Lexington Downtown Master Plan Public hearing

DMP120104

Lexington Downtown Master Plan Public Meeting

Wednesday, December 1, 2004

9:00 a.m.

Phoenix Building Third Floor Community Room

101 East Vine Street

Lexington, KY 40507

Attendees

Steering Committee Members: David Biagi, Jim Clark, Tracee deHahn, Lillian Gentry, Pat Gerhard, Steve Grossman, Phil Holoubek, Bill Johnston, Tim Kelly, Amy Lett, David Lord, Mike Meuser, Grant Phelps, Helen Powell, Becky Reinhold, Dan Rowland, Tom Sheeran, Mac Stone, and Bob Wiseman

Consultants: Tom Creasey, Dhiru Thadani, Laurie Volk, and Sarah Woodworth

Lexington Downtown Development Authority Staff: Harold Tate and Joan Terry

Other Attendees: Tom Blues, Heather Bauer, John Clements, Jim Duncan, Rob Franklin, Doug Greene, Becky Hancock, Dal Harper, Douglas Ingram, Henry Jackson, Renee Jackson, Steve Littrell, Steven Mazurka, Win Meeker, David Mohney, Andrew Moore, Wes Nakajima, Kenzie Nelson, John Stamper, Van Meter Pettit, Rona Roberts, Joan Whitman, and Wayne Wilson

Meeting Summary

I. Meeting brought to order (Chairman Tim Kelly)

A. Welcome to committee members and attendees

B. Introduction of Laurie Volk (consultant from Zimmerman/Volk Associates) and Sarah Woodworth (consultant from ZHA)

II. Review of November 3, 2004 minutes (Chairman Tim Kelly)

A. Motion for acceptance (Phil Holoubek) and second (Tom Sheeran)

B. Unanimous approval of minutes

III. Master plan status and focus group meetings (Dhiru Thadani)

A. Review of 7 master plan principles and 10 points creating walkable streets

B. Report on meetings with urban neighborhood associations and walking tours of individuals neighborhoods

1. Discernable centers for neighborhood

a. Real centers created in neighborhoods

b. Architectural language

c. Halting of demolition by neglect

2. Preservation of local treasures

a. Celebration of cultural heritage

b. Branding

c. Walking tour map

3. Identification of neighborhood strengths and weaknesses

4. Sustainability

a. Permanent Farmers’ Market

b. Incentives to move downtown

IV. Discussion of downtown gateways (Dhiru Thadani)

A. Public entry ways

1. Railroads and viaducts

2. Major streets that fork

3. Entrances into Main Street

B. Urban land use identification and mapping

1. Historic places and national register overlay zones

2. Neighborhood boundaries

3. Surface and structure parking

4. Bus routes

5. One-way and two-way streets

a. Changes from one-way to two-way streets in one-year phases

b. Changes to pairs of streets

(1) Second and Third Streets

(2) Maxwell and High Streets

(3) Short and Church Streets

(4) Limestone and Upper Streets

(5) Main and Vine Streets

C. Example areas of possible intervention and redevelopment

1. Newtown Pike and Main Street

2. Rupp Arena parking lot

3. Woolworth Building

4. Phoenix Building parking lot

5. Land across from Thoroughbred Park

6. Living Arts and Science Center paring lot

V. Presentation of economic framework (Sarah Woodworth)

A. Lexington as regional center

1. Health care

2. Retail

3. Business

4. Conventions

5. Culture

B. Real population growth in Lexington

C. Economic growth not keeping pace with population growth

D. Summary of economic framework

1. Growing economy

2. Educated population

3. Excellent infrastructure

4. Low cost of living

5. High quality of life

VI. Presentation of residential market analysis (Laurie Volk)

A. Target market methodology (market potential not market demand)

1. Draw area- where potential renters or buyers currently live

a. Local draw area including Lexington and Fayette County- 64.8%

b. Regional draw area including adjacent counties- 7.3%

c. Metropolitan draw area including nearby cities- 3.1%

d. National draw area including balance of United States- 24.8%

2. Target market- who makes up potential market

a. Younger singles and couples- 72%

b. Empty nesters and retirees- 24%

c. Traditional and nontraditional families- 4%

3. Depth and breadth of market- how many have potential to move downtown Lexington if appropriate housing available

a. Target market households with potential to rent or purchase in Lexington/Fayette County- 15,690

b. Target market households with potential to rent or purchase in downtown Lexington- 3,200

4. Rental or ownership and multi-family or single-family residential options- what housing preferences are in aggregate

a. Rental lofts/apartments- 35%

b. For-sale lofts/apartments- 30%

c. For-sale row houses and live/work spaces- 22%

d. Urban houses- 13%

5. Existing housing and new construction- what alternatives exist downtown and in adjacent neighborhoods

a. Adaptive re-use of existing buildings

(1) Hard lofts

(2) Soft lofts

(3) Luxury apartments

b. New construction

(1) Rental and for-sale lofts

(2) Rental and for-sale apartments

(3) Townhouses over flats

(4) Townhouses

(5) Live/work spaces

(6) Urban houses

6. Market-rate rents and prices- how much market likely to pay

a. Rental price and size for downtown lofts and apartments

(1) $600 to $3,000 monthly

(2) 450 to 1,800 square feet

(3) $1.20 to $1.78 per square foot

b. Purchase price and size for downtown residential units

(1) Lofts and apartments

(a) $75,000-$750,000

(b) 550 to 3,000 square feet

(2) Row houses and live/work

(a) $195,000 to $500,000

(b) 1,100 to 2,400 square feet

(3) Urban houses

(a) $135,000 to $600,000

(b) 900 to 2,800 square feet

c. Current availability in downtown

(1) Current rent ranges

(a) $450-$1,500 per month

(b) 400 square feet studio- 1,250 square feet 2 bedroom unit

(2) Current price ranges excluding options and upgrades

(a) $100,000 to $625,000

(b) 525 square feet to 3,600 square feet

7. Absorption forecast- how quickly new units rented or purchased

a. Basis of target market determination

(1) 15% capture of potential market for multi-family units

(2) 10% capture of single-family units.

b. Support of approximately 424 new units per year in downtown Lexington over the next 5 years

(1) Rental multi-family- 168 units

(2) For-sale multi-family- 143 units

(3) For-sale single-family attached- 72 units

(4) For-sale single-family detached- 41 units

B. Criteria for downtown housing initiatives

1. Target areas for residential development

a. Create critical mass

b. Build on strengths

c. Identify building and land availability

d. Identify potential for expansion

e. Create anchors and linkage

2. Ensure appropriate urban design

a. Buildings and front doors face street

b. Parking lots and garage doors do not face street

c. Market and monitor downtown

VII. Presentation of retail analysis (Sarah Woodworth)

A. Shopping center-inclined

1. Lexington-Fayette County serving as regional center

2. Downtown Lexington- 4% of market

B. Eating and drinking

1. Downtown Lexington- 12% of market

a. Nightclub- 4%

b. Coffee/café- 7%

c. Fine dining- 15%

d. Take out/fast food- 17%

e. Casual/family- 26%

f. Bar/grill- 31%

2. Eat/drink composition neighborhood

a. Downtown core

(1) Nightclub- 6%

(2) Quick service-26%

(3) Sit down- 68%

b. East End

(1) Nightclub- 0%

(2) Quick service- 20%

(3) Sit down- 79%

c. College Town

(1) Nightclub- 0%

(2) Quick service- 32%

(3) Sit down- 68%

3. Eating and drinking supportable potential

a. 38,000 net new square footage

b. Potential sales- $5,142,077

c. Potential for 3-5 new full service restaurants

4. Restaurant investment parameters

a. Requirements

(1) Lunch and dinner market

(2) $50,000 plus income

(3) Trade area growth

(4) Agglomeration

(5) Visibility

b. Study area

(1) Site near office core

(2) Site near convention center

(3) Site near University of Kentucky

(4) Site accessible to 40502/40503

C. Shopper’s goods

1. Downtown Lexington- 2% of market

2. Shopper’s goods characteristics

a. Merchandise breakdown

(1) Furniture- 10%

(2) Apparel- 18%

(3) Other- 72%

b. Mainly independent rather than national stores

3. Shopper’s goods supportable potential

a. Potential for additional 16,000 square feet

b. Potential new sales- $4,925,545

D. Convenience (grocery and drug)

1. Downtown Lexington- 2% of market

2. Potential for additional 15,000-60,000 square feet

3. Support for store such as Good Foods

4. Need for residential growth

E. Retail issues

1. Requirement by investors for household growth and income

2. Importance of University of Kentucky, employees, and visitors

3. Need for critical mass to increase drawing power

4. Weakness of westside

5. Vulnerability resulting from regional retail competition

F. “Lifestyle” Center

1. Principles

a. Convenient to high income households

b. Open to street/accessible

c. Mixed-use

d. 150,000-300,000 square feet

2. Center in downtown Lexington

a. 200,000 +/- square feet

(1) Grocery store anchor- (60,000+ square feet)

(2) Book store anchor (40,000 square feet)

(3) Eating and entertainment establishments (3-5)

(4) Higher end apparel/home furnishing (30,000+ square feet)

b. Location

(1) Near University of Kentucky

(2) Near the Lexington Center

(3) Near Central Business District

c. Creation of new downtown housing critical

d. Importance of downtown as cultural/art/tourism center

e. Square footage potential in downtown center

(1) Eating/drinking- 38,000

(2) Shopper’s goods- 30,000-70,000

(3) Convenience- 60,000+

VIII. Presentation of office market analysis (Sarah Woodworth)

A. Office supply

1. Downtown Lexington- 48% of market

2. Square footage prices

a. Downtown- $14.50-$19.00 per square foot

b. Suburbs- $16.00-$20.00 per square foot

B. Office market building age

1. No new multi-tenant offices in downtown since 1991

2. Inventory growth in suburbs

3. Condo office growth in suburbs

C. Office potential

1. Potential 68,000 additional square feet

2. Technical companies

3. Smaller tenants- 750-3,000 square feet ($19.00 per square foot)

4. Mixed-use environment (24 hours)

5. Low to mid-rise units

6. Loft or flex rental

D. Commercial analysis summary

1. 24-hour cycle critical to attract new economy investment

2. Different products

a. Lower scale

b. Less expensive

3. Create a “BUZZ”

a. University

b. Tourism

c. Arts connection

4. Critical new residential development

E. Implementation issues

1. Parking- structured parking not supported by rents

2. Land uses- $20.00-$30.00 per buildable square foot without parking

IX. Downtown traffic analysis overview (Tom Creasey- consultant with American Consulting Engineers)

A. Definition of parameters and boundaries for Lexington Downtown Master Plan

B. Assessment of elements

1. Land use changes

2. Potential street changes

C. Evaluation of traffic issues

1. One-way versus two-way streets

a. Congestion

b. Vehicle speed

c. Effect on retail

d. Problems with wayfinding

2. Integration

a. Transportation

b. Pedestrians

c. Bicyclers

3. Parking

4. “Where” people want to be

D. Approach

1. Forecasting

a. No building

b. Alternative development

c. Traffic simulation

d. Recommendations

2. Dual phase

a. Simulation

b. Comparison/calibration

3. Models

a. Travel demand

b. Micro simulation

4. Timeframe- 9 months

X. Announcements and adjournment (Chairman Tim Kelly)

A. Meeting schedule

1. Farmers’ Market focus group- Wednesday, December 1, 2004

6:00 p.m.

Phoenix Building 3^rd floor community room 101 East Vine Street

2. Downtown Master Plan public meeting- Wednesday, February 2, 2005

9:00 a.m.

Phoenix Building 3^rd floor community room

101 East Vine Street

B. Meeting adjournment- 11:15 a.m.