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Home My WebLink AboutTRAILHEAD ANNEXATION & ZONING - 43-02 - CORRESPONDENCE - CITY COUNCILMountain Vista Subarea s � ar:��vor3. F'ia:a Ga.FwM N Proposed Amendments A October 1, 2003 Mlles 0 0.5 1a�b��3 a+e-S'k o� d 4---` C4 �.�• b i)ATE: TO: THRU: April 221200. ' Mayor Ray Martinez and City Council John Fischbach, City Manager FROM: Pete Wray, Senior Planner Greg Byme, Director of CPES Joe Frank, Advance Planning Director Staff Response to Council request during the April 20, 2004 City Council Hearing This Memo is a staff response to a request raised by a Col,i it member during &e^Apii120, 2004tity Council Hearing to obtain a copy of a memorandum and supporting information on employment Lands Inventory relating to the Mountain Vista Subarea Plan Amendments and Harmony Corridor Pla 1 Amendment Items. Attached is the following requested information: 1. Memorandum dated September 24, 2003, Council Study Session Summary. 5 c w a-�4- 2. Existing Framework Plan Map. 3. Proposed Framework Plan Map. 4. Memorandum dated June 12, 2003, Read before attachment. ' Q �` b P 5. Excerpt from the Lifestyle Center Economic Impact Analysis (Section IV. Employment Lands), Final Report, dated June 6, 2003. 6. Copy of Power Point Presentation Slides from the July 15, 2003 City Council Hearinf cam' l Nat'Ph Colle�e`.��'enuf I'(1 Rm. �Nli . Forl Collins, Cll rile='__I)ti ill . 970-221-6376 Fax 970-'_24-t)H I TDO Y70- -14-oou3 email: aplannin r r (c�4o%.com Mountain Vista Subarea Framework P1ar C .i,-.. CWNTY 0.0A STt t. F `'� - Anheuser-Busch Properties 1 �= LJ, O C� 1A CWNTI IMUs IED CSU Foothills Campus, �. .t .`. WVI E DR _.� z n 0 APt)RTE AVE (•N t -11 i CBER Y5T 4 - •SE' EMUI YST -. � 1 p PROSPECT P E WOSP RO ` ; s n42Ct D r . •. - W ERD D E ME �.R- -� DO LSI Property Legend W ISE700PIR y1 D < E TCOTN RD m - m 6 GGMA City Limits w A NY RD E 1A yRD J: ECDUNTY ROM eX r n Water I U Large Employment by Acreage - NE qTER Ao 10-20 h gg 20-40 n g 140_80 vTkII fYFG I^E TWLRT a 80-100 I'Z Employment Caveats • Anheuser-Busch Lands 49% (448 of 921 acres) of E land (178 of 848 acres) of I land .MW Constraints 37% (1,100 of 3,300 acres) are. by floodplains, natural features... • APF Requirements Some lands affected by 1-25/PrIpi 4 �3 77 �r Significant Employers &_ 8�. 4; Size of Development(20.'6M • Anheuser-Busch = 121 ac ti. HP = 94 ac, 2,400 jobs r C` • � jobs A ilent = 70 ac 1 000 g - Woodward Governor 38,-ald"' • Celestica = 30 ac, 700 job.. r • LSI = 12 ac 200 jobs y No Text J V 14her Possible Future �a i ployment 4 i No Text Estimated Employment.4-, on Vacant Lands HarmonyEmployment • • • • r • • JJIJ Industrial :• • 11J,1U All Commercial All Other DistrictsML �. f' :� i) a� n y� 1 y Si i„y„'� fY /� rt Employment Land InY,,P4, • There is an adequate supply of primary empl` available in the City for economic developm.1- • Harmony Corridor (HC) has approx. 415 acres vacant land (555-140) • Corridor could accommodate up to 35 com an equivalent in size to LSI, on other properties • City-wide there are approx. 2,500 acres of vaco employment land f • City-wide there are 52 vacant sites greater than 1.a size iZ 1�hYnI4 Lifestyle Center Economic Impact Analysis Final Report fame 6, 2003 The CiLy must also continue to maintain adequate sites for primary employers for economic development purposes. The number of large parcels available in the Harmon' Coirldor can accommodate'35 companies equivalent to tree size Of L l LObTlc, in the short term. Longer teini, the Clid matt need t0 consider ad. ding sites OT rezoning existing residential land. 26 Lifestyle Center Economic Impact Analysis Final Report June 6, 2003 1i'the-1-ovosed lifestyle center is not bill] -in Fort Collins, it urill likely be built in Loveland resnitino in a net loss of SM to S2.0 ini?lion in total sales tax revenues to the C'lty. ]here are fouT competitive llfestvle centers proposed in the Northern Colorado Cra(le area. Of these proposals, the Loveland project appears to have the greatest momentum and is in direct competition with the proposed Harmony Road site. If the Fort Collins project is not built, it is likely that the Loveland project will be. A similar center built in Loveland is eshrnated to result in a net loss of 535.1 million to 567.3 million in annual retail sales in the City. Based on these figures, total sales tax revenues would drop by S1.1 to S2.0 million and general fund sales tax revenues would drop by 5797,000 to $1.5 million annually,. • There is an adequate supply of primary employment lands available in the City for economic development purposes. Recent estimates of employment lands approximate that 555 acres of land are currently vacant and appropriate for primary employment along the Harmony Corridor.3 Even if 140 acres are taken out of the inventory, this would leave 415 acres of land available. This could accommodate 35 companies equivalent in size to LSI Logic. The City should continue to monitor this land supply to determine if additional primary employment land is necessary. Additionally, Fort Collins is part of a larger region which remains very attractive for primary employment in the future, once the economy turns around. Fort Collins also stands to benefit if a primary employer chooses to locate within the region, but outside of City boundaries. POLICY CONSIDERATIONS The Fort Collins retail competitive marketplace is changing. Over the last 15 years, the City's retail store base has grown considerably commensurate with the City's growth in population and income. However, the City's dominance as a regional trade center has declined as smaller cities in the region have grown and developed their own local store base. With commercial competition now coming from as close away as Loveland, the City cannot ignore the impacts of these projects and needs to consider proactive actions to protect and expand the retail base on which it depends for vital city revenues. It this particular case, it appears that not accommodating this proposed project will result a negative impact on the City as a competitive project in Loveland would likely gain momentum. It is in the City's best interest to protect its fiscal resources and adjust its land use mix to accommodate employment uses elsewhere in the City or the region. 3 The 555 awes are currently divided into 14 parcels. 25 Lifestyle Center Eco,.„mic Impact Analysis Final Report June 6, 2003 V. CONCLUSIONS AND RECOM-TVIENDATIONS This section of }he report sui=Lrna2'..es the major economlIc 7T,' pacts of th-2 proposed project. The major e,cononllC and land use policy '.sues affected by !.he project are also identified. CONCLUSIONS A decision to amend the Harmony Corridor plan to allow 60 to 90 acres of primary employment land adjacent to LSI Logic on Harmony Road to be used for a lifestyle retail center has a range of potential impacts as summarized below: The proposed project is estimated to generate $1.3 to $2.4 million in additional sales taxes per year for the City. If a 250,000 to 500,000 square foot lifestyle center were developed, it would generate $100 million to $190 million a year in retail sales. However, only a portion of total sales would be net new sales to the City with the remainder the result of transfers from existing retail stores. A total of $42.5 to $80.8 million is estimated to represent net new sales to the City. The City would collect an estimated $1.3 to $2.4 million in total net new sales tax revenues per year (3.0 percent tax rate) with $956,000 to $1.8 million of these revenues going to the general fund (2.25 percent). ■ The proposed project would be a unique retail draw increasing the City's capture of sales from the larger regional trade area. Approximately 35 percent of total center sales are expected to come from outside of Fort Collins, primarily from residents of Larimer County (including Loveland), Weld County (including Greeley), and Laramie County, Wyoming (including Cheyenne). The majority of these sales will be net new sales to the City. This is due to the fact that most of the upscale apparel and home furnishings stores, and most of the restaurants and entertainment tenants will be new to the region. • The proposed project will bring new competition to the market and will result in some loss of sales to existing retail stores, including Foothills Mall. An estimated 63 percent of the proposed center's retail sales will be not be net new sales, but rather sales transfers from existing retail competition, most notably Foothills Mall. However, Foothills Mall is an older retail center and vulnerable to retail competition, not only from a new lifestyle center, but any new regional retail space built in the City. Because of its relatively close proximity and potential mix of tenants, the potential sales loss to Foothills as a result of the lifestyle center location is estimated at $8.5 million to $25.0 million, or approximately 6 percent to 18 percent of existing sales levels, depending on center size and store composition. 24 Lifestule Center Economic Impact Analysis Final Report june 6, 2003 Table 16 Occupations of Larimer County Residents, 1999 Lifestvle Center Economic Impact Analysis lei-J, of Miedian Occupaticns persons Houriv Manaaement, Professional and Related Management 5,920 S27:73 Business & Financial Operations 3,400 $17.65 Computer & Mathematical 3,420 $28.05 Architecture & Engineering 4,290 $24.26 Physical and Social Sciences 1.050 $21.36 Community & Social Services 900 $13.90 Legal 1,270 . $15.10 Education, Training & Library 4,540 $14.41 Arts, Design, Entertainment Sports & Media 1,570 $11.89 Healthcare Technical 4,510 $18.86 Subtotal 30,870 % of Total 27.5% Service Healthcare Support 2,680 $8.90 Protective Service 1,620 $19.31 Food Prep & Serving 15,800 $6.66 Building & Grounds Cleaning & Maintenance 4,290 $8.10 Personal Care & Service 2,050 $8.04 Subtotal 26,440 % of Total 23.6% Sales and Office Sales & Related 12,430 $8.44 Office & Administrative Support 15,970 $10.15 Subtotal 28,400 % of Total 25.3% Other Subtotal 26,530 $16.26 % of Total 23.6% TOTAL 112,240 Source: Larimer County Workforce Center, Economic & Planning Systems Despite the reduced number of jobs and lower wages, the possibility of a lifestyle center development is more immediate and real. The City retains plenty of large employment land potential, even with the removal of the entire 140 acre Harmony Road site. As a point of comparison, LSI Logic occupies 12 acres and employs 325 persons. Even with the removal of 140 acres of land from the Harmony Corridor large parcel inventory, there would be enough available vacant land for the equivalent of 35 companies equal to the size of LSI Logic with the potential to locate on Harmony Corridor.2 2 555 acres in Harmony Corridor minus 140 acres of total development potential divided by 12 acres (size of LSI Logic) 23 Lifestyle Center Eco„omit Impact Analysis Final Report June 6, 2003 Table 15 Jobs Comparison Lifestyle Center'Economic impact „nalysis Land Area High It Jobs Retail Jobs 60 acres 2,613,600 sf of land area 2,613,600 sf of land area 522,720 FAR, of .2 500,000 FAR of .19 1,742 300 sf per employee 1,250 400 sf per employee 1,742 Employees 1,250 Employees 90 acres 3.920,400 sf of land area 3,920,400 sf of land area 784,080 FAR of .2 685,000 FAR of .175 2,614 300 sf per employee 1,713 400 sf per employee 2,614 Employees 1,713 Employees Source: City of Fort Collins, EPS According to City estimates, the Harmony Corridor area has capacity for approximately 8,627 additional jobs. Approximately 20 percent or 1,742 jobs are located on the 60 acres initially proposed for the lifestyle center. These jobs would be replaced by retail jobs. The first phase of approximately 60 acres would result in approximately 1,250 retail jobs. There would be a net job loss of 492 jobs. At a larger lifestyle center at 90 acres, 2,614 high tech jobs would potentially be replaced by 1,713 retail jobs. The development potential at the Harmony Road site is 140 acres. At full development, it is likely that at least 30 to 50 of those acres would be retained for employment purposes. The retail jobs that would replace the high tech jobs, on average pay much less. Table 16 shows average hourly wages for residents in Larimer County by occupations. High tech jobs currently found at Hewlett Packard and LSI, would fall into the management, professional and related categories with some office and administrative support, while jobs at the lifestyle center, for the most part would fall into the sales and related categories. 22 Lifestyle Center Economic Impact Analysis Final Report June 6, 2003 Andieuser-Busch Iar'id= cornprise 4i percent (447 of 962 acres. of ernplovmenl: land and =0 p27certi 0118 Of 89= aC72s) OI industrial laird. lip i?rLheUse7 Busch lands 87P, taken Gllt Of ;he in bell tor , toils still leav—s 50'1 acres of empim went land and 714 acres of in ulstrial iallci. Tabl, 1? sh:nws the acreage available vvith sites over lU acres in size within each of he listed zones. Table 14 Large Employment Sites Land Potential Lifestyle Center Economic Impact Analysis Zone #Sites Total of All 10+ Acre Sites Potential Jobs 10+Acre Sites Total Vacant As % of Total Lands Vacant Commercial 9 214 1,502 377 56.8% Community Commercial 4 115 1,206 115 100.2% Community Commercial North College 2 58 95 85 67.9% Community Commercial River 1 20 69 37 55.0% Commercial North College 1 10 10 70 14.6% Employment 16 786 10,856 952 82.6% Harmony Corridor 14 555 7,079 659 84.2% Industrial 22 739 4,718 892 82.8% Neighborhood Commercial 5 77 657 129 59.7% Total' 74 2,574 26:192 3,316 77.6% Source: City of Fort Collins ' Does not include downtown In the Employment, Harmony Corridor, and Industrial districts, over 80 percent of the available lands are on sites over 10 acres in size. In the Harmony Corridor alone, there are 555 acres available in parcels over 10 acres in size. Using the same factors as used in the City Plan update process, approximate job impacts of removing 60 and 90 acres of land from the employment lands inventory are shown in Table 15. These jobs, assumed to be high tech jobs, similar to jobs currently found at LSI Logic and Hewlett Packard, will be replaced by retail jobs typically found in lifestyle centers. 21 Lifestyle Center Economic Impact Analysis Final Report June b, 2003 Y. EA/1 LOYNENT LANDS h.e Harmony Road ;,iL: is approximately 140 :acres o, vihich 0`0 t0 90 aCres are currently being considered for a lifestvle center. Some land remains for posslbie expansion or future development opportunities. Of this remaining land, approximately 28 acres are being considered for possible residential or another transitional use to the neighboring residential community,. There are concerns about lands designated for primary employment being redesignated for commercial use. To provide an overall context, Table 13 shoes the vacant land inventory in the City based on remaining land capacity as well as assumptions about the number of potential jobs based on current employment characteristics in the City. Table 13 Vacant Lands Inventory Lifestyle Center Economic Impact Analysis Potential Zone Acres Jobs % of Total Commercial 377 2,445 7.1% Community Commercial 115 1,206 3.5% Community Commercial North College 85 1.62 0.5% Community Commercial River 37 149 0.4% Commercial North College 70 304 0.9% Downtown 6 592 1.7% Employment 952 12,748 37.1% Harmony Corridor 659 8,627 25.1% Industrial 892 5,536 16.1% Neighborhood Commercial 129 1,092 3.2% All others N/A 1,537 4.5% Total 3,322 34,398 100% Source: City of Fort Collins Job types can be divided into primary and non -primary jobs. While most of the jobs in the commercial areas are retail and service jobs, cities are typically concerned with attracting and retaining "primary" jobs, because they provide net wealth to the community, and often result in other positive economic spinoffs, such as new business creation. Many of the high tech jobs typically found at LSI Logic and Hewlett Packard are "primary" jobs as are many of the jobs in the medical community and at CSU. Of the zones listed, the Employment District, Harmony Corridor, and Industrial District provide the most capacity for primary jobs, while the remaining districts are primarily oriented to non -primary retail and service jobs. 20 the total center sales are expected to come from outside Fort Collins representing net new sales (See pages 14 to 20 for more details). If the proposed lifestyle center is not built in Fort Collins, it will likely be built in Loveland r—sulting in a net loss of St. I to 2.0 million in total sales tax revenues to the Cite. General fund sales tax revenues would drop by S797.000 to S1.5 million annually i See pages 18 to 20 for more details). The proposed lifestyle center would bring new competition to the market and will result in some loss of sales to existing retail stores, including Foothills Mall. However, any new retail space built in the City will impact the Foothills Mall. The most measurable short-term impact to the mall may be on similar "upscale apparel" retail that may also locate with the lifestyle center (See pages 12 to 16). ■ Downtown retail is not expected to be significantly impacted by the proposed lifestyle center for two reasons. It is farther away from the proposed lifestyle center and downtown is primarily comprised of locally owned independent businesses rather than national credit retailers. The regional draw of the proposed lifestyle center may have a positive influence on the downtown attracting shoppers from a wide .geographical area (See page 16). ■ There is an adequate supply of primary employment lands available in the City for economic development purposes. Harmony Corridor contains approximately 555 acres of primary employment lands. Even if 140 acres were taken out of the inventory, this would leave 415 acres of land available. As a result, Harmony Corridor could accommodate 35 companies the size of LSI or larger in the future. Citywide, there are 74 parcels 10 acres or larger of non-residential uses (See pages 21 to 24). City Council Memo Page 2 ,..ti1 L7: 1'u 11 CU:i?i:.Ci I?.` z'HILL .i?vii'ontriieRtal S ices AdvancE'. MEM ORA1YD U YV DATE: June 12, 2003 TO: THRU: FROM: RE: Mayor Ray Martinez and City Council John Fischbach, City Manager Pete Wray, City Planners Greg Byrne, Director of OPES Joe Frank, Advance Planning Directof Harmony Corridor Plan Amend'rrrefif— Read Before Attachment for the June 10, 2003 Study Session Item The enclosed Lifestyle Center Economic Impact Analysis Report is being forwarded to Council via separate cover as a result of staff finalizing revisions with our consultants, based on new analysis information, during distribution of the June 10 Study Session packet. The Report developed by Economic & Planning Systems, Inc. is listed as attachment No. 4 in the Study Session Item Summary. The economic impact analysis is based upon a new Lifestyle Center located on the northeast corner of Harmony Road and Ziegler Road as proposed in the Amendment to the Harmony Corridor Plan. The proposed lifestyle center is estimated to utilize approximately 60 — 90 acres, and include between 250,000 — 500,000 square feet of retail space. Future expansion could increase these amounts. The following summary highlights the key findings of the economic impacts of the proposed lifestyle center on Harmony Road: ■ The proposed lifestyle center is estimated to generate $1.3 to $2.4 million in total new net sales tax revenues per year for the City. Of these new revenues, $956,000 to $1.8 million (2.25 percent) would go to the general fund (See pages 9 to 13 for more details). ■ The proposed lifestyle center would be a unique retail draw, increasing the City's capture of sales from the larger regional marketplace. Approximately 35 percent of '_81 North College .Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6376 FAX (970) 224-6111 • TDD (970) 224-60021 • E-mail: aplanning(Fi;ci.fort-collins.co.us