenger rail
station, which is being studied through a NOACA commuter rail study and the Ohio Hub project
that identify options to route such passenger rail through Kent.
• Project will improve accessibility and transport services for economically disadvantaged
populations
The scale of the KCG encompasses areas that include economically disadvantaged populations,
defined as low- and very low-income households earning less than 80 percent of area median
income. These areas, defined above, are profiled below in terms of the number of households
earning less than $65,000 annually (AMI per HUD for Portage County):
o
o
The downtown walkshed included 272 households that earned less than $50,000 in
2009 (data available provides number of households in the $50,000 to $74,999 income
bracket), or 65 percent of the 419 households in the area.
The driveshed surrounding the KCG included 35,370 households that earned less
than $50,000 in 2009 (data available provides number of households in the $50,000 to
$74,999 income bracket), or 45 percent of the 78,951 households in the area.
(Source: HUD, ESRI Business Information Solutions)
• Project is the result of a planning process which coordinated transportation and land-use planning
decisions and encouraged community participation in the process
The Kent Central Gateway project was identified in the City of Kent Bicentennial Plan (2004), which
resulted from a thirteen month planning process that included public input via 45 community
meetings. The plan coordinated transportation and land use planning decisions as its findings
linked land use, transportation, economic and community development issues.
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IV.
Primary Selection Criteria – Job Creation and Economic Stimulus
• Total amount of funds that will be expended on construction and construction-related
activities:
Estimated Construction Total (Including Public and Private Investments) = $ 25,100,000
• Number and type of jobs to be created and/or preserved by the project during construction
and thereafter:
During the construction period, a variety of new economic opportunities will be created. The
construction will create at least 142 direct on-site jobs with an aggregate payroll of $6.497 million.
Furthermore, these direct jobs will create 124 additional indirect, or spin-off, jobs off-site with an
aggregate payroll of $4.9 million. Direct consumer expenditures will total roughly $9.253 million and
an estimated $10.7 million in material purchases will be made, of which $7.9 million will be made in
the Kent region. All amounts are in constant 2009 dollars to avoid counting any inflationary
impacts.
Construction Employment Impact
Total
FTE
(6/)(7/)
Average
Earnings
/Hour (1/)
Consumption
Expenditures
(3/)
Disposable
Total Income Earnings (2/)
Construction 142 $ 22 $ 6,497,920 $ 5,874,119 $ 5,274,958
Spin-off Employment Impact (4/)(5/) 124 $ 19 $ 4,900,480 $ 4,430,033 $ 3,978,169
Total Impact 266 $ 11,398,400 $ 10,304,152 $ 9,253,127
Assumes construction period of 1 year min.
1/ May 2008 Bureau of Labor Statistics Occupational Wage Estimates for Construction
Sector
for Pittsburgh MSA, inflated 3 percent annually to 2009 dollars
2/ Disposable Income was 90.4% of Personal Income as of May 2009, Bureau of Economic Analysis
3/ Consumption Expenditures was 89.8% of Disposable Income as of June 2006 (revised), Bureau of Economic
Analysis
4/ 1997 Employment Multiplier Estimates Per $1 Million Income for Construction Sector, RIMS II Model (1.8728)
5/ 1997 Earnings Multiplier for Construction Sector, RIMS II Model (1.7718)
6/ FTE indicates "full-time equivalent", working 2,080 hours annually
7/ Employment estimates from 2009 Downtown Kent Revitalization Stimulus Funding Request
Construction Material Purchase Impact
Construction Cost (1/) $ 25,100,000
Per $1,000
Type of Purchase Const. Cost Expenditure
Regionally Purchased $305 $7,655,500
Purchased Out of Region $105 $2,635,500
Total Material Purchases $10,291,000
Percentage Total Purchases 74%
1/ Construction cost includes planning and feasibility, preliminary A/E and Phase II ESA, estimated remaining A/E and property
acquisition, estimated office and retail tenant improvements, estimated upper levels of parking and estimated facility construction
Sources: Basile Baumann Prost Cole & Associates, Bureau of Labor Statistics, Bureau of Economic Analysis, Downtown Kent
Revitalization Stimulus Funding Request, April 2009
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Once construction is complete and market absorbed, impacts related to the development
operations will continue on an annual, long term (e.g. 20 years) basis.
The proposed Kent Central Gateway will create 647 direct permanent jobs at project build-out.
Furthermore, the development will create nearly 120 hotel employees, 144 retail employees, 308
office employees, and 75 conference facility employees.
Permanent Employment Impact
SF / Rooms Total Employees
Hotel Rooms (1/) 120 120
Retail SF (2/) 48,000 144
Office SF (3/) 77,000 308
Conference SF (4/) 25,000 75
Total - 647
1/ 1 employee per hotel room
2/ 3 employees per 1,000 SF of retail
3/ 4 employees per 1,000 SF of office
4/ 3 employees per 1,000 SF of conference space
Source: BBPC Industry Practices
Estimates of the Projects Expected Quantitative and Qualitative Benefits
The chart in Appendix F summarizes the quantitative benefits of the project in terms of the capital
and operating costs of the KCG and in the economic benefits in terms of additional income to the
Kent area economy. This measures the dynamic effects that the transportation investment will
have on land use and a household income. This information is designed to help decision-makers
determined the potential trade-offs of alternative transportation investments. This clearly benefits
the land use and economic benefits of the transportation investments
Additional benefits which have not been quantified include: health and safety benefits,
environmental enhancements, fuel savings, travel time savings, reductions in greenhouse s
emissions and public health effects of enhancing the pedestrian environment and transportation
services in downtown Kent.
• Business enterprises to be created or benefited by the project during its construction and
once it becomes operational
The commercial spaces within the KCG could accommodate six retail storefronts, one restaurant,
and up to six small offices. However, the precise number of businesses to be created overall is not
yet known. The KCG will serve as an anchor for downtown revitalization, and existing businesses
will benefit from the increase in pedestrian traffic, parking supply and long term University
growth.PARTA, the City, and the University are committed to using this project as a catalyst for
redevelopment in all of downtown Kent, both for construction companies during construction, and
businesses that will put down permanent roots in the community.
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• Whether the project will promote the creation of job opportunities for low-income workers
through the use of best practices hiring programs and utilization of apprenticeship
programs
PARTA is committed to helping low-income workers in several ways. PARTA has a long history of
employing people with disabilities to work in our offices, and currently uses an apprenticeship
program in maintenance to train new diesel mechanics from a local vocational school.
• Whether the project will provide maximum practicable opportunities for small businesses
and disadvantaged business enterprises, including veteran-owned small businesses
PARTA has a long history of seeking out DBE’s for eligible projects. We currently have a long term
relationship with a lubricant supply company that is a DBE. PARTA has a DBE program in place
and is committed to using that program for this project as well.
• Whether the project will make effective use of community-based organizations in
connecting disadvantaged workers with economic opportunities
PARTA has hired a Director of Mobility Management over a year ago whose primary goal is to
connect PARTA with community-based organizations. This Director came from the largest
community-based human service agency in the county and his last project at his former employer
was to build the only veteran’s shelter in Portage County.
• Whether the project implements best practices, consistent with our nation’s civil rights and
equal opportunity laws, for ensuring that all individuals, regardless of race, gender, age,
disability, and national origin – benefit from the Recovery Act
PARTA is committed to following the best practices with regard to civil rights and equal opportunity
for all individuals throughout the procurement process.
• Identify whether the populations most likely to benefit from the creation or preservation of
jobs or new or expanded business opportunities are from Economically Distressed Areas
It is likely that the employment resulting from investment in the KCG will benefit residents of
surrounding Portage County, which is an economically distressed area.
• Indicate whether the project’s procurement plan is likely to create follow-on jobs and
economic stimulus for manufacturers and suppliers that support the construction industry,
and how quickly such jobs would be created
The KCG will require suppliers from throughout the construction industry. One of the great
advantages to this project is the speed at which construction could begin. Since the Phase 1 and
Phase 2 ESA’s have been completed, and a CE is expected anytime, this project is truly “shovelready”.
14

• Provide a project schedule
A proposed detailed construction schedule is included in Appendix B. Construction Contract Group
No. 1: Roadway Connections and Utility Relocation may begin in May 2010 and is expected to be
completed by August 2011. Construction Contract Group No. 2: Facility Construction may begin in
January 2011 and is expected to be completed by September 2012. Estimated on-site
employment is tabulated below.
On-Site Construction Employment Impact by CY Quarter (1)
Major Construction Activities
Estimated Total Construction On-
Site Employment
CY 2010
Q1
Bidding and Permit Acquisition
Q2 Construction Contract No. 1 42
Q3 Construction Contract No. 1 42
Q3 Construction Contract No. 1 42
CY 2011
Q1 Construction Contract No. 1 and No. 2 142
Q2 Construction Contract No. 1 and No. 2 142
Q3 Construction Contract No. 1 and No. 2 142
Q4 Construction Contract No. 1 and No. 2 142
CY 2012
Q1 Construction Contract No. 2 100
Q2 Construction Contract No. 2 100
Q3 Construction Contract No. 2 100
Q4 Tenant Build Outs (by Private Partners) 35
(1) Estimates provided by TranSystems, Inc.
15

V. Secondary Selection Criteria
• Extent to which the project demonstrates new approaches to transportation funding and
finance
The KCG will be the result of public-private partnerships and could include innovative
financing/funding arrangements for the non-transit elements of the project. This could include an
arrangement between PARTA and private developers to allow for a master lease of the commercial
space within the KCG, which would allow developers of mixed-use projects in downtown to attract
retailers in their projects as well as in spaces within the KCG. A master lease agreement could
potentially also include developer operation of parking within the KCG facility (above spaces
devoted to transit use) to provide parking for projects downtown. A copy of the Memorandum of
Understanding is included in Appendix D. A Market and Financial Overview, prepared during the
feasibility analysis of this project, is included in Appendix F.
• Project involves State and local governments, other public entities, or private or nonprofit
entities, including projects that engage parties that are not traditionally involved in
transportation projects, such as nonprofit community groups
The KCG will be the result of a partnership between PARTA, the City of Kent, Kent State
University, and private developers. As described above related to innovations in financing, there is
potential for this partnership to include an arrangement between PARTA and private developers to
allow for a master lease of the commercial space within the KCG. This would allow developers of
mixed-use projects in downtown to attract retailers in their projects as well as in spaces within the
KCG. A master lease agreement could potentially also include developer operation of parking
within the KCG facility (above spaces devoted to transit use) to provide parking for projects
downtown.
• Project effectively uses community-based organizations in connecting disadvantaged
people with economic opportunities
PARTA has hired a Director of Mobility Management over a year ago whose primary goal is to
connect PARTA with community-based organizations. This Director came from the largest
community-based human service agency in the county and his last project at his former employer
was to build the only veteran’s shelter in Portage County.
• Project cannot be readily and efficiently completed without Federal assistance, and other
sources of Federal assistance are or are not readily available for the project
Several multimodal facilities have been built in Ohio in the last several years, and none of them
have been built without the support of the federal government, and this project falls along those
same lines. Given the size of the project, there is not any of the standard federal avenues for
funding readily available in this region.
• The amount of private debt and equity to be invested in the project
PARTA estimates that $1,100,000 will be invested directly by private firms to finish the tenant build
out of the retail and office spaces.
16

• Project demonstrates collaboration among neighboring or regional jurisdictions to achieve
National, regional or metropolitan benefits
PARTA is collaborating directly with the City of Kent, and Kent State University, as well as private
developers to make this project a reality. Letters of support from these collaborating parties are
included in Appendix C.
17

APPENDIX A
CONSTRUCTION COST ESTIMATES

APPENDIX B
PROPOSED CONSTRUCTION SCHEDULE

ID Task Name Start Finish Predecessors
1 PARTA to Submit the TIGER Grant Application Tue 9/15/09 Tue 9/15/09
Kent Central Gateway
Anticipated Construction Schedule
(Pending Funding Availability)
Quart 4th Quarte 1st Quart 2nd Quart 3rd Quart 4th Quarte 1st Quart 2nd Quart 3rd Quart 4th Quarte 1st Quarte 2nd Quart 3rd Quart 4th Quarte 1st Quart
u e Oct o e Jan e MarApr a Jun Jul u e Oct o e Jan e MarApr a Jun Jul u e Oct o e Jan e MarApr a Jun Jul u e Oct o e Jan e Mar
9/15
2 TIGER Grant Selection Process (Feb. 17, 2010 is the latest
award notification date. However, assume notification will be
received earlier in order to meet the President's ARRA goals.)
Tue 9/15/09 Mon 1/18/10 1
3 Complete Remaining ROW Acquisitions Utilizing Already
Encumbered Funds (for Construction Contract No.2)
Tue 9/15/09 Mon 8/30/10 1
4 Begin Preparing Final Bid Documents. Two (2) Sets of Bid
Documents will be Prepared - One for Utility and City Road
Modifications, the Other for the Construction of the MMC
(Portions of this Work will Utilize Already Encumbered Funds)
Tue 9/15/09 Mon 3/29/10 1
5 Milestone: PARTA Receives Notice of TIGER Grant
Award
Mon 1/18/10 Mon 1/18/10 2
1/18
6 Execute Private Development Partnership Contracts and
Agreements
Tue 1/19/10 Mon 4/12/10 5
7 Advertise Contract No. 1: Utility and Road Modifications Tue 3/30/10 Mon 5/10/10 5,4
8 Contractor Selection for Contract No. 1 Tue 5/11/10 Mon 5/17/10 7
9 Complete Contract No. 1: Construction of Utility and City
Roadway Modifications
Mon 5/31/10 Mon 8/1/11
10 Milestone: Begin Construction for Contract Group 1 Mon 5/31/10 Mon 5/31/10 8FS+10 days
5/31
11 Set up Roadway/Pedestrian Maintenance-of-Traffic Tue 6/1/10 Mon 6/7/10 10
12 Remove Existing Pavements and Sidewalks (Demo) Tue 6/8/10 Mon 7/5/10 11
13 Construct and Install Required Drainage Features Tue 7/6/10 Mon 8/30/10 12
14 Relocate Existing Overhead Utilities Tue 6/8/10 Mon 11/22/10 11
15 Complete Grading Work Tue 6/8/10 Mon 11/22/10 11
16 Construct New Pavements, Curbs, and Pedestrian
Sidewalks (for continuation of the Esplanade)
Tue 6/8/10 Mon 6/6/11 11
17 Install Lighting Tue 6/7/11 Mon 7/4/11 16
Project: Construction Schedule_Updat
Date: Tue 9/15/09
Task
Split
Progress
Milestone
Summary
Project Summary
External Tasks
External Milestone
Deadline
Page 1

ID Task Name Start Finish Predecessors
18 Install One (1) New Traffic Signal, and Other Traffic Control
Devices
Tue 6/7/11 Mon 7/4/11 16
Kent Central Gateway
Anticipated Construction Schedule
(Pending Funding Availability)
Quart 4th Quarte 1st Quart 2nd Quart 3rd Quart 4th Quarte 1st Quart 2nd Quart 3rd Quart 4th Quarte 1st Quarte 2nd Quart 3rd Quart 4th Quarte 1st Quart
u e Oct o e Jan e MarApr a Jun Jul u e Oct o e Jan e MarApr a Jun Jul u e Oct o e Jan e MarApr a Jun Jul u e Oct o e Jan e Mar
19 Complete Landscaping Tue 6/7/11 Mon 8/1/11 16
20 Milestone: Construction Contract No.1 Competed Mon 8/1/11 Mon 8/1/11 19
8/1
21 Advertise Contract No. 2: Construction of the Multimodal
Center
Tue 8/31/10 Mon 11/8/10 3,5,4
22 Contractor Selection for Contract No. 2 Tue 11/9/10 Mon 11/22/10 21
23 Complete Contract No. 2: Construction of the Multimodal
Transit Center
Tue 1/18/11 Mon 9/10/12
24 Clear Site and Demo One (1) Warehouse Building Tue 1/18/11 Mon 3/14/11 22FS+40 days
25 Complete Site Mass Excavation and Grading Tue 3/15/11 Mon 4/25/11 24
26 Install Building Foundations and Adjacent Retaining Walls Tue 4/26/11 Mon 8/15/11 25
27 Install San, Storm, Water, and Other Underground Utilities Tue 4/26/11 Mon 8/15/11 25
28 Construct Building Framing Tue 8/16/11 Mon 12/5/11 26
29 Install Facility Mechanical, Electrical, and Plumbing Systems Tue 12/6/11 Mon 3/26/12 28
30 Complete Building Finishes Tue 3/27/12 Mon 7/16/12 29
31 Complete Final Site Work and Landscaping Tue 7/17/12 Mon 9/10/12 30
32 Milestone: Construction Contract No. 2 Completed Mon 9/10/12 Mon 9/10/12 31
9/10
33 Completion of Interior Finishes of Retail, Office, and
Other Rentable Spaces (Managed and Funded by
Private Developers) - For Information Only. Job
Creation Figures are Not Included in the Grant
Application Tables.
Tue 9/11/12 Mon 2/25/13 32
34 Construction of Adjacent Hotel, Office, and Retail
Center (Managed and Funded by Private Developers) -
For Information Only. Job Creation Figures are Not
Included in the Grant Application Tables.
Tue 8/3/10 Fri 3/1/13 6FS+80 days
Project: Construction Schedule_Updat
Date: Tue 9/15/09
Task
Split
Progress
Milestone
Summary
Project Summary
External Tasks
External Milestone
Deadline
Page 2

APPENDIX C
LETTERS OF PROJECT SUPPORT

September 2, 2009
Michael P. Harrington, PE
Railway & Transit Team Leader
TranSystems
55 Public Square, Suite 1900
Cleveland, OH 44113
Michael,
We would like to take the opportunity to express our strong support for the application of the Portage Area
Regional Transportation Authority (“PARTA”) for Federal funding in connection with the downtown Kent
Central Gateway (“Project”).
In April of 2008 Fairmount Properties, LLC and Street-Works, LLC (collectively, University Realty Partners,
LLC, “URP”) were chosen as the City of Kent’s Development Partner for the downtown district immediately
adjacent to the Project site. URP was selected following a national Request for Qualifications as the most
responsive to the City of Kent’s stated goal of achieving downtown revitalization through reinvestment and
the creation of mixed-use density while enhancing long-term economic impact through job creation and
increased tax revenues. Further, URP brings an extensive background developing complex, urban, mixeduse
districts within the framework of public-private partnerships.
In collaboration with the City of Kent, Kent State University, and other community stakeholders, our
partnership will design, build, entitle, lease, finance, and manage over 250,000 square feet of development
including a new hotel and conference center, street-level retail, office and residential space. In addition,
our site has been identified for the new Portage County courthouse. All of these planned civic, commercial,
and residential uses are, however, dependent on the much needed transit and parking which will be
created as a result of this Federal funding, without which the planned development and economic
revitalization of the greater Kent community will not be able to proceed.
URP has been working with PARTA and we have identified a financial and legal framework that provides
PARTA with a much needed ongoing source of revenue while at the same time provides for a seamless
relationship between the Project site and the surrounding commercial development. We believe that
through a district-wide tenanting, ownership, marketing and management strategy the essential long-term
integrity of the Project, both physically and functionally, will be preserved as a multi-purpose transit
gateway within the community.
2618 N. Moreland Boulevard • Cleveland, Ohio 44120 • Phone: 216.514.8700 • Fax: 216.514.1484

We would be happy to provide more detailed information regarding our partnership, the plan and vision for
downtown Kent, references from both the public and/or private sector, as well as answer any additional
questions. Please do not hesitate to contact us and thank you for your consideration of this letter.
Sincerely,
Fairmount Properties, LLC
Street-Works Development, LLC
Randy Ruttenberg, Principal
Jeff Levien, Sr. Director of Development
1-216-514-8700 1-914-949-6505
CC: John Drew, Bryan Smith, Jim Prost, Adam Branscomb

APPENDIX D
PUBLIC – PRIVATE PARTNERSHIP MEMORANDUM

MEMORANDUM
Via E-Mail
TO:
cc:
FROM:
Jim Prost
John Drew
Bryan Smith
Mike Harrington
Adam Branscomb, Randy Ruttenberg, and Jeff Levien
DATE: August 6, 2009
RE:
Proposed Kent Central Gateway public-private partnership
We would like to thank you for the opportunity to express our interest in shaping a public-private
partnership with the Portage Area Regional Transportation Authority (“PARTA”) in connection with
the commercial space component of the downtown Kent Central Gateway (“Project”).
Although a number of details are yet to be determined regarding Project design, timing and
delivery, we feel that as the City of Kent’s chosen Development Partner for the surrounding
downtown district immediately adjacent to the Project site, Fairmount Properties, LLC and Street-
Works, LLC (collectively University Realty Partners, LLC, “URP”) is the best choice to cohesively
unite the Project’s commercial component with the balance of the district through a comprehensive
merchandizing, leasing and management strategy.
Recognizing that the commercial space within the Project represents a potential ongoing source of
revenue for PARTA, we present the following outline of a proposed public-private partnership
between URP and PARTA:
1. URP will purchase from PARTA through a condominium sale the approximately 30-35K SF
of commercial space within the Project. The Terms of Purchase will be determined once a
cost estimate for the construction is complete, space delivery specifications are complete,
and further analysis of market demand is complete.
2. URP will pay a monthly Condominium Assessment to PARTA. Monthly Assessment Fee
will be determined once a thorough expense analysis and projections for the Project has
been completed. URP would like to explore an incentive-based Assessment Fee structure
whereby consideration is given to the incremental income generated by the commercial
space as the cash flow increases corresponding to market absorption.
2618 N. MORELAND BOULEVARD • CLEVELAND, OHIO 44120 • PHONE 216.514.8700 • FACSIMILE 216.514.1484

3. URP will pay a pro-rata share of Common Area Maintenance.
4. URP and PARTA will enter into standard Reciprocal Operating and Easement Agreements
5. URP will maintain design oversight as it relates to the commercial space, storefronts, and
mechanicals distribution in order to ensure retail and office viability.
Although we have some concerns regarding the design of the commercial space which would need
to be addressed in order to ensure the long term economic viability of that space, we believe that
the above framework will succeed in providing an on-going revenue source for PARTA while
maintaining a cohesive and sustainable commercial environment in downtown Kent. We look
forward to hearing your thoughts on what we feel can be a very exciting and mutually rewarding
public-private partnership.
2618 N. MORELAND BOULEVARD • CLEVELAND, OHIO 44120 • PHONE 216.514.8700 • FACSIMILE 216.514.1484

APPENDIX E
KENT MARKET AND FINANCIAL OVERVIEW REPORT

Kent Central Gateway
Market and Financial Overview
August 2009
Prepared by:
Basile Baumann Prost Cole & Associates, Inc.

Kent Central Gateway Market and Financial Overview DRAFT
Table of Contents
1.0 Introduction ......................................................................................................... 2
1.1 Purpose ............................................................................................................... 2
1.2 Work Completed .................................................................................................. 3
1.3 Description of Project .......................................................................................... 3
1.4 Existing Downtown Conditions ............................................................................ 4
2.0 Demographic and Economic Profile ................................................................. 6
2.1 Analysis Areas ..................................................................................................... 6
2.2 Selected Economic and Demographic Conditions .............................................. 9
3.0 Office Market ......................................................................................................14
3.1 Market Overview ............................................................................................... 14
3.2 Supply Characteristics ...................................................................................... 15
3.3 Demand Characteristics .................................................................................... 16
4.0 Residential Market .............................................................................................20
4.1 Market Overview ............................................................................................... 20
4.2 Supply Characteristics ...................................................................................... 21
4.3 Demand Characteristics .................................................................................... 22
5.1 Market Overview ............................................................................................... 28
5.3 Supply Characteristics ...................................................................................... 29
5.4 Demand Characteristics .................................................................................... 31
6.0 Market Summary and Next Steps .....................................................................36
6.1 Summary Market Observations ......................................................................... 36
6.2 Opportunities for Leased Space in the Transit Center ...................................... 37
6.3 Opportunities for Transit Oriented and Downtown Development ...................... 37
6.4 Preliminary Public Private Partnership Opportunities ....................................... 37
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1.0 Introduction
1.1 Purpose
The Kent Central Gateway (KCG) will be a new multimodal transportation center that will not only improve
transit service and connectivity in the City of Kent and to and from Kent State University and the downtown
area, but also support downtown revitalization, the economic viability of the university and regional
economic development. The project as envisioned will:
• Improve transit service by acting as an efficient park-and-ride for passengers traveling to and from
local areas and the larger region, including Kent, Kent State University, Cleveland, and Akron, and
serving as a transfer point for PARTA routes.
• Provide space for commercial and community uses, including potential space for selected
university/student uses, classrooms, art events and a city and university welcome center, which
would provide additional activity and community gathering space in downtown.
• Serve as an anchor for downtown revitalization by becoming a destination in its own right, a civic
focal point, and a transportation hub.
• Enhance pedestrian and transit connections between the downtown, residential neighborhoods,
and Kent State University, thereby encouraging potential customers to walk or use public transit
throughout downtown and patronize businesses, recognizing yet minimizing the need to provide
additional parking to accommodate downtown revitalization.
The proposed site for the Kent Central Gateway is bound by Depeyster Street, Erie Street, East Main
Street, and Haymaker Parkway (S.R. 59).
Exhibit 1.1: Proposed Development Area, Kent Central Gateway
Source: Google Earth
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The development of market and financial analyses, a public-private partnership strategy, and draft
memoranda of understanding (MOU) are key components to addressing the viability and implementation of
a new multimodal center in downtown Kent that will spur downtown revitalization and enhance the local
economy and market by connecting the downtown and university. This Market and Financial Overview
outlines the potential market support for uses both at the Kent Central Gateway and elsewhere downtown
as well as financial and public-private partnership considerations related to implementation.
1.2 Work Completed
BBPC has prepared a Market and Financial Overview for the Kent Central Gateway. As part of this
analysis, BBPC completed the following:
• Reviewed local data, reports, plans and regulations
• Undertook field surveys of the downtown, Kent and vicinity
• Conducted stakeholder interviews with downtown developers, economic and transit leaders to
understand planned public and private investments which may have relationships to the Kent
Central Gateway
• Evaluated planned developments and local real estate factors
• Examined information on analyzing university downtowns and university related downtown transit
centers
• Prepared an economic and demographic overview of areas surrounding the Kent Central Gateway
• Analyzed the local real estate market for uses that may be accommodated in either the transit
center, transit oriented developments, or downtown (e.g. office, apartment and
condominium/attached ownership housing, and retail), with consideration of demographic and
economic trends and market supply and demand factors
• Quantified and described potential opportunities for leased space in the transit center, transit
oriented development linked to transit but not on site, and downtown revitalization and
development
The Market and Financial Overview will serve as baseline information for subsequent analysis of life-cycle
costs, finalization of a development program for the transit center, analysis of the program via pro forma
analysis, delineation of a public-private funding strategy, and drafting of memoranda of understanding
(MOU).
1.3 Description of Project
The Kent Central Gateway site is located in downtown Kent, along East Main Street, Depeyster Street,
Erie Street, and Haymaker Parkway. The project as initially planned includes:
• Bus transfer facility
• Parking garage to include 100 parking spaces for transit use as well as 200 to 300 spaces to
support the planned hotel/conference center, office and retail development in downtown
• Commercial spaces to include approximately 22,000 square feet, initially broken out as follows:
9,900 square feet of retail, 3,200 square feet of restaurant, and 9,300 square feet of office
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Kent Central Gateway Market and Financial Overview DRAFT
There are many economic development benefits associated with the location of the Kent Central Gateway
in downtown Kent at the selected site. These include its potential to: attract activity; generate foot traffic
for downtown businesses; and optimize transit/pedestrian activity.
Another benefit includes its ability to supply yet minimize and efficiently provide needed parking to support
downtown development. In this sense the Kent Central Gateway could serve as an important catalyst for
downtown development, and could help propel Kent further toward becoming a vibrant university
downtown similar to: Charlottesville, VA; Chapel Hill, NC; Austin, TX; Boulder, CO; West Lafayette, IN;
Princeton, NJ; and that is being provided by multimodal transit facilities in Athens, GA and Normal, IL.
1.4 Existing Downtown Conditions
The Kent Central Gateway will support several developments underway downtown. Adjacent to the Kent
Central Gateway are several blocks with a variety of developments planned and underway that hold
promise to reinvigorate downtown Kent by accommodating a mix of commerce, hospitality, and housing.
Many of these projects relate specifically to and plan on utilizing the transportation and potential parking
resources of the Kent Central Gateway. These include the planned hotel and conference center,
Fairmount’s mixed use development, and the Phoenix project.
• Hotel and Conference Center: identified as a top priority in the Kent Bicentennial Plan of 2004, a
new hotel and conference center facility is planned to be located southwest of the Kent Central
Gateway. The facility could serve as a catalyst to downtown redevelopment and connectivity to
the Kent State campus. Plans call for a five-story hotel and two-story conference center facility in
the block bound by Erie Street, Depeyster Street, and Haymaker Parkway to feature 120 hotel
rooms in a variety of suite configurations (78,000 square feet) and 24,000 square feet of
conference center space. Other potential program components include a 1,600 square foot Kent
State University visitor center, 20,000 square feet of office space, and an on-site restaurant. An
early 2010 start date for the project is anticipated.
• Mixed Use Development (Fairmount): situated west of the planned hotel and conference center
and southwest of the Kent Central Gateway in the block bound by Erie Street, Depeyster Street,
Haymaker Parkway and S. Water Street, the Fairmount mixed-use project as planned calls for a
mix of office, retail, restaurant, and residential space. The program as delineated in June 2009
calls for 50,000 square feet of office space, 80,000 square feet of retail and restaurant space, and
62 two-bedroom dwelling units in 50,000 square feet. The program also calls for a 400 space,
four-level structured parking garage.
• Phoenix Project: located along Main Street west of the Kent Central Gateway, this $6.5 million
renovation is being spearheaded by a local philanthropist. Development activity has included the
addition of new upper floors to existing structures, brand new buildings, and the creation of a
pedestrian-oriented, retail lined alley perpendicular to Main Street. Office tenants in the project
include Leadership Portage County, the Kent Chamber of Commerce, Main Street Kent, the
Burbick Foundation, and some of Kent State University’s marketing and communications offices.
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Kent Central Gateway Market and Financial Overview DRAFT
Existing retail uses include the Fig Leaf boutique and the Katie Brooke Quilt Shop, and planned
tenants of alley storefronts include an ice cream shop, toy store, vintage clothing store, sandwich
shop, barber shop, and dry cleaners. There are also plans for Kent State University students to
operate a few businesses along the alley. This project has demonstrated the pent-up demand for
quality new and renovated space in downtown Kent.
The activity generated by these projects as well as by the Kent Central Gateway should serve to mutually
reinforce each other and contribute to a more vibrant, lively downtown.
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Kent Central Gateway Market and Financial Overview DRAFT
2.0 Demographic and Economic Profile
2.1 Analysis Areas
To understand characteristics of households and firms surrounding the Kent Central Gateway, BBPC
performed an economic and demographic analysis of surrounding geographic areas: 1) the walkshed
surrounding the Kent Central Gateway that includes the downtown proper and nearby residential areas, 2)
the City of Kent, 3) Portage County, 4) the land within a 15 minute drive of the Kent Central Gateway
(which captures a semi-regional market), and 5) the Cleveland-Akron combined metropolitan statistical
area.
Exhibit 2.1: Analysis Areas
Walkshed Surrounding Kent Central Gateway
Includes the land generally within a quarter mile walk of the Kent Central Gateway, bound by Crain Avenue
to the north, Lincoln Street to the east, Summit Street to the south, and the Cuyahoga River to the west.
Source: ESRI Business Information Solutions
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Kent Central Gateway Market and Financial Overview DRAFT
City of Kent
Walkshed and Kent State University Shown for Reference
Source: ESRI Business Information Solutions
Portage County
Walkshed, Kent State University and the City of Kent Shown for Reference
Source: ESRI Business Information Solutions
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Kent Central Gateway Market and Financial Overview DRAFT
15 Minute Driveshed
Walkshed, Kent State University, the City of Kent and Portage County Shown for Reference
Source: ESRI Business Information Solutions
Cleveland-Akron Combined Metropolitan Statistical Area
Walkshed, Kent State University, the City of Kent, Portage County and
15 Minute Driveshed Shown for Reference
Source: ESRI Business Information Solutions
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Kent Central Gateway Market and Financial Overview DRAFT
2.2 Selected Economic and Demographic Conditions
To evaluate characteristics of potential demand for mixed-use, transit oriented downtown commercial and
residential spaces, BBPC performed an overview assessment of demographic and economic conditions in
the areas surrounding the planned Kent Central Gateway (KCG). This analysis took note of the unique
aspects of the downtown and the University.
The immediate walkshed surrounding the KCG, which includes the commercial downtown and surrounding
neighborhoods, is profiled first to understand the immediate context within which the KCG is located.
Census-based statistics, estimates and projections for 2000, 2009 and 2014 illustrate that KSU students
are present in the downtown area, though but a small overall percentage of the total university enrollment.
Some of the statistics that suggest students are living in this area include:
• Group quarters population: in 2000, there were approximately 1,100 residents living in the
walkshed area; some (97) of these residents lived in group quarters, indicating they are students.
• Rental housing: the majority of the 459 housing units in 2009 in this area were rental (66
percent), which students tend to prefer
• Age of residents: the percentage of college-aged residents (20-24) has risen from 2000 to 2009
• College enrollment: half of the population enrolled in school (545 of 1,090) were in college or
graduate school
• Nonfamily households: 300 households in the walkshed were comprised of unrelated residents
Exhibit 2.2: Selected Economic and Demographic Characteristics
Walkshed Surrounding KCG
Population Characteristics (2000)
2000 Total Population 1,134
2000 Group Quarters Pop. 97
Housing Characteristics (2009)
Total Units 459
Owner Occupied Units 25%
Renter Occupied Units 66%
Vacant Units 9%
Population, Age 20-24 (2000-2014)
Population by School Enrollment
2000 46%
2009 48%
Total Population Age 3+ in School 1,090
Enrolled in College, Grad/Prof School 50%
Nonfamily Households (2000)
Total Nonfamily Households 300
Householder Living Alone 161
Householder Not Living Alone 300
Source: ESRI Business Information Solutions
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Kent Central Gateway Market and Financial Overview DRAFT
To further understand where KSU students live, BBPC obtained data from Kent State University regarding
residence locations of students for the 2009 semester. The top five cities where KSU students live include:
1) Kent (8,576 students in 2009), 2) Canton (2,204 students in 2009), 3) Akron (1,241 students in 2009), 4)
Warren (1,148 students in 2009), and Stow (944 students in 2009). These statistics suggest that while
many students live within an easy 15-minute drive of the Kent campus and the KCG, there are significant
clusters of students living further afield. Some of these students could potentially represent opportunities
for relocation closer to the campus, if attractive downtown housing were offered.
Exhibit 2.3: Residence Locations
Kent State University Students
15-Minute Driveshed Surrounding KCG Shown for Reference
Source: ESRI Business Information Solutions
The immediate walkshed area was compared to surrounding areas to better understand conditions in the
City of Kent, surrounding Portage County, the 15-minute driveshed, and the Cleveland-Akron MSA, which
captures many KSU student residences. The following table provides an overview of salient demographic
and economic features of these areas in comparison to one another.
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Kent Central Gateway Market and Financial Overview DRAFT
Exhibit 2.4: Selected Current Demographics
Areas Surrounding Kent Central Gateway, 2009
Walkshed City of Kent Portage
County
15-Minute
Driveshed
Cleveland-
Akron MSA
Population 1,091 28,386 158,732 195,769 3,905,423
Households 419 9,972 60,508 78,951 1,557,600
Household Size 2.35 2.21 2.49 2.38 2.45
Group Quarters Pop. (2000) 97 5,725 7,552 7,473 88,358
Labor Force 730 15,660 84,384 103,299 1,829,356
At-Place Employment 1,545 18,211 63,445 86,910 2,018,310
Median HH Income $30,579 $37,000 $55,932 $54,381 $52,656
Median Home Value $112,245 $123,277 $129,035 $114,183 $118,082
Median Age 23.9 24.1 35.8 36.9 39.4
Source: ESRI Business Information Solutions
These statistics suggest that:
• Approximately 4 percent (nearly 1,100) of the City of Kent’s residents (both in terms of population
and households) live within an easy walk of the planned Kent Central Gateway.
• Household sizes are smaller in the immediate walkshed and City of Kent (with averages of 2.35
and 2.21 members per household, respectively) than at larger geographic scales [e.g. Portage
County (average of 2.49 members per household), the 15 minute driveshed (2.38) and the
Cleveland-Akron combined metropolitan statistical area (2.45)]. These numbers suggest that
household types living closer to downtown Kent are more likely to include singles and couples than
families with children.
• Median household income is lower closer to the Kent Central Gateway, likely due to the presence
of students.
• At-place employment (i.e. the total number of employees working in businesses in the study area)
is more than twice that of labor force (i.e. the total number of residents that are employed) in the
walkshed surrounding the Kent Central Gateway, suggesting that the downtown area has
functioned as more of a destination for commerce than a residential node. In contrast, at-place
employment compared to labor force is more balanced at the City level, and labor force exceeds
at-place employment at larger geographic levels (e.g. Portage County, the 15 minute driveshed
and the region) reflecting the presence of both employment nodes and suburban residential
communities at those scales.
The distribution of at-place employees by industry offers insight into the types of businesses and
employment offerings located in areas surrounding the Kent Central Gateway. The distribution by number
and percentage is provided in the following tables.
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Exhibit 2.5: Industry Mix by Employment (Number)
Areas Surrounding Kent Central Gateway, 2009
Exhibit 2.6: Industry Mix by Employment (Percentage)
Areas Surrounding Kent Central Gateway, 2009
Walkshed City of
Kent
Portage
County
15-Minute
Driveshed
Cleveland-
Akron MSA
Construction, Manufacturing,
225 2,028 17,402 24,425 545,952
Transportation and Wholesale Trade
Retail Trade 163 1,012 7,088 11,954 239,724
Finance, Insurance, and Real Estate 141 475 1,863 3,425 135,900
Professional Services 94 517 1,594 2,818 117,772
Health Care 130 719 6,456 9,067 295,398
Education 97 6,524 10,175 11,311 132,571
Government 196 336 3,185 4,482 130,005
Other 499 6,600 15,682 19,428 420,988
Total 1,545 18,211 63,445 86,910 2,018,310
Source: ESRI Business Information Solutions
Walkshed City of
Kent
Portage
County
15-Minute
Driveshed
Cleveland-
Akron MSA
Construction, Manufacturing,
15% 11% 27% 28% 27%
Transportation and Wholesale Trade
Retail Trade 11% 6% 11% 14% 12%
Finance, Insurance, and Real Estate 9% 3% 3% 4% 7%
Professional Services 6% 3% 3% 3% 6%
Health Care 8% 4% 10% 10% 15%
Education 6% 36% 16% 13% 7%
Government 13% 2% 5% 5% 6%
Other 32% 36% 25% 22% 21%
Total 100% 100% 100% 100% 100%
Source: ESRI Business Information Solutions
Compared to larger surrounding geographies, the employment located within the walkshed surrounding
the Kent Central Gateway (1,545 total jobs) features a higher proportion of government jobs, which
comprised 13 percent of total employment compared to 2 to 6 percent in larger geographic areas.
Employment in educational services was also relatively less dominant in the immediate walkshed, at 6
percent, compared to educational employment in the City (36 percent), which includes Kent State
University (KSU is just beyond the immediate walkshed).
Traditional office-based fields comprised 15 percent of the employment in the immediate walkshed (9
percent of employment was in the finance, insurance and real estate field, and 6 percent in the
professional services industry), while retail employment represented 11 percent of all at-place employment
in the walkshed.
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An important aspect of Kent’s economy is the presence of Kent State University (KSU), which enrolls
nearly 23,000 students that provide potential for expenditures on housing and retail goods and services.
In 2009, KSU’s student population consisted of over 18,000 undergraduates and nearly 5,000 graduate
students. In the prior year, over 5,000 degrees were awarded, indicating the graduation of several
thousand students, some of which will find housing and employment in the City of Kent (the City’s
Bicentennial Plan noted that over 25 percent of the residents in the City had attended KSU).
Based on average per student spending estimates from other universities across the nation, KSU students
(undergraduate and graduate) are estimated to spend over $90 million annually on retail goods and
services, and another $65 million on off-campus housing. While total annual visitors to KSU are not
known, based on the relationship between the student population and visitor spending in other university
communities, it is estimated that each student generates $800 in visitor spending for a total of $18 million
in potential annual visitor spending based on the current student population.
Exhibit 2.7: Kent State University Profile, 2009
Undergraduates Graduates Total
Total 18,090 4,729 22,819
Annual Degrees Issued (2008) 3,790 1,354 5,144
Living On-Campus 6,332 169 6,500
Living Off-Campus (1/) 11,759 4,561 16,319
Potential Housing Expenditures (Off-Campus) (2/) $47,034,000 $18,242,000 $65,276,000
Potential Retail Expenditures (All Students) (2/) $72,360,000 $18,916,000 $91,276,000
Potential Visitor Expenditures (3/) $14,472,000 $3,783,200 $18,255,200
Source: Kent State University College Portrait, 2009; BBPC
1/ Off-campus graduate students estimated based upon difference between on-campus undergraduates and
total on-campus students
2/ Annual per student retail expenditures estimated at $4,000; annual per student housing expenditures
estimated at an additional $4,000 based upon average per student spending identified through review of
multiple economic impact studies for universities across the nation
3/ Visitor spending based on a relationship of $800 in annual visitor spending for every student. Ratio based
upon data collected for state colleges in economic impact studies from across the nation
Given the substantial estimated expenditure potential presented by students and visitors of KSU, the
growth of the student population is explored in subsequent sections of this report as an important source of
demand that may supplement the demand presented by firms and households in market areas surrounding
downtown Kent.
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3.0 Office Market
3.1 Market Overview
One component to a vibrant downtown is office space. Office-based firms can occupy upper-story spaces
above retail and restaurant uses and bring an important source of daytime foot traffic for retailers in their
employees. Projects planned and underway in Kent, including the Fairmount mixed-use development and
the Phoenix project, feature office space, and the KCG as planned may accommodate approximately 9,300
square feet of office uses. As such, an assessment of market trends in demand and supply of office space
at the national, regional, and local level is important to further understand opportunities for office space in
downtown Kent.
At the national level, the economic downturn has led to reduced need for office space, as firms have scaled
back on expansion plans and in many cases reduced the square footage leased per employee. However,
despite these trends, higher-quality properties in mixed-use, active markets have been cited as most likely
to hold value and best positioned to rebound quickly when the market recovers (according to
PriceWaterhouseCoopers’ “Emerging Trends in Real Estate 2009”). Transit-oriented office development in
particular is noted as a “can’t miss” for the attractiveness of an address adjacent to a transit facility.
Kent is situated within the Cleveland and Akron regional office markets, which include the downtowns of
both cities and surrounding suburbs. These markets have been impacted by the economic downturn, as
evidenced by increasing vacancy rates and negative absorption that has followed rising local
unemployment rates. Though unemployment rates are higher overall, employment in selected sectors –
particularly, in education and health services – has increased as demand for these services has grown.
Such increase in education and health care employment, and associated need for some office space to
accommodate medical professionals and some educational offices (for example, the marketing offices of
higher education facilities) could serve to buffer some of the negative impacts of the downturn on the
Cleveland and Akron office markets.
Despite the economic downturn, interest in office space in downtown Kent is demonstrated by both
projects planned and underway and businesses’ interest in new space. In downtown Kent, the Fairmount
mixed-use project as planned calls for 50,000 square feet of office space, and the Phoenix project has
added office space through renovation of existing buildings. With a growing list of businesses interested in
office space, the Phoenix project suggests that there is demand for higher-quality, upper story office space
in downtown Kent.
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3.2 Supply Characteristics
Downtown Kent is situated within the broad context of the Cleveland regional office market (which includes
downtown Cleveland and Akron, their suburbs, and surrounding counties). The Akron submarket is the
most proximate to Kent and Portage County.
Exhibit 3.1: Cleveland Regional Office Market Map
Source: CoStar Group, Inc.
The office market evaluation takes into account market trends pertaining to office buildings in the
Cleveland region and the Akron submarket, the most proximate submarket to Kent for which office
submarket data is available. Defined by CoStar Group, Inc., this submarket encompasses Summit County
with the exception of the Fairlawn/Montrose area in the western part of the County. Downtown office space
in Kent would most likely compare to the performance of office buildings in the Akron submarket, including
those in mixed-use developments in the Hudson area. However, as Kent’s downtown office developments
would likely be located in mixed-use, transit-oriented projects in emerging university towns, these office
developments would be unique projects lacking ready comparables.
The Cleveland office market consists of nearly 122 million square feet of office space with an overall
vacancy rate of 11.2 percent as of first quarter 2009. The Akron submarket near downtown Kent
comprises over 22 million square feet of office space (18 percent of the region’s inventory), with a vacancy
rate of 7.5 percent as of first quarter 2009, substantially lower than the regional rate.
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The downtown walkshed area surrounding Kent Central Gateway contained approximately 185,000 square
feet of office space, according to a 2008 inventory conducted as part of a City parking evaluation. This
figure includes public offices as well as private and non-profit sector spaces. Downtown is also adding
office space. The Phoenix Project includes approximately 14,000 square feet of office spaces, all of which
are reportedly leased at an approximate rate of $14 per square foot per year.
Exhibit 3.2: Selected Regional Office Market Overview (2009 1Q)
Akron Submarket Cleveland Region
Existing Inventory
# Buildings 1,272 4,497
Total GLA 22,173,898 121,999,449
Vacancy
Total SF 1,670,915 13,663,249
% 7.5% 11.2%
YTD Deliveries (SF) 54,658 54,658
Under Construction (SF) 47,600 784,160
Quoted Rate $15.17 $16.76
Source: CoStar Group, Inc.
The Akron submarket was the only submarket in the Cleveland region to post office deliveries in the first
quarter of 2009, when nearly 55,000 square feet was delivered. It was also one of a handful of submarkets
in the region with office development under construction.
Locally, the interest of developers and businesses in office space in downtown Kent bodes well for the
emergence of the downtown as a lively, mixed-use area with new office spaces. Despite national and
regional office market troubles created by the economic downturn, Kent is in a unique position to take
advantage of the momentum created by investment in the Kent Central Gateway, pipeline mixed use
projects, the unique demand generated by the presence of a major university nearby, and potential pent-up
demand for higher-quality, upper story office space downtown. Such factors should position downtown
Kent to develop a cluster of office-based firms as the broader national and regional office markets recover.
3.3 Demand Characteristics
Demand for new office space is driven in part by employment growth of office-based industries, as well as
by “trade-up” demand presented by firms and organizations seeking higher quality space. To analyze this
demand, BBPC identified both a primary and secondary market area from which the majority of demand in
terms of employment growth is expected to derive.
These areas have been defined as follows: primary market area – downtown walkshed area and Kent State
University; and secondary market area – 15 minute driveshed surrounding the Kent Central Gateway, which
encompasses the area that generally stretches to Streetsboro to the north, Ravenna and Rootstown to the
east, Mogadore to the south, and Silver Lake to the west. These areas have been defined based upon the
understanding that the immediate downtown environment and Kent State University could include firms
and offices looking for new or rehabilitated space within which to expand or trade up, and that the 15-
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minute driveshed captures firms and offices within a semi-regional, easy drive of downtown which may
consider moving into new or rehabilitated space.
Exhibit 3.3: Primary and Secondary Market Areas
Primary Market Area: Downtown Walkshed and Kent State University
Secondary Market Area: 15 Minute Driveshed Surrounding Kent Central Gateway
Source: ESRI Business Information Solutions
Employment projections are not available at these market area levels; however, they form the basis for
understanding future potential demand for space and are available at larger regional levels. To assess
demand for office space in these market areas, BBPC first analyzed office employment projections in the
Akron region that includes both the primary and secondary market areas. Office-based industries analyzed
include: finance and insurance; real estate and rental and leasing; professional and technical services;
management of companies and enterprises; and administrative and waste services. The projected growth
in each of these industries is summarized in the table below.
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Exhibit 3.4: Office-Based Industries by Employment
Akron MSA, 2006-2016
2006 2016 Change Annual
Growth
Rate
Finance and Insurance 10,800 11,200 400 0.4%
Real estate and rental and leasing 3,500 3,700 200 0.6%
Professional and technical services 13,900 16,000 2,100 1.4%
Management of companies and
14,000 16,100 2,100 1.4%
enterprises
Administrative and waste services 21,300 23,000 1,700 0.8%
TOTAL/AVERAGE 63,500 70,000 6,500 1.0%
Source: Ohio Office of Workforce Development, BBPC, 2009
Overall, these industries are expected to grow by an annual rate of 1 percent over the time period of 2006
to 2016, resulting in a net addition of 6,500 jobs. Certain industries are anticipated to grow more rapidly
than others; professional and technical services and management of companies and enterprises in
particular stand out as fields with high-growth potential. Assuming the projected annual rates of growth
identified in the 2006 to 2016 projections have held true for 2009, and extend to 2019, the Akron region
could add nearly 7,000 net new office-based jobs from 2009 to 2019 (approximately 3,300 from 2009 to
2014, and 3,500 from 2014 to 2019). Such changes are detailed in the table below.
Exhibit 3.5: Office-Based Industry Employment, 2009-2019 Estimates
Akron MSA
2009 2014 2019 Net Change
2009-2014
Net Change
2014-2019
Finance and Insurance 10,918 11,119 11,323 200 204
Real estate and rental and leasing 3,559 3,659 3,762 100 103
Professional and technical services 14,499 15,556 16,690 1,057 1,134
Management of companies and enterprises 14,599 15,656 16,789 1,057 1,133
Administrative and waste services 21,796 22,649 23,536 853 887
TOTAL 65,372 68,640 72,100 3,267 3,461
Source: BBPC estimates based upon Ohio Office of Workforce Development Growth Projections, 2009
As of 2009, there are an estimated 260 office-based employees in the primary market area, and another
8,000 in the secondary market area, or approximately 0.4 and 12.4 percent, respectively, of all office-based
employees (nearly 100,000) in the Akron region. Assuming the market areas maintain the same share of
office-based employment over time, the growth of office-based employees in the region would lead to the
net addition of nearly 30 jobs in the downtown walkshed from 2009 to 2019 (13 from 2009 to 2014, and 14
from 2014 to 2019), and over 800 in the secondary market area (400 from 2009 to 2019, and 430 from
2009 to 2019). These projected changes are documented in the table below.
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Exhibit 3.6: Office-Based Employment Growth Regional Capture, 2009-2019
Primary and Secondary Market Areas
Primary Market Area
Secondary Market Area
Estimated Office-Based Employees 257 8,101
Percent of Region 0.4% 12.4%
Net Change
2009-2014
Net Change
2014-2019
Net Change
2009-2014
Net Change
2014-2019
Finance and Insurance 1 1 20 30
Real estate and rental and leasing 0 0 10 10
Professional and technical services 4 4 130 140
Management of companies and enterprises 4 4 130 140
Administrative and waste services 3 3 110 110
TOTAL/AVERAGE 13 14 400 430
Source: ESRI Business Information Solutions, BBPC, 2009
In the broader Cleveland office market, the average office-based employee occupies 335 square feet.
Applying that density of employment to the projected nearly 30 new jobs in the primary market area and
800 jobs in the secondary market area, there is potential future demand to support nearly 10,000 square
feet of new office space in the primary market area from 2009 to 2019 and nearly 300,000 square feet in
the secondary market area. Of course, there is potential for the downtown area to capture more than the
10,000 projected based on trend-line employment growth, and to capture a larger share of the 300,000
square feet that could be demanded in the driveshed.
Exhibit 3.7: Projected Demand for Office Space by Market Area
2009-2019
Primary Market Area
Secondary Market Area
Total Employment Demand for New Total Employment Demand for New
Change
Space
Change
Space
2009-2014 13 4,300 400 134,000
2014-2019 14 4,600 430 144,000
TOTAL 26 8,900 830 278,000
Source: BBPC estimates based upon Ohio Office of Workforce Development Growth Projections, ESRI
Business Information Solutions employment estimates, and CoStar data on square footage per employee
in Cleveland office market (estimated at 335 square feet per employee)
Such space would not be limited to catering to firms with new employees but could also be oriented to
firms desiring higher-quality, newer space with modern amenities. BBPC believes downtown Kent may
capture a portion of this new space that may be demanded by growing firms as well as firms interested in
“trade-up” space.
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4.0 Residential Market
4.1 Market Overview
Housing is a vital aspect to developing a thriving downtown, as residents provide an important customer
base for businesses during evening and weekend hours. The location of residents within an easy walk of
transit can also increase ridership levels. Downtown projects planned in Kent, including the Fairmount
mixed-use development, include dwelling units (specifically, rental apartments). For these reasons, a
market evaluation of the national, regional, and local housing markets are important to understand trends
in multifamily housing near transit.
Relative to other types of real estate, apartments are faring better during the national economic downturn.
The growth of both the young adult population/Generation Y and the Baby Boomers/empty nester
population offer important sources of demand for apartments given lifestyle changes conducive to renting,
rather than purchasing, homes. Tighter lending rules has also made some former would-be buyers opt for
renting instead, as noted by PriceWaterhouseCoopers in “Emerging Trends in Real Estate 2009”).
Apartments near transit are noted as even better real estate options given the added marketability of
access to transit.
Kent is located in the Cleveland and Akron regional housing markets. While data on market trends at the
broad regional level for this large market is not available, data compiled for the Cleveland market provides
some insight into the context surrounding multifamily housing in at least part of the region. Cleveland’s
multifamily housing market has been impacted by the broader national recession, with vacancy rates on
the rise, and asking rents on the decline, as unemployment has increased.
Though the multifamily housing market in Cleveland has not been immune to the downturn, the local
multifamily housing market in downtown Kent presents a unique opportunity to introduce a new product
and perhaps satisfy pent-up demand for downtown housing. Currently, Kent lacks a supply of downtown
housing, and with a potentially captive audience of graduate students and young graduates from the
nearby university, could cater to the young adult/Generation Y population. The Fairmount mixed-use
project has recognized this opportunity and plans to add 62 two-bedroom units to the downtown housing
supply.
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4.2 Supply Characteristics
Unfortunately, housing market data statistics on the multifamily market is not available for the City of Kent
or the Akron region. However, data is available for the neighboring Cleveland multifamily housing market,
which provides some insight into trends in part of the region.
Exhibit 4.1: Cleveland Region Multifamily Housing Market Map
Source: REIS, Inc.
Defined by REIS, Inc., the Cleveland multifamily housing market contains twelve submarkets: 1)
Strongsville/Berea/Brook Park; 2) North Royalton/Brecksville; 3) Parma/Independence; 4) Bay
Village/Westlake/Rocky River; 5) N. Olmstead/Fairview Park; 6) Lakewood/Linndale/Brooklyn; 7)
Bedford/Garfield Heights/Bedford Heights; 8) Beachwood; 9) Lyndhurst/Mayfield/Richmond Heights; 10)
East Cleveland/Cleveland Heights; 11) Euclid/West Lake County; and 12) Downtown/The Flats/Warehouse
District. Multifamily housing in downtown Kent could potentially compare to the performance of rental units
in newer mixed-use developments near transit in these submarkets. However, given the lack of
precedents for such development in Kent, new multifamily housing in downtown does not have true
comparables.
As of first quarter 2009, the Cleveland residential market featured 523 multifamily properties comprised of
a total of over 110,000 units. The vacancy rate for multifamily units, at 6.4 percent (approximately 7,000
vacant units) was slightly lower than that of the Cleveland office market (7.5 percent), but higher than that
of the Cleveland multifamily market one year prior (5.7 percent).
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Existing Inventory
Vacancy
Exhibit 4.2: Residential Market Overview
Cleveland Region (2009 1Q)
Cleveland Region
Properties 523
Units 111,446
Vacant Units 7,133
Vacancy Rate 6.4%
YTD Deliveries (Units) 0
Average Asking Rent (Range) $514 - $1,019
Average Unit Size (Range) (Sq Ft) 422 - 1,240
Average Rent (per Sq Ft) $0.82 - $1.22
1/ Units Range from Studio to 3+ Bedrooms
Source: Reis, Inc.
Reflecting the economic downturn, and developers’ reluctance to expand the housing supply, no new
multifamily units were delivered in the region as of the first quarter of 2009, compared to 144 units
delivered in the first quarter of 2008. Such lack of new supply coming online could help to limit the extent
of the increase in vacancy that is projected to occur throughout the rest of 2009. Real estate experts
anticipate that recovery will begin in 2011 and gain momentum through 2013 (Reis, Inc.).
The walkshed that includes downtown Kent and surrounding residential neighborhoods featured an
estimated 459 housing units in 2009. The majority of these units (66 percent) were renter occupied, which
makes sense given the presence of student renters in the area. In downtown Kent, the planned investment
in the Kent Central Gateway and major developments in the pipeline, such as the hotel conference center
and mixed use development, will position downtown Kent as an attractive place to live with access to
transit and lively activity. The lack of high-quality downtown housing also suggests that new multifamily
development could satisfy potentially pent-up demand for downtown living. All of these factors should
place downtown Kent in a positive situation to absorb new housing units as the broader economy recovers.
4.3 Demand Characteristics
Generally speaking, demand for multifamily housing comes from both existing and projected future new
households. In particular, compact, downtown multifamily housing in mixed use environments often caters
to the interests of the young adult population (Generation Y) and the empty nester population (Baby
Boomers). Households most likely to prefer a new home in a multifamily, mixed use downtown setting
include those residents looking for an opportunity to walk to services, transit, the university, and the
Cuyahoga riverfront.
To better understand the characteristics of households that may provide demand for multifamily housing in
downtown Kent, BBPC analyzed the demographic composition of existing households living near
downtown, and projected growth of households.
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BBPC assumes that much of the demand for new housing in downtown Kent will emerge from those
households currently living near downtown. The Urban Land Institute (ULI) suggests that as a rule of
thumb, “between 50 to 75 percent of the buyers or renters in a new development come from the local
community.” Taking these factors into account, BBPC has defined a primary and secondary market area in
order to analyze trends in household demographics and potential demand for housing. These areas have
been defined as follows: primary market area – downtown walkshed area and Kent State University; and
secondary market area – 15 minute driveshed surrounding the Kent Central Gateway, which encompasses
the area that generally stretches to Streetsboro to the north, Ravenna and Rootstown to the east,
Mogadore to the south, and Silver Lake to the west.
Exhibit 4.3: Primary and Secondary Market Areas
Primary Market Area: Downtown Walkshed and Kent State University
Secondary Market Area: 15 Minute Driveshed Surrounding Kent Central Gateway
Source: ESRI Business Information Solutions
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In 2009, there were an estimated 419 households in the primary market area and 76,850 households in the
secondary market area (15 minute driveshed) surrounding the Kent Central Gateway. By 2014, total
households in the primary market area are projected to decrease slightly based on past trends to 415
households. However, households within the secondary market area this area are projected to increase to
77,799 households if they are added at a rate an annual rate of 0.25 percent, as current projections
suggest.
Exhibit 4.4: Existing & Future Households
Primary Market
Area
Secondary Market
Area
2009 Estimated Households 419 76,850
2014 Projected Households 415 77,799
Net Change 2009-2014 -4 949
Annual Rate 2009-2014 -0.19% 0.25%
Potential New Housing Demand (1/) - 949
1/ Assumes 1:1 ratio between new households and housing units demanded
Source: ESRI Business Information Solutions
Given these current projections of household change, the secondary market area surrounding Kent Central
Gateway could add 949 households from 2009 to 2014. Assuming a one to one relationship between new
households and demand for housing units, such household growth would equate to demand for 949
homes. It is possible that the downtown area could capture a portion of such growth and add households
rather than lose them in the future.
Because households are expected to increase in the secondary market area, it is useful to better
understand characteristics associated with households in this market area in terms of income, household
size, and age.
The median household income for households in the secondary market area was $54,315 in 2009, and is
projected to increase to $57,419 in 2014. This change in median income is expected to occur as more
households (over 3,400) are projected to enter the income bracket of those earning $50,000 to $74,999
annually. That income cohort is currently the largest group (23 percent of all households fell into this range
in 2009) and could become even more dominant in 2014 (when the group is projected to represent 27
percent of all households).
In addition to the growth of this income group, all cohorts earning above $75,000 per year are expected to
rise over the next five years, while most groups earning less than $50,000 are expected to shrink as
households enter into higher income brackets.
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Exhibit 4.5: Existing & Future Households by Income Range
15 Minute Driveshed Surrounding KCG
2009 2014 Net Change,
2009-2014
Number Percent Number Percent

Kent Central Gateway Market and Financial Overview DRAFT
The declining average size of households could result in demand for smaller homes with fewer bedrooms.
However, given the rising income of these households, amenities will still be important selling features of
new homes. Over the next five years, the 15 minute driveshed surrounding the Kent Central Gateway is
projected to add more households in the 25 to 34 and 55 to 74 age ranges than any other age cohorts. At
the same time, the median income of these two groups is also expected to rise anywhere from $1,000 to
over $5,000 annually, depending upon the age group.
Exhibit 4.8: Households by Income and Age of Householder
15 Minute Driveshed Surrounding KCG
2009 2014 Net Change 2009-2014
Age
No. of
Households
Median HH
Income
No. of
Households
Median HH
Income
No. of
Households
Median HH
Income

Kent Central Gateway Market and Financial Overview DRAFT
Exhibit 4.9: Kent State University Student Population and
Off-Campus Housing Demand, 2009-2014
Undergraduates Graduates Total
2009 Total 18,090 4,729 22,819
2014 Total (Projected) 24,095 6,299 30,393
2009 Off-Campus (Number) 11,759 4,561 16,319
2009 Off-Campus (Percent) 65% 96% 72%
2014 Off-Campus (Projected, Number) 15,661 6,074 21,736
2014 Off-Campus (Projected, Percent) 65% 96% 72%
Net Change, 2009-2014 Off-Campus 3,903 1,514 5,417
Potential Net Housing Units Demanded (1/) 1,301 757 2,058
Source: Kent State University College Portrait, 2009; BBPC
1/ Assumes three undergraduate students per housing unit and two graduate students per
housing unit, on average
The demand for additional housing units presented by the growth of the student population living offcampus
is estimated at approximately 2,000 net housing units, based on the assumption that there will be
three undergraduate students per unit and two graduate students per unit. There is potential for downtown
Kent to capture a portion of this demand for housing presented by the growth of the KSU student
population.
In summary, the growth of target demographic groups in the secondary market area as well as the growth
of the student population present key sources of demand for housing that could be captured, in part, by
new downtown residential offerings.
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5.0 Retail Market
5.1 Market Overview
The success of downtown revitalization efforts often are measured by the presence of commercial
thoroughfares populated with ground-floor retail spaces. Multimodal centers can contribute to the
occupancy of such spaces, not only by bringing customers to and from such centers but also by increasing
critical mass of retail space with retail spaces of their own. The Kent Central Gateway is planned to
include space for retail tenants (including approximately 9,900 square feet of retail space and 3,200 square
feet of restaurant space), and downtown projects such as the Fairmount mixed-use development and the
Phoenix project feature ground-floor retail space. An evaluation of retail market demand and supply trends
is therefore in order to understand the national, regional, and local level market contexts that may influence
opportunities for retail space in downtown Kent.
As consumer spending has dropped and personal savings rates increased as a result of the national
economic downturn, the near-term demand for retail goods and related need for retail space has
decreased. Those changes, coupled with tighter lending practices preventing the easy flow of credit to
new retailers, have led to a “disaster” for the retail market in 2009. 1 Although the national retail market is
troubled, some types of retail properties are positioned to weather the storm better than others. According
to PriceWaterhouseCoopers’ “Emerging Trends in Real Estate 2009,” urban retail in mixed use, lively
markets as well as grocery-anchored neighborhood-oriented centers should fare better during the
downturn. Transit oriented retail development is described as a “best bet” because of people’s growing
interest in driving less and using transit more.
Kent is located in the northeast Ohio, greater Cleveland regional retail market that includes Akron as well
as Cleveland and surrounding areas. This region has been impacted by the national economic downturn,
as reflected in higher vacancy rates and lower asking rental rates for available space. These changes
have occurred despite modest increases in new retail development brought to market in the region,
indicating that it is the demand side of the equation fueling the higher vacancy and lower asking rates
rather than large tracts of new, vacant supply. However, bright spots for the region are the growth of
particular industry sectors – namely, education and health services – which, by adding employees and
payroll, could propel some consumer spending in the region and help reduce the overall level of economic
downturn felt in the regional retail market.
With Kent State University, downtown Kent is particularly well positioned to take advantage of the growth of
the educational industry in the region. The combination of the university’s presence, a lack of past
development downtown, and investment in catalytic projects such as the Kent Central Gateway, the hotel
conference center, and mixed use projects could together provide the ingredients for retail market
expansion in downtown Kent that would be well-positioned for success when the regional and national
markets recover. Such growth would build upon the existing base of dining, shopping, gallery and service
spaces and create a stronger critical mass of offerings downtown.
1 CB Richard Ellis, 2009 Northeast Ohio Retail Report
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5.3 Supply Characteristics
The regional retail market includes Kent as well as other communities in and around Cleveland and Akron;
this market shares the same boundaries as the regional office market, and is depicted below. The nearest
submarket to Kent and Portage County is the Akron submarket, as defined by CoStar Group, Inc.
Exhibit 5.1: Cleveland Regional Retail Market Map
Source: CoStar Group, Inc.
The retail market supply analysis focuses on characteristics of retail spaces in the Cleveland region and
Akron submarket (the nearest submarket to Kent for which data is available). Sharing the same boundaries
as the Akron office submarket, the Akron retail submarket as defined by CoStar Group, Inc. spans Summit
County excluding the Fairlawn/Montrose area. New retail spaces in downtown Kent may compare to
characteristics of properties in Akron, particularly those in mixed-use developments; however, these may
not serve as true comparables for Kent since Kent’s downtown developments would be transit oriented
products in an emerging college town.
In the Cleveland regional retail market, there were over 8,000 retail properties with over 150 million square
feet of space as of first quarter 2009. These spaces featured a vacancy rate of 7.1 percent and an asking
rental rate of $11.14 per square foot per year. In comparison, the Akron submarket consisted of over 2,600
properties representing nearly 33 million square feet of space (22 percent of the region’s inventory). The
vacancy rate was lower in the Akron submarket, at 6.1 percent, than in the broader region; asking rental
rates were also slightly lower at $9.06 compared to the region.
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Exhibit 5.2: Selected Regional Retail Market Overview (2009 1Q)
Akron Submarket Cleveland Region
Existing Inventory
# Buildings 2,628 8,159
Total GLA 32,593,089 150,173,859
Vacancy
Total SF 1,991,555 10,667,151
% 6.1% 7.1%
YTD Deliveries (SF) 14,000 24,080
Under Construction (SF) 22,406 813,829
Quoted Rate $9.06 $11.14
Source: CoStar Group, Inc.
As was found in the evaluation of office supply, the Akron submarket was one of few submarkets in the
region to exhibit office deliveries in early 2009. A total of 14,000 square feet of space was delivered during
the first quarter, representing nearly 60 percent of all deliveries in the region (over 24,000 square feet).
Another approximately 22,000 square feet of space was under construction in early 2009, representing 3
percent of the regional inventory of space under construction.
Downtown Kent contains over 50 dining, shopping, gallery and service establishments, and an estimated
260,000 square feet of space (according to a 2008 inventory conducted as part of a City parking study).
The downtown mix of commercial businesses includes casual dining establishments, coffee shops and
cafes, dining places, and many specialty shops. These establishments are somewhat geographically
clustered by type: food services are focused along Water Street, while specialty shops are primarily
clustered along Main Street. The downtown business mix is expanding, with tenants having recently
opened shop in the Phoenix Project (including Acorn Alley). Many of these establishments operate from
small retail spaces; most spaces in the Phoenix Project (which is fully leased) measure 30 x 40 feet for a
total of 1,200 square feet per space. Lease rates downtown reportedly are approximately $12 per square
foot per year.
In downtown Kent, developers and businesses have expressed interest in expanding the local supply of
retail spaces, both in the transit center as well as in mixed use developments. Kent has an opportunity to
coordinate the development and merchandising of these planned and proposed spaces in order to introduce
a critical mass of retail space that may serve transit riders, area residents, hotel/conference center visitors,
and university-related patrons. The relative strength of the neighboring Akron submarket, with its lower
vacancy rates and demonstrated inventory expansion relative to the region, further speaks positively for
downtown Kent and its retail prospects.
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5.4 Demand Characteristics
For most retailers, the majority of sales derive from purchases made by area residents. In some cases,
non-geographic sources of demand, such as transit riders, overnight travelers and conference attendees,
can provide additional sales. In general, retailers rely on area residents as the primary source of sales, but
these may be supplemented by sales to other demand segments like transit riders, overnight travelers and
conference attendees as secondary sources of sales.
Given these factors, a retail market demand assessment has been undertaken that evaluates
characteristics of residents in geographic trade areas as well as demand presented by non-geographically
based demand segments. BBPC assumes that the local communities in and around Kent will provide the
bulk of demand for retail goods and services. As such, both a primary and secondary trade area have been
defined that include immediate neighborhoods surrounding the KCG as well as neighborhoods within easy
driving distance.
The primary trade area includes the downtown walkshed and Kent State University, while the secondary
trade area includes households within an easy 15 minute drive of the Kent Central Gateway. These trade
areas are the same as the primary and secondary market areas defined in the residential market section,
and the secondary retail trade area is the same area used in the February 2008 City of Kent Retail Site
Assessment (this study includes the more focused primary market area in addition to the more generic
secondary market area because of our study’s focus upon the downtown and University area). As
previously described, the 15 minute driveshed surrounding the Kent Central Gateway includes households
generally spanning to Streetsboro to the north, Ravenna and Rootstown to the east, Mogadore to the south,
and Silver Lake to the west.
Exhibit 5.3: Primary and Secondary Trade Areas
Primary Market Area: Downtown Walkshed and Kent State University
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Secondary Market Area: 15 Minute Driveshed Surrounding Kent Central Gateway
Source: ESRI Business Information Solutions
Within the primary market area, trends in population and household growth do not indicate substantial
growth of households in the near-term. However, within the secondary market area, households are
expected to increase, which could provide an opportunity for the capture of some of those households in
the downtown area. For these reasons, characteristics of growth of households in the secondary market
area are profiled in terms of retail spending, with recognition that some of these households may ultimately
locate downtown in new housing there.
Within the secondary market area, the number of households is projected to rise by nearly 1,000, from
76,850 households in 2009 to 77.799 households in 2014. At the same time the overall number of
households is expected to grow, household incomes are also projected to increase, from a median of
$54,315 in 2009 to $57,419 in 2014. In fact, the number of households in every income range above
$50,000 in annual income is expected to grow during this time period. While households and incomes are
growing, the average size of households is shrinking, as more households fall within the one- and twoperson
categories. This trend is occurring in tandem with a shift in age toward more young adults (e.g. 25
to 34) and empty nester/retirees (e.g. 55 to 74).
The implications of these demographic changes to Kent’s retail market are positive in that more
households and higher incomes could translate to more retail purchases. Further, young adults
(particularly those without children) and empty nester households are beneficial for downtown Kent retail in
two ways. First, these groups are more likely than others to locate in downtown, transit oriented
residences, making them potentially captive audiences for neighborhood-oriented goods and services.
Second, these groups are also more likely to have disposable income for retail spending, given that many
do not have children and may opt for rental homes rather than mortgages.
Analysis of the consumer demand (i.e. potential expenditures) presented by all the households within the
15 minute driveshed compared to retail supply in terms of sales suggests that overall, these households
exhibit demand that exceeds the current retail supply in that same driveshed area. In 2009, an estimated
$38 million in potential expenditures were not captured by retailers in sales, which indicates households
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likely made those potential purchases elsewhere, possibly in other areas in the region beyond the
driveshed.
Store
Group
Exhibit 5.4: Retail Comparison, Demand vs. Supply, 2009
Secondary Market Area
(15 Minute Driveshed Surrounding Kent Central Gateway)
Demand
(Expenditures)
Supply
(Sales)
Retail Leakage
(Supply - Demand)
Capture
Rate
Furniture Stores $30,220,646 $12,315,877 ($17,904,769) 41%
Home Furnishings Stores $16,057,641 $11,704,254 ($4,353,387) 73%
Electronics & Appliance Stores $47,490,664 $44,439,652 ($3,051,012) 94%
Building Materials & Supplies $58,284,448 $64,829,028 $6,544,580 111%
Lawn and Garden Equipment $5,550,669 $3,180,947 ($2,369,722) 57%
Grocery Stores $263,195,436 $293,318,502 $30,123,066 111%
Specialty Food Stores $6,668,149 $1,909,514 ($4,758,635) 29%
Beer, Wine and Liquor Stores $13,826,453 $3,607,135 ($10,219,318) 26%
Health & Personal Care Stores $78,027,542 $65,315,927 ($12,711,615) 84%
Clothing Stores $48,021,052 $16,538,972 ($31,482,080) 34%
Shoe Stores $8,055,057 $3,188,741 ($4,866,316) 40%
Jewelry, Luggage & Leather Goods $10,903,356 $5,506,573 ($5,396,783) 51%
Sporting Goods & Hobbies $17,659,569 $12,691,062 ($4,968,507) 72%
Book, Periodical & Music Stores $21,332,910 $16,175,475 ($5,157,435) 76%
Department Stores $86,233,385 $144,054,357 $57,820,972 167%
Other General Merchandise Stores $106,698,377 $111,916,065 $5,217,688 105%
Florists $4,919,724 $2,800,280 ($2,119,444) 57%
Office Supplies $10,180,466 $8,336,220 ($1,844,246) 82%
Used Merchandise Stores $4,228,580 $1,864,496 ($2,364,084) 44%
Miscellaneous Store Retailers $27,282,882 $11,295,376 ($15,987,506) 41%
Full-Service Restaurants $185,723,697 $113,055,232 ($72,668,465) 61%
Limited-Service Dining $74,381,162 $141,285,963 $66,904,801 190%
Special Food Services $17,148,524 $14,816,974 ($2,331,550) 86%
Drinking Places $17,785,948 $17,331,645 ($454,303) 97%
TOTAL/AVERAGE $1,159,876,337 $1,121,478,267 ($38,398,070) 97%
Source: ESRI Business Information Solutions
Of course, the amount of “leaked” sales varied by retail store category, with some categories exhibiting
more leaked sales than others, and some not leaking sales at all, but rather demonstrating a surplus of
sales in excess of demand. For those latter categories, which include building materials and supplies,
grocery stores, department stores, other general merchandise stores, and limited-serving dining places,
the retail surplus suggests the businesses attracted patrons from beyond the immediate driveshed trade
area. In contrast, store categories with relatively more leaked sales (specifically, more than $10 million)
included: full-service restaurants ($73 million in leaked sales), clothing stores ($31 million), furniture stores
($18 million), miscellaneous store retailers ($16 million), health and personal care stores ($13 million), and
beer, wine and liquor stores ($10 million).
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Focusing simply on the present leakage exhibited by these categories (which together total $161 million in
leaked sales), and applying standard regional sales volumes ($250 for the Midwest in line with data
provided by the Urban Land Institute), BBPC has estimated a potential opportunity for the introduction of
nearly 650,000 square feet of space in the driveshed to satisfy unmet demand currently being “leaked”
elsewhere.
The leakage in these six store categories in particular could result in opportunities for businesses in
downtown Kent, not only because of their relative undersupply compared to demand in the driveshed, but
also because of their consistency with a downtown environment and with changing demographics in the
area. Full-service restaurants, clothing stores, furniture stores, miscellaneous stores (think specialty
retailers), health and personal care stores, and beer, wine and liquor stores all can be accommodated in
smaller, more urban spaces. They also can together satisfy the needs of fashion-conscious young adults
as well as health-conscious seniors, not to mention the dining needs of the local student body (as well as
drinking needs of those of age). A lively restaurant scene would position downtown Kent as a stronger
destination for conferences at the planned conference center facility as well, and make the area a more
appealing choice for overnight travelers.
New downtown residents also present a potential source of demand. The Fairmount mixed-use
development will provide 62 units of downtown housing. Currently, the nearly 80,000 households in the
secondary trade area spend $25,000 annually on retail goods and services. If the households in the new
mixed-use downtown housing spend a similar amount, the 62 households will present demand for $1.6
million in retail goods and services. At $250 per square foot, this equates to support for 6,200 square feet.
As the downtown office market expands, so too does the downtown base of employees. National surveys
have found that the average downtown office worker spends $2,800 annually on retail goods and services.
Planned projects in downtown Kent – the Fairmount mixed-use development and Kent Central Gateway –
will provide nearly 60,000 square feet of office space. At an assumed 335 square feet per employee
(consistent with regional data) this development equates to 180 employees and associated $500,000 in
annual retail spending. At $250 per square foot, these employees would support 2,000 square feet of
space.
Other visitors to downtown Kent will also provide a source of support for retail goods and services. Guests
of the planned hotel/conference center will provide a unique source of demand, as will transit riders at the
Kent Central Gateway. While precise hotel/conference center attendees and transit ridership projections
are not known, these two segments will supplement the demand presented by downtown residents and
employees.
In addition to the opportunity for new retail space presented by the leakage of retail spending in the
surrounding driveshed, the projected growth of the student population at Kent State University and
associated growth of student expenditures offers a key source of demand that should be targeted by
downtown retailers, particularly as catalytic projects like the Kent Central Gateway seek to provide better
connections between the university and downtown.
Over the next five years, KSU could add nearly 8,000 students to its population, if past rates of growth
continue. Based on a national average per student retail spending figure of $4,000 per year, such growth
would result in $30 million in new retail goods and services sales (including restaurant sales), and another
$6 million based on an associated $800 per student in annual visitor spending for a total of $36 million in
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annual sales. Such growth, if realized at KSU, could support approximately 150,000 square feet of retail
space.
Exhibit 5.5: Kent State University Student Population and Retail Demand, 2009-2014
Undergraduates Graduates Total
2009 Total 18,090 4,729 22,819
2014 Total (Projected) 24,095 6,299 30,393
2009 Estimated Expenditures (1/) $72,360,000 $18,916,000 $91,276,000
2014 Estimated Expenditures (1/) $96,378,100 $25,194,695 $121,572,795
Net Change, 2009-2014 Student Expenditures $24,018,100 $6,278,695 $30,296,795
Subtotal Potential Net Retail Space Demanded (2/) 96,072 25,115 121,187
2009 Estimated Visitor Expenditures (3/) $14,472,000 $3,783,200 $18,255,200
2014 Estimated Visitor Expenditures (3/) $19,275,620 $5,038,939 $24,314,559
Net Change, 2009-2014 Visitor Expenditures $4,803,620 $1,255,739 $6,059,359
Subtotal Potential Net Retail Space Demanded (2/) 19,214 5,023 24,237
Total Potential Net Retail Space Demanded 115,287 30,138 145,425
Source: Kent State University College Portrait, 2009; BBPC
1/ Annual per student retail expenditures estimated at $4,000 based upon average per student spending identified
through review of multiple economic impact studies for universities across the nation
2/ Assumes a retail sales productivity of $250 per square foot
3/ Visitor spending based on a relationship of $800 in annual visitor spending for every student. Ratio based upon data
collected for state colleges in economic impact studies from across the nation
To conclude, there are opportunities for downtown Kent to expand its retail and restaurant offerings by
targeting a portion of the demand presented by residents in the surrounding driveshed and by the growth of
students over the next five years. Downtown Kent may capture portions of:
• 650,000 square feet of retail space that potentially may be supported by currently leaked
expenditures in the driveshed
• 6,200 square feet of retail space that could be supported by new downtown residents based on
planned projects
• 2,000 square feet of retail space that could be supported by new downtown employees based on
planned projects
• Space that may be supported by guests at the hotel/conference center
• Space that may be supported by transit riders
• 150,000 square feet of retail space that could be supported by new students at KSU
As the base of downtown retail and restaurant offerings expands, and patronage increases, downtown can
develop a critical mass of retail and restaurant space. The Kent Central Gateway will be an important
source of support for this revitalization, not only as an activity generator but as a source of efficient parking
to support retail spaces downtown.
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6.0 Market Summary and Next Steps
6.1 Summary Market Observations
The market and financial overview assessment shows that sufficient demand exists to support the nontransit
related spaces in the Kent Central Gateway as well as other mixed-use (i.e. office, multifamily
housing and retail projects) planned downtown. The key lynchpin in making such downtown projects
possible is the Kent Central Gateway, which will serve as a downtown attraction and source of efficient
parking to support downtown revitalization. The key findings of the market and financial overview are
provided in the table below, which describes summary thoughts by use type.
Exhibit 6.1: Uses in Comparison
Use Strengths Constraints Opportunities
Office • Demonstrated developer and
business interest in downtown
space
• Strength of education sector
• Projected potential employment
growth over long term
• Enhanced attractiveness of
address near transit (expanded
access provided by KCG)
• Regional rising
vacancy rates
and negative
absorption of
space
• Rising regional
unemployment
• Capture portion of projected
opportunity for office space in region
• Cater to office-based fields with longterm
growth potential
• Satisfy potentially pent-up demand
with higher-quality, “trade up” space
Multifamily
Housing
• Growth of key demand
segments (young adults and
empty nesters)
• Interest in mixed use living near
transit
• Smaller households that may
prefer compact, urban-style
homes
• Regional rising
vacancy rates
• Declining
regional asking
rents
• Rising regional
unemployment
• Capture portion of projected
opportunity for new housing based on
growth of households in surrounding
driveshed and growth of student
population
• Target young adults and empty
nesters likely to prefer a downtown
address near transit
• Provide a new product that satisfies a
potentially pent-up demand for
downtown housing
Retail • Projected growth of selected
industries (including education)
and selected household types
(including young adults and
empty nesters with rising
incomes)
• Planned projects which could
provide critical mass of retail in
downtown Kent
• Ability to target multiple types of
demand sources beyond area
residents (including transit
users, conference attendees,
and overnight travelers)
• Unmet demand in selected
retail store categories
(evidenced by “leakage”)
• Higher regional
vacancy rates
• Lower regional
asking rents for
available space
• Rising regional
unemployment
• Capture portion of projected
opportunity for new retail in
surrounding driveshed based on
leaked expenditures, and opportunity
presented by growth of student
population
• Focus on store categories with more
leaked sales, including full-service
restaurants, clothing stores, furniture
stores, miscellaneous stores, health
and personal care stores, and beer,
wine and liquor stores
• Consider targeting multiple demand
segments, including young adults and
empty nesters as well as the local
student body, transit users, overnight
travelers and conference attendees
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6.2 Opportunities for Leased Space in the Transit Center
The Kent Central Gateway as currently planned will include approximately 22,000 square feet of
commercial space, including approximately 9,900 square feet of retail, 3,200 square feet of restaurant, and
9,300 square feet of office space. This includes six retail storefronts (approximately 1,650 per space).
Given trends in the primary and secondary market areas, BBPC believes there is market support for these
uses, particularly given the success of the Phoenix Project downtown, which features similar types of
spaces (most spaces in that project are approximately 1,200 square feet).
The downtown area is underserved with retail offerings, and needs a critical mass of retail which could be
in part supported with the KCG. The expansion of the retail sector could allow for a stronger connection
between downtown and Kent State University, bringing stronger foot traffic between the two areas.
Ultimately, a stronger connection with KSU will enhance ridership at the transit center, because many
students take long-term trips on weekends to the Cleveland area.
6.3 Opportunities for Transit Oriented and Downtown Development
Despite the economic downturn at the national and regional levels, there are reasons to be optimistic about
the market for mixed-use, pedestrian friendly development in downtown Kent that would be both transit
oriented and downtown appropriate. Developers and businesses have expressed demonstrated interest in
downtown’s relatively untapped market, and are planning high-quality new and rehabilitated spaces to
accommodate this demand. Over the next five years, households and jobs are expected to grow despite
the current downturn, and particular industries – notably education and health care – are even adding jobs
during the economic downturn. The enhanced attractiveness of downtown with the catalytic investment in
the Kent Central Gateway could further increase the appeal of new downtown spaces. BBPC believes that
downtown Kent will be a prime location to absorb demand for new office, housing and retail spaces driven
by demand in surrounding market areas.
6.4 Preliminary Public Private Partnership Opportunities
However, the transformation of downtown Kent into a lively commercial and residential hub similar to other
university towns across the nation will not occur overnight. One potential method to jumpstart this
transformation would be to allow for the joint merchandising of commercial space in mixed-use projects
underway and the Kent Central Gateway, which could allow for the attraction of retailers with co-tenant
requirements and introduce a stronger critical mass of retail simultaneously. Such merchandising could be
accomplished through joint development and memoranda of understanding that define a master lease
approach.
Another opportunity to facilitate such revitalization lies in the Kent Central Gateway’s ability to offer parking
to support downtown revitalization projects. A master lease agreement that allows joint merchandising of
commercial space also could potentially include developer operation of such parking, which would be
relatively attractive to a developer in that construction of parking atop the KCG (which already would
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include 100 spaces of parking spaces devoted to transit use) would be less costly than building an entire
garage; the former does not have site acquisition costs, site work costs, nor elevator costs to the
developer.
Such parking will require a revenue stream over the long term. To make users more accustomed to paying
for parking, in the near-term, spaces could charge a daily rate (such as $8 per day) but allow customers to
receive tokens from merchants to reduce the charge to $2 per day (with the merchant paying a modest 50
cents per token). A fund also could be established allowing developers of new uses the option to pay into
the fund in lieu of providing parking with their project (payment in lieu of parking, or PILOP).
The construction of this parking ideally would involve the City of Kent, Kent State University, and the
development community, since the parking spaces would serve a public purpose of encouraging the
revitalization of downtown, could accommodate university visitors, and would accommodate visitors to
private developments.
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APPENDIX F
TABLE OF LONG TERM CAPITAL & OPERATING COSTS

Project Details
Project
Kent Multimodal Transit Center (Kent Central Gateway)
Costs 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Construction Costs (1/) ($26,109,525)
Operating Costs (2/) - ($145,000) ($149,400) ($153,900) ($158,500) ($163,300) ($168,200) ($173,200) ($178,400) ($183,800) ($189,300) ($195,000) ($200,900) ($206,900) ($213,100) ($219,500) ($226,100) ($232,900) ($239,900) ($247,100) ($254,500)
Transit Parking Revenues (3/) - $15,600 $18,200 $20,800 $23,400 $24,700 $25,441 $26,204 $26,990 $27,800 $28,634 $29,493 $30,378 $31,289 $32,228 $33,195 $34,191 $35,216 $36,273 $37,361 $38,482
Non-Transit Lease Income (4/) - $13,291 $17,721 $21,043 $21,043 $21,043 $22,306 $23,644 $25,063 $26,567 $28,161 $29,569 $31,047 $32,600 $34,230 $35,941 $37,379 $38,874 $40,429 $42,046 $43,728
CAM Charges (5/) - $55,028 $56,697 $58,405 $60,151 $61,972 $63,832 $65,729 $67,703 $69,752 $71,839 $74,003 $76,242 $78,519 $80,871 $83,300 $85,805 $88,386 $91,042 $93,774 $96,583
Total Costs ($26,109,525) ($61,082) ($56,782) ($53,651) ($53,906) ($55,584) ($56,621) ($57,622) ($58,644) ($59,681) ($60,666) ($61,935) ($63,233) ($64,492) ($65,771) ($67,064) ($68,726) ($70,424) ($72,156) ($73,918) ($75,707)
Benefits 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Construction Payroll (Direct and Spin-off) (6/) $11,395,934 $7,699,955 $7,930,954 $8,168,883 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Permanent Payroll (Direct and Spin-off) (7/) - $2,446,800 $2,544,672 $2,646,459 $2,752,317 $2,862,410 $2,976,906 $3,095,983 $3,219,822 $3,348,615 $3,482,559 $3,621,862 $3,766,736 $3,917,406 $4,074,102 $4,237,066 $4,406,549 $4,582,811 $4,766,123 $4,956,768 $5,155,039
Total Benefits $11,395,934 $10,146,755 $10,475,626 $10,815,342 $2,752,317 $2,862,410 $2,976,906 $3,095,983 $3,219,822 $3,348,615 $3,482,559 $3,621,862 $3,766,736 $3,917,406 $4,074,102 $4,237,066 $4,406,549 $4,582,811 $4,766,123 $4,956,768 $5,155,039
Costs - Benefits ($14,713,591) $10,085,673 $10,418,844 $10,761,690 $2,698,411 $2,806,826 $2,920,285 $3,038,361 $3,161,178 $3,288,934 $3,421,894 $3,559,926 $3,703,503 $3,852,913 $4,008,331 $4,170,002 $4,337,823 $4,512,386 $4,693,967 $4,882,849 $5,079,331
Benefit Cost Ratio (BCR)
Present Value of Costs (PVC) ($25,002,623)
Present Value of Benefits (PVB) $63,145,845
BCR (PVB/PVC) 2.53
BBPC Sources based on Bureau of Economic Analysis Rims II Model, Bureau of Labor & Statistics Wage Rates & Urban Land Institute Economic Impact Factors
Operating costs increase with inflation at an annual rate of: 3%
Payroll increases at an annual rate of: 4%
Non-transit lease revenue increases at an annual rate of: 6%
CAM increases with inflation at an annual rate of: 3%
Transit parking revenues increase at an annual rate of: 7%
Transit parking revenues assume a parking fee of $1 per day, 260 work days in a year, and 100 spaces
CAM (common area maintenance) revenues assume a fee of 8% of $12/SF of private sector lease revenue on 23,074 square feet of leasable area, which is leased up on the following schedule: 65 percent in year 1, 87.5 percent in year 2, and 95% in year three through twenty; assumes Low initial lease ($12) then go up every five years per year go up 7, 6, 5, 4
would only go up to $22 at end of five years
Building Assumptions Related to Operating Costs
Sq. ft. floor % of Bldg % of Costs
Transit parking 40,824 23%
Non-transit parking 81,648 46% 56%
Stairs 5,120 3%
Restroom 1,127 1%
Bus driveway and parking 24,241 14%
Non-transit leasable space 23,074 13% 18%
176,034 100%
Sources
1/ KCG & TranSystems
2/ KCG & TranSystems
3/ BBPC
4/ BBPC
5/ BBPC
6/ BBPC
7/ BBPC
14

APPENDIX G
FEDERAL WAGE RATE REQUIREMENT CERTIFICATION