[From the U.S. Government Printing Office, www.gpo.gov]
WiN @oV Coastal,20be center--, 6@ 40 HT W73 1983 r 0 itute 'A)r -dif Urban Waterfront Development Douglas M. Wrenn Associate, Urban Land Institute with John A, Casazza Associate, Urban Land Institute J. Eric Smart Associate, Urban Land Institute Property Of CSC Library COASTAL ZONE INFORMATION CENTER U.S DEPARTMENT OF COMMERCE NOAA COASTAL SERVICES CENTER 2234 SOUTH HOBSON AVENUE CHARLESTON SC 29405-2413 ULI-the Urban Land Institute 1090 Vermont Avenue, N.W. Washington, D.C. 20005 Steering Committee Chairman: Paul 0. Reimer President Reimer Associates, a California Corporation Burlingame, California Members: Bruce D. Alexander Senior Vice President/Director of Commercial Development The Rouse Company About ULI -the Urban Columbia, Maryland Donald E. Megathlin, Jr. Land Institute Executive Director Metro Area Planning Council ULI-the Urban Land Institute is an independent, Boston, Massachusetts nonprofit research and educational organization incor- Martin L. Millspaugh porated in 1936 to improve the quality and standards of President & Chief Executive Officer land use and development Charles Center-Inner Harbor The Institute is committed to conducting practical Management, Inc. research in the various fields of real estate knowledge; Baltimore, Maryland identifying and interpreting land use trends in relation to Alan E. Rothenberg the changing economic, social, and civic needs of the President people; and disseminating pertinent information leading London & San Francisco Company, Ltd. to the orderly and more efficient use and development of land. Son Francisco, California ULI receives its financial support from membership Frederick H. Trull dues, sale of publications, and contributions for research Planning Director and panel services, San Diego Unified Part District San Diego, California Ronald R. Rumbaugh Edwin D. Wetmore Execufive Vice President Block Grant Administrator City of Saginaw Saginaw, Michigan ULI Staff Copyright 1983 by ULI-the Urban Land Institute, 1090 Vermont Ave- Frank H. Spink, Jr Senior Director, Publications nue, N.W., Washington, D.C. 20005 Douglas M. Wrenn Managing Editor All rights reserved. No part of this book may be reproduced in any Nadine Huff Editor form or by any means, electronic or mechanical, including pho- tocopying, recording, or by any information storage and retrieval Robert L. Helms Staff Vice President, Operations system, without permission in writing from the publisher Regina P. Agricola Production Manager Library of Congress Catalog No. 82-084340 Jeffrey Hughes Art Director ISBN 0-87420-619-7 Betsy Van Buskirk Art Assistant Printed in the United States of America Roberta Rodriguez Art Assistant Cyndi Collins Word Processor Cover: Drawing of the South Street Seaport projed in New York, New York. By permission of The Rouse Company. Acknowledgments In some ways the preparation of this book was similar to the development of an urban waterfront project. It required the participation and interaction of several individuals with different expertise and skills. While I am truly grateful to everyone that was involved in creating this publication, a few people deserve special, recogni- tion. Much of the credit for the structure and focus of the book must go to the steering committee. Their guidance and knowledge were essential during the preparation of the manuscript, My thanks go to the committee mem- bers for their dedication and hard work. I also wish to acknowledge the case study partick pants for their cooperation and assistance. Without their help I would not have been able to compile the information necessary to prepare the case studies. I am particularly grateful to Thomas W. Purcell of Laclede's Landing Redevelopment Corporation in St. Louis, Mis- souri: Lori G. Kranz of The Rouse Company in Columbia, Maryland: Do H. Chung of Yankee Planning in Stamford, Connecticut; Joseph O.C. Griggs of Griggs, Lee, Ruff of Ankrom/Architects in Portland, Oregon; Ron Nelson of the City Department of Community Development in Tdco- ma, Washington: Cameron Gray of False Creek Devel- opment Group in Vancouver, British Columbia; Paul Kelly of Boscom Corporation in Boston, Massachusetts; Fiona McCall of Harborfronf Corporation in Toronto, Ontario; and Marc L. Older of the Boston Redevelopment Authority in Boston, Massachusetts. Other individuals who were especially helpful to me include Joe Brown of EDAW, Inc., in Alexandria, Virginia; Dennis L. Richardson of the Norfolk Redevelopment and Housing Authority in Norfolk, Virginia; George Colyer of the City Planning Department in Alexandria, Virginia; Boris Dramov and Bonnie Fisher of ROMA in Son Francisco, California; and Ann Breen and Richard Rigby of the Waterfront Center in Washington, D.C. To each a sincere note of thanks, Credit must also be given to ULI staff: Frank Spink and Paul O'Mara for valuable suggestions, Eric Smart and John Casazza for case study contributions, and Jane Lynas and Cyndi Collins for typing the manuscript. Finally, I owe much more than just a word of thanks to my wife Denise who shared in every joy and sorrow along the way. With the understanding and encourage- ment she gave me, I was able to see a dream come true. Douglas M. Wrenn Public Sector Response 47 Management Structures 47 Zoning and Districting 54 Urban Development incentives 62 IV- The Development Process 72 The Predevelopment Stage 74 Project Planning and Initiation 75 Project Analysis 84 Preferred Design and Development Program 89 Packaging the Final Product 92 The Development Stage 96 Contents Financing 96 Foreword 1 Securing Lease Agreements 99 Design 101 I. Historical Perspective 2 Project Construction 105 Role of Waterfronts in Urban The Postclevelopment Stage 106 Development 3 Determining Maintenance Coastal Seaports 3 Responsibilities 106 Inland Ports 7 Public/Private Project Management 107 Impact of the Railroad 8 V. Selected Case Studies 110 Evolution of Urban Waterfronts 9 Harbourfront, Toronto, Ontario ill Typical Pattern of Port Development 10 Union Wharf, Boston, Massachusetts 124 Physical Alterations 13 Charlestown Navy Yard, Boston, Environmental Quality 14 Massachusetts 132 Succession of Waterfront Functions 16 Laclede's Landing, St. Louis, Missouri 138 Rise of Jurisdictional Responsibility 18 Inner Harbor, Baltimore, Maryland `146 II. Characteristics of Urban Johns Landing, Portland, Oregon 156 Waterfronts 20 The Embarcadero, San Diego, Geographic Location 21 California 162 Water Resource 21 False Creek, Vancouver, Land Resource 25 British Columbia 174 Climate 27 Palmer Point, Greenwich, Urban Context 28 Connecticut 186 Waterfront Constituency 29 Pickering Wharf, Salem, Waterfront Heritage 30 Massachusetts `190 Waterfront Access 32 City Waterway, Tacoma, Visual Character 34 Washington 194 Government Jurisdictions 34 Harbor Plaza, Stamford, Federal Involvement 35 Connecticut 200 State Involvement 36 VI. Development Issues and Trends 204 Local Involvement 37 Development Issues 205 Port Authorities 37 Regulations and Permits 205 Ill. Identifying Development Deciding Appropriate Use 207 Opportunities 38 Providing Public Access 210 Incentives 38 Citizen Participation 212 Constraints 40 Major Development Lessons 214 Site Limitations 40 Future Development Opportunities 216 Institutional Constraints 42 Bibliography 218 IV Foreword Water was our first form of transportation and thus, for the most part, the growth of our communities has been at the mouth of navigable rivers, on bays, of key points along rivers and waterways, or on the ocean. Our earliest commerce was wafer-related. But the develop- ment of railroads in the 19th century expanded our geographic and commerce opportunities and triggered the cities' shift away from their waterfronts. What were once front doors became back doors. As the nation's transportation network continued to evolve, highways became the dominant form of travel, resulting in urban sprawl. Urban areas abandoned their waterfronts, and central cities declined along with them. But over time, waterfronts have been rediscovered- and are now "hot" real estate. The current interest in their revitalization stems from urban renewal programs follow- ing World War 11. Though the primary focus of these programs was redeveloping the downtown core, if there was a waterfront it was identified as a later phase of the overall revitalization. Today, through the combined efforts of private developers and community officials, water- fronts are being recognized as an urban amenity which can accommodate both water and nonwater-depen- dent uses. This book is about that trend, a trend that will restore vitality to many cities. Urban Waterfront Development attempts to define the issues that have led to this revitalization, to recognize the legitimacy of conflicting interests, and to provide examples of waterfront devel- opments that have been favorably received in their communities and the marketplace, It does not try to provide a simple path to resolution of these various factors, but rather presents several case studies which offer insight into alternative methods. Like other ULI publications, Urban Waterfront Develop- ment seeks to relate private/public interests in land use and development to UILI's overriding goal of encourag- ing good development practices which best serve all segments of the community. We hope we have succeed- ed. To help provide a broader perspective to the water- front development issue, we recommend the following additional ULI publications: Mixed-Use Developments (1976), Adoptive Use (1978), Joint Development (1979), and the Downtown Development Handbook (1980). Frank H. Spink, Jr. Senior Director, Publications Historical Perspective Urban waterfronts are special cultural resources. They are unique in their potential to provide diversified opportunities for economic development, public enjoy- ment, and civic identify. Until recently, however, urban waterfronts were one of North America's most neglected resources. As patterns of commerce have changed, the nature and use of urban waterfronts have changed. Technolog- ical innovations affecting air, land, and water transporta- tion made the port facilities of many cities obsolete. 0 Urban waterfronts were allowed to deteriorate as the result of old age, underufflization, and lack of invest- ment. The effective reuse of waterfront sites, buildings, and piers, both for necessary economic development and for recreational and cultural activities, has already occurred in several cities, and many other cities are currently exploring similar opportunities. Realizing these opportunities, however, is a complex and challenging task. It requires understanding the historical role of waterfronts in urban development, the characteristics of present day waterfronts, and the unique combination of factors that influence waterfront development. Role of Waterfronts in Urban Development on The early settlement of North America was directly tied to the location and accessibility of navigable waters. Newport The movement of materials, products, and people was primarily dependent upon water transportation, and protective harbors were favored sites for early develop- New York ment and growth. A good harbor provided security and PhIladelp accessibility-a place where a foothold could be gained in an uncharted land. As settlements were established and immigrants arrived, the colonial water- fronts were the doors to opportunity. Just as importantly, a waterfront served as part of the linkage to the necessities of Europe and to a familiar and predictable environment. Coastal Seaports By the beginning of the eighteenth century@ five seaports had been established along the Atlantic coast, V4 truly demonstrating how essential the waterfront was to urban development. These cities, small as they were, had developed a commercial vitality, urban amenities, and a civic spirit that set them apart from other settlements. The northernmost city was Boston on Massa- chusetts Bay; the southernmost was the newer, much smaller settlement of Charles Town (Charleston), one thousand miles down the Atlantic seaboard in South Charleston Carolina. The other three were located between these geographical exfremes--Newport in the Providence Savannah Plantations of Rhode Island; New Amsterdam (renamed New York in 1664 after the English conquest of New Netherlands); and Philadelphia, on the Delaware River at the mouth of the Schuylkill. The Dutch settlement on Manhattan was five years old when the Puritans of the Massachusetts Bay Company started building Boston in 1630. Dissidents from the religious views of the Bay colonists founded Newport on Narragansett Bay in 1639. Royal patentees established Charleston in 1680. William Penn laid out the Quaker "City of Brotherly Love" two years later More than just age differentiated those leading coastal cities from each other. Just as each came to be the metropolis of its province and the direct link with European civilization 3,000 miles and some three months voyage to the east, so from the very beginning each 1 -1 Atlantic coastal seaports. Newport, founded in 1639, had a modest population compared to Boston. But the Narragansett Bay settle- ment nevertheless gradually affained influence by promoting its waterfront. During Newport's first half- century its commerce was confined to exchanging the agricultural products grown locally for European goods imported into Boston. The economic dependence on Boston lessened little by little as Newport merchants began to extend their trade southwards to the Carolinas and the Caribbean. To a lesser extent this is what happened in many had distinctive characteristics formed by its geographic smaller New England coastal settlements. A waterfront setting and the nature of its hinterland. Each port had a complete with docking and cargo handling and sheltered harbor well adopted to the use of ocean- storage facilities meant security, independence, and, going vessels. The broad Delaware at Philadelphia's site most important of all, viability. It is not surprising that from was virtually an arm of the sea reaching up from 1720 on local shipyards and locally established mer- Delaware Bay. At Charleston, where ships loading or chants dominated the economic life of southern New unloading had to resort to lighters before wharves were England. built in the 1690s, anchorage was safe for the largest Manhattans development followed a slightly different ocean-going craft of the day, New York and Newport course. In addition to a magnificent natural harbor, the stood on islands, and Boston was connected with the island offered settlers two advantages denied the New mainland only by a narrow neck washed by the tides at England towns: fertile soil extending over a wide high water and during storms. Furthermore, each town adjacent territory and easy access to the interior of the was immediately affected by the aims of its sponsors continent by way of the river named for its explorer, and financial backers in England or Holland, and, Hendrik Hudson. New Amsterdam early on had brought above all, by the ideals, educational background, and Long Island and most of the Connecticut settlements religious convictions of the first settlers. along the Sound into its economic orbit. Although the But the common locational variable supporting the decline and eventual collapse of shipbuilding and the development of these cities was a safe harbor. Each loss of the fur trade to the frontier outpost a hundred waterfront was a focal point of activity. It was the place miles up the Hudson River at Albany checked New York's where necessary provisions were received and dis- economic expansion, its commerce regained vitality tributed and outgoing cargo packaged and loaded. early in the 18th century. This economic resurgence was The waterfront was not only a marketplace for the first accomplished by shipping through Boston but transfer of supplies, but also for the exchange of concerted efforts to shake off dependence on New information and ideas. In this respect it served as the England shippers met with considerable success after primary stage for social interaction. In every colonial 1730 when New Yorkers began to import directly from port the waterfront was an important meeting place and London and Bristol and to dispatch return cargos to a symbol of community strength, England.' In this case, the waterfront was indeed the The dependence upon the sea for the transport of means for supporting urban growth and development. materials and goods was most pronounced in the The fourth settlement of the five to achieve stature in relatively harsh environment of New England. Compared the Colonies was located nearly 850 miles south of New to the fertility of the lands adjoining the more southern York in a swampy subtropical region of South Carolina. settlements, the New England hinterland was barren and Yet Charleston and New York shared the same attach- hard. Yet Boston thrived by developing shipbuilding and ment and dependence upon the sea. From about 1720 a strong seafaring trade. Cod, mackeral, and haddock till the outbreak of the Revolution, Charleston merchants netted on the Newfoundland banks were a staple of shipped directly to English or southern European ports. that trade and laid the foundations of Boston's economic Return cargos sold almost as soon as they landed on the fortune. As a principal port of entry, Boston was also the "Battery@" the sea wall built along the harbor's edge. distributing center of merchandise for the entire region. Remarkable as the growth of other colonial towns, After 1720, Salem, on Massachusetts's northern shore, Philadelphia's rise was the most spectacular. The last one and Newport, to the south, began to offer a serious established of the five ports, it achieved in 60 years a challenge to Boston's supremacy over New England commercial and cultural importance second only to commerce, but the city's financial resources, accumulat- Boston. Once again the waterfront was the catalyst for ed over the years, made the difference. Colonialists economic prosperity. The key, however, was the building drawn to the sea gravitated toward Boston's Long Wharf of roads into the back country which enabled Phila- and, when their-seafaring days were over, settled into delphians to market the agricultural goods produced on jobs in shops, warehouses, and offices along the waterfront. In fide-enclosed Boston, it was said that all Constance McLaughlin Green, The Rise of Urban Americc (New York: streets led down to the sea. Harper & Row, 1965), page 3. 4 1!2 -The waterfront of New Bedford, Massachusetts, in 1870 retained the appearance of the colonial secOorts of New England. 6QP IAVI 1W -7 IT Amp" ancouVer farms 80 miles inland, and, in 15 years, between 1727 and 1742, to expand shipbuilding on the Delaware.2 This clearly demonstrated the advantage a city could gain by improving the overland accessibility of its waterfront. Seoftle Each of the five leading colonial cities developed distinct characteristics in architecture and overall op- pearance, in intellectual interests, and in emphasis upon various amenities. However, no matter what the location or the founder's immediate aims, the lifeblood of each city was commerce, and the waterfront its heart, In the 1750s, from the newly founded colony of Georgia below South Carolina to the New Hampshire settlements of northern New England, newer towns were beginning to compete with the early leaders. For example, Augusta, Georgia, at the head of the Savannah River, was intercepting some of Charleston's trade with the hinterland. Norfolk, Virginia, and An- napolis, Maryland, on Chesapeake Bay were likewise expanding as outlets for tobacco and other agricultural goods, Further north, Salem and Portsmouth were obliterating Boston's monopoly over northern New Eng- land's commerce; and the rising power of Providence at the head of Narragansett Bay was shrinking Newport's forming settlements in the interior. status by cutting it off from direct contacts with the During this early period of urban growth, the emergence of a par@icular city was directly related to the location and quality of its port. The development of Son ronclscv@ Baltimore is a good example. The city quadrupled its population in the 15 years following the Revolution and was able to do so primarily because of its location.3 Unlike vessels sailing from the older American ports, Baltimore's ships bound for the West Indies or southern coastal cities on leaving the mouth of the Patapsco River sailed the protected waters of Chesapeake Bay for a hundred miles before reaching the open sea, This allowed for a safer as well as a shorter voyage than could be made from Philadelphia, New York, or New England. Its location on the upper bay, moreover, made the city the logical marketplace for the wheat that San Diego farmers were beginning to raise in western Maryland. In the 1790s, even before the state legislature granted a municipal charter, the city's merchants worked to capitalize on these advantages by building roads that enabled them to divert from Annapolis much of the tobacco trade of southern Maryland. The location of navigable waters and protective harbors were just as critically important in the settlement of the Gulf and Pacific coasts as it was along the Atlantic seaboard. This significance is revealed in the pattern of urban development that occurred along coastal bays and inlets. The early development of major cities such as New Orleans, Son Diego, and Son Francisco clearly illustrates this fundamental relationship between a suitable harbor and urban expansion. 2 fibid, page 28. Ibid, page 58, 1-3 Pacific coastal seaports, Although European explorers sailed to the west coast of North America during the 1500s, urban development did not occur until almost 200 years later The west coast port cities developed much more slowly than the colonial cities on the east coast for two basic reasons: the distance by sea to Europe was significantly longer and more treacherous, and the countries that sponsored the initial explorations concentrated their efforts on As settlers migrated westward over primitive highways, establishing settlements in other, more accessible, areas port cities began to emerge along inland waterways. of North, Central, and South America. Pittsburgh, at the head of the Ohio River, was an early Sir Francis Drake first landed on Son Francisco's shore example. Cargo was transported overland by covered in 1579, but the city's development did not occur until wagon from coastal seaports to Pittsburgh where many years later By 1776 the full potential of San boatmen loaded the merchandise on to barges and Francisco as a port city was impossible to ignore. raffed it 1,800 miles down the Ohio and Mississippi to Eighteenth century Spanish explorers saw Son Francisco New Orleans. Two other cities owing their early success Bay as a great Pacific Coast harbor and built landing to waterfront commerce were Cincinnati and St. Louis. facilities where the Presidio overlooks the entrance to the Both towns grew relatively quickly into major trading bay The first major harbor facility was later developed in posts. sheltered Yerba Buena Cove near the northeast corner The development of cities along the great lakes was of the San Francisco peninsula.4 also influenced by the need for a safe harbor. For The search for protected, deep water harbors led example, when Lieutenant Governor John Groves Sim- Portuguese explorer Juan Rodriguez Cabrillo into San coe selected a site on the north shore of Toronto Bay as Diego Bay in 1542. During the 1700s, Spanish vessels the location for a new town to be named York (renamed sailed regularly to Son Diego to supply the missions and Toronto), he regarded the bay as the best harbor on military outposts established there. By the time of the Lake Ontario, suitable for all military@ naval, and American Revolution, a viable trading pattern had commercial activities. In fact, the new settlement's status developed in San Diego Bay. as a port preceded its incorporation as a City.5 The Pacific Northwest was settled much later, but Along with the steady movement of settlers westward, access to navigable waters was still a major factor several other factors contributed to the expansion of influencing the location of development. Seattle was inland ports. The signing of the Louisiana Purchase in founded in 1857 by a small group of settlers who had 1803 was one important event. If unified under one flog explored north from the Oregon Territory They searched the river ports of New Orleans and St. Louis with the the Puget Sound shoreline to find the deepest, most coastal cities along the Atlantic seaboard, thereby desirable port and staked claims on what is now allowing the crops harvested from the farms multiplying downtown Seattle. around Cincinnati to be shipped to eastern markets. The With the beginning of the gold rush and the impact was felt in Cincinnati where the city's population subsequent growth in population, west coast seaports tripled in 10 years, and wharves, taverns, storage took on even more importance in stimulating urban buildings, and other structures lined the riverfront. St. Louis growth and regional trade. In 1850 the first commercial became the westernmost location for outfitting wagon wharf was built in San Diego and a year later the first trains. The U.S. Army established forts to maintain security steamship arrived in San Diego from San Francisco, along inland waterways, improving the safety and marking the beginning of regular service between these reliability of waferborne transportation, two ports. San Francisco's first major pier, Long Wharf, Another major development that magnified the impor- was built in 1849. tance of a viable waterfront in stimulating urban growth Inland Ports was the introduction of the steamboat. About 1811, a steam engine shop was opened in Piftsburgh-the Until the development of the railroad, North American strategic point of transfer from overland routes to the cities were almost of necessity situated on waterways. western rivers. However, it was not until 1818, after The extreme difficulty of overland transportation left no Cincinnati began building steamboats, that they be- choice to settlers other than to use coastal or inland came the primary form of river commerce. For anyone wafers as routes for trade and, as much as possible, for shipping goods upstream from New Orleans, the travel. This condition dominated the continuing urban steamboat offered tremendous savings in time, risk, and development of North America, cost. Instead of the 78-day record for a barge poled up to Cincinnati, steam transport in the 1820s reduced the 4 Harold Gilliam, "Son Francisco Bay: Mystique Versus Economics," Urban Waterfront Lands (Washington: National Academy of Sciences, `1980), Donald F. Putnam and Robert G. Putman, Canada: A Regional Analysis page 101. (Canada: J. M, Dent & Sons, 1970), page 229. 7 trip time to about 25 days.6 Every town along the Ohio and Mississippi Rivers benefifted from the steamboat St. Louis's trade with New Orleans doubled, and by 1835 the Louisiana port, with commerce valued at approximately $54 million, had a larger volume of exports than New York City On the inland seas of the Great Lakes, steamers were relatively scarce until completion of the Erie Canal in 1825 stimulated the settlement of the region, Like steamboats, the canals dug by other states and private companies envious of the success of Erie Canal spurred city growth. New York City profifted more directly and more largely than any other one community. As the 350- mile waterway, begun in 1817, pushed westward from Toronto the Hudson at Albany toward Buffalo on Lake Erie, towns sprang up along its course. Produce from the adjacent countryside moved eastward over the completed stretches to the Hudson and on to Manhattan, and shipment of goods went from the port into the inferior. While Buffalo, the western terminus of the canal, grew into a city, the canal traffic ensured New York's Chicago commercial leadership. However, Pennsylvania's imitative attempt to link Philadelphia and Pittsburgh by a Pittsbu combination of canal and land transport cost taxpayers $14 million without producing comparable results, just as the money sunk info the Chesapeake and Ohio Canal incinnati along the Potomac westward from the national capital through Maryland neither yielded investors satisfactory returns nor created new centers of trade.7 In Ohio, on the other hand, a network of canals built to feed into the St, Louis Erie fostered the growth of secondary towns lying between the Ohio River and Lake Erie. Impact of the Railroad The development of rail transport had a two-sided impact on the role of waterfronts in urban development. On one hand, it gave a competitive edge to the first port cities with rail connections and strengthened the importance of many urban waterfronts. On the other hand, it opened up areas commercially unapproach- able by water, thus diminishing a city's need for water access. Furlhermore, it handicapped some port cities that could not accommodate the spatial requirements of the railroads along their waterfronts. Baltimore was the first North American city to put faith in rail transport. In 1827 its bankers, after hearing a careful description of English experience with a railway, concluded that locomotives and iron tracks laid over the mountains and info the Ohio Valley would be the best means of capturing a share of the western trade which N Orleans the Erie Canal was diverting to New York, Within five <10 months Baltimoreans had prepared a plan, obtained a company charter, raised $3.5 million of capital, and engaged a competent engineer to start construction of the Baltimore and Ohio Railroad. Before the enterprise 6 Green, The Rise of Urban Americo, page 65. 7 Ibid, page 66. 1-4 Inland ports, was five years old, freight was rolling into Baltimore in a volume that gave it undisputed commercial control of most of Maryland, and by midcenfury, when the iron Evolution of Urban Waterfronts tracks reached the Ohio Valley (The Baltimore and Ohio entered Cininnati in 1857), the Chesapeake Bay port, as If is obvious that urban waterfronts played a major role an outlet for western produce, had attained a position in the settlement and growth of North American cities. that only New York and New Orleans could challenge.8 What is less obvious, but just as important, is how Other Eastern cities were quick to follow Baltimore's waterfronts have changed in response to dynamic example, even when they had good waterways at their economic and technological influences. It is significant doorsteps. Unlike canals and rivers, railroads were because many of the incentives and constraints assock usable at all seasons of the year, the speed of delivery offset the relative cheapness of shipping by boat and, ated with contempo .rary development opportunifes stem most important of all, land routes could reach areas from changes occuring in the past. commercially unapproachable by wafer Urban waterfronts in North America have historically In St. Louis, however, railroad development delivered a suffered from a lack of vision and management in their serious blow to the economic viability of the city's port adaptations to successive demands for new functions. disfricf-Loclede's Landing. The Landing was compact Traditionally, waterfront development and growth has and perfectly situated for the days of the steamboat, but been disjointed and incremental, characterized by a did not have the available space required by railway web of loosely related decisions and actions by dozens facilities. Furthermore, the completion of the Eads Bridge of political jurisdictions and hundreds of entrepreneurs. in 1874, the first bridge spanning the Mississippi at St. To gain an overall perspective of the changes that Louis, stimulated expansion of newer industrial and have taken place along urban waterfronts, it is useful to warehouse facilities away from the waterfront district trace the typical pattern of port development.9 Keep in Generally the railroads spelled prosperity for St. Louis, mind that this was the common sequence of events and but the city lost much of its attachment to the riverfront. as such does not correspond to any particular city, This was not the case in Chicago, where the recre- Specifically, the scale and pace of change was ational and commercial uses of the city's waterfront uniquely tied to the characteristics of each waterfront were not diminished by the rapid expansion of rail city. facilities. 9 The typical pattern of port development was adopted from Waterfront Precedents (Toronto: City of Toronto Planning and Development 8 lbid, page 69. Department, 1976), pp. 2-5. M, kJ tit it"M 7@7 If 41. AZ V5 Baltimore's thriving port stimulated the city's early development. 9 1-6 Typical Pattern of Port Development The first prerequisite for establishing a port was the existence of a safe harbor suitable for cargo and passenger ships. Within the harbor, a site was selected for construction of a small wooden jetty. Ships were anchored offshore and cargo was transported to the jetty by smaller boats. At this time, the waterfront was nothing more than where primitive inland trails con- verged at the location of the jetty. Later on, a street pattern was slowly established. Throughout this period of settlement, inhabitants had direct contact with the natural shoreline. (See Figure 1-6.) This was followed by a period of rapid growth and development during which the physical configuration of the waterfront began to be significantly altered. A larger 1-7 pier was usually installed to allow ships to dock and the street grid began to be filled in with buildings. (See Figure 1-7.) Seawalls and bulkheads were constructed to stabilize the shoreline and improve anchorage 64 r facilities. Although there was dramatic expansion during J .;AL this period the settlement still clung to the waterfront with a shoreline road providing primary access. At this point, the settlement was fast becoming a city and its waterfront emerging as a port. Maritime commerce stimulated urban development and the shoreline road was a busy street providing services, supplies, and office space for merchants and the shipping trade. (See Figure 1-8.) Commerce escalated with the use of steamships. Rows of newly constructed warehouses blocked the JI[:W water's edge from the street, and wooden piers were 1-8 --- I'-- , W, gradually replaced by bigger docks made of stone and fill material. By filling out into the water to expand docking and storage facilities, the distance between the r city's center and its shoreline was significantly increased. (See Figure 1-9.) The rapid expansion of the waterfront and its growth as a port facility precipitated the formation of a governing body-a port authority or cornmissior)---fo manage shoreline activities. The port continued to thrive: more warehouses were built and railroads first appeared. The introduction of railways required a great amount of waterfront land. Space was needed to service docks and install tracks. Thus, even more land was created with fill material (often generated by dredging operations) to satisfy the rJ spatial needs of the railroad. As shown in Figure 1-10, 1-9 this change effectively severed the central city from the rF waterfront. - Ji As this process of expansion continued, the original shoreline road became functionally less useful as the distance between it and the water increased. The central city was effectively detached from the shoreline and the waterfront was congested and difficult to maneuver through. To alleviate congestion a new elevated highway was built near the shoreline with limited access to the city. Offices and stores along the old shoreline road were consequently converted to U ' 4Fi@ warehouses. (See Figure 1-11.) 10 1-10 L_J L__J U" L_@Wj =1 L_J L (@Fi F-:Q r _J lift At this stage the typical port development scenario followed one of two paths. If shipping declined, then the shoreline remained unchanged and the buildings along the old shoreline road were subsequently demolished and the expressway widened. (See Figure 1-12.) If shipping increased, then the port activities were ex- panded, more industrial uses were introduced, and wider piers were constructed. (See Figure 1-13.) __J Throughout this incremental development process the rF--=L scale of the waterfront increased significantly with the size of the elements of industrialization (trains, cranes, L I -1h ships) in use. Today, the economically successful port UFL 9-h- Rd resembles Figure 1-14. However, in North American cities, the original port area rarely developed as a commercial shipping terminal for two reasons: large, previously established waterfront industries were entirely _'Vf dependent on supply by ship and any major relocation was too costly; and secondly, the old port areas were too constricted for modern container ships to maneuver easily, and thus there was a lack of back-up space for cargo storage. 1-12 1-14 41 IL iw -AL .. .... .... ...... LL@4: 1-13 1-15 @'J L@wu Ili Containerization revolutionized cargo loading. In tradi- tional cargo handling, known as "break-bulk," individual packages in separate crates were loaded on and off ships. In containerization, however, cargo is prepacked in large metal boxes, each about the size of a small truck body Containerization speeds ship loading enormously. While it takes 12 days to load a 6,000-ton ship break- bulk style, it takes only one day to load the same size ship with containerized cargo.10 However, the operation requires a different kind of port facility. The number of berths available became secondary in importance because a ship requires comparatively short docking 1-16 Container crones have revolutionized cargo handling in port cities. time. Backup space-35 acres per berth by rule of 1humb-became the essential element of a successful port facility." Hundreds of acres of upland area are required to efficiently service the large container ships. As a result, many of the break-bulk finger piers in the port fell into disuse and disrepair. At about the same time, some manufacturers began to leave the city, and the railroads were hard hit by the decline of manufactur- ing plants. When their freight volumes declined, the 0 '0 railroad suffered. Railroad yards on the waterfront were allowed to deteriorate as the result of old age, neglect, and disinvestment. The waterfront virtually became a ghost area-a deserted, inaccessible, depressing re- minder of better days. The old port area lost its original usefulness, and private developers and city governments discovered a t1% A 1711 'r relatively inexpensive supply of downtown waterfront land ripe for redevelopment. Due to the port's commer- cial failure, there was a chance to open the waterfront @4 once more to public use and a blend of recreational, residential, and commercial uses were developed. (See Figure 1-15.) In the meantime, a new container port was established outside the city where space was plentiful. This typical sequence of change has taken place to q varying degrees throughout North America. Variations ie can be attributed to many interrelated factors: a city's age and size, its location and climate, the diversity of wafer-relafed uses, and forms of governmental inferven- tion. The magnitude and ramifications of this evolution 0 can be better appreciated by looking at the actual 0) 2D experiences of individual cities. In this respect, the metamorphosis of urban waterfronts can be qualified in 12 terms of physical alterations, changes in environmental 0 quality, the succession of different functions' and the redefining of jurisdictional responsibility. 0 10 Robert F Wagner, Jr., "New York City Waterfront: Changing Land Use 16 and Prospects for Redevelopment," Urbon Woterfront Londs, page 85. Ibid. 12 Physical Alterations As alluded to in the typical development scenario, the physical alteration of urban waterfronts was necessitated (appointed in 1911 to coordinate administration of the by technological innovations affecting waterborne trans- port and harbor) built a protective breakwater 900 feet portation. It was an ongoing process and produced offshore, extending from Humber River to the Western dramatic change. For example, during the early stages Channel. of Baltimore's development, the city dredged the mouth Similar alterations were made in west coast cities. In of the Patapsco River, filled the marshland adjoining it, San Francisco a seawall was constructed to control mud and put up warehouses and wharves along the slippage, to allow filling in of the mud flats, and to extended waterfront until its docking facilities rivaled improve moorage conditions along the waterfront. Two New York's. In Boston, when conflicts occurred over the and one-half miles of seawall were completed by 1880, location of waterfront facilities, an obvious and relatively and the mud flats that were filled in became the city easy answer was to create new land by filling in the center with its financial and commercial districts, The harbor The extent to which this was done is startling. As Vancouver, British Columbia, waterfront was drastically shown in the illustration, the large waterfront areas of altered when Granville Island was formed in 1915 from South Boston and Charlestown neighborhoods as well as material dredged by the city to increase the width and downtown were created to meet, the demands of depth of the navigable channel in False Creek. In San expanding maritime activities. Diego, Shelter Island (a major waterfront feature) was Toronto, like many other inland waterway cities, has a created and later connected to the mainland by filling history of changing the shoreline to create lands for new in the bay with dredged materials. uses or the expansion of existing uses. The Toronto Many other examples could be cited but the point is waterfront is marked by succeeding "headlines" as clear: urban waterfronts' configurations have been landfill operations have extended the shoreline farther dramatically altered over the years in response to and farther into the harbor In addition to deepening changing social and technological factors. If waterfronts the harbor and expanding the port area through its were not able to accommodate change, then they lost reclamation activities, the Toronto Harbor Commissioners much of their economic viability. -xx . ......... ... Xx*.' . ..... :X.- :X. XX -X X X1. xxx.-:-, 2, -:1.1 X ... .... .... 1800 1800-1850 73 .......... < ........... ..... . ... 0 2 X- a) 0 CO ... .. ... 1-17 Land creation in Boston harbor, 1800 to 1960. X. 1I.XX 1850-1900 1900-196 13 physically uninviting. The water's surface was frequently thick with oil and gas discharged from ships, and the shoreline was littered with trash and debris. On the other hand, the ports that could not accom- modate industrialization became noncompetitive and Environmental Quality somewhat obsolete. In these cases, environmental quality suffered more in terms of general urban decay- As urban waterfronts followed the typical pattern of vacant buildings, rotting piers, and unsightly storage expansion and industrialization, the quality of the facilifies--fhan specific pollution problems. This is essen- environment was noticeably affected.. Pollution controls tially what happened in Boston and St. Louis, as well as were unheard of and more often than not the pollutants many other cities. and waste generated by shipping and commercial With the implementation of pollution controls in the fishing operations were pumped or discarded directly late 1960s and early 1970s, coupled with the relocation into the sea. Moreover, rapid urban development of some industrial operations from central waterfront ,increased storm runoff, accelerating erosion and sedi- locations, the quality of the shoreline environment was mentation, This also created additional flooding and dramatically improved. Portland, Oregon, is a good drainage problems. Until modem sanitary systems were example. In Oregon, the commitment to improve water developed, waterways were literally open sewers and quality was demonstrated as early as 1938, although it the stench in the air served as an unpleasant reminder was not until the beginning of the 1960s that the state's The deterioration of water quality was particularly Department of Environmental Qualify was created and rapid in inland rivers which did not benefit from the tidal important legislation enacted. During that decade, action that helps dilute and flush out pollutants. Further- guidelines were adopted for establishing water quality more, inland waterways suffered from the cumulative standards, and public policy regarding statewide effect of each port city along a river discharging controls was clarified. A system of permits and financial pollutants and wastes into the water. incentives, such as tax credits and assistance grants to The elements of industrialization-motor-powered cities and counties, was authorized. Because of these ships, railroads, processing plants, grain elevators, and and other major public policy decisions, the renewal so forth-contributed to the further deterioration of the and redevelopment of the Willamette River waterfront waterfront environment. The detrimental impacts associ- was possible. ated with industrialization were greater air pollution, Many studies have been completed documenting the greater noise and congestion, destruction of fish hab- relatively healthier condition of North American water- itats, and improper waste disposal. Intensively utilized ways. The overriding result has.been a renewed interest ports were noisy, grimy places--visually unpleasing and in the waterfront's recreational and aesthetic appeal. (D 75 Z N LD 0 _C 1-18 By 1930 industrialization had significantly damaged the environmental quality of the Tacoma, Washington, waterfront. 14 1-19 The Boston Fish Pier was built in 1912 to help relieve the congestion at other wharves in the harbor. It was the largest and most modem plant of its kind in the world with a tiny railroad on. the roof capable of distributing ice to each dealer, a cold storage facility, a central heating system, and a telegraph communications system. 1A .iiic- 4@ all r A -N. Now VW ir A4 _MW W A AI t "o, z @VT V T -v justified on the grounds that "the large arms of the sea" embracing Manhattan made other recreation facilities unnecessary.12 Waterfronts, however, were gradually monopolized by facilities for transportation and com- merce and were rendered useless for any other purpose. As settlements grew info cities, shipping, commercial, and industrial activities were traditionally located on or adjacent to the waterfront. During the late 19th century, railroad yards and facilities were built along the water- Succession of Waterfront Functions front usually adjacent to the large shipping facilities. Gradually, the waterfront became the center of the The functions of urban waterfronts have always been commercial and industrial life of these cities. By the early tied to the characteristics and needs of individual cities, 20th century, the waterfront areas.in major port cities although they have shared a typical sequence of hummed with a variety of commercial shipping, rail- development, During the early urban development of road, and industrial activities. Typically, the waterfront North America, a city's waterfront served primarily to areas were characterized by numerous, expansive support its immediate resident population. The basic developments such as railroad yards and industrial and functions were commerce, shipbuilding, transportation, shipping facilities which funneled raw materials and commercial fishing, and defense. Recreation was a finished products to and from merchants.and manufac- secondary function and often the waterfront was thought turers throughout the country. to provide by itself adequate open space for the health and recreational needs of the citizens. In the New York 12 August Heckscher with Phyllis Robinson, Open Spaces: The Life of plan of 1811, for example, a neglect of parks was American Cities (New York: Harper & Row, 1977), page 88. 11W till 0, , < Z ItAo 'T WiL T_ - - 71,_ _:@- 1-20 By the early 20th century, the waterfront areas of major port cities such as New York were dominated by commercial shipping, railroad, and industrial activities. 16 The development of the railroad system drastically reduced the dependence of cities on their waterfronts to provide the basic functions of transportation and commerce. With the exception of the cities dependent on international trade, communities were more reliant on rail service than water access to support urban growth, In such cases, recreational and residential uses at the waterfront often gained priority Seattle, are three notable examples. While in retrospect The use and expansion of the railroad system along the wisdom of locating these highways along the with the predominance of a natural resource in the waterfront is questionable, at the time they were first hinterland, such as timber or coal, led to the increased proposed highway development corresponded with specialization of urban waterfronts. Cities would com-_ suburban growth and the demand for easy movement pete with each other for regional dominance and a through urban areas. In many cities the waterfront did single use would thrive at the expense of other functions. not have a high priority as a location for recreation, The result was that within a coastal region one city open space, or consumer-oriented activities. Such uses would be known for shipbuilding, one for cargo were being developed along suburban expessways and shipping, one for fishing, one for recreational boating, beltways. In addition, construction required minimal and so forth. displacement of people, and the highways did not When the wharves, docks, and other waterfront adversely affect surrounding uses. facilities became inadequate for their original purposes, A related trend was the conversion of waterfront lands waterfronts were used for storage and industry. The old to vehicular parking areas, During the 1950s, for structures along Boston's central waterfront which had example, low-priced parking was the most profitable been used as shipping and receiving headquarters use of Boston's central waterfront.13 In many other cities were slowly converted to industrial, wholesale, and deteriorated structures were demolished to make way storage facilities. In Salem, Massachusetts, for example, for surface parking facilities. For years a large part of the Pickering Wharf stored coal and later oil and gasoline. Georgetown waterfront along the Potomac River in The demand for accessibility to inner cities and Washington, D.C.', has been used to store municipal remarkable technological advances in all major modes buses and other vehicles. of transportation strongly influenced the use of urban A second, perhaps more important, functional change waterfront lands. The movement and temporary storage was the development of major commercial airports on of vehicles were two functions delegated to the waterfront lands. The rapid development of larger, faster, waterfront. In cities throughout North America, elevated and noisier aircraft in the era following World War 11 expressways were constructed over waterfront lands. The required ever larger sites to accommodate airport Whitehurst Freeway in Washington, D.C., Gardiner Ex- runways and support facilities. In many cases, urban pressway in Toronto, and the Alaskan Way Viaduct in shorelines have been effectively monopolized by airport use, This was primarily due to the availability of waterfront lands in the early postwar years, even though many airports such as National Airport in Washington, D.C., Logan Airport in Boston, Lindbergh Field in San Diego, and San Francisco's International Airport now operate under restrictions resulting from intolerable noise levels over settled areas. The undesirable impact of such noise, while not always sufficient to deter incompatible development in areas below approach and departure paths, results in environmental degradation and conflict in many urban waterfront areas, Additional problems are created by the encroachment of airport-related land use on surrounding areas and the congestion of highways and roads with ground traffic generated by airports. But waterfront airports, located relatively close to intown air travel demand centers, are excused for their adverse environmental effects because they provide convenient access, even though the long-range impacts appear to be quite severe. 13 Virginia Farrell, Development and Regulation of the Urban Waterfront. Boston, Son Francisco, and Seattle (Princeton, N.J.: The Center for Energy and Environmental Studies, Princeton University, 1980), page 5. `1-21 For years, a large part of the Georgetown waterfront along the Potomac River in Washington, D,C., was used to store vehicles. 17 governments on all levels were moved to establish governing agencies to protect the public's health, safety, and welfare. Likewise, separate organizations were established to manage and protect special interests dependent upon water resources. The Rivers and Harbors Act of 1879 authorized the U.S. The expansion of waterfront airport areas experienced Army Cops of Engineers to regulate all activities in the 1950s and 1960s has ceased, quite likely affecting navigable waters. The Corps of Engineers permanently Increasing competition for close-in sites remains the principal federal regulatory agency but, among many different potential users, including resi- since 1899, other federal agencies, including the U.S. dents, businesses, and institutions, prevents airport exten- Coast Guard, Maritime Administration, U.S. Fish and sion as does ecological considerations. Wildlife Service, and Environmental Protection Agency, Since the turn of the century, several cities have have been given some jurisdictional authority to regulate developed waterfront areas info parkland and recre- shoreline activities. State governments have likewise ation areas. The motivation for this varied, but generally been concerned with regulating the management and if was done to stabilize the shoreline, improve drainage use of land and wafer resources, and the growth of the and flooding conditions, and enhance urban recre- number of state agencies having jurisdiction over ational opportunities. The parks were often designed shoreline activities mirrors what has occurred on the around a monument or historical site. This has been federal level. carried to the extreme in Washington, D.C., where over Since the turn of the century, public port authorities 80 percent of the Potomac and Anacostia shoreline have become an important management force direct- combined is under the jurisdiction of the National Park ing the use of urban waterfronts. Most public port Service.14 The 1901 plan for Washington devoted much authorities derive their authority and obligations directly attention to the banks of the Potomac. It set the pattern or indirectly from state law. In some states port authorities for waterside parks and green spaces which has operate directly under state statute as state-level gradually been completed as land has been filled and departments or special districts. Others are controlled sites for monuments established. More typical is St. Louis indirectly by states, with powers statutorily passed from where in 1934 the decision was made to move forward the state to municipalities or counties which, in their turn, with the Jefferson National Expansion Memorial and the create port authorities. levee was cleared from Eads Bridge to Poplar Street as The Toronto Harbor Commissioners were appointed in far wesf as Third Street. Thirty years later, this became the 1911 to coordinate administration of the port and harbor site of Eero Saarinen's famous arch and a 91-acre park In California the Board of State Harbor Commissioners built entirely by the federal government. Chicago offers was formed in 1863. By 1920 most major ports were another striking example. When Burnham presented his under the jurisdiction of governing organizations plan for the city in 1909, considerable public support charged with managing cargo transfer and storage and existed for his proposal to develop the lakefront as park. promoting industrial development. Over the years as the He depicted a new shoreline of beaches, lagoons, functional uses of waterfronts have changed, their islands, harbors, and cultural facilities, a vision that responsibilities have expanded to include operating shaped much of the subsequent development. Today, airports, bridges, transit systems, and recreational boat- nearly 24 of the city's 30 miles of shoreline consist of ing facilities. public parks and beaches.15 A third layer of jurisdictional responsibility has devel- Looking back at the different functional uses of urban oped at the city or county level. Municipal offices were waterfronts leads to the conclusion that the current wave formed to implement land use controls such as zoning of redevelopment projects represents a logical extension and subdivision ordinances, police power ordinances of a continuing cycle of reuse. For each city the scale concerned with health, safety, and fire protection, and and type of redevelopment will vary, just as it has in the the provision of public services such as roads, wafer, past, but basically the physical configuration and urban sewer, electricity, and so forth. form of the waterfront should continue to change in Each level of government has produced regulations response to new demands. and permitting programs designed to protect coastal Rise of Jurisdictional Responsibility resources. Consequently, waterfront development pro- posals have always been subject to more reviews and One very significant part of waterfront evolution has approvals than projects located outside waterfront been the redefining of jurisdictional responsibility in lands, and secondly, the number of permits and association With changing functional uses. Given that approvals needed has been steadily increasing. economic viability was hinged to urban waterfronts, Based on the post experiences of port cities, it is evident that urban waterfronts should continue to 14 National Capital Planning Commission, "The Urban River" (Washington: change in the future. In this context, waterfront develop- U.S. Government Printing Office, 1972), page 12. ment is a logical extension of the sequence of change 15 Heckscher, Open Spaces: The Life of American Cities, page 96. that has taken place throughout North America. 18 7C3 4511@ V-111@ @:S ANA < 01 42 0 7C) -ow w O'l 7f, 4i Alt w r 411 4 V@ C4 v wig -It 10 IWO. I Vill V4, TM 90 Characteristic of Urban Waterfronts Urban waterfronts are by definition the interface between land and water, and just as North American cities have noticeable similarities and differences, so too do their waterfronts. Waterfronts vary enormously in type and character as well as in size and age. While the term urban waterfront" customarily applies to the port areas of large metropolitan regions such as Boston, New Orleans, Baltimore, San Diego, and Seattle, it also refers to small resort towns with active harbors, commercial J, fishing villages, and many medium-sized industrial cities located along navigable waters. The ultimate success of any development effort will a 4 _110 depend upon how responsive it is to the unique qualities a defining a specific waterfront. When examining develop- menf opportunities there are several factors related to a waterfront's geographic location, urban context, and jurisdictional boundaries that must be taken into ac- count. Furthermore, a sensitivity must be developed for the dynamics of each factor; that is, it must be determined which conditions can dramatically change and which ones cannot. 20 Geographic Location Geographic location is a fundamental variable dis- tinguishing one urban waterfront from another It is obviously important because it defines a multitude of sense: obviously, a deep water harbor located on a environmental characteristics related to water, land, and large coastal bay is able to accommodate uses that an climate. Furthermore, since a city's location is fixed, inland river port with a narrow channel and shallow many geographic locational characteristics are not marina cannot. Nevertheless, there is another side to this subject to dramatic change. In short, geographic relationship: the greater the range of potential wafer- location influences the physical form and cultural related uses, the greater the potential competition and heritage of an urban waterfront. conflict between uses. The friction between the recre- Water Resource ational boating community and the shipping industry is one example. Waterfronts are located on different types of water Although it is usually advantageous to have a deep bodies--on coasfs, along rivers, at the terminus of wafer harbor, in Seattle the wafer depth is so great that shipping channels, or alongside boys and coastal if restricts the distance structures can be built out from inlefs--and the condition of these water resources varies the shoreline. As a result, piers were built along the city's significantly with each location, The more important central waterfront, angling out away from the seawall to factors are the dimensions and configuration of the make them long enough to accommodate cargo ships. body of water, the wafer resource dynamics, and the This design solution worked well until the development of water quality. To a great extent, these factors dictate the larger ships made the piers inadequate for cargo potential wafer-relafed uses of the shoreline. Further- handling. Moreover, the reuse of this part of Seattle's more, they combine to affect the engineering, design, waterfront continues to be constrained by this condition. and construction of new projects. But Seattle is an exceptional case, More often, if In general terms, the larger the dimensions of the waterfront development is stifled by water depths it is water body, the greater the range of potential water- because shallow conditions prohibit some wafer-ori- related uses. This relationship is based on common ented use. fun 4 `0 M. ?71 'X ...... 50 -7- 97, 07- 2-1 Located between two highway bridges spanning the Mississippi River, Laclede's Landing in St. Louis is undergoing major redevelopment. 21 The importance of the water's resource dynamics cannot be overestimated as a factor In coastal seaports, for instance, tidal fluctuations and wave action significantly affects waterfront development. The graphs below show the variations in the fide from day to day and from place to place for representative ports along the Atlantic, Gulf, and Pacific coasts of the United States. In Son Francisco and Seattle, breakwaters are necessary to protect marina slips and docking facilities from the destructive force of wave action. This require- menf increases development and maintenance costs. The flow dynamics of inland waterways also exert a strong influence over shoreline development. River ports must contend with dramatic water level fluctuations-- low flows following periods of drought and flooding caused by heavy rains or melting snow. If flow variations are severe enough, the development of urban water- Lunar data: A - Moon in apogee fronts can be extremely limited. I - last quarter Moon on Equator new Moon Typical Tide Curves for Atlantic and Gulf Coasts Ports Typical Tide Curves for Pacific Coast Ports DAY 10 11 12 13 14 15 16 17 18 19 20 DAY 10 11 12 13 14 15 16 17 18 19 20 Ft.A Boston I E Ft. (3 11 10 6 San Francisco A 4 Al ___A1 - - A A 2 V i V F V 7 A 11 ft I [I it 11 11 11 11 11 11 1 11 111 1If1 0 6 LL. LL I III III 11 -2 5 [I-IT I I lilt 11 it I I III 11 4 3 Seattle 2 2 110 ft 8 1 L_ I N 0 6 -1 4 New York 2 _V_ -V- 6 1 1.A A I " 5 -2 4 fi- a11 3 r% IL A I I TFIA 2 FFTV =I IJA Ketchikan 171 18 16 0 PP9 4 1 A 17 __1 r__@ It -1 1 12 Hampton Roads 10 3 8 It I A. A 6 I A j I A I A 7V7V- 7_0 LA 11=71M 4 0 UULI j_V_1 2 0 Savannah River Entr. -2 7 n11 6 n 11 ft it 11 it it 11 Anchoraqe 4 Ln 1.1.11 I)A TIT If It 11 1 1 32 3 L ITT 1TV I IfIIII11 30 1 1 1 If if If1 28 26 I U V 1 11.1 24 11 f A .11 1 it I If 1 11 11 0 Fir 22 11 1 11 1 1 11 1 11 1 11 1 11 1 -1 20 11 1 If If it 1 11 1 11 1 11 4* i H H If 11 18 11 1 11 11 If 1 11 16 11 1 It 1 11 1 2 Key West 14 1 11 1 11 11 1 1 12 1 1111 1 0 AVA@ 10 -1 8 6 Pensal a 4 2 2 I I^X 1 0 -2 Galveston Dutch Harbor 2 4 rN 2 TT_IT TT13 0 _211C -2 0 2-2 Typical 'Cide curves for Atlantic and Gulf coast ports. 2-3 Typical tide curves for Pacific coast ports. 22 To overcome the problems caused by wafer level fluctuations, waterfront development is confined to higher elevations. In St. Louis, for example, Laclede's Landing is located on an embankment separated from the water's edge by a levee, a roadway, and a railroad line. With this arrangement, the Landing is protected from floods but removed from the shoreline. Portland offers a slightly different illustration. There, a seawall stretches along much of the downtown shoreline with 1"9111H'111 1 land filled in behind it. In this instance, the waterfront is - Hiiii!] vertically detached from the water's edge. !T3 Water quality is another factor affecting the character of urban waterfronts. Coastal waterfronts obviously must endure the corrosiveness of saltwater, but salinity is just one measure of water quality Other important param- efers include turbidity, dissolved oxygen, temperature, and the type and concentration of chemical pollutants. An effective urban waterfront renewal plan must meet a critical precondition-clean water Without clean wafer, not even the most innovative and appealing project will succeed in attracting people and activity to the banks of a river or bay. Although in general terms water qualify has been vastly improved over the past 15 years, significant variations in conditions persist, as 2-5 A seawall is a significant feature of Portland, Oregon's waterfront. The illustrated in Figure 2-6. height of the Willamette River varies some 20 feet during the year. @g @',g-j I rP 2-4 The daily tidal fluctuation at Norfolk, Virginia, is approximately two feet, 23 Violation rate (percent) Violation rate (percent) Legend 100 Mississippi 100 Hudson Dissolved oxygen 80 80 Phosphorus 60 60. Fecal collform 40 40 20 20 19 1@72 1978 1966 1972 19 8 Violation rate (percent) Violation rate (percent) 100 Ohio 100 Delaware 80 80- 60 60. 40 40 - 20 20 0 0 1966 1972 1978 1966 1972 1978 Violation rate (percent) Violation rate (percent) 100. Willamette 100 - Potomac 80- 80- 60. 60- (data rot ovailoble@ 40@ 40 20 20 1966 1@72' 19 8 0 1966 19 2 '1978 Violation rate (percent) 100. Violation rate (percent) Rio G nde 100 - Alabama 80. 80- 60- 60- 40 40 - 0 20. 20 0 966 1@72' 1@78 0 119.66 . . . 1972 1978 Violation rate (percent) Violation rate (percent) 100- Red 100. Columbia 80- 80- 60- 60- 40- 40 20 20 01 1@66 1@72 . . . . . 1@78 1966 19'72 1@78 2-6 Changes in water quality parameters for selected rivers in the United States. 24 Land Resource The second primary locational factor is the land resource and the characteristics of the land can vary just as much as water resource conditions. The more I important factors are the amount of waterfront land, its configuration, its condition, and its ownership. Waterfronts can be measured in terms of shoreline length and total land area. The potential range of waterfront uses is obviously contingent on these dimen- sions. In the past when there was a need for additional waterfront land the response was to create new land by filling out info the water However, the environmental E 0 0 degradation associated with expanding the waterfront has led to an almost complete curtailment of this 0 activity. Thus, it is safe to assume that the amount of Cf a) waterfront land in a given location is relatively fixed. The inland boundaries of urban waterfront lands vary widely from city to city. In Boston, for example, the Faneuil Hall/Quincy Market-an area adjacent to the 0 city's waterfronf-is located over one third of a mile from the water's edge. In contrast, Seattle's central waterfront 2-8 The Faneuil Hall/Quincy Market area of Boston is located over extends less than 100 yards inland from the seawall. one-third of a mile from the water's edge. More often than not the perceived boundaries coincide with topographical variations or physical barriers such as The supply and configuration of waterfront land not railroad yards or highways. In some cases, jurisdictions only affects its use but also strongly influences the have officially delineated waterfront land for land pattern of urban development. Coastal seaports gener- planning and management purposes. San Diego's ally follow an urban form where either part of the city's waterfront, for example, is defined by the Unified Port perimeter is bounded by the shoreline and growth District. The district was established in-1962 by an act of occurs farther inland, or the body of wafer penetrates the state legislature. The enabling legislation conveys the inland and the city gradually envelopes if. Figure 2-7 tide and submerged lands within San Diego Bay to a of Son Francisco and Baltimore provides an example of unified port administration for management purposes, both concepts. MM6MP@5mi. 0 A( Salfimore San Francisco t I 2-7 Shoreline configuration influences the urban form of coastal cities. 25 Cities such as Son Francisco have waterfronts that face directly onto large expanses of water. In these cities waterfront development is more linear and wraps around part of the city. This convex configuration of the shoreline increases the miles of urban shoreline within a short radius of the city center Boston and New York are two other examples of this urban form. On the other hand, cities that resemble Baltimore have waterfronts that border channels or small harbors providing access to the open seas. In these cities the linear expansion of the waterfront is somewhat con- stricted by the size of the channel or harbor Generally there are fewer miles of urban shoreline in proximity to the central city. Baltimore is a classic example of this urban form. Although the city is technically located on the Chesapeake Bay its traditional city waterfront encompasses an inner harbor of modest dimensions. As a result the waterfront is not as expansive as, say, Son Diego's or New York's but it extends into the heart of the central city. Three distinct development patterns characterize cities located along inland waterways. As Figure 2-9 shows, cities such as Portland are bisected by a medium-sized river and urban development takes place on both sides of the water. Toronto is representative of cities located on the Great Lakes or a major river: the urban shoreline 1@17 marks one edge of the city and development occurs farther inland. The third urban form is exhibited by cities like Pittsburgh that are located at the confluence of two or more rivers and the shoreline wraps around much of the city. Toronto Porfleind-1- 2-9 Three distinct development patterns characterize cities located along inland waterways. Some cities are bisected by rivers and urban development takes place on both sides of the water (Portland). For cities located on the Great Lakes or a major river, the urban shoreline marks one edge of the city and development [V") occurs farther inland (Toronto). The third form is exhibited by cities located at the confluence of two or more rivers and the shoreline wraps around much of the city (Pittsb urgh). 0 26 The condition of waterfront land is an important development factor Composed of alluvial unconsoli- dated soil or compacted fill material, waterfront sites commonly have poor load-bearing capacities and erosion problems. Frequently foundations remain from previous uses and protective bulkheads are in need of restoration. In the Northwest many waterfronts were former sawmill sites. On Portland's south downtown waterfront, for example, 10 feet of sawdust and woodchips lie below In regions where there are drastic seasonal variations the surface of much of the site.' The original Seattle in temperature, precipitation, and wind conditions, there waterfront was destroyed in the Great Seattle Fire of are corresponding variations in the pattern and intensity 1889. When rebuilt, piers were erected on pilings over of waterfront use. Conversely, in regions where there are the water and aft 'ached to land by railroad trestles and minor seasonal variations, the pattern and intensity of timber walkways. The area between the pier ends and use is relatively constant. This is a simple but important dry land was gradually filled with earth, wood waste, concept: the economic viability of potential uses is ship ballast, and various types of refuse.2 defined by the functional capabilities of a waterfront More typical are waterfronts where a portion of the site. In Toronto, for example, the harsh winter weather original seawall is missing or damaged and large-scale prohibits many waterfront uses for several months of the erosion of the adjacent land has taken place. Seawall year. Consequently, the waterfront is used intensively deterioration can be caused by earth pressure, settle- during the summer. Yet waterfront development has ment, or repeated flooding and wave action. The U.S. proceeded successfully by following a strategy that Army Cops of Engineers conducted an investigation of encouraged a mixture of facilities to,generate year- the Potomac Park waterfront in Washington, D.C., and round activity but flexible enough to accommodate the found that portions of the seawall land had collapsed fluctuations in demand for certain uses, and areas adjacent to the wall had eroded. Further- Seasonal conditions affect freeze and thaw cycles, more, the study revealed that waterfroht land in East water level fluctuations, rates of erosion and siltafion, Potomac Park has subsided several feet in the past years storm intensity and duration, and many other environ- due to settlement and shrinkage of the filled material as mental characteristics, In short, the potential of any if dried oUt.3 In Seattle, surveys undertaken by the city's waterfront site will be determined in part by regional department of engineering in 1979 indicated the need climatic conditions. for a coordinated program of seawall improvements Microclimatic distinctions between waterfront land along the central waterfront. Studies revealed that the and the rest of the urban area also affect development gravity type seawall (constructed in 1916) had signifi- potential. In colder climates, for example, because cantly deteriorated. The report cited crack patterns, large water bodies gain and lose heat much more surface erosion, and support piling decay as major slowly than the land, there can be large temperature problems of the seawall's condition.4 In a report pre- differences at certain times of the year (usually spring pared by the Boston Redevelopment Authority on the and summer) between the water body and the land. condition of the harbor, the poor condition of piers, bulk- This imbalance causes offshore and onshore breezes, heads, and seawalls was listed as a major problem.5 When the water body is colder than the city, the worm air of the city rises, drawing in cold air from the wafer. In the fall and winter when the land begins to turn cold Climate and the water is still warm, the reverse occurs. However, since cities generate heat, the land is rarely cold The third primary locational factor is climate, Obvious- enoughto cause significant offshore breezes.6 ly, regional weather conditions affect the use and form Waterfront exposure to winds either caused by land of urban waterfronts. The more significant regional and wafer temperature differences or storm systems can distinctions are seasonal variation and microclimate. increase the duration of cold in the winter and modify high temperatures in the summer compared to down- town conditions. Furthermore, waterfront sites have more At Benkendorf, "Planning for Successful Waterfront Renewal," Environ- instances of fog and mist than inland sites because the mental Comment (April '1981), page 15. 2 Makers, Alaskan Way Seawall and Promenade Guideplon-Seottle warmth of the city evaporates the moisture. And finally, Central Waterfront (Seattle @ author, October 30, 1979). page 4. land and water temperature differences and wind 3 Bernard Johnson, Inc., "Report on the Condition of and Recommenda- direction affect the relative amount of cloudiness and tions for Future Investigations of the Seawall, Potomac Park, Wash- sunshine during a season.7 ington, D.C." (Baltimore: US, Army Corps of Engineers, March 1980), page 13. 4 Makers, Alaskan Way Seawall, page 5. 6 Waterfront Precedents (Toronto: City of Toronto Planning and Develop- s Boston Harbor. Challenges and Opportunities for the 1980s (Boston: ment Department, 1976), p. 34. Boston Redevelopment Authority, n.d.), page 5 7Ibid. 27 facilities. More commonly, urban waterfronts are com- posed of a mixture of industrial, commercial, residential, recreational, and transportation uses. Furthermore, basic distinctions between waterfronts can be made in terms Urban Context of the water dependency of the uses. There are water dependent uses, water-related uses, and uses that are Urban context is an expression frequently used but neither dependent on nor have any relationship to the seldom understood. It is used here to refer to the unique water resource. set of relationships or linkages that exist between a city Water dependent uses, as the term implies, are those and its waterfront. In this sense, urban context means which cannot exist in any other location but on the more than simply the location of the shoreline within a water. Obviously included in this category are the port city; it encompasses the pattern of land and water uses, terminals for general commerce, ferry, and passenger the constituency for those uses, historical and cultural services, the marine construction and repair facilities, the resources, access and circulation, and visual quality. marinas and moorage areas, and the tug and barge Unlike many of the geographic variables previously companies. discussed, most of these factors can be significantly Water-related uses are those which may be helped by altered. location on the water, but could function away from the Urban context is largely defined by the land and waterfront. In other words, if real cost savings or revenue water uses. In this respect there are two basic param- advantages can be attributed to a waterfront location eters: type of use and water dependency. Type of use (unrelated to land rents or costs), the use is considered refers to the traditional urban development classifica- water related, Included under this category are single- tions. For instance, some waterfronts are heavily indus- user terminals, lumber mills, seafood processing plants, trialized, reflecting either current activity or the past port- sand and gravel companies, petroleum handling and related functions. Other waterfronts are primarily resort processing plants, parks, public resorts, aquariums, and areas, and still others are dominated by commercial restaurants. 4 jc'x;@ '77 E@@ --Z-t Iva 2-10 Baltimore's Inner Harbor is composed of a mixture of industrial, commercial, transportation, and recreational uses. 28 A The combination of uses reflects the role of the waterfront within an urban area and the relative "J compatibility of particular uses; thus, each urban waterfront is unique. More importantly, the urban in- frostructure-fhe systems and services supporting the uses--also varies depending on the type and water dependency of the waterfront uses. The infrastructure of many of the wafer-dependent and wafer-related uses has significantly changed. As a result, some of the more traditional waterfront uses- _4 icularly the industrial ones-have either relocated to part shoreline sites outside of urban areas or ceased to exist. On the other hand the enormous infrastructural z_; investment and need for water access makes some of !*i4i",- 7 these uses virtually immovable. It was these circum- stances that led to the recent decision to expand and 2-11 Cargo terminals like this one in San Francisco are one type of water- upgrade the Seattle Ferry Terminal in its antiquated dependent use. central waterfront location instead of building a new Waterfront uses that are neither dependent nor related facility elsewhere. to the water are those which can locate equally well away from the shoreline. Included under this category Waterfront Constituency are apartment buildings, hotels, taverns, private resi- A waterfront's urban context is partially defined by the dences, warehouses not directly associated with water- characteristics of its constituency. Actually there are two borne commerce, and retail sales activities. constituencies: a primary group composed of people who use the waterfront as a residence, place of work, or recreation resource and a secondary group of people who occasionally go to the waterfront, have no direct involvement with if, but feel the water's edge is a public resource and are concerned about it. The characteristics of both groups vary significantly depending on the mix of land and water uses. In some cases there is a special constituency that exists because of a specific physical or cultural feature of the city's shoreline. Usually this is a small but vocal group that has a narrowly defined interest in the waterfront. The profile of the primary constituency is a reflection of the major waterfront uses. If a waterfront is mostly industrial then attention is focused on issues related to the water environment such as operational efficiency, L employee parking, truck access, and so forth. Industrial uses that are labor intensive often carry a good deal of political clout when workers organize to protect their interests. In New York City, for example, waterfront redevelopment plans have been stymied in the past by the longshoremen's union. The organization fought the proposals because they felt redevelopment would jeopardize their jobs. 2-12 Waterfront restaurants are a water-related use, 29 Many urban waterfronts have a special user group that exists because of unique physical or cultural features of a city. Often this group forms a strong constituency affecting shoreline activities beyond their immediate area of activity. San Francisco's Fisherman's Wharf is a classic example. The Ferry Terminal in Seattle and the New England Aquarium in Boston are other examples of waterfront uses having special constituen- If the waterfront is occupied by residential uses, the cies. primary constituency may have a different set of priorities. People who live on the waterfront are con- Waterfront Heritage cerned about public safety and quality of life issues. Residents fend to.evoluate development plans in terms The urban context of a waterfront is partially defer- of property values and urban amenities, mined by its heritage. In light of the fundamental role When recreational uses exist along the waterfront then navigable waters played in the urban development of the primary constituency will more likely place impor- North America, it comes as no surprise that many tance on environmental conditions such as water quality, waterfronts are rich in resources of historical and cultural maintenance of open space, traffic congestion, and significance. The type and importance of these re- public access, just to name a few. This user group may sources varies depending on the age and location of be opposed to development projects perceived as a the city. Some of the more common ones include: threat to the recreational use of the waterfront. military installations, industrial buildings, markets and Baltimore is a good illustration of this user group trade centers, shipping terminals, warehouses, fishing reaction. When the Inner Harbor redevelopment pro- facilities, and municipal buildings. Depending on the gram was initiated the intent was to make significant status of a particular resource in terms of its historic public waterfront improvements to attract private invest- designation, ownership, and condition, the heritage of a ment and development. Dilapidated structures were waterfront can either produce many opportunities for removed and new bulkheads constructed. However, the adaptive use or prohibit reuse altogether market for retail development was not immediately The distinctions between restoration, renovation, and apparent, Therefore, interim landscaping was provided adaptive use of structures are relatively clear8 The which formed a pleasant setting for outdoor festivals and purpose of restoration is to refurbish a building's original associated recreational uses. A year or two later, when architectural details as closely as possible. The renova- the Rouse Company's plans for a retail commercial tion of a structure refers to the physical upgrading of facility were revealed, public opposition surfaced in materials and support systems while retaining a build- protest to the loss of open space and forced a cify-wide ing's original use, Adaptive use, on the other hand, is the referendum, The referendum passed in 1978 and the process by which structurally sound older buildings are project turned out to be an overwhelming success. developed for economically viable new uses. Such Since urban waterfront land is generally a limited buildings may be historically important, architecturally resource, the primary waferfronf constituency often has distinctive, or simply underutilized structures which exhibit what can be labeled a "lifeboat mentality." That is, signs of life under a facade of age and neglect. Since once a user group is entrenched in a waterfront many historic waterfront uses are no longer viable, location, they do not want to share the resource with adaptive use holds the greatest promise for many urban others even if if is for a similar type use. waterfronts, The profile of the secondary constituency varies The cornerstone of Toronto's harborfront project is the depending on the socio-economic characteristics of an Terminal Warehouse Building, built in 1927. It is one of the urban population, regional differences, and other fac- first poured-in-place concrete structures in Canada and fors, Although this group does not have the direct has eight floors with a total of one million square feet of involvement of the primary constituency, it can be very floor space. The building is being redeveloped as a important in determining waterfront policy. In fact, if mixed-use structure containing commercial and retail waterfront lands are vacant or the viability of existing space, offices, and residential units. uses is questionable, then the secondary constituency The redevelopment of Laclede's Landing, St. Louis's fakes on more importance. obsolete 19th century riverfronf warehouse district, com- The controversy over the Georgetown waterfront area bines restoration and adoptive use. Asphalt has been of Washington, D.C., shows the importance of the removed from the old narrow granite block pavers secondary group. In that case, a proposed waterfront restoring the streets to their original form and the redevelopment project was opposed by citizens who felt architecturally significant cast-iron building facades the waterfront should be designated as parkland, have been recreated. The interiors of the buildings have exclusive of commercial uses. Although the city govern- been adopted to accommodate a mix of retail, office, menf supported the project, the objections voiced by residential, and entertainment uses, the citizens were strong enough to delay the project and force the developer to make significant changes in ULI-the Urban Land Institute, Adaptive Use: Development Economics, terms of project use allocation and design. Process, and Profiles (Washington: author, 1978), page 3. 30 Boston's waterfront heritage has produced a variety of redevelopment opporlunities. Much has already been written about the success of Faneuil Hall and Quincy Market as a commercial and retail center Certainly a large part of the success can be attributed to the historical importance of the structures. This is also true for Union Wharf, the last of four historic wharves to be recycled on Boston's waterfront. At Union Wharf, a granite warehouse built in the mid 1840s has been converted to residential and office condominium units. Boston's largest adaptive use project is the Naval 1h," Shipyard, located across the harbor in Charlestown. The Navy Yard was decommissioned as a shipbuilding and repair facility in 1974. For over 175 years the yard had played an important role in military history and techno- logical innovation. The redevelopment includes the 23- acre Boston National Historic Park, home of the U.S.S. 2 Constitution, and a 16-acre park which provides access 7W to the harbor for Charlestown residents long cut off from -73 their waterfront by the Navy Yard. The remainder of the site is being developed for mixed residential/commercial activity which, When completed, will include 1,200 new -------------- housing units, a 700- to 1,000-room hotel, and commer- cial, office, loft, and light industrial space. Where c possible, these uses will be incorporated in the reuse of the Navy Yard's historic buildings. New construction will be added in other areas. These examples are indicative of the way historical and cultural resources can enhance waterfront use. The @A' ai key is to recognize that each city will have unique A_@ Y, opportunities based on its own historical development. In tkA cities such as Boston and St. Louis, waterfront heritage has more meaning than in cities like San Diego, where 2-14 The redevelopment of Laclede's Landing, St. Louis's obsolete 19th cen- urban development has taken place much more tury riverfront warehouse district, combines restoration and adaptive recently use, XX* %P 2-13 Union Wharf is the lost of four historic wharves to be recycled or Boston's waterfront, 31 built along the Toronto waterfront during the mid-1960s, separating the heart of the city from the shores of Lake Ontario. Many other examples could be cited; the Mark Twain expressway in St. Louis, the Alaskan Way Viaduct in Seattle, and Boston's Central Artery are a few that come to mind. In San Francisco, public recognition of the impact of a waterfront expressway resulted in a strong political movement. In the 1960s state engineers constructed an overhead two-level freeway along the waterfront from the south, crossing the face of the famed Ferry Building of the foot of Market Street. Public outrage ran high at this "Chinese Wall" along the waterfront. In a well- organized campaign, voters forced the Board of Supervisors to veto all further freeway plans. The Embarcadero Freeway was left unfinished, with stub ends of mid-waterfront, and was never extended all the way along the waterfront to the Golden Gate Bridge as had been originally planned. Notably, in halting the Emborcadero Freeway, the city forfeited $280 million in federal highway funds. But an open waterfront, it seemed, was worth it.10 Obviously, transportation patterns changed in these Waterfront Access cities. With the completion of bridges and tunnels, many ferries were put out of operation and, in some cities, the Just as human life is dependent upon a circulation original street configurations which were compatible system, the life of a city is supported by a network of with ferry crossings became obsolete. New roadways transportation elements. In this respect, accessibility-the were needed to serve the bridges and tunnels, and as relative ease of movement to and from a sife-is an these were constructed waterfronts were consumed by important characteristic of any urban location. For the approaches to these facilities. waterfronts it takes on even more significance because In some cities ferry service continues to exist. In Seattle, of conditions inherent to land and water transportation. for example, Puget Sound can only be crossed by boat Accessibility is a function of travel time, distance, and and the central waterfront ferry terminal is a vital comfort. Thus, in theory, the proximity of urban water- component of the regional transportation system. In 1978, fronts to city centers would make them highly accessi- 7.5 million patrons used the ferry terminal of Pier 52.11 ble. This is rarely the case, however, unless a waterfront Passenger ferry service operates in San Francisco Bay has a long history of public use. Typically a variety of connecting the downtown waterfront with Sausalito and physical, institutional, and psychological barriers exist, other jurisdictions. In most cases, however, ferry opera- limiting land and water access. tions cannot be economically justified where bridge or Physical barriers are the most imposing obstacles tunnel alternatives exist. This is the case in San Diego restricting waterfront access. In many instances the where a proposal surfaces every few years to revive the construction of modern bridge, tunnel, and highway ferry to Coronado, only to be rejected because of the systems across waterways and along urban shorelines costs involved. In general, the feasibility of water was done of the expense of waterfront accessibility. The transportation depends on high demand, multiple placement of highways along urban waterfronts was not destinations, and seasonal stability of the market. accidental-waferfronf land was available and under- Railroad facilities are another type of physical barrier utilized. Consequently, an urban waterfront may be easy commonly found on urban waterfronts. Railroads were to get near, but difficult to get to. built to support shipping and industrial uses at a time The proliferation of highways, bridges, and tunnels was when waterfront access was not a major concern. The dramatic. In Manhattan, for example, 94 percent of the competitive edge afforded port cities with rail connec- waterfront is lined with major highways and 24 major tions far outweighed the importance of general city bridges span New York City's waterways.9 The Gardiner access. Expressway (an elevated limited access highway) was 10 Harold Gilliam, "Son Francisco: Mystique Versus Economics," Urban 9 Robert F, Wagner, Jr. "New York City Waterfront: Changing Land Use Waterfront Lands (Washington: National Academy of Sciences, 1980), and Prospects for Redevelopment," Urban Wdlerfront Lands (Wash- page 103, ington: National Academy of Sciences, 1980), page 88. Makers, Alaskan Way Seawall, page 13, 32 In Toronto during the latter part of the 19th century, KOM"' land that had been intended for a public promenade P along the lakeshore was used by the railroads for loading and unloading freight. By 1908 there were from nine to 16 tracks at street level the length of the W waterfront, separating the harbor from the business 17 center of Toronfo.12 Many cities are similar; railroad facilities block much of the waterfront in New York City, New Orleans, and Chicago, just to name a few. Other physical barriers to waterfront access are formed by utility structures and waste treatment facilities A occupying urban waterfronts. In many cases, steam turbine and gas turbine electrical generating plants w ere built at waterfront locations, restricting access to the water's edge. The same is true of wastewater treatment facilities which are located along many urban shorelines. Institutional barriers restricting waterfront access are obstacles created by legal, political, and economic conditions. In other words, access is physically possible but not allowable for various reasons. Military installations Al and government research facilities are two prevalent % examples. These uses tend to be exclusionary and self- NN % contained and, depending on the specialized use of the facility, may either hinder access or preclude it completely. Fort McNair, located at the confluence of the Washington Channel and the Anacostia River in Washington, D.C., forms an institutional barrier to the urban shoreline. In San Diego, the U.S. Navy Training NN Center restricts direct public access to a portion of the NA waterfront. Psychological barriers to waterfront access deserve close attention because even if physical and institutional obstacles are removed, people will continue to stay NIN away from the shoreline if they think it is inaccessible. N1 Obviously, by removing the other barriers, some of the psychological impediments will vanish with them. Nev- A X\ ertheless, psychological barriers can only be totally removed by changing the public's image of the waterfront as a difficult place to get to. For example, the Toronto Railway Viaduct which allowed unimpeded road access to the waterfront did not significantly change the public perception of the railroad as a p hysical barrier to the harbor In addition, psychological barriers are derived in part from impressions of water- 1kA front safety, user groups, and activities occurring on the waterfront 12 "Harbourfront Site History" (Toronto: Harbourfront Development Corpora- tion, 1978), page 16. -15 Significa 2 nt physicc bcrrier@separe dowrtown Tacoma, Washingto*r' 4 Y (far right) from its wcterwo barriers or removed from view. In San Francisco, for instance, the configuration of the urban shoreline, the expanse of the bay, and the city's dramatic topography combine to make the waterfront visible from several locations. Quite the opposite is true in Baltimore, where the size and location of the Inner Harbor limit the visual accessibility of the city's waterfront, The physical components of a waterfront only partially determine its visual character. The other equally impor- tant determinant is viewer response to those physical Visual Character components. It is a function of two variables: viewer exposure and viewer sensitivity Vision is an active sense Waterfronts are special visual environments. Someone and responses to visual stimulii are strongly conditioned once remarked that people look better near the water. by these two factors. This could also be said of urban structures. A waterfront's Viewer exposure refem to the position of the observer high visual interest is attributable to its form, texture, and in relation to a city's waterfront, A waterfront's visual special features. Although there are certain features character varies with the distance, elevation, and common to urban waterfronts, each setting has a unique movement of the viewer., As distance increases, the visual character. If is determined by the assortment of ability to see details of an object decreases. The higher physical elements composing a waterfront and by the the point of observation, the greater the range of vision. viewer response to these elementS.13 For moving observers, the viewing time combined with Conceptually, landscapes are made up of edges and the speed of travel determines what objects can be spaces. The edges give form to what the eye sees by seen on a particular route. providing spatial definition. In this respect, perhaps there Viewer sensitivity refers to the receptivity of different is no stronger edge than where land and water meet. viewer groups to the visual environment. That is to say, The two-dimensional configuration of the water's surface people do not interpret visual sfimulii in an identical way. is in sharp contrast to the vertical elements found along Indirectly, people's values, opinions, experiences, and the shoreline. In Baltimore, the Inner Harbor is partially preconceptions influence their impression of a water- framed by the World Trade Center, the National front's visual resources. Recreational boaters, for in- Aquarium, and Harborplace. stance, do not see shipping terminals the some way Waterfronts usually have a rich visual texture. It is dock workers do. This is an extreme example, of course, produced by the Variety of surface materials used to but it serves to make the point that visual character i's a construct waterfront facilities and the weathered condi- function of its visual resources and the viewer response tion that distinguishes the old from the new. Materials to those resources. such as wood, granite, and brick have a greater surface coarseness than steel and glass. Furthermore, the Government Jurisdictions movement of moored boats bobbing in the water and nautical flags flapping in the breeze enhance the visual A fundamental characteristic of urban waterfronts is textures of a waterfront, the structure of government jurisdicfions charged with Vegetation influences the visual character of urban management responsibility, Although important varia- waterfronts. Generally, plant materials soften the hard tions exist, waterfronts generally have a jurisdictional appearance of shoreline structures. Outside of waterfront structure that far exceeds the typical urban governmen- parks, however, shoreline vegetation is usually sparse. fal framework in both size and complexity. This is One exception is San Diego where much of the urban because the presence of the water resource introduces shoreline is dotted with palm trees, and buildings are additional and overlapping agencies of each level of typically surrounded with shrubbery and ground cover. government. Furthermore, numerous special purpose The visual excitement of an urban waterfront is government groups have authority over specific frequently enhanced by the presence of features that shoreline resources and uses. In Baltimore, for example, are only found along the water's edge. Such elements there are 30 state, local, and federal agencies that as ferry buildings, marinas, ship repair facilities, and the have some form of compulsory jurisdiction over the city's like stimulate interest because of their novelty Often waterfront.14 This is generally not as severe in Canada; these structures are visual landmarks and serve as a the Toronto central waterfront has only `10 public focal point within a waterfront setting. agencies emanating from four levels of government with Urban waterf ronts vary tremendously in terms of their jurisdictional control.15 visual accessibility. Some are easily visible from many areas of the city while others are hidden by physical 14 Ann Breen Cowey, Robert Kaye, Richard O'Conner, and Richard Rigby, Improving Your Waterfront: A Procticol Guide (Washington: U.S. Government Printing Office, 1980), page 11. 13 William G. E. Blair, "Visual Resource Mcnagement," Environmental 15 Dennis Wilson, "Planning for a Changing Urban Waterfront: The Case Comment (May 1980), page 7, of Toronto" (Toronto: York University, 1978), page 12. 34 Federal Involvement Several different federal agencies administer pro- grams that affect waterfronts, including the Office of Coastal Zone Management, the Economic Development Administration, the National Park Service, the Environ- mental Protection Agency, the Department of Housing privately owned, and all contiguous wetlands that are and Urban Development, the.Department of Transporta- periodically inundated during storms or floods. A Corps tion, the U.S. Fish and Wildlife Service, and the U.S. Army decision to issue a permit is based on whether the Corps of Engineers. Although each of these agencies overall public interest would be served, This is deter- administer programs affecting urban waterfronts, the mined by considering benefits and costs of the project, ones with direct regulatory responsibility deserve further environmental and fish and wildlife concerns, flood mention. protection, recreational needs, and other matters. The U.S. Army Corps of Engineers is one of the most The U.S. Fish and Wildlife Service is charged with important coastal management agencies. In addition to maintenance and enhancement of fish and wildlife building and maintaining jetties, channels, and other resources and protecting the rights of the public to use public works, it administers two regulatory permit navigable waters. They notify the Corps of Engineers programs: one to review all activities affecting naviga- regarding the effect of any proposed development ble wafers (authorized under Section 10 of the Rivers and project on fish and wildlife resources. Over the post 10 Harbors Act of 1899) and another to regulate dredge years this agency has been the most vocal opponent of and fill activities in navigable wafers (authorized under developments in coastal areas. It does not issue a Section 404 of the Federal Water Pollution Control Act permit unless developers provide mitigating measures in Amendments of 1972). Since most waterfront develop- their proposals to reduce potential disturbances. menf activities involve some dredging and filling, there is Protection of water quality is the responsibility of the some overlap between these two permit programs. Environmental Protection Agency, Therefore, EPA reviews Navigable waters have been defined very broadly for the quality of dredge spoils and the site into which they dredge and fill purposes to include: all tidal waters to are to be placed. The legislation under which the EPA the mean high-tide line, all wetlands that are wholly or operates allows the agency to overrule a Corps dredge partially covered at high tide, whether publicly or and fill permit on environmental grounds. @J I 4 p, '@l V, 41@ T X J t 2-16 The visual excitement of an urban waterfront is enhanced by the presence of features found only along the water's edge. The fishirg fleet in New Bedford, Massachusetts, is one example. 35 state's coastal zone management program has specific policies concerning particular uses in different types of coastal environments. On the other hand, some states such as Texas rely on performance standards that do not specify particular uses to evaluate coastal projects. The extent to which other federal agencies are States employ different methods for determining the involved in an urban waterfront depends on the type of inland boundaries of the coastal zone. Some use fixed uses and funding commitments found in a particular city. setback lines, others use elevation contour lines, and still In New York City, for example, as many as 35 federal others conform the boundaries to physical elements and agencies have been identified as having some degree political units. In almost all cases, urban waterfronts are of responsibility for the city's waterfront.16 In any event, included within a state's coastal zone boundaries.17 the National Environmental Policy Act (NEPA) requires Federal guidelines dictate that geographic areas of each federal agency to prepare a detailed statement particular concern include "transitional or intensely of environmental impact on every major federal action. developed areas where reclamation, restoration, public If is circulated for comment to other federal agencies, access, or other actions are especially needed." state and local governments, and the public. Obviously this part of the coastal zone management The Office of Coastal Zone Management administers program is very relevant to urban waterfronts. State use a voluntary federal program that encourages states to of this designation can vary significantly: some states use establish planning and management systems for coastal it to restrict development and other states use if to land resources. Since its inception in 1972, the program encourage waterfront development. has had a strong environmental protection orientation. Not surprisingly, states have adopted different types of However, a more balanced approach which incorpo- organizational arrangements to implement their coastal rates to a greater extent economic development zone management programs. In general, two basic considerations seems to be emerging as states begin to approaches are used: delineating coastal management focus on older urban waterfronts in need of redevelop- responsibilities within existing governmental agencies or menf. enacting new comprehensive legislation. In some states, such as Massachusetts and Wisconsin, coastal zone State Involvement regulations are integrated info existing state and local While the federal initiative basically establishes only a regulatory agencies. Texas fakes a somewhat different broad framework, state agencies are directly involvedin tack, using existing state authorities to implement its managing urban waterfronts. Many programs in the coastal program but regulating only matters of state or area of environmental protection and control of critical national interest. Local concerns are reserved for local land areas are implemented, administered, or guided decision makers. at the state level of government. Although significant Other states have legislafed new management sys- differences exist from state to state, more often than not tems and special permit procedures to implement their waterfront development is subject to many agency coastal progams. Washington requires permits for all approvals. Almost all states have environmental profec- substantial development in the coastal zone. While fion laws and resource management agencies that certain uses--such as single-family residences, docks regulate shoreline development. and bulkheads for single-family residences, and certain While significant differences exist among s -tafes in their agricultural uses--are exempt from permit requirements, coastal zone management programs, each state par- all other substantial developments are included.18 ticipating in the federal program is required to: California also has comprehensive coastal legislation. � identify permissible land and water uses The impetus for this legislation was a public initiative, � identify coastal zone boundaries Proposition 20 (California Coastal Zone Conservation Act of 1972); however, it created only an interim coastal designate geographic areas of particular concern o detail organizational arrangements management program. Permanent legislation was en- *determine implementing authority acted in 1976 (the California Coastal Act) and requires permits for all major developments within the 1,000-yord There is a good deal of latitude built into these coastal zone. Local governments are responsible for requirements. As a result, programs are tailored to reflect developing detailed programs for implementing state individual state priorifies. For example, Washington policies. Until they are developed and certified, how- State's Shoreline Management Act of 1971 grants priority ever, the State Coastal Commission issues permits as to water dependent uses and to uses which increase the they did under Proposition 20. public's ability to enjoy the shoreline. Consequently, the 11 Marc Hershman, et al., Under New Monagement-Port Growth and 16 L. Michael Krieger, Waterfront Redevelopment Strategy: Phased Emerging Coastal Management Progrorns [Seattle: Division of Marine Redevelopment of the Inner Harbor Waterfront (New York: The Port Resources, University of Washington, 1978), page 34. Authority of New York and New Jersey, 1979). page 24. 18 lbid, page 39. 36 Each coastal zone management program deals with urban waterfronts in a way that reflects the major issues facing the state. It is important to know that distinctions exist in terms of use priorifies, boundaries, permitting requirements, and the implementation process. Local Involvement The greatest variation in the structure of jurisdictional bridges, and is a major landowner in the area. The state responsibility for urban'waterfronts is found at the local enabling charter granted Massport broad government level of government. In most cases there are county and powers, including bonding authority, land use controls, city offices that administer land use regulations, ordi- and power to establish user charges, such as landing nances concerning health, safety, and fire protection, fees, docking fees, and folls. and provisions for public services such as roads, wafer, The San Diego Unified Port District is a special purpose sewer, and utilities. In this respect no two urban areas are exactly alike. unit of government created in 1962 by an act of the Furthermore, many waterfronts fall within the jurisdiction state legislature and approved by area voters in of commissions or authorities established to manage a November of that year The District was established to regional water resource. The model for this type of manage the harbor, operate the international airport at agency is the San Francisco Bay Conservation and Lindbergh Field, and administer the public tidelands Development Commission (BCDC). Established in 1965, it surrounding San Diego Bay. The enabling legislation has authority over a major coastal resource that is conveys the tide and submerged lands within San Diego bordered by nine counties and 32 cities. BCDC has Bay to a unified port administration in order to further the permit authority over San Francisco Bay fills and development of commerce, navigation, fisheries, and dredgings and over a 100-foot strip of shoreline around recreation. San Diego Bay covers 23 square miles, the bay in order to assure public access. stretches 14 miles from Ballast Point to the salt marshes of the South Bay, and washes 54 miles of shoreline. The port Port Authorities district encompasses an area which includes the cities of San Diego, National City, Chula Vista, Imperial Port authorities are an established management Beach, and Coronado. If is authorized, by its enabling structure common in commercial harbors throughout the legislation, to levy property taxes within those five cities. nation. In most cases, these are public agencies The district is governed by a seven-member Board of specifically created to manage local port operations. Port Commissioners, whose members are appointed to Port authorities normally have broad legal powers, four-year terms on the Board by the city councils of the including bonding authority and eminent domain, and five cities the district encompasses. The San Diego City often function as entities separate from local govern- Council appoints three commissioners and each of the ment. They are created either by state legislation as other city councils appoints one commissioner. Policies stafe-level departments or as independent special by which the District operate are established by the authorities. Board of Port Commissioners. Daily activities are super- A port authority serves as an overall management vised by the Port Director and carried out by the District structure, with responsibility for publicly owned port staff A permit from the Commission is in addition to terminals, as well as regulatory control over privately whatever other permits may be required, owned operations. In addition, a port will have land use It is apparent from the variations in waterfront planning authority for properties within its jurisdiction. San characteristics that each city has unique shoreline Diego and Boston are two such examples. development opportunities. For this reason, every devel- The Massachusetts Port Authority (Massport) is an opment plan should be born out of a comprehensive independent, special purpose governmental unit estab- investigation of the factors related to a waterfront's lished by the commonwealth of Massachusetts in 1956. geographic location, urban context, and jurisdictional The port authority has management control over cargo boundaries. Ignoring any one characteristic, no matter transfer throughout Boston Harbor Massport also man- how insignificant, invites problems to surface later in the ages Logan International Airport, operates several development process. 37 Identifying D lop ent Opportuniti Waterfront developments are complex and challeng- ing but also very rewarding when successfully com- pleted. Determining whether an opportunity exists to develop a waterfront area depends upon the incentives and constraints that distinguish a site, However, local governments can encourage development with a variety of responses, ranging from innovative co- development concepts to traditional urban revitalization programs. Appreciating the value of these public initiatives requires understanding the factors that sfimu- late and hinder development. A Incentives Incentives for developing waterfronts are both directly and indirectly related to waterfront conditions. One of the more significant factors stimulating development is the dramatic improvement in environmental quality. The nation's effort to clean up its waterways, begun in 0 S earnest in the mid 1970s, is beginning to produce the desired results. In addition, many waterfront industries have either relocated outside urban areas or discon- tinued operations. The air and water pollution generated by waterfront uses has been reduced by the implemen- tation of point source controls. Consequently, urban waterfronts are becoming cieaner and land along the wafer's edge is suitable for uses that were unthinkable a decade ago. 38 Another factor, and one which does directly relate to waterfront conditions, is the change in the functional role of urban waterfronts. At one time the commercial life of cities depended almost exclusively on the activities of public to use and enjoy waterfront sites is a rbajor their ports.. This is no longer the case; the shift in concern in many cities. In this respect, the 1978 urban importance along with recent revolutionary changes in recreation study by the Department of the Interior cargo handling and steadily decreasing waterborne identified the recreational potential of waterfronts as a passenger travel has left large sections of urban key recreation challenge) The recreation potential of waterfront land unused or underused. waterfronts goes beyond the traditional water-based The general renewed interest in inner city living is sports and programs; if also covers a broad range of stimulating development, and waterfront locations are activities related more to urban living. prime attractions for new or converted residences, Finally, one other factor which contributed to water- offices, or shops near city or neighborhood centers. front development during the 1970s was the availability Coinciding with this preference for urban places is the of federal funding for public improvements. In that attractiveness of adaptive use or preservation of older decade, most cities used one or more sources of federal structures. Tax benefits for structures placed on the financial assistance in their waterfront development Notional Register of Historic Places have helped encour- projects. This is not to imply that waterfront development age creative reuse of old buildings. Furthermore, the is dependent upon government aid. Johns Landing in rising costs of new construction make conversion of Portland, Oregon, and Palmer Point in Greenwich, existing structures economically attractive, Waterfronts Connecticut, for example, are private development often possess exciting opportunities to reuse older ventures. Other projects have been successfully devel- structures. These opportunities are enhanced by the oped entirely through private sources and certainly positive historical image urban waterfronts hold in North future projects will have to rely on similar means of America. financial support. However, in many cases, federal The steady rise in travel costs coupled with the funding was the catalyst for attracting private investment increase of leisure time has produced a growing in waterfront areas. demand for recreational opportunities in urban areas. Because many residents feel that cities have neglected Committee on Urban Waterfront Lands, Urban Waterfront Lands their waterfront resources, providing opportunities for the (Washington: Notional Academy of Sciences, 1980), page 9, Ji 0 L D L 0 > 17- 0 C: .0 Vv %AAAA M 1E 0 0 0 C Cf) A CL 3-1 Son Francisco's development opportunities, like other cities, are defined by the unique combination of incentives and constraints that distinguish its waterfront. 39 There are other serious problems involved with the purchase of urban land for waterfront redevelopment. These include fragmented ownership of properties, restricted property rights, such as easements and deed restrictions, and problems identifying and locating the actual owners. Moreover, waterfront locations have Constraints traditionally been used heavily for railroad, utility, and highway right-of-ways, which severely complicates at- Successful waterfront projects throughout North Amer- tempts to assemble land. In addition, special waterfront ica attest to the strength of the development incentives. features such as eroding shorelines and legal questions Moreover, many recent projects have a mix.of recre- regarding ownership of submerged lands and riparian ational, residential, and commercial uses that clearly water rights may present additional obstacles. demonstrate the tremendous development potential of Development is also difficult because of the unusual urban waterfronts. Nevertheless, there should be no physical problems urban waterfront sites tend to have. illusion about the ease of waterfront development. The severity of the problems vary widely depending on Beyond the inherent difficulties of any substantial urban a city's size, age, and history of waterfront uses. Although development project, waterfronts present several special most of these problems can be overcome, to do so problems. The constraints discouraging development requires a significant investment in time and capital. come from two sources: the characteristics of waterfront One characteristic problem is the inaccessibility of sites and the institutional framework guiding the devel- waterfronts. This is due primarily to the lack of attention opment process. given to shoreline access by neighboring developments and the use of adjacent lands for industrial, military, or Site Limitations transportation purposes that restrict access. Conse- quently, many waterfront sites are unusually difficult to The use and condition of urban waterfronts impose reach by vehicle or by foot. For example, railroads many impediments to nonindustrial development. All too historically have been built along urban shorelines and often the potential reuse of a waterfront site is even if the trains are no longer in use, the tracks, constrained by neighboring shoreline uses. Many types switching yards, and related facilities restrict access and of development are not compatible with the large limit development opportunities. commercial airports, waste treatment facilities, power In addition to these constraints, waterfront sites generating plants, and industrial operations that occupy commonly have very poor soil conditions for typical waterfront sites in several cities. Furthermore, waterfronts construction methods. Frequently building foundations currently serve many cities as convenient locations for and rubble remain from previous uses. Furthermore, lumber yards, tank farms, and vehicle storage areas. As waterfront soils are usually unconsolidated and have a a result, waterfront development may entail finding new very limited load-bearing capacity, This is due in part to locations for these necessary uses. the fact that in many cities waterfront land was created over the years with fill material. Compounding the poor soil conditions is the potential for shoreline erosion and periodic flooding. These factors can make waterfront development extremely difficult. The deteriorated condition of waterfront structures and facilities in older cities creates additional problems. In some cases bulkheads, piers, and pilings have decayed to the point where they are unreliable and not suitable 7-7 for new uses. Moreover, the development of some wafer- T." dependent uses, such as marinas or ferry terminals, may be infeasible because of excessive sedimentation, periodic flooding, deteriorated structures, or barriers (i.e. V fixed-span low-level bridges) restricting wafer uses. The important point is that limitations posed by the use and condition of urban waterfronts significantly increase development costs--particularly site engineering and cc nsfruction costs. Furthermore, site investigations and infrastructure repairs dramatically add to the up-front costs of a project. Consequently, these constraints make waterfront development difficult if not necessarily impos- sible. 3-2 The deteriorated condition of bulkheads, piers, and pilings in many older cities is a major impediment to waterfront redevelopment. 40 -3 Waterfront sites commonly have very poor soil conditions. Y 44*_ 7- 7 P_ _qW 3-4 Fixed-span low-level bridges sometimes make the development of water-dependent uses, such as sailboat marinas, infeasible, 41 Shoreline Master Program, ratified in 1976, outlines the use of the city's central waterfront as follows: In the Urban Central Waterfront environment, new devel- opment over water and the recycling and refurbishing of existing piers will be permitted which will: a. Reinforce the historic marine orientation of Seattle as a major downtown theme; b. Strengthen water-oriented recreation tourist activity, related retail business, and public areas open to the Institutional Constraints water; c. Maintain a full complement of water dependent uses; and Many of the more formidable constraints to waterfront d. Preserve and enhance views of Elliot Bay and the development exist within the institutional framework Olympic mountains from upland Central Business guiding the management of urban shorelines. Water- District development, street corridor vistas and the street fronts generally have a fragmented and complex level, provided no additional coverage of the water by structure of jurisdictional involvement. This is because the fixed structures shall be permifted.2 presence of the wafer resource introduces additional Interpreted rather strictly, these guidelines narrow the and overlapping agencies at each level of government. range of development opportunities in Seattle. Moreover, numerous special purpose government groups In San Francisco, waterfront use is restricted through have authority over specific shoreline resources and the permitting authority'of the Bay Conservation and activities. As a result, waterfront development is subject Development Commission, The state of California made to a multitude of governmental regulations and permit a definite commitment in 1969 to emphasize water- requirements. A typical waterfront project does not get related development along the shores of San Francisco off the drawing board until the developer has obtained Bay by declaring in the commission's enabling legisla- all of the necessary approvals and permits. While most tion that: waterfront regulations and permits are designed to ... further filling of San Francisco Bay should be protect the shoreline from misuse, they tend to restrict authorized only when public benefits from fill exceed options and impede the development process. public detriment from the loss of the water areas and should be limited to water-oriented uses (such as ports, The most stringent regulations pertain to waterfront use. water-related industry, airports, bridges, wildlife refuges, In many jurisdictions, uses that are neither water- water-oriented recreation and public assembly, water dependent nor wafer-related are prohibited completely intake and discharge lines for clesalinization plants, and or allowed only if specific conditions are met. In power generating plants) or minor fill for improving Washington State, for example, the Shoreline Manage- shoreline appearance or public access to the Bay.3 ment Act of 1971 grants priority to water-dependent uses While these waterfront restrictions may appear flexible, and to uses which increase the public's ability to enjoy they are very strict in comparison to other cities. In the shoreline. This rule effectively eliminates new residen- Boston, for instance, the Hundred-Acre Plan guiding the fial or office development on waferfront sites. In city's waterfront redevelopment contained the following accordance with this state mandate, the Seattle objectives: 1. Open the city to the sea for people and leisure use. 2. Reinforce neighboring districts: Government Center, the Financial District, the North End; eliminate blight. 3. Preserve historic buildings. 4. Create a waterfront residential community. 5. Increase city visitors and attendant facilities and accommodations. 6. Strengthen the city's economic base, attract private investment, increase employment, increase municipal revenues.4 The contrast between Boston and the two West Coast cities illustrates the severity of use restrictions controlling jiMm '00. the development of some urban waterfronts. In such cases a private developer is forced to consider a limited range of options. The contrast also underscores the differences between older, underutilized east coast ports and newer, less decoyed west coast waterfronts. llw,@ 7= 2 City of Seattle, Department of Community Development, Seattle R Shoreline Master Program (Seattle: author, 1976), page 6. 3 Harold Gilliam, "San Francisco Bay: Mystique Versus Economics" Urban Waterfront Lands (Washington: Notional Academy of Sciences, 1980), page 115. 4 Greater Boston Chamber of Commerce, Waterfront Redevelopment Division, "Report on the Downtown Waterfront Faneuil Hall Urban Renewal Plan" (Boston: author, June 1962), page 11. 3-5 Seattle's range of development opportunities is restricted by the guidelines contained in the city's shoreline master program. 42 3-6 In Son Francisco, waterfront use is restricted through the permitting authority of the Bay Conservation and Development Commission. AA ---4 14@ i4d 4*7@ -M-W PVT *At M. Ai M 4k iv@ iL low !for SOME In many cities waterfront use restrictions are integrated into municipal zoning ordinances. In Greenwich, Con- necticut the site of the Palmer Point development project was zoned WB-Waterfront Business. This category permitted only water-related commercial and residential uses and allowed for a maximum floor area ratio of 0.5. As a predominately residential development, Palmer Point was required to devote 20 percent of the floor area ratio to marine-related businesses such as yachting publications, boat brokerages, marine supplies, and so forth. Another regulatory burden on waterfront development is the requirement for public access. In this respect, California, Washington, and Massachusetts have strict public access requirements within their state coastal management programs. In California, for instance, the San Francisco Bay Conservation and Development Commission reviews each shoreline development appli- cation to determine the amount of public access that can be included in a development proposal. The Commission has the power to require access to the actual permit site, or it can substitute a requirement for provision of access at another location that is better The development process can also be hindered by suited to the public's needs. Washington's shoreline the involvement of numerous citizen groups, each management regulations require local governments to having a special interest in the condition and use of a include a public access element in their master city's waterfront. In addition to groups typically associ- programs. ated with urban development, such as neighborhood In other states, public access to waterfronts is associations, preservation organizations, and school regulated on a local level by each city. Greenwich, districts, many other groups such as fishing organizations, Connecticut, provides a typical example: the city's recreational boating clubs, tugboat operators, and zoning regulations stipulate that public access ease- conservation groups are interested in waterfront projects. ments must be included in a waterfront development While citizen participation is a necessary ingredient of proposal. In some jurisdictions waterfront use restrictions any good urban development, waterfront projects often and public access requirements are implemented become caught in a web of conflicting demands through other waterfront permitting programs covering voiced by single-interest groups. This can produce costly such activities as dredging and pier construction. delays and result in compromises that create inoffensive In many cities waterfront development is further but mediocre results. constrained by regulations governing the aesthetics of a The additional development constraints imposed by proposed project. While the Coastal Zone Management shoreline management agencies increase the risk taken Act calls for the protection of aesthetic values, it offers by a developer attempting to build a waterfront project. little in the way of specific guidelines. Generally, state The potential magnitude of risk far exceeds what is and local regulations deal with the height, bulk, and site typically associated with conventional land develop- coverage of the project with restrictions imposed to ment projects. Often market studies and financial preserve visual access to the water's edge from inland feasibility statements lead a waterfront developer to sites.5 conclusions that collide head on with regulatory guide- 5 Marc Hershman, et al, Under New Monogement-Port Growth and lines and time delays. The North Point Pier project Emerging Coastal Management Programs (Seattle: Division of Marine (commonly known as Pier 39) in Son Francisco is an Resources, University of Washington, 1978), page 68 excellent case in point. 45 Given the financial risk associated with waterfront development, many lending institutions and investors are hesitant to participate in waterfront projects. Further- more, the cost of regulatory delays encourages devel- opers to follow the path of least resisfance-in other words, to sacrifice project innovation and creativity by duplicating what has been approved in the past. More First proposed in 1972, the project is centered around often than not, it is just too costly to pass a new idea the reuse of three piers. Pier 39 was reconstructed and through the permitting and review process. contains restaurants and shops surrounded by a 24-foot- Despite the risks and difficulties which can be wide pedestrian walkway., Pier 41 was destroyed and associated with waterfront projects, the tremendous replaced with a fixed breakwater and public fishing potential of waterfront sites for economic development pier, and in the place of Pier 37 (destroyed by fire in and public enjoyment has captured the attention of 1976) a floating breakwater was constructed. Two both private developers and city officials. Few cities can marinas flank the main pier, one for a sport fishing fleet afford to ignore the wealth of opportunities offered by of 50 to 60 boats, and the other for about 250 private the full and productive utilization of an urban waterfront. pleasure craft, The project also includes a five-acre Likewise, developers clearly see the mutual public and public park and a 1,000-car parking garage located private sector benefits that are possible with waterfront directly inland from Pier 39. An elevated walkway proj.ects. connects the parking garage with the pier area. The In order to gain the mutual benefits resulting from developer estimates that the planning and permit waterfront revitalization, many city governments and approval process for the project required five years private developers are making special efforts to facili- (from 1972-1977) and cost $1.2 million. This was a fate development, These efforts have produced many sizeable risk considering the investment had to be made innovative concepts and techniques designed to effec- before the developer actually knew whether or not the fively mitigate physical and institutional development project would be granted approval.6 constraints. While some of these innovations are simply 6 Virginia Farrell, Development and Regulation of the Urbcn Woterfroot: refinements of existing policies or programs, many others Boston, Son Francisco, and Seattle (Princeton, N.J : The Center for are unique responses to the special circumstances of a Energy and Environmental Studies, Princeton University, 1980), page 25. particular waterfront. IQJ Z4 im 0 3-8 The Pier 39 redevelopment project in San Francisco. 46 Public Sector Response7 In many North American cities, public sector initiatives have helped to stimulate waterfront development. City governments have realized that waterfront areas repre- sent major community assets demanding special public sector involvement. In this respect, some communities have selected alternative organizational structures to overlapping governmental responsibilities that often implement and manage waterfront projects. Others impede the development process. Recognizing the have relied upon innovative districting and zoning severe limitations imposed by various institutional con- techniques to encourage development, and a few cities straints, some cities have established alternative organi- have used more traditional urban development pro- zational structures to orchestrate waterfront grams to assist the efforts of private developers. development. One such alternative is a waterfront management Management Structures council. As special purpose government bodies formed specifically for dealing with coastal areas, waterfront In many cases, the most difficult problems associated councils are empowered to control land use and with urban waterfront development result from the development within their jurisdictional boundaries. Coun- complicated and fragmented institutional framework cils may be established for a region or limited to a guiding shoreline management, As noted before, urban single municipality. In either case, state enabling waterfronts are subject to multiple Ijurisdictions and legislation is usually required. The San Francisco Bay Conservation and Development Commission and the Much of this section is based upon information contained in Ann Breen Rhode Island Coastal Resources Management Council Cowey, Robert Kaye, Richard O'Connor, Richard Rigby, Improving Your Waterfront: A Practical Guide (Washington: US, Government Printing are two examples of this type of management organiza- Office, 1980). fion. 3-9 Public Sector Development Initi atives Management Structures 2oning and Districting Urban Development Incentives e Waterfront Management Council *Special Waterfront Zone * Induce Demand e Quasi-Public (nonprofit) *Overlay or Floating Zone * Assist in Land Assembly Development Corporation 9 Conditional Zone Provide Public Financing e Private (profif-making) * Economic Redevelopment District 9 Enact Favorable Taxation Policies Development Corporation *Historic Preservation District *Simplify Reguillatory Process e Port Authority Mixed-Use Development -District o Provide Pub-tic Improvements o Joint Public/Private Development Venture 47 One significant advantage of this type of manage- menf structure is that corporation status allows a management group to assume an objective, third party role in negotiations between local officials and private developers. This provides the opportunity to negotiate differences in goals and policies while projects continue to be managed with a minimum of confusion, conflict, or delay. By coordinating many previously dispersed local government functions through one management A management council is effective because it organization, a forum is clearly established for coopera- establishes an independent government body that tion between private and public interests. assumes some of the responsibilities of existing agencies, One of the best examples of a nonprofit quasi-public It changes the institutional framework by combining corporation is Charles Cenfer-Inner Harbor Management, several previously dispersed management functions Inc., in Baltimore. It operates under a contract with the under one central authority. For example, land use city that provides for the organization to direct the planning studies, environmental impact assessments, planning and management of development of the Inner shoreline access plans, and waterfront development Harbor However, the corporation takes all policy proposals are the responsibilities commonly assumed by direction from and is officially responsible to the these councils. Furthermore, councils have a regulatory Commissioner of the Department of Housing and function built into their management responsibilities: Community Development. The management corporation usually a permit procedure that a developer must works closely with public and private interests and complete before shoreline property can be significantly community groups. altered. The permit authority provides councils with a Charles Center-Inner Harbor Management, Inc- has powerful instrument for guiding waterfront development. proven to be a key ingredient in the successful With a waterfront council the development process is development of Baltimore's Inner Harbor As an agent of more direct and efficient. The regulatory requirements the city, the corporation recruits and negotiates agree- are clearly established and developers have an oppor- ments with developers, coordinates public and private funity to discuss potential projects with council represen- development activities, acts as a client in the design of fatives as design documents and permit applications public improvements, and generally functions as a are being prepared. If a project is clearly inconsistent liaison between city officials and private contractors to with council policies and regulations, the developer is expedite construction and keep projects on schedule. urged to abandon or reconsider the proposal without The high credibility and performance of the corporation going through the permit process. has instilled enough confidence within the business While waterfront councils help remove much of the community to ensure the cooperation of local business redundancy from development regulations, the extent to organizations as well as the developers themselves. which they actually encourage waterfront development Special private (profit-making) development corpora- depends upon the mandate and priorities of the council. tions have also been used in a few cities to manage The San Francisco Bay Conservation and Development waterfront development. This type of management Commission, for example, has a mandate to use its structure is established to provide developers with the permitting authority to rigidly control the type and form legal means of implementing all phases of development of shoreline development. proposals by transferring powers normally assumed by Quasi-public (nonprofit) development corporations are local government to the corporation. Typically the another type of alternative management structure, They private development corporation controls plan prepara- differ a great deal from waterfront councils in that tion, land acquisition (including acquisition by eminent development is given priority over other concerns, Quasi- domain in some cases), clearance, site improvements, public organizations have proven successful where other and design guidelines. All actions of the corporation are public sector efforts to guide waterfront development subject to supervision and approval by the local have not worked satisfactorily. By creating a flexible government. The assumptions supporting this manage- organization that operates separately from a city menf approach is that a private corporation operating development agency but under the policy direction of outside the traditional urban development process local government, quasi-public development corpora- would have the resources and flexibility necessary to tions can respond to the special interests of local acquire capital, coordinate public and private improve- government, the private sector, and community groups ments, and generally manage waterfront development more easily and efficiently than can a traditional more efficiently and effectively than a public develop- department of local government. ment agency. 48 4;, A@ --n IA44 M. M T.- 7 Ilk -A, P7 'k 3-10 A key participant in the successful development of Baltimore's Inner Hcrbor has been the Charles Center-Irrer Harbor Management, Inc. The use of private development corporations in the planning and implementation of large-scale develop- ments can be controversial because some people may feel that this approach allows too much control by private interests in projects that influence the whole community. This difficult issue can be avoided by making these private ventures part of a formal public review process where opinion can be solicited from a Depending on existing statutes, the procedure for broad range of interests. Furthermore, the profit orienta- establishing such a corporation will vary from city to city. tion of the corporation can be the spark needed to More than likely the legal authority must be granted to kindle the supporl of the business community. Without the local government through special enabling legisla- such support, it is very difficult to produce a waterfront tion. Once the legal basis is established, a special profit- product of high quality and lasting value. making development corporation can be formed by One of the best examples of a private development private developers and financial interests. The next step corporation engaged in urban waterfront development is to define the boundaries of the development district. is Laclede's Landing Redevelopment Corporation in St. Following this action, the private development corpora- Louis, Missouri. It has been very successful in stimulating tion prepares a final development proposal including private investment in the economically depressed and planning studies, design alternatives, and financing physically deteriorated waterfront district known as arrangements. The proposal is reviewed by government Laclede's Landing. The Redevelopment Corporation was agencies and public hearings are held. formed by a local consortium of private sector interests ifil-11 win, inis 0i Y All via. 77 . .. ... ik -- ------ --------- 7 'J& tan' P+ % - T, 414" q0 Via V rp, *W*c Nff A 34 .5, E!2 'q' -2 QF- '.-i! Vlkn - s v CIA,% NO If K`ZZ Z., 1, y' i, U A 3-11 In St. Louis, Missouri, the Laclede's Landing Redevelopment Corporation has been very successful in stimulating private investment in the economically depressed and physically deteriorated waterfront district. 50 including developers, investors, and property owners under Chapter 353 of the Missouri Urban Redevelopment Low This statute allows the city of St. Louis to pass to private corporations total development and planning responsibility, based on a plan approved by the board During the 1950s, the port of San Diego and its of aldermen and the mayor Upon approving a waterfront began to lose the large volume of cargo development plan, the city is able to administratively activity that if had during World War 11 and the Korean grant the Redevelopment Corporation a limited power of conflict. In response to this trend, a comprehensive eminent domain plus authority to provide property tax waterfront management effort eventually led to the relief over a 25-year period to individual property owners creation of the San Diego Unified Port District in 1962. A in the Landing's district. The power of eminent domain waterfront development master plan was promulgated obviously allows the private development corporation to in 1941 with the cooperation of the five major munici- overcome land acquisition problems, thus significantly palities that border San Diego, This plan in essence reducing the developer's risk in project implementation. granted in trust to the District all waterfront property up Furthermore, the tax incentive program has proven to be to the high water line. Although political and social a substantial attraction stimulating private investment. conflicts surfaced during the formation and implementa- Providing a waterfront management structure that is tion of the plan, nearly everyone agreed that without conducive to development does not always mean a such a plan and an agency to implement if, the city must introduce a new type of organization. Some waterfront, as it then existed, would continue to cities have been able to facilitate waterfront develop-, degenerate through underutilization, abandonment, and ment by either redefining the role of an existing incompatibility of adjacent uses. management entity or adopting a new public sector approach to waterfront development within the estab- lished institutional framework. Among the various management entities commonly found in commercial harbors throughout North America, port authorities have the greatest potential to assume responsibility for waterfront development. This is because port authorities have the combination of legal authority, fiscal strength, and political skills required to effectively implement waterfront projects. In most cases, however, X these public agencies were created to manage I J traditional waterborne transportation activities and do not use their land use planning authority and regulatory I $an Diego v6 controls to manage the full range of potential waterfront I uses. In recent years, however, some port authorities Mon.. T .. h.1 have taken steps to improve their ability to respond to Coro waterfront development opportunities. In cities such as Boston, Toronto, Oakland, and Seattle, port authorities \x have adopted a multiple use approach to shoreline sm Diego say management. No longer are retail, commercial, recre- N.11O.C111 C ational uses, and general public access viewed as Nomorud city inappropriate in port areas. Moon "to Tide une The role model for port authorities expanding their Ttdold0d, focus to include nonmaritime development is the San SUbeler"d 71delonft Chula Vista Diego Unified Port District Commission. Without a doubt, the port of Son Diego and its neighboring communities have come the closest to achieving a completely comprehensive waterfront development program, The program is based on a multiple use concept that realistically reflects the port's relatively limited marine cargo development potential and the growing demand I Beac for recreational and commercial uses. 3-12 The San Diego Unified Port District, 51 and strength necessary to withstand dynamic political and economic forces. The agreements must be written in a way to anticipate potential conflicts and provide a contractual basis for resolving any problems which may arise. Freemason Harbour in Norfolk, Virginia, is an excellent example of how fragile a joint public/private venture established to accomplish mutually advan- fageous social and economic goals can be. The Freemason Harbour project began in 1973, when the Norfolk Redevelopment and Housing Authority (NRHA) announced plans for a neighborhood develop- ment program that included portions of the central city waterfront. At that time, representatives from Chessie In 1980, the waterfront was divided into 10 separate Resources, a subsidiary of the Chessie Railroad, ex- sectors, each of which either reflected the predominant pressed interest in redeveloping its waterfront properties prior uses of its shoreline or was designated to that formed a large portion of the area under accommodate other uses which included recreational consideration. Originally, Chessie wanted to develop the and light commercial activities. These planning consid- site on its own, but realized that the massive costs erations were based on the District's long standing involved in providing the necessary public facilities, authority to undertake projects in four major areas: principally parking, street improvements, and bulkhead- commerce, navigation, fisheries, and recreation. Each of ing, made it advantageous to work with NRHA. The these areas of authority to operate has been broadly Authority, on the other hand, at first wanted to purchase interpreted, thus permitting the construction and opera- the property from the railroad for its own development, fion of public parks, commercial fishing piers and but also realized that the combined cost of land processing facilities, along with the leasing of land and construction made this goal unreachable. The parties facilities for use by hotels, restaurants, and marina agreed that a combined effort represented a better operators. The ability to balance the profit-making course of action. operations such as hotels, restaurants, commercial NRHA and the railroad decided to proceed as a joint fishing facilities, and marinas against public use projects venture and divided the cost of a preliminary planning has produced a viable and interesting waterfront. study, with 65 percent borne by the Authority. In August Moreover, San Diego's waterfront has developed info a 1975, Arthur Coffon Moore Associates completed the major tourist attraction and, at the same time, has initial plan for the site, which involved an elaborate improved the quality of the urban environment. eighf-phase proposal. Local financial interests expressed Following San Diego's example, many cities are concern over several elements of the plan, and there discovering the opportunities waterfronts offer when the was disagreement over the accuracy of the market public sector can structure an appropriate institutional analysis. framework that will encourage new investment in a variety of uses. Given the necessary mandate, port authorities appear to be an effective body to manage waterf ront development in partnership with states, mu- nicipalities, and private development interests. Finally, in a few cities, waterfront development has :Z taken place without having to rely on a new manage- ment structure or redefined organizational responsibili- ties. Instead, development has been helped by a new public sector approach to waterfront development within the established institutional framework. The ap- proach most commonly used is a joint public/private development venture. With this approach public and private groups work cis A partners, under a contractual agreement, to contribute different elements of a proposed development project, it is particularly successful in smaller communities where neither local governments nor the private sector, acting independently, will have sufficient financial resources to implement a development proposal. It should be noted, however, that public/private ventures require a great deal of cooperation throughout the development pro- cess. Moreover, the partnership must have the continuity 3-13 Freemason Harbour Project in Norfolk, Virginia. 52 That some year, Oliver T Carr Co., a large Wash- LIS ington, D.C., development firm, contracted to conduct further marketing studies. Following the collaboration of Carr and the project coordinator, Barton Meyers Assock ates, the public and private aspects of the plan were redefined. A new land use concept was developed without the originally proposed large marina, with less housing, commercial space, and parking and greater public access to the waterfront. In 1976, the city, Carr, and Chessie signed an agree- ment forming Freemason Harbour Associates to imple- ment the new proposal, the Freemason Harbour/Harbour Square master development plan. In a separate, more specific agreement with NRHA, Freemason Harbour Associates agreed to finance its portion of the project z from private sources. NRHA used a variety of sources including Community Development Block Grant money, other federal funds from the Department of Housing and Urban Development's Urban Development Action Grant Program, and revenue bonds. NRHA agreed to purchase 19 acres of land owned by Chessie Resources, combine it with its own six acres, and lease it back to Freemason Harbour Associates. This arrangement required the private developers to obtain financing 3-M Waterfront redevelopment in Norfolk, Virginia, is being orchestrated only for construction of the buildings on the site. The city by the Norfolk Redevelopment and Housing Authority. benefited because if collected rent directly from the leases. Previously, the owners paid property taxes that based on the original project concept. NRHA did not went to the state. Furthermore, the agreement stated want to reduce the project's residential component in that NRHA would provide street improvements, utility spite of the developer's claim that the market was not relocation, landscaping, bulkheading and related ma- strong enough to support it. After discussing the proposal rine work, and park and beautification work. Freemason at several meetings, NRHA and Freemason Harbour Harbour Associates agreed to construct a residential Associates mutually decided to terminate their agree- condominium project with accessory retail space. NRHA ment. retained a 60-year renewable ground lease for site The Norfolk Redevelopment and Housing Authority improvements on the developed parcels and collects a released another request for development proposals monthly payment from each of the condominium and subsequently selected a local development firm owners. (Christopher Company) for phase two of the project. Their Freemason Harbour Associates built 20 townhouses in development proposal calls for 90 residential unifs--30 accordance with their agreement with NRHA. The units units on the pier structure and 60 condominium units in a were all sold and occupied in 1979. The second phase new building. The warehouse is to be demolished. of the project called for 30 residential units to be NRHA learned an important lesson from this experi- constructed on a renovated pier structure and a ence: Instead of entering info one development agree- warehouse to be renovated for commercial use. Free- ment covering all phases of a project, it is better to sign mason Harbour Associates, however, did not move separate agreements for each phase. This is particularly forward with phase two because of market uncertainties. true for projects that are developed over several years. Eighteen months later NRHA became impatient with the Other cities are finding the joint public/privafe venture developer's inaction and requested that they produce a approach to waterfront development to be a reason- development scheme for the second phase of the able alternative to the traditional development process. project. As federal government funding for waterfront projects Freemason Harbour Associates submitted a develop- becomes more difficult to obtain, the equity partnership ment proposal consisting of six townhouses and a approach combining public and private resources at 30,000-square-foot office building (the warehouse would the local level is gaining momentum. With the public be demolished). In addition, the developers stated that sector becoming more skilled and experienced in co- the townhouses would only be built if presold. The development techniques, projects such as Freemason Norfolk Redevelopment and Housing Authority felt that Harbour can weather the dynamic political and eco- this proposal was not in line with their expectations nomic factors influencing the land development industry 53 in Chicago, the "Lakefront Plan" adopted in 1974 divides the shoreline into three general zones. A "water zone" extends from the shoreline to approximately the 25-foot depth line in Lake Michigan, The "park zone" consists of the individual parks that comprise the present and future public park facilities within the city. The 11 community zone" is made up of the private and public lands adjacent to the lake, most of which are in Zoning and Districting residential use. Basic policies are set forth regarding the In many communities land use plans, zoning ordi- management of each zone. nances, and building codes were written at a time when Portland, Maine, and Plymouth, Massachusetts, also most-urban waterfronts were dominated by traditional are using innovative zoning techniques to encourage uses such as shipping, manufacturing, and associated waterfront development. In 1982, Porhand's city adminis- land-based transportation and storage facilities. Since trafion recommended the creation of a special water- many older waterfronts are no longer used as intensively front zone designed for greater flexibility of uses than for such activities, there is the potential for vacant land, was previously allowed. abandoned buildings, and deteriorating piers to be Portland is presently confronted with parallel efforts to reused for a variety of different purposes, Attempts to reinclusfrialize and redevelop its waterfront. In order to realize the development potential of such waterfront ensure that desirable and compatible development sites have been unsuccessful in some cases because of efforts would be encouraged, the city has based its antiquated land development codes and ordinances. waterfront management strategy on new zoning recom- Some communities are dealing with this problem by mendafions. The major recommendation is the creation of a new waterfront zone (W-2). This zone would be a using innovative clistricting and zoning techniques to specialty zone, designed for the unique nature and accommodate multiple use developments, needs of waterfront dependent uses. The intent is to By establishing special purpose waterfront zones and reserve a substantial portion of the waterfront for uses districts, the public sector has.the legal authority to where waterfront access/location is critical. In addition, implement innovative land development controls. Such the W-2 zone is designed to protect waterfront depen- authority can encourage waterfront redevelopment dent uses from other competing but noncompatible uses when conventional rezoning of shoreline property does of the waterfront. W-2 is basically a marine and marine not accommodate the specific requirements of water- related use zone. Most nonmarine and nonfishing related front activities. In addition, conventional zoning often uses would not be allowed (existing uses would be fails to provide the essential flexibility required to grandfathered). The new W-2 zone would provide some respond to the changing market conditions that occur assurance to Portland's marine and fishing industries that as areas become redeveloped. the Portland waterfront will continue to remain a One solution to obsolete or restrictive zoning codes is 11 working waterfront." Waterfront access for waterfront to rezone waterfronts as unique areas suitable for a dependent uses would be guaranteed through the variety of creative and compatible uses, There are adoption of the W-2 zone. Noncompatible uses such as basically three approaches to creating waterfront professional offices, hotels, convention centers, and zones:8 residences would not be permitted in the W-2 zone. � Designate a special waterfront planning area and The second major zoning recommendation is a recognize if as such in the city master plan, change in the existing waterfront zone W-1. The W-1 zone � Adopt a waterfront zone as part of the existing zoning currently allows a wide variety of marine, commercial, ordinance. and industrial activities. For example, in addition to � Develop criteria and performance standards that every type of marine and fishing activity, the existing W-1 pertain to waterfront characteristics. permits: hotels, convention halls, restaurants, professional It makes a substantive difference to include the offices, banking, theaters, museums, churches, and, as a waterfront area in an adopted master plan because it conditional use, residential apartments and condomini- provides legal standing as part of a standard zoning ums. The existing W-1 is excessively open to a wide ordinance. Calling attention to the waterfront through diversity of uses. If is too liberal and does not provide special area plans is an important first step. Even without adequate protection for uses which are dependent a site-specific zoning designation, the goals and upon a waterfront location, The intent of the revised W-1 objectives articulated in a special area plan can be the zone is to permit a diversity of uses which can coexist basis for community action. with each other. It is a mixed-use zone that would permit all of the marine and fishing uses of the W-2 plus a 8 Cowey, et ol, Improving Your Waterfront, page 29 variety of commercial, industrial, and residential uses. 54 Existing Zoning W-1, '&Ont 12b, Industrioll B-3, Business I B-1- Business L-i L-j LIIIIIJ Lj L-J. L--'J I R@6t =1 It U U ILI ji B 3 It 6 D-fodh 12b 12b FWi,Pler CQrnplex r US, Nmol peso W i lnt@afional Ferry Tenlnc@ Proposed Zoning W-11 'W6GO76nt Mixed Use W-2, Waterfront@Marifime/Fishing B,3, Business R-6, Residential L--j L-jLL; l2b, Industrial j r U U n CO 83 R 6 C "Ik a W I C: C==3 1,,t, Ferry Te,=,Cg R P 0 3-15 (A & B) Portland, Maine, is using innovative zoning techniques to encourage waterfront development. 55 Another type of zoning technique that is applicable to urban waterfronts is the use of "overlay" or "floating" zones. This technique avoids the static condition of traditional zoning by providing implementation flexibility. Overlay zones "float" over the community and are placed in specific locations where and when they are deemed appropriate by the local government. An overlay zone may contain regulatory provisions concern- Plymouth, on the other hand, enacted a waterfront ing use, height, and bulk as in a standard zoning zoning bylaw in 1973 which created a waterfront district ordinance, or it may have unique features that are as part of the project design review procedure. The incorporated into the language of the ordinance for a waterfront district is designed to encourage the develop- specific purpose, such as an industrial park or mixed-use ment of marine, historic, and tourist uses along Plym- development. outh's central waterfront. The zoning bylaw established Toledo, Ohio, has successfully implemented overlay three categories: allowed waterfront land uses; special zoning as a public sector approach to waterfront permit uses, which must meet specified environmental development along the Maumee River The Maumee design conditions and review procedures; and prohib- Riverfront Overlay District was incorporated into the ited uses. The intent of the special permit uses is to Toledo Municipal Code in 1979. In general, the special require for certain types of development the coordina- zoning classification is used to provide public amenifies tion of site plans, pedestrian circulation, and com- and facilitafe development of a wide variety of patibility with the adjacent historic area. Allowed compatible land uses along the riverfront, Specifically, waterfront land uses include boat sales, service, rentals, the ordinance calls for increased public access to the ramps and docks: commercial sightseeing or ferrying; wafer, improved scenic and aesthetic controls, improved marine railways, repair yards, storage yards, marine transportation, and better coordination of recreational, supply outlets; and commercial fishing and seafood commercial, and industrial land uses. In addition, wholesale or retail outlets and related outlets. Special several locations are identified as prime residential, permit uses include restaurants, recreation, motel, spe- park, and water-oriented recreation sites. These areas cialty shopping, and similar compatible facilities that are to have a "superior level of public access, complement and strengthen the function of the wafer- convenience, comfort, and amenity."9 front area, and multifamily and single-family attached dwellings. 9 Ibid, page 32. A"thon W. n. 0 0, C 0 w@- E E 0 'A@ Ut 7-N S, C: X/ Legend 0 C) Principally for Residential, Pau Water oriented Recreation 8 Principally for Water Oriented Industry 0 Principally for Commercial & High intensity Residential 3 ....... Maumee Riverfront Oveday (MR-0) District Boundaries 10 J P 56 Many cities have stimulated waterfront development by utilizing incentive or conditional zoning. It has two basic advantages over conventional zoning: the incen- tives are used as a means of securing public benefits in In 1974, the Pickering Oil and Heating Company exchange for some type of concession given to a petitioned the city to construct a new oil distribution developer, and it encourages innovative development facility one-half mile from the wharf site. On behalf of and creative urban design. The most widely used type the city of Salem, the city solicitor and the planning of incentive is known as a bonus provision. This department began negotiations with the oil company to approach allows the local government to grant addi- utilize its old site for a mixed-use redevelopment project. tional densities or increased floor areas beyond those This action signalled the beginning of the development specified in the local zoning ordinance to a developer planning process. Because the oil company needed a in exchange for a public benefit such as a dedicated city permit to move its storage facilities, the city was open space or provision for public access. Incentive able to negotiate a trade-off, granting a change in zoning has been used successfully by cities for years but zoning for an option on the waterfront site. only recently for waterfront development. An agreement was reached between the city and If should be noted that although the use of incentive Pickering Oil in which the city was given an option to zoning increases flexibility, it only does so to the extent buy the old property and resell it to a private developer stipulated in the zoning code. The type and amount of The sales price of the land was set of one-half the public benefits and private incentives available for appraised value with the oil company paying for the bargaining are clearly established in the local zoning appraisal. The city's initial intent was to develop the site ordinance. This provides a fixed amount of potential as a hotel-mixed-use complex, but a market analysis trade-offs recognized by both public and private suggested this approach was questionable. interests. In 1976 the city entered into an agreement with a The Pickering Wharf redevelopment project in Salem, development group to develop the site as a multi-use Massachusetts, is an excellent illustration of the use of commercial zone. The project consisting of a 45-slip incentives to encourage waterfront development. Prior to marina, 54 condominiums, four restaurants, 2,000 square redevelopment, the site consisted of 11 abandoned oil feet of office space, and 70,000 square feet of storage tanks, a one-story block storage building in poor commercial space was completed in 1980. Under the condition, and 1,000 feet of deteriorating bulkhead. The agreement, Pickering Oil Company received a rezoning wharf had been used for administrative purposes since for its new facility in exchange for an option for the city 1974, when an oil distribution center was closed. to purchase the property at a favorable rate and turn /X ;0" 4 -T. St. =L 71 @A, g K C I < @eda ,ty 3-16 Land use designations within the existing Maumee Riverfront Overlay (MR-O) District in Toledo, Ohio. 57 powers, including the authority to set user rates, issue bonds, and levy taxes, while other districts have a very narrow range of responsibilities and limited authority. In cities where the development potential of a waterfront around and sell it to a private developer Also, the city area is severely limited by inadequate public utilities, a. required that the developer include certain provisions in special service district is an effective means of alleviat- the development, such as public access to the water- ing this problem. front for the entire site, and architectural and street In recent years the concept of special districting has design requirements that would blend into the maritime been expanded to address a greater range of character of the area. Density zoning was provided so community goals. Local governments have established the developer could create a village atmosphere special development districts for such purposes as instead of the traditional zoning approach in this area of improving environmental conditions, preserving the char- the city. acter of an historic area, or encouraging private Districting is a public sector initiative that has been investment in a depressed area. Special development used for many years by local governments to provide districts operate much like special service districts goods or services to a particular area within a except for one important difference: development community. Special districts are usually formed when the districts usually have more extensive governmental needs of an area cannot be met sufficiently by the powers, such as eminent domain, urban renewal standard municipal government structure. They have authority, taxation powers, and controls over planning, specific, geographically defined boundaries and are management, and urban design. The three major types managed by appointed or elected officials. Before of special development districts are economic redevel- implementation, state enabling legislation is usually opment, historic preservation, and mixed-use develop- required to grant local governments the authority to ment. create special districts. This establishes a legal basis for The concept of establishing economic redevelopment action by the municipality districts to stimulate the recovery of depressed areas of There are as many types of special districts as there cities originated out of the urban renewal policies of the are types of community needs. Some are formed to 1950s and 1960s. During that time project-sized districts provide essential utilities while others are established to for clearance and redevelopment were formed in many protect the public interest in land allocation decisions large and small cities. The land in these districts was and urban design issues. Nevertheless, in general terms, condemned, cleared, and new buildings were con- there are two broad categories of special districts: structed under an assortment of federal grant, loan, and special service districts and special development dis- guarantee or insurance programs. tricts. Often the renewal process fell short of attaining its Special service districts have been widely used by stated or implied goals. The failures of the past, however, local governments over the years to provide a variety of have produced significant changes in the way urban public services. Cities commonly use this tool as a redevelopment is implemented and economic redevel- means of providing water, sewer, fire protection, sanita- opment or renewal districts have clearly become viable tion, and health care. Districts are identified by distinct tools for local governments. boundaries and have varying levels of political autono- In most cases, economic redevelopment or renewal my. For instance, some districts have many jurisdictional districts are established by a local ordinance on the basis of recommendations from the city planning office, a local planning commission, or a special study group. Specific boundaries for the district are delineated, and an overall development program is created. This may include a variety of public and private projects for commercial, residential, industrial, and recreational development. The implementation of an areawide plan establishes the public purpose required for the use of 4r eminent domain-either partial or total condemnation- under the landmark Supreme Court decision, Berman v Porker (348 U.S. 26) in 1954. One important advantage of economic redevelop menf districts is that they are a planning mechanism that can be integrated easily with other redevelopment fools and techniques such as tax deferrals, tax increment financing, and less than fee simple \land acquisition. This provides the institutional flexibility needed for local governments to respond to changing market forces as redevelopment proceeds. 3-17 The Pickering Wharf redevelopment project in Salem, Massachusetts. 58 Historic preservation districts are another type of special development district that communities have established to help stimulate waterfront revitalization, By preserving the unique character and aesthetic quality of a historic urban seaport or riverfront, cities have been able to enhance the development potential of their officials many advantages in planning and implement- waterfronts. The most successful approach combines ing development proposals. In more specific terms, a preservation with economic investment, allowing histor- mixed-use development is a relatively large-scale real ically significant structures and sites to be adaptively estate project characterized by: used for new purposes. Historic districts can be established at the state or * three or more significant revenue-producing uses (such as local level, with or without federal sanction. Depending retail, office, residential, hotel/motel, and recreation-which in on the circumstances, it may be possible to set up a well-planned projects are mutually supporting); National Register Historic District that would qualify * significant functional and physical integration of project components (and thus a highly intensive use of land), property owners for special federal grants and loans as including uninterrupted pedestrian connections; well as fax incentives for redevelopment, While the *development in conformance with a coherent plan (which register is a valuable fool, especially in providing the frequently stipulates the type and scale of uses, permitted incentives to owners of historic buildings, such a densities, and related items).10 designation carries with it strict regulations governing the One of the primary applications of the mixed-use use of funds within the district. Consequently, it is a good development concept has been in the revitalization of strategy to postpone creation of the district until the inner city areas in both large metropolitan centers and economic feasibility of the proposed uses has been medium-sized communities. This is because innovative clearly established. approaches and creative techniques were the only way Most states have provisions for establishing local to effectively deal with the complex economic and historic districts. Typically, these districts are set up by a physical problems associated with redeveloping these city ordinance that contains special zoning or perfor- blighted, depressed urban sites. Notable examples are mance standards and sometimes tax incentives to Rockefeller Center in New York City, Charles Center in encourage preservation. Baltimore, and Embarcadero Center in San Francisco. Redevelopment of a historic waterfront district can be expedited by the involvement of a local preservation There are two basic reasons why urban waterfronts are organization. The group may be private, nonprofit, prime candidates for mixed-use development projects. public, quasi-public, or have some other status, The key First, many urban waterfront areas are in need of full- is for the organization to place a high priority on scale revitalization; in some cases, the urban fabric is so redevelopment and fake an active role in making it deteriorated that it can only be mended by providing a happen. In this regard, organizations can obtain funds full complement of uses and services. Secondly, water- for restoration projects in historic districts by either front sites have special amenities and can accommo- directly financing projects or arranging loans and date a tremendous diversity of activities and uses. conducting fund drives. The Historic Savannah Founda- Although special development districts are technically tion in Savannah, Georgia, and the Waterfront Historic set up for either economic development (renewal), Area League (WHALE) in New Bedford, Massachusetts, historic preservation, or mixed-use development, the are two local organizations that have helped guide the three objectives are not mutually exclusive. In fact, the successful redevelopment of a historic urban waterfront, formal designation is m&e a reflection of a city's A third type of special development district that cities priorities and resources than its development goals. This have established to guide and encourage waterfront is particularly true when special districts are established development is a mixed-use development district, These to facilitate waterfront development. The South Street districts are set up to accommodate a relatively new Seaport Development District in New York City and the urban development approach: combining a variety of New Bedford Historic Waterfront District in New Bedford, land uses into one comprehensively planned, large- Massachusetts, illustrate this point. scale project. This approach is a significant change 10 Robert E. Witherspoon. Jon R Abbett, and Robert V. Gladstone, from the traditional parcel-by-parcel pattern of urban Mixed-Use Development: New Ways of Land Use (Washington: ULI-the development and offers private developers and public Urban Land Institute. 1976), page 6. 59 Development Administration's Federal Public Works Pro- gram, $5 million in Urban Development Action Grants from HUD, and $6.3 million from the state for the Maritime Museum. The public improvements have also captured the attention and imagination of the Rouse Company, which is currently spending $60 million at the Seaport to develop 200,000 square feet of specialty retail and office space.12 In New Bedford, Massachusetts, historic preservation is the catalyst for waterfront redevelopment. The New South Street Seaport is a waterfront area located Bedford Historic Waterfront District occupies approx- immediately south of the Brooklyn Bridge along Manhat- imately 15 acres between the central business district tan's East River shoreline. In 1973, it was designated a and the city wharfs. With the passing of the whaling special development district in accordance with the industry@ New Bedford's waterfront area slowly began to Brooklyn Bridge Southeast Urban Renewal Plan. At the decline, and by the early 1960s, the city's urban renewal time it was established, the primary purpose of the agency began making plans to tear down many Special South Street Seaport District was to encourage deteriorating structures in the area. Local opposition to the preservation, restoration, and redevelopment of these plans led to the formation of the Waterfront Historic properties and buildings in the area. The district was Area League (WHALE), a private, nonprofit corporation targeted to be a type of "museum"-an area of the city to help 'protect the historic character of the waterfront. with special cultural, recreational, and retail activities. In 1963, a survey of the historic area was completed, Although the district was not created solely for and three years later the area was approved by the economic development purposes, improved economic Department of Interior for inclusion on the National conditions along with historic preservation and recre- Register of Historic Places. After several years of ational and cultural activities are high priority goals for economic stagnation, however, it become obvious that revitalization of the waterfront. Some of the specific to maintain the viability of the historic district, preserva- project goals are: tion would have to be combined with waterfront � realization of the Seaport's full economic, cultural, and redevelopment. historical potential to strengthen tourism in New York WHALE accepted this challenge. In 1970, WHALE City; began purchasing property using a revolving fund, and � diversification of Lower Manhattan's narrow economic soon become the largest landowner in the district. Other base; significant landowners are the Old Dartmouth Historical � revitalization of the local neighborhood and support of Society, Bedford Landing Taxpayers Association, and the its growth into a viable community; New Bedford Redevelopment Authority. Together, these � protection and assurance of the future prosperity of the private and public groups have played a guiding role in Fulton Fish Market; the redevelopment of the waterfront historic district. � preservation and protection of the historic character of The city and private groups launched a major the district by generating sufficient revenue to rehabili- revitalization program. In 1975, public improvements for tate its unique buildings and support its educational streets, sidewalks, utilities, and landscaping were begun programs." with a grant from the Housing and Urban Development's A number of projects have been completed at the Community Development Block Grant program. Since Seaport that relate specifically to these goals, and that initial investment, more than $5 million in public and several others will soon be finished. Two piers have been private funds have been invested in the district. Many refurbished and five historic vessels are permanently structures have been rehabilitated, piers refurbished, moored there. The Seaport Museum and the state gardens planted, and a variety of commercial enter- Maritime Museum are located in the district. In addition, prises, such as hotels, restaurants, shops, a candle shop, the Fulton Fish Market, New York's primary fish market, is and a glass museum, have appeared. Improvements being improved rather than relocated. Plans call for just underway are expected to push the private extensive redesign of the processing system and major investment figure toward $4 million. improvements to the structure, piers, and mechanical The South Street Seaport Development District and the systems. Substantial commercial redevelopment has New Bedford Historic District are both good examples of already taken place at the market, and considerable how special districts have helped to facilitate waterfront office space has been provided to adjacent properties development. In each case, there is a great deal of through a transfer of development rights begun in 1974. public and private cooperation in the planning and Millions of dollars in federal, state, and local grants management of the waterfront district. Without this key have been spent at the Seaport, including $8 million ingredient, the special district designation will be of little from the city's budget, $5.4 million from the Economic value. Cowey, et al, Improving Your Waterfront, page 38, 12 Ibid, page 39, 60 Aw-t7 Z7 Jv W'1111r@ v --n VIP At jw IM@@J@ @4, @Ns itsI Z Min S ta t 4 fill# ##I w G Aw j" A-00 ava AW It WIN W, Jw V Its 'Aw WA "W a ja w iWO, Imatom am WAA MINN a a A *-*WON @ *a is*' MWA IWO 00 0 A 0 0 V" MAC UM AW C @A trim AR am i" WO 'W .4 es, an an *01 AL f LIN"" wm am L-E. a dw 116 '*USA% aft 010OV" 00 0 c fir ammim vot ti -w MAL AM aft fAZ adgl 441 I , ,!F -P ;, Ax, "t!i pve", @0)0 @*dOeS 49G)4@ WnOS 94@;O MOIA V 9).-@ f, 9 IW 44 "i ,il;4 Inducing Demand The key to the success of waterfronf development projects is the leasing or selling of space at a price high enough to cover development costs and ensure a reasonable profit for the investors and the developer Demand is the primary variable in determining whether or not private development will occur. In some urban Urban Development Incentives waterfront areas, the amenity of the water's edge is not enough by itself to stimulate the level of demand Alternative organizational structures to implement and necessary to cover the high costs of land acquisition, manage waterfront projects and innovative zoning and relocation, demolition, and public improvement. districfing techniques are not the only options available Local officials can stimulate demand for private to the public sector to encourage waterfront develop- development in a number of ways. One way is to ment. In fact, some cities have been very successful in institute recreational and cultural programs that will stimulating waterfront development by using conven- attract people to a waterfront location. In Baltimore and tional urban development incentives. The basic purpose Toronto, for example, if private development had been of the incentives--to alter downtown market conditions initiated before the implementation of cultural programs to promote development-is directly applicable to most (fairs, concerts, parades, art festivals, etc.) then it most urban waterfronts. To achieve this purpose, the public likely would not have been successful. In each city, the sector can increase the demand for developed space, waterfront had a tarnished image. To overcome this assist in land assembly, invest public funds in waterfront perception, events were staged that attracted people to improvements, provide special taxation policies, simplify the wafer's edge and provided them with positive, the regulatory process, and provide public facilities. rewarding experiences once they were there. 711 mob iS - - 794--, 3-19 An outdoor music festival at Harbourfront in Toronto, Ontario, Recreational and cultural programs that will attract people to a waterfront location are ways to stimulate demand for development. 62 Tax incentives for developers are another effective tool. By reducing taxes, the local government can increase the attraction of an urban waterfront project. Favorably pricing public services like water and sewerage can also reduce the cost of doing business for private firms, increasing the demand for space in the jurisdiction offering favorable rates, The public sector itself can be a major source of new Quick Take by Eminent Domain. Eminent domain is clemand for space. A public lease commitment for the power to take private land for public use, space in the new development sometimes makes it compensating the owner based on the value of the land considerably easier for the developer to obtain financ- for its current use. It is the major tool that redevelopment ing. By carefully structuring the terms for rent escalation authorities possess to create parcels of land for new and renewal options and through special arrangements, development. Quick take is a mechanism that allows a municipality can minimize the cost of space at the immediate public possession. Final disposition of the same time it encourages private development. action is accomplished after the taking, either by 'The public sector's decision to lease space should be negotiation or by court-determined compensation. This based on an analysis of the direct costs of the alterna- technique considerably reduces the time required to tives. Subsidizing private real estate development should, assemble and develop waterfront sites. If enables the not be the main motive for public leasing. But if leasing redevelopment agency to negotiate an agreement with is the most cost-effective alternative, the municipality 0 developer and commit itself to a delivery date for the can use its leverage as a maj .or grade-A tenant to make site before the assembly of land. possible a real estate venture that might otherwise not Ground Leases. Long-term ground leases are com- have materialized. The overall impact can be subsfan- monly used in publicly assisted waterfront development fially greater than if the public space were in a single- because of their mutual public/privafe benefit and .purpose government complex. flexibility. In. fact, some states prohibit the sale of state- Assisting in Land Assem6ly owned tidelands to private interests. Under this proce- dure, a local government purchases property for In many cities the major obstacles to waterfront development and then leases it to private interests under development are problems related to land acquisition, an agreement. The lease arrangement allows a local Efforts by private developers to assemble land for government to both encourage development projects waterfront projects are often unsuccessful. This is be- and control the manner in which they are operated. The cause developers typically encounter a fragmented lease normally provides for a minimum base payment pattern of property ownership, restricted property rights plus a percentage of income generated by the project. in the form of easements and deed, restrictions, railroad Thus, if the project does well, the city shares in the and utility righf-of-ways; and absentee owners who are income and can recover its costs. The Rouse Company's difficult to identify and locate, In addition,' special Harborplace project in. Baltimore's Inner Harbor is a waterfront features such as eroding shorelines and legal good example: the city receives $100,000 unsubordi- questions concerning ownership of submerged lands noted ground rent with escalations over time as well as and riparian wafer rights may present more problems. a kicker on the land rent of 25 percent of net cash flow The most direct means of obtaining property is of the project offer certain pro forma returns to the purchase of fee simple title. This includes acquisition of developer. Ground leases, moreover, can often be complete ownership in property by outright purchase, subordinated; that is', the city can execute a mortgage gift, or condemnation. If is, however, the most expensive of its land as security. for the development loan made to method of obtaining land, and cost often becomes the the lessee. If, the ownership cannot legally be subordi- limiting factor in acquiring necessary properties for nated by the city, as a public body, then if Js still waterfront, development. possible to subordinate the ground rent, thereby making Given these circumstances, local governments can most of the same mortgage security value available for help facilitate development by taking steps to alleviate development. .'land acquisition problems. In this regard there are For the developer, such long-term'leases can greatly several different techniques that can be used to make improve the net return on investment through improved land available for urban waterfront development. The financing terms, reductions in equity outlays, and tax techniques that might be used separately or in com- advantages. With a subordination clause in the lease, binatioh are quick take by eminent domain, ground the adv -antages are even greater The disadvantage is leases, inverse leasebacks, land writedowns, land that cash flow is reduced when the land is leased rather banking, land exchange, and relocation assistance. than purchased. 63 V-1 -IMAIll"I'll @'A -os t I 4r tansaw Ala YA ulows @tg Ws A AL A properly structured ground lease can have the some effect as a loan, decreasing the required equity investment (by eliminating the purchase price of the land) or the developer's risk exposure. The decrease in equity tends to increase the developer's return on The main advantages of such a program are that the investment. The developer can deduct the full amount of city can obtain large amounts of capital to purchase the lease payment from his income taxes. Had the land space at low cost and relatively small risk. In addition, been purchased and financed, only the interest pay- investors will be able to deduct building depreciation ments would be deductible. Of course, the lessee can from their taxes, because technically they are the still depreciate the improvements. owners of the buildings and property. Eventually, all Long-term subordinated ground leases also benefit the properties will revert to the city. The primary advantages city. Default on a lease could mean that the city loses its for Baltimore are that the city obtains capital for public land, but the default provision in the lease can be facilities at a low rate while stimulating inner, city worded so that only rent payments are lost until income revitalization, and does so without increasing the city increases or some other event takes place. The land debt, issuing municipal bonds, or providing tax incen- and improvements both revert to the city eventually. tives to individual owners. Leasing increases a cleveloper's leverage at little cost Land Writedowns. Land writedowns have been widely to the city. Subordinated leases provide even greater used by local governments as an incentive for private leverage at even less cost to the city if the project investment in urban renewal projects. This procedure succeeds. Although subordinated leases are highly cost- involves purchase of blighfed properties by the local effective, municipalities have seldom used them to government, clearance of dilapidated structures at attract real estate investment, perhaps because of public expense, and resale of the land to private restrictive state legislation or because of local govern- development interests. The incentive for redevelopment ments' unfamiliarity with them. of these properties typically occurs because the land By leasing its land or other property to private can be sold by the local government below the developers, the city can specify in the lease how the purchase price for land and improvements. property is to be operated and thus exercise greater Land writedowns reduce the amount of capital control than if it were sold outright even with covenants, needed by developers to finance local redevelopment because covenants are notoriously difficult to enforce. projects. This, in turn, reduces their equity requirement. In Leasing can also stimulate real estate development by addition, the sale of property at an attractive price may structuring payment terms adapfed to the project's allow the local government leverage with the developer requirements for cash flow. In other words, the ground in providing amenities, such as public access, open rent can be postponed until a stable, profitable return space, or other provisions that can be included as has been achieved for the project. restrictive covenants attached to the land transaction. Inverse Leaseback. A unique variation of the lease- The theory is that the tax revenues generated by the back arrangement has been instituted by the city of new development will eventually cover the public's Baltimore. This program uses a three-pronged contrac- investment expense. tual arrangement between the city, an industrial devel- Land Banking. Land banking allows a local govern- opmenf authority (IDA), and private interests. The goal is ment to acquire and assemble land suitable for to entice commercial and industrial operations back development and hold if until a suitable user is into the city. The basic procedure involves the city's identified. By using this technique a city can reserve selling newly renovated city property to private investors waterfront land when it becomes available and assem- and leasing the property back from them at relatively ble over time a waterfront parcel of suff icienf size to low rates, Lease payments are based on the owner's support the desired form of development. costs for items such as taxes, debt amortization, and Large-scale land banking has had little practical investment premiums. The industrial development author- application in North America because it requires initial ity's role is in financing the initial purchase of the capital outlays that are excessive for most municipal property by private investors. Because of its special legal budgets. Futhermore, large-scale land banks are usually status as a public authority, the IDA can borrow money long-term programs covering at least 20 years with at tax-exempt rates and in turn loan it to private investors significant influence over land values and the location at low interest rates. This allows the private party to and timing of private development. Because so much borrow at a low interest rate from the IDA, purchase land development control is left to the discretion of the usable property from the city, and lease it back to the local government, large-scale land banking often lacks city at a rate that just covers the debt service on the public acceptance and is therefore a politically un- loan and some other expenses. satisfactory approach. 65 one objective has been to consolidate waterfront properties for development. Private owners of industrial zoned waterfront land, for instance, may have the opportunity to exchange their property for city-owned lands that are better located or have easier access to transportation facilities. This technique has been success- fully used in the development of many urban waterfronts including Boston, Toledo, and New Orleans. A land exchange was a key element in the develop- ment of Canal Place-a $500 million large-scale mixed- use riverfront project currently under construction in New Orleans. The project is being developed by Joseph C. On the other hand, small-scale land banking pro- Canizaro Interests. The land exchange provided a grams are less expensive and more politically accept- mechanism for satisfying both the needs of the devel- able. These are usually labeled "advance acquisition oper and the city of New Orleans. In 1974, the city of programs" and are implemented by local governments New Orleans was in the market for property upon which as a hedge against inflation in land values or to obtain to build a plaza (later named fhe Piazza d'Italia). optimal locations for future public facilities. Conizaro owned just such a piece of land, The result Short-term land banks can be especially useful in was a mutually beneficial land exchange. Canizaro redevelopment of blighted areas. In these cases, land relinquished 1.5 acres of prime real estate valued at $2.2 banking consists of purchasing existing dilapidated million near the riverfront and fronting on Poydras Street, stnuctures, possibly rehabilitating them and then dispos- the main CBD thoroughfare. In return, the city surren- ing of the property at a rate that best meets the goals of dered 3.7 acres adjacent to Canal Street consisting the community of the particular time. partly of unused street right-of-ways valued at $1.7 Land Exchange. Land exchanges or land swaps can million, but with several stipulations attached. The city be used to reorganize land ownerships. The trade would have four years in which to exercise its right to between public and private parties is based on values build a riverfront roadway link to the tunnel near the set by an independent appraiser so that each party has Rivergate, an exhibition center across the street from a consolidated and usable land parcel. While land Canizaro's Canal Place. (The city did not exercise this exchange programs are used to achieve various goals, right.) The city would be held harmless in the case of 51@ E A, -solo 4R 3-21 The development of Canal Place, a $500 million large-scale mixed-use riverfront project currently under construction in New Orleans, was facilitated by a land exchange. 66 any law suits filed against Canizaro claiming the development devalued adjacent land because streets would be closed in the area. (There have been no such lawsuits.) Canizaro would bear the cost of relocating New Orleans Public Service Incorporated's (NOPSI) high power lines and towers, then estimated at a cost of $400,000.13 Relocation Assistance. Even though a public agency another major benefit from this kind of participation, in may not directly aid site acquisition, it may help a that it enables the local government to exercise some private developer to assemble a waterfront site by control it would not ordinarily have. The city may wish to helping to relocate space users occupying the property offer a below-markef direct loan even if a project does slated for development. Relocation assistance can take not require it financially when the city's interests are at fh.e form of loans and grants to pay moving expenses or stake. aid in finding or developing a new site for those who Developers find direct loans attractive for two reasons. must move. Both parties benefit: The relocated activity The lower interest rate means the developer's cost is has a chance to leave obsolete facilities and an lower If the loan is in the form of a second mortgage, inadequate location, and the community gains eco- privafe lenders may be more willing to finance the nomic benefits from new businesses. remainder of the project because the risk is less. Should Public Financing Assistance the project fail, first mortgage lenders are repaid before second mortgage lenders. However, most state constitu- A major part of local public assistance'fo urban tions prohibit the use of public funds for direct loans, waterfront development is funding. The infusion of public investments, or grants for business development, Many funds can tip the balance between feasibility and states have resolved this problem by enabling legislation infeasibility, and public financing can be used to allowing the creation of economic development corpo- leverage loans, grants, or equity funds from other rations or other such special vehicles that serve as a sources. The underlying objective of direct@ public conduit for city grants, loans, and contracts to private assistance normally is to stimulate private'investment. To entities. In Virginia, for example, the Norfolk Redevelop- this end, the type and character of public financing menf and Housing Authority has special status that .assistance and the timing of its availabilit.y (before, allows it to act as a codeveloper with private during, or after private development) must be carefully entrepreneurs. The Authority is currently involved in planned. several commercial and residential projects planned for The market for both equity and debt capital for real the city's waterfront. estate clevelopme .nt is fairly well organized and op- The public sector can also influence the availability of erafes nationwide. Therefore, most large projects com- financing for private development projects by stipulating pete for funds with other similar projects throughout the that certain types of loans be made in return for deposits nation and with other investment instruments such as of government funds in private financial institutions. This stocks and bonds. In a highly competitive capital technique is gaining in popularity as cities realize the market, a project that may benefit the community may concessions that banks are willing to make to receive not be able to attract the necessary financing from the large government deposits. While not a direct loan private market at affordable interest rates. Direct loans program, it can have somewhat the same effect in that from the public sector at below-market interest rates are it creates a supply of loan funds that otherwise would a solution to this situation. The public sector can borrow not exist. money of a lower interest rate because the interest it If funds are not available for direct loans, cities can pays is fax exempt. The interest it earns on money it also achieve somewhat the same results by guarantee- lends can therefore also be at a lower rate. Thus, many ing loans, thereby shifting some of the lender's risk to the projects that would not be feasible with'private financ- local government. If a public agency agrees to guaran- ing only can be made feasible with a public loan at tee repayment of a loan from a private lender, the lower rates, for part or all of the needed financing, chance of the developer's obtaining private funds Direct loans can fill a gap when no private funds or improves significantly, again because the risks to the insufficient funds are available for a particular portion of lender are reduced. Similarly, if the local government a project's financing needs. Beyond the benefit of agrees to lease or purchase the project at a percent- encouraging new development, local government gains age of projected market value in the event the projected return does not materialize, the project 13 Jone Brooks and Deborah Weeter, "Canal Place: A Clash of Values" becomes more attractive to equity and mortgage Urban Land (July 1982), page 5. investors. 67 Because commercial waterfront projects tend to generate substantially more tax revenues than they require in servicing costs, cities can negotiate with developers to reduce the surplus as a development Assistance Through Taxation Policy incentive. This is possible if a project will have a multiplier effect on local economic activity by genercif- Taxation policies. have a strong influence on urban ing increased fox revenues from other sources, The development, and local governments have adopted increased fax revenues from new adjacent develop- special policies specifically to encourage waterfront menf can be used to retire the debt on the public development. Property tax incentives, tax abatement, portion of the development. special taxation districts, and tax increment financing Many states have adopted legisla 'tion that allows are four methods used by citi@s to facilitate waterfront local governments to establish taxation districts. This development projects. approach institutionalizes the tax incentive mechanism Property tax incentives aid -waterfront development in and allows if to cover a broad area, The goal is usually two ways: First, they eliminate uncertainties about taxes to stimulate private investment in specific areas of the for the developer, and, second, they improve the community by reducing the tax burden on existing developer's cash flow by reducing taxes, particularly properties in the district. In this way, the tax district serves during the early months of a project when income and as an incentive for private investors to locate new expenses are unbalanced. Evidence on how effective enterprises in the area or improve and expand existing property tax incentives are for stimulating real estate structures. investment is inconclusive. Unless concessions are care- fully tailored to specific real estate objectives and offered selectively, they can become subsidies for construction that would have occurred in any case. Conversely, they can make possible marginal develop- ment that should not occur Tax incentives, however, are not necessarily the best way to encourage development. The local government must weigh the benefits and consequences to select the most effective type of incentive at the lowest public cost. The analysis should determine whether the tax incentive is critical in securing development and whether benefits exceed the taxes the city would have received. Tax abatement incentives are addressed to specific types of developments, projects, or areas rather than to changes in the overall taxation system. Tax abatement- in the form of fax stabilization, a fox freeze, or a tax exemption for a limited fime-means that the city encourages privately financed improvements in water- front areas by not collecting the real estate taxes on those improvements for a number of years or by freezing the assessment at the predevelopmenf level. The developer gains by not having to pay real estate faxes for a time, and the city gains from the economic growth that development encourages. The Laclede's Landing Development Corporation in St. Louis has been granted the following property tax advantoges: � During the first 10 years, the corporation pays faxes on the value of the property at the time of acquisition. No additional taxes are paid on improvements made to the site during that time. � In the next 15 years, the land and improvements made on the site are taxed at 50 percent of the assessed value. � After 25 years, the corporation pays full taxes on the property. This fax incentive program has been instrumental in the redevelopment of the city's waterfront. 3-22 The redevelopment of Laclede's Landing has been aided by tax abatement incentives. 68 Depending on the specific state enabling legislation, special taxation districts can be used to levy either regular ad valorem property tax assessments or special benefit taxes based on the value of the land excluding improvements. Regular ad valorem property taxes depend on market value and are based on the entire floor footage of a building as well as unpredictable market changes (for example, revenues received from was offered for any building which included some low- the property). income housing. The building and land are exempt from Special benefit taxes levied through special taxation taxation. In lieu of property taxes, the owner pays an districts, in contrast, are assessed using a fixed formula excise tax based on five percent of the gross income of based on the predictable factors of the property's front the complex plus $10 for every $1,000 of assessed footage or square footage. Revenues may be included valuation. The result is that owners of residential buildings in the formula as well, and the formula can provide a pay 12 to 14 percent of gross income in taxes while other sliding scale for payments. building developers are more likely to pay 23 percent.14 Tax revenues are used to refire bonds issued by the Urban redevelopment projects often result in subsfan- city (or the district itself) to pay for the improvements and tial increases in local property values, both on the services in the district. Depending on the specific state actual site and in the surrounding area. Depending on legislation, the bonds can be included in or excluded the local laws, these higher assessments can generate from the city's debt and tax levy ceilings. The bonds are greater property fax revenues for local governments, repaid directly from the tax revenues collected or from and tax increment financing is a method of temporarily the city's general fund, which is later reimbursed by the using these increased assessed values to provide funds special tax revenues. for redevelopment projects. A city can choose what kind of development it wants Tax increment financing establishes a method of to encourage in a waterfront area by selecting the financing urban redevelopment projects outside the factors in the formula. Allocations based on front general fund of a local government, which is derived footage benefit large multilevel buildings; those based principally from property taxes. This technique isolates on square footage.benefit small businesses. From the. the additional property tax revenues produced by viewpoint of the general public and the city govern- redeveloping and upgrading deteriorated properties ment, special benefit assessments allow the cost of and uses these revenues to repay the development providing public services in development areas to be costs, including retirement of the municipal bonds that passed on to the parts of the private sector that benefit were sold to finance construction of the public's share in most directly from the improvements. One drawback of the project. A general description of the procedure the method is the difficulty associated with allocating follows. State la'ws differ in some details. additional tax liability among the various private parties. * A local government adopts a plan for a redevelop- To attract private investment in the underutilized, - ment area and sells special tax increment bonds to decayed central waterfront, the city of Boston had to be finance the necessary capital outlay for facilities such in a position to offer development incentives to the as streets, bulkheading, parking, or land acquisition. private sector The city officials did this by granting * A redevelopment district is established in which the concessions to developers that wouldbelp to reduce the property values of all parcels within the district are risk of investment. For instance, the ownership agreement considered to be "influenced" by one or more of the for the Faneuil Hall Market was written so that the owner projects. In other words, property values within these has a 99-year lease on the buildings and land, and boundaries are expected to rise as a direct result of these are covered by a special tax arrangement. The the project, The total value of the property in the area owner pays no taxes for an iQitial period of time and is assessed and this becomes the "fax base" for the then pays on a basis of a predetermined percentage of district. the gross revenue produced by the businesses in the Each year, the additional tax revenue generated by market. City and state officials promised developers in higher assessed property values in the redevelopment the urban redevelopment project area that the Boston district (the amount above the. base level) is collected Redevelopment Authority would maintain control of the separately from other taxes and is used specifically to waterfront sites for 40 years from the start of the refire the bonds issued to help finance the redevelop- redevelopment program in 1964. This commitment ment project or to directly pay some of the project assured developers that the redevelopment program in costs. which they were investing would not be abandoned or When all outstanding debt is repaid, the tax increment significantly altered in future years. process ceases. Thereafter, the increased assessed Mercantile Wharf is another good example of Boston's value from the project creates additional fax revenues early effort to use tax incentives to stimulate waterfront for the local government or results in a lowering of development. The wharf was rebuilt as a mix of small general property tax rates, retail shops and residential units. Under Chapter 121A of the Greater Boston Real Estate Laws, a lease subsidy 14 Farrell, Development and Regulation of the Urbon Waterfront, page 11, 69 The initial phases of the Waterfront Park have recently been completed, and the third phase is under construc- tion. The park is scheduled for development over another three- to five-year period and will eventually include an esplanade on the riverfront, plazas, extensive open grassed areas, a public boat facility, community activity centers, and a larger center suitable for Tax increment financing has proven most useful in restaurants, retail activities, and entertainment. projects where relatively high-value business activities There are many positive implications for local govern- dominate. Industrial and commercial office buildings menfs that choose to use this technique. Tax increment and shopping centers are the most common applica- projects are designed to enhance the economic vitality tions, although housing can also be integrated into these of depressed central city commercial areas. They can development proposals. These types of land uses must be especially useful for revitalizing deteriorating water- be included so that a suff icienfly large tax increment will fronts situated near older commercial and industrial be insured and the outstanding debt will be retired enterprises with a high potential for adaptive use. within a reasonable time. In addition, this approach requires that those who Portland, Oregon, has recently used fax increment benefit directly from public investment in urban reclevel- financing as part of its plans for renewal of the opmenf pay the majority of the initial costs involved. This downtown business area and adjacent waterfront. In is a more equitable arrangement than funding by April 1974, the city council adopted the Downtown general obligation bonds where all taxpayers bear the Waterfront Urban Renewal Plan, which designated a expense equally. This technique may provide a new large portion of the waterfront and surrounding commer- source of revenue that a community can use without the cial district as a redevelopment area. The plan was need for special bond elections. In times of fight general in nature, recognizing that details would be budgets and antifaxation sentiments, this can be critical filled in as the planning process continued. Later that for local governments. year, the citizens of Portland voted to remove the legal The long-term nature of the increment bonds demon- restrictions that limited the use of tax increment financing strates a commitment on the part of local governments and opened the way for its use in the combined central to revitalize urban areas. This can be an important factor business district and waterfront program. in attracting other investments to the area. In addition, In 1975, a completed master plan for the waterfront these projects normally produce immediate and highly was officially adopted by the city council, along with a visible results, where returns on investment are realized plan for downtown transportation and parking. The plan soon after occupancy of the new structures. called for a series of public improvements that would There are also some negative aspects of tax incre- encourage private investment in the downtown area, ment financing. It may not be possible to integrate such such as replacing a four-lane highway with a mile-long programs with other tax incentive proposals that encour- waterfront park, providing free bus service in the age private investment. Tax abatement, for instance, downtown, and constructing short-term parking garages would not be compatible with fax increment financing to serve downtown patrons. The added revenues from because there would not be an increase in tax values the private development could then be used to fund for the length of time the abatement was in effect. In community improvements and a portion of the water- addition, projects funded in this monner must clearly front park. obtain land uses that are reasonably certain to produce With these developments underway and others antici- suff icienf tax revenues to meet debt repayment sched- pated, Portland sold $10 million in urban renewal tax ules. This tends to limit the range of elements that can increment bonds during 1976 and another $15 million in be included in redevelopment proposals. 1978. These funds were used to finance the first two The need to convince potential bond investors that the phases of the Waterfront Park, preservation and improve- development needed to repay the bonds will, in fact, ments in two historic districts within the urban renewal occur also discouiroges the use of tax increment bonds area, land acquisition for a parking structure, and other to finance initial or "up-fronf" costs. Investors in bonds related actions. prefer to have the development completed or of least Major private development began shortly thereafter. substantially underway before the bonds are sold. The U.S. National Bank of Oregon and a federal office Consequently, other sources of money are sometimes building built for and leased by the General Services necessary to finance initial costs. Administration added $23 million to the assessed It is sometimes necessary to wait for private develop- valuation of the area by 1977. Far West Federal Savings ment to occur The increased taxes from this develop- and Loan Association and Portland General Electric ment then can be used to finance the project's public consfnicted facilities valued at $60 million. These costs. Finally, fax increment financing may require projects alone have generated nearly $2 million a year special legislation that specifically grants local govern- in added tax revenues for the city. ments the power to use this technique. 70 Regulatory Simplification The regulatory patchwork that accelerated during the late 1960s and early 1970s was, in part, a response to environmental concerns and a public desire for greater participation in local land use decision making. In urbanized areas, these additional regulatory measures were placed on top of existing zoning ordinances, building codes, and other requirements. In many jurisdictions, the result has been a complex maze of. overlapping, and sometimes contradictory, regulatory Public Improvements specifications and permit requirements from various levels of government. To attract private investment in urban waterfront areas, Urban waterfronts are directly affected by these local governments can provide a range of Improve- additional regulations, especially in cases where dredg- menfs either adjacent to or on the project site. Since ing, filling, or construction in floodplains is included in waterfront areas are frequently characterized by out- project proposals. The result is a system of permit dated, dilapidated public facilities and inadequate requirements and regulatory controls that can take public services, a city's investment can be the catalyst months or years to pursue. Cumbersome regulatory for private development. Public improvements can procedures can therefore obstruct implementation of include upgrading elements of cifywide services (streets urban waterfront projects. and parking, storm and sanitary sewers, transit systems, There are ways in which the regulatory system can be utilities), providing waterfront facilities (bulkheading, streamline .d or otherwise improved as a means of piers, breakwaters, boat ramps), or constructing public encouraging waterfront redevelopment. Many commu- amenities (plazas, pedestrian pathways, landscaping, nifies supply developers with booklets and other explan- observation decks). atory.materials regarding the regulatory process. While A city's investment in major public facilities can not changing the system, this technique helps to reduce generate demand for specific kinds of private invest- confusion and misunderstandings about specific require- ment. For example, convention centers, transportation ments and procedures. Pre-application conferences terminals, public office buildings, and public recreation serve a similar purpose, Local jurisdictions use this facilities can spur the development of hotels, restaurants, technique to discuss potential projects with developers and shops. By selecting waterfront sites for public facili- and determine if a proposal is clearly inconsistent with ties, local governments demonstrate a commitment to existing policies or regulations. waterfront development that encourages private inves- Other communities have significantly improved the tors and developers. regulatory process by increasing the speed in which Many communities have provided public facilities as public agencies review applications and grant ap- a means of stimulating private development. New York provals. To improve the system, local governments have City, for example, is providing major utility improvements implemented the following techniques: of South Street Seaport; St. Louis has spent over $1 million � reorganization of review'staff and planning staff into at Laclede's Landing for public facilities; and Tacoma, geographic teams; Washington, has invested more than $8 million in public � computerized application processing and manage- funds to facilitate the redevelopment of the City ment; Waterway � "fast track" processing of minor applications; While a broad range of public sector initiatives can � joint review committees; be used to stimulate urban waterfront development, the � preparation of master environmental impact reports by diversity of approaches and techniques reflects the local government agency; tremendous variety of circumstances creating oppor- delegation of some approval authority to staff; tunities for development. The key for local governments is elimination or consolidation of some review steps. to select an initiative that best responds to shoreline These improvements should be used as examples of conditions and civic goals. The initiative must, above all, regulatory reforms rather than as models that can be relate to the needs of the development industry in order reproduced in all situations. Each regulatory system is to effectively generate the amount of private investment unique and requires special adaptations to a particular necessary to implement a viable urban waterfront set of circumstances. project. 71 IV The DWVW ent Process The opportunity for urban waterfront development exists when the difference in an existing property's value and its value in a changed state exceeds the cost of conversion. While numerous circumstances can create this fundamental condition necessary for development, a few factors are common to urban waterfronts. Demand by current users of a waterfront site can erode and thereby reduce values to the point where new development is feasible. Changes in environmental quality or revisions of land use ordinances and regula tions can allow a type of development not previously allowed. Changes in public facilities may also make new uses feasible. Finally, subsidies offered by local governments can create a difference in the property value. While the basic economic conditions leading to waterfront development are relatively simple, the appli- cation of these concepts to real situations is more intricate. This is because there is a limited, relatively fixed amount of waterfront land in an urban area. Despite the deteriorated condition or underutilization of an urban waterfront, the amenities and special opportunities, associated with a shoreline location create a value potential that tends to raise existing land values. In V addition, higher than average development costs, public sector objectives regarding shoreline access and use, jurisdictional overlap in governmental responsibili- 7 ties, and climatic variables can all increase the complexity of development. LL' 72 Regardless of how waterfront development oppor- tunities are created., certain requirements are common to all project proposals if they are to proceed. These include: � either a commitment to lease or purchase the finished space at a price that will cover costs plus a return or tax benefit sufficient to attract investors, or strong responsible for making sure that each of the many evidence that the space will be rented or purchased phases in the development process is carried out within a reasonable time after the project is finished; expeditiously and efficiently. For urban waterfront devel- � a site on which to build the project; opment, management is crucial. It is a complex � the necessary public services (water, sewer, gas, production process, and cost control, resource alloca- electricity, roads, telephone, and transit); tion, and scheduling are keys to the project's success. the capital required to acquire the land and to design Typically, there is a high level of public sector and build the project; involvement in urban waterfront development projects. the public approvals (zoning, design, and building This characteristic reshapes the traditional role of the regulations, streets or highway access, sewer connec- private developer More often than not, the developer tions, environmental clearances, and so forth) required acts in response to a public sector initiative instead of to permit the project to be developed. the other way around. Private developers' reactions to Meeting these requirements in order to produce a public sector initiatives are influenced significantly by waterfront project is the essence of development and the attitudes public officials have regarding the devel- the developer's basic function. The developer is the opment industry. For instance, if officials are antagonis- individual or organizaf ion--whef her public or private- tic, do not respect the legitimacy of the developer's that performs this function, regardless of that person's or activity, and take an excessive amount of time to organization's other responsibilities or duties. The devel- approve or deny requests, the pragmatic developer will oper is the manager of the development process and is look elsewhere for opportunities., W 7_7 7 < 0 LAI,- a) E 0 0 o 0 Z 0 4-1 The Waterside is a 125,000-square-foot festival marketplace under construction on the Norfolk, Virginia, waterfront. 73 The Predevelopment Stage The preclevelopment stage of a waterfront project begins with the initial perception of a need or opportunity for development and ends with the project Although the public sector involvement in waterfront packaged for implementation and construction. The projects varies, the development process is basically the three phases of activities-project planning and initia- same. Waterfront development projects proceed in three tion, project analysis, and project packaging-are stages that include five basic steps: directed toward identifying opportunities for develop- ment, formulating and testing alternative development Preclevelopment. strategies, preparing a program for project develop- � project planning and initiation (those actions that lead ment, and securing agreements between public and to an idea for a project and the subsequent steps private interests. During the first phase, the general toward implementation); nature of the'project is defined and the development � project analysis (feasibility evaluation and preliminary entity organized. During the second phase, economic, design); environmental, financial, social, political, and regulatory � project packaging (obtaining the formal agreements, factors are evaluated in detail. This analysis leads to a decisions, and approvals required to proceed with specific strategy for development and design. During implementation and construction of the project). the third phase, the necessary agreements and commit- Development. ments for construction and managing the project are project implementation (financing, leasing, design, drafted, negotiated, and approved by the various and construction). parties involved in the process. The preclevelopment stage ends when all of the Posfclevelopment. project characteristics are firmly defined. This means project management (management and mainfe- specification of the site, building size and configuration, nance of the project). space users, major tenants and/or operations, public It should be noted that this sequence is a simplification and private shares of development costs, sources of of an enormously complex process. In actuality, the five financial support, and the composition of the develop- fundamental steps are not necessarily discrete and may ment entity. During the preclevelopment phase it is merge or overlap in time. Furthermore, each step essential to continually reevaluate the development represents specific actions and decisions that are concept and refine the building program in light of inevitably influenced by a variety of unique circum- changing circumstances, new information, and clearer stances. projections. 77 4@ ""K .... ...... ""o N Q 2 al"N'l WNIF @'-""R" A, IMW'7447 !'411, "@' 'p V N ZM N, ON 6"W' "p, M@ 15P" N' YU FM@' R i "M i-, "U" J,' X_ 74 Given the time, range, and cost of activities involved, the preclevelopment stage is without a doubt the most critical part of the entire waterfront development process. The importance of detailed preclevelopment planning is magnified greatly by the special physical characteristics of - waterfront sites and the complex jurisdictional structure typically governing urban water front areas. Without careful research and comprehensive analysis the development potential of a waterfront site may not be fully realized, or the motivation might not be . . . . . . sufficiently credible to induce all of the necessary government actions. V Project Planning and Initiation 12 'A 41- The basic initial activities in the predevelopment stage are to establish a development entity, to analyze basic economic and physical conditions, and to formulate a general design and development strategy. The objective M is to create a development organization and approach that will effectively respond to the unique development Opportunity and produce a viable project, The general k planning and feasibility studies done at this time shape the profile of the development project and provide a basis for the more detailed studies required later on. 4-3 Harbourfront in Toronto is an example of a waterfront project that combines public and private development. The Development Entity Although many urban waterfront projects have been The composition of a development entity inevitably developed exclusively by public sector or private sector varies from city to city depending upon the nature of organizations, the type of development entity frequently public and private leadership, specific shoreline charac- best suited to deal with waterfront areas is composed of teristics, the financial requirements for predevelopment both public and private interests. While they remain planning and project implementation, legal and politi- essentially separate, these interests agree contractually cal constraints, and the individuals and organizations to perform services, provide funds, or make commit- having a special interest or involvement in the use of a menfs to build facilities. Harbourfront in Toronto, Ontario, city's waterfront. The development entity can be either is an excellent example: the public sector is investing an association of participants from the public sector, an $27.5 million in site and infrastructure improvements organization formed by private enterprise, or an entity required to support $200 million in private development.' composed of both public and private interests. There are several different forms of public/privafe Public or quasi-public development organizations are development entities. The key is to tailor the partnership empowered to participate in development projects to in a way that is responsive to the unique combination of achieve public objectives-perhaps to revitalize an public and private interests and is capable of resolving underutilized waterfront district or to encourage the waterfront development problems. The public sector preservation of structures in an historic area. Public often takes the lead in stimulating private participation development entities can use public funds to finance because it has the necessary management responsibility waterfront development projects and the power of but locks the capital resources to initiate development. eminent domain to acquire land. Almost all urban waterfront development projects While public development entities offer certain advan- have been initiated by one of the following types of tages, waterfront development projects have also development entities: resulted from private developers responding to market long-term property owners who, as a result of their incentives with little participation by the public sector. knowledge of the market and conditions affecting The development entity is commonly composed of local their own property, recognize an opportunity for business leaders concerned about generating commer- development and pursue it, either individually or by cial activity or investors speculating on the potential joining with a professional developer; value of waterfront land. Active participants frequently include landowners wonting to redevelop their proper- "Harbourfront: A Look at the Future," (Toronto, Ontario: Harbourfront ties or businesses needing new or renovated spaces. Corporation, October 1980), page. 2. 75 Space users-offices, hotel managers, and cultural and recreational facility operators-also initiate devel- opment projects. In some cases the business is water- related and a shoreline location improves operation. In many instances, waterfront sites are selected because the amenities offered by the shoreline setting provide the business with a competitive advantage in the market- place or an image in the community. Thus, companies such as banks and insurance firms place a high value on the exposure and prestige that can accompany an urban waterfront location. These project initiators usually enter into lease agreements with developers or contract with developers to have the space constructed. Harbor Plaza, located near downtown Stamford, Connecticut, is a good example of how major space 4-4 Harbor Plaza, located near downtown Stamford, Connecticut, users generate waterfront development. Constructed by consists of three five-story office buildings containing 650,000 the Collins Development Corporation at a cost of $80 square feet of space. million, the project consists of three five-story buildings � major space users such as corporations, hotel chains, totalling 650,000 square feet. The site offers spectacular or retail and restaurant operations requiring space in a panoramic views of Stamford Harbor and Long Island given area who work through professional developers, Sound. This attribute certainly helped in convincing the act as their own developer, or develop space in Continental Group, Inc., to locate their world headquar- partnership with a professional developer; ters at Harbor Plaza. The company signed a 20-year � public agencies such as development authorities or lease for 500,000 square feet of office space. port commissioners; Local governments, through various public agencies � for-profit, partnerships or corporations composed of such as development authorities and port commis- entrepreneurs or local corporations who use investor sioners, can take the initiative to stimulate waterfront equity to develop projects; development. The type of government involvement � local nonprofit, tax-exempt development corporations, varies from programs designed to actively stimulate either privately, publicly, or jointly funded and gov- project development, through direct assistance to erned. private developers, to policies that passively encourage Property owners sometimes initiate waterfront develop- development by indirectly supporting private investment. ment projects because they wish to maximize the value The role depends primarily on the need for development of their properties or because they want to invest in and the need for public intervention in the private development without selling the property and paying market. While public agencies can be relatively passive capital gains taxes on it. In contributing part or all of the when development requires only the usual planning and development site, the landowner becomes a key management of municipal responsibilities, urban water- participant in the project. front development is rarely limited to this function. A case in point is the Freemason Harbour project in Public agencies can provide a more positive climate Norfolk, Virginia. In 1973, the Norfolk Redevelopment for investment in urban waterfronts by taking an active and Housing Authority (NRHA) was preparing a neigh- role to facilitate development. Some cities have success- borhood development plan that included portions of the fully encouraged waterfront development by paying for central city waterfront. At about the same time, some front-end planning, by providing public improve- representatives from Chessie Resources, a subsidiary of ments, and by implementing zoning incentives and the Chessie Railroad, expressed interest in redeveloping regulatory revisions. its waterfront properties. Originally, Chessie wanted to Many cities have taken the lead in generating develop the site on its own, but the tremendous costs waterfront development projects. Depending on the involved in providing the necessary public parking, circumstances, local government actions range from street improvements, and bulkheading made it Qdvan- land assembly and writing down the cost of sites to tageous to work with the NRHA. The authority and the acquiring, restoring, and leasing buildings for private railroad agreed to proceed as a joint venture and use. Direct public assistance is justified if development of divided the cost of predevelopment studies and other the waterfront is intended to enhance recreational activites. opportunities or be a catalyst for urban revitalization, 76 Profit-making development entities are the primary instigators of urban development projects. The entities are traditionally partnerships or corporations composed of entrepreneurs or corporations who use investor equity with sources of equity and mortgage money With direct to develop projects. Although in some cases private access to this type of information, the private developer developers and investors have been hesitant to pursue has a finger on the pulse of the real estate development urban waterfront development opportunities because of industry and is the most likely candidate to initiate the unusually high risks involved, they, nevertheless have waterfront projects. initiated waterfront projects in cities throughout North Investors seldom elect to initiate waterfront develop- America. ment projects. Only when other investment opportunities A professional developer's primary job is to combine are not available or when those that are available do the technical and financial resources needed to not meet their particular requirements do investors take successfully implement a project. In organizing the the lead in preclevelopment planning. Development development entity, the developer's objective is to blend projects compete for investment equity and available technical expertise and detailed knowledge of local projects. may be priced to yield inadequate returns for conditions with strong management capabilities. The the investor. If this is the case, then an investor will either development team may be made up of professionals choose to make investments in alternative markets, from a number of organizations but must have strong initiate a project in partnership with an experienced central leadership. Since urban waterfronts have special developer, or initiate a project on his own. On occasion, physical characteristics developers usually contract for banks and insurance companies, which provide long- the technical capabilities required to develop a site. term financing of real estate development as part of Specialists with experience in waterf ront development their business, use their knowledge of real estate to may be asked to handle market and financial feasibility initiate projects for their own investment account. studies, leasing, engineering, design, marketing, and The Pickering Wharf project in Salem, Massachusetts, property management. Few private developers maintain is the result of investor interest in a particular waterfront in-house technical staffs to perform all of these tasks, In area. The mixed-use project is a joint venture with the either case, developers maintain close contact with real 'Salem Five Cent Savings Bank, a primary participant. estate brokers and major landowners who are familiar The bank's participation in the development, as 50. with waterfront properties which have the potential for percent owner, added credibility as well as financial development. Developers also maintain close contact stability to the development entity. ski @ 7@ Vr -4@ III, 4-5 Investor interest in a particular waterfront area led to the redevelopment of Pickering Wharf in Salem, Massachusetts.' 77 has the ability to grant property fax relief to individual property owners as a redevelopment incentive. The Laclede's Landing Redevelopment Corporation is now in the seventh year of the development program. Over $38 million has been committed by investors to acquire and rehabilitate 30 buildings. When completed, the project The Laclede's Landing Redevelopment Corporation in will consist of 45 rehabilitated buildings containing one St. Louis, Missouri, illustrates a somewhat different million square feet and another one million square feet approach. In 1974, the Landing was 75 percent vacant, of new construction. populated by only a few small companies. Late that The nonprofit development corporation is another year, a group of businessmen, property owners in the vehicle that can involve local public and private Landing, and local government officials met to discuss leadership in waterfront development. Corporations how the Landing could be redeveloped. A new shield both sectors from many of the liabilities and risks approach was formulated allowing the Landing to be that may be incurred during project initiation and redeveloped as a large-scale mixed-use project involv- development. By creating a separate corporate entity ing a number of owners. This concept called for the the coordination of both public and private resources is formation of a for-profif redevelopment corporation half much less complicated and difficult. This approach has owned by property owners and half owned by members a number of other advantages: of the business, financial,, and institutional community. * independence from city government: Private corpora- The corporation was formed under Chapter 353 of the tions are not restrained by limitations often imposed on Urban Redevelopment Law of the state of Missouri and public agencies--lengthy reviews, red tape, re- strictions on operations, and uncertain budgets. * expansion of public powers: Nvate institutions can acquire property and finance real estate ventures using procedures and techniques for negotiating, contracting, and financing that would not be permissi- ble for a public agency, and they are free to employ professional expertise without lengthy hiring processes. e privacy of negotiation: The sale or lease of property@ including public property, technical services, and construction contracts, can be negotiated without continual public scrutiny or restrictive bidding proce- clures. Local nonprofit development corporations can be either privately, publicly, or jointly funded and governed, P ublic corporations, in addition to the general advan tages of corporate status, have important powers that can be used to initiate waterfront projects: the power of eminent domain, the power to sell tax-exempt revenue bonds, the right to receive revenues from the sale or 7 lease of property, and the authority to levy property taxes, special assessments, or fees for specific public improvements. With a separate nonprofit development corporation, several previously dispersed management functions are centralized under one organization. This situation greatly increases a city's ability to coordinate public and private actions and respond to the jurisdic- tional complexities of waterfront areas. Potential Development Approaches A, From the individuals or organizations interested in waterfront development an entity is selected or formed AMP.- to undertake actual planning and development of the project. The development entity must be meticulously constructed to suit the particular requirements of the project in the specific' conditions of its location. While it is true that the development entity will differ for almost 4-6 The redevelopment of Laclede's Landing in St. Louis is being directed by a for-profit redevelopment corporation, 78 every waterfront project, the variation reflects the tremendous importance of assembling the proper mix of interests and expertise to develop a project. Without an organization that is finely tuned to the special circum- stances associated with waterfront development, a Photo credit: Greg Pease/Baltimore project may fail in spite of its other commendable attributes. In a strong market, private developers and investors can proceed with development without soliciting public contributions or special assistance. Having selected a project that can be fully supported by an existing market, the private sector may elect not to seek public involvement beyond the usual regulatory requirements. Although many waterfront projects have been privately implemented without direct public involvement, this approach remains the exception rather than the rule for waterfront development, the reason being that within a strong urban market, waterfront sites must compete with other city locations for new development, Unless there is a tremendous demand for some type of water-depen- dent use, the benefits associated with locating by the water's edge may not outweigh the additional costs involved with waterfront development, As a result, public sector involvement often occurs even within a city with a 4-7 The National Aquarium has been a valuable addition to Baltimore's strong development market in order to make waterfront Inner Harbor. sites competitive with other city locations. For a development project that is to combine the Public implementation of waterfront development public and private sectors, there are three alternative without direct private involvement usually occurs when approaches: A private development entity can be public entities construct buildings or facilities for their responsible for overall project development. A develop- own use. Convention centers, aquariums, public office ment entity that directly combines public and privafe buildings, parks, and public marinas are examples of development under the terms of a legally binding joint such projects. The only potential private involvement venture agreement can direct project development. A comes if the local government hires a private architect public development entity can manage project devel- and retains a contractor to design and construct the opment and subsequently involve the private sector Of facility. Funding comes directly from public monies or the three approaches, the last one has been used the from a publicly secured source. most often to develop urban waterfront projects. It is a Typically, urban waterfront development involves some more conventional approach: the public sector alone type of public/private partnership. In recent years a few carries out preclevelopment to the point where if offers a local governments have emerged as entrepreneurial specific waterfront site on the market for development, partners in waterfront projects by adopting a more This approach has been employed successfully in the business-oriented stance toward development and as- development of large-scale waterfront projects such as suming a direct share of the risks and rewards in Harbourfront in Toronto, the Embarcadero in Son Diego, development projects. This type of aggressive approach and Baltimore's Inner Harbor necessitates an agreement between public and private The tremendous success of these three. waterfront sectors very early in the predevelopmient process. projects clearly demonstrates that public agencies need The willingness of the public sector to enter into to be cautious about proceeding too far before sophisticated arrangements with the private sector is involving the private sector If public improvements are primarily the result of recognizing that waterfront redevel- not compatible with private sector requirements or opment ultimately requires the attraction of continuing unrealistic constraints are written into a request for private investment to be successful. The special physical development proposals, then the waterfront site may be and institutional constraints to waterfront development unattractive to potential private developers. It is desir- can be overcome by public assistance, but the able to have private sector experts in financing and continued viability of the waterfront cannot be sup- marketing on hand to ensure that the public sector ported by public assistance alone. Private market forces expectations are reasonable. simply cannot be left out. 79 project, it is important to examine a number of factors at this time. Basic studies should be performed to deter- mine site suitability, the scale of the project in terms of Once the decision has been made to work with a physical size and equity investment, probable capital private developer, the public sector should solicit its costs, and potential sources of financing. Preliminary participation early in the predevelopment stage, Early planning and design activities should be initiated to selection of a development team is especially important define the project's characteristics for later evaluation for a high-risk project in a poor market because the and refinement. decisions made during preclevelopment affect the In choosing an available site, the development team success of the project. For the developer, early involve- must be aware of the potential limitations of any ment ensures coordination and proper management of particular site. Public or private landowners may actively a complex process and provides lead time to test the promote the use of their properties or an existing user local market. For the public sector, it means that the may wish to relocate, thus making the site available. initial concept and later evaluations and refinement are However, it is not uncommon for waterfront property based on informed and experienced judgment. By owners to promote potential sites that require extensive encouraging participation and competition, a devel- preparation for development and, in fact, may be oper can be selected after technical studies are unsuitable for a major development project because of completed and the development agreement formu- - physical constraints or use restrictions. In many cities, lated, and the public sector can be assured that . waterfront sites are offered for development as part of decisions, are based on realistic appraisals of financial an overall urban redevelopment program administered feasibility. When developers are not formally involved by a public agency. These sites may. carry stipulations early in the process they should at least be approached designed to achieve a particular environmental or for consultation and advice. social objective that is not realistically attainable under There are several other reasons for involving devel- existing market conditions. opers early in the preclevelopment stage of a project. Any false assumptions made by the development ,For one, developers will have ample opportunity to entity during the site selection process can prove to be attract prospective tenants to the project, thus making very costly later on. To judge the merits of a waterfront the proposal more financially secure. Secondly, the site, the development team should compare it with direct involvement of developers with project concep- alternative sites in terms of the following criteria: tion and refinement provides a balance between * general location with respect to urban centers of creativity and financial practicality. And.finally, devel- activity and major transportation patterns; opers are in a position to supply reliable projected cost e cost of land acquisition, clearance, and site prepara- estimates and operating budgets for various elements of tion;, the project. *potential difficulties in assembly-multiple ownerships, Despite these important advantages, this early par- land with title problems, and dislocation of existing ticipation in a public/private project may also create a businesses and residences; few problems. For instance, from the viewpoint of the e special use restrictions or regulatory controls; developer, entering a partnership with a public entity e potential compatibility of surrounding land uses; usually means greater risks and longer lead times for e requirements for supporting public improvements such project financing and construction. A developer nor- as access roads, public piers, bulkheads, parking mally spends as little front7end money as possible before facilities, or utility systems; securing short- and long-term financing. Public entities, e unusual site condition&-either land- or water-related- however, often conduct long, drawn out-feasibility that can provide special opportunities or pose prob- studies and negotiations before committing to a specific lems for development; approach and financial participation. To overcome this * the size and shape of the site; conflict in operating styles, many local governments * the property owners' willingness to sell or lease the have picked up some of the private costs incurred property or to participate financially in development during preclevelopment., or as a tenant. Project Proposal When public agencies analyze sites in conjunction with waterfront revitalization programs, the sites must be Once the need for a waterfront project has been evaluated in terms of the public objectives they might identified and the development entity organized, the serve-possibly generating new activity in a declining participants must agree on a general development area of the central city, providing a public recreational concept for the project.This initial proposal should opportunity, or improving public access to the water's embody the goals and objectives of the development edge, Site evaluations by public agencies, however, entity as well as reflect the development potential of a should be supplemented by private sector expertise to particular urban waterfront. Since this concept will begin formulate a realistic judgment regarding development to define several of the general characteristics of the feasibility. 80 Site evaluation usually results in a single site's identifi- cation for further investigation. Occasionally one or two other sites will be considered viable alternatives through conceptual ization, and occasionally the selected site will have options for adding or subtracting adjacent development. This factor greatly enhanced the feasibility parcels, which will be evaluated as the project is of the project. These two contrasting situations show the analyzed and defined. Narrowing the options to a single impact of regulations on the development process. best site reduces the need for multiple analysis and During this embryonic stage of project development, design studies. the development entity must identify the potential The initial analysis of opportunities in the private spectrum of public sector initiatives that could aid the market and potential public contributions generally project. In many North American cities government determine a waterfront project's potential uses. Obviously participation in waterfront development has been the preliminary analysis of economic opportunities does extremely valuable if not essential. City governments not have the scope of detailed market studies. Nev- have recognized that waterfront areas represent mq . or ertheless, if should provide a sound basis for making community assets demanding special public sector some fundamental decisions regarding the project's involvement. As part of the preliminary economic scale, type and mix of uses, and space allocation. By analyses, the developer should investigate opportunities conducting interviews with knowledgeable public offi- for local, state, and federal participation in the project cials and private individuals who can identify possible in terms of providing a share of the physical compo- tenants or uses for the project and reviewing available nents, financial support, and technical assistance, data and studies, the development entity, can formulate a general picture of the market opportunities in terms of - ----- land and water use, For each project use under consideration, information and data should be collected concerning the current space on the market, the lease terms of the space, the availability of vacant prime space, preliminary identification of potential major tenants, and the level of support for financing and constructing a project and the potential for a waterfront location to enhance the value of the use. The developer should also examine the geographic variation of the market by looking at regional characteristics, expressed I I A in terms of population, income, expenditures, and primary competition. W'. Based on this preliminary evaluation of the project site and market, the development entity is in a position to consider the potential mix of project uses. The assess- menf should be a comprehensive review of the potential for integrating land and water uses. In determining the project components, extreme care should be taken to investigate the special regulatory implications of select- ing a certain use for a waterfront location. In Tacoma, Washington, for example, the decision to 7 07 include marinas in the redevelopment of the City Waterway created the need for extending state harbor Ar lines out from the shoreline. After about a year and a half of discussions, applications, and hearings, the state J approved extension of the harbor lines for about half a mile.on each side of the Waterway, opening the way for marina development. Nothing could be built over the water until the state created these new leasable areas. The existence of a dilapidated marina on the site of the Palmer Point project in Greenwich, Connecticut, pro- vided the developer with a special opportunity. Since A, the marina was already in place and simply required upgrading, if was not subject to the numerous regula- tions and permits that generally pertain to marina 4-8 Marina development in Tacoma, Washington's City Waterway could not take place until the state government had approved an extension of the state harbor lines, 81 The initial design analysis begins with an investigation of the site and the factors influencing its condition. Waterfronts are dynamic environments and many interre- lated variables must be carefully assessed. The objective is to determine the development's feasibility and In assessing the public contribution to a project, the suitability for the site within the context of changing development entity must evaluate the public sector's environmental characteristics. The preliminary design commitment to waterfront development, The importance effort focuses on major parameters such as the size and of this factor cannot be overemphasized, particularly combination of project uses instead of design details. when development phasing may extend for several The analysis should include a Complete reconnais- years. Both the strength and durability of the commit- sance of the site and its surrounding environment, ment should be carefully evaluated. If public sector interviews with local officials and citizens, and a review support is strong but subject to change with every of existing plans and reports pertaining to the site. When election year, then the value of the support may be completed, the investigation should reveal the following: questionable. A review of the records documenting 9 neighboring land and water uses; involvement in previous projects should reveal the e access to the site by highway or railroad; reliability of the public sector to cooperate and respond e shoreline configuration and erosion potential; positively to unforeseen problems and conflicts. If no e water resource characteristics (water quality, water P depth, flow dynamics, flood potential, etc.); other waterfront projects have been recently develo 'ed, then a developer should at least review public plans 9 soil and subsoil conditions and depth of bedrock; and proposals to gain an understanding of the public *extreme climatic variations; sector atf itude toward waterf ront development. e exceptional views of and from the site; The design of a waterfront project is not an isolated 9 pedestrian circulation; activity that takes place as one step in the development * the relationship at ground level with surrounding process. Rather, it begins with formulating the project buildings and open spaces; proposal and continues throughout development. During * the type and location of utility services; predevelopment, design activities range from initial site o easements, covenants, and deed restrictions; evaluation to the preparation of preliminary plans e distinctive natural or cultural features. detailed enough for financial analysis of the project. Furthermore, an attempt should be made to learn During this initial effort, alternative sites can also be about the heritage of the study area and previous uses analyzed. of the site. The site reconnaissance by all means should Legend Inn., - -11 11 --a- MISM Pmpeny Not to be AqWed N@ Land tal D"IPIGM Wth @edd- Accoo, 1, tM C= Land @Ibbad to MI @tenfl,l 4" J. x: 0 d L@,@,@,,"@L,,L,,@,@""r,,,@",@@, C: g E Iteall't a. C ftbile Sh E AD 14 1" , : @'0 "'PRIP Pedoo, C: 'A""A" -"PMXKV'1' '@v' 'M N , N W@ @Nn `3' @_J "S 0@' n' 4r. % Itions .............. I. 1P 0@ @c ,MEAN= 0 el 4-9 The basic site investigation was a fundamen tal step in the J[] L development of Baltimore's Inner Harbor F-7 82 include a tour of the waterfront by boat. Surprisingly enough, designers sometimes work on urban waterfront projects without ever viewing the sites from the water. This omission defeats the general purpose.of the site mine the intensity of water uses. This initial architectural analysis.. It is helpful to document the observations and findings interpretation should not be carried so far into the design made during site analysis on a base drawing or map of process, however, that it becomes insensitive to the the project area. Graphic presentations of this informa- financial advantages of staged development, that might tion form a composite picture of the problems and be identified later. opportunities influencing project development. The initial design investigation, the alternative pro- Following the site and vicinity analysis, the design grams for site development, and their associated , group prepares several conceptual site development implications provide the basis for creating a develop- designs based on the initial findings of the economic ment strategy. The preliminary design effort serves as a and site analysis. These reflect responses to questions of vehicle for testing the site's capacity to accommodate land and water use, density, building type, relationship alternative proposals for development and reveals the between activities, land assembly, open space and limits that may be imposed on a project. If site limitations pedestrian movement, vehicular circulation and parking, unreasonablyconfine development, the development and utility systems. entity can investigate alternatives and may, in fact, During the preliminary design of a waterfront project if discover new opportunities for development. The initial is advisable to explore the development cost and time definition of pedestrian and vehicular access, dredging implications of basic alternative design concepts. The and bulkheading requirements, and related site im- design group should focus on practical solutions to provements may show the need for greater develop- satisfy functional and aesthetic objectives. If a design ment to support the project costs or a change in the alternative is going to dramatically change the cost or activities to reduce development costs. time period required to implement the project then its Formulating a Development Strategy merits should be viewed in relationship to those changes. After initial economic and design studies have Given the costs of preparing permit applications and delineated several development options, the develop- the potential delays associated with the review and ment entity must formulate a preliminary conception of approval process, it is frequently a good design strategy the project or projects worth investigating in greater to seek a development concept that will avoid any detail. This will establish a framework for creating a modification of the water resource. This approach development strategy. For example, a single project eliminates the need for dredge and fill permits, harbor concept may immediately appear superior and simply line extensions, and impact mitigation measures. In the require further detailing and evaluation. On the other redevelopment of Baltimore's Inner Harbor the decision hand, the project concept may have several possible was made not to request the Army Cops of Engineers to variations meriting further consideration and study. periodically dredge the harbor The decision was based It is to the developer's benefit to limit as much as on two factors: the existing water depth was sufficient to possible the number of options for further study. Restrict- allow for the planned recreational uses, and the involve- ing the alternatives not only reduces time and expense ment of the Corps of Engineers would have significantly of subsequent analyses, but also simplifies the relation- delayed the shoreline development schedule. ships among the interests involved in the project. The design group and the development entity work Development options, however, should not be rejected closely together to establish a relationship between the without careful study. Predevelopment is a time when project's marketability and its physical form. The goal is creativity and innovation can be easily integrated into a to produce an initial proposal that expresses the project and the developer should recognize this and be character and major components of a project that can receptive to new ideas. Furthermore, large-scale proj- be developed over time and will attract both tenants ects are usually more complex with a greater number of and patrons for the proposed uses. The team examines tradeoffs to consider the degree to which shoreline conditions, water qualify The development strategy should contain the following and.flow dynamics, parking and access requirements, elements: floodplain and building height restrictions, and historic 9 a concise statement of the project's principal function; designations affect each proposed use. The conclusions 9 a development program that lists the components of generated by this analysis are correlated 'With an the project, their approximate square footage, proba- interpretation of the results of initial marketability studies ble public and private responsibility, possible staging, to obtain fairly specific building envelopes and deter- and potential major tenants; 83 highly specialized water-related use such as an aquar- ium or ferry, as well as the magnitude of demand for residential, retail, and office space, These studies should � schematic designs that identify the boundaries of the not only estimate current demand, but also include a site and illustrate specific relationships to adjoining projection of future market expectations as well as properties and existing water dependent uses; determine the market premiums a waterfront location � preliminary cost estimates, based on sizes of uses could generate for each use. This information will help multiplied by unit costs, plus any unusual cost determine the timing and phasing of the project as well elements; as the potential mix of uses. a list of all regulatory requirements and a schedule of The method of evaluating potential markets for target dates for obtaining approvals and permits; specific uses varies among developers. While general � an estimate of income and expenses, debt service, agreement exists concerning which factors to examine, and equity return for each participant and the there are differing opinions about the relative signifi- probable funding sources for each project element; cance of each indicator. To avoid misinterpreting market � a definition of the type and amount of public sector information, it is sometimes best to rely upon consultants participation in the project; with local experience, � a general plan and schedule for proceeding with the The first step in.evaluafing market demand is to review project, including target dates for completion of the regulatory and legal controls relating to waterfront detailed planning and design, construction and development. Federal, state, and local laws and occupancy, and critical decisions to be made. policies have a major impact on waterfront use and This information is a preliminary@ general statement rather may encourage or discourage certain types of develop- than a highly detailed description. Its credibility is ment. If, for example, regulations do not permit office or established by the results of analyses supporting the residential development under any circumstances, then strategy's feasibility. It should contain enough information the market analysis should be altered accordingly. The to provide a basis for completing preclevelopment market analysis should be structured to reflect other activities, yet be kept deliberately flexible in order to regulatory and legal conditions. In many cities, water- allow for further evaluation and refinement. The objec- front projects are approved for development only if a tive at this juncture is to define the options that can be water-related activity is included as part of a mixed-use molded into a specific project and development concept. If the required use is either nonrevenue program. producing (fishing pier, waterfront park, docking facility), or not supported by market projections, then the overall Project Analysis project feasibility will depend on whether or not the markets for the other uses are strong enough or the The second phase of preclevelopment is devoted to premium associated with a waterfront location high the intensive analysis, evaluation, and refinement of the enough to offset the cost of providing the water-related development strategies. The development factors identi- use. Furthermore, some jurisdictions have placed a fied and examined cluring project initiation must be moratorium on development that requires changing the thoroughly investigated and evaluated in terms of both configuration of the shoreline. This type of restriction their immediate influence on project feasibility and their creates a pent-up demand for marina space and susceptibility to change in the future. Three major docking facilities that a developer may or may not be studies-a market analysis, planning and design analy- able to take advantage of Whatever the circumstances, sis, and a financial analysis.-are undertaken to make it is extremely important for the market analysis to this evaluation. Consultants with experience in waterfront account for the impact of regulatory and development development are usually called on to conduct these controls. studies. There are a number of factors that are usually Market Analysis examined to determine the market for traditional urban uses, The markets for retail development, office develop- At this point, the development entity must study ment, hotel development, and residential development general market conditions and the demand for specific are commonly tested by studying certain basic indica- types of activities the project could satisfy. Analyses of tors, These factors are: regional population trends and characteristics, employ- Retail Development. ment projections, distribution patterns, and data about e annual growth rate of retail sales in the region and a disposable income supply clues to the general market. comparison of downtown and suburban locations; An analysis of the volume and origin/destination charac- 9 the relationship of the regional growth rate of retail teristics of existing water traffic will begin to define the sales and population; general market for various water dependent uses. 9 the waterfront area's historic share of regional retail Specific market studies determine the demand for a sales; 84 � trends in the type of retail activity in the downtown area-specialty retail outlets, personal services, or competition with regional and community shopping centers: � total current and projected employment downtown, its Hotel Development, geographic location relative to the waterfront, and the 9 survey age of existing hotels, the total number of disposable income of downtown employees; rooms, the annual occupancy rate, the average room � survey of retail space existing,- under construction, or rate, the yearly number of rooms sold, the annual gross planned for development in the next five years; income, and meeting room capacity; � the impact of publicly sponsored waterfront improve- e total air and rail passengers to and from city; ments; 9 trends in nonagricultural employment in the region; � the existing mix of commercial activity in the waterfront 9. location of existing or planned convention facilities area of the city. and hotel development. Office Development. Residential Development, * survey of existing office space to determine total * existing employment levels by type of occupation and leasable square footage, amount of square footage projected trends in industrial growth and employment occupied by primary and secondary tenants, and distribution; amount of vacant space; * disposable family income; 9 rent and lease terms of existing and future tenants; 9 age grouping, marital status, and family size of * information about plans for future building renovation regional population; and office development; e rate of population growth and. household format ion; * survey of firms likely to consider expansion or reloca- 9 market absorption rate for the past 10 years and tion and their present lease terms; existing vacancy rate; 9 current and projected trends in business functions. e survey of existing and proposed housing stock. Intl 41701 4A0 Market synergy was an important factor in the development of Baltimore's Inner Harbor. 85 design plan. In this respect, the design is not a highly polished plan or set of detailed drawings but rather an interim statement of planning and design decisions based on the in-depth analysis of specific factors. The market analysis of a mixed-use development Since this work takes place more or less concurrently concept is somewhat more complicated. It must take with the detailed market analysis, significant findings into account the market synergy created by combining made during the market study should be communicated to the design team. Likewise, the interim results of the three or more mutually supporting uses into one large- planning and design analysis should be shared with the scale waterfront project. Market synergy alters the consultants conducting the market analysis. This interac- market potential of each individual use in two WayS.2 tion will allow the development team to assess the First of all, it provides on-site market support through the environmental, legal, and financial implications of each interplay of economic activity among project compo- development option at the same time as it makes a nents. For example, a person in a mixed-use project market evaluation. (residential) may also work (office), shop (retail), and The planning and design analysis should begin with a accommodate (hotel) visitors there. Secondly, if creates general assessment of the environmental impacts pro- an improved market image and penetration. That is to duced by each development alternative. In most cases, say, the combination of multiple uses in an integrated the feasibility, cost, and timing of waterfront projects are development with special waterfront amenities creates a significantly affected by environmental concerns. Just "special address" and thus enhances the marketability, because a shoreline development site is in a highly of all project components. urbanized, intensively used location, a developer cannot When waterfront areas are in need of full-scale assume that the impacts of the project will be revitalization the mixed-use concept is particularly inconsequential. For waterfront developments, the most appropriate because it produces the critical mass of severe impacts frequently occur off-site and a few years development necessary to create an attraction and after a project has been constructed. provides the full range of services and facilities neces- An environmental impact statement (EIS) may be sary to support a variety of project uses. Some of the required for a federally assisted project or in jurisdictions more successful large-scale waterfront redevelopment specifically requi.ring one. Preparing the report may programs, such as Toronto's Harbourfronf and Baltimore's entail special studies and could result in extended and Inner Harbor, have used the mixed-use concept. A expensive delays; therefore, the need for an EIS should mixed-use development magnifies the importance of be determined early to allow sufficient time for studies project phasing and management. and reviews. In addition, all federal,,state, and local Regardless of the development concept, the market laws and policies concerning waterfront areas should be analysis defines the range of possibilities for attracting reviewed to determine their influence on proj .ect feasi- activities and tenants to a project. The results, however, bility. must be qualified to reflect the specific conditions of a Specialized planning and design studies conducted waterfront location. The analysis may conclude, for during this phase may include investigations of any example, that because the water is an amenity, the potential problem areas identified by the initial site project will attract a larger share of the regional market analysis or design study. Questions regarding such than similar projects without this advantage. Or it might factors as dredge and fill requirements, the load- reveal that despite the amenities offered by a waterfront b6aring capacity of existing pier structures, drainage site, limited access to the property negatively affects the conditions', traffic and parking demands, and special marketability of particular uses. The point is that for climatic conditions must be answered to determine the waterfront projects, conventional market studies must be feasibility of a preliminary design, These studies should finely tuned to account for the influences of various site be structured to assess both the immediate impact and characteristics. The analysis is valuable in two ways: it the long-range implications of each factor. provides technical data the developer can use to select Engineering studies of existing piers, docks, and water the specific project components, and it also adds a resource dynamics are often conducted at this time to great deal of credibility to the proposal in negotiations quantify existing and future conditions. The importance with public and private participants in development. of this information cannot be overemphasized. In Planning and Design Analysis Alexandria, Virginia, for example, a study was made of a city-owned industrial site located along the Potomac During this phase of preclevelopment an intensive River to provide the technical analysis needed to planning and design analysis is performed to test and complete a comprehensive design plan for develop- refine the design concept and its alternatives. The ment of the site.3 Among its many findings, the report objective of the analysis is to arrive at a schematic stated that one pier was in generally good condition but 2Robert E. Witherspoon, Jon P. Abbett, and Robert M. Gladstone, 3 Torpedo Plant Dock and Piers: Technical Analysis and Design Mixed-Use Developments: New Ways of Lond Use (Washington, DC.: Recommendations (Alexandria, Virginia: City Department of Planning ULI-the Urban Land Insfitute, 1976), page 74. and Community Development, July 11979), page 28. 86 i building 10 building 2 building 3 ---------------- j dock ,15M I t hip Plan A I existing I "S ac rWth PIT P'Tr WI 0 .C: 2) 10 building 2 building 3 1 5; L - - - - - - - - - - J L -L - j d 'I - - - - - - - - - - - - - -a d X 110ft b0ift (D < a) E I Va CL CD L72 0 Plan B r existing I E 0 hlh sdmi ng facility -a 4" WE, 0 '45 n ol rtrh 0 5i, d.M-W bWldhV pier Al MW5 on "QR extensi -4 n typial -i- hip -ing I-Mion @7 0 C/) 4-11 Two preliminary site designs were prepared for the development of a marina and docking facilities in Alexandria, Virginia. 87 BULDING OVER PARKI.N.G.TO another one needed a new superstructure, the dock D MA)UMIZE VIEW aW needed minor repairs and rebuilding, and 8,000 cubic yards of silt would have to be dredged from the basin to ZZ- provide a satisfactory water depth (10 feet) for use by small pleasure craft. Two preliminary site designs were prepared for the development of a marina and docking facilities to complement the total redevelopment of the Torpedo Plant complex (four buildings on a five-acre RESERVE FOR IPUWG site, two constructed during World War I and two during -XI@::`:. World War 11): The report estimated that the pier ... D SPACE improvements and dredging called for in Plan A would X cost $1,667,000, If Plan B were implemented the cost e would be $1,881,000. In order for the developer of th :::X Torpedo Plant complex to absorb these costs, the return from the redevelopment of the buildings must be hig enough to satisfy this requirement. Traffic and parking studies are frequently made to allow project designers to identify major access routes, available parking, and primary pedestrian routes within the existing transportation system. The key is to balance ------ the activities in the project and the demand generated for access and parking with the capacity of the system. VE L It should be noted that certain mixes of office, residen- - ----- tial, shopping, and entertainment uses encourage the efficient use of access and parking because each use BUILDINGS TO HE* WIND SCRE generates a peak demand at different times. Further- more, with a large-scale, multiphase redevelopment program, sites marked for future development can be used as interim surface parking facilities to accommo- date the initial demand for parking. Structured parking X., can be added later as the program nears completion. RE SE RV E UdE SPACES While many urban waterfront sites are accessible by SOUTHWEST WIND DE LECTED BYX -EEN 8, POSITIVEE alternative forms of transportation (bus, subway, ferry, bikeway), the extent to which these alternatives reduce X- the demand for automobile access and parking will depend on many secondary factors. Furthermore, re- quirements for public access to urban shorelines may significantly alter the type and location of the project's 0 C: transportation elements, -- ----------- A key element of the development plan for Laclede's 6 Landing in St. Louis, Missouri, was a strategy to accommodate pedestrian and vehicular movement 0 within the redevelopment district. This strategy, to be implemented on a phased basis over a five-year period, 0 called for most of the vehicular parking to be located on the perimeter of the district with new construction required to contain some parking capacity for its 0 proposed uses. Within Laclede's Landing the pedestrian was given first priority and the development plan stated ... 02 which streets should be closed or partially closed to .......... vehicular traffic to attain this development objective. In some cases specialized studies are made of 0 specific conditions or seasonal variations in the micro- .................... climate of a waterfront site or area. Climatic conditions X: :. : .71;1..;.. may dictate covered pedestrian spaces and pathwa ............... ys' ...... ...... 4-12 Response to climatic variations was one of the main principles guiding the design of Harbourfront in Toronto, 88 affect the costs for heating and cooling, and require For each development alternative, specific conditions alternative building arrangements. These considerations should be defined. While it is usually not possible at this should be made prior to selecting a final design. time to obtain a firm commitment from a major tenant, Response to climate was one of the main principles in the developer must be certain that such space users planning the development of Harbourfront in Toronto. can be attracted to the project alternatives. It would be While the city's summer climate is pleasant with fresh senseless to consider an alternative calling for a major breezes from Lake Ontado, from November to May the weather can be very bleak and severe with the hotel tenant or marina operator if market studies cannot coldness made more extreme by' icy winds. The identify a potential candidate. Typically, each develop- development framework for the project articulates ment option will influence the probability of attracting, several design concepts to mitigate climatic impacts, such a tenant. This relative probability is a significant Buildings, for example, should be arranged to shelter factor in selecting a final development program and people from the westerly winds and contain features, must be weighed against other project benefits. such as covered walkways along the ground floors, Private sources of equity for each alternative are also which can be glass enclosed in winter and opened in evaluated at this time. Investors may wish to syndicate a summer. for-profit group or enter into a limited partnership. The developer and major tenants may also contribute equity. Financial Analysis Preliminary financial decisions must be reached for each critical element of project financing. Once the design and market studies have begun to The development entity must also identify potential narrow the project alternatives and provide more sources of public financing for each alternative. This can detailed information and data about project compo- take two forms: either direct contributions of facilities or a nents and activities, it is possible for the development percentage of overall development funding. Since many entity to prepare a preliminary estimate of development public objectives (improving shoreline access, enhanc- costs, refine the pro forma analysis, and identify public ing recreational opportunities, rebuilding deteriorated and private funding sources. The rough calculations urban facilities) can be integrated into a waterfront made earlier can be refined based on better informa- development project, there are typically excellent tion and more exact data. Project cost estimates, equity opportunities to secure public sector financing. For each and mortgage requirements, and public capital require- potential source of public financial participation, how- ments can be calculated with the degree of certainty ever, the developer must examine the possible political necessary to formulate a final project plan. problems which may exist. Cost estimates are made by determining the unit costs In assessing the advantages and disadvantages of for each component of the project. The cost of a alternative funding arrangements, the developer should marina, for example, is calculated by estimating the realize that financing requirements can change signifi- cost'of construction, building, materials, and equipment cantly as economic conditions, the money markets, and per boat slip. All cost estimates. should be prepared by -is counting government policy change. If the developer qualified dost' estimators with waterfront development on certain circumstances to remain constant throughout experience in the vicinity of the project site. Regional the development pro'cess,t'hen these assum Iptions must experience is very important in preparing cost estimates be articulated and objectively evaluated; for waterfront projects because of the impacts environ- mental variables (climate, tidal and flow dynamics, soil Preferred Design and Development and subsurface conditions) can have on engineering Program and construction techniques. Although this is a prelimi- nary analysis, the estimates should be calculated within The development team at this point in predevelop- 10 percent of the final cost figures. Failure to do so will ment has determined the following information for each create problems either by producing a false sense of of the alternatives defined in the development strategy: economic feasibility or constraining any change in the e site requirements, cost, and potential difficulties in project that may increase costs. acquiring property; The earlier estimates used to prepare the,pro forma * a preliminary design portraying the project in two- and analysis should be refined at this point. The new pro three-dimensional form; forma evaluation should correspond with the more e the potential advantages or disadvantages of the accurate project cost figures. The detailed pro forma project in terms of regulatory, environmental, timing, analysis must be done when a preferred design and and political issues; development program has been selected. e an assessment of the project's market, including the After the preliminary costestimates are prepared, the size and characteristics of the demand and the development entity is in a position to consider funding impact of the waterfront location on the demands for sources for the project alternatives. Potential major particular uses; tenants who can contribute to the basic financing e a development program listing all components, land structure and who will attract other tenants can be and water use relationships, and the general space identified from the.list prepared during project initiation. allocations of the project; 89 While if is necessary to scrutinize each alternative in � cost estimates for constructing and equipping the detail, selecting a preferred development program project described in.the development program; should not become painfully difficult or time-consuming. � a refined financial pro forma analysis; The objective is to reach agreement on a single project � a preliminary, definition of public and private financing and to define that project in terms of its scope, financial sources and potential problems concerning them. feasibility, timing, and management. Once the final decision has been made, the development team is Based on a comprehensive evaluation of this informa- capable of preparing the final preliminary design, tion, the development team must define a preferred development schedules, and operating plan, cost project, Because of the complexities involved in water- estimates, a financial pro forma analysis, the financing front development, this decision should only be made program, and a cost/benefit analysis. These activities after carefully studying the positive and negative provide the framework for all subsequent project implications of each alternative, In many cases this negotiations. evaluation leads to the formation of a composite project While financing and design issues may demand from two or more alternatives. immediate attention, special care should be taken by The development team must also determine the the development entity not to overlook the importance degree of risk associated with each element of the of maintenance and management as a factor in preferred project and prepare.: contingency approach selecting a preferred development program. Without a to allow for future adjustments" This is absolutely essential doubt, one of the most common deficiencies in for large-scale mixed-use projects that include major waterfront development is a failure to estimate the need public facilities or require construction over several years. for postclevelopment operation and maintenance. Urban Thus, a project incorporating 100 luxury condominium shorelines are subjected to corrosive environmental units in an uncertain market should have an @option for a forces (wave action, high winds, saltwater, freeze/thaw smaller number of units that will be consistent with future cycles, and marine organisms) that can dramatically market conditions. It is often necessary to reduce high increase the operation and maintenance requirements risks and increase low yields by publicly funding parts of of a clevelopmentproject. A marina basin, for example, develo pment components sucti as piers, bulkheads, and may have to be dredged every five or 10 years plazas. Furthermore, private uses that are marginally depending on the expected silfafion rate. Bulkheads cost-effective (water taxis, entertainment establishments, and pilings may need replacement after a few severe exhibition space) can be rescheduled to later stages of storms. development after the high-yield components are in Another reason why waterfront development generally operation. has higher maintenance and operating costs is because 4-0 W, - W-1 AM. 4-13 A model of the preferred design and development program for the Spodina Quay portion of Toronto's Harbourfront project. 90 the projects usually contain a large percentage of public areas and facilities. In many cities, public access to the waterfront is not simply permitted, it is actively J encouraged. This commitment for public use must be matched by an equally strong commitment of public funds to maintain the facilities. Operating funds, however, are difficult for local governments to provide consistently, For this reason, a municipality may elect to hire the private developer to maintain public areas in a joint development. This kind of arrangement has certain advantages: it is more ...... economical because two management entities will not be necessary for the same site, and it avoids potentially uneven levels of maintenance or subsequent disagree ments; over quality of care. In addition, most developers prefer private sector responsibility of a joint project. Although a specific agreement is not negotiated of this stage, the feasibility of such an arrangement should be 4-14 Enhancing waterfront areas and providing public access to the determined. Whatever the arrangement, the develop- shoreline generate economic returns that are difficult to quantify. ment team must identify operating and maintenance expenditures that will be required for all uses. The pro forma analysis is best accomplished after cost Given the final preliminary design, development estimates have been prepared and after basic assign- schedule, and refined cost estimates, the development ments of responsibilities for construction and operation team must recalculate the costs for each component of have been agreed upon. Most developers, however, the preferred project and the cumulative total project insist on various degrees of pro forma analysis much cost. If the project is a joint development, then the earlier to evaluate alternatives. public capital program and public operating costs for The next, somewhat concurrent step in determining the public components are included. The completed cost feasibility and desirability of the preferred development estimate summarizes all private costs and public costs project is the establishment of a financing program that for the project. identifies all requirements for private and public funding The financial pro forma analysis and the cash flow in each phase of development and operation. The analysis constitute the two most important fools for program reflects the assumptions and findings of the pro evaluating the financial merits of a projecf.4 The pro forma analysis and development schedule. The principal forma analysis combines estimates of all capital and purpose of the financing program in projects involving operating costs and revenues to paint a financial public/private partnerships is to reach a full understand- picture of the entire project in operation. Its objective is ing between the public and private participants about to indicate the probability of a successful project by each party's financial obligations. indicating expected income, operating expenses, and A cash flow analysis is based on the initial formulation net operating income. of the financial program and evaluates its feasibility. The The analysis is a process of determining a project's cash flow analysis defines cash requirements at any financial feasibility. From a first cut if evolves through point during the life of the project. Its primary purpose is several refinements to an adopted pro forma analysis to test the project's capability to generate a sufficient and budget for design and cost control, It is refined return to make it a viable investment compared to other further after preliminary cost estimates until it is ultimately investment opportunities. The focus on investment over adopted and backed up by contracts. Preliminary pro time is its essential difference from the pro forma forma analyses can be used to determine optimal analysis, financing conditions and to negotiate public contribu- The cash flow analysis can also be considered a tions that will make the project financially possible. refinement of the pro forma analysis, representing a more comprehensive financial evaluation. It does not 4 For a more thorough discussion of pro forma financial analysis and account for other reasons that a project may be discounted cash flow analysis, see David Sirota, Essentials of Real desirable-for example, civic betterment or corporate Estate Investment (Chicago: Real Estate Education Company, 1978); image-but it does provide potential equity and long- Lincoln W North, Real Estate Investment Analysis and Valuation (Winnipeg: Saults and Pollard, 1976); John L. Hysom, "Financial term investors with an assurance that the project will Feasibility Analysis" in The Real Estate Handbook [Homewood, Illinois: stand on its own financial feet. It also provides a way to Dow Jones-Irwin, 1980); and Urban Land Institute, Optimizing Develop- ment Profits in Large Scale Real Estate Projects, Technical Bulletin 67 identify the need for greater front-end or long-term (Washington, D.C.: author, 1972). public participation. 91 there are solid markets for a variety of uses, then the opportunity costs of a project can be significant. To a large extent, the cost/benefit analysis is a A cost/benefit analysis is the public sector's technique reflection of a community's values and priorities. It is for evaluating the "profit" to the community from public sometimes helpful to identify the highly subjective factors investments. It attempts to quantify public costs (in many contained in the evaluation and deal with them instances, these costs cannot be measured in dollars) separately. If the analysis is objective and factual, then it and compare them to benefits (which may be even will have greater credibility and usefulness. harder to quantify). The tangible, economic returns generated by enhancing waterfront ar .eas and providing Packaging the Final Product public access to the water's edge do not reflect the All of the designs, analyses, and plans completed total value of a development project in terms of civic during earlier phases of predevelopmen If must now be pride and urban identity. Obviously, a meaningful cost/ translated into contractual agreements that commit benefit analysis for a public/private waterfront develop- each participant to specific management and financial ment project can be very difficult to devise. The inherent obligations. The commitments deal with land disposition, problem of placing a dollar value on aesthetic and conditional leasing, and public funding, and they form social benefits is further compounded by the inability to the basis for the final development agreement between determine the market impact of the project. For all participants. example, the construcfion of a new waterfront retail The negotiations that take place at this time are center may be viewed as a source of totally new taxes, based on the knowledge and information gained but the tax income generated by a new retail facility through previous evaluations and a willingness to deal does not necessarily represent totally new income with economic realities. Some amount of trust on the part because many of the shoppers expected to use the new of the development team, the public officials, and center are already served by existing retail stores. To the citizens must be present. Any of the participants involved extent that the new retail facility will capture market in the negotiations may employ consultants experienced growth rather than absorb an existing market, the center in complicated real estate transactions either to conduct will generate new revenues. This condition is also true of negotiations or to advise negotiators. other forms of development such as restaurants, office buildings, and hotels. Site Acquisition and Disposition The cost/benefit analysis must also give consideration to the proposed staging of the project. Typically in the Acquiring the waterfront site on which the develop- development of urban waterfronts, public costs are ment will take place is one of the most critical phases of concentrated in the first phase of a project to provide preclevelopment. Most developers will not sign land infrastructure improvements, dredge and fill operations, acquisition agreements or general development agree- and pier or bulkhead reconstruction. The first -phase, ments until they have secured sufficient lease commit- however, is when there is the greatest risk and lowest ments to receive permanent financing on the project. return on investment. While the investment in public Typically, there are three times during the development facilities may be needed to stimulate private develop- process when land can be acquired: (1) before the ment, there is no guarantee that later phases of private project initiation, (2) during predevelopmenf, with the development will materialize, 'Therefore, if public benefits public sector often bearing the risk before the develop- depend primarily on the second or third phase of ment agreements -are executed, or (3) during design, development, then it may be difficult to establish the which takes place in the development stage.5 public justification for the project in strictly financial As previously discussed, in many-cifies the major terms. obstacles to waterfront development are problems Another important factor in determining the project's related to land acquisition, More often than not, benefits is the impact of not proceeding with the developers encounter a fragmented pattem' of property proposed development. If the decline in the physical ownership, restricted property rights in the form of and economic condition of the waterfront is allowed to easements and deed restrictions, railroad and utility continue then the city's overall financial health is rights-of-way, and legal limitations related to the owner- adversely affected. On the other hand, if the proposed ship of submerged lands and riparian water rights. project will serve as a catalyst for economic expansion, Overcoming these obstacles can'be difficult and time- the city's financial situation is positively affected. consuming. When assessing project costs it is important to consider There are basically three approaches private devel- the opportunity cost of a project. Urban shorelines are opers can use to acquire waterfront land for develop- limited resources and using a waterfront site for one ment. If few parcels are involved, and if all the owners project precludes its use for other forms of development. agree to sell, the best approach is to assemble the Unless there is strong competition among various land and water uses, the opportunity cost of a specific 5 Ralph Basile, et al., Downtown Development Handbook, (Washington, project may be somewhat theoretical, Conversely, if D.C,: Urban Land Institute, 1980), page 82. 92 required parcels as rapidly and quietly as possible. This is particularly true if land prices are escalating rapidly because of speculation. On the other hand, if many tauronfs; a variety of office projects including new parcels are necessary@ then it is advisable for the speculative buildings, small corporate buildings and developer to acquire the key parcels first. industrial building renovations for office use, totalling The second approach is for a developer to deal with about 600,000 sq.ff.; a public waterfront pathway a real estate investor who has assembled a site by system; a specialty shopping complex; and an athletic gradually purchasing properties when they become club. available. While this approach is clearly less desirable The private developer can secure land by a contract because land prices are usually higher, it may be the of lease or sale or by an option agreement. In a only feasible alternative for an outside developer contract the buyer and seller agree to terms and The third approach is to assemble a site from conditions for sale or lease, whereas in an option waterfront property owners who are interested in equity agreement the prospective buyer has the right, for a participation in the project. The Johns Landing develop- consideration and within a specified time period, to ment in Portland, Oregon, is a good example of this lease or purchase the property at a prearranged price. approach. Land assembly for the $100 million project Lease arrangements are more common for waterfront occurred when owners of the Jones Lumber Company projects than projects in other urban locations. In many entered into a limited partnership with developer John D. cases, waterfront lands are in public ownership and Gray and other Portland investors to acquire the land of managed or controlled by a public agency. For the B.P. Jones Furniture Company, and, subsequently, instance, in San Diego most of the waterfront property other properties adjacent to the lumber company up to the high water line is under the jurisdiction of the prop" along the Willamette River Of the 11 limited San Diego Unified Port District Commission. The Commis- partners, seven were lumber company property owners. sion leases parcels to developers in conformance with There was one general partner, Car Barn, Inc., a an accepted master plan. In other cities waterfront lands corporation owned by John P. Gray, which was formed are part of a downtown redevelopment area and to develop, manage, lease, sell, and dispose of the 75 parcels are leased to private developers for projects acres of declining industrial land. The project has been that meet the objectives stated in redevelopment plans. built in phases, with a construction time of about 10 In Boston, the central waterfront is included in a 100-acre years. It contains about 500 dwelling units including both redevelopment area that has been the responsibility of apartments and condominiums; several waterfront res- the Boston Redevelopment Authority since 1956. '7 ';,'1 .1 7 4-15 The Johns Landing development site in Portland, Oregon. 93 if necessary, allocates funds for the organization's activities, establishes a schedule for development, and commits the city to the construction of specific public improvements or the provision of certain services. The Private Sector Commitments organization managing the redevelopment program, in turn, negotiates separate development agreements with One of the final preclevelopment responsibilities of the private developers for each element of the program. development entity is to secure preliminary commitments The redevelopment of Laclede's Landing in St. Louis, from the potential tenants and lenders. While typically it Missouri, was facilitated by a very special cooperative is still too early in the development process to obtain agreement between the city and the Laclede's Landing binding agreements from these private sector interests, Redevelopment Corporation, The corporation prepared the developer is in a position to solicit a conditional a development plan and submitted it to the community expression of intent. This is a key step in completing the development agency Once the plan was approved by preparations for project development because the the agency and the city's board of aldermen, the mayor preliminary leasing and lending commitments enable of St. Louis signed a contract with the Laclede's Landing the development entity to assure both public and Redevelopment Corporation, thereby designating it as private participants that the project is receiving sufficient the official developer of the area. The cooperative support in the marketplace. development contract enabled the corporation to grant Obtaining tentative lease commitments is critically property tax relief under Chapter 353 of the Urban important because it is a direct reflection of the viability Redevelopment Law of the state of Missouri. Furthermore, of the development program. In this respect, it is usually it clearly stated the intention to mix the rehabilitation of necessary to have commitments for 40 and 60 percent existing structures with new construction, specified the of the project in order to pursuade lenders to support its intensity and type of uses on a block-by-block basis, development. In addition, preliminary commitments by committed the city to spend approximately $1 million for major tenants, such as a hotel operation or a corporate site improvements, and outlined how the Redevelop- headquarters, helps to convince other potential tenants ment Corporation would receive income. to make a similar commitment. Depending on the financial requirements of the project, the development entity may wish to solicit equity participation from one or more of the primary tenants. Since this type of agreement is more definitive than a preliminary lease commitment, the negotiation process is longer and more involved. The exact terms of a tenant's financial interest in a project must be clearly spelled out prior to implementation of the project. Public Sector Commitments The implementation of an urban waterfront project VirM Stwe' AlicyI cannot occur until public and private sector clevelop- ment responsibilities are clearly stated and formally agreed to by all of the parties involved in the project. While this requirement could conceivably be satisfied by one development agreement between the developer 7- -W and the city, typically it requires a series of formal V commitments involving other parties such as redevelop-. T I ment authorities, port commissions, and federal agen- cies. Generally, the set of agreements is determined by the complexities of a particular project, When several interrelated development projects are -scale waterfront redevelopment included in a large program the initial requirement is to formulate a cooperative agreement between the city and the organization managing the development program. The cooperative agreement typically states the city's jusfifi- cation for implementing the project, authorizes the managing organization to acquire and dispose of land 4-16 Redevelopment of Laclede's Landing in St, Louis was facilitated by a special cooperative agreement between the city and the Redevelopment Corporation. 94 Once the Redevelopment Corporation was desig- nated as the official developer of Laclede's Landing, it created two other vitally important documents that are still instrumental in its development activities. The first document is the Parcel Development Agreement-an Long Range Financial Plan agreement between the property owner and the Laclede's Landing Redevelopment Corporation setting 1980 dollars the terms and conditions under which the property $000's owner can proceed with plans to develop Landing 11,000 properly. It allows the Redevelopment Corporation to 10,000 provide planning and analysis for any given parcel. The property owners must submit development plans, archi- 9,000 tectural specifications, and a financial strategy for their Total Expenditures parcel to the Redevelopment Corporation for review 8,000 P-4-4 and approval. Once the plans are approved, a /I contract is signed permitting the property owners to 7,000 receive a tax abatement for 25 years. Thus, the 6,000 agreement provides the stability lenders and investors are looking for while maintaining the flexibility necessary 5,000 Federal Grant to accommodate changes dictated by various devel- opment factors. 4,000 - The second important document is the "Urban Design Guidelines" which expands upon and refines the 3,000 - Laclede's Landing Development Plan.6 These guidelines were formulated to: (1) assist the Laclede's Landing 2,000 Redevelopment Corporation in determining policy for a 1,000 et__@ - ----- T_ wide range of environmental design issues, (2) provide Self-generated Income developers and architects with preliminary design 0- I I 1 -1 criteria to avoid duplication and lower front-end costs, 80/1 81/2 82/3 83/4 84/5 85/6 86/7 and (3) assist the Redevelopment Corporation and agencies of the city of St. Louis in the development of standards for the design and maintenance of capital Private Investment Plan improvements. The Harbourfronf Development Program in Toronto, Total Federal Investment to the End of Ontario, is based on a cooperative agreement between 86/87: $20 million the Canadian government, the city government of Total Estimate of Private Capital Invested to Toronto, and the development corporation. Harbourfronf the End of 86/87: $241 million Corporation was chartered in 1976, The shares of the 1980 dollars corporation are owned by the federal government, $000,000's which also owns the 92-acre Harbourfront development 90 tion is appointed by the federal government in consulta- site. The nine-person board of directors of the corpora- 80 tion with the chairman of metropolitan Toronto and the Private Investment mayor of Toronto. 70 In June 1980, the federal government gave final approval to a development framework, committing itself 60 to a seven-year plan, financial scheme, and necessary 50 funding, An operating agreement between the govern- ment and the Harbourfront Corporation was then 40 - entered into, which gave the corporation the authority to manage and develop the site in accordance with the 30 - principles in the framework. Also in June 1980, the city of Toronto passed final bylaws amending the official plan and zoning bylaw 20 with respect to the Harbourfront site. A comprehensive master agreement between the city and Harbourfronf 10 Public Investment was also approved. Taken together, these city approvals 0 @ @- f 4-+4, regulate specific plans and the form of development on 80/1 81/2 82/3 83/4 84/5 85/6 86/7 6 "Urban Design Guidelines," (St. Louis, Missouri: Hellmuth, Obota, and 4-17 These two graphs illustrate the financial and investment Kossaboum), page 1. commitments contained in a cooperative agreement between the Canadian government, the city government of Toronto, and the development corporation for the development of Harbourf ronf in Toronto. 95 The Development Stage During the second stage of the development process, the site. Detailed quay-by-quay plans were subsequently project implementation occurs. The start of the develop- drawn up and reviewed by the city. ment stage signals the completion of several important A request for proposals is issued by the Harbourfronf preliminary activities. By this time the project's major Corporation for every major component of the develop- objectives and components have been established, the ment program. The corporation negotiates a separate development entity has been organized, and prelimi- development agreement with the private development nary plans, designs, and feasibility studies have been firm selected for each project. completed. Furthermore, a development program has Every development agreement is tailored to fit the been clearly defined, permits and approvals obtained, particular project or set of participants. In general, public and private financing responsibilities agreed however, the agreement states the intent of the parties upon, and a general development schedule estab- to undertake and complete the project, which is lished, described in appended drawings and statements, sets The preclevelopment events define a project's loca- forth each party's responsibilities, and spells out the tion, scale, use, and cost. The activities in the second financial requirements and commitments for each party. stage of the development process focus on financing, It includes safeguards for ensuring appropriate timing leasing, design, and construction. While these basic and availability of funds and conditions for each party tasks transform a project proposal into physical reality, to allow for project changes because of inescapable the timing of financial support and the activities of the changes in conditions. professional designers and building contractors must be Some urban waterfront projects are initiated using an carefully coordinated to produce the project that meets interim agreement to proceed with design and construc- the objectives formulated during preclevelopment. tion before more detailed agreements can be worked out and approved. This procedure was used in the Financing development of the Georgetown waterfront area of Following the completion of predevelopment negotia- Washington, D.C. A 1979 cooperative agreement was tions, the development entity concentrates on financing entered into by the mayor of the District of Columbia, and leasing the project. While the two objectives can the chairman of the National Capital Planning Commis- be pursued independently, it is important to closely sion, and Georgetown Harbour Associates to initiate and coordinate these efforts in order to firmly establish the ensure the coordination of public and private planning and development of the waterfront area along the project's financial basis and meet cash flow projections. Potomac River (between the Francis Scott Key Bridge Securing financing and leasing agreements may entail and Rock Creek extending from the shoreline to K both firming up commitments made during preclevelop- Street). ment and initiating negotiations with other potential The parties involved in the redevelopment thought the lenders and tenants,' joint public-private agreement was necessary for several Project financing is without a doubt the most funda- reasonS,7 First, the Georgetown waterfront consisted of mental element of the development process. It ultimately land owned by various public agencies and private cleterm.Ines the fate of a development proposal by parties. Second, exemplary redevelopment of such a governing how much of the project will be implemented large area under multiple ownership required a coordi- and when if will be built. In this respect, investors are nafed planning effort by the concerned public agencies fac.ed with a basic question: Does the potential return and private interests. Third, if was in the public interest to on investment in a waterfront project justify the level of achieve a lesser intensity of development than that per- financial exposure? Many different factors related to the mitted under existing zoning regulations. Fourth, imple- strength of the primary tenants, the financial objectives menfation of a coordinated plan required mutual assur- of the developer, and the nature of a particular project ances that the plan would receive continued support by determine the answer. the public and private redevelopers. When potential lenders and investors are not comfort- The execution of agreements between the public and able with the financial risk they think is associated with a private entities signifies the end of preclevelopment waterfront project, then the developer is usually required activities. Many of the activities initiated during pre- to satisfy certain conditions to obtain financing. The development-design, leasing, and financing-are re- developers of Union Wharf in Boston, Massachusetts, for fined and completed during the next stage, example, had difficulty securing financing because the development, project combined residential and office uses and required both renovation and new construction. In addition, all units were to be sold as raw space with no 7 "Memorandum of Agreement Relating to the Georgetown Waterfront in the District of Columbia" (Washington, D.C,: Georgetown Harbour finishing provided. Consequently, the financing commit- Associates, 1979), page 1. ment the developers obtained included conditions for 96 presales; as well as specific equity requirements. The developers were required to presell 30 percent of the total number of units to prove the validity of both pricing and marketability. Furthermore, a number of units were sold at a substantial discount to provide additional have been spent on acquiring and clearing the land equity. and preparing it for new development. If public funding A waterfront development project requires financing does not cover the cost of predevelopment activities, for land acquisition, site improvements, project consfruc- then equity investment by the development entity is tion, and the many indirect costs associated with each essential. stage of the development process. To meet these costs Short-term construction loans provide working capital the development entity must obtain four types of during project development. They are usually advanced financing: (1) funds for preclevelopmenf activities; (2) in installments based on the lender's evaluation of short-term loans to finance construction before the progress or on completion of predetermined stages of permanent or long-term mortgage becomes effective; the project, First mortgages provide the primary financ- (3) long-term mortgage loans to provide the basic funds; ing for almost all projects. Typically, first mortgages and (4) equity financing for the share of the cost and provide up to 75 percent of the appraised value of the initial funding not covered by the mortgage. Commit- project, to be repaid with interest in installments over ments for all four are necessary before construction can periods of 25 to 35 years or more. The property and begin. improvements are pledged as collateral or security for Waterfront development projects usually require a the mortgage loan. tremendous front-end investment. Frequently specialized Long-term equity financing provides the difference design and engineering studies are necessary to between the cost of the project and the mortgage locin. analyze dredge and fill requirements, the load bearing Methods of acquiring equity funds depend almost capacity of existing pier structures, and other site entirely on the development entity, who will shape the conditions. Furthermore, the regulatory requirements venture to fit their particular financial objectives. The imposed on waterfront projects add significantly to the development entity may rely on their own financial initial cost of development. resources or form a partnership or joint venture with one City governments have realized that waterfronts repre- or more associates or corporations interested in investing sent major community assets demanding special public or speculating in waterfront development. sector involvement, To facilitate waterfront development Sources of Financing projects, many local governments have provided fund- ing for various redevelopment activities. The Inner Harbor Financing may be obtained from individuals, banks, Development Program in Baltimore is a good example. insurance companies, pension funds, foreign investors, In that case, public expenditures of $55 million ($35 savings and loan associations, public bonds, and million in federal grants and $17 million in city bonds) government grants.8 Investments are structured in a variety of ways, such as conventional mortgages, loans with equity kickers, loans with options to acquire ownership, and joint ventures. The private financing commitment comes when design development draw- ings are complete. Before that time, lenders can be encouraging but noncommittal. With drawings in hand, the development entity prepares a loan package, making sure that it provides all the essential information required to persuade the lender of the project's feasibility, To attract investors and lenders to high-risk projects, the public sector may have to finance some of the project, either directly by supplying cash or improve- ments, or indirectly by underwriting private financing. The motivation for public involvement in waterfront projects is to spread the risks and costs of development. 8 For a more detailed discussion of financing sources, see Basile, et al., Downtown Development Handbook, page 95. 4-18 Because Union Wharf combined new residential with residential and office renovation, the developers had difficulty obtaining financing. 97 Parcel Development Agreement supports the operation of the Redevelopment Corporation and provides lenders and investors a strong incentive to pledge permanent financing for individual development projects. The degree of public involvement is determined well The Inner Harbor Development Program in Baltimore before this point in the development process. No relied initially on federal funding but more recently developer would negotiate with key tenants, finance depended primarily on other sources of project financ- preliminary design, and then attempt to negotiate ing. For instance, the convention center project required public participation. At this point, the public entity would a $35 million funding commitment from the state. To be involved in preparing bond prospectuses and issuing obtain this commitment, the city government agreed to bond obligations, During the development stage, the include a provision in the bond issue that lists the developer deals with finalizing private short-term and anticipated state revenues from the project and requires permanent financing. the city to reimburse the state for debt service on the Innovative Public/Private Financing Techniques $35 million bonds to the extent that the revenue goals are not achieved, The role of the federal government in financing urban The financial structure of the Hyatt Hotel project near waterfront development changed significantly in recent Baltimore's Inner Harbor illustrates the complexity of years. Attempts in the 1960s and 1970s to reverse the financing major waterfront development ventures. Both process of urban decay with the massive urban renewal the city of Baltimore and the Hyatt Corporation have projects were generally unsuccessful. The fools of public made substantial loans subordinate to the project's first participation and environmental regulation emerged in mortgage. Both parties will be more than compensated the 1970s as a means of containing federal bureaucracy for their investment but not for awhile. The total and addressing specific local needs and conditions. expenditures, other than the land and improvements by During the late 1970s, however, the involvement of local the city, amounted to $40 million:9 government and business leaders in urban development 9 $20 million (10 percent), a first mortgage furnished by increased. Large-scale federal programs were replaced a savings and loan plus about one percent kicker by smaller federal programs offering matching funds as * $12 million, a second mortgage by the city (mostly incentives for municipal and private investment. In the through UDAG with interest at seven percent) past two years many of these more limited federal * $4 million, a garage by the city (payable out of programs have been eliminated. garage income) The lack of federal funding has generated many e $11 million, invested up-front by Hyatt creative approaches to financing urban waterfront e $3 million, additional loan by Hyatt at prime plus one projects. In St. Louis, for example, stock in the Laclede's percent. Landing Redevelopment Corporation is half owned by property owners in the redevelopment district and half 9 "A IVIXID Takes Off: Baltimore's Inner Harbor," Urban Land (March 1982), owned by members of the city's business and financial page `16. community. This generated the working capital neces- sary to initicife predevelopment activities. The city, in turn, agreed to spend $11 million for infrastructure and site improvements. To guide the redevelopment of Laclede's Landing and encourage lenders to finance projects, the Redevelopment Corporation created the Parcel Development Agreement-an agreement between the property owner and the Redevelopment Corporation setting the terms and conditions under which the ... ....... property owner can proceed with plans to develop -=.Z 7: Landing property. It calls for the property owners to 71 submit development plans and a financial strategy for their parcel to the Redevelopment Corporation for rev iew and approval. Once the plans are approved, a contract is signed permitting the property owner to receive a tax abatement for 25 years. The agreement also requires the property owner to make a financial payment to the Redevelopment Corporation that is five % percent of the project's construction cost. Thus, the 4-19 The key to the development of a Hyatt hotel near Baltimore's Inner Harbor was an innovative public/private financing arrangement. 98 Hyatt manages the property under an agreement in which it receives four percent of the gross revenue plus an incentive fee. This fee cannot exceed 20 percent of the gross operating profit. The gross operating profit is the profit before mortgage requirements, land rent, insurance, taxes, and depreciation over and above the amounts set aside for repairs, maintenance, etc. The incentive fee is subordinate during the first 10 years to the first mortgage requirements and thereafter to the second mortgage as well. The land has been leased to Hyatt for $200,000 a year during the first 34 years and thereafter for 20 years at $400,000 a year. The profit, after payment of all the loans and advances are divided, is one-third to the hotel and two-thirds to the city. There are no tax refunds or rebates. The hotel opened in October 1981 and all of the partners in the deal are very enthusiastic about its future. The Baltimore Hyatt has started under circumstances and conditions much better than Hyatt has started any other hotel. Both the city and Hyatt believe that the hotel is a valuable addition to the Inner Harbor. Securing Lease Agreements While obtaining financing is a top priority of the d development entity, securing tenants to occupy the space programmed for the project is also critically important. The commitments for space potential tenants 4-20 Fishmarkets and restaurants are two types of potential tenants that made during predevelopment must be formally ex- value urban waterfront locations because of the unique amenities ecuted. Since it is much easier to design space for a offered by shoreline sites. known tenant than it is for a hypothetical tenant with unknown needs, obtaining lease agreements before To effectively lease a waterfront project it is necessary final building design can greatly enhance the project's to conduct a marketing program to promote the success. In general, the earlier leasing agreements are attributes of the project that will appeal to potential obtained, the more favorable the financing, the more tenants. The primary factor is location. Since the amount accurate the cost estimates, and the fewer the design of waterfront land is limited within an urban area, there changes. often is a great deal of prestige associated with a It is necessary to secure lease agreements early in the shoreline address. Furthermore, the unique amenities development stage of a project to ensure that cash-flow offered by a waterfront site enhance the value of the projections are met. The financing structure typical of location for some potential tenants. Waterfront restau- waterfront projects requires the development entity to rants, for example, historically have very high per square successfully lease space and generate cash for short- foof revenues. Another important factor is the project's term construction loan amortization payments. Long-term design. An exciting concept including the adaptive use mortgage loans usually are not executed until this is of an existing building or the construction of a new accomplished. In almost all cases the lender will expect contemporary structure may persuade potential tenants a certain amount of space to be leased before to locate in the project. Finally, the identity and space agreeing to provide long-term financing. The amount of demands of the project's prime tenants will often attract leased space usually regarded as acceptable is 40 to other potential tenants. For example, the commitment of 60 percent for 75 percent financing.10 a major tenant such as in hotel or corporate headquar- ters could attract other tenants who feel that proximity 10 Basile, et al., Downtown Deve)opment Handbook, page 102, will offer a significant advantage. 99 simple example actually represents a complex set of separate incremental decisions, If is incumbent upon the entity directing a large-scale waterfront redevelopment program to carefully manage the tenant selection process. There are many different types of lease agreements. Leases are distinguished by the method that rent is set The objective of the marketing program is not only to and by the period for which the agreement is written. secure lease agreements for the project, but also to The type of lease agreement and tenants depends on obtain a complementary mix of tenants that will project characteristics, the business involved, and exist- optimize the project's value. The Rouse Company, for ing market conditions. example, carefully selected the tenants for its Har- Several methods have been used in leases to set borplace project in Baltimore to create the desired rental rates. Percentage leases apply to retail business marketplace atmosphere. Over 2,000 potential opera- with sales on the premises. Net leases shift burdens of tors were interviewed before Rouse decided on the 140 rising taxes and other costs from the developer to the who would occupy Harborplace.11 The space allocation lessee. Escalated leases are intended to counteract the for specific types of tenants is shown in Figure 4-21. effects of inflation and higher costs. Graduated leases are used to encourage new businesses which are expected to grow in the future. Seaport Village is a specialty shopping complex and F Number of Merchants Percent of Gross one element of San Diego's Embarcadero development Leasable Area program directed by the Son Diego Port District. The 12 restaurants and cafes 40.7 percent project developer, San Diego Seaport Village, Ltd., is 20 market and other foods 13.7 percent responsible for project management. The land is leased 37 small eating places 10.6 percent from the San Diego Unified Port District which must 36 specialty shops 25.0 percent approve all subleases, tenants, building construction, 35 pushcarts and kiosks 5.3 percent alterations, signs, and any activities not specified in the 2 flowers and produce 4,2 percent master lease or subsequent subleases. Rents for shops are $1.50 per square foot per month plus `10 percent of the gross. Fast food shops pay $1.66 per square foot per 4-21 Hcrborplace space allocation by tenant type, month plus three percent of food sales and five percent of alcoholic beverage sales. The three major restaurants The developer of Seaport Village in San Diego (occupying over one-third of the project's total floor specifically selected tenants to complement the proj- area) have customized leases. Seaport Village, Ltd., ect's design theme. In addition, he purposely tried to pays to the Port District 10 percent of the rents plus the avoid having duplication and competition between three percent food and five percent alcoholic beverage shops with similar goods because of the relatively small assessment. size of the businesses. The result has been a very low The Harbor Plaza office project, located in Sfamford, turnover in tenants and virtually no vacancy. Connecticut, commands rents at $28.50 per square foot The mix of tenants is critically important for waterfront of net rentable area. The rental rate is increased after projects combining two or more different uses. Convert- the first five years and is monitored by the current market ing Pickering Wharf in Salem, Massachusetts, into a retail rate at 10-year intervals. This arrangement protects the and residential complex required the developer to developer from inflation and higher maintenance costs select retail tenants with businesses that would be in future years. compatible with the residents of the project in terms of To obtain the exact mix of tenants desired for hours of operation, noise, traffic, and other considera- Baltimore's Harborplace, the Rouse Company devised tions. For large-scale waterfront redevelopment pro- various types of lease agreements with rents from $`15 to grams, such as Harbourfront in Toronto or Laclede's $40 per square foot for different types of tenants. For Landing in St. Louis, it is imperative for the main example, in order to ensure the viability of less profitable development entity to coordinate the tenant selections produce, fish, and meats, a low-rent aisle was placed in made by other developers constructing projects in the the center of one of the pavillions. The merchants of the redevelopment district to ensure that synergistic relafion- stalls and push carts located in the same building sign ships are maximized. If one developer is leasing office week-fo-week or month-to-month leases to allow a space to prestigious law firms and financial consultants, constant renewal and change of handcrafted or other then the developer of nearby retail and restaurant specialty merchandise. This requires no capital invest- facilities should try to attract these office workers. This ment in a store's fixtures on the part of the merchants and provides a constantly changing array of merchan- "A IVXD Takes Off: Baltimore's Inner Harbor," page 15, dise for visitors. 100 Design Project design is an integral part of the development of urban waterfronts. A development project will not be successful unless it is designed to satisfy certain functional and aesthetic requirements within the bounds of specific environmental, legal, and financial con- team usually includes engineers specializing in mechan- straints. Achieving this goal is an enormously complex ical, structural, and electrical systems, environmental and challenging task. management experts, foundation engineers, and land- Designing an urban waterfront project is an activity scape architects. In addition, specialists in marina that bridges the first two stages of the development design, shoreline stabilization, and pier construction may process. During predevelopment three fundamental be asked to assist the design group and address tasks are accomplished: a conceptual plan is formu- specific design problems related to shoreline develop- lated based on the development entity's goals and menf. obj.ecfives, an intensive design analysis is performed to When a large-scale waterfront development program test and refine the design concept, and a final involves more than one design group working on various preliminary design is prepared and submitted for individual projects, then design coordination must be governmental approvals. The final preliminary design provided to ensure overall functional and aesthetic provides the basis for all participants in the project to compatibility. Typically, this important responsibility is negotiate the development agreements required to delegated to a coordinating or master architect of the implement the project. entire development area. The Johns Landing project, Once the development entity has obtained the located on a 75-acre site along the Willamette River in government approvals necessary to proceed with Portland, Oregon, is a good example of this organiza- project implementation, detailed design and engineer- tional relationship. The development program calls for ing is initiated within the guidelines provided by the about 500 dwelling units: several waterfront restaurants; approved general plan. At this point in the development a variety of office projects including new speculative process, much more information is available to design- buildings, small corporate buildings, and industrial ers and engineers. The initial design ideas proposed. building renovations for office use; a specialty shopping during preclevelopment are refined in response to complex; and an athletic club. Since 1975, Griggs, Lee, several factors such as the needs and desires of major Ruff, Ankron/Architects have been managing architects tenants, the management and legal structure being for the development program. In addition to designing developed, and a more precise definition of the market. many of the buildings, the firm has coordinated the Armed with a greater knowledge of all aspects of the project, the design team enters into design development focusing on the technical details of how to construct the project. This effort includes designs of basic structural and mechanical systems; drawings of elevations, sec- tions, and typical exterior walls; detailed landscaping r and drainage plans; specifications of building and plant materials; and confirmations of cost estimates. Typically, V illustrative renderings of the project are prepared at this time for use by the development entity in negotiations I/ and public meetings. Following the completion of design development, the design team prepares the final working drawings for the p ect. The working drawings comprise a mass of very roi detailed specifications that guide the construction of the project. They are the basis for establishing construction bids, contract documents, and construction schedules. m assembled for a waterfront project The design tea will vary depending on the location and type of project. An architectural and engineering firm or an architect 0@ affiliated with various engineers typically forms the 09 - nucleus of the design team, with specialists added to the group as appropriate for the project. The design 4-22 Illustrative renderings such as this drawing of Pickering Wharf in Salem, Massachusetts, are usually prepared for use by the development entity in negotiations and public meetings, 101 design standards for an area where as many as 15 different architectural firms are involved in a diversified range of projects, Stability is thus guaranteed, which is essential to the long-term success of the redevelopment of Laclede's Landing. planning and design efforts of the other architectural Urban waterfront sites require special consideration by and engineering firms working on projects in Johns design professionals. The interface of land and water Landing. By carefully orchestrating the planning and within an urban context creates a distinct physical design of each component so that it complements the environment for project designers to deal with. Although others, the coordinating architects have significantly each setting is a unique expression of a city's age, size, improved the quality of development. location, and cultural heritage, there are a few basic One of the first steps taken by the Laclede's Landing principles that apply to the design of most all urban Redevelopment Corporation in St. Louis was the adop- waterfront projects. tion of "Urban Design Guidelines." The document was A project's design should take full advantage of the prepared by Hellmuth, Obata, and Kassabaum, Inc., to shoreline setting and the amenities offered by the water's assist the Redevelopment Corporation in determining edge. One of the major considerations in the develop- policy for a wide range of environmental design issues, ment of a waterfront site is to ensure that views from the providing developers and architects with preliminary city to the wafer will not be blocked by new buildings. In design criteria to avoid duplication and delays, and this respect, the places where streets meet the wafer are helping the Redevelopment Corporation and agencies special places. If left in public open space, then city of the city of St. Louis develop standards for the design streets can provide view corridors directly to the and maintenance of capital improvements. The "Urban shoreline. Furthermore, view corridors can be greatly Design Guidelines@' successfully address design issues enhanced by siting buildings to frame views through which affect the Landing, including both interior and spaces to the water. exterior concerns. This design principle has been effectively used to The document provides a flexible framework which guide the development of Harbourfront in Toronto. Open encourages diversity. Individual developers are able to plazas and walkways have been constructed where the make changes to buildings to fit their various tenants' major connecting views to the city's center-Bathurst needs but changes or additions incompatible with the Street, Spadina Avenue, and York Street-terminate at Landing's overall character are prevented. This flexible the waterfront. As a result, Harbourfront has successfully framework avoids rigid controls which can stifle creativity reunited the city's downtown with its waterfront and and individuality. In practical terms, the document offers become a primary destination in Toronto. 17? KAIEP4vAY adft@ 40, ISD 102 Another major consideration is the design of public areas along the water's edge. Public spaces such as walkways, plazas, and parks will not effectively serve their purposes unless they are both interesting and inviting, An undulating walkway that follows the shoreline or reaches out over the water and back on piers or Therefore, if is very important for architects of waterfront quays is far more dramatic and exciting than a straight buildings to consider not only the functional uses of the pathway across a waterfront site. When an individual structures, but also the conditions that distinguish shore- moves along a meandering walkway the views of the line sites from other urban settings. water and the buildings change with each turn of the Baltimore's Harborplace is an excellent example of a path. In effect, a person is "pulled along" by the project that relates to its waterfront environment. The expectation of seeing something new or different. design of the project is sensitive to the configuration of Furthermore, a promenade along the wafer's edge can the harbor and to people's strong and legitimate desire be enhanced by providing a variety of public spaces; in to have visual and physical access to the water The some places it may be a wide paved area where project is on the waterfront but at the point where it is people can sit and enjoy looking across the water, and closest to the downtown office district. Because of its in other places it may be a large landscaped area for location, Harborplace was separated by a 200-foot outdoor concerts and other cultural activities, Existing plaza/amphifheatre into two buildings to reduce its mass and new waterfront buildings can be used to create and to preserve a view to the center of the waterfront. variation in the size and character of public spaces. The two-story structures have glass facades which allow The redevelopment of Son Diego's Embarcadero has the lights and activity of the pavilion to sparkle out to benefifted greatly from the attention given to the design the city of night, roll-up exterior doors which open the of public shoreline areas. The development plan clearly buildings to the water by day, and outdoor but covered stated the importance of creating a strong and inviting porches and terraces from which the public may view pedestrian character for the Embarcadero with numer- the harbor. ous opportunities for visual access to the water and a In form and scale Harborplace echoes the wharf diversity of leisure activities. More importantly, the buildings that once occupied the site. The buildings shoreline improvements have significantly enhanced have no front or back, given that the project needs to private development opportunities in the area, as open up to both the harbor on one side and downtown evidenced by the success of Seaport Village. on the other. "Porticos" spread along each building The strength of a project's design can be measured in allow people to see through the structure as well as part by how effectively if responds to its location. In this invite entry. As a result, Harborplace relates to the city, to respect, the phrase "out of place" succinctly describes the waterfront environment around the project, and to buildings with designs that do not relate to their settings. the people the project serves, TMS &Wuf &MONV44 @7 fZ T) D 0 C 4-23 The attention given to the design of public shoreline areas along San Diego's Embarcodero as illustrated in these drawings has significantly enhanced private development opportunities in the area. 103 Palmer Point, a residenfial/marina development lo- cated along the Miamus River in Greenwich, Connecti- cut, is another project that was carefully designed to complement its waterfront location. The residential units at Palmer Point are oriented to take advantage of the waterfront setting, The structures are clustered on the site to provide physical as well as visual access to the wafer's edge. All of the units have balconies, with many of them directly overlooking the river Outdoor open spaces within the project are carefully defined. A pedestrian walkway system covers the site with curved walkways and boardwalk along the water's edge. The project is intensely landscaped with plant materials and stone walls to provide screening and privacy, soffen building surfaces, and create comfortable attractive areas for outdoor activities. Outdoor lighting is provided by brass and copper marine lanterns. The architectural style is sophisticated and modern. The primary exterior building materials are pale red brick and natural wood. The combination of brick and wood, which is often used V i diagonally, is appropriate for the waterfront setting. The brick detailing is used throughout the project and conveys a sense of warmth and sturdiness. The overall effecf-a contemporary expression of the New England maritime heritage-is highly appropriate for its waterfront location. While every urban waterfront site represents a unique set of conditions for project designers to deal with, the objective should always be to produce a design that 4-24 The architectural style of the Palmer Point project in Greenwich, Connecticut, is a contemporary expression of the New England satisfies its functional requirements and is in harmony maritime heritage. with its setting. 4 C3 0 T v -a 0 loft -60 CL 4-25 Harborplace in Baltimore was designed to relate both to the water's edge and the city's downtown, 104 Project Construction Project construction is a pivotal step in the develop- ment of urban waterfront projects and requires the management of intricate contractual arrangements, complicated delivery and completion schedules, and a diversified workforce, The primary management objec- tive is to produce a high quality marketable project at the minimum price within the shortest feasible time period. Along with the developer, those directly involved in the construction. Overall schedules establish general target construction process include the architect/engineer, the dates for completion and occupancy of major compo- construction manager, the construction contractor and/or nents of the project, and detailed schedules show dates subcontractors, and the material suppliers. Each of these for procurement and delivery of materials and labor individuals has a particular role in the construction of the Schedules are a key part of managing a project: they project. The architect/engineer's principal concerns are serve as the basis for measuring progress, approving making sure that the project is constructed as specified requests for payment, evaluating the potential effects of in the construction drawings and specifications, and that delays or changes, and maintaining an accurate required changes are within the cost, qualify, and time account of costs and cash flow. constraints established by the developer The consfruc- In order to accelerate the construction of a project, tion manager is the prime link between the developer thereby reducing the interest costs for interim construc- and the subcontractors and material suppliers and tion loans, many developers overlap design and supervises the various construction contractors and construction periods to shorten the time required to subcontractors. The contractors' and subcontractors' complete the project and to save construction costs by concern is to complete specified portions of a building obtaining early bids, smaller packages, and shorter-term or building system. The material suppliers' concern is to financing. This method, known as accelerated, fast provide all of the physical parts of the building as track, or phased development, emphasizes concurrent specified by the designers and ordered by the contrac- contracts and a sophisticated level of construction tors. management. Each major building system is designed, While each of these participants share management contracted, and constructed on separate but coordi- functions, it is the responsibility of the development entity nated time frames. to coordinate construction activities. The development In any building project, some decisions made early in entity cannot rely totally on drawings and documents to the design phase can lead directly to construction transmit a perfect understanding of the project to the contracts, Determining the basic building siting, for contractor Furthermore, the magnitude of risks and example, allows a contract for rough site work to be liability associated with construction management deci- awarded. Decisions on basic structural elements permit sions requires the continuing presence of the develop- foundations and structural contracts to be let and early ment entity. decisions on materials or equipment requiring a long The concept of construction management is partly the lead time allow advance orders to be placed. result of the special requirements of long-term complex development programs such as the Charlestown Navy Yard in Boston and False Creek South Shore in Van- 4 jop couver, British Columbia, These waterfront development programs require phasing projects over several years with some components under construction while others are being designed, Mixing public and private interests increases the importance of a firm managerial focus to guide construction activities. The complexity of manag- Ing the construction of a public/private large-scale waterfront development program is reflected in a project management report submitted early in the construction of the Charlestown Navy Yard project. The report covered all the various development activities relative to the project area and identified key issues _-V crucial to the continuation of each activity. Scheduling is one of the most important facets of . managing the development of a waterfront project. It begins early in preclevelopment and continues through 4-26 Construction management was crucial in the redevelopment of the Charlestown Navy Yard in Boston. 105 jiI Determining Maintenance Responsibilities The specific management and management activites associated with an urban waterfront project can vary a great deal depending on the project's use, density, and proximity to the water's edge. In general terms, however, the development entity is responsible for providing basic operating services and mainfaining the project's physi- cal viability, administering the financial accounts and tenant relations, and marketing the project and promot- 4-27 Many developers overlap design and construction activities to ing community relations. To meet these responsibilities, accelerate project development. the development entity might control management directly or a professional manager or management The Postdevelopment Stage company might be contracted to provide management services for a fee. The development process does not end with the Providing operating services and maintaining a proj- completion of project construction. Once a project has ect's physical condition is a primary area of responsibil- been built, it must be managed and maintained to ity and accounts for a large portion of a project's realize the full potential of its market. In this respect, postclevelopment costs, Basic operating services in- postclevelopment activities determine to a large extent clude: the long-term viability and success of an urban e maintaining the heating, cooling, lighting, electrical, waterfront project. gas, and telephone systems; Decisions made during the preclevelopment of a 9 providing security; project will have a great influence on the type and cost 9 maintaining elevators and escalators, of postclevelopment activities. The appropriate type of e disposing of frash; development, suitable in scale and design and properly maintaining landscaped and parking areas; constructed, will no doubt be easier to manage and cleaning sidewalks and removing snow, maintain than a project lacking those attributes. For this painting and decorating common areas and tenant reason, it is incumbent upon the development entity to spaces; have, prior to construction, a clear understanding of the making repairs and minor modifications; tasks required to manage and maintain the project as e providing any special services for tenants. well as an estimate of the costs of "providing" such These services must be provided dependably on a services. Even under the best of circumstances it is daily basis. Maintaining a project's physical viability difficult to estimate maintenance costs. For example, requires periodic inspections to detect the need for common area maintenance at Seaport Village in Son building renovation or replacement of materials. Further- Diego has been higher than anticipated due to the type more, common areas must be maintained and periodic of facility and its popularity. improvements made to ensure the project's continued Although the specific requirements for managing and use, maintaining a project are identified before the start of For urban waterfront projects that are primarily construction, the formal agreements pertaining to the residential, these maintenance responsibilities are trans- performance of these tasks are not signed until the ferred from the development entity to the property postclevelopment stage of the process. For large, owners. The Palmer Point project in Greenwich, Connect- complex waterfront projects that combine several uses icut, for example, is maintained this way. Every condo- within public and private areas, agreements must minium owner in the project is a member of the Palmer clearly define which party will be responsible for the Point Condominium Association. The condominium management and maintenance of each portion of the agreement calls for all owners to pay for common project, and who will pay which costs on what basis. charges which include central heating, air conditioning, While the general trend for public/private development snow removal, open space maintenance and repair, projects is to consolidate most management and and so forth. The normal charge is about $165 per maintenance responsibilities under one entity with other month. The association elects a board of trustees and a participants paying for their share of services, the actual chairman. The board handles all administrative matters agreements vary considerably and are evolving quickly and discusses major issues and decisions during monthly as experience is gained. meetings. 106 Urban waterfront projects with off-shore components such as docking facilities, piers, and breakwater structures have special maintenance requirements. The upkeep and operation of those facilities is affected by wave refraction, wind, tidal action, flooding, situation, and freeze and thaw cycles. Since many of those environmental factors are strongly influenced by climatic variables maintenance costs can be very difficult to important for the development entity to know the legal predict. implications of permiffing or prohibiting the use of all To avoid the financial risks involved with maintaining common areas in the project. off-shore facilities, development entities often lease The second major postclevelopment activity is admin- marinas and piers to independent operators. The istering financial accounts and tenant relations. The operators are responsible for the management and financial viability of an urban waterfront project de- maintenance of the facilities. At Palmer Point, for pends on the sound management of income and instance, the developer improved the overall condition expenses, rent collection, tenant relationships, and of the 154-slip marina by providing boardwalks and marketing for replacement tenants. These responsibilities minor utility lines. The facility was then leased to an are especially significant in large retail and office independent operator and opened to the general complexes where lease terms, rents, and responsibilities public. Although condominium owners in the project are vary significantly among tenants. Basic management given priority when renting boat slips, maintenance of activities include: the marina is not the responsibility of the condominium * paying taxes: association. The marina slips average 25 feet in length * billing and collecting rents and paying expenses; and the rental rate is $40 per linear foof per year. 9 negotiating lease renewals and replacements, and Security is an extremely sensitive issue in the manage- leasing vacant space; ment of urban waterfront projects. Many jurisdictions 9 periodically analyzing market conditions and tenant require developers to provide public access to the mix; shoreline and promote the recreational potential of the * contracting for special services: water's edge. Faced with this requirement, the develop- 9 managing the in-house staff services; ment entity must be able to balance the public's right of 9 responding to tenant's special requests and needs; shoreline access and use, with the responsibility to * providing business and financial assistance to selected provide security and protect property. In this respect, if is tenants under special circumstances. The third major postdevelopmenf activity is marketing the development project and maintaining good com- munity relations. If is a continuation of the efforts made during predevelopment to gain public acceptance of the project proposal, expedite construction, and pre- lease space. During posfclevelopment, promotional and public relations activities are expanded to include: 7t 9 promoting the waterfront site as an attractive shopping destination and business area; o organizing and providing support for any merchant or tenant associations; promoting community events and water-related ac- tivities in the project area; 7", maintaining contact with public agencies like the police, fire, and building inspection departments; promoting the project through community contacts in schools, civic organizations, and public meetings; maintaining contacts in the business community to support marketing and financial concerns. 4-28 The Palmer Point marina in Greenwich, Connecticut, is managed and maintained by an independent operator 107 4-29 At Pier 39 in San Francisco, project promotion includes community festivals, cultural activities, and various special events, A, A A AL i I Q --A 4w -A -M, Alt"fov-6a AV -@ WKI -'A %* WIDOW C jai 'L' " Jk " %'4 * -4 'A Promoting a project is particularly important when it is located in a waterfront redevelopment area. Unless an aggressive promotion effort is made to alter the reputation of an urban waterfront as a derelict, uninviting, inaccessible place, the project will not capture its potential market. At Laclede's Landing in St. Louis, for example, the Redevelopment Corporation recognized the need for an association to promote and A third area of conflict can occur when private market the area as a retail center To answer the need, developers are required to maintain public access to the Redevelopment Corporation assessed each project the shoreline at all hours regardless of a tenant's a minimal percentage of construction costs to fund a operating hours. This requirement can create security sales and promotion office. problems and increase operating costs. Depending on the scale of revitalization, project Attempts have been made to resolve these issues by promotion may go far beyond traditional advertising forming management organizations that are responsive and direct mail announcements and include community to the needs and priorities of both public and private festivals, cultural activities, and various special events. development interests. The common approach is to The commitment to cultural programming at Har- divide responsibilities according to ownership of specific bourfront in Toronto was, and continues to be, an parts of the project. At the Inner Harbor in Baltimore, for important element in the project's overall success. When example, the city is responsible for maintaining all the private development program started, the image of public parking, shoreline bulkheads, and plazas, and the site was mostly negative in the minds of Toronto private interests are responsible for their own building residents, and the water's edge was not a strong enough complexes within the development area. amenity to overcome this perception. The public In San Diego, the Seaport Village Project is managed needed to be reintroduced to the central waterfront and maintained by the private developer but under the through a series of positive rewarding experiences. The supervision of the Unified Port District. The District regular activities and special events did this and at the manages and maintains the park areas adjacent to same time established a lasting identify for Harbourfront Seaport Village. To control the uniformity of mainfe- as a interesting and enjoyable place to be. nance, the Unified Port District imposes maintenance Public/Private Project Management standards on all waterfront lease holders. Because of the experience gained in projects where Managing and maintaining large waterfront projects responsibilities are split, jurisdictions are considering that combine uses within public and private areas assigning these responsibilities to a single entity This type requires a tremendous amount of forethought and of approach is attractive for several reasons: cooperation by both public and private interests. e A single management entity is a more efficient way to Postclevelopment activities become much more compli- use and to coordinate planning and administration. cated when there is a need to distinguish between the * A single entity centralizes responsibility and minimizes public and private elements of a project and allocate the potential conflicts that arise when two or more responsibilities and costs accordingly. organizations try to do the same job. One important issue is variation in the quality of a The developer concerned with maintaining a high- maintenance between public and private areas. In qualify project usually wishes to exercise continued many instances public maintenance is less dependable control over the level of maintenance and repair in all and slower to respond to immediate needs. One reason parts of the project that adjoin the private portions. is the public sector is less able to obtain adequate * The public entity may be reluctant to commit itself to funding to provide maintenance. long-term operation and maintenance that is of a Another issue concerns the difficulty of assigning costs higher standard than it normally provides in other for operations and maintenance because it is virtually public areas. In addition, it may not wish to become impossible to separate public land and private use, entangled in the special management problems that Heating and cooling systems, for example, cannot be often are present in complex waterfront projects. regulated to indicate public and private consumption No matter what approach is selected, careful and within a project. Other operational services create similar detailed consideration must be given to managing and problems. maintaining waterfront projects. 109 VM Selected Case Studies Urban waterfront development is occurring in the port areas of large metropolitan cities, small resort towns, commercial fishing villages, and many medium-sized industrial cities. The following collection of case studies presents a representative cross-section of urban water- front development in North America. The selected projects include: � Harbourfront, Toronto, Ontario � Union Wharf, Boston, Massachusetts � Charlestown Navy Yard, Boston, Massachusetts *Laclede's Landing, St. Louis, Missouri � Inner Harbor, Baltimore, Maryland � Johns Landing, Portland, Oregon � The Embarcadero, San Diego, California 0, � False Creek, Vancouver, British Columbia � Palmer Point, Greenwich, Connecticut � Pickering Wharf, Salem, Massachusetts � City Waterway, Tacoma, Washington V � Harbor Plaza, Stamford, Connecticut. 'A" The first eight projects are located in major metro- politan areas and make up either all or a portion of a large-scale waterfront development program, The last four projects are much smaller in scale and located in medium-sized cities. The majority of the projects com- bine the adaptive use of existing structures with the construction of new buildings. 110 Harbourfront, Toronto, Ontario Harbourfront is a large-scale, mixed-use redevelop- ment project designed to transform 92 acres of Toronto's underused, deteriorated central waterfront into a unique urban neighborhood, complete with lakefronf parks, History recreational facilities, low-rise commercial and residen- fial buildings, shops, restaurants, and marinas. If is a In 1793 Lieutenant-Governor John Graves Simcoe remarkable project considering that at one time the selected a site on the north shore of Toronto Bay as the reclamation of Toronto's central waterfront seemed higly location for a new town to be named York because he improbable if not impossible. The city had lost touch with regarded the Bay (renamed the Toronto Harbor) as the its shoreline and harbor; rail lines and highways had best harbor on Lake Ontario, suitable for all military, separated the grimy, underutilized industrial waterfront naval, and commercial activities. The harbor is pro- from Toronto's vibrant, attractive downtown. tected by the Toronto Islands--called by that name from Ten years ago, however, the Canadian government the beginning even though they were connected with announced it would purchase virtually all of Toronto's the mainland at the eastern end of the harbor. In 1830 a central waterfront and present it to the city for minor breach appeared in the spit of land linking the redevelopment. Several years passed before all the islands with the mainland, and in 1858 a great storm planning, design, and financing issues could be re- carved a channel 150 feet wide and three feet deep solved. Finally, in 1980 the Canadian government through the hard sand. The channel was deepened to approved a $27.53 million plan to develop Harbourfront form the Eastern Gap, now the main entrance for ships over a seven-year period. The plan calls for the coming into Toronto Harbor. Prior to the establishment of complete rejuvenation of the Harbourfronf lands info a the Eastern Gap, ships would enter the harbor from the people-oriented, mixed-use urban area in accordance West where the bay opened into Lake Ontario. With the with the principles outlined in the 1978 "Harbourfront Eastern Gap providing access to open waters the Development Framework." The venture combines public western end of the harbor was later constricted as the and private sector investment under the direction of the islands were expanded with landfill. This is the land Harbourfront Corporation. where the island airport is presently located. kl Tor onto Ill i3our' D 0 Legend La Harbourtrant Parkland Amusement Area Primarily Industrial Area D 0 Financial District Primarily Residential Area Mixed-Use Area 0 5-1 Harbourfront is located on Toronto's central waterfront. centers of Toronto. It was not long before the 40 isolated wharfs between Bathurst and Parliament Streets began to deteriorate, One of the harbor commission's initial tasks was to improve conditions in this area. During the city's early development the undulating Yet the railway still formed a barrier between the city shoreline ranged from 100 to 500 yards south of Front and its harbor In 1924 work was started on a new Street, approximately a quarter of a mile inland from its railway viaduct which allowed unimpeded road access present location. Like many other lakefront cities, Toronto to the waterfront through nine underpasses between has a histroy of filling the shoreline to create lands for Spadina Avenue and the Don River However, in the new uses or the expansion of existing uses. The original mid-1960s the construction of the Gardiner Expressway Port of Toronto was located in the central waterfront (an elevated, limited access highway) imposed yet area of the harbor The evolution of the Toronto another barrier between the heart of the city and the waterfront is marked by succeeding "headlines" as shores of Lake Ontario. landfill operations have extended the shoreline farther The port of Toronto had a flourishing grain trade in the and farther into the harbor These headlines include the latter part of the nineteenth century, but with the Esplanade, Fleet Street, and Queen's Quay development of rail services, this gradually diminished. In In addition to deepening the harbor and expanding 1917 a shipbuilding facility was constructed on the the port area through its reclamation activities, the waterfront for production of freighters for World War I Toronto Harbor Commissioners (appointed in 1911 to and, later, World War 11. The area from York Street along coordinate administration of the port and harbor) built a the water to Stadium Road (post Bathurst) was used as a protective breakwater 900 feet offshore, extending from port. But with the development and use of container the Humber River to the Western Channel. The project vessels in the 1960s the port facilities in this area became was interrupted by World War 1, but work was resumed inadequate and shipping moved to the new port at the in 1919 and the breakwater was completed in the eastern end of the harbor The new port provided up-to- mid-1920s. date facilities accommodating larger ships. Toronto in general and its waterfront in particular have By the early 1970s, however, only two large industries- been greatly influenced by the growth of the rail system. Maple Leaf Mills and Canada Malting-remained In the latter part of the nineteenth century, land that had active on the central waterfront, Maple Leaf Mills, Ltd., been intended for a public promenade along the was by far the largest operation. The complex covered lakeshore was used by the railways for loading and 11 acres and consisted of two sets of grain storage silos, unloading freight. By 1908 there were from nine to 16 a cooking oil refinery, storage tanks, warehouses, feed tracks the length of the waterfront at street level, mills, and executive offices. About 30 ships a year visited separating the harbor from the business and industrial the Maple Leaf complex. In addition, grain was moved UNION ISTATION cN @A - ----------- -------------- L J zz ----- ---- ----------- ------------- -18 - ------- --------- -- - - - - - 12 17 13 NF ------ 14 Oo 0 7 4 OIEVEU- 9 c: 2 0 Le of 14 2`1 uctys John 0 I Quay Q_ Quay I Tertnind Warehouse 12@s Y 0 e,g&k- 2 cold storage 13 0 s Pow House 14 _F",4j @Mp 14 Ice House 15 f;D@0@ SWINng P 5 @Iarlooudrorrtftking 14 ng 6 222 Qs Quay T! @rp,164 Idng 0 -0 - 7 Vb* Quaf centm 18-f @Wlldng e Fler 4 49 *r,64( 11cung 9 Horbour Police 2a am IQ Me* Wbrks Yad 21 6@@-_M Iftra 11 Mooe Leof MOls 0 5-2 The Horbourfront site prior to redevelopment, 112 in and out of the area by trains and trucks. Over the years the elevators were expanded and Maple Leaf Photo credit: Tom Sandier, Harbourfront Corporation Mills had storage capacity for four million bushels of cereal crops. The freighters also increased in size and many of them were too large for the Maple Leaf facilities. They had to be half unloaded, backed out of the slip, then backed in again to complete the unloading. The company started moving its main base of operations in the later 70s and demolition of the elevators began in 1982. Canada Malting, however, remains. Established in 1926, the operation consists of 14 buildings on four acres and produces malt (from barley) used in food processing, beer, and cattle feed. About 80 percent of the barley used by Canada Malting comes from Western Canada by lake freighter; the rest is produced in Ontario. It has a 10-year lease with Harbourfronf until 1990. Despite the presence of these two large industries, the functionally obsolete old port area was rapidly becom- ing deserted and derelict. Over time, a few scattered parcels of waterfront property were picked up by 5-3 By the early 1970s, Toronto's old port area was functionally obsolete, private developers, speculating on the potential re- despite the presence of Canada Malting, surgence of the city's central waterfront. Development Strategy Initially the citizens' council's idea was to create a traditional park on the site by clearing the property of The Harbourfront development project was initiated by structures and then implemenfing a landscape plan, the Canadian government which, in 1972, expropriated There is no doubt that a single use urban park would 91 acres of Toronto's central wafeftnt (71 acres of land have been a distinct improvement over the mix of and 20 acres of water lots) bounded by York Quay and derelict industry that existed. But it did not take into Stadium Road and south of the Gardiner Expressway. account the range of potential uses of the site. The federal government's plan was to create a unique Furthermore, simply sodding the waterfront would have urban park, blending traditional concepts of parkland made it useful only six months of the year and open space with a variety of cultural, recreational, The Harbourfront board saw the opportunity to create and commercial activities. The project ran info difficul- something unique, innovative, exciting, and beautiful-a ties and opposition in its early years because the harbourfront that bustled with the vitality of Toronto. They metropolitan and city councils of Toronto had not been envisioned a place where quiet contemplation could consulted. exist with attractions and amenities that would make the A citizens' council was appointed in 1975 to help set site Toronto's most dynamic new community, a communi- up guidelines for the project. In reviewing the material ty that would pulsate with life and activity year-round. from public meetings, professional planners, and the The Harbourfront board realized that a concept of this Intergovernmental Waterfront Park Committee, the cit- magnitude would have to have some firm principles to izens'council come up with two important recommen- guide it, Work was begun on a detailed seven-year cations. One was that the Harbourfront project should be development plan for the future of Harbourfronf. This controlled by a locally based board of directors, with plan, entitled "Harbourfront Development Framework," representation from the city of Toronto and metropolitan was completed and published in 1978. Toronto, together with Toronto businessmen appointed by the federal government. The second was that the Planning corporation would make the Harbourfront facilities available to community groups who would program The "Harbourfront Development Framework" is a guide cultural and recreational activities for the general public to the future of the site. It is not a master plan in the as well as their own communities. Both the Harbourfronf traditional sense of being a rigid prescription. Rather, it is Corporation, an Ontario-based company whose shares a set of goals to be achieved, a basic structure which are owned by the federal government, and its local organizes the site, a series of principles to guide future nine-man board of directors were set up in 1976. development, and a financial strategy. 113 Some of the other important principles contained in the "Harbourfront Development Framework" are as follows: 9 Harbourfront should be an identifiable community The Development Framework was prepared to give active 24 hours a day year-round, with a vitality that clear direction to physical and financial plans. It serves can only be achieved with people living and working as a mechanism through which the various levels of there. government with responsibilities in the area can ensure * Access to the waterfront needs to be improved and that their particular interests will be given full considera- that includes better parking, better road access, better tion. More importantly, it provides a context in which integration with the public transportation system, and public and private groups can participate in the cooperation with the redevelopment of the railway development of the site. lands to the north. One of the keys to the seven-year development plan e There should be a strong mix of activities so that the was to initially spend public money-about $27.5 site is a place for a cross-section of the community. million-to attract an estimated $200 million in private a Development has to respond sensibly to climatic investment into the site. Approximately $20 million would factors and make use of indoor space, covered be invested in roads, sewers, services, and other walkways, and buildings to shelter open space. infrastructure necessary to support private development. 0 Views from the city to the water should not be Much of the housing that is programmed to be built is to blocked and the intersection of the city streets and the come from private firms who will lease the lands on a lake should be preserved for special public use. long-term basis. 0 Generally, ground level space will be devoted to Another key principle is to make Harbourfront self- public use. sufficient within a seven-year period. The federal govern- * Buildings that can accommodate these principles menf currently subsidizes operations by about $3 million should be restored, renovated, and preserved. a year, although more and more of the annual budget is The idea guiding redevelopment was to make being defrayed by revenues earned from commercial Harbourfronf a public place. The lands are being made leases. Part of the $27.5 million ($7.4 million) was more accessible to the public, and the project is designated to cover operating deficits for the seven-year gaining a strong public identity. The Development period. Over the seven years, the incremental develop- Framework specifically addressed ways to achieve this ment of the site will result in growing revenues, and by goal. One of the unique concepts guiding the develop- 1987 Harbourfront should be paying its own way. ment of Harbourfronf was the marriage between cultural _TR715N__T_ -REET 2 pr,mar,ly reside,l,.l (,.n-f-:y) W. R.. 3 raIgavae-a. mat,t-.al Z 4 ,ma, ly esidential (family) 5 mar- ndustra, --------------- -d-w ----------- ------------- - - - - - - - - - - - - - - --- ----- ----- - - - - - - - - ------ --------------- ----------- .. . .... . .. Pr 0 Milan 0 La 0 -UU TIMUS ]KEY 7 W"O BWL*NW AND fMLIM POTENTIAL DMLOPWNT AMA OFFICE AND 4TWR WORK SPACE Lie FOR 00 PARAMI ANE* FOR, CONSMLCTM OF PU3lJC OPEN SPAIDE AND PRIVATE ACrMT" -42AOOO 89@ FT. RIETAIL AND SERVKX SPAGE-T11,406 SOST 0 I USE KEY -2 RESIDEll DINELLIF!" - I= WTS - 0 WKNEI - -ASNEWRED.UPTOOODCARS CONtINUOM PUBLIG WATERS EWE a: MAJOR ST'IEETS a) STAMIS. 14ESSILOCATIONALL@ 0 POSSIStE LIMUMVEHICILE AWESS'STRISM 5-4 Land use plan. 114 programming and real estate development. With some modest landscaping and facility improvements Har- bourfronf has emerged as one of the fop 10 recreational and cultural centers in Toronto. In 1981, for example, the combination of an attractive waterfront setting together the primary public areas and buildings, and the targets with more than 2,500 programmed events attracted for the volume of various kinds of uses to be developed nearly 1.8 million visitors. over a seven-year period. In addition, a public space The physical improvements and cultural activities have system was carefully thought out and diagramed. The served to significantly alter the image of Toronto's central Development Framework showed 56 acres of the site waterfront. Harbourfront has become a popular destina- dedicated to open space, 12 acres of streets, and 26 tion for a broad range of residents, visitors, and tourists. acres covered by buildings and other structures. The More importantly, its popularity has helped create a open space system was designed to provide variety. market demand capable of supporting the intensity of There is the wide paved promenade along the water's private development planned for the site. edge, boat docking areas, larger formal plazas and If the proposed private development had been squares framed by buildings, small intimate weather initiated in 1972 prior to any cultural programming, its protected parks, and large landscaped fields. success would have been in serious doubt. The image of The Development Framework clearly stated that one the site was mostly negative in the minds of Toronto of the primary considerations in development of Har- residents, and the water's edge was not a strong enough bourfronf was to ensure that the view from the city to the amenity to attract people back to the central waterfront. lake would not be obstructed. In this respect, city streets The public needed to be reintroduced to the site (existing and future) were designated as view corridors through a series of positive rewarding experiences. with all of them terminating in slips or in public open The Development Framework displayed a strong spaces. Furthermore, new buildings were sited to frame sensitivity to the locafional and environmental factors views through spaces to the lake. defining the waterfront site. Both the assets and problems The need to construct a basic system of new streets to associated with developing Harbourfront were in- make the Harbourfront lands more accessible and ventoried and incorporated into the planning and service new development was recognized from the design process. beginning. One of the main objectives was to provide a When the Harbourfront Corporation was formed, the continuous east-west street system through the property condition of the waterfront site was carefully evaluated. This was not to be a major through-roufe for travelers, The evaluation revealed both the positive and negative but rather a system to accommodate the movement of attributes of the property. The most important assets were service vehicles and local traffic. North-south streets single ownership of approximately 90 acres of prime (Bathurst Street, Spadina Avenue, and York Street) are development land; the property's southern exposure and the connecting links to the city center to the north. New 10,000 feet of shoreline; a large amount of existing street alignments at Peter, John, and Simcoe Streets were rentable building space; wafer views; an existing marine planned for eventual connection across the railway industry; and proximity to Toronto's downtown financial lands. district, The last item worth mentioning is that the Development On the other hand, the site presented many problems Framework devoted a great deal of attention to climate. to the Harbourfront Corporation. The major drawbacks The summer climate at Harbourfront is pleasant, with were that the site was physically and visually cut off from fresh breezes from the lake. But conditions from the city by railroad yards and an elevated expressway; November to May can be very bleak and severe, with the site had inadequate streets, utilities, and amenities; the coldness made more extreme by icy winds. existing industry was incompatible with the proposed Response to the climate was one of the primary waterfront uses; much of the site was exposed to severe concerns in planning the site. Landscaping the quays as winter winds; and public access to the shoreline was large open areas obviously would not provide the kind restricted in some areas. of environment that people could enjoy all year. Instead, All of these factors-both positive and negative-were buildings are deployed to shelter people from the winds, taken into account as the land use and proposed which come mainly from the westerly quadrant. Features structure of the development plan was prepared. The such as covered walkways along the ground floors of development plan consisted of three basic elements: the buildings, which can be glass-enclosed in winter features which are generally fixed in their location, the and opened in summer, encourage year-round use of mixture of uses for the various areas which supplement the lands. 115 Photo credit; Tom Sandler, Harbourfront Corporation more difficult. The warehouse has eight floors, with a total of one million square feet of floor space, 25 1-4 1@iii@ e@ 't iq@', percent of which was used for cold storage. The rest of the space was used for offices and showrooms. YA r da 116 York The warehouse is being redeveloped as a mixed-use structure containing commercial and retail space, offices, and residential units. Olympia and York Develop- I_T1_ ments Ltd. are the developers of the project. They anticipate investing at least $50 million in the million- square-foot building to transform it into a major Toronto aftracfion, with lively restaurants, markets and waterside shops, and walkways and covered malls leading through the structure to the lake. The building will tix gg contain offices and parking. Three large atria will allow light and air to penetrate the building. The most spectacular indoor space will be the eight-story courtyard overlooking the wafer at the southeast corner 4 of the building. Garden-type apartment condominiums will be built on the roof of the structure, providing Harbourfront with its first residential units. Of particular 5-5 Public access to and enjoyment of the water's edge was an Importance will be the construction of a multi-purpose important development objective for Harbourfront. 450-seat Harbourfront dance auditorium specially tai- lored to the needs of the many performing companies who now visit the site. The inclusion of the auditorium Site Development was the response of the developer to the emphasis Harbourfront consists of five subareas named after the placed on cultural programming and activity by quays that dominate each area. The subareas from east Harbourfront Corporation, and reinforces the goals to west are York Quay, John Quay, Maple Leaf Mills articulated in the Development Framework. The Cold Quay, Spadina Quay, and Bathurst Quay. Within the Storage building next to the warehouse was demolished general development framework, specific plans have to provide a view of the harbor from the area to the been prepared for each subarea. north. Although a great deal of the planning and design The renovation of the warehouses is one of the largest work has been completed, the physical development eve .r undertaken in Canada and represents the first has not been fully implemented. The following discussion major private investment on the Harbourfronf site. describes both the existing conditions and the proposed Olympia and York have a 99-year agreement, providing total development for each subarea of Harbourfronf. Harbourfront Corporation with a fixed annual rent plus a percentage of revenues. York Quay There is a fall red brick building west of the Terminal Warehouse called the Ice House. It was built in 1926 as York Quay will be the most intensively developed part an ice-making and storage facility. It is an unusual of the Harbourfront lands because of its proximity to the building@-_just one story despite its 90-foot height-and central business district. While some residential uses will will be reused. In 1974 the area in front of the Ice House be accommodated at York Quay, office and retail was landscaped with red interlocking bricks, trees, development will be highlighted. In addition, the existing flower beds, and grassy banks. This area, called Urban public activity space and park area will be maintained Square, includes the Ice House and is slafed for and possibly expanded to other areas. redevelopment, possibly including a new contemporary The Terminal Warehouse, just across Queen's Quay art gallery and small concert hall or theater west from the foot of York Street, is the largest building West of the Urban Square was the Direct Winters on the site and marks Harbourfront's eastern boundary. Building, located at 235 Queen's Quay West, It was built Officially opened in 1927, it is one of the first poured-in- in the late 1940s to accommodate the warehouse and place, concrete structures in Canada. Because of its offices of a trucking company. The building has been location on landfill, thousands of wooden piles were renovated and renamed York Quay Center It now driven into solid rock on the harbor bottom to support houses the Amsterdam Cafe, a theatre, the art gallery@ the structure, and as a result it virtually "floafs" in place. craft studios, exhibition gallery, and information center There were no standards for poured concrete buildings and is Harbourfront's main programming area. An when the warehouse was erected, and the builders outdoor stage, called the "Ship Deck," is located on the made sure of the structure's safety by using much more east side of the York Quay Center building. The concrete cement than they had to. This has made renovation slab that serves as the stage floor was formerly the floor 116 of the Pier 5 warehouse that occupied this portion of the site. South of the York Quay Center is a gras@ area with picnic tables, benches, and cooking facilities. York Quay Center will remain a focus of public activity. In addition to the Terminal Warehouse project now renamed Queen's Quay Terminal, the development plan calls for a mixture of new commercial and residential structures to be built. The concept is to create protected squares, waterfront meeting places, and access ways through the site to the lake. Projections show that by 1985 York Quay will contain 300 to 800 residential units, 998,000 square feet of office John Quay space and approximately 165,000 square feet of other nonresidential uses. By 1990 the other nonresidential uses John Quay is located just west of York Quay and which include institutional, recreational, cultural, and outlines the western edge of Simcoe Slip. Although it is other commercial uses (including retail) will be ex- technically a quay, it is known as Pier 4. This designation panded to 980,000 square feet. goes back to the 1920s when the landfill area was The waterfront promenade begins on York Quay at the created and the terms quay and pier were used eastern edge of Queen's Quay Terminal. This is a broad interchangeably. paved pathway which will run in and out of the quays Pier 4 was used as a landing stage from its creation along the water's edge the entire length of the site when until the 1960s when the new port facilities were it is complete. The western border of York Quay is constructed at the eastern end of Toronto Harbour In Simcoe Slip where ships visiting Toronto are often 1930 a shed was built on Pier 4 to store cargo. This shed moored. is the Pier 4 warehouse which has been renovated as a marine center Public interest in the warehouse was raised in 1978 7 when the Marina 4 Company started its first venture, The Pier 4 Storehouse Restaurant. Soon all the available space on the pier was rented to companies with marine 01 interests and a small retail complex was started. The 0 complex was so successful that three sailing schools 0 p were moved to their own quay further west and a P_ 0 seco nd waterfront restaurant added. -foot boat marina was developed by the Marina A 100 0 r 4 Company in Simcoe Slip between York Quay and John Quay The high-level fixed span pedestrian bridge between the two quays was constructed as part of the '4 - marina development, with the Dutch lift design allowing boats to come in and out of the north end of the Wn ItAtLi"' I * [ marina. 0 Photo credit: Tom Sandler, Horbourfront corporation 5-6 The Terminal Warehouse located on York Quay is being redeveloped as a mixed-use structure containing commercial and retail space, offices, and residential units. rqr 0 L 0 'E 01 n Z) 7 0 0 5-7 An artist's rendering of the completed warehouse project renamed 5-8 The Pier 4 marina and pedestrian bridge, Queen's Quay Terminal. 117 Maple Leaf Mills Quays This part of the Harbourfront site is occupied by Maple Leaf Mills, Ltd. Its two sets of grain elevators are the only Another major occupant of the John Quay is the licensed storage silos in Toronto. They are used to store Toronto harbor police. The waferborne force has over 40 soybeans, flax, and wheat. The east group of silos permanent officers, 20 motorboat crewmen, and a 14- (Monarch Flour) is 250 feet by 100 feet and rises to a vessel fleet. They maintain a 24-hour harbor watch from total height of 195 feet. The larger western group of silos a 100-foof-high lookout tower located at the foot of Rees is 430 feet by 70 feet and rises to 190 feet. These grain Street. elevators were once vital to the flour milling industry in Further west, there are now five sailing schools located the Toronto area. in Harbourfront's new Learn to Sail Centre, established in Although the elevators were listed by the Toronto 1980. The Harbourside Sailing School was one of the first Historical Board as a significant and valuable link with marine activities to start at Harbourfront in 1976. At that Canada's heritage they were no longer profitable for time, if was heavily subsidized by the Corporation. Now Maple Leaf Mills. The company's industrial operations all the sailing schools are self-sufficient enough to pay were also deemed to be incompatible with the public rent to the Corporation. One of the more unusual on-the- enjoyment of the Harbourfront site. Indeed, there was no water schools is Toronto's Brigantine, Inc., a nonprofit public access to that part of the site while the mills were youth training organization. It offers an adventure sailing in operation. Studies have been undertaken over the program to teenagers aboard two tall ships, "Playfair" years to see if some other, more public use could be and "Pathfinder." found for the grain elevators, but having failed to find if is anticipated that 250 to 350 new residential units one, the elevators were put on the demolition list. The will be built on John Quay by 1985, and another 375 company moved its main base of activity in 1979, units by 1990. At that time 106,000 square feet of office ceasing operations altogether in September 1982. Dem- space will be developed on John Quay, The plan is olifion started in October of that year. presently to provide docking facilities and offices for the The Maple Leaf Mills lands are targeted for residential harbor police at the water and ground level. John Ouay development. Apartment structures, on the scale of eight will be a transition between the office and retail focus at to 12 floors, will be built to form a series of public open York Quay and the predominantly residential uses spaces. The target date to start the rebuilding is the mid proposed for the Maple Leaf Quays. The Rees Street Slip to late 1980s. The maximum permissible floor area on separates John Quay from the Maple Leaf Mills Quays. Maple Leaf Quay West is 403,660 square feet. It is likely The Metropolitan Toronto Department of Works main- that two buildings will be developed on the easterly side tains a marine yard that fakes up about two acres on of the Quay-one close to the shoreline and the other to three sides of the Rees Street Slip. The land was leased the east of 4117 Queen's Quay West with the extension to to Metropolitan Toronto by the Toronto Harbour Commis- Queen's Quay separating the two parcels. The heights of sion on January 1, 1955, for a period of 99 years. The these buildings are not likely to exceed eight stories on yard consists of a small brick workshop and office the southern parcel and 10 to 12 stories on the northern building and a large green warehouse used for storage. parcel. The rest of the two-acre property is used for mainte- The Maple Leaf Mills cooking oil refinery which nance of the yard's work boats and other equipment, previously occupied Maple Leaf Quay West has been This modest installation has played and continues to demolished. The newly landscaped site is used to play a vital part in the life of the Toronto waterfront. provide temporary extended parking facilities. There has been a marine yard at the foot of John Street Development plans show that 720 to 837 residential since 1854. The location of the yard moved south over units will be constructed on this quay by 1985 along with the years, following the progress of the various landfill 41,000 square feet of space for other nonresidential uses. programs until it reached its present location. The city of This new development will complement the existing Toronto's freshwater supply pipeline from the island 53,000 square feet of office space contained in the 417 filtration plant comes ashore under this lot and is linked Queen's Quay West building. with the water system from the John Street pumping The edges of the quays will be lined with cafes, station. The yard continues to serve as the main supply restaurants, stores, shops, and other amenities. New depot for the water filtration plant on the islands. The canals could be built on the quays, and the protected marine crone, boats, and barges and the tug Ned areas formed by development will become major Hanlon /I work out of this yard. public spaces. 118 Spadina Quay Spadina Quay was first used as a wharf when it was created by landfill operations in the early years of this wrestled with the idea of converting the building into an century. The Falaise and Foundry Buildings were erected opera house or music hall, but so far the costs of in 1917 for production of freighters for the war effort. Until renovation have proved to be just out of reach. The the end of the war, Dominion Shipbuilding Ltd. produced Fleetway Building was used by Loblaws as a truck a freighter a month. In 1950, when the building was depot, while the Buggy Building (as the name implies) turned over to the Canadian Army to store jeeps, trucks, was where the company repaired its buggies. The and ammunition, it was christened the Falaise in honor Fleetway Building was demolished in 1980. of the famous World War 11 battle. Another building in this One of the first on-going attractions at Harbourfronf complex is now occupied by F & N Yachts. Spadina was the Railway Museum established at Spadina Quay Quay provides a pump-out service, the only one on this in 1974 by the Toronto and York Division of the Canadian side of the harbor, for visiting boaters between May and Railway Historical Association (CRHA). The trains have October. been moved further west to make way for new The Automotive Trucking Association (ATA) building at development on Spadina Quay. the northesf comer of the Spadina Slip was constructed Spadina Quay is seen as an area containing in 1939 as part of the shipbuilding facility. At the end of residential and public uses. The proposed pier and the war, it was taken over by the ATA for its head- marina development, the 1.5-acre park on Spadina quarters. The ATA used the building until Harbourl'ront Quay, and the renovated Produce Building provide a acquired it in 1973. The three-sfory brick structure now focus for a unique retailing concept which will have houses the Francophone Community Center of Metro- water and marine uses as a major focal point, These politan Toronto on the second and third floors, while the features will combine to create an atmosphere quite ground floor has been converted into a public au- different from that found in any other location in the city ditorium and meeting room for use by community Between 550 and 800 residential units are planned to be groups. developed by 1985 along with 50,000 square feet of There are three other buildings on this quay: the other nonresidential uses. By 1990 the number of Loblaw's Produce Warehouse, the Fleetway, and the residential units will be increased to between 740 and Buggy Building. The produce warehouse, immediately 993 units and the amount of nonresidential uses will west of the Falaise, was built by Loblaws in the early increase to 90,500 square feet. While lower in scale and 1920s and was used for many years to store fruit and intensity of use than the York Quay retail area, it is vegetables from tropical countries. An unexpected expected that Spadina Quay will ultimately provide in characteristic of the building was discovered during the excess of 109,000 square feet of retail area, making it period when thousands of people toured the Harbour- front site to make suggestions for its use. A professional the only other extensive r Ietall development area at singer discovered the Loblaws Warehouse had remark- Harbourfront. , ably good acoustics. Since then, several groups have The development of, the pier, the breakwater, and the marina to the south on Spadina Quay will provide one of the most exciting areas at Harbourfront. The marina, which will provide mooring for approximately 150 boafs, represents the largest single marine facility to be developed at Harbourfront. While different building configurations are still being explored, Harbourfronf developers are prepared to give assurances that the height and bulk of the proposed development will not exceed the previously stated limits. Construction of the A. breakwater could begin in 1983, with an estimated construction time of 12 to 18 months. The area to the west E of the Produce Building is not likely to be developed in the short term due to the presence of the railway lines. When developed, these sites will be primarily residential in use and will include the creation of public open space at the head of the proposed slip. The new street through Spadina Quay is the functional `F1 Z*_, and conceptual extension of Queen's Quay from Spadina Avenue through to Bathurst Street. In order to create the Spadina Avenue-Queen's Quay intersection it is necessary to reroute Queen's Quay south of 417 Queen's Quay West, through the Maple Leaf Quay West, 5-9 Sloadino Quay will be redeveloped primarily for residential and public uses. 119 Harbourfront is responsible for the design and con- struction of the 1.5-acre park at Spadina Quay. This park is conceived as being a passive recreation zone situated spatially within the sheltered enclosure created then across Spadina Avenue Slip and through to Bathurst by the proposed buildings and overlooking the water's Street. The slip has now been filled and the bed laid for edge promenade and the marina complex. Its active the new Queen's Quay West across the slip. A small park street edges will be screened by public promenades is planned to the north of the new road, which forms the and sidewalks lined with trees, its center will be large, southern boundary. green, and quiet. The center may also include smaller The Queen's Quay extension comprises a 42-foot hard surface areas and special features such as a pavement, with a 65.6-foot right-of-way, together with a fountain or gazebo. A design of the park has been 16.4-foot sidewalk on each side. The 16.4-foot width is completed, with construction likely in 1982. If is anfici- achieved by the requirement of a 4.6-foot building pated that this park will be dedicated to the city of setback on parcels to either side. This is a more Toronto as a public park, Design approval of the park is generous proportion of sidewalk to pavement than is required prior to dedication. typical in downtown Toronto and provides for frees, Harbourfront is responsible for the construction of the benches, and other street furniture without impeding free water edge promenade at Spadina Quay. Concep- movement within the principal pedestrian zone, Trees will tually, this space is seen as a continuation of the water be planted within a five-foot boulevard zone, and a edge pedestrian route which eventually will extend, combined system of pedestrian and vehicular lighting uninterrupted, the entire length of the Harbourfronf lands. will be incorporated with a compatible dimensional It is seen as a more formal urban space, with a module. All lighting standards and other street furniture decoratively paved hard walking surface, lit at the elements such as free grates and guards, benches, and water side. The land side will provide a series of signage standards will be designed by Harbourfront. The amenities, sifting alcoves, benches, and pergolas. Its extension of Queen's Quay will be developed as a street general character as well as its furnishing will be capable of accommodating public transit vehicles. consistent with the overall water edge concept as Parking will be provided on both sides of the street. developed presently at York and John Quays. It is Z j4*. 0' 7 5-10 A model of the development planned for Spadina Quay. 120 possible that the water edge promenade will be dedicated to the city of Toronto, in which case design approval is required. The open space west of 417 Queen's Quay will be developed as a public park. Its east and north boundaries, as well as its west boundary (on the west Photo credit: Tom Sandier, Harbourfront Corporation side of the Spadina Avenue extension righf-of-way) will be heavily planted with trees to enclose and orient this space to the wafer and the water's edge promenade. 0 Teafte U 01 A Special features may include an ornamental fountain, POW further heightening the sense of arrival at the waterfront. K The park will be primarily hard-surfaced, incorporating such amenities as transit shelters, seating areas, kiosks, and public telephones in its overall design. J Bathurst Quay Bathurst Quay occupies the western section of the Harbourfronf site and is better known locally as the Old Ball Park. This is because the Toronto Maple Leafs built their stadium here in 1926. The Maple Leafs' ball club collapsed in 1969 and the stadium was torn down. The site covers 15 acres extending as for west as Stadium Road. Bathurst Quay, like the rest of the Harbourfronf site, 5-11 Harbourfront's broad range of uses and facilities generate year- was created by landfill operations undertaken in the round activity. 1920s. One of the earliest occupants on the landfill site was Canada Malting, which established itself here in 1926 Just south of this location are the adventure and and has been in operation ever since. When the creative playgrounds, which are open throughout the Harbourfront site was expropriated by the federal summer These playgrounds have been in operation at government, Canada Malting was allowed to lease the Harbourfronf for many years. The adventure play- back the area it occupies for a term of 10 years. ground concept is modelled on the resourcefulness of Canada Malting represents the second largest land use children in bombed-out city blocks in Europe after World on the Harbourfront site, occupying just over four acres. War 11. This is the first such project in North America and The main building has been listed by the Toronto it has drawn interested observers from many Canadian Historical Board because of its historical significance. and United States municipalities. Harbourfront's adven- Also listed by the Toronto Historical Board is an odd- ture playground is a fenced area of 1.5 acres. It is meant shaped building on the quay. It was built in 1927 as the to give children aged eight to 14 a chance to head office for the Crosse and Blackwell Company, the experiment with their environment by using materials not famous English pickle and jam manufacturers. Designed found in the conventional playground. The children build by Alfred Chapman, who also designed the Harbour their own huts, slides, forts, and other structures with real Commission Building, this unusual structure is one of the fools, scrap lumber, old fires, and pieces of metal last remaining examples of art deco architecture in the provided for them at the playground. The playground is Toronto area. In 1949 the building was acquired by the a constantly changing world of the children's own Loblaws Company and used as their head office until making. It is off limits to adults but supervised by 1975 when if was expropriated by the government as Adventure Playground Inc. The creative playground, an part of the Harbourfront project. area of three-quarters of an acre, is meant for children After the demise of the Maple Leafs, the Ball Park site aged 3 to 8. Children are provided with scale-to-size was used as a storage depot until 1974 when if was moveable components such as ladders, old tires, saw landscaped as part of the Harbourfront project. Salt had horses, blocks of wood, boards, panels, and boxes. The been stored on part of the site, and grass and trees children use those materials to develop their creative could not be planted until several feet of topsoil were abilities. Harbourfront supervisors are aiways on the site excavated and replaced. when it is open. 121 Experience Gained South of the playgrounds is the ferry dock for the Although the actual physical development at Har- Maple City, one of the busiest ferries in the harbor The bourfront is only partially completed, the planning, Maple City makes 64 round trips every day across the design, and development accomplished thus far cer- Western Gap to the island airport from 7 a.m. to 11 p.m. tainly merits close attention. Much can be learned from It takes just two minutes to make the 400-foot trip across the evolution of this project. It is a waterfront develop- the Western Gap. In an average year, she carries over ment that, based on a few sound precepts, has matured 130,000 passengers and 4,000 vehicles. into a financial and aesthetic success-a true asset in a The airport itself was built in 1938 and remains one of city with an abundance of good qualities. the 15 busiest in Canada, with over 172,000 landings Harbourfronf began with several advantages. The and take-offs--abouf 500 a day. It is a "good weather obvious one is the involvement of the federal govern- airport" in that if has no insfrument landing system. There ment. By expropriating the 91 acres of waferfront and are three runways, one 4,000 feet and two 3,000 feet turning it over to Harbourfront Corporation, the federal long. Most of the airport traffic consists of business flights, government avoided many of the conflicts inherent in pilot training, and sightseeing. A customs office is assembling property when many landowners and juris- present and can accommodate both small planes and dicfions are involved. The financial support provided by boats. The operation of the airport has been the the federal government has been tremendous, but it is responsibility of Toronto Harbour Commissioners since more of an investment,. in that by 1987 the project should 1962. be self-supporting and continuing to generate fax Bathurst Quay must accommodate access and park- revenue for the city. ing requirements which could be generated as a result Another key to Harbourfront's success was the forma- of the development of the proposed STOL service at tion of the citizens' council to establish redevelopment Toronto Island Airport. The site plan seeks to minimize the guidelines. The guidelines were presented to the Har- potentially adverse environmental impact of STOL- bourfront board of directors at the time they were related facilities by integrating them with other, more granted control of the waterfront property. By involving intensive, nonresidential uses on the eastern and south- concerned individuals and organizations at this early em precincts of Bathurst Quay. stage of the planning process, controversial issues were Bathurst Quay will contain the greatest concentration clearly identified and, for the most part, resolved prior to of family housing, The Harbourfront Official Plan estab- starting the project. Thus, the chance of objections or lishes the fundamental principle for the distribution of complaints surfacing later and delaying the project has nonresidential and residential density on Bathurst Quay. been significantly reduced. Further, the work of the This principle, which envisions higher density and citizens' council served to create a constituency for the nonresidential uses east of Bathurst with primarily residen- government action. Furthermore, the establishment of the tial density west of Bathurst Street, has been reflected in locally based company, the Harbourfront Corporation, the site planning for Bathurst Quay. Land leases will with its representation of all levels of government, was cover a period of 60 years. The leasehold amount will critical to the success of the redevelopment program. be calculated on the basis of the number and type of The commitment to cultural programming at Har- units for each phase of development. Five acres of bourfront was, and continues to be, an important parkland for active recreational activities, directly soufh element in the project's overall success, If the private of the Queen's Quay extension, constitutes a single unit. development program had been started in 1972 its Consistent with Harbourfront objectives, this major park market acceptance would have been in serious doubt. will be defined by public streets, framed by residential At that time the image of the site was mostly negative in development, and enhanced by significant views of the the minds of Toronto residents, and the wafer's edge was harbor and the Western Gap. Currently, the existing park not a strong enough amenity to overcome this percep- at Bathurst Quay includes the adventure and creative tion. The public needed to be reintroduced to the playgrounds, the new "Trim Trail" exercise grouping, and central waterfront through a series of positive rewarding a sports field. These facilities will remain until such time experiences, The regular activities and special events as the park is more fully developed. did this and at the same time established a lasting By 1985, between 500 and 530 residential units will be identity for Harbourfront as a interesting and enjoyable developed to go along with the 75,000 square feet of place to be. Another valuable lesson can be learned existing office space. Most of the planned development from the Development Framework that was prepared to will occur after 1985. By 1990, between 996 and 1,036 guide the Harbourfronf Corporation in rebuilding the site. residential units will exist on the site. An additional The important attribute of the Framework is its flexibility. 260,000 square feet of new residential space is also The guidelines articulate the basic principles underlying scheduled for development by 1990. the development program-mixed-use, public access, The Canada Malting plant could be retained as a cultural programming, financial independence, and so compatible industry. The area to the north of this plant is forth-wifhouf specifying the exact spatial configuration seen as a complex of marine industries, boating or development details. Approval of this document associations, and transportation- related uses. allowed general planning and preclevelopment work to 122 move forward while specific development alternatives were being considered. The development proposals for individual parcels within Harbourfront were and undoubt- edly will continue to be tailored to respond to changing Although the project is in its infancy, the lack of easy needs and circumstances. This approach avoids the vehicular access and circulation has been a major frap of proposing a detailed scheme at the beginning concern of the Harbourfront Corporation, Improvements of a long-range project only to find that as the years are scheduled to be made and hopefully the work will pass the original scheme is no longer relevant to the be approved and completed shortly. If the present contemporary situation. situation is allowed to continue, if will not be long before The "Harbourfront Development Framework" is also if becomes a severe handicap. commendable for its recognition of the impact climatic Finally, Toronto is a growing, thriving, metropolitan variables have on waterfront development. The frame- area with a healthy, active downtown business district. In work acknowledges the restrictions Toronto's seasonal this light, Harbourfronf was not viewed as a catalyst to extremes will place upon waterfront development and revive a declining city or as one element of a larger suggests design ideas to mitigate climatic impacts. In redevelopment program, It simply was and remains an addition, the Development Framework calls for a broad effort to make better use of an underufilized section of range of uses and facilities that would generate year- urban waterfront in a city that welcomes sensible round activity. imaginative development. 5-12 Pro ,Ject Da Ito-Witbourfront Land Use Information: Site Area: 92 acres Land Use Plan: -Acres Percent Mixed-Use ......... ...... 25. circulation 7 7.6 Open Space and Parks .... 40, -4-3.5 Water Lots ............. 20 21.7 Total ..................... .0 Mixed-Use Development: Office: 1.2 million sq. ft. Special Commerci6l,Uses (such a's hotels, trade marts)i I-G,rnilhon sq. ft, Retail-: 500,000 sq, ft. Recreational and Cultural Uses: 250,000 sq. 4. Housing: 3,500 units' Morino Slips (Public): Transient: 50, Permanent: 200 Parking Spaces, Residential: Approximately I space per dwelling unit Commercial: I space per 1,000,sq. ft-of Igross le0sableare-a Hotels: 2 (500 toA,000 rooms) Restaurants: Anticipate 15 to 20 (up to 10G,000 sq@ ff.) Economic Information: Site Acquisition: $60 million' (107Z'b@ _f6d6r6l'9'6V',ern'm e"'rf)" Site Development Costs: $340 million Public: Roads, Utilifies, Drainage ............... ......... 9.8 million Waters' Edge Promenade ........... 8.0 millIon PublicParks @ ... __ ...... ...... 40.1 million Ploorting and Marina Breakwater, Pier .. @ ... :............. ........... 8.2 millflon Cultural Facilitie's ........ ...... ___ ...... 40 million Development Coordinator: Total ....... .................... ........... 40.1 million Harbourfront Corporation Private: 417 Queen's Quay West To Date . .............. ;............ $160 million Suite 500 Projected ............ ........ ........ ... S140 million' Toronto, Ontario, Canada M5V IA2 Total ........................ ............ $300 million- (06) 364-7127 123 Redevelopment Strategy The city leadership hoped that an ambitious urban redevelopment program would encourage private in- vestment back into the city The strategy was to use both public and private funds to finance redevelopment. In 1961, $150,000 was raised from private sources to form The plan was approved by the city in 1964. Its basic the waterfront redevelopment division of the Chamber of concept of mixed, "people-oriented" use of the area Commerce. The strategy of using both private and seemed highly feasible because of the area's location, public investment was based on the belief that the facilities, and historical significance. As part of the expertise of the private sector was absolutely necessary primary business district, the area was centrally located to ensure the long-term success of the redevelopment and within walking distance of rail terminals and the projIect. Private developers were capable of evaluating retail core of downtown Boston. The Central Artery the feasibility of ideas and programs in terms of market provided direct automobile access to the project area. bemand, financial risk, and management requirements. Several forms of public transit served the area and Private investment demonstrated a long range commit- Boston's cultural, entertainment, and educational facili- ment of resources that would not be subject to changing ties were only a short ride away. The view of Boston political forces. On the other hand, public involvement Harbor from the waterfront was spectacular and the and guidance were necessary to overcome the multi- shoreline represented the historical foundation support- tude of complex jurisdictional and social barriers to ing, Boston's growth and development. redevelopment. Not all of the characteristics of the area were This strategy was successful to the point that the city of encouraging, Like many other large cities, Boston's more Boston had to absorb very little of the total redevelop- recent growth was mostly suburban. Many residents of ment costs. The city government was able to enlist the city moved to the suburbs, leaving behind declining private investment in the area with the city contribution inner city neighborhoods and a growing crime and coming in the form of improved services to the area security problem. This exodus of city dwellers eroded the instead of direct cash expenditures, tax base and forced the city to cut back services. Despite the aggressive leader@hip of city officials, Consequently, the downtown area became less desir- waterfront redevelopment proceeded slowly. First, there able for residential use. Furthermore, the urban water- was the complex task of relocating fishing vessels and front was not attractive or open for public use. The accompanying facilities to a pier in South Boston. Then project area was not a cleared open section of the city there was the even more complex task of utility ripe for redevelopment; in fact, it exceeded the density construction. For years the combined sewer and storm standards for the rest of the city. The initial Boston drains for the entire downtown area had emptied into redevelopment study showed overcrowding of structures, the harbor in the area designated for renewal. The insufficient public utilities, obsolete buildings, incompati- renewal plan called for installation of a new utility ble land uses, and vacant properties. Despite these system whereby storm and sewer drains would be problems many of the structures had historical impor- separated, with sewage pumped to a treatment center fance, and there was public resistance to their demolitioh. The area was generally dominated by landowners holding small parcels of property. Many of them operated marginal businesses and owed their survival to the low property taxes and depressed rents found in the area. In addition, some of the business operators who had either gone out of business or relocated continued to hold on to their property because of the poor resole market, Interestingly enough, during most of the 1960s, parking lots were considered the best use of the area- at least in economic terms. W. Despite these many problems, the early 1960s proved to be an auspicious time for Boston's waterfront. The new mayor was searching for a way to establish credibility and leave his mark on the city. Given a dwindling city tax base, the Hundred-Acre Project offered an excellent opportunity to reverse the trend and revive the central business district. Also, federal funding was available to Al help stimulate developmpnt. 5-15 Investing public and private funds in the central waterfront led to the redevelopment of Long Wharf. 126 at the other end of the harbor. All of the utility work had to be done in an area that was land filled and where the water table rose and fell each day with the ebb and flow of the tide. In addition, Atlantic Avenue, the roadway which ran along the water's edge, needed to be relocated and a new roadway built while at the 1_1 12t, same time accommodating traffic which ran through the area. The logistics of heavy construction were but one aspect of the difficulties encountered by the city and JIN f4r.11I)i�R--j- BRA as renewal progressed on the waterfront. The waterfront plan won approval at a time when few people lived on the waterfront. Once residents began moving into the area they felt they should have a voice 7 in how the project was implemented. The result was a monumental court suit which the residents brought against the BRA in 1972 (Boston Woterfront Residents' 5-16 Many of the large granite and brick buildings located aIlong the Association, Inc. vs. George Romney et of., Civil Action central waterfront have been adopted for new uses, Number 72-1157-LC). The federal judge who heard the case declined to ownership agreement for the Faneuil Hall Marketplace rule in favor of the waterfront residents or the BRA. was written so that the developer has a 99-year lease on Instead, he ordered that a committee of residents and the buildings and land, and the land is covered by a other interested parties carry out a restudy of the special tax arrangement. The owner pays no taxes for waterfront plan and make recommendations on how the an initial period of time and then pays on a basis of a plan might be modified. This was done, and in 1974 the predetermined percentage of the gross revenue pro- BRA agreed to virtually every modification recom- duced by the businesses in the market, Developers in the mended by the restudy committee. The density of the urban redevelopment project area were guaranteed by project was scaled down and all planned high-rise the city and state that the BRA would maintain control of structures eliminated. Atlantic Avenue would not only be the waterfront sites for 40 years from the start of the realigned but it would be narrowed, allowing for a redevelopment program in 1964. waterfront park of six acres instead of three, The long-term implication of fax abatements deserves The celebrated renovation and reuse of Faneuil Hall mention. Obviously, the smaller the percentage of the Marketplace was the centerpiece of the Hundred-Acre overall fax burden being paid by business, the more Project. Federal funds financed the majority of the residential properties will have to pay for essential renovation of the three granite buildings and surrounding services. This makes the city less attractive for residential grounds. The rehabilitated buildings were all opened by development. While making the central urban area 1978. The U.S. Department of Housing and Urban attractive to developers who will construct buildings and Development provided federal funding, and city funds invest in land brings needed city jobs and revenue from came primarily from bond issues, However, the success commerce, the city has forfeited its right to tax of this project depended overwhelmingly on private appropriately, Although the city received little revenue investors committing funds to development in this area. from the blighted and deserted area before redevelop- The Boston Redevelopment Authority estimates the total ment, in frying to encourage private investment, the city private investment to be fhree-and-one-half times the extended major long-term tax breaks, assuring a lower public investment and over 20 times the city's expendi- income to the city far into the future. ture.2 Shoreline regulation was another government power Five years after opening, the Faneuil Hall Marketplace that was altered in order to attract private development. is an overwhelming success. Offering a variety of shops Originally almost all of the waterfront land in the and restaurants within the pleasant surroundings of a redevelopment area belonged to the state. The state historic meeting place, the Marketplace attracts 15 gave up its rights to the BRA, which has design and use million visitors a year. Approximately 60,000 people a controls on parcels it resells. Now most of the waterfront day visit the mari<et's 170 retail shops and 40 pushcarts, is under the control of private interests. Some state land spending $75 million to $80 million a year was sold and, elsewhere, licenses for private use of both To attract private investment of this magnitude, the city the land and the tidelands were issued by the state. of Boston had to be in a position to offer development These licenses were guaranteed to be irrevocable, as incenf ives to the private sector The city officials did f his required by the developers. The city of Boston also gave by granting concessions to developers that would help up much of its prerogative in tax collection as to reduce the risk of investment. For instance, the landowners and as regulators of the shoreline to gain private economic development and revitalize its wafer- 2Farrell, Development and Regulation, page 10. f ront. 127 office uses and the combination of renovation and new construction, resulted in some difficulty in obtaining a financing commitment. The financing commitment in- cluded conditions for presoles as well as certain equity requirements. The developer was required to presell 30 Developing the Wharf percent of the total number of units to prove both Union Wharf is located within the Hundred-Acre Project pricing and marketability. In addition, a number of units area. The project consists of a 19th century granite were sold at a substantial discount to provide additional warehouse that has been converted to residential and equity. office condominiums. There are also several newly Union Wharf is the last of the four historic wharfs on constructed townhousesand amenities in the form of a Boston's waterfront to be recycled. If is bordered by marina and landscaped plazas. Lincoln Wharf to the north, site of a defunct Massachu- Union Wharf is located on a 2.6-acre site on Boston's setts Bay Transit Authority (MBTA) power station, and central waterfront. The project not only combines Sargent's Wharf to the south, presently used as a public adaptive use and new construction, but also combines parking lot. The site is conveniently located, It is residential and office condominiums within the same approximately a 10-minute drive from Logan Airport, two buildings. A historic granite warehouse built in the mid minutes from the Southeast Expressway, and within a five- 1840s has been converted to 64 resident ial and office minute walk of an MBTA stop. Faneuil Hall Marketplace, condominium units, 23 new fownhouses have been the downtown financial district, Lewis Wharf, Commer- constructed, and an old tin shed structure has been cial Wharf, Long Wharf, Government Center, and the converted to two office units. Altogether, 43 residential North End are all within convenient walking distance. and 46 office condominiums are provided. Units in the The project's location at the water's edge provides granite warehouse range in size from 933 to 4,000 superb views of both the Boston Harbor and the city square feet, while the new townhouse units are all nearly skyline. Three other large warehouses within three blocks 2,000 square feet. The new townhouse units are the first of the site have been converted to residential, office, single-family units to be built in downtown Boston in and retail uses. nearly 50 years. Amenities provided include an outdoor The irregularly shaped wharf extends 590 feet into the swimming pool, landscaping, plaza areas, a roof deck harbor and has water frontage of approximately 1,200 on the granite building, and a marina with approx- feet. At the time the site was purchased it contained two imately 400 feet of dock space. buildings. The historic granite warehouse occupied the The site was purchased by the developer in April 1978 northwestern portion of the wharf and a two-story tin and construction was started shortly thereafter All units shed of approximately 5,000 square feet was located at were sold by mid 1979 and the project was completed the entrance to the wharf. The remainder of the site was late in 1979. Approvals were required by the Boston being used as a unpaved parking lot and as a Redevelopment Authority, the State Historic Commission, commercial marina landing. and the Massachusetts Turnpike Authority. The Callahan This marine warehouse was built in 1846-1847. Its Tunnel runs beneath the site and, therefore, development overall dimension of 92 feet by 290 feet was divided into within the tunnel easement had to comply with the seven boys, each approximately 40 feet wide. The Turnpike Authority. eastern portion of the building (three bays) was three All units were sold as raw space, with no finishing stories with a basement and the western portion (four provided. The developer's decision to sell the units bays) was five stories with a basement. A fire in the unfinished, together with the mixture of residential and eastern portion of the building in the early 1940s had PLOT PLAN PARKING 0 25 W 0 5 10 PARKING PARKING 17 MARMA 5-17 Union Wharf site plan. 128 damaged the fourth floor, which was removed shortly after. The remainder of the building showed no evidence of fire or serious structural problems. However, there was some interior water damage and roof and floor deterioration, There were also some cracks resulting from settlement following construction of the Callahan Tunnel under the wharf, The granite building is an outstanding example of the 1810-1860 Boston Granite style and was one of only four remaining examples of its warehouse uses, The buildings' M-111 peaked pediment lintel stones and gable-end pediment also illustrate the continuing popularity of the Greek Revival style during this period. The detail of the building 77 J M T7 is the same on all elevations. On the ground floor, large windows and doors are -framed by rock `74 -faced granite post and lintel architraves, with the areas between openings infilled with courses of granite blocks two feet % 'high. The upper floors are ornamented with windows having post.and lintel frames of smoothly finished granite. Smoothly finished granite also is used deco- ratively in the groins in all four comers and for the 5-18 A 19th century granite warehouse was converted to residential and cornice. . office condominiums, and new townhouses were constructed on The building's inferior was rough, warehouse-fype the wharf. space. Throughout the interior, brick party walls and Raw space delivered to buyers in the granite building wooden joists, measuring approximately four by 12 consisted of sandblasted exposed beam ceilings and inches, were exposed. The flooring was heavy wooden brick walls, a concrete floor, and roughed-in plumbing planks, with the exception of the dirt basement floor. and electricity, Each unit also was provided with a flue Small interior staircases connected the various floors and hearth to permit the owner to have a brick along with floor openings for conveyor belts. Each bay fireplace, Franklin stove, or a modem freestanding contained three large windows on both the north and fireplace unit. Floors were strengthened by pouring south sides in addition to large double doors. Corner about three inches of reinforced concrete over the bays contained four to seven additional windows. existing wood floors. This also helped to soundproof the building. Further soundproofing was provided by elim- Development Strategy and inating all vertical penetrations between units except for Design Features utilities. Electric heaf pumps were installed by the developer to provide a modem and efficient heating Jhe basic development objective was to provide and cooling system. Individual electric meters and hot residential and office condominium units for a luxury water heaters were provided for each unit. market. The strong demand for space in a historic wharf The granite and brick exterior of the building was setting on the waterfront, coupled with a dwindling chemically cleaned, bringing it back from a very dark supply of such space (as mentioned earlier, the three grey to its original light grey and red brick. A sixth floor remaining historic wharfs in Boston had already been was constructed on the building's western portion as a successfully recycled), made if feasible to charge the dormer opening onto private roof decks. Graceful, highest possible prices within certain limits. Dealing with curving iron balconies measuring six feet by 12 feet were the top end of the market also meant that because added for each unit above the first floor and mahogany buyers were paying premium rates they would have French doors were installed for access to the balconies definite ideas as to the end product. Therefore, the sale using existing openings. The balconies, together with of finished units would have made it necessary for the white vinyl-clad windows, helped to accent the massive- developer to offer a wide variety of finishes and to be ness of the granite, an important consideration in the prepared to make considerable changes to satisfy exterior renovation, buyers. In order to avoid this problem it was decided to The new townhouses, which are located in the .offer all of the units as raw space for complete inner southeastern portion of the site, are three stories with red finishing and customizing by buyers. This was done for brick exteriors, Each unit has two decks, one on the first both the renovated granite building and the new floor and one on the third. Rough space interiors townhouses. Public resfrooms were not provided for included two fireplace flues, beamed ceilings, heating commercial areas. Rather, it was the responsibility of and air conditioning, and roughed-in plumbing and each owner to construct such facilities. Architectural electricity, Stairs and subflooring were also installed. design and consulting services were made available to Utilities and windows were located to provide maximum those buyers who did not wish to choose their own flexibility for buyers when finishing the units. All of the consultants and contractor. townhouses were constructed using flotation foundations. 129 etc.) complement each other both in terms of economic viability and urban design. Just as Union Wharf benefit- ted greatly and learned from the redevelopment efforts that preceded it, future projects can benefit from the experiences offered by Union Wharf. One important lesson is that the recycling of a historic wharf for residential and office uses can be successful. Potential conflicts over parking availability and public access have not materialized. This is due in part to good design but also can be attributed to the altered expectations of occupants. The concept of marketing unfinished space proved to be very successful. The sale of all units as raw space reduced the time cost of the project by allowing units to be conveyed at the earliest possi e time and by 5-19 The new townhouses were constructed using flotation foundations and the units marketed as unfinished space, eliminating the necessity of waiting to do detail work and having to make last-minute finishing changes for Since the project includes both residential and office buyers. The sale of raw space resulted in the lowest net condominiums, the developer was selling to two distinct project cost and presented the opportunity, through markets. The residential market was upper-income marketing, to maximize the profitability to the developer. professionals, primarily couples without children in the 35 This resulted in a project that was able to return to 55 age bracket. About 50 percent of the buyers were approximately 20 percent of gross sales as a profit. individuals renting or owning in Boston, primarily in the The sale of raw space was particularly successful in waterfront area. Most buyers were seeking more space dealing with a luxury market. Upper-income buyers and/or an ownership position. Also, the concept of generally want to add their own design touches and designing one's own home greatly enhanced sales. The can afford to do so. It was imperative, however, that remaining half of the buyers were from the suburbs or extreme care was exercised regarding major structural from outside of Massachusetts. Typically, these were or systems changes contemplated by buyers. The empfy-nesters no longer needing a large single-family developer had to clearly identify to buyers those detached home. changes which are not permitted and carefully review The office condominiums found their largest market in the changes proposed for each unit. attorneys' offices, followed closely by investment and Another important lesson to be learned from Union management consultants. All of the office buyers were Wharf is that the mixture of residential and office uses in attracted by the benefits of owning as opposed to the same buildings has worked very well. The higher renting, expecially with the increasingly fight downtown prices paid by commercial buyers made if possible to rental market. Also, the sale of rough space appealed provide parking and other facilities for residents without to office users, since it allowed them to design the most significantly increasing residential sales prices. Reserving efficient office space possible for their own particular certain portions of the buildings for only residential use or needs. for limited office use also helped to assure compatibility Through a discount presale program, 50 percent of between the two uses. In addition, the individual the units were under agreement prior to construction. A metering of units not only has encouraged energy sales office and a finished residential model were responsibility by purchasers, but also has assured that established at an adjacent property Advertising for both the five-day-per-week office users will not be burdened the residential and office condominiums was handled with the costs of the seven-day-per-week energy use of through direct mailings and weekly ads in two local residents. papers and various trade publications. A full-time broker Union Wharf demonstrated that, in a waterfront was employed by the developer along with two other environment experiencing wind-driven rains, it is essential sales/administrative people. Outside broker participation that designs and materials be carefully reviewed for also was encouraged. waterproofing in exposed areas. Because of environ- mental factors, if was sometimes necessary for actual Experience Gained construction to deviate from construction drawings. The marketing program was also fundamental to the The redevelopment of Union Wharf is just one of the project's success. The use of finished models is a critical dividends produced by Boston's comprehensive ap- facet of the marketing program when selling raw space. proach to waterfront development. The elements of the A finished model allows prospective purchasers to Hundred-Acre Plan (Faneuil Hall/Quincy Market, Water- visualize possibilities for the raw space and, therefore, front Park, Mercantile Wharf, New England Aquarium, serves as an important sales tool. 130 5-20 Project Data-Union Wharf Land Use Information: Land Use Plan: Site Area: 2.61 acres, Acres Percent Total Units: 892 Buildings .................................. 1.15 44.06 Gross Density: 34.10 units per acre Parking/Circulation ...................... .96 36,78 Parking; 112 spaces Landscaping/Pool --.- .............. '50 19.16 Total ........ ............................. 2.61 100.00 Unit Information: Sales Units Size PrIce3 BedroomS4 BathrooMS4 New Townhouses (23) ................... 11,962 sq. ft. $132,000- 3 1 170,000 Granite Building First Floor/Basement .............. 933-4,000 sq. ft. $ 33,000- [email protected] N.A.5 155,000 Second and Third Floors ......... 1,264-2,000 sq. ft. $ 55,000- 2 2 150,000 Fourth, Fifth, and Sixth Floors ... - 1,275-4,000 sq. ft, $ 65,000- 2 2 252,000 Tin Shed ............................. 2,000 sq. ft. $110,000 N.A,5 N.A.5 Economic Information: Notes: Site Cost: $1,350,000 (1978) This does not include water rights in the 5 These areas contain only commercial Site Improvement Cost: $500,0006 marina area covering 1.65 acres of space. Construction Cost: water surface, 6 Cost for pool, utilities, and landscaping. Granite Building: $23 per sq. ft,7 2 Includes 43 residential units and 46 7 Hard costs only, Site improvement costs New Townhouses: 33 per sq, ft.7 office units. are also not reflected in these figures. 3 All sales pr@ices are for raw space. Total hard construction costs were $3,85 Total Cost: $6,900,000 4 Typical unit information. Residential units million. Soft costs were $1.2 million. only. Developer: Engineering: Financing: James S. Craig and Austin A. David M. Berg, Inc. Schroder Bank and Trust Heath, Partners 570 Hillside Avenue One State Street Union Wharf Development Needham, Massachusetts New York, New York 10015 Associates (617) 444-5156 (212) 269-6500 54 Lewis Wharf Management: Boston, Massachusetts 02110 Hunneman Management CBT Realty Corporation (617) 227-3710 Company One Constitution Plaza Architecture: One Winthrop Square Hartford, Connecticut 06115 Moritz Bergmeyer Associates, Inc. Boston, Massachusetts 02`110 (203) 244-5069 118 South Street (617) 426-3260 Boston, Massachusetts 02110 131 History Charlestown A National Historic Landmark, listed in the National Register of Historic Places, the Naval Shipyard at Charlestown is significant because its role in the building Navy Yard, and maintenance of many important ships of the fleet and its contributions to industrial technology. Boston, It was chosen in 11800 as the logical location for the establishment of a needed government dockyard because of its active shipyards. Since that time the Yard Massachusetts has played a significant role in the production of warship and nonwarship vessels. The first iron torpedo Based on the remarkable success of Boston's down- boat, the Intrepid, was launched from Charlestown in town waterfront redevelopment, the Charlestown Naval 1874, and in the 20th century it was the site for Shipyard presented another excellent opportunity for the submarine construction as well as conversion of ships for city to reclaim a portion of its waterfront. The shipyard is guided missile and anti-submarine duty. World War 11 located on the eastern waterfront of the Charlestown witnessed the peak of the yard's productivity. section of Boston, north of the downtown and bounded The Charlestown Shipyard has been the site of several by the Charles River, the Inner Harbor, the Mystic River, unique facilities since its inception. The first "shiphouses" and the Tobin Bridge. At this site, approximately 105 which allowed ships to be built undercover, thereby acres of surplus land, buildings, piers, dry docks, and protecting them from the elements and speeding water with historical, architectural, and locational value production, were tested here. The idea proved so are being redeveloped by the Boston Redevelopment successful that it was copied in other shipyards in this Authority (BRA). The BRA has established specific country and abroad. These shiphouses were located planning and design guidelines to direct the implemen- near the existing shipways and were removed in 1901. In fation of a mixed-use development program that calls 1815, a naval training school for officers was established for residential, commercial, institutional, recreational, at the Yard, and it became a parent institution for and light manufacturing uses. Annapolis. In the next decade, Dry Dock I was begun __.AV7_ k, - 5-21 The Charlestown Navy Yard was closed by the U.S, Department of Defense in 1974. 132 (1827) and is one of the two oldest dry docks in the country. Ironically, the U.S.S. Constitution was both its first and last occupant. In 1836, the 1,350-foot-long Ropewalk building was constructed, This granite structure provided all of the rope requirements of the Navy for the last 135 significant buildings was identified and development years--producfion ceasing only in the post decade. In controls established for the property. This 30-acre tract 1926, A.M. Leahy and C.G. Lutts invented what is known contained 25 buildings. as the "Die-lock chain." This became the Navy's sfan- In 1976 the BRA incorporated the Navy Yard into the clard chain and was manufactured in the Forge and Charlestown Urban Renewal Plan, thus assuming respon- Chain Shop (building 105). sibility for development of the area. The BRA, acting as The shipyard's significance lies in its architectural the city's planning agency, initiated the transfer of the significance as well. Its structures illustrate many building following three development parcels from the Depart- types and several phases of 19th and 20th century menf of Interior: architectural styles. Early 19th century residential exam- Historic District - Transferred at no cost in return for pies exist as well as later industrial buildings and World agreements by the BRA with the Department of Interior War 11 temporary shed structures. The construction dates that all of the 25 buildings in the area, with the fall roughly info five periods, which generally coincide exception of some World War 11 additions, would be with major wars of the two centuries. As well as illustrat- restored and the area maintained as a historic district. ing popular building styles, the shipyard structures exhibit * Recreational Parcel - Transferred at no cost in return the increasing size and capacity of industrial structures for commitments from BRA that it would be used for permitted by changes in technology. public recreation. * New Development Parcel - Negotiated sale with Project Development General Services Administration for private develop- menf. The U.S. Department of Defense closed the Navy Yard The BRA is responsible for the design, execution of in 1974, and the General Services Administration was improvements, and all public development activities. It delegated the responsibility for disposing of the surplus oversees the phasing of private development and serves property.' as the conduit between developers and the federal, In 1974, a 30-acre segment of the Navy Yard-its state, and city agencies which have an interest in the southernmost section-was included as one of the seven Navy Yard. sites in the 1974 Boston National Historic Park bill. The historical and architectural significance of the Operated by the National Park Service in *cooperation Navy Yard complicated the normally intricate process of with the 'U.S. NaW the park includes the U.S.S.-Constitu- waterfront development to a point that a carefully tion, the destroyer Cossin Young, the U.S.S. Constitution thought out development strategy and action plan was Museum, Dry Dock 1, and a 19th century commandant's necessary. Therefore, for planning and implementation house. More than 650,000 visitors visit the Historic Park at purposes, the Navy Yard development program ad- the Navy Yard each year, making it one of the most dressed three distinct areas: Historic Monument Transfer popular attractions in Boston. Area, Shipyard Park, and New Development Area. The Boston Landmarks Commission initiated the effort to list the entire Navy Yard on the National Register of Historic Monument Transfer Area Historic Places. In the process of gaining this designation, the portion of the site containing the most architecturally Design guidelines for the preservation of the exterior elements of the buildings in the Historic Monument The Federal Property and Administrative Services Act of 1949, as Transfer Area are spelled out in an agreement between amended, is the legal authority by which the U.S. gpvemm6nt disposes the BRA and the National Advisory Council on Historic of most unneeded federal real property. The agency holding excess proiberty notifies the General Services Administration (GSA) of its intent Preservation, and were part of the conditions of transfer to relinquish rights to the property, GSA then screens the property with of the buildings from the federal government to the BRA. other federal agencies to determine further federal use. In the absence The guidelines have received national recognition and of such requirements, GSA determines the property to be surplus to the needs of the entire federal government, GSA then makes it available to will assure that the architectural character of the Historic state and local governmental units and eligible nonprofit institutions to Monument1ransfer Area is maintained. Designs for be used for various public purposes. Public purpose disposals are streets and pedestrian areas reflect the 19th century made for parks and recreation, historic monuments, public health or education, wildlife conservation, or public airports, Such public benefit history of the Navy Yard and will create an attractive disposals are made at no cost to the recipient, but the deeds of and historically appropriate environment. conveyance contain appropriate use restrictions, If a local public agency wishes to acquire surplus property without use restrictions, it can The Historic Monument Transfer Area includes buildings negotiate with GSA to purchase the property at fair market value. dating from the 1820s through the turn of the century. 133 Shipyard Park Among them are solid granite workshops and ware- The 16-acre shipyard park of the Navy Yard includes houses, built in the 1830s and 1840s, a period of intensive three types of spaces: a 6.5-acre landscaped area, Dry Navy Yard expansion. Later 19th century brick and Dock 2, and Pier 4. The landscaped section incorpo- granite structures reflect advancing building technology rates gently rolling meadows, free-lined paths, shrubs in their larger size and robust archifecfural treatment. A and flower beds, a children's playground, a large number of small brick buildings show the influence of granite fountain, and a pavilion which is actually a part various Victorian styles, while large, turn-of-the-century of the building that formerly stood on the entire 6.5-acre facilities were designed in the popular commercial styles site. Plantings are typical of those found in a seaside of the day, and World War 11 structures are strongly environment, and the design of the fountain is reminis- industrial in appearance. cent of the form of a dry dock. The park's orientation The buildings in this area will be offered for private emphasizes vistas of Boston's skyline. development on an individual basis, under long-term Facing the landscaped section is Dry Dock 2, dating lease agreements with the BRA. They range in size from from the late 1890s. Dry Dock 2 is permanently flooded the small, hexagonal Muster House (6,000 square feet, and will have a pedestrian promenade around its built 1852), to the 93,000-square-foof Administration perimeter Pier 4, the Town Landing, is the location for a Building (Building 39, built 1863), to the brick and public dock including 50 slips for short-term boat concrete Building 149 (built 1919) with 725,000 square mooring and facilities for tour boats, commuter boats, feet of space. If is estimated that developers will spend and water taxis. approximately $70 million to restore these buildings. The In return for commitments that if would be used for BRA plan calls for a variety of uses in this area, including public recreation, the land for the park was given at no commercial, residential, institutional, and possibly some cost to the BRA by the Department of Interior's Bureau of light industry. Outdoor Recreation. Funding for phase one of the park U @ \L-j _ E I ILI ... ......................... 0__ Natli Historical ULU 0 Park El 0 P31rik j Ids ot (0 FT+ LLD) 5-22 Charlestown Navy Yard site plan. 134 Photo credit: Steve Rosenthal was provided from a $1.7 million grant from the Economic Development Administration (Dept. of Com- merce) and a $900,000 grant from the Bureau of Outdoor Recreation. Phase two, which involved the renovation of Pier 4, seawall improvements, and the marina, was funded from a second phase grant of $500,000 from the Bureau of Outdoor Recreation and from $500,000 that was part of an Urban Development Action Grant (Department of U, Housing and Urban Development). The total cost of developing Shipyard Park will be approximately $4 million, Funding for the balance of the work to complete the park is not in place at this time. X IN New Development Area Encompassing some 57 acres of land, piers, and wafer, the New Development Area is being developed by the firm of Immobiliare New England, with a total investment estimated at $120 million. Immobiliare New England is a Boston venture of two major international development and construction firms: Societa Generale Immobiliare, Rome, Italy, one of the largest and oldest 5-24 Model of the Charlestown Navy Yard redevelopment project. real estate organizations in the world, and the ICOS group, which operates throughout the world in the highly specialized field of foundation construction. Immobiliare angled skylights, contains 368 market rental apartments, is producing some 1,200 housing units, both rental and with the adjacent Building 40 providing 362 parking condominium, with about half being developed through spaces. Construction will start this fall on Building 197, a the recycling of factory and warehouse structures within World War II-era laboratory building. This building is the area. Also planned are 20,000 square feet of being converted to about 150 condominium units and commercial space, parking for about 1,200 cars, and a parking. Additional housing is planned for Building 103 500-room hotel, Ten percent of the housing is being (1100 units) and Building 104 (70 units) in the future. New reserved for elderly citizens. The complex is known as construction will produce 250 townhouses on Piers 5 and Shipyard Quarters of Charlestown. 7, fownhouses on Shipways 1 and 2, and a mid-rise The first building to be recycled was Building 42, a complex at the water's edge between Piers 8 and 10. former machine shop and foundry. This brick and granite Immobiliare will also develop marina facilities with 500 structure, with its distinctive arched entrances and slips and will provide a public promenade along the wafer's edge throughout the New Development Area. The firm has been designated the developer for the section fr6m Building 197 to Dry Dock 5, and has an option on Pier 11, the proposed hotel site, Because of its historic and architectural significance, the entire Navy Yard is listed on the National Register of Historic Places. As a result of this listing, the rehabilitation and recycling of buildings within the Yard is eligible for the tax advantages offered to developers by the Economic Recovery Tax Act of 1981. Innovative combinations of funding and land disposi- an, tion have enabled the Navy Yard project to move forward expeditiously. As previously mentioned, some 46 acres of the Yard were transferred to the BRA at no cost by the federal government in return for agreements r arding future use of the property. The Bureau of eg Outdoor Recreation (BOR) gave the 16-acre Shipyard Park site to the BRA on the condition that it be used 5-23 View of the Shipyard Park with Boston's skyline in the background. 135 Experience Gained Several aspects of the Charlestown Navy Yard project P merit special attention. Although much of the total development plan has yet to be implemented, more than enough has been accomplished to learn from in terms of property administration, planning, and design. Some elements of the project are particularly noteworthy ecause of their relevance to opportunities in other urban waterfronts. The reuse of surplus federal property in this project demonstrates the tremendous rewards that are possible when there is cooperation between federal agencies and city governments. By disposing of the lands, the General Services Administration has enabled the city to increase its tax base and infuse new vitality into the former military facility. The federal government was able 5-25 The primary design objective was to conserve as many of the to obtain funds from the sale and subtract future existing, structures as possible while adapting the buildings to new, maintenance from the federal budget. viable uses, The disposal of surplus waterfront property could be improved, however, if the General Services Administra- exclusively for public recreational purposes. And the tion would recognize the costs of managing property General Services Administration, through the Department prior to development. The BRA was responsible for of Interior, transferred the 30-acre Historic Monument protection and maintenance of the Navy Yard during Transfer Area to the BRA in return for an agreement that preclevelopment and there was not an adequate the buildings and grounds there will be preserved and amount of urban renewal funds to support this massive the area developed and maintained following the responsibility. As a result, it was very difficult forthe BRA guidelines established by the BRA. The design guidelines to protect the property from deterioration and blight. This for reuse of the buildings and ground plane treatment as circumstance could have been helped if the General well as the chronological history and measured ink Services Administration would have taken these costs of drawings of each structure's elevation had to be property maintenance and management into account completed by the BRA before the actual property title when determining the fair market value of the surplus transactions could take place. property. The remaining acreage within the New Development The key to satisfying the conflicting demands voiced Area was purchased for $1.7 million from the General by the federal agencies involved in the project (Park Services Administration, Immobiliare is advancing BRA Service, Department of Defense, Department of Com- the money needed to acquire this portion of the land. merce, and General Services Administration) was the Project funding for all portions of the Navy Yard Redevelopment Authority's innovative approach to plan- includes the following: ning and implementation. By dividing the Navy Yard into * $4.8 million, Economic Development Administration three distinct components and responding to the special (Department of Commerce), of which $1.7 million was characteristics of each area, many potential develop- used for phase one of Shipyard Park. The remainder is menf conflicts were more easily resolved. for site improvements including new utilities, sidewalks, A project of this complexity and magnitude would not roads, street furniture, selective demolition, restoration, have been possible without the involvement of an and design and engineering. organization like the BRA, An organization experienced * $2.2 million, city council bond authorization, as city's in waterfront development was needed to oversee the matching share of EDA grants. phasing of private development and serve as an * $2,5 million, Urban Development Action Grant (Depart- intermediary between developers and the federal, state, menf of Housing and Urban Development), used to and city agencies and the local community which have develop a new main access road in the old gate 4 an interest in the Navy Yard. The BRA answered this area, demolition, a match for the phase two for BOR need. In addition, a city agency considering the grant and phase two at Shipyard Park, and recon- acquisition and development of surplus federal property strucfion of 8th and 9th Streets utilities, streets, and should prepare a cash flow statement documenting ground plane treatment. budgets for such expenditures as insurance, security, * $900,000 Bureau of Outdoor Recreation (Department police, snow removal, electrical distribution, and security of Intefior) for phase one, Shipyard Park. fencing, The Charlestown Navy Yard project clearly * $500,000 Bureau of Outdoor Recreation (Department demonstrates that these preclevelopment costs can add of Interior) for phase two, Shipyard Park. significantly to the. cost of a project, 136 The basic urban planning and clesign.concepts guiding the redevelopment of the Navy Yard are an appropriate response to a challenging redevelopment opportunity. The primary design objective was to maximize the conservation of the existing resource while adapting the buildings and site to new and eco- nomically viable purposes. The intent was neither to Finally, the staging of the development was gi@en recreate the impression of an earlier time nor destroy all careful consideration. It was important to show some evidence of the area's industrial past. evidence of redevelopment while providing public Throughout the planning for the Navy Yard project, the amenities to attract people to the site. This objective was BRA worked closely with a representative group of accomplished by initially,building the Shipyard Park. The Charlestown residents known as the Charlestown Advi- park improved the image of the Navy Yard and sory Committee. This effort was very important: by reinforced the credibility of the total development plan. communicating with area residents, community interests Other evidence of redevelopment was the ongoing and values were incorporated into the planning process. demolition and restoration contracts in the historic The BRA guaranteed the residents that the project would district; new utilities, sidewalks, streets and. landscaping not be a private enclave but instead a community throughout the site; and public offerings of buildings for resource-The local community's major interests are job redevelopment, The major residential component opportunities, business for local trades people, housing (Shipyard Quarters) was developed following comple- for the elderly, and public recreational facilities. tion of the park. 5-26 Project Data@Charlestown Navy Yard Land Use Information: Notes: Site Area: 106 acres 1 Includes piers, slips, and water areas. ? Includes only public investment; private Land Use Plan: Acres Percent landscaping costs not available. Residential ......... ............... 23 21.6 3 Private site improvement costs are not Commercial , @ ............... __ ....... 5 5 available, but are anticipated to Office ................ .................... 9 8 match the public investment when the Industrial ...................... 1--l..''.. 6 6 project is completed. Institutional ................................ 3 3 Open Space and Parks ... ................ 310 28 Circulation ......................... ...... 5 5 Marinas ............ .................. 251 23.4 Totat ...................................... 1 100.0 Dwelling Units: 2,000 Marina Slips: Transient Permanent Public ........ .......................... 50 0 Private ...................... __ .......... 0 5W Parking Spaces: Residential: I space per dwelling unit Commercial: 11 space per 1,000 square feet of gross, leasable area Hotel: 1 (500 rooms) Restaurants: 7 (800-3000,sq. ft.) Economic Information: Site Acquisition: 58 acres for 2.6 million; 48 acres transferred at no cost Site Improvement Costs: Public: Roads ...................... .............. ...... $2,835,512 Utilities & Drainage ................ ......... .......... 2,062,5(A Bulkheads .............................................. 326,482 Dredge & Fill .......................................... - Planning and Development Total ................................................. @ $5,224,558 Coordinator: Private: Not Available3 Boston Redevelopment Authority I City Hall Square Landscaping CoStS:2 $4,379,380 Boston, Massachusetts 02201 Construction: Approximately $15/sq, ft. (W) 722-4300 137 History Laclede's Landing In 1763 a trading post was established by Pierre Laclede and Auguste Chouteou on the banks of the Mississippi River of what is now St. Louis. Today Laclede's St. Louis, Missour Landing, as the site was named, is the only remaining portion of the street pattern laid out in the original survey Laclede's Landing is a nine-square-block historic for the French village which grew up around the trading urban redevelopment area located in St. Louis on the post. The grid system shown in the 1780 survey by Missippi riverfronf. Once a light manufacturing and Chouteau was similar to the town plan of New Orleans; warehousing area, the Landing's uses for over 150 years that is, it contains regular rectangular blocks woven had declined. Now, after many years of disuse, together by relatively narrow, 32-foot streets, with the Laclede's Landing is emerging as a significant mixed- only large open space located at the center. The focus use district with office, retail, entertainment, and residen- towards the river was obvious in that this town plot tial uses. extended for 19 blocks along the wafer's edge but only For many years Laclede's Landing has been recog- three blocks inland. nized as an important area in the city of St. Louis. Its By the time of the Louisiana Purchase, the St. Louis location, heritage, urban form, and architecture offered waterfront was dotted with adaptive French colonial the opportunity to create a truely unique and exciting buildings of vertical timbers constructed without founda- environment. The challenge was to formulate a develop- tions, buildings of frame construction on heavy founda- ment method or framework that would stimulate reinvest- tions, and the more elaborate buildings of native ment into the area for different uses, This challenge has limestone masonry. During these early days of settlement, been successfully met and the revitalization of Laclede's property owners surrounded their property with eight-foot Landing provides an example for other North American walls to defend themselves as well as restrain their cities to follow. livestock. ff i5 5-27 Laclede's Landing, located between the two bridges, is a prominent feature of the St, Louis waterfront. 138 The signing of the Louisiana Purchase in 1803 brought the cultural influence of Anglo-Americans to the area, Streets were renamed, and brick replaced earlier building materials. Although growth in the frontier town proceeded slowly, the self-contained homesteads of the Landing area gradually were replaced by hotel and Just as the arrival of the railroads significantly altered commercial operations. By 1819 the Missouri Hotel was the city's economic and physical relationship with the thriving at the comer of First and Morgan, and many river, the introduction of motor vehicles also had a maj .or other hotels and inns were opened in adjacent blocks. impact. Streets already too narrow and congested with Steamboats, introduced in St. Louis in 1817, provided streetcars and wagons were reconstructed to accommo- regular service linking the Mississippi Valley to the Ohio date more traffic, Broadway, which parallels the river for River system, New wharves and warehouse facilities 20 miles, began to develop as the city's main sprang up along the river both above and below the thoroughfare. "A Plan for the Central River Front; St. Louis" original French village. It was not too long before was prepared in 1928 and reflects the impact of motor steamboats brought the first major influx of European vehicles on the city's physical form. The document immigrants and the frontier trading post was transformed describes the need to demolish the riverfronf plaza and into a cosmopolitan commercial center of national build a parking garage in its place. While recommend- significance. ing driveways, street improvements, and parking facili- In 1849 a fire destroyed much of the riverfronf. ties, the 1928 plan made passing reference to the However, prefabricated iron fronts for buildings, iron Iragged condition" of the structures from Third Street to structural members, shutters and ornamental details (all the river manufactured in St. Louis) made recovery possible, By the mid sixties it was painfully obvious that virtually overnight. The architectural iron industry was an Laclede's Landing was being abandoned for more important factor in the growing commercial prestige of efficient and accessible facilities in other metropolitan St. Louis; new iron foundries opened as some of the old locations. Concerned about this, the city plan commis- French families turned their investments from the fur trade sion evaluated conditions in the Landing and found that to iron mining acquisitions. it would qualify for designation under Chapter 353 of the In the late 1800s, the developing railroad delivered a Missouri Urban Redevelopment Law. This low has two serious blow to the economic viability'of Laclede's important features: it allows a developer relief from Landing, while in general spelling prosperity for St. Louis. property taxes (on a scheduled basis over a 25-year The Landing was compact and perfectly situated for the period) for investing in a high risk, designated redevel- days of the steamboat but could not meet the spatial opment area, and, secondly, it provides for the use of requirements of railway facilities. Furthermore, the com- limited eminent domain by a redevelopment corpora- pletion of the Eads Bridge in 1874, the first bridge tion approved by the board of aldermen of the city. spanning the Mississippi at St. Louis, stimulated expan- Laclede's Landing was recommended for designation sion of newer industrial and warehouse facilities near the under this law by the plan commission and approved by old Union Station at 12th Street. the board of aldermen in 1966. Thus, the city lost much of its attachment to the The law encourages the authorized planning agency riverfronf. The decline was gradual but significant, and in of St. Lodis to review a variety of plans before selecting the 1890s Pierre Chouteau first suggested that the a specific development proposal. In this respect, two riverfronf should be reused as a memorial or recreational different development concepts for Laclede's Landing use. He recommended reconstructing the original French were submitted in 1968, One concept emphasized a village. mixture of new construction combined with the rehabili- Other proposals followed Choufeau's. Until the 1930s, tation of some buildings, and the other proposal called however, most of the ideas and plans were nothing for the complete demolition of all the buildings and the more than elaborate dreams with little relevance to the construcfion of a totally new environment. After a year characteristics of the wafer's edge. The designer for the and a half, the board of aldermen decided against the Louisiana Exposition, E.L. Masqueray, suggested fountains recommendation of the plan commission and selected and monuments. In the 1930s Louis LeBeaume proposed the concept utilizing this mixture of new construction and a Jefferson Memorial be erected on the waterfront, This rehabilitation. The delays in the selection process were come about in 1935 when the city decided to go very costly however, particularly given the economic ahead with plans for the Jefferson National Expansion conditions prevailing at that time. As a result, the project Memorial which become Eero Saarinen's famous arch did not materialize and the city of St. Louis terminated 30 years later the redevelopment contract with the developers in 1972. 139 architect and an attorney, and formed the Laclede's Landing Redevelopment Corporation. A development plan was prepared and submitted to the Community Development Agency in July 1975. A public hearing was held and then in September of that same year the plan was approved by the agency Development Process and passed along to the board of aldermen. In late November, the board approved the plan and a month By 1974, the Landing was 75 percent vacant, popu- later the mayor of St. Louis signed the d 'evelopment lated by only a few small companies. With the memory contract with the Laclede's Landing Redevelopment of the recent failure to implement a redevelopment plan Corporation, thereby,designating it as the official fresh in people's minds, the challenge was to formulate developer of the area. I I a development method or framework that would The development plan was and continues to be the successfully stimulate reinvestment into the Landing. guiding force on which all the reinvestment in Laclede's In late November 1974, a group of businessmen, Landing has been based, In addition to emphasizing the property owners in the Landing, and government ability of the corporation to grant property tax relief to officials met to discuss how the Landing could be individual property owners, and clearly stating the redeveloped. After a few meetings it was decided that intention to mix rehabilitation with new construction, the a corporation ownership was preferable to single development plan has other important elements. It ownership. A corporation would be formed under established categories for the existing buildings in the Chapter 353 of the Urban Redevelopment Low of the Landing, indicating whether each building would re- state of Missouri and obtain the right to administer fh6 main, possibly be removed, or definitely be removed. law from the city of St, Louis by submitting a redevelop- The plan evaluated each block of the area and ment plan for the area. The stock of the redevelopment specified the intensity and type of uses allowable- on a corporation would be half owned by property owners block-by-block basis. If spelled out the commitment by and half owned by members of the business, financial, the city of St. Louis to spend approximately $1 million for and institutional community such improvements as new lighting, a new street, After agreeing that this "umbrella corporation" con- landscaping, curbing, and so forth. Furthermore, the cept was a realistic alternative to the traditional single development plan outlined a strategy for pedestrian ownership concept, the group met with more property and vehicular movement within the Landing, to be owners and civic interest organizations, selected an implemented on a phased basis over a period of five years. The plan stated that vehicular parking for the Landing would be located on the perimeter of the area with new construction required to contain some parking space for its proposed uses. And finally, the develop- ment plan outlined how the Redevelopment Corporation would receive its income. Soon after the Redevelopment Corporcifion was designated as the official developer of Laclede's Landing, the corporation created two other vitally important documents that are still instrumental in its development activities. The first document is the Parcel . . . . . . Development Agreement-an agreement between the e,@: MM property owner and the Laclede's Landing Redevelop- ment Corporation setting the terms and conditions under which the property owner con proceed with plans to develop Landing property. It allows the Redevelopment Corporation to provide planning and analysis for any given parcel. The property owners must submit develop- ment plans, architectural specifications, and a financial strategy for their parcel to the Redevelopment Corpora- tion for review and approval. Once the plans are approved, a contract is signed permitting the property owners to receive a fax abatement for 25 years. Thus, the agreement provides the stability permanent lenders and investors are looking for while maintaining the flexibility necessary to accommodate changes dictated by various development factors. The second important document is the "Urban Design N@ Guidelines." Prepared by Hellmuth, Obata & Kos sabaum, Inc., the document expands upon and refines 5-28 At the time redevelopment was initiated, much of the Landing was vacant and deteriorated. 140 the Laclede's Landing Development Plan. The "Urban Design Guidelines" were formulated to: (1) assist the Laclede's Landing Redevelopment Corporation in defer- mining policy for a wide range of environmental design issues, (2) provide developers and architects with preliminary design criteria to avoid duplication and lower fronf-end costs, and (3) assist the Redevelopment Corporation and agencies of the city of St. Louis in the development of standards for the design and mainte- nonce of capital improvements. The "Urban Design Guidelines" successfully address exterior and inferior design issues which affect the Landing. With respect to exterior issues the document proposes ways to establish an overall Landing identity. Treatment of the edges is given emphasis, specifically relating to entrances, vehicular and pedestrian access, signage, landscaping, and land use relationships. Regarding interior issues the document outlines recom- menclations for maintaining consistency of design with out imposing rigid controls. Design of all development components is considered, including building scale and use, views, traffic circulation, open space, parking lots, signage, and building facades. Goals are identified on a block-by-block basis so that specific objectives related to land use and infill 5-29 To ensure that new infill development would be compatible with development can be implemented. Particular emphasis the historic character of the Landing, guidelines were implemented, is placed on streetscape elements with design guide- lines for street paving, curbs, crosswalks, sidewalks, lighting, landscaping, and furniture. tion of 45 buildings containing one million square feet .The "Urban Design Guidelines" provide a comprehen- and another one million square feet of new construction. sive package for preservation development, including It is a mixed-use project composed of office, residential, planning and design criteria and recommendations for entertainment, retail, and hotel uses. The rehabilitated phased development and implementation. The docu- space is allocated as follows: office (700,000 sq.ft.), ment also calls for an environmentally sensitive blend of retail (100,000 sq,ft,), and entertainment (100,000 sq.ft.). new infill development with the historic character of the The newly constructed space will contain hotel (900,000 Landing. New construction projects will be important for sq.ft.) and residential (100,000 sq.ff.) uses. the Landing's long-term viability, and the document is In August 1976, Laclede's Landing was placed on the flexible enough to provide for new development National Register of Historic Places, making federal compatible with the Landing's historic character. grants available to the developers. In addition, under The Guidelines document provides a flexible frame- the Economic Recovery Tax Act of 1981, the developers work which encourages diversity. Individual developers can obtain accelerated depreciation for projects that are able to make changes to buildings to fit their various include the rehabilitation of significant historic buildings. fenants'needs but changes or additions incompatible' By the end of 1978, three years after the approval of' with the Landing's overall character are prevented. This the development plan, public and private investment flexible framework avoids rigid controls which can sfifle was beginning to show in the form of a cast iron lighting creativity and individuality In practical terms the system, cobblestone street renovation, new curbing, document offers design standards for an area where as landscaping (public), and brick paved sidewalks (pri- many as 15 different architectural firms are involved in a vote). Approximately $16 million of private money was diversified range of projects. Stability, which is essential invested in major rehabilitation projects throughout the to the long-term success of the redevelopment of Landing by the end of 1978, and over $25 million by the Laclede's Landing, is thus guaranteed. end of 1979. At this time, over $38 million has been committed by Proposed Development investors to acquire and rehabilitate 30 buildings. This means that of the one million square feet to be Armed with all of the appropriate management rehabilitated, over 600,000 square feet has been instruments--development plan, design guidelines, par- financed and 500,000 square feet has been leased, cel development agreement, absorption studies, and including over 400,000 square feet of office space. project model-fhe Laclede's Landing Redevelopment Furthermore, other uses such as residential, retail, and :4@ Corporation is now in the sixth year of the development institutional are now being introduced info the Landing. program. The development plan calls for the rehabilifa- The public areas have been completely rebuilt and 141 weight considerations, cost, and ability to modify the castings in the field. This solution worked to the satisfaction of everyone involved in the project. landscaped. These improvements include a lighting The Witte Hardware Building was totally renovated at system, brick sidewalks, new signage, waste containers, a cost of approximately $3 million. The structure was intersections, rebuilt alleys, benches, and plant materials, built in 1905 and used solely as a warehouse until The first building to undergo major restoration was the abandoned in 1978. The six-story building's outstanding Raeder Building which was constructed in 1874 for the feature is its structural system -a network of 16-inch Christian Peper Tobacco Company. Design by (and square posts. The posts have massive cast iron caps that renamed for) Frederick William Raeder, the six-story hold in place 12-foof by 20-foot beams. To the project structure contains the finest surviving cast iron facade in architects, the matrix of beams and posts permitted the city. Completion of the Raeder Place project was of creation of three-on-a-side modules for offices. The key importance in that it demonstrated the economic building's center was replaced by a skylighted atrium. and community benefits of restoration and rehabilitation The center cut is terraced outward at one end of the in an inner-city -context, The project was a commercial building with planters giving the appearance of a success as well as an aesthetic one. The first phase of hillside. The atrium houses two elevators, one having a occupancy took place in mid-1977 and the structure's glass wall, and a major restaurant occupies part of the 65,000 square feet of office space and 20,000 square ground floor. feet of commercial space are now 100 percent Before rehabilitation, the Witte Building contained occupied. 85,000 square feet of unused warehouse space. Now it Although the $3.3 million renovation was certainly contains 62,000 square feet of space-40,000 for offices, successful, it was not an easy task. The most challenging 11,000 for a restaurant, and 11,000 for shops. part of the project was the restoration of the building's Among the larger owner/developers in the Landing is cast iron facade which was completed after three years the Bisfate Development Agency, which operates the of research. At the beginning of the project, much of the city's transit system. In 1977 the company purchased rich ornamental defail of the cast iron had either fallen another Christian Peper Tobacco Company building off the building and was missing or was badly adjacent to Raeder Place for its corporate offices. deteriorated.'In many cases there was not an existing Several innovative features have been incorporated into ornament on which to base replacements, and original the Bistate Building to counteract the difficulties involved drawings of the facade had to be used for this purpose. in transforming a 19th century warehouse info 20fh Full-size pattern drawings were made, sculpted in wood, century offices. One of the important factors in office made into molds, and then final castings were made. design is acoustic control, and the building materials After extensive research, the developers decided not to used in older structures are generally hard surfaces that use cast iron as a replacement material. Instead they fend to scatter sound. To alleviate this problem and chose high-density closed-cell polyureth,ane because of retain the original building material, the project architect MIA"N LUTHEI KING 8- LA CB25 r] -GAN AVE. mose" KK- I.CE $rKM Ammi E 7 AA -A. 5 M I--- .0TE1 K.", .-I- .............. CLI-E.1 I.- CB 6 5-30 Laclede's Landing redevelopment plan, 142 for the Bistate Building decided to sandblast and clean the wooden floor joists and place acoustical material within the joist spaces up against the decking. The joists are very handsome but what is more visually interesting is the rhythm of the joists and the fact that they occur continuously in sequence. The result is a pleasing W aesthetic design that is responsive to the programmatic demands of the building. Besides a commitment to historic preservation, the need for additional office space, or the recognition of long-term profit potential, another common cause drawing investors to the Landing is the loyalty of many IJ residents to the city's long-neglected riverfront. The Hoffman Partnership, a locally owned and managed firm, is a good example. The firm became involved in H; the Landing fairly early in its redevelopment and A_ continues to make contributions to its ongoing success. In the spring of 1977 the firm purchased what is known as the Old Judge Coffee Building on North Second Street. After extensive building renovation, the firm 5-31 Facade restoration was one of the most challenging aspects of moved into its new offices in September 1978, occupy- redeveloping the oldest buildings in the Landing, ing 10,000 square feet of the 50,000-square-foot structure. The firm also owns the adjacent corner building and is acting as the architect for another addition to the parcels are on the edge of the Landing. The hotels will Landing-the area's first housing in over 140 years. be the only new structures that do not conform to the Developed by the Lipfon-Deutsch Partnership, two sfruc- existing building scale of the area. It is felt, however, that tures at the corner of North First and Lucus Streets will by building these somewhat massive structures along the become luxury condominiums known as River House. borders of the Landing they will not detract from the The Cast Iron Partnership buildings located along historic character of the area, block visual access to the Second Street have been completely renovated, A bank river, or generally be inappropriate for the Landing. At occupies 4,000 square feet of ground floor space along this time all of the preclevelopment agreements are in with a 7,000-square-foot restaurant. The project contains place but the projects are being delayed by the lack of 12,000 square feet of office space and was developed long-term financing arrangements. The two hotel devel- at a cost of approximately $1.2 million. opments will involve investment of over $130 million. At the corner of Second and Morgan Streets, a In addition to these key projects, several other notable building with a particularly interesting cast iron facade developments have taken place in Laclede's Landing. has been renovated and redesigned to provide 10,000 The Muddy Waters Building, located at the corner of First square feet of space for office and restaurant uses. The and Morgan, was completely renovated and is now redevelopment cost was about $300,000. A couple used for restaurant and office purposes. Likewise, the blocks away from this project on North Third Street the Old Fischer-Berry Machine Building was rehabilitated Old Levee House has been put through a similar and now has a restaurant in the basement, an ice redevelopment process. Built in 1906 at a cost of cream parlour and a general store on the ground floor, $34,000, the Levee House contains 35,000 square feet of and office space taking up the top floor. leasable space providing for a restaurant and offices. Apart from the aesthetic and historical considerations, The total project renovation cost was close to $2 million. rehabilitation costs 50 to 80 percent of what razing, Associated with this project was the development of a clearing, and erecting a new building would cost, For small park adjacent to the building. The park provides a tenants this translates into annual rentals of about $1 less pleasant outdoor area for office workers and shoppers in per square foot than new space elsewhere in the St. the Landing. Louis area. The Belle Angeline Riverboat Restaurant, moored In order to alleviate parking problems (no on-street along the Levee in front of Laclede's Landing, has been parking is permitted in the Landing), a seven-level, 240- successfully operating for over three years. Actually a car facility was constructed in 1979 and is located replica of a turn-of-the-century riverboat built on a between Wharf Street and First Street. Additional parking barge, the restaurant offers a unique riverside dining is located on a surface lot occupying one full block, experience. and three other large parking lots with 3,000 spaces are Negotiations have been underway for several months on the perimeter of the Landing. between two major hotel operators and the Laclede's In Laclede's Landing, the pedestrian is given first Landing Redevelopment Corporation regarding the priority. Alleys have been converted to street uses; auto development of two major facilities in the Landing. The and truck congestion is eliminated, the First-Second location of the two hotels is targeted for parcel CB25 Street block having become a pedestrian-orienfed and parcel C1366. As shown in Figure 5-30, these two super block." 143 as in a shopping mall. Thus, at the Landing the task will be to create a kind of Main Street for retail storefronts. Toward that end the Laclede's Landing Redevelop- menf Corporation amended the Parcel Development Agreement in 1980 to include a minimal assessment of construction costs to fund a sales and promotion office which deals exclusively with retail tenant mix, location, and the goal of attracting and maintaining top-quality merchants. The Redevelopment Corporation recognized the need for an association to promote and market retail space not only to attract tenants, but also to maintain the viability of businesses once they are A established in the Landing. The board of directors of this nonprofit office is comprised of six people, two directors of Class A membership (priority owners), two directors of Class B membership (commercial tenants), and two directors of Class C membership (Laclede's Landing 5-32 The Redevelopment Corporation focused initially on basic site Redevelopment Corporation representatives), each hav- improvements to encourage office development, resfauranfs, and ing a term of two years. Annual assessments regulated entertainment establishments. by the Parcel Development Agreement are based on $.50 per square foot for restaurants and entertainment Entries to the Landing have been upgraded. The tenants, and $.25 per square foot for retail tenants. The Wharf Street railroad trestle is to be made more retail development. concept is to add incrementally to attractive and there will be a new entry street on the Laclede's Landing a growing number of retail establish- Landings' northern edge. The new sidewalks are red ments, including the restaurants to serve the full comple- brick, laid in basket weave pattern, and they enhance ment of daytime office workers that now exceeds 1,000. the 19th century atmosphere, as do the electrified gas In time this number will reach over 2,000 as well as lamps. Asphalt has been stripped from the streets to attract shoppers from throughout the metropolitan area. reveal the original heavy granite cobblestones. The attention to detail in the Laclede's Landing Experience Gained Development Plan is nowhere more evident than in provisions for landscaping. Street tree types are liftleleaf A project of the scale and complexity of Laclede's linden, London planefree, and red maple. Flowering Landing offers several important and valuable lessons for frees include carmine, redbud, and Japanese crabap- others contemplating waterfront development projects. ple. In all, the city has planted 200 trees in the Landing. One of the most important aspects contributing to the Evergreen groundcover includes ivy, euonymus, and success of the proje@t was, and continues to be, the pachysandra. For seasonal punctuation there are tulips, multi-ownership and participatory element of the Rede- daffodils, and pansies in the spring, petunias and velopment Corporation. Many of the usual obstacles to marigolds in summer, and chrysanthemums in the fall, the redevelopment process were either avoided or This strong emphasis on landscaping-particularly the removed by simply having an institutional and organiza- diversity of plant maferial&--is critically important be- tional framework that could identify and deal with urban cause of the existing building density and predomi- redevelopment issues. nance of hard surfaces. The bountiful use of vegetation Another key to the project's success was the develop- helps to soften the edges and provide spatial definition. ment strategy of incremental improvements that: (1) Thus, a chain of spaces varying in dimension and use corresponds to the Redevelopment Corporation's and combine to create a visually interesting and pleasing property owners' ability to implement and manage it; project environment. Furthermore, the seasonal variation and (2) allows each effort to stimulate the next effort in provided by the vegetation reinforces the dynamic the development process. Incremental improvements qualities of the project's urban context; that is, every visit were also carefully staged so that the public sector to Laclede's Landing will be marked by a slightly improvements immediately preceded private sector different sensory experience. development. This careful staging of activities assured With the office-based foundation in place and the attainment of development goals in an area supplemented by various entertainment establishments previously marked by failures. and with plans moving forward for residential and hotel The entire redevelopment program was built upon a development, the next challenge is to bring a full range strong foundation composed of: (1) a comprehensive of retail tenants info Laclede's Landing. The challenge development plan responsive to change, (2) a redevel- lies in the fact that in its present form the Landing does opmenf corporation making a sincere effort to interrelate not provide the most conducive environment for success- with all facets of the community, and (3) the legal ful retail development. As most any retail developer instruments necessary to implement and maintain the knows, shops work best when they are on the pathway, plans and concepts of the projects. These three 144 elements in concert provided the basic framework for orchestrating a redevelopment effort of the magnitude of Laclede's Landing, and each element would not have been as useful without the other two. It should be noted that many of the public streetscape improvements were financed by the adjacent property owners. For instance, sidewalks, planters, sandwich hotel development, and retail development in an boards, awnings, and other streetside improvements obviously overlapping way The 750,000 square feet of have been provided to supplement the benches and office space provided stability and credibility to the waste receptacles installed by the city. The city's Landing. Meanwhile, the entertainment establishments investment thus for amounts to less than $1 million as attracted people to the area and created a positive compared to $ 30 million of private development identity for the Landing. Nevertheless, the hotel, retail, investment. and residential uses-particularly the retail-are more One of the issues that was critically important from the difficult to integrate within the building envelope of outset of the project was parking. A special effort was massive warehouse structures. Thus, special care has made to always provide enough parking for every stage been taken to identify potential retail space and make of development within the Landing. To meet this it as attractive and potentially viable as possible. objective the Redevelopment Corporation not only Providing block-to-block access through buildings, worked closely with developers within the Landing but opening windows to the ground, opening basements to also secured adequate parking adjacent to the Landing the first floor and allowing street exposure, converting through lease arrangements that guaranteed parking for alleys into retail storefronts, and developing internal the life of the project. arcades were a few of the physical design strategies to Within the context of a mixed-use development such create a strong retail setting. The hotel and residential as Laclede's Landing that is implemented over a long development has been confined almost exclusively to time period-, the timing and intensity of each use new construction projects. becomes extremely important. In other words, a con- Another important consideration was climate and the scious decision must be made regarding the sequence seasonal variations found in St. Louis. For example, of development projects in terms of use and activity. In during winter it can be extremely cold one week and this case, the Redevelopment Corporation focused very balmy the next. Summers are very hot and humid. In initially on basic site improvements to encourage office developing Laclede's Landing, designs were reviewed development, restaurants, and entertainment establish- with an eye towards neutralizing the extreme weather ments. This was followed by residential development, conditions. 5-33 Project Data-Laclede's Landing Land Use Information: Dwelling Units: Gross Buildable Area: 2 million sq. ft. 52 (1200 sq. ft.-4,000 sq. ft.) Land Use6PIan: Parking Spaces: Sq. Ft. Percent Residential: 62 Rehabilitation New Rehabilitation New Commercial: 4,000 Residential ........ 50,000 100,000 2.5 5 Hotels: Commercial ....... 250,000 - 12.5 - 2 (875 rooms) Office ............ 700,000 - 35.0 - Restaurants: Hotels ............. - 900,000 45 16 (2,000 sq. ft.-12,000 sq. ft.) Total ........... I ... 11,000,000 1,000,000 50% 50% Economic Information: Site Development Costs: To Date Projected Total Public ................... $ 900,000 S 700,000 $ 1,600,000 Private ................... 45,000,000 1155,000,000 200,000,000 Total .................... $45,900,000 $155,700,000 $201,600,000 Development Coordinator: Coordinating Planners and Architects: Laclede's Landing Redevelopment Corporation Hellmuth, Obatm. & Kassabourn, Inc. 707 North Second Street 100 North Broadway St. Louis, Missouri 63102 St. Louis, Missouri 63102 (314) 241-58W (314) 421-2000 145 Baltimore's Inner Harbor is a combination of indepen- dently conceived attractions bonded by the waterfront and common pedestrian circulation, First, open spaces Inner Harbor, were created as deteriorated waterfront structures were removed. In the earlier 1970s office building develop- menf cautiously ventured into the Inner Harbor, and in Baltimore, 1976 the Maryland Science Center opened. Soon afterwards came its keys to national recognition-a Maryland' convention center, the Rouse Company's Harborplace, an aquarium, and a Hyatt hotel. By 11981, the Inner Begun in the early 1960s, the redevelopment of 250 Harbor area was firmly established as a strong waterfront acres of waterfront in downtown Baltimore from out- market for all types of urban development. moded industrial use to a popular multiuse center represents a wealth of experience in urban waterfront History development. While Baltimore was blessed with a very attractive physical setting because of its Inner Harbor The Inner Harbor is where Baltimore started in 1729. area, the success of its transformation is directly linked to Since that time the port, like the city, has grown outward an effective civic commitment to create a strong but from its original all-purpose piers in the Inner Harbor to flexible plan and tangible development programs, include 42 miles of industrial shoreline with specialized implemented by a specialized management team, No facilities. As expansion took place, the original piers and precise land use scheme was imposed from the start. warehouses which had been privately developed by Instead, the Inner Harbor evolved in increments that merchants slowly become obsolete, responded to specific development opportunities as In 1904 a great fire levelled Baltimore's downtown they appeared and were found responsive to the overall financial district and the wholesaling and dock areas. It city goals for the area. was immediately rebuilt but with only modest changes- a few streets were widened and docks rearranged. After Much of this text is taken from "A MXD Takes Off: Baltimore's Inner World War I the Inner Harbor gradually become Harbor," published in Urban Land (March 1982) and compiled by dormant because of its failure to change. Yet the Inner Joseph D. Steller, Jr. Harbor remained a priceless asset, providing a pathway W_ C 9D 0 Ilk 5-34 Aerial view of Baltimore's redeveloped Inner Harbor. 146 from the sea leading right up to the doorstep of downtown. In 1959 this asset was considered ready for develop- menf when the city and the business community began their initial downtown redevelopment effort with Charles Center, a 33-acre, $200 million mixed-use project in the center of the business district. By 1964, Charles Center was far from finished but enough momentum had been created to convince the public and private partners that they were ready to expand their redevelopment efforts to include the declined 250-acre Inner Harbor area adjacent to Charles Center and surrounding the old S harbor basin. At that time the Inner Harbor was noted for little more than rundown wharves, wholesale produce markets, warehouses, railroad yards, and foul water The view was compounded by a negative image of downtown Baltimore in general. Nevertheless, the Inner Harbor still had a number of things going for it. The open wafer was very close to downtown, within two blocks of the city center, and right next to Charles Center Physical barriers to pedestrian access to the wafer existed in the form of roadways, but this could easily be reduced and there was little competing demand for the already underused land. What the city had to do was recognize that its 7" major amenity and potential was right there in the Inner 5-35 The Inner Harbor in 1968 was dominated by nindown wharves, Harbor The site's proximity and tight shape, comprised of markets, warehouses, and roadways. shoreline on three sides, made the Inner Harbor area ideally suifed to establishing a strong fresh identity and shape. Ten years later the municipal mall was aban- sense of activity. doned and, instead, the restoring and recycling of the handsome old buildings of the financial district became City Redevelopment Plan viable, led by the award-winning restoration of City Hall itself. In 1964, a 30-year program was unveiled for redevel- opment of this huge area. Stretching to the south and Charles Center-inner Harbor east of Charles Center, the city envisioned new Management Corporation residential, social, and cultural facilities as well as major hotel and office buildings. The master plan was tied into Responsibility for the Inner Harbor project was as- a general redevelopment scheme that encompassed signed in 1965 to a private, nonprofit corporation with a four basic goals: 'R@ � A reconstruction of the Municipal Center. The plan proven recor in managing Charles Center, the Charles 6 Cenfer-Inner Harbor Management, Inc.. If is a working called for new and rehabilitated government buildings public-private partnership connecting city government, to line a stately mall 150 feet wide linking City Hall with the city's business leadership, and a third partner, the the Inner Harbor This'investment of public funds was developer, the last of whom usually changes from expected to stimulate private investment in the other project to project. Beginning in 1959, the partnership has uses called for by the plan. evolved through three phases. � Offices to be built as an extension of Charles Center Phase one was to collaborate on a master plan that southward to the Inner Harbor would express the joint objectives of the city of Baltimore � Residential development with a broad spectrum of and the business community. In order for this to be costs in high-rise and low-rise buildings, bracketing the possible-to reach a consensus on objectives--the harbor to the east and west. business community had organized itself around four � A regional "playground" comprised of recreation, principles: cultural, and entertainment facilities centering on the e There should be only one business group representing piers and around the shoreline of the basin itself all others in dealing with the problem of community Even before redevelopment was started, however, the development in the downtown area. Municipal Center was shelved. In the 1964 election, * Before asking for commitment by the public to a Baltimore voters turned down $4.5 million in loans for the master plan, the business community should develop a new government buildings. As it turned out, the Inner detailed plan for a project, giving the public and Harbor did not need priming as the other components of private sectors a strategy for action, something they the city's original redevelopment plan gradually took could begin to make happen right away. 147 This system has been effective for 20 years with very little change. Even the coporafion's budget has been stable, at $850,000 more or less for 1978-1982. The corporation has worked for six different mayors of both � The first project should be big enough to make a political parties without suffering any taint of political difference in the city's economy but small enough to favoritism or any slackening of priorities at city hall. be achievable in a reasonable period of time. By the end of the 1970s, Charles Center-Inner Harbor � This project should be couched in a master planning Management, Inc. had entered phase three of the context: it should be part of a large scheme whose public/private partnership: the "deal-making" phase. In effect has been thought out and whose results can be the early years it was assumed that after the public and cumulative. private sectors had established mutually acceptable Charles Center was this first project. If covered 14 city planning objectives, they would then retreat to opposite sides of the table for arms-lengfh negotiations during the blocks, or 33 acres, in the center of downtown. The project execution phase. As it turned out,.this was no timetable was 10 years, the total of public and private longer possible. In many cases, the third partner-the investment valued close to $200 million. developer-was no longer able to finance major new Baltimore businessmen had raised the money to pay construction in downtown areas, and in particular for the Charles Center-Inner Harbor area plan. With the waterfronts, by relying solely on the mechanisms of the plan accepted, the public/private partnership moved private sector. Instead, the city found advantages in into phase two. This involved the creation of the "delivery becoming joint venture partners with developers, using system"-a nonprofit, privale development corporation new techniques to create something that works for both sponsored by the city. At first, it consisted of a small sectors. In the case of the Inner Harbor, these public team of executives who carried out the Charles Center inducements include: land leases which help save project. Later, they formally chartered Charles Center- projects substantial up-front cash requirements; subordi- Inner Harbor Management, Inc., a nonprofit, no-stock noted ground rents which help make proposals more corporation which entered into a contract with the city attractive to mortgage holding institutions; public im- to manage the Inner Harbor plan. provements off-site and on-site; and flexible financing for The corporation is an entity which maintains the closing the "gap" between the developer's equity and flexibility of a private business, while the city-which mortgage and the actual total project costs. Unlike other provides the corporation's operating funds--refains com- cities, Baltimore does not use tax concessions, except for plete control over policy, and therefore maintains its off-street parking facilities. responsibility for the use of public powers. In other words, With the city acting like a private business, the private the corporation, as an arm of the city, makes it possible partner has to be prepared to protect the public interest for the city to act like a business when that is the only by opening its books, sharing any windfall profits with way to get the job done. The corporation has four the public sector, and generally working to achieve the primary functions: standards and objectives of the community. � To coordinate all things that the various city agencies must do vis-a-vis the Inner Harbor area. This takes the burden off the shoulders of developers and involves The Influence of the Office seeing that the public sector delivers its hardware and Market turns its plans into binding commitments in accor- dance with the development timetable. A main impetus behind the private sector's decision to � To supervise the design of public improvements; to act invest in the Inner Harbor area was the potential for as the client, or owner, on the city's part, so developers office development. From the momentum created in can identify and deal with another single, owner-fype Charles Center, the office building phase of the city entity in coordinating the design and construction of development program has had a very positive effect on the environment, or adjacent projects. weekday activity in the Inner Harbor area. Between 1973 � To recruit developers who can and will produce the and 1980, five office buildings totalling 1,650,000 square projects called for by the plan and to negotiate feet of space plus a new federal courthouse and office agreements with them which spell out the obligations building were developed. Without this office growth, of both the developer and the city. there would not have been sufficient critical mass to � To act as a catalyst for making things happen. For encourage the overall rejuvenation of the harbor area. instance, if the developer has an idea that is contrary The linkage of Baltimore's primary office market to the to the city's plan and the corporation agrees that he is Inner Harbor really came as a second step in the right, it can represent him in dealing with the city. The Charles Center and Inner Harbor development. With the city can take the corporation's advice since it is natural draw to the water, second-level walkways nonprofit and, therefore, objective. Hence the term traversing all major automobile arteries became an "delivery system," important link in creating an efficient flow between the 148 Harbor area and the growing business district. Height restrictions on buildings close to the Harbor have enabled a far greater number of people to share the Harbor environment than would have been possible 41!li otherwise. In a nutshell, the linkage to the shoreline has been monitored very carefully and produced in the Inner Harbor area a catalyst for surrounding develop- ment. Baltimore's dramatic developments have the kind of successes that create the perception of a high quality lifestyle, which employers recognize as an important element in their locational decision. A fine example is the case of RTKL, the architectural firm, who chose to 3@ move its entire -operation to a new building in the Inner Harbor in 1982. A decision by WC. Pinkard & Co. might provide a further perspective on one company's dollar valuation of the Inner Harbor location, The company selected the World Trade Center, located on the water's 5-36 View of the Inner Harbor as it existed in 1973. Ample space was edge, over another new project within four blocks, available for outdoor festivals and recreational uses. based entirely on its ability to attract and maintain employees and business in that location, The economic project in 1972. It is a large sculptural element differential was close to $1 million over the initial lease symbolizing the history of the city and the romance of term. the port and commerce on the high seas, currently undergoing extensive renovation. Redevelopment of Harbor Begins With public investment pushing $50 million on the With the approval of a 30-year redevelopment plan, shoreline alone, the city was not willing to sit back and the expansion of the Charles Center Management wait for the people to come. Therefore, an aggressive Corporation to include responsibility for the Inner Harbor, program of activities and free entertainment was and ant icipated market pressures related to office launched in 1970 with Mayor Donald Schaefer, in his first growth, the actual redevelopment efforts began, In term of office, putting his full support into the effort. It creating the new environment for a projected $230 began with a smorgasbord of do-it-yourself leisure million of private and institutional investment, $55 million pursuits--flea markets, fireboat displays,, antique fire of public funds were spent to acquire, clear, and engine displays, efc-called "Sunny Sundays," which prepare the land for new development. The first stage of were followed by free concerts, boat races, and the redevelopment program was defined to contain parades. The Baltimore City Fair, which drew 1.5 million approximately 95 acres of land along the immediate people to the Inner Harbor over a single weekend after three sides of the harbor basin. The public funds Labor Day, was attracted to the water's edge in 1973. included federal grants amounting to $35 million and Finally, the program hit full stride by 1980: International $17 million in city bond issues approved by the city festivals were put on by a different ethnic neighborhood voters in 1966 and 1982. each weekend for 13 weeks between April and A first critical step in the redevelopment plan was to September. New activities continue to be added, and recapture the wafer as a public amenity by returning all an outdoor fent,for the performing arts was erected in the property around the shoreline to public ownership, 1981. creating a permanent circle of parkland. Starting in While the Inner Harbor was originally intended to be a 1968, the wafer's edge was reconstituted with a heavy- playground for Baltimoreans, if was also hoped that duty bulkhead, or public wharf, and a wide promenade people from the suburbs would come and spend their was built around the harbor basin, connecting a series time and money in the city. This aspiration was given a of public recreation areas to include playing fields, tremendous boost in 1976: when the Tall Ships left their stands for 4,000 spectators, picnic shelter, play sculpture, rendezvous in New York, eight of them came to the Inner and open parks or commons, Minimal landscaping was Harbor for an open house lasting 10 days. Hundreds of done, providing flexible space for a variety of outdoor thousands of people came from the suburbs to this festivals and recreational uses. Four existing structures in event. With this, a threshold of recognition was reached. the immediate Inner Harbor area were preserved: a The regional playground was realizing the hopes of the newspaper building, a spice plant, a church, and an city and the Inner Harbor plan. The attitude of older brick loff building. The U.S. frigate Constellation, Baltimoreans themselves was seen changing from one of the oldest fighting warship of the United States Navy, negative impressions about the downtown environment become the visual focal point of the Inner Harbor to one of greater pride. 149 Convention Center in 1979, with 110,000 square feet of exhibit area and an almost equal amount of meeting and lobby space. Next, chronologically, came Harborplace, a pair of By 1982, more than 25 attractions had been added in two-story market pavilions completed in 1980, the the semicircle of parkland and in the water alongside. keystone of the circle of attractions around the shoreline. The floating attractions included: a marina and piers for Harborplace has transformed the Inner Harbor into a visiting charter and pleasure craft; tour boats for short place that hums with people day and night for 12 fours of the port or longer voyages down the Chesa- months of the year instead of the previous six-month peake Bay; a small boat rental dock with a wafer foxi; season. (See sidebar on page 152.) and a growing outdoor maritime museum which now The next component was the Aquarium, a totally city- includes a skipjack, submarine, lightship, gondola, and a 200-foof 1925 steamer, the Nobska, which has been funded project of $21 million, opened in the summer of refitted as a floating restaurant. Rising above the water 1981, which has been designated by Congress as the on the south side of the Inner Harbor is Federal Hill, one National Aquarium in Baltimore. The city projected of the city's historic landmarks, which is being main- 400,000 to 600,000 visitors a year, but attendance hit tained as a public park and scenic overlook. one million before the end of the first seven months. Residential development, while slow to proceed, by The final component was the Hyatt Regency Baltimore 1982 included 250 luxury townhouses, 487 subsidized Hotel, which opened in October 1981 and cost $40 apartment units for the elderly, and a 220-bed nursing million, including land and garage. home. The city had also sold more than 100 older homes Convention Center for one dollar under an urban homesteading program in the area to owners who agreed to live in and restore Encouraged by its increasingly recognized develop- them in accordance with overall project standards. In ment renaissance and by strong arguments about the conjunction with residential and office construction, potential for substantial convention business, Baltimore 3,335 permanent parking spaces out of 9,670 planned decided to commission a broad-based feasibility study were provided as of 1982 in the Inner Harbor area. of building a convention center in the Inner Harbor area. Of greatest overall significance were four major The resultant reports, made in early 1975, convinced the projects completed between 1977 and 1981 that helped city that a convention center would be a very elevate the Inner Harbor from a regional playground to worthwhile investment and a major addition to the a national tourist destination. First come the $40 million downtown program. A E 20 F_ INN ._D U FF17M AMMIM 5-37 Illustrative site plan of the Inner Harbor: 1, Baltimore Convention Center, 2. Harborplace, 3. Hyatt Hotel, and 4, Aquarium 150 M M*R_ The study's projections made it evident that, because of the tax structure affected by such a facility the great _k %N majority of tax benefits to be derived would accrue to the state rather than the city Accordingly, the city, with the endorsement of the governor, asked the 1976 state legislature to approve a state contribution of $35 million to the estimated $45 to. $50 million total cost of the center In order to obtain these funds, Baltimore's mayor agreed to reimburse the state for the construction bonds, should the city fail to achieve its goals. The 'lightness" of the convention package is a great selling tool in that the hotels, restaurants, shopping, and 5-38 The Baltimore Convention Center was a major addition to the Inner other attractions are within easy walking distance. Harbor area. During 1981-1982, national meetings and local commu- nify activities (i.e. dances, banquets, fund raisers, and Photo credit: ME Warren trade shows) used the center approximately 72 percent 211 MINN. F of the time, but the center drew enough out-of-fown business to become a prime reason for the construction of the new Hyatt Regency Hotel and the renovation of Hills the Hilton Hotel. If is proving to be a major reason that IVATIL M M Li other hotels are in various stages of planning and p i development. As of 1982, Baltimore was still suffering 1, Jr, from a shortage of hotel rooms in order to be IM competitive with more established convention cities elsewhere, oil ON milt Hyatt Regency Hotel XJ In the Baltimore Hyatt deal, the city and the Hyatt owners sat down knowing what each needed and what each wanted. The negotiators only paid passing attention to contracts and proceeded to work out the problems as they arose. Each party knew that the 7 Baltimore market was unproven, and hence Hyatt must build an extraordinary hotel, which was both beautiful 5-39 Development of the Hyatt Regency Hotel was mode possible by an and luxurious and yet very efficient. Hyatt decided to innovative public and private investment strategy start with 500 rooms; anything less would not achieve the corporation's goals or the requirements of the convention Hyatt manages the property under an agreement in hall. which it receives four percent of the gross revenue plus If the complicated financial structure for the Hyatt was an incentive fee in the amount by which 20 percent of examined, one would recognize that there must have the gross operating profit exceeds that amount. The been real faith in each of the parties in the success of gross operating profit is the profit before mortgage the venture. Both the city and Hyatt made substantial requirements, land rent, insurance, foxes, and deprecia- loans subordinate to the first mortgage. Both parties will tion over and above the amounts set aside for repairs, be paid in full and much more, but both will have to maintenance, etc. The incentive fee is subordinate wait. Hyatt expected to close the deal with an during the first 110 years to the first mortgage requirements investment of $1 million but actually has in it about $4 and thereafter to the second mortgage as well. million. The city's investment is much more. The total The land has been leased to Hyatt for $200,000 a year expenditures, other than the land and improvements by during the first 34 years and thereafter, for 20 years at the city, amounted to $40 million: $400,000 a year The profit, after payment of all the * $20 million (10 percent), a first mortgage furnished by loans and advances are divided, is one-third to the Equitable plus about one percent kicker;, hotel and two-thirds to the city There are no fax refunds * $12 million, a second mortgage by the city (mostly or rebates. through UDAG with interest at seven percent); The hotel opened in October 1981 and all of the * $4 million, a garage by the city (payable out of partners in the deal are very enthusiastic about its future. garage income); The Baltimore Hyatt has started under excellent circum- * $1 million, up-front invested by Hyatt; stances and conditions. Both the city and Hyatt believe * $3 million, additional loan by Hyatt at prime plus one that the hotel is consistent with the beauty of its percent. surroundings and that it will be a credit to each partner 151 Harborplace Harborplace is a collection of restaurants and small merchants, two-thirds of them food-oriented, brought Experience Gained together to create a marketplace with its spirit of festival and theater The $20 million project comprises two Several important lessons can be learned from the buildings totalling 249,000 square feet of space, of experiences of the Inner Harbor Development Program. which 142,000 square feet is gross leasable area. The projects, which have gained national attention, are In its first year, Harborplace has had average per the results of a combined public and private sector square foot sales volumes greater than the mature effort that began 20 years ago. 0 'ver the years certain Faneuil Hall Marketplace project in downtown Boston, key aspects of the Inner Harbor contributed to its. the Rouse Company's previous top-producing project. success. Harborplace had 18 million visitors in its first year of A master planwhich was'strongly supported in its operation which ended in July 1981, and sales were well concept and programming but flexible in its implemen- in excess of twice what a typical regional mall tation was-crucial. It provided the.ba .s,is for civic produces. leadership in getting things d6ne,yet was open to The piece of land on which Harborplace sits was not refinement to accommodate development opportunities always the desirable property that it has become. When as, they arose, the Rouse Company made a proposal to the'city in 1977 As a result, Baltimore's Inner Harbor has turned out to regarding the 3,2-acre Harborplace site, the property be an excel lent- example of continuing an urban had remained fallow for over 10 years, awaiting development pattern of different projects interrelating developer interest. While there was growing summertime through use and common space. Separate pieces have activity at the harbor, during the winter very little was been allowed to fit together in increments that in their going on. independent distinction and vitality contribute greatly to After the Rouse Company's proposal, a final invitation the overall diverse character of the area. by the city attracted no other competing proposals. Public-private cooperation was a key to success. The Based on a year of experience in developing and early support of private business and determined operating the highly successful Faneuil Hall Market- municipal commitment to encouraging development place, Route was willing to embark on what at the time was fundamental to the redevelopment of the Inner seemed a tentative venture in Baltimore. The Maryland- Harbor. An active nonprofit development corporation based development company had the benefit of created specifically for this purpose, this partnership has special knowledge of the city. been able to orchestrate city policy and programs to Rouse was attracted to the Inner Harbor because of complement special business needs. four main factors: the amenities of water and open The city of Baltimore backed up its commitment with space, easy access to downtown and the metropolitan direct investment to make things happen. This included region, the availability of parking, and the political and land assemblage and clearing, underwriting walkways financial support of the city in its backing of the Inner and a variety of amenities, providing parking, writing Harbor area. In fact, on this last point the city was so tied down land costs, and ultimately participating in actual to the site that Rouse was unable to wrest ownership development finance. The city also gave constant from Charles Center-inner Harbor Management in the attention to programming activity. For a people-oriented negotiations and had.to be satisfied with a long-term area like the Inner Harbor, this meant regularly schedul- land lease on the property. For rent, the city receives ing crowd generating events such as fairs, water $100,000 unsubordinated ground rent with escalations activities, etc. In the early days these types of temporary over time plus a kicker on the land rent of 25 percent of events were essential to introducing people to the "new" the net cash flow of the project after a 10 percent return Inner Harbor. These functions helped change the to the developer on his cash investment. negative self-image of Baltimore's own citizens towards The Inner Harbor Renewal Plan included a commer- their downtown, which made it possible to change the cial/retail site as early as 1969, but the Rouse proposal attitude of suburbanites and outside visitors as well. required the actual location to be modified. The city Continuing to add a variety of attractions over time agreed to the change, and in February 1978 the has been important in sustaining visibility. By 1982, the Baltimore city council gave final approval to the Inner Harbor was almost two-thirds completed and had Harborplace concept, achieved a critical mass of activity that made further Opposition to the proposal, generated partly out of development only a matter of time. Plans for future fear that Harborplace might become a regional investment include five more hotels, more theme shopping center and draw away business from nearby attractions, a i.2-million-square-foot MXID project, half a local establishments, culminated in a successful petition dozen more office buildings, and the potential for 2,000 for a city referendum. Except for Faneuil Hall Market- residential units. place, people had no model against which to judge 152 Harborplace. The developer produced plans and mod- els, and through a strong communications campaign run by a coalition of citizens, the Harborplace develop- ment was approved in November 1978 by a margin of three to two. A positive consequence of the referendum process was to give Harborplace a very high recognition -A*- woo factor; the public now had a strong image and clearly felt an attachment to the project. Ground breaking commenced in early 1979. Physical preparations by tenants began a year later This rapid and tight schedule led to Harborplace opening on time on July 2,1980. An early summer debut was ideal to attracting crowds and establishing the project's cred ibility. Design The development process for Harborplace was marked by bonds of strong common interest between the city's goals and those of the Rouse Company, Public concerns with respect to design were presented through 5-41 The festival marketplace complements the public amenities offered the active involvement of the Charles Center-Inner by the Inner Harbor, Harbor Management, Baltimore's Department of Housing department to capture the flavor of the wharf buildings and Urban Development,'and a Mayor's Design Advi- which preceded the pavilions at Harborplace, to create sory Group, which was put together specifically for glass facades which allow the lights and activity of the citizen involvement in the design process. The architects pavilion to sparkle at night, to open up the buildings to worked under the direction of the Rouse design the water by day by providing roll-up exterior doors, and to provide the public with a view of the harbor from outdoor but covered porches and terraces. A two-story height limitation imposed by the city puts the roof of the building beneath the bowsprit of the frigate, Constella- f, flon, berthed in front of Harborplace. This was achieved despite the need to raise the first floor 10 feet above the water level (in order to meet flood insurance require- ments) and to locate mechanical equipment in a mezzanine hidden in the roof. A sound relationship between the project and its environment was one of the key goals of the planning I and cle sign effort, The location of the project was designed to be sensitive to the plan for the harbor and to people's strong and legitimate desire to have visual and physical access to the water The project is on the waterfront but is close'to the downtown office district, which allows it to integrate best with the city The market also has a strong connection to the new hotel and convention center through a pedestrian bridge across a W major traffic artery. Harborplace was separated by a 200-foot plaza/amphitheatre into two buildings to re- duce its mass and to preserve a view to the center of the waterfront and the ship, Constelldflon. V__ In form and scale, Harborplace echos the wharf buildings that once occupied the site. Replicas of flags representative of shipping lines fly from the new roofs, The buildings have no front or back, given that the p ect needs to open.up to both the harbor on,one rof side and downtown on the other. "Porticos" spread along each building allow people to see through the structure as well as invite entry. 5-40 Had:>orplace was designed to provide the public visual and physical access to the water's edge. 153 Another tie to the people of Baltimore is the selection of ethnic food which comes from the Italian, Greek, Jewish, and other cultures that form the rich mosaic of this port city. Harborplace was built with an exposed concrete A variety of businesses were encouraged to help frame and lightweight steel frame roof Mechanical create the desired chaotic atmosphere of a market- systems are exposed as well. The outside walls are place. Individual proprietorship is an important factor in predominantly glass while ceramic tile walls and quarry achieving this. Except for large restaurants, each file floors cover the interior open space. The building business seldom occupies more than 500 square feet. interiors were split to permit air conditioning in central A distinctive character was devised for each of the areas and exterior sections that can open to the outside two buildings. The smaller pavilion is reached through a air. Elevators and escalators supplement numerous stairs narrow central corridor that brings people close to each serving the buildings. other and the merchandise, This building houses estab- Specialty Retailing lished specialty shops and some more formal restau- rants. The large pavilion is more open, featuring food Harborplace is, of course, a shopping experience, service of all types. In order to ensure the sale of less even if it is first an experience of the sights and sounds of profitable produce, fish, and meats, a low-rent aisle the marketplace, of ships in the harbor besides which it especially for their display runs down the center and ties sits, of the colorful pavilion-like quality of the buildings in with fast-food operations on the sides. One section of themselves, and of the street performers and musicians this building is Comprised of stalls and pushcarts whose who add to the fair-like atmosphere, Furthermore, merchants sign week-to-week or month-to-month leases. Harborplace is an experience of the traditions of the city This allows a constant renewal and change of hand- of which it is a part, For example, there is a long history crafted or other specialty merchandise and requires no of successful city markets in Baltimore where fruits, capital investment in a store's fixtures on the part of the produce, meat, fish, and poultry are still sold, The merchants. All of this adds a liveliness and a constantly Colonnade Market is in the image of this tradition. changing array of merchandise for visitors to the market. The city's desire to encourage local city merchants coincided with Rouse's own interests in having the strongest possible representation of local small tenants. Merchant selection processes were rigorous. Over 2,000 potential operators were interviewed before Rouse decided on the 140 who were to occupy Harborplace. A AQ - Ninety-one percent are local to the community, many opening their first business. Rouse also made a special effort to attract minority enterprises to the project, in close cooperation both with the block community of Baltimore and with local banks who waived certain underwriting requirements to pro- vide financing for these merchants. On opening day, 22 Wo of the 140 tenants were minorities, a number consider- "iZ 19 ably beyond the goal that Rouse had discussed with the L@ community. Similarly, goals were exceeded with respect to the number of minorities who now work in the project, the number who were employed in the construction of the project, as well as the number of minority sub- contractors who participated in the construction of the A-1 Ct. proje Benefits Harborplace itself was built solely by private invest- ment, although it clearly benefits from the surrounding tA NAD public amenities and adjacent parking. The Har- Z borplace project, like the Hyatt, pays full taxes. Prior to the start of construction if was estimated that the project would deliver $2.3 million in property@ sales, and income taxes to the city and state in its first year The actual 5-42 The Light Street Pavilion features the Colonnade Market, developed in the tradition of Baltimore's older city markets, 154 receipts in that first year totalled $3 million in addition to parking revenues. Because of the enormous success of Harborplace, the 1,000 jobs anticipated have turned into 2,500 jobs, one-third of which are held by previously unemployed Baltimore residents. For the first year of operation, covering July 1980 to July 1981, the city of Baltimore received $595,500 in real start with has proven its worth in very high sales and estate taxes and $93,800 in land -rent from Harborplace. reasonable tenant turnover. Looking at the project's In addition, the city is due 25 percent of any cash after success, the developer suspects that Harborplace could debt service and preferred rent to the developer, a carry more retail space than its one-third ratio due to the piggyback on income taxes from tenants and employ- high critical mass of activity already present in the Inner ees, plus a portion of state sales tax for schools. Harbor area. Some of the business community which feared that The essence of the Harborplace concept is providing Harborplace would draw off customers instead has seen entertainment. The project is an asset to the Inner Harbor an increase attributable to the generally heightened environment because it is a sensitive response to the interest in visiting downtown Baltimore. Harborplace has individual site, Most importantly, the developer and city added another attraction to the Inner Harbor as a tourist started out in fundamental agreement over what was destination. An estimated 33 percent of the visitors to needed. This is not to say, however, that the design of Harborplace reside outside the greater Baltimore area, the project was preconceived, which would have been People have kept coming back to Harborplace, in a handicap. Because of an early understanding of the numbers quite above the developer's estimates. The importance of views and scale, the architects' first peak summer season is being well supplemented by designs were subjected to only minor revision in the year-long crowds, whether they are drawn by the public review stage. The architects were offered consid- convention center, aquarium, or the specialty shops. erable leeway because there was little existing urban Consumers spend less per capita than at a typical context to determine building style in the immediate regional mall, but their expenditures at Harborplace area, The popularity of Harborplace confirms the have still exceeded Rouse's projections for specialty success of the designers' attempts to create an exciting, centers. The aggressive pursuit of high quality tenants to people-oriented attraction. 77-@!- -77- 7,,-7-,r,`--, -7- --7, R % 5-43 dt,` @@N' !,botpla.- - "Pilrbi6et"b- tA Land Use Information, Tenon hf6tOna ion,-. Site Area: 32 acres, Percent ot Gross Building Areat 247,oO6@`s4@@..w Le osobI4 Area Opr, o ",'ML erd.K Gross Leasable Area: 142,000'sq@' 40.7 percent "@o er, SL,@' % @20'mci e,,-an Economic Informa ion `13.7 percent A- .10.6 percent Land Rent: $100,000-per year - 37 sma 6atin'g,,,O Total Project Cost, $aicioobbb 36@sp' @y .@5,0 percent Pu 'Os 's. Rents: $15 to 40 per sq, ft. ;(T ddft'ahd`,kk k percent O'@' on, er4, Common Area Charges,, fl 4.2 percent @2 Other Areas: w per sq, ft,r Developer/Management: Ardhi., ec ure@@r"@"",@."'@,",;""''"'',@- Harborplace Limited Partnership', enlarnim Story"Sff A Rouse Company SubsididN,',,, ee,,r C m'b""d' a hQs@e s,,@ 21:-@@",;',"L@j 10275 Little Patuxent Parkwciy a 4tab' ft .43-00- Columbia, Maryland 21044 & (301) 9W-6000 155 History The city of Portland straddles both sides of the Willamette River. The city's downtown was established on the river's west side. As Portland expanded in the late 1800s, the riverfront south of downtown become an industrial area occupied by lumber mills, railways, and Johns Landing, manufacturing plants. By 1928, furniture manufacturing was the dominant use. Portland's "Furniture Row" along Macadam Avenue was for a number of decades one of Portland, Oregon the country's principal furniture manufacturing centers. Redevelopment efforts first began in the mid 1960s Johns Landing is a large-scale, mixed-use develop- after a fire destroyed the Jones Lumber Company, ment project that has transformed 75 acres of declining located on a large riverfront site in the industrial area industrial land along.the west bank of the Willamette south of downtown Portland. The owners initially planned River info a new urban village. Unlike most other urban to build an industrial park on the site of the burned-out waterfront projects of similar scale, it was developed lumber company since the property was surrounded by exclusively with private funding. The project has re- factories and warehouses and served by a railroad spur placed incompatible and restrictive uses, thus making One of the owners, however, saw a different potential for the nearly one-mile riverfronf area accessible, attractive, the waterfront site. Because of the improvement in water and above all, more responsive to the needs ofPorHand quality of the Willamette River and changes in industrial residents. operations in the area, the possibility existed for 5-44 The Johns Landing site is located along the Willamette River, south of downtown Portland. 156 redeveloping the site for other uses. The owner consulfed other people to determine the validity of the idea, and they concluded that redevelopment would be feasible if the site could be enlarged. The significance of the water qualify improvements cannot be overemphasized. In Oregon, the commitment to improve wafer quality was demonstrated as early as 1938, although if was not until the beginning of the 1960s that the state's Department of Environmental Quality was created and important legislation was enacted. Guide- lines were adopted for establishing water quality standards, and policy regarding sfatewide controls was Project Plans and Approvals clarified. A system of permits and financial incentives, such as the tax credits and assistance grants to cities The planning for Johns Landing began in the early and counties, was authorized, '1970s. Joseph Griggs, a member of the original planning Site Assembly and Financing team, became managing architect and planner for the project in 1973, and since 1975, Griggs, Lee, Ruff, Given the potential opportunities for redevelopment, Ankrom/Architects. P.C.. have been managing architects the lumber company owners concentrated on trying to for the plan and design architects for a majority of the expand the site. Immediately to the north of the Jones buildings. Lumber Company was the BP John furniture factory, The planning concept was to develop Johns Landing which had recently been sold to Consolidated Foods. To as an urban village combining residential, commercial, the north of the furniture factory was a door factory that recreational, and office uses. The office and retail Was about to relocate to the southeastern region of the development was designated primarily for the Mac- country The owners contacted Consolidated Foods and adam Avenue corridor The residential development was the company indicated that it would be willing to sell concentrated closer to the river with the shoreline the property if part of if could be leased back to them reserved for recreational uses. for a few years. A deal was also initiated to acquire the The actual master plan was changed many times door factory property. during the development process, although the initial In June 1971, Macadam Investors Oregon, Ltd., was development concept of Johns Landing as a multiple- founded with John D. Gray as general partner to use urban village remained intact. Each change to the redevelop the riverfront. There were 10 limited partners, plan was made in order to improve the project's overall seven of them direct heirs of B.P. John and owners of the function. Many revisions were made as increments of vacant Jones Lumber Company land. These seven property were added to the site for development. limited partners provided 21 acres of land on a Furthermore, the master plan was revised several times favorable ground lease plus 70 percent of the equity. to conform to the specific requirements of the 39 Their contribution, plus that of Gray and the three other different governmental review agencies. The final master limited partners, totaled $2 million. This equity was plan calls for about 500 dwelling units, including both combined with some debt financing to buy approx- apartments and condominiums: several waterfront res- imcfely 55 more acres of land and to pay redevelop- tauranfs; a variety of office projects, including new ment and operating costs. speculative buildings, small corporate buildings and With 76 acres assembled and preclevelopment fi- industrial building renovations for office use, totaling nancing secured, Macadam Investors Oregon, Ltd., was about 600,000 square feet; a public waterfront pathway prepared to continue with planning and development system; a specialty shopping complex, two marinas; activities. The developers decided to reduce the site to and an athletic club. The original development time- 70 acres by dedicating a public easement along the table was 10 years. riverfront for walking and bicycle paths. Clearing the Once the master plan was reviewed and approved property for development required the relocation of only by the numerous governmental agencies, work could four families. begin on stabilizing the mile of shoreline. Since the The developers offered the riverfront property dedicat- Willamette River varies some 20 feet during the year, this ed for public use to the city. However, the city govern- effort was expensive and time consuming, but a key ment declined to accept the offer The county and state step in proceeding with development. If took about 18 governments also refused to accept ownership and months for the developers to obtain permission to rebuild responsibility for the property. Consequently, the devek the riverbank in such a way that it would be stable and opers of Johns Landing continue to pay faxes and usable but would not reduce the amount of buildable maintenance costs for this property. land. 157 P! 5-45 The schematic plan shows the project's land use and circulation pattern. ik- MASTM PLAN 5-46 The Johns Landing master plan illustrates building configurations and landscape elements, 158 Project Components The retail component of the Johns Landing develop- ment program is concentrated in the Water Tower building located on a 3.6-acre site on the west side of S.W Macadam Avenue. Formerly the Biltwell Furniture Factory, the 1903 building was adopted to function as a specialty shopping complex with over 40 retail shops, six restaurants, and over 25 individual office tenants. Renovation of the 111,000-square-foof (gross leasable area), three-story building was completed in 1975. W15 Gigantic overhead beams and hardwood floors were sandblasted and a courtyard was created of old Belgian cobblestones taken from street excavations. A modem 200-car, fwo-level parking structure was con- strucfed, expanding the size of the complex to 198,000 square feet, A surface parking lot adjacent to the building provides an additional 106 parking spaces. Portland's Building Department sent inspectors to tour the building with the architects to help them determine how 5-48 The Riverpoint condominiums at Johns Landing. they could deal with existing code rulings affecting the project's design, The total project cost was $3.5 million, The Bankside project consists of 24 condominiums and space in the complex has been leased for $7 to averaging 1,800 square feet per unit. This $2.5 million $10 per square foof. project is located immediately north of the riverfront The residential component of Johns Landing is located project. Units range in price from $65,000 to $118,000. between S,W. Macadam Avenue and the Willamette Riveridge is a 34-unit condominium project located River and consists of three major projecfs-Rivepoinf, west of the Bankside project. Units range in size from 750 Bankside, and Riveridge-cleveloped in multiple to 1,350 square feet and in price from $65,000 to phases. $118,000. The first two phases of the project were The Riverpoinf project consists of 23 luxury condomini- constructed on fop of a 61-car parking garage. This ums ranging in size from 2,500 to 4,500 square feet. The design was used to create an artificial hill to maximize project is located on five acres of the Johns Landing site the views from the complex. The project was completed and was designed to maximize the number of units on in 1980 at a total cost of $2.15 million. Additional the limited river frontage, capitalize on spectacular residential development is planned for the future. The views of the river and downtown Portland, and create a type and mix of units will be dictated by market factors sequence of separations and privacy between the and economic conditions. residential units and the public pathway along the river's The office component of Johns Landing is a mixture of edge. On the west side of the units a mixture of auto new buildings including a small campus-type office courtyards, garages, and entry courts provides a group, and several large-scale industrial building con- gradual transition between public and private areas. versions such as the 4800 Building and Landing Offices. Parking is provided for 40 vehicles. The Riverpoint project Existing and projected office buildings in the project will was completed in 1979 at a total cost of $3.65 million. eventually provide approximately 600,000 square feet of The units range in price from $400,000 to $725,000, space. 61-f6livaq Willow4e, w;;@ a-,&4 4-o &Yea+-6 s*) -39WIC191 bill, YA3)oMlA0YI90I -V'Ae view p*&Y)-ha.1 Tor complex. 7;7574 5-47 Johns Landing was carefully designed to provide views of the river. 159 in the United States and was the centerpiece of the industrial portion of Portland's waterfront. Surrounding it were auxilliary manufacturing buildings. One of the most challenging aspects of the project was redefining the building as one entity, Architectural continuity was provided by replicating the corbelled masonry at the Zl@ bases and cornices, covering them with stucco, and painting them. Interior modifications demanded careful planning within a fight column grid to maximize rentable areas. The Landing Offices project was developed by Harbor Square Associates. Completed in January 1980, the AW project cost $1.5 million or $30.00 per square foof ""N (building shell and site improvements). Tenant improve- ments cost $10.00 per square foof. The recreational component of Johns Landing consists of two marinas, the public pathways, and an athletic club. The pathways for pedestrians and cyclists inter- weave seven acres of public riverfront space connect- Ing the soufh end of Johns Landing property with Willamette Park and the north end with the city's projected open space link to the downtown waterfront. The two marinas offer both transient and permanent 4, moorage facilities. Experience Gained 5-49 The 4800 Johns Landing office building was formerly a large industrial facility. Johns Landing offers several valuable lessons regard- ing urban waterfront development. The project clearly Since its construction around the turn of the century, shows the difficulties associated with shoreline develop- the 4800 Johns Landing Building has accommodated a ment, yet demonstrates that waterfront development is variety of manufacturing uses including most recently the not dependent upon special government funding or Windsor Door Factory. The master plan called for the intervention. Johns Landing is one of the largest adaptation of this 44,000-square-foot building to office waterfront redevelopment projects planned and devel- space. By adding an intermediate floor in the high- oped totally by the private sector. ceilinged space between the ground and second floors The complex and fragmented governmental review the building's total square footage was expanded to process had a significant impact on the development of 56,000 square feet. A new central core was constructed Johns Landing. Obtaining the necessary approvals and with stairs and service facilities, and a new passenger permits required much more time than anticipated by elevator was installed in the rebuilt freight elevator shaft, the developers of the project. Consequently, the devel- The overall building size of 100 feet by 150 feet and the 11-foot by 18-foot bay sizes made the spaces easily divisible for small- and medium-sized office use. The existing structure was a concrete exterior shell with heavy timber/mill construction internally. It has been structurally reinforced to conform to current seismic code MIN requirements. Extraneous elements were removed from OR the exterior of the building to reveal a visually striking low low WI frame. The construction cost, not including property or the Ron existing building, was $17.00 per square foof and tenant improvements were $5.50 per square foof. Parking facilities for 180 cars were constructed adjacent to the building. The project was completed in 1976 at a total I @ '@"' M cost of $875,000. f"P' The Landing Offices, known historically as B.P. John Furniture Corporation, contained the offices, showroom, and part of the production facilities of the furniture manufacturer. A five-story building, originally construct ed in 1914, it housed one of the largest furniture corporations 5-50 The Landing Offices are contained in a building that was constructed in 1914 to manufacture furniture, 160 opment time frame was expanded to a point where the developer was forced to escalate the price of various products to cover carrying costs. vided the framework necessary to make rational The lack of coordination among governmental agen- development decisions and was flexible enough to cies left the developers with the responsibility for accommodate changing economic conditions, The maintaining and managing the shoreline property concept of clustering the office and retail component dedicated for a public pathway. One review agency along Macadam Avenue and preserving the land closer requested that the developers dedicate the property for to the river for residential development worked extremely public access and recreation in order to be granted a well. shoreline stabilization permit, Yet the city government The effectiveness of the master plan was greatly had no desire or intention to include the property in the enhanced by the presence of one architectural firm city's park system. If there had been closer coordination coordinating the efforts of the various design groups among the governmental representatives and the pri- working on individual projects in the Landing. This vate developers prior to project initiation, this situation ensured overall functional and aesthetic compatibility. could possibly have been avoided. The coordinating architect also provided the continuity One of the keys to the success of Johns Landing was necessary to implement a large-scale project with the master plan guiding development. The plan pro- several phases of development. Project Data-rJohn-s Landing Land Use Information: Dwelling, Units: Site Area: 70 acres 250 current, 470 proocted Gross Density: Land Use Plan: Acres- Percent 12 to 30-0er act& Residential ................ 22 31 Marinal-Sillos- (PHvQte): Commercial ............................. 10 14 Tirbnsfenfi -Scurrent Office ......... ................... ... 20 29 Permanent,, 5-1current Open Space and Parks ............. @45 11 Parking, Spaces: ntl - 1. Circulation ............. ............. 12 Reside al, .76 spaces Marinas ..... .............. ........... 2 3 per unit (,average Total .......................................... - Commercia 1: 1 space per 330 sq. ft. 70D 100 - of gross -leasable area (average) Economic Information: Restaurants: 5 (1000 to,12,000 sq. ft. each) Site Improvement Cost: Public Private Roads ................................ cA,2,W,000 $ -250,000 Utilities & Drainage ...... .................. ... - 1 300,000 Bulkheads, Dredge, and Fill (Riverfront Work) ......... _.. 1,000,000 Total ........... ....................... $4,2,%,000 $1.550,000 Master Developer: Coordinating Architects and Planners: Macadam Investors, Oregon, Ltd. Griggs, Lee, Ruff, Ankrom/Archltecfs, PC. 5331 S.W Macadam Avenue 5331 SN Macadam Avenue Suite 200 Suite 205 Portland, Oregon 97201 Portland, Oregon 97201 (503) 228-2931 (503) 244-2720 161 Unlike most other North American cities, waterfront development in San Diego is not the result of a recent discovery of an underutilized urban shoreline. In fact, quite the opposite is true. The city has always viewed its waterfront as a special urban amenity capable of supporting a variety of uses and activities, and the new projects along the Embarcadero represent the confinua- tion of a recurring cycle of waterfront development in San Diego, The Embarcadero Hislory San Diego is a city with a rich maritime heritage. M Portuguese explorer Juan Rodriquez Cabrillo discovered San Diego, San Diego Bay, one of the 10 great natural harbors of the world, in 1542. In the late 1700s Spanish vessels began calling at San Diego to bring priests to the California missions, supplies for military personnel, and goods to The Embarcadero is the place where San Diego trade with the Indians. By the time of the American meets the sea. Inland rise the towers of the central Revolution, a regular trading pattern had developed in business district and on the wafer the maritime activity is Son Diego Bay. a combination of commercial fishing boats, merchant In 1846, Son Diego and all of Southern California ships, navy vessels, and pleasure craft. All the pierside officially become U.S. possessions. Following the begin- activities related to these boats and ships contribute to ning of the gold rush (1849) and the California the Embarcadero's unique character To enhance the population boom, the bay continued to develop and, viability and usefulness of the Embarcadero, the Son and, in 1850, the first commercial wharf was built in the Diego Unified Port District Commission has been guiding harbor A year later the first steamship arrived in Son the redevelopment of these three and one-half miles of Diego from San Francisco, marking the beginning of urban waterfront. regular service between these two ports. In 1911 the state of California transferred control of tidelands within all coastal city borders to the respective municipal governments. In 1912 a $1 million bond issue was approved by the citizens of Son Diego to finance a dredging project for bay improvement in accordance with a condition set forth by the state legislature in deeding tideland control. A second bond issue for $400,000 was approved in 1914. The funds were used to S. Id-d Sari I finance the first municipally supported, large-scale harbor improvement. In 1915 a 30-foot channel was YonM A@ dredged alongside the site of the proposed Broadway N@ All S).ft- Pier cargo terminal extending out to the main channel. Co ad* The following year the pier itself was built. During World War 1, naval facilities in San Diego Z' expanded rapidly but commercial activity did not keep pace. Port promotion was weak and haphazard. As a Haftn*l City I result, there was little demand for additional facilities "'N' and tonnage figures declined. Following World War 1, --- Mean High Tide Une the San Diego city council offered to deed to the TidOlaftd$ federal government 79 acres of submerged tidelands, -@7 SubmeMed ndelands Chula V10a1 and the Chamber of Commerce promised to raise $280,000 by public subscription to purchase 135 acres of privately owned land north of the mean high tide line M" and Rosecrans Street for a navy training station. The Secretary of the Navy accepted these two offers. The first building was started in June 1923, and the training station was commissioned the following October Sub- stantial acreage was added to the training station as a Imper!9I Reach result of Navy dredging prior to World War 11. It now _J includes 436 acres of land and 64 acres of water 5-52 The Ernbarcodero is located close to Son Diego's central business district. 162 The city of San Diego granted 88 acres of land and 21 acres of submerged tidelands at the foot of 28th Street to the federal government in 1919. The Navy established a destroyer base on the property in 1922. Its designation was changed in 1943 to the U.S. Naval Repair Base, and in 1946 it became Naval Station, San Diego--its present designation. Now the largest station in the U.S. Navy, it has grown to over 1,000 acres and an investment of more than $144 million. This complex forms the major West Coast logistic base for operating forces of the Navy. Over 30,000 officers and enlisfed men serve on more than 70 ships berthed at the station's piers. Other land grants and permits from the city of San Diego to various agencies within the perimeter of the Harbor include the Eleventh Naval District Supply Center, A4@ the U.S. Marine Corps Recruit Depot, adjacent to the Naval Training Center in the Northeast sector of the Bay; the Fleet Sonar School in the same area; the Navy 5-54 In 1941 the Embarcadero was used primarily for open cargo Athletic Field, and the U.S. Coast Guard Air Station. storage, In 1926 a second general cargo terminal, the B Street exclusively for transportation of military supplies and Pier, was built. In that some year, a master plan for personnel. Beginning in 1948, the port embarked on a developing Son Diego Bay, known as the "Nolan Plan," policy of dynamic promotion. To keep pace with was prepared under the direction of the Harbor increased tonnage generated by the promotion cam- Commission. While not followed in every detail, its major paign, more facilities were needed. In 1955 San Diego parts, consistent with orderly growth, were heeded. - voters approved a bond issue of $9,460,000 to build a Recreational, commercial, industrial, and military devel- new terminal. This facility, the 10th Avenue Marine opments took place in separate and distinct areas. Terminal, with its two huge transit sheds, was officially Unrelated functions were not mixed or placed haphaz- opened in November 1958. By January 1960, the sheds ardly along the bay shore. were operating at full capacity Sixty-five ship calls were From 1926 through the depression years of the thirties, recorded at the port of San Diego during fiscal year tonnage through the port continued to decline due to 1952-53. Several times that number call at the port the growth and increased facilities of the port of Los today. Angeles. During World War 11, San Diego was virtually closed to commercial shipping and used almost Development of Shelter and Harbor Islands In the development of San Diego's waterfront, two important features are Shelter Island and Harbor Island. Both islands were created by dredge and fill operations and were primary locations for commercial, recre- ational, and marina development. Shelter Island is located west of the Embarcadero in the Point Loma area of Son Diego. Harbor Island marks the west boundary of the 3.5-mile-long Embarcadero. As early as 1859, the Shelter Island area was referred '40 to on the U.S. Coast and Geodetic Survey Map as a shoal or mudbank." During the post century, the surface area of this shoal was raised both by the accumulation of soil carried by the Son Diego River into the bay and by sand deposited, layer upon layer, by the ebb and flow of the fide, The shoal area was normally exposed at low tide. From 1934 on, this area was used as a 5-53 The Broadway Pier (left) and B Street Pier as they appeared in 1932, -163 Creation of Port District convenient place for dumping dredged materials. In 1962, the state of California approved legislation Shortly after World War 11, the Harbor Commission that allowed the cities of San Diego, National City@ undertook a dredging project which was completed in Chula Vista, Imperial Beach, and Coronado to form a 1950. If provided a new, 400-foof channel entrance to special purpose district for the purpose of developing all the yacht basin adjacent to Point Loma. The basin has tidelands and industrial lands on Son Diego Bay. The an area of about 200 acres; the channel is 20 feet measure was given overwhelming approval by the deep. Dredged material was used to extend the Byron voters of the five proposed Port District communities as Street mole to connect with Shelter Island. This causeway well as the county's board of supervisors. The San Diego is 2,150 feet long and 250 feet wide. The rest of the Unified Port District was established and operations material was used to raise Shelter Island to 14 feet began the next year above low wafer, which leaves if about seven feet Each of the four bay communities has one represenfa- above high tide. Shelter Island is an average 300 feet five on the seven-member board. The city of San Diego, wide and more than a mile long. which accounts for more than 80 percent of the popula- Marina facilities in the Shelter Island area were built tion of the Port District, has three commissioners on the with Harbor Department funds under the trust transferring board. The term of each commissioner is four years. tidelands within San Diego from the state of California to During its formative years, the Port District acquired all the city. Revenue derived from leasehold interests on the tideland assets, as well as debts, of its member tidelands, by state law, must be reinvested in tideland cities. From 1963 to 1969, the Port District required a small facilities., Upon completion of the Shelter Island area, the tax levy in order to repay debts incurred for improve- Harbor Department funded all landscaping programs, ments accomplished before the unification. Since then, including planfing of palm trees and construction of the revenues from the three principal operational areas-- streets, parking areas, utilities, a municipal fishing pier, harbor, airport, and property management-have been and a small boat launching romp. More than $2 million sufficient to support District operations, service bonded was spent on Point Loma improvements. indebtedness, and allow for capital improvements. No All public facilities in the Shelter Island area are additional tax levy has been required. The District also located on the outboard or channel side of the island. created a master plan for full development of the entire The inboard yacht basin side of the island has been bay, which was adopted in January 1964. leased to private interests, All land available for private Although the Embarcadero was not singled out in the lease had been let by 11966. Leaseholders are primarily master plan for special development, several projects in two categories: commercial recreation and marine were, nevertheless, implemented. Of particular signifi- sales and services. They include a number of private cance was the redevelopment of Harbor Island, the yacht clubs, public "boatels," restaurants, marinas, renovation of the Broadway Pier, reconstruction of an shops, boat building and repair facilities, boat sales and apron wharf, the development of the Harbor Seafood rental companies, and sailmakers. The approximate Market, and the construction of Spanish Landing Park. value of private capital improvements on these leased Harbor Island, roughly 300 feet wide and just over a holdings is $15 million. The cost of dredging work on mile and one-half long, became a focal point of Shelter Island, including fill, was approximately $300,000. development during 1968 and 1969 because of its There are over 2,700 slips in the yacht harbor and suitability for recreational/commercial uses. Several commercial basin. Each of the motels and boatels on leases were granted and by January 1970, three- the island has been required to provide two slips for quarters of the island's acreage had been let. Major every room. The Harbor Commission included this hotels were built by Ramada Inns of America (now provision in all lease arrangements because the primary operated by Sheraton Inns) and Travelodge. Lockheed purpose was to provide not only boatel facilities but also Ocean Laboratories built a research submarine hangar adequate mooring space for the small boats and fishing and Far West Services, Inc., opened three restaurants: vessels in this part of the harbor one on pilings at the east end of the island and two Harbor Island was formed after the Navy decided in aboard a "Mississippi Riverboat" replica moored nearby. 1961 to dredge the channel from the outer bay to the Capital improvements by the tenants of Harbor Island aircraft carrier docks at North Island to a depth of 42 total approximately $30 million, port expenditures about feet. Dredged materials from the project were offered to $5 million. Outstanding features of the 80-acre island are the Harbor Department. A shallow area located along its hotels, gourmet restaurants, landscaped park areas, the east shore of the bay near the airport was chosen for and docking marinas. There are more than 1,100 boat the deposited material and a fill area similar to the slips, all on the island's inboard side. Shelter Island development was created. Harbor Island Total renovation of the Broadway Pier, completed in was completed late that year. Like Shelter Island, Harbor 1972, was the next step the Port District took. The Island was later joined to the mainland by a narrow construcfion of a passenger platform, customs building, causeway. parking spaces, lighting fixtures, and landscaped plant- 164 er areas converted this former cargo pier into an attractive esplanade and cruise-ship facility. Now more utilitarian than ever, the 1,000-foot pier provides efficient embarkation-debarkation facilities for passenger ships, space for visitors to relax and view the bay, and a Finally, the long-awaited completion of Spanish Land- mooring area at its outermost end for tuna seiners. ing Park occurred in June 1976. This slender strip of Transforming the Broadway Pier into a maritime park was waterfront property between Lindbergh Field and Harbor one of the first steps in the redevelopment of the entire Island is a 16.6-acre belt of landscaping which affords Son Diego Embarcadero. views of the harbor that are unsurpassed anywhere in The Harbor Seafood Mart, a unique architectural and San Diego Bay. The total cost of the park, which was business complex, took its place on the Embarcadero in completed in three different stages of construction, was June 1973. The Port District furnished the building, just over $900,000. Improvements include a bicycle path landscaping, parking, and utility connections. Tenants the entire length of the park, landscaping and benches, installed their own equipment and provided interior parking spaces, and a swimming and sunbathing design. Located at the foof of Market Street near the old beach. ferry landing on Pacific Highway, the complex features a Mediterranean theme and a harmonious blending of Embarcadero Development Plan retail and wholesale fish outlets with quick-order deli- cacies, a gift shop, and restaurant. Investment by the Unlike the earlier city master plan, when the revised Port District and tenants in this waterfront addition master plan for San Diego Bay was adopted in 1972, the totaled $1,590,000. Embarcadero was singled out for special study. The May 1976 brought the conclusion of two significant purpose was a more precise determination of the Port District projects and the beginning of a third. A redevelopment options for this three-mile segment of the mai .or effort, and one basic to the success of Embar- Son Diego waterfront from Harbor Island to Navy Field. cadero improvements, was reconstruction of the apron The first part of the study included market research and wharf (a wharf that lies parallel rather than perpendicu- analysis, feasibility testing, and market planning. The lar to the shoreline) from the Broadway Pier to a point second part of the study converted earlier recommen- near the Grape Street Piers. A half-mile section of the dations into a specific, detailed planning program with wharf's old seawall, built in 1913, had slowly begun to emphasis on urban design, circulation and parking, lean outward toward the bay Stabilization of the wall, landscaping and environmental planning, and engi- which is 29 feet high, and replacement of the 25-foot neering considerations. apron wharf took 19 months and cost $2,300,000. It was In 1976, the Port District adopted a precise plan a complicated process of replacement and reinforce- delineating a development strategy for the Embar- ment in which the port's contractor restricted much of his cadero. The plan carefully integrated future develop- activity to the off season in order to minimize inconve- ment with the successful Harbor Seafood Mart, the nience to District tenants in the area. reconstructed apron wharf, and Spanish Landing. For planning purposes, the Embarcadero was divided into four major zones according to land use significance, with specific development recommendations for each zone. Entry Zone. From Harbor Island to the Coast Guard facility, planning concepts focus on providing a sense of entry into Son Diego for travelers coming from Lindbergh Field and'Harbor Drive with activities and landscape All features that strengthen the image of San Diego as a pleasant place to visit. New commercial uses in the area are intended to be visitor- and recreation-oriented, at a scale consistent with existing development on Harbor Island. Considerable attention will be paid to long-term improvements in general appearance of existing industrial uses and the planned expansion of these uses. Two hotels, providing about 600 rooms, are planned on Harbor Island. The areas between the structures will be developed into a series of landscaped gardens and S. terraces. The hotels are proposed as two towers with lower level ancillary structures, The hotels will be situated 5-55 The obsolete Broadway Pier was redeveloped to accommodate a public park, a work area for tuna vessels, and US, Custom offices to process cruise ship passengers. 165 Bicycle paths and pedestrian paths have been constructed for the entire length of Harbor Drive in this zone, using the right-of-way area on the south side of the roadway. A portion of the pathway system extends along the water and is accessible only from the Harbor Drive side and does not connect directly with Harbor Island. The 27-acre underufilized industrial area across the to afford maximum views of the wafer. A marina of East Basin from Harbor Island is recommended for approximately 400 berths is recommended for the eventual redevelopment into a light industrial/business Harbor Island basin directly adjacent to the hotel park. This area will include such activities as scientific complex, laboratories, office space, marine-oriented businesses, A major landscaping program extending from Harbor and light manufacturing plants, with some ancillary Island to the Marina Zone has already been initiated. storage and warehousing. One of the constraints The 40-foot righf-of-way adjacent to either side of Harbor affecting total redevelopment of the site is the current Drive has been developed info a landscaped area to lease, which continues until 1983. include street trees, shrub, and groundcover plantings. The median strip planting has also been upgraded to meet the established theme. Undulating landscaped 2 areas were creaf6d along the Harbor Drive right-of-way to visually and physically separate the vehicular corridor from the other activities, as well as to provide a change@ in the relatively level terrain in the Entry Zone. A The Criseent Zone Of I? The Entry Zone \11.@ A Harbor Island 5-56 The Embarcadero development plan, 166 The Coast Guard facility located at the eastern edge of the Entry Zone will remain as part of the long-range plan. Recommended changes relate only to alterations in the parking and landscaped areas as necessary to be compatible with the overall planting program. Between the industrial site and the Coast Guard facility is a small marina area currently being used as a boat fie-up area and an impoundment facility for derelict and unclaimed boats. A small collegiate class sailing center is recommended for development in this existing The most important element influencing design in the basin. This facility will serve approximately 50 boats of Crescent Zone is the curvilinear form of the waterfront. varying size and purpose and will be limited to Along this area, dramatic panoramic views can be sponsored events. The space limitation of the site realized at either vehicular or pedestrian speeds. Once precludes any extensive general boat trailering. Storage post the Coast Guard complex, the Embarcadero can of derelict craft will be relocated to an area outside the be viewed in full against the background of the Centre Embarcadero. City development skyline. North Island and the naval Crescent Zone. From the Coast Guard facility to installations across the bay can also be viewed from this Hawthorn Street and Harbor Drive exists a panorama of zone. unobstructed vistas. The concept for this crescent- The plan recommends changing the Crescent Zone shaped zone focuses on maximizing public access and from a basic link in the roadway network to a grand enjoyment of the water's edge through provision of promenade and major entry statement for the city of increased opportunities for pedestrian and bicycle use San Diego. Parking will be removed from along the and passive recreation. waterfront and a major landscaping program imple- mented. The pedestrian activities on the water side are to be visually as well as physically separated from the vehicular movement on the inland side by the creation of landscaped areas with earthen berms. The water-side edge of the landscaped mound area will serve as a seating wall. Along the water's edge, the boardwalk will be rehabilitated to allow pedestrian and bicycle access and continue its present use as both a promenade area and service area for boats tied up along the Crescent Zone bulkhead. The pedestrian/bicycle path system introduced in the Entry Zone is to be continued through this zone to connect with the Civic Zone. 71. "X., E The Civill Zone 'The'Marifia Zone 167 important. If the convention center is not located in this general area, an alternative long-range use of this land 1@ V M ighf be office buildings. The B Street Pier, located in front of the Lane Field, provides constraints to the design program because of its size and bulk but if also offers unique opportunities to add character and excitement to the planning area. The south shed on the Pier is to be removed. The western end will be converted to up to 25,000 square feet of commercial uses, such as a shopping bazaar and foods and services reflecting the maritime character of the Embarcadero and supporting the cruise ships that will be docking here. Fifty thousand square feet for a maritime museum or expansion of the shopping bazaar may be developed using portions of both the northern and southern shed areas. The north shed will continue to 5-57 The public waterfront promenade. be used as a storage facility with loading and off- loading capabilities. Civic Zone. From Hawthorn Street to the fishmarkef lies Broadway Pier is another advantageous element in the zone of highest activity. This area enjoys a prime the Embarcadero. It is an example of the kinds of physical relationship with the Centre City project area, improvements which make the area a more pleasant therefore, the concept is to strengthen and enhance this place. The deep-wafer berthing aspect also provides an area as the key zone for uses and activities which opportunity for large vessels, such as cruise ships, to attract large numbers of people to a wafer-orienfed dock in the Embarcadero area. Conversely, the Navy setting. The piers, which will emphasize pedestrian Supply Center and its pier offer limited redevelopment access, will generate the greatest public use. possibilities because current and assumed future use Significant redevelopment projects are recommended does not allow much flexibility as for as alternative for this zone, and major changes in the existing land use planning solutions are concerned. patterns are proposed. A series of waterfront plazas will The existing Navy buildings north of G Street as well as be connected by a promenade extending the entire the Navy Pier facility are planned to be retained, length of the Civic Zone and on into the commercial Activities presently housed in the buildings located village in the Marina Zone. The promenade will extend between G Street and Market Street are recommended in front of the existing County Administration Building. for consolidation into other Navy buildings in the ultimate Anthony's Restaurant, which currently serves as one of phase. This parcel could then be redeveloped to the key attractions in the Civic Zone, will be retained as accommodate surface parking areas and retail com- port of the waterfront fabric and enhanced by land- mercial space. The commercial space would be an scaped areas. The waterfront near Anthony's will con- extension of the fishmarket/commercial village activities. finue to be used as a tie-up and net mending area for tuna boats. This activity has been incorporated into the plan as a desirable element of the working port. An important recommendation for this zone is the conversion of the old Lane Field site at the foot of Broadway into the Port Plaza complex of buildings and civic open spaces. The Port District headquarters may be relocated to this site to become the central focal point of the Embarcadero. A central building could V provide approximately 65,000 square feet of space for the Port District. A second building could house support activities related to the Port, providing commercial and office space, such as travel and shipping agents, or possibly the Naval Facilities Engineering Command. The existing hotel will be enhanced by the develop- ment of a new hotel complex using the remainder of the Lane Field parcel and the parcel currently occupied by f the naval functions. This complex will provide approx- imately 900 additional rooms. If the proposed conven- tion center is located in the area between Columbia Street and Pacific Highway north of Broadway, this block of visitor accommodations will prove to be very 5-58 An aerial view of part of the Embarcadero showing (from top to bottom) the B Street Pier, Broadway Pier, US, Navy Pier, the G Street commercial fishing basin, the Seafood Mort, and Seaport Village, 168 Harbor Drive will be heavily landscaped using the earthen berms and plant material concepts introduced in the other zones. The existing uses on the G Street mole will be reorganized. The tuna fleet offices will be relocated to an expanded site on the mole. A major structure will be developed to house a civic oceanographic facility with restaurants, offices, and marine retail commercial space to be constructed around the periphery of the pier. Parking areas and a transit vehicle terminus are proposed for the central portion of the pier. The eastern edge of the mole is proposed as one of a sequence of maritime plazas suggested for the waterfront. The transportation network will be significantly changed. Grape Street marks the point of modal split for the proposed transportation network. From this point 5-59 Seaport Village, a major specialty retail project, was developed in South to the Marina Zone, private vehicles will be the marina zone of the Embarcodero. discouraged but allowed. Service vehicles and frarisit vehicles will not be restricted. Harbor Drive will be proximately 500 boats. Due to the anticipated character narrowed to two opposing traffic lanes with a direct of this type of urban area marina and the large space route alignment through the maritime plazas. The required for parking areas for vehicles plus boat trailers, remainder of the existing street width will be re- boat launching facilities are not recommended for the developed as landscaped areas. Fifth Avenue Marina. Parking along the waterfront adjacent to the County A commercial village was proposed as an expansion Building will be limited. The existing parking facilities at of the existing fishmarket area, ultimately extending to the County Building will be maintained until an alferna- the Fifth Avenue Marina. In 1980 the first element of this five facility can be established. The main north-soufh commercial area, Seaport Village, was developed in flow of traffic along the Embarcadero will be accommo- this location. (See pagel7l.) The ultimate phase calls dated by Pacific Highway Access to parking areas will for the Navy Field adjacent to the Fifth Avenue Marina be from this street. Broadway is to be maintained for to be acquired by the Port District and developed as a two-way traff ic over the Port Plaza area but traff ic flows major hotel complex of several hotels of approximately will be channeled into a specific corridor Limited- 1,100 rooms total. A central shopping gallery of shopping interval parking will be permitted on Broadway Pier G street is proposed in the central portion of the complex, Street is recommended as being extended to connect with connections to the proposed upland residential with the G Street Mole through the present Navy Supply area using the air rights over the relocated Harbor Drive Depot site. Bicycles and other small-wheeled vehicles and the Santa Fe Railroad track corridor This shopping will be easily accommodated by the maritime plaza- gallery will contain retail, commercial, and food open space sequence. A special bicycle path is to be services. Recreation and open space elements are provided where necessary to separate activities for planned throughout the Marina Zone. The breakwater safety reasons. area forming the Fifth Avenue Marina is recommended Marina Zone. From the Civic Zone to the end of Navy as an open space element with landscaped areas and Field, the Marina Zone will also provide water-related pathways allowing access to the water's edge. Provision recreation in a park-like setting for both visitors and for the San Diego Rowing Club should be retained and residents. The proximity of this zone to the Civic Zone expanded in the same general area. The entire and residential redevelopment areas adds to its pofen- commercial village will feature a major open space tial viability. formcf. Using landscaped areas and urban plazas to This zone is also planned to be an intensive activity connect the pavilions, this whole area will exhibit a soft- area along the Embarcadero. Several projects have edge environment wherever possible. The hotel complex already been developed. Two marinas are under proposed for Navy Field will be set in a park-like area construction in this zone, One is a commercial fishing which will extend to the site adjacent to the police marina between the G Street Mole and the commercial station site. The marina edge will be extended info the village. A pier for tuna seiner berthing and a filled hotel complex to provide greater access to the water breakwater arm protect approximately 12 acres of and to allow more shops and restaurants to locate on manuevering and docking area. The second marina is the wafer, thereby increasing the value of the individual the Fifth Avenue Marina, It had been proposed prior to parcels. Two fishing piers built out from the breakwater the preparation of the plan and was subsequently arm will allow more public access to the water and included in the recommended land use plans as an provide additional recreational opportunities. These piers assumed use. Given the accepted configuration for the can be wood or concrete and should provide seating breakwater arms, the marina will accommodate ap- for those persons not interested in fishing. 169 and recreational development, and Seaport Village is an important element of the Port District's overall strategy to reuse the city's waterfront. Much of the Embarcadero's success can be attributed to San Diego's waterfront management structure. The The basic design character of the Marina Zone is the Unified Port District is the trustee for most of the tidelands park setting for all the land uses. Rather than construct on San Diego Bay and has the combination of legal buildings and circulation links to connect the activities authority, fiscal strength, and management skill required and the other zones, the Marina Zone should be to plan and implement a comprehensive development considered as an area where the activities are built into program. The presence of a central public sector authority committed to the development of commerce, a park. The park concept will be constant throughout navigation, fisheries, and recreation helps to reduce the zone, with parking structures and parking areas conflicts and delays for individual private investors. receiving the same landscaped quality as the commer- Seaport Village and the other development projects cial areas and the hotel complex. also benefit from being part of a larger plan for the The plan is for a low overall profile of the buildings reuse of the Embarcadero. The plan is a guide for the and structures in the Marina Zone. The commercial incremental development of this portion of the water- village is envisioned as a series of pavilions, two to three front. It acknowledges the need to enhance the special stories high at the maximum, The hotels are also seen as attributes of the area and provide the critical mass of low structures rather than towers. development necessary to create a viable and exciting In the general framework of the Embarcadero plan, waterfront. Harbor Drive is to be relocated along the Pacific Given the positive climate for waterfront development Highway alignment, continuing easterly at Market Street in San Diego, Seaport Village has proved more and south at Keftner Boulevard along the Santa Fe successful than original estimates had predicted. This corridor. Access to all subareas within this zone will be situation has lessened some concerns but raised some from this new alignment. During the initial phase, the significant problems. existing alignment of Harbor Drive will continue to be The primary problem has been parking. The 525 used. spaces have been inadequate for the traffic, requiring Parking facilities are suggested for several areas in the the Port District to build additional spaces nearby and to commercial village. Initially, surface parking would be consider building a parking garage to alleviate the located adjacent to the fishmarkef and the police parking problem. The parking problem can be at- station sites. Later, a parking structure is recommended tributed to several factors. There are more employees for the police station site if the city abandons the station. than estimated due to the small floor area of the shops, Surface parking is proposed for the eastern end of the and a high percentage of local residents drive to the old ferry terminal site adjacent to Navy Field. Access to Village, with a concentration during peak hours, the fishing piers and the breakwaters of the Fifth Avenue particularly lunch and dinner hours. There is low turnover Marina will be through the park areas in the commercial as visitors stay longer to browse. The lack of adequate village. Parking for the marina users is to be located loading spaces means that with many small shops, inland of the Rowing Club. The projects described within each zone are tied to a some owners must park in the main lot to resupply their development phasing program that describes a general shops. Tour bus parking on the edge of the project has framework for making incremental development deci- been a problem and needs to be improved, The sions and outlines specific improvements deserving the developer has indicated he is hiring traffic consultants highest priority, The phasing program allows the Unified for new projects he is considering in other cities. Port District Commission to effectively deal with three Common area maintenance for Seaport Village has development variables: the future demands of the been higher than estimated. Although maintenance is market, the expiration of current leases, and the covered by the $5 per square foot fee, this element of negotiated use of land not presently owned by the Port the development plan should have been given more District. The value of such an approach is that it gives attention. The increased maintenance requirement can clear direction in the short-term yet retains a great deal be attributed to both the type of facility and its of long-range flexibility. tremendous popularity. As future development occurs along the Embarcadero, the maintenance requirements Experience Gained of each project will have to be carefully evaluated to avoid additional problems. San Diego's waterf ront is undergoing a change from The Port District realized that momentum is very maritime, commercial, and industrial to commercial-, important to the success of the Embarcadero develop- recreation-, and visitor-oriented attractions. Some major ment program. Seaport Village has proved to be the marine-orienfed uses will remain, not only to fake type of facility the Port District felt was necessary to advantage of deep water berthing but also to allow attract people to the Embarcadero. The success of space between the recreational uses. The Embarcadero Seaport Village creates momentum for proceeding with was identified as the area to concentrate commercial other projects. 170 Seaport Village Market research had shown that the Embarcadero could become a visitor destination requiting up to 2,000 additional hotel rooms and 225,000 square feet of retail site, and ability to develop a completely cleared site. commercial floor area. The old Coronado Ferry Landing, Disadvantages related to the size of the site for its located in the Marina Zone, was targeted in the initial purpose and the lack of "freeway identification." phase of the development plan to become a 'commer- Since the Port District owned the land, it decided to cial village," an extension of the already well-received use a competition to select the best developer The land Harbor Seafood Mart and a destination point for people would be leased to one entity, which would sublease attracted to the improved waterfront. The concept was theshops, restaurants, and other commercial activities, to develop the site as one jewel in the necklace of under strict control of the District, The request for attractions strung along the Embarcadero. The linking proposals stipulated lease terms including rental rates mechanism was the gradual conversion of Harbor Drive, and conditions as well as design criteria. which fronts on the bay, from a traffic carrier to a scenic Although the project is within the limits of the city of drive and pedestrian path. This concept was realized in San Diego, city ,zoning controls do not apply. All 1980 with the completion of a $14 -million specialty regulation is handled by the Port District, which imple- shopping complex called Seaport Village. ments the port master plan, prepares the request for The site is located just southwest of Son Diego's central proposals, and issues the master lease. The project is business district on the water's edge, It was created from also within the California Coastal Zone, requiring a fill material in the 1930s and was formerly used as a ferry development permit from the state Coastal Commission. boat landing. In `1970 the ferries to Coronado were Of the three developers submitting proposals, the replaced by a bridge and the site was cleared of the team of Bryant Morris and Sheldon Pollack was selected. few minor remaining structures. The land was flat with The decision was based mainly on concept design but good drainage. Other site advantages included near- also included analysis of the developer's ability to carry ness to other tourist developments and the downtown, out the project. Construction of Seaport Village began in superb views across the bay; good access, waterfront November 1978 and was completed in April 1980. Nil E 0 0 0 !a IL 5-60 Seaport Village was designed to recapture the waterfront flavor of California a century ago, 171 exposed to west winds across the bay: it provides a sense of enclosure that adds security; and it reinforces the design theme in views across the plaza. Since there The design approved was for "effective utilization of are no major attractors at either end, the shopper fends the full potential of the site," identified as central to visit most of the small shops rather than pass them by. location, bay views, good access, and relation to The plazas also encourage people grouping around. adjoining uses. Space for parking comparable to a the concerts and entertainers featured in Seaport shopping center was not available so the decision was Village. The plazas open at the quadrants to allow made to allow full development of the buildings and access to the parking lot, the waterfront, and the park. seek supplemental access through public transit and Paths connect the plazas, but the transition is subtle and other alternative methods of getting people to the site, without distinctive architecture. The architecture of the The project contains three major restaurants, 13 food western plaza is Old Mexican or Spanish style; the service outlets, and 53 other specialty shops, having'a eastern group is more Victorian or New England, and gross leasable floor area of 90,462 square feet. Parking the central is almost a mixture. Because views within the is provided on-site for 525 cars, with an additional 564 plazas are foreshortened, building scale has been . spaces provided nearby for overflow and employee reduced slightly. Several buildings are landmarks. Au- parking. Seaport Village opened in May 1980 and has thentic details have been added to both the buildings been fully leased since the end of that year, and the grounds, The complex recaptures the"waterfront flavor of Few engineering problems were encountered in California a century ago through the merging of constructing Seaport Village. In the original design, architectural styles reminiscent of traditional Mexico, the primary access was to be off an extension of a closed Monterey waterf ront, and Victorian San Francisco, street (Keftner Boulevard), but the Port District required an although these styles are also representative of historic entrance off Pacific Highway, which is the main traffic San Diego. Efforts have been made to enhance the street serving the waterfront. The majority of cars now shopping experience with cozy shops, meandering enter at this western gate. When Keftner Boulevard is paths, outdoor eating areas, and a historic operating finally extended, there may be a greater balance carousel. between these entrances. Surrounding uses complement Seaport Village. The The developer has carefully selected the tenants to bay occupies the project's south and southwest sides, complement the design theme. Most sublessees are except for the Embarcadero Marina Park which juts out required to have a five-year lease, Duplication and from the south boundar@4 This public park, built by the competition between shops with similar goods is con- San Diego Unified Port District, provides 22 acres of trolled, since small shops would be adversely affected trees, grass, fishing, and picnicking for the public and by other shops carrying the same goods. The result has visitors to Seaport Village. Adjacent to the west is the been a very low turnover in tenants and virtually no Harbor Seafood Mart. North of Seaport Village is the San vacancy, Diego Police Headquarters, an attractive structure which will be redeveloped with complemantary uses to the Village when the city police are relocated as part of a decentralization plan. East is the 27-acre Navy Field, where construction will begin soon on a 1,100-room hotel, a 500-slip marina, and additional recreational Mill facilities. Even before redevelopment of Navy Field and the Police Headquarters, the area was considered conducive to fourist-orlented businesses. Seaport Village's water frontage is not extensively used for marine activities. The original concept for the 4, iAA frontage area included a display of a two-masted brig "',Ij_ , replica, a guest dock for visiting boats, and a harbor IL excursion pier None of these have been built because of environmental restrictions. Part of the project fronts on the Fifth Avenue Basin which will be developed with a 500-slip recreational marina. The chief benefit of the waterfront location is the ample open space and distant views which provide relief in a concentrated downtown area. Grouping the many small buildings around th ree plazas achieved several results: it enclosed an area 5-61 One of the three plazas at Seaport Village. 172 Three high quality restaurant&-a Mexican restaurant, seafood restaurant, and family restaurant-represent over one-third of the total floor area of Seaport Village. Each is located in a different plaza to attract shoppers. Currently, there are 13 other food establishments ranging from lunch and snack shops (hamburgers, hot dogs, fish and chips, Greek, Italian, and Chinese foods), to specialty foods (lollipops, fudge, cookies, and nuts), and five percent of alcoholic beverage sales. Major Gift or specialty stores represent the largest group of restaurants have customized leases, Seaport Village businesses: 53 stores occupying 50 percent of the total pays to the Port District 10 percent of the rents plus three floor area. Many are one-of-a-kind, including Mexican percent of food and five percent of alcoholic beverage tiles, heart and rainbow gifts, holiday decorations, left- assessment. handed goods, candles, and hammocks, Quality is Seaport Village collects $0,10 a square foot plus 1.5 stressed. Services include a branch bank, low office, percent of the gross sales for advertising and promotion, travel agency, beauty shops, and photographer These Common area maintenance costs shop owners $5 per small shops range in size from 100 square feet to 2,652 square foot per year; however, this also pays for taxes square feet, with the median average 522 square feet. and insurance. Seaport Village is managed by San Diego Seaport Seaport Village draws customers from both the Son Village, Ltd- the company formed by the original Diego region and from areas outside the region, development team, The land (and water) is leased from principally Los Angeles and Arizona. The San Diego the San Diego Unified Port District which must approve SMSA.has a population of 1,857,000 and the region has all subleases, tenants, building construction, alterations, an estimated 117,2 million visitors a year. An estimated signs, and any activities not specified in the master three million people visited Seaport Village its first year lease or subsequent subleases, and four@million in 1981. About 70 percent arrive by car, Rents are $1.50 per square foot per month plus 10 the remainder chiefly by tour bus. It is estimated that percent of the gross. Fast-food shops pay $1,66 per about half are local residents or downtown workers, the square foot per month plus three percent of food sales proportion varying with the season. 5-62 Project Dato-Seaport Village Land Use Information: Tenant Information: Site Area: 14 acres Percent of Gross Leasable Area: 90,462 sq. Number of Merchants Gross Leasable Area Parking Spaces: 500 3 restaurants 33 percent 13 small eating places 10 percent 53 specialty shops 52 percent 5 service shops 5 percent Economic Information: Land Rent: 110 percent of rents plus 3 percent of food'sales and 5 percent of alcoholic beverage sales. Rents: $1.50 per sq. ft. per month plus 10 percent of gross sales, Fast-food shops pay $1.66 per sq, ft, per month plus 3 percent of food sales and 5 percent of alcoholic beverage sales. Common Area Charges, Other Areas: $5 per sq, ft. for common area maintenance, taxes, and insurance. $.10 per sq, ft, plus 1,5 percent of gross sales for advertising and promotion. Total Project Cost: $14,000,000 Planning and Development Coordinator'. Developer: Son Diego Unified Port District San Diego Seaport Village, Ltd, PO. Box 488 849 West Harbor Drive, Suite D San Diego, California 92112 Son Diego, California 92101 (714) 291-3900 (714) 235-40114 173 History False Creek is a basin-like area containing about 500 acres of land and 200 acres of tidal water formed like an elongated horseshoe. The Creek is 40 feet deep and has 14.5 miles of shoreline. The land on the north side of False Creek, the Creek rises gently towards the downtown, while the South side is mainly flat and separated by a four-lane Vancouver, arterial from the hillside, which rises steeply behind it for a three-block distance. A little less than one hundred years ago, Vancouver British Columbia was scarcely more than a village and False Creek was an area dominated by huge fir trees. By 1884 the The False Creek South Shore project is a medium- Canadian Pacific Railway (CPR) had reached the density residential development that has turned an old Pacific with Vancouver as its western terminus and in industrial section of Vancouver's waterfront info a new 1887 if agreed, of the request of Vancouver city council, inner city community It is part of the larger False Creek to locate its Pacific terminal yards on the north side of Redevelopment Progrom-a city-led public/private re- the Creek. Within a few years, there was an abrupt development effort that is expected to take 20 to 30 change from forest to an area dominated by water and years to complete. While this case study focuses on rail transportation, and industries that were to character- False Creek South Shore, two other projects located ize the Creek for more than 80 years. Shipbuilding yards, within the redevelopment area-Granville Island and sawmills, shingle mills, and various wood-working plants British Columbia Place-are also featured. Although all were established there. The wafer could be used to float three projects are being administered by the public the logs in and then serve as a log storage area, while sector, False Creek South Shore is the responsibility of the the railway provided access to prairie markets. city of Vancouver, Granville Island is being developed Over the next two or three decades more industry, by the Canadian federal government, and British including other railways and their service yards, a Columbia Place is being planned by the province of creosote mill, and slaughterhouses, located in the Creek, British Columbia. There were also various public and private proposals for E CL CL 0 0 7@@J ijo -0 0 44 VMM0511 IM 2 a) L Tf a) 0 31" 1111, 5-63 Overview of False Creek: 1, False Creek South Shore, 2, Granville Island, 3. 3. C. Place. 174 docks, wharves, and terminals in connection with use as a coastal and deep seaport. Granville Island was formed by 1915 from material dredged by the city to increase the width and depth of the navigable channel, and industries such as metal fabrication plants located on it. In addition, at various times the Creek was home to a considerabie number of residents who squatted in shacks along the shore or lived in houseboats. Forty @T years after the arrival of the railway, in 1927, the city F osed that the CPR yards be moved and steps taken prop R_R@ to upgrade the area. In 1937 the city council first directed its attention to the Al, I need for development policy guidelines for the Creek, V but little happened. The council took another stab at the 71 False Creek problem in 1948, establishing a special committee which began a major study in 1950 of the railways, waterways, sawmills, and general economic conditions of the Creek. Except for more talk about possibly filling the Creek, cleaning it up, and building a new fishermen's wharf, not much happened until the 5-64 For 100 years prior to redevelopment, industry used the waterfront mid-1950s when the fishermen's wharf was started by the along False Creek, National Harbours Board, Granville Island was joined to the shore, and the study of a few years earlier was published. Despite all the problems, there were two possibilities By 1967 the council was being pressured by lease- for resolving the impasse: joint management, which had holders, whose leases expired within the next few years, failed in the post, or consolidated ownership, which was for a formal indication that the Creek would continue to preferred by the public and private sectors, A break- be used for industrial purposes. In October of that year through came in 1967 when the province and the CPR the council finally did adopt a basic policy for the exchanged some lands to consolidate their individual Creek: to retain it for long-term industrial use. But by parcels into two blocks, thereby improving the develop- March 1968, the council decided, on the basis of a ment potential and management efficiency, A means recommendation from the planning department, to for acting on this development opportunity appeared reconsider its industrial policy and investigate possible about the same time with the establishment by the CPR apartment, park, and commercial uses. of a separate development company, Marathon Realty Despite the recurrent efforts by the city to improve the Co., Ltd. Although Marathon first stated in 1968 that it deteriorating, underutilized False Creek area, there was was open to change in the Creek provided the city took no significant change. A major obstacle to redevelop- the lead, later that same year it announced it would ment was the pattern of land ownership. There were redevelop the CPR yards as an apartment complex at a several landowners, primarily railway companies more cost of $185 million. However, Marathon was unable to interested in transporting goods than developing real proceed at the time, and in the end the city did take estate. Smaller landowners included the city of Van- the lead. couver, the federal government's National Harbours In 1968 there was an even more dramatic break- Board, and a number of private owners, through. Years earlier the city had acquired 200 acres The Creek's problems had been approached for years for a future cemetery on Burnaby Mountain in the from an engineering and planning point of view, but if adjoining municipality of Burnaby. In the mid 1960s the was recognized in the mid 1950s that the real hurdles to provincial government decided to construct Simon change were legal and administrative-the divided Fraser University on fop of Burnaby Mountain. During 1968 ownership and a lack of any unified management. The the city and the provincial government began discus- attempts at joint management made via the land- sions about swapping their lands. The exchange was owners' committee established in 1956 had apparently formalized in early 1969, with the city receiving about 85 not succeeded because of the inherent difficulties in acres of land on the south side of False Creek from.the attempting to have competing railways reach agree- province for its 200 acres on Burnaby Mountain, plus ment; also, their concerns simply did not extend to $424,108. By this time, too, the December 31, 1970, improving and maximizing the use of their land, expiration date for the small industrial leases on the city's Complicating this situation, the CPR managed the new land was well within sight. The city's acquisition of Crown provincial lands, which included .85 acres the south shore property Was crucial to the redevelop- strategically placed on the south side of the Creek and ment of the Creek. It allowed the central planning a smaller parcel, which divided the CPR's land on the authority for the area to implement its vision for the north side. Creek and actively pursue its redevelopment, 175 project, was established to prepare suitable proposals for the city's lands. The Study Group completed its final report in April 1972. The proposed policies were Vancouver's Development Plan intended to be the final step in general planning for False Creek and provide the framework for subsequent Rethinking, investigating, determining, and deciding zoning, subdivision layout, services and utilities, building, on land use concepts and policies for the redevelop- financing, and related activities. All of these reports ment of False Creek took almost six years, from March dealt with the Creek both as a whole and divided info 1968 when the council decided to reexamine its 10 subareas, defined on the basis of such obvious industrial land use policy to November 1973 when it physical boundaries as bridges and arterials. Immediate adopted a wide-ranging set of policies for redevelop- development was proposed for the city-owned land ment throughout the Creek and a conceptual land use lying between the Granville and Connaught Bridges. plan for a major block of the city's south side land. The city rezoned the whole False Creek basin in July In March 1968 the council agreed that False Creek 1974 from a heavy industrial district to a comprehensive should be included with the policy plan then being development district. This new zoning allowed multiple prepared for the downtown and that discussions should uses to locate in the same district. The Off icia( be started with the National Harbours. Board concerning Development Plan adopted by the city council includes Granville Island. This work led to the preparation of five mandatory requirements and design guidelines, provid- alternative development concepts for the Creek, which ing qualitative guidance, and allowing for variable were presented to the council in November 1969 and interpretation for individual situations. The purpose of the then issued in January 1970 expressly to obtain public Official Development Plan was to encourage redevelop- opinions on the options. As a result of the responses ment of False Creek in the direction set by the policy received, the council indicated in April of 1970 that guidelines (social viability, economic soundness, confor- residential, recreational, and commercial uses in the mity with the city's lifestyle, and income mix require- Creek should be considered in further planning depart- ments) adopted by the city.' ment work. In November 1970, the False Creek Study Group, For more information about the project's development and evolution, consisting of the consultants and the assistant director of see Roth Rodger, Creating a Livable Inner City Community- planning who was responsible for the False Creek Vdncouver@ Experience (Vancouver, B.C.: Agency Press Limited, 1976). @Al f 1.4 WN WE N I AC -"in OL 5-65 A view of False Creek and downtown Vancouver from Fairview slopes. 176 False Creek South Shore The False Creek South Shore project lies on a thin strip of relatively level land on the Creek's south shore. Rising to the north from the opposite shore of the Creek is overall architectural coordination of the project. The Vancouver's central business district, and to the south is sponsors, either builders/developers or nonprofit or co-op Fairview Slopes, now undergoing redevelopment as a groups, were selected by the council in March 1975 and residential area. Redevelopment was difficult because were charged with four prime responsibilities: the site had severe constraints: industry with long-term e to hire an architect; leases, rail lines, dominating bridges, industrial noise and e to hire a contractor; pollution, and poor soil conditions. On the positive side, e to administer applications from people interested in the city owned the land, there were few residents and the type of housing the sponsor was producing; they were mostly living on boats, there were no e to involve these people in the on-going design. replotting problems, and there were only a few deteriorating industrial buildings that could be easily demolished., To direct and coordinate all aspects of the project, the Vancouver city council in early 1973 hired a local commercial developer as project manager, who reports directly to the city council. The project manager and his staff of an assistant project manager, a development coordinator, and a secretary form the False Creek Development Group. In addition, the city council fl selected a design scheme from a 1974 competition of three mulfi-disciplinary designer-developer teams. The Development Group formed a development team, which consists of the Development Group, a developer who would build the market residential and commercial portions of the scheme and offer cost advice to the sponsor groups who were selected to build the nonmarket residential portions of the scheme, and a coordinating architect who would supervise the 5-66 Waterfront walkways provide public access to the water's edge and the two marinas at False Creek South Shore. V@ K0 - 6 FISHERMAN S WHARF FALSE CREEK r --- MARINA G nvill sland False Creek HEATHER civic SLAN MARINA PARK LIVEABOARD MARINA Alder Ba) =7=U '7 i@@, @ LIN CHAKLL@ PARK ho 0013 6TH AVENUE 5-67 The False Creek South Shore site plan. 177 Vancouver Parks Board. West of this, in front of the Spruce neighborhood, is a 100-berth co-op marina, currently consisting of half liveaboards (floating commu- nities that have all the services available to land lots) and half recreational boats. Phase two, which is nearing completion, encompasses approximately 21 acres between the west end of phase o and the Granville Street Bridge. Designed for 608 ne units clustered in six different waterfront enclaves of low-, mid-, and high-rise structures, the phase two concept provides for additional parkland, local commercial and community facilities, and public access to the water and wafer-related activities. Construction is underway in the 335-unif third phase, which will contain townhouses and one- and two-story condominiums, Land Leasing The city council adopted a policy of leasing its land in False Creek partially to achieve its lifestyle and income mix and partially to retain the long-term development rights for future generations. The city L adopted a policy of reducing or writing down the lease value of the land in order to make False Creek affordable for such groups as senior citizens and the handicapped. The land leasing program also had to meet a council policy that the city would recover all 5-68 The residential units were designed to provide spectacular views of front-end costs resulting from the acquisition of the land, False Creek and downtown Vancouver, associated land servicing, and consultant and develop- ment group expenses from the development of the residential and commercial areas. This excluded costs To help the individual sponsors, the Development for the school, marina, and the regional park, which Group worked up financial pro formas for each of the were recoverable from the school board, marina housing programs and related them to the particular operations, and the city general fund, respectively. False Creek requirements. Also, the Development Group Some developers, financial institutions, and the provin- relied heavily on several city departments such as cial government had problems with the leasing pro- Engineering and Parks for major portions of the redevel- gram, but their objections were ultimately overcome. opment. Once a preliminary development concept of a The duration of the original land leases is 60 years.3 At sponsor was approved by the Development Group, the end of the term of the lease (2038 A.D.), the city has approvals for a development permit and building permit the option to renew the lease for market units only and followed the usual city department procedures. for terms of not less than five years or purchase the The 1,795-unit False Creek project is being developed lessee-owner's interest at the then fair market value. in three phases. The first phase is completed. It consists Terms for the market and nonmarket portions vary, For of two distinct neighborhoods (the Heather and the example, the basic market land lease for phase one is Spruce neighborhoods) containing 852 units and housing valued at an average of $12 per square foot of gross a population of approximately 2,150 people. Separating building area. According to the location within this the two neighborhoods is a 15.5-acre regional park with phase, the value may vary from $6.00 to $15.50 per pathways, small ponds, and waterfront walkWayS.2 square foot. The market condominium purchaser has the Adjoining the park at the west end is a 320-sfudent choice of four payment options, from varying interest elementary school and a playground. Eighty-eight and lease rates to outright lease purchase. The non- thousand square feet of commercial space is concen- market leases are scaled in order to achieve affordabil- frafed mainly in the Leg-in-Boof Square located in the ity for the mix of incomes, and they vary in recovery Heather (eastern) neighborhood. In front of this neighbor- figures. In phase one, all nonmarkef leases are revalued hood is a 250-boat civic marina operated by the city's after year 30. From phase two on, all nonmarket leases were required to be prepaid for the full term (a 2 The regional park was treated differently from local and neighborhood condition imposed by the funding authority). parks. Because it was to serve the broader community its cost was not covered by the land rents from the south shore development but from general revenues whereas the cost of the local parks was recovered 3 The most recent nonmarket lease was for only a 40-year term in order from the land rents. to reduce the city's land write-down in an inflated market. 178 Planning and Design The design concept for phase one creates neighbor- hoods out of housing clusters, each of which is divided into enclaves from 30 to 130 units per acre. The housing enclaves are formed in donuf-like shapes, which allows each unit the advantage of sunlight through one exposure and a view through the other, creating a definite public and private side to each unit. The center of each enclave represents a semi-private open space designed for each individual enclave. Heavy landscap- ing was introduced as a means of obscuring visual signs of larger, expensive units from smaller, subsidized units. A high qualify of exterior appearance was required to avoid obvious denotafions of wealth. The relatively high proportion of open space in phase one was primarily the result of the debate between residential and recreational redevelopment options for the area. The first phase can be described as housing in a park, and specifically housing in a park for families with young U children. Vehicular access to the phase one community is by an of-grade crossing of Heather Street and by a grade- 1 separated crossing over the railroad at Alder Street. Another entrance to the project is Anderson Street, which also provides access to Granville Island. A bus system 5-69 Phase two of the project consists of 608 residential units clustered in links each neighborhood With the adjacent Fairview six different waterfront enclaves. area and the downtown. The development has a two- street concept-one for vehicular traffic and one for from a plan prepared by the phase two coordinating pedestrians, Vehicles are limited mostly to the soufh side architects who were different from those for phase one. of the community, with traffic kept away from the Phase three has gone through two ADPs because the waterfront in order to create a linear waterfront park. development on which the first was based fell through Only moving cars and vehicles for emergencies, and the ADP had to be radically amended to accom- maintenance, and handicapped people are permitted modate the proposal put forward by the subsequent on pedestrian streets, There is a 60-foof-wide pedestrian developer Each ADP is the product of long negotiations walkway which crosses over Sixth Avenue and the between various city departments and the developer railway at Laurel Street, providing a park-like link info the Consequently, many design features in phase one, such Fairview community from the regional park. as the donut motif, were not carried out in the rest of the development. Each phase is, in effect, designed quite Development Controls differently, though all respond to the direction set by the Official Development Plan. Each of the three phases of the False Creek South Shore was developed by different development teams Resident Mix and Self-Selection according to different Area Development Plans (ADPs), Area Developments Plans are as specific and restrictive A basic redevelopment policy (particularly for phase as the Official Development Plan is general and open. one) was that the project household income mix should The ADPs are the specific zoning documents which be similar to the mix found in Greater Vancouver, with implement the intent of the Official Development Plan. special emphasis on providing housing opportunities for The ADP stipulates the maximum number of units young families with children. The income mix for the allowed on the site, the minimum areas of open space, project is roughly one-third each for low-, moderate-, the proposed subdivision and building envelopes (height and high-income groups. and built area), and the number of parking stalls to be Mixing different socioeconomic groups has not been provided for specific areas of False Creek. generally successful in the post. However, as a result of An ADP is usually derived from a specific develop- considerable research, four principles concerning living menf proposal put forward by a developer. The ADP for in False Creek emerged: not mixing household types phase one was derived from the winning entry in the (find best coexistence among the various groups); architectural competition held in 1974. The ADP for refaining free choice or self-selection of an enclave and phase two, which was adopted in 1976, was derived housing type by future residents; subsidizing people 179 Community Association In 1976 the False Creek Residents Council was set up on an interim basis. Meetings were open to all and an ad hoc residents' committee was formed to represent the community in all matters affecting residents. In early rather than units; and identifying future residents as early 1978 a more formal structure was adopted by way of a as possible. A basic belief, then, was that unless future nonprofit society called the False Creek Community residents understood and could feel involved in the kind Association. Two representatives from each housing of community they were moving into prior to that move, group are represented in the association. Membership is unfulfilled expectations and conflicts would result. Also, if voluntary and no set membership fee has been people were involved early and had a hand in creating established at this time since not all the groups are their environment, this would make them more satisfied represented yet, The Community Association is currently with it. An educational program consisting of a looking into matters such as general building and newsletter and meetings (after construction started) was ground maintenance, encouragement of group mem- helpful to inform future residents about their emerging bership, interpretation of association bylaws, and resolu- community. tion of resident conflicts. People expressing an interest in phase one were contacted about living in False Creek in early 1975 by Experience Gained the Development Group. After the interested party completed a questionnaire, the Development Group The False Creek redevelopment program clearly submitted the questionnaire to an appropriate sponsor illustrates how cooperative development between the or sponsors. Other future residents were identified as the public and private sectors can overcome some of the result of displays, brochures, and speeches made by the more serious obstacles to waterfront development. The Development Group and the sponsors. redevelopment approach is based on the belief that innovative results are achieved by using innovative techniques. In this respect, the city of Vancouver was willing to challenge existing formats and standards when if was necessary to do so. This would not have been possible without the enthusiastic leadership of key members of the city council. The development of False Creek South Shore required the city to recognize explicitly that if embarked on an inherently risky venture with the same risks usually t assumed by private developers. The city invested an unusual amount of its own staff time and funds in the project. This investment was critically important, however, in that it gave the project credibility in the eyes of private developers. The support of senior representatives of local govern- ment agencies is essential to the successful develop- ment of a complex redevelopment program like False Creek, Policies must be clearly defined between the development organization and the policymakers, This provides the continuity and accountability necessary to support a public/private partnership. One of the strengths of the development strategy is the way it combines planning and implementation within one framework. This allows development to occur entally in response to various dynamic forces. For increm a large-scale project with many elements like False Creek, this development approach is extremely valu- able. ro ems mus e reso ve s mu aneous y, no sequentially, in order to avoid costly delays. In the case of False Creek, the development organization was able GZDI@ to win the confidence of the development industry and the financial community by demonstrating that it could deliver on its promises and commitments and translate 900 plans into action. 5-70 Commercial areas are integrated into the development of each phase of False Creek South Shore, 180 In the development of False Creek South Shore, the pre-identification of both residents and developers allowed the involvement of residents in planning, design, construction, and management. It led to a new system of client-developer relationships in which the city automobile use. While automobile use is lower than participated with many other groups as both client and elsewhere, automobile ownership is not, with the result developer The city also achieved development objec- that there is continuing pressure for the city to supply tives of a kind that the private sector normally cannot additional resident parking, This would be difficult and achieve. In addition, the detailed financial pro formals expensive to do without creating parking problems for by the False Creek South Shore Development Group visitors. The street system was also a problem at first for proved to be an invaluable fool with the sponsors as residents because of its very innovative character, but well as with the government agencies for both control- residents appear to have become used to its anti- ling costs and establishing budgets, vehicle intent and are now among its greatest support- The integration of various income groups in the ers. However, the hierarchical street system still confuses development of False Creek South Shore has been visitors and makes access to the waterfront difficult. successful. The market units have sold well, indicating no. I Another problem is the feeling on the part of citizens in reluctance on the part of individual purchasers to buy a other areas of Vancouver that the South Shore develop- dwelling in a socially mixed area. A greater problem ment is an isolated enclave in the city. This is to some has been the mixing of families with children and degree unavoidable because of the presence of the childless households, There have been some problems railway which allows 6th Avenue to be a semi-limited with this, largely due to specific design errors, but in access roadway, acting as a barrier between False general the low density and large amount of open Creek South Shore and Fairview Slopes and beyond. space has diluted any real conflict, Higher density There are, however, design features which aggravate projects could experience more difficulty in this regard the sense of isolation, Phase one of the development in and with mixed housing types in general. particular turned its back on the railway and hence the The parking and circulation systems of False Creek rest of the city by design, and this was probably an error South Shore have presented some problems. Parking A lesson for other developments in similar positions is that was reduced on the South Shore with little being great care should be taken to ensure a successful provided for second cars. This was done in expectation integration of the new development with the rest of the that the location would allow transit to substitute for city. J -A-t er "A 5-71 The parking and circulation systems at False Creek South Shore have presented some problems primarily because the project anticipated greater transit use rather than automobile use, 181 5-12 Project Data-South Shore, (Phase 1) Land 4siin'f'orm"a'ti'o'n--:"'-'^@-'' """""Land Use Plan: Acres Percent Site Area:,52-4 acres- Development Areas ... ......... ...... . @ 0. 2-8 38.7 Dwelling -Units: 852, (Residential4 and Commercia[5) Projected Population: 2,150 (1W91 Neighborhood Park .. @ ........ .......... .... 8,65 W5 Average Density: - School .......... .......... 2.00 3,8 Gross: 16A du. per acre Circulation ............ ................ 5.95 %4 Net: 42.5 d.u. per acre2 City Park ......... ........................ J&50 29.6 Parking: Total ......... ......... __-..1-11. 152.38 100.0 Resident --owner 1 space per d,u@, Unit Information --rental . ....... 1/2 space per d.u. (Typical Examples): Market Nonprofit --handicapped .1/6 space per du. - Condominium Rental Co-op Visitor . . @....... 160 spaces total,3 Size (sq, ft.) ............ 1,100 890 1,275 Commercial I space per 760 Price-sale , @ ...... 1, * , , , ....., $93,5006 $4W6 sq. ft. of gross --rental .... ........... plus land lease $3306 leasable area Bedrooms . ........ ..... 2 2 3 Bathrooms ....... ......... Unit Mix: Limited Dividend Hand!- & Non- capped Owner- Nonprofit prof it & ship Co-op Rental -Seniors Total Studio 6 @ 0 19 109 128 I Bedroom 27 9 70 46 152 2 Bedroom 154, 17 98 0 269 3 Bedroom 97 144 62 0 303 Total 278 170 249 155 852- 6 Economic Information: Notes: Land Lease: $6.00 to $15.50 per sq. ft.71 1 In addition, there are 100 liveaboards Developme ht ?,@osts: and 250 marina berths. Costs Source of Financing 2 Based on the site area leased to a Serviced -land f6r residential and cleveloper@ net density ranges from 29.4 commercial developments..-, -8,000.000 C,M.HC.8 & City to '132.6 d.u. per acre. Serviced la nd. for park -sIcIhod, - - 3 SiXty spaces are In the Spruce and marina .............. 5,700,000 neighborhood and 100 in the Heather ; , neighborhood, Residential market and semi- Bank of Montreal plus 4 This includes common areas inside mprkety 20,000,000 private eqpit I 'nits I 1 '11-- y,__ @, housing complex clusters, Residential nonmorket units ..... 20,000,000 C.M.H.C.8 Mortgages 5 This includes retail and offices within the plus some private . housing blocks,, equity and Provincial 15 All cost figures are in Canadian dollars. Government grants 7 Lease duration is,60 years (until 2038 Commercial -facilities- A.D.) with four options of financing. At 88,000 s% ft. Private the end of ft lease, the city must Marina facilities other than land 850,000 City either renew the lease or purchase the School Building .................. 2,000,000 School Board and improvements tthe home) at the then Provincial Government market value, Total .......... 1 $60,960,000 13 Canada Mortgage and Housing Construction-' Corporation, Nonmorket: $38 to $42 per sq. ft. Market, $65 t6 $85 per sq, ft. Altoccitionot -f ront-End Expenditures,, (1978 -estimate): Development-Phase I ... ................... $,8=01000 .. @Phose, 11 .... 61-300,000 ............... ''' -Recaverablefrorrv- Marina, and School- ....... 2;2W,000 Public Sector ....... ......... 4,100,000 total ...... 00,1@09,060 , 182 Project Data-South Shore (Phc(se 2) Land Use Information: Land Use Plan: Site Area: 20.7 gross acres Acres Percent Dwelling Units: 608 Development Area ............................. 9.2 44,5 Average Density: park ................ ......... ...... ...... 5.0 24.1 Gross: 29.4 d.u, per acre Circulation .. @ ................................. 6,5 31.4 ,Net: 66 d.u. per acre' Total .......................... _ ............. 20.7 100.0 Parking: Resident Unit Information (Typical Exomples--1982): --owner ........... 1 space pe 'r d.u., 2 spaces for 3 Market Nonprofit Nonprofit bedroom or larger Condominium Rental Co-op -nonprofit co-op ..1 space per d.u. Size (sq. ft.) ................. 1,100 890 1,100 -nonprofit rental . 2/3 space per d.u., Price --- Lsale ........ ... _.. $170,000 - - -senior .......... 1/6 space per d.u. --rental ............... - $400 $500 Visitor ............ 200 spaces total Bedrooms .................. 2 Z 3 Commercial ...... Variable, per city Bathrooms .......... 2 parking bylaw Unit MIx:2 Ownership Nonprofit Nonprofit Co-op Dividend Rental Total Studio (Senior) 0 0 117 117 1 Bedroom. . ...... ... 63 44 45 152 2 Bedroom ........... 126 78 34 238 3 Bedroom+_ @ ...... 33 60 8 101 Total ......... 222 182 204 608 Economic Information:3 Notes: Land Lease: $10.00 to $30.00 per sq, ft.4 Based on the site area leased to a Development Costs: developer, net density ranges from 40 costs Source of Financing to 243 units per acre, Serviced land for residential and 2Social mix has been achieved by commercial developments ..... $ 3,600,000 allocating land to specific sponsors building for specific groups. By ensuring Serviced land for park ........... 800,000. that two- and three-bedroom units are Visitor parking garage. @ ......... 400,000 built, an opportunity has been created Development implementation .... 1,500,000 for families to live in False Creek. There Total front-end expenditures ...... $.6,300,000 C.M,H.C.5and City is no requirement that all two- or three- bedroom units house families. Construction: costs Source of Financing 3AII costs ore in Canadian dollars. Market ($90-$120 per sq. ft.) @ ..... $35,000,000 Private 4Lease duration is 60 years (until 2043) Nonmarket ($50-$70 per sq. ft.) ... 18,000,000 Private with four options of financing for the Total ........... ......... $66,ooo,ooo market developments. At the end of the lease, the city must purchase the improvements and the then market value, For the nonmarket projects, the leases are prepaid and, when terminated, are surrendered to the city without compensation. 5 Canada Mortgage and Housing Corporation. Planning and Development Coordinating Developer: Coordinating Architects: Coordinator: Frank Stanzl Construction Ltd. Thompson, Berwick, Pratt & False Creek Development Group 6625 Fraser Street Partners 453 West 12th Avenue Vancouver, British Columbia 1553 Robson Street ,Vancouver, British Columbia Canada V5X 3T6 Vancouver, British Columbia Canada V5Y 1V4 (604) 321-6106 Canada V6G IC6 (604) 873-7207 (604) 682-154111 183 Since all of the land is federally owned, the city does not control land use or design. The project is not being Granville Island developed according to a zoning plan, a binding land use plan, a fixed economic pro forma, or other Granville Island, located within the False Creek conventional development factors normally applied to a redevelopment area, is a 38-acre manmade island project of this scale. The only criterion is that there be no which is being recycled from a decaying industrial and operating deficit, Revenues generated from leases pay warehousing area to a multiuse development containing the project's operating costs. offices, theaters, restaurants, a public market, craft Granville Island is ideally located and is an integral studios, and a variety of retail shops, The objective is to part of the False Creek Redevelopment Area. It is provide a contemporary "public place" and a major adjacent to the False Creek South Shore project, whose recreational resource for use by the residents of the False residents provide a ready market, and it is also adjacent Creek South Shore project and by the broader Van- to downtown, In fact, the Granville Bridge romp, which is couver community Therefore, the various activities a major access route to downtown Vancouver, rises provided in the recycling of Granville Island are highly directly above the island. The island was once a public in nature and encourage user involvement and sandbar in False Creek '. In 1913, a bulkhead was built participation, with an emphasis on a cultural, educa- and silt was dredged from False Creek and pumped tional, and recreational mix rather than purely commer- onto the site to create a new industrial area, At the time cial uses. the planning process for the redevelopment of Granville Granville Island is owned by the Canadian govern- Island was initiated in 1973, the island contained several ment and the idea for its redevelopment was generated industries which were in operation, including a cement in 1972 by one of Vancouver's Members of Parliament. mixing plant and a steel factory It also contained some Arrangements were made for a study of Granville lslancl@ vacant buildings, a number of which were usable. The to be commissioned through Canada Mortgage and street system was convoluted and there was no open Housing Corporation. As a result of this study, which space. Some of the existing industries were too large provided the initial framework of objectives, concept and costly to relocate, However, the site's strategic plans, development strategy, and the necessary admin- location and its single ownership presented a unique isfrative structure, the federal government made a major development opportunity. commitment to invest $25 million in the redevelopment A key planning and design objective was to re- of the island, Approximately $11 million of this total was develop the island while maintaining its original feel. used to buy out the remaining leases on industrial Therefore, rather than typically recycling industrial and properties which were to be redeveloped for other uses. warehouse buildings for retail and office uses only, the In 1976, the Granville Island Trust (comprised originally redevelopment has retained some of the existing of five and now of seven members of the public) was industries and contains a mix of cultural, educational, appointed to direct the island's redevelopment. The Trust commercial, and industrial uses. decided from the outset that some of the island's In designing the project's open spaces, the underlying industrial uses should be retained and that the objective objective was to allow the multiple use of a place. For should be to develop a public recreation place which example, one portion of the development can function would be woven around the existing uses and the as a parking lot, an outdoor market, a summer theater existing street pattern. The Trust engaged a team of square, or a giant backgammon board. The streets on urban design consultants to: assist the Canada Mort- the island have the appearance of pedestrian places gage and Housing Corporation (the arm of the federal into which automobiles are allowed t6 intrude. This government administering the project) in, arriving at an integration of pedestrian and vehicular traffic has appropriate development program and implementation worked well. The surface material for the streets strategies; establish th'e street network and open space: (interlocking concrete pavers) was selected for perma- recycle specific buildings as key public projects; and nence, identification with pedestrian use, and easy establish specific architectural guidelines for other access to underground utilities without the need for building projects as they develop. One of the key factors subsequent patching. The surface also was designed to in the project's success has been the entrepreneurial role be continuous from building to building in order to played by the federal government through Canada visually reduce the width of the space and to tie Mortgage and Housing Corporation. In essence, the together opposing building facades. Conventional government has created a project which will eventually curbs, gutters, and boulevards were not used for this stimulate further development through private invest- reason, and the driving surface edge was defined ment, instead by trees, bollards, and timber poles. 184 Parking is distributed throughout the island close to the areas people are heading for. Trees planted between car stalls in the small parking lots create 'the illusion of massing and connections through those open spaces. The entire periphery of the island is unobstructed and a pedestrian walkway was developed to enable visitors to enjoy the unique waterfront setting. A system of pipes in bright colors supported by heavy timber poles runs between the buildings and through the open spaces and creates the major unifying element for percent luxury units; up to 75 percent middle-income the project, The pipes also contain the street lighting, units; and ore than 15 percent nonmark6t (subsi- and provide support for canvas canopies to protect m pedestrians during inclement weather In addition, dized) units. Housing construction is expected to start in builders are encouraged to continue to use stucc 'a and the spring of 1983 at the western end of the site. corrugated sheet metal, the two traditional cladding Redevelopment of other residential areas Will not start materials used on the island for building exteriors. This until after Expo '86. has helped to contribute to the project's unified o Commercial development, Over the first'six to eight character. In order to add interest and excitement to the years of the project, approximately 3.3 million square project, different colors have been used for almost every feet of office and retail space will be developed on 19 building. Bright colors, traditionally associated with acres of land. It is expected that an additional 4.2 to industry, were specified. 4.4 million square feet of commercial space will be developed later on, depending on city needs, growth, British Columbia Place and urban policies. As many as 1,000 hotel rooms are also planned. Finally, a 60,000-seat, covered stadium British Columbia Place is a 232-acre mixed-use is currently under construction and is scheduled for development which is being located along False Creek completion in 1983, directly across from Granville Island and the False Creek o Parks. Approximately 86 acres are being reserved for South Shore project, The site is owned by the province of parks and open space, Great emphasis is also being British Columbia. Planning for the project is currently placed on the provision of high quality landscaping as being completed and it is expected that development well as distinctive street furniture, lighting, and paving will be started late in 1982 or early in 1983, As with the materials. False Creek South Shore and Granville Island projects, 9 Transportation, The planning concept is based on a the development is owned and is being administered by transit-first policy. Every effort is being made to the public sector (in this case, the province of British maximize the use of buses and the potential offered Columbia) and revenues will be earned by leasing by the proximity of the city's ALRT system fit is parcels to private developers. British Columbia Place will expected that this rail system will be operational in be developed over about 20 years. Expo '86-fhe 1986), The project's major roadway system is designed World's Fair, which will be themed on transportation-will to maximize the convenience of public transit and to occupy approximately 140 acres of the total site until minimize the disruption of existing neighborhoods 1987. After this time, this remaining land will also be which are adjacent to the site, developed. While the plans for British Columbia Place are The concept plan for British Columbia Place calls for undergoing final revision, the redeveloped areas on the following development and facilities: Granville Island and the South Shore are proof that Residential development Approximately 80 acres public/private development efforts can transform an have been set aside for housing and mixed residential/ underutilized decaying waterfront into a viable and commercial development capable of supporting exciting community. The new challenge to Vancouver is more than 12,000 housing units, The proposed density to build upon the experiences of the past five years and will average 125 to 150 dwelling units per acre. The to continue to strive for creativity and innovation in the housing mix is expected to be as follows: about 10 development of British Columbia Place. 185 History The Palmer Point site, a basically flat peninsula pointing south, has a long and interesting history. During the American Revolution the harbor, which is in a Palmer Point, centrally located section of Greenwich called Cos Cob, was used by General Putnam to spy on the British from wholeboofs. A windmill-powered salfworks occupied the Greenwich peninsula and made salt for ammunition. A grist mill was built on the site in 1763. Driven by water flowing out of the millpond during waning tides, the mill ground grain Connecticut for over a hundred years, before being destroyed by a Palmer Point contrasts sharply with most of the other fire in the 1890s. Nearby a general store and post office case study projects both in terms of scale and public were the center of everyday life in the late 1800s. During sector involvement. Unlike the large-scale waterfront this period, Greenwich was a popular summer resort for redevelopment programs, this small, predominantly wealthy New Yorkers and Cos Cob was an active artists' residential project was privately financed and devel- colony. oped. Following the Civil War prosperous seafarers settled in The 74-unif luxury condominium community is located the area, The neighboring residential streets are still on a five-acre waterfront site overlooking the Mianus graced with their houses, easily identifiable by their River in Greenwich, Connecticut. The site is close to handsome widows'walks. In the 1840s the Palmer family where the river flows info the Long Island Sound and, founded the Palmer and Duff shipyard on the site and prior to development, was occupied by several old, later generations of Palmers operated a large marine dilapidated industrial buildings. The project consists of engine business on the point. four separate 21/2-story apartment buildings, a luxury 200- Site Development seat waterfront restaurant, an 8,000-square-foot office building built for firms in marine-relafed businesses, and The property was purchased in 1977 and construction a 154-slip operating marina. followed in 1978. The industrial buildings were demol- ished and replaced by the new construction. The marina was upgraded and leased to an independent operator Due to the location and history of the site, extensive site improvements were necessary in order to accommo- date the proposed development. The floor level of the industrial buildings that were demolished and removed was far below the elevation called for by federal flood insurance guidelines. Thus, the site had to be built up with great amounts of fill prior to development. The established floodplain is 12.7 feet above mean sea level and all occupied or living space has to be above that level. To meet this criteria, the developer had two options: either use special engineering fill material or use piles. The developer selected the latter option primarily for cost reasons. All storm drainage is tied into the municipal system. The city of Greenwich does not allow any direct drainage discharge to the open sea. The total cost for site improvements was approximately $1 million, The eveloper was also required to make off-site improve- ments costing approximately $100,000, The adjoining land is primarily residential with marine- related commercial uses located along the Mianus 'M MAI 011 River Shops and city services are within walking distance of the project, as is a train station for Conrail's New York-Boston main line. Although the property is situated just to the south of Interstate 95, access to the thruway is approximately 1,5 miles away from the project. A little farther south of Palmer Point a major Conrail bridge crosses the river 5-73 Palmer Point is a 74-unit condominium community located on a five-acre waterfront site. 186 ft AM M@Michael Boatymd Planning and Design The residential units at Palmer Point are oriented to take advantage of the waterfront setting. The structures are clustered on the site to provide physical as well as visual access to the water's edge. All of the units have fireplaces and balconies with many of the balconies directly overlooking the river. The one-bedroom apart- ments provide approximately 950 square feet of living space and the two-bedroom units provide 1,250 square feet. Since all of the apartments have either direct walk N in or walk-up entrances, there are no common areas OX such as elevators, staircases, or hallways, Outdoor open Tennis Club spaces within the project are carefully defined. A pedestrian walkway system covers the site with curving ME walkways and a boardwalk along the water's edge. The project is intensely landscaped with plant materials and stone walls to provide screening and privacy, soften building surfaces, and create comfortable attractive areas for outdoor activities. Outdoor lighting is provided by brass and copper marine lanterns. Vehicular traffic does not pass through the site. A F single entrance allows vehicular access while maintain- Ing privacy and security for residents. Residential parking, provided at 1.6 spaces per unit, is covered and "Ja ib W located at approximately the floodplain elevation 'FT'- underneath the dwelling units. All of the apartments are U - constructed well above the floodplain elevation. Surface parking is provided near each building for guests. The architectural style is sophisticated and modern. M The primary exterior building materials are pale red brick and natural wood. The combination of brick and wood, which is often used diagonally, is appropriate for the waterfront setting, The brick detailing is used throughout the project and conveys a sense of warmth 5-74 Palmer Point site plan. and sturdiness. The overall effect is a contemporary expression of the New England maritime heritage. Regulations and Permits AA M. ism "41-- -7 As is the case with most waterfront sites, Palmer Point was subjected to many development regulations and approvals. The site is zoned WB-waterfront business. This category permits wafer-related commercial uses and residential uses with a maximum floor area ratio of 0.5. A A- minimum of 20 percent should be devoted to marine- V related businesses such as yachting publications, boat brokerage, marine supplies, and so forth. In addition, building height is restricted to 21/2 stories or 35 feet maximum height. In the case of a gable roof, mean height is considered the topmost point of the roof and any space under the gable is considered as half a story. Another stipulation was for public access. All public facilities, including restaurants and marina slips, required public access easements. Before the developer could proceed with the project he was required to obtain site plan approval from the town zoning board and design approval from the architectural review board. 5-75 The primary exterior building materials are pale red brick and natural wood. 187 V V !ML VAI Management and Maintenance Every condominium owner is a member of the Palmer Point Condominium Association. The agreement calls for all owners to pay for common charges which include central heating, air conditioning, snow removal, open space maintenance and repair, and so forth. The normal charge is about $165 per month. The association elects a board of trustees and a chairman. The board handles all administrative matters and discusses major issues and decisions during monthly meetings. Maintenance is more expensive for Palmer Point than it is for comparable residential developments in the Greenwich area. The higher costs are attributable to the additional traffic and use generated by the Marina operation and restaurant. Marketing 5-76 Residential units are oriented to take full advantage of the waterfront setting. There was a ready market in Greenwich for high quality living space in relatively smaller units. Thus, sales efforts were concentrated in Fairfield County, Connecti- The Marina cut. Local magazines and newspapers were used for advertising. In addition, project brochures were pre- As previously noted, the 154 marina slips existed prior pared that emphasized the local history of the area, This to the development of Palmer Point. The developer, approach reinforced the concept of waterfront living however, improved the overall condition of the marina within the limits of the city In the fall of 1979 the first by providing boardwalks and minor utility lines. The cost condominium units were offered for sale. Response has of these improvements was approximately $250,000. The been very positive but sales have been slowed by marina is leased to an independent operator. Although unfavorable interest rates and other financial uncertain- it is open to the general public, condominium owners ties. At this time, seven of the 74 units remain unsold. are given priority when renting the boat slips. The marina slips average 25 feet in length and the rental rate is $40 Experience Gained per linear foof per year. Since the marina was already in place and simply Although Palmer Point reused an old abandoned required upgrading, it was not subject to the numerous industrial site, development was not initiated by a public regulations and permits that generally pertain to marina agency or nonprofit organization as a catalyst for urban development. The significance of this circumstance revitalization. In this respect, much can be learned from cannot be overstated. In most cases, the regulatory Palmer Point because problems and opportunities process associated with marina development is time associated with the waterfront site were defined within a consuming and complex, Usually a developer is faced traditional development context, with several different agencies or governing authorities The fundamental key to the success of Palmer Point that have jurisdiction over development activity. Further- was that the amenities of the waterfront location more more, the cost of improving an existing facility is much than offset the undesirable characteristics of the site. The less expensive than constructing a new one. unusually high site engineering and construction costs M 11 . . . . . . . . .... ............ 5-77 Cross section drawing of the Palmer Point project, 188 associated with building on alluvial soils in a floodplain did not inflate the price of the residential units beyond a marketable value. In this respect, the large investment made in landscaping the project was well worth it since the quality of the site was significantly improved. By improving an existing marina, the project was not that was required to be provided for marine-related subject to the many regulations and approvals covering business could not be fulfilled. It would have been more new marina development in Connecticut. This was very sensible if the city allowed general purpose commercial important because securing the permits and approvals establishments to fill this space. for marina construction can be an expensive, time Leasing the marina to an independent operator was consuming process. In addition, many potential man- very important to the success of the project, The agemenf problems were avoided by leasing the marina developer recognized the potential risks involved with to an experienced operator. operating a marina facility and decided it was The mixed-use zoning requirement created difficulties desirable to allocate this responsibility to an experi- for the developer because of the very narrow range of enced operator. This also allowed the developer to commercial uses permitted by the ordinance. As if concentrate on developing the residential component of turned out, the 20 percent of the total floor area ratio the project. 5-78 Project Data-Palkner Point Land Use Information: Land Use Plan: Acres Percent Site Area: 5 acres Condominiums ............................... 3 60 Total Dwelling Units: 74 Restaurant ............................ ....... 5 10 Project Density: Office ... ........ .................. ........ 6 10 Gross Density: 14.8 units/acre Marina Facilities . .............................. 1 20 Net Density- 25 units/acre Total ........ ................................ 5 100 ParkIng Spaces: 1.6/unit Economic Information: Land Acquisition Cost: $1,400,000 Site Improvement Cost: $ 450,000 Landscaping: $ 300,0001 Construction Costs: $4,700,000 Unit Information: Monthly Unit Type Price Ronge2 Unit Size Bedrooms Bathrooms Common Charge I Bedroom & Loft $127,000-$14,5,000 1,000 sq. ft. 1 1 $162 2 Bedroom $179,000-$259,000 1,250 sq. ft, 2 2 $162 Notes: Includes boardwalk. 2 As of 1981. Developer: Planning/Architecture: Collins Development Corporation Yankee Planning, 43 Lindstrom Road 43 Lindstrom Road Stamford, Connecticut 06902 Stamford. Connecticut 06902 (203) 357-0123 (208) 357-0089 189 20th century and was first used by the company for the storage of coal and later for the storage of oil and gasoline. In 1974, the Pickering Company relocated its offices in downtown Salem and its storage tanks in another part of the city adjacent to a power plant, thus leaving the wharf unused. At this time, an agreement was reached whereby the city was given a two-year option on the wharf from the Pickering Company in Pickering Wharf return for giving the company permission to relocate its storage tanks. This option enabled the city to insure that development of the wharf would be in keeping with the Salem, traditional character of Salem and would be attractive to tourists without destroying the residents' enjoyment of their community In addition, the company assured the Massachusetts city that the land would be made available for devel- opment at one-half its appraised value of $560,000. Pickering Wharf, an unsightly abandoned wharf in The site was purchased by the developer from the city Salem, Massachusetts, has been recycled into a 5.2- in the spring of 1976, on the lost day of the city's two- acre commercial, residential, and theater complex. Its year option on the land. The project is a joint venture of 12 two-, three-, and four-story buildings have been the developer and a local savings bank. The bank's designed to complement the scale and character of participation in the development, as 50 percent owners, 18th century Salem and contain shops or restaurants on was made possible under a little-used section of the ground floor and either offices or condominium Massachusetts's savings bank regulations, called the apartments on the upper levels. The project illustrates "leeway" bill, which permits a savings bank to use up to how the combination of effective public sector leader- three percent of its deposits in investment ventures ship and private sector entrepreneurial skills can over- outside of conventional savings bank areas. come the obstacles to urban waterfront development. History Site Development Pickering Wharf, built in the 1700s, was the first of At the time the site was purchased by the developer, it Salem's great wharfs, Originally known as Union Wharf, it was occupied by 11 storage tanks, a one-story block was purchased by the Pickering Company early in the storage building in poor condition, assorted warehouses, and 1,000 feet of deteriorating bulkhead. It contained no buildings of historic value. However, the site's waterfront location and proximity to Salem's downtown and tourist attractions made it a prime area for development. The wharf is several blocks from the core of historic Salem, adjacent to the National Maritime Park, and within a five-minute walk of major attractions such as the House of the Seven Gables, the Custom House, and the Witch Museum. Approximately 500,000 people live within a 10- mile radius of the site. A detailed agreement between the developer and the city required, among other things, that demolition of the existing buildings and storage tanks, construction, and project completion would fake place within a specified period, and that public access to the waterfront would be maintained. The project was subject to the review and approval of the Salem Redevelop- menf Authority and the Salem Planning Department, as CY well as the state Department of Environmental Quality t@5 Engineering, A zoning change was also required, involving the extension of the city's mixed-use urban renewal zone from downtown to include the wharf, 0 Construction was started in 1977 and the project was completed in May 1980. 5-79 Pickering Wharf has been redeveloped into a commercial and residential complex. 190 Urban Design The basic urban design concept was to recreate a traditional New England clockside environment and to respect and complement the scale and character of old Salem. The mix of retail, office, and residential uses has assured an active setting 24 hours a day A pedestrian scale and atmosphere has been empha- sized throughout the project, thereby encouraging a bustling, streetscape environment reminiscent of Salem's waterfront in the 18th century. The buildings are oriented to form a progression of pedestrian ways and comfort- able open spaces which complement those in Salem's restored downtown. Surface materials have been geared for pedestrian traffic and consist of granite cobblestones, gross, and brick, Public pedestrian access to the waterfront is emphasized. Attractively landscaped open space with benches is provided along a portion of Avl@ the waterfront. In addition, public waterside access is assured by the provision of a walkway along the edge of the wharf and by the marina facilities. V The project contains only one interior street, which curves through the site and serves primarily as a pedestrian mall. Automobile and bus traffic on the site are tightly controlled, with vehicular access limited primarily to the perimeter of the site. Parking is isolated in several contained areas and reserved parking for residents is provided in two protected parking lots, one 5-80 The wharf was underused and in poor condition at the time it was located along the water at the southern edge of the site purchased by the developer. and the other concealed by buildings on fhe"west side of the curving main street. Parking areas also are designated for visitors to the museum and theater complex and for restaurant patrons. Parking is not &A 16.9. it A.. available on the site for daytime workers or tourists. Service areas for the restaurants are also isolated from J main public circulation. The project's various uses are carefully located. Retail 9 activity consisting of three restaurants, a specialty food cluster, and a variety of arts, crafts, and specialty shops has been restricted to the ground floors of all buildings, while off ices and condominium units ranging in size from IM 1,000 to 1,500 square feet have been limited to the upper floors. Buildings contain either all offices or all residences on the upper levels. Offices occupy the upper floors of those buildings located either on the inferior of the site or on those exterior portions of the site which are farthest from the water, The condominium units occupy the upper levels of buildings which are closest to the waterfront. This provides the residences with the dual advantages of superb views of the harbor and some separation from office activity. The project's three restaurants also are located to provide waterfront views and outdoor eating areas. 5-81 Pickering Wharf site plan, 191 Architecture and Engineering The buildings have a traditional New England design and are evocative in form, character, and materials of 18th century Salem. They are freestanding, two-, three-, and four-story, gable and hip-roofed structures with exteriors of either clapboards, shingles, or brick. Buildings closest to the water have cedar shingles so that their exteriors will weather naturally when exposed to the salt air, wind, and rain. Exterior colors reflect those popular in the Colonial period. While the buildings' design, materials, and detailing recall Salem's architectural vernacular, their floor plans and elevations do not follow 18th century tradition. Floor plans for the condominium units vary considerably and include lofts, duplexes, and fhrough-floor units. Units have either one or two-bedrooms and most have both an interior and exterior stairway entrance. They also feature fireplaces, large closets, stained exposed beams, out- door balconies, and skylights. A few units also contain wood-burning stoves as an alternative, non-fossil fuel M, @F heating source. One of the six buildings containing "L condominium units was equipped with an elevator to X2 -a provide access to several units specially designed for the handicapped. In addition, all shops and all areas of the site are accessible by wheelchair The project was constructed using concrete grade 017 beams on steel pile 's and building foundations are all concrete slabs on a grade. Construction on th6 ground floor of each building is steel columns and beams supporting wood floors, while woodframe mill-type 5-82 The project has a traditional New England design similar in form construction was used for the buildings' upper levels. All and character to the buildings of 18th century Salem, buildings are fully insulated from each other Energy conservation was also encouraged by providing a single HVAC system. Marketing The retail tenants were carefully chosen to provide shoppers with a pleasurable and exciting experience. The various shops complement each other and the duplication of similar shop types was avoided. Care was taken to provide the optimum mix within the project of price levels and merchandise. Retail tenants are primarily crafts shops and boutiques attracted by the unique character of both the project and the Salem area. Service stores such as groceries have not been included. The residential units were marketed extensively within X_ e Salem region. The marketing concept portrayed Pickering Wharf as an alternative to suburban living, sfressing its convenience and amenities. This approach was based on market studies that identified a demand for high quality inner city housing, The basic idea was to establish a special identity for the project that would appeal to this market. 5-83 The retail tenants were carefully selected to complement each other and provide the optimum mix of merchandise to shoppers. 192 Experience Gained The redevelopment of Pickering Wharf benefited greatly from Salem's long involvement in urban revitaliza- tion. The city's leadership recognized that the project advisable not to locate residences over top of restau- could act as a catalyst for the revitalization of the city's rants, Furthermore, the control of vehicular access to the waterfront and made special efforts to stimulate the site was important in establishing the desired pedestrian redevelopment of the wharf, Considering the site's atmosphere and in assuring that the reserved parking for strategic location as a link between the city's downtown residents was not used by retail patrons. and waterfront, the action taken by city officials was In the design of projects that attempt to recreate a highly appropriate, historic ambiance, if is important to balance design The project's complexity made the government ap- authenticity with contemporary practicality. For example, proval process unusually long and involved, despite the at Pickering Wharf instead of using traditional multifrome full cooperation of the city of Salem. A detailed analysis colonial windows for the retail space, the architects of the reviews required by the various agencies with used large, open frame windows that provide maximum jurisdiction over waterfront development would have visibility for shops and restaurants. This alteration greatly been very beneficial. It would have helped the enhances the ability of merchants to attract business. developer anticipate and perhaps even avoid many Phasing proved to be very significant at Pickering project delays. Wharf. The retail space was leased before the office Pickering Wharf has clearly demonstrated the impor- space, and the activity created by the various street tance of understanding functional relationships in a level shops made the upper level office space more mixed-use development of this type. If is imperative, for attractive. The developer also had the foresight to file instance, when combining residential and retail uses that condominium documents for the project's office and separate, reserved parking be provided for residents. In retail space. Although the space is presently being addition, the retail tenants closest to residential units rented, this action has provided the developer the must not generate excessive noise or odors and must flexibility to sell this space at a future date if circum- close each day at a reasonable hour In this respect it is stances require it. 5-84 Project Dato-Pickering Wharf Land Use Information: Land Use Plan: Site Area: 6.2 acres Acres Percent Gross Leasable Area (GLA): Buildings . . @ ................................... 1.9 36.0 Retail ............. 71,000 sq. ft. Parking/Circulation ............................. 1.5 30.0 Office ............ 30,000 sq, ft. Open Space/Landscaping ....... ............ 1.8 34,0 Residential ....... 67,000 sq, ft.' Total ..................... .................... 52 100.0 Theater Complex .. 12,500 sq, ft. Total ............. 180,500 sq. ft. Notes: Gross Building Area (GBA): Approximate total, There are 54 condominium units which range in size from 1,000 to 1,500 sq. ft. 207,575 sq. ft. 2 FAR equals GBA divided by total site area. Floor Area Ratio (FAR)2:92 3 Includes 60 spaces which are reserved for the residential units. Parking: 150 spaCeS3 Economic Information: Site Cost: $280,000 (1976) Site Improvement Cost: $1.7 million Total Project Cost: $10 million Developer: Architecture/Planning: Leasing Agent: Heritage Trust Co. of Salem ADD, Inc. Wilder-Manley Associates, Inc. P.O. Box 809 1166 Massachusetts Avenue Derby Building at Pickering Wharf Salem, Massachusetts 01970 Cambridge, Massachusetts 02138 Salem, Massachusetts 01970 (617) 745-5555 (617) 661-0165 (617) 745-9540 193 History Tacoma, Washington, is located on the shores of Commencement Bay, one of the few natural deepwater harbors in the world. Around the turn of the century, Tacomans boasted that the one-mile-long string of City Waterway, docks and warehouses lining the bay and City Wafer- way constituted the "World's Longest Dock." Sailing ships lined the waterfront docks unloading supplies info Tacoma, warehouses for easy transfer to the railroads, which ran along the other side of the warehouses. Then they loaded lumber, grain, and other commodities for the Washington return voyage. After decades of steady decline, Tacoma's City In the 1940s,.the Port of Tacoma, just to the east, Waterway is being redeveloped through a cooperative began a massive 3,000-acre industrial development private and public effort coordinated by the city. The which included landfilling for new staging areas and redevelopment program contrasts sharply with the efforts dredging of deeper and wider waterways to keep up of other cities in terms of the development scale and with the needs of la(ger ships. As shipping activity strategy. By using an approach tailored to match the moved away from City Waterway, the area turned to resources of the city and the potential of the waterway, industrial uses, many of which were unrelated to the Tacoma has been able to make significant progress wafer The waterway slowly declined, Warehouses saf towards recapturing a valuable urban amenity. vacant and several spectacular fires left unsightly pilings along the shoreline. OR, P M_ M Redevelopment Strategy '_a* ON When the city officials began looking at redevelop- ment of the waterway, 31 percent of the buildings or properties were vacant, 62 percent were highly cleterio- rated, and 20 percent were not water-dependent. City officials began to discuss the potential of the waterway for redevelopment into water-relafed and more public uses. After discussions with numerous city commissions and community groups, city officials drafted a City Waterway Policy Plan. The city council adopted the final policy plan in October 1974, designating the western shoreline and the southern half of the eastern shoreline for redevelopment. The council's goal was to redevelop the waterway with marinas, restaurants, specialty and import shops, and green open spaces. Rather than initiating a disruptive plan of massive relocation, the city chose a flexible policy of encouraging non-water-related developments to relocate to other parts of the city. No new industrial uses were allowed, but existing industrial businesses were permitted to stay until they chose to relocate. The city expected that completion of a few demonstration projects would encourage future water-related uses and that market forces would encourage incompatible businesses to move. To ensure that the plan was implemented, the city appointed a waterfront development manager The position was placed in the city's Community Develop- menf Department under the Economic Development Unit and funded from Community Development Block Grant funds. The waterfront manager's primary responsibilities were to persuade government bodies, developers, and financial institutions to invest in the project. 5-85 Tacoma's City Waterway prior to redevelopment. 194 In 1976, as the plan was being developed, a seafood market on the waterway was relocated because of the deteriorating condition of the building they leased. The project cost $350,000. Working with, city staff, the owner of the market leased cify-owned property on the water- way. The presence of the market helped to enhance the Projects completed or In progress I BRS Enteriorses credibility of the city's plan for redevelopment. 2 Totem Marina Redevelopment & Experts on 3, Coo rative Salmon Rear ng Pers In 1977, the city further showed its commitment to 4 ,, PJoehnnys Seafood 5Old At as Foondry Store e public/privafe cooperation by using special funds, city 15 N.@ Johnny's Seafood 7P@Jbl'c Ficat Project general funds, and a state grant to develop a public 8 P ck's Cove Marina 9Johnny's Dock Restaurant float along the shoreline in front of the seafood market. JCJ Me @@-Restduranti Property The float cost $110,000 and can be used for temporary 11. Me n-M..h.11 Per- Other project proposals now under consideration moorage of visiting boats or seaplanes or by people @2. Bridge Park Pedestrian Way 3. Mechanical People Mover System fishing or just relaxing. The project includes a public 14.15th Street Br ago Connection 15 @A Street to Dock Street) guest float, pier, and access romp located along the 15. 21st Street Bridge and Ramp @6 M =Pac fic Coast Oil Company 19 frontage of the new seafood facility, with public parking 7. Moo i-Norh Pac f c Ply,yood space in the stub end of 15fh Street. Other city properties -1 0 @8 Pacift M-Firre Even though the city began with a successful project, 9 Coast ron and Machine 20, Western F,sh and Oyster Company r( 6@ 21. Mun dice Dock Bu ding many difficult and complex problems blocked waterway development. The two major problems were the lack of J sanitary sewers and the need for expanded harbor lines. Legend-Private Redevelopment The city concentrated its efforts on resolving these ,,S@ Completed or in Progress V constraints. Harbor Areas Environmental agencies refused to allow any further Potentia Waterfront Poternia Air R ghts; development until sanitary sewers were installed. After successful negotiations- over a local improvement district with the Burlington Northern Railway, a major property holder, and approval of Economic Development Admin- istrafion, Environmental Protection Agency, and Commu- 10 nity Development Block Grant funding, the city began a series of sewer, water main, and street improvements on E UND both sides of the waterway. @V__ More than $8 million in public funds was invested in 5-86 City Waterway site plan showing the major redevelopment projects. the waterway: about $1 million in water mains, $3.5 million in sewer improvements, and $4 million in street paving, lighting, and landscaping. These public im- Next, the city conducted a feasibility study of marina provemenfs helped stimulate $8 million in private development on the waterway The study concluded developments. that there were several suitable sites on the City Waterway The Dock Street Sanitary Sewer Project was completed which would not require major environmental problems of a cost of $217,000, including a $30,000 pump station. of dredging and disruption of natural areas and wildlife. Existing and future development will be connected to The study concluded that there was an immediate this facility, thereby eliminating further dumping of demand in the region for 1,100 more boat moorage sanitary and industrial waste into the City Waterway spaces, and that demand could be met by develop- along this frontage. ment of the City Waterway, While the city was applying Since one of the major goals of the policy plan was to for the harbor line extensions, city staff began working with develop marinas along the waterway, state harbor lines marina developers hoping they could be ready to begin had to be extended out from the shoreline. The city took construction soon offer the lines were extended. the lead role in applying for the harbor line changes. One of Tacoma's finest restaurants was forced out of its After about a year and a half of discussions, applica- long-time home on the Port of Tacoma about this time, fions, and hearings, the state approved extension of the so city officials approached the owner about moving to the harbor lines for about half a mile on each side of the City Waterway The negotiations were successful and the waterway opening the way for marina development. restaurant built a new home which opened to customers Nothing could be built over the wafer until the state in 1979. In addition to normal restaurant business, the created these new leasable areas. owner has developed a small marina where guests can 195 Totem Marina The largest development thus for, and the most difficult to arrange, is the $3.3 million Totem Marina, now completed. This once small City Waterway marina has expanded to cover about 10 acres along half a mile of shoreline providing 454 wet moorage and 126 dry moorage spaces. This is one of the finest private marinas in the Puget Sound region. City staff members assisted the developers all,the way through the process, beginning with the creation of state harbor areas and the granting of shoreline permits from the state and Corps of Engineers. The project required 5-87 One of the major goals of the loolicy plan was to develop marinas leases with the city, Burlington Northern, and the state 'long the City Waterway before a financial package could be put together for presentation to lenders. Two abandoned buildings were arrive by boat and diners can watch the boats outside removed from the waterway to provide ample parking the windows with downtown Tacoma as a backdrop. space for the marina. The restaurant marina has about 40 spaces for perma- The north end of the marina can be used as a fishing nent or transient mortages. The project cost was dock, a marine supply store is available, parking has estimated at $800,000. been built, and a boardwalk lines the waterfront. Totem The restaurant is currently planning expansion of its has resumed a salmon rearing project again this year, marina, and three other developers on both sides are in releasing about 40,000 salmon a year into the waterway various stages of marina development. Because of the With the.marina completed, the developer plans to increased boating traffic, the city has negotiated with a develop another major restaurant on the site of a railroad line to keep a bridge crossing the waterway deteriorated city dock and warehouse adjacent to the open on weekends for easier marine passage, marina. -low " @31 ft N -40" 5-88 View of the Totem Marina project (right side of bridge) and downtown Tacoma. 196 Additional Development Projects When Tacoma began its City Waterway redevelop- ment, it hoped to produce some examples which would encourage other property owners to consider redevelop- ment as well. Now that many of the originally planned projects are completed or underway, more and more property owners, including some originally opposed to the plan, are exploring the possibility of redevelopment. One property owner hopes to develop an old ware- house into shops and restaurants. Another warehouse, recently destroyed by fire, is currently being demolished, and the owner is considering various redevelopment Q- alternatives. Other developers are exploring the possibili- ty of additional marinas, restaurants, shops, and even residences. Ultimately, the city hopes to develop a continuous pedestrian path, in a combination of board- walks and concrete sidewalks, around the entire perimeter of the waterway. The city is continuing to explore options for future development. City staff has been working with consul- fonts designing a freeway spur project to coordinate waterway plans with the freeway project. Options are being explored to replace one bridge, to remove --- another bridge, and to build an access road around the southern end of the waterway. Although the City Waterway is within walking distance of downtown, it is separated from downtown by railroad tracks and a steep slope. City officials have been exploring several options for improving access between downtown and the water- front. Green space developments are also being considered. kL State harbor line revisions, approved by the state in 1976 and again in 1981, are providing opportunities for 4@ - substantial marina development in the waterway, and further revisions are being (@onsidered. In addition, a A request is now pending to modify a federal U.S. Army Corps of Engineers project on the City Waterway. This will eliminate an unrealistic and costly bonding requirement affecting marina development in the waterway. 4- Private sector redevelopment efforts are numerous. The 4.4 conversion of Pacific Storage Warehouse, located on Burlington Northern property between South 4th and 11th Streets and Dock Street and the waterway, to commer- _7 cial use is in progress. The project sponsors have ? purchased the property and have completed certain building maintenance improvements and general site cleanup in anticipation of securing leasehold tenants for future restaurant and other commercial developments. Such restaurant and commercial development has not yet occurred, and in the interim, this property continues to be used for light industrial purposes. 5-89 Now that many of the City Waterway projects are completed or underway, other property owners are considering similar redevelopment alternatives. 197 and work is in progress for a 157-boaf marina on the east side of the waterway between 15fh and 18th Street. An initial stage of development has been completed. Total development is projected for completion by the The 15th Street Bridge over the City Waterway is end of 1982. The Pacific Coast Oil Company marina owned by Union Pacific Railroad and is projected to be project will significantly expand the moorage capacity closed permanently and removed within the near future of the waterway A first stage of development, involving pending future plans of the railroad. A decision on future 18 wet moorage slips, is now completed, at an plans may be accelerated by increased bridge open- approximate cost of $80,000. A further final stage of ing demands from boat traffic to and from marinas marina development contemplates extending out into located at the south end of the Waterway. the water approximately 100 feet into recently approved Other projects have significantly improved the viability additional state harbor areas. Other upland commercial of the waterway. The Picks Cover Marina project was development is also being planned at this location. completed at a cost of $350,000. It includes 100 wet Finally, proposed plans for the old vehicular ramp moorage spaces and 24 dry storage spaces. A shoreline structure under the West approach to the 11fh Street permit has been approved for development of a marina Bridge include continued use as a pedestrian way with (60 wet and 324 dry) and restaurant facilities on the the addition of landscaping features to create a park- Jones property, located on the east side at the very like pathway between the downtown area and Dock south end of the waterway. A Cops of Engineers permit Street. Further development of these plans has been has also been secured. Alternate plans are being held pending conclusion of redevelopment of the considered by the developer, and thus, status of this Municipal Dock Building property immediately adjacent project is uncertain of this time, All permits are approved to the north of 11th Street. A 52 FER", IM", H-1 9z X @ A : @07., A 5-90 City officials are exploring several options for improving access from downtown Tacoma to the City Waterway. 198 Experience Gained The Tacoma City Waterway redevelopment program illustrates the importance of formulating an urban waterfront development plan that is practical and manageable. City officials recognized that with limited resources and a questionable market, the best develop- The early redevelopment of the seafood market was ment strategy for the City Waterway was an incremental very significant because it attracted public attention to approach designed to use public improvements as a the waterway and greatly enhanced the credibility of catalyst for private investment. By adopting a flexible the city's plans for further redevelopment. With an development policy instead of a definitive plan, the city incremental development program like Tacoma's, it is was able to take advantage of redevelopment oppor- very important to initially show some progress or change tunifies as they occurred. in order to create momentum and interest in the The appointment of a waterfront development man- program. ager by the city was extremely important to the success One reason the City Waterway program has been so of the program. This office was the conduit for the flow successful is because it did not try to copy the more of information and communication between private glamorous and grandiose waterfront projects of larger developers and public agencies. Furthermore, the North American cities. Instead, Tacoma tailored the manager was able to coordinate the decisions and redevelopment of the waterway to reflect the unique actions of local, state, and federal government agen- characteristics of the city. This realistic approach is cies involved in the redevelopment of the waterway. producing remarkable results. 5-91 Project Dota-City, Waterway Land Use Information: Economic Information: Site Area: 117 acres Cost of Existing Development: Existing Development: Public: Public: Site improvements include stteets, sidewoks, Water moins ..... _.. $1 million landscaping, lighting, water mains, sewers, Sewers .... ...... 3.5 million and public docks, I Sfreets, lighting, and Private: 4 marinas (900 slips), a 300-seat restaurant landscaping .. @ .... 4 million and dock, a seafood soles and distribution Other .... ...... 1.5 mHlion facility. Total .... @10 million Future Development: Private: $8 million Publlc@ Additional site improvements including pork Totol: $18 million development, pedestrain facilities, and bridge replacement are anticipated. Implementation Planning and Development will depend on the availability of public funds, Coordinator, Private: There are no specific targets or plan numbers Waterfront Development Manager for future private development, The city is, Community Development promoting more of the some type of private Department development to the maximum extent possible. City of Tacoma There is physical space for as many as 1,000 740 St. Helens Avenue additional marina spaces. There is physical Tacoma, Washington 98402 space for three or four more restaurants and (206) 591-5200 three or four hotels/motels, In combination with possible residential and other commercial development. The eventual total development will depend on market prices and cannot be predicted at this time. 199 In the late 1950s there was an urgent need for storm protection of the low-lying urbanized areas bordering the East Branch and Stamford Harbor These areas of the city experienced,75 percent ($2.5 million) of the total damage to Stamford resulting from Hurrican 'e Hazel in Harbor Plaza, 1954, and had been victimized by previous hurricanes and severe sforms. Most of the damage was to manufacturing facilities. Stamford, After completing a study of the storm-ravaged area, the U.S. Army Cops of Engineers recommended the construction of a hurricane barrier as the major feature Connecticut of a comprehensive storm protection program for Stamford. The barrier was completed in 1958 and Harbor Plaza is an office and retail complex located consists of 1,030 feet of earth-filled dike, with rock faces on an 18-acre site overlooking Long Island Sound in and ties. If extends across the East Branch at a point Stamford, Connecticut. Surrounded by the largest marina about 1,000 feet above its mouth (about 900 feet north in the Northeast (a 400-slip facility undergoing renova- of Ware Island). The barrier has a fop elevation of 18 feet tion and expansion), the project demonstrates successful (mean sea level) and a top width of 200 feet. A grated private redevelopment of an urban waterfront site for opening, 75 feet wide, is built into the barrier where if primarily office use. Harbor Plaza shows that an office crosses the navigation channel. The barrier protects 460 project can be an appropriate shoreline development acres of property, maintains water depths, and acfs as a alternative if the site plans and building designs haven for recreational craft and commercial vessels complement the scale and character of the waterfront during severe storms. Completion of the hurricane barrier setting. stimulated marina development near the Harbor Plaza History site along the East Branch. During the early 1960s Ware Island was joined to the The Harbor Plaza site has undergone many changes mainland by a narrow causeway, A few years later, land since the turn of the century. At that time it was nothing was created on each side of the causeway with fill more than a small grassy peninsula with an island material. This produced a flat, almost S-shaped area of located near the shoreline. The 1,2-acre Ware Island land, significantly expanding the size and water front- marked the entrance to the East Branch, a narrow tidal age of the peninsula. creek extending 11/2 miles inland from Stamford Harbor in recent years Stamford has become a major By 1938, two buildings on the peninsula and a single headquarters location for large corporations, with a dwelling on Ware Island had been constructed. Inclus- resulting economic shift from a primarily manufacturing trial development was concentrated north of the site production economy to an office/service-based econo- along the East Branch where two large shipyards and a my. It is expected that Stamford's role as the major urban marine works were located. center of Southwestern Connecticut will intensify during the 1980s. A majority of Stamford's office development is taking place in conventional downtown locations. Site Development The Harbor Plaza site is located in the Shippan Point section of Stamford, just south of the city's central busin ess district. The site is near an affluent residential area and a large public park. Across the East Branch is Kosciusko Park and the Woodland Cemetery These two shoreline uses are an additional buffer between the site and Stamford's industrial south end. For the city of Stamford, the development of Harbor till Plaza ended 10 years of uncertainty regarding the future of the 18-acre waterfront site. Until 1971 the site was owned by Scott-Paine Marine Coporafion, which planned to develop an apartment complex. However, this proposal required a change in zoning from light industrial to residential and was strongly opposed by the V'7 V residents of the exclusive Shippan Point community. m Shortly after this proposal was defeated, the Scott-Paine 5-92 Harbor Plaza is located on an 18-acre site overlooking Long Island Sound. 200 Corporation was acquired by Marina America, Inc., which presented a proposal for a condominium devel- opment on the site. The proposal was rejected by the city's planning commission and the land was put up for sale. The site was then purchased by the Collins Develop- ment Corporation in 1976. Collins recognized that under the city's zoning ordinance the site's location in a light industrial district would allow it to be developed for office use without any change in zoning. Further, Collins recognized that with the Stamford office market -growing dramatically this presented the opportunity for a unique office complex on the waterfront. As part of the sale terms, Marina America, Inc., required that boat owners be assured access to the slips and parking on the site. The city required that three parking spaces per 1,000 square feet (NRA) be provided as well as 1.5 spaces per marina slip. However, about 400 of the additional 600 spaces ended up being Ilk eliminated from this requirement due to a grandfather ,AW clause. On weekdays, 50 parking spaces are reserved on the site for marina patrons. On weekends, marina V" patrons may use any of the project's parking facilities. Under the city's zoning ordinance, 80 percent coverage was permitted on the site with structures no greater than 60 feet high. 4 The project has been under construction since 1977 7T and is virtually complete, with the final building, a multiuse facility containing 84,000 square feet of office space above 17,000 square feet of ground level retail space, about to begin tenant occupancy The majority V of Harbor Plaza is leased and occupied and currently houses 1,900 employees. 5-93 Access to marina uses is provided by a pathway which skirts the Planning and Design edge of the site. The plan takes full advantage of the project's waterfront location. The buildings ore carefully placed along the narrow peninsula and have a distinctive orientation to the shape of the land, the water, and the view potential. The buildings are arranged in such a way that several "windows" to Long Island Sound were created. An important consideration was to create an overall link and access to the waterfront, while protect- ing the shoreline's ecosystem, Pedestrian and marina I% uses were accommodated by creating a peripheral pathway, skirting the entire site at the wafer's edge, with landscaped berms. The major portion of this pathway consists of a boardwalk running along the edge of the inside, sheltered cove, Unlike most corporate headquarters, the buildings were not designed to have a monumental appearance, but rather to respond in scale and materials to the traditional New England waterfront and to the surround- ing residential areas. Even though the floor area ratio (FAR) under the local zoning ordinance permitted the site to be intensively developed, the development team sought to achieve an optimum size which would assure economic viability yet would be compatible with surrounding development. 5-94 Harbor Plaza site plan, 201 Parking areas are mostly located under the buildings. Parking level slabs allowed enough room in ceiling areas for mechanical distribution. The 100-year flood line N, imcifely nine feet above the mean high water is approx: table, and the lowest level of parking was established 13 feet above the mean high water fable in order to insure against flooding. The majority of the site's stormwater runoff is dis- charged directly to the sea, with proper filtering devices. ect's sanitary sewers are tied to the municipal The proj system. The developer was required to make major off- site improvements, These included the construction of an access roadway through nearby parkland so that traffic generated by the project can bypass neighboring residential areas and extensive dredging to ensure that channels would be navigable and marine use would expand or at least remain at its present levels. Market and Tenants The Stamford region of lower Fairfield County, Con- necficut, is the fastest growing office market in the New York metropolitan area. During the last 15 years, a large number of Fortune 500 companies made an exodus from New York City to Fairfield County. The impact in the Stamford area was to triple office rents over the post three years, peaking at nearly $30 per square foot for 5-95 The buildings feature operable windows with solid teak frames. prime office space. Harbor Plaza's waterfront site and easy access (via Interstate-95 and the Conrail/Amtrak The predominant image conveyed by the project's line), in conjunction with general office market trends, design is that of a traditional New England waterfront. made if one of the most sought after office complexes in the area. The project's initial 110,000 square feet were The buildings do not have slick aluminum and steel speculative. Since then, more than 500,000 square feet facades, but instead are hearvy, solid structures. Buildings have been rented to a single tenant, Continental Group are five or six stories and feature natural materials, International, as their World Headquarters and offices for including concrete, soft pink-based brick, and wood- their subsidiaries. framed windows. The windows are operable and are triple-glazed with solid teak frames. These windows are Experience Gained ideal for waterfront use, being corrosion- res I sfa nf as well as energy-efficienf. They also proved to be economical Harbor Plaza has demonstrated that a waterfront site compared to aluminum assemblies. Certain entrance which is removed from Stamford's downtown activity can portions of the buildings were treated with grandeur by be successful as a corporate office center. The project using atriums and other architectural treatments. The facades of the buildings' ground floors were designed to accommodate the pedestrian and function as an arcade, providing access to the water's edge. Through- out the site, many waterfront elements were incorporat- ed as part of the landscaping, including boardwalks, waterfront gazebos, and prism-lens, nautical lanterns, Engineering Extensive improvements were required for shore stabil- ization. Rip-rap was installed as well as a limited amount of bulkheading. For building construction, pressure- injected concrete piles (known as Frankie Piles) were used extensively. This piling system was successful both from an economic and an engineering standpoint. These piles are very durable, particularly for a site with P saltwater, and work well with sandy soil conditions. 5-96 Harbor Plaza demonstrates that office development can be compatible with waterfront recreational uses. 202 has been a catalyst for the renewed interest in Stamford's deteriorating waterfront, Furthermore, the intensify of office use has created a viable market for environmental studies. Also, extensive improvements additional complementary waterfront uses in the area. were required for shoreline stabilization and flood control During the planning stages of the project, Harbor prior to project construction. Furthermore, the city Plaza was often cited as an example of why the required the developer to contribute 75 percent of the waterfront needed to be controlled and was considered total cost of the new access roadway. Negotiations to be one of the determining factors in the passage of regarding the roadway were a time-consuming process, Connecticut's Coastal Area Management Act. However, with five separate factions of the city government the project, in fact, rejuvenated the waterfront by involved, In addition, the developer's intent of soliciting improving its physical appearance and enhancing its contributions from Harbor Plaza tenants was not realized. recreational potential. Of particular significance to this waterfront project was Harbor Plaza's success conclusively illustrates that the the trade-off between design and economic value. The amenities of a waterfront location are of such a high provision of an extensive, multilevel under-the-building magnitude that they can overshadow many serious site parking facility greatly enhanced the appearance of constraints. Office tenants, like homebuyers, are willing the project but created capacity limitations. Due to the to pay a premium price for a waterfront setting. The structure module supporting the superstructure above, it $28.50 per square foof rent for off ice space in Harbor was impossible to implement an efficient parking sfall Plaza is among the highest rents in Stamford. plan. If parking of Harbor Plaza had been housed in a Nevertheless, the site's location and configuration garage on-grade with freestanding columns indepen- presented higher preclevelopment costs. The analysis of dent of the office facilities, up to 15 percent more the site conditions required specialized engineering and parking spaces could have been provided. 5-97 Project Dato-Harbor Plaza Land Use Information: Land Use Pion: Site Area: 18 acres' Acres Percent Gross Building Area (GBAJ: 740,000 sol. ff.2 Buildings ........... .......... 10.00 55.5 Net Rentable Area (NRA): 700,000 sq. ft Landscaping . @ . . @ ............... ......... 1.25 7.0 Floor Area Ratio (FAR):3 136 Ort-Grade Parking . . . . . ...... 1.....11-- 5100 27,7 Parking Spaces: 2,300 Roads/Walkways .............. ........ - 1.75 9.8 Toial ........... .......... ............... 18,00 100.0 Tenant Information:4 Major Tenants: The Continental Percent of Group-World Headquarters; Ameri- Unit Size Net Rentable can Maize Products Co.-Headquar- (sq. ft.) Tenants Area tem, Distillers Ltd.; Group W Satellite 4,55,289 1 65.0 Communications; Rusty Scupper 126,000 1 18.0 Restaurant, Marina America, Inc. 9,800 1 1A 3,870 1 .5 10,000 1 1A 25,103 1 16 Notes: 630,062 6 89.q The.site occupies MO acres if the marina is included, Economic information: Lease information: 2 Corporate offices occupy 650,000 sq. ft. Site Acquisition Cost: $4 million5 Rate: $28.50 per sq, ft. of NRA7 and convenience commercial, Site Improvement Cost: $3 million 'Length: 10 years or more restaurants, and professional offices Construction Cost: $129 per sq. ff.6 occupy 90,000 sq, ft. 3 FAR equals GBA divided by total site area, Developer: Planning and Architecture: 4 Space leased as of August 1982. 5 The site was acqUred in 1976. Collins Development Corporation Yankee Planning 6 Hard costs only, Total construction cost 43 Lindstrom Road 43 Lindstrom Road was $84 million. Stamford, Connecticut 06902 Stamford, Connecticut 06902 1 Pervt is increased after the first five years (203) 357-0123 (203) 357-0089 and is then monitored by the current market rate at 10-year intervals, 203 di 01 VIM D AWI& HA% 0 WVW p ent Issues and Trends At one time, the commercial life of North American cities depended almost exclusively on the activities of their ports. This is no longer true; the shift in importance along with the significant changes in cargo handling and steadily decreasing waterborne passenger travel has left large areas of waterfront land underused. Few cities, however, can afford to ignore the wealth of benefits offered by the full and productive utilization of their waterfronts. By providing unique development opportunities, urban waterfronts are regaining a significant role in supporting the viability of North American cities. In the process, some important issues concerning waterfront develop- ment have emerged. These issues and the lessons learned through experience will greatly influence future opportunities for development, L L 204 Development Issues While the incentives and constraints to development vary widely depending on a city's size, age, and history of shoreline use, there are four common development issues which stem from judgments made during the development process and which generate controversy The developer is caught in a web of waterfront for waterfront projects. These are: regulations and regulations that is discouraging for two reasons. First, the permits, appropriate use of waterfronts, public access, range of development opportunities is limited by and citizen participation. restrictions pertaining to use, density, design, and Regulations and Permits access. Secondly, the review and approval process is time consuming and laborious. Under these circum- One of the most controversial aspects of waterfront stances, the developer is faced with an elongated if not development is the regulatory requirements imposed on indefinite development time frame that is stretched to waterf ront lands. Urban waterfronts generally have a the point of undermining the project's feasibility. jurisdictional structure that for exceeds the typical urban The impact of the regulatory process is manifested in governmental framework in both size and complexity. several ways. Regulations add to development costs The presence of the water resource not only introduces and basically the risk of the project increases with the additional and overlapping agencies at each level of rise in development costs. This worries investors and government, but also calls for the involvement of various lenders, and the developer responds to the risk by either special purpose government agents with authority over abandoning the project or changing certain aspects of specific shoreline resources and uses. As a result, the project to increase the expected return on invest- waterfront development is subject to a multitude of ment. Sometimes this translates info focusing on a higher governmental regulations and permit requirements. income market, and other times it means increasing the From the viewpoint of the private developer, the intensity of development, When regulations are op- jurisdictional framework guiding the development pro- pressively complex and stringent, developers are overly cess is difficult and counterproductive. The multijurisdic- cautious and deliberate. There is concern among tional structure produces redundancy and inefficiency. developers that an innovative, imaginative proposal The fundamental problem is that the permitting process would be swallowed up by the regulatory beast and is not tailored to be compatible with the development never successfully digested. This undercurrent of concern process. stifles creativity, and projects are predictably bland. 7 ems 77 MIT ;72-Z 6-1 In Seattle, regulations that were put in place to stimulate maritime commerce have actually worked to delay the revitalization of the central waterfront, 205 The argument is also based on the contention that regulations help to coordinate the disjointed and incremental decisions affecting urban waterfronts, Al- though the process creates delays and expense, it also safeguards against pursuing immediate financial re- wards at the expense of long-term environmental or community degradation. This side of the argument concludes that regulations are necessary and exist primarily because of problems created by the policies or practices of developers in the past. 4. Government agencies on all levels have a mandated responsibility to protect waterfront resources; it is clearly in the public interest, This purpose must be satisfied, however, in a way that does not inadvertently penalize the de elopment industry. That is to say, the regulatory process needs to be restructured to be more responsive i development opportunities and problems. Just as it is in the public interest to manage shorelines for future productivity and enjoyment, it is also in the public interest for cities to realize economic development opportunities. Review periods need to be shortened and redundan- law- cies that are a result of urisdictional overlaps removed. In many cities, the cost of shepherding a development proposal through the permitting process is much too J, high. One effective remedy available to city govern- ments is to assign one staff member to a waterfront development proposal for the expressed purpose of guiding if through the permitting and approval process. In Tacoma, Washington, for example, the city appointed 6-2 Public walkways along the shoreline at Palmer Point in Greenwich, a waterfront development manager to insure that the Connecticut, were required by zoning regulations. City Waterway project was successfully implemented. Improvements could also be made if all regulations were written in a clear, concise manner. Furthermore, The developer has a vested interest in the immediate whenever possible, performance standards should be and long-term success of a project and given the used instead of design standards. The Georgetown chance would only develop an economically sensible waterfront project proposal in Washington, D.C., illus- project without serious environmental degradation. Thus, trates the importance of this point. In that case, the city his argument is that many regulations are not necessary government made a commitment to transfer 12 acres of and the process is unresponsive to waterfront develop- city-owned waterfront property to the Western Develop- ment efforts. ment Corporation in return for the shoreline property held On the other hand, many lawmakers, regulators, and by private interests. The land transfer proposal in effect citizens embrace a different viewpoint of the jurisdic- created the following design stipulation: a 160-foot-wide tional framework guiding waterfront development. From strip of shoreline property was to be turned over to the their perspective, regulations were enacted for environ- National Park Service and preserved as public parkland. menfal protection and pollution control basically be- While the intent of this requirement was to provide public cause private industry; including the development access and shoreline recreation, it produced a long industry; was not doing the job. Regulations are more relatively narrow development envelope that seriously complex and abundant for waterfront lands because limited the range of design alternatives. Following the shorelines are limited, fragile resources of tremendous rejection of the initial design by the Fine Arts Commis- public value. It is in the public interest to control and sion, the developers decided not to pursue the land manage this resource, and the permitting process serves transfer until after design approval was obtained. Thus, as a mechanism to accomplish this. This view holds that project designers could operate under a performance if a development proposal is truly meritorious it will sail standard that allowed construction along the water's through the regulatory process without a scratch, edge as long as public access was provided. This 206 change in approach eliminated the 160-foot setback standard and project designers were able to improve the overall design of the project by adding a small small boat basin to the design and retaining more land surrounding the project as park and open space. Another contradiction should be noted: the city wished Deciding Appropriate Use to encourage water-related uses along the shoreline, yet in this case the closest structure would have been 160 The appropriate use of waterfront land is an issue that feet away from the water, making many water-orienfed commonly paralyzes the redevelopment of urban shore- uses infeasible. lines. The controversy centers on distinguishing among While regulatory changes are certainly in order, water-dependent uses, water-related uses, and uses that private developers must also take steps to improve are not dependent on or have any relationship to the existing circumstances. Developers should acknowledge water In some cities, policy makers contend that urban that waterfronts are unique urban resources that require shorelines should be preserved exclusively for uses which special treatment. It is the responsibility of private could not exist in any other location but on the water A developers to take advantage of information sources more common policy is to also allow uses which may be and study jurisdictional policies and regulations pertain- helped by locating along the shoreline, but could ing to shoreline development. The wheels of the regula- function elsewhere (wafer-relafed uses). In contrast, some tory process should be lubricated with cooperation and jurisdictions place no special restrictions on the use of good faith, In San Diego, the Unified Port District waterfront lands. This approach is supported by most Commission has proven that shoreline regulation and private developers. They contend that shoreline uses management can be tailored to accommodate private should be determined by site suitability factors and development without sacrificing public interests. market conditions. 7 4 ON I 41 4W 6-3 In Son Francisco, water-dependent uses, such as commercial fishing, are given the highest priority. 207 A less restrictive policy is to allow water-related uses in addition to uses absolutely dependent on a shoreline location. Under this policy a use is considered to be water-related if real cost savings or revenue advantages can be attributed to a waterfront location. Thus, single- The argument made in support of a very restrictive user terminals, seafood plants, petroleum processing policy is that given a finite amount of waterfront land, it plants, waterfront parks, public resorts, aquariums, and is in the public interest to reserve it for uses that need a restaurants are permitted uses. This approach offers shoreline site to exist. Uses such as cargo shipping more flexibility; it encourages traditional waterfront uses terminals, ferry and passenger terminals, marine con- while allowing functional changes to occur. Conserva- strucfion and repair facilities, marinas and moorage tionisfs feel that this policy provides for the full use of facilities, and tug and barge companies should not waterfront lands and strengthens the functional attach- have to compete with residential, retail, and office uses menf of the city to the water resource. for waterf ront sites. Conservationists point out that water- Most private developers do not see the need for dependent uses have no choice but to locate along the excluding primary urban uses from city waterfronts. From water's edge, and competition from other urban uses their perspective the highest and best use of waterfront can drive up land values to the point of making the land should be determined by site characteristics and water-dependent uses obsolete. Therefore, these uses market forces. Developers point out that because of should be given preferential treatment in order to technological innovations many water-dependent uses capitalize on the full potential of the water resource. are no longer economically viable in central city Furthermore, by allowing a non-wafer-related use on the locations.. Consequently use restrictions perpetuate the wat 'erfront, a city loses the opportunity to develop a underufilization and deterioration of urban waterfronts. In water-dependent use on the site in the future. effect, land is reserved for uses that it cannot support. Ina P____ VOW, I0, 6-4 Baltimore's Inner Harbor redevelopment program combines water- dependent and conventional urban uses. 208 The desire to preserve waterfront lands for water- related uses should not overshadow important citywide objectives to stimulate economic development and make physical improvements. In support of this belief, developers point to cities such as Boston, Baltimore, and San Diego where the lack of restrictions did not produce exclusively non-water-related development. In some Nine years after the study, the waterfront area is still cases, office, retail, and residential uses generate undergoing transformation and is vastly underutilized. enough revenue to cover the cost of developing However, one significant change has occurred: the secondary water-related uses that otherwise would not ongoing construction of a $25 million fishing pier be feasible. complex has reversed a long-standing trend of diminish- It is difficult to make blanket statements regarding -the ing marine-relafed activity. Furthermore, the $46 million appropriate use of urban waterfronts because each city expansion of the Both Iron Works ship overhaul and has a unique set of conditions and circumstances that repair operation to the Portland waterfront has provided must be taken into account. In general terms, a use is additional momentum to the resurgence of the area. At only appropriate if it reflects the special characteristics the some time the vast development and redevelop- of a waterfront site and responds adequately to menf opportunities of the waterfront are beginning to be community needs. This criteria rewards both water identified and pursued. dependency and economic viability; it is a balanced Faced with parallel efforts to both reinclustrialize and approach that injects flexibility info a waterfront man- redevelop its waterfront lands, the city formulated a agemenf program. strategy that would encourage commercial, retail, and Certainly in cities where competition for waterfront sites residential development without jeopardizing any of the threaten the continued existence of valuable water- existing or proposed maritime uses. Since zoning is the dependent uses, intervention is justifiable. However, while principal tool available to the city to promote the use limitations may discourage real estate speculation establishment of certain types of uses and to channel and land development, these restrictions will not guaron- those activities to specific areas, the city's waterfront tee,the continued viability of the allowable water- management strategy is centered around new zoning related uses. There are other public sector initiatives such recommendations.' as tax incentives and public improvements that work The major recommendation is the creation of a new better than land use restrictions in preserving maritime waterfront zone (W-2). This zone would be a specialty uses along urban shorelines. zone, specifically designed for the unique nature and Another drawback to allowing only water-related uses needs of waterfront dependent uses, The intent is to along urban shorelines is the exclusion of mixed-use reserve a substantial portion of the waterfront for uses development projects. This is particularly unfortunate where waterfront access/location is critical. In addition, when waterfront areas are in need of full-scale revitaliza- the W-2 zone is designed to protect waterfront depen- tion because water-related uses that would otherwise dent uses from other competing but noncompatible uses not be feasible can be developed within a mixed-use of the waterfront. W-2 is basically a marine and marine concept. A mixed-use project can produce the critical related use zone. Most nonmarine and fishing-related mass of development necessary to attract people to the uses would not be allowed (existing uses would be wafer's edge and provide the full range of services and grandfathered). The new W-2 zone would provide facilities necessary to support a variety of maritime uses. assurance to Portland's marine and fishing industries that Portland, Maine, is an excellent example of a city that the Portland waterfront will continue to remain a working has devised a waterfront management strategy to waferf ront. Waterfront access for waterfront dependent protect existing maritime uses while allowing new urban uses would be guaranteed through the adoption of the development to take place. The city's waterfront area W-2 zone. Noncompafible uses such as professional consists of approximately 250 acres. In 1973 a study offices, hotels, convention centers, and residences would made of this area found that it was in a state of transfor- not be permitted in the W-2 zone. mation. There was considerable underutilization of land The second major zoning recommendation is a and buildings, with transportation and warehousing/ change in text and boundary of the existing W-1 zone. wholesaling the primary culprits. In 1973, more than 50 The intent of the revised W-1 zone is to permit a diversify percent of the land on the waterfront was used for of uses which can coexist with each other. If is a mixed- transportation-related purposes, and warehousing/whole- use zone that would permit all of the marine and fishing soling accounted for 12 percent of the land. The report uses of the W-2 plus a variety of commercial, industrial, concluded that the vast land holdings of the railroad and residential uses. were out of scale to their needs. This condition was largely responsible for the domination of transportation Strategies for the Development and Revitalization of the Portland uses along the waterfront and contributed to the severe Waterfront (Portland, Maine: The City Administration, April 1982), page underutilization of the waterfront area. 19. 209 In response to citizen demands, many communities are using their zoning or project permitting authority to 'KIA qR win concessions from, developers of waterfront lands to allow public access. In Son Francisco, for example, the Bay Conservation and Development Commission has for years used its permitting authority to require provision of direct public access to the Bay wafers. The shoreline 'T management program developed by Seattle uses permits to preserve visual access to the waterfront. A.R1 Complicated legal questions are involved in the decision on providing access. The shore may be in public ownership but only up to a certain point, such as 7@" th Ni normal high tide mark. States have different laws _JL defining the line near the water's edge where private ownership stops and public ownership begins. Private investors, property owners, and developers naturally want to maximize the return on their investment in waterfront sites. This objective may not always be compatible with public sector demands for shoreline access. The prevailing opinion among city officials, govern- ment agency representatives, and urban residents is that 6-5 Public access was an important objective in the development of public access to the water's edge should not be limited Harbourfront in Toronto. by the private development of waterfront lands. This viewpoint is based on the premise that an urban shoreline is a public resource and should be managed to benefit the greatest number of people in the best way Portland's strategy is exemplary because it acknowl- possible. Under this policy, private developers are edges both wafer dependency and economic viability encouraged to enhance the public use and enjoyment as desirable features of waterfront development. The of urban shorelines by providing access to the water's zoning recommendations reflect the city's view of the edge. waterfront as not just an industrial area supporting There are a few basic reasons why public sector maritime uses, but also as a catalyst for urban representatives feel that provisions for access should be redevelopment, economic growth, and community en- imposed on private property owners and developers. hancement. If is the type of approach that other cities One reason is that waterways are publicly owned and might find beneficial. maintained. Therefore, the public costs of water quality and navigational improvements should be balanced by Providing Public Access public benefits of an equal magnitude. This can be achieved in part by improving the accessibility of the The issue of the public's right to have direct access to wafer resource, the water's edge is another controversial aspect of Another reason cited in support of public access waterfront development. In recent years there has been requirements is the tremendous recreational potential of a great deal of debate over the allocation of public urban waterfronts. Many water-related recreational op- and private uses along urban shorelines. Improvements portunities can be realized simply by allowing public in water quality due to public investments in pollution access to the shoreline. It is unfortunate that in some control facilities have significantly enhanced the pofen- jurisdictions public waterfront areas are burdened with tial of waterfront lands for both private development overcrowding because access is restricted to a few and public use. While many local governments support locations. Furthermore, without mandatory requirements the widespread public use of the wafer's edge, few can to provide public access the shoreline is chopped into afford to finance it since public holdings of waterfront segments corresponding to the pattern of property lands are limited. At the same time, there has been ownership. This condition effectively eliminates recre- public opposition to private development projects that ational uses dependent upon movement along the would restrict either physical or visual access to the shoreline as well as the ability to interconnect dispersed shoreline. waterfront facilities with a walkway or trail system. 210 Visual access to the water's edge is just as important as physical access. Waterways are special visual amenities with the potential to greatly enhance the appearance of urban environments. It is in the public interest to make sure that views to and fron the shoreline maintenance and management functions. In this regard, are not blocked by unbroken mosses of large structures. developers are not only concerned about costs but also With the above stated reasons in mind, city officials about quality standards and the ability of the public and regulatory agencies feel justified in demanding that sector to fulfill its commitments. private property owners and developers provide public The conclusion reached by most private developers is access to the shoreline in order to gain approval of that public access to the wafer's edge can be provided proposed development projects. in many different ways depending on factors such as the Although most private developers agree that public site characteristics, type of uses, and public funding. access to the wafer's edge is a worthwhile objective, Therefore, regulations should be flexible enough to they fake issue with having mandatory requirements for accommodate a broad range of waterfront develop- the provision of access incorporated info the develop- ment opportunities and to balance the public's right for ment approval process. Developers point out that rigid access with the property rights of private landowners. demands for access do not take info consideration The controversy over requiring private developers to either existing environmental variations or differences in provide public access to urban shorelines centers not so the type or intensity of proposed project uses. The much on the public's right to be able to get to the uniform application of a public access requirement waters edge as it does on the approach used to essentially penalizes some developers more than others, accomplish this objective. Certainly waterfront devel- depending on shoreline characteristics and market opers have an obligation to meet the public's need for demands. increased recreational opportunities in urban areas, but If, for example, public access provisions require not of the risk of undermining the financial feasibility of a buildings to be set back from the shoreline to allow for project. In this respect, mandatory requirements for uninterrupted movement along the water's edge, or public access can, in fact, be a self-defeating obstacle place limitations on building heights to permit visual to achieving other important public objectives such as access to the water, then the size of the development economic revitalization and community development. envelope for a particular site can be significantly Instead of incorporating mandatory public access reduced. With the inherent high costs of waterfront provisions info the development approval process, a development, these limitations affect project feasibility better approach might be to impose access require- When a portion of a waterfront site is allocated to a ments that vary in relationship to existing conditions, non-revenue producing use, a developer fries to com- proposed uses, and public sector goals. One criterion pensate by either building a product that can be sold or that should be used to determine the requirement is the leased at a higher price or increasing the intensity of existing public accessibility of the shoreline. In this development on the remainder of the site. Developers respect, if seems reasonable to maintain the level of see the irony of this situation: government efforts to public access that exists prior to site development and ensure public access to urban shorelines indirectly to offer incentives to encourage developers to provide encourages private developers to be more exclusive public access in locations where it does not exist. and focus on the high end of the market for each use. Developers maintain that the need for providing public access should not overshadow the rights of private property owners. Local governments have to lot reconcile the need for access with the need for personal security and property protection. Obviously public access is less compatible with some urban uses than with others, and developers feel this factor should be given more consideration. I Another concern for private developers is the mainte- nance and management of public access areas within a waterfront development project. For shoreline projects that combine various uses within public and private areas, formal written agreements should clearly define which party will be responsible for management and maintenance of each portion of the project, and who will pay which costs on what basis. Jurisdictions that impose access provisions on private development projects should be prepared to provide support for 6-6 Shoreline access is provided at Pier 39 in San Francisco, but pedestrians must share the walkway with service vehicles, 211 Citizen Participation The role of citizen groups in the waterfront develop- ment process is another issue that often generates a great deal of controversy Since urban waterways are public resources capable of supporting a variety of activities and uses, waterfront development proposals draw the attention of a diverse collection of interest groups and citizen organizations. Shoreline development projects are usually the concern of fishing interests, Attention should also be given to the quality of public conservation groups, and recreational bocifing organiza- access provided by developers. Depending on the tions, in addition to groups such as neighborhood circumstances, it may be better for a city to have a associations and historic preservation societies that are limited number of shoreline access points that are nicely typically associated with urban development. landscaped and complete with boat docks, parking If the involvement of these citizen groups in the areas, and observation decks than to have continuous development process is not structured in a coherent and access to the shoreline in the form of a pathway that systematic way, then if can produce costly project lacks other basic amenities. delays and unnecessary conflicts. In many jurisdictions The Pier 39 development project in San Francisco is a public policy regarding the responsibility of private good illustration of what can happen when direct developers to solicit and respond to the concerns of access requirements are imposed on waterfront devel- public interest organizations is ambiguous and arbitrary. opment. The project falls under the jurisdiction of the Bay Often waterfront development projects become trapped Conservation and Development Commission (BCDC) in a crossfire of conflicting demands by different citizen which has for years used its permitting authority to interest groups. require provision of direct public access to the Bay Public officials and representatives view citizen par- waters. The developer's response to this requirement was ticipation as an important ingredient of the waterfront to build a 24-foot-wide pedestrian walkway around a development process. They argue that if private devel- reconstructed pier containing restaurants and shops. opment activities are to be compatible with community Unfortunately the walkway serves as both a path for values and objectives, then it is logical and appropriate pedestrians and a service alley for the restaurants and to give citizens a voice in the decision-making process. shops. The ambiance of the water's edge is spoiled by Furthermore, the fact that shoreline development affects garbage bins, delivery vehicles, and other unsightly the condition and use of a publicly owned water items typically relegated to the backside of restaurants resource magnifies the importance of citizen involve- and shops. If BCDC had been more flexible with its ment. public access requirements and the developer more Local governments use a variety of methods to sensitive to the advantages of providing shoreline encourage citizen involvement. Surveys, meetings, and access, perhaps a better design solution could have public hearings are techniques commonly used to solicit been created. As if stands now, the project represents a participation. When there is strong citizen reaction to a missed opportunity by both the private and public project proposal, most local governments make it the sector to integrate shoreline access into 6 waterfront responsibility of the private developer to respond. The development project. reasoning behind this policy is simple: the private The public sector's desire for unobstructed access to developer is initiating an action that could have the shoreline and the private sector's desire to develop significant community impact and is therefore responsi- waterfront projects are not mutually exclusive. As new ble for addressing citizen concerns. If a dispute occurs projects are developed, access can be built into the over some aspect of the proposal, it is reasonable to design and public ownership of shoreside territory can require the developer to have a special impact be clarified. In return for public investment in support of assessment prepared showing that the objection is development projects, parks, public piers, or marina unfounded and inconsequential or explaining how the facilities can be incorporated into approved private project proposal can be revised to eliminate the cause ventures. of the objection, 212 Local governments are established to deliver services and protect the interests of their citizens. To perform this function successfully, city officials contend that they must weigh the public costs and benefits of private develop- ment projects in terms of the values articulated by their Developers contend that there must be some control constituents, From their viewpoint, citizen involvement in over the time frame allocated for citizen involvement. urban waterfront projects helps to enhance the quality of The public participation process must be synchronized development. with the overall development process. Otherwise, delays Most private developers recognize the potentially and scheduling conflicts will significantly damage mutual benefits of working closely with citizens and project feasibility. public interest groups. From their viewpoint, however, the Private developers and investors look to local govern- potential benefits cannot be gained unless there is an ment officials and representatives for the leadership orderly and systematic process to facilitate public necessary to manage citizen involvement in waterfront participation. This is particularly true for urban waterfront development. This, in fact, is one of the Rouse projects. It is absolutely necessary for developers to Company's basic criteria in evaluating project oppor- avoid a situation where community interests are not fully tunities in waterfront locations. Without the commitment identified and addressed early in the predevelopment of local governments to work with the private sector, stage of a project. waterfront development is extremely difficult. Once community input has been solicited, a reason- Citizen participation is necessary to ensure that public able approach should be used to refine the project sector values are not sacrificed in order to accommo- proposal. That is, the recommendations and objections date private development. It is likewise needed to make voiced by citizen groups should be evaluated in terms sure that development opportunities are not eliminated of their validity and feasibility A degree of flexibility must by a small vocal minority of citizens. The public and be maintained during this process so that a developer private sectors must work together to create a manage- can explore alternative solutions to the problems able community involvement process that respects both identified by citizens. public objectives and private property rights. T 6-7 Controversy over the Harborploce project in Baltimore was generated primarily by the public's misconception of the development concept. 213 ,evaluation. Given the numerous disjointed and incre- mental actions affecting the development process, a set of clearly stated project objectives is absolutely neces- sary to provide a sense of direction and overcome the objections to development. If is clear that a great deal can be learned from the initiatives taken by local governments, and private urban waterfront development opportunities are greatly enhanced when local governments and private devel- Communication is the key element of this process. All opers fake a cooperative approach to project develop- too often a misunderstanding regarding the developer's menf. Local governments are most effective when intentions creates misguided community opposition. waterfront development is identified as one unified Baltimore's Harborplace project, for example, generated concern instead of a conglomeration of separate a great deal of citizen opposition primarily because it responsibilities and interests. It is desirable for public was perceived as a conventional suburban shopping sector planning, zoning, design, and management mall ill-suited for the city's waterfront. Despite tremendous policies to relate specifically to the waterfront areas of a efforts by the Rouse Company to correct this misconcep- city and be managed by one authority or office. tion, if took a public referendum to determine the fafe of The case study projects indicate that the efforts of the project. Furthermore, opponents of the mayor on private development interests are generally more suc- other issues created, fostered, and promoted the cessful if specifically tailored to respect the waterfront misconception. Often major development projects get management structure and policies of local jurisdictions. caught up in politics that have nothing to do with the Private developers and investors have greater opera- project. , tional flexibility than local governments and should use It is clear that local governments and private the freedom to respond more effectively to different developers share the responsibility for facilitating com- development opportunities. The best approach is a munity involvement in the development of urban development strategy that is sensitive to public sector waterfronts. The process used-to encourage public priorities and responsibilities, yet firmly embraces private participation should be structured to minimize delays sector objectives. and uncertainty, while retaining the flexibility necessary The ultimate success of any development effort not for a developer to respond to the dynamic factors only depends upon its sensitivity to public sector priorities influencing shoreline development. While this balanced but also how responsive if is to the unique qualifies approach may be difficult to maintain, it is certainly defining a specific waterfront. The types of uses and worth the effort. facilities should be selected and designed based on an extensive analysis of environmental factors and market Major Development Lessons conditions. This analysis should be structured to assess The 12 case studies contained in chapter five clearly both the immediate and long-range implication of each show the broad range of development opportunities variable. offered by urban waterfronts. In each case, the types of uses, scale, and pace of development activity, public and private involvement, and other project characferis- tics are a unique reflection of the waterfront's location, jurisdictional structure, and urban context. While the projects are different in many ways, collectively they provide several important lessons regarding urban waterfront development. One important lesson concerns the controversy gener- ated by waterfront development projects. The amount of waterfront land in a city is usually very limited and decisions regarding development are often challenged by government agencies, citizen organizations, and private interest groups. The intense competition among various interests for access and use of the shoreline can magnify the impact of development decisions. There- fore, it is very important to understand the basic values motivating development of a waterfront project prior to initiating preclevelopment activities, Without an ex- pression of the fundamental objectives of a project, 7T77'r'1"-- there is no basis for rafional decision making or 6-8 Harbor Plaza in Stamford, Connecticut, demonstrates that office development does not necessarily prohibit water-dependent uses of an urban waterfront site. 214 The case study projects show that a plan is absolutely essential to guide the development of an urban waterfront. As an instrument to effect change, a waterfront development plan should, at minimum, consist of a physical site design, a financial strategy, and a phasing program. The best waterfront plans are specific enough to provide a framework for develop- ment, yet flexible enough to respond to dynamic factors influencing project implementation. Major waterfront redevelopment programs, such as the Inner Harbor in Baltimore or Laclede's Landing in St. Louis, require several years to plan and implement. For such an undertaking to be successful, there must be a strong public sector commitment to carry the program through to completion. In this respect, if is very important to maintain the momentum of the program to ensure continued funding and public support. However, it may be difficult to do this within the 10- to 20-year time frame typically associated with a major redevelopment pro- Photo credit: Jim Wilson gram. One very effective way to maintain project momentum is to stage festivals or special events along the waterfront during times when actual development activity is slowed down. Cultural and recreational programming is a relatively low cost way to generate excitement and interest in the waterfront redevelopment project. Public announcements and promotions of various community activities reinforces the idea that progress is taking place and the waterfront develop- menf program is producing results. The recent experiences in cities undergoing waterfront redevelopment emphasize the need to give greater consideration to management and maintenance re- quirements, Rarely has this concern been given ade- quate attention, and if is fundamental to the long-term viability of a project. Management and maintenance responsibilities must be addressed during the early stages of preclevelopment and continuously revised and updated throughout the development process. Finally, the local government representatives and private development interests should be very careful not to be blinded by the reflection of the wafer: that is, the amenity of the 'water's edge will not compensate for poor judgment and bad management in developing urban waterfront sites. In fact, the difficulties of shoreline development will only be exacerbated by incompetent development efforts. Waterfront development oppor- funities require more than just wafer and land, there must be sharp entrepreneurial skill, public leadership, and market demand to produce successful projects. 6-9 The Pride of Baltimore and Sloop Providence were main attractions at a waterfront festival held in Alexandria, Virginia. 215 The adaptations to new functional requirements over time have resulted in a reoccurring cycle of waterfront development. The current rediscovery of waterfront sites as potential opportunities for economic development and public enjoyment represents the continuation of this pattern of reuse. Future Development Although current redevelopment activities in a few Opportunities cities date back to the late 1950s, this latest cycle of reuse is in its infancy. Throughout North America, public As urban waterfront development efforts continue in officials and private development interests are investi- cities and towns across North America, it is important to gating waterfront development opportunities, and the step back from the projects under development and level of development activity during the last five years consider what the opportunities will be for waterfront should continue to rise through the 1980s, development in the future, Certainly waterfront develop- Future waterfront development opportunities will be ment in the years to come will differ from what has influenced by several factors. For instance, if government occurred in the past. However, it is safe to assume that regulations affecting shoreline uses become less re- future development efforts will depend on the same type strictive in many jurisdictions, then opportunities will exist of forward vision and determination characterizing for the development of waterfront sites previously contemporary projects, reserved for wafer-dependent uses. If this occurs, By tracing the historical role of urban waterfronts in the developers will have much greater flexibility to respond development of cities, it is apparent that waterfronts to market demands, This shift in policy is very probable change in response to dynamic demands for new uses. in cities where economic revitalization is necessary. **#Ajk Gr6 '77 MrW Luc t - f! 6-10 Future waterfront development opportunities in Seattle could be greatly improved if government regulations affecting shoreline uses become less restdctive. 216 Underused or abandoned industrial sites should con- finue to provide opportunities for waterfront develop- ment. As older manufacturing operations either relocate or go out of business, facilities and sites should become available. The extent to which these waterfront sites and buildings are redeveloped will depend on the eco- nomic feasibility of conversion. Many future urban waterfront development oppor- tunities could be provided by the reuse of surplus Photo credit: Jim Wilson. government property The federal government has designated several waterfront properties as surplus and available for disposition to local governments. Many of these properties are large military complexes and could be redeveloped along the lines of the Charlestown Navy Yard in Boston. New development opportunities could also be cre- ated by the reuse of older commercial airports located along urban waterfronts. As air travel continues to decline, commercial operations could be consolidated at modern'regional airports located outside of the metropolitan areas. The older city airports could be f F--, closed and redeveloped as large-scale mixed-use projects. Some of the revenues generated by redevelop- ment could be placed in a special fund to support ground transportation improvements to make the region- al airport more easily accessible to the city residents, In addition, by removing the airport operation outside the inner city, many waterfront areas would no longer be adversely affected by the noise generated by aircraft. Opportunities to develop large-scale mixed-use proj- 6-12 The Ford plant, an old federally owned warehouse located in Alexandria, Virginia, is the type of facility that could offer waterfront ects in cities where waterfront areas are in need of development opportunities in the future. complete revitalization should continue. The emphasis will be on providing a balance between revenue- generating use and other uses. This requirement will There may be a renewed interest in urban waterfronts reflect the need to cover the high cost of maintaining providing transportation functions. Water taxis and waterfront projects without placing the burden an local passenger ferries are gaining popularity although the governments or individual users. financial viability of the operations may remain question- able. Certainly this potential should not be ignored, In future years, urban waterfront development will continue to call for cooperation between public and private development interests. Co-development arrange- menfs with local governments sharing the risks and financial profits of development will become more prevalent. It appears that the demand for urban waterfronts to provide re creational opportunities will continue to esca- late, The factors contributing to this demand in the 1970s -q @P" 4.4 will be stronger in the years ahead. The orientation of this -:1 kil, demand, however, is shifting from primarily traditional water-based sports and programs to a broader range of leisure activities related more to urban living. M. No matter what the form and nature of development, one thing is certain; urban waterfronts will be the focus of the development activity in cities throughout North America in the years ahead. Public and private sector leaders will concentrate on creative solutions to the problem associated with waterfront development and ------ work together to recapture these valuable urban amenities. 6-11 The Charlestown Navy Yard project in Boston clearly shows the benefits of redeveloping surplus govemment property. 217 Metric Conversion Table Meters feetxO,305 Kilometers Miles x 1,609 Square Meters =,square feet x 0.093 Square Kilometers= square miles x 2.590 -Cvbic Meters = cubiefeetxO.028 Cubic Meters = cubic yards xO.765 Hecta;res = acresxO.405. (a heci is 10,000 square meters) DATE DUE -7@ GAYLORD No. 2333 PRINTED IN U.S.A. 3 6668 14107-1557