Morningside-Andrews-Camp Springs and Clinton Sector Plan Areas

Strategies for Implementation:Morningside-Andrews-Camp Springsand Clinton Sector Plan AreasMNCPPC | February 1, 2011

AGENDA►Review of Market Study Findings and Conclusions►A Vision for Central Branch Avenue►Toolkit for Revitalization►Implementing the Vision1RCLCO 10981.02

Review of Market Study Findings and Conclusions2RCLCO 10981.02

GOALS AND OBJECTIVESMarket Study Goals & Objectives• Assess current conditions in the study area’sland use markets• Identify major findings and market trends forthese uses, including potential opportunities andthreats• Develop strategic recommendations forrevitalization in the plan areas, includingpotential:• Catalytic development projects• Market-driven development projects• Work in coordination with the design team,Cunningham | Quill ArchitectsRCLCO TeamAdam Ducker, Managing DirectorShyam Kannan, PrincipalGDA TeamMarisa Flowers, PrincipalLindsay Duerr, Project Manager3RCLCO 10981.02

MORNINGSIDE-ANDREWS-CAMP SPRINGSSECTOR PLAN STUDY AREA4RCLCO 10981.02

CLINTON SECTOR PLAN STUDY AREA5RCLCO 10981.02

KEY MARKET FINDINGSLack of Daytime Employees Limits Retail Market SuccessOffice Existing supply lacks competitiveness & nearby economic drivers are notcontributing to demand.Opportunity for new office space to target medical users, GSA-scheduletenants, and locally driven office space while revitalizing key areasIndustrial Existing facilities serve more as flex-office and storage space thantraditional industrial uses; tenants using outdated spaceOpportunity to redevelop, upgrade, and concentrate350,000300,000250,000200,000150,000100,00050,0000133,923290,62922,79930,084Daytime Employment Within 5-Mile Radius of Selected Areas170,249250,863202,967237,32150,30643,28541,02035,86182,6319,46119,25953,57222,51943,24022,77355,06243,93771,2709,75910,134Springfield Seven Corners Greenbelt Laurel Silver Spring Wheaton College Park Clinton MACSEmployees Office Employees Industrial Employees6RCLCO 10981.02

KEY MARKET FINDINGSReduce & Concentrate Retail Space into Priority Activity CentersResidential Average or below-average household density and stagnant householdgrowth limits the spending power available to drive the retail marketInfuse the corridor with spending power by adding high-density unitsRetail Abundance of retail space along the corridor has lowered performance, asmany retailers are chasing limited spending power and there is no concentrated“center of gravity”Reduce amount of overall retail square feet (SF) and concentrate new retaildevelopment to create a destination activity centerLand Use RecommendationsLand Use Today TomorrowRetail 1.8 M SF 600,000 SF (Repurpose 1.2 M SF)Office 2.2 M SF 3.4 M (with new 1.2 M SF Class A)Industrial 3.2 M SF 3.2 M SFResidential 7,043 9,043 – 15,043 (Add 2K – 8K Units)Hotel 5-10 Struggling Hotels 2 – 3 Strong Hotels7RCLCO 10981.02

STAKEHOLDER INPUTWHAT YOU TOLD US YOU WANTED TO SEE…“Park Once” paradigmRationalized flow of trafficMore desirable mix of retail tenantsUpgraded design aesthetics along the corridorBranch Avenue metro to be a mixed-use village that brands the areaIncentivize private investment and reinvestment in commercial realestateCreation of an arts district and non-commercial uses in Camp Springs8RCLCO 10981.02

MARKET OPPORTUNITIESFORCES THAT WILL SHAPE PLANNING EFFORTRegional Forces• Bethesda Naval Hospital• Stronger Green LineLocal Forces• Capitol Riverfront• St. Elizabeth’s Hospital• Branch Avenue Metro• Andrews Federal Center• Southern Hospital9RCLCO 10981.02

MARKET OPPORTUNITIESFORCES THAT WILL SHAPE PLANNING EFFORTUnmet Market Demands• Andrews AFB Housing• Class A Medical OfficeOffice Space47%53%3,5003,0002,5002,0001,5001,0005000Jobs and Housing858 8003,000Real Estate CriteriaClass A Class B Class COn-Base Housing(Units)New MilitaryPositions (Jobs)Net AssigmentIncrease (Militaryand Private)• Enterprise Zone• Lower-cost real estate• Commercial TIF• Strong Incomes• Property Consolidation10RCLCO 10981.02

ADDRESSING DEVELOPMENT CHALLENGESWHEN PLANNING WITH LIMITED RESOURCESMaster-Planning an Existing CorridorPotential redevelopment projects must present a financial opportunity toexisting property ownersExisting owners may not be well positioned to make improvementsPLANNING Engage Andrews LAND Business YOU & Community DON’T Alliance OWN OR CONTROLIdentify locations where significant redevelopment can occur with involvementof fewer ownersAddressing Limited Resources & Market BarriersResources are limited – prioritize key projects and objectivesCommunicate priorities to key stakeholdersBase plan on market realitiesSeek funding or policy interventions when necessaryIdentify where current zoning doesn’t conform to market function and may limitopportunities11RCLCO 10981.02

Vision for Central Branch Avenue12RCLCO 10981.02

FIVE DISTINCT ACTIVITY CENTERSRATIONALIZED USE PATTERNS AND STRONGER PLACES1. Branch Avenue Station• Transit-oriented village• Drives identity for entire area• Mix of residences, shopping, jobs2. Camp Springs Town Center• Non-commercial activity center• Destination for arts, recreation uses• True “center of community”3. Coventry Village• Employment center for service industries• Residential village serving AFB and community4. Downtown Clinton• Regional retail destination• Consumer medical and health services center• Village dining and local-serving offices5. Andrews Health Sciences Center• Veterans Health Hub• Enhanced office opportunities• Complete Care Community13RCLCO 10981.02

REAL ESTATE DEVELOPMENT TRAJECTORYLONG-TERM MARKET-SUPPORTABLE SOLUTION1. Branch Avenue Station• 2,800 new homes• 195,000 square feet of new shopping/dining• 3.3 M square feet of office2. Camp Springs Town Center• 150k square feet of arts-related uses• 300k square feet of recreation-related uses• Re-use of existing buildings3. Coventry Village• 1,500 - 2,000 new residential units• 300k – 500k square feet of service uses4. Downtown Clinton• 400k – 500k square feet of regional retail• 300k – 500k square feet of office• 150k square feet of village dining• 400 to 800 new homes5. Andrews Health Sciences Center• 500k square feet of office (medical)• 200 to 300 new homes14RCLCO 10981.02

REAL ESTATE DEVELOPMENT IMPLICATIONSREQUIRES MASSIVE LAND USE INTERVENTION1. Branch Avenue Station• Accelerating Joint Development process• Increasing flexibility in permitting• Pursue vision of 8.0 FAR2. Camp Springs Town Center• Community as real estate change agent• Obtaining site control• Finding and empowering new occupants3. Coventry Village• Coordinate with Andrews AFB• Embrace “PDR” zone• Area-wide business relocation effort4. Downtown Clinton• Reposition large swaths of land• Engage owners and development community• Manage a main street retail district5. Andrews Health Sciences Center• Hospital as an ally• Dramatic increase in commercial space15RCLCO 10981.02

BRANCH AVENUE STATIONPROCESS ALREADY UNDERWAY FOR THIS CRITICAL AREAZoning - EAST Properties AcresAncillary Commercial 2 1.5Commercial Miscellaneous 5 6.3Commercial Offices 8 22.0Commercial Shopping Center 15 32.6Rural Residential 1 0.7Total 31.0 63.1Total Assessed Value $74MZoning - WEST Properties AcresCommercial Miscellaneous 17 67.2Commercial Shopping Center 2 9.8Total 19 77Total Assessed Value$51.3 MKey Findings•Demonstrated developer interest in highdensityresidential in transit-orientedconfiguration.•Green line terminus with significantcommercial development potential.•East/West “split” in terms of zoning andmarket-driven uses to-date16RCLCO 10981.02

BRANCH AVENUE STATIONPROCESS ALREADY UNDERWAY FOR THIS CRITICAL AREAFuture Market Positioning• Transit-oriented village• Mix of uses including residential and retail• Gateway to Southern Branch Avenue• Locus for shopping, dining, entertainmentMarket Opportunities• WMATA Branch Avenue Study• Expansion of Green Line employment• Existing developer momentum (residential)• Two-phase approach – over time reshapephysical form of auto-oriented usesDevelopment Challenges• Engage existing property owners in vision• Flexibility in zoning, especially forresidential• Parking and access needs for WMATA17RCLCO 10981.02

ANDREWS HEALTH SCIENCES CENTERUPGRADED LOCUS FOR MEDICAL ACTIVITYZoning Properties AcresAncillary Commerical 2 1.5Commercial Office 1 4.7Commercial Shopping Center 4 13.8Rural Residential 1 0.7Total 8 20.6Assessed Value$9.9 MKey Findings• Very little land zoned for commercial office•Large swaths of open space and park space• Surface parking lots that could be usedbetter• Medical users occupying sub-standardspace18RCLCO 10981.02

ANDREWS HEALTH SCIENCES CENTERUPGRADED LOCUS FOR MEDICAL ACTIVITYFuture Market Positioning• “Andrews Health Sciences Center”• Premier location for Veterans Health in theregion• Office space for medical-office users• Complete care communitiesMarket Opportunities• Lower land values (comparatively)• Hospital anchor• Underutilized space and open space•Integrate with senior living and veteransliving facilitiesDevelopment Challenges• Bringing Southern Hospital on-board as adevelopment partner• Repositioning existing land• Access and ingress/egress19RCLCO 10981.02

DOWNTOWN CLINTONDIVERSIFY USES, CONSOLIDATE RETAIL ACTIVITIESDowntown Clinton WestZoning Properties AcresCommercial Miscellaneous 2 1.4Commercial Office 3 1.9Commercial Shopping Center 64 55.5Single-Family Detached 1 5.7Other 1 0.2Total 71 65Assessed Value$64.6MDowntown Clinton EastZoning Properties AcresCommerical Office 10 9.0Commerical Shopping Center 27 108.4Single Family Detached 6 16.3Rural Residential 3 1.4Total 46 135Assessed Value$146 MKey Findings• Too much retail acreage given marketpotential• Non-retailers in retail space•No real place for office users – who arenow occupying substandard space in area•Transport configurations suggest multipledistinct zones20RCLCO 10981.02

DOWNTOWN CLINTONDIVERSIFY USES, CONSOLIDATE RETAIL ACTIVITIESFuture Market Positioning• Regional-serving retail destination• Locus for professional and medical office• Lifestyle residential•“Village retail” – primarily diningMarket Opportunities• Retailers already want to be here• One side has emerged as “better”• Food etc.• Segment the district to organize land uses• Proximity to Southern HospitalDevelopment Challenges• Large scale land repositioning• Establish site control and joint planning• Traffic and access• Managing a “Main Street” district• Relocating existing businesses21RCLCO 10981.02

CAMP SPRINGS TOWN CENTERNON-COMMERCIAL ACTIVITY CENTERZoning Properties AcresCommunity Commercial 1 16.7Miscellaneous Commercial 31 19.4Commercial Office 19 46.6Commercial Shopping Center 57 70.0Light Industrial 2 28.1Single Family Housing 1 3.8Rural Residential 5 8.9Total 116 194Assessed Value $140MKey Findings• Obsolete buildings• Office users consuming low-quality space•Major access and transportation issues•Limited production-oriented employment• Lowest-value commercial property in area22RCLCO 10981.02

CAMP SPRINGS TOWN CENTERNON-COMMERCIAL ACTIVITY CENTERFuture Market Positioning• Unique arts and production destination•Non-commercial activity center• Locus for arts-oriented uses• Locus for production-oriented usesClockwise from top left:•Howard Ave, Kensington, MD•Sportsplex, Greensboro NC•Young at Art, Ft. Lauderdale, FL•Amicus Green Building, Kensington, MD•Howard Ave, Kensington, MD•Howard Ave, Kensington, MDMarket Opportunities• Low lease rates• Lower land values• Limited other market opportunities• Centrally-located for residents, but notappealing for commercial users• Can re-use existing buildingsDevelopment Challenges• Establish site control and/or master leasing• Updated zoning (perhaps incorporate ULIand ROD)• Much can be accomplished via robustlandscaping and right-of-way improvements• Recruiting businesses and entrepreneurs23RCLCO 10981.02

COVENTRY VILLAGEENHANCED RESIDENTIAL AND PDR OFFERINGSZoning Properties AcresMiscellaneous Commercial 127 121.3Commercial Shopping Center 1 9.1Single Family Housing 2 1.9Total 130 132.3Assessed Value$159 MKey Findings• Numerous PDR users who value thisspace/location•Major access and transportation issues• Proximity to Andrews AFB – an asset?• Zoning does not match actual uses24RCLCO 10981.02

COVENTRY VILLAGEENHANCED RESIDENTIAL AND PDR OFFERINGSFuture Market Positioning• Residential village – medium to higherdensity• Employment area – “receiving zone” forPDR usersMarket Opportunities• Existing PDR demand• Close to Downtown Clinton and AFB• Existing residential fabricDevelopment Challenges• Changing zoning to increase residential• Solving parking/access issues• Tenant swap•Development Costs25RCLCO 10981.02

RESIDENTIAL CONVERSION OPPORTUNITIESLONG-TERM MARKET-SUPPORTABLE SOLUTION1. Beech Road• Medium-density residential• Community-oriented• Metro-proximate2. Allentown Road/Suitland Road• Higher-density residential• Transition out existing users• Work with AFB for demand-side capture26RCLCO 10981.02

Tools for Revitalization27RCLCO 10981.02

LEVERAGING OF PUBLIC RESOURCES ANDDEVELOPMENT INCENTIVES• Payment in Lieu of Taxes (PILOT)• Tax Increment Financing (TIF)• Enterprise Zones• Commercial Revitalization Overlay Zone• Mixed-Use Zone• Business Incentives• State of Maryland Sustainable Communities Rehabilitation Tax Credit forcommercial buildings• Ensure limited federal resources are fully utilized ($2M in Block Grantfunding went back to HUD in 2010)Identify key projects andpartnersEducate political leadersand agencies about worthyprojects28RCLCO 10981.02

ZONING IS THE ULTIMATE POWER TOOLNeeds Updating and Sharper Teeth• Re-zoning Key Properties and Key Areas• Existing uses in commercial zones can have more appropriate zoningcodes to reflect market realities• Density Bonuses• In exchange for investing in the study area, property owners and/ordevelopers should be able to reap strong financial benefits• Mixed-Use Zoning, even – and perhaps especially - in industrial areas• Zoning should allow for multiple and mixed uses, and industrial zoningneed re-writing in order to be economically and physically-positive• Greater flexibility around Metro stations• Metro stations are assets but development approval should be marketresponsive• “Activity Centers” and “Districts” approach to planning• Planning should choose places to concentrate activity/energy29RCLCO 10981.02

STEWARDSHIP AND GOVERNNANCE CRUCIAL TOKEEPING PLANS “OFF THE SHELF”Stewardship, organization, and engagement are critical because they:• Keep policy makers accountable• Provide direction to development community• Identify key opportunities• Support good ideas and partnersVarious ways to organize include:• Community Improvement Districts (CIDs)• Business Improvement Districts (BIDs)• Community Development Corporations (CDCs)• Community Land Trusts (CLTs)Cultivate leadership among:• Policy Makers – County Executive, County Councilmember• Organizations – Civic, Regional, Business• Agency Involvement – Department of Housing & CommunityDevelopment (DHCD), Redevelopment Authority, EconomicDevelopment Corporation (EDC) – all control funding and regulation tocatalyze change30RCLCO 10981.02

PUBLIC PRIVATE PARTNERSHIPSCreate the opportunity to leverage public resources for catalyticdevelopment projects and engage the private sector• Redevelopment of public land• Engage the private sector• Opportunity for joint development projects• Community Development Corporations often partner to develop neededreal estate projects• Attraction of Public Institutions and major employers, including JointBase Andrews and Southern Maryland Hospital31RCLCO 10981.02

CODE ENFORCEMENT IS A POWERFUL TOOL INACHIEVING DESIRED OUTCOMES• Enforcement of codes is a crucial step in:• Using the zoning code to achieve the desired vision forthe corridor• Upgrading the corridor’s design aesthetics• Achieving a desired mix of uses and tenant types inpriority locations• Maintaining clean, safe and inviting environments32RCLCO 10981.02

USE THE DESIGN PROCESSThis Planning Process is a Powerful Tool• Asset Mapping• Participants can and should map key assets and alsochoose key places for change/investment• Prioritization of Investments• Not all plan elements can or should be treated equally –use process to build consensus on priorities• Consensus of What to Do and What NOT to Do• Cohesive support for vision = results• Make the plan market-sensitive• Make sure that plan documents reflect market realities33RCLCO 10981.02

Implementing the Vision34RCLCO 10981.02

IMPLEMENTATION TOOLSBRANCH AVENUE STATIONRealizing the mixed-use vision ofBranch Avenue Metro can and shouldkick-start higher-value developmentthroughout the Central Branch Avenuecorridor.Recommended Tools• Business Improvement District•Expand MXT Zoning• Joint Development (with WMATA)• Public private partnership, especiallyfor Phase II property owners• Commercial TIFFrom WMATA Branch Avenue Study, 2010• Enterprise Zone35RCLCO 10981.02

IMPLEMENTATION TOOLSANDREWS HEALTH SCIENCES CENTERSouthern Hospital is an underutilizedasset and market driver. Takingadvantage of this asset can transformthe lower portion of Central BranchAvenue.Recommended Tools• Partnership (with Hospital)• Expand CO Zoning within DDO• Master plan for Health Sciencesarea, similar to “Health City” inMontgomery County• Outreach to current medicalcommunity in corridor to explorerelocation to this site36RCLCO 10981.02

IMPLEMENTATION TOOLSDOWNTOWN CLINTONExisting regional shopping center canbe anchor for future higher-intensitydevelopment. Similar to recentprojects in Laurel, MD and Greenbelt,MD.New Hampshire Avenue MarketingMedical Office PrototypeRecommended Tools• Rezoning• Main Street programCamden College ParkBarracks Row Main Street• Commercial TIF• Business Improvement District• Partnerships• Pre-tenanting for future office37RCLCO 10981.02

IMPLEMENTATION TOOLSCAMP SPRINGS TOWN CENTERCommunity-based programs and nonprofitscan be powerful tools inreshaping and reusing under-investedpropertiesBaton Rouge Auto SpaRecommended Tools• Community-based finance, includingspecial assessment districts• Master leasing or site ownership• Business plan competition andselective tenanting• Enterprise ZoneCrestwood Court - Inside• 100% tax credit for repositioning38RCLCO 10981.02

IMPLEMENTATION TOOLSCOVENTRY VILLAGE, CONVERSION AREASConverting swaths of commercial property toresidential property will be difficult but notimpossible. If the community can successfullywork with Andrews AFB to resolve housingdemand barriers, as well as secure newlocations for existing businesses, then thefinances suggest that the conversion isfavorable.Recommended Tools• Partnership with Andrews AFB andABCA• Zoning and code enforcement• Small business assistance• Sunsetting of existing land use andzoning39RCLCO 10981.02

FIVE DISTINCT ACTIVITY CENTERSRATIONALIZED USE PATTERNS AND STRONGER PLACES1. Branch Avenue Station• Transit-oriented village• Drives identity for entire area• Mix of residences, shopping, jobs2. Camp Springs Town Center• Non-commercial activity center• Destination for arts, recreation uses• True “center of community”3. Coventry Village• Employment center for service industries• Residential village serving AFB and community4. Downtown Clinton• Regional retail destination• Consumer medical and health services center• Village dining and local-serving offices5. Andrews Health Sciences Center• Veterans Health Hub• Enhanced office opportunities• Complete Care Community40RCLCO 10981.02

QUESTIONS AND COMMENTS41RCLCO 10981.02

Strategies for Implementation:Morningside-Andrews-Camp Springsand Clinton Sector Plan AreasMNCPPC | February 1, 2011