Ord. 1517-1 2016-07-25ORDINANCE NO. 1517-1
An Ordinance of the City Council of the City of Pearland, Texas, amending
the 2015 Comprehensive Plan to include the SH 35 Redevelopment Plan
and act as a guide for regulating land use within the incorporated limits of
Pearland; containing a savings clause, a severability clause and a repealer
clause; and providing an effective date.
WHEREAS, Local Government Code §211.004 requires a municipality desiring to
regulate the use of land within its corporate limits to adopt a comprehensive plan for future
development; and
WHEREAS, the City Council desires to set goals, objectives, policies, and criteria
for Pearland's physical growth; and
WHEREAS, it is within the context of the Comprehensive Plan that zoning
ordinances and other development regulations are enacted and have legal standing; and
WHEREAS, a public hearing was held on June 20, 2016, to provide citizen input
regarding the proposed amendment to the 2015 Comprehensive Plan; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That City Council hereby adopts the SH 35 Comprehensive Plan
amendment attached hereto as Exhibit "A" as a guide for regulating land use within the
incorporated limits of the City.
Section 2. Savings. All rights and remedies which have accrued in favor of the
City under this Ordinance shall be and are preserved for the benefit of the City.
Section 3. Severability. If any section, subsection, sentence, clause, phrase or
portion of this Ordinance is for any reason held invalid, unconstitutional or otherwise
unenforceable by any court of competent jurisdiction, such portion shall be deemed a
separate, distinct, and independent provision and such holding shall not affect the validity
of the remaining portions thereof.
ORDINANCE NO. 1517-1
Section 4. Repealer. City of Pearland Ordinance No. 943 and all subsequent
amendments thereto are hereby repealed.
Section 5. Effective Date. The Ordinance shall become effective immediately
upon approval of its second and final reading.
PASSED and APPROVED ON FIRST READING this the 11th day of July,
A. D.. 2016.
ATTEST:
kY NG L•/FI
Y SEC' ETARY
TOM REID
MAYOR
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PASSED and APPROVED ON SECOND AND FINAL READING this the 25th day
of July, A. D., 2016.
2
TOM REID
MAYOR
ORDINANCE NO. 1517-1
ATTEST:
UNG V IN
TY SRETA
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
3
Ordinance No. 1517-1
Exhibit "A"
SH 35 Corridor Redevelopment Strategy
June 2016
Prepared for:
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Prepared by:
411110
Ricker Cunningham
8200 South Quebec Street
Suite A3.104
Centennial, CO 80112-4411
Ph: 303.458.5800
Fax: 303.458.5420
nckercunn+ngham.com
Together with: Kimley-Horn
2201 West Royal Lane
Suite 275
Irving, TX 75063
Ph: 214.420.5600
www.kimley-horn.com
1
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Acknowledgements
Pearland Economic Development Corporation Board of Directors
Rushi Patel
Lucy Stevener
Brandon Dansby
Jeff Barry
Mona Chavarria
Hugh Patton
Reid Wendell
Chair
Vice -Chair
Secretary
Board Member
Board Member
Board Member
Board Member
SH 35 Redevelopment Strategy Advisory Committee Members
John Loessin, Owner
Lata Krishnarao, Director
Carol Artz-Bucek, President / CEO
Manhar Daz, General Manager
Dr. Elizabeth Smith, Owner
Brandon Dansby, Sr. Vice President and CRA Officer
Gary Idoux, Market President
Mark Ingram, Director of Traffic Engineering
Alan Mueller, Vice President
Tom Alexander, Owner
Keith Ordeneaux, Energy and Resource Manager
Matt Buchanan, President
Ace Hardware
City of Pearland Community Development
Pearland Chamber of Commerce
Best Western
Pearland Vision Center
Pearland State Bank
PEDC Board of Directors
Capital Bank
Cobb, Fendley and Associates, Inc.
Gromax Development
TA Properties
Pearland ISD
PEDC
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Table of Contents
Section
Acknowledgements
Executive Summary
Introduction
Pearland Economic Development Corporation
Purpose
Approach and Methodology
Study Area (Boundaries)
Participation and Input
Past Efforts
Report Format
Conclusion
Existing Conditions (Study Area)
Area and Segment Details
Physical Conditions
Utilities and Pipelines
Roadways and Railways
Bikeways and Trails
Natural Resource Extraction Facilities
Hazardous Contaminants
School Districts
Parks and Open Space
Page
1
8
Section
Zoning
Existing Land Use
Future Land Use Plan
Parcel Characteristics
Summary
Market Overview
Purpose and Methodology
Real Estate Industry Trends
The Changing Face of Space
Economic and Demographic Indicators
Trade Area Definition
Age Cohort Migration
Psychographic Profile
Market Supply and Demand Conditions
Residential
Retail
Office
Industrial
Target Industry Analysis
Market Share
CEVAEAR:
ANIC 1:4VI WAIF N1 COAX1NA"Nhr
Page
25
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Table of Contents (cont'd)
Section
Framework Plan and Catalyst Concepts
Framework Plan Goals
Catalyst Investment
Elements of Catalyzing Concepts
Catalyzing Criteria
Catalyst Projects
Economic Feasibility
Leveraged Investment
Implementation
Vision
Guiding Principles
Development Approach
Corridor -Wide
Catalyst Project (Concepts)
Conclusion
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52 Appendices
A: PEDC Accomplishments
B: Stakeholder Input
C: Resource Document Recommendations
D: Segment Maps
E: Market Maps
F: Lifestyle Segment Profiles
G: Target Industry Detail
H: Catalyst Project Development Proformas
89 I: Zoning and Development Regulations
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Table of Contents (cont'd)
Tables:
Table 2-1:
Table 2-2:
Table 2-3:
Table 3-1:
Table 3-2:
Table 3-3:
Table 3-4:
Table 3-5:
Table 3-6:
Table 3-7:
Table 3-8:
Table 3-9:
Table 3-10:
Table 3-11:
Table 3-12:
Table 3-13:
Table 3-14:
Table 3-15:
Table 4-1:
Table 4-1:
Table 4-1:
Table 4-1:
Table 4-1:
Table 4-6:
Acreage and Parcels by Zoning
Property Ownership by Study Area Segment
Property Utilization by Study Area Segment
Residential Trade Area Demographic Overview
Trade Area Top Psychographic Segments
Trade Area Historical Building Permit Activity
Trade Area Historical Sales Activity / Existing Units
Trade Area Total Residential Demand
Trade Area Demand for Detached Ownership Units
Trade Area Demand for Attached Ownership Units
Trade Area Demand for Rental Units
Trade Area Retail Market Conditions
Trade Area Retail Demand from Leakage and Growth
Trade Area Office Market Conditions
Trade Area Total Office Demand
Trade Area Industrial Market Conditions
Trade Area Total Industrial Demand
SH 35 Corridor Potential 10 -Year Demand
Catalyst No. 1: Economic / Fiscal Impact
Catalyst No. 2: Economic / Fiscal Impact
Catalyst No. 3: Economic / Fiscal Impact
Catalyst No. 4: Economic / Fiscal Impact
Catalyst No. 5: Economic / Fiscal Impact
Catalyst Project Leverage Summary
Figures:
Figure 2-1:
Figure 2-2:
Figure 2-3:
Figure 2-4:
Figure 2-5:
Figure 2-6:
Figure 2-7:
Figure 2-8:
Figure 2-9:
Figure 3-1:
Figure 3-2:
Figure 3-3:
Figure 3-4:
Figure 3-5:
Figure 3-6:
Figure 3-7:
Figure 3-8:
Figure 3-9:
Figure 3-10:
Figure 3-11:
Figure 3-12:
Figure 3-13:
Figure 3-14:
Figure 3-15:
Figure 3-16:
Figure 3-14:
Figure 3-15:
Figure 3-16:
Figure 4-1:
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SH 35 Study Area Boundaries and Segments
Floodplains and Drainageways
Utility Lines
Roadways
Traffic Counts
Bikeways, Roads and Railroads
School Districts
Parks and Open Space
Zoning
Residential Trade Area
Population Density by Census Block (2013)
Household Density by Census Block (2013)
1990 Baby Boom Population
2010 Baby Boom Population
1990 Gen X Population
2010 Gen X Population
1990 Gen Y Population
2010 Gen Y Population
Trade Area Demand for Residential Units by Income
Retail Trade Area
Trade Area Retail Supply
Trade Area Retail Supply (Heat Map)
Office Trade Area
Trade Area Office Supply
Trade Area Office Supply (Heat Map)
Industrial Trade Area
Trade Area Industrial Supply
Trade Area Industrial Supply (Heat Map)
SH 35 Redevelopment Framework Plan
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Section is
Executive Summary
During the first quarter of 2014, Rickert Cunningham (RC), Real
Estate Economists and Community Strategists, together with the
Land and Transportation Planning Division of Kimley-Horn
(collectively the Consultant Team), were retained by the Pearland
Economic Development Corporation (PEDC) to assist with
preparation of this State Highway (SH) 35 Corridor Redevelopment
Strategy. Redevelopment of the city's principal commercial
corridors, including the SH 35 Corridor / Main Street was identified
as one of nine key initiatives in the Pearland 20/20: A Blueprint for
Pearland, Texas, an economic development strategy adopted by the
City and PEDC Board in October 2012. Their repositioning was also
acknowledged as a priority action in the City's recently updated
Comprehensive Plan. In the context of the SH 35 Corridor, an
additional objective was "articulation of a plan and program for
implementation that would most effectively leverage recently
completed TxDOT improvements within the public right-of-way."
Study Area (Boundaries)
The portion of the SH 35 Corridor which was the subject of this
effort generally extends 7.2 miles from Clear Creek on the north, to
approximately Hastings Cannon Road on the south, locations that
correspond with the city's northern and southern municipal
boundaries. Among the 540 properties and 2,600 acres which
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comprise the Study Area, most are located contiguous to the Main
Street Corridor along its eastern and western edges. Another
significant concentration is found within the Old Townsite District.
Major roadways, some of which provide connectionsto points east
and west within and beyond the city limits include: McHard Road,
Orange Street, FM 518 / Broadway Street, Walnut Street, Magnolia
Street / John Lizer Road, Bailey Road/Oiler Drive, and Dixie Farm
Road, bisect the Study Area.
Participation and Input
In addition to technical analyses, a variety of venues provided
opportunities for stakeholders and the community at -large to offer
input regarding a vision for the SH 35 Corridor. These included focus
groups and one-on-one meetings with business and property
owners, lenders and developers; and, an open house where a
framework for public improvements and an overview of supportable
catalyst concepts were profiled. Overseeing the entire strategy
process was an Advisory Committee of representatives from various
private, public and institutional entities. As specialists in their
respective fields and familiarity with the Corridor and community
at -large, their input and participation was considered essential for
the success of the project.
Shared goals among the participants included a desire for an
enhanced physical realm, stronger vehicular and non- vehicular
connections and accommodations (bicycle and
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
pedestrian); and, a climate for investment considered favorable by
business owners and operators. Many identified the need for a more
diverse and supportive mix of businesses, and more attention to the
condition of the properties by their owners.
Existing Conditions
The Study Area and its existing pattern of development, while not
atypical of other established corridors in communities located on the
periphery of a major metropolitan area, possesses conditions, both
visible and non-visible, which can influence investment decisions.
Among the most pervasive are those related to deficient
infrastructure, existence of waterways, and presence of natural
resource extraction facilities. Capital improvements, onsite and
offsite, that will be necessary to either eliminate or mitigate the
physical challenges present include: stronger connections, both
vehicular and non -vehicular; new and relocated utility lines; public
and open spaces and landscaping; and, other enhancements that will
promote greater contiguity in the character and quality of its built
environment.
Market Overview
Market analyses associated with an area -wide strategic planning
assignment such as this one are essential whereas they serve to
provide a "reality check" for conceptual development
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recommendations; and an independent "story" to tell potential
investor audiences.
The vision for a redeveloped SH 35 Corridor is a business park
environment with business and industry being the dominate land
uses, and commercial retail and restaurants and possibly
institutional facilities, secondary uses. Based on the investigation of
market conditions completed for this effort, the Study Area is well-
positioned to compete for market share among these product
types, with attainable market share ranging from 2% to 25%. While
actual investment levels will be dictated by numerous factors
including: the physical capacity of the area to accommodate
development; desire of property owners to invest, reinvest or
reposition their parcels to advance the objectives stated herein;
and, effectiveness of PEDC and the City to "ready the environment
for investment." and commit, long-term, to the stated objectives
explained herein.
Framework Plan and Catalyst Concepts
Acknowledging that it will take many years and multiple actions bya
host of advocates to realize a redeveloped SH 35 Corridor; the
experience of other communities that have successfully advanced
similar initiatives has shown that the strategic approach needs to
include area -wide and project -specific recommendation. To this
end, the SH 35 Corridor Framework Plan identifies the location of
proposed public improvements and boundaries of districts where
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
certain land uses will be encouraged to locate. Proposed amenities
and enhancements to the public realm include those that will unify
uses, connect centers of activity, and improve its aesthetic appeal.
Projects with the potential to both demonstrate support within the
market for untested product types, and catalyze private investment,
include both capital expenditures and private developments.
Among the five project concepts identified, they offer either near-
term development potential, or the ability to mitigate adverse
conditions. Each one and their purpose is described as follows.
Catalyst No. 1 - Northern Gateway and Corridor Improvements
Purpose: Offer a business location for office and industrial users
seeking a high quality setting offering supportive infrastructure and
amenities and access to points north and south of Pearland and
Houston Metropolitan Area.
Catalyst No. 2 - Business Park North
Purpose: "Ready" or position properties (both private and public)
for investment by completing due diligence research efforts on
behalf of private sector property owners by identifying and
eliminating barriers to investment, and streamlining the timeframe
between site acquisition and / or completion of vertical
improvements.
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Catalyst No. 3 - 3a. Restaurant and Entertainment Destination and
3b. Main Street Buildings and Urban Environment
Purpose: Establish a destination for residents and visitors with
commercial venues unique to the area and its "gritty character" and
compatible with existing uses that correspondingly provide an
environment to incubate local businesses and grow Old Town's
dining and shopping offerings.
Catalyst No. 4 - 4a. Old Town Esplanade and 4b. NewCommunity
on former Alvin Community College Campus
Purpose: Introduce pedestrian and streetscape improvements
which solidify Old Town as a destination for residents and visitors,
balancing vehicular and non -vehicular movement, connecting
existing and future centers of activity, and catalyzing property
investment and reinvestment.
Catalyst No. 5 - Business Park South
Purpose: Offer an alternative to the northern segment of the
Corridor for business and industry seeking a highly amenitized
environment with expansion opportunities and proximity to
regional north -south transportation corridors and points south of
the Houston Metropolitan Area.
The strategic approach for revitalizing the SH 35 Corridor is based
on proof that private investment follows public commitment.
Therefore, a primary objective is to "leverage" community
resources, amenities and improvements, in an effort to encourage
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
private development. While the public sector lead rarely realizes a
favorable return on their investment during the early phases of the
redevelopment program, most if not all do over the mid- to long-
term. Collectively, the catalyst concepts have the potential to
generate over $240 million in new private investment, and require
less than $8 million in public investment, for an overall public :
private return on investment of 30: to 40:1 ($30 to $40 spent by the
private sector for every $1 spent by the public sector).
Implementation
The strategy for promoting development and redevelopment within
the SH 35 Corridor is based on an awareness of existing conditions
desired outcomes, and market realities. Its major components
include a Vision, Guiding Principles for decision-making, and
Development Approach to positioning the Area for investment. A
fourth component, Actions to eliminate obstacles and capitalize on
opportunities, are provided in the full report.
Vision
The recommended vision for revitalization of the SH35 Corridor
Study Area is ... a high quality and consistently -designed
employment and business environment with compatible land uses
and supportive amenities. It will be the community's principal center
for new and expanding industries with less impactful operations
concentrated in its northern segment. Commercial businesses will
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primarily be those that support the daytime needs of employers and
their employees such as restaurants, supply stores, and maintenance
facilities. Larger format commercial businesses will be
encouraged to locate near the Corridor's core, where there is
already an established base. Along the southern edge of the central
segment, the Old Townsite will include a broad mix of product types
within a limited number of land use categories, primarily residential,
commercial retail and office. Once the community's first district for
commerce and industry, new investment will leverage established
residential neighborhoods, mature vegetation, and a gridded street
system. Uses will build on what is already there, attracting both
residents and visitors, and extending their stay. Public improvements
will include spaces to host community events while also connecting
various activity areas. Early development and redevelopment
projects will be encouraged to include both public enhancements
and private uses that may, or may not as yet, be tested in the local
market, as demonstrations of what is envisioned over the near -and
long-term.
While this SH 35 Corridor Redevelopment Strategy is intended to
inform and guide future growth in the Study Area over the near -
and long-term, it is a policy, not regulating document. Therefore,
the only way to protect the expressed vision and advance the
desired improvements, is to ensure alignment among relevant City
regulatory resources over the Tong -term; and provide guidance that
fosters sound decision-making by the City's leaders over the near-
term. Information to assist public officials is presented here as
guiding principles. Guiding Principles are defined as "representing a
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
broad philosophy that guides the organization throughout its life in
aII circumstances, irrespective of changes in its goals, strategies,
type of work, or the top management filter for decisions at all levels
of the organization." Each one, presented below, while general in
nature, is intended to reflect existing challenges, potential
opportunities; and, input from experts in the fields of finance,
development, business, and industry.
Guiding Principles
1. The City will maintain a proactive and sustained attitude
towards redevelopment that is consistent with the vision for the
Corridor.
2. The community's vision for the Corridor will be reflected in
supporting policies and regulations.
3. Industrial and commercial land uses will be encouraged in
appropriate locations so as to maintain the desired character of
each segment of the Corridor.
4. Development standards will be appropriate for the expressed
vision and catalyzing concepts within the various segments of
the Corridor.
5. Property owners will be provided with knowledge and analyses
(due diligence) resulting from this process in an effort to
encourage desired investment.
6. Capital projects will be phased to encourage new investment,
first, and improve conditions for existing uses, second.
7. Enhancements to public spaces will be consistent with the
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vision for an employment center environment and include new
and replacement projects despite the age and condition of
existing improvements.
8. Policy, vision and regulatory documents superseded by the
objectives expressed in this SH 35 Corridor Redevelopment
Strategy will be updated and in the interim variances afforded
for select projects deemed consistent with the objectives stated
therein.
Development Approach
Any approach by a public entity to encouraging investment in a
defined geography should cultivate streamlining the delivery of
both capital improvements, and either development -ready or
unimproved sites, to the market. To this end, the approach for
redeveloping the SH 35 Corridor involves public participation in two
arenas -- the Study Area as a whole and distinct projects with an
opportunity to realize near-term investment.
The approach here assumes PEDC, together with the City, will act as
the master developer of improvements in the Study Area, and as
such will lead the financing and contraction of off-site infrastructure
and enhancements, as well as assist with select on-site
improvements, particularly those completed in an effort to better
position key parcels for investment and expedite building
construction.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
As the City's lead agency for industry attraction, PEDC will provide
oversight and act as the lead on development requests, and use its
resources to fund infrastructure and utility improvements; while the
City will lead enforcement of regulations. As the entity with the
largest and longest -term interest in the area, and the City's agent
for advancing economic initiatives, PEDC should consider, if
resources are available, early and ongoing acquisition of property a
priority, particularly given the numerous advantages for the private
sector when acquiring property from public and non-profit entities,
among them -- lower carrying costs, less uncertainty regarding
entitlements, and, the potential for monetary incentives.
Financing mechanisms used to fund improvements in the Corridor
should include a range of resources, used individually and in
different combinations. Possible sources include: grant and bond
revenues, low or no interest loans, future district revenues, and
existing economic development program dollars. Additional
sources could include: bank, state and federal matching funds,
municipal resources, private fees and incremental tax dollars.
Capital improvements, delivered by the public sector, that make an
area attractive for development and stabilize the investment
climate, should be considered an economic contribution with
monetary value, whereas they have the potential to close a financial
gap. Matching economic development incentives to direct
investments in the physical environment, and indirect contributions
to the fiscal concerns, are frequently the most successful approach.
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As the organizational entity that will assume responsibility for the
revitalization effort; and, be the one to maintain development
oversight; as well as, fund, finance and negotiate development
agreements and leases; PEDC should also be the one to manage and
market properties, either together with or on behalf of property
owners. Additional support should be provided by representative
governments, advocacy entities and regional economic
development organizations. Further, a carefully designed and
consistently administered marketing program should be an early
actionable item. Individuals and organizations that support and
promote investment, along with local officials and business
associations, need to coordinate their marketing efforts. Ideally,
the City and PEDC, will establish common goals and objectives,
along with consistent policies, and whenever possible, share and
leverage resources. When private interests request assistance with
marketing their properties to developers or other users (either on
their behalf or in partnership), various approaches should be
considered including: issuing developer requests, retaining brokers,
and attaching these parcels to other community -wide efforts to
attract business and industry to the local market.
In addition to supporting PEDC, the City's principal role in this
revitalization effort will be to align and enforce all relevant policy
and regulating resources with the expressed vision and objectives
for the Corridor. In this context, the City will be expected to
establish standards of development that will effectively minimize
private sector investment risk by ensuring a consistent and quality
building environment. The experience of many, if not most,
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
communities involved in similar initiatives has shown that while a
higher standard of development must be established in areas
targeted for reinvestment, they should be appropriate for the
desired uses and reflect intended outcomes. In addition, if during
the early phases of the redevelopment effort, these standards have
a financial impact that renders a desirable project infeasible, the
lead entity should consider providing resources to fill any resulting
economic "gap." During its later phases, it is highly likely that
market conditions will have reached a state of equilibrium wherein
project revenues should be sufficient to cover this type of project
cost.
Conclusion
The SH 35 Corridor, with its mix of both new and established
businesses and industries, is a formidable economic engine, that's
contribution to the community could be diminished without
adequate attention and resources. The success of this effort will
depend on the delivery of a high-quality, consistently operated and
maintained business environment, devoid of obstacles, and
supported by sustained public support. To this end, the SH 35
Corridor Redevelopment Strategy is intended to inform how the
resources of both PEDC and the City are prioritized to ensure that its
redevelopment is accomplished, while balancing private and
community investment objectives.
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Whereas the Study Area has many property owners, and each one
maintains individual entitlements, achieving an appropriate balance
of uses will be highly dependent on the partner entities' efforts and
their willingness and ability to employ a combination of policies,
incentives and regulations to inform and guide investment. Beyond
its uses, successful development of the Study Area will depend on a
commitment to quality over quantity as reflected in a unified
program of signs, gathering places, and landscaped features;
appropriate transitions between uses; access to, yet preservation of
natural amenities; and, improvements of a suitable scale.
Experience has shown that publically-initiated redevelopment
efforts such as this one, are accomplished in multiple phases, and
usually over several years. The authors of this report expect the
same for the Study Area, however, based on PEDC's past
performance, it is highly likely that the recommendations outlined
here, will be completed more quickly than anticipated. This
statement is supported by the record of accomplishments
completed by the PEDC, both prior to and following adoption of the
20/20 Blueprint Plan.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Section 1:
Introduction
During the first quarter of 2014, Rickert Cunningham (RC), Real
Estate Economists and Community Strategists, together with the
Land and Transportation Planning Division of Kimley-Horn
(collectively the Consultant Team), were retained by the Pearland
Economic Development Corporation (PEDC) to assist with
preparation of this State Highway (SH) 35 Corridor Redevelopment
Strategy (also referred to as - this SH 35 Corridor Strategy,
Redevelopment Strategy and Strategy). Redevelopment of the
city's principal commercial corridors, including the SH 35 Corridor
(also referred to as - the Corridor, and Study Area) was identified as
one of nine key initiatives in the Pearland 20/20: A Blueprint for
Pearland, Texas (also referred to as - the 20/20 Strategic Plan, and
20/20 Plan), an economic development strategy adopted by the
PEDC Board in October 2012. The 20/20 Strategic Plan was
commissioned by PEDC, together with local partners in
government, education, healthcare and business, for the purpose
of"establishing a shared vision for the community's future growth
and an action plan to achieve it."
PEDC and Pearland 20/20: A Blueprint for Pearland, TX
As explained in the City of Pearland Comprehensive Plan (2004),
"The PEDC was created by the City of Pearland in 1995, to promote
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the Pearland area for business expansion and relocation. The PEDC is
a non-profit corporation, supported by a voter approved 1/2 cent
sales tax that operates as a department of the City. It is staffed by
City employees and managed by a Board of Directors who together
create and implement programs to aid in the economic development
of the community."
The specific initiative and strategic actions that this SH 35 Corridor
Redevelopment Strategy advances are presented as follows:
Key Initiative No. 3.0 Optimize the development
potential of Pearland's principal commercial corridors.
Pearland has three primary corridors — SH 288, FM
518/Broadway, and SH 35 — all of which have the potential
to support additional business and pedestrian activity.
Grand Boulevard in the Old Townsite also has
transformational potential. However, while pockets of
quality development have occurred, the overall look and
feel of these corridors is being held back by areas that do
not reflect community standards. Such dynamics can
inhibit investment appeal to companies considering
relocation. Positioning these corridors to support catalytic
development will be a high priority as Pearland continues
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
to mature and build its stock of primary jobs.
Strategic Action - Leverage recent road improvements to
create a SH 35 Redevelopment (Plan) Strategy.
Strategic Action - Formalize a process, toolkit and priorities for
redeveloping aging Pearland neighborhoods and character
districts.
City of Pearland and 2015 Comprehensive Plan
In addition to furthering recommendations presented in the
20/20 Plan, this SH 35 Redevelopment Strategy could also move
forward priority action tasks identified in the 2015
Comprehensive Plan, as long as they are revised to reflect
objectives for the Study Area which are defined in greater detail
in subsequent sections of this document. Those priorities
include the following:
Growth Capacity and Infrastructure
Strategic Priority 1: Cost of Growth / Land Use Study —
understand the fiscal implications for City government of how
remaining developable land in Pearland's city limits and
Extraterritorial Jurisdiction (ETJ)
CEAR
Strategic Priority 2: Regular Updating of Utility Master Plans —
regularly update of the three key utility infrastructure master
plans — water, wastewater and storm drainage — especially
during periods of rapid land development activity
Mobility
Strategic Priority 2: Targeted Capital Projects — provide ongoing
investment in street and highway construction, extensions and
upgrades will remain a prime focus of municipal government
Strategic Priority 3: Sidewalk Network Upgrades — provide
needed sidewalk improvements (in and around neighborhoods),
to encourage walking and facilitate a safe walking environment
Housing and Neighborhoods
Strategic Priority 1: Greater Housing Variety — focus on diverse
housing types and mixed-use development on various special
districts within Pearland, (e.g., Old Townsite); consider a "flex"
district overlay which allows for a series of residential
development options and lot sizes
Strategic Priority 2: Regulatory Relief for Redevelopment —
consider adding new or adjusting current Unified Development
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Code (UDC) provisions that allow for relation of specified
standards, especially to make a clearer connections to the
community objective of encouraging desire redevelopment
activity (e.g., Old Townsite)
Strategic Priority 3: Expanded Focus on Neighborhoods —
explore options, and research models for neighborhood
planning and an associated coordination of services
Section five of the Comprehensive Plan defines the City's intentions
with regard to maintaining and growing its economic development
infrastructure. In the context of that discussion, there are
numerous references to the 20/20 Blueprint Plan, including a "next
level" of action steps under the original nine core strategic actions.
Those that most closely align with recommendations for a
revitalized SH 35 Corridor include actions which will leverage
recent TxDOT road improvements, and beautify public spaces and
gateways.
Experience has shown that publically-initiated redevelopment
efforts such as this one, are accomplished in multiple phases, and
usually over several years. The authors of this report expect the
same for the Study Area, however, based on PEDC's past
performance, it is highly likely that the recommendations outlined
here, will be completed more quickly than anticipated. This
statement is supported by the record of accomplishments
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completed by the PEDC, both prior to and following adoption of the
20/20 Blueprint Plan, which is presented in Appendix A.
Purpose
The purpose of this Redevelopment Strategy, as defined in PEDC's
request for services, was to "provide a market-based plan and
implementation strategy for revitalization of the SH 35
Corridor/Main Street that would advance the expressed vision (in
the 20/20 Plan) and leverage recent TxDOTstreetscape
improvements." As presented above, this purpose statement
reflects Strategic Actions, of Key Initiative 3.0, of the 20/20
Blueprint Plan.
Approach and Methodology
The scope of work for this assignment included detailed analyses
of: conditions that could impact investment decisions (public and
private); local and regional real estate markets and industry
trends; existing physical conditions; policy and regulatory
documents that will inform design and development patterns;
and, planned initiatives and available resources. These
quantifiable analyses were supplemented by qualitative
discussions with a range of stakeholder audiences, identified
below. Major components of the proposed strategy for
furthering the proposed strategy for furthering the vision and
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
objectives identified here include: priority publically- and privately -
funded physical enhancements; market -supported concepts
including a range of uses and product types with the potential to
catalyze development and redevelopment activity; and, strategies
to overcome obstacles to, and capitalize on opportunities for,
investment. Note: A catalyst concept, in the context of this
Strategic Plan, is defined as a development and /or redevelopment
program with the potential to have a positive economic ripple effect
on properties within an area of influence. Further, while some of
the concepts are area -specific, addressing an existing condition or
circumstance, others are non- area -specific, therefore offering the
potential for multiple applications within the Corridor. An
approach to advance each one is provided in the larger
implementation discussion presented in the final section of this
report.
Study Area (Boundaries)
That portion of the SH 35 Corridor which is the subject of this
analysis generally extends 7.2 miles from Clear Creek or the
Pearland municipal boundaries on the north, to its municipal
boundaries on the south, or approximately Hastings Cannon Road.
Properties within the Area include those located contiguous to the
highway along its eastern and western edges, as well as a
significant portion of the Old Townsite District. SH 35/Main Street
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is one of the city's original north -south roadways and a significant
entryway into the community. It is bisected by several east -west
thoroughfares including McHard Road, Orange Street, FM
518/Broadway Street, Walnut Street, Magnolia Street/John Lizer
Road and Bailey Road/Oiler Drive. FM 518/ Broadway Street connects
uses in the Corridor to SH 288, a north -south limited -access highway
located in the western portion of the city. Dixie Farm Road, which
runs perpendicular to the SH 35 roadway along its eastern edge and
located south of Bailey Road/Oiler Drive, connects uses in the
Corridor to Interstate 45 (1-45) located in the eastern portion of the
city. A variety of land uses and businesses are located within the
Study Area, the dominant ones being light and heavy industrial in its
northern and southern segments, and commercial uses at its core.
While the vision for a redeveloped SH 35 Corridor does not deviate
significantly from its current land use pattern, it does encourage
concentrating compatible uses, and complementing primary uses
with secondary uses, distinct subareas or districts.
Participation and Input
As noted above, a variety of venues were provided throughout
the 15 -month strategy process for stakeholders to review and
consider the project findings and final recommendations. A
description of each one is presented as follows.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Advisory Committee
A committee of representatives from various private, public,
and institutional entities, were invited to serve as advisors to
the Consultant Team. As specialists in their respective fields
and familiarity with the Corridor and community at -Targe, their
input and participation was considered essential for the success
of the project. Advisory Committee members include:
Committee Members
Matt Buchanan
Lata Krishnarao
Tom Alexander
Alan Mueller
John Loessin
Carol Artz-Bucek
Manhar Das
Dr. Elizabeth Smith
Brandon Dansby
Gary Idoux
Mark Ingram
Keith Ordeneaux
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Members (listed here) met six times between October 2014 and
May 2015 to provide feedback and guidance on project -related
issues. In addition, they served as channels of communication
between the strategy team and organizations they represent.
President, PEDC
Director, City of Pearland - Community Development
Owner, TA Properties
VP, Gromax Development
Owner, Ace Hardware
President / CEO, Pearland Chamber of Commerce
General Manager, Best Western
Owner, Pearland Vision Center
Board of Directors, PEDC
Sr. Vice President
CRA Officer Pearland State Bank
Board of Directors, PEDC
President, Capital Bank
Director of Traffic Engineering,
Cobb, Fendley and Associates, Inc.
Pearland City Council, Pearland ISD
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Open House
An open house was conducted prior to presentation of the final
strategy document to City of Pearland appointed and elected
officials. Meeting notices were sent to all property and business
interests in the Study Area, as well as members of the Advisory
Committee and other boards and commissions. In addition, a
general notice was posted on PEDC's website. During this forum,
potential investment and reinvestment concepts were
presented and input solicited regarding their local application
given the current political and business climate.
Focus Group Meetings
Several focus groups meetings were facilitated by members of
the Consultant Team during an early phase of the strategy
process. Participants were identified from groups including:
institutions, business owners - commercial and industrial,
property owners, and lenders (public and private). Each group
was comprised of 12 to 15 people, and discussions focused on
opportunities and challenges to investment in the Study Area
and community at -Targe. The meetings were held at PEDC's
offices, but facilitated by Consultant Team members so that
individual responses remained confidential.
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas PEARLA D
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One -On -One Interviews
In addition to the focus groups, Consultant Team members
conducted confidential in-person and telephone interviews with
property owners and developers regarding past and ongoing efforts
to invest in the Study Area and community at -large. The purpose of
these discussions was to understand past challenges, as well as
share market knowledge while exploring potential development
partnerships. The interviewees (listed below) were identified by
representatives of PEDC.
Participants
Jerry Koza
Mark Ring
Edward Ferguson
Paul Grohman
Alan Mueller
David Miller
Stephan Robinson
Estate Renee McGuire
David Miller
Profax
Kemlon Products
Wal-Mart
Gromax Development
Gromax Development
PEDC
Ardent-Hardcastle Commercial Real
R West Development
Prudential Premier Properties
Client and Consultant Team Calls
Project Team calls were conducted periodically throughout the
strategy process so that its progress could be monitored, and
information about on-going occurrences in the community
(planned and proposed projects) could be shared. Representatives
of PEDC hosted the calls, while members of the Consultant Team
provided the agenda and its content.
City Leadership Updates and Other Presentations
Presentations were made by representatives of PEDC and
members of the Advisory Committee, throughout the assignment,
to select boards and commissions. Some of these groups included:
■ 20/20 Strategic Plan Committee Meeting
• PEDC Board Meeting
• Pearland Planning and Zoning Commission
• Pearland City Council
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Summary of Input
Within all of these forums, comments received tended to fall
within the following broad categories: recently completed TxDOT
roadway improvements, patterns of growth within the city, the
Corridor's business climate, physical conditions, and
opportunities for improvement and investment. Frustration was
widely expressed regarding a "lack of connection" between, and
to, businesses within its boundaries. Some industrial operators
expressed concern with the number of residential developments
that had either been approved, or were developing in locations
with the potential to experience impacts from business
operations in the Corridor.
Comments associated with what they referred to as the "protracted
TxDOT improvement project" were primarily offered by commercial
operators located in the central portion of the Study Area. Note:
This assignment started shortly after TxDOT completed the first
phase of its SH 35 roadway improvement project.
Universal goals for the Study Area included: capital improvements
to the physical realm; stronger vehicular and non -vehicular
connections and accommodations (bicycle and pedestrian); and, a
favorable climate for investment. Stakeholders expressed that
while SH 35 is a locally recognized "business address," it does not
have the regional recognition that it could if efforts were made to
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establish a cohesive physical, regulatory, and marketing program that
could be promoted throughout the Houston Metropolitan Area.
Other goals included -- more efficient use of land, supportive and
more diverse mix of businesses, and heightened attention to
maintenance of sites and buildings. Finally, participants expressed
appreciation for this and other efforts, by PEDC and the City, to
improve conditions while maintaining a supportive environment for
business and industry. Specific comments received are presented in
Appendix B of this document.
Past Efforts
Reports and analyses prepared prior to this assignment, many of
which served as a foundation for this effort, include those listed
below, in the order they were completed. Note:
Recommendations regarding amendments that would eliminate
discrepancies, and correspondingly align the objectives of these
documents and this Strategy, are presented in Appendix C.
Regardless, PEDC and City Staff should determine if amendments
to some, or all of these documents, will further the goals and
objectives stated herein related to redevelopment of the SH 35
Corridor.
• City of Pearland 2015 Comprehensive Plan
■ Parks and Recreation Master, 2015
• Beautification Strategy: City Gateways, 2014
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
• Pearland 20 / 20: A Blueprint for Pearland (Pearland
20/20 Strategic Plan), 2012, 2013
• Pearland Development Handbook
• Pearland Parks Master Plan, 2012
• Grand Boulevard Old Townsite Masterplan, 2011
• City of Pearland Capital Projects (CIP)
Report Format
This SH 35 Corridor Redevelopment Strategy is divided into the
following five sections: Introduction, Existing Conditions, Market
Overview, Framework Plan and Catalyst Concepts, and
Implementation. Each section includes: data, analyses, and
recommendations, all of which may be used to promote the
community and Corridor to businesses, industries and development
prospects.
Conclusion
This SH 35 Redevelopment Strategy has been prepared to --confirm
the vision expressed in the Pearland 20/20 Strategic Plan, inform
expenditures on capital improvements (both functional and
aesthetic), demonstrate the economic benefit and feasibility of
catalyst development projects; and, clarify the roles and
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• Pearland Public Facility Study Final Report, 2009
• Old Town / Public Facility Study (SPPRE), 2009
• SH 35 Major Corridor Feasibility Study (MCFS), 2007
• Pearland Old Town Pedestrian Plan, 2006
• Old Townsite Downtown Development District Plan, 2005
• Pearland, Texas - Code of Ordinance (Municipal Code)
responsibilities of both public and private sector individuals and
entities who will advance the strategic recommendations identified
herein. As both a planning and strategic document, it is intended to
provide the PEDC, in partnership with the City and various property
and business interests, with information to focus and prioritize their
development resources and efforts.
The ability of the SH 35 Corridor to capture a fair share of future
investment in the city will be based not only on continued growth in the
region, but on the community's willingness to commit, long- term, to
the stated objectives explained herein. While somewhat specific in its
description of a preferred vision for the Corridor and supporting physical
improvements, it is also intended to be flexible enough to respond to
market conditions that will inevitably change over the course of its
implementation. Ideally, it will be used as a guide for land use decisions,
and reference for policies and regulations.
SH 35 Corridor Redevelopment Plan — Pearland, Texas
Section 2:
Existing Conditions (Study Area)
Planning for the redevelopment of communities and markets within
them requires an understanding of key conditions, both visible and
non-visible, all of which can influence development decisions. The
discussion which follows provides an overview of those conditions
that individually, and collectively, offer an indication of how "ready"
the Study Area is for new investment and reinvestment.
Area and Segment Details
The boundaries of the SH 35 Study Area are generally the Pearland
municipal boundaries or Clear Creek on the north, Burlington
Northern Santa Fe (BNSF) rail lines on the west, Pearland-Alvin city
boundaries on the south, and eastern extent of parcels located
contiguous to the Corridor's eastern edge. It is approximately seven
miles in length and maintains more than 540 properties within its
boundaries, comprising more than 2,600 acres. Located within the
Pearland city limits and Brazoria County, it is situated in the
southcentral portion of the Greater Houston Metropolitan Area. As
explained in the previous section, several major roadways bisect the
highway within the Study Area boundaries including: McHard Road,
Orange Street, FM 518/Broadway Street, Walnut Street, Magnolia
Street/John Lizer Road, Bailey Road/Oiler Drive, and Dixie Farm
Road.
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Given its length and size, it was determined that the most efficient
approach for analyzing conditions within the Corridor was by
grouping parcels into six segments (A - F), and then reporting the
findings at a segment -by -segment, rather than parcel -by -parcel
level. Based on knowledge gained through completion of the work
described in this section, it became obvious that there are actually
three fairly obvious segments, or subareas. In the analyses
presented in the following sections of this Strategy, locations within
the Study Area are referred to as the northern, central and southern
subareas. An illustration of the boundaries of the original six
segments is presented as Figure 2-1.
SH 35 Corridor Redevelopment Plan — Pearland, Texas
Figure 2-1: SH 35 Study Area Boundaries and Segments
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Conditions analyzed and described in the discussion which follows
include:
• Physical Conditions
■ Utilities and Pipelines
• Roadways and Railways
• Bikeways and Trailways
• Natural Resource Extraction Facilities
• Hazardous Contaminants
• School Districts
• Parks and Open Space
■ Zoning
• Existing Land Uses
• Future Land Uses
• Parcel Characteristics
SH 35 Corridor Redevelopment Plan — Pearland, Texas
Physical Conditions
Physical conditions, both natural and man-made, can influence not
only the type of land uses that develop within a certain geography,
but also their format -- horizontal or vertical, above grade or below.
Taken independent of regulations, they can impact the: location and
configuration of buildings; capacity of affected parcels to
accommodate development and redevelopment; and, land use
pattern of an entire geography.
Physical conditions impacting parcels within the SH 35 Corridor
include natural features such as floodplains, drainageways, and
geologic faults; along with man-made improvements such as
utilities, pipelines, roadways, railways, natural resource extraction
facilities, and their supporting infrastructure; as well as, the
presence of hazardous contaminants. A description of man-made
resources and contaminants are presented below.
Figure 2-2 illustrates the location of major floodplains and
drainageways within and traversing the Study Area. Clear Creek,
one of the city's significant drainageways, runs through northern
and northeastern portions of Pearland in a natural state, and serves
as the Study Area's northern boundary. Two tributaries of Clear
Creek, Mary's Creek and Cowart Creek, also significant drainage
channels, bisect the Corridor within its central and southern
segments. Although no lakes or other significant bodies of water
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impact properties within the Area, existing drainageways present
sufficient influence that region -serving detention systems will be an
essential improvement in the Corridor if the level of investment
envisioned herein is realized.
SH 35 Corridor Redevelopment Plan — Pearland, Texas
Figure 2-2: Floodplains and Drainageways
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Another natural feature presenting development challenges for
parcels in the Area is a series of geologic faults, primarily
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concentrated in the northern segment of the Corridor, south of
Beltway 8, and east and west of SH 35/Main Street. Their presence
and location can be obtained from the U.S. Geological Survey. Like
other natural and man-made features, they can affect the capacity
of impacted properties to accommodate various levels of
investment.
Utilities and Pipelines
Although SH 35 right-of-way is fully improved, there is an
inconsistent pattern of developed and undeveloped parcels located
adjacent to the roadway on either sides. Figure 2-3 illustrates the
location of water and wastewater lines within the Study Area
boundaries, including gravity mains, force mains, water mains, and
storm lines, active and inactive (or abandoned). The condition,
capacity and location of these facilities relative to the structures
they serve has informed the development pattern of the Area, and
continues to impact the economic feasibility of new development
and redevelopment projects within its boundaries.
Overhead utility lines, both minor and major, are visible throughout
the extent of the Corridor. While not uncommon in more
established transportation corridors located on the fringe of major
metropolitan areas, they do create a visual blight that can adversely
impact market perceptions and correspondingly property values.
SH 35 Corridor Redevelopment Plan — Pearland, Texas
Figure 2-3: Utility Lines
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Roadways and Railways
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SH 35 is one of the city's two most heavily traveled major
thoroughfares, the other being FM 518, which begins at SH 288 and
traverses the city from west to east. Conversely, SH 35 crosses the
city from north to south, and connects travelers from Gulf Coast
communities to downtown Houston and the Greater Houston
Metropolitan Area. The northern portion of the Corridor, between
Beltway 8 and FM 518, was recently widened from a 4 -lane road to
a 6 -lane divided road, in an effort to alleviate congestion and
improve safety. A second phase of this project is planned, but as yet
not funded, for that portion of the Corridor located south of FM 518
to the city's southern boundary.
Pearland's thoroughfare plan is one of several resource documents
that describes the location of existing and planned roadway
facilities by classification. Similar to other public documents such as
the Comprehensive Plan, it can be revisited often, and generally is
during periods of rapid growth so that it accurately reflect the
changing needs and developmental dynamics of the community.
While professionals have long debated whether land use should
inform street designs, or streets should inform land use, it is agreed
that roadway facilities function best when planned with
consideration of the anticipated timing, type, and density of
development and its users travel needs.
SH 35 Corridor Redevelopment Plan — Pearland, Texas
Figure 2-4 provides an illustration of roadway improvements,
existing and planned, within the Study Area, taken from the
thoroughfare plan. As presented, some are identified as having
sufficient width, while others are identified as "To Be Widened,"
indicating additional lanes are planned for existing facilities, in order
to accommodate anticipated growth in traffic volumes; and, finally,
others are identified as "To Be Acquired," meaning right-of-way is
needed to construct planned, but non-existent, roadways. The
majority of planned roadways are collector streets, located to
support new development, primarily within the southern portion of
SH 35.
As of 2015, the only eminent Texas Department of Transportation
(TxDOT) project planned in the vicinity of the Study Area is the
proposed widening of FM 518 from SH 288 to SH 35, an
improvement that would increase access to the Corridor from
western portions of the community. Formal investigation of another
project, the SH 35 Tollway Project, began for a period of time in
2007, and again in 2014; however, no formal recommendations had
been advanced as of the date of this report. During the early part of
2014, TxDOT submitted a letter to the City of Pearland, informing
them that they had initiated preparation of an Environmental
Impact Statement (EIS) for a proposed State Highway 35 Tollway
Project. Its purpose, according to the letter, was "to reduce traffic
congestion along SH 35, improve mobility and Level of Service on SH
35, improve area -wide transportation safety, and efficiently link the
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suburban communities in this rapidly developing area." In addition,
the project was intended to serve as a supplemental hurricane
evacuation route. According to the project schedule at that time, it
was intended to be constructed as a controlled access tolled facility
consisting of four to six main lanes within a typical 300 -foot right-of-
way, and include auxiliary lanes between on -ramps and off -ramps,
where appropriate.
The following year, the City of Pearland submitted a letter to TxDOT
alerting them, as per their responsibility as a Participating Agency to
the EIS process, that there was, "A significant amount of opposition
to the project because it would displace multiple businesses and
residents (based on its proposed alignment) in the heart of the city's
Old Townsite District." As conceived, the SH 35 Tollway would
comprise 25 to 30 miles of roadway, beginning in downtown
Houston at IH 45, passing through Pearland, to the southern end of
the Alvin bypass. The City's representative went on to explain, "The
project proposed an elevated cross section through the same area,
will create a significant negative noise and aesthetic intrusion on
businesses and residents, resulting in an adverse economic impact."
Finally, concern was expressed with regard to "likely conflicts
associated with this type of roadway, particularly in the vicinity of
the Old Townsite District, with desired improvements in keeping
with its original downtown character." No substantive activity on
the project has occurred since this time.
SH 35 Corridor Redevelopment Plan — Pearland, Texas
Figure 2-4: Roadways
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SH 35 Corridor Redevelopment Plan — Pearland, Texas
In addition to roadways serving properties in the Corridor, a major
rail line is located west of the SH 35/Main Street Study Area, serving
as its eastern boundary in its central segments. The railway is
owned and operated by the Burlington Northern Santa Fe (BNSF)
railroad company, and has been in place since Pearland was
established. While its northern and southern segments provide a
valuable alternative for industries desiring to move their goods by
train rather than truck, in the vicinity of the Old Townsite District,
the railway and its three at -grade crossings between Orange and
Walnut Streets, while less impactful since the City negotiated for a
"quiet zone" in this location, is an obstacle for certain desired uses
and product types.
Traffic Counts
As Figure 2-5 illustrates, 7 -day average traffic counts along the
northern segment of the Corridor totaled close to 20,500 daily
vehicles for the period monitored, 2014. Comparatively, segments
near its core, north of FM 518 and south of Magnolia Road,
averaged nearly 18,000 daily vehicles during this same timeframe. It
is important to note that in 2014, TxDOT was nearing completion of
its multi-year SH 35 widening project. While their improvements
were intended to accommodate additional traffic, given the fact
that the project was not yet completed, and in it its final phase, it is
reasonable to assume that travelers who otherwise may have
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chosen to use SH 35 were still using alternative routes. This said,
these counts may not reflect typical or even current traffic counts.
Natural Resource Extraction Facilities
As presented in the City Comprehensive Plan, the most significant
resource extraction facility in or near Pearland is the Hastings oil
and gas field, located along the city's southern boundary in the
vicinity of SH 35/Main Street and Dixie Farm Road. The number of
active wells in this location is heavily influenced by the state of the
energy industry which has waned over the past 18 months.
Hazardous Contaminants
Another condition impacting select parcels in the Study Area is the
presence of hazardous contaminants, often the result of past
activities, including the former service station facilities. Within the
Comprehensive Plan, several locations of concern are identified
within the city limits, with a significant concentration in the vicinity
of the Old Townsite District, as well as along both the northern and
southern segments of the Corridor. The source of this information is
Environmental Risk and Imaging Services. Other locations identified
through aerial photography are several oil pits within the Hastings
Oil and Gas Field. During the course of this planning effort,
documentation was provided regarding the presence of hazardous
SH 35 Corridor Redevelopment Plan — Pearland, Texas
materials within the Rice Drier property located east of SH 35 in one
of the Corridor's northern segments.
Bikeways and Trails
There are currently no accommodations for bicycles within the SH
35 Corridor. Further, the TxDOT widening project north of FM 518
did not include either bike lanes or shoulders. As reflected in Figure
2-6, however, there are numerous planned bikeways that could
either traverse or parallel the 35 roadway. Among the east -west
roads bisecting the Corridor, FM 518/West Broadway Street is the
only with on -street bike lanes, specifically between SH 35 and
Westminster Road.
In addition to several planned bikeways, the Pearland Trail Master
Plan, adopted in 2007, and recent Parks and Recreation Master
Plan, adopted during the latter part of 2015, also identifies an
expanded trail system that would serve large expanses of the
community, including points along the SH 35 Corridor. Among
primary and secondary trail systems, secondary trails offer shorter
connections between points and ultimately the primary trails. Many
of the future improvements would follow existing roadways or take
advantage of existing utility, drainage, and pipeline easements.
In the 2015 Plan, the overriding objective for the community is
"recreational connectivity," which includes both heightened
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walkability and bikeability. Walkability, in this capacity, is a
measure of how user-friendly an area is to people traveling on foot.
Similarly, bikeability refers to the extent to which a community
accommodates bicycle travel.
Figure 2-6: Bikeways, Roads and Railroads
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SH 35 Corridor Redevelopment Plan — Pearland, Texas
School Districts
Residential properties within the Study Area and its influence area
are generally served by two school districts — Pearland Independent
School District (ISD) and Alvin ISD. The Alvin ISD extends from just
south of Bailey Road past the southern boundary of the Study Area,
but does not have any schools located within the Study Area
boundaries. Conversely, the Pearland ISD extends from just south of
the Sam Houston Tollway/Beltway 8 to the northern border of the
Alvin ISD, and has one of its four high schools, Pearland High School,
located in the Corridor. As Figure 2-7 shows, several other Pearland
ISD schools are visible within an influence area of the Corridor,
while none of the Alvin ISD facilities are visible. Specifically, schools
are located along the eastern boundary of the Study Area, in the
areas bound by East Plum Street, North Galveston Road, Broadway
Street, and Schleider Drive.
Figure 2-7: School Districts
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SH 35 Corridor Redevelopment Plan — Pearland, Texas
Parks and Open Space
The City of Pearland adopted a new Parks and Recreation Master
Plan during the fall of 2015. That plan offers an assessment of the
existing park system, along with recommendations regarding the
community's future needs. Respondents to a survey administered
during that planning process ranked trail improvements and
connections sixth and seventh among 22 investment priorities.
Zychlinski Park, located near the city's core within the Old Townsite
District (the boundaries of which are defined in the discussion of
zoning below), is the only municipal park located within the Study
Area. Beyond, yet near the Corridor, are two community -sized
parks — Independence and Centennial Parks. Independence Park,
located near John Lizer Road and Pearland Parkway, offers 1.6 miles
of trails, a swimming pool, basketball courts, tennis courts, and
soccer fields. Centennial Park, located west of the Corridor on
McLean Road, also hosts numerous recreational facilities. Finally,
various neighborhood -scale parks serve residential areas within an
influence area of the Corridor.
Figure 2-8: Parks and Open Space
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SH 35 Corridor Redevelopment Plan — Pearland, Texas
Zoning
Of the more than 2,600 acres that comprise the Study Area, 60% is
zoned either M-1 Light Industrial or M-2 Heavy Industrial. Other
zoning categories include those listed below. In terms of total
acreage, the next largest categories are General Commercial and
General Business, which collectively represent 26% or
approximately 677 acres, of the Corridor area, within 189 parcels.
Based on an analysis of total parcel acres by zoning and total parcel
acres by use, it appears that there are numerous instances of non-
conformity (between zoning and use) across all land use types.
Whereas zoning can be a deterrent or barrier to investment,
particularly when existing classifications do not align with an
expressed vision, among the recommendations presented herein
regarding implementation of this Strategy, is greater alignment of
land uses in the Corridor with the expressed vision for each segment
or subarea. In addition, elimination of residential zoning in the
Study Area, except within the Old Town District where it is advised
that the Old Town classification by used in a similar manner to
Planned Unit Development (PUD), where there are no additional
PEARLAPdD
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"sub -classifications" such as commercial, industrial, residential and
others. Note: A detailed definition of each classification is provided
in the Appendix section of this report.
Table 2-1: Acreage and Parcels by Zoning
Zoning Type
Zoning
Classification Acreage No. of Parcels
Light Industrial
Heavy Industrial
General Commerical and Business
Residential (Multi -Family)
Residential (Single Family)
Office and Professional
Old Townsite (all subcategories)
Public Utility District
Unknown
M-1
M-2
GC, GB
MF
R-1 & R-3
OP
OT
PUD
n.a.
731.19
831.35
677.24
16.63
20.1
20.73
40.24
3.13
259.9
189
158
80
3
10
10
85
1
11
Totals
2600.51 547
Source: Texas Workforce Commission; HGAC; and Ricker'Cunningham.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Figure 2-9: Zoning Map
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34
Existing Land Use
/EARLAND
• l'JNONIC ONFtb►M W COMORAION
Existing land uses in the Study Area include a mix of industrial,
commercial, residential, and vacant land. Industrial uses, and a
cemetery which is comprised of 3 parcels and more than 103 acres,
dominate the northern segment, while heavier industrial uses, and a
school campus of approximately 16 acres, dominate the southern
segment. Properties located north of the Old Town District, within
the central segment, maintain the most significant concentration of
general commercial uses, many of which are highway -serving in
nature. As referenced above, the Old Town District anchors the
center of the Corridor, with residential, commercial and institutional
uses, scaled to their physical environment which is a series of
walkable blocks amongst a gridded street system, surrounded by
several established residential neighborhoods.
One hundred and thirty-one (131) parcels are classified as Industrial,
comprising a total of approximately 551 acres. Among the 188
Commercial properties, their total acreage is slightly more than 300
acres. Fifty-one (51) parcels have a Residential use category, within
234 acres. In addition to a Hotel property of 4.5 acres, 236
properties are classified as Vacant, with a total combined acreage of
approximately 1,270 acres.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Eleven parcels with a zoning classification of "unknown", have three
different use categories — Commercial, Industrial and Vacant. The
single Commercial parcel is slightly larger than 17 acres. Among the
six parcels with a use classification of Vacant, they range in size
from 0.13 acres to approximately 167 acres. The remaining four
Industrial properties, range in size from 2 acres to approximately 11
acres.
Future Land Use Plan
The Future Land Use Plan Map, completed for the 2015
Comprehensive Plan Update, more accurately reflects the current
pattern of development in the Study Area, than what is reflected in
the Existing Land Use Map, presented in the 2004 Comprehensive
Plan Map; and, most importantly, closely align with what is
envisioned for a fully revitalized SH 35 Corridor. Specifically, the
City's principal policy document (the Comprehensive Plan), shows
that the future makeup of the northern portion of the Corridor will
be nearly entirely Industrial rather than a mix of Business
Commercial and Industrial. Further, it shows a single Old Townsite
or "Village" District label supporting a mix of residential, retail,
EARLAND
KONON'C D[VUOPMEM COPPOIWIDN
office and service uses. Finally, the South Park Cemetery located in
the southwest quadrant of Knapp Road and SH 35, is reflected as a
Public / Semi -Public use, despite its Light Industrial zoning
classification. Because of the presence of pipe fields in the vicinity
of Oiler Drive and the Hastings Oil and Gas Fields, along with other
existing facilities with outdoor storage facilities, heavier uses are
recommended in the southern portion of the Corridor.
Similar to the prevailing zoning, yet dissimilar to the vision for the
Study Area, residential land uses continue to be shown in two
separate locations — north and south of the Old Townsite District. As
mentioned earlier, recommendations presented later in this
document with regard to desired land uses and regulatory controls,
suggest the City disallow any requests to rezone properties for
residential development within a certain impact zone of the
roadway (distance to be determined).
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Parcel Characteristics
Property Ownership
/ PEAR
•
As noted earlier, there are more than 540 parcels within the 7.2 mile extent of the Study Area, comprising approximately 2,600 acres. They
range in size from .004 to 175.8 acres, and average 4.8 acres. Among the Area's unimproved parcels, they range in size from .004 to 166.9 acres,
and average 5.9 acres. The boundaries and dimensions of parcels within each segment, along with several other characteristics, are illustrated in
a series of maps presented in Appendix D. Specifically, the maps demonstrate ownership patterns; land, improvement and market values; and,
their utilization. Note that property utilization reflects the numerical relationship between the improvement and total value, rather than just a
physical state.
Supplementing the maps is a summary of property ownership and utilization, by segment, in Tables 2-2 and 2-3 here. Most notable about the
Area's owners is the number (or percent) with a local presence. Specifically, nearly 60 percent of Study Area properties are owned by an
individual or interest with either a Pearland, Houston, or Brazoria County address. Comparatively, 20 percent of the properties are owned by an
entity from "Other Texas Cities" and only 10 percent by an "Out -of -State" interest. In any redevelopment effort, it is important to understand
whether owners are present or "absent," as this can be a measure of commitment, or interest in affecting change.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Table 2-2: Property Ownership
by Study Area Segment
Property Utilization
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Source: Brazoria County Appraisal District and Ricker Cunningham.
Based on a review of the maps demonstrating patterns within the Corridor segments and individual parcels, it appears that there is a
comparatively high level of under -utilization, meaning, that there are numerous parcels that are either vacant, have only improved a portion of
their property, or have an improvement value disproportionately small compared to the land value. Whereas utilization in this context is
measured by quantifying the ratio between improvement and total value, this may indicate that land values are supporting appropriate levels of
investment, and that existing development patterns among improvement properties are relatively efficient. It may also suggest that the reason
some parcels are undeveloped, is due to the cost -prohibitive impact of developing sites with limited utility. While vacant properties may seem
like obvious investment targets, less obvious are parcels with a land value that can support a higher and better use, or in other words, those with
a disproportionately high land to improvement value, whereas they too can be "ripe" for investment. A critical component of any
redevelopment effort is to understand the entire inventory of sites with development and redevelopment potential, making this type of analysis
essential whereas viable parcels cannot be identified through physical observation alone. Another bi-product of this work is a better
understanding of the economic feasibility of developing in the targeted redevelopment area, since acquisition prices will impact investment
returns. Table 2-2 summarizes property utilization ratios within the Study Area segment. As shown, Segments A and E maintain the largest share
of "under-utilized" properties, likely due to a disproportionate number of vacant properties in these areas. Segment C, which includes the Old
Townsite District, has the lowest share of "under-utilized" properties, although comparatively high relative to many urban areas.
SH 35 Corridor Study Area Segments
Ownership Geography
A=738 acres
B=465 acres
C=40 acres
1=287 aces
E=972 aces
F=194 acres
% of acres
% of acres
% of aces
% of acres
% of acres
% of acres
Pearland/Brazoria County
Houston
Other Texas Cf ties
Out of State
Unknown
30%
12%
44%
14%
0%
49%
22%
20%
8%
1%
53%
11%
22%
1196
3%
44%
11%
15%
1596
15%
56%
12%
4%
5%
23%
38%
1796
1896
2096
7%
Total
100%
10096
100%
10096
100%
10096
Source: Brazoria County Appraisal District and Ricker Cunningham.
Based on a review of the maps demonstrating patterns within the Corridor segments and individual parcels, it appears that there is a
comparatively high level of under -utilization, meaning, that there are numerous parcels that are either vacant, have only improved a portion of
their property, or have an improvement value disproportionately small compared to the land value. Whereas utilization in this context is
measured by quantifying the ratio between improvement and total value, this may indicate that land values are supporting appropriate levels of
investment, and that existing development patterns among improvement properties are relatively efficient. It may also suggest that the reason
some parcels are undeveloped, is due to the cost -prohibitive impact of developing sites with limited utility. While vacant properties may seem
like obvious investment targets, less obvious are parcels with a land value that can support a higher and better use, or in other words, those with
a disproportionately high land to improvement value, whereas they too can be "ripe" for investment. A critical component of any
redevelopment effort is to understand the entire inventory of sites with development and redevelopment potential, making this type of analysis
essential whereas viable parcels cannot be identified through physical observation alone. Another bi-product of this work is a better
understanding of the economic feasibility of developing in the targeted redevelopment area, since acquisition prices will impact investment
returns. Table 2-2 summarizes property utilization ratios within the Study Area segment. As shown, Segments A and E maintain the largest share
of "under-utilized" properties, likely due to a disproportionate number of vacant properties in these areas. Segment C, which includes the Old
Townsite District, has the lowest share of "under-utilized" properties, although comparatively high relative to many urban areas.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Table 2-3: Property
Utilization by Study Area
Segment
�EARLAND
ECONOMIC Iva iowrn covom.ion
Source: Brazoria County Appraisal District and Ricker 1 Cunningham.
SH 35 Corridor Study Area Segments
Property Utilization
A=738 acres
B=465 acres
C=40 acres
D=287 acres
E=972 acres
F=194 acres
% of acres
% of acres
% of acres
% of acres
% of acres
% of acres
20% and Less
21% to 40%
41% to 60%
61% to 80%
80% and Greater
65%
17%
11%
S%
2%
60%
18%
13%
5%
4%
33%
19%
25%
17%
6%
56%
17%
15%
8%
4%
64%
20%
9%
4%
3%
47%
18%
13%
14%
8%
Total
100%
100%
100%
100%
100%
100%
Source: Brazoria County Appraisal District and Ricker 1 Cunningham.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Summary
In summary, the Study Area's existing pattern of development,
while not atypical of other established corridors in communities
located on the periphery of a major metropolitan area, maintains
conditions which present both obstacles and opportunities for new
development and redevelopment. With an established network of
neighborhoods beyond its boundaries, yet moving increasingly
closer to potential zones of impact, a natural reaction by the City
could be to increase regulations and impose requirements intended
to create greater compatibility among these use, while protecting
its residents. However, and contrary to the development practices
of communities throughout the country over the past few decades
that have encouraged a greater integration of uses, a
recommendation of this Strategy is that development regulations
and guidelines within the Study Area support its principal land use,
first, which is primarily industrial; with the exception of commercial,
residential and institutional uses in its central segment. Further, it is
suggested that requests to rezone non-residential to residential in
the vicinity of the Corridor's northern and southern segments, be
denied. The vision for a redeveloped SH 35 Corridor is a business
park environment with business and industry being the dominate
land uses, and commercial retail and restaurants and possibly
institutional facilities, secondary uses.
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Capital improvements, onsite and offsite, that will be necessary
include: connections, both vehicular and non -vehicular; completion
and relocation of utility lines and other infrastructure; public, open
space and landscaping enhancements; and, others that will
promote greater contiguity in the character and quality of its
building inventory.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Section 3:
Market Overview
PEAR:_. AND
:;,+r ont.Ovwrrn mNotyunew
The purpose of any market analysis associated with an area -wide planning effort such as this one is to: provide a "reality check" forconceptual
planning; ensure that recommendations are grounded in market and economic reality; set the stage for implementation; and, provide an accurate
and independent "story" to tell potential development and investor audiences.
The approach to market analyses, while still largely predicated on the basic principles of supply and demand, in the context of a strategic
planning initiative such as this one warrants a particularly focused review of issues which may present both barriers to, and opportunitiesfor,
investment. To this end, major components of the work conducted as part of this assignment involved: consideration of the StudyArea's physical
environment and ability to accommodate a range of land uses and product types; investigation of current and anticipated real estate industry
trends and their applicability to the Study Area; review of demographic and psychographic characteristics that are informingthe region's market
mix; examination of operating conditions among potentially competitive projects, and quantification of demand by use and type; and,
identification of improvement costs, revenues and timing, along with their potential economic impact. With a thorough understanding of these
items, public sector representatives engaged in discussions with private sector entities considering investment in the Corridor will have a more
comprehensive understanding of project feasibility and development challenges.
Real Estate Industry Trends
"The good, the bad and the ugly"
"The bad is anything 'garden variety.' Over the short haul, there will not much demand among either users, or investors, for plain -vanilla real
estate that falls into the "commodity" bucket. They are cheap, but you get what you pay for. The ugly is anything that smacks of'sprawl,'
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
PEARL AND
ECCNOMC DEM LOPMEMCgRPDW&
including properties dependent on inflated parking ratios that presume the growth of tract housing at the perimeter of a metro area. The good
reflects a cogent appeal to either Millennials or Baby Boomers." Urban Land Institute (ULI), Emerging Trends in Real Estate, 2015
The Changing Face of Space
According to the Urban Land Institute, authors of the annual Emerging Trends in Real Estate report, this statement is supported by the fact that
nearly all real estate property sectors have made significant format changes in the last few years. Conditions that prompted these changes almost
entirely fell into one of the following categories -- demographic shifts, evolving consumer expectations, the "re -urbanization" of America and
growth in technological infrastructure. For example, in 1980 office buildings were built to provide 250 square feet of space per employee.
Conversely, several recent office developments were constructed at closer to 100 square feet per employee, and with significantlymore
collaboration space. This was an outgrowth of pressure from non -Baby Boomer generations for smaller energy efficient work spaces,flexible work
schedules which allowed employees to divide their time between home and work, and the phenomenon of multiple companies sharing the same
office space. Another example is the evolution of a more urbanized format of retail space in suburban locations, in response to a growing desire to
"return to the city" by many Americans. Smaller retail spaces in both urban and suburban locations was made possible by stronger connections to
industrial facilities that are now housing inventories previously found in stores; as well as, distribution centers that are making "just -in -time"
deliveries of commercial products possible. Finally, both ownership and rental housing product types are getting smaller, yet better, and
encouraging greater communication among residents. Nearly all apartment projects built since the end of the Great Recession (in 2012) were
developed with a mix of smaller single units and double master units, along with larger "community spaces." This combination of features better
meets the preference of Millennials for Tess permanence and fewer expenses. Smaller ownership units, both attached and detached, but
anchored by public gathering places, addressed demand for quality over quantity in the home space, lot size and neighborhood amenities. These
products also address the necessity for greater "physical connectedness," particularly since an increasing amount of work can now be done at
home because of better "electronic connectedness." In addition to social and industrial conditions, changes in the lending industry also informed
the recent evolution in real estate development. Following the collapse of several financial institutions during the period between 2008 and 2012,
equity underwriting practices made it nearly impossible to access capital for real estate investment and development will also impact investment
and development decisions. Today, while the social and industrial trends continue to inform the changing face of space, underwriting
requirements have become less stringent. This, combined with growth in several markets including the Houston-Baytown-
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
6EAR:.. AND
KANNCDGttORA MCCINPO QIOn
Sugarland Metro Area, according to ULI, has made this region a "favorable market for capital flows and one that should be expected to realize
growth among supportable product types for the foreseeable future, despite retrenchment in the energy industry."
Economic and Demographic Indicators
Economic and demographic characteristics are indicators of the economic health of a market, and therefore affect investment and reinvestment
decisions. Whereas the Study Area is located in the southern portion of the Houston-Baytown-Sugarland Metropolitan Area (the Metro Area) and
connected via region -serving roadways such as the Sam Houston Tollway (Beltway 8), State Highway 288 (SH 288), and Interstate 45, (1-45),
development projects within its boundaries can be expected to attract the interest of individuals from a broad geography, one beyondthe
Pearland municipal boundaries. For this reason, the various trade areas within which future uses will attract and compete for residents,
consumers, users and visitors, will reach across multiple jurisdictions.
Trade Area Definition
Because the Study Area has the potential to support development of a variety of product types, individual trade areas were defined for all ofthe
major land uses (residential, retail, office and industrial). A trade area is the geography from which projects in a certain location will draw and
compete for the majority of their residents, customers, or tenants. Several determinants are used to define the boundaries of a tradearea, some
unique to the specific use or product type, and others more universally applicable. The most common are those presented as follows:
• Physical Barriers — presence of certain physical improvements including highways, arterials, and significant structures, all of which
influence driving and shopping patterns; along with the availability, condition and capacity of infrastructure;
• Location of Possible Competition — inventory of potentially competitive projects which can diminish a project's potential market share,
and be an indicator of market acceptance;
• Proximity to Population, Employment and / or Activity Centers — concentrations of neighborhoods, employment centers, service
providers, and commercial entertainment venues which attract target markets that will support development and redevelopment;
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
(PEARL Iai�tR
NOMCOEvttt kENTCOR9Pu11014
• Zoning — regulatory designations which will influence investment decisions;
• Market Factors — conditions which will set sale and lease prices, influence capital flows, suggest excesses and voids, and ultimately
potential project values; and
• Drive Times, Spending and Commuting Patterns — consumer habits and biases which can inform the project's potential forsuccess.
In the socio-economic and demographic analysis that follows, the Residential Trade Area (or Trade Area as referred to herein), is used as the primary
geography for which select characteristics are presented. Its boundaries, illustrated in Figure 3-1, are the Sam Houston Tollway on the north, Red
Bluff Road and State Highway 3 on the
east, State Highways 6 and 517 on the south, and
Almeda Road on the west; and, it includes all or
some portion of the cities of Pearland, 0
r Harris
Friendswood, Alvin, League City, along with
Brazoria and Galveston County. As a barometer of
an area's economic health and potential for
investment, demographic and economic
characteristics, taken together with its
psychographic profile, can reveal support for
product types that may or may not be part of its
current inventory. While the built environment is
often considered to represent all of a market's
preferences, it is often the case that there are
other supportable uses which better represent
what is not only wanted, but needed, yet absent
due to any variety of obstacles or barriers. For this
reason, a higher level of attention is given to this
component of the analysis.
Figure 3-1: Residential Trade Area
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas PEAFLAND
,t WPMENTCORaa.4
As presented in Table 3-1 here, the Residential Trade Area's total population increased by 2.2% between 2010 and 2015, while Brazoria County
and the Metro Area increased by 1.9% and 2.2%, respectively. Future forecasts of household growth estimate a rate of approximately 2.0%in
the Trade Area over the next 10 years, compared to 2.0% in the County, and 1.9% in the Metro Area. The average household size in the Trade
Area is 2.85, and the County and the Metro Area are
2.84 and 2.89, respectively. Despite the higher average
household size, 40% of residents in the Metro Area are
renters, compared to 27% in the Trade Area. In
addition, the median age of residents in the Trade Area
(35.4 years) is slightly higher than either the County
(35.3 years) and the Metro Area (33.6), despite a
similar percent of individuals under age 17 which is 27%
in the Trade Area, and 27% and 26% in the County and
Metro Area, respectively. Similarly, on the opposite end
of the age range, the Trade Area, County, and Metro
Area all maintain a similar percent of individuals 65
years and older. In terms ofeducation and income
levels, a greater percent of residents in the Trade Area
hold a bachelors' degree at 37%, explaining why a
lower percent of households have a median household
income below $25,000 and a higher percent have
incomes over $100,000. The ethnic profile of residents
in the Trade Area is more similar to that of the County,
but considerably less ethnically diverse than the Metro
Area's. A variety of maps illustrating these
characteristics are presented
in Appendix D.
Table 3-1: Residential Trade Area DemographicOverview
2015 Indicator (unless otherwise noted)
I
Baytown-
Pearland Trade Sugarland Metro
Area Brazoria County Area
zuio'opwatlon
2015 Population (estimated)
2015 Households (estimated)
Annual Household Growth Rate (Projected through 2020)
Average Household Size
Percent Non -Family Households
Percent One- and Two -Person Households
Percent Renters
Percent Age65+
Percent AgeO-17
Median Age
Percent With Bachelor's Degree
Median Household Income
Percent With Income Below $25,000
Percent With Income Over $100,000
Percent Hispanic
Percent Black/African-American
PercentAsian American
368,9bb
411,100
143,350
2.0%
2.85
25%
50%
27%
10%
27%
35.4
37%
$78,203
13%
38%
25%
12%
10%
513,166
344,700
117,100
2.0%
2.84
24%
51%
25%
10%
27%
35.3
27%
$67,603
11%
38%
28%
13%
6%
5,910,416
6,589,400
2,224,300
1.9%
2.89
29%
54%
40%
10%
26%
33.6
31%
$57,366
21%
27%
36%
17%
7%
Source: 0.5. Census; Claritas, Inc.; and Ricker! Cunningham.
Source: U.S. Census Bureau; Claritas, Inc.; and Ricker l Cunningham.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Figure 3-2: Population Density by Census Block(2013)
a. •
C7==1.1M
Toed 1••pwalan wnn.. T..E. Area Ma 077
Q P...IIM R..WMrI Trade Arai
Figure 3-3: Household Density by Census Block(2013)
w..n.p..Mn T.e« A... I]AVI
Q P`rl.n0 R.yMh11 ',see A...
Age Cohort Migration
PEARL A ND
ECONOMIC OtVrtoPNCNT COAPCOAT7pr
Migration studies examine how certain groups or populations move within
a certain geography. For the purpose of this planning effort, movement
among three major age cohorts — Baby Boomers, X Generation and Y
Generation - within the Trade Area, were analyzed over a period of 20
years. A series of maps illustrating these patterns are presented in the
following pages. As with the Figures 3-4 and 3-5, each colored shape in the
maps represents a census block. However, whereas the purpose of the
migration maps is to identify changing conditions in the same geography
over multiple periods of time, this can be difficult using census blocks as a
measure since their boundaries can change overtime.
Therefore, the analysis presented should be considered a representation,
rather than an exact reflection, of mobility in the region. Finally, since the
definition of these age cohorts can differ depending on their source, these
groups are assumed to fall within the following age ranges for the years
analyzed as presented below.
Baby Boomers:
1980: 16 - 34 years
1990: 26 — 44years
2000: 36 — 54years
2010: 46 — 64years
lc;
XGeneration:
1980: < 15 years
1990: 6 — 25 years
2000: 16 — 34 years
2010: 26 — 45 years
Millennials and Echo Boomers.
Y Generation: *
1980: n.a.
1990: < 5 years
2000: < 15 years
2010: 10 — 25 years
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
For clarification, total population, rather than percent of population,
figures were used to illustrate the respective populations in each
cohort, so that the magnitude of the market's depth could be
understood. As shown, these three age cohorts consistently grew in
population in the Trade Area between 1990 and 2010, generating
potential for a wide variety of real estate product types.
Figure 3-5: 2010 Baby Boom Population
Figure 3-4: 1990 Baby Boom Population
(EAR
21
2010 Baby Booms, Populalmn wptn.n Traria Area'.
94.376 a 26.1$ of Total Population 4376.7911
Q Pearlarld Ro denl.al tlade Ares
K
N ;
1Tav eny bO e. v09Wanon unto.. own Ar.a-
11E or J9 d Taal Population 1169.7841
Q Palle d R.Noan1W Trod, Area
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Figure 3-6: 1990 Gen X Population
a...1..I.. a P...a..' «w... t.... Aw.
Figure 3-7: 2010 Gen X Population
co .,.h. . "'Ow 1.4
P.
12 U....1... . n....u.-.
M :,.NLI a .4. VI..
fa 100. 1..w •..
11
AI.
40.00" 1 P.pY01 y1111 ;wee AN&
M ••• 0 Real P .Pulp 11•M,7eq
1:3.•100.4.04.00.411t r
47
Figure 3-8: 1990 Gen Y Population
/EARLAND
ECONOMIC DRILDFMOtICGIVORAllOri
114101%.•..... VP..W1... viers lood• .a
7w. 15 WI t. t r\ «10t/ PIANMW MI, NW
Figure 3-9: 2010 Gen Y Population
P.IPr a R..25..op t..o.n.A
IS
2010 Crew pon 0 Pop.Y W m r1VS1 T1 W. An..
77 215 o. 70.% a rosy Pep.wbn 1074.0911
O P.YWtl Rosae.M Trade MN
SH 35 Corridor Redevelopment Strategy - Pearland, Texas
Psychographic Profile
Psychographics is a term used to describe the characteristics of people
and neighborhoods which, instead of being purely demographic, speak
more to attitudes, interests, opinions and lifestyles. PRIZM (Claritas, Inc.)
is a leading system for categorizing day- and night-time populations into
one of 65 distinct lifestyle segments based on these factors. Many
commercial retail developers rely on psychographics to measure a
market's depth for certain consumer preferences, and propensity to
spend across select retail categories. Similarly, a growing number of
residential developers are interested in an area's psychographic profile
whereas it can serve to eliminate some of the uncertainty associated with
delivering unproven product types to a market.
PRIZM organizes the segments into "life stage groups," of which -
Younger Years, Family Life, and Mature Years - are present in the Trade
Area based on a combination of three variables - affluence, householder
age, and presence of children at home. A definition of its largest lifestyle
segments, including those presented in Table 3-2, are provided in
Appendix E. For each segment listed in the table, the total of area
households which fall into these groups, along with the percent they
represent of all households in the Trade Area, as well as the national index
for this segment (or comparative number of households in the nation that
fall in this group). Characteristics of these groups include: advanced
degrees, family -orientation, married couples and singles, and mobile
students and professionals.
,r, ' PEARL AND
10.11C DEW LDPWEM a1aPUwn11011
Table 3-2: Trade Area Top Psychographic Segments
Lifestyle Segment
Area
Households
% of Total
Households
U.S.
Index=100*
Movers andShakers
9,354
6.5%
429.6
Brite Lites, Li'l City
7,436
5.2%
308.5
Home Sweet Home
6,151
4.3%
245.7
Young Influentials
6,118
4.3%
314.6
Up -and -Comers
5,112
3.6%
263.4
Younger Years Subtotal
34,171
23.8%
--
Winner's Circle
16,271
11.4%
1,098.2
Kids and Cul -de -Sacs
11,041
7.7%
503.8
Upward Bound
10,343
7.2%
405.8
Blue Blood Estates
5,782
4.0%
446.3
White Picket Fences
4,530
3.2%
226.7
Family Life Subtotal
47,967
33.5%
--
Second City Elite
5,194
3.6%
274.5
Middleburg Managers
3,817
2.7%
128.6
Upper Crust
3,524
2.5%
173.4
Pools and Patios
1,992
1.4%
112.8
New Empty Nests
1,934
1.3%
136.1
Mature Years Subtotal
16,461
11.5%
--
Total Above Segments
98,599
68.8%
--
Total Trade Area
143,350
100.0%
--
* Indicates concentration of this segment relative to U.S. average. A segment
index of 200 would mean that this group contains 2 times the concentration
of employees/households compared to the average U.S. community.
Source: Claritas, Inc. and Ricker Cunningham.
SH 35 Corridor Redevelopment Strategy - Pearland, Texas
Market Supply and Demand Conditions
Residential
As explained earlier, factors that influence the
boundaries of a trade area include several conditions
and perceptions including: presence or absence of
roadway connections (including highways and
overpasses), their capacity, speed, and condition;
boundaries of school districts and their performance
levels; inventory of competitive projects; and,
proximity to institutions and services. The Residential
Trade Area for projects in the SH 35 Corridor, past and
present, is reflected in Figure 3-1 above.
Residential Supply Conditions
Table 3-3 here reflects actual building permit activity,
as well as historical and comparative trends among
different product groups. As presented, new
residential construction in Pearland over the past two
years has begun to rebounded, although at levels
below those experienced prior to the Great Recession
(2008 - 2012). For example, during the period 2007
EARLAND
MCNOiwr Ot'RDPWtM 11711 Paw1011
Table 3-3: Trade Area Historical Building Permit Activity (2007 -2013)
Unit Type
2007
2008
2009
2010
2011
2012
2013
Total
Annual % of Trade
Average Area
City of Pearland
Single Family Detached
1,639
1,207
772
722
691
948
955
6,934
991
38.2%
Single Family Attached (2-4 units)
0
0
40
0
0
0
4
1
66.7%
Multi -Family (5+units)
518
64
711
126
379
370
0
2,168
310
66.4%
Total Units
2,157
1,271
1,487
848
1,070
1,318
955
9,106
1,301
42.5%
City of Friendswood
Single Family Detached
266
229
69
148
163
192
168
1,235
176
6.8%
Single Family Attached (2-4 units)
0
00
0
0
0
0
0
0
0.0%
Multi -Family (S+units)
0
0
0
0
0
0
0
0
0
0.0%
Total Units
266
229
69
148
163
192
168
1,235
176 v '
"3.8%
City of League City
Single Family Detached
1,345
735
684
770
557
696
1,080
5,767
824
31.7%
Single Family Attached (2-4 units)
0
0
0
0
0
0
0
0
0
0.0%
Multi -Family (54 -units)
100
99
51
206
0
180
0
636
91
19.5%
Total Units
1,445
834
635
976
557
876
1,080
6,403
915
29.9%
City of Alvin
Single Family Detached
122
61
62
53
78
51
96
523
75
2.9%
Single Family Attached (2-4 units)
0
0
2
0
0
0
0
2
0
33.3%
Multi-Family(5+units)
0
0
80
110
0
0
0
190
27
5.8%
Total Units
122
61
144
163
78
51
96
715
102
3.3%
Unincorporated Bratoria County
Single FamilyDetached
573
437
453
564
547
544
590
3,708
530
20.4%
Single Family Attached (2-4 units)
0
00
0
0
0
0
0
0
0.0%
Multi -Family (5+units)
270
00
0
0
0
0
270
39
8.3%
Total Units
843
437
453
564
547
544
590
3,978
568
18.6%
Total TradeArea
Single FamilyDetached
3,945
2,669
1,940
2,257
2,036
2,431
2,889
18,167
2,595
100.0%
Single Family Attached (2.4 units)
0
0
6
0
0
0
0
6
1
100.0%
Multi -Family (S+units)
888
163
842
442
379
550
0
3,264
466
100.0%
Total Units
4,833
2,832
2,788
2,699
2,415
2,981
2,889
21,437
3,062
100.0%
Source: U.S. Census Bureau and Ricker 'Cunningham.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
PEAR
,CO,IGM't
through 2009, permits for multi -family units in Pearland accounted for 18% of all permits issued, while permits for single family attached and
detached units accounted for 1% and 81%, respectively. Total permits issued during this earlier timeframe averaged approximately 1,800 per
year, compared to an annual average of almost 1,000 units over the last two years. During this period, though, multi- family permits in 2012
represented approximately 30% of all permits issued, but 0% in2013.
Ownership Supply
Among existing residential units, and as presented in Table 3-4, residential closings within the jurisdictions in the Trade Area during 2013 and
2014 represented approximately 6% of the Houston Metro Area, yet exceeded its average selling price. Activity in the Trade Area during 2014 fell
slightly, however the average selling price exceeded that of the Metro Area by a larger percent. On a more localized basis, in 2013, projects in
Pearland (including the Study Area), Friendswood, and League City, realized the highest sale prices among the Trade Area jurisdictions. In 2014,
Pearland prices exceeded those in League City, but remained below Friendswood prices.
Table 3-4: Trade Area Historical Sales Activity among Existing Units (2013 -2014)
* Through October2014.
Source: Hanley Wood Market Intelligence and Rickert Cunningham.
2013
2014*
Trade Area City
Closings
Average Price
Closings
Average Price
Alvin
52
$172,791
86
$177,226
Dickinson
182
$173,962
162
$195,896
Friendswood
175
$394,077
134
$398,702
League City
568
$282,891
521
$296,634
Pearland
592
$263,377
492
$300,359
Total Trade Area
1,569
$271,355
1,395
$288,708
Houston MetroArea
23,607
$270,817
23,258
$274,064
* Through October2014.
Source: Hanley Wood Market Intelligence and Rickert Cunningham.
SH 35 Corridor Redevelopment Strategy - Pearland, Texas
Rental Supply
/EARL A N D
During the years 2013 and 2014, the Trade Area apartment market has performed slightly better than the Metro Area in terms of vacancy rates,
yet exhibited slightly lower rental rates. For example, Trade Area vacancy rates in these years were 4.6% and 5.4%, respectively, compared to
Metro Area rates of 5.2% and 5.9%. During this same period, average rents in the Trade Area were $930 and $909, compared to $1,051 and
$1,102 in the Metro Area. Among all jurisdictions in the Houston market, the Bellaire and Montgomery County submarkets performed the best.
Residential Demand (all product categories)
Demand for residential units
has been a product of
population growth, whether
through natural increase or net
in -migration, for the past five
decades. Table 3-5 summarizes
estimates of total demand over
the next 10 years in the Trade
Area, for ownership and rental
units, at various price points,
based on household growth
within select income ranges.
Whereas an individual'sability
to pay for housing is largely a
function of their household's
income, actual unit counts are
Table 3-5: Trade Area Total Residential Demand
Residential Demand Analysis
Households 2014 140,700
SH 35 Corridor TradeArea
2019 169,838
Annual Growth Rate
1.90%
10 -yr Demand Estimates
2024 205,011
Household Growth (2014-24)
64,311
Adjust for 2nd homes,
demolition,vacancy
1.0%
Adjusted Unit Requirement
64,954
%Rental
28%
Trade Area Demand from New Households (10 -yr)
Annual
Supportable
Current New
Total
Household
Approximate
Home Price
Households in Households by
Estimated % Total Rental
Ownership
Income Range
Rent Range
Range
Income Income
Total Units
Rental Units
Units
up to $15K
up to $375
up to $75K
7% 6%
3,897
90% 3,508
390
$15-25K
$375 - $625
$75 to $100K
6% 5%
3,248
85% 2,761
487
$25-35K
$625 - $87S
$100 to $150K
8% 7%
4,547
75% 3,410
1,137
$35 -SOK
$875 - $1,000
$150 to $200K
10% 10%
6,495
50% 3,248
3,248
$50-75K
$1,000+
$200 to $250K
17% 18%
11,692
20% 2,338
9,353
$75-100K
$1,000+
$250 to $350K
14% 15%
9,743
12% 1,169
8,574
$100-150K
$1,000+
$350 to $500K
20% 21%
13,640
10% 1,364
12,276
$150K and up
$1,000+
$500K and up
18% 18%
11,692
5% 585
11,107
Totals
100% 100%
64,954
28% 18,382
46,572
Source: HGAC; U.S. Census; Claritas, Inc.; and Ricker 1 Cunningham.
51
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
PEARL AND
EaNOMC Dtntovwerrt oxivvunow
derived based on the capacity to pay (calculated in the same manner financial lenders use). What has changed post -Recession, is the basis by
which individuals and families choose to rent versus own their home. While renting was once a necessity among householdsat certain income
levels, it is increasingly becoming a choice, particularly among young professionals who favor mobility over roots. Among other groups, renting is
seen as an option that carries Tess investment risk, given the cyclical nature of residential markets. As presented, theTrade Area is projected to
support an increase of approximately 65,000 new housing units over the next 10 years. Assuming the percent of rental to owner -occupied units
increases slightly to 28%, regardless of current regulations, this would equate to demand for approximately 18,400 rental, and 46,600 ownership,
units.
Among households in the Trade Area with incomes over $15,000, as presented in Table 3-6, based on considerations including historical trends,
available inventory of land to accommodate development, capital reserves and lifestyle preferences, this will equate to approximately 34,600
detached, and 11,500 attached units, the latter including condominiums, townhome, rowhouse, lofts, and others. The balance of total demand
will be for rental units.
Table 3-6: Trade Area Demand for Detached Ownership Units
Trade Area For -
Annual Approximate Sale Demand Estimated % Single Family
Household Home Price (Incomes Single Family Detached
Income Range Range $15K+) Detached Demand
$15-251< $75 to $100K 487 75% 365
$25-35K $100 to $150K 1,137 75% 853
$35 -SOK $1S0 to $200K 3,248 75% 2,436
$50-75K $200 to $250K 9,353 75% 7,015
$75-100K $250 to $350K 8,574 75% 6,430
$100-150K $350 to $500K 12,276 75% 9,207
$150K and up $500K and up 11,107 75% 8,330
Totals 46,183 75% 34,637
Source: HGAC; U.S. Census; Claritas, Inc.; and Ricker I Cunningham.
The
Table 3-7: Trade Area Demand for Attached Ownership Units
Trade Area For -
Annual Approximate Sale Demand Estimated % Single Family
Household Home Price (Incomes Single Family Attached
Income Range Range $15K+) Attached Demand
$15-25K $75 to $100K 487 25% 122
$25-35K $100 to $150K 1,137 25% 284
$35-50K $150 to $200K 3,248 25% 812
$50-75K $200 to $250K 9,353 25% 2,338
$75-100K $250 to $350K 8,574 25% 2,143
$100-150K $350 to $500K 12,276 25% 3,069
$150K and up $500K and up 11,107 25% 2,777
Totals 46,183 25% 11,546
Note: Assumes Townhome/Condo development stabilizes at 25% of all ownership demand
Source: HGAC; U.S. Census; Claritas, Inc.; and Rickert Cunningham.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
EARLANfC7
ar,u ue atvr comae coarowoa
Further, the analysis suggests the majority of demand for single family detached units is for products priced over $350K, single family attached units
between $200K and $500K, and rental units leased at monthly rates between $625 and $1,000. Figure 3-10 illustrates the number of residential units,
and type, by income range.
Table 3-8: Trade Area Demand for Rental
Annual
Household
Income Range
Approximate
Rent Range
Rental
Demand
(Incomes
$15K+)
$15-25K
$25-35K
$35-50K
$50-75K
$75-100K
$100-150K
$150K and up
$375 - $625
$625 - $875
$875 - $1,000
$1,000+
$1,000+
$1,000+
$1,000+
2,761
3,410
3,248
2,338
1,169
1,364
585
Totals
14,875
Source: HGAC; U.S. Census; Claritas, Inc.; and Ricker 1 Cunningham.
Figure 3-10: Trade Area Demand for Residential Units by Income Range
$150Kand up 0111 585
Household Income Range
$100-150K 1,364
$75-100K 11111111111 1,169
3,332
2,572
3,683
$50-75K 1.11 2,338
2,806
$35-50K 3,248
$25-35K - 3,410
i 341
$15-25K14 6 2,761
Units
7,775
6,002
6,547
8,593
Single Family Detached
IN Rental Apartments
Single Family Attached
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Retail
PEAR .AND
!_CONOHICWit t3*(mCORAC TlOq
Factors that influence the boundaries of a retail trade area include several of those that inform residential trade areas, as well as: access and
visibility from major thoroughfares; proximity of close -in residential neighborhoods; number, type and location of activity generators andtheir
potential appeal among targeted markets; along with current market conditions, particularly among competitive projects; and, potential market
voids. Significant retail concentrations located proximate to the Trade Area, including the Pearland Town Center and Center at Baybrook Mall, while
not direct competition with retail establishments in the Study Area, serve as its eastern and western boundaries. Figure 3-11 illustrates the Retail
Trade Area boundaries, extending from Monroe and Beamer Roads on the east, Interstate 610 (1-610) on the north, Scott Street, Cullen Boulevard
and FM 1128 on the west, and State
Highway 6 (SH 6) on the south.
Principal competition for Trade Area retail uses
includes commercial concentrations along
corridors such as Interstate 610, the Sam
Houston Tollway, and Broadway Street.
Figure 3-11: Retail Trade Area
w..
Q Retail Trade Area
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Retail Supply
PEAR .A N
r:CpNONIc DCA 1.3PMENTCOVORATI014
As shown in Table 3-9, the Pearland submarket represents approximately 42% of space in the Trade Area. As its largest submarket, Pearland is
currently outperforming other jurisdictions in the Trade Area, as well as the Metro Area as a whole, at least in terms of vacancy rates, but rental
rates, too, are at the high end of the range. Figures 3-12 and 3-13, illustrate the location of retail space in the Trade Area in two formats: by the
size of space within established ranges; and, amount in comparative concentrations. As reflected, the greatest concentrations of space is located
at the northern end of the Study Area, and through the Study Area along Broadway Street.
Table 3-9: Trade Area Retail Market Conditions
Retail Indicator
Pearland
Alvin
Friendswood
Houston
Manvel
Webster
Total Retail Trade
Area
Houston Metro
Area
All Retail
# of Buildings
299
18
67
486
12
4
886
--
Rentable SF
3,963,381
521,538
1,157,788
3,783,669
59,674
58,616
9,544,666
268,171,181
Vacancy Rate
5.0%
1.2%
7.1%
5.1%
5.0%
14.5%
5.1%
6.2%
Rental Rate/SF Range
510.00 to $26.00
$8.00 to $11.00
$12.00 to $27.00
$9.00 to $28.00
$8.00 to 515.00
$10.00 to $20.00
$8.00 to $28.00
$9.00 to $40.00
Source: CoStar Group and Ricker Cunningham.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Retail Demand (from all sources)
Demand for commercial retail, service and restaurant space in a trade
area is based on retail expenditures from two principal sources:
expenditures by trade area residents outside the area, otherwise referred
to as "leakage"; and, expenditures among new households in the trade
area. The methodology used is to estimate household retail expenditures
within several major retail categories, and compare them to actual retail
sales completed in the same geography, the difference being either a
retail "surplus" (supply exceeds demand) or deficit (demand exceeds
supply).
As Table 3-10 shows, there is a loss of nearly $350 million in sales by
Trade Area residents, across virtually every retail category, with the
exception of sporting goods, hobby, books and music. Where these sales
to be recaptured, the Trade Area could support an additional 996,000
square feet of space.
56
6PEAR�.ANO
EarQ01::nenu wernomvwAnow
Figure 3-12: Trade Area Retail Supply
•
Ilsolure
.w..a, C..,
kart r� i
• �J
21141
ClHoa1 rr►?roW
Figure 3-13: Trade Area Retail Supply (Heat Map)
7eW AwYt_ R.W kw* Ilii, •... - tae
M Rime Trade MN
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Table 3-10: Trade Area Retail Demand from Retail Leakage and Household Growth
Retail Category
New Retail Space
Estimated 2014 Estimated 2014 Estimated 2014 Needed to
Household Retail Retail Sales Retail Void Estimated Retail Recapture
Demand (Supply) (Leakage) Sales/SF Void/Leakage
Furniture & Home Furnishings $64,846,417 $43,073,059 521,773,358 5275
Electronics & Appliance $59,025,751 $34,994,619 $24,031,132 5300
Bldg Materials, Garden Equipment 5323,384,303 5293,328,198 530,056,105 5375
Food & Beverage (Grocery) $393,567,435 $380,373,037 513,194,398 5450
Health & Personal Care 5187,283,751 $138,478,093 $48,805,658 5400
Clothing and Accessories 5159,832,653 5123,997,909 $35,834,744 5300
Sporting Goods, Hobby, Book, Music 563,335,134 $195,905,088 50 5300
General Merchandise 5399,576,377 $343,119,512 556,456,865 $375
Miscellaneous Stores $81,734,250 539,558,838 $42,175,412 5275
Foodservice & Drinking Places 5334,953,314 5257,523,204 $77,430,110 5425
79,176
80,104
80,150
29,321
122,014
119,449
0
150,552
153,365
182,188
Total $2,067,539,386 $1,850,351,557 $349,757,783
996,319
Source: Claritas, Inc.; Urban Land Institute; and Ricker Cunningham.
Retail Demand (New Household Growth)
PEAR_AE
tcoN0 8C Dcreoph n woman.'
Annual New Retail Space
Household Net New Needed for
Growth Rate Household Retail Household
(2014-2024) Demand Growth
1.80%
1.80%
1.80%
1.80%
1.80%
1.80%
1.80%
1.80%
1.80%
1.80 %
$12,664,659
511,527,869
563,157,720
576,864,652
$36,576,960
531,215,696
512,369,502
578,038,213
515,962,893
565,417,176
46,053
38,426
168,421
170,810
91,442
104,052
41,232
208,102
58,047
153.923
$403,795,339 1,080,5 08
Projected demand from new household formations over the next ten years is determined by multiplying growth in households with that portion
of household income typically spent on general retail and service purchases. As shown in Table 3-10, an additional $404 million in retail spending
is anticipated from new household growth, supporting approximately 1.1 million square feet. Combining projected demand from "leakage" with
demand from new household formation, results in total retail demand for approximately 2.1 million square feet of retail space in the Trade Area
over the next 10 years.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Office
PEARLAND
f!xNOML^ OtVE(DFMLNTallie0 rION
Factors that influence the boundaries of an office trade area include several conditions and perceptions such as: the presence or lack of access and
visibility from major thoroughfares; concentrations of other employment uses or businesses in close proximity; number and type of activity
generators; and, the competitive inventory and / or potential market voids. Newer office concentrations proximate to the Trade Area include
Pearland Town Center and the Shadow Creek Business Center to the west. As reflected in Figure 3-12, and similar to the Retail Trade Area, the
Office Trade Area extends from Monroe Road and Beamer Road
on the east, Interstate 610 on the north, Scott Street, Cullen
Boulevard and FM 1128 on the west, and State Highway 6 on the
south. The primary competition for Trade Area office uses
includes commercial concentrations along corridors such as
Interstate 610, State Highway 35 (north the Study Area), and
Broadway Street.
Office Supply
As shown in Table 3-11, the Pearland submarket represents
approximately 35% of overall Trade Area space. As one of the
largest submarkets in the Trade Area, Pearland is currently
outperforming the overall Houston Metro Area in terms of
vacancy and has rental rates at the higher end of the range in the
Trade Area.
Figure 3-12: Office Trade Area
Wes
Q Office Trade Area
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
63EAR
ECONOWC
Figures 3-13 and 3-14 illustrate the location of office space in the Trade Area in two formats: 1) by the size of the space within established ranges;
and 2) by the amount of space in comparative concentrations. As reflected, the greatest concentrations of office space are located at the
northeastern portion of the Study Area and through the Study Area along Broadway.
Table 3-11: Trade Area Office Market Conditions
SH 35 Corridor Trade Area
Office Indicator
Pearland
Alvin
Friendswood
Houston
Manvel
Total Office
Trade Area
Houston Metro
Area
All Office
#of8uildings
89
5
44
81
1
220
6,391
Rentable SF
610,837
31,706
374,531
733,231
6,721
1,757,026
276,400,987
Vacancy Rate
7.0%
0.0%
4.9%
11.6%
18.1%
8.4%
11.2%
Rental Rate/SF Range
$12.00to$25.00
--
$15.00to$29.00
$12.00to$19.00
$10.00to$12.00
$10.00to$29.00
$15.00to$33.00
Source: CoStar Group and Ricker Cunningham.
Figure 3-13: Trade Area Office Supply
Fartirri
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Figure 3-14: Trade Area Office Supply (Heat Map)
59
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SH 35 Corridor Redevelopment Strategy - Pearland, Texas
Office Demand (Total)
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The potential for office space in a trade area is derived from two primary sources -- expansion of existing industry and the relocation of new
companies into the trade area. As Table 3-12 shows, employment projections by industry classification in the Trade Area were used to estimate
demand for employment space over the next 10 years. At an overall annual rate of 1.9% sustained employment growth, the Trade Area should
add approximately 32,900 new jobs over the next 10 years. Whereas differing levels of office space are needed among different industries, the
analysis here suggests support for approximately 2.0 million square feet of new office space over the next 10 years. The Study Area should be able
to capture a reasonable share of this office demand, particularly for local service and small business space.
Table 3-12: Trade Area Total Office Demand
Industry Category
Estimated
Estimated Estimated Estimated Estimated Estimated % Net New SF per Estimated 10-
2014 Growth Rate 2024 New in Office Office Office yr Office
Employees 2014-2024 Employees Employees Space Employees Employee Demand
Natural Resources, Mining and Construction 14,691 2.20% 18,262 3,571 40% 1,429 200 285,714
Manufacturing 11,834 1.10% 13,202 1,368 5% 68 200 13,681
Trade, Transportation and Utilities 29,309 1.30% 33,350 4,041 10% 404 200 80,819
Information 1,666 0.60% 1,769 103 80% 82 200 16,435
Financial Activities 7,568 1.30% 8,611 1,043 90% 939 200 187,808
Professional and Business Services 20,582 2.00% 25,089 4,507 80% 3,606 200 721,174
Educational and Health Services 34,643 2.70% 45,219 10,576 20% 2,115 200 423,034
Leisure and Hospitality 13,769 2.40% 17,454 3,685 10% 369 200 73,706
Other Services (includes Self -Employed) 18,460 1.50% 21,423 2,964 30% 889 200 177,813
Government 6,679 1.50% 7,751 1,072 30% 322 200 64,334
Totals 159,200 1.89% 192,131 32,931 31% 10,223 200 2,044,518
Source: Texas Workforce Commission; HGAC; and Ricker Cunningham.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas (PEARLAND
(!xNONICDEVLIZFNENTON OOMPON
Industrial
Factors that influence the boundaries of an industrial trade area include several conditions and perceptions such as: the presence or lack of access
and visibility from major thoroughfares; concentrations of other employment uses or businesses in close proximity; number and type of activity
generators; and, the competitive inventory and / or potential market voids. While there are concentrations of industrial space throughout the
Trade Area, the newest buildings are located at the eastern edge of the Trade Area, along Interstate 45. As reflected in Figure 3-14, the Industrial
Trade Area extends from Interstate 45 and State Highway 3 on the east, the Southwest Freeway on the north, State Highway 288 on the west, and
State Highway 6 on the south. The primary competition for Trade Area industrial uses includes concentrations along corridors such as Interstates
45 and 610, State Highway 35 (through the Study Area), and State Highway3.
Industrial Supply
As shown in Table 3-13, the Pearland submarket
represents approximately 9% of overall Trade Area
space. As the second largest submarket in the Trade
Area, Pearland is currently outperforming the rest of the
Trade Area and the overall Houston Metro Area in terms
of vacancy and has rental rates at the higher end of the
range. Figures 3-15 and 3-16 illustrate the location of
industrial space in the Trade Area in two formats: 1) by
the size of the space within established ranges; and 2)
by the amount of space in comparative concentrations.
As reflected, the greatest concentrations of industrial
space are located north and east of the Study Area.
Figure 3-14: Industrial Trade Area
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Table 3-13: Trade Area Industrial Market Conditions
EARLAND
F :. IOUfC D WLrPMEM CON ?ORAI ON
SH 35 Corridor Trade Area
Retail Indicator
Pearland
Alvin
Dickinson
Friendswood
Houston
League City
Manvel
Webster
Houston
Metro Area
All Retail
# of Buildings
200
31
14
23
1,106
35
7
55
--
Rentable SF
3,190,099
676,710
122,260
266,592
28,649,683
400,554
50,212
999,955
491,720,505
Vacancy Rate
3.1%
15.5%
8.4%
16.8%
5.4%
10.5%
0.0%
17.0%
5.5%
Rental Rate/SF Range
$7.00 to$14.00
$5.00 to $7.00
--
$9.00 to $14.00
$4.00 to $12.00
$9.00to$15.00
--
$5.00 to $9.00
$4.00 to $11.00
Source: CoStar Group and Ricker Cunningham.
Figure 3-15: Trade Area Industrial Market Supply
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Figure 3-16: Trade Area Industrial Supply (Heat Map)
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SH 35 Corridor Redevelopment Strategy - Pearland, Texas
Industrial Demand (Total)
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The potential for industrial space in a trade area is derived from two primary sources -- expansion of existing industry and the relocation of new
companies into the trade area. As Table 3-14 shows, employment projections by industry classification in the Trade Area were used to estimate
demand for employment space over the next 10 years. At an overall annual rate of 1.9% sustained employment growth, the Trade Area should
add approximately 32,900 new jobs over the next 10 years. Whereas differing levels of industrial space are needed among different industries,
the analysis here suggests support for approximately 3.1 million square feet of new industrial space over the next 10 years. The Study Area should
be able to capture a reasonable share of this industrial demand and should be able to support both larger- and smaller -scale industrial users.
Table 3-14: Trade Area Total Industrial Demand
Industry Category
Estimated
Estimated Estimated Estimated Estimated Estimated % Net New SF per Estimated 10-
2014 Growth Rate 2024 New in Industrial Industrial Industrial yr Industrial
Employees 2014-2024 Employees Employees Space Employees Employee Demand
Natural Resources, Mining and Construction 9,975 2.30% 12,522 2,547 20% 509 500 254,694
Manufacturing 8,036 1.20% 9,054 1,018 80% 814 500 407,217
Trade, Transportation and Utilities 19,901 1.60% 23,325 3,424 90% 3,081 500 1,540,585
Information 1,131 0.60% 1,201 70 20% 14 500 6,975
Financial Activities 5,139 1.58% 6,011 872 5% 44 500 21,803
Professional and Business Services 13,976 2.30% 17,544 3,568 10% 357 500 178,416
Educational and Health Services 23,523 3.10% 31,921 8,398 10% 840 500 419,914
Leisure and Hospitality 9,350 2.60% 12,085 2,736 5% 137 500 68,398
Other Services (includes Self -Employed) 12,535 1.70% 14,836 2,302 10% 230 500 115,075
Government 4,535 1.70% 5,368 833 20% 167 500 83,271
Totals 108,100 2.16% 133,867 25,767 24% 6,193 500 3,096,348
Source: Texas Workforce Commission; HGAC; and Ricker 1 Cunningham.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas i PEARLAND
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Target Industry Analysis
In addition to identification of potential land uses and product types with potential for investment in the Study Area, this task involved the
identification of targeted industries which might find conditions in the Corridor favorable. The Target Industry Analysis provides direction for
future marketing efforts and assists in defining appropriate infrastructure improvements. By focusing the land use program on existing industries
that may expand, and new industries that will potentially seek relocation and expansion opportunities in the market, PEDC and the City will make
the most efficient use of available resources and more effectively position itself for investment.
Business siting location decisions tend to place the greatest emphasis on market, operational, and personal linkages with sites that are ultimately
selected. Since many siting projects are initiated because of dissatisfaction with operating conditions in an existing location rather than the need
for additional space, this fact lends credibility to a geographic targeting approach. The results of the target industry analysis completed here
includes target industries and business groups that will be attracted to the competitive advantages of the southern Houston Metro Area and
Pearland markets, and that represent promising development opportunities for the Study Area.
Industries were selected based on their growth performance, since business expansion and new market development are two of the most
common reasons underlying the need for additional production or service capacity. Among those that survived the growth analysis, theywere
evaluated further to determine their existing level of investment in the region, thereby providing a location quotient by which other industries
could be measured. Those that survived this screen, were further analyzed for their viability as a long-term investment opportunity. The
industries and business groups that have been identified as having potential for local investment reflect the competitive advantages ofthe
regional market area include: Electrical Equipment Manufacturing, Chemical Manufacturing, Machinery Manufacturing, Fabricated Metals
Manufacturing, Plastics and Rubber Manufacturing, Resins Manufacturing, Electronic Instrument Manufacturing, Communications Equipment
Manufacturing, Computer Manufacturing, Petroleum and Coal Manufacturing, and Beverage Manufacturing. These industry groups suggest
potential for future growth in sales and employment, regionally and nationally, and are considered compatible with the localmarket.
Descriptions of priority industry targets are presented in Appendix H.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas ("/ PEARLAND
Market Share
A number of factors influence an area's ability to capture investment dollars. These can be categorized as: top down considerations; bottom up
considerations; external considerations; and others. Some the public sector (or stakeholder entities) can control, and others they cannot.
Top -Down Considerations
• Demand for certain land uses
• Demographic and psychographic conditions which support certain product types
• Untapped market niches (product voids)
• Competitive projects (proposed, planned and under construction)
Bottom -Up Considerations
• Physical capacity of the community / individual parcels to accommodate market -supported product types — fewer physical constraints
• Vision and desire for certain uses and product types
• Size of parcels, parcel ownership (public and private), owner investment objectives
• Zoning (and other regulations) and presence of easements
External Considerations
• Delivery system — who are the area's builders / developers, what are they willing and able to offer
• Financing markets — availability of capital with reasonable funding terms for certain product types
• Forces beyond those currently in the market (e.g., migration to Metro Area by persons who do not represent the existing profile of residents
and consumers)
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Other Considerations
■ Available resources to position and promote investment in the community
• Public support for a Tong -term vision
PEAR...AND
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Based on the market analysis summarized herein, the land uses summarized in Table 3-15 are supportable within the Study Area. Ideally, amix of
uses will be configured in a synergistic manner that encourages an integration of activities and product types. When effectivelyintegrated, these
multi -use developments yield higher values for a more sustained period of time. Rather than addressing the needs and interests of single
markets, collectively, the land uses tend to become destinations and draw on the interest of individuals beyond their respective trade areas.
Whereas the Study Area has several property owners, and each one maintains individual entitlements, achieving an appropriate balance of uses
will be highly dependent on the partner entities' efforts and their willingness and ability to employ a combination of policies, incentives and
regulations to inform and guide investment. Beyond its uses, successful development of the Study Area will depend on a commitment to quality
over quantity as reflected in a unified program of signs, gathering places, and landscaped features; appropriate transitions between uses; access
to, yet preservation of natural amenities; and,
improvements of a suitable scale.
Table 3-15: SH 35 Corridor Potential 10 -Year Market Share
Source: Rickeri Cunningham.
The Study Area is well-positioned to compete for
market share with attainable capture rates ranging
from 2% to 25% depending on the product type.
Actual investment levels will be dictated by numerous
factors including — the physical capacity of the area to
accommodate development, desires of property
owners, community vision, and effectiveness of the
City's ability to position itself and its assets and "ready
the environment" for investment.
SH 35 Corridor Study Area
Land Use Type
Trade Area Demand
(10Year)
Market Share
Absorption (Units/SF)
Low
High
Low
High
Residential (Units):
Single Family Detached
32,328
2%
3%
647
970
Single Family Attached
13,855
8%
12%
1,108
1,663
Rental Apartments
14,875
8%
12%
1,190
1,785
Non -Residential (SF):
Retail
2,076,827
15%
20%
311,524
415,365
Office
2,044,518
15%
20%
306,678
408,904
Industrial
3,096,348
20%
25%
619,270
774,087
Source: Rickeri Cunningham.
The Study Area is well-positioned to compete for
market share with attainable capture rates ranging
from 2% to 25% depending on the product type.
Actual investment levels will be dictated by numerous
factors including — the physical capacity of the area to
accommodate development, desires of property
owners, community vision, and effectiveness of the
City's ability to position itself and its assets and "ready
the environment" for investment.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Section 4:
Framework Plan and Catalyst Concepts
The experience of other communities has shown that successful redevelopment
initiatives effectively leverage existing land uses, public improvements, and
community amenities, both existing and planned, in a manner that creates an
identifiable "address" or environment for private investment. With this goal in
mind, a graphic illustration of the desired physical framework within which
catalyzing investment in the Study Area will occur, was prepared and is
presented here as Figure 4-1. With input from stakeholders, City staff and
members of the community, the SH 35 Framework Strategy was developed
depicting desired elements of the Corridor in its redeveloped form. It should be
used to inform priority initiatives and capital investments, as well as, inform
policy and incentive decisions. Presented in the following discussion is a
description of key components of this Framework Plan, followed by more
detailed descriptions and analyses of potential catalyzing investment projects.
Framework Plan Goals
The SH 35 Corridor Framework Plan identifies the location of potential public
improvements and the boundaries of specific districts -- Business Park North,
Business Park South, Commercial Transition and SH 35 Core -- where certain
land uses and product types are desired. Preferred uses are consistent with
stakeholder preferences (as provided by members of the Advisory Committee),
as well as findings from market and physical analyses completed in the context
of the planning process. The following discussion provides a characterization of
Corridor -wide and segment -specific physical infrastructure enhancements.
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Figure 4-1: SH 35 Redevelopment Framework Plan
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas
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The SH 35 Corridor, has historically and remains a highly auto -oriented corridor, lacking a consistent program of public improvements,
and building improvements covering a wide range of quality levels. Many of the Framework Plans elements are intended to provide
amenities and enhancements to the public realm that will unify uses within its boundaries, and connect different centers of activity.ln
addition to enhanced non -vehicular mobility, improvements to its aesthetic appeal are also principal objectives of thisStrategy.
Landscaping improvements are intended to enhance its visual appearance, while also balancing soft and hardscapes within its
boundaries. Other recommended investments include an enhanced Old Townsite streetscape, primary and secondary streetscapes, and
district gateway and identify nodes improvements. Existing conditions reflected including major ditches, flood zones, the rail corridor, and
municipal parks.
Catalyst Investment
As explained earlier, a catalyst concept is a development and / or redevelopment project with the potential to have a positiveeconomic
ripple effect on properties within an area of influence. Within the SH 35 Study Area, several projects were identified and determined to
have the potential to leverage private investment despite certain development challenges. Analyses completed as part of thevetting
process included:
• understanding the physical capacity of specific sites and the Corridor as a whole to competitively accommodate the concepts
• determining if there was sufficient local or regional market support for specific components
• testing their financial feasibility, and in so doing quantify the magnitude of any economic gap
• identifying other barriers to development so that actions could be implemented to mitigate or overcome them
• ultimately, prioritizing public initiatives that would effectively "ready the environment" within the Corridor for investment
It is important to note that among the five projects identified and described below, they include both public improvement and private
development projects. In addition, not all of them need occur in the location described. Among the non -site specific concepts, these are
referred to as floating concepts whereas they have the potential for application in multiple locations.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas PEAR.AND
ENO ne,ISwrtanrco14anArav
Elements of Catalyzing Concepts
In addition to possessing the potential to leverage private investment, the catalyst projects identified here were considered to havethe
ability to "prove up" support for uses and products that may not as yet exist in the market today. It is widely concluded that just because a
specific land use or product type if not part of the available inventory, there is limited or no support from trade area residentsand
consumers. While in some instances this may be the case, more often than not, their absence is due to the inexperience or unwillingness
of builders and developers, or limiting regulations. Efforts such as this one can provide the market reconnaissance and financial analyses
necessary to raise awareness among these critical audiences. Similarly, it can educate public officials about the inherent risks associated
with pioneering new projects, and essential role they can play in minimizing uncertainty and risk.
The five project concepts identified as having either near-term development potential, or the ability to mitigate adverse conditionsand
in so doing leverage near-term development, include the following:
Catalyst No. 1 Northern Gateway and Corridor Improvements
Catalyst No. 2 Business Park North
Catalyst No. 3 3a. Restaurant and Entertainment Destination
3b. Main Street Buildings and Urban Environment
Catalyst No. 4 4a. Old Town Esplanade
4b. New Community on former Alvin Community College Campus
Catalyst No. 5 Business Park South
Several factors were used to identify locations within the Corridor that presented appropriate host -environments for near-term
investment. Factors considered included:
• property ownership
• financial basis
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
• ratio of physical improvement to land value
• trend in property appreciation or depreciation
• proximity to existing or planned public improvements
• potential impact of different concepts on surrounding land uses
• capacity of existing infrastructure
PEAR_ ;f
a GEOLUFMFNI CCAKAAVON
Concept development programs were informed by the following considerations which, similar to the Framework elements, emerged from
an understanding of existing conditions along with stakeholder input. Factors considered included:
• presence of an obstacle deemed significant enough (real or perceived) to dilute or negate the Corridor's competitive advantages
• existing property ownership interest in participating in furthering key components
• magnitude of the financial gap (if any) between project costs and revenues
• proximity of available sites to existing or planned improvements or centers of activity
• knowledge gained during analysis of the market and its demographic and psychographic profile
All of these considerations are represented in the following list of catalyst criteria which were developed with guidance from members
of the Advisory Committee to this project.
Catalyst Criteria
• Potential to support a market opportunity (physical capacity, location, access, visibility)
• Opportunity to strengthen and / or link existing districts or activity center
• Ability to leverage existing or planned investment
• Surrounded by a supportive physical environment (presence of parks, open space, etc.)
• Favorable property ownership patterns (willing owner or seller, public or private)
• Compatible with policy and regulating documents (or if not, possessing public support)
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
• Availability of resources (or incentives) to address challenges
• Presence of supportive entities such as adjacent land owners or at least few opponents
Catalyst Projects
/ PEARLAD
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Each catalyst project and its components are described in more detail below. Whereas each one is prototypical, since no commitments of
financing or development have been made, they should be interpreted with a certain level of flexibility. To this end, and as described,
they are not intended to be prescriptive, but rather informative. Supporting recommendations regarding how to advance them in whole
or in part, presented in the following section of this report, advises that PEDC and the City lead efforts to promote their potential. Where
municipal regulations are inconsistent with the concept, it is assumed the City will either work with existing owners to amend current
requirements or expedite requests of exceptions. Financial resources for private development projects are assumed to include a
combination of traditional private sources, available municipal mechanisms (380 agreements, TIF) and economic development dollars.
Catalyst No. 1 - Northern Gateway and Corridor Improvements
Purpose
Offer a business location for office and industrial users seeking a high quality setting offering supportive infrastructure and amenities and
access to points north and south of Pearland and Houston Metropolitan Area.
Challenges
• Existing development on both the east and west sides of SH 35 at north end of corridor do not reflect desired uses, character or
quality
■ Recent TxDOT improvements are marginal in terms of aesthetic appeal and are without function in some locations
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
• Presence of overhead utilities
• Location and capacity of utilities vary by location
• Existence of pipelines and drainageways
Objectives
CPEARLAND
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• Create identifiable "address" in the region
• Introduce business park improvements (trails, signage, creek, bridge, intersection)
• Replace hardscapes with softscapes in an effort improve appearance and "cool environment"
• Extend the Corridor's "gateway area" beyond the existing monument sign north of Clear Creek to Knapp Road and overcome
challenge created by distance to municipal boundary
• Three options for landscape improvements with differing levels of complexity (presented in order from least aggressive to most,
and correspondingly, least expensive and impactful to most):
establish an ornamental fence along the flea market property line and saw -cut existing concrete drainage structure to
establish vines
remove and fill concrete drainage structure and establish an ornamental wall and shrub plantings
negotiate for frontage within select parcels located adjacent to the SH 35 Corridor in order to accommodate a berm or
ornamental wall and shrubs
• Densify landscape (grass) area in front of existing fence with ornamental shrubs and trees (natives) — utilize temporaryirrigation
system to establish plants
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 1 - Northern Gateway and Corridor Improvements
Existing Conditions
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Proposed Improvements — Northern Gateway
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 1 - Northern Gateway and Corridor Improvements
Proposed Improvements — South of Entry Drive (example images)
PEAR
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 1 - Northern Gateway and Corridor
Improvements
(Intersection Imagery)
Development Economic Analysis
Public investment for this catalyst project could include
both corridor and streetscape improvements. Phased
streetscape improvements could begin with fencing and
native plantings and then be expanded to include
screening walls, utility adjustments, street excavation,
and easement purchases. Table 4-1 illustrates the
economic/fiscal impact of these improvements.
Modular Signage Concept for 5M 35 & McMard Rd. Intersection:
BrMM111dCOMP 01Else►
Modular Signage Concept for 58 35 L Broadway S1. Intersection:
rout Ws
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City of Pearland Monument Siyn Concept
Iden* pgwge concept for ok*ta kfemr Nodes. MO$erlok
adopted Prom We Peceic d Ieadlscotkin S++a epr 5kpr.
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Phase No. 3 - aesthetics and amenities including trail connections, bike paths, signage, landscaping
Phase No. 2 - intersection and corridor improvements in locations that most effectively leverage private investment
Phase No. 1 - northern "gateway" and "screening" improvements
presented or as dollars are available for specific project components—
Assuming that private investment follows public commitment, complete improvements within the following categories in the order
gu!wu. pue Sulsegd
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investment is eminent so that public investment is leveraged; and, connections to local and regional trail systems sothat employees can
Source: Kimley Horn and Ricker I Cunningham.
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individual parcels within the Corridor appear to be part of
and softscapes where hardscapes currently exist so that
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas / PEARLANO
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Property Assemblage, Positioning and Disposition
Educate property owners in the Corridor about the vision for an improved physical environment and discuss options for PEDC to
proactively locate, install, and maintain enhanced landscaping and other public spaces -- if property owners are willing to dedicate an
easement to either PEDC or the City, transfer ownership and / or accept a variance where current easements exist -- where rights-of-way
bifurcate multiple jurisdictions, solicit public entity interest in participating in a cooperative agreement and / or being part of an overlay
district that solidifies anticipated improvement levels and their location.
Financial Resources and Incentives
PEDC participate in capitalizing select improvements, both onsite and offsite; explore the feasibility of establishing newfunding
mechanisms including creation of a tax increment district; pursue matching public and private dollars; and, request support from various
advocacy entities to assist with either early or ongoing financing for improvements.
Catalyst No. 2: Business Park North
Purpose
"Ready" or position properties (both private and public) for investment by completing due diligence research efforts on behalf of private
sector property owners by identifying and eliminating barriers to investment, and streamlining the timeframe between siteacquisition
and / or completion of vertical improvements.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas ( PEAR,...AtAI'
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Challenges
Presence of floodplain constraints and major pipeline easement
• Location of utilities varies by location (along eastern or western edge of 35)
• Environmental contamination of select parcels
• Overall appearance of corridor (lack of consistency, no unifying design elements)
• Zoning on select parcels that is inconsistent with the expressed vision
Objectives
• New road off SH35 to serve southwest quadrant
Stormwater detention improvement is located north of the pipeline easement and adjacent to the floodplain -- servingthe
entire site
• Vehicular access would need to be made available from McHard Road and Alice Street (for Parcel F) (see illustration below)
• Development would require removal of abandoned infrastructure
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 2: Business Park North
Southwest Quadrant (McHard and SH 35)
2"1"-r-
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Parcel E D
Parcel D
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas (/PEARL AND
Catalyst No. 2: Business Park North
Proposed Improvements — South of Entry Drive (example images) Possible Locations
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 2: Business Park North
Development Economic Analysis
PEAR,..1 A
t`ONOMC t36VILO MENTc6nfoMro!
This catalyst project would include a mix of land uses within a private sector development. Table 4-2 summarizes the economic/fiscal
impact of this private project.
Table 4-2: Catalyst No. 2: Economic/Fiscal Impact
Development Program
Units
Square Feet
Retail/Restaurant
12,000
Flex/Employment
230,000
Residential (Rental)
0
0
Residential (For -Sale)
0
0
Gross Floor Area
242,000
Project Land Area
1,041,084
Floor Area Ratio
23%
Development Pro Forma Summary
Total Project Value
$28,373,733
Total Project Cost
$27,875,626
Project Margin/"Gap"
$498,108
% Project Margin/"Gap"
2%
Potential Tax Revenues
Taxable Development Value
$24,800,000
Annual Property Tax Revenues
$176,601
Annual Sales Tax Revenues
$45,000
Potential New Residents
0
Potential New Employees
605
As shown, approximately $24.8 million in increased development value could be
generated by this catalyst project, resulting in over $221,000 in new annual tax
revenues. In addition, the project could generate 605 new jobs. Development of
the project would result in a surplus estimated at $498,000, or 2% of project
costs. Because this analysis includes developer profit of 10%, this catalyst
represents a "doable" redevelopment project.
Development Strategy
Establish a policy whereby PEDC and the City participate with property owners in
funding the construction of infrastructure improvements in an effort to position
properties for near-term investment, acknowledging that eligible parcels will
meet specified criteria such as -- vacant for an extended period of time,
presenting potential for job creation (primary), ability to advance key economic
development goals, and others.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas (PEARLA D
A441147coRaou*a4
Phasing and Timing
The timing of improvements within private properties will be dictated by several factors (some outside PEDC's control), among them:
• interests and resources of private property owners
• resources of PEDC and other advocacy entities who may participate in funding improvements (proactive efforts)
• number and condition of available properties
• number of meritorious parcels (see criteria) who request assistance (reactive efforts)
• Proactive efforts - priority properties for targeted investment (either publicly- or privately -held) will have the fewest obstacles
(barriers) to investment and be in the most strategic locations based on meritorious measures such as:
• at or near an intersection
• uninhibited access to the Corridor
• visibility from either a primary or secondary roadway
• adequate in size and shape to accommodate a marketable improvement
• Reactive efforts - timing will be dictated by requests for assistance by property owners with strategically -located properties and a
meritorious development concept
Property Assemblage, Positioning and Disposition
PEDC will consider the acquisition of private properties made available by existing owners in an effort to entitle (if necessary), improve
and position (if deemed feasible), and sell (dispose of) to an individual or entity willing to advance the vision and objectives defined
herein -- priority properties should include those within the identified catalyst areas and other locations where the intended investment
program is inconsistent with and will compromise the vision.
Financial Resources and Incentives
Use existing resources of PEDC and the City to complete capital improvements, including any capital reserves or economic development
funds.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 3 - 3a. Restaurant and Entertainment Destination
Purpose - Restaurant and Entertainment Destination
PEAR
Establish a destination for residents and visitors with commercial venues unique to the area and its "gritty character" and compatible
with existing uses that correspondingly provide an environment to incubate local businesses and grow Old Town's dining and shopping
offerings.
Challenges
• Railway impacts — noise, smell, others — mitigation
• Multiple property owners
• Zoning on select parcels that is inconsistent with the expressed vision
• "Dry" restrictions on the sale of alcohol
Objectives
• Potential concept - beer garden / restaurant venues
• Improvements — hosting both public spaces and private operators (possible location for food trucks)
• Either reuse or replacement of existing industrial buildings along railroad track to accommodate destination restaurant /
entertainment venue
• New pedestrian improvement along both Sacramento and Jasmine Streets -- connecting existing food operators located north
(crawfish restaurant) and east (Killen's)
SH 35 Corridor Redevelopment Strategy — Pearland, Texas PEARLA D
CON6MC DEYR101MQM GONOWON
Catalyst No. 3 - 3b. Main Street Buildings and Urban Environment
Purpose — Main Street Urban Design
Complement this new venue and existing uses with supportive pedestrian and streetscape improvements, and urban design elements
that balance vehicular and non -vehicular movement and provide a "downtown" experience.
Challenges
• Existing improvements constructed with parking in front eliminating the potential for a building edge along the right-of-way
• Few vacant sites, thus requiring either demolition or redevelopment of existing structures — extending timeframe and
potentially increasing costs — unit cost for demolition
• Insufficient and inadequate pedestrian improvements to encourage day and nighttime users
Objectives
• Introduction of pedestrian improvements which connect area to uses along Main Street to the north and others east along
Jasmine Street
• Pedestrian improvements will be a "draw" unto themselves with natural and man-made enhancements including tree and/
or light canopies
• Shared parking located mid -block, eliminating need for more surface parking
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 3 - 3a. Restaurant and Entertainment Destination
N
MULTI-PURPOSE O
TRAIL \ z
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Express
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Proposed Improvements (example images)
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SH 35 Corridor Redevelopment Strategy — Pearland
'Te•
r` PEARLAND
:: m:❑EYAMIPMEM CINIORAtOd
Catalyst No. 3 - 3b. Main Street Buildings and Urban Environment
MULTI-PURPOSE 0
TRAIL 2
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441,1
Proposed Improvements — Pedestrian Connection (example images)
SH 35 Corridor Redevelopment Strategy — Pearland, Texas / PEAR..:
EOONOaC DEMO/VENT COROON VON
Catalyst No. 3 - 3b. Main Street Buildings and Urban Environment(cont'd)
Proposed Improvements—Street Edge (example images)
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 3 - 3a. Restaurant and Entertainment Destination
Development Economic Analysis
PEARL.
��n ,O'1C DEvF. Z/VENT CORVORATON
This catalyst project would include a mix of land uses within a private sector development. Table 4-3 summarizes the economic/fiscal
impact of this private project.
Table 4-3: Catalyst No. 3: Economic/Fiscal Impact
Development Program
Retail/Restaurant
Units
Square Feet
33,100
Flex/Employment
0
Residential (Rental)
0
0
Residential (For -Sale)
0
0
Gross Floor Area
33,100
Project Land Area
174,240
Floor Area Ratio
19%
Development Pro Forma Summary
Total Project Value
$5,767,675
Total Project Cost
$5,389,955
Project Margin/"Gap"
$377,720
% Project Margin/"Gap"
7%
Potential Tax Revenues
Taxable Development Value
$4,965,000
Annual Property Tax Revenues
$35,356
Annual Sales Tax Revenues
$148,950
Potential New Residents
0
As shown, approximately $4.9 million in increased development value could
be generated by this catalyst project, resulting in over $184,000 in new annual
tax revenues. In addition, the project could generate 83 new jobs.
Development of the project would result in a surplus estimated at $378,000,
or 7% of project costs. Because this analysis includes developer profit of 10%,
this catalyst representsa "doable" redevelopment project.
Development Strategy
Restaurant and Entertainment Venue Destination
Solicit existing property owners regarding their interest in "hosting" the
identified catalyst concept (open-air food court for food trucks or temporary
structures for multiple vendors) to test the market's interest before building
more permanent structures -- owners will have option to lease or sell property,
participate in financing improvements, and share in financial return; if
interested in leasing or selling property to a developer or operator, PEDC will
issue a developer / operator request and facilitate negotiations -- if noviable
responses are received, PEDC should consider property acquisition,
construction of temporary improvements, identification of private operators,
and management of the space (street on street edge.)
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Phasing and Timing
PEARLS AND
i i�; r.irrAP, nEV440MiN7 WMAATON
Upon identification of a preferred developer or operator (including the existing owner or PEDC) -- complete the following actions in the
order presented or as dollars are available for specific project components--
• determine roles and responsibilities of each relative to required onsite and offsite improvements and fundingsources
• obtain regulatory approvals for temporary structures (food court zoning and / or commercial kitchen incubator designation)and food
service sales (food truck ordinance)
• identify necessary offsite improvements including pedestrian and streetscape enhancements that connect this venue with other
existing food and entertainment establishments including Atchafalaya Crawfish and Killen's Steakhouse and Barbeque and corridor
improvements including adjusting the Industrial Drive alignment
■ amend the geographical extent of existing Old Town regulations, build -to references and development thresholds thattrigger
compliance
■ depending on investment and return expectations and terms of financing, consider a multi -phase project with
• temporary structures completed during first phase
• transitioning to permanent structures during phase two
• update Grand Avenue and Old Town Plans to reflect the recommendations presented herein
Property Assemblage, Positioning and Disposition
If no interest is expressed by either existing property owners or potential developers, PEDC should consider acquiring and leasing or
selling a viable site or sites to an operator or operators, and subsequently constructing or participating in the construction of vertical
improvements (see Development Strategy).
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Financial Resources and Incentives
( f!j14,11CAR .;'
{MEOR AOMCppiQRRON
PEDC participate in capitalizing select improvements, both onsite and offsite; explore the feasibility of establishing new funding
mechanisms including creation of a tax increment district; pursue matching public and private dollars; and, request support from
various advocacy entities to assist with either early or ongoing financing for improvements.
PEDC participate with selected developers of catalyst projects in various ways and using different mechanisms, given: available resources
(amount and type); desired outcomes; experience of development partner; and, consistency of development program with stated goals.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 4 - 4a. Old Town Esplanade
Purpose — Old Town Esplanade
PEAR \ ND
CININC 13EV1.WIMiNT(}ORFOIR H
Introduce pedestrian and streetscape improvements which solidify Old Town as a destination for residents and visitors, balancing
vehicular and non -vehicular movement, connecting existing and future centers of activity, and catalyzing property investment
and reinvestment.
Challenges
• Parking demand is high along Jasmine Street and shared with church complex located to the north
• Insufficient and inadequate pedestrian improvements to encourage day and nighttime users
• Existing and inconsistent pedestrian improvements that will have to be removed and replaced
• Insufficient easement depths to accommodate improvements
Objectives
• Pedestrian improvements from -- East Jasmine Street to Park Avenue, Park Avenue and / or Galveston Street to Killen's,
and south to "new neighborhood" within "old airport site"
• Later phase of pedestrian improvements along Grand Boulevard connecting "new neighborhood" within former airport
property
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
• Visually and functionally attractive pedestrian connection to existing destinations
■ Enhanced public improvements which become a destination unto
themselves
• Possible materials - vine canopy, twinkle lights, brick pavers, tree canopy
■ Walkable environment and connections between existing and new investments
• Streetscape along Old Town's principal corridors and public spaces
• Public improvements that serve to stabilize and enhance existing values within established neighborhood
• Enhanced public spaces - within existing buildings, historically -relevant and otherwise (i.e., theater)
• Enhanced pedestrian connections to new and existing anchors
• Retention of street grid
• Green buffer along industrial uses at northern edge of site
Catalyst No. 4 - 4b. New Community on former Alvin Community College Campus
Purpose — New Community on former Alvin Community College Campus
PEARL AND
t •:ONOMC DEVRiAtM:.M 03141011•001,1
Provide the community with a demonstration of market support for alternative housing product types (a goal of the 2015
Comprehensive Plan), provide a daytime population to support commercial operators, and offer transitional uses between the
commercial frontage and established neighborhoods beyond the Corridor.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas (PEARLAND
ECONOMIC OLVIU IAENTCOMOROON
Challenges
• Historical marker on one building may limit redevelopment options
• Seller's asking price unsubstantiated
• Potential for extraordinary costs associated with remediation and demolition (existing conditions unknown)
• Zoning on select parcels that is inconsistent with the expressed vision
Objectives
• New traditional community with alternative housing products (demonstration project)
• Redevelopment of some existing buildings, demolition of remaining improvements, retention of courtyard area,
stronger connection to city park
• 22 cottage units facing Grand Boulevard, Park Avenue and Zychlinski Park
• Vehicular access provided through alleys located mid -block
• Multi -phase project by more than one developer
• Multi -generational neighborhood
• Mix of lot and unit sizes to support needs of multiple generations (singles, families and empty nesters)
• Amenitized public spaces (pocket parks) within 1300' walk of every unit
• Houses fronting all public spaces (parks and streets)
• Replacement use for current non -tax generating improvements
• Infill "new community" on former school site and recent community college property
• Additional "rooftops" in Old Town to support commercial operators
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 4 - 4a. Old Town Esplanade and 4b. New Community on former Alvin Community College Campus
Proposed Improvements
Example Images
PEAR. ,
ECONOMC f:EMCOMENI CORMRrtUN
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
�y PEAR
ECC NOM C. q; vr..OHM. N; CORSQRAT�».
Catalyst No. 4 - 4b. New Community on former Alvin Community College Campus
Development Economic Analysis
This catalyst project would include a mix of land uses within a private sector development. Table 4-5 summarizes the economic/fiscal
impact of this private project.
Table 4-5: Catalyst No. 4 Economic/Fiscal Impact
Development Program
Units
Square Feet
Retail/Restaurant
20,000
Flex/Employment
5,000
Residential (Rental)
0
0
Residential (For -Sale)
22
39,600
Gross Floor Area
64,600
Project Land Area
173,251
Floor Area Ratio
37%
Development Pro Forma Summary
Total Project Value
$9,040,750
Total Project Cost
$10,949,297
Project Margin/"Gap"
($1,908,547)
% Project Margin/"Gap"
-17%
Potential Tax Revenues
Taxable Development Value
$9,350,000
Annual Property Tax Revenues
$66,581
Annual Sales Tax Revenues
$22,500
Potential New Residents
62
Potential New Employees
63
As shown, approximately $9.4 million in increased development value could be
generated by this catalyst project, resulting in over $89,000 in new annual tax
revenues. In addition, the project could generate 62 new residents and 63 new
jobs. Development of the project would result in a deficit estimated at$1.9
million, or 17% of project costs, largely due to high land costs and potential
environmental remediation. This catalyst would likely require significant public
investment to make it a "doable" redevelopment project.
Development Strategy
Old Town Esplanade
PEDC and the City invest in priority capital projects including a pedestrian
esplanade that will serve as a destination unto itself while also connecting the
restaurant and entertainment destination (see Catalyst No. 3) project to Old Town
improvements and existing neighborhoods and destinations to the east (Killens
Barbeque) and future neighborhoods to the south.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
New Community
/PEAR
t CCNub'1C ,
Investigate alternative approaches to improve or solicit developers to improve the former community college property as amulti-use
neighborhood with a mix of residential product types currently untested in the market, potentially including live -work spaces, alongwith
supportive commercial and community spaces.
Phasing and Timing
Approach the owners (school district) and / or representatives of the community college campus regarding their interest in partneringto
solicit the interest of potential master developers -- PEDC will issue the request (for qualifications) and partner with the district
(optional) to review submittals , select the developer, and negotiate the sale; if the district is not interested in partnering to pursuea
developer, PEDC consider acquiring the properties that comprise the campus, and solicit developer interest independently of the district.
Upon identification of a preferred developer or sale of the campus to PEDC -- complete the following actions in the order presented—
▪ determine roles and responsibilities of each relative to required onsite and offsite improvements and funding sources including
environmental remediation
• obtain regulatory approvals for intended uses including -- higher density single family detached housing units, live -work unitsfor
artists, community center, and commercial spaces; as well as, building retrofits (existing theater and historically -significant buildings)
• identify and complete necessary offsite improvements including the esplanade and other improvements intended to
accommodate pedestrians and bicycles and connect them to existing uses and activity centers and adjacent neighborhoods
along East Jasmine Street and South Grand Boulevard and onsite environmental remediation
• amend the existing Old Town regulations to allow for desired uses in a format consistent with select neo -traditional principles
related to setbacks and site lines, and connections to open and public spaces
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
• depending on investment and return expectations, and terms of financing -- encourage master development of the properties
by a single entity, and subsequent sale of individual building pads to multiple builders or developers who will dictate the number
and timing of project phases
Property Assemblage, Positioning and Disposition
If the district is not interested in partnering with PEDC to solicit developer interest consistent with the concept vision, PEDC consider
acquiring the properties that comprise the campus, independently solicit developer interest, and complete the subsequent action steps
described above.
Financial Resources and Incentives
PEDC participate in capitalizing select improvements, both onsite and offsite; explore the feasibility of establishing new funding
mechanisms including creation of a tax increment district; pursue matching public and private dollars; and, request support from various
advocacy entities to assist with either early or ongoing financing for improvements.
PEDC participate with selected developers of catalyst projects in various ways and using different mechanisms, given: available resources (amount
and type); desired outcomes; experience of development partner; and, consistency of development program with stated goals.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 5: Business Park South
Purpose
PEARL Afi.:- `r:
EVINONC DEV} CQNAENI CORPNAY VN
Offer an alternative to the northern segment of the Corridor for business and industry seeking a highly amenitized environmentwith
expansion opportunities and proximity to regional north -south transportation corridors and points south of the Houston Metropolitan
Area.
Challenges
• Presence of floodplain constraints and pipeline easements
• Distance to Tollway and Interstate
• Overall appearance of corridor (lack of consistency, no unifying design elements)
• Zoning on select parcels that is inconsistent with the expressed vision
Objectives
• Largest remaining contiguously owned parcels in the vicinity of the Corridor with highest potential for "business park"
environment
• Favorable property ownership - Pearland Independent School District (PISD) and single owner (50+ acres)
• High quality public improvements with design controls for public spaces, parking and storage areas
• Offers a location for expansion among existing businesses so they are not lost to other communities
• Utility easements will not negatively impact development potential of properties
• Despite the presence of a ditch on the northern edge of the PISD site, there are no floodplain impacts
• Thoroughfare located along the northern edge of the PISD site was slightly realigned to create a more developable parcel on this
edge of the site
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Catalyst No. 5: Business Park South (Potential Development Sites)
PEAR,
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Table 4-6: Catalyst No. 5: Economic/Fiscal Impact
waroad alenpd slyt jo pedual
This catalyst project would include a mix of land uses within a private sector development. Table 4-6 summarizes the economic/fiscal
Development Economic Analysis
Catalyst No. 5: Business Park South
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SH 35 Corridor Redevelopment Strategy — Peariand, Texas
Phasing and Timing
&AR
Phase capital improvements giving the highest priority to those that establish the southern segment of the Corridor as acohesive
employment center, mitigate negative impacts (visual and physical), and catalyze desired private investment; timing within private
properties will be dictated by several factors (some outside PEDC's control) including the resources of private property owners and PEDC
and location and condition of available meritorious properties.
Property Assemblage, Positioning and Disposition
PEDC work with existing property owners in the Corridor about the vision for an improved physical environment and creation of a
business park setting, and -- with willing owners, partner to secure entitlements, finance and construct infrastructure improvements,
and market parcels to potential users; with unwilling owners, consider acquisition of available properties and complete the same
actions, yet independent of the original owner; priority properties should include those where the intended investment program is
inconsistent with and will compromise the vision.
Financial Resources and Incentives
PEDC participate in capitalizing select improvements, both onsite and offsite; explore the feasibility of establishing new funding
mechanisms including creation of a tax increment district; pursue matching public and private dollars; and, request support from various
advocacy entities to assist with either early or ongoing financing for improvements.
PEDC participate with selected developers of catalyst projects in various ways and using different mechanisms, given: available resources (amount
and type); desired outcomes; experience of development partner; and, consistency of development program with stated goals.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Economic Feasibility
PEAR;..
Project outcomes, including profitability, are influenced by a multitude of factors including a project's location, management, marketing,
political support and others. Because there are many "moving parts" to development, and even more associated with redevelopment,
success is highly dependent on the elimination of as much uncertainty, as possible. Variables that can heighten risk, and corresponding
uncertainty of redevelopment projects, are found in both its cost and revenue assumptions including:
■ Variations in land prices, depending on market conditions and property owner expectations;
• On-site development costs, depending on existing conditions;
• Off-site development constraints, including upgrades to existing infrastructure;
• Higher financing costs due to perceptions of risk; and
■ Timeframe to absorb space or achieve anticipated rents and / or sale prices.
Among the most significant challenges facing potential catalyst projects such as those presented hereare:
• Level of market "education" required to reframe the consumer's perceptions;
• Higher development costs associated with creating a "place" sufficient to attract the desired market segments;
• Ability to overcome investor concerns about the projects' location in a transitional area; and
• Higher project costs associated with the assembly of land, construction staging in a built environment, and parking.
The purpose of preparing economic analyses for each of the catalyst concepts is to provide the City and PEDC with insight into the private
investor's perspective regarding the viability of investment in the Corridor, while also providing information that most effectively "tells
the story" of the Corridor's potential for investment and reinvestment. Benefits to the public sector include a betterunderstanding of the
"order of magnitude" of any financial "gap" that might result from development and / or redevelopment of these or similar projects in
the Corridor; and, guidance with regard to the type and number of financing mechanisms and strategies which will be needed
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
PE/>R
FlY:n ti4�t .
to deliver projects of these types to the market. Since assumptions used are based on prevailing market indicators, finalfigures associated
with actual projects will likely be different as conditions and markets change. For perspective, economic gaps of 20% to50% are not
uncommon in established commercial locations like the SH 35 Corridor that are on the cusp of revitalization. As shown in the following
table, two of the projects generate small surpluses, while the other two suggest gaps ranging from approximately 2%to7%. These
surpluses, and relatively small gaps, indicate that the Corridor may be ready for new reinvestment.
Leveraged Investment
One of the primary objectives of publicly -led revitalization efforts is to "leverage" public resources and encourage private investment.
While public sector entities should not necessarily expect a healthy return in the early stages of initiatives similar to this one, they should
over the mid- to long-term. Whereas the first few development projects in these environments almost always suffer from economic gaps
resulting from challenges identified here, the intent of early contributions is to reverse the prevailing trend and prove-updemand for
market -supported project concepts. Despite the potential for a limited direct return on public sector efforts in the early phases of these
efforts, it is equally rare that public initiatives will not gather momentum as project economics improve to the point where their
participation is no longer needed, or at least to the same level.
The catalyst concepts summarized here have multiple phases, and individually and collectively have the potential to effectively leverage a
high degree of private investment. As shown in Table 4-6, collectively they have the potential to generate over $240 million in new private
investment. The potential public investment required to "fill" potential economic gaps would likely range between $6 million and
$8 million, yet leverage this involvement at an overall average ratio of 30: to 40:1 ($30 to $40 spent by the private sector for every $1 spent
by the public sector).
Public sector decisions regarding participation, and to what degree, should be based on several factors, among them the level of public
investment in infrastructure, parking, and land required to encourage or "ready the environment" for investment, and resultingamount
of private investment leveraged.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Table 4-6:
Catalyst Project Leverage Summary
Source: Kimley Horn and Ricker Cunningham.
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Catalyst Project Concepts
Catalyst #3:
Restaurant and
Catalyst #4: Old
Entertainment
Town Esplanade
Destination /
/ New
Main Street
Community on
Catalyst #2:
Buildings and
Former Alvin
Catalyst #5:
Business Park
Urban
Community
Business Park
Project Indicator
North
Environment
College Campus
South
Private Sector Investment
Development Sq Ft:
Project Land Area (Acres)
23.9
4.0
4.0
188.0
Retail/Restaurant
12,000
33,100
5,000
20,000
Office/Employment
230,000
0
20,000
1,500,000
Residential (Rental)
0
0
0
272,000
Residential (For -Sale)
0
0
39,600
0
Total Private Development
242,000
33,100
64,600
1,792,000
Floor Area Ratio
23%
19%
37%
22%
Total Project Value (@ Build -Out)
$28,373,733
$5,767,675
$9,040,750
$197,217,333
Total Project Costs (@ Build -Out)
$27,875,626
$5,389,955
$10,949,297
$200,356,025
Project Margin/(Gap)
$498,108
$377,720
($1,908,547)
($3,138,691)
Project Margin/(Gap)%
2%
7%
-17%
-2%,
Potential Contributions to Gap
Land Acquisition/Write-down
$0
$0
$0
$0
Site Improvements Contribution
$0
$0
$619,378
$0
Supportable TIRZ (25 Years)
$0
$0
$2,600,000
$51,800,000
Sales Tax Sharing (380 Loan -- 20 Yrs)
$0
$0
$100,000
$500,000
Public Improvement District (20 Years)
$0
$0
$0
$0
Property Tax Abatement (10 Years)
$0
$0
$500,000
$10,800,000
Development Fee Waivers
$0
$0
$0
$0
Federal/State/Local Grants
$0
$0
$0
$0
Streamlined Development Approval Process
$0
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this redevelopment effort is sustained and public commitment long
to stakeholders and local officials so that community support for
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realities. To this end, its major components include:
The recommended vision for revitalization of the SH35 Corridor
and understanding of desired outcomes, tempered with market
the SH 35 Corridor is based on an awareness of existing conditions
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas
what is envisioned over the near- and long-term.
Guiding Principles
While the purpose of this SH 35 Corridor Redevelopment Strategy is
to inform and guide future growth in the Study Area, it is a policy,
not regulating document. As such, the only way to protect the
expressed vision, and advance the desired improvements, will be to
ensure alignment among the City's guiding documents, particularly
those codes and standards that will inform investment within its
boundaries. In addition, guidance that fosters sound decision-
making by the City's leaders will need to be provided, particularly on
matters related to land use and capital expenditures, so that they
continually reflect and support the intentions herein. Regarding
amendments to existing regulations and development standards,
several recommendations are provided in Appendix I. In terms of
information to assist public officials, the following guiding principles
are offered as a reference, with each one, while general in nature,
intended to reflect existing challenges, potential opportunities, and
input from experts in the fields of finance, development, business,
and industry, all of which participated in this strategy process.
Guiding Principles are defined as representing a broad philosophy
that guides the organization throughout its life in all circumstances,
irrespective of changes in its goals, strategies, type of work, or the
top management filter for decisions at all levels of theorganization.
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IMNGNIC: f:Vi'.
1. The City will maintain a proactive and sustained attitude towards
redevelopment that is consistent with the vision for the Corridor.
2. The community's vision for the Corridor will be reflected in
supporting policies and regulations.
3. Industrial and commercial land uses will be encouraged in
appropriate locations so as to maintain the desired character of
each segment of the Corridor.
4. Development standards will be appropriate for the expressed
vision and catalyzing concepts within the various segments of the
Corridor.
5. Property owners will be provided with knowledge and analyses
(due diligence) resulting from this process in an effort to
encourage desired investment.
6. Capital projects will be phased to encourage new investment,
first, and improve conditions for existing uses, second.
7. Enhancements to public spaces will be consistent with the vision
for an employment center environment and include new and
replacement projects despite the age and condition of existing
improvements.
8. Policy, vision and regulatory documents superseded by the
objectives expressed in this SH 35 Corridor Redevelopment
Strategy will be updated and in the interim variances afforded for
select projects deemed consistent with the objectives stated there
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Development Approach
Any approach by a public entity to encouraging investment in a
defined geography should cultivate streamlining the delivery of
both capital improvements, and either development -ready or
unimproved sites, to the market. Further, it is predicated on the fact
that private investment follows public commitment. To this end, the
approach for redeveloping the SH 35 Corridor involves public
participation in two arenas -- the Study Area as a whole and distinct
projects with an opportunity to realize near-term investment. The
projects may involve a single site or potential assemblage, and they
may be site or area -specific, or have numerous applications.
Presented in the discussion below are several components of an
approach to improving the framework of the Corridor environment,
followed by customized approaches (using the same components)
for advancing the individual project concepts. This is followed by a
description of barriers, or obstacles that could threaten efforts to
improve the Corridor and attract investment, along with a series of
actions to either eliminate or mitigate these challenges.
Corridor -Wide
Development Lead
Experience has shown that communities with a competitive
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advantage, minimize risk through a range of methods including:
funding or installing shared infrastructure, guaranteeing swift permit
reviews, and ensuring political and community support. If possible,
they provide pre -entitled facility "shells" (designs) and flexible
interpretation of existing regulations, guidelines and standards.
Through this approach, they are better able to both capture a larger
share of new investment, as well as expedite its timing.
Further, the approach here assumes PEDC, together with the City,
will act as the master developer of improvements in the Study
Area, and as such will lead the financing and contraction of off-
site infrastructure and enhancements, as well as assist with select
on- site improvements, particularly those completed in an effort
to better position key parcels for investment and expedite
building construction.
As the City's lead agency for industry attraction, PEDC will provide
oversight and act as the lead on development requests, be the
principal provider of "gap" financing (for meritorious projects),
and use its resources to fund infrastructure and utility
improvements; while the City will lead enforcement of
regulations.
Capital Improvements
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
In addition to installation of infrastructure and utilities,
connections to the region's trail system, enhanced landscaping,
and roadway improvements; this Redevelopment Strategy also
recommends that PEDC consider assisting with select on-site
investments, in support of the catalyst concepts. Recognizing
that the introduction of these
PEAR.,
ECONON!C C1Vf IO A TN' CO1 OAAK N
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
elements, while necessary, could command additional resources for
their care and maintenance, this Strategy recommends that in a
later phase of the Corridor's redevelopment, various funding
mechanisms, including improvement districts, be considered.
Phasing Plan
Phasing improvements within a targeted geography serves to
address a number of development challenges among them --
ensuring the availability of development -ready sites during active
real estate cycles; and, managing the pace of development so that
the ability to repay debt is maintained. Sustaining a long-term
program of capital improvements in the Corridor will be imperative
should the community elect to solicit either matching state or
federal economic development dollars, or incremental tax dollars
from participating entities. An on-going schedule of improvements
will also more effectively leverage public resources, and increase
the potential for sustained public and private support as progress
will be visible.
Property Assemblage, Positioning and Disposition Strategy
Whereas most community -initiated redevelopment initiatives take
several years to implement, property acquisition is an ongoing
process among private, public, non-profit and combinations of
these groups. In addition, the more activity there is in the market,
the higher the asking prices, which can have the consequence of
creating an even larger gap in a projects economic feasibility.
PEARLAND
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Therefore, as the entity with the largest and longest -term interest in
the area, either the municipality or their agent (in this case PEDC),
should consider early acquisitions a priority, particularly given the
numerous advantages for the private sector when acquiring
property from public and non-profit entities, among them -- lower
carrying costs, less uncertainty regarding entitlements, and, the
potential for monetary incentives. Further, the methods and terms
of these agreements can be quite flexible. Properties can be either
sold or leased, at or below market rate levels, and, trades and
contributions can be considered (assuming no legal restrictions). In
addition, community interests, long-term goals, and outstanding
obligations have the potential to be addressed, and possibly funded
in conjunction with new projects.
Decisions by the development entity (directly or indirectly)
regarding these options should consider: the capital value of
individual parcel sales compared to long-term leases, near- and
long-term project objectives, policies and practices of the lead
entity; and, desired level and timing of the public sector's return on
investment.
Financial Resources and Incentives
Financing mechanisms used to fund improvements in the Corridor
should include a range of resources, used individually and in
different combinations. Possible sources include: grant and bond
revenues, low or no interest loans, future district revenues, existing
economic development program dollars, and if available, municipal
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
improvement funds. Additional sources could include: bank, state
and federal matching funds, municipal resources, private fees and
incremental tax dollars. Capital improvements, delivered by the
public sector, that make an area attractive for development and
stabilize the investment climate, should be considered an economic
contribution with monetary value, whereas they have the potential
to close a financial gap. Matching economic development incentives
to direct investments in the physical environment, and indirect
contributions to the fiscal concerns, are frequently the most
successful approach.
Organizational Oversight
The organizational entity that assumes responsibility for the
revitalization effort (PEDC) will be the one to: maintain
development oversight; manage and market properties, either
together with or on behalf of property owners; and, fund, finance
and negotiate development agreements and leases among publicly -
owned properties, and in public spaces. Additional support should
be provided by representative governments, advocacy entities and
regional economic development organizations.
Marketing and Promotion
A carefully designed and consistently administered marketing
program should be an early actionable item. Individuals and
organizations that support and promote investment, along with
local officials and business associations, need to coordinate their
PEARLA D
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marketing efforts. Ideally, the City and PEDC, will establish common
goals and objectives, along with consistent policies, and whenever
possible, share and leverage resources. When private interests
request assistance with marketing their properties to developers or
other users (either on their behalf or in partnership), various
approaches should be considered including: issuing developer
requests, retaining brokers, and attaching these parcels to other
community -wide efforts to attract business and industry to the local
market.
Regulations
The experience of many, if not most, communities that have
advanced similar redevelopment initiatives has shown that while a
higher standard of development must be established for the
targeted area, they should be appropriate for the uses desired, and
reflect intended outcomes. In addition, if during the early phases of
the redevelopment project, these standards have a financial impact
that renders a desirable project infeasible, the lead entity should
consider providing resources to fill the economic gap. During later
phases of the project, it is highly likely that market conditions will
have reached a state of equilibrium wherein project revenues
should be sufficient to cover project costs. Regardless of what
entity prepares the development standards, they should be
enforced by the City. While it may seem counter-productive to
require heightened levels of improvements in an area where
conditions are such that project and site development costs alone
could render a project infeasible, they are essential as businesses
SH 35 Corridor Redevelopment Strategy —
will require that their investment be protected, and these
assurances can only be offered when there is consistency in the
regulating process. Since "time is money," the systems by which
standards and regulations are enforced need to be as efficient and
cost-effective as possible. Pearland's current process appears to be
both efficient and cost effective, and therefore should be promoted
as an economic incentive for businesses and industries developing
in the Corridor and community at -large.
Catalyst Projects (Concepts)
As explained in the previous section, catalyst projects are those with
the potential to stimulate private investment, stabilize the business
environment, prove -up market support for untested products, and
establish desired levels of quality and character. What follows are a
series of recommendations regarding an approach to advancing the
catalyst project concepts identified for the SH 35 Corridor. As stated
earlier, each approach (were relevant) involves similar elements to
those presented above related to framework improvements in the
Corridor.
Catalyst No. 1 - Northern Gateway and Corridor Improvements
Purpose
Offer a business location for office and industrial users seeking a
high quality setting offering supportive infrastructure and amenities
and access to points north and south of Pearland and Houston
Metropolitan Area.
Pearland, Texas
PEARLAND
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Development Strategy
PEDC and City complete the following priority capital projects in the
northern segment of the Corridor -- gateway enhancements,
wayfinding (signage), and softscapes where hardscapes currently
exist so that individual parcels appear to be part of a consistently
designed and maintained environment; natural "screens" adjacent
to the right-of-way so that the area's visual appearance is
improved; design pavers and enhanced landscaping at intersections
and other significant nodes where private investment is eminent so
that public investment is leveraged; and, connections to local and
regional trail systems so that employees can arrive via multiple
forms of mobility. In its southern segment, encourage TxDOT to
continue its roadway improvement program completed in the
northern portion during 2014. Following TxDOT, or in concert with
them, duplicate the improvements identified above in this portion
of the Corridor.
Phasing and Timing
Assuming that private investment follows public commitment,
complete improvements within the following categories in the order
presented or as dollars are available for specific project components
Phase No. 1- northern "gateway" and "screening" improvements
Phase No. 2 - intersection and corridor improvements in locations
that most effectively leverage private investment
Phase No. 3 - aesthetics and amenities including trail connections,
bike paths, signage, landscaping
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Property Assemblage, Positioning and Disposition
Educate property owners in the Corridor about the vision for an
improved physical environment and discuss options for PEDC to
proactively locate, install, and maintain enhanced landscaping and
other public spaces -- if property owners are willing to dedicate an
easement to either PEDC or the City, transfer ownership and / or
accept a variance where current easements exist -- where rights-of-
way bifurcate multiple jurisdictions, solicit public entity interest in
participating in a cooperative agreement and / or being part of an
overlay district that solidifies anticipated improvement levels and
their location.
Financial Resources and Incentives
Access the viability of existing and potential resources (capital
reserves, economic development), including creation of a tax
increment district; pursuit of matching public and private dollars;
and, support from various advocacy entities to assist with financing
and supporting improvements.
Catalyst No. 2 - Business Park North
Purpose
"Ready" or position properties (both private and public) for
investment by completing due diligence research efforts on behalf
of private sector property owners by identifying and eliminating
barriers to investment, and streamlining the timeframe between
site acquisition and / or completion of vertical improvements.
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Development Strategy
Establish a policy whereby PEDC and the City participate with
property owners / developers in funding the construction of
infrastructure improvements in an effort to position properties for
near-term investment, acknowledging that eligible parcels will
meet specified criteria such as -- vacant for an extended period of
time, presenting potential for job creation (primary), ability to
advance key economic development goals, and others.
Phasing and Timing
The timing of improvements within private properties will be
dictated by several factors (some outside PEDC's control), among
them:
• interests and resources of private property owners
• resources of PEDC and other advocacy entities who may
participate in funding improvements (proactive efforts)
• number and condition of available properties
• number of meritorious parcels (see criteria) who request
assistance (reactive efforts)
Proactive efforts - priority properties for targeted investment
(either publicly- or privately -held) will have the fewest
obstacles (barriers) to investment and be in the most strategic
locations based on meritorious measures such as:
• at or near an intersection
• uninhibited access to the Corridor
• visibility from either a primary or secondary roadway
• adequate in size and shape to accommodate a marketable
improvement
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Reactive efforts - timing will be dictated by requests for
assistance by property owners with strategically -located
properties and a meritorious development concept
Property Assemblage, Positioning and Disposition
PEDC will consider the acquisition of private properties made
available by existing owners in an effort to entitle (if necessary),
improve and position (if deemed feasible), and sell (dispose of)to
an individual or entity willing to advance the vision and objectives
defined herein -- priority properties should include those within the
identified catalyst areas and other locations where the intended
investment program is inconsistent with and will compromise the
vision.
Financial Resources and Incentives
Use existing resources of PEDC and the City to complete capital
improvements, including any capital reserves or economic
development funds.
Catalyst No. 3 - 3a. Restaurant and Entertainment Destination, 3b.
Main Street Urban Design
Purpose
Establish a destination for residents and visitors with commercial
venues unique to the area and its "gritty character" and compatible
with existing uses that correspondingly provide an environment to
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incubate local businesses and grow dining and shopping offerings
in the Old Townsite District.
Development Strategy
Restaurant and Entertainment Destination
Solicit existing property owners regarding their interest in "hosting"
the identified catalyst concept (open-air food court for food trucks
or temporary structures for multiple vendors) to test the market's
interest before building more permanent structures -- owners will
have option to lease or sell property, participate in financing
improvements, and share in financial return; if interested in leasing
or selling property to a developer or operator, PEDC will issue a
developer / operator request and facilitate negotiations -- if no
viable responses are received, PEDC should consider property
acquisition, construction of temporary improvements,
identification of private operators, and management of the space.
Main Street Urban Design
Complement this new venue and existing uses with supportive
pedestrian and streetscape improvements, and urban design
elements that balance vehicular and non -vehicular movement and
provide a "downtown" experience. Update policies and regulations
to require new, retrofitted and altered buildings bring their building
edge to the street and relocate onsite parking to the back of lots.
vertical improvements (see Development Strategy).
subsequently constructing or participating in the construction of
selling a viable site or sites to an operator or operators, and
potential developers, PEDC should consider acquiring and leasing or
If no interest is expressed by either existing property owners or
Property Assemblage, Positioning and Disposition
project featuring cottage homes, internal gardens, venues for
College (ACC) campus as a host for a demonstration housing
investment and reinvestment. Use the former Alvin Community
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transitioning to permanent structures during phase two
existing and future centers of activity, and catalyzing property
balancing vehicular and non -vehicular movement, connecting
temporary structures completed during first phase
the OId Townsite District as a destination for residents and visitors,
Introduce pedestrian and streetscape improvements which solidify
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Catalyst No. 4 - 4a. OId Town Esplanade, 4b. New Community on
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court zoning and / or commercial kitchen incubator designation)
infrastructure, and fill economic "gaps" resulting from associated
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resources (TIRZ, special district) to fund improvements and
required onsite and offsite improvements and funding sources
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determine roles and responsibilities of each relative to
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the existing owner or PEDC) -- complete the following actions in the
and offsite, following selection of a final master developer forthe
Upon identification of a preferred developer or operator (including
PEDC participate in capitalizing select improvements, both onsite
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Development Strategy
Old Townsite Esplanade
PEDC and the City invest in priority capital projects including a
pedestrian esplanade that will serve as a destination unto itself while
also connecting the restaurant and entertainment destination (see
Catalyst No. 3) project to other improvements and existing
neighborhoods in the District, along with existing destinations
(Killens Barbeque) and future neighborhoods around its perimeter.
New Community
Investigate alternative approaches to improve or solicit developers
to improve the ACC property as a multi -use neighborhood with a mix
of residential product types currently untested in the market,
potentially including live -work spaces, along with supportive
commercial and community spaces.
Phasing and Timing
Approach the owners and / or representatives of the former Alvin
Community College property regarding their interest in partnering to
solicit the interest of potential master developers -- PEDC will issue
the request (for qualifications) and partner with the district
(optional) to review submittals , select the developer, and negotiate
the sale; if the district is not interested in partnering to pursue a
developer, PEDC consider acquiring the properties that comprise the
campus, and solicit developer interest independently of the district.
PEARL AND.
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Upon identification of a preferred developer or sale of the campus to
PEDC -- complete the following actions in the order presented --
• determine roles and responsibilities of each relative to
required onsite and offsite improvements and funding sources
including environmental remediation
• obtain regulatory approvals for intended uses including --
higher density single family detached housing units, live -work
units for artists, community center, and commercial spaces; as
well as, building retrofits (existing theater and historically -
significant buildings)
• identify and complete necessary offsite improvements
including the esplanade and other improvements intended to
accommodate pedestrians and bicycles and connect them to
existing uses and activity centers and adjacent neighborhoods
along East Jasmine Street and South Grand Boulevard and on-
site environmental remediation
• amend the existing Old Townsite District regulations to allow
for desired uses in a format consistent with select neo-
traditional principles related to setbacks and site lines, and
connections to open and public spaces
• depending on investment and return expectations, and terms of
financing -- encourage master development of the properties by
a single entity, and subsequent sale of individual building pads
to multiple builders or developers who will dictate the number
and timing of project phases
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Property Assemblage, Positioning and Disposition
If ACC is not interested in partnering with PEDC to solicit developer
interest consistent with the concept vision, PEDC consideracquiring
the properties that comprise the campus, independently solicit
developer interest, and complete the subsequent action steps
described above.
Financial Resources and Incentives
PEDC participate in capitalizing select improvements, both onsite
and offsite, PEDC participate with selected developers of catalyst
projects in various ways and using different mechanisms, given:
available resources (amount and type); desired outcomes;
experience of development partner; and, consistency of
development program with stated goals.
Use existing economic development dollars and / or future dollars
dedicated to advancing these catalyst concepts; and
potential sources such as (incremental revenue (TIRZ), otherspecial
district funds, grants, low interest loans to fund improvements and
infrastructure, and fill economic "gaps" resulting from associated
costs (land acquisition); and, request support from various advocacy
entities to assist with programming, particularly, public and art
spaces (if any)
Catalyst No. 5 - Business Park South
( PEARLA D
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Purpose
To compliment the high quality business environment in the northern
segment of the Corridor, introduce appropriate improvements for
business and industry seeking a highly amenitized environment with
expansion opportunities and proximity to regional north -south
transportation corridors, and points south in the Houston
Metropolitan Area.
Development Strategy
(Similar to Catalyst No. 2 above) PEDC and the City participate with
property owners in funding, or proactively financing and completing
the construction of infrastructure improvements including those in
drainage ways, and utility and infrastructure relocations, all in an
effort to enhance their marketability, expedite the timing of private
improvements, and ensure desired quality levels. As mentioned
above, encourage TxDOT continue the next phase of roadway
enhancements, completed in the northern segment in 2014.
Phasing and Timing
Phase capital improvements giving the highest priority to those that
establish the southern segment of the Corridor as a cohesive
employment center, mitigate negative impacts (visual and physical),
and catalyze desired private investment; timing within private
properties will be dictated by several factors (some outside PEDC's
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
control) including the resources of private property owners and PEDC
and location and condition of available meritorious properties.
Property Assemblage, Positioning and Disposition
PEDC existing property owners in the Corridor about the vision for an
improved physical environment and creation of a business park
setting, and -- with willing owners, partner to secure entitlements,
finance and construct infrastructure improvements, and market
parcels to potential users; with unwilling owners, consider
acquisition of available properties and complete the same actions,
yet independent of the original owner; priority properties should
include those where the intended investment program is
inconsistent with and will compromise the vision.
Financial Resources and Incentives
Use existing resources of PEDC and the City to complete capital
improvements, including any capital reserves or economic
development funds; and, establish new funding mechanisms
including creation of a tax increment district.
Actions
The national trend of stagnating and declining municipal corridors is
evident not just in Pearland and the Houston Metro Area, but
throughout the U.S. Facing increasing competition from locations in
revitalizing city centers and downtowns, along with locations on the
fringe of communities that are less expensive to develop and which
present fewer constraints, properties in these locations are at risk of
decay and a corresponding decline in value. A local example was the
relocation of existing retailers, and preference of new retailers, for
locations along SH 288 and high profile Pearland Parkway. In order to
address this trend, Pearland and other municipalities facing similar
circumstances, need to first acknowledge the challenges inherent in
these types of geographies, and then develop context- appropriate
regulations and incentives to overcome them.
As explained above, in addition to those elements of the strategy for
redeveloping the SH 35 Corridor presented above, is this final
component which includes a discussion of barriers to development,
discovered within the Study Area, followed by a series of actions, or
efforts, designed to eliminate these obstacles and attract desired
investment. While the barriers that prevent or delay development in
physically constrained environments such as the SH 35 Study Area
can be numerous, and sometimes difficult to identify, they almost
always fall into one of the following six categories - market, physical,
financial, regulatory, political and organizational. For this reason, the
discussion that follows is organized into these same groups or
categories. Each one is first defined, and then followed by local
examples. The reader will notice that some are site- or area- specific,
while others have the potential to impact parcels throughout the
Corridor. Correspondingly, the actions identified to mitigate their
impact are both site- or area -specific, and non- specific. Site-specific
actions include a reference to the location where a certain issue or
constraint will be resolved.
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
Barriers
Market Barriers
Two of the most significant, yet least known challenges to
community -led redevelopment initiatives are, a lack of market
information and inaccurate market information (quantitative and
qualitative). Heightened access to multiple sources of information,
both online and in print, have left economic development
professionals with both more informed, and misinformed,
prospects. While most of the available data is accurate, some is not,
and still other information published without appropriate context,
can lead to misconceptions of a market's potential. An important
first step in efforts such as this one is to discern fact from fiction.
Misconceptions can be unforgiving and difficult to reverse,
especially among developers who link this information to
unfavorable policy decisions. Their perceptions, in particular, can
lead to self-fulfilling prophecies about the potential of a community
to become something else. With adoption of this SH 35 Corridor
Redevelopment Strategy, it must be a "new day" in the minds of all
advocates and stakeholders in the Study Area and community. PEDC
and the City cannot wait for investors to discover development
opportunities in the Study Area, nor leave them to interpret generic
information that may, or may not, be accurate. Information
generated during this planning process should be shared and used
to develop marketing and promotional materials which tell the
area's "investment story." Presented here is a representative list of
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market challenges or barriers, impacting investment decisions in the
SH 35 Corridor.
M1. Proximity of incompatible land uses to parcels in the35
Corridor, specifically encroachment of residential
developments on industrial businesses resulting from
approved property rezonings
M2. Fairly homogenous mix of uses and businesses in theOld
Townsite District, and too few to serve as a "destination" or
district that consumers residing outside of Pearland's
municipal boundaries would visit
M3. In addition to little deviation among residential products
types approved for development in the local market (see R6.
Below), few home builders with either experience or interest
in offering these types of products in the Pearland market
M4. Significant number of vacant and under-utilized parcelsthat
are too small to be improved according to existing
regulations, most of which are located in the Old Townsite
District, without being part of a larger assemblage that often
requires a process that can be time-consuming and costly
M5. Business environment that lacks "market identity,"something
generally reserved for regionally -recognized business and
industrial parks with consistent infrastructure improvements,
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
and properties that are fairly consistently promoted and
maintained
M6. Presence of automobile dealerships which pose an inefficient
use of the land in the Corridor, and are inconsistent with the
stated vision for a quality business and industrial park
environment, and which
Physical Barriers
Physical improvements, public or private, roadway or building, are all
signs that a community is moving forward and making progress. Since
one of the primary obstacles to development in established areas is
the conditions and capacity of its existing infrastructure, investment
activity in these locations tends to lag behind those in other parts of
the community. Inadequate infrastructure has its biggest impact on
the economic feasibility of a project since it can be harder for elected
officials to justify expenditures (even incentives) to repair or expand
existing infrastructure, rather than build new infrastructure. Despite
numerous fiscal analyses that have shown a higher public sector
return on investment from participation in redevelopment than new
development projects, as well as, a more significant impact on
adjacent property values, few communities place promoting and
completing projects in these locations at the top of their priority
initiatives list.
The most established areas of communities usually include their
downtown, and commercial and industrial corridors, all located in
the interior of communities, rather than along their edges.
Structures within their boundaries are also often among the
community's older building stock, and generally designed with the
automobile in mind. Given the highly prescribed format of most real
estate products, redevelopment solutions within these areas often
necessitate the collaborative input of multiple disciplines so that
design solutions are comprehensive and relevant. Finally, designing
improvements from the perspective of a single professional
(architect, land planner, engineer) may not effectively reflect
lifestyle preferences and needs that can represent untapped niches.
Presented here is a representative list of physical challenges or
barriers, impacting investment decisions in the SH 35 Corridor.
Physical
P1.
Balancing the access challenges created by roadway medians
(in the Corridor's northern segment), with the necessity for
safety islands given the width of the highway
P2. Location of the Burlington Northern - Santa Fe (BNSF) Railroad
tracks, and their proximity to parcels in the central segments of
the Corridor in the vicinity of the Old Townsite District, and
associated impacts such as noise, smell, and dust, collectively
limiting the viability of certain uses and product types,
especially those with outdoor seating spaces such as
restaurants
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
P3. Numerous "remnant parcels" or those lacking sufficient
utility, primarily within the Old Townsite District, which lack
an adequate size and shape to be improved under existing
regulations without being part of a larger land assemblage,
most of which are located adjacent to the BNSF line and
adjacent rail corridor easement
P4. Available inventory of parking facilities within the central
segments of the Corridor, particularly in the vicinity of the Old
Townsite District, that is currently limited and will continue to
be stretched as properties continue to develop and redevelop
P5. Presence of infrastructure lines and related easements,
particularly in the northern segment of the Corridor, which
may require costly intervention such as their expansion,
relocation, or vacation
P6. Few, if any, physical accommodations for non -vehicular
movement (pedestrian or bicycle) and connections to or
between properties, including inadequate shoulder widths (to
support bicycle travel) in its northern segment whereTxDOT
recently completed the first phase of roadway enhancements
in the Corridor
P7. Presence of overhead utility lines and associated easements
which can provide a visual blight, and limit the total
developable area of certain properties
P8. Private improvements that are visible from the roadway, (site
and building) with significant levels of deferred maintenance,
which collectively promote a negative perception of the
Corridor, and correspondingly suppress property values
P9. Presence of the Hastings Oil and Gas Field located in the
southern most segment of the Corridor, which maintains
numerous active and inactive wells and collection lines that
transport crude oil, natural gas and various petrochemical
products and that by their presence limits the development
capacity of some parcels
P10. Pipelines in other locations that traverse properties in the
Corridor's southern segments in the vicinity of Dixie Farm
Road, and northern segments near Clear Creek and McHard
Road, which can also influence the type, location and level of
development that occurs either onsite or adjacent to
impacted parcels
P.11 While also potential amenities, on-site detention facilities,
drainageways, and their tributaries; along with associated
floodplains, such as Clear Creek located south of Beltway 8,
Hickory Slough south of Clear Creek, and Mary's Creek south of
the Old Townsite District; all of which bisect portions of the
Corridor and, like oil and gas transport and collection lines, can
limit the development capacity of some parcels, while also
increasing the site improvement costs of others
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SH 35 Corridor Redevelopment Strategy — Pearland, Texas
F5. Negative perception of investment climate among potential
developers and facility owners and / or operators
Regulatory Barriers
Experience in other communities has also shown that
redevelopment of corridors and similar geographies within a
community will best succeed if growth management programs
reward efficient development patterns. When growth is allowed to
occur in a land extensive, inefficient way that effectively subsidizes
lower densities, redevelopment efforts operate at a competitive
disadvantage. Given the pattern of development in the city over the
last decade, SH 35, along with its other established corridors, will
continue to be susceptible to fluctuations in the market, and their
perceived contribution to the city's fiscal balance sheet.
Ideally, redevelopment plans and programs are administered by
specialists who understand the unique challenges projects in these
environments face, and supported by policy and regulating
documents that reflect this awareness. It is also preferable that local
leaders establish both new development and redevelopment
priorities that can be advanced in parallel, rather than in competition
with each other. Presented here is a representative list of regulatory
challenges or barriers, impacting investment decisions in the SH 35
Corridor.
R1. Inability to construct gateway improvements for the 35
Corridor in a location with maximum visibility, particularly
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I ONic tmtt)PMH C POAlC1uN
adjacent to the southern edge of Beltway 8, since Pearland's
municipal boundary begins south of Clear Creek
R2. Variations in the location of building improvements, and
specifically their facades, in the Old Townsite District, creating
an inconsistent pattern of development and environment that
is Tess conducive for pedestrian movement
R3. Few opportunities for shared parking among businesses
because of the location of existing facilities and current use
and product mix
R4. Local limitations on the sale of alcohol, especially in an open
air venue similar to that envisioned in one of the catalyst
concepts proposed in the Old Townsite District
R5. Existing regulations that do not allow for mobile food vendors
such as those envisioned in the catalyst concept referenced
above in R4 and proposed in the Old Townsite District
R6. Limited diversity in residential products that have been built
in the local market during this most recent expansion, and a
lack of understanding among community leaders regarding
market support and positive impacts
R7. Presence of historically -significant (not designated at either the
state or federal level) buildings on the former ACC campus in
the Old Townsite District, that while potentially an amenity,
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
if required to be restored, could increase costs, and limit the
location and type of certain uses
R8. Existing zoning in the Study Area that is inconsistent with the
vision and objectives for a revitalized State Highway 35
Corridor as expressed herein (see specific recommendations in
the Appendix regarding amendments to existing regulating
resources)
R9. Existing regulations, including design standards that while
essential for the success of this redevelopment strategy, do
not always support the desired land use or product type (see
specific recommendations in the Appendix regarding
amendments to existing regulating resources)
R10. Presence of environmental contaminants within or impacting
properties within the Corridor that prior to development or
redevelopment, will require costing remediation
Political Barriers
As acknowledged above, the local government has the largest and
longest -term interest and responsibility in a community's economic
sustainability; therefore, the City of Pearland needs to have avisible
presence and provide ongoing and sustained public support for
projects which meet the community's economic development
objectives. Together with PEDC, the City needs to provide
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ECONOMIC CAMLONRENi OOAXQRA ION
leadership and participate in advancing economically -challenged, yet
desirable projects, by any means possible. Not only do they have the
legal responsibility to address many of the implementation
components of a redevelopment plan, they are also the logical
conduit to local, regional, state and federal funding sources. When
used strategically, these funds and their other resources can be used
to leverage a heightened amount of early investment, and also
catalyze a sustained level of ongoing investment. Presented here is a
representative list of political challenges or barriers, impacting
investment decisions in the SH 35 Corridor.
Po. Limited understanding of the contribution improvements and
businesses in the 35 Corridor make to the City's balance sheet,
given the comparatively higher value of development that has
occurred along State Highway 288 over the last decade
Po. Limited municipal resources to improve infrastructure and
attract new businesses, particularly following the onset of the
Great Recession in 2008 and recent adverse impacts to
businesses in energy-related industries, thereby constraining
public funds for only its highest priority projects which are
often its highest value projects
Po. Much of Pearland's growth has occurred over the past few
decades, making a significant amount of its infrastructure fairly
new and limiting the City's experience with multi -phase
redevelopment initiatives that require ongoing public support,
SH 35 Corridor Redevelopment Strategy — Pearland, Texas
and rarely realize a return on their investment within theearly
years of their inception (often beyond the term of many elected
officials)
Organizational Barriers
Organizational barriers can present challenges to redevelopment
when there are either too many, or too few, entities charged or
assuming specific roles in the process. When there are multiple
entities - appointed and created, funded and unfunded, with and
without specific controls and powers - sharing concern for the same
jurisdiction or geography, some efforts end up duplicated, while
others go overlooked. In addition, there can be disagreements
among the various groups with regard to how specific issues are
addressed, and resources expended. Conversely, when there are too
few entities who can serve as advocates for redevelopment
initiatives and / or assist with the actions required to address the
multiplicity of challenges; revitalization efforts can fail before they
start. An organizational investigation is an important component of
any redevelopment planning effort, and clarification of each entity's
roles and responsibilities, a vital part of its approach. Every
participant in the implementation process needs to understand the
roles of the others, and their progress in advancing identified actions
needs to be tracked and coordinated by a single entity. In this
instance, PEDC as the lead for the SH 35 redevelopment initiative,
will provide this type of coordination. Presented here are the
organizational challenges or barriers, impacting investment decisions
in the SH 35 Corridor.
/EARt.. AN 0
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01. Increasing demand on limited facilities to accommodate the
demands of a growing and diversifying resident base, for
example buildings to host art and cultural programs, exhibits
and presentations
02. Limited number of professionals (economic development /
redevelopment specialists) to complete the initiatives
identified herein
Actions (to overcome these barriers)
1. Complete accommodations for pedestrian and bicycle trails
along and within the SH 35 Corridor as identified in the
Pearland Parks and Recreation Master Plan, adopted by the
Pearland City Council in November 2015.
2. PEDC and City representatives, work with stakeholders in the
Corridor to identify a preferred location for a future transit
station in the event a commuter rail line is constructed
connecting travelers along Interstate 45 and the larger
Houston Metro Area.
3. Complete existing streets in the Old Townsite District with
sidewalks appropriately sized to accommodate pedestrians and
bicycle lanes where possible. Use available economic
development resources to complete near-term improvements
on priority streets including Jasmine and Grand Boulevard (see
supporting action below) and City Capital Improvement Plan
(CIP) dollars for longer-term improvements such as those
described in this action, on secondary streets.