Reviving a Dying Mall and Transforming a Neighborhood (Jay Hailey) - ULI fall meeting - 102811

Reviving a Dying Mall and Transforming a Neighborhood

Moderator• Jay Hailey

Speakers• Scott Polikov

• Bill Mullane

• Matt Whelan

• Jim Yoder

www.dlapiper.com

www.gatewayplanning.com

www.austincc.edu

mwhelan@redleaf-properties.com

www.steadfastcompanies.com

Airport Boulevard Redevelopment Initiative

• Establish a Vital Vision for redevelopment• Set the Stage for Reinvestment in Public Infrastructure and

Economic Development• Create More Transportation Options• Develop a Redevelopment Model for Other Corridors in the

City

Goals of the Initiative

AIRPORT BOULEVARD CORRIDOR

Airport Boulevard Corridor

Why Focus on Airport Boulevard?

• Leverage current and planned investments along the corridor:• Red Line rail service• New developments at Crestview Station

and Mueller at each end• Revitalizing neighborhoods• Popular local businesses• Travis County Facilities• Highland Mall/ACC

Tools to Transform Airport Boulevard

Use Based Development

Form-Based Development

A Different Approach to Regulating Development

• Conventional Zoning• Focus on use

• Form-Based Code• Focus on form and design

Operations

Form

Form

Operations

Use

Use

Operations

Form

Why Should Developers Want Form-Based Codes?

• Administrative review – streamlined process

• Not one size fits all• Mix of uses by right• Standards for the public

realm• Uses graphics over words

Airport Boulevard Today

• Unique independent businesses

• Lack of neighborhood connectivity

• Existing industrial uses along the corridor

• Overhead utilities, signs, other visual clutter

Issues and Opportunities

Emerging Market Issues and Opportunities

• Strong demand in Austin for infill housing and urban living but challenging without significant vacant land

• Long-term redevelopment of Highland Mall could add significant new residential units and jobs to the corridor

• Given land costs and infrastructure needs, housing costs might be higher than existing conditions can support

Community Vision Workshop

Key Pad Polling: Housing Choice

Airport Blvd. Design Charrette

• Transitions• Highland Mall influence• Infrastructure and Water Quality• Rail and the Street as a Place

Emphasized Opportunities

Character Zones for Form-Based Code

Based on assessment phase and market analysis

Airport Boulevard Master Plan

Highland Mall Area

Airport Blvd. and Highland Mall - Before

Airport Blvd. and Highland Mall - After

Highland Mall - Before

Existing view to mall from Airport Boulevard

Highland Mall - After

Potential view along entry drive and plaza.

Reinvented Mall’s Future Context

Neighborhood Transitions from Airport Blvd.

Neighborhood Transitions from Airport Blvd.

Linked Markets for “Mall” as a Mixed Use Neighborhood

Additional Stops on the Rail Line?

Proposed Fiskville Station Area

Leveraged Infill – Station to Station

Proposed Fiskville Station Area

Headlines Chronicle Mall’s Decline

Shopping for an answerExperts debate the future of Highland Legal twists spin into

bankruptcyBefore recent filing, Highland Mall had been reeling from series of court maneuvers over its troubles

Sale speculation follows mallHighland co-owner’s debt nearing $27B

Ghost Mall? RetailBagpipes Sound a Dirgefor Highland Mall

Highland Mall files for bankruptcy

Dillard’s will leavemall by May’s end

Highland Mallshops worriedSo many questions, somuch in limbo

Highland Mall Macy’s closes for good

New Life for the Mall

ACC ready to transform mall ACC to buystill moreHighlandMall space$14.6 million deal givesschool 79% of retail site;plans for use developing

With Macy’ssite deal, ACCto expand atHighland MallCollege also bought Dillard’slocation in May for growth

ACC buys building, parking areaat Highland Mall from Dillard’s

Plans show students couldlive, learn, shop at mall site

ACC’s plans for classrooms, offices, expansion may alter area

ACC to buy last mall land

ACC buys Highland Mall a future

Editorial & Political Support

EDITORIAL ■ DEVELOPMENT

ACC’s plans a boon to mall, area

ACC to the Rescue

About ACC

• 45,100 credit students• 4,500 faculty/staff• 235+ degrees & certificates• $52 in-district tuition• 44% transfer + graduation rate• Mission to provide open-door access to affordable, quality

higher education

Primary Gateway to Higher Education & Training

ACC’s Unique Mission

Core Curriculum

General education

Primary source of university transfer students

Career Training

Direct entry into the workforce

Quick careers

Certificate and associate degree programs

Foundation Skills Programs

GED, Adult Education, ESOL

Developmental Education (47% require this)

Continuing Education

Professional Development

Customized Training

Lifelong Learning

Service Area

Locations

8 full-service campuses, with locations in:• South Austin (South Austin Campus)• Southeast Austin (Riverside)• Southwest Austin (Pinnacle)• Central East Austin (Eastview)• Downtown Austin (Rio Grande)• North Austin (Northridge)• Round Rock (Round Rock Campus)• Cedar Park (Cypress Creek)Elgin & Hays open in coming years

Planning

2007: Facilities Master Plan• Build new campuses in Round Rock, Manor, Hays County, Leander• Master plans for existing campuses to accommodate growth2011: Campus Master Plans• Projected enrollment demand at each campus• Assessed condition of existing campuses• Planned for expansion and renovation of seven campuses2011: Facilities Master Plan• Included renovations, expansions and new construction• Included swing space to allow work at existing campuses• Included consolidation of Administrative functions

Highland Mall Plans

• Additional instructional space• Consolidation of administration• Continuing Education center• Convocation center• Space for nonprofit affiliates• Conference center• Wellness and professional development center

Why Highland Mall?

Location• Centrally located• Transit service: MetroRail and local bus service• Roadway access• Existing utility infrastructureCost• Little competition to acquire existing retail space• Less expensive to retrofit existing buildings than to build new• Less time to retrofit existing buildings than to build newLong-range potential for redevelopment• Excellent zoning• As existing agreements and leases expire, RedLeaf can redevelop the site

What next?

Swing Space• In former J. C. Penney• Select design team in early 2012• Move in date: Fall, 2014Administrative offices• In former Dillards• Select design team in early 2012• Move in date: 2014Planning• Site planning with RedLeaf• Participating in Airport Boulevard planning process

Overview of Highland Mall

• Approx. 80 acres

• 1.2 million SF ofexisting buildings

• Zoned CS-MU-NP

• 2.0 FAR allowed

• 90% Impervious Cover

Complex Ownership Structure

18 Months Ago:• Owned by a Simon/GGP

Partnership• AIG owned land• LNR – special servicer for CMBS• Dillards • Macys• Greyhawke (Penney’s)• 2 lawsuitsProperty Level:• Operating agreements• Cross access and parking

easements• Utility lines under the buildings!• 40 year old development – no

code compliance

Redevelopment Potential

• Superior infill location

• Public sector user/demand driver

• In place road & transit infrastructure

• Risk mitigated financial structure

• Strong community and political support

• Public involvement & finance

Why is ACC a Good Anchor?

• Stable end-user

• Great mix of uses: office, students, continuing education

• Traffic generator to support retail

• Aligned with community values

• Able to invest in new facilities in down market

Components of Successful Projects

1. Quality Real Estate (location) √

2. Community and Political Support √

3. Transit Options √

4. Strong Anchor Use √

5. Sensible Financial Structure √

6. Public / Private Partnerships √

7. Flexible Plans √

8. Aligned Incentives √

Regional Transformation in Process

Highland Mall: The Next Infill Development Opportunity

Crestview Station•73.4 Acres•1,000 Residential Units•150,000 SF Retail

Triangle•22 Acres•750 Residential Units•120,000 SF Retail

Mueller•700 Acres•5,524 Residential Units•790,000 SF Retail•4 million SF Institutional/ Educational/Commercial

Highland Mall Concept Plan

Potential Future for Highland Mall

POTENTIAL PROGRAM

Austin Community College

• 1.3 million SF office, classrooms and support uses

RedLeaf Development

• Approximately 40 acres• 2.0 million SF residential, office, retail, hotel

Overall Plan – 3 Step Process

STEP 1:Acquisition

STEP 2:Preparation

STEP 3:Implementation

• Acquire Tract 1 -- COMPLETE• Acquire Tract 2 – COMPLETE• Acquire Tract 3 – COMPLETE• Acquire Tract 4 -- COMPLETE

•Community Involvement/Engagement•Secure Entitlements•Master Planning•Infrastructure Plan•Establish community governance,architectural controls and common maintenance cost sharing•Infrastructure phasing plan

• Design and construction• Marketing and development

Austin Community College/RedLeaf

• ACC solely responsible for its facilities

• RedLeaf solely responsible for non-college development

• Sharing of portions of project that provide joint benefit• common roads/infrastructure• planning• mechanisms to ensure long-term vision• common maintenance

Next Steps

• Public process to establish a long-term vision

• Entitlements to support vision

• Financing plan

Retail’sTransforming

Role at Highland Mall

American lifestyle is being redefined and reshaped today and

into the next decade

Some shopping centers are adjusting to

consumer shifts and gaining

market share

While others struggle to survive and fade away

The traditional retail mall construct is

changing at Highland Mall…

…a new supporting role will be defined for retail as new uses, customers and trade area

profiles lead to sustainable retail merchandising

Highland’s retail elements

• Infill location

• Access

• Parking

• Trade area

• Customers

• Community alignment

Community Assets

• Corridor

• Transportation

• Infill market area

• Regional customers

• Regional access

• Economy

Retail’s new role needs to strategically align with the Airport Boulevard Master

Plan, the Highland Mall Area and the Highland Mall Master Plan

Students

Learning…

Living…

…andShopping

The student as customer…

…and part or

full time employee

Students that are

and become “the job growth story”…

…in the community and throughout the region

Reviving a Dying Mall and Transforming a Neighborhood

Moderator• Jay Hailey

Speakers• Scott Polikov

• Bill Mullane

• Matt Whelan

• Jim Yoder

www.dlapiper.com

www.gatewayplanning.com

www.austincc.edu

mwhelan@redleaf-properties.com

www.steadfastcompanies.com