Economic Revitalization Strategy Kittanning Borough
Rosebud Mining Company building corner lot as seen
Download 0.59 Mb. Pdf ko'rish
|
- Bu sahifa navigatsiya:
- FM Bank Building on Market Street
- The former Train Station The Freight Storage Warehouse Building
- Photos of the former Train Station Depot Site
- Kittanning Market Area ST AT N JEFFERSON ST, KITTANNING, PA 16201, 0. Demand Supply Opportunity
|
Rosebud Mining Company building corner lot as seen at the intersection of Market and McKean Streets Page 52 However, with the exception of the Rosebud building and the Pratt building, there are few examples of recent investment in the older commercial buildings along Market Street or any of the adjoining streets adjacent to the business district. F&M Bank, a long-term stakeholder in the community and in the region, is planning a $2 million dollar renovation to its main office building on Market Street. Renovations will include the demolition of the building next to F&M bank to provide egress for a drive-thru banking lane. Construction is expected to begin in early 2009. In addition, F&M Bank intends to improve the municipal park next to its building.
F&M Bank Building on Market Street A new building with a vibrant use that generates higher rental income would establish a precedent that could stimulate investment in other downtown properties and contribute to a broader economic and physical revitalization of the downtown. In order to achieve this objective, a public development subsidy will be required to render the project economically feasible. Proposed space utilization The conceptual footprint provides 10,000 gross square feet per floor. The building is assumed to be three stories with a total gross square footage of 30,000. The street level space of the building facing Market Street would house ground floor professional space. There would be sufficient square footage for two professional offices. Given the proximity to the courthouse and the number of attorneys in the area, demand for upgraded space can be expected to lift the office market in Kittanning. •
Two office spaces (combined 10,000 square feet): •
General offices •
Reception/Secretary space •
Conference rooms •
Record storage •
Break room •
Men’s and women’s toilet rooms
The second and third floors would consist of space for certain Armstrong County’s functions, including administrative offices, storage, and men’s and women’s toilet rooms. In addition, professional office space would be available. Economic analysis Every feasibility analysis begins with a set of assumptions. The assumptions for this analysis are as follows: Developer assumptions: Page 53 •
Armstrong County IDC will serve as the development entity or will convey the redevelopment site for the consideration of a dollar to another development entity. Project cost assumptions: •
The project will involve total construction costs of $4,003,750, or $100.00 per square foot. This includes builder’s overhead and profit, but does not include the architect’s fee. Operating budget assumptions: •
The project will achieve $10.00 / SF Main Street and second floor raw space commercial rents. There will be a vacancy rate of 20% in the first year and 5% for every year thereafter. Tenant/s will be responsible for build-out costs. •
Annual real estate taxes of about $118,976. Due to the LERTA, this would be 10% the first year, or $11,897. •
Sources of funds assumptions: •
available for both construction and permanent financing. There is no construction loan factored into the pro-forma. •
a $200,000 mortgage loan assuming a 15-year amortization and an interest rate of 6%.
Share of funds assumptions: A PA DCED unwritten policy is that the local share of a project must be equal to or greater than 50% of total development costs. A hypothetical financing plan for the project is presented on the following chart.
Local Sources: •
Debt (first mortgage) $200,000 •
$1,000,000 •
Equity (IDC cash): $800,000 Subtotal $2,000,000 State/Federal Sources:
• RACP funds: $1,150,000 $1,150,000 •
Other state/federal funds (gap) $850,000 Total $4,000,000 * requires annual debt service of approximately $76,000 Conclusions Armstrong County would need to secure $850,000 in other state or federal funds in order to fill the state/federal financing gap. In addition, the IDC or selected developer would need to contribute $800,000 in equity to the local share of project costs in order to render the project financially feasible.
Page 54
• Each floor will cost $1,334,580 to construct ($4,003,750 total construct cost divided by the three floors). •
With square footage rents at $10 per square foot, each level of the building will generate $85,000 in annual rental income. •
annual revenues of $166,822 ($1,334,580 ÷ 8) or about $19 per square foot. •
square foot. Page 55 Page 56 Kittanning Train and Freight Station: North Grant Avenue Owner:
Ms. Gloria Purchase Price: $500,000 Number of buildings: 2 Year Built: Freight Storage Warehouse: 1895 Train Station: 1910 Estimated Square Footage: Freight Storage Warehouse: Unknown Train Station: Unknown
The Kittanning Train Station and Freight Storage Warehouse are located about half a mile from Kittanning’s central business district on North Grant Avenue between Reynolds Avenue and East High Street. The buildings have been vacant and underutilized since 2003, when the Tribune Review used a portion of the buildings. The train station building is immediately adjacent to the rail road bed that is now the location of a rails-to-trail program under the Armstrong County Rails-to-Trails Association and the Allegheny Land Trust. The trail adjacent to the station was completed in 2003, and provides a recreation resource for local residents and visitors. Eventually, the trail is expected to become part of a larger regional trail network.
While reuse of the buildings is a worthwhile long-term goal, the location of the buildings does not appear to have enough trail traffic to warrant a restaurant or café to service visitors. In addition, the potential as a free-standing theater and arts facility, while a worthy goal, does not appear to be a viable option at this time. A more viable option would be a cluster of uses at the site that could include the chamber of commerce, the local theater group, an arts venue, and possibly a gift shop. This would potentially provide the level of operating revenue necessary to create a viable redevelopment and reuse of the site.
The following table provides an overview on the advantages, constraints, options, potential market absorption, and potential end users. Page 57
Advantages Constraints Options Potential Market Absorption Potential End Users Close to the trail Historic structure Re-use of a vacant property Activates the trail Potential to attract more visitors Major renovation required, particularly the freight storage warehouse Potential parking impact in the neighborhood Modifications to the building will require new heating, ventilating, and air conditioning systems. Restroom facilities are not ADA-compliant. Electrical service upgrade is also needed. Conduct a more detailed market analysis to determine the highest and best use for the site Form a committee of residents, Borough Council members, representatives from the Planning Dept., and other interested parties to develop a reuse plan Slow market absorption Lack of demand for additional restaurants Miscellaneous store retailers have a niche in Kittanning and an ability to attract residents from other areas into Kittanning to shop Local Theatre/ Performing Arts Group Restaurant/ Microbrewery Art Gallery
Page 58 Photos of the former Train Station Depot Site
Page 59 Page 60 Page 61 Pollock Building Owner:
Darren and Lisa Stolitza Purchase Price: $150,000 Lot Size: Unknown Zoning:
B-3, General Business and Limited Manufacturing District Permitted Size: Maximum lot coverage: Maximum building height: Concept: The Pollock Building presents unique challenges and opportunities for Kittanning. The significant square footage of the structures combined is almost 95,000 square feet. Reuse of the structures in its current configuration is unlikely, given the size of the structure, declining demand for warehouse space, and the condition of the buildings. Selective demolition and rehabilitation is the most likely scenario. The following table outlines the advantages, constraints, options, potential market absorption, and potential end users for the site.
Page 62 Pollock Building Advantages Constraints Options
Potential Market Absorption Potential End Users
Located close to the county courthouse and the central business district Re-use of a vacant property Close to the trail Existing building configurations Large building footprint Egress issues would have to be addressed - access to the site is difficult. Cost of rehabilitation and upgrading Modifications to the building will require new heating, ventilating, and air conditioning systems. Restroom facilities are not ADA-compliant. Electrical services upgrade is needed. Selective demolition Convert part of site to parking for patrons and employees of downtown businesses and offices Recruit another manufacturing company to the site Conduct a more detailed market analysis to determine highest and best use for site Form a committee of residents, Borough Council members, representatives from the Planning Dept, and other interested parties to develop a reuse plan Slow absorption rates Right now, there is no market to support a retail use complex on this site Weak market absorption rate requires an anchor tenant to keep the building in a balanced cash flow A manufacturing company Local groups or businesses in need of additional space for storage, office, etc. Warehouse facility
Page 63 Page 64 C HAPTER 10: I MPLEMENTATION P LAN Vacant Lot on Market and North Grant Streets Task Responsible Group Timeframe Borough of Kittanning enters into cooperation agreement with Armstrong County to provide implementation services Borough of Kittanning, Armstrong County Spring 2009
Purchase and conveyance of vacant lot on corner of Market and Grant Streets from the Stolitza Family to the Armstrong County Industrial Development Corporation Stolitza Family, Armstrong County Industrial Development Corporation, Armstrong County Dept. of Planning and Development Fall 2009 Secure an appraisal that establishes the value of the cleared land for a three story mixed use office and retail facility Armstrong County Industrial Development Corporation, Armstrong County Dept. of Planning and Development Fall 2009 Solicit developer interest through the publication of an RFP or similar instrument Armstrong County Industrial Development Corporation, Armstrong County Dept. of Planning and Development Spring 2010 Review developer qualifications and select developer Armstrong County Industrial Development Corporation, Armstrong County Dept. of Planning and Development Spring 2010 Negotiate sales price of land with developer (if applicable) TBD: Dependent upon land conveyance; Developer Spring 2010 Form a committee with representation from Borough Council, the immediate neighborhood and Armstrong County to engage in planning activities with the selected developer (building height, site plan, design, parking, etc.) Party with site control, Borough Council, Kittanning community, Armstrong County, identified users of office space Summer 2010 Finalize project construction financing details (if Armstrong County IDC is developer) or enter into a sales agreement with the developer that is conditioned on the developer's ability to secure financing TBD: Armstrong County Industrial Development Corporation or other developer Winter 2010 Begin development (if Armstrong County IDC is developer) or convey land to developer when project financing has been secured and project is ready to begin development TBD: Armstrong County Industrial Development Corporation or other developer Winter 2010
Page 65 Other Projects (including train station, pollock bldg, and general improvements) Task Responsible Group Timeframe Work with PennDOT to acquire the previously promised 15 street trees to plant along Market Street PennDOT, Downtown Kittanning Inc, and Borough Council Summer 2009 Conduct a more detailed market analysis to determine the highest and best use for the Train Station Site Property owner, Borough Council, Armstrong County Summer 2009 Conduct a more detailed market analysis to determine the highest and best use for the Pollock Bldg. Property owner, Borough Council, Armstrong County Summer 2009 Form a committee with representation from Borough council, the Kittanning neighborhood, and Armstrong County to determine a reuse plan for the Train Station Site on Grant Street Kittanning Borough, Armstrong County Fall 2009
Form a committee with representation from Borough council, the Kittanning neighborhood, and Armstrong County to determine a reuse plan for the Pollock Bldg on Grant Street Kittanning Borough, Armstrong County Fall 2009 Continue to host Movie Nights in the summer months in downtown Kittanning Downtown Kittanning, Inc. Summers, Ongoing Continue to host summer concerts at Riverfront Park Arts on the Allegheny Summers, Ongoing Page 66 A PPENDIX A: RMP O PPORTUNITY G AP D ATA MP Opportunity Gap - Retail Stores 2008 Kittanning Market Area ST AT N JEFFERSON ST, KITTANNING, PA 16201, 0. Demand Supply Opportunity Retail Stores (Consumer Expenditures) (Retail Sales) Gap/Surplus Total Retail Sales Incl Eating and Drinking Places 94,106,178 109,792,813 (15,686,635)
Motor Vehicle and Parts Dealers-441 17,466,144 31,090,219 (13,624,075) Automotive Dealers-4411 15,063,173 29,226,340 (14,163,167) Other Motor Vehicle Dealers-4412 1,052,377 428,291
624,086 Automotive Parts/Accsrs, Tire Stores-4413 1,350,594 1,435,588 (84,994)
Furniture and Home Furnishings Stores-442 2,035,757 113,991
1,921,766 Furniture Stores-4421 1,125,803 52,630
1,073,173 Home Furnishing Stores-4422 909,954 61,361
848,593
Electronics and Appliance Stores-443 1,950,931 440,755
1,510,176 Appliances, TVs, Electronics Stores-44311 1,489,770 440,755
1,049,015 Household Appliances Stores-443111 338,803 418,816
(80,013) Radio, Television, Electronics Stores-443112 1,150,967 21,939
1,129,028 Computer and Software Stores-44312 384,531 0
Camera and Photographic Equipment Stores-44313 76,630
0 76,630
Building Material, Garden Equip Stores -444 9,120,281 6,959,006 2,161,275 Building Material and Supply Dealers-4441 8,379,590 6,596,257 1,783,333 Home Centers-44411 3,310,910 190,472
3,120,438 Paint and Wallpaper Stores-44412 184,233 593,998
(409,765) Hardware Stores-44413 682,573 2,344,715 (1,662,142) Other Building Materials Dealers-44419 4,201,873 3,467,072 734,801 Building Materials, Lumberyards-444191 1,416,191 1,182,307 233,884 Lawn, Garden Equipment, Supplies Stores-4442 740,691 362,749
377,942 Outdoor Power Equipment Stores-44421 118,376 0
Nursery and Garden Centers-44422 622,314
362,749 259,565
Food and Beverage Stores-445 13,020,301 7,057,078 5,963,223 Grocery Stores-4451 11,857,376 5,628,491 6,228,885 Supermarkets, Grocery (Ex Conv) Stores-44511 11,229,716 5,628,491 5,601,225 Convenience Stores-44512 627,659 0
Specialty Food Stores-4452 371,972
4,584 367,388
Beer, Wine and Liquor Stores-4453 790,953
1,424,004 (633,051)
Health and Personal Care Stores-446 5,094,257 15,540,792 (10,446,535) Pharmancies and Drug Stores-44611 4,445,413 15,303,988 (10,858,575) Cosmetics, Beauty Supplies, Perfume Stores-44612 173,569 0
Optical Goods Stores-44613 159,562
1,197 158,365
Other Health and Personal Care Stores-44619 315,713
235,607 80,106
Prepared On: Tues Nov 04, 2008 Page
1 Download 0.59 Mb. Do'stlaringiz bilan baham: 
|