Rail Yards Redevelopment

AN ADVISORY SERVICES PANEL REPORT Albuque rque Ra il Ya rds Albuque rque, New Mexico

Urban L an d $ Ins ti tute Albuquerque Rail Yards Albuquerque, New Mexico

Redeveloping the City’s Historic Rail Yards

February 24 –29, 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. Tcommunities 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, represent ing t he of real estate and land use policy to exchange entire spectrum of the land use and develop ment best practices and serve community needs; disciplines. Professionals represented include de - velopers, builders, property owners, investors, ar - • Fostering collaboration within and beyond chitects, public officials, planners, real estate bro - ULI’s membership through mentoring, dia - kers, 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 development 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 by Cary Sheih.

2 An Advisory Services Panel Report About ULI Adviso ry Se rvices

he goal of ULI’s Advisory Services Program pants in ULI’s five-day panel assignments are is to bring the finest expertise in the real able to make accurate assessments of a sponsor’s estate field to bear on complex land use plan - issues and to provide recommendations in a com - Tning and development projects, programs, pressed amount of time. and policies. Since 1947, this program has assem - bled well over 400 ULI-member teams to help A major strength of the program is ULI’s unique sponsors find creative, practical solutions for ability to draw on the knowledge and expertise of issues such as downtown redevelopment, land its members, including land developers and own - management strategies, evaluation of develop - ers, public officials, academics, representatives of ment potential, growth management, community financial institutions, and others. In fulfillment of revitalization, brownfields redevelopment, mili - the mission of the Urban Land Institute, this tary base reuse, provision of low-cost and afford - Advisory Services panel report is intended to able housing, and asset management strategies, provide objective advice that will promote the re - among other matters. A wide variety of public, sponsible use of land to enhance the environment. private, and nonprofit organizations have con - tracted for ULI’s Advisory Services. ULI Program Staff Marta Goldsmith Each panel team is composed of highly qualified Vice President, Community 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. Director, Advisory Services ULI’s interdisciplinary panel teams provide a Cary Sheih holistic look at development problems. A re - Senior Associate, Advisory Services spected ULI member who has previous panel Matthew Rader experience chairs each panel. Senior Associate, Advisory Services

The agenda for a five-day panel assignment is in - Caroline Dietrich tensive. It includes an in-depth briefing day com - Panel Coordinator, Advisory Services posed of a tour of the site and meetings with spon- Nancy H. Stewart sor representatives; a day of hour-long interviews Director, Book Program of typically 50 to 75 key community representa - tives; and two days of formulating recommenda - Laura Glassman, Publications Professionals LLC tions. Long nights of discussion precede the Manuscript Editor panel’s conclusions. On the final day on site, the Betsy VanBuskirk panel makes an oral presentation of its findings Art Director and conclusions to the sponsor. A written report is prepared and published. Martha Loomis Desktop Publishing Specialist/Graphics Because the sponsoring entities are responsible Craig Chapman for significant preparation before the panel’s visit, Director, Publishing Operations including sending extensive briefing materials to each member and arranging for the panel to meet with key local community members and stake - holders in the project under consideration, partici -

Albuquerque, New Mexico, February 24 –29, 2008 3 Acknowledgments

n behalf of the Urban Land Institute, the The panel extends particular thanks to Roger panel thanks Mayor Martin Chavez, Coun - Schluntz, dean of the School of Architecture and cilor Isaac Benton and his staff, the city of Planning at the University of New Mexico, for OAlbuquerque, the WHEELS Museum, and preparing comprehensive briefing materials and the University of New Mexico School of Architec - serving as an ongoing source of technical informa - ture and Planning for sponsoring the study of the tion about the site; to Tom Pederson of the Uni - Albuquerque rail yards. versity of New Mexico for technical and graphic support; to Kara Shair-Rosenfield of Councilor The panel also recognizes the numerous other en - Benton’s staff for her guidance and knowledge of tities that contributed to its success, including the the Albuquerque scene; and to Leba Freed, presi - Albuquerque Convention and Visitors Bureau, dent of the WHEELS Museum. Bernalillo County, the Albuquerque Hispano Chamber of Commerce, Albuquerque Studios, Finally, the panel appreciates the participation of Build New Mexico, the City of Albuquerque Land - the many community members, including resi - marks and Urban Conservation Commission, the dents of the Barelas and South Broadway neigh - City of Albuquerque Planning Department and borhoods, and other individuals who contributed Historic Preservation Planner, the Greater Albu - their time, experience, and knowledge of all things querque Chamber of Commerce, the Mid-Region Albuquerque, to the visioning process for the rail Council of Governments, the National Hispanic yards. Your participation was vital to recommen - Cultural Center, the Romero-Rose Company, the dations set forth in this report. state of New Mexico, and the Urban Council.

4 An Advisory Services Panel Report Contents

ULI Panel and Project Staff 6 Foreword: The Panel’s Assignment 7 Market Potential 12 Planning and Design 22 Development Strategies 30 Implementation 32 Conclusion 38 About the Panel 39

Albuquerque, New Mexico, February 24 –29, 2008 5 ULI Panel and Pr oject Staff

Panel Chair Philip Hart President Christopher W. Kurz Hart Realty Advisors President/CEO Los Angeles, California Linden Associates, Inc. Baltimore, Maryland Anita Morrison Principal Panel Members Bay Area Economics Washington, D.C. Guillermo Aguilar Principal ULI Project Staff GKK Works Irvine, California Cary Sheih Senior Associate Luis Belmonte Advisory Services Executive Vice President AMB Property Corporation Matthew F. Johnston San Francisco, California Research Manager Initiatives Group Michael Berne President MJB Consulting ULI On-Site Coordinator New York, New York Caroline Dietrich Panel Coordinator Modesto Bigas-Valedon Advisory Services Architect/LEED AP Wallace, Roberts & Todd, LLC Philiadelphia, Pennsylvania Diana Gonzalez President DMG Consulting Services Miami, Florida John J. Griffin, Jr. Partner Edwards, Angell, Palmer & Dodge, LLP Boston, Massachusetts

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

Location map. t the invitation of the city of Albuquerque, COLORADO

the WHEELS Museum, and the Univer - Farmington sity of New Mexico School of Architecture Aand Planning, a ULI Advisory Services panel was convened to evaluate redevelopment Santa Fe

opportunities for Albuquerque’s historic rail Rio Rancho yards. Founded in 1912, and in use through the Albuquerque 1960s before closing its doors in the early 1990s, the rail yards, a once-thriving steam locomotive NEW MEXICO Clovis re pair operation, were at one time the city’s lead ing employer. Roswell

In 2007, the city of Albuquerque and the WHEELS Alamogordo Museum formed a partnership to purchase the rail Hobbs Carlsbad yards from Old Locomotive Shops LLC. The ac - Las Cruces quisition was made possible, in part, by grants from the New Mexico state legislature and Gover - TEXAS nor Bill Richardson. The Albuquerque City Coun - MEXICO cil appropriated more than 50 percent of the total cost to purchase the property, and the city became Regional map.

LOS ALAMOS the new owner of the old Santa Fe Railway rail MO yards on November 28, 2007. Santa Fe SANDOVAL S The city, the WHEELS Museum, and the Uni - McKINLEY 25 versity of New Mexico School of Architecture 40 Rio Rancho SANTA FE and Planning invited the panel to “evaluate and consider the site and its historic structures in the Albuquerque BERNALILLO 40 context of the city and its neighborhoods, and in - CIBOLA clude the WHEELS Museum in addition to eco - VALENCIA TORRANCE nomically viable commercial and/or housing op -

tions for redevelopment of the rail yards.” 25

SOCORRO CATRON Background LINCOLN The rail yards officially lie within the Barelas neighborhood, one of Albuquerque’s oldest, and adjacent to the South Broadway neighborhood. In the mid-1920s, South Fourth Street in Barelas Settled as a farming community and later shaped was designated part of Route 66 and the Pan by the establishment of the railroad in the 1880s, American Highway (U.S. 85), which helped estab - by the early 1900s, Barelas had flourished. Many lish a thriving commercial corridor active from the of its residents were employed by the Atchison, 1930s through the 1950s. The decline of the rail - Topeka and Santa Fe Railway. road industry and the construction of Interstate

Albuquerque, New Mexico, February 24 –29, 2008 7 In the background of this 25 negatively affected the community, as did the aerial view of Albu - urban renewal program of the 1970s, which led to querque, the Rio Grande industrial development replacing much of the flows along the city’s housing stock in south Barelas. However, the his - northwestern edge. toric Barelas neighborhood has added new ameni - ties in recent decades, including the National His - panic Cultural Center and the Albuquerque Hispano Chamber of Commerce, which have bol - stered its history and community character.

Along the eastern edge of the rail yards is the South Broadway neighborhood. Much of the com - Downtown Albuquerque’s munity’s growth took place between 1885 and central business district. 1925, following its founding by Antonio Sandoval, a wealthy landowner responsible for constructing the Barelas ditch, which drained and irrigated the surrounding area. As in Barelas, many of South Broadway’s residents made their living through agricultural pursuits before transitioning to jobs at the rail yards and the local iron foundry.

South Broadway urbanized rapidly during this pe - riod, only to suffer similar economic and popula - tion decline concurrent to that of the railroad in - dustry. Presently, efforts of organizations like the United South Broadway Corporation have pro - Right and right below: vided affordable housing for residents of the com - The historic Barelas munity. Coupled with local businesses, many auto - neighborhood, flanking motive-repair related, those efforts contribute to the northern edge of the the neighborhood’s identity. rail yards site, has deep ties to the property and The redevelopment of the rail yards provides is poised to benefit opportunity for Barelas, South Broadway, and economically from its downtown Albuquerque to enrich their respective revitalization. individual identities while rallying around a new collective identity to whose development each is crucial. Over time, residents of these communities have expressed both excitement and reservations regarding redevelopment plans for the rail yards and, given the personal ties many have to the his - tory of the rail yards, for good reason. Never - theless, successful redevelopment truly has the potential to be a force of unification for the com - munities, the city, and the state of New Mexico— also known as the Land of Enchantment.

Study Area Located just south of downtown Albuquerque, the 27.3-acre rail yards property is situated between Barelas and South Broadway—to the west along

8 An Advisory Services Panel Report 2nd Street in Barelas and to the east along Com - The 27-acre rail yards mercial Avenue in South Broadway. The north end with downtown Albu - of the property bottlenecks and shares its edge querque in the back - with a 7.2-acre parcel owned by the BNSF Rail - ground: promoting way. Over the south edge of the rail yards, BNSF pedestrian connections is still operationally active. Erected in the decade between the two is a pri - from 1914 to 1924 and coinciding with what is con - mary goal proposed by sidered one of the greatest periods of industrial the panel. design and advancement in building technology, the 14 buildings currently on the property are each original. The majority of these historic struc - tures occupy the northern half of the site, while the southern half contains an operable turntable used to rotate train engines for entry to or exit • Rehabilitation or adaptive use of historic buildings from the site. • What ideas can be applied to a high-quality re - The Panel’s Assignment habilitation and adaptive use of the main build - ings in addition to the WHEELS Museum? The sponsors provided the ULI Advisory Ser - vices panel the following four nonnegotiable para - • What sustainable design elements are appro - meters for considering the redevelopment of the priate for the buildings? rail yards site: • General uses

• The major buildings and smaller significant his- • What mixture and types of public and private toric buildings on the site must be rehabili - uses should be sought on the 27.3 acres? tated, with the exception of the wooden building, which should be relocated, and the north shower • Fourth Street in Barelas is a local business building, which is too dilapidated to save. district that serves the neighborhood. What kind of retail or other development will com - • The WHEELS Museum will locate its opera - plement and be compatible with, rather than tions into one or more of the historic buildings. create competition for, small businesses that • Redevelopment must have a mixed-income are serving the Barelas and South Broadway housing component, including at least 30 units communities? of workforce housing. ( Workforce housing is defined by Albuquerque ordinance as follows: • If the seven-acre site directly to the north of the “Dwelling units serving residents and their fam - 27-acre study site is also acquired, what would ilies whose annualized income is at or below 80% be the best use or mix of uses for that land? of the Area Median Income for Albuquerque … • Housing as adjusted for household size and determined by the U.S. Department of Housing and Urban • What types, density, price points, and design Development, and whose monthly housing pay - of mixed-income housing are feasible now and ment does not exceed 30% of the imputed in - in the future? come limit applicable to such unit or 35% under special conditions to be defined in the Work - • What tax benefits and other housing subsi - force Housing Plan.”) dies are available and advantageous in creat - ing mixed-income housing at this site? • The redevelopment must benefit and not harm the adjacent neighborhoods. • Transportation, transit, and connectivity Using these premises, the panel was asked to • What additional transit links to the site are focus on addressing the following questions: possible?

Albuquerque, New Mexico, February 24 –29, 2008 9 • Implementation

• What is the best way to ensure that high- Ha zeldine A venue SW quality job opportunities are available for res - idents of the Barelas and South Broadway SW et re neighborhoods? St Atlantic st Avenue ir SW F Firehouse • What phases of development are recom - Tank Shop mended, and in what order should they be Flue Shop implemented?

Boiler Shop S • What role should city, regional, state, and fed - anta Fe A venue SW eral governments play, including minimiza - Blacksmith Shop tion of permanent subsidies, in redeveloping Transfer Table this site?

Pacific A • What financing mechanisms, sources, and venue SW Machine Shop

W schemes are recommended, and what tax

e benefits are achievable and advantageous in

r t the public and private sectors at this site? C S romwell Avenue S d W n Storehouse o

c • What is the best way to deal with the various

e S easements—utilities, railroad, and the like— Turntable that constrain the site?

Summary of Recommendations Garfield Avenue SW Following an intense week of interviews, site tours, and discussion, the panel recognized signifi - cant opportunity for the city of Albuquerque to steer a redevelopment of its historic rail yards. The recommendations set forth were formulated to create a large-scale, mixed-use redevelopment program appropriate within the context of the Configuration of existing • How can the effect of automobile traffic on city, the neighborhoods surrounding the study primary buildings on the area, and the existing business climate. Summa - Barelas be minimized? rail yards site. rized below, these recommendations are described • What are the best methods for ingress and in more detail later in this report. egress to the property by both the public and Market Potential local residents (street reconfiguration and pedestrian overpass connections)? Opportunities exist for various uses—specialized manufacturers, performing arts facilities, a public • Does a set of design ideas or concepts exist market, film studio operations, departments or that would maximize the links between the specialized training programs of the University of redeveloping downtown areas and the rail New Mexico, a charter school—on portions of the yards? rail yards property; however, an anchor use, in ad - dition to the WHEELS Museum, will have to be • What steps can be taken to avoid redevelop - found and is not likely to emerge from the current ment pressures, such as displacement of ex - market. The site’s master developer, working in isting residents, property tax increases, and partnership with the city and the state—and loss of cultural identity? being mindful of the needs of the surrounding

10 An Advisory Services Panel Report communities—will need to seek out this anchor Figure 1 user, whether conventional retail, commercial, or Existing Buildings on Albuquerque Rail Yard Site industrial. Planning and Design Facility Year Built Square Feet Stories Because no single use is likely to absorb the full Machine Shop 1921 165,000 1 12 development capacity of the site, a sustainability- 3 oriented phased development program is appro - Boiler Shop 1923 58,100 1 priate. It should be dedicated to enhancing the Transfer Table Pre-1919 36,000 0 property’s environmental quality; preserving and celebrating the iconic, historic character of the ex - Blacksmith Shop 1917 24,867 1 isting buildings; establishing permanent, attrac - Storehouse 1915 18,900 1 tive workforce housing; and integrating the rail yards with the surrounding neighborhoods. The Tank Shop 1925 18,564 1 report describes each phase in detail and provides architectural and landscape renderings. Sheet-Iron Shed Pre-1919 13,950 1 Development Strategies Turntable 1915 11,309 0 The city should select a sound master developer Flue Shop 1920 8,878 1 for the redevelopment of the rail yards. The plan - ning process for the property must follow, and not Firehouse 1920 3,936 2 precede, the selection of the developer. The prop - Washroom 1919 3,640 1 erty must be rendered as appealing as possible by eliminating existing hurdles to successful develop - Locker Room 1919 2,964 1 ment before exposing the property to the market - Assembly Hall 1922 2,800 1 place. Several predevelopment considerations, namely, addressing easements held by BNSF Babbit Shop 1924 2,250 1 Railway, ensuring environmental remediation of Motor-Car Garage Pre-1931 1,512 1 the site, and creating a special zoning district for the rail yards with use categories and incentives 1 3.8 acres. 2 With mezzanine. 3 1.3 acres. specific to the site, should each be settled. Source: Chris Wilson, “History of the Rail Yard Site,” University of New Mexico. Implementation Predevelopment implementation strategies in - clude appropriate marketing of the rail yards, emphasizing the importance of job creation and economic development as a result of the redevel - opment, and appointing an advisory board to over - see the development process. At the project level, the panel advises ensuring connections are made from the rail yards site to downtown Albuquerque and surrounding neighborhoods, as well as per - forming site-specific activities, including environ - mental remediation, demolition of nonessential buildings, and selection of a nonprofit entity to oversee the construction of the 30 units of work - force housing.

Albuquerque, New Mexico, February 24 –29, 2008 11 Market Potential

lanning for the redevelopment of a major Historically, the economy has been driven by gov - site begins with determining what market ernmental activities—Kirtland Air Force Base, support exists for alternative uses. Devel - Sandia National Laboratories, and the University Popers seek land uses that can sustain them of New Mexico. More recently, the technology in - over the long run and ideally attract significant dustry has become a major economic generator, private investment to pay for the site improve - including Intel Corporation, optics, biosciences, ments. Market analysis provides guidance about renewable energy, and digital media/film. Metro - the demand for certain types of uses by looking at politan area employment has grown from 357,400 comparable developments in the local market to jobs in 2000 to 397,500 jobs in 2007. Government understand how much space is needed and what provides 20 percent of all area jobs, followed by people are willing to pay for that space. 16.1 percent in professional and business services, and 12.2 percent in educational and health services. To assess the market potentials of the Albuquerque Unemployment is relatively low, averaging 4.0 pe r- rail yards, the panel reviewed the full range of cent in 2006. traditional uses, but this site does not lend itself to traditional solutions. The unique nature of the Turning to individual land uses, the panel consid - site, its historic buildings, and its location will de - ered office, industrial, hotel, residential, and retail mand a special set of uses. Given the size of the uses, examining the current market conditions, site, long-term sustainability will demand multiple the demand for space, the competition that devel - uses that feed on and support each other, allowing opment on the rail yards would face, and the fu - the project to change over time as market support ture prospects and what they mean for the rail ebbs and flows for different types of uses. Around yards. the country, strong developments and communi - ties that attract and retain users, tenants, and res - Office Market idents over several years benefit from the syner - For many developments, office is a major use and gies of combining commercial, residential, arts, economic generator that funds the site improve - and other uses in a high-quality environment that ments and attracts daytime activity. Albuquerque’s encourages pedestrian activity and interaction. office market is relatively limited with 12.8 million square feet, compared with 96 million square feet Economic Overview in Denver and 61 million square feet in Phoenix. The market is relatively slow, with vacancies of To set the overall context, the Albuquerque area 10.8 percent in the region as compared with an is a medium-sized metropolitan area with a popu - ideal of 5 to 10 percent. lation of roughly 835,000 residents. The area has enjoyed steady growth in recent years, and the Grubb & Ellis reports average office rents of $22 Mid-Region Council of Governments projects the per square foot for Class A space and only $14.32 region’s population will reach 1 million in the next for Class B space. These rates compare with 13 to 15 years. That represents an annual growth average Class A rents of $26 in Denver and $30 rate of 1.34 percent. Within the region, the city of in Phoenix. As a result of these low rents, con - Albuquerque represents 60 percent of the regiona l struction is limited to build-to-suit buildings for population and is growing slightly faster than the owner-occupants. Last year saw construction of region as a whole (1.37 percent annually). only 303,000 square feet of new office space across

12 An Advisory Services Panel Report the region. Demand totaled less than 280,000 square feet in 2007 as measured in terms of net Figure 2 absorption. Albuquerque Metropolitan Employment by Sector, 2006

Geographically, the North I-25 submarket repre - Industry Employment Percentage sents 23 percent of the region’s inventory (2.9 mil - Information 9,400 2.4 lion square feet); Downtown is close behind with 2.6 million square feet, or 20 percent of the re - Transportation, Utilities 10,500 2.7 gional inventory. Uptown represents another 1.8 Other Services 12,200 3.1 million square feet, or 14 percent of the regional total. Wholesale Trade 13,300 3.4

Into the foreseeable future, rents do not support Financial Activities 19,300 4.9 new construction of speculative, multitenant space Manufacturing 24,000 6.1 rather than single-tenant build-to-suit space. To justify private investment in a new building, the Mining/Construction 31,200 8.0 developer would need to receive rents in excess Leisure and Hospitality 38,400 9.8 of $30 per square foot—substantially higher than prevailing rents of $22 per square foot for Class Retail Trade 43,800 11.2 A space. Education and Health Services 47,900 12.2 The rail yards site does not offer a prime office lo - cation. It lacks the easy transportation access and Professional and Business Services 63,200 16.1 the concentration of other office users that attract Government 78,600 20.1 tenants. This finding means that the site has no market potential for office space except a small Total 391,800 100.0 amount ancillary to another use. Source: U.S. Census, 2006. Industrial Market Albuquerque’s industrial market represents al - Almost one-half of the space is located in the North most three times as much space as the office mar - I-25 submarket. The South Valley, Airport, and ket with a total inventory of 35 million square feet. Mesa del Sol market includes 3.75 million square Industrial space encompasses a variety of products. foot, 11 percent of the region’s inventory. Mesa In the Albuquerque market, almost one-half of the del Sol is a major new industrial development with space is general industrial space for manufacturers, recent development for digital media and film stu - contractors, and industrial services. Warehouse/ dios, solar array manufacturers, and an announced distribution represents 40 percent of the space, electric car assembly plant. and the rest of the space is research and develop - The rail yards suffer from difficult road access for ment (R&D)/flex space (single-story buildings that trucks because of the distance from I-25 and the can be configured for a mix of office and warehouse/ need to travel through a residential area to reach showroom space). At the end of 2007, the region had 2.1 million square feet of vacant space, 5.9 per - the site. This access deficiency will inhibit demand cent of the total. from conventional industrial users, particularly warehouse/distribution uses that depend on effi - Demand for industrial space averaged 1.1 million cient truck movements. Those users will continue square feet in 2007, distributed 52 percent in gen - to favor low-cost sites with superior accessibility. eral industrial space, 25 percent in warehouse/ The rail yards site is also less competitive because distribution, and 23 percent in R&D/flex space. of its distance from other industrial users and the New construction added less than 150,000 square operational efficiencies provided by location with- feet in 2007. in a cluster of industries.

Albuquerque, New Mexico, February 24 –29, 2008 13 Figure 3 Downtown’s hotel market has been constrained by Residential Units Authorized by Building Permits, the limited inventory of hotel rooms and limited City of Albuquerque support infrastructure. Associations, trade shows, and meeting planners seek locations that will at - Single Multifamily tract attendance and typically want to see enough Year Family Duplex 3–4 Units 5+ Units Total hotel rooms close to the convention center and each other to house their delegates in one place. 2006 3,420 – 27 730 4,177 They also want to see walkable access to good 2005 4,764 – 41 273 5,078 restaurants, entertainment, services, and attrac - tions. Compared with other convention destina - 2004 5,119 – 54 324 5,497 tions, downtown Albuquerque has trouble com - 2003 5,084 298 97 702 6,181 peting. With the renovation of La Posada Hotel, extension of the Rail Runner to Santa Fe, and 2002 4,217 – 91 1,121 5,429 other investments in downtown attractions, the 2001 3,671 – 24 646 4,341 demand for additional hotel space will grow. 2000 3,412 – 40 70 3,522 Currently, the rail yards cannot compete for a hotel. The site does not have the access and visi - Average ––––4,889 bility typically required by hotels, and it is too far from downtown and the convention center. Source: U.S. Census, 2006. However, a dynamic mixed-use development on the The specialized facilities at the rail yards may rail yards may create an environment sufficiently have appeal and use for specific manufacturers active and attractive to support an extended-stay who can benefit from a southwest location with hotel in a later phase, either on the site itself or on good rail access. The building heights, overhead the 7.2-acre site to the north, closer to downtown. cranes, and load-bearing floors of rail yards facili - ties may offer opportunities for such industries as prefabricated housing. They have already proven Housing Market to be attractive to film studios that can make good With Albuquerque’s rapid growth, the region has use of the high ceilings and clear spans. seen construction of an average of almost 4,900 new housing units annually from 2000 through Hotel Market 2006. Much of that development has moved out - Albuquerque has more than 16,700 hotel rooms: ward from the city and is now focused to the north - 2,746 in downtown and Old Town. Albuquerque east and west, well away from the rail yards. The attracts 5 million overnight visitors annually, in - region’s development pattern is relatively low cluding tourists from around the country who come density with single-family units accounting for 87 to enjoy the Albuquerque/Santa Fe/Taos region. percent of all new residential construction since About 71 percent are leisure visitors, with the re - 2000. Although the trend has been toward the maining 29 percent split between business visitors city’s urban fringe and beyond, the renovation of and those attending conventions, meetings, or the old Albuquerque High School in East Down - training. The city’s convention business has lagged town to residential units, as well as several other over the last decade or two as other cities have in - residential infill projects downtown, shows promise vested in their convention facilities, hotels, attrac - for future housing market viability proximate to tions, and downtown amenities. the rail yards.

Overall, the region’s hotels achieved a 62 percent For-Sale Housing occupancy rate with an average room rate of $70.96 In the residential for-sale market, 5,410 single- per night in 2007. Typically, a healthy hotel market family units were sold in the Greater Albuquerque will have an overall occupancy rate in excess of Area in 2007. They had a median price of $197,000 70 percent. and an average price of $242,000 in the first half of

14 An Advisory Services Panel Report 2007. Townhouses and condominiums accounted for another 582 units with a median price of $149,500 and an average price of $161,000. Those figures mean that not much more than 300 units sold for less than $150,000 in the entire region.

Median prices have increased 34 percent since 2003, but trouble in the mortgage financing indus - try has led to a slowdown in development. Permits issued in September 2007 were about half the number issued in 2006. Rental Housing In the regional rental-housing market, the Apart - ment Association of New Mexico surveyed almost 7,500 apartment units in the city. Just under 5 per - cent of the units were vacant, which indicates a market in healthy balance between supply and de - mand. The age of rental apartments in the city av - eraged 24.2 years, reflecting the limited construc - New infill housing project tion of new rental apartments in recent years. Downtown/Barelas/South Broadway recently constructed in Developments In the summer of 2007, rents for a one-bedroom the Barelas neighbor - apartment averaged $575 per month without utili - The Downtown 2010 Sector Development Plan hood. ties; a two-bedroom, two-bathroom apartment av - emphasizes development of downtown and near- eraged $761 per month without utilities. These downtown housing to provide greater vitality dur - rents compare with the roughly $1,500 monthly ing nonwork hours and to support downtown rent that would be required to justify private new restaurants, retail, and amenities. Almost all of construction on fairly inexpensive land. the new downtown housing has occurred north of Coal Avenue. A major new development has been Workforce Housing announced for the old Greyhound site opposite the Workforce housing is in high demand. The median Alvarado Transportation Center. It will bring 120 income for all households in the city in 2006 was workforce housing units, live/work units, and 72 $43,021. To afford a two-bedroom, one-bathroom market-rate townhouses to the area. Prices of new apartment at $585 per month, a household would townhouses range from $240,000 to $495,000, or need an annual income of at least $25,000. More $220 to $240 per square foot. This rate compares than 57,000 Albuquerque households have incomes with development costs of $190 to $200 per square below that level. Of Albuquerque households, 37 foot. Rental housing is only affordable with out - percent had documented housing problems in side financial support from low-income housing 2000, according to the U.S. Census. That means tax credits or other federal or city incentives. they were spending more than 30 percent of their income for housing or they were living in over - Housing in the Barelas and South Broadway crowded housing or in units with physical defects. neighborhoods is only about one-half owner occu - pied; the remainder is rented. The neighborhoods Among renters, the problems are even more wide - have seen a few new small infill developments to spread. More than 18,700 renter households spent date. Some new households are being attracted to a higher share of their income for housing than the buy in the neighborhoods by the availability of U.S. Department of Housing and Development good-quality historic houses at relatively afford - (HUD) judges to be affordable. In 2006, only 331 able prices close to downtown. Some reports indi - affordable rental-housing units were built. cate significant buying activity in the area as spec -

Albuquerque, New Mexico, February 24 –29, 2008 15 ulators buy properties, anticipating that housing Second, retail can help cross-subsidize other de - demand and prices will increase in future years. sired, but less profitable, uses in the project’s overall mix. For the rail yards, these market conditions mean that new housing development should include For this reason, it is important that retail poten - workforce units with permanent affordability pro - tial for the site is analyzed in depth so specific tections. Although mixed-income housing will be recommendations can be made. The following important for the community’s development, the analysis addresses relevant factors and constraints private market will be unable to build mixed- of the site, assesses potential competition, refer - income developments without continued financial ences key demographic data, and introduces mar - support from the public sector. ket possibilities.

Market-rate housing of any size will need to wait a Site Factors and Constraints few years until stronger connections to the down - Despite the rail yards’ prominent location in town can be created and current projects begin to downtown Albuquerque, the following factors create a new image and market acceptance for the both support and limit the property’s potential for area. Attracting a major user for the rail yards redevelopment. could accelerate residential development by bring - ing new jobs and activity to the area. Ideally, new Visibility and Access. The rail yards site is visible residential development would be focused on the from I-25 because of the sheer size of its buildings, 7.2-acre site to the north of the rail yards and on namely the machine shop. This factor alone posi - infill lots in both the Barelas and South Broadway tions the property’s redevelopment as high profile neighborhoods. and will generate attention, giving the chosen project a chance to establish itself while effective In the short term, opportunities exist to develop retail anchors will provide longer-term exposure some workforce housing on the site, which would to the target market. have particular appeal for artists and young peo - ple. Industrial loft space is very appropriate for The streets abutting and leading to the rail yards artists who need large work spaces that can ac - are primarily residential in character and there - commodate large pieces of art and quasi-industrial fore lightly trafficked. Both 2nd and 3rd streets fabrication techniques (for example, welding or accommodate 3,600 cars per day; 4th Street, 7,000. kiln firing). Conversely, the nearby Avenida Cesar Chavez is In the longer term, the demand for market-rate a major arterial road connecting Yale Boulevard housing in the area is likely to focus on younger to the southwest side, offering access to and from I-25 and providing one of the few crossings of the single people and childless couples who value Rio Grande in the Albuquerque region. It accom - proximity to work or transit and do not depend on modates 39,000 cars per day. local schools. New developments will need to em - phasize the quality of public spaces and provide a In terms of regional access to the site, motorists variety of units to appeal to different segments of coming from I-25 would rely on 3rd Street (via the market, including townhouses, duplexes, loft Lead Street) or 4th Street (via Avenida Cesar apartments, and conventional three- to four-story Chavez). Switching 3rd Street from one way to apartment buildings. two ways would mean that those using Avenida Cesar Chavez would take 3rd Street rather than Retail Market 4th. In either case, development on the site would generate additional automobile traffic on local The potential for retail as a major part of the rail roads. yards redevelopment is critical for two reasons. First, it is the presence that people often first see An alternative is to build an off-ramp from and most easily recognize on a site; thus it will Avenida Cesar Chavez westbound into the rail - play a major role in defining the project’s identity. road-owned property to the immediate south of

16 An Advisory Services Panel Report the site. Access from I-25 would then be more di - such on-site demand: the sales generated by up to rect. Current estimates place the cost of such in - 30 workforce housing units, for example, repre - frastructure at $2 million to $4 million. sent just a drop in the bucket in comparison to what merchants would need to be viable. With regard to pedestrian access, residents of Barelas can use perpendicular side streets like Adjacent Neighborhoods. The retail mix on the rail Pacific Avenue or Santa Fe Avenue to access the yards site would need to complement the busi - rail yards. No crossing to or from the South Broad - nesses that exist (or could materialize) on the way neighborhood exists between Coal Avenue nearby commercial corridors of 4th Street and and Avenida Cesar Chavez, however, and little South Broadway. Currently, not much impact prospect exists of one at grade (street level). would occur, given the limited offerings on each of those two streets, but successful redevelopment Historic Buildings. Two of the existing buildings on would almost certainly generate new customers the site—the 165,000-square-foot Machine Shop for what does exist. This possibility is especially and the 58,100-square-foot Boiler Shop—offer the pertinent for the 4th Street corridor and its exist - large, high-ceilinged, open spaces that can be eas - ing retailers, because many are a short two-block ily adapted for big- and medium-box retail, al - distance from the property and located near sev - though these sorts of tenants tend to prefer to eral key access points to the rail yards. stack merchandise and shelving along walls, which in this case could block natural light from entering Retail possibilities complementary to what cur - lower portions of the buildings. Other structures, rently exists downtown, however, are another such as the 24,867-square-foot Blacksmith Shop, story. The region views the rail yards site as part the 18,900-square-foot Storehouse, and the 18,654- of downtown, but in certain categories, some retail square-foot Tank Shop, do not have the proper di - categories would compete directly with existing mensions for such users, but could be appropriate downtown businesses or with ones that would oth - for smaller retailers or even vendor-filled markets. erwise consider locating there in the future. Sit- down restaurants are a prime example. Stand-alone buildings, such as the 3,936-square- foot Firehouse, have been considered for sit-down Competition restaurants. They would be just large enough for An analysis of competitive retailing is essential to such purposes, but buildings smaller than 3,000 the task of determining how the property’s retail square feet would have to content themselves with potential may fit within the larger marketplace fast casual food or specialty food/drink operators. and what niches it might try to occupy or capture. Moreover, retail will have to contend not only with Site Planning. Retail use will present certain prac - existing competitors in the community but also tical challenges to site designers, with parking with ones that will materialize after redevelop - being the most formidable. In addition, particular ment is underway. The panel has made redevelop - retail categories might have a locational bias. Gro - ment recommendations for both consumers and cery stores and other convenience-oriented uses, tenants on site. for example, would want to be placed on the edge of the development, with in-front parking, to facil - Regional Shopping Destinations. At present, the itate easy in-and-out access for residents from sur - Albuquerque region consists of four shopping rounding communities. areas with the ability to draw from across the re - gion. Two are conventional enclosed malls, one is a At the same time, on-site retail will benefit from lifestyle center, and the fourth is a traditional the traffic generated by other uses. For example, business district. the WHEELS Museum would function synergisti - cally with food and drink operators, while the resi - The Coronado Center is in the city’s Uptown dis - dential housing component would direct customers trict, on Louisiana Avenue north of I-40. Opened to convenience-oriented businesses. Care should in 1964, it is now owned by General Growth Prop - be taken, however, not to overestimate the level of erties, the nation’s second-largest mall developer.

Albuquerque, New Mexico, February 24 –29, 2008 17 Right and below: Retail center. Its 220,000-square-foot retail space, in the mix in Nob Hill, Albu - form of an open-air, faux-downtown setting, con - querque’s vibrant, walka - sists primarily of upmarket national comparison ble shopping district. goods (for example, clothing, shoes, and furniture) and sit-down restaurant brands, most of which are new to the state. Future phases will include resi - dential and hotel uses as well as additional retail.

Nob Hill, on Central Avenue, roughly between Girard Boulevard and Carlisle Boulevard, is Albu - querque’s most vibrant and successful walk able shopping precinct, with a stylish mix of boutiques and restaurants, including a smattering of smaller national and regional “chain-lets” (for example, Buffalo Exchange, Il Vicino, El Paso Imports, Fly - ing Star/Satellite Coffee). Although driven largely by its proximity to the University of New Mexico, this area has become the region’s consensus “cool” business district.

With a clutch of bars and clubs as well as a movie multiplex, Downtown is a regional nightlife desti - nation for the 20-something set, but it has yet to establish itself as a serious dining or shopping al - ternative. It has a surprisingly small number of sit-down restaurants and a limited collection of high-end boutiques (on Gold Avenue) that are re - portedly struggling. Furthermore, its focus on an At 1,150,000 square feet, Coronado Center is New “events center” with a decidedly mass-market ori - Mexico’s largest mall. With Sears, JCPenney, entation is unlikely to change its current underly - Mervyn’s, Macy’s, and Barnes & Noble as anchors, ing dynamic. it can be characterized as a middle-market center, Finally, East Downtown, while not yet a regional and with sales of roughly $350 per square foot as force in terms of location, is fast emerging as Al - of 2003, as an average performer. buquerque’s newest “hip” district, largely a result of Rob Dickson’s energy and creativity. Indeed, The Cottonwood Mall is in the West Mesa area , East Downtown is developing the restaurant clus - at the intersection of Coors Boulevard and Coors ter that Downtown has been unable to realize, and Boulevard Bypass. Opened in 1996, it is owned with its effective branding and superior visibility, by Simon Property Group, the nation’s largest it will be increasingly competitive for retailers as mall developer. At 1,041,000 square feet, it is New well. Also, with an inventory of available ground- Mexico’s second-largest mall. Sears, JC Penney, floor space, it will be able to take advantage of a Mervyn’s, Macy’s, Dillard’s, and United Artists spillover from Nob Hill in regard to attracting anchor the complex, making it another middle- new business. market center, with sales in the $300s per square foot as of 2003. It, too, qualifies an average performer. Regional Shopping Destinations: The Future. The 12,500-acre Mesa del Sol project, being developed The newest addition is ABQ Uptown, in the Up - by Forest City Covington to the south of the Al - town district on Louisiana Avenue north of I-40. buquerque International Sunport, will likely cre - Developed by Hunt Development Group and ate a fifth major shopping destination for the Al - opened in 2006, it is New Mexico’s first lifestyle buquerque region. The project includes plans to

18 An Advisory Services Panel Report develop in 2010 an “urban center” (that is, a big- age is likely higher in the neighborhoods closest box/faux-downtown hybrid) at the project’s pri - to the site. mary gateway, a new I-25 interchange, less than Within a ten-minute drive of the property are five miles from the site. roughly 186,000 people. The median income of this Community Draws. The rail yards site has the po - larger radius is higher, approximately $38,000. tential to look to other community-level draws as Retail Potential anchors for retail development. Examples include The rail yards site is unlikely to be the location for discount department stores (general merchandise) Albuquerque’s next regional shopping destination. and full-service supermarkets or supercenters (gen - Presently, the city’s southwest quadrant is the eral merchandise plus full-service supermarket). most undersupplied, and the demographics sug - Target’s current locations in the Albuquerque gest the possibility of midmarket draws. But the region suggest the possibility of an additional big-box centers to the west of the Rio Grande and store i n the South Valley. However, a Super - the highway-accessible retail development planned Target is planned as part of a large-scale devel - for Mesa del Sol will absorb a considerable amount opment at the intersection of I-40 and Unser of consumer demand and tenant interest in the Boulevard, roughly 4.5 miles from the property. South Valley going forward. Furthermore, the re - Meanwhile, two Wal-Mart Supercenter stores al - development of this site cannot accommodate the ready exist approximately 3.6 miles away, on retail square footage or the accompanying parking Coors Boule vard Northwest and on San Mateo that would be needed to create such a regional- Boulevard Southeast. scale retail destination. Community Draws. Given the low income levels The surrounding neighborhoods include a number in nearby neighborhoods and the SuperTarget of smaller or second-tier grocery operators. The planned at I-40 and Unser Boulevard, a Target closest full-service chain is Albertsons, with branches store is probably unrealistic at this juncture. Wal- at Central Avenue and Coors Boulevard, and at Mart is more likely to be interested, although with Isleta Boulevard and Rio Bravo Boulevard, both either of these operators, the parking requirement less than four miles away. Smith’s operates a smaller, —ranging from 500 to 1,000 spaces, depending on 30,000-square-foot location at Yale Boulevard and the size of the store—would prove prohibitive. Coal Avenue, less than three miles away. Given the absence of a top-tier, ethnic-oriented In regard to ethnic specialty markets, Pro’s Ranch brand (for example, Pro’s Ranch Market or El Market, a small regional chain with locations in Mezquite) east of the Rio Grande, and the niches California’s Central Valley, Arizona, and Texas, is left unoccupied by the conventional (Albertson’s, opening its first Albuquerque store. It is a 60,000- Smith’s) and low-cost (Wal-Mart) operators, the square-foot category killer in a former Wal-Mart site could probably support a specialty grocer. In space at Central Avenue and Atrisco Drive, just this case, it should be a crossover hit similar to across the Rio Grande from downtown Albuquer- Talin Market World Food Fare, merchandised to que. El Mezquite, a smaller local chain, operates a cater directly to this particular market’s heavy 9,000-square-foot grocery at Isleta Boulevard and concentration of ethnic households as well as its Rio Bravo Boulevard, also across the river. growing number of white loft-dwellers: for exam - ple, a cross between an El Mezquite and a Sun - Basic Demographics. At least 35,000 people live flower Farmers Market. within a five-minute drive of the rail yards. In - come levels are low, with a median of roughly Such a store would need one parking space per 150 $29,000—and even lower in subareas like Barelas. to 200 square feet and a location on the edge of the About 65 percent is characterized as Hispanic, development with storefront parking. Further - with that population rising. Almost 16 percent of more, better pedestrian access to surrounding the households do not own cars, and this percent - neighborhoods would need to be secured. Never -

Albuquerque, New Mexico, February 24 –29, 2008 19 theless, a specialty grocer would indeed help an - cafés, and so on—can take advantage of on-site chor other retail uses, such as a growers or public traffic generators like growers markets, univer - market, and promote nonretail uses, such as hous - sity departments or programs, and film studios. ing, not to mention respond to the oft-stated wishes Also, restaurants are an appropriate “pioneer” of local residents. use in untested areas, because diners are often willing to travel significant distances and suffer Smaller, convenience-oriented businesses, such as great inconveniences for destinations with distinc - a coin-operated laundry, have also been proposed tiveness, reputations, or “buzz.” Local examples as a needed amenity accompanying redevelop - in this case include the Barelas Coffee House and ment. Unlike a grocery store, however, such busi - the Red Ball Café. nesses could be accommodated on 4th Street or as part of a larger, targeted local economic develop - ment effort focused on promoting commercial ac - Market Conclusions tivity nodes on Avenida Cesar Chavez and Pacific Traditional uses will not provide sufficient eco - Street. There, they would be more convenient to nomic support for a feasible development. Suc - the residents of Barelas, would not have to com - cessful redevelopment will need a major user or pete so fiercely for access or parking, and would group of users that can do any or all of the follow - not require space that might be more attractive to ing: take advantage of the historic buildings with a wider range of potential retailers interested in limited changes, bring their own funding, and the rail yards redevelopment. draw regional support.

Public Market. A growers market or public market The following uses offer potential for portions of that includes a more substantial crafts component the site: would help generate activity as part of the rede - velopment program and promote an emerging • specialized manufacturers; brand of the project at large. Examples from across the country should be analyzed and con - • artist studios; sulted, not only the well-known ones, such as • a growers market; Philadelphia’s Reading Terminal Market, but also lower-profile, more ethnic-specific successes, such • film studios; as Grand Central Market in Downtown Los Ange - les and Mercado Central on Minneapolis’s Lake • departments or specialized training programs Street corridor. from the University of New Mexico or Central New Mexico Community College focused on A growers or public market would not be a money- media arts or film-related programs; making use in this case and would require consid - erable subsidy. Some sort of anchor store, how - • a charter school specializing in the media arts; ever, would help increase general traffic and sales. and At Plaza Fiesta, an ethnic-themed mall in subur - • possible increases in mixed-income and market- ban Atlanta, the central flea market, with its rate housing. nearly 300 vendor booths, is provided a stream of possible customers by the presence of a Bur- After a major user anchors the site, joining the lington Coat Factory and Marshalls. At the rail WHEELS Museum, additional users will follow to yards, such a large-footprint retailer would re - take advantage of the new environment created, quire too much parking, but a smaller-format the pedestrian activity, or connections to the an - specialty grocer, as previously mentioned, would chor use. The mix of uses can expand, and the have a similar effect. project will be able to achieve the synergies of a mixed-use development. Food and Drink. Food and drink concepts—sit-down and “fast-casual” eateries (for example, Panera That anchor user is not likely to emerge from ana - Bread, which offers higher-quality ingredients), lyzing the current market. The uses cannot be

20 An Advisory Services Panel Report prescribed or the site planned in advance. The an - chor user will need to be sought out and recruited to the site by the master developer, working in partnership with the city, the state, and other en - tities. The city will need to attract the developer and the major user and then plan the redevelop - ment together with the community.

Albuquerque, New Mexico, February 24 –29, 2008 21 Planning and Design

ecause the redevelopment of the rail yards and agencies involved in the rail yards redevelop - is expected to provide the city of Albuquer- ment. Stakeholders typically include the devel - que and its surrounding neighborhoods oper, city public works departments, and the de - Bwith “a unique physical asset,” the develop - sign review committee. A comprehensive planning ment scenarios in this section represent a mix of approach involves providing support and guidance uses potentially feasible for the property. to the developer regarding all preconstruction is - The assessment of market potential indicates that sues, as well as coordinating specialty consultants to achieve its objectives for redevelopment of the —environmental, architectural, urban design— rail yards, the city needs to take several steps to that might take part. ensure that the economic sustainability of the site The greatest benefits of a master-planning ap - can support the anticipated anchor and supporting proach to project development in an existing his - uses. In addition to economic sustainability, nu - merous opportunities to embrace sustainability torical site derive from sound decisions made dur - that fosters resource conservation, energy effi - ing the project’s planning phase. At this point, ciency, and sustainable landscaping are pertinent sufficient flexibility still exists to identify major to the redevelopment vision for the site. Toward planning objectives, such as community linkages the goal of achieving LEED (Leadership in En - and open space (discussed later). Facilities for ergy and Environmental Design) certification for joint use by services (businesses) and the public the redevelopment project, the panel has carefully can be planned without the constraints of other considered numerous principles of sustainable de - project demands, such as cost and time limita - velopment. Mindful of this goal, the panel pro - tions, and built into the project. poses including sustainable design principles for their community benefits. In addition, the project should be committed to creating high-quality environments—places that In this section, the panel’s report begins with site provide well-planned, high-performing, healthy plan review and master planning, then discusses environments that foster tenant satisfaction and sustainable design, and finally introduces the de - well-being, as well as centering the community. velopment scenario itself. The panel hopes that the developer ultimately selected for the redevel - Master planning for adaptive use of the rail yards opment of the property will pursue these planning should create strategies for development of the and design recommendations to the greatest ex - physical environment, recommend planning and tent possible. implementation guidelines, and established design characteristics. The planning process should Site Plan Review and Master-Planning achieve the following goals: Guidelines • Plan for the following specific uses: WHEELS Site planning gives strong professional leadership Museum, public market support shops, restau - and technical expertise for all predesign, master rant at the Firehouse and other locations. planning, design, and construction activities. The city of Albuquerque should provide leadership • Use outdoor gathering spaces as shared spaces during the planning phase and can be the bridge for community integration, and place smaller and coordinator between different stakeholders outdoor spaces within each level of project use.

22 An Advisory Services Panel Report Left and below: In addi - tion to any new construc - tion that may take place on the rail yards, the panel believes the existing historic buildings are ideal candidates for reha - bilitation using the high - est standards of sustain - able design. The Boiler Shop is shown at left and the Machine Shop below.

Albuquerque, New Mexico, February 24 –29, 2008 23 What is and what could be: Architectural render - ings of adaptive use design styles potentially appropriate for the large interior spaces of the Machine Shop and other existing buildings on the rail yards property. S K R O W K K G Y B S G N I R E D N E R L A R U T C E T I H C R A

24 An Advisory Services Panel Report • Provide for general use facilities, including a li - Landscape Approach: High-Performance Green brary, media center, fitness center, and dance Spaces centers. Any adaptive use project can be sustainable and include high-performance facilities that are restor - • Ensure that each level of land use occupies iden - able or designed, built, and operated in an ecologi - tifiable, contiguous vertical or horizontal space. cal and resource-efficient manner. The panel rec - Planning for the physical environment should ad - ommends the following as a goal of potential dress strategies for the use of public spaces among redevelopment: users of the rail yards and adjacent neighbor - hoods. Specifically, planning should • Integrate the open spaces on the property with existing structures to create a residential live/ • Establish a unifying “identity.” work community.

• Identify flexible/general-purpose spaces. • Develop adjacent community parks, strategically placed, that promote joint use of open spaces • Plan shared spaces to accommodate community and buildings to serve the larger community. joint uses. • Include tree planting of native species that shade • Use outdoor gathering spaces as shared spaces for community integration, and place smaller structures and minimize the use of air condition - outdoor spaces within each level of project use. ing, encouraging the use of operable windows to let fresh air circulate through buildings. During the planning process, design characteris - tics should be established to guide future devel - • Choose permeable xeriscaping as a stormwater opment in the rail yards. The design characteris - management strategy to capture rainwater, tics should: which can then be reused as graywater in the operations of some buildings. • Shape the identity and focus of the design with a shared and compelling vision for each land use These strategies ultimately will allow the rail yards level. buildings and their surrounding landscapes to func - tion in harmony as both independent and collabora - • Integrate open space with adjacent communities. tively sustainable environments. • Organize spaces for teaming and collaboration Architectural Approach: Sustainable Building within each level of land use. Design Goals • Use flexible design for flexible and convertible Because many of the rail yards buildings are in - programs. tact and retain their stately character, their context, history, and service to the community These elements will work to guarantee that build - should be considered in the context of overall re - ings are “flexible and convertible” and that other development of the property. With sustainable spaces are able to support a range of market po - building design goals in mind, the panel recom - tentials, including those proposed here and others mends considering the following issues for retro - yet to be identified. fitting existing buildings, where applicable, and new construction: Sustainable Design • Explore contemporary architectural solutions The panel advocates the objective to build out the to enhance existing buildings. property as a sustainable community of multiple uses that supports energy conservation, minimizes • Maximize daylighting in buildings, and consider long-term maintenance of buildings and grounds, orienting views toward open spaces to connect and uses water resources conscientiously. interiors and exteriors.

Albuquerque, New Mexico, February 24 –29, 2008 25 • Choose building materials that have low emis - sions of volatile organic compounds, are regional in origin, are renewable, and are recycled.

Haze • Consider building orientation and photovoltaic ldine Ave nue SW systems as a renewable energy source, given SW the abundance of sunlight in New Mexico. et tre Atla t S ntic Ave rs nue SW Fi • Improve building energy performance by using high-performance heating, ventilation, and air-conditioning systems; energy-efficient lighting systems and fixtures; and Energy Star –

S approved appliances. anta Fe A venue SW • Consider other on-site alternative or renewable energy sources (wind, biomass, geothermal).

• Consider locally generated or cogeneration Pacific A venue SW power systems if new infrastructure is required

t on site.

C S romwell • Install low-flow plumbing fixtures for water Avenue S d W n

o conservation.

e S • Reduce the heat-island effect by installing high- albedo roofing or skylights.

Community Links Garfield Avenue SW Given the rail yards’ location between two com - munities, a primary goal of the redevelopment vision is to embrace the history and cultures of the Barelas and South Broadway neighborhoods and to ensure adequate public amenities are in - cluded for their residents. The dedication of work - force housing and community open space can help achieve this goal. Pedestrian Greenway Turntable Plaza Linkage

Bar elas Linkage South Broadway Linkage First, however, a review of the importance of de - sign conformity to complement and link the adja - cent neighborhoods is relevant. In traditional Proposed community links to and from the rail yards. The linear greenway along neighborhoods, design conformity works to ensure 1st and 2nd streets would strengthen the city’s urban fabric by promoting greater that each planning element evolves in unison and pedestrian activity between downtown and the rail yards. ultimately provides a sense of place to the project. The approach to the development of such a design vision begins with a full understanding of existing land use plans and community expectations to en - sure conformity of the following elements:

• Pedestrian scale;

• Visual corridors;

26 An Advisory Services Panel Report • Open space/village greens/natural features;

• Residential corridor links;

• Urban edges; Hazeld ine Aven • Opportunities for recreation and education; ue SW SW et • Appropriate barriers; tre Atla t S ntic Ave rs nue SW Fi • Specified planting; Phase II Remediation/ • Appropriate scale and proportion; Upgrade • Adequate pedestrian/bicycle linear corridors; Santa F e Avenue SW Bo • Consistent design style; and iler Shop • Sensitive use of color and materials.

For the rail yards, a workforce housing component Pacific A Machine venue SW Shop may use characteristics and elements of neighbor - W S

t hood housing styles together with design elements e

r derived from space and function, as well as influ - t C S romwell Avenue S d ences of neighboring architecture, traditional to W n

o c Phase III New Mexico. e S Remediation/ To preserve and restore elements of the prop - Upgrade erty’s historic character, rehabilitation of the Transfer Table to a plaza and of the Turntable to community parkland can serve as interpretive, Garfield Avenue SW archeological open space with graphic depictions of the historical significance of the site. This use will remind community members of their connec - tion to the site and serve to introduce visitors to the rich history of the rail yards.

The introduction of a community park, a “green” amenity including a pavilion for activities such as weddings, Cinco de Mayo festivities, and cookouts, as well as the potential inclusion of a soccer field, Proposed Phase II and III development program. can provide the entire community with much- needed open space for active and passive recre - ation. This proposal for interpretive space that both preserves elements of the site as archeologi - cal remnants and offers “meeting space” is in - cluded in the Landscape Program section of the following Development Scenario.

Development Scenario Thorough examination of relevant planning processes has informed and shaped the panel’s de - velopment program for the rail yards. Proceeding

Albuquerque, New Mexico, February 24 –29, 2008 27 with site development, however, will require tak - ing some preliminary steps to prepare the prop - erty, including the abatement of soil contaminants presently on the site. Ha zeldine A venue SW Predevelopment Phase SW The predevelopment phase will prepare the rail et tre yards for future development by addressing envi - Atlan t S tic Aven rs ue SW Fi ronmental challenges and creating infrastructure. 4 Specific actions include the following:

• Environmental remediation of the site, as nec - 4 5 4 essary, including removal of contaminated soil; Santa Fe Avenue S 4 W • Demolition of structures determined to be 6 nonessential; • Creation of surface-level parking at the north Pacific A venue SW end of the project site (entry/exit adjacent to

S the Firehouse) to accommodate approximately

e 240 automobiles; r t 3 C S romwell Avenue S d W n • Infrastructure improvements to accommodate o 1 c

e new development, including sewer trunk lines,

S 2 stormwater management systems, and electri - cal upgrades;

• Community links via Cromwell Street, Pacific 1 1 Garfield Avenue SW Street, and Garfield Avenue improvements; and • Development of a linear greenway park to eventually connect the project site to down - town Albuquerque. Phase I Development Program Phase I will begin the process of rehabilitating historic buildings on the site and creating new uses, including the following: 1. Wo rkforce Housing 3. Community Center 5. Zocalo 2. Turntable Interpr etive Park 4. WHEELS Museum 6. Transfer Table Interpretive Plaza • Architectural upgrades of the Storehouse, Blacksmith Shop, Tank Shop, and Flue Shop, in - Summary of phased development program. cluding remediation of potential lead and as - bestos present in the buildings;

• Constructing at least 30 loft units of workforce residential housing in the Storehouse and adja - cent new construction (totaling a minimum of 37,800 square feet), using historic tax credits as a funding source;

• Housing the WHEELS Museum and gift shop in the Blacksmith Shop;

• Locating a public market in the Tank Shop; and

28 An Advisory Services Panel Report • Putting a 4,000-square-foot family restaurant in Landscape rendering of the Firehouse. proposed design for pedestrian greenway and Phase II Development Program community links connect - Phase II will continue the development process by ing the rail yards to down- adding new residential and retail uses. Specific ac - 4’ Hedge town Albuquerque and tions include the following: surrounding communities. • Architectural upgrades of the Boiler Shop for 8’ 8’ 16 ’ 5’ 19’ potential Phase II or new uses, including reme - 40’ diation of potential lead and asbestos present in the building; Potential Parking Needs • Possible introduction of a medium-sized grocery facility to the Tank Shop; and The panel notes that parking assumptions made in this report may not reflect actual parking demand • Alternative uses, including include retail space for the proposed uses. The site is both parking and dedicated to live/work artisan studios (for ex - circulation constrained, and traffic studies should ample, jewelry, pottery, textiles). be completed during the predevelopment phase to validate actual parking needs or the feasibility for Phase III Development Program alternative modes of transport most relevant for This phase of the development program features serving the project selected. architectural upgrades of the Machine Shop, in - cluding remediation of potential lead and asbestos As indicated in the description of the predevelop - present in the building, for future development ment phase, the panel estimates that initial park - yet to be determined. It offers possibilities for ing needs for the proposed development—totaling sound stage production, light manufacturing, or approximately 240 spaces—can be built as part of vertical loft convertible space combining office and site remediation and infrastructure development. apartments. A second parking development will be necessary in conjunction with Phase II development. A sec - Landscape Program ond level could be constructed on top of the exist - The panel proposes an extensive landscape pro - ing surface parking area to accommodate 200 addi - gram designed to connect the rail yards to adja - tional automobiles (projected for Phase II cent neighborhoods and create dynamic public demand). spaces within the rail yards: Parking at the south end of the Machine Shop • Linear greenway (connection to downtown); building can accommodate the approximately 120 spaces projected for Phase III (the Machine Shop • Community links at Cromwell Avenue and Pa - building). cific Street; • Turntable interpretive park; • Transfer Table interpretive plaza; and • Zocalo (central town square or plaza).

Albuquerque, New Mexico, February 24 –29, 2008 29 Development Strategies

ollowing the extensive analysis of marke t to successful development before exposing the potential and the planning and design vision, property to the marketplace. To this end, before the panel believes a specialized set of strate - initiating the development process, the city should Fgies will be necessary to put the city of Albu - consider taking the following predevelopment querque on a bold and exciting path toward build - steps that the panel believes are imperative. ing on existing historical and cultural character to Legal Considerations achieve a unique identity and thriving future for the rail yards. The deed from the BNSF Railway to a predeces - sor owner reserves two very broad easements for the railroad that could have a material and ad - Goal for the Study Area verse effect on development of the site. The first The city’s goal for the study area must be to ulti - easement reserves extensive rights over a broad mately reach a development agreement with a area to access the Turntable and reserves the highly qualified and financially sound master de - right to use, replace, and reconstruct the Turn- veloper who will be in a position to repay all of the table and the surrounding area and tracks. The city’s investment, bring jobs to the property, and easement is so extensive it is the functional include substantial components of permanently af - equivalent of retained ownership. fordable housing and neighborhood-serving retail The second easement seems to reserve the right in the mix of uses on the rail yards site. to repair and replace tracks, utilities, and the like anywhere on the site where necessary for the op - Strategic Approach eration of the railroad. This easement is extremely To achieve the stated goal, the city must have the broad and not well drafted. Its interpretation, in - planning process follow, not precede, the selection cluding its time limit, if any, is not free from doubt. Both of these easements should be eliminated or of a master developer. The city should solicit a re - at least clarified and limited. quest for proposal (RFP) to initiate this process. Ideally, developers who respond to an RFP will The same deed passes all responsibilities for envi - control users (for example, light manufacturing, ronmental cleanup to subsequent owners and con - R&D, public marketplace, artist cooperative) who tains an extremely broad indemnity in favor of the will form the basis of an economic engine for the railroad. These provisions may very well be en - redevelopment project. Maximum flexibility must forceable, but an aggressive negotiating position be maintained in the process to allow these en - with the railroad should test the public policy gines to surface. After a developer is selected, the limitations of such provisions. The environmental city can complete the planning process in collabo - remediation of the property is critical. If appro - ration with the selected developer and negotiate priate, the cause of these conditions should par - the public benefit features to be included in the ticipate in the solution. scope of the overall plan. Currently, a practical and realistic short-term Predevelopment Steps management agreement is in place for the prop - erty. Subsequent agreements with the selected To maximize the number and quality of applicants, developer, any tenants (including the WHEELS the rail yards property must be rendered as ap - Museum), and all residents (tenants or purchasers) pealing as possible by eliminating existing hurdles should be drafted with the highest standards of

30 An Advisory Services Panel Report Before redevelopment, the city must address easements held by BNSF Railway, which, if not eliminated or at least clar - ified, could adversely affect successful revital - ization of the rail yards.

care and include clear statements of operational The establishment of this zoning district gives and financial obligations to protect the city’s in - the city the opportunity to address use issues, vestment and avoid subsequent, unintended sub - such as the incorporation of affordable and work - sidies of noncity operations. force housing, density bonuses, parking bonuses Planning and Zoning Considerations and flexibility, and LEED-related building stan - dards. The zoning district should also be drafted The city’s ownership of the property presents with the adjoining Barelas and South Broadway unique planning possibilities. Because the city neighborhood sector plans in mind but should be is now in complete control of all design and devel - opment issues, it should, as noted in the “Plan - entirely separate. The current SU-2 special neigh - ning and Design” section, use this period of own - borhood zone is not sufficiently comprehensive. ership to pursue an intense and creative master- The zoning district should specify the process planning process. The planning for the site should for negotiating and implementing a development be dynamic and evolutionary. During this period, agreement that will vest the rights of any devel - the city can control the issues usually subject oper working with the site. This type of devel - to zoning through deed restrictions, land disposi - opment agreement relates to the entitlement tion agreements, and short- or long-term lease process and should be distinguished from the Al - arrangements. varado or Paradigm Development agreements. Nevertheless, planning and zoning are different functions. With the input of a qualified land use The panel believes that the city should also adopt consultant who has extensive national experience, a flexible and creative regulatory approach to di - planning should lead to the creation of a special viding the property into separate lots or owner - zoning district for the rail yards with use cate - ships. The site parcel is large yet tight. It is likely gories and incentives specific to the site. The zon - too large for one owner to own and develop, or ing district should contain provisions regarding more important, for funding by one source of fi - an application process that requires appropriate nancing. A nontraditional approach to creating documentation and studies of traffic, parking, separate ownership will be required. Most likely, environmental impacts, noise, design guidelines, comprehensive cross-easement agreements, oper - landscaping, methods for determining public bene - ating agreements, shared parking, and utility fits, standards for seeking relief, incentives, and agreements similar to those for a large shopping the like. mall will be required.

Albuquerque, New Mexico, February 24 –29, 2008 31 Implementation

he redevelopment of the historic rail yards is downtown and surrounding neighborhoods, and a project that has been highly anticipated be - site-specific activities. cause of its size, history, and location within Tthe downtown area of Albuquerque. The ef - Marketing fect of the redevelopment on the adjoining neigh - The implementation of this redevelopment project borhoods of Barelas and South Broadway has also will require a very broad view of all the compo - been greatly anticipated. These neighborhoods nents that can create a great plan. The rail yards grew in response to activity on the rail yards and property needs to be properly marketed and now are challenged to redefine their future while needs to be made attractive for redevelopment. not losing their intrinsic character. The marketing program should include the identi - fication of target industries and target markets Guided by the themes of the assignment posed by that the site can serve. the sponsors, the panel has carefully considered the following implementation strategies. They are New Mexico has been very successful in attract - relevant to both predevelopment planning and on- ing and retaining business through aggressive site development activities and begin by identify - business incentives. The Albuquerque metropoli - If Albuquerque’s rail yards ing “big-picture” strategies—marketing, job cre - tan area and the state of New Mexico provide the are to flourish again and following incentives to reduce the overall cost of ation and economic development, oversight of the serve both business and doing business: community needs, the development process, and the role of the WHEELS implementation of prede - Museum as it relates to implementation of the rail • Double-weighted sales option; velopment planning yards redevelopment vision—that can be initiated • Technology-jobs tax credit; strategies as well as on- before redevelopment on the rail yards property. site development activi - The panel then addresses two categories of tasks • Manufacturing investment tax credit; ties is crucial. appropriate at the project level: connections to • Gross receipts tax exemptions (Industrial Rev - enue Bonds);

• Property tax abatements (Industrial Revenue Bonds);

• High-wage-jobs tax credit;

• Job-training incentive program;

• Interstate WATS tax exemption;

• Out-of-state tuition waiver and lottery scholar - ships; and

• New Mexico film incentives.

The city should also evaluate the potential of de - veloping a Foreign Trade Zone (FTZ) on the site or using the site as an extension of an existing FTZ

An Advisory Services Panel Report as a means of extending the marketability of the determine the market rent for the WHEELS Mu - property and maximizing the use of the active rail. seum and any other buildings that will be leased The purpose of the FTZ is to attract and promote to private entities. U.S. participation in international commerce and trade. Merchandise in an FTZ is considered to be The city has the opportunity to establish an imple - outside U.S. Customs territory and is subject to mentation and oversight process that is transpar - duty only when it leaves the FTZ for consumption ent and inclusive of all the stakeholders who will in the U.S. market. Exported FTZ merchandise is be affected by the redevelopment of Albuquerque’s not subject to duty liability. rail yards. In addition to engaging professionals who are dedicated to the redevelopment process The Albuquerque FTZ is just in the process of (city government representatives, community being activated. In fact, the Barelas Sector Plan representatives, the University of New Mexico, identifies the establishment of an FTZ as a recom - local developers), the city should establish an advi - mended program enhancement for the community. sory board. The responsibilities of such an advi - sory board should include the following: Job Creation and Economic • Hiring and supervising the asset manager; Development • Hiring and supervising the appraiser; The Enterprise Zone Act was enacted to stimu - late the creation of new jobs and to revitalize dis - • Supervising the property manager; tressed areas in qualified communities and coun - • Hiring the writer of the RFP; ties throughout New Mexico. With a strong public/ private partnership and a focused strategic plan, • Selecting finalists for the RFP; such areas can be redeveloped to enhance the business and job opportunities for local business - • Selecting the master developer; and people and residents. The program offers special incentives to businesses in the zone or who locate • Negotiating the development agreement. in the zone. The urban New Mexico zone is in The panel suggests the following membership for the southwest quadrant of Albuquerque. This the advisory board: program should be reviewed to identify any in - centives that could benefit job training and job • An elected representative from the Barelas creation, particularly for the communities of Bare - neighborhood; las and South Broadway that are adjacent to the rail yards. • An elected representative from the South Broadway neighborhood; Program Implementation and Oversight • A professor of architecture from the University of New Mexico whose additional duty would be The implementation of the panel’s recommended to protect the architectural integrity of the ex - plan must be guided by qualified professionals isting buildings and assist in the negotiations with experience in development and management for landmark designation; of complex projects. These professionals include a highly qualified asset manager to perform the pre - • A professor from the University of New Mexico development work, including contracting for the Business School whose duty would be to vet the demolition of buildings that will not be incorpo - financial strength of the developer applicants rated in the final plan and removal of hazardous and the viability of the financial plans presented materials. The firm should have national standing by the finalists; to write, disseminate, and manage the RFP process recommended to identify the developer • A representative from the mayor’s office; for the project. Furthermore, the services of an • A representative from the governor’s office; MAI appraiser with extensive experience in ap - praising industrial buildings should be engaged to • A representative from the state legislature;

Albuquerque, New Mexico, February 24 –29, 2008 33 The rail yards parcel is occupied by a complex of large industrial buildings, formerly used by the BNSF Railway for loco - motive repair operations.

the rail yards property would not exist. Their commitment to the history of the railroad and its significant effect on the development of Albu - querque has brought the redevelopment of the rail yards to this level of discussion and evaluation. The panel, therefore, recommends that the WHEELS Museum is deserving of an honored po - sition in this development process. Given the sig - nificant amount of public monies that have been invested and that will be required to bring this project to fruition, however, the museum needs to demonstrate its viability and make an economic contribution to the success of the project ulti - mately undertaken.

The panel proposes the following terms for the WHEELS Museum’s involvement in redevelop - ment procedures:

• A representative from the City Council; and • The WHEELS Museum should be granted oc - cupancy of the Blacksmith Shop on a leased • A highly respected local developer whose duty basis as part of Phase I of the development would be to assess the feasibility of proposed program. uses and the project as a whole. • The lease should be for a term of five years with Role of the WHEELS Museum in recurring five-year options. No payment will be Moving Forward due in the first year. But for the persistence, energy, and dedication of • Beginning in the second year, the museum the sponsors of the WHEELS Museum, the cur - should pay market rent for the space. The rent rent motivation to discuss the redevelopment of will be determined by the MAI appraiser.

34 An Advisory Services Panel Report • During the first year, the museum must obtain permanent exhibitions and educational program - possession of at least two vintage locomotives ming, and provide excursion rail trips. and establish a $60 million endowment for the The WHEELS Museum board has done consider - purpose of covering operating and rent ex - able planning and consensus building relative to penses without depending on public subsidy. carrying out its mission at the rail yards and now • The WHEELS Museum may have a right of must turn its attention to taking advantage of the first offer, with 30 working days’ notice, on adja - consensus and goodwill engendered by its efforts cent space, provided the museum is current in thus far to work with local stakeholders to put in its obligations. place a viable plan that can birth a new museum at this seemingly natural location. Next steps should Museum planning and development is a specific include the following: niche activity within the broader world of institu - tional development. Museums serve a particular • Developing a realistic startup budget; educational and cultural function within a commu - • Coming to agreement on the appropriate space nity. In addition, museum operations are a critical to begin operations within the rail yards, includ - component to ensure viable programming based ing negotiation of a formal lease; on a strategic collection plan and supported by ad - equate staffing, an appropriate budget, and a gen - • Inventorying the railroad companies and other erous endowment sufficient to allow a museum in - parties for artifacts suitable for exhibition stitution to serve its mission. (whether temporary or permanent);

Albuquerque currently is home to several muse - • Raising a collection budget of $50 million; ums, some located on the University of New Mex - • Raising an endowment of $10 million; ico campus. The Albuquerque Museum of Art and History, for example, had an attendance of 113,799 • Developing a staffing plan with minimal reliance in fiscal year 2007. Given the metropolitan popula - on city funding; tion base in combination with 5 million annual visi - tors, the city seems to be particularly well served • Developing realistic attendance targets for the short and long term; by this market. As a result, the proximity of the rail yards to downtown Albuquerque is a signifi - • Cultivating a relationship with the Smithsonian cant asset and can provide a link for those 5 mil - Institution; lion visitors to visit a new destination. The WHEELS Museum needs to determine a reason - • Developing a five-year program of work; and able “capture rate” for these visitors, as well as • Engaging a third-party museum specialist for local, regional, and statewide residents. who can measure progress of the WHEELS Hard at work since 1999, the WHEELS Museum Museum. has been laying the foundation for a transporta - The panel thinks the best location for the WHEELS tion museum in the city. The museum sees as its Museum in its startup phase is in the rail yard’s mandate providing an appropriate venue to pre - Blacksmith Shop, on the eastern portion of the serve artifacts and educate New Mexico natives property. The panel has recommended that the and the broader community about the importance entire 27.3-acre site be developed in phases. of transportation, particularly railroads, to the for - Similarly, the WHEELS Museum should develop mation and growth of the state. The objectives of a phased approach for its own potential growth the WHEELS Museum are to collect pertinent ar - and development on the rail yards property, based tifacts, assemble and preserve a collection pertain - on specific and measurable achievements. Such ing to transportation, display and make the collec - achievements should be based in demand, eco - tion available to the public, interpret the meaning nomic, and programmatic-oriented measures. behind the objects through both temporary and Accepted methods exist for measuring success

Albuquerque, New Mexico, February 24 –29, 2008 35 The presence of the The WHEELS Museum is a critical component in WHEELS Museum as part establishing a new focus and a new identity for the of the redevelopment plan rail yards redevelopment and that of its surround - for the rail yards would ing neighborhoods by building upon the neighbor - serve to both educate the hood’s traditional identities. The Barelas neighbor - public and celebrate the hood is rich in history and proud traditions. It is a city’s cultural history tied cradle of Hispanic migration to the Albuquerque to the railroad industry. area in search of employment with the railroad. Thus a long-term link exists between the Barelas community and the rail yards. This link is both economic and social in nature. Because so many members of the city’s Hispanic population claim roots in the Barelas neighborhood, they have among nonprofit institutions, including museums. strong connections to family, friends, and the place The WHEELS Museum’s potential expansion be - itself. This factor provides strength for the area yond the Blacksmith Shop should be predicated and gives the community a competitive advantage upon such success measures. in capturing its share of the economic growth that will result from successful redevelopment. In addition, the museum’s planning and develop - ment activities should be integrated with the over - Finally, the city’s Great Streets initiative can be all planning vision for the property. The rail yards an important element in upgrading transportation site, as envisioned by the panel, will be mixed use, infrastructure leading to the rail yards. In combi - made up of workforce housing, open spaces and nation, these assets will ideally overcome liabili - exhibit spaces, a public market, restaurants, light ties such as real and perceived crime and safety industrial (such as a film studio) uses, retail uses, concerns. Another potential liability exists in the and parking. city government’s strained financial resources, which make the range of physical, social, and eco - Historically, the rail yards have been an employ - nomic problems relevant to redevelopment of the ment center within the city of Albuquerque as well rail yards and surrounding neighborhoods difficult as for the Barelas and South Broadway neighbor - to deal with. hoods. This connection has been severed, and the rail yards have now been dormant for several A viable redevelopment plan for the rail yards years. A viable redevelopment plan for the prop - that includes a measured role for the WHEELS erty can renew this economic connection. Such a Museum can elevate the area to a point where the renewed economic connection can serve to revital - assets override the liabilities—thus potentially re - ize these challenged neighborhoods and can at the turning Barelas and South Broadway to their for - same time build upon the cultural identities that mer roles as key cultural identities inextricably are intrinsic to these communities. linked with Albuquerque’s rich history as a major hub of the railroad industry. To ensure such a revival of the rail yards, this process should be framed within the following Connection to Downtown and themes: Surrounding Neighborhoods • Reconnect the rail yards with Albuquerque’s During the interview process, the panel heard central business district and humanize this cor - suggestions from various stakeholders regarding ridor of connection through business promotion. the need to “connect” the property to downtown. • Invest in districts that surround the rail yards. Residents of the surrounding neighborhoods were especially vocal about their desire to see the rail • Establish a new focus and identity for the fu - yards reconnected in a manner that will not nega - ture of the rail yards. tively affect their communities. At the project

36 An Advisory Services Panel Report level, the following tasks can improve connection • Construct 30 units of permanent workforce and access to the rail yards: housing in the existing Storehouse building (and expansion thereof). • Acquire the 7.2-acre parcel to the north of the rail yards, and evaluate the purchase of prop - • Remediate hazardous materials on site, taking erty to the south for enhanced accessibility and advantage of the state’s Voluntary Remediation future expansion. Program. Specific remediation actions should include removing wood-block flooring in shop • Build a bicycle/pedestrian trail from the ex - buildings, establishing a groundwater monitor - panded site to Albuquerque’s central business ing program, thoroughly testing the site for district with appropriate landscape treatment additional environmental contamination, en - and amenities. capsulating lead paint, and remediating lead- • Create an access point to the site from Avenida contaminated soil and volatile organic compound – Cesar Chavez. contaminated soil. The panel recommends leav - ing remediation of asbestos-containing window • Implement sector plans that address capital and glazing for cleanup by the master developer. infrastructure needs. Implementation Sequence Site-Specific Activities The procedures described here outline the panel’s In addition to the zoning overlay described in the proposed steps for successful redevelopment of “Development Strategies” section, other site- the rail yards. Prior to redevelopment, all organi - specific tasks must be executed to implement the zational requirements should be put in place, regu - planning design and redevelopment vision for the latory standards should be established, and tradi - rail yards, including the following: tional predevelopment activities, such as clarifying title issues and remediation activities, • Develop a business marketing plan for the site should be attended to. Subsequent activities, fol - that addresses the strategic positioning of the lowing the selection of the proper developer, property and identifies development incentives should be implemented concomitantly during the that will attract the private sector to the site. phased-development scenario defined in the Development incentives may include the desig - “Planning and Design” section of this report. nation of the site as an Enterprise Zone or the establishment of a Foreign Trade Zone. • Negotiate with a utility company to provide ser - vices, including burying the gas line on the west side of the rail yards, and to construct a new electrical substation. • Retain the services of a nonprofit corporation for the development of the workforce housing. • Seek reimbursement from the railroad for haz - ardous materials remediation. • Demolish nonessential buildings. • Reach agreement with the WHEELS Museum regarding its occupancy of the Blacksmith Shop and possible expansion options.

Albuquerque, New Mexico, February 24 –29, 2008 37 Conclusion

he city of Albuquerque is respectful of both • Upon selection of a master developer, and to ini - the historic significance and the future po - tiate the planning process, create a zoning over - tential the rail yards possess. Their history lay district for the rail yards with use categories Tand future are, in fact, inseparable, and this and incentives specific to the site. understanding helped the panel craft recommen - dations it believes will facilitate the city’s ability Following these steps, the city will be positioned to guide the redevelopment process and ulti - to maximize the potential outcomes of a large- mately brand a new identity for the property that scale, mixed-use development scenario that in - benefits not only the city but also its communities cludes each of its desired elements—dedicated and their residents, the greater Albuquerque re - workforce housing, adaptive use of historic build - gion, and the entire Land of Enchantment. ings, improved connectivity to the surrounding communities of Barelas and South Broadway as For this grand vision to reach fruition, however, well as to Albuquerque’s central business district, both practical and creative steps will need to be use of sustainable design principles, and the future taken to ensure success. A redevelopment effort home of the WHEELS Museum—initially out - of this magnitude will take time, patience, and of lined in this report. With progress, Albuquerque’s course, sound management, and the city should urban fabric will significantly strengthen as infill pursue each step with precision and diligence. To development of this nature helps knit its distinct initiate this exciting course of action, the panel neighborhoods into a more seamless, prosperous, reemphasizes the following steps, which it deems livable urban tapestry. imperative prior to redevelopment of the rail yards: To this end, the panel challenges the city, as the purveyor of civic leadership, to implement a vision • Address the two easements held by the BNSF for the rail yards that is beyond everything that Railway so they can be eliminated, or at least has been discussed in the past. Such an ambitious clarified and limited, before development. achievement can instill a new sense of pride among neighboring communities, as residents • Identify responsibility for environmental reme - whose histories are deeply tied to the rail yards diation of the rail yards to render the property again are connected to and unified by a shared as appealing as possible to potential master de - past and prospects of a future legacy. When com - velopers before exposing it to the marketplace. plete, successful redevelopment of the rail yards is • Establish an advisory board responsible for hir - sure to be heralded as iconic as both the buildings ing and supervising an asset manager, an MAI and history that define them. appraiser, and a property manager, who will be the author of the RFP to be solicited and the eventual selection of a master developer.

38 An Advisory Services Panel Report About the Panel

Christopher W. Kurz Guillermo Aguilar Panel Chair Irvine, California Baltimore, Maryland A member of the American Institute of Architects Kurz is currently president and chief executive of - (AIA), Aguilar has more that 25 years of experi - ficer (CEO) of Linden Associates, Inc., a regional ence managing and developing large complex real estate services and mortgage banking com - projects. As a project executive, he has provided pany engaged in the financing, acquisition, devel - professional services including development ser - opment, and management of commercial property. vices, architectural design, program management, environmental planning and design, master plan - The firm also consults for corporations on real es - ning, and real estate development for construction tate matters. Previously, he was a cofounder, chair - projects totaling over $3 billion. man, and CEO of McGill Development Company, which grew into the fourth-largest commercial real With his strong management approach and exten - estate development company in the Baltimore sive development planning, design, and construc - metropolitan area. tion experience, Aguilar has successfully com - pleted projects to meet program, design, and Kurz served as chairman of the board of directors aesthetic goals, simultaneously meeting timeta - and cofounder of Columbia Bancorp and the Co - bles and budgetary requirements. The types of lumbia Bank, a billion-dollar, publicly traded bank projects he has worked on include areawide devel - holding company. As a principal at Alex Brown opment strategies and project implementation, Real Estate Group, Inc., he acquired investments retail/mixed-use development, medical/hospital fa - for pension fund clients. Other companies with cilities, hotels and resorts, residential multifamily which Kurz has been involved include J.G. Smithy buildings, and office and multiuse developments. Company, Maryland National Corporation, and Aguilar has proven his knowledge, professional - the Rouse Company. ism, and ability to work in various areas of the development and program management field in His professional affiliations include membership in multiple projects with many types of private and the Urban Land Institute, where he has been a public institutions, including the Irvine Co., Walt member of the national leadership group, chair of Disney Co., the city of Los Angeles, and the Los the Baltimore District Council, vice-chair of the Angeles Schools Bond Program. Small Scale Blue Development Council, and a Na - Aguilar is a registered architect in California, a tional Program Committee member. Kurz is also a full member of the Urban Land Institute, a council member of the International Council of Shopping member of the ULI’s Residential Neighborhood Centers, a past member of the National Associa - Development Council, and a thesis adviser for the tion of Industrial and Office Properties (NAIOP) Graduate School of Architecture at the Univer - and the Mortgage Bankers Association, and a past sity of Southern California. In addition, he serves board member of the Catherine McAuley Housing as a member of the Blue Ribbon Citizens Over - Foundation in Denver. He holds an MBA from the sight Committee for school construction in Los Wharton School at the University of Pennsylvania Angeles, overseeing over $15 billion of school and a BA from the University of Pennsylvania. bond construction.

Albuquerque, New Mexico, February 24 –29, 2008 39 Aguilar received a bachelor of architecture from Michael Berne the National University of Mexico, a master of ar - chitecture from Tulane University, and a master of New York, New York landscape architecture from Harvard University. Berne is the president of MJB Consulting, a New His work has been published in the Los Angeles York City –based retail real estate consulting con - Times, Women in Architecture, Landscape Archi - cern. MJB is retained by a mix of municipalities, tecture, and California Architects . quasi-public/nonprofit organizations, and private, for-profit developers to work on market analyses, Luis Belmonte merchandising plans, revitalization strategies, San Francisco, California tenant recruitment, and training sessions. The firm’s assignments span North America, with re - Belmonte is a principal of Seven Hills Properties, cent engagements in Atlantic City, New Jersey; developers of retail, multifamily, and industrial Cleveland, Ohio; Las Cruces, New Mexico; Min - real estate in California, Oregon, and Nevada. neapolis-St. Paul, Minnesota; Mobile, Alabama; Previously, he was an executive vice president of, Saskatoon, Saskatchewan; Wilmington, North and one of the founders of, AMB Property Corpo - Carolina; Winnipeg, Manitoba; and, of course, ration, where he ran the development program New York. ($250 million per year) and supervised manage - ment of assets (50 million square feet) in the west - Berne has written extensively for Urban Land ern United States. During his tenure at AMB, and has served on expert panels for the Urban Belmonte spearheaded its effort to enter the Mex - Land Institute and the International Economic ican market and developed its headquarters build - Development Council (IEDC). He has presented ing on the San Francisco waterfront. at the annual conventions of the IEDC, the Inter - national Downtown Association, the Local Initia - Before his tenure at AMB, Belmonte was a part - tives Support Corporation, the National Main ner with Lincoln Property Company, responsible Street Center, and the International Council of for industrial development projects in northern Shopping Centers’ Alliance Program, as well as California. Over the course of 16 years, he devel - numerous statewide conferences. He has lectured oped in excess of 18 million square feet of indus - at the University of Pennsylvania’s Graduate trial buildings. His responsibilities included site selection, financing, construction management, School of Planning and created his own course on leasing, and property management. urban retail for the Newman Real Estate Insti - tute (City University of New York). Last, he has Belmonte spent three years on active duty with appeared in a wide range of periodicals, including the U.S. Navy, during which time he rode a de - the Washington Post and the Financial Times . stroyer escort on coastal patrol in Vietnam and spent 13 months as the Naval Gunfire Liaison Of - Berne received his undergraduate degree at Co - ficer, Fire Support Coordinator, and forward ob - lumbia University, New York, and an MPhil from server with the First Marine Regiment. Columbia University in the United Kingdom.

He is a member of the Urban Land Institute, Modesto Bigas-Valedon where he chairs one of the Industrial and Office Park Councils. He is a past president of the San Philadelphia, Pennsylvania Francisco chapter of NAIOP. He is a board mem - ber of Boys Hope Girls Hope San Francisco and AIA-member Bigas-Valedon is currently the proj - Edgewood Center for Children, where he serves ect architect at Wallace Roberts & Todd (WRT) as finance chair. Belmonte graduated from the for the new Fraser Centre mixed-use project in University of Santa Clara with a BA (cum laude) State College, Pennsylvania, for Susquehanna and did graduate studies in political science at the Real Estate, LP. Most recently, he served as proj - University of Chicago and the University of Cali - ect architect for Charlottesville, Virginia’s new fornia, Berkeley. transit station in its historic Downtown Pedes -

40 An Advisory Services Panel Report trian Mall, which is the city of Charlottesville’s struction. She began her career with Metro-Dade first new construction seeking to achieve LEED County immediately following the completion of certification. The project is part of WRT’s larger her master’s degree from Northeastern Univer - urban design proposal developed for the city. sity in 1979.

While at WRT, Bigas-Valedon has been involved Beginning as a management intern, Gonzalez in the design of other projects of varying scale and worked for most of her county career in the capi - complexity. They include the award-winning Broad tal improvement field. County land acquisitions, & Washington high-rise complex in Philadelphia architect and engineer selection, and capital for Pitcairn Properties, the Tempe Town Lake budget expenditure oversight were some of her project in Arizona for Namwest, and the Armed responsibilities in the Capital Improvements Divi - Forces Retirement Homes Initiative in Washing - sion. This division was responsible for the devel - ton, D.C., for Clark Realty Capital. Prior to join - opment and implementation of the $200 million ing WRT, Bigas-Valedon was a senior designer at Criminal Justice Program. This general obligation Machado & Silvetti Associates, where he partici - bond program modernized the county’s criminal pated in a wide variety of projects, such as the justice system through the development of new One Western Avenue Graduate Student Housing courthouses, jails, police, and support facilities. for Harvard University, the Atelier 505 mixed-use In 1989, the Capital Improvements Division was development for the Druker Company, the Honan- merged with the county’s facilities and construc - Allston Branch of the Boston Public Library, and tion management divisions and Gonzalez was the Getty Villa renovations in Malibu, California. named director of the new Department of Devel - Bigas-Valedon received a bachelor of architecture opment and Facilities Management. from Cornell University and a master of architec - She received her BA from the University of ture in urban design from Harvard University. Florida. In 1989, she attended the Senior Execu - He is a registered architect in Massachusetts and tive Program in State and Local Government at a LEED Accredited Professional. At Harvard, the John F. Kennedy School of Government. he was a teaching assistant to Professor Rodolfo Machado, and he has served as part of the design faculty at the Boston Architectural Center. John J. Griffin, Jr. Boston, Massachusetts Diana Gonzalez Griffin joined Edwards Angell Palmer & Dodge Miami, Florida LLP in the fall of 2002, bringing with him over 34 Gonzalez is the president of DMG Consulting Ser - years of experience in the field of real estate law. vices, Inc., and the Consulting Group of South During the course of his career, he has repre - Florida, Inc. Both firms engage in management sented real estate developers, lending institutions, consulting services in the areas of project manage - and educational institutions. ment and facility development for nonprofit, gov - Griffin has repre sented the lender, developer, or ernment, and for-profit clients. Current clients in - institution in such varied projects as Copley clude the Beacon Council, Carter Goble Lee, Fitch Place, Natick Mall, Shopper’s World, the expan - and Associates Dade Community Foundation, sion of the Boston College football stadium, Point Miami-Dade County, and MGT of America. West Office Center and Point West Place in Fram - Before entering the private sector, Gonzalez was ingham, Massachusetts, and University Place, employed by Dade County as the director of the University Green, Cambridge, Massachusetts. In Department of Development and Facilities Man - addition, he recently represented Parametric agement. This agency provided central support Technology Corp. in connection with the develop - services in the areas of real estate acquisition and ment and safe-leaseback of its new corporate leasing, facility management, and building con - headquarters in Needham, Massachusetts.

Albuquerque, New Mexico, February 24 –29, 2008 41 In addition to his development and lending experi - Hart has been active with the Executive Commit - ence, Griffin supervised, strategized, and success - tee, the Program Committee, and the Inner City fully argued before the Supreme Judicial Court of and Urban Policy Committee, which organizes Massachusetts the case that secured the develop - the annual Urban Marketplace. He has also been ment permits for the quarry site on Route 128 in named a Senior Fellow at the University of Cali - Weston, Massachusetts. This case was probably fornia, Los Angeles (UCLA)’s School of Public Af - the longest-running land use battle in the history fairs for the 2007 –2008 academic year. of the commonwealth. Hart took early retirement as professor of sociol - Griffin began his career at Herrick, Smith, Don - ogy and director of the William Monroe Trotter ald, Farley & Ketchum and moved to Bingham, Institute at the University of Massachusetts, Dana & Gould. After Bingham, Dana, he spent 18 Boston, in 2002, after over 25 years with the years as a partner, member of the executive com - university. While there, he was also a Senior Fel - mittee, and three years as managing partner of low with the John W. McCormack Institute of Rackemann, Sawyer & Brewster in Boston. He Public Affairs for three years. On two separate then spent nine years as a partner at Hutchins, occasions, Hart was a visiting research sociologist Wheeler & Dittmar before coming to Edwards & at UCLA’s Ralph Bunche Center for African Angell. For more than 20 years, Griffin has been American Studies. listed in the real estate section of The Best Lawyers in America . As part of ULI Advisory Services panels, Hart served in New Orleans in 2005 after Hurricane Very active with Urban Land Institute on a na - Katrina, helping guide the city’s redevelopment, tional level, Griffin has served on various councils and in Washington, D.C., in early 2006, assisting and as chairman of one of ULI’s councils. He has that city with its $100 million, four-year Great spoken frequently at ULI meetings and is also Streets initiative. Hart has also cosponsored ULI program chair of the ULI District Council for advisory services panels, including a 2001 visit to Boston. Griffin has served on the executive com - Hollywood, California. That ULI report, “A Strat - mittee of NAIOP and currently serves on the Pro - egy for Hollywood’s Comeback,” has been guiding grams Committee, which he has previously redevelopment of this iconic neighborhood. chaired. His speaking engagements and publica - tions include “Legal Aspects of the Development Hart’s 25-plus-year history as a real estate devel - Process,” Urban Land Institute Real Estate oper includes serving as master developer of School, 1986 –2001, and “Professional Service CrossTown Industrial Park in Boston’s Roxbury Firms and the Real Estate Economy in Boston,” neighborhood—a 75-acre urban business park NAIOP, February 2003. with high-tech, biotech, university, office, retail, industrial, textile manufacturing, hotel, public util - ity, and residential tenants that opened in 1980. Philip Hart He was project manager for the $60 million, 5,000- Los Angeles, California seat West Angeles Cathedral in South Los Ange - les, which was dedicated in April 2001. He is se - Hart is executive director of the Urban Land nior adviser for the West Angeles Building Institute Los Angeles (ULI LA) District Council. Strategy Team for the West Angeles Campus and ULI LA was the first of the 62 ULI District West Angeles Village developments and part of a Councils in the United States, Europe, and Asia team involved with brownfields remediation and to reach 2,000 members. Hart also owns two small development in Carson, California. businesses located in Hollywood, California, one a real estate development company and the other an Active with issues of urban mass transit in both entertainment company. Boston and Los Angeles, Hart directed the South - west Corridor Special Mobility Study in Boston in A ULI member for over 20 years, Hart initially the early 1970s, an origin-destination study that joined when he lived in Boston. With ULI LA, was an element in the regional Boston Transporta -

42 An Advisory Services Panel Report tion Planning Review that led to the relocation of trict, the Illinois River waterfront in Peoria, Up - the Massachusetts Bay Transportation Authority town Charlotte, and downtown Cleveland. (MBTA) Orange Line, the creation of the MBTA Silver Line, and the creation of a new cross-town In addition, Morrison has recently focused on eco - arterial, Melnea Cass Boulevard. In Los Angeles, nomic development through tourism, including Hart was active with the Hollywood Chamber of work on the National Road Scenic Byway and Commerce in support of the Metropolitan Transit Anacostia Trails Heritage Area. She is also expert Authority (MTA) Red Line and currently serves in structuring and negotiating public/private part - on the MTA Expo Line Construction Authority nerships for major urban projects. She served for Urban Design Committee. 15 years as real estate adviser to the Pennsylvania Avenue Development Corporation in Washington, Hart has published widely on a variety of topics D.C., facilitating $1.4 billion of private investment and produced documentary films and syndicated in commercial and residential development proj - radio programs over the past 25 years. His docu - ects. She has also structured partnerships and mentary films Flyers in Search of a Dream , the conducted business planning for military base story of America’s first black aviator, and Dark reuse p rojects, including the Fitzsimons Army Passages, the story of the Atlantic slave trade, Medical Center (Colorado), the David Taylor Re - have been best sellers in the PBS Video catalogue search Center (Maryland), the Naval Ordnance for over a decade. Station (Kentucky), and Newark Air Force Base (Ohio). Hart earned his BA in sociology from the Univer - sity of Colorado, Boulder, where he was a cum Morrison’s housing work includes formulating an laude graduate as well as a student-athlete. He asset management strategy for the affordable port - was inducted into the university’s Distinguished folio held by the Albany, New York, Housing Alumni Gallery in 1995. He earned master’s and Authority; analyzing the market support for doctoral degrees in sociology at Michigan State mixed-income housing in New Haven, Connecticut; University. evaluating affordable housing legislation in Wash - ington, D.C.; preparing the North Suburban Con - Anita Morrison sortium’s Consolidated Plan in Massachusetts; and analyzing the feasibility of a planned new urbanist Washington, D.C. neighborhood for Pennsylvania State University.

Morrison manages Bay Area Economics (BAE)’s She also has extensive background in feasibility Washington, D.C., office, directing BAE assign - analysis and development planning for bioscience ments for the eastern United States. Since 1977, and R&D parks, including assignments for the she has specialized in market and financial feasi - Oregon Health Sciences University, Colorado Bio - bility analysis, public agency land disposition, af - science Park Aurora, the University of Wisconsin fordable housing, economic development for major –Madison, and the Virginia Biotechnology Re - urban centers, and economic and fiscal impact search Park. She has prepared a wide range of analysis. economic and fiscal impact analyses, including studies for the Johns Hopkins University, the She has extensive experience directing revitaliza - Washington Opera, the University of Maryland tion strategies, including work for neighborhoods Medical System, and the District of Columbia. Her adjacent to downtown Hampton, Virginia; the detailed analyses of the fiscal impacts of proposed Butchertown neighborhood in Louisville, Ken - historic preservation tax credits in the state of tucky; and the Park Place neighborhood in Nor - Oregon and housing/economic development incen - folk, Virgina. In Dayton, Ohio, Morrison evaluated tives in the District of Columbia have supported revitalization and redevelopment options for nine elected officials’ legislative considerations. obsolete shopping centers. She has developed spe - cial expertise in urban entertainment and arts dis - Morrison earned a master of public policy from the tricts through work in Pittsburgh’s Cultural Dis - University of Michigan. She is a member of Wash -

Albuquerque, New Mexico, February 24 –29, 2008 43 ington’s Committee of 100 on the Federal City, the International Economic Development Council, the Urban Land Institute, and the National Association of Installation Developers. She served on a ULI Advisory Panel to develop guidelines for strip commercial development and redevelopment.

44 An Advisory Services Panel Report $ ULI–the Urban Land Institute 1025 Thomas Jefferson Street, N.W. Printed on recycled paper. Suite 500 West Washington, D.C. 20007-5201