ITN_GRM260862_Development_of_Catalytic_Opportunity_Site_Lot_5_Downtown_Ocala__Exhibit_J__Downtown_Master_Plan.pdf

ACKNOWLEDGEMENTS

CITY COUNCIL

Reuben Kent Guinn, Council President Mary S. Rich, Council Member l'vGchael S. Amsden, Council Member Kyle Kay, Council Member Daniel Owen, Council Member

MAYOR

Gerald K. Ergle

PROJECT TEAM

Reuben Kent Guinn, City Council President Susan M. l'vGller, Ciry Manager Paul Nugent, Assistant Ciry Manager Tye Chighizola, Planning Director Bill Patten, Director, Communiry Programs Department Bud Scharf, Manager, Communiry Development Mark Debolt, Downtown Business Alliance

STAFF REVIEW

Marc Mondell, Neighborhood Planner Jim Simon, Supervisor, Housing & Grants

A special recognition to the Ocala/Marion County Economic Development Corporation, the Ocala/Marion County Chamber of Commerce and the Downtown Development Commission for their contributions in developing the Downtown Master Plan. A special thanks to the Downtown Business Alliance for supporting Workshop # 1 on the Downtown Square.

CITY OF OCALA DOWNTOWN MASTER PLAN

CONSUL TANT TEAM

MOORE IACOFANO GOLTSMAN (MIG), INC.

Planning and Design, Prime Consultant

Daniel Iacofano, P1incipal-In-Charge Christopher Beynon, Pr<!)ect Manager Paul Tuttle, Urban Design Directo1·

Desiree Sideroff, Pr<!)ect Associate Joy Strand, Prqject Associate Todd Coleman, Urban Designer Eric Phillips, Prqject Associate Blair Williamson, Prqject Associate Communications and Marketing Services Staff

ECONOMICS RESEARCH ASSOCIATES

Economic Ana!Jsis

Tom Moriarty, Vice President Tom Lavash, Senior Associate & Prqject Manager Shawn I<imberly, Associate Robert Wolcheski, Ana!Jst Amy Barrett, Ana!Jst

MARGARET MULLEN

Downtown Development Specialist

C ITY OF OCALA DOWNTOWN MASTER PLAN 2

TABLE OF CONTENTS

CHAPTER I: INTRODUCTION ............ . ... . ............... 1-7

CHAPTER II: ECONOMIC ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-19

CHAPTER Ill: STRATEGY FOR DOWNTOWN

REVITALIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-29

CHAPTER IV: IMPLEMENTATION .......... . ................... 4-87

APPENDICES .......... . ............. . ... . ............... 5- 10 I

C I TY OF OCALA DOWN TOWN M AST ER PL A N 3

LIST OF FIGURES

Figure 1.1: Marion County Context

Figure 1.2: Ocala Context

Figure 2.1: Downtown Office Demand

Figure 2.2: Downtown Housing Demand

Figure 2.3: Downtown Retail Demand

Figure 3.1: Downtown Ocala Strategy Framework

Figure 3.2: Strategy Diagram ..

Figure 3.3: Downtown Perspective Sketch

Figure 3.4: Downtown Urban Form

Figure 3.5: Pedestrian-Oriented Streetscape

Figure 3.6: Downtown Core Public Space Structure

Figure 3.7: Intersection Improvements along Silver Springs Blvd .

Figure 3.8: Downtown Core Parking Supply ..

Figure 3.9: Downtown Signage and Gateway Feature Locations

Figure 4.1: Phasing Costs

Figure 4.2: Phasing Plan Time Frame

.. 1-8

... 1-9

.2-26

.. 2-26

.. 2-26

.3-31

.3-33

.. 3-35

....... 3-37

... . ... 3-69

. . . . ... 3-73

. .. 3-76

.. 3-79

. .. 3-84

. ...... 4-90

.4-93

Figure 4.3: Phasing Plan .. . .. ... ... .. .. . . ... . ...... . ... . . ..... . . . . . .. . . . .... . ... .. .. .. ... 4-95

LIST OF TABLES

Table 2.1:

Table 2.2:

Table 2.3:

Table 5.1:

Table 5.2:

Table 5.3:

Table 5.4-6:

Table 5.7:

Table 5.8:

Table 5.9:

Table 5.10:

Table 5.11:

Table 5.12:

Table 5.13:

Downtown Housing Demand

Downtown Retail Demand

Downtown Ocala Demand by Land Use 2004-2010 ..

Non-Agricultural Employment Trends & Projections

Office Demand for Marion County and Downtown Ocala - 2010

Housing Demand for Marion County and Downtown Ocala - 2010

.. 2-22

. .. . ... 2-22

... 2-26

. . .5-103

... 5-104

.... . .5-105

Potential Expenditures & Supportable Space from New Downtown Residents & Employees .5-106

Catalytic Opportunity Sites: Financial Analysis . .

Catalytic Opportunity Sites: Assumed City Contributions

Potential Economic Impacts: New Housing

Potential Economic Impacts: Commercial Uses

Stabilized Year Pro Forma for Reuse of the Marion Theater

Parking Inventory

Parking Projections

. . . . 5-109

... . ... . .. . ... . ... . . . ... . .. . . 5-110

. . 5-111

. .5-112

. . .5-113

. . . 5-115

. . . 5-116

4 C I TY OF OCALA DOWNTOWN MASTER PL AN

INTRODUCTION

CHAPTER I I INTRO DU C TIO N

I. INTRODUCTION

Downtown Ocala stands at the cusp of a new era. After decades of neglect brought about by the rapid flight of people, money and resources to the suburbs and unincorporated Marion County, the city center is ready to resume its historic place as the regional center of economic activity, culture, civic identity and dis tinct urban experiences.

The Downtown Ocala Master Plan is the blueprint for achieving this vision. The Master Plan builds on the plans, traditions and collective energy that have boost ed Downtown's vitality to date, while providing a guiding framework and specific, action-oriented implementation steps - all tested by real-world economic analysis

- to attain tangible results.

Specifically, the Ocala Downtown Master Plan is comprised of the following sec tions, which outline the major initiatives for rejuvenating the city center:

• 01apter I - Introduction: The remaining pages in this chapter provide an overview of the regional and city context from demographic, economic, and physical planning perspectives, while highlighting key assets to build upon and challenges to address in Downtown. A summary of the planning process and the Downtown vision developed through the process is also included. In addition, the chapter provides a broad overview of the strategy for Downtown revitalization (which is discussed in greater detail in Chapter

III).

• 01apter II - Economic Analysis: The Downtown Master Plan provides an implementable framework for guiding growth and development in the city center. This chapter includes highlights of the market demand analysis, which identifies the area's major market parameters and constraints. To ensure an implementable plan, the planning strategies and concepts of the Master Plan (covered in Chapter IV) were built off of this base knowledge of what is achievable within the market. The section also includes an overview of the financial analysis conducted on specific catalytic opportunity sites and public improv=ents and programs in the city core.

• 01apter Ill - Strategy for Downtown Revitalization: This chapter outlines the planning and design framework for re-energizing Downtown, including iden tification of primary land uses, catalytic opportunity sites, and supporting strategies for implementation. Diagrams, maps, illustrations and photos in this section help outline the major steps and tools for achieving the Downtown vision.

• 01apter IV - lrrplerrentation: The final chapter provides a framework for implementing the Master Plan. The framework includes recommendations for an organizational structure to guide implementation, a phasing plan out lining timelines, costs and potential funding sources, and a list of next steps to ensure that implementation begins immediately after the Downtown Master Plan is approved.

The Downtown Master Plan pro vides a comprehensive blueprint for redeveloping and rijuvenati.ng the city center over the coming decade.

C I TY OF OCALA DOWN TOWN M AST ER PL A N I - 7

http:rijuvenati.ng

CHAPTER I I INTR O DU C TI O N

y

..., ., .. r- · .• L- " .. -

8 Marion County

C I TY OF I -8

The Ciry of Ocala is centraf!y locat ed in north-central Florida and is within a Jew hours' drive of the mqjor destinations of Jacksonville, Tampa/ St. Petersburg, Orlando and Dqytona Beach.

Figure 1.1 Marion C.Ounty C.Ontext

HISTORY & REGIONAL CONTEXT

Ocala is the county seat and largest city in Marion County, which lies in north central Florida. Designated as the county seat in 1845, Ocala and its economy were initially centered on small and large agricultural production, including the citrus industry. Later phases of growth included the establishment of Ocala as a government and financial center and tourist destination, in addition to its agricul tural functions.

Today, the city and surrounding region are renowned for their historic residential districts, rolling green fields of horse farms, excellent climate, open space pre serves, and numerous outdoor and recreational opportunities. The region's cen tral location to both coasts and other Florida destinations via a strong highway system (including Interstate 75) contributes to the area's attractiveness for resi dents and businesses.

Marion County's population in the year 2000 was approximately 259,000, with a projected population of 303,000 for the year 2010. The city's population in 2000 was approximately 46,000, with a projected population of 50,000 for 2010.

Therefore, Ocala's population share as a percentage of the overall population of the county is projected to decline in the coming years, from 17.7 percent in 2000 to 16.5 in the 2010. This trend is a reflection of continued residential growth of suburban and unincorporated areas over the past several decades, resulting in the location of resources and activity at greater distances from Downtown. Office, commercial and retail development - primarily in the form of shopping malls, strip commercial centers and big-box outlets - has followed the same pattern of suburban-oriented growth, particularly along State Route 200 in southeast Ocala.

Ocala National

Forest

OCALA D OWN TOWN M ASTER PL A N

CHAPTER I I I N TRODUC T IO N

DOWNTOWN & THE CRA

The Community Redevelopment Area (CRA) Plan of 1988 outlines the bound ai:ies and purpose of the CR.A, and provides recommendations for planning the redevelopment of Downtown. It defines the CRA as the 1 OS-block area around Downtown Ocala, centered a few blocks east of the intersection of State Route 40 (Silver Springs Blvd.) and Highway 441 (Pine Ave.) In accordance with the state's Community Redevelopment Act, the City established the CRA in order to conserve, rehabilitate and redevelop the Downtown core in response to deterio rating physical and social conditions. Mechanisms used for stimulating redevel opment within the CRA include tax breaks, incentives and Tax Increment Financing. Many initiatives outlined in the Downtown Master Plan will be imple mented in part through CRA financing tools.

The predominant land uses in the area include office, commercial, retail and light industrial. Government and financial services are primarily located north of Silver Springs Blvd, south of Broadway, and east of Osceola Ave. Residential land uses are minimal or non-existent in most areas of the city center, although vibrant historic housing districts are located to the east and west of Downtown.

The central focus of activity and commerce is the Downtown Square - bordered by Silver Springs Blvd, Broadway, SE Magnolia Ave. and SE First Ave. - and the surrounding blocks (see the Downtown Strategy Diagram, page 39). This his toric core once contained nearly all of the civic and commercial activities for the city. Much of its vitality has been depleted by suburban growth in recent decades; however, over the past several years the district has gained strength as a restaurant, entertainment and specialty retail hub.

Fi re 1.2 Ocala Context

The city center contains a wide range of land uses, including a thriving base of light industrial construction supplies, manufacturing and other services. Each land use t;pe has a specific role and functionality within the framework of the Downtown Master Plan.

--:-1

~-d

CITY OF OCALA DOWNTOWN MASTER PLAN 1-9

CHAPTER I I I NTRODUCTION

The public participation process included communi!_y-wide ivorkshops on the Square and at the Marion Theater, as weU as a speci,al sessi.on with the Ci!J Counal

DOWNTOWN PLANNING PROCESS

In March of 2003, the City of Ocala began a planning process to determine how and where to stimulate development and revitalization in Downtown. With the help of urban planning consultants Moore Iacofano Goltsman (MIG) Inc., eco nomics consultants Economics Research Associates (ERA), and downtown devel opment consultant Margaret Mullen, the City conducted a nine-month process to perform economic and planning research, engage the community, and develop a comprehensive revitalization plan for Downtown Ocala. A Project Team com prised of the city manager, assistant city manager, planning director, elected offi cials and the planning consultants met on a regular basis to develop and fine-tune the revitalization strategies and implementation steps.

The community participation process consisted of two large community work shops (held on May 15 and August 28, 2003) and one special City Council ses sion (held on November 11, 2003). In addition, the Project Team and consult ants held numerous ad hoc meetings with developers, transportation officials, public works staff, Downtown business merchants and others to focus on specif ic issues. During the public workshops and special meetings participants worked together to: (1) identify key assets, opportunities and constraints; (2) develop a shared vision for the future of Downtown Ocala; (3) explore and analyze land use issues, design considerations, and economic costs and feasibility; ( 4) develop and refine strategies to focus redevelopment efforts; and (5) create action steps and mechanisms to ensure that the plan is implemented.

The community workshops and other meetings provided an environment for open dialogue and debate while building consensus for the revitalization plan.

The Downtown Master Plan process spanned a period of nine months and con cluded in January 2004.

I - I 0 C I TY OF OCALA DOWNTOWN MASTER PL AN

http:sessi.on

ASSETS, OPPORTUNITIES & CHALLENGES

In order to help guide future development of the city center in the coming years, it is important to understand the current context of Downtown. During the planning process, community members, public officials and City staff identified several principal assets, opportunities and challenges for Downtown Ocala.

ASSETS & OPPORTUNITIES

Downtown possesses many assets that will be instrumental in shaping its future.

These include:

DOWNTOWN SQUARE

Located at the core of the community since the City's founding, the Downtown Square is the "heart and soul" of Ocala. This historic open space provides a cen tral gathering spot for civic events, a focal point for retail and commercial activi ties around the Square, and a "sense of place" and identity for the community.

CHARMING AND ATTRACTIVE HISTORIC AMENITIES

Downtown Ocala is blessed with numerous historic buildings and architec ture. From the well-preserved Marion Theater to the residential districts that surround the Downtown, these resources help create an environment that is distinctly different from the city's suburbs and the greater region.

REGIONAL EMPLOYMENT CENTER

Downtown Ocala is a strong center for regional employment, including the government, finance, medical and office sectors. It is important to maintain and build off of this base of employment to keep Downtown economically vital and bustling with activity.

RETAIL, COMMERCIAL AND ENTERTAINMENT HUB

Downtown is a hub for retail, commercial and entertainment activity. Specialty shops and restaurants line the streets near the Square, while events such as win tertime ice skating help create a unique, family-oriented environment. These one-of-a-kind retail and entertainment opportunities - distinct from the offerings of suburban retail centers - must be maintained and enhanced to ensure an active, lively city center.

REGIONAL RURAL CHARACTER AND HORSE FARMS

Ocala lies at the heart of some of the most beautiful country in Florida. The surrounding environment - including Ocala National Forest and the area's numerous horse farms - offers attractions and a unique image that Downtown Ocala can capitalize on to draw visitors and commerce.

PHYSICAL OPPORTUNITIES

With its human-scale architecture, rich historic heritage, beautiful open space areas, tree-lined streets and walkable street grid, Downtown's physical environ ment is ideal for growth and rejuvenation. In addition, there are several under-

C I TY OF OCALA DOWN TOWN M AST ER PL A N

CH A p TE f\ I I INTRO DU CTI O N

Ma1!J of Ocala} historic homes are used for bed and breakfasts, retail services, or professional offices.

Downtown is a restaurant and entertainment hub, nith unique ca.fas, restaurants, bars and other establishments that enliven the area.

Tuscawilla Park is an excellent asset for Downtown Ocala and the entire community.

I - I I

CHAPTER I I INTRODUCTION

The active support o/ a wide range of citizens helps to make community events a success.

MaUs, shopping centers and strip commercial development in out!Jing areas are a significant challenge to

Downtown's economic growth.

Long, blank walls are impediments to creating comfortable pedestrian environments.

utilized sites that are ideal for redevelopment and new development. These sites (six of which are outlined in detail in Chapter III) provide opportunities for enhanc=ents to the physical environment that will cultivate a more active urban core and catalyze future development.

DIVERSE, ACTIVE AND ENGAGED COMMUNITY

Perhaps the most important asset for Downtown Ocala is the large number of community members interested in and committed to the success of the city cen ter. Elected officials, business merchants, local artists, historic preservationists, residents, church members - share a keen interest in restoring Downtown as a vibrant, multi-use activity center for the region . The support, enthusiasm and stewardship of these community members will help ensure the implemen tation of this plan and the continued success of Downtown.

CHALLENGES

\JClhile there are many assets and opportunities to capitalize on, the city center faces several key issues and challenges. The Downtown community must under stand and overcome these challenges in order to achieve success in revitalizing the city core:

DEVELOPMENT AT THE URBAN PERIPHERY

Reflecting trends across the country, new development in the suburbs has siphoned resources and activity away from Downtown Ocala over the past sever al decades. Extensive residential development in outlying areas, along with com mercial development along arterial streets such as State Route 200, has created environments and patterns in which people no longer feel the need to go Downtown.

LACK OF A CRITICAL MASS OF AMENITIES AND SERVICES

Due to new development at the urban periphery, Downtown lacks a "critical mass" of stores, services and amenitie s. Without these elements, it is difficult to attract people to the city center on a regular basis, including those who would otherwise want to live Downtown.

LACKLUSTER PEDESTRIAN ENVIRONMENT

\JClhile positive changes have been made in recent years, overall the Downtown pedestrian environment is lackluster. A shortage of retail and entertainment attractions, lack of housing in the Downtown core, building design that inhibits pedestrian comfortability, heavy traffic along arterial streets, insufficient lighting and street furniture, and the absence of strong pedestrian connections (across

Silver Springs Blvd. and to surrounding neighborhood s) contribute to this envi ronment.

I - I 2 C ITY OF OCALA DOWNTOWN MASTER PL AN

CHAPTER I I INTRODUCTION

UNDERUTILIZED SITES

Th e city center contains a large nwnber of parking lots, vacant sites and under utilized properties. Such sites help re-enforce an image that Downtown is inac tive and aesthetically unappealing. Conversely, many of these properties provide opportunities for new development, which will be vital to the area's future suc cess.

PARKING

Parking is a major concern for area residents and local businesses. \Jvhile overall inventories are sufficient, location of and access to Downtown parking must be addressed. There is a need for easily identifiable and accessible parking as well as a division between temporary parking, employee parking, patron parking, short term and long term parking, metered parking, and loading zones.

IMAGE AND PERCEPTION

Although Downtown has taken many positive steps, the image persists with many community members that the city core is unclean, unsafe and unexciting. The image of Downtown - for both local and regional residents and visitors - must be changed to one of a clean, safe, credible and distinct urban center with character and amenities.

ECONOMIC MARKET SHARE

According to City data, the Downtown includes approximately 3,500 jobs - only 8% of the City's overall job base and far below what a healthy downtown would expect to capture of overall regional employment. A typical downtown share of regional employment should range from a minimwn of 15% to as much as 30% or more. Therefore, Downtown Ocala is under performing in this area and must look to gain greater market share of new Ocala job creation opportunities.

Downtown's numerous parking lots contribute to an unfriend!J pedestri an environment, but thry are also opportuni!J sites far future develop ment.

Though thry are contributors to the local economy, Downtown's pawn shops add to perceptions that the area is unsafi.

CITY OF OCALA DOWNTOWN MASTER PLAN 1- 13

CHAPTER I I I N T RODU CT ION

THE DOWNTOWN VISION

The vision for Downtown Ocala represents a shared approach to shaping and guiding the future of the city center. The vision is the result o f extensive com munity input, and it is the foundation for the goals, strategies and actions of the Downtown Master Plan.

Partici:pants in the Downtown Master Plan planningprocess described a future in which ...

Downtown Ocala is a mixed-use cultural and activity center that offers a "sense of place," or focal point, for the community and draws upon Ocala's rich history. Residents and visitors are drawn to Downtown for its arts, cultural, and entertainment venues. The mix of uses includes specialty retail stores, restau rants, family entertainment, art galleries, housing, office uses and civic buildings.

An economically healthy mix, the range of uses complements - rather than competes with - the commercial outlets, services and housing types in outly ing areas.

The uses are organized around the Downtown Square, attractive street corridors and other public spaces. This interconnected built and open space environ ment serves as Ocala's community hub - an active, dynamic, social district that contains unique amenities and hosts events and cultural activities for people of all ethnicities, ages, orientations and income levels.

Downtown Ocala is family oriented and pedestrian friendly, encouraging resi dents and visitors to stroll along the storefronts, dine outdoors at a cafe, and relax with friends in the Square or public plaza. The streetscapes and building design reflect Ocala's rich architectural heritage and enhance the pedestrian environment. Walkable streets and alleyways provide strong pedestrian and transit connections within the Downtown core and to surrounding neighbor hoods.

Comprehensive signage and wayfinding programs encourage visitors to come to the city center, enjoy the ambiance, attend a movie or live performance at the Marion Theater and other venues, and explore the nuances of the special urban district. Image and identity initiatives, built on themes such as the region's historic districts and horse farms, help to create a truly unique, innovative and vibrant Downtown for residents and visitors to enjoy long into the future.

I - 14 C I TY OF OCALA DOWNTOWN MASTER PL AN

CH A p TE f\ I I INTRO DU CTI O N

STRATEGY FOR DOWNTOWN REVITALIZATION: A BRIEF OVERVIEW

Building from the vision and background analysis, several key premises and prin cipals form the foundation of the Downtown Master Plan and its revitalization strategies. These points helped to craft the strategic directions of the plan and are covered in detail in the following chapters:

• Understand the existing physical, social and economic context of Ocala and the region;

• Leverage and build upon the community's assets;

• Utilize community input to shape the plan and its strategies;

• Conduct comprehensive economic analysis to ensure that projects and strate gies are implementable in the real world;

• Maintain and enhance primary land uses that are the cornerstone of the dis trict;

• Focus appropriate development - backed by economic feasibility analysis - in key opportunity sites in Downtown;

• Develop supporting strategies to link together and support the primary land uses and opportunity sites;

• Establish an organizational, phasing, and action-oriented framework for implementation; and

• Create a comprehensive, market-tested, realistic plan for revitalization.

C I TY OF OCALA DOWN TOWN M AST ER PL A N 1- 15

I - 16 C I TY OF OCALA DOWNTOWN MASTER PL AN

ECONOMIC

ANALYSIS

CHAPTER I I I ECON O MI C A NALYSIS

II. ECONOMIC ANALYSIS

The primary objectives of the economic analysis for the Downtown Master Plan are to provide a "road map" to guide future investment and redevelopment efforts in the City's Community Redevelopment Area (CRA), and to identify revi talization opportunities for Catalytic Opportunity Sites within the CRA.

The market analysis is an independent assessment of real estate market dynamics as they affect the potential for various land uses, including housing, workplace (e.g., office), supporting services (e.g., convenience and service retail) and destina tional uses (e.g. restaurants and entertainment) in Downtown Ocala. The analysis identifies the depth of potential market support, tests ( on a preliminary basis) the financial feasibility of these uses for each catalytic site, and estimates the potential economic costs and benefits to the City of Ocala.

Specifically, this chapter provides:

• An understanding of the development context and issues facing the creation of market-supportable revitalization strategies for Downtown Ocala;

• Documentation of the competitive position of Downtown Ocala and a test of its economic potential for a variety of land uses;

• Identification of redevelopment opportunities on specific Catalytic

Opportunity Sites; and

• An outline of the conditions necessary to position these specific sites to sup port uses envisioned by both the City and private-sector interests.

MARKET POTENTIAL

The findings of this market analysis suggest that public policy initiatives should focus on reinforcing Downtown's role as the economic engine of Marion County. These initiatives will require clear and focused public policies, incentives and other regulatory mechanisms designed to foster economic devel opment opportunities in the city center. For example, a clear strategy is needed to attract new users and to increase the number of high quality jobs in

Downtown through business recruitment. Program recommendations are high lighted below.

OFFICE

From a regional perspective, future employment and market demand for office space are closely linked. A critical determinant of both future employment and market demand is the degree to which a community or specific site is competi tive. Factors defining this competitive positioning include local and regional access; overall physical characteristics such as highway frontage and visibility;

proximity to economic activity and quality jobs; and business costs such as prop erty taxes.

In general, office uses require access to a qualified labor pool, contemporary floorplates/building configurations, adequate (oftentimes including the provision of extra) parking, nearby convenience and supporting retail and services, and pedestrian-scale amenities.

A kry feature ef the D owntown economic plan includes enhancement of the existing base ef specialty retail shops.

C I TY OF OCALA DOWNTOWN M AST ER PL AN 2- 19

CHAPTER II I ECONOMIC ANALYSIS

Future demand for office uses is suf ficient to support existing buildings while expanding overall square footages in Downtown.

PLANNING TARGET:

120,000 TO 186,000 SQ. FT.

OF OFFICE SPACE

This analysis translated future employment growth into demand for office space (Summary Tables 1 and 2 in Appendix A). If the CRA maintains its "fair share" as a proportion of the City as a whole over time (i.e., the CRA is no more or less competitive as compared to other locations in the City than it is today), employ ment growth in Downtown Ocala could support an additional 120,000 sq. ft. of office space by 2010 based on demand generated by employment growth in Marion County (assuming that the CRA's fair share is held constant at roughly 10%).

The City's planning efforts - commitments to provide financial incentives and fund specific initiatives such as infrastructure improvements - can enhance the overall marketability of Downtown Ocala as a viable employment center. As such, the city center becomes a more desirable location for office tenants and other businesses. This is known as inducing demand.

Under an "induced" demand scenario, the planning team conservatively esti mates that Downtown Ocala's fair share could increase from its current level of

10% to 15%. This would increase demand potentials for office space from approximately 120,000 sq. ft. under a fair share scenario to approximately 186,000

sq. ft. under an induced demand scenario.

Therefore, the planning target for the Downtown Master Plan is a program of

120,000 sq. ft. to 186,000 sq. ft. of office space. Downtown Ocala's economic development policies should focus on retaining key employment "anchors" such as the County Courthouse and judicial system, which serve to draw daily visitors to Downtown and generate spin-off demand for associated employment such as law firms desiring proximity to the Courthouse. The tenant mix is expected to be similar to that which exists in Downtown Ocala today, e.g. professional servic es oriented to the medical, legal, accounting and financial sectors.

These planning targets assume that redevelopment sites offer strong visibility and provide adequate levels of on-site or nearby parking to enhance overall mar ketability.

The program of u ses on the priority sites contains a total of 65,000 sq. ft. of office space focused on the Chamber of Commerce and Library sites. This sug gests ample opportunity for other redevelopment sites located in Downtown

Ocala, such as the Murphy Property, to capture a portion of remaining demand.

In order to make development efforts most effective, the City should initiate a market survey of Downtown office space on an annual or semi-annual basis.

In smaller communities, this is typically undertaken as a joint effort between commercial brokers, the Chamber of Commerce and/ or the downtown business organization, and should be viewed as both a marketing tool and key component of a larger economic development strategy for Downtown . A property database should be created and updated regularly. For each office building, data should be collected on building size (in sq. ft. ); rental rates and lease structure (i.e., net or gross rents); operating and other charges; current vacancy rates; net absorption over the reporting period; availability of parking and other amenities ; and other information considered key to marketing.

2-20 C ITY OF OCALA DOWNTOWN MASTER PLAN

CHAPTER I I I ECONOMIC ANALYSIS

Moreover, the surveys should distinguish between "classes" of office buildings.

In the real estate industry, office buildings are typically ranked according to build ing quality, architecture and design, physical condition, amenities offered, rental rates and tenant types. These categories range from best/highest quality ("Class A") to moderate quality ("Class B") to those buildings that have the lowest rents, with aging, obsolete and/or non-competitive properties ("Class C"). This thor ough understanding of the state of Downtown will help focus business recruit ment and retention efforts as well as employment development strategies.

Developers seek out markets where stabilized vacancy rates of competitive office product are less than 8% to 10%. The results of ongoing market surveys are critical in helping to inform developer decision-making on whether to undertake new construction. This will also determine the extent to which demand identi fied in this market analysis is absorbed among existing, viable buildings with read ily available vacant space and/ or in new construction.

HOUSING

A critical mass of housing in Downtown Ocala is extremely important to the area's revitalization. Housing will strengthen Downtown as a viable destination, create new neighborhoods, foster demand for other uses such as convenience and service retail, and reinforce Downtown as a viable business center with a poten tial supply of labor and consumers with disposable incomes. New housing in the

CRA must successfully compete in the marketplace, and project amenities are critical.

Potential housing demand in the CRA was projected based on several key assumptions, including:

• The provision of high-quality, market-rate housing will reinforce the compet itive position of the priority sites - and Downtown as a whole - in the City's and the region's housing market;

• The establishment of public policy initiatives designed to strengthen

Downtown Ocala's competitive position in Marion County will result in con tinued growth of CBD employment, thus enhancing demand for in-town housing; and

• The provision of public incentives that are critical in funding certain ele ments of redevelopment of each priority site, such as infrastructure and parking.

The housing model defines potential demand according to fair share (i.e., the

CRA today represents only 1.8% of the City's total housing stock), a moderate scenario, and an induced scenario (i.e., highest market capture). The moderate and induced estimates assume that redevelopment of the CRA succeeds in strengthening Downtown's role as a viable employment center and in enhancing Downtown's attractiveness, thereby increasing marketability for new housing.

Successful redevelopment of the CRA could result in doubling (to 4%) or tripling (to 6%) the capture of new housing from future population growth (the detailed housing demand analysis is available in Table 5.3 of Appendix A) .

CITY OF OCALA DOWNTOWN MASTER PLAN

fusidentiaf development in the city center will create a more active envi ronment while augmenting the housing in the nearry historic districts.

PLANNING TARGET:

60 TO 210 UNITS OF NEW

HOUSING

2-2 I

C H AP T E R I I I ECONOMIC ANALYSIS

Restaurants, ceffee bars, cqfes and other eating and drinking establish ments are important contributors to Downtown's economic health.

PLANNING TARGET:

21 ,500 SQ. FT. OF RETAIL

The ability to successfully capture demand for new housing in the CR.i\ (and the Catalytic Opportunity Sites in particular) is based on critical assumptions related to location, visibility, product quality, amenities, overall project environment, criti cal mass, public incentives and commitments, and other factors.

The housing market analysis results in potential support for approximately 60 to 210 housing units in the Downtown by 2010, equating to average annual absorption of roughly 10 to 30 units per year, depending on market conditions (see table below).

Table 2.1 Downtown Housing Demand Model Estimated Capture Supportable Unrts

Fair Share 1.8% 60 Moderate 4% 140 Induced 6% 2 10

The number of housing units identified in the redevelopment programs for the priority sites (79 units) suggests ample opportunity to accommodate future spillover redevelopment on other adjacent and/ or nearby sites.

RETAIL

Retail uses require a concentration of disposable income (from nearby residents, employees and/ or visitors), strong visibility, extensive frontage, adequate parking, a clear competitive role and market identity. Moreover, supporting tenants often require an anchor tenant to generate foot traffic.

Retail demand analysis estimates opportunities for new retail development in Downtown Ocala generated by growth in employment and households from redevelopment of the Catalytic Opportunity Sites. The model illustrates the impact of future growth in these market segments for general retail (convenience and service), restaurants, leisure and entertainment uses, assuming that new office space and housing are built on the priority sites. It also assumes that the propor tion of spending in each of these retail categories does not change over time (i.e., future spending patterns in these categories are similar to what is spent today).

Retail opportunities are examined in detail under various demand scenarios gen erated by new households and employees only (Table 5.4 in Appendix A). (Note:

This retail model excludes the potential impacts of reuse of the Marion Theater because there is no detailed proposal available to accurately estimate potential spin-off effects on other uses such as food and beverage.)

Retail planning targets are summarized below:

Table 2.2 Downtown Retail Demand Retail Type Fair Share Moderate Induced

General Reta1 I 551 1,642 3,064 Food & Beverage 416 1,019 1,884 Leisure & Entertainment 293 887 1,810 TOTAL (Sq. Ft): 1,259 3,549 6,758

2 -22 C ITY O F OC A LA D OWNTOW N MA STER PLAN

The program of uses on the Catalytic Opportunity Sites contains a total of

21,500 sq. ft. of retail space, which is more than current market supports.

However, as additional redevelopment beyond the priority sites occurs, both the amounts of captive market segments (such as employees and residents) as well as demand for retail and restaurants will likely increase.

A limited amount of new retail and restaurant space is market supportable in Downtown Ocala based on several key industry assumptions related to sales pro ductivity, operations and merchandise mix (e.g., niche retailing). Market research revealed several retailers offering high-quality merchandise at appropriate price points, while others conducted marginal operations.

There is room in the market to support additional, better quality retailers that could be expected to perform at industry standards, especially as key components of the Master Plan are implemented and Downtown Ocala's overall draw as a destination is strengthened .

HOTEULODGING

Given current market dynamics and significant difficulties in the capital markets for hotel development, near-term opportunities for new hotels in Downtown Ocala will be limited. The office program (120,000 to 186,000 sq. ft.) generate some incremental demand for hotel roomnights (estimated at 30 to 50 rooms).

However, this demand can be adequately met among currently unoccupied rooms at both full- and limited-service properties in the City's hotel inventory.

However, as demand for hotel roomnights increases, development of a hotel in the Downtown should be considered and encouraged if feasible.

FINANCIAL ANALYSIS & ECONOMIC IMPACTS

Building upon the market analysis, the planning team tested the overall financial feasibility and estimated the potential economic impacts of the uses programmed for each Catalytic Opportunity Site. In addition, the analysis estimated the expected City contribution, which may range from construction of parking garages to streetscape improvements to underwriting the cost of land. Some pri ority sites will require significant public intervention while others will be under taken by the private sector in accordance with the Master Plan and market and economic realities over time.

The economic analysis, which includes a series of detailed financial pro formas for each site, is based on the following objectives:

• A private-sector perspective in that the financial models illustrate the expect ed internal rate of return (IRR) and present value (PV) that would accrue to private developers for building the range of uses programmed on each of the priority sites.

An estimated market-supportable absorption schedule that considers market dynamics, expected City contributions and the timing required to ready sites for redevelopment (e.g., demolition of the Library and Chamber of Commerce buildings).

CITY OF OCALA DOWNTOWN MASTER PLAN

New construction will signal to developers and the lm-ger community that momentum is gaining in Downtown's revitalization and building in the city center is a good investment.

HOTEL/LODGING:

NO NEW ROOMS IN

DOWNTOWN

2-2 3

Streetscape improvements, such as pedestrian crosswalks and trqffic calmingfeatures, and their costs are factored into the overall price tag.for Downtown'.!- revitalization.

• Estimated building development costs for all uses on five of the six sites (the

Marion Theater is treated separately) as well as potential other costs such as land, demolition and site preparation, and fac;:ade improvements. These costs are based on current market characteristics in Ocala, inputs from City staff, and/ or planning team estimates.

• Net operating income that reflects gross revenues less operating expenses for each of these uses to derive an internal rate of return (IRR). Financial pro formas using a minimum goal of 15% IRR.

The results are illustrated in Tables 5.4-6 in Appendix A. T he individual site pro formas are included in Chapter III.

Specific economic inputs and factors related to the Catalytic Opportunity Sites also include:

INTERNAL RATE OF RETURN (IRR)

• With the exception of the City Parking Lot and Library sites, the remaining sites achieve internal rates of return ranging from 15% to 21%. It is assumed that the City retains control of the City Parking Lot site with devel opment of a new structured parking garage. No commercial development is proposed on this site, though in the long term, improved market conditions may provide an opportunity for commercial uses in the garage.

CITY CONTRIBUTION

• Minimum returns of 15% will require City contributions for various compo nents of the plan. This may include construction of structured parking, streetscape improvements, demolition/ site preparation, and/ or underwriting the cost of land on selected sites.

• Based on City review and input, the models estimate approximately $9.6 mil lion in City contributions (in current dollars), ranging from approximately

$321,000 for construction of a plaza on the Sprint site to $4.4 million for construction of a parking garage (and associated operating expenses) on the

City Parking Lot site. (As noted below, additional public investment may be required for renovation of the Marion Theater).

ECONOMIC IMPACTS

• The $9.6 million in public commitments to the items noted above could be expected to leverage more than $22.6 million in private investment-only on these five priority sites. This is a ratio of approximately $2.35 (private) to $1 (public). Over time, additional leverage will be created as other sites in the

CRA/ Downtown are redeveloped.

• The plan will have additional significant economic impacts. The 79 units of new housing are estimated to generate approximately $4.2 million in con struction income, 12 permanent jobs, and more than $120,000 in annual property tax revenues for the City. Moreover, 120 o r so new city center resi dents are likely to have approximately $1.1 million in potential disposable

2-24 C I TY OF OCALA DOWNTOWN MASTER PL AN

income that could be available to support retailers and other businesses.

The 86,500 sq. ft. of office and retail space proposed on the priority sites could generate more than $4 million in construction income, approximately 400 new permanent jobs in Downtown, and $114,000 in annual property tax revenues for the City. An estimated $5.9 million in annual retail sales could be expected to create almost $414,000 in annual sales tax receipts for the state and Marion County. In addition, 400 new employees with disposable incomes typically spend $2,000 per year in retail and restaurants. These expenditures should support almost 3,000 sq. ft. of retail and restaurant space (not location-specific).

A preliminary stabilized year pro forma for a multi-use theater (6,800 sq. ft.) and restaurant (4,000 sq. ft.) was created for the Marion Theater analysis. The pro forma assumes a pro rated share of development costs, revenues and operating expenses based on a specific proposal for use of the theater. Industry assump tions of costs, expenses and performance for an established operator were uti lized for a prototype restaurant.

The intent of the preliminary stabilized year analysis is to illustrate the expected benefits that might accrue to the City from annual rents paid by the restaurant that can, in turn, be used to pay back any bonds issued by the City to renovate the theater (Table 5.11 in Appendix A). This analysis assumes no rental pay ments from the theater.

Preliminary analysis suggests that the City could generate an estimated return of 8% to 9% if a restaurateur can be secured with a minimum annual rent of 10%, assuming conservative annual sales of $260 per sq. ft. The rent of roughly $104,000 per year could be used to pay back bonds issued to cover estimated ren ovation costs of $1.2 million.

The following page provides a summary of market demand for the major Downtown land uses.

CITY OF OCALA DOWNTOWN MASTER PLAN 2-2 5

20000

CHAPTER I I I ECO N O MI C A NALYSIS

Table 2,3 Downtown Ocala Demand by Land Use 2004-2010

Land Use Fa1 r Share Demand Induced Demand Office (sq ft) 120,0J0 186,00J Housing (units) 60 210 Retail (sq ft) 1,259 6,758

Figure 2.1 Office Demand

186,000

200,000

..., 150,000 Q) Q)

LL

I 00,000 ~ :::J u l/l 50,000

Fair Share

Derra.nd

Figure 2.2 Housing Demand

In duced Demand

·~ 150 =:i

V)

:::J I

Fair Share Derra.nd Induced Demand

Figure 2.3 Retail Demand

7,000

6,000 Q) 5,000 Q)

LL 4,000

Q) L rel 3,000 :::J l/l u 2,000

1,000

Fair Share Demand lndLK:ed Demand

2-26 C I TY OF OCALA DOW NT OWN MASTER PLAN

http:Derra.nd http:Derra.nd

STRATEGY FOR

DOWNTOWN

REVITALIZATION

CHAPTER Ill I STRATEGY FOR DOWNTOWN REVITALIZATION

Ill. STRATEGY FOR DOWNTOWN REVITALIZATION

Building on the existing conditions analysis, economic studies and community input process, this chapter outlines the physical and programmatic framework -the nuts and bolts planning and design elements - for achieving success in Downtown.

Importantly, the Downtown revitalization plan is designed to incorporate ele ments and strategies across all scales, from Downtown-wide land use analysis to sidewalk and lighting improvements on specific streets. In addition, this develop ment framework includes strategies and actions across a range of planning, design, program and policy initiatives.

The Strategy Framework beginning on the next page provides the underlying structure for the chapter and outlines the elements that form the building blocks for revitalization.

C I TY OF OCALA DOWNTOWN M ASTER PLAN 3-29

CH APTER 111 I STRATEGY FOR DOWNTOWN REVITALIZATION

The Strategy Framework strategical!J integrates primary land uses, future development, and an overlqy of sup porting strategies far re-energizing D owntown.

STRATEGY FRAMEWORK

Revitalization of the city center will not be achieved through a few simple policy changes or one major development project. Instead, it will occur through a series of progressive, well-defined, synergistic strategies and initiatives that build upon one another and set the course for real change. \Xlhile a single " magic bullet'' development project can be highly susceptible to shifts in the market, a multi-lay ered and cohesive strategy - with programs, policies and improvements to sup port development - will be better able to respond to unforeseen changes in the future.

The Strategy Framework sets the ''big picture" structure for this approach. The framework prioritizes action categories into a three-tiered hierarchy. T his hierar chy (figure on the opposite page) identifies Primary Land Uses - the land use most important for achieving the vision and goals for Downtown O cala - along with Catalytic Opportunity Sites for accommodating additional development in those land use categories. The Supporting Strategies are comprised of sub-cate gories that support the primary land uses and opportunity sites. Together these levels provide a structure for addressing issues and ensuring implementation of the Downtown Master Plan.

PRIMARY LAND USES

Five Primary Land Uses are identified as vital to D owntown's future economic health and success: Office/ Finance, Government, Restaurant/Entertainmen t, Housing and Specialty Retail. Downtown has traditionally been a center of Office/ Finance and G overnment. These uses are critical for the health o f the city center, because they employ a large number of workers and draw people from throughout the area for work and special trips. Because of its importance, future policies should strive to keep government uses Downtown. Restaurant/ Entertainment and Specialty Retail are two land use s that were once quite estab lished in the Downtown core and have made a comeback in recent years.

Specialty retail niches - distinct from what is offered in suburban commercial areas - must be cultivated in order to be competitive within the market. Finally, housing is a key component to any thriving city center environment. While mar ket demand analysis suggests that mode st amounts of housing can be supported in the coming years, it is important to stimulate residential development to create an active D owntown and support the o ther Primary Land Uses.

3-30 C ITY OF OCALA DOWNTOWN MASTER PL AN

C H A p TE f\ 111 I s RA TEC V FOR DOWN T OWN REV IT ALI Z A T ION

CATALYTIC OPPORTUNITY SITES

'rhe Catalytic Opportunity Sites (discussed in detail later in this chapter) are also essential to Downtown's future success. The six primary sites are identified for near and longer term action and include a range of land use development, from mixed-use proj ects to public open spaces and parking structures These sites were chosen for their strategic locations, which will link together miss ing pieces of the urban fabric, and for their potential to ca.taly2e additional development a.nd investment in the D owntown. Importantly, the la.nd use a.nd design of each site ensures that the pro ject will link to its surroundings, foster an active street environment, adhere to design parameters that reflect the commu nity' s desires and stimulate additional nearby development

SUPPORTING STRATEGIES

Several strategies provide support and stru ell.I re for the other two categories Comprised of a rnnge of development actions, policy considerations and pro grammatic measures, the Supporting Strategies (also discussed in detrul later in this section) help link together D…