Speed Zone Redevelopment Area State Speedway Indiana

AN ADVISORY SERVICES PANEL REPORT Speedway Indiana

AN ADVISORY SERVICES PANEL REPORT Speed Zone Redevelopment Area State Speedway Indiana

Developing a Motor Sports Destination in the Speed Zone Redevelopment Area

May 12–15, 2008 An Advisory Services Panel Report

ULI–the Urban Land Institute 1025 Thomas Jefferson Street, N.W. Suite 500 West Washington, D.C. 20007-5201 About ULI–the Urban Land Institute

he mission of the Urban Land Institute is to • Sustaining a diverse global network of local provide leadership in the responsible use of practice and advisory efforts that address cur- land and in creating and sustaining thriving rent and future challenges. T communities worldwide. ULI is committed to Established in 1936, the Institute today has more • Bringing together leaders from across the fields than 40,000 members worldwide, representing the of real estate and land use policy to exchange entire spectrum of the land use and development best practices and serve community needs; disciplines. Professionals represented include developers, builders, property owners, investors, • Fostering collaboration within and beyond architects, public officials, planners, real estate ULI’s membership through mentoring, dia- brokers, appraisers, attorneys, engineers, financiers, logue, and problem solving; academics, students, and librarians. ULI relies • Exploring issues of urbanization, conservation, heavily on the experience of its members. It is regeneration, land use, capital formation, and through member involvement and information sustainable development; resources that ULI has been able to set standards of excellence in de velopment practice. The Insti- • Advancing land use policies and design prac- tute has long been recognized as one of the world’s tices that respect the uniqueness of both built most respected and widely quoted sources of ob- and natural environments; jective information on urban planning, growth, and development. • Sharing knowledge through education, applied research, publishing, and electronic media; and

Cover photo © American Structurepoint.

2 An Advisory Services Panel Report About ULI Advisory Services

he goal of ULI’s Advisory Services Program able to make accurate assessments of a sponsor’s is to bring the finest expertise in the real issues and to provide recommendations in a com- estate field to bear on complex land use plan- pressed amount of time. T ning and development projects, programs, and policies. Since 1947, this program has assem- A major strength of the program is ULI’s unique bled well over 400 ULI-member teams to help ability to draw on the knowledge and expertise of sponsors find creative, practical solutions for its members, including land developers and own- issues such as downtown redevelopment, land ers, public officials, academics, representatives of management strategies, evaluation of develop- financial institutions, and others. In fulfillment of ment potential, growth management, community the mission of the Urban Land Institute, this revitalization, brownfields redevelopment, mili- Advisory Services panel report is intended to tary base reuse, provision of low-cost and afford- provide objective advice that will promote the re able housing, and asset management strategies, sponsible use of land to enhance the environment. among other matters. A wide variety of public, ULI Program Staff private, and nonprofit organizations have con- tracted for ULI’s Advisory Services. Marta V. Goldsmith Senior Vice President, Community/ Each panel team is composed of highly qualified Education Provost professionals who volunteer their time to ULI. They are chosen for their knowledge of the panel Thomas W. Eitler topic and screened to ensure their objectivity. Vice President, Advisory Services ULI’s interdisciplinary panel teams provide a Matthew Rader holistic look at development problems. A re Manager, Advisory Services spected ULI member who has previous panel experience chairs each panel. Caroline Dietrich Panel Associate, Advisory Services The agenda for a three-day panel assignment is intensive. It includes an in-depth briefing com- Gwen McCall Administrative Manager, Education and Community posed of a tour of the site and meetings with sponsor representatives; interviews with com Nancy H. Stewart munity representatives; and one day for formu Director, Book Program lating recommendations. On the final day on site, Laura Glassman, Publications Professionals LLC the panel makes an oral presentation of its find- Manuscript Editor ings and conclusions to the sponsor. At the request of the sponsor, a written report is pre Betsy VanBuskirk pared and published. Creative Director

Because the sponsoring entities are responsible Martha Loomis for significant preparation before the panel’s visit, Desktop Publishing Specialist/Graphics including sending extensive briefing materials to Kim Rusch each member and arranging for the panel to meet Graphics with key local community members and stakeholders in the project under consideration, par- Craig Chapman ticipants in ULI’s five-day panel assignments are Director, Publishing Operations

Speedway, Indiana, May 12–15, 2008 3 Acknowledgments

n behalf of the Urban Land Institute, the The panel gained significant insights from the panel thanks the town of Speedway, Indi- sponsor’s briefing materials as well as the guided ana; the Speedway Redevelopment Com- tour of the Speed Zone study area. In addition, O mission; Mansur Real Estate Services, the panel was able to gather valuable input from Inc.; American Structurepoint, Inc., and Green- more than 30 area stakeholders during a day of street, Ltd. The panel sends special thanks to ULI interviews. This allowed the pane to base its rec- member Jeff Kingsbury for bringing the panel to ommendations on accurate, timely, and balanced Speedway, to Scott Harris for arranging a tour information. The individual perspectives of local of the Indianapolis Motor Speedway, and to Sean business owners, residents, and public officials Northup for his invaluable assistance during the were crucial to the panel process and will be a nec- panel process. The panel also wishes to extend essary part of advancing redevelopment of the its appreciation to Shyam Kannan of RCLCO for Speed Zone. his time and the information he provided during the study.

4 An Advisory Services Panel Report Contents

ULI Panel and Project Staff 6 Foreword: The Panel’s Assignment 7 Economic Development and Market Potential 11 Retail and Entertainment Development Strategies 16 Sustainability 21 Market Strategy 24 Implementation Strategies 26 Conclusion 29 About the Panel 31

Speedway, Indiana, May 12–15, 2008 5 ULI Panel and Project Staff

Panel Chair ULI Project Staff

Michael J. Maxwell Jennifer LeFurgy Managing Partner Consultant to ULI Maxwell + Partners Pasadena, California Miami, Florida ULI Graduate Student Intern Panel Members Sean Northup Joseph Davis Graduate Student in Urban Planning President Ball State University Community Planning Solutions, Inc. Muncie, Indiana Silver Spring, Maryland

Robert Gibbs President Gibbs Planning Group Birmingham, Michigan Steve Graham Vice President of Destination Development RED Development Kansas City, Missouri Dan Martin Vice President Economics Research Associates Chicago, Illinois Heather Rosenberg Senior Project Manager CTG Energetics Irvine, California

6 An Advisory Services Panel Report Foreword: The Panel’s Assignment

he town of Speedway, Indiana, located five WISCONSIN Location map. miles west of Indianapolis, is home to the world-famous Indianapolis Motor Speedway T (IMS). In 2005, the town formed a redevelop- Lake Michigan MICHIGAN ment commission to develop a revitalization plan South Bend for a 400-acre section of industrial brownfields ad- Gary jacent to the IMS, which became known as the

Speed Zone. In 2007, the Speedway Redevelop- Fort Wayne ment Commission (SRC), with the assistance of American Structurepoint, Inc., developedWISCONSIN a mas- INDIANA ILLINOIS ter plan for the area and completed the process of OHIO Muncie selecting and retaining a master developer. Anderson

Speedway Indianapolis The plan focuses on creating future mixed-use Lake Michigan MICHIGAN development opportunities, retaining major em- Terre Haute ployers, and leveraging Speedway, as the home of Bloomington

the IMS, to be a catalyst in creating a sustainable South Bend year-round motor sports industry. Related in- Gary dustries would include research and development (R&D) and advanced education in motor sports, and the area would function as the headquar- Evansville Fort WayneKENTUCKY ters for many of the world’s leading motor sports teams. The master plan primarily seeks to INDIANA Regional map. • Establish a strong retail/commercial corridor 65 ILLINOIS along Speedway’s historic Main Street; 69 OHIO Muncie Anderson • Enhance access to businesses and industrial 74 plants by improving traffic flows; 70 Speedway Indianapolis • Improve pedestrian safety and accessibility

while also opening the area for alternative 70 transportation opportunities; Terre Haute Bloomington 65 • Create a year-round destination for race fans and motor sports enthusiasts;

• Encourage environmentally sustainable devel- In 2007, the town of Speedway and the SRC re- opment that benefits businesses as well as the tained Mansur Real Estate Services and Green- community as a whole; and street, Ltd., as the Speed Zone’s master de- • Enhance citizens’ quality of life through high- velopers. In May 2008, the master developers quality development, improved public ameni- sponsoredEvansville a three-day ULI Advisory ServicesKENTUCKY ties, and new opportunities for arts and culture. panel to identify implementation strategies, in-

Speedway, Indiana, May 12–15, 2008 7 cluding public/private financing sources, themed/ employment base has drawn a new generation destination retail development, and sustainable of manufacturing companies that are locating in energy solutions. This report documents the pan- town, including the carbon fiber high-end bicycle el’s recommendations. component manufacturer Zipp Speed Weaponry.

During the several months of the racing season, Speedway’s History and Background Speedway’s population swells as the IMS draws In 1909, Arthur Newby, Frank Wheeler, Carl 300,000 to 400,000 spectators for each of the three Fisher, and James Allison founded the India- programmed racing events. In 2001, it was esti- napolis Motor Speedway, originally as an auto- mated the IMS created an $890 million annual eco- motive testing facility, which later became the nomic impact for the city of Indianapolis—about first significant motor sports venue in the United three times that of a Super Bowl. One of the pri- States. Safety concerns for the drivers and specta- mary goals of the new master plan is to help the tors eventually led to replacement of the original town of Speedway capture more of the revenues crushed stone and tar surface with 3.2 million pav- generated by these visitors by creating new op- ing bricks, thereby giving the track its nickname, portunities and businesses within the town. “The Brickyard.” The IMS has gone on to become The IMS property encompasses 1,025 acres, in- world famous as the host of the Indianapolis 500® cluding the track, administration and service as well as the Allstate® 400 at the Brickyard® and buildings, Brickyard Crossing Golf Course, Brick- the United States Grand Prix for Formula One yard Crossing Golf Resort and Inn, and numerous (2000–2007). With its spectator capacity of 400,000, infield and off-track parking areas. The Speedway the IMS is the world’s largest sporting venue. grounds were added to the National Register of Led by Carl Fisher, who would go on both to Historic Places in 1975 and designated a National transform Miami Beach, Florida, and to develop Historic Landmark in 1987. The IMS Speedway Montauk, New York, the track’s founders devel- Hall of Fame Museum is recognized as one of the oped the town of Speedway to house and sup- world’s foremost museums devoted to auto rac- port the automotive industry workers. As the ing. The museum features a 48-seat theater and early popularity of the IMS increased, supportive displays approximately 75 vehicles, including Indy and associated businesses grew around the track. Racing cars from the Indianapolis 500, Formula Speedway, like the IMS, was designed as a testing One cars, NASCAR stock cars, and a variety of ground: “a city of the future organized to be hospi- vintage and other racing cars. Annual visitation table to the automobile.” Speedway included such is about 250,000, with most attendance during the early 20th-century innovations as asphalt-paved months of May and June. streets and garages in place of carriage houses. Since the early years of the 20th century, motor The town continued to grow and ultimately thrive sports have been a significant economic driver for as the locus of Indianapolis’s automotive manu- the entire Indianapolis region. Today, with more facturing sector. It eventually established a Main than 400 motor sports–related companies doing Street and six schools, which still operate today. business and nearly 9,000 individuals working full As area automotive manufacturing declined dur- time in jobs directly related to motor sports, the ing the 1970s and 1980s, so did Speedway’s tra- Indianapolis area is a leader in motor sports and ditional economic base. Changes in area employ- automotive manufacturing. In 2006, motor sports– ment, the construction of bypass roads, and the related wages in the area were estimated to gen- advent of regional malls resulted in the decline erate more than $425 million annually. Although of Main Street. Despite the economic changes, the Indianapolis region currently enjoys a strong Speedway retains a current population of 12,744 economic position in motor sports and automo- people and most of its leading industrial employ- tive technology, many other regions are actively ers, such as Allison Transmission, Praxair Sur- pursuing economic development agendas focused face Technologies, IMS, and the associated Indy on motor sports. The cities of Charlotte, Atlanta, Racing League (IRL). Speedway’s highly skilled and Las Vegas, as well as emerging newcomers

8 An Advisory Services Panel Report such as China, Bahrain, and Qatar, are developing tor sports enthusiasts, and encouraging an envi- and improving international racing venues. Great ronmentally sustainable model for future commu- Britain has for many years enjoyed the distinction nity redevelopment. Specifically, the master plan of being the hub of international Formula One rac- seeks to guide the revitalization of Main Street ing with extensive R&D facilities and specialized with the development of new retail and residential engineering shops. opportunities by improving the study area’s appearance and functionality. To implement and lead Speedway’s master plan recognizes the competi- the process, the SRC, through a request for quali- tive market for motor sports and seeks to lever- fications process, selected Mansur Real Estate age its proximity to the IMS as well as Indiana’s Services and Greenstreet, Ltd., in December 2007 desire to create a world-class center for motor as the Speed Zone’s master developers. sports and related technology. The panel learned that local and state leaders clearly understand the The study area includes most of Speedway’s major national and global competitive environment for industrial employers, such as Allison Transmis- motor sports, how it threatens Indiana’s current sion (3,400 employees), Praxair Surface Technolo- market share, and what investments and induce- gies (600 employees), and Zipp Speed Weaponry ments are needed to maximize the economic ben- (130 employees). To enhance the area’s competi- efits and increase Speedway’s share of growth re- tiveness as a high-tech manufacturing center, lated to motor sports. Speedway Utility Management, LLC, plans to design, build, own, and operate a state-of-the-art The Study Area central utility complex that will provide steam, chilled water, compressed air, and water pretreat- The panel was asked to study the area referred to ment services for commercial and industrial cus- as the Speed Zone, approximately 400 acres en- tomers within the study area. Expected to be in compassing parcels owned by the IMS and numer- service by 2009, the plant will facilitate employ- ous industrial lands that are privately owned. The ment growth by providing essential low-cost utili- Speed Zone is adjacent to the IMS south view- ties that will eliminate the need for industrial and ing stands and is bounded on the east by the town commercial users to develop or maintain small in- limits of Speedway, on the south by Cossell Road, dividual plants. and on the west by Main Street. Located approximately five miles northwest of downtown India- Before the panel’s visit, the SRC retained the ser- napolis and five miles northeast from the new vices of RCLCO, a real estate consulting firm, to $1.1 billion Indianapolis International Airport, the assess the market-supportable opportunities with- Speed Zone is readily accessible by a network of in the Speed Zone. RCLCO’s findings determined interstate highways and major arterials. that the Speedway submarket had the capacity to support up to 500,000 square feet of destination Formed in 2005 by the Indiana state legislature, retail in concert with other uses, as well as the po- the Speedway Redevelopment Commission has tential need for motor sports–related office/flex spent the last three years working directly with space in the near to mid-term. the public through a series of meetings that have developed and defined a series of common goals for the town of Speedway’s economic future. The The Panel’s Assignment meeting process identified the 400-acre area as a The Speed Zone’s master developers, with the as- target for redevelopment, and the SRC continues sistance of the town of Speedway and the SRC, to work closely at all levels of the community during implementation. invited a ULI Advisory Services panel to give feedback regarding specific issues related to the The master plan’s goals include creating an im- implementation of the master plan. The panel proved sense of place for residents and businesses was asked to comment on public/private financing through new high-quality development and infill sources, themed/destination retail development, projects, creating a year-round destination for mo- and sustainable energy solutions. Specifically, the

Speedway, Indiana, May 12–15, 2008 9 sponsors asked the panel to explore the following • What are creative ways to identify and attract questions: these tenants and users?

• Given the unique challenges and opportuni- • Given the unique challenges and opportunities ties of the Speed Zone, and the assessment of of the Speed Zone, what is the optimal strategy for public and private sector funding, leveraging market demand, what is the optimal mix of ten- local, state, and federal sources and programs? ants and users both to address the needs of the Speedway community and to create a destina- • What innovative and sustainable energy tion experience for the Indianapolis metropoli- production and management strategies can be implemented at the Speed Zone? tan area and the state of Indiana?

• How can the diverse tenants and users be integrated effectively to contribute to their individual success and that of the Speed Zone?

10 An Advisory Services Panel Report Economic Development and Market Potential

peedway has many characteristics that will The Speed Zone master plan recognizes these serve it well as it grows; the town has tre- strengths to some extent, and the panel believes mendous potential to be a spectacular place that these strengths should be part of the foun- S to live, work, and visit. The panel agreed dation of future economic development efforts. that Speedway has the potential to become and Moreover, the panel believes that many of the deserves to be an exciting destination with plenty stakeholders agree on these strengths and that of “wow” factors. they will serve as a valuable common point of ref- erence in future stakeholder dialogues. To this The town has a strong basis for future develop- end, the panel encourages the sponsors to have ment, and the panel did not recommend any signif- regular, collective meetings with stakeholders, icant changes to the master plan. The panel based including but not limited to the IMS, the town of its recommendations on materials provided by the Speedway, business representatives, and state sponsors, including the master plan, and offers the and federal agencies. Key decision makers and following observations, which should be consid- stakeholders should come together as an informal ered in conjunction with the master plan’s recom- or formal partnership for ongoing meetings to co- mendations. ordinate plans and programs and to build consen- sus for unified visions. Expand the Dialogue Based on Strengths Define Development Districts For any community to develop (or redevelop) On the basis of the materials supplied in the brief- to its full potential, it must recognize its par- ing book and their own observations, the panel ticular assets and capitalize on them. During its members identified four potential development visit to Speedway, the panel observed five main districts within the study area. These develop- strengths: ment districts would function cohesively, yet each would evolve distinctly over various times and • The IMS provides a universally recognized serve their stakeholders individual needs. These brand, a global event, and over a million visitors each year. Stakeholders’ overlapping • The cluster of motor sports industries in the interests should work region creates the opportunity for an interna- together. tional base of business. TOWN

• Speedway is world renowned for its history, industry, technology, events, and education. STATE TRACK • Speedway is a strong community with a strong identity, resulting in strong assets, such as safety and schools.

• Speedway’s autonomy from Unigov (the REGION INDUSTRY mandated absorption of some of Indianapolis’s suburbs into one entity) allows for greater flex- ibility and ability to innovate.

Speedway, Indiana, May 12–15, 2008 11 IMS • A national center for motor sports testing and EXPANSION analysis, including a wind tunnel and other high- speed testing methods;

• Industrial flex space suited to motor sports TOWN MUSEUM/ENTERTAINMENT/RETAIL CENTER R&D; and • Racing team headquarters facilities (an estimated 125,000 square feet per IRL team and up to 200,000 square feet per NASCAR team) that provide office, retail, storage, garage, work- shops, and exhibition space for racing teams. MOTOR SPORTS TECHNOLOGY An array of enticements—such as specialized educational facilities and programs in motor sports management and technology, an industry incubator to provide startup space and support to bring innovations to market and grow new companies, a full complement of retail amenities in the revital- ized town center, sustainable new buildings that allow incubated companies to expand, low-cost Four proposed develop- four development districts would address mul- central utilities, access and proximity to motor ment districts. tiple opportunities for the individual segments of sports suppliers, and most important, a state- Speedway’s markets in distinctive ways: sponsored economic incentive program—would support the district’s main uses. The panel rec- • Motor Sports Technology district; ommends that the sponsors work closely with the • IMS Expansion district; state of Indiana at the highest levels to define tar- geted incentive packages that will attract domes- • Museum/Entertainment/Retail district; and tic and international companies, stimulate the startup firms, and leverage the proximity to • Town Center district. the IMS. Motor Sports Technology District The panel came to understand that Indiana is not capturing as much of the motor sports industry as This district would encompass most of the study it possibly could and has not yet effectively lever- area, including the southern end of Main Street aged the IMS to stimulate development opportu- and eastward to the proposed Holt Road. Ideally, nities. Indiana, however, does have the advantage development of a Motor Sports Technology dis- of being the most historic motor sports racing ven- trict would leverage proximity to the IMS to draw ue in the world. Although the panel believes that some of the existing 400 motor sports companies competition for motor sports business is formida- ble, especially with the ascent of Charlotte, North now located within 30 miles of Indianapolis. It Carolina, as the locus of NASCAR and many of would serve as a specialized district to which some its race teams, Speedway, by virtue of its location, of the thousands of related motor sports compa- does have the potential to attract and maintain a nies now operating outside of Indiana could relo- broad segment of the national and international cate. To draw these companies, the district could motor sports industry. Speedway should especial- offer the following uses: ly focus on attracting R&D segments and U.S.- based IndyCar and Formula One race teams while • Motor sports educational facilities, including also broadening its attraction of NASCAR. The training and programming; area may be particularly well suited to become the

12 An Advisory Services Panel Report U.S. home for the leading British and European so it could be featured and promoted as a venue motor sports firms. during racing telecasts. IMS Expansion District The panel understood that the current economic downturn combined with significant recent in- This district would be located at the south- creases in gas prices is affecting motor sports race ern edge of the IMS, above the realigned 16th attendance nationwide. If the visitor experience at Street, and encompass the area that now contains the IMS does not add new venues that provide a Georgetown Road, which is planned as a linear larger and extended motor sports experience, visi- park. Judging by the performance of similar tour- tor expectations may be disappointed, resulting ism destinations, the panel believes that the IMS in less attendance and lower per capita spending. audience has potential to grow, and the IMS, in co- The panel encourages the IMS, the Indianapolis operation with the other stakeholders, should plan Convention and Visitors Bureau, the State of In- on improving the visitor experience outside the diana Office of Tourism Development, the town of track. Thus, the expansion district would serve Speedway, the SRC, and the IRL to work cooper- as the eastern gateway to visitors arriving from atively to create this district by using distinctive Indianapolis and would provide a large area out- design elements, seamless integration with the ex- side the track infield to grow IMS businesses and isting IMS facility, and special amenities. media operations. This district could serve as the televised face of the community and track as well Museum/Entertainment/Retail District as a possible venue for synergistic functions and events both during the racing season and in the To create a unique sense of place for Speedway, off-racing season. the panel recommends establishing a Museum/ Entertainment/Retail district. This area would Although the IMS is a fully contained entity, with encompass the current main entrance to the IMS large food and beverage concessions, a hotel, and a at its southwest corner, along 16th Street. The golf course, the panel believes that the IMS should target market for this district is largest, most de- consider using the expansion district to create manding, and possibly most complex. new venues that will provide more year-round attractions. Market studies increasingly indicate Ideally, this district serves as the core of Speed- that audiences want their grand event spaces to way’s entertainment and cultural venues. It is be fully accessible and fully amenitized. (Using re- where the current million annual IMS visitors, cent market data, the panel found that the aver- potentially 30 million IndyCar fans nationwide, age Indy 500 audience member is 39 years of age, and the additional 22 million annual visitors to earns $81,000 annually, and is one-third female.) Indianapolis who come to see the world-famous Brickyard should tour several motor sports and Popular sporting destinations are judged and automotive museums, attend a conference at a rated on the basis of their visitor experience. The trackside hotel, or be entertained and shop. panel believes that if the IMS wants to stay competitive, it will need to expand services outside Visitors and conventions in Indianapolis are es- the track into this district. A better visitor experi- pecially important and a still untapped resource ence will mean better visitor logistics, increased for Speedway. As of 2007, the city of Indianapolis per capita spending, and resultant increases in hosted an average of 38 conventions and generat- sales and property taxes. Ideally, the expansion ed $3.6 billion in annual tourism. To attract signifi- district not only would function as the eastern cant segments of that untapped market, this dis- gateway to the town of Speedway but also would trict must offer the following: be developed to appeal to the IMS demographic • Track access, including easy egress and ingress and include amenitized indoor and outdoor gath- as the starting point for tours of the track; ering and event spaces and public visibility of live media productions such as the Today Show. This • Access to themed retail and dining on Main district should be well maintained and landscaped Street;

Speedway, Indiana, May 12–15, 2008 13 • Themed hospitality and meeting/conference The critical factors in ensuring success of this dis- space adjacent to the IMS; and trict are its location adjacent to both the track and Main Street. Parking is likewise essential • Motor sports–related cultural activities, includ- and should be shared by both Main Street and the ing one or more new museum experiences at or track. Retail uses should be limited to only a very above the level of North Carolina’s NASCAR few outlets specializing in automotive and mo- museum. Ideally, the district should become the tor sports products and services. They could in- new home of the IMS museum now located on clude antique car parts, racing accessories, or the the track’s infield. “world’s largest racing car dealer.” It is important that the retail, entertainment, and museum uses Specifically, a unique entertainment concept plan complement, support, and not compete with the is critical, especially to draw tourists to both the Main Street businesses and restaurants. track and Main Street Speedway from Indianapo- lis. Examples of specific attractions are In addition, the stakeholders should consider man- dating green development in this and all districts • A new racing museum and track experience (studies indicate that national and international package; tourism markets are increasingly interested in this topic), and all venues should be of superior • Walking and driving tours of the IMS; quality with exceptionally designed thematic fin- • A tall tower ride from which to view the track; ishes and public spaces. The panel urges the IMS, the Indianapolis Convention and Visitors Bureau, • Race car driving experience simulators; the State of Indiana Office of Tourism Develop- ment, the town of Speedway, the SRC, and the • An automotive/motor sports–themed children’s IRL to develop a strong working committee to museum with indoor and outdoor attractions; create and implement the adopted strategy. • Classic car exhibition, concourse, and auction Town Center District facilities; The concept for the Town Center district would be • Driving schools for racers and fans; and to create a traditional-style Main Street, populat- ed with local, regional, and specialty chain restau- • Venues such as “the world’s largest speed shop” rants and specialty stores. Located at the north (similar to Bronner’s Christmas Wonderland in end of Main Street from the intersection of 16th Michigan or a Ron Jon Surf Shop). Street and Crawfordsville Road, it would extend southward to the midpoint of Main Street. The The entertainment concept plan could feed the target market of this district would be primarily visitor’s interest and offer a mix of thrills and Speedway residents and local employees. enjoyment. Balancing the typically nonprofit or limited-profit entertainment museums with for- The principal purpose of the district would be to profit experiences, dining, and retail will ideally create a special place that becomes the identifi- result in an economically successful blend for the able focal point of Speedway. Creating a tradition- district. This strategy will also effectively lever- ally styled Main Street would ideally help build age the state’s major landmark asset by increas- community, create a viable core for the commu- ing visitation, adding to the visitor experience, nity, and provide a special place that supports job and promoting increased length of stays—and growth. The magnet elements are retail, coffee shops, and dining options in a pedestrian-friendly with it increased per capita expenditures and atmosphere. sales tax. The district should keep a mid-priced limited-service hotel fully occupied and provide The panel believes the success of the Town Center rooms to support an adjoining conference center, district should be based primarily on a local tenant similar to Lowe’s Motor Speedway in Concord, mix and that the master developers should consid- North Carolina. er developing a public market to create a unique

14 An Advisory Services Panel Report food-shopping experience and attraction for the to the northeast of the Speed Zone along Craw- area. The panel believes that the town should not fordsville Road). Although the second redevelop- pursue developing a lifestyle center in this area ment area is outside the Speed Zone, linking these but work to facilitate a sense of place unique to areas would create a dynamic retail environment Speedway. The district must have a seamless con- by concentrating supporting specialties in their nection with the surrounding residential areas, respective locations and would prevent competi- a comfortable ambience, and plentiful adjacent tion between the areas. parking that is ideally a combination of on-street spaces, parking behind buildings, and structured Both redevelopment areas must be developed and parking. treated as distinct places with different retail objectives, merchandising, and target markets. The Success of the four districts requires establishing goods and services offered in each area must be and maintaining important connections as follows: different in look, feel, and manner of merchandising and on an appropriate scale that supports the • The Motor Sports Technology district would design concept of each area: Town Center (first benefit from connectivity to the Town Center redevelopment area) versus regional lifestyle cen- district and vice versa. ter (second redevelopment area). The target mar- • The Town Center would benefit from connec- kets for both redevelopment areas are citizens of tivity to the Museum/Entertainment/Retail Speedway, IMS visitors, IndyCar fans, and India- district and vice versa. napolis visitors. • The IMS Expansion district would benefit by In conclusion, the panel urges all stakeholders to being adjacent to the Museum/Entertainment/ meet on a regular basis, working in concert with Retail district and vice versa. the master developers to create a sustainable plan to revitalize the retail sector within the two rede- In addition, the panel recommends consideration velopment areas. be given to linking the two extant redevelopment areas to create a cohesive retail plan for Speed- way (the first is the Speed Zone, and the second redevelopment area is a low-density strip located

Speedway, Indiana, May 12–15, 2008 15 Retail and Entertainment Development Strategies

he panel was asked to offer recommenda- The panel found that new retail opportunities tions and strategies to help establish and should be focused in two categorically distinct guide the development of a sustainable re- areas: T tail base in the historic center of Speedway (Main Street) as well as other parts of the town. • Main Street in the Town Center district: In seeking to answer these questions, the panel Create a traditional town center to support found good news in the form of a solid econom- both the surrounding neighborhood and the ic base from which new retail development could larger Speedway community with a grocery build. According to RCLCO, substantial market store, food outlets including a public market, opportunities and unmet needs for retail at the more local and regional restaurants focused neighborhood, community, and regional levels ex- on casual dining as well as prepared food for ist both in the center of Speedway and at the sec- takeout, a drugstore, a bank, and specialty ond redevelopment area. retail shops.

Speedway’s trade area is large—approximately a • Regional retail in second redevelopment area: two-mile radius from the center of the study area Redefine and redevelop the existing shopping encompasses about 20,000 households earning an centers to focus on regional retail, primarily average 2008 household income of $49,200—well lifestyle goods, that serves the currently unmet above the Indianapolis average. Speedway resi- needs of Indianapolis’s west-side market area, dents’ above-average income can support substan- and create outlets for motor sports–themed tial retail development on Main Street at the com- shops and specialty outlets. Speedway’s estimated munity and neighborhood levels, as well as at the primary trade area. regional level in the second redevelopment area. Main Street

WEST 36TH STREET The panel heard compelling support for the development of a Town Center to serve as the community gathering point of Speedway. Main Street has 7565 always been the perceived town center although PRIMARY TRADE AREA it never historically looked like a traditional main street because of the single-sided street retail with industrial uses on the opposite side. As a new 465 Town Center, Main Street would be programmed

16TH STREET to support both the automotive culture, museum, SPEED ZONE hotel, and conference center, and the race fans at 10TH STREESTREETT the IMS, but it would be developed primarily as a meeting, dining, shopping, and community gather-

7574 ing place for the residents of Speedway—a tradi-

4041 tional downtown.

S HINGTON STREET The panel believes Main Street should be con- WA WEST 70 ceived as three functionally distinct but complementary areas.

16 An Advisory Services Panel Report 74 30th Street

136 $48,600 L a fa Estimated 2007 house- y $55,400 e t 65 te hold incomes in the R o a d Speed Zone’s vicinity.

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$47,600 IIIIIIIIII Girls Sc Girls

$51,000 $33,000 10th Street $50,400 I

$55,400 1.5-mile radius from Speed Zone 74 Rockville Road 36

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$72,400 70

nt nt

m l Holt Road Holt Be N

Shopping centers near

31 the study area.

A 32 69 65

B 865 C 36

74 D 465

E F G 40 36 465 40 74 52 Key A Clay Terrace 70 H B Keystone Mall C Castleton Square Mall 65 D Glendale Mall 74 E Circle Center 37 F Eastgate Mall 31 G Washington Square Mall Not to scale. H Greenwood Park Mall Speed Zone N

Speedway, Indiana, May 12–15, 2008 17 74 30th Street

136 L a fa y e t te R o a d

Road 465 Grocery stores near the

study area. 16th Street Girls School Girls

10th Street

rst

n Ly 74 Rockville Road 36

Key 70 e

One-mile radius from grocery store u

Av Two-mile radius from Speed Zone site t

Grocery Store on

m l Holt Road Holt Speed Zone Be N

The Town Center Near the IMS, a conference center would be an excellent supporting amenity that could be paired This area would be composed of local retailers (in- to a limited-service hotel (such as a Hilton Garden cluding a public market), would be family orient- Inn). This area would anchor the main entrance ed, and would support the needs and employees to the IMS and be an integral part of the new of adjacent industries. It should contain a variety Museum/Retail/Entertainment district. The panel of food and drink establishments, mostly local or recommends that the IMS Hall of Fame Museum regional with limited national chains. It can also be moved from the track infield to this district, contain a small grocery of about 20,000 square feet immediately adjacent to the IMS offices. Relocat- Suggested organization and a pharmacy on the north side of Crawfords- for Main Street. ing this popular museum out of the infield would ville Road. be the initial catalyst to locate future automotive museums and other year-round automobile-culture activities. Combining a hotel and conference center with a cluster of automotive-themed desti- TOWN nations would create the critical mass necessary MUSEUM/ENTERTAINMENT/RETAIL CENTER to drive and support the growth of the adjacent Town Center component of Main Street. Educational/Incubator If the SRC’s proposal to create a technology cen- EDUCATIONAL/ INCUBATOR ter is to be viable, then it must include a well- defined area to attract and support specialized motor sports and R&D higher education. As with many such specialty education centers, combining BUSINESS education with a business incubator would be a SERVICES key to the success and prestige of this component. Likewise, the incubator would be a primary driver for the creation of new R&D or knowledge development as successful businesses expand.

18 An Advisory Services Panel Report The middle node on both sides of Main Street of the Town Center—and of the entire redevelop- should be the educational and incubator hub of ment effort—is that the IMS become a full and ac- Speedway. By using a combination of existing and tive partner with the town, the SRC, and special- new buildings, the four major participating educa- ized educational programs. To create the area’s tional institutions (Marian College, Indiana Uni- critical mass, only the IMS has the immediate abil- versity–Purdue University Indianapolis, Indiana ity, need, and land to locate its new hotel and a State University, and Ivy Tech Community Col- conference center at the edge of the Town Center lege) as well as high school classes and specialty district (surrounding the intersection of Craw- learning centers could very quickly begin pro- fordsville, Main, and the realigned 16th streets). grams focused on advanced manufacturing, fabri- Creating a strong sense of place on Main Street cation, automotive and racing technology, motor requires developing special activities that will sports management and marketing, automotive draw shoppers and visitors throughout the year. preservation and restoration, and other specialty One such activity the panel strongly encourages is automotive skills. the formation of a “public market” on Main Street. The panel believes additional educational cours- Public markets are year-round enclosed buildings es in automotive media, advertising, and broad- that offer unique, high-quality foods and specialty casting would be complementary and could share goods sold from open or semi-closed stalls. Pike current and future broadcast and media facilities Place Market in Seattle, for example, is known owned by the IMS. These activities are fast start- internationally, yet draws local customers. Typi- ing and low cost but quickly yield positive effects cally, public markets offer produce, meats, cheese, from the all-day and early-evening student, facul- poultry, fish, and baked goods and often appeal ty, and staff who will patronize the shops and res- to an entire community as well as the immediate taurants in the Town Center. The synergies will neighborhood and can become an important tour- ist destination. The North Street Market in Co- result in a well-supported, high-quality environ- lumbus, Ohio, is a proven example of how a public ment that is animated and active year-round and market has helped catalyze an area’s redevelop- is one of the primary economic supports for the ment and support its surrounding community. Town Center. Funding for these markets is typically local, al- Business Services Center though the U.S. Department of Agriculture offers assistance to aid in developing and launch- At the south end of Main Street would be the ing such markets. third node, dedicated to serving the professional needs of Speedway’s businesses and educational facilities as well as drawing customers from out- Second Redevelopment Area side Speedway. This area would offer business In its report to the sponsors, RCLCO identified services specifically catering to area needs, includ- the opportunity for the Speedway submarket to ing service retail and city services (fire and police capture approximately 100,000 square feet of addi- stations). Additionally, retail that does not com- tional regional retail each year over the next five pete with the northern end of Main Street could years. In assessing the best locations to capture be viable and supported by the adjacent 4,000-plus this opportunity, the panel felt that the optimal employees. location would be in the second redevelopment area, approximately one mile northwest of the If it is to thrive, the Town Center must be special- Town Center. ized, clustered, and concentrated in a compact and defined area. Creating energy along Main Street Although retail in Speedway is not presently requires that for most of its length, both sides of strong, expanding the base by redeveloping and the street become animated with a mix of retail, strengthening the existing centers would enable service, and entertainment between the entrances Speedway to draw patrons from the underserved to long-established industries. Perhaps one of the western half of Indianapolis. Investment in rede- most critical and essential elements to the success veloping this area could also serve as a catalyst

Speedway, Indiana, May 12–15, 2008 19 and funding source for the redevelopment of the museums, and an Indianapolis automotive history Speed Zone or other parts of Speedway. The panel museum. When the museum is operating, sup- recommends that retail tenants at this location be porting services and programming, such as a mo- mostly national and lifestyle oriented. tor market for vintage and classic autos, events, classic auto parts marts, and conferences, could be Museum/Entertainment/Retail developed using the hotel and conference center, parking areas, and possibly other new facilities de- The panel learned that multiple automotive- veloped adjacent to the IMS in this area. themed entertainment venues currently operate Creating such a venue would enable this market inside the IMS track. They offer hands-on oppor- to serve a year-round audience. It would be open tunities to experience the Indianapolis 500 motor during IMS events, and at other times it would sports driving experience. Although the panel did feature themed vendors that represent various not have access to these venues during its visit, it motor sports stakeholders, such as drivers, au- understands that as the popularity of motor sports tomotive manufacturers, apparel, antique car continues to grow, opportunities for interactive shows, and technology demonstrations that could experiences will also increase. As discussed earli- use the track, creating an additional draw for the er, the panel recommends that new entertainment public. To broaden the automotive cultural cen- venues be located in the Museum/Entertainment/ ter’s appeal, the panel suggests that rotating ex- Retail district to provide the critical mass nec- hibit space be developed to provide new attrac- essary to support the Town Center retail along tions that showcase special antique and classic Main Street. auto collections. The panel further recommends that the IMS move its existing museum from the infield to this district to serve as the initial anchor of an automotive cultural center for race museums, antique car

20 An Advisory Services Panel Report Sustainability

he panel was asked to comment on inno- United States, ranking 96 of 100 in carbon emis- vative, sustainable energy production and sions from residential electricity consumption. management strategies that could be imple- This singular reliance on coal makes Indianapolis T mented in the Speed Zone study area. The and Speedway particularly vulnerable to future panel commends the town of Speedway for its en- carbon regulation and supply disruption. couragement of green building and environmentally sustainable development and further encour- The financial costs of energy consumption are un- ages the town to adopt green building and energy der ever-increasing inflationary pressures. As conservation as a part of its code. natural gas and oil resources become depleted and more concentrated in regions of conflict, the price The panel supports the concept proposed by the of natural gas, gasoline, and electricity rises. Rap- master developer to develop green buildings idly increasing demand for energy, particularly in throughout the project. Green building has been China and the developing world, has resulted in shown to cost less to maintain, provides a health- dramatically increased primary fuel costs. ier indoor environment for occupants, and com- mands higher rent premiums and faster leasing As the United States inches closer toward green- rates in many markets. The panel supports the house gas regulation because of concerns over master developer’s plan for design guidelines that climate change, the cost of coal and other fossil meet a basic set of requirements and encourage fuel–derived electricity will increase further. Pop- sustainable energy measures, along with support- ulation growth increases loads on already taxed ing educational material to promote green build- transmission lines, resulting in higher delivery ing to an educated pool of local designers and charges for electricity transport. Environmen- builders. tal concerns and the NIMBY effect make building new transmission corridors costly, time consum- The panel noted that the study area has a signifi- ing, and sometimes impossible, further increasing cant constraint to consider when evaluating green the price pressures on electricity and natural gas. building and capital-intensive energy-related strategies: the very low cost of purchasing elec- Concurrently, the environmental costs associated tricity in Indiana. At the time of this report’s writ- with energy consumption continue to rise. Con- ing, electricity was priced at 5 cents per kilowatt- sensus has been solidified surrounding mankind’s hour (kWh), which is significantly lower than in contribution to climate change, and energy-related many other states. Although the panel under- carbon dioxide emissions (the primary cause of cli- stands that most likely this price will not remain mate change) make up 82 percent of U.S. anthro- at such a low level, such energy costs may make pogenic greenhouse gas emissions. achieving returns on capital investment harder. Investment in energy conservation measures, Depletion of natural gas reserves combined with however, should still be considered an integral increased energy security concerns has led to the part of Speedway’s redevelopment, particularly proposal of more than 150 new coal-power plants as energy costs continue to rise. in the United States, resulting in projections from the Energy Information Administration that near- Indiana is powered almost exclusively by coal, ly 60 percent of new power plant capacity built in with essentially no supply diversity. A recent re- the United States over the next two decades will port by the Brookings Institution lists Indianapo- be powered by coal, the dirtiest and most carbon- lis as one of the most carbon-intensive cities in the intensive fossil fuel.

Speedway, Indiana, May 12–15, 2008 21 The implications of the rising economic and envi- ers and other potential commercial users. Immedi- ronmental costs of energy reach across the econ- ate users would be Allison Transmission, Praxair omy as a whole. However, there are very specific Surface Technologies, and Zipp Speed Weaponry, and actionable implications for the design, construc- each of which either operates individual central tion, and operation of neighborhoods and communi- plants or would like to purchase the products of ties. Communities are long-term, capital-intensive the plant—compressed air, steam, chilled water, investments that require years to build and are ex- hot water, and electricity. pected to perform for decades into the future. Although the plant may meet the local industries’ Electricity is of particular concern. For the United needs in an economical way, it is not optimal from States as a whole, more energy is consumed in the an environmental perspective. Additional infor- production, delivery, and consumption of electric- mation is required to evaluate the environmental ity than by any other single source. For most indi- performance, including (a) type of fuel, (b) gener- vidual communities, the reliance on electric power ating capacity, (c) additional potential users, and is even greater, because electricity accounts for (d) percentage of waste heat and other by- more than 70 percent of residential and commer- products to be used. cial source energy consumption. With communities so dependent on electrical energy, it is para- For example, generating electricity using natural mount to understand the associated primary risks: gas–fired turbines is likely to have a lower carbon price escalation and supply disruption. dioxide emission factor than using coal but may result in higher emissions of air pollutants locally Price escalation is driven by four principal fac- (Speedway and Indianapolis currently do not com- tors: (a) resource depletion, (b) rising demand, ply with U.S. Environmental Protection Agency (c) energy security and environmental concerns, air quality standards). In contrast, providing cen- and (d) transmission-line congestion. These factors trally produced chilled and hot water may prove affect the price of electricity in profoundly differ- highly efficient and yield substantial cost savings ent ways and combine to ensure that, even with when compared to the present system where each changes in market conditions, the cost of electric- user operates its own plant. One alternative en- ity is likely to continue to rise in the coming years. ergy approach that is likely to be cost-effective in At $50 per metric ton, the price of coal power may this type of setting is solar thermal panels on the increase by a minimum of $0.05 per kWh (doubling roof to preheat water. the current electricity cost at Speedway). For the Supply diversity can also be achieved by incorpo- same carbon cost, the cost of high-efficiency natu- rating on-site renewable power and developing a ral gas plants may increase by slightly more than centralized combined heating, cooling, and power- $0.02 per kWh, highlighting the need for supply generation facility. A well-designed central power diversity in a carbon-constrained environment. system can achieve efficiencies that are two or Because energy conservation and sustainabil- three times higher than those of decentralized ity are important to the long-term success of the coal power plants, reducing risks associated with Speed Zone’s redevelopment, the panel encourag- rising primary fuel costs and emissions regula- es additional in-depth analysis to develop a ratio- tions. Additionally, embedded power systems in- nal set of requirements, guidelines, and incentives crease electricity supply stability and reliability, to guide the process. potentially providing critical power during utility grid failures—a significant value proposition for Think Creatively beyond the Central businesses. Plant The panel understands that a combination of One important energy strategy in the planning building-level energy efficiency standards, well- stages is the development of a new central utility designed infrastructure components, and on-site plant proposed by Citizen’s Thermal Energy. This generating facilities could show positive return plant would serve the study area’s industrial us- on investment while reducing carbon emissions,

22 An Advisory Services Panel Report increase the marketability of the project, and in- all phases of the project, beginning with a sustain- sulate Speedway from future risks. The panel able design process that evaluates the costs and recommends the development of a comprehen- benefits of each strategy. Particular consideration sive energy master plan for the project that fully should be given to strategies that link to the exist- evaluates the most cost-effective strategies for ing resources of the site and solve more than one central plant design as well as the appropriate po- problem at a time. tential partnerships with third parties to facilitate implementation. For example, Indianapolis receives a significant amount of rain year-round, while tempera- tures fluctuate significantly by season. It is an Consider Other Sustainability ideal climate for installation of green roofs, which Measures may require only minimal irrigation but assist in stormwater management and provide substantial Many technologies and strategies that promote building insulation and energy conservation. sustainability, longevity, and resource efficiency can be layered into the overall project and individual buildings. Strategies should be integral at

Speedway, Indiana, May 12–15, 2008 23 Market Strategy

he panel was impressed by the efforts and colors of brick is especially common throughout rapid progress the sponsors have made since Indianapolis and Speedway. Most buildings facing they began planning. The panel believes that Main Street should be two stories at the sidewalk T continuing to grow stakeholder cooperation line with additional floors set back from the street. and communication in conjunction with success- The panel recommends that, to the extent feasi- ful marketing strategies will yield the maximum ble, the existing Main Street historic buildings be return for Speedway’s investment. The panel en- retained, restored, and reused. courages the SRC and the town to create a business assistance program to support existing and Storefronts new enterprises and to provide overall manage- Architectural character is one of the most impor- ment, marketing, maintenance, and safety to en- tant elements in place making. The panel recom- hance the district. mends implementing architectural standards as One of Speedway’s greatest and best-known as- a guiding element within the master plan. Stan- sets is its history. The panel recommends that, dards should require authentic historic character rather than invent an entirely new image, Speed- in proportions, height, rhythm, and massing and way’s rich history as the birthplace of American limit building materials to brick, stone and wood, motor sports continue to be the town’s theme. and glass storefronts. Upper-level floors should This theme is particularly relevant in the redevel- have windows that are vertical in proportion and opment of the Town Center district. With such a smaller in size than are presently proposed. strong and integral physical connection, the panel believes the perceived image of the historic track Signs and Awnings and the town should be the same. Updating of awnings and signage yields significant and immediate visual impact at low cost to Use History to Create Main Street both buildings and commercial districts. Design guidelines for awnings, windows, and exterior Historic districts are proven economic generators signs should be integral to the overall building for downtown commercial districts. Historic sites standards to create eye-catching interest and a are one of the leading destinations for vacationers colorful streetscape palette. In general, awnings and tourists. Given Speedway’s 100-year history, should be solid color, made of a canvas type of ma- the SRC should consider implementing strict but terial, and designed in a straight plane rather than practical building standards that require careful in a radius. Internally illuminated signage should preservation of existing buildings and compatible be avoided, and sign letters should be projecting design of infill buildings. Design standards should type. consider the following elements. Road Standards Building Facades Speedway will be investing significant capital in The panel recommends that new buildings devel- rebuilding both 16th and Main streets. Rebuilding oped in the Main Street area be designed to follow these streets and streetscapes will significantly period proportions, materials, and details histori- improve the appearance and brand of the Speed cally common in the region. The panel noted that Zone area. In reviewing proposed streetscape and prevalent styles include industrial glass wall and on-street parking plans, the panel recommends art deco buildings. The use of multiple types and that designers consider using the best practices

24 An Advisory Services Panel Report for traffic calming, sidewalk commerce and dining, The panel believes that the Brickyard name re- and bicycle and pedestrian circulation and safety. inforces the community’s historic character and appeals to a broad demographic base, including Brick Theme young families and tourists. The panel under- The IMS is known worldwide as the “The Brick- stands that the rights to the Brickyard name are yard.” As part of the improved branding strat- controlled by IMS and recommends that the town, egy, the panel recommends that brick be used SRC, and IMS study the issues and opportunities. as the primary material for building facades and Charleston, South Carolina, perhaps represents streetscapes and for pedestrian crossings and oth- one of the nation’s leading models of how careful er street elements. The panel considers this an op- presentation, historic restoration, and design man- portunity for Speedway and the IMS to link their agement can yield a significant, sustained, long- identities in a positive manner that reinforces term economic benefit for an entire region. That their unique historical association. city’s mayor, Joseph Riley, has served as its brand manager for over 30 years, successfully creating Refine the Brand an instantly imaginable “Charleston” brand. Speedway, too, has an opportunity to become an To best realize its retail opportunities, the panel imaginable brand as one of the region’s few histor- recommends that Speedway refine its brand and ic downtown shopping districts and the only one create a unique identity that clearly evokes an im- anchored by the world-famous Indianapolis Motor mediately recognizable sense of place. Although Speedway. The town’s small scale, combined with the panel approved of the current branding con- a special commercial mix and convenient access, cept of the “Speed Zone—Speedway’s Future can improve the quality of life for Speedway resi- Starts Now,” this identity is an abstraction and dents and become an important regional destina- does not leverage the full opportunity to brand the tion. A well-planned and vibrant historic district community as a destination. will significantly contribute to the quality of the The panel believes that as a brand “Brickyard” visitor experience and further enhance the town provides an immediate image of the world’s most and track’s intertwined reputation. famous automotive racing place. As with the Em- pire State Building or the Brooklyn Bridge, people worldwide know where and what the Brickyard represents. Speedway and the IMS should trans- late the Brickyard brand identity to the Speed Zone’s architecture. This strategy will create icon- ic imagery around which Speedway and the track can redevelop their retail, entertainment, cultural, and industrial environments.

Speedway, Indiana, May 12–15, 2008 25 Implementation Strategies

f Speedway’s goal is to attract new employ- demand grows. The timing of the parking garage ment, retail, and residential development, then construction is important to ensure that it is not new zoning and development guidelines and ap- provided too soon and not delayed so long that a I proval procedures for the Speed Zone must be perceived parking problem hinders business. clear, understandable, and simple. They should provide and describe a development process that The Speed Zone’s planned BID must maintain is certain, timely, and predictable. In general, the regular, consistent, and effective communication development community is reluctant to become with all stakeholders and the primary customer involved and invest in projects where localities base so that the BID becomes a positive feature offer only uncertainty, delay, and unpredictable for the town, the merchants, and the customers. outcomes. Regularly scheduled public meetings should ad dress issues that arise, provide updates, and re- As the SRC and the master developer work to ceive community input concerning problems. finalize clearly stated, uniform streetscape stan- Funding for district marketing could be an im dards for the Speed Zone, including cross sections portant BID function that helps build and estab- and technical specifications for light poles, bench- lish the identity. Activities that market the area es, pavers, trash receptacles, street trees, sign should include IMS-related events, other special age, and other streetscape features, the question events, group advertising for Main Street busi- of who pays for these features has not been fully nesses, marketing brochures, signage, and orga- addressed. Typically, communities pay for and nizing of festivals and thematic events. control installation of such features along street frontages through capital improvement programs Funding Strategies funded by general obligation bonds. In Speed- way’s case, the town and the developer could con- Because the national economic situation is cur- sider creating a cost-sharing program, implement- rently in decline, fewer tools are available to fi- ing a business improvement district (BID) to fund nance infrastructure and redevelopment. The new projects, and, if available, using state and fed- panel recommends that financing from general eral grants as additional support. obligation bonds and special revenue bonds may be one of the more readily available and practical Providing public parking is another important fea- sources of funding. General obligation bonds nor- ture to be addressed as new, higher-density de- mally fund public capital projects such as schools, velopment occurs along Main Street. Although the roads, fire stations, and sewer and water lines, panel does not think a short-term need exists for whereas special revenue bonds are typically used the proposed structured parking garage, when it for fee-based enterprise-type facilities such as is necessary, funding could be derived from special parking garages. Ideally, user fees will pay for the revenue bonds paid for by parking fees. Alterna- facility’s construction and debt service. tively, the town could create a Main Street parking district that develops, regulates, and funds all The panel recommends the town and the SRC on- and off-street parking in the district. consider activating Speedway’s Community De- velopment Corporation to use that organization Given the ramp-up that will be required to sup- as the sponsor to seek state and federal grant op- port the development of new parking, some oper- portunities available to Internal Revenue Code ating budget revenue may have to be earmarked section 501(c)(3) nonprofit corporations. In addi- to cover possible shortfalls in early years while tion, the town may assist in obtaining grant mon-

26 An Advisory Services Panel Report eys through Economic Development Assistance communication, cooperation, and mutual trust or Community Development Block grants to help that each stakeholder will do its part as a member with streetscaping, facades, and other public of the “partnership.” purposes, as well as marketing activities for the Speed Zone. The primary team of public/private partners must be identified and charged with the ongoing effort Micro-loans are an important means of providing of meeting on a regularly scheduled basis to lead lower-interest loans for small businesses need- and track ongoing programs and to obtain and di- ing financial assistance up to $50,000. The SRC rect financial, staff, and programmatic resources should investigate the availability of U.S. Small as needed. Program financing should include all Business Administration–approved micro-loan possible public and private funding sources—tax lenders who can provide assistance to the dis- revenues, private investments, grants, donations, trict’s small businesses. and loans.

The master plan offers significant opportunities The panel believes that a public or private founda- to form public/private partnerships. The cooperation should be investigated to determine whether tion of the Indiana Economic Development Cor- its creation would help attract additional funding. poration, Indy Partnership, Indianapolis Econom- The panel recommends investigating the possibil- ic Development, Inc., IMS, the town, and startup ity of establishing a community development foun- businesses is essential. Careful thought should dation initially funded by the IMS (or other major be given to establishing an incubator facility sup- Speedway employers). Foundations are highly ported by public/private sources with sponsorship regulated organizations, and as they investigate from the combined motor sports higher education this opportunity, the stakeholders would benefit programs. from specialized legal advice about how to create, fund, and distribute moneys. The panel also believes that an ombudsman knowledgeable about economic development pro- Community investment tax credit (CITC) programs and processes is needed to help identi- grams are another potential funding source. In fy governmental incentive programs, available lieu of a formal foundation structure, CITC pro- grants, and tax credit programs. Knowledge- grams enable private businesses to purchase able, professional assistance available for the SRC tax credits by providing donations to an autho- and businesses to help submit applications and to rized 501(c)(3) nonprofit organization, such as the provide necessary advice to better secure public Speedway Community Development Corporation. grants, tax credits, and other incentives is vital to the overall redevelopment effort in Speedway. Perhaps the best national example is the state of Maryland’s CITC, operated by the Maryland De- Most important, the panel believes that the es- partment of Housing and Community Develop- sence of a successful public/private partnership ment. This program allows a 50 percent tax credit is the recognition that, to achieve common goals, for all moneys donated to a qualifying 501(c)(3) en- ongoing cooperation and collaboration among the tity. Maryland’s CITC allows a maximum $250,000 various stakeholders are necessary to mold and donation, from which a company can get a direct nurture a shared vision. All parties must do their tax credit of $125,000 while also claiming the full best to achieve the group’s objectives. $250,000 as a federal tax deduction. This is an in- ventive way a company can help fund projects An important first step is to clearly identify all that will benefit its business, such as a BID or fa- stakeholders at all levels, determine their roles cade improvement grants, while at the same time and responsibilities, and assign their duties to reduce its overall tax liability. help achieve the common goals. Through meetings and discussions, each stakeholder should Creating a CITC for Speedway may require state identify and discuss what resources can be pro- enabling legislation. Indiana’s state and local legis- vided as well as what and how additional resourc- lature delegations should be full “partners,” along es can be sought out. This process requires open with the governor’s office, not only in creating this

Speedway, Indiana, May 12–15, 2008 27 type of funding program for Speedway, but also in designing the overall program and its funding. Similarly, the panel recommends that the SRC retain the expert advice of a public finance firm that specializes in structured financing mecha- nisms available in the state of Indiana. This expert should also serve as an adviser to the town on special legislative issues that could be enacted to assist in funding Homeland Security–required road relocations, industrial development bonds, and specialized financing or funding for other aspects important to the surrounding district.

28 An Advisory Services Panel Report Conclusion

peedway is on the rebound. It is a town tionship akin to a partnership. Without IMS’s full with plans to create a distinctive and unique engagement and participation as a partner to inte- sense of place and a mission to remain a su- grate IMS events, attractions, and activities seam- S perstar in the fast-expanding universe of lessly with the town’s place-making investments, automotive racing. The infrastructure being de- the town may have difficulty realizing the Speed veloped by the Speed Zone master plan is a well- Zone Master Plan. Thus, the panel encourages thought-out road map for the town’s drive toward Speedway to actively seek and embrace addition- its future. Although all roads to the future have al partners that can assist it to fund, finance, and potholes, detours, and sometimes delays, if deter- bring the essential tools necessary to implement mined leadership follows its map—in this case the the master plan. Speed Zone master plan—the destination can be reached. In that vein, the panel feels the town must also think outside its municipal “box.” The town should The panel felt that the town, its implementation constantly seek to learn about and use best prac- agencies, and its development partners have the tices to build an internationally recognized brand ability and the resources to bring the Speed Zone that immediately evokes not just the IMS race- Master Plan from paper concepts to buildings track, but also the special place that Speedway and places. Especially in the early stages and at is becoming. Building and polishing their brand a time of economic slowdown, the panel believes should be a driving force of the master plan and that maintaining and even accelerating momen- the stakeholders. To arrive at its future, Speed- tum and showing progressive tangible results are way should consider positioning itself as the critical components for success. The process would unique American racing destination. To differenti- be best nurtured by creating formal and informal ate itself from NASCAR, Speedway should reach partnerships and associations by and between the back to its historical roots as well as forward to stakeholders. In this case, the stakeholders are its development as a world-class technology and more than the town, the IMS, local investors, and education center with an exceptional year-round affected businesses. They are everyone in Indiana visitor experience. Locally, Speedway should cre- and greater Indianapolis. Thus, the panel believes ate new places that are not now there, such as the that creating the Speed Zone should be an area of proposed Town Center, to capture a larger share critical state concern. of year-round local and regional business. Becom- Everyone in Indiana has an interest in the success ing a new place and destination not just for race of the IMS and the millions of dollars that venue fans but also for the community is essential. Mak- alone brings to the entire state because of its events ing that place sustainable must be based upon the and existence. Moreover, as a state with a large needs and desires of the community. portion of its industrial job base entrenched in the Speedway was founded as, and always has been, a rapidly changing, potentially declining automotive city driving toward the future. Over the past cen- industry, investing in a technological and educa- tury, it was a place where ideas created innovation center that is the basis for future automobiles will help maintain not only employment but also tive technologies that formed part of America’s valuable skills and new centers of innovation. industrial might, where inventors and innovators transformed dreams into automotive history and The panelists agreed that the Speed Zone and the the fastest racing cars on the planet. It is a place IMS must have a strong and close working rela- where amazing things have happened because

Speedway, Indiana, May 12–15, 2008 29 of its spirit, courage, and willingness to embrace potential to create world-class destinations is at change. hand. The panel encourages Speedway to continue to set high standards and exceed them. Be the The panel applauds the community for its fore- best and expect the best. As the panelists com- sight and willingness to embrace the future while mented during their presentation, Speedway is not losing sight of the past and the traditions and once again creating its future. Indeed, with such legacies that created the unique history, indus- an illustrious history, the town’s future deserves tries, and sense of place that Speedway is. From to be no less than amazing. its commitment to leadership and investment, Speedway has the potential to create several new urban places that can invigorate and define it as one of the leading centers not just of racing but of worldwide automotive racing technology. The

30 An Advisory Services Panel Report About the Panel

Michael J. Maxwell trict Council Executive Committee, and the ULI Inner City Council; was co–vice chair of the 2008 Panel Chair ULI Fall Meeting; and has served on other ULI Miami, Florida Advisory Services panels. He is a member of the Greater Miami Urban League and founder of New Nationally recognized for achievements as a Urban Development LLC, a not-for-profit afford- developer and workout specialist, Maxwell has able housing company. spent over 30 years acquiring and developing nearly $1 billion in real estate assets, primarily in Florida and the Caribbean. He is managing part- Joseph Davis ner of Maxwell + Partners, LLC, Miami, which of- Silver Spring, Maryland fers both development and advisory services. In 2007, Davis established his own planning con- The firm specializes in urban infill development sulting firm, known as Community Planning Solu- and is noted for its innovative project solutions tions, Inc. His practice is devoted to advising both creating new market opportunities and products. public and private sector clients on planning, zon- The team has delivered more than 2 million square ing, and development-related issues and their so- feet of mixed-use, office, retail, warehouse/dis- lutions. Davis has extensive expertise in the areas tribution, resort hotel, residential, and specialty of public policy formulation and implementation. products. The firm provides consulting in market In his 35-year career, he has designed and imple- creation for urban redevelopment. As advisers, mented creative solutions to complicated public the firm’s participation in workouts, restructur- policy issues, including development of legislation ings, asset management, construction completion, to improve public procedures; provided leadership and disposition exceeds $300 million. Expert wit- in managing complex development review pro- ness services on asset evaluations, workout strat- cesses; promoted creative ways to improve public egies, and dispute resolution are also offered. plan review and administrative procedures; and encouraged public/private partnerships to achieve As a developer and adviser, Maxwell is known for better community development. visioning niche markets, sensitive place making, green/sustainable strategies, and exceptional ar- In May 2007, Davis ended his public career after chitecture that create high-value-added commer- serving for over three years as the director of re- cial and residential products. A trained architect development for Montgomery County, Maryland, and urban planner, he is a licensed real estate and where he led the county’s efforts to revitalize and mortgage broker; holds the American Institute of redevelop downtown Wheaton. Davis also led the Certified Planners designation; has earned awards effort to amend the Wheaton Retail Preservation for preservation, industrial, and redevelopment Overlay Zone to encourage larger scale, transit- projects; and earned a BA from the University of oriented development near the Wheaton Transit Texas and a master of planning from the Univer- Station. The legislation also encourages the set- sity of Virginia. aside of small business space at street level to help retain the street-level commercial character that Maxwell is also an adjunct professor of business, exists in Wheaton. Nova Southeastern University MBA Real Es- tate Program. He is a full member of the Urban Before his service for Montgomery County, Da- Land Institute, the ULI Florida/Caribbean Dis- vis was the chief of the Development Review Di-

Speedway, Indiana, May 12–15, 2008 31 vision of the Maryland–National Capital Park & retail village centers with the well-known town Planning Commission’s Montgomery County De- planner Andres Duany. partment of Planning. He managed the county’s subdivision and site plan approval programs, led Steve Graham the zoning legislation program, and directed the department’s inspections and plan enforcement Kansas City, Missouri responsibilities. As vice president of destination development, Davis is an active member of the Urban Land In- Graham leads RED Development’s Destination stitute and has served on the Executive Commit- Development team. In addition to his destination tee of ULI’s Washington District Council since development experience, Graham has an exten- 2002. He has been a guest lecturer at the Univer- sive background in the use of Sales Tax Rev- sity of Pennsylvania’s School of Design and the enue (STAR) bonds and tax increment financ- University of Maryland’s graduate program in ing (TIF). STAR bonds are a public financing urban planning, discussing regulatory planning, tool, similar to TIF bonds. The major difference growth management, and urban redevelopment is that STAR bonds have access to an additional topics. source of revenue—state sales tax revenues.

Davis earned an MA in public administration from Other states across the country are current- the University of Northern Colorado and a BS ly passing legislation to create STAR bonds to in political science and geography from Florida help attract destination developments. With this State University. In 2001, Davis completed the combined experience, Graham brings a thorough Smart Growth Leadership Program of the Mary- understanding of all of the elements involved in land School of Public Affairs at the University bringing destination developments from concept of Maryland. to reality. Graham received a civil engineering degree and Robert Gibbs master’s degree in business administration from the University of Wisconsin–Madison. He also Birmingham, Michigan earned a master’s degree in architecture from the Gibbs is a noted specialist in retail development University of Kansas. and new town planning. During the past 20 years, he has been very active in developing innovative Dan Martin and practical methodologies for applying the lat- Chicago, Illinois est in modern retail planning and merchandising to the problems of small towns and large cities as Since 1987, Martin has completed more than 300 well as several traditional new towns. The proj- assignments in his 21 years with Economics Re- ects have been located in San Elijo, California; search Associates (ERA). He came to ERA as a Milwaukee, Wisconsin; West Palm Beach, Florida; real estate feasibility consultant and continued St. Paul, Minnesota; Galveston, Texas, as well as that work for many retail, residential, office, and other locations. industrial projects but branched out to add many other areas of expertise. Gibbs regularly consults with many national retailers and small developers. In addition, he has Martin has directed or participated in numerous been a leader in the new urbanist movement, resort and vacation lodging facilities. The markets working on projects in The Kentlands, Maryland; for this type of facility have become increasingly Thayer Street, Providence, Rhode Island; High specialized. Some of the areas that he has worked Street, Columbus, Ohio; 5th Avenue South, Na- on recently include resorts and ranch vacation fa- ples, Florida; and Downtown 2016, Birmingham, cilities for eight areas, principally in the south- Michigan. Gibbs also has been very active in re- west; waterpark hotel projects in more than ten search and planning several traditional new town locations; golf resorts in the south, southwest,

32 An Advisory Services Panel Report and Midwest; and state park lodges in seven Heather Rosenberg state parks. Irvine, California He has also directed or participated in numerous retail, museum, recreation, and commercial attrac- As an ecologist, Rosenberg takes an integrated tion studies. They include theme and waterpark systems approach to environmental problem solv- studies in ten metropolitan areas; urban retail/en- ing on land use, infrastructure, and building proj- tertainment centers/districts in seven metropoli- ects. Working closely with developers such as tan areas; science, aviation, environmental dis- Lennar, Rancho Mission Viejo, Forest City, and covery centers visitors centers, aquariums, and Thomas Properties Group, she has led the sustain- children’s museums in more than 15 market ar- able design process at the community level. She eas; and corporate visitor centers or museums for has conducted life-cycle analyses of buildings and four companies. detailed sustainability audits for organizations such as University of California, Santa Barbara, In the public recreation sector, Martin has pre- and the Monterey Bay Aquarium. She has exper- pared market and financial feasibility studies, tise in facilitation and mediation and has taught valuations, and needs analyses for park master university-level environmental science courses. plans, golf courses, and other recreational facilities in Illinois, Indiana, Louisiana, Michigan, Missouri, Rosenberg serves as director of sustainable com- New Mexico, Ohio, and Wisconsin. munity services at CTG Energetics. She has played a key role in the development of the CTG As economic development professionals have be- Sustainable Communities Model™ and has helped come more interested in tourism as a form of eco- implement its findings on multiple projects to nomic development, Martin has begun to work help developers and design teams find the most on a number of tourism development as econom- environmentally preferable and cost-effective ap- ic development assignments. His expertise in the proaches to sustainable design. She has managed leisure-time facilities that are the building blocks and currently is managing the LEED® (Leader- of a community’s tourism product has been a key ship in Energy and Environmental Design) and factor in these studies. Similarly, he has complet- sustainability services for dozens of CTG projects. ed many economic impact studies for new facilities She is a LEED Accredited Professional and Certi- that help identify and scale their value in local, fied Permaculture Designer. county, and state economies. His education includes an MBA from the Uni- versity of Texas at Austin and a BS in architecture from the Catholic University of America in Washington, D.C. Martin has published numerous articles in professional publications such Urban Land, Planning, and Fun World and has addressed meetings of the American Planning Association, the Urban Land Institute, the Coun- cil on Urban Economic Development, and other professional groups.

Speedway, Indiana, May 12–15, 2008 33 ULI–the Urban Land Institute 1025 Thomas Jefferson Street, N.W. Printed on recycled paper. Suite 500 West Washington, D.C. 20007-5201