<strong>Downtown</strong> <strong>Waterfront</strong> Brownfield ProjectF. TransportationAs described in the <strong>City</strong> <strong>of</strong> <strong>Alma</strong> Master <strong>Plan</strong>, US-127 is the main mid-state, north-south route and abuts <strong>Alma</strong>on the north and east. Two interchanges provide <strong>City</strong> access to this highway. The US-127 Business Route is theconnector and begins a mile from the east <strong>City</strong> limits, turns into Superior Street in downtown <strong>Alma</strong>, and thenheads north on the west side <strong>of</strong> the <strong>City</strong> (Wright Avenue).As illustrated below, Superior Street and Center Street are the principal arterial routes within the <strong>City</strong> and arelocated just north <strong>of</strong> the waterfront brownfield site. Both streets are one-way; Superior heads west and Centerheads east. The two primary north-south connectors within the study area are State and Woodworth Streets; bothaccomodate two-way traffic. Additional secondary connections are located near the brownfield site includingMechanic, Prospect, Park, Lincoln and Grant. Six signalized intersections are within the study area. There arealso multiple railroad crossings within the study area. The CSX and Mid-Michigan railroads intersect just north<strong>of</strong> the brownfield site at State Street.Vehicular CirculationTraffic SignalRR CrossingRailroadPrincipal ArterialPrimary N/S connectorSecondary connector18
<strong>Downtown</strong> <strong>Waterfront</strong> Brownfield ProjectG. Real Estatate Economics<strong>Alma</strong> is located in a relatively-isolated, agrarian area <strong>of</strong> the state which, like the rest <strong>of</strong> Middle America,continues to experience economic pressure from a continuing loss <strong>of</strong> manufacturing jobs. While the averagehousehold income in the greater <strong>Alma</strong> area trails the state average by 21% and is projected to decline another1.5% by the year 2008, housing costs are almost 25% less than the state average. In addition, <strong>Alma</strong> College is atremendous asset which gives the community an economic advantage and contributes to a sense <strong>of</strong> communityand place. A relatively stable population forecast and a steady job creation market bodes well for futureredevelopment.Housing MarketA survey <strong>of</strong> residences available for sale in the <strong>Alma</strong> market reveals that the average asking price is $101,000which correlates to the average housing value in the US Census and other private market data. Currently, 4,687households are owned with a unit value <strong>of</strong> $100,000. Only 1,167 <strong>of</strong> these households are located within threemiles <strong>of</strong> downtown <strong>Alma</strong>. Using typical standards <strong>of</strong> affordability housing, product <strong>of</strong>fered in the $125,000 to$190,000 range could meet acceptable percentages <strong>of</strong> capture for this market. However, the ability <strong>of</strong>homeowners to sell their existing homes in order to move to the redevelopment project could affect the success<strong>of</strong> residential redevelopment. New homes would be competing against the existing home inventory in bothsupply and price. The existing rental market in <strong>Alma</strong> does not indicate significant support for monthly rentsabove $500, so market rate rental would be a lower quality housing product than the for sale market.Commercial MarketThe commercial market is divided between <strong>of</strong>fice and retail. Demographic data does not indicate marketsupport for additional <strong>of</strong>fice floor area. The existing overall <strong>of</strong>fice market in <strong>Alma</strong> is modest, and other thanmedical <strong>of</strong>fices used in conjunction with the hospital, there is no reason to expect demand for additional <strong>of</strong>ficefloor area.Existing retail capacity in the greater <strong>Alma</strong> area exceeds the retail potential/demand <strong>of</strong> households within thesame market area. In comparison to many parts <strong>of</strong> the nation, however, the excess capacity is relativelymodest, $20 million or less than 7%, but still indicates that the market is well-served and competitive. Retailtrade data shows that in the 12-mile market area, retail potential/demand exceeds existing supply in severalareas:Assuming that the proposed redevelopment project becomes a market-wide destination, the $13.7 million in• Food and Drink $10 Million• Home Furnishings $0.9 Million• Specialty Food $0.2 Million• Clothing and Accessories $1.7 Million• Books, Periodicals and Music $0.4 Million• Office Supplies/Gifts $0.5 Millionexcess retail demand would be more than enough market support for 40,000 square feet <strong>of</strong> retail. Assumingplanned retail performed at a rate <strong>of</strong> $200 per square feet, new retail would account for 56% <strong>of</strong> the excesspotential/demand in the greater <strong>Alma</strong> area.19