October 25, 2002 3535 Lawton Road Suite #100 Mr. Joseph Lapolla Orlando, FL 32803-3729 (407) 896-5851 Deputy Executive Director (407) 896-9165 fax Director of Engineering www.wilbursmith.com Canaveral Port Authority P.O. Box 267 Cape Canaveral, Florida 32920

RE: Canaveral Land Use Plan Final Report

Dear Joe:

On behalf of our team, we are pleased to submit our Final Report which summarizes the major findings and recommendations of our land use planning study for the Canaveral Port Authority.

We look forward to attending the scheduled public hearing on November 20, 2002. Any public comment provided at this meeting will be incorporated as an Addendum to the Final Report.

It has been a pleasure to work with you and your staff on this project.

Sincerely,

WILBUR SMITH ASSOCIATES

Robert R. Hahn Director, Community Planning

Enclosure

TABLE OF CONTENTS

SECTION 1 – INTRODUCTION ...... 1 Background...... 1 Client and Objectives ...... 2 Methodology...... 2 Executive Summary ...... 4

SECTION 2 – MARKET ANALYSIS ...... 7 Market Potentials for Port Canaveral...... 7 Sources of Demand ...... 7 Population Trends ...... 7 Tourism...... 8 Retail, Restaurants, and Related Potentials ...... 9 Hotel and Inn Market Potentials ...... 12 Entertainment Venue Potentials...... 15 Office Potentials...... 15 Marina Market Potentials ...... 16

SECTION 3 – PHYSICAL PLANNING CONDITIONS ...... 18 Overview of Sub-Areas ...... 19 Infrastructure...... 20 Existing Leases ...... 23 Land Development Capacity Analysis ...... 25 Planning and Design Objectives ...... 25

SECTION 4 – MARINA AREA ANALYSIS...... 27 Site Location and Description...... 27 Existing Uses ...... 27 Planning and Design Objectives ...... 27 Land Use Plan...... 28 Development and Improvement Plan...... 30 Impact on Existing Leases...... 32 Timing ...... 33 Infrastructure Improvements...... 34 Financial Feasibility...... 35

SECTION 5 – MULLET ROAD/SCALLOP DRIVE AREA ANALYSIS ...... 36 Site Location and Description...... 36 Existing Uses ...... 36 Planning and Design Objectives ...... 36 Land Use Plan...... 37 Development and Improvement Plan...... 39 Impact on Existing Leases...... 41

Port Canaveral Land Use Plan – Final Report i

SECTION 5 – (Continued) Timing ...... 42 Infrastructure Improvements...... 43 Financial Feasibility...... 43

SECTION 6 – COVE AREA ANALYSIS...... 44 Site Location and Description...... 44 Existing Uses ...... 44 Planning and Design Objectives ...... 44 Land Use Plan...... 45 Development and Improvement Plan...... 48 Impact on Existing Leases...... 51 Timing ...... 53 Infrastructure Improvements...... 53 Financial Feasibility...... 54

SECTION 7 – COLUMBIA ROAD AREA ANALYSIS ...... 55 Site Location and Description...... 55 Existing Uses ...... 55 Planning and Design Objectives ...... 55 Land Use Plan...... 56 Development and Improvement Plan...... 57 Impact on Existing Leases...... 58 Timing ...... 60 Infrastructure Improvements...... 60 Financial Feasibility...... 60

SECTION 8 – BANANA RIVER AREA ANALYSIS ...... 61 Site Location and Description...... 61 Existing Uses ...... 61 Planning and Design Objectives ...... 61 Land Use Plan...... 62 Development and Improvement Plan...... 63 Timing ...... 65 Infrastructure Improvements...... 65 Financial Feasibility...... 65

SECTION 9 – OVERALL LAND USE PLAN AND ILLUSTRATIVE DEVELOPMENT PLAN...... 66 Creating Attractive Mixed-Use Development ...... 69 Supporting Water-Dependent and Water-Related Economic Uses ...... 69 Enhancing Tourism and Creating an Attractive Area ...... 70 Separating Incompatible Uses...... 70 Preserving Compatible Existing Uses and Lease Patterns ...... 70 Creating Efficient Infrastructure and Parcelization Patterns ...... 70

Port Canaveral Land Use Plan – Final Report ii

SECTION 10 – IMPLEMENTATION...... 71 Development Controls...... 71 Existing Leasehold Interests...... 71 Parcelization...... 72 Ground Rent...... 73 Implementation Process...... 74 RFP Process ...... 75 Developer Solicitation and Implementation Process ...... 75 Action Plan ...... 78

LIST OF FIGURES Figure 1 – Location Map...... 1 Figure 2 – Study Area...... 2 Figure 3 – Sub-Areas...... 4, 18 Figure 4 – Proposed MAGLEV Routes ...... 22 Figure 5 – Lease Expirations...... 23 Figure 6 – Comprehensive Lease Map ...... 24 Figure 7 – Expired Leases by Land Use...... 25 Figure 8 – Marina Area Land Use Plan ...... 28 Figure 9 – Marina Area Illustrative Development Plan...... 30 Figure 10 – Marina Area Illustrative Parcelization Plan...... 32 Figure 11 – Marina Area Lease Impact Map ...... 33 Figure 12 – Mullet Road/Scallop Drive Area Land Use Plan...... 37 Figure 13 – Mullet Road/Scallop Drive Area Illustrative Development Plan...... 39 Figure 14 – Mullet Road/Scallop Drive Area Illustrative Parcelization Plan ...... 41 Figure 15 – Mullet Road/Scallop Drive Area Lease Impact Map...... 42 Figure 16 – Cove Phase II Area Land Use Plan...... 46 Figure 17 – Cove Phase II Area Illustrative Development Plan...... 48 Figure 18 – Cove Phase II Area Illustrative Parcelization Plan ...... 52 Figure 19 – Cove Phase II Area Lease Impact Map...... 53 Figure 20 – Columbia Road Area Land Use Plan ...... 56 Figure 21 – Columbia Road Area Illustrative Development Plan...... 58 Figure 22 – Columbia Road Area Illustrative Parcelization Plan...... 60 Figure 23 – Columbia Road Area Lease Impact Map ...... 60 Figure 24 – Banana River Area Land Use Plan...... 62 Figure 25 – Banana River Area Illustrative Development Plan ...... 64 Figure 26 – Overall Land Use Plan ...... 67 Figure 27 – Overall Illustrative Development Plan...... 68

LIST OF TABLES Table 1 – Population Growth Trends and Projections...... 7 Table 2 – Brevard County Tourism Trends ...... 8 Table 3 – Resident Non-Auto Retail Spending vs. Retail Sales ...... 10 Table 4 – Eating and Drinking Expenditures vs. Sales ...... 10 Table 5 – Miscellaneous/Specialty Expenditures vs. Sales ...... 11 Table 6 – Local Area Retail Expenditure Trends...... 11 Table 7 – Local Area Restaurant-Related Expenditure Trends...... 11 Table 8 – Growth in Rooms Available, Rooms Demand, and Rooms Revenue...... 13 Table 9 – Estimated Future Room Demand 2002-2017 ...... 14 Table 10 – Age Distribution of Population Living Within 60 Miles of Port Canaveral...... 15 Table 11 – Overall Study Area Land Use by Sub-Area ...... 19

Port Canaveral Land Use Plan – Final Report iii

SECTION 1 – INTRODUCTION

BACKGROUND

Port Canaveral, located in Central Brevard County, Florida (see Figure 1 – Location Map) enjoys the distinction of being the world’s only quadramodal transportation hub providing ready access to land, sea, air, and space transportation services. Port Canaveral’s facilities and activities play an important role in the regional, State and U.S. economy. The cruise industry, cargo transport, commercial fishing fleet, industrial park (including marinas), charter fishing, and park facilities are the major economic components. As Central Florida’s “outlet to the sea,” the Port pumps over $800 million into the regional economy. Nearly three-fifths of this regional impact is created in Brevard County.

The multitude and varied character of land uses located in the Port have a major financial impact on the growth and stability of the region. The Port’s convenient access to major highways, rail and air transportation, and its close links to the Kennedy Space Center enhance the development potential of the Port.

Port Canaveral Land Use Plan – Final Report 1 CLIENT AND OBJECTIVES

The team of Wilbur Smith Associates (Orlando, Florida), The Cecil Group, and Bonz/REA Inc. (Boston, Massachusetts), and Stottler Stagg & Associates (Cape Canaveral, Florida) was retained by the Port in January 2002 to evaluate the land use and market opportunities for the future development of the commercial/industrial and Cove areas of Port Canaveral. The Study Area is approximately 280 acres and includes the area to the north and south of George King Boulevard, the property north of Mullet Road, the undeveloped land south of Glen Cheek Drive, and the undeveloped property in the northwest section of the new SR 528 interchange. (See Figure 2 - Study Area, below.)

Figure 2 – Study Area

Methodology

The study approach was organized around five tasks. The following is an overview of these tasks and the work that was accomplished under each element:

Project Initiation, Organization and Management • “Kick-off” meeting with the Port and interested stakeholders

Data Collection and Review of Existing Conditions • Assemble existing maps and data • Define the market/economic areas for the major land use types • Review existing market conditions that affect future land use and development • Conduct site visits • Interview tenants and key stakeholders

Port Canaveral Land Use Plan – Final Report 2 Analysis of Trends and Opportunities • Evaluate the various market sectors (The Team was requested by the Port to not evaluate residential uses.) • Evaluate the uses to remain and be relocated • Analyze the potential land development capacity • Analyze existing parcel configurations • Recommend phasing for assembling key parcels • Analyze future infrastructure capacity needs • Prepare a Land Use Plan

Alternative Development Plan Scenarios • Analyze alternative development scenarios • Implementation and phasing • Financial analysis • Workshop with Port Commissioners

Final Report and Development Plan • Final Report and Development Plan • Final Presentation

Port Canaveral Land Use Plan – Final Report 3 EXECUTIVE SUMMARY

This land use planning study was initiated in January 2002 by the Canaveral Port Authority to provide guidance into the redevelopment of the commercial/industrial and “cove” area of Port Canaveral. The redevelopment area covers five sub-areas: Marina Area, Mullet Road/Scallop Drive, Canaveral Cove (Phase II), Columbia Road and a site on the Banana River west of the Port’s main entrance.

The following is a summary of the major findings and recommendations of the study.

Market Support – Future retail development should be oriented to the tourist-related specialty and convenience retail market modeled after a “festival market area” similar to Cocoa Village. There is a market potential for approximately 75,000 square feet of tourist-related retail space over a 3-10 year period. The existing hotel market consists of leisure travelers attracted by the area’s tourist attractions and business travelers involved with operations of the Kennedy Space Center. There is a market potential to develop one or more high quality limited service hotels of 100-150 rooms in the Study Area along with a 350-room hotel and adjoining 25,000 square feet of conference/meeting facility. Based upon tourist visitation to the region, there is also the potential to develop a moderate scale entertainment venue consisting of an outdoor concert/amphitheatre that would accommodate between 1,500 to 2,000 plus attendees. Demand is also strong in the region and at Port Canaveral for marina uses. While the current office market in Port Canaveral is weak, the study identifies limited demand for well located quality office space buildings over the next 10-15 years.

Sub-Area Land Use Plans — For land planning purposes, the Study Area was divided into five sub-areas illustrated in Figure 3 – Sub-Area Map.

Figure 3 – Sub-Area Map

Port Canaveral Land Use Plan – Final Report 4 The following is a summary of the recommended land uses for each of these areas:

(1) Marina Area (Sub-Area A) – The overall redevelopment planning and design objective is to create a high quality small boat district oriented to recreational boating uses, while also providing supply, berthing, and servicing opportunities for small commercial boats. The recommended land use plan recommends the expansion of the marina slips and provides for the future realignment of the finger piers so that they are parallel and aligned north to south. On the landside, the plan envisions the relocation of the Scallop Drive extension eastward from its current location to allow for the consolidation of numerous separate parcels held by Cape Marine into a single, connected leasehold. The improvement plan recommends the future development of one or more restaurants along the marina edge and the creation of “destination” retail uses appealing to tourists. The use of the bulkhead edge along the Marina is encouraged for pedestrian access. The extension of a publicly-accessible walkway around the majority of the small boat basin perimeter connected to the Port’s End Park is another feature of the proposed plan.

(2) Mullet Road/Scallop Drive (Sub-Area B) – The overall planning and design objective is to redevelop the area so the waterside portion of the sub-area continues to serve in the mid- term commercial fishing and small marine industrial uses. Deeper land parcels are envisioned to be created to maximize the locational advantages of this area for these uses. The eastern portion of the area would provide the land area to support the mixed-use development within the Cove Phase II Area, parking, and other land uses to unlock the economic potential of this area. The south section of the area would remain a mix of light industrial and commercial land uses in the short term. The land use plan envisions the extension of a new east-west road to allow for the rearrangement of existing leaseholds by adding land now occupied by Scallop Drive and joining it with portions of parcels to the south. The plan also promotes the creation of pedestrian connections to the bulkhead edge and maximizing tourist interest into activities of the commercial fishing and other maritime uses.

(3) Cove Phase II (Sub-Area C) – The overall planning and design objective is to transform this area into a mixed-use district accenting its unique waterfront location for port-related uses, tourism, retail, restaurant and entertainment uses. Water-related and water-dependent uses are concentrated on the water’s edge with higher density mixed uses located further to the south. The creation of civic open space and an outdoor entertainment facility will give the area a unique “sense of place”. Providing an improved street network, shared parking strategies, and an attractive pedestrian environment are fundamental to the success of the proposed mixed-use district. A new street would be created to the south and parallel to Glen Cheek Drive that would directly align with a further extension to the west within the Mullet Road/Scallop Drive area.

(4) Columbia Road (Sub-Area D) -- The overall planning and design objective is for this area to continue to remain a mix of office, light industrial and industrial uses. Perimeter parcels that are visible from George King Boulevard are highly desirable and would be promoted as “gateway” locations for high value or larger scale development. An extension of Dave Nisbet Drive is recommended as a direct entrance drive into the Columbia Road Area to support the overall land use pattern. The new SR 528 interchange, the realignment of George King Boulevard, the new intersection with Dave Nisbet Drive, and the creation of landscaped retention pools at the entrance of the sub-area increases the overall

Port Canaveral Land Use Plan – Final Report 5 developability and value of the property. The improvement plan recommends that those businesses and structures developed as small light industrial operations that back onto George King Boulevard be relocated to open this land area for future development for office or larger commercial uses. An additional recommendation of the plan is to reorganize the future leasehold limits of the Premier Cruise Line office building site by relocating Challenger Road to the north.

(5) Banana River Area (Sub-Area E) – The overall planning and design objective is to develop this site for future use as a mid-rise hotel complex and adjoining conference center. The design of the site would maximize the property’s visible location and approaches along SR 528 and its natural edge along the Banana River. The architecture of the hotel and conference facility would be of high quality and symbolic of the gateway and distinctive character of the area.

Implementation --The final section of the land use study addresses the implementation issues required to successfully execute the proposed land use plans. Establishing development controls for the entire redevelopment area (for all new development as well as modifications to existing buildings and new construction on existing leased properties) prior to implementation is identified as being critical to the overall success of the program. The study provides guidance on the steps required to identify qualified developers to implement the redevelopment program, including the most commonly accepted approach, the request for proposal (RFP). The implementation section includes a discussion of the major elements needed to formulate a successful disposition strategy including flexibility in parcelization, determining the qualifications of the development team, specifying the basic lease terms, and final negotiations. The study concludes with the presentation of an Action Plan summarizing the steps required to undertake a successful implementation process.

Port Canaveral Land Use Plan – Final Report 6 SECTION 2 – MARKET ANALYSIS

Market Potentials for Port Canaveral

As detailed in the earlier Existing Conditions report prepared in May 2002, the basis of support for new commercial development at Port Canaveral is primarily based upon the demand for goods and services from the local market area, tourism, Port Canaveral cruise ship and cargo operations, and the potential expansion of activities at the Kennedy Space Center, particularly the new International Space Research Park.

Sources of Demand

The markets served by new commercial and other development at Port Canaveral are primarily the persons living, working in, and visiting Brevard County. For tourist destination and entertainment related uses the market area would be expanded to include residents and tourist visitors within approximately an hour’s drive time, which includes both the Orlando and the Daytona Beach areas. Although retail and restaurant uses may also draw tourist patrons from within an hour’s drive time, these uses are expected to have limited draw from the permanent residential population in outlying areas and thus the market area for these uses is considered to be limited primarily to the coastal communities of Port Canaveral, Cocoa Beach, and Merritt Island.

Population Trends

Between 1990 and 2001, the population of Brevard County increased by 83,000 persons, an average annual gain of 1.8 percent. Much of the growth occurred in the southern portion of the County, primarily the Melbourne-Palm Bay area. In the five-year period ending in 2006, the county’s population is expected to grow at a somewhat lower rate, 1.2 percent per year. (See Table 1.) TABLE 1

POPULATION GROWTH TRENDS AND PROJECTIONS SELECTED AREAS INCLUDING CENTRAL COASTAL BREVARD CO.

2001-2006 Ann. Avg. 1990 2001 2006 % Growth

Brevard Co. 398,978 482,073 510,952 1.2%

Central Brevard 102,877 119,962 125,612 0.9%

Coastal Areas 58,874 66,825 69,574 0.8%

Source: Claritas, Inc.

As evidenced in the table above which shows projections prepared by Claritas, a national demographic and economic consulting firm, the coastal communities of Port Canaveral, Cocoa Beach, and Merritt Island are estimated to increase by 2,750 full-time residents, excluding seasonal residents.

Port Canaveral Land Use Plan – Final Report 7 Tourism

According to the Space Coast Office of Tourism, the most recent data available indicates that in 1998 Brevard County hosted approximately 1.6 million overnight visitors and 2.2 million daytime visitors. Visitors target a variety of destinations and activities; prominent destinations include the area’s Atlantic Ocean beaches, Kennedy Space Center, and the Merritt Island National Wildlife Refuge. Beach activities, dining and shopping comprise the most popular visitor activities. Among Space Coast visitors, 69 percent visit the beach, 72 dine out, and 68 percent shop at local stores. Directly related to beach visitation is Ron Jon’s Surf Shop, which attracts 2.4 million visitors annually and is considered Cocoa Beach’s top tourist attraction.

From 1994 to 1998, overnight visitors increased by an average annual rate of 5.9 percent; tour tickets at Kennedy Space Center achieved slightly lower gains of 4.8 percent per year. (See table below.) Day visitors have increased by the lower rate of 1.6 percent annually; the largest share of this traffic originates from the growing Orlando metropolitan area. Annual visitor spending appears to have achieved substantially more rapid growth, but after adjusting for inflation, the residual rate shows “real” spending increases of roughly 7 to 8 percent per year. (See Table 2.)

TABLE 2

BREVARD COUNTY TOURISM TRENDS

Avg. Ann. 1993 1998 Growth

Overnight Visitors: 1993-1998 1,200,000 1,600,000 5.9% Day-Trips: 1993-1998 2,000,000 2,200,000 1.6% KSC Tour Tickets 1995-2000 1 1,459,000 1,842,000 4.8% Annual Visitor Spending ($ millions) $360.0 $659.3 10.6% 1993-1998

1 Delaware North Corporation; data for 1995 and 2000.

Source: Space Coast Office of Tourism; Delaware North Corp.

Tourism and entertainment oriented development at Port Canaveral is also expected to attract visitation from tourists in both the Orlando and Daytona Beach areas. Although tourism has declined as a result of the damage inflicted on the national tourism industry in the wake of September 11, 2001 and the continued economic stagnation, the Orlando area’s tourism industry and overall economic growth are expected to continue, enhancing business opportunities for Brevard County’s tourist-related businesses.

The expanded cruise industry at Port Canaveral offers a potentially strong opportunity for the development of tourism related businesses at Port Canaveral, including hotel, retail, restaurant, and related activities. Port Canaveral serves as the homeport to five cruise ships for three major cruise lines. The newest ship, the Carnival Pride, made its maiden voyage in January 2002; an additional ship of the Holland America line (a subsidiary of Carnival Cruise Lines) is scheduled to begin service in November 2002. At this time, Port Canaveral cruise ships accommodate a

Port Canaveral Land Use Plan – Final Report 8 total of 11,500 passenger berths. In 2000, Port Canaveral ranked second (to Miami) in total passenger embarkations in North America. The industry growth at Port Canaveral, however, has exceeded Miami’s. In the 1990s, Port Canaveral’s embarkations increased from 395,000 to over 1 million.1 This growth rate of nearly 10 percent per year exceeded the overall industry growth rate of 7.5 percent, as well as Miami’s passenger growth rate of 3.9 percent. As a result, Port Canaveral increased its share of the North American market from 12.4 percent in 1990 to 15.5 percent in 2000.

Retail, Restaurants, and Related Potentials

Port Canaveral’s retail businesses focus primarily on restaurants, with other miscellaneous businesses selling goods such as tackle, seafood, etc. While there are only five restaurants, collectively these have been able to give the Port recognition as a destination for waterfront eating and drinking.

These businesses rely to a large degree on visitor spending. Different surveys prepared for the Space Coast Office of Tourism estimate that tourists account for 52 percent and 31 percent of local restaurant sales.2 Anecdotal evidence supports this; interviewed business proprietors generally identify their clientele as an approximately even mix of tourist and local clientele (with “local” clientele encompassing diners from the Central Florida market). Port Canaveral restaurants have achieved varying performances. Some have been extremely strong and propose to expand, while others have failed. Restaurant failures, however, are common in the industry and in large measure reflect the abilities of the individual restaurateur rather than a lack of potential demand.

Competitive destinations for tourist-driven retail/restaurant businesses include the Cocoa Beach Pier and Cocoa Village. The Cocoa Beach Pier is located in the northern part of Cocoa Beach. The Pier extends out over the Atlantic Ocean and offers 25,000 square feet of enclosed space for retail and restaurant businesses. These businesses, all operated by a common entity, appeal primarily to beach-related tourists and local traffic. Management reports that the Pier’s seasonal business cycles are consistent with the cycles at the Port; highest activity levels occur from February through April, with visitors coming from the northeastern and midwestern United States, while summer tourism features a substantially heavier representation of visitors – estimated at roughly 50 percent – from Central Florida.

Cocoa Village is located on the mainland, just south of SR 520, approximately ten miles from Port Canaveral. While no official figure is available, the Village occupies a ten- to twelve-block area. The Village incorporates a mix of retail stores including specialty foods (e.g., baked goods, coffee, and ice cream) and other specialty stores encompassing arts-related goods, clothing boutiques, gifts, etc. The Village has gained status as a destination, and a spokesman for the Cocoa Village Association estimates that tourists provide more than 50 percent of the market support for Village retailers. The Village’s retail space is 100 percent occupied, and vacancies are filled almost immediately.

1 International Council of Cruise Lines; Business Research and Economic Advisors. These figures exclude casino cruise passengers embarking from Port Canaveral. 2 Definitions of “tourist” and “local” vary: some sources define “local” as to include all of Brevard County, central Florida visitors and seasonal residents; others limit “local” to the nearby communities of central Brevard County. Florida Marine Research Institute.

Port Canaveral Land Use Plan – Final Report 9

The general retail needs of the area residents are expected to be met by the major existing and proposed retail centers and box retailers located in the region, primarily along SR 520 on Merritt Island, including the 800,000 square foot Merritt Square Mall anchored by Burdines’s, Dillard’s, JC Penney, Publix, and Sears. Developers have entered approval processes for the planned Brevard Crossings Mall, to be located at the I-95/SR 524 interchange in Cocoa. If approved, this property would contain 1.1 million square feet with five department store anchors, an additional 110,000 square feet for pad sites, a 300-room hotel, and 3,300-seat cineplex. In addition, developers are in the process of planning a demolition and redevelopment of new retail space on the site of Bayview Shopping Center, located in Cocoa Beach just south of the Cape Canaveral city limit on SR 528. TABLE 3

An analysis of net retail expenditure RESIDENT NON-AUTO RETAIL SPENDING vs. RETAIL SALES ($ millions) “inflow/outflow” indicates that Bre- BREVARD TRADE AREAS vard County achieves a market Central capture rate of 133 percent for over- Brevard Coast 1 Brevard County all non-auto retail spending. (See Local Resident Retail Spending $482.5 $3,018.0

Table 3.) Thus, the County achieves Local Retail Sales $776.0 $4,025.2 a net spending inflow of 33 percent.3 In comparison, the coastal commun- Market Capture 160.8% 133.4% ities of central Brevard County 1 Includes Cocoa Beach, Cape Canaveral and Merritt Island.

achieve a significantly higher market Source: Claritas, Inc.; AGS; Bonz/REA, Inc. capture of 61 percent, indicating a higher visitor spending component.

TABLE 4 For eating and drinking establish- EATING AND DRINKING EXPENDITURES vs. SALES ($ millions) BREVARD TRADE AREAS ments, the coastal communities

Central achieve substantially higher spending Brevard Coast 1 Brevard County inflows. Central coastal Brevard’s 210

Local Spending at Eating/Drinking Establishments $79.4 $499.9 percent capture rate reflects the area’s status as a destination for tourists Sales at Eating/Drinking Establishments $167.2 $670.1 seeking eating and drinking alterna- Market Capture 210.5% 134.1% tives close to lodging facilities and/or 4 1 Includes Cocoa Beach, Cape Canaveral and Merritt Island. waterfront settings. (See Table 4.)

Source: Claritas, Inc.; AGS; Bonz/REA, Inc.

Table 5 on the following page shows even higher market capture rates for local retailers in the miscellaneous retail category. Statistics for this category most likely include shops selling surf and beach equipment as well as gift shops, drug stores and other such goods. The high net inflows in these categories indicate the importance of visitor spending and the potential for prospective retailers locating in the Port area.

3 This would indicate that one-fourth of all retail sales are derived from visitor spending; this is roughly consistent with the Tourism Development Council’s overall estimate that visitors account for 27 percent of retail spending. 4 These figures are consistent with the estimate that 52 percent of local restaurant spending is derived from visitors.

Port Canaveral Land Use Plan – Final Report 10 Table 5

MISCELLANEOUS/SPECIALTY EXPENDITURES VS. SALES BREVARD TRADE AREAS

Central Brevard Coast 1 Brevard County

Local Spending at Miscellaneous/Specialty Stores $66.4 $392.1

Sales at Misc/Specialty Stores $164.3 $683.3

Market Capture 247.4% 174.3%

1 Includes Cocoa Beach, Cape Canaveral and Merritt Island.

Source: Claritas, Inc.; AGS; Bonz/REA, Inc.

Table 6 Looking to the future, the likely future retail Local Area Retail Expenditure Trends expenditures in the local area consisting of Cape

Canaveral, Cocoa Beach, and Merritt Island are $1,200

expected to reach $891.4 million by 2007 and $1,000

$1,024.1 million by 2012 based upon past trends. $800 The introduction of the proposed Brevard $600 Crossings Mall would significantly increase the $400 level of inflow from non-area residents since the Retail Sales ($ millions) $200 new mall would draw most of its sales from $0 beyond the local area. The new mall should 2002 2007 increase retail inflow by more than $300 million 2012 annually, nearly doubling the currently estimated Local Mkt. Visitor Mkt. inflow. (See Table 6.) (Amounts in $-millions) 2002 2007 2012

The local expenditures in restaurants and related Local Area Expenditures $482.5 $559.3 $648.4 establishments are expected to increase to $92.1 Visitor & Non-Local Sales $293.5 $332.1 $375.8 million by 2007, with visitor expenditures Total Sales $776.0 $891.4 $1,024.1 increasing to $101.7 million, excluding the induced demand that could result from sales to cruise ship visitors and others resulting from the creation of a tourist oriented festival retail area at Port Canaveral. The retail expenditure profiles and projections support this concept. The Space Coast Tourism Development Council estimates that, while visitors account for 27 percent of retail sales, they account for larger percentages of sales at gift/card shops (32 percent), and restaurants.5 (See Table 7.) TABLE 7 Local-Area Restaurant-Related Expenditure Trends

(Amounts in $-millions) 2002 2007 2012 Local Area Expenditures $79.4 $92.1 $106.7 Visitor & Non-Local Sales $87.8 $101.7 $118.0 Total Sales $167.2 $193.8 $224.7

5 Recent studies have estimated that tourist spending has accounted for 31 percent and 52 percent of restaurant spending.

Port Canaveral Land Use Plan – Final Report 11 Given the existing competition for land, retail development at Port Canaveral should primarily be oriented to the tourist-related, specialty, and convenience retail and services. The model would be of a festival market area, similar to that of Cocoa Village. The product would consist of one to two story buildings, with retail and restaurant uses on the ground floor and office, inn, or retail/service uses on the second floors. The retail/restaurant and related uses are anticipated to include a wide variety of local and regional specialty retailers, seafood and other restaurants, fishing and marine related stores, convenience retailers, and personal service establishments. We believe that the retail expenditure profiles and projections support this retail concept.

Hotel and Inn Market Potentials

Although tourism has declined as a result of the damage inflicted on the national tourism industry in the wake of September 11, 2001 and the continued national economic stagnation, this analysis is focused on the longer-term market potentials. While the near-term prospects for hotel development have weakened, the longer-term prospects remain good. The central Brevard County hotel market derives its support from an approximately equal mix of business travelers – typically on Kennedy Space Center-related business – and leisure tourists. In recent years the market has successfully absorbed four new properties containing a total of approximately 400 new rooms. While occupancy rates have declined in the aftermath of the September 11, 2001 terrorist attacks, occupancies are likely to return to historical average levels within the next three to five year timeframe.

During the past five years, the overall Brevard County lodging market has exhibited annual occupancy levels in the low 60 percent range and average daily rates (ADR) that have increased from $62.76 in 1997 to $74.66 in 2001. These data reflect the entire industry, including older less competitive facilities as well as the newer hotels developed in the area. Focusing upon the more competitive, newer hotels, we find that the occupancy levels have averaged in the mid/high-60 percent to low 70 percent range and the ADRs have increased from $70.04 in 1997 to $81.59 in 2001.

Following a 12-year period (1987-1999) in which no new hotel rooms were added to the local supply, in the past three years the local area supply has increased significantly. These increases are contained in four new properties, including the Hampton Inn (150 rooms, February, 1999), the Holiday Inn Express & Suites (60 rooms, August 2000), the Courtyard by Marriott (131 rooms, January, 2001), and the Quality Suites Cocoa Beach (48 rooms, August, 2001). These new properties, along with their performance indicators, are illustrated in Table 8 on the following page.

Port Canaveral Land Use Plan – Final Report 12 Table 8 In addition to the current Growth in Rooms Available, Rooms Demand, and Rooms Revenue inventory, there are a number of proposals for new hotels within Days/ Rooms % Inc./ Room % Inc./ Rooms % Inc./ Year Year Available (Dec.) Nights (Dec.) Revenue (Dec.) Cape Canaveral and Cocoa 1987 365 1,961 - 493,246 - $24,652,431 - Beach. Among these, a 156-unit 1988 366 2,023 3.1% 534,582 8.4% $27,718,066 12.4% 1989 365 2,023 0.0% 553,796 3.6% $30,613,857 10.4% Country Inn and Suites has been 1990 365 2,023 0.0% 515,400 -6.9% $30,027,187 -1.9% approved for development by 1991 365 2,023 0.0% 504,324 -2.1% $29,089,396 -3.1% 1992 366 2,023 0.0% 518,293 2.8% $30,947,251 6.4% Cambridge Commercial Realty of 1993 365 2,023 0.0% 482,172 -7.0% $28,375,818 -8.3% Minneapolis, Minnesota on a 7- 1994 365 2,023 0.0% 489,556 1.5% $29,451,682 3.8% acre site along SR 528 proximate 1995 365 2,023 0.0% 496,201 1.4% $30,739,679 4.4% 1996 366 2,023 0.0% 510,888 3.0% $32,523,157 5.8% to the southern Port Canaveral 1997 365 2,023 0.0% 524,260 2.6% $36,719,202 12.9% access point. According to the 1998 365 2,023 0.0% 508,754 -3.0% $36,426,797 -0.8% 1999 365 2,161 6.8% 527,562 3.7% $40,031,381 9.9% developer, the project has 2000 366 2,198 1.7% 572,781 8.6% $44,848,769 12.0% obtained financing commitments 2001 365 2,384 8.5% 571,695 -0.2% $46,644,605 4.0% and will begin construction by CAG 1.40% CAG 1.06% CAG 4.66%

April 2002, with completion Notes: 1987 reflects the May opening of the 148 room Doubletree (built as a Howard Johnson Plaza). scheduled for February 2003. 1999 reflects the February opening of the 150 unit Hampton Inn. Other notable projects include a 2000 reflects the August opening of the 60 unit Holiday Inn Express & Suites. 2001 reflects the January opening of the 131 unit Courtyard and the planned 150-room oceanfront August opening of the 48 unit Quality Suites. property in Cocoa Beach, directly Source: Smith Travel Research, contributing hotels in Cape Canaveral and Cocoa Beach Florida south of the Port Canaveral Study Area, and a 300-room facility comprising one portion of a major retail development in Cocoa. These facilities remain in more preliminary planning stages, with uncertain development schedules.

Demand for local hotels primarily consists of leisure travelers attracted by the area’s various tourist attractions and business travelers involved with Kennedy Space Center operations. Various operators estimate that these two market components account for roughly equivalent shares of total room-nights; leisure travelers comprise a larger market share at the area’s beachfront hotels. Among hotels with meeting facilities, group business accounts for roughly one-third of room-nights, with social, military, educational, religious and fraternal groups comprising the largest source of demand.

Most major chain-affiliated hotels report a relatively even mix of business and leisure demand; properties located closer to Kennedy Space Center host a larger proportion of Kennedy Space Center-related demand. Kennedy Space Center demand typically increases prior to launch events, and much of this demand tends to stay for extended periods, with many workers staying Monday through Friday and returning home on weekends (freeing up rooms to sell to tourism demand). Kennedy Space Center-related demand is unique to the local area, but also supports hotels located in Titusville to the north and inland from the local area (to Cocoa and Melbourne).

The nearest and largest meeting-oriented lodging facility, the Radisson, reports that business travelers (of which 55 percent is related to Kennedy Space Center activity) and groups (with heavy emphases on private corporations and government groups) furnish approximately 30 percent and 45 percent, respectively, of its room-night demand. Other chain-affiliated properties estimated that Kennedy Space Center activities account for 40 to 70 percent of their total room demand.

Port Canaveral Land Use Plan – Final Report 13 Despite the presence of major cruise activity, numerous hotels report that such passengers generate only modest demand for overnight rooms; however, some hotels noted that the cruise related demand resulted in full bookings on days prior to cruise departures. While cruise related demand constitutes a small component of current demand, we believe that hotels located in a festival tourist-oriented commercial area at Port Canaveral could induce a significant increase in cruise tourist room night demand.

Based upon past trends we have estimated future room demand at hotels in the Cape Canaveral- Cocoa Beach market emanating from the traditional business and tourist visitor market to increase at an average annual rate of 2.5 percent, resulting in an increase in demand from the current 3,100 annual room base to 3,540 room within five years and to 4,005 rooms within 10 years. (See graphic on the following page.) We also have identified demand for an addition of 175 rooms if a new high-quality 25,000 square foot meeting and conference facility were to be added to a new meeting/conference hotel. Finally, we estimate that there could likely be demand for 600 to 1,400 additional rooms over the next five to ten years if the Kennedy Space Center International Space Research Park is successfully developed. There is potential additional induced demand for additional hotel rooms if a tourist-oriented festival market area and entertainment venue were to be developed at Port Canaveral. (See Table 9.)

Table 9 Estimated Future Room Demand 2002 -2017

7,000

6,000

5,000

4,000

Rooms 3,000

2,000

1,000

0 2002 2007 2012 2017

Anticipated Visitor Growth Conference/Mtg. Facility Space Research Park

2002 2007 2012 2017 Anticipated Visitor Growth 3,130 3,540 4,005 4,530 Conference/Mtg. Facility 0 175 175 175 Space Research Park 0 605 1,390 2,175 Total 3,130 4,200 5,600 7,400

The hotel products that we believe could successfully be attracted to the Port Canaveral area include one or more higher-quality limited service hotels of 100 to 150 rooms. Limited service hotels are more profitable than full service hotels with restaurants and would support existing and new restaurant facilities located in the port area. We also believe that smaller inns and bed and breakfast establishments could be attracted to the upper floors above the retail establishments. Finally, we believe that there is a potential opportunity for the development of a 350-room hotel that would serve the conference/meeting segment of the market as well as the tourist and business visitor market. This full service facility would include some 25,000 square feet of modern conference and meeting facilities.

Port Canaveral Land Use Plan – Final Report 14 Entertainment Venue Potentials

Based upon an analysis of the market area demographics and the extent of tourist visitors in the region, we believe that there is a potential for the development of a moderate scale entertainment venue consisting of an outdoor concert/entertainment venue that would accommodate between 1,500 and 2,000-plus attendees. These facilities are usually tent/fabric-enclosed stages, with extremely high quality sound and other electronic systems. Seating is outdoors, frequently on- ground seating. The facility also includes food, beverage, and souvenir concession facilities, as well as the back of the house facilities.

Port Canaveral is well suited to host an entertainment venue. There is a population of more than 2.5-million persons living within 60 miles, about an hour’s drive. It is also within an hour’s drive of both the Orlando metro area and Daytona Beach. Brevard County currently has more than 1.6 million overnight visitors and 2.2 million daytime Table 10 visitors, with a 2006 population estimated at more than 510,000. Port Canaveral has some 1.8-plus million Age Distribution of Population Living cruise ship embarkations annually and the number is Within 60 Miles of Port Canaveral expected to increase. It also has some nearly 1.8 million Percent of casino boat embarkations. The Orlando metro area Number of Age Category Total currently has a population of more than 1.7 million and Persons some 42-million annual visitors. In addition, Daytona Population Beach, a major tourist destination, is located about an Under 15 455,685 19.8% hour north on I-95. 15 to 19 Years 145,310 6.3% 20 to 24 Years 140,956 6.1%

25 to 29 Years 149,922 6.5% The population residing within 60 miles of Port 30 to 34 Years 167,250 7.3% Canaveral has a median per capita income of $22,820 35 to 39 Years 174,987 7.6% and median household income of $43,215. (See Table 40 to 44 Years 189,682 8.2% 10.) The median age is 37.7 years. More than 1.5 45 to 54 Years 317,125 13.8% million residents are within the ages of 15 to 64, and 55 to 64 Years 219,409 9.5% that demographic coupled with the 5.4 million visitors 65 and Over 344,301 14.9% to Brevard County and the Port’s cruise ships, plus the Total 2,304,627 100.0% 42 million visitors to Orlando provides a strong base of demand for an entertainment venue at Port Canaveral. Age 15 to 64 Years 1,504,641 65.3%

Office Potentials

The office market in Port Canaveral exhibits considerable weakness. The inventory of office space totals some 95,000 square feet and had an occupancy rate of 82 percent. Occupancies vary widely. The former Premier Cruise Line office building stands vacant, but the Port’s smaller buildings – ranging from roughly 7,000 to 20,000 square feet in size – maintain occupancies ranging from 50 to 100 percent.

Office tenants in Port Canaveral properties occupy a broad range of professional and nonprofessional service providers and industrial businesses. Very few of these are engaged in activities directly related to Port activities or Kennedy Space Center operations, and property managers confirm that their proximity to Port and Space Center operations does not provide any competitive advantages as compared to properties in Cape Canaveral and Cocoa Beach.

Port Canaveral Land Use Plan – Final Report 15 In central Brevard County, which encompasses Merritt Island, Cocoa, Cocoa Beach, Port St. John and Cape Canaveral, there are 1.2 million square feet of office space in 67 buildings, with an overall occupancy of 86 percent. In northern Brevard County, which includes Titusville and its surroundings, there are some 443,900 square feet of office space in 24 buildings with an average occupancy of 78 percent. Overall the occupancy rate for the 1.65 million square feet of office space averages 84 percent. The occupancy of the five Class A buildings, with a total area of 187,200 square feet averaged 95 percent. The rental rates in general office buildings in Cocoa Beach and Cape Canaveral range from $12 to $16 per square foot on a gross basis, while some rents reported in Class-A buildings have exceeded $20 per square foot.

The proposed International Space Research Park at Kennedy Space Center could be a catalyst that may influence the office market in the region. This project will occupy up to 400 acres on Kennedy Space Center grounds to the north of the Port area. Preliminary studies project that, over the next 20 years, the park could accommodate 2 to 3 million square feet of research and development space. The Space Research Park may in turn attract additional office using firms to the area and spur an increase in office demand in both northern and central Brevard County.

Despite the high occupancy levels and reported high rental rates at the better buildings, the 83 percent occupancy levels in the non-class A buildings indicate substantial weakness in the office market. Thus, while there may be limited demand for well-located quality office space, the outlook for office development at the present time in Port Canaveral does not appear strong. There may be opportunities for smaller good to high quality buildings at Port Canaveral during the ensuing 10 to 15-year development period and the development program should provide development opportunities for such buildings.

Marina Area Market Potentials

Port Canaveral contains three full-service marinas and one yacht club currently located at the Port. These facilities offer a total of approximately 250 wet slips ranging in size from 30 to 100 feet length, approximately 390 “dry stack” storage spaces, and accommodations for over 400 boats in outdoor ground storage.

The marinas all offer full services, including fuel, marine stores (marine supplies and groceries), marine services (mechanical and other boat-related services), haul-out (two of three), restrooms, showers, laundry, and restaurant services (one of three). The yacht club offers wet slips only, with no other services beyond a clubhouse with a full-service restaurant/lounge.

Demand for wet slips appears high. Most facilities report close to full occupancy, with occasional vacancies being rented within a short period of time. Rental rates generally range from $6.50 to approximately $7.25 per linear foot per month of dockage at the Port's other marinas, but fall below $5.00 per foot per month at New Port Marina.

Dry stack storage is limited to boats under 30 to 38 feet in length, or less than 12,000 to 25,000 lbs, depending on the facility’s forklift capacity. Rates for dockage and storage for these facilities range from roughly $6.50 to $8.50 per linear foot, depending on the quality of the facilities and level of services included. Dry stack occupancies, based on actual reports as well as observations, range between 80 and 95 percent, and additional dry stack storage is being proposed at one of the marinas.

Port Canaveral Land Use Plan – Final Report 16 The closest full-service marina to the Port is Harbortown Marina located just north of SR 528, along the Barge Canal that leads from Port Canaveral westward under drawbridges and through a lock to the Banana River, then through the Barge Canal past this marina to the Inter-Coastal Waterway along the Indian River (to the west of this marina). This marina offers approximately 135 wet slips between 30 and 50 feet in length, and has a large inside storage capacity (exact capacity or dimensions were not provided due to a volume method of boat storage). The rack buildings have up to a four-high stacking system, depending of the height of boats stored, and pricing is based on volume rather than length. Overall, rates appear to be more varied for rack storage (lower for smaller and shorter boats, and higher for wider and higher boats) than the marinas at the Port, and outdoor dry storage rates appear to be toward the low end of the range of the marina at the Port. The wet slips were mostly filled, with good demand, and the dry rack storage has some vacancies, and the pricing for rack storage currently includes two free months per year rented. Dry outdoor storage has less vacancy, and one free month per year is currently being offered there.

One other boatyard, offering limited services, is located west of SR 3 and north of SR 528 on Merritt Island. This facility contains approximately 110 wet slips. Services here are limited to water and electricity only, with no dry storage, haul-out or other services or amenities. Additional smaller boatyards and marinas are located to the south on Merritt Island; these offer limited services, and were not included in our analysis. One general observation, these smaller yards generally offer lower-quality facilities with limited services, but appeared to maintain high occupancies on their wet slips. Most offer some outdoor dry storage, but no inside rack storage.

Other marina or yacht basins inspected include the Titusville Municipal Marina, Kennedy Point Marina in Titusville, Intercoastal Marina in Melbourne, and the Melbourne Harbor Marina. These facilities have mostly wet slips, with no or very limited outside dry storage and no rack storage. They are all located along the Indian River and the Inter Coastal Waterway, and their slip prices are generally higher than those at the Port. They range is size from 65 to 195 slips, and most have extra services such as fuel, food and beverage outlets or stores, marine stores, some mechanical services, and some had haul out facilities.

There appears to be strong demand for marina uses in the region and at Port Canaveral; however, there appears to be limited water sheet outside the channel area that would be available to accommodate additional boats. Except for additional dredging for marina uses, the only means of accommodating additional boats may be through the reconfiguration of the existing marinas at Port Canaveral.

Port Canaveral Land Use Plan – Final Report 17 SECTION 3 – PHYSICAL PLANNING CONDITIONS

This section of the report identifies the existing physical planning conditions affecting the future physical redevelopment of the Study Area. A summary of this information was provided to the Port in a Task 2 – Existing Conditions Report in May 2002. The information is based on numer- ous site visits by the team, a review and evaluation of studies and reports, and discussions with Port staff, and a photographic inventory of existing conditions. It also reflects numerous stake- holder interviews that were undertaken with representative tenants and leaseholders within the Study Area. For land planning purposes the Study Area was divided into five (5) sub-areas. These sub-areas include: (A) Marina; (B) Mullet Road/Scallop Drive; (C) Canaveral Cove Phase II; (D) Columbia Road; and (E) Banana River. (See Figure 3 – Sub-Area Map, below.)

Figure 3 – Sub-Area Map

The Study Area is composed of a highly diversified cluster of land uses. (See Table 11 – Overall Study Area Land Use by Sub-Area, on the following page.) The area as a whole lacks a unifying system of parcels, circulation or consistent development patterns. The Study Area spans between the dredged Port Canaveral channel and basins to the north and the Banana River to the southwest. To the south, the Study Area abuts private holdings within the City of Cape Canaveral, composed of a mix of largely commercial uses. To the east, the Study Area edge is defined by the Foreign Trade Zone sector of the Port. The Study Area is bisected by SR 528, which is a high speed divided highway that has an elevated flyover interchange with an at-grade connection to a Port access road. This connector, in turn, leads to the roadways and sub-areas that define the physical organization of the Study Area.

Port Canaveral Land Use Plan – Final Report 18 TABLE 11 Overall Study Area Land Use by Sub-Area

Total Sub-Area Acres Marina 21.48 Mullet Road/Scallop Drive 39.18 Canaveral Cove Phase II 67.66 Columbia Road 49.41 Banana River 26.00 Study Area Sub-Total 203.73 Existing Infrastructure 76.27 Study Area Grand Total 280.00

Overview of Sub-Areas

Marina Area (Sub-Area A) – The Marina Area, approximately 22 acres, has two different parcel conditions that will affect future redevelopment. The area is con- strained on the north side by the boat cove and channel bulkhead, and on the south by the SR 528 right-of-way. Mullet Road is located as far south as possible, to maximize useable land. The parcels that ring the Marina are relatively shallow and must provide the parking areas needed to support the uses along its edge, which are dominated by the marinas and the Cocoa Beach Yacht Club. To overcome the shortage of available backland, the marina-related uses have absorbed a series of parcels to the east of Scallop Drive. These parcels have been assembled in a series of parcels that were originally subdivided to create regular frontages along Scallop Drive and Mullet Road. As a consequence, the marina operations span across portions of Scallop Drive, and a somewhat irregular pattern of buildings, parcels, access and open space has evolved in this area. The “parcelization” pattern of dock use in the Marina Area should also be noted. The docks extend from the bulkhead edge at right angles, serving each of the three major users. However, it is not apparent that the resulting layout is efficient. There may be an opportunity to improve the overall capacity of this area by reorganizing layouts as they relate to the basin use as a whole.

Mullet Road/Scallop Drive Area (Sub-Area B) – The Mullet Road/Scallop Drive Area, approximately 39 acres, has a series of relatively narrow and shallow parcels along the canal edge, north of Scallop Drive that serve a range of marine-related uses. Because of the value of bulkhead access to businesses that have located here, there has been a consolidation of these parcels to create greater width along Scallop Drive through leasing and subleasing patterns. The parcels between Scallop Drive and Mullet Road were established with regular frontages (approximately 670 feet) and relatively deep lots. However, the width and depth of the leaseholds have been adapted to such a wide range of uses, internal

Port Canaveral Land Use Plan – Final Report 19 circulation, and building layouts that there is no clear match between the parcel patterns and the economic use of the land. In many cases, multiple uses within parcels have created a maze of internal alleys and roadways that connect with other parcels in a way that is not effective.

Canaveral Cove Phase II Area (Sub-Area C) – The Canaveral Cove Phase II Area, approximately 68 acres, retains a parcelization pattern that is generally favorable to development, with the exception of the configuration of parcels along the bulkhead. The land along the bulkhead has been divided into a series of small parcels and sublease holdings that are seriously constrained by the shallow lot depth between Glen Cheek Drive and the channel. The intensive use of the bulkhead has been aided by the addition of a significant common parking area to the south of Glen Cheek Drive. A large, undivided parcel occupies the central portion of the Phase II area, which allows for great flexibility in the approach to future development. The area’s advantages also include relatively large and deep parcels along Dave Nisbet Drive (east and west side) and two pivotal parcels located northwest and southeast of the intersection of Glen Cheek Drive, Scallop Drive and Dave Nisbet Drive. Similarly, the parcels between the SR 528 access road and Dave Nisbet Drive are relatively large and provide future flexibility in terms of layout, use and orientation.

Columbia Road Area (Sub-Area D) – The parcels in the Columbia Road Area, approximately 49 acres, have been allocated among a series of lease- holds with broad frontages along the internal street network that defines the area. The parcel depths vary considerably within the area, and some areas have significant constraints. The relatively small scale of some of the uses within the area have adapted to shallow lot depths in some cases.

Banana River Area (Sub-Area E) – The Banana River Area, approximately 26 acres, is an undivided parcel that is highly adaptable to a range of development uses because of its size.

Infrastructure

Stormwater Management System -- The Canaveral Port Authority’s stormwater management system meets its current water treatment requirements. Additional Stormwater management systems will be required for any new development in the Study Area. The Port has submitted to the St. Johns River Water Management District a Master Drainage Plan and Application for a Conceptual Drainage Permit.

Port Canaveral Land Use Plan – Final Report 20 The Study Area currently has two existing detention ponds that provide water quality and quantity treatment for stormwater runoff within the Study Area. From the detention ponds the water discharges via a control structure and pipes to the Turning Basin/ Barge Canal.

The recently constructed George King Boule- vard and George King Boulevard Interchange are connected to two newly constructed deten- tion ponds that are located to the south end of the Study Area. The water from these two new ponds also discharges via control structures and pipes to the Turning Basin/ Barge Canal.

Presently, there is adequate stormwater treatment for the existing Study Area. The stormwater management system could not provide adequate treatment if the Study Area is further developed and a new stormwater management system will need to be implemented.

As stated, the current stormwater management system was not designed to incorporate future improvements/development to the Study Area. In considering new development, there are several issues that need to be considered due to existing land use constraints. In order to maximize the Study Area’s development potential, there will be a need to examine alternative stormwater treatment techniques.

The Port is currently performing feasibility studies on two alternatives:

 Feasibility of routing Cove run-off to the Tidal Pool Park  Feasibility of routing Cove run-off into the planned ASR System for reuse

Other alternatives that may be considered include:

 Feasibility of using IIF land as a stormwater retention area for the Cove  Feasibility of deep well injection

To fully realize the development potential of the Study Area, non-traditional stormwater treatment techniques will need to be evaluated.

SR 528 is a major highway leading to Cape Canaveral. SR 528 is the Port’s direct link to the west (Orlando Area). The Port also has good highway access connecting with I-95 and US 1 providing efficient traffic flow to the north and south of the Port. SR 528 also connects with SR 3 and SR 401. This connection links the Port with the Kennedy Space Center and Cape Canaveral Air Force Station.

Within the Study Area, George King Boulevard, Dave Nisbet Drive, Glen Cheek Drive, Flounder Street, Mullet Road, and Scallop Drive, provide a complete internal traffic circulation system. The Florida East Coast Railroad serves the Port. The railroad is located about 15 miles west of the Study Area.

Port Canaveral Land Use Plan – Final Report 21 There are two airports outside the Study Area. The Space Center Executive Airport is about 16 miles north of the Study Area in Titusville and the Melbourne International Airport is about 28 miles south of the Study Area in Melbourne. The bus transit system is operated by the Space Coast Area Transit (SCAT). Bus number 11 and Trolley number 9 serve the Study Area.

A major and positive transportation impact on the future development of the Study Area has been the completion of the new interchange, SR 528 and George King Boulevard. George King Boulevard is the only road which directly links to SR 528 and is an important gateway into the Study Area.

The Port has recently completed

LEGEND

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Water and Wastewater -- The Study Area is serviced by the City of Cocoa for water and the City of Cocoa Beach for wastewater. The City of Cocoa has a 24″ RCP that runs along George King Boulevard to North Atlantic and eventually runs to SR 520 where it is directly serviced to the City of Cocoa. Presently, the City of Cocoa is constructing a new 24″ RCP along SR 528 which will connect to the existing 24″ main at the Port. This is done to loop the main to reinforce pressure and flow within the entire loop. There have been occasions within the past few years where main breaks have caused interruption of service. When the new line is completed and placed into service, water service interruptions should be minimized, if not eliminated, because of the looped system. Throughout the Study Area, water mains exist which vary in size from 6″- 12.″ These will be adequate for most future development. Future development on the west side of SR 528 will require extension/construction of a water main.

Wastewater service is provided through a series of force mains throughout the Study Area. Force mains are directed to a lift station located within the Study Area and then pumped via a force main to the City of Cocoa Beach for treatment. Depending on future development, upgrades to the existing stations or construction of new lift stations and force mains will be required.

Port Canaveral Land Use Plan – Final Report 22 Due to poor soils, the long-term operation of gravity systems may be affected. In poor soils, differential settlement of the gravity systems could cause pipes to deflect, which may reduce slopes and in turn cause blockage. Also, settlement could affect joints, which could allow additional infiltration to the system. Infiltration increases the amount of wastewater discharge thus requiring additional treatment and therefore more cost.

Wastewater reuse should be a consideration for future irrigation needs. There are many issues related to this including the potential of available reuse water when required during dry (drought) periods. Since Cocoa Beach provides treatment of wastewater, the City would be more likely to provide reuse. The City of Cape Canaveral is contiguous to the Port but probably cannot provide the consistent quantity of reuse.

The remaining utilities are available in various combinations of underground and above ground installations. These utilities include, but limited to, Florida Power and Light (FPL), BellSouth, Time Warner Communications.

Existing Leases

Leases in the Study Area begin to expire as early as November, 2005 and span thereafter over a 30-year period. (See Figure 5 – Lease Expirations, below.) The Canaveral Port Authority controls the land use of all the property within the Study Area through its leasing agreements with the lease holders. (See Figure 6 – Comprehensive Lease Map on the following page.)

Figure 5 – Lease Expirations

Port Canaveral Land Use Plan – Final Report 23 CO C J AN ANAVERAL P MPREHEN U ARY 2 002 S O IVE LEA NEW P RT A MARINA O R

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300 6 There is a distinct pattern that unfolds in the expiration of leases according to land uses in the Study Area. The majority of the land leases, for example, for the fishing fleet and industrial area expire before 2015. The majority of leases in the Marina Area expire during the 2015-2030 time period. (See Figure 7 – Expired Leases by Land Use, below.)

Figure 7 – Expired Leases by Land Use

Land Development Capacity Analysis

A land development capacity analysis was performed for the Mullet Road/Scallop Drive, Canaveral Cove Phase II, Columbia Road, and Banana River sub-areas. The analysis was not conducted for the Marina as the land area is built out. To increase the development potential of this area will require consolidating existing parcels or converting surface boat storage to stack storage in this area. The following factors were analyzed in relation to the future development potential of each sub area: site circulation, setbacks, and open space, building area, parking area. A summary of the calculations in support of this analysis is provided as a separate enclosure with this report.

Planning and Design Objectives

The Study Team created a set of planning and design objectives to guide them through the land use planning process. These objectives are directly linked to the Port’s mission and recognize the need to provide both short-term and long-term guidance on land use and infrastructure decisions. These planning and design objectives include the following:

 Create attractive mixed-use development as the best means to promote economic success for all of the appropriate uses within the Port;

 Support water-dependent and water-related economic uses as a segment of the economy that relies on the Port’s location and relationships among businesses;

Port Canaveral Land Use Plan – Final Report 25  Enhance tourism and create an attractive area that increasingly becomes a desirable destination for new users;

 Separate incompatible uses to minimize negative impacts among tenants of the Port;

 Preserve compatible existing uses and lease patterns that represent successful previous investment and future opportunities as part of a mixed-use future.

 Create efficient infrastructure and parcelization patterns within the Study Area, consistent with the other goals.

The above planning and design objectives have been analytically applied to create land use plans for each of the five sub-areas. The work products for each of the sub-areas include: Land Use Plans, Illustrative Development Plans, Illustrative Parcelization Plans, and Lease Impact Maps. These plans identify long-range land use planning concepts, recommended infrastructure improvements and future redevelopment opportunities. The parcelization plans identify recommended parcel configurations in support of the proposed redevelopment. The lease impact maps identify the development impacts on the existing leaseholds. This information is presented in Sections 4 through 8.

Port Canaveral Land Use Plan – Final Report 26 SECTION 4 – MARINA AREA ANALYSIS

Site Location and Description

The Marina Area is located in the westernmost section of the Study Area. The sub-area is approximately 37 acres and has high visibility from SR 528, SR 401, and the Disney Cruise Terminal located across the channel.

Existing Uses

The major tenants in the Marina Area include: Cocoa Beach Yacht Club, New Port Marina and Cape Marina. The Port’s End Park provides a small boat ramp for public access to the water.

Planning and Design Objectives

The Marina Area is intended to create a high quality small boat district within Port Canaveral that is largely oriented to recreational boating uses, while providing supply, berthing, and servicing opportunities for a range of small commercial boats. The land use plan layout of the area should provide for maximum long-term utilization of the land, bulkhead and water resources. Specific objectives that should be met include the following:

• Efficiency and Consolidation – The layout of the Marina Area should be rationalized to create efficient use of the land and water resources. This includes coordinated layout of future slips to maximize efficiency and revenues. This approach also encourages Port actions to reorganize streets, infrastructure and leaseholds to enhance the operational efficiency and marina-related development opportunities.

• Complementary Uses – New uses should be complementary to the marinas and provide additional attractions to the Port. In particular, one or more restaurants that overlook the small boat harbor could serve marina patrons and others specialty retail uses that may attract visitors other than marina uses.

• Public Access – The area should be very inviting to the public by maintaining the public park and boat ramp, creating a network of boardwalks and sidewalks that allow pedestrians to move continuously throughout the area, and providing direct public access to the bulkhead edge where safety and security allows.

• Visual Quality – The image of the area should be enhanced to provide an attractive view of the Port and the marina from the surrounding highways. The nautical character of the uses should serve as a guide to the design of buildings and the sites surrounding them. Improved landscaping and signage should be provided that enhance the visual quality.

Port Canaveral Land Use Plan – Final Report 27 • Enhanced Storage – The ability to store boats on land is an important component of the marina business, and the plan encourages this use, including stacked storage. The design of storage sheds and storage yards should be undertaken with an eye towards the final visual appearance. The Port, leaseholders and designers should work together to create cost effective approaches to provide attractive landscape buffering, materials, colors, graphics and architectural features.

• Parking – The Port should undertake actions and improvements to expand the supply of short-term parking in the Marina Area to help support the future expansion of marina-related activities.

Land Use Plan

The Marina Area should provide contiguous, consolidated activities that are directly related to the small boat basin. The small boat basin provides both bulkhead and pier berthing opportunities. The Port’s End Park provides a small boat ramp for public access to the water. The Marina Area currently accommodates several commercial fishing and marine industrial uses, which are also appropriate for the area, particularly where it borders the Mullet Road/Scallop Drive Area. The general allocation of uses is indicated in Figure 8, Marina Area Land Use Plan, below.

Marina Use

Figure 8 - Marina Area Land Use Plan

Port Canaveral Land Use Plan – Final Report 28 As noted in the market analysis, there is substantial projected demand for a full range of recreational and small boat marina activities within the Port. The Marina Area, as a result, consists of all economically viable uses that provide or support these activities. Among the potential uses that are envisioned are the following:

• Small boat berthing • Small boat service and repairs • Boat sales • Boat storage • Yacht clubs • Transient recreational boats • Marina-related services • Chandlery (boating supplies) • Food and beverage provisions • Boat hauling/lift services • Charter fishing • Tackle and bait shops • Excursion boats

In addition, the proposed land use plan recommends the inclusion of a limited amount of complementary uses that take advantage of the Marina Area as an interesting destination and are entirely compatible with surrounding marina uses. The specific uses recommended include restaurant or specialty retail uses that may attract visitors to this end of the Port, and simultaneously serve the marina-related market. However, the Marina Area should not be used for general commercial, retail, or hospitality uses, because it is very important to concentrate these uses in other areas of the Port. Parking should be provided as required to fully support the marina-related uses and the public access within this area. To the greatest extent practical, the water’s edge should be made available for public access, as part of an overall program that expands the pleasant pedestrian networks along the water edges or to access points that are safe and interesting. The continued provision of public open space at the Port’s End Park is a related use priority within this area.

Detailed standards and guidelines are an appropriate method for managing the character and extent of future development. They can serve both the Port’s and leaseholders’ best long-term interests by ensuring consistent approaches to land development and improvements. The Port should pursue creating such standards and the best method to apply them, as a follow-up action to the adoption of this land use plan. Several principles to follow for the Marina Area might be beneficially recommended:

• Density - Although there need not be specific site development limits in terms of square footage, a reasonable amount of land should be set aside for open space to retain an attractive, landscaped and open appearance to this part of the Port. A standard of 15 percent for open, landscaped area or public access is recommended. This is a proportion that is normally easily met in the lawns, setbacks, sidewalks and boardwalk access, and will typically be oriented away from the water’s edge, where it will have the most benefit for the businesses, the area, and the Port.

Port Canaveral Land Use Plan – Final Report 29 • Height - Building heights for marine related uses should not exceed 50 feet, measured to the peak of the roof or cornice line. Non-marine related uses should be limited to a maximum of three occupied floors above grade.

• Parking Standards - The Port and the leaseholders should ensure that an adequate amount of parking is provided for future uses, and this should be a condition on any leasehold extension, renegotiation or proposed new use not provided in the existing lease. The leaseholder should demonstrate the maximum parking required, and how it will be provided. Where acceptable off-site parking is available through these mechanisms, the Port should not require a leaseholder to provide all estimated parking requirements on-site, which should be reviewed and substantiated by the Port. Parking could be provided in three ways: on site, off- site through shared parking facilities managed by the Port, or through shared-use parking agreements with other leaseholders. Numerous national studies have been undertaken by the marina operating industries to document relevant parking ratios, and these may also be used as an initial guide. These studies tend to suggest maximum parking requirements as .5 spaces per slip or stored boat that is actively accessible, and even lower ratios may be appropriate if they can be documented.

Development and Improvement Plan

The reorganization and proposed improvements in the Marina Area have both a waterside and landside component. On the waterside, there is an opportunity to substantially expand the marina slips. On the landside, expansion and reorganization of contiguous marina uses would allow future improvements benefiting leaseholders and the Port alike. The following graphics indicate preliminary concepts of how the land use plan might be accomplished through future projects. It is an illustration rather than a definitive plan; the actual development will depend on the detailed needs, location characteristics, engineering and design required as part of future investment. (See Figure 9, Marina Area Illustrative Development Plan.)

Figure 9 - Marina Area Illustrative Development Plan

Port Canaveral Land Use Plan – Final Report 30 There are significant inefficiencies in the layout of the piers and docks within the small boat basin. Previous Port standards called for the construction of finger piers at right angles to existing bulkheads. This approach led to a layout that does not maximize the number of slips, and generated large areas of underutilized watersheet. The land use plan provides for future realignment of the finger piers so that they are all parallel, generally aligned north to south.

One of the important consequences of expanding the in-water boating will be increased demand for parking spaces. This may be accommodated in several ways. There may be an opportunity to convert land used for boat storage into parking by providing increased rack storage. Remote parking opportunities including valet or a simple shuttle service is often used to serve large marinas, and the Port should encourage such solutions. Additionally, the Port should pursue necessary agreements and approvals to provide perpendicular parking along Mullet Road in landscaped pockets, as a general parking resource available to all users of the Marina Area.

Increased demand for landside marina uses including boat storage and parking is likely to make the current disposition of parcels and roadways obsolescent. The land area devoted to marina uses cannot expand to the north, west, or south. The only option ahead is to allow expansion of marina related facilities to the east. The plan envisions the relocation of the Scallop Drive extension eastwards from its current location. This relocation would allow consolidation of numerous separate parcels held by Cape Marine into a single connected leasehold. Such a change would provide substantial future advantages in terms of layout, development, and operations for marina related uses. Utility corridors should be designed to follow the realignment. A preliminary preferred location has been indicated that would minimize reorganization of leaseholds, consolidate as much of the marina uses as possible, and provide a division between the Marina Area and adjacent mixed-use development.

The Marina Area is a visual gateway to Port Canaveral for anyone approaching from the west. It provides an interesting, water-related introduction and help sets the image for the Port. This aspect should guide future land use, site design and architectural decisions for the area. Designs should be reviewed to ensure that the view from SR 528 is attractive, and that landscape, signage and other features contribute to a positive “front door” image. This approach should also consider the substantial marketing advantage to the tenants of this area because of the excellent highway visibility, and stress the importance of a coherent, high quality image to promote business. For example, orienting a well-designed boat sales center towards the highway would simultaneously improve the Port image, the environment for other businesses, and be a marketing advantage for such a use. Specific recommendations in this regard include the addition of tree and shrub planting on the south side of Mullet Road and the provision of on-site landscaping north of Mullet Road. Buildings providing retail uses or services should take advantage of the high visibility by providing attractive facades towards SR 528.

The plan envisions the future incorporation of one or more restaurant uses along the marina edge, taking advantage of the activity and views of the marina area and cruise terminals beyond. Similarly, specialized “destination” retail uses appealing to tourists and other visitors to the Port might be advantageously located here, as well. With the high visibility from the highway, these uses could add to the impression of the Port as an interesting mixed-use destination, and improve the visual appeal of the Port from the highway. These uses would be complementary to the other restaurant and retail uses in the Port, as they would expand the “critical mass” of related uses that are needed to successfully convert the Study Area into a distinctive destination. Such uses need

Port Canaveral Land Use Plan – Final Report 31 to be entirely compatible with the adjacent and nearby marina uses, and adequate parking arrangements need to be assured.

As noted in many places in the land use plan, there are many benefits to supporting public access to the water’s edge to view or participate in the activities that occur there. Much of the bulkhead edge along the Marina Area could help serve this purpose by encouraging pedestrian access at every location that is practical, recognizing that there will be some constraints due to public safety or security. As part of leasehold revisions, renegotiation, or on-site improvements, the plan envisions the gradual extension of a publicly-accessible walkway around the majority of the small boat basin perimeter, connected to the Port’s End Park and to view points and walkways that will eventually be threaded through appropriate portions of the marine commercial areas. The Port’s End Park is an important open space contribution that the Port has created for public enjoyment. Continuation of the high level of design and maintenance of this area is a priority consistent linked to many goals of this plan.

Impact on Existing Leases

The following graphics indicate how future parcelization may respond to the land use plan and future improvements in the area. The plan recognizes that specific leasehold boundaries, terms and other conditions may vary to best accommodate future needs that are generally consistent with this plan. (See Figure 10 – Marina Area Illustrative Parcelization Plan and Figure 11 – Marina Area Lease Impact Map that follow.)

Figure 10 - Marina Area Illustrative Parcelization Plan

In general, extension of leases or changes to accommodate new uses or development, or other leasehold changes should be linked to beneficial site improvements. These should include expanded public access where practical, additional landscaping and design review of proposed

Port Canaveral Land Use Plan – Final Report 32 • New Port Marina – The most important potential change would include the enhanced potential for slips in the small boat basin.

• Cocoa Beach Yacht Club – Similarly, the Yacht Club could be provided opportunities associated with additional slips.

• Cape Marina – The land use plan would promote consolidating separate parcels into a combined leasehold, setting a common lease term, providing for the lease of the existing Scallop Drive extension into part of the leasehold, and promoting the addition of new complementary uses within the leasehold.

• Others – Portions of several small parcels would be reorganized and absorbed into the new Scallop Drive extension right-of-way, requiring compensation or relocation of existing func- tions into areas more conducive to the needs of the Port and the long-term value of its land.

FigureFigure 1111 -- MarinaMarina AreaArea LeaseLease ImImppactact MaMapp PORTS END PARK

Timing

The reconfiguration of the existing marinas could take place any time within the next five to ten years. The issues involve the reconfiguration of the leases of the water sheet to allow increased docks to be installed at the existing marinas. The negotiations could be lengthy; however, since additional wet slips would be created it appears that all marina operators and the Port would benefit.

Port Canaveral Land Use Plan – Final Report 33 Infrastructure Improvements

Within the sub-area, much of the infrastructure already exists. The existing infrastructure appears to accommodate the existing development adequately. Water, wastewater, power, stormwater are provided within the sub-area.

As part of the land use plan the proposed improvements would include realignment of the finger piers. This would require the construction of the actual piers and additional potable water, wastewater, and power service. In addition, depending on the extent of the need for communications (telephone) and other services such as cable, etc. may be needed.

The relocation of Scallop Drive and consolidation of numerous separate parcels held by Cape Marina, may require some utility relocation (water, wastewater, power, etc.). The work would require construction of roadways, parking areas, and pedestrian access walkways to and continuing along the water’s edge.

Costs of the infrastructure modification are difficult to quantify at this conceptual stage. There are many opportunities to utilize the existing infrastructure while phasing in new site configurations. Initial costs can be determined at the preliminary engineering stage.

With any retrofit project numerous details will need to be worked out. It is anticipated that a master plan approach will address both the total project, as well as individual phased improvements areas.

An important element of the planning/design work will also be the phasing of work to minimize impacts to the existing Port businesses and operations. The major retrofit elements to be considered include: • Maintenance of traffic throughout the work areas • Adjustments of street lighting • Security • Signage – traffic, informational • Accessibility – passenger vehicles, buses, water taxi, etc. • Parking • Communications • Landscaping • Hardscaping • Construction staging areas • Fencing • Utility coordination –underground • Regional stormwater system • Other Port construction schedules • Environmental considerations

Port Canaveral Land Use Plan – Final Report 34 Financial Feasibility

In light of the strong demand for wet slips, the cost of the reconfiguration of the existing marina piers and slips could be reasonably borne by the operators, together with rental of the water sheet on a linear foot of dockage basis with a minimum payment to ensure that the water sheet was efficiently used. Under this approach, the marina operator would be responsible for the construction, installation, maintenance, and repair of the dock system. The land area would be leased on a per-square-foot-of-ground basis.

This type of arrangement is fairly common and local knowledgeable appraisers would be able to calculate the annual rental payments to the Port based upon market data from the region. The lease could be structured as a level annual payment based on the linear feet of slips and docks. The payments typically are adjusted for inflation. As an alternative to induce the operators to reconfigure the water sheet and develop additional slips, the lease could be structured with a lower fixed payment and a percentage rent payment based upon the gross slip revenues, in much the same as a percentage lease for a retail store.

It is also possible that the Port could install the new piers and slips and lease them on an absolute net basis to the marina operator, with the operator being responsible for all maintenance, repair, and rebuilding costs. The lease payment would amortize the cost of the installed docks and slips, as well as the value of the water sheet.

Port Canaveral Land Use Plan – Final Report 35 SECTION 5 – MULLET ROAD / SCALLOP DRIVE AREA ANALYSIS

Site Location and Description

The Mullet Road/Scallop Drive Area is located to the east of the Marina Area. The sub-area is approximately 39 acres. The area enjoys good visibility from SR 528. On the south side of the area are numerous two-story office buildings located along the east end of Mullet Road. To the north of these office buildings (occupied by many small businesses as sub-lease tenants) and south of the bulkhead are vacant land parcels.

Existing Uses

Located along the north side of the sub-area, along the bulkhead, are the commercial fishing industries. Bluepoint International Fisheries, Inc. is a major leaseholder.

Planning and Design Objectives

A primary objective for the Mullet Road/Scallop Drive Area is to more effectively support commercial fishing and maritime industrial uses. This area should also provide land to support appropriate development in adjacent areas. To the extent that additional land is available in the short and mid-term after these needs are met, the Port should promote commercial and light- industrial uses that maximize economic contributions and are compatible with the image and character of the area. Specific planning objectives within this area include:

• Better Parcelization – The Port should undertake a program to reconfigure leaseholds, uses and infrastructure that creates deeper, more useful parcels of land along the water edge. The current arrangement consists of a row of shallow parcels that provide limited flexibility of use, and diminishes the ability to take full advantage of the valuable relationship to berthing spots along the bulkhead.

• Reconfigured Streets - Reconfiguring the streets is required in order to create larger and deeper land leaseholds for water-dependent uses. This approach has other advantages, including improved circulation because of better alignment of roads connecting sub-areas of the Port.

• Supporting Growth – The Port should ensure the future availability of large parcels of land to support the growth and development of the Canaveral Cove Phase II Area, through parking and through potential relocation of businesses or uses that could benefit from a location in the Mullet Road/Scallop Drive Area.

Port Canaveral Land Use Plan – Final Report 36 • Remaining Land and Development – The Port should consistently support leasehold and development initiatives that upgrade the economic value and economic contribution of uses within areas available for mixed use commercial and light industrial purposes.

• Compatibility – The design of building, site and landscaping improvements should ensure compatibility with other Port development objectives, with particular emphasis on maintaining an attractive appearance along the SR 528 edge.

• Public Access and Pedestrians – The Port and the uses within this area should provide additional public access and pedestrian networks that allow the public to view the activities at the water’s edge and to move between different areas of the Port along sidewalks.

Land Use Plan

As depicted in the following diagram, the waterside portion of the Mullet Road/Scallop Drive Area will continue to serve the commercial fishing and small marine industrial uses at least into the mid-term. Because of its location, the eastern portions of this area will become a support area for mixed-use development within the Phase II Cove Area, providing parking and other land uses that may be necessary to unlock the adjacent economic potential. The southerly parts of this area will remain devoted to a mix of light industrial and commercial land uses until demand for land rises and other development options occur in the long term. The general allocation of uses is indicated in Figure 12, Mullet Road/Scallop Drive Area Land Use Plan, below.

Marine Industrial Commercial Fishing

Commercial/Industrial Mixed Use

Figure 12 - Mullet Road/Scallop Drive Area Land Use Plan

The commercial fishing industry has undergone substantial changes over the past few decades, and the direction of its future is far from clear. Recognizing commercial fishing as an important economic activity with few choices for location, the Port should seek to provide land and

Port Canaveral Land Use Plan – Final Report 37 waterside facilities that can flexibly meet future needs. Over the long run, if the Port can provide superior facilities at another location, then this land may be considered for other uses. However, unless that circumstance occurs, the following fishing-related uses should be accommodated within designated portions of the Mullet Road/Scallop Drive Area: • Fishing boat berthing, loading, offloading, provisioning and repairs • Tackle and equipment storage and repairs • Storage facilities • Processing facilities • Wholesale and retail sales • Support activities and businesses Integrated into the commercial fishing area should be other marine industrial uses that are best located in this area of the Port because of the relatively small size of vessels that are used, similar landside requirements and shared advantages in terms of supply, maintenance and other services. Such uses could include: • Small commercial vessel berthing, loading, offloading, provisioning and repairs • Temporary storage facilities The projected development opportunities in the adjacent Canaveral Cove Phase II Area are expected to create, over time, considerable land requirements for parking and other ancillary uses. The availability of underutilized parcels in the Mullet Road/Scallop Drive Area to support that development is likely to be critical to its success. Similarly, there may be advantages to relocating some uses that are within the Canaveral Cove Phase II Area today to underutilized portions of the Mullet Road/Scallop Drive Area, to improve compatibility of uses within each area and to take best advantage of bulkhead and land resources. The Port should promote such reorganization where it is beneficial to the overall economic development and success of individual businesses. The Port should promote the highest and best commercial or light industrial use of those portions of the Mullet Road/Scallop Drive Area that are not needed for water-dependent purposes or support development of either the Marina Area or Cove Phase II Area. This should not include highway-oriented convenience retail which is not appropriate for Port development, and not for hospitality or restaurant uses that could be more advantageously located elsewhere. Detailed standards and guidelines should be developed and implemented to further guide specific site development decisions in the future; this will be helpful for everyone. Several principles to follow for the Mullet Road/Scallop Drive Area might be beneficially recommended: • Density - There need be no limit on site coverage within this district, except for a requirement that a landscaped strip be preserved along the street frontages that should be no less than 15 feet in width, except where curb cuts are required. This area may be screened with landscaping for visual buffering, and fencing is permitted for security purposes as long as the fencing is on the inside edge of the landscaped setback and not along the public way. Where appropriate, sidewalks may be required within the open setback to extend pedestrian connections if adequate width does not exist within the Port Canaveral right-of-way. • Height - Building heights for marine-related uses should not exceed 50 feet, measured to the peak of the roof or cornice line. Non marine-related uses should be limited to a maximum of three occupied floors above grade. • Setbacks - Side yard setbacks should be respected at a minimum of 15’ to allow for flexible future development on adjacent sites.

Port Canaveral Land Use Plan – Final Report 38 • Parking Standards - The Port and the leaseholders should ensure that an adequate amount of parking is provided for future uses, and this should be a condition on any leasehold extension, renegotiation or proposed new use not provided in the existing lease. The leaseholder should demonstrate the maximum parking required to the Port’s satisfaction, and how it will be accommodated within designated on-site spaces. If no parking assessment is offered by the leaseholder or accepted by the Port, the Port should require a minimum of .5 spaces per 1,000 gross square feet of storage or marine-related building area, 1 space per 1,000 gross square feet of building area for industrial uses, and 3 spaces per 1,000 square feet of office or other commercial uses.

Development and Improvement Plan

The primary land use concepts for the Mullet Road/Scallop Drive Area are linked to the need for better parcelization to support commercial fishing and maritime uses. As currently configured, the shallow parcels between Scallop Drive and the ship channel bulkhead restrict flexible adjustment to changing needs. There has been a tendency to expand leaseholds laterally along the bulkhead to create contiguous useable parcels. By creating deeper parcels, new opportunities may become feasible over time to effectively use the advantages of the Port location for fishing, fish processing, small-scale maritime or other water-dependent uses. The following graphics indicate preliminary concepts of how the land use plan might be accomplished through future projects. (Figure 13, Mullet Road/Scallop Drive Area Illustrative Development Plan, below.)

Figure 13 - Mullet Road/Scallop Drive Area Illustrative Development Plan

The land use plan envisions a reorganization of the street system, and would extend a new road through a central east-west alignment within the Mullet Road/Scallop Drive Area. This roadway would allow the rearrangement of existing leaseholds by adding land now occupied by Scallop Drive and joining them with portions of parcels to the south. This approach suggests a two-

Port Canaveral Land Use Plan – Final Report 39 phased construction process. The first phase would extend the new road from Dave Nisbet Drive on land currently controlled by the Port, and then reconnect with the existing Scallop Drive where it encounters leaseholds or development that would not be cost effective to relocate immediately. However, in the mid-term, a new road would be extended to the west, where it would join the relocated Scallop Drive extension, as discussed in the plan for the Marina Area. This will allow the creation of deeper, narrow lots that will have greater value for the users of the waterfront parcels, allowing a concentration of development and efficient use. It may also serve to expand the number of tenants that can profitably use bulkhead access, by creating a number of contiguous large parcels spanning between the new road and the ship channel.

There are several large parcels of land that are underutilized on the eastern end of the Mullet Road/Scallop Drive Area which are important to the future of the Canaveral Cove Phase II Area. The plan recognizes the importance of these parcels in supplying parking for the concentration of mixed uses that will be required to achieve a critical mass of new development. The Port should preserve this land for such future uses, and provide improvements or use agreements as required to best benefit the overall Port development strategy.

The land that will remain between the relocated roadways, Dave Nisbet Drive and the waterfront will continue to be available for a mixture of light industrial and commercial uses. The Port should continue to promote and favor uses that are directly or indirectly water-dependent, such as professional offices, services, repair or supply businesses whose clientele includes the marine- related uses in the Port. Over time, the Port should pursue use options and tenants that maximize the economic benefit of the area to the Port and the regional economy, and minimize low- employment, low value-added businesses.

This area is highly visible from SR 528, and there may be a tendency for highway-oriented retail and even restaurant businesses to pursue development at this location. Such development should be avoided, because it will reduce the long-term flexibility for other use of the area, and because it is likely to detract from the higher quality image and character that is key to the Port’s success in future development of the nearby Banana River and Canaveral Cove Phase II Areas.

The illustrative plan indicates concepts for creating a pedestrian network of sidewalks along the new street alignments, connecting uses, and providing continuity with other adjacent areas. At one or more locations, the Port should promote the creation of pedestrian connections to the bulkhead edge, providing a lookout point. The activities of the commercial fishing and other maritime uses can be very interesting to visitors. Such locations are consistent with the expansion of the Port’s attractiveness as a tourism destination, but should not interfere with maritime industrial or fishing opportunities. Also, safety and security should not be compromised.

This area of the Port is intended to be functional in character, but it can also be visually attractive if attention is paid to landscape improvements along the streets within and at the edge of the area. The design of New Street should incorporate landscaping that can serve as a buffer among uses and provide an attractive connection between the Marina and Canaveral Cove Phase II Areas. The Port should continue to provide and promote landscaping improvements between SR 528 and Mullet Road that enhance the image of the area and provide buffers for parking or industrial uses. The Port should also require landscaping improvements along the highly visible frontage along Mullet Road as part of development improvements or leasehold changes over time.

Port Canaveral Land Use Plan – Final Report 40 The design review process advocated by this land use plan should be used to help create a more consistent and attractive character to the building facades along the Mullet Road frontage, as well. Signage should be kept to a reasonable scale that is more oriented to Mullet Road than the highway, to avoid oversized signs that may detract from the image of the future development of the Banana River site or of the mixed-use development area immediately to the east.

Impact on Existing Leases

The following maps indicate how future parcelization may respond to the land use plan and future improvements in the area. It is intended as a general guide, and may be modified according to the future specific needs of the Port, leasehold proposals, and engineering requirements. (See Figure 14, Mullet Road/Scallop Drive Area Illustrative Parcelization Plan, and Figure 15, Mullet Road/Scallop Drive Area Lease Impact Map.)

Figure 14 - Mullet Road/Scallop Drive Area Illustrative Parcelization Plan

The existing leaseholds and parcels on the northern perimeter of the Mullet Road/Scallop Drive Area will be expanded over time, and be transformed into deeper, larger parcels. Some of the land used to create these parcels will come from the conversion of the old Scallop Drive into leaseable land, as a new road is constructed further to the south. Some of the parcel additions will come from underutilized Port-controlled land in the eastern portion of the area that is currently along the southerly edge of Scallop Drive. The remaining accretion of land will come from a division and reallocation of existing leaseholds that are south of Scallop Drive in the western portions of the Mullet Road/Scallop Drive Area. Reorganization of actively leased and occupied land to create new parcels should occur as the leases become available, as part of leaseholder-initiated proposals, or when the economic benefit to the Port reaches a level where relocation and reorganization of uses is feasible and mutually beneficial for all parties.

Port Canaveral Land Use Plan – Final Report 41 Figure 15 - Mullet Road/Scallop Drive Area Lease Impact Map

Timing

The timing of the redevelopment of the Mullet Road/Scallop Drive Area is primarily dependent on the future requirements of the commercial fishing industry and the demand from other potential uses. During the initial redevelopment period, the western portion of the area abutting the Marina Area would be reconfigured to facilitate the marina expansion. The western portion of the Mullet Road/Scallop Drive Area would also be reconfigured to accommodate the parking and development in the abutting Cove Area. The balance of the Mullet Road/Scallop Drive Area would continue to accommodate water dependent users, including fishing and related water dependent uses along the bulkhead.

Eventually, the eastern portion of the Mullet Road/Scallop Drive Area, to the extent that it is not required for fishing or other water-dependent uses, could be used for expansion of the Cove Area, however, this is not expected to materialize for 10 to 15 years.

Port Canaveral Land Use Plan – Final Report 42 Infrastructure Improvements

In order to improve the parcelization, the existing Scallop Drive would be relocated to enlarge the waterside parcels, which will provide better flexibility of use. As with all the proposed improvements within the Port Study Area, improvements could be phased to allow for a variety of configurations while leases are negotiated. As Scallop Drive is reconfigured, the long-range plan is to improve access throughout the Port and allow for pedestrian access to not only waterside areas, but convenient access to the Cove. With the relocation of Scallop Drive, existing utilities, water, wastewater, stormwater, power, etc. will require relocation. The relocation of the utilities is necessary to ensure lessees will be allowed to utilize entire parcels without hindrances. In addition, maintaining utilities will be significantly easier and cost-effective within roadway right-of-ways.

Financial Feasibility

It is assumed that the users in the Mullet Road/Scallop Drive Area would pay ground rent to the Port based upon the fair market value of the property. Typically, lower density industrial land would be leased on a price per square foot of land. Local appraisers can determine this pricing.

In the event that the property is to be used for higher density commercial uses, it would be appropriate to charge rent based upon the gross square footage of the buildings permitted on the site, with a minimum rent based upon the square footage of land area. This rent structure reflects the economics of the marketplace and knowledgeable local appraisers can calculate the rents.

Port Canaveral Land Use Plan – Final Report 43 SECTION 6 – COVE PHASE II AREA ANALYSIS

Site Location and Description

The Cove Phase II Area is located at the center of the Study Area. The sub-area is approximately 68 acres and is the principle waterfront commercial tourist area of the Port. Glen Cheek Drive is located on the north, Dave Nisbet Drive borders the west, Flounder Street is on the east, and George King Boulevard is on the south.

Existing Uses

The Cove Phase II Area has a mix of existing land uses which include: restaurants, gift shops, marinas, fishing- related supply and repair stores, and commercial fishing. Freddie Patrick Park is also located in the Cove. In recent years, landscaping and street improvements have improved the physical image of the Cove.

Planning and Design Objectives

The Canaveral Cove Phase II Area should become a mixed-use district in which a wide range of compatible uses are deliberately composed to unlock the advantages of an interesting and unique waterfront place for port-related uses, tourism, recreation, and entertainment. In order to achieve the benefits of a mixed-use area, the following specific objectives must be accomplished:

• Support for compatible, high-quality mixed use – The Port should consistently support improvements, changes or new development that provide high-quality uses and distinguish the area as a high-quality destination. The mix of uses should expand the number of choices of activities for visitors, and extend their stay at the Port.

• Coordinated development planning and design – To achieve a critical mass of uses, the Port should ensure that future proposals are well coordinated with adjacent land and with the evolving character of the entire district, so that each increment of development provides a high level of quality that promotes subsequent investment that will expand the success of the district as a whole.

• Excellent pedestrian environment – This area should feature an excellent pedestrian environment that encourages walking between uses, along the waterfront edge and within open space. High quality streetscape and landscape improvements will be needed. In addition, land planning and development must provide a density of development and proximity among uses that promotes pedestrian activity. Inactive or uninteresting gaps along paths or sidewalks such as large parking areas are major barriers to pedestrian activity.

Port Canaveral Land Use Plan – Final Report 44 • Concentration of uses near the water’s edge – The water’s edge and the activities along it should be a major focus of the mixed-use district. The Port should promote development that creates a dense mix of uses along and near this edge, connected by pedestrian links including a wide public “boardwalk” along the bulkhead, except where safety issues require temporary or permanent barriers.

• Shared parking strategies – To create an adequate density of development, the Port should support shared parking strategies. The objective is to limit the amount of parking near the water’s edge or in locations that will detract from the pedestrian experience within the district. This approach will also minimize unnecessary and inefficient use of the land for excess parking. The Port may achieve this objective through use of many strategies, including on-street parking, provision for meeting parking requirements off-site, provision of shared parking lots, or other means.

• Water-dependent uses – Water-dependent uses are critically important within this area, with a particular focus on tourism and recreation-related boating and fishing uses. The Port should actively promote the preservation and enhancement of these use categories. In addition, certain marine industrial uses such as commercial fishing may be compatible and even desirable within this area of the Port. Such uses should be reviewed on a case-by-case basis, so that compatibility, safety and security issues are consistently resolved prior to any change or new development.

• Preservation of land for water-dependent uses – Consistent with the emphasis on water- dependent uses, the Port should preserve the landside area adjacent to the bulkhead to provide for loading, off-loading and servicing requirements, and provide reasonable setbacks for larger scale or permanent development that would substantially restrict the Port’s future ability to accommodate changing bulkhead needs.

• New street patterns – New street patterns should be created that will provide the access into the interior of the Canaveral Cove Phase II Area and simultaneously provide highly developable leaseholds in a traditional “street and block” configuration.

• Public open space – The Port should promote the creation of high-quality public open space amenities that can serve as destinations for visitors and create visual connections between interior parcels and the waterfront. This open space should be programmed to support special events, interpretive elements and other features that will generate interest and excitement.

• Visual quality – The Port should consistently require new development and renovations that upgrade the appearance of the area. There should be a clear emphasis on high-quality landscaping and signage, similar to the Port’s ongoing program of improvements in other areas. The architecture should be consistent with the traditions of coastal Florida and portside development, rather than borrowed images from other places.

Land Use Plan

The Canaveral Cove Phase II Area should be transformed into a dynamic mixture of water- dependent, tourism, retail, restaurant and entertainment uses. Water-related and water-dependent uses that cater to active waterfront use should be concentrated along the water’s edge. Higher density mixed-use may be located somewhat further to the south. The plan also acknowledges

Port Canaveral Land Use Plan – Final Report 45 the importance of civic open space as part of the overall mix, helping to create a unique sense of place and orientation that will enhance the economic vitality of the entire district. Finally, the plan promotes outdoor entertainment uses as a way to attract new visitors and profitably use portions of the area that will not be needed. The general allocation of uses is indicated in Figure 16 – Cove Phase II Area Land Use Plan, below.

The following list of uses includes those elements that are considered central to the best long- term viability of the Phase II Area:

• Charter fishing and headboat services • Marina-related sales and services • Fishing and boating-related sales and services • Berthing of small vessels, including commercial fishing vessels • Retail seafood establishments • Restaurants • Hotels • Other tourist accommodations such as time-share condominiums • Destination retail • Entertainment uses including excursion boats and performance venues • Public open space and boardwalks • Other water-dependent services • Office space related to port functions • Public transit stations or stops

Mixed-Use Development Hotel / Hospitality Waterfront Mixed Use Retail Commercial Water-Dependent Restaurant Marina-Related Open Space Retail Tourism Open Space

Parking and Outdoor Entertainment Use

Figure 16 - Cove Phase II Area Land Use Plan

Port Canaveral Land Use Plan – Final Report 46 There are several uses that may also be encouraged if the extent, location and activity are found to support the mixed-use character of this area. Such uses include: office space not related to Port uses and maritime industrial activities including landside facilities for commercial fishing operations.

Parking is intended to be a principal use as well as an accessory to individual uses. The long- term success of the area is highly dependent upon the provision of shared parking resources that allow the concentration of uses and the creation of an attractive pedestrian environment. Such a strategy is also essential to preserving areas along the water’s edge for active uses and open space.

Uses that should be discouraged include convenience retail uses, as they do not generally contribute to the goal of creating a distinctive destination area. Housing has been excluded as an encouraged use, principally because of concerns about future conflicts that may occur between a permanent residential community and the commercial port operations that are central to Port Canaveral’s mission.

Detailed standards and guidelines are a particularly important implementation step that will help ensure the investment success of all participants in the future of the Canaveral Cove Phase II Area. The following list of conceptual standards indicates some of the approaches that should be included:

• Density - The Port should generally support high-density development within this area of the Port, and allow for substantial flexibility in terms of lot coverage. No site coverage limits need be applied, but new development should provide adequate space for public sidewalks and connections along all streets and to all public parking areas. Parking areas should include landscaping to reduce the visual impact of large amounts of paving and vehicles. Landscaping is encouraged where it can buffer unlike uses or provide public open space in connection with walkway systems or uses. However, the intention of this area is to provide continuously interesting pedestrian paths along the waterfront and principal streets that are not interrupted by large gaps between buildings, inactive open land or parking areas. A continuous strip of open site area should be retained without building improvements, to provide for ongoing, flexible use and access to the bulkhead.

• Height - Building heights for hotels should be a minimum of four stories, and should not exceed 12 stories without special consideration and approvals. All other buildings other than marine-related structures should not exceed three floors. Pitched roofs are encouraged, and should not be limited in height, except for large marine-dependent buildings such as storage sheds. Building heights for marine related uses should not exceed 50 feet, measured to the top of a peaked roof or, alternatively, to the cornice or parapet, if the roof is either flat or is not visible to a pedestrian within 200’ of the building.

• Setbacks - No side yard or front yard setbacks should be required; however, building code practices must be followed to allow similar approaches to adjacent lots. Judgment must be used to establish a site-by-site approach to building location, so that the area is pleasant and has an attractive balance of landscaping and also reinforces the activity along pedestrian edges. Along the bulkhead, a standard minimum setback of 25′ is recommended, except where existing uses already occupy areas within the setback, or where a reduced setback is needed as a practical requirement of a water-dependent business or activity.

Port Canaveral Land Use Plan – Final Report 47 • Parking Standards - The Port and the leaseholders should ensure that an adequate amount of parking is provided for future uses, and this should be a condition on any leasehold extension, renegotiation or proposed new use not provided in the existing lease. The leaseholder should demonstrate the maximum parking required, and how it will be accommodated within designated on-site spaces. If no demonstrated parking assessment is offered by the leaseholder or accepted by the Port, the Port should require a minimum of 4 spaces per 1,000 gross square feet of restaurant or retail space, 1 space per 2 occupants as permitted by code for meeting space or entertainment use, 3 spaces per 1,000 gross square feet for office or other commercial space, and .5 spaces per stored, accessible boats in marina facilities.

Development and Improvement Plan

Canaveral Cove holds great long-term promise as a center of economic and civic activity, if new development and improvements to appropriate existing uses can be combined to create a concentrated district of inter-related uses. There is more than enough land to support a mixed-use district that meets the opportunities documented in the discussion on the market feasibility of the area. The main challenge is to create an appropriate mix of uses that are located and design to best support one another.

Figure 17 - Cove Phase II Area Illustrative Development Plan

Figure 17 – Cove Phase II Area Illustrative Development Plan indicates one vision of how future decisions might create such a district. It is intended to convey the potential character of a

Port Canaveral Land Use Plan – Final Report 48 successful mixed-use district. It is not, nor could it be, the actual final layout plan for the Phase II area. Specific site planning and design decisions will need to be made incrementally by the Port in conjunction with existing and future tenants over time. While the final layout of buildings, open space, parking and uses will vary from this illustration, the purposes of the land use plan can be met by following the principles described below.

A fundamental requirement for successful mixed-use redevelopment is the creation of an improved network of streets and developable parcels within the Canaveral Cove Phase II Area. Today, development is concentrated along Glen Cheek Drive. Shallow parcels fill the area between the bulkhead and Glen Cheek Drive, while a variety of deeper parcels have been created to the south. The location of Glen Cheek Drive and the concentrated character of uses north of this street are consistent with mixed-use planning goals for the area. It provides an access drive that brings visitors close to the waterfront, and serves water edge uses that must rely, in part, on offsite parking to meet their needs. Except for minor changes that may be proposed to provide improved traffic configurations or adapt this alignment to future development, there is no need to consider relocation of this street.

A new street should be created to the south and generally parallel to Glen Cheek Drive. This street should extend to Flounder Street on the east, using a short segment of Glen Cheek Drive that already forms an intersection just south of the Sunrise Marina leasehold. The planning and design of the new street should directly align with a further extension to the west, within the Scallop Drive/Mullet Road area as discussed previously. The new road should have adequate capacity to provide for left turn channels, but need not be a four-lane roadway unless detailed traffic studies indicate a need for such a wide roadway.

The Port should also provide for future north/south connector streets that connect Glen Cheek Drive to the new street. The location and design of these connections should be used to generate “block” size development parcels that will encourage pedestrian connections and support the density and continuity of development consistent with the mixed-use future of the district.

All of the new roads should provide on-street parking, except where safety or visibility would limit this option. On-street parking will provide an important convenience and business advantage within the area, and can support the pedestrian environment by providing a buffer between passing traffic and sidewalks. All streets should be provided with sidewalks and crosswalks at intersections.

New development should be clustered along the principal street edges, either along the sidewalks or behind relatively narrow landscape setbacks that provide a pleasant and interesting pedestrian environment. Entrances and the supply of off-street parking along the principal streets should be held to the minimum necessary to provide for handicapped access, short-term parking, and pick- up and drop-off. To the greatest extent practical, off-site parking should be provided in grouped parking areas that are internal to the new blocks, south of the waterfront, or in the easterly portions of the Mullet Road/Scallop Drive Area.

The water’s edge should become a public accessway that allows visitors and users to move as freely as possible along its length, interrupted only where commercial fishing or boat-related operations preclude safe passage. The boardwalk should be improved with consistent materials and lighting over time. At several points, public open space in the form of small parks and lookouts should be created, linking the water’s edge to the streets, sidewalks and uses to the

Port Canaveral Land Use Plan – Final Report 49 south. These open spaces can become venues for special events, festivals, celebrations and interpretive features that draw the public and explain the purposes and activities of Port Canaveral.

The bulkhead should always be reserved for berthing of boats, with a continued preference for locating charter, excursion, and recreation-related boats and a secondary emphasis on commercial fishing. It should be noted that the continued location of the existing gambling excursion boat within this area is consistent with the planning direction. However, the parking that services this use would be better accommodated elsewhere. Waterside land is more appropriate for a mixture of uses that can take advantage of the views and activities. Furthermore, parking in this location is a detriment to the expansion of a pedestrian-friendly environment. The Port and the leaseholder should pursue mutually beneficial options for relocating as much parking as possible from the waterfront or reorganizing the location and operation of this element as part of the implementation of this land use plan.

The uses between the bulkhead and Glen Cheek Drive need to be oriented both towards the street and the water. The design of the buildings and landscapes need to provide as attractive and interesting an appearance as possible from both vantage points. There is a general advantage to providing a cluster of smaller-scale uses along the waterfront edge that continues to include restaurant, retail, and recreational fishing. The buildings along the water’s edge should continue to be relatively low, one or two-story structures. This approach allows taller buildings to the south to retain greater views towards the channel and the Port. The parcels to the south of Glen Cheek Drive, on both sides of Dave Nisbet Drive, and along the new street will be available for a wide range of uses, including the larger-scale hotel development that is encouraged for the area.

There are many locations that could reasonably absorb hotel uses within the area and be consistent with the remaining land use plan goals. However, hotel development should be directed to accomplish the following purposes:

• Image - The image of the hotels is linked to the image of the mixed-use Port area that will surround them. The hotels should be attractive architectural additions to the Port, and be custom-designed to be consistent with the design standards and design review process that are part of the Plan’s implementation process. The hotels should not be standard hotel chain design or minor variations on these themes.

• Quality -The hotel quality must appeal to a range of potential visitors, and provide a high- quality facility that is consistent with the long-term plans for the Port.

• Location - A number of locations may be appropriate for hotels within the Canaveral Cove Phase II Area. Among the most favorable sites are those immediately south of Glen Cheek Drive, or west of Dave Nisbet Drive. If located in this area, the hotel should be set back from the water’s edge a sufficient distance to retain flexibility for future water-dependent uses to the north. The hotels should take advantage of the views on all sides, to the greatest extent practical.

• Massing – Hotels that are designed to take advantage of views are favored, and building heights up to eight floors have been anticipated. Buildings with stepped massing are encouraged. Articulation of facades with bays, balconies, or other features are also beneficial.

Port Canaveral Land Use Plan – Final Report 50 Massing of the lower levels should be distinguished from upper floors, to relate to the smaller scale buildings that will compose the majority of Canaveral Cove Phase II.

• Pedestrian Level Activation – The ground floors along the major streets and pedestrian routes should be activated with uses and architectural treatment to the greatest extent practical. These could be composed of lobbies, restaurants, cafes, lounges, shops, and meeting areas. Long blank facades should be avoided.

• Parking – Hotels should be sited to provide limited parking along the major streets and pedestrian areas, and to provide for the great majority of parking in adjacent areas or lots that are set back from the active pedestrian streets and connections.

An outdoor entertainment facility for live music is recommended as a potential use for available land within the Canaveral Cove Phase II Area. Such a facility should be designed with a high quality landscape, stage area, and support functions, and should be professionally operated. This use can take advantage of shared parking, including use of available spaces and land on the Banana River site. Event parking would be an appropriate interim use for the Banana River site until development is completed there, and spaces associated with a conference center could be made available for performances through coordinated scheduling. The Port will need to create adequate pedestrian pathways that connect the Banana River site to Canaveral Cove Phase II for this purpose. The design of this facility needs to take into account views from the highway as well as roadways within the Port, and create a park-like setting.

There are several parcels between SR 528 and Dave Nisbet Drive that could be beneficially redeveloped over time. Some of this land should be reserved for additional stormwater retention that may be needed, and provided with an attractive landscape. The land remaining for development must be designed to be attractive from SR 528, but provide a principal entrance and façade along Dave Nisbet Drive, which will continue to serve as the main accessway into the mixed-use district.

There will be a significant future need for shared parking facilities within the Canaveral Cove Area. These should be constructed and managed by the Port, and used by multiple tenants through agreements. In general, the Port should promote orderly investment in the area by providing parking lots in the interior portions of the area, and within the eastern portions of the adjacent Mullet Road/Scallop Drive Area. The existing parking lot that serves a similar function should be phased out in favor of new mixed-use development, and the parking spaces relocated to areas further south. The parking resources should be closely coordinated among existing and new businesses, and should be linked by pedestrian paths and sidewalks. As noted above, on- street parking should be provided to the greatest extent practical, providing additional convenient parking to serve the many uses that will congregate in the northern portions of the area.

Impact on Existing Leases

Much of the future development and improvements in the Canaveral Cove Phase II Area will be within new leaseholds created from land currently within the control of the Port. In addition, the redevelopment of this area will result in a sequence of development that will result in the progressive reorganization of some leaseholds to provide greater development opportunities. Prospective changes to the leasehold patterns are indicated in the following diagrams. These maps indicate key principles to be followed, but are not intended as the final leasehold layouts.

Port Canaveral Land Use Plan – Final Report 51 Final decisions must take into account many development and design factors that cannot yet be fully determined.

The Port should use the reorganization of the street system in the northeast corner of the area to reconfigure leaseholds and promote mixed use development consistent with this plan. It should similarly promote new leasehold parcels south of Glen Cheek Drive that promote efficient new development, using the new streets, reorganized parking, and leasing of appropriate land currently controlled by the Port. (See Figure 18 - Cove Phase II Area Illustrative Parcelization Plan, below, and Figure 19 – Cove Phase II Area Lease Impact Map, on the following page.)

Figure 18 - Cove Phase II Area Illustrative Parcelization Plan

In general, the Port should support proposals for reorganization or redevelopment of other existing parcels that are consistent with its plan for the area, as well.

Port Canaveral Land Use Plan – Final Report 52 Figure 19 - Cove Phase II Area Lease Impact Map

Timing

The redevelopment of the Cove Area could commence within a short period of time, probably with the redevelopment of existing sites by existing tenants. Given the long lease terms remaining on some parcels of land, the development period could likely continue over a 10- to 20-year period unless existing leasehold interests could be reacquired for development. We expect that substantial development would be underway with the initial five years of the redevelopment program, with the initial phase including a limited-service hotel, specialty and tourist-oriented retail, restaurants, and related uses. The entertainment venue would likely be a second phase, along with a second hotel or inns, retail, and related commercial development. If land were available, the balance of the redevelopment could be completed within a 10- to 15- year period.

Infrastructure Improvements

The proposed Cove area would have an improved network of streets, which is intended to bring users closer to the waterfront and to restaurants and shops. Infrastructure improvements would be in the form of a new road parallel to Glen Cheek Drive and would eventually line up to the west with the new Scallop Drive. This new road would incorporate and encourage pedestrian activity throughout the Cove and Study Area. The new road would provide for improved access and also on-street parking. As part of this work landscaping and hardscaping will be utilized to improve aesthetics within the area.

Port Canaveral Land Use Plan – Final Report 53 Construction of a new road would also provide a utility corridor, which will provide a backbone of various utilities throughout the study area. Utilities could be constructed in this area with little, if any, disruption to existing business or other activity. It would also allow for “looping” of water lines and possibly power to promote improved service during times of potential service interruption, such as broken waterlines, etc.

The proposed improvements can be phased as necessary to accommodate existing leases and activities. Construction of the new road and utilities will create new areas ready for development.

The Port is currently investigating a number of stormwater alternatives for the Study Area. It is envisioned that many of the improvements will only affect already developed areas. The existing improved areas will require only some additional stormwater treatment. It is anticipated that stormwater will be directed to existing stormwater management facilities for some treatment before discharging to the barge canal/Atlantic Ocean.

The details of the infrastructure should be evaluated at the time the study’s recommendations or when portions of the study are closer to implementation. Meetings with the utility providers should be held early in the design process in order to master plan the utility improvements for not only this portion of the project but also for future build-out of the plan.

Financial Feasibility

Based upon financial models of the economics of redevelopment projects in the Cove Area, it is anticipated that retail redevelopment would be feasible with rents in the range of $11.00 per square foot, triple net. Such rent levels are reportedly being attained at Cocoa Village and should be attainable in the Cove Area. It is anticipated that limited service hotel rates would need to be in the range of $95.00 per night and inn or B&B rates in the range of $75.00 per night. Such rates would be attainable by quality operators, who would be able to capitalize on the location to attract an increased share of the cruise and casino boat patrons, as well as other tourist visitors to the area.

Port Canaveral Land Use Plan – Final Report 54 SECTION 7 – COLUMBIA ROAD AREA ANALYSIS

Site Location and Description

The Columbia Road Area, approximately 49 acres, is located in the southeast corner of the Study Area. The area has extensive frontage along George King Boulevard and is highly visible as a “gateway” into the Port.

Existing Uses

Office space comprises the major existing land use. There are also shipping-related retail, storage and warehouse uses in the sub-area. The vacant Premier Cruise Line office building is located in the center of the sub-area. Other existing uses in the area include a fire station and wastewater facilities.

Planning and Design Objectives

The Columbia Road Area should remain a mix of office, light industrial and industrial uses. The land, streets and developable parcels may be better organized over time to promote larger-scale or higher-value development because of the location and orientation of portions of the area. Specific objectives within the Area include the following:

• Continued commercial, light industrial, and industrial use – The area is well suited to the general types of use that are within the area today.

• Preference for Port-related uses – To the extent practical, businesses that are related to Port functions and operations should be encouraged over those that do not require a location within the Port boundaries. However, surplus land should be offered for development by high-value uses that can contribute to the regional economy because of the locational characteristics of the site.

• High value development on visible sites – The Port should promote the development of new uses on sites that are highly visible from George King Boulevard.

• Street location and parcelization – In order to maximize development opportunities, the Port should undertake or promote actions that create well-situated parcels.

• Provide high quality landscaping – The visible edges of the area should contain pleasant landscaping, contributing to the overall appearance of the Port.

Port Canaveral Land Use Plan – Final Report 55 Land Use Plan

The Columbia Road Area should remain mixed-use office, light industrial, and industrial uses that provide local and regional economic benefits. To the greatest extent practical, these uses should consist of businesses that are directly related to Port functions or operations, or otherwise promote the regional economy because of its special locational characteristics.

The most desirable land use pattern is depicted in Figure 20. Perimeter parcels that are highly visible from George King Boulevard should be organized and developed by high-value or larger- scale uses, in keeping with the visibility and accessibility of these sites. The interior parcels may be distributed among a wide range of qualifying uses. Target uses within the Columbia Road Area should include: • Offices • Transhipment related to trade port activities • Light manufacturing including assembly • Repair shops • Manufacturing and materials handling of small-quantity operations • Training facilities • Parking as accessory to individual uses.

Uses that should be discouraged include convenience retail as inappropriate for the Port. Destination retail, entertainment or hospitality uses should be located in other locations within the Port, in order to meet key development goals. The general allocation of uses is indicated in Figure 20 – Columbia Road Area Land Use Plan, below.

Office Use Research & Development

Commercial / Industrial Mixed Use

Figure 20 - Columbia Road Area Land Use Plan

Detailed standards and guidelines should be developed and implemented to further guide investments in the Columbia Road area. As part of the land use plan, several principles are recommended:

Port Canaveral Land Use Plan – Final Report 56 • Density - Site coverage should generally be limited to 35 percent for office uses and 50 percent for industrial or other commercial uses, unless additional need is demonstrated along with the ability to provide parking, loading and other requirements is demonstrated to the Port’s satisfaction. At least 15 percent of the land should be retained for landscaping and open space along public frontages. This requirement can easily be met within the setbacks recommended, which are appropriate to provide flexibility in future site development from lot to lot.

• Height - Building heights need not be limited in this area, although any structure over 35 feet in height should be reviewed to ensure that its overall visual impact on surrounding properties and within the Port is positive.

• Setbacks - Front yard setbacks should be a minimum of 20 feet and include substantial landscaping. Side yard and rear yard setbacks should be respected at a minimum of 15 feet to allow for flexible future development on adjacent sites.

• Parking Standards - The Port and the leaseholders should ensure that an adequate amount of parking is provided for future uses, and this should be a condition on any leasehold extension, renegotiation or proposed new use not provided in the existing lease. The leaseholder should demonstrate the maximum parking required to the Port’s satisfaction; otherwise, the Port should use a standard minimum of 1 space per 1,000 gross square feet of building area for industrial uses, and 3 spaces per 1,000 square feet of office or other commercial uses. Shared parking among leaseholders or the provision of shared parking facilities constructed and managed by the Port are useful options in this area.

Development and Improvement Plan

As these surrounding areas of the Port are improved over time, the Columbia Road Area may be strategically located to absorb higher-value development. Portions of the area are also located at highly visible “gateway” locations that may make them desirable for new uses. In addition, the Port can unlock future development potential by promoting reorganization of streets and parcels in several locations. These concepts may be accomplished through the planning principles contained in this discussion. An illustrative plan has been prepared to help envision how this may occur, with the understanding that more study and development decisions will affect the final appearance of the area.

The new SR 528 interchange, the realignment of George King Boulevard and the new intersection with Dave Nisbet Drive provide an important new potential for the Columbia Road Area. The western edge of the area has been set aside for storm water retention that will be required to balance new development, streets and parking areas. High-quality landscaping should help make this an attractive gateway, not just to the Columbia Road Area, but also to the Port as a whole. There may be an opportunity to create a direct entrance drive into the Columbia Road area through a new street segment opposite Dave Nisbet Drive. This location has the benefit of close access to the highway and the use of a large and well designed intersection.

As envisioned in the development plan, the new entrance road could lead to new high-value development parcels that would face the Port’s mixed-use development area, be visible from SR 528 eastbound, and have the landscaped retention ponds as a foreground. This could be

Port Canaveral Land Use Plan – Final Report 57 accomplished through some reorganization of leaseholds within the western portions of the Columbia Road Area. (See Figure 21 – Columbia Road Area Illustrative Development Plan.)

Figure 21 - Columbia Road Area Illustrative Development Plan

Similarly, the developability and value of the northern portions of this sub-area could be improved through several strategic actions. The parcels adjacent to George King Boulevard are shallow and face to the south, away from the main east-west circulation path along George King Boulevard. Several of the parcels have previously been developed as small light industrial operations that, unfortunately, back onto King Boulevard. The Port is encouraged to pursue physically relocating these businesses and structures to other, more advantageous locations within the Port. The opened land can then be developed for office or larger commercial uses.

There is a narrow strip of land to the north of the former cruise line offices that has been so reduced in width by the adjacent site that it is practically undevelopable. The Port should relocate the future leasehold limits of the office parcel to allow for future development within this narrow strip of land, by relocating Challenger Road to the north.

Relocation of overhead utilities is likely to be required along the northern band of parcels, but would be a small cost relative to the benefit of obtaining substantial valuable leases on these sites.

The future Port and private development activities should consistently improve the quality of the landscaping along the visible perimeters of the Columbia Road Area, so that it contributes to the steady enhancement in the visitor appearance and overall value of investments within the Port.

Impact on Existing Leases

The land use plan would require the reorganization of several leaseholds over time, to create larger and more valuable development potential. The following graphics illustrate one scenario of how leasehold changes may occur. (See Figure 22 – Columbia Road Area Illustrative Parcelization Plan, and Figure 23 – Columbia Road Area Lease Impact Map.)

Port Canaveral Land Use Plan – Final Report 58

The reorganization of the streets along the western portions of the area would require establishing new lease lines, and may require reallocation of some undeveloped site areas now used for parking and storage. The parcels north and west of the Challenger/Columbia Road intersection should eventually be reassembled as a single parcel, and new parcels created in other areas of the Port to absorb the existing uses. The other major reallocation of land would occur with the relocation of the northern limit of the leasehold formerly occupied by the cruise line, establishing a somewhat smaller parcel and allowing the creation of more developable land to the north.

Figure 22 - Columbia Road Area Illustrative Parcelization Plan

Figure 23 - Columbia Road Area Lease Impact Plan

Port Canaveral Land Use Plan – Final Report 59 Special provisions to provide additional off-site parking should be made by the Port to support re-leasing of the existing office complex, if required, to accomplish the important long-term advantage of enabling development to the north.

In general, the Port should support proposals for reorganization or redevelopment of other existing parcels that are consistent with its plan for the area.

Timing

With the exception of the former Premier Cruise Line office building, the redevelopment of the Columbia Road area is likely to commence later than that of the Cove Area since the reuse is most likely for office and related commercial uses for which there is not currently a strong market. In the future, this area could potentially attract office and related development for firms that are related to the activities at the Kennedy Space Center International Space Research Park. In the event that demand for office and related uses does not materialize within a ten-year period, the area could be developed for service or retail uses; however, the development of this area should be carefully controlled as it is a gateway to the Cove Area and poor quality or directly competitive development will adversely impact the Cove Area’s redevelopment.

Infrastructure Improvements

The largest infrastructure improvement for this portion of the study area is the construction of the extension of Dave Nisbet Drive, south of George King Boulevard, to Atlantic Avenue. The extension would improve access to portions of the Study Area. Since much of the area within the Columbia Road sub-area is already developed, the infrastructure is already in place.

Future work would include the extension of Dave Nisbet Drive/Atlantic Avenue, “looping” of the waterline, construction of a new sanitary sewer network to service the presently undeveloped areas with the Study Area, power, etc. Stormwater will be directed to the existing stormwater management systems, including the lake at George King Boulevard, and conveyance systems at the Foreign Trade Zone.

As with the rest of the areas, pedestrian access from this area should be improved to bring pedestrians to the waterfront. These pedestrian ways should be landscaped and hardscaped in improve aesthetics and create interest in walking to other areas within the Port.

Financial Feasibility

As there is limited demand for quality office and related development, such development does not currently appear feasible. It is expected that such development will be undertaken in response to specific entities’ requirements for office and related commercial space. In order to become feasible, the rents will need to be in the range of $14.00/sf, triple net, or $20.00/sf gross. These rents are considerably higher than currently being attained in the area; however, after the Cove Area redevelopment becomes established, such rents are likely to become attainable.

Port Canaveral Land Use Plan – Final Report 60 SECTION 8 – BANANA RIVER AREA ANALYSIS

Site Location and Description

The Banana River Area, approximately 26 acres, is located in the northwest quadrant of the new SR 528 interchange. The sub- area rests on the east bank of the Banana River with the new SR 528 interchange fly- over passing over the site. It has good visibility from all directions off SR 528.

Existing Uses

The area, in its present condition, is vacant.

Planning and Design Objectives

The Banana River Site is a large, visible and highly accessible site that is separated from the working port by SR 528. Although it is a waterfront site, shallow water depths and environ- mental restrictions preclude practical development of water-dependent commercial uses. As a result, the site is very valuable over the long term as a coherent developable site for a comprehensively planned and designed hotel and conference complex. Specific objectives of this land use plan include the following:

• Retaining the site for the highest value long-term use – The Banana River site should be held as a single, contiguous site until the economic conditions in the Port and within the region permit the development of a hotel and conference complex that will provide substantial benefits to the Port, the surrounding community and the entire region. This strategy includes retaining adequate land to provide for future expansion of the hotel/conference complex and associated amenities. In order to achieve this goal, the Port should not subdivide the parcel or allow any other long-term capital improvements on this site until the primary purposes have been achieved.

• Gateway site - The site and architectural designs should take advantage of this gateway site to provide an attractive and high-quality gateway to the Port, Cape Canaveral and to the communities that line the beaches to the south. The complex should be oriented to take advantages of views of the development from the highway approaches. The architecture should be distinctive, site-related, and conform to design standards and review processes established by the Port. It should not be a generic design provided as a standard product of a hotel chain.

• Scale and height – This site can and should support large-scale development and building heights that take full advantage of the views in all directions. This site can readily absorb a tall building that serves as a landmark for the area. Along with the opportunity to create a taller building, the site requires a very high-quality architectural expression so that the landmark that is created is worthy of its long-term role as a highly visible civic landmark.

Port Canaveral Land Use Plan – Final Report 61 • Quality landscaping – The site’s landscaping should be of high quality, providing a pleasant appearance as people approach, enter and use the site. The landscape design should emphasize the natural quality of the water’s edge.

• Joint use parking – Some of the parking on the Banana River site should be used jointly to serve special events, performances or as a remote parking area to serve Port uses to the north, to the extent that extra spaces are available.

Land Use Plan

The Banana River site should be conserved for future use as a hotel and conference center site, when economic conditions and other Port development initiatives allow for full development of a high quality facility. Land use planning should also take into account potential expansion needs of these uses, and continue to conserve adequate land to provide for a full build-out. The Port should pursue other uses on this site only when it is clear that the site needs for hotel and conference facilities can be fully met. In the event that other uses are permitted, they should be planned and designed to be compatible in quality, image and character with the balance of the hotel and conference facilities. The general allocation of uses is indicated in Figure 24 – Banana River Area Land Use Plan, below.

Hotel Use

Figure 24 - Banana River Area Land Use Plan

Port Canaveral Land Use Plan – Final Report 62 In summary, the preferred uses for this area are:

• Hotel • Conference center • Accessory amenities and site improvements

Parking should be required to fully absorb the needs of the facility on the site. Recognizing that conference center parking needs will correspond to conference schedules and events, the Port should support the shared use of excess parking capacity to support uses in the adjacent Canaveral Cove Phase II Area.

Other uses may be supported on the site once the hotel and conference center have been established, and it is clearly demonstrated that excess site capacity exists to support such uses. If this circumstance occurs, the planning and design of additional uses must be closely coordinated with the hotel/conference center, to ensure an appropriate fit. Other uses that might be considered consist of restaurant or office space.

Detailed standards and guidelines should be developed and implemented, initially as part of a Request for Developer Proposals and subsequently to help achieve a mutually successful outcome for development within this area of the Port.

• Density – There is no need to set an overall density limit within the purposes of this land use plan. However, at least 25 percent of the site should be retained as landscaped open space under any development scenario to provide the needed buffering and attractive environment appropriate to the uses.

• Height – Taller building heights are generally preferred over lower structures, if the design achieves the high-quality, landmark character suggested. Hotel uses should have a minimum height of at least six stories. Buildings exceeding 16 stories should be carefully reviewed and considered to assess whether the visual and community impacts are positive in terms of the image of the site and the Port.

• Setbacks - Setbacks from all parcel edges are required to provide a pleasant landscape buffer and respect the environmentally sensitive Banana River edges.

• Parking Standards - The Port and the leaseholders should ensure that an adequate amount of parking is provided for future uses on site, which should be established through demonstrated need. Excess parking that may be available from time to time should be programmed for special events or to support other Port uses, to the extent practical.

Development and Improvement Plan

The Banana River site will become an increasingly rare parcel available for large-scale development within the region, for many reasons. It is in a highly accessible location from the regional highway system and commands a spectacularly visible location at the northern end of the increasingly developed beach communities along the Cape. The site offers similarly spectacular views from higher elevations, with interesting perspectives in all directions. It is edged by a natural waterfront, and has no immediate neighbors with low value investments that detract from the potential of the site. Finally, as a parcel held by a public authority, the site’s

Port Canaveral Land Use Plan – Final Report 63 development offers special opportunities, including the linkage to the quality and character of nearby Port improvements that could enhance the use value of the land significantly. (See Figure 25 – Banana River Area Illustrative Development Plan.)

Figure 25 - Banana River Area Illustrative Development Plan

The development plan envisions a future mid-rise hotel complex adjacent to a conference center facility. The grounds around the hotel/conference center can provide a wide range of amenities and features, taking advantage of the natural edge of the adjacent waterfront.

The siting of the hotel is intended to take advantage of views from the approaches along SR 528, and provide a gateway architecture that communicates an image of quality and distinctive character. The lower-scale conference center is intended to create an active visual relationship between the public circulation areas and an attractive, naturally landscaped setting. This landscaped setting should become an imageable part of the site development, and be attractive and interesting from vehicles passing by the site on SR 528. Reserving space for a potential MAGLEV station site on the property enhances the overall future value of the site and improves the level of transportation service to Port Canaveral.

The approach road into the site needs to provide an attractive progression from the Port and highway ramps through landscaping, signage and lighting. Parking areas should be buffered significantly from the driver’s view, and landscaping should further soften the appearance of the parking areas from the nearby overpass.

The waterside features of this site need to be developed with sensitivity towards the special environmental resources within the Banana River. Perhaps a small boat dock for rowing or sailing could be extended into the River, and pathways, viewpoints and other amenities created. The storm water retention systems on the site should also be considered as a potential visual amenity, and designed with this in mind.

Port Canaveral Land Use Plan – Final Report 64 Timing

The market for destination conference/meeting hotel development and financing was poor prior to September 11, 2001 and remains so. Therefore, it is likely that the proposed 350+ room full- service hotel and meeting facilities at the Banana River site will not occur within the next several years, until market conditions improve and both equity and debt capital become available. The delay in soliciting development proposals for the Banana River hotel development will enable the initial phases of the Cove Area to be completed, establishing a new tourism and festival market area orientation to the Port’s development properties. This, in turn, will enhance the attractiveness of the Banana River hotel development site.

Infrastructure Improvements

The Banana River Area presently is undeveloped with only a newly constructed stormwater management system in place for the SR 528/George King Boulevard overpass project. This site has great access and visibility.

It appears that this sub-area has been considered part of the new stormwater management system and would allow for connection of future improvements to that system.

Underground utilities, such as potable water, wastewater, electricity, and communications will be necessary for development of this property. It is anticipated that all of these utilities can be serviced and extended from existing sources near the overpass. Once project planning and RFP development begins, extension of the utility service should discussed with all the providers including the City of Cocoa, the City of Cocoa Beach, Florida Power and Light, BellSouth, Time Warner Cable, NUI, etc.

Since this parcel is presently undeveloped, the development potential and configurations are considerable. This is one of the few areas within the Study Area that can be developed with no disruptions to existing functions and operations.

As with all of the projects, landscaping and hardscaping are integral. Public access to the water’s edge will be provided and is encouraged. The parcel is large and provides for extensive opportunities to enjoy the waterside, shoreline, and associated views. It is anticipated that irrigation will utilize reuse and possibly stormwater.

Environmental considerations will have to be reviewed as part of the future development.

Financial Feasibility

Based upon financial models of the economics of redevelopment in the Cove Area, it is antici- pated that a 350-room hotel development within the Banana River sub-area would be feasible with average daily room rates in the range of $150.00 per night. These rates could be expected to increase during the high season and decrease in the off-season. While these rates are above those currently being attained in the market, the facility would be superior to those that are presently located in the market area, but with rates below those of similar quality hotels in the Orlando area. The estimated rates would be attainable by a quality facility which would be able to capitalize on the location to attract business meetings and conferences as well as destination tourist visitors, and a share of the cruise and casino boat patrons.

Port Canaveral Land Use Plan – Final Report 65 SECTION 9 – OVERALL LAND USE PLAN AND ILLUSTRATIVE DEVELOPMENT PLAN

The proposed land use plan will serve the Port, the surrounding community, the region and the state by establishing a comprehensive approach to future land use and development that can best take advantage of the unique location and site characteristics of the Port. This land use plan hinges on the recognition that Port Canaveral consists of landside and waterside resources that are sufficient in scale and diversity to support a wide range of land uses and activities. The Port provides specialized deep-water port capabilities that serve the cruise and cargo needs of the region, and this capacity must be used to the best advantage. The areas dedicated to these uses are largely outside of the Study Area. The landside and waterside areas within the Study Area are not well suited to future deep-water port uses. This is due to the location, size, and configuration of the land parcels. This is also due to the depth of the water in some locations and the economic need for bulkhead use by smaller-scale marine uses. (See Figure 26 - Overall Land Use Plan and Figure 27 - Overall Illustrative Development Plan.)

This approach recognizes the value of planning for the future success of smaller-scale Port activities and water-dependent uses, including commercial fishing, sports fishing, marina uses, and a variety of repair and supply needs. The planning goals and objectives also recognize the unique opportunities for compatible mixed-use development within this waterfront planning area that will enhance the region’s tourism and business economy.

By supporting a dynamic mix of uses, the Canaveral Port Authority is in a position to enhance the economic contributions that the Port provides and strengthen business opportunities within the Port. By promoting a rational infrastructure plan and appropriate land uses, the Port will promote the success of the businesses and the long-term return on public investment. By creating public recreation and open space amenities, the Port will directly support tourism in the surrounding region and the businesses and jobs that depend upon this key sector of the economy.

Within these general purposes, the planning and design objectives have been further refined to reflect several key directions. The land use plan recommends policies and actions that will:

• Create attractive mixed-use development as the best means to promote economic success for all of the appropriate uses within the Port; • Support water-dependent and water-related economic uses as a segment of the economy that relies on the Port’s location and inter-relationships among businesses; • Enhance tourism and create an attractive area that increasingly becomes a desirable destination for new users; • Separate incompatible uses to minimize negative impacts among tenants of the Port; • Preserve compatible existing uses and lease patterns that represent successful previous investment and future opportunities as part of a mixed-use future; • Create efficient infrastructure and parcelization patterns within the Study Area, consistent with the other goals.

Port Canaveral Land Use Plan – Final Report 66 Overall Land Use Plan Figure 26 Overall Illustrative Development Plan Figure 27

Wilbur Smith Associates With The Cecil Group Bonz / REA Inc. Stottler Stagg & Associates Creating Attractive Mixed-Use Development

The proposed land use plan seeks to achieve the benefits of mixed-use development for much of the land within the Study Area. Properly assembled, a mixed-use development pattern provides substantial advantages to all of the businesses and activities within the area. Tourism, recreation, retail, entertainment and restaurant activities can all benefit each other by providing multiple destinations and points of interest. The specific goal of “mixed use” in this context is to provide a high-quality visitor experience, expanding the choices that visitors may make on each trip to the site, or providing new destinations so that visitors will come more often. There is a need to unlock a pattern of investment in the Port that provides mutually compatible uses that strengthen previous uses and encourage additional investments. In this regard, an interdependent and critical relationship exists among water-related development, hotel, restaurant, recreation, entertainment and conference center uses. The reinvestment program calls for a combination of all of these uses as the market incrementally allows, with the net effect of high land value, successful businesses and investment, and the creation of a unique destination environment. There is a strong emphasis on creating a density of uses that provides a consistently interesting pedestrian experience, and locates parking opportunities in strategic locations that serve this goal. The plan recognizes the value of the waterfront edge and visual connections to it in the location of future uses and landscape improvements. If the waterfront is broken up into individual, unrelated parcels and if it has significant parking lots along its edge, the advantages of water-related mixed-use development will be lost. It emphasizes the importance of creating attractive, imageable places that form centers of activities and draw people. Similar advantages of mixed use are also found among the industrial and commercial uses within the Study Area. For example, the commercial fishing industry relies on the ability to flexibly adapt bulkhead and landside areas to changing uses and businesses that rely on one another. Similarly, the successful operation of marina areas depends on the ability to serve many boating needs, from sales to repair, storage, supplies and other activities. The growth of an interesting and dynamic mixed-use district will also support commercial office and light-industrial uses that have an advantage locating at the Port. Increasingly, business location is taking into account the proximity of other amenities and services as an advantage for the employees, patrons and business activities. Supporting Water-Dependent and Water-Related Economic Uses The Port has a significant and appropriate focus on supporting water-dependent and water- related uses as part of its mission. The proposed land use plan serves this goal by providing better opportunities for commercial activities that directly rely on the port’s access, bulkhead use, and land adjacent to the water. This portion of the Port has long been a center of the local fishing industry, providing space for berthing, loading, processing, storage and sales. It also accommodates repair and provisioning activities related to these activities. However, the landside and bulkhead requirements of these activities have shifted considerably over time, in reaction to changing resource, market and technology conditions. This land use plan has the objective of more efficient parcelization, land use patterns and bulkhead utilization so that the Port can better serve the pragmatic and changing requirements of this industry.

Port Canaveral Land Use Plan – Final Report 69 This area of the Port has significant recreational boating and fishing uses, including major concentrations of marina, recreational boat ramps, charter boat and many related support businesses. In addition to the value that these businesses and uses generate, the area is also supportive of other tourism opportunities associated with mixed-use development. The land use plan has a goal, as a result, of providing excellent landside and waterside support for recreational boating and fishing, with an emphasis on coordinated development that will be mutually supportive with other tourism uses. The land use plan also recognizes that there is a frequent need for bulkhead berthing for miscellaneous small commercial vessels that do not require large-scale deep water port berths. The land use plan retains the goal of protecting bulkhead areas and the land immediately adjacent to it to preserve access for marine-dependent commercial uses. Enhancing Tourism and Creating an Attractive Area The land use plan acknowledges the many economic benefits that the Port can provide through a well-coordinated program of tourism-related improvement in this area. The location, size and waterfront locations of the land within this area can be used to great public benefit by encouraging the development of associated attractions that draw new visitors and generate new business and job opportunities. Achieving the full benefit of this goal relies on creating a consistently interesting and pleasant environment for visitors through the design of each element and through attention to the positive relationships among uses, buildings, and open spaces. Separating Incompatible Uses Some land use relationships can be detrimental to the overall value of the land and the uses on it. The land use plan seeks to reduce or eliminate conflicts arising from incompatible uses that detract from the economic mission of the Port as a whole. The land use plan allocates land uses where they will be most compatible, and provides design and landscape recommendations that will help enhance the long-term value and economic success of the individual businesses and the of the Port. Preserving Compatible Existing Uses and Lease Patterns Much of the use and lease parcel patterns are consistent with the long-term goals of the Port as defined in this land use plan. Such uses and leasehold patterns should be retained, while the Port should pursue opportunities to encourage or require improvements within these leaseholds that would benefit both the leaseholder and the Port’s interests. Creating Efficient Infrastructure and Parcelization Patterns The land use plan recognizes the fundamental relationship between appropriate infrastructure improvements and effective use of the land. The Port should proactively provide the infrastructure improvements that will support its development goals. This includes improvements in the waterside infrastructure, road and pedestrian networks, parking resources, and utility network. The extent and timing of these improvements should be directly linked to actions promoting, encouraging and allowing appropriate private sector investments. The concept of “infrastructure” should also extend to active support of joint marketing or other business support programs that simultaneously promote the Port and the mix of business gathered in this area.

Port Canaveral Land Use Plan – Final Report 70 SECTION 10 – IMPLEMENTATION

This section summarizes the issues that must be addressed for the proposed development program to be implemented. These issues include development controls, existing leasehold interests in the redevelopment areas, the reconfiguration of parcels, and the disposition process.

Development Controls

It will be critical to establish development controls for the entire redevelopment area prior to commencing the implementation process. The purposes of the controls are to establish building and design standards for the area. Specific development controls should be prepared for each land use zone in each of the sub-areas. These development controls would be similar to zoning and should establish the permitted uses, densities, coverage ratio, building height, and design standards.

These controls must apply to all new development, as well as modifications to existing buildings and new construction on existing leaseholds. The controls protect future developers and their investors from the potential loss in value resulting from low-quality development on nearby properties. This will be particularly important in the Cove Area, in which higher value and higher-density development is anticipated. Failure to establish such development controls prior to commencing the redevelopment of the area would allow the initial redevelopment projects to establish the quality and design standards of the area. If the initial development projects are of poor quality and design, it will become difficult to attract higher-quality developers to the Port for future phases. Thus, comprehensive development controls are critical if the Port desires to maximize the quality and scale of development in the Port area.

Existing Leasehold Interests

Although significant portions of the sub-areas proposed for redevelopment are encumbered by ground leases, in many instances the existing uses and ground leases are not inconsistent with the implementation of the redevelopment program. In general, where the existing land uses are compatible with the development plan, such uses should be preserved and, where possible, improved. This, for example, is already the case for two properties in the Cove Area.

In areas where development is expected to occur within the next 5 to 10 years, it may become necessary to consolidate and reconfigure some existing parcels to accommodate the new development. Fortunately, major portions of the area to be developed are, or will fall, under the Port’s control and are not encumbered by ground leases.

The presence of existing ground leases, with remaining lease terms of 15 and more years, may complicate the implementation of the development program in locations which are potential redevelopment sites and where existing tenants either desire to maintain the existing uses or redevelop in a manner incompatible with the development plan as ultimately adopted by the Port or its development regulations. In both the Mullet Road/Scallop Drive area and the Columbia Road area, the development controls in the areas designated for “Office Use,” “Marine Industrial,” and “Commercial Mixed Use” should provide adequate long-term protection for existing tenants, while enabling the future redevelopment of the area for offices and related commercial activities.

Port Canaveral Land Use Plan – Final Report 71 There may be instances where there is an existing ground lease for an underutilized parcel that is critical to the development of the area or otherwise facilitates the overall development in the area. It has been our experience elsewhere in similar circumstances that existing tenants often are either willing to sell the ground lease or to participate with a qualified developer in redeveloping the parcel. If it is not possible to negotiate the acquisition of the parcel, it may be possible to bypass the parcel as long as there are development controls that can prevent the bypassed parcel from jeopardizing the quality of the area and the investments made by other developers. In other public venues, where tenants have been unwilling to be bought out and where the use imperils the overall redevelopment effort, eminent domain takings have been utilized as a last alternative.

Parcelization

This report provides an illustrative parcelization plan for each sub-area that shows a potential subdivision of the area in a manner that minimizes the conflict with existing leased parcel lines and new parcel lines. The plans are only illustrative and the actual parcelization should be undertaken at the time that the disposition process is to be undertaken.

Marina Area– There appears to be little problem with the parcelization or uses in the Marina Area; however, in order to expand dockage and improve the marinas, the water sheet allocations will need to be reconfigured. This could be done through negotiation with their parties since no existing tenant would lose dockage and most could actually increase the linear footage of dockage. It also appears desirable to transfer a small portion of land from the water-dependent Mullet Road/Scallop Drive Area to the Marina Area for expansion of the existing marina-related uses and to relocate an existing roadway.

Mullet Road/Scallop Drive Area – There are several changes to the Mullet Road/Scallop Drive Area that would enhance abutting areas. As noted above, a small transfer of land to the Marina Area would be needed to accommodate the expansion of the Marina Area. Also, in the eastern portion of the Mullet Road/Scallop Drive area, a portion of land would be required to create a major parking lot to serve the redeveloped Cove Area. It is recommended that only limited on- site parking be provided in the Cove Area in order to create an attractive village center that would enhance tourism.

The Mullet Road/Scallop Drive Area would not be redeveloped in the near-term future; most uses could remain unchanged for the time being. The waterfront would be held for active water- dependent marine uses such as commercial fishing and related uses; however, we recommend that the depth of the waterfront parcels be extended to the relocated Scallop Drive/New Street Extension. The area between Mullet Road and the relocated Scallop Drive/New Street Extension is proposed to be used for continued industrial uses, but changing to commercial uses in future years as the redevelopment of the Cove Area moves forward. The parcelization of this area would need to be redefined at the time of the disposition of parcels for redevelopment.

Columbia Road Area – It would be desirable to redefine the parcel in front of the existing office building to provide sites for two additional office buildings. Additionally, it would be advisable to relocate several small industrial buildings to sites elsewhere in the Port Area in order to provide a future site for a new office/commercial building.

Port Canaveral Land Use Plan – Final Report 72 Cove Phase II Area – The Cove Area has a number of ground leases, with expiration dates from the near-term to more than 15 years. In many instances the existing parcelization could accommodate redevelopment. There are a number of contiguous sites in the Cove Area that are, or will fall, under the control of the Port, which provides flexibility in the parcelization for new development.

The Illustrative Parcelization Plan for the Cove Area demonstrates the alternative parcelization that could occur with respect to the parcel located at the southeast corner of the intersection of Glen Cheek and Dave Nisbet Drives. The plan illustrates three separate parcels – one at the corner of Glen Cheek and Dave Nisbet Drives, one midway south on Dave Nisbet Drive, and one at the corner of Dave Nisbet Drive and New Street. These could be offered as three separate parcels to separate developers, reconfigured as two larger parcels, or as a single parcel for combined development by one developer. Two of the three blocks to the east in the area bounded by Glen Cheek Drive and New Street are shown as large single parcels; however, these parcels potentially could be subdivided into smaller parcels and the largest block could be divided into two blocks, each with multiple parcels. Since these areas are not likely to be developed within the early stages of the redevelopment program, decisions concerning parcelization need not be made at this time; however, the long-term development strategy must take into account the ability to reconfigure parcels as current leases expire.

Banana River Area -- This site consists of a single parcel, which will become the focus for a major hotel and meeting facility. There is no need to subdivide this parcel into multiple parcels, except possibly in response to developer proposals. For example, if the developer proposes a phased hotel development, it may be desirable to divide the parcel into two or more parcels that correspond with the development staging. Such parcelization should also ensure that each future parcel could be independently developed for a compatible hotel or other use, in the event that the initial hotel developer fails to expand the initial facility.

Ground Rent

The Port has recently engaged real estate appraisers familiar with the local market to estimate the ground rent for various property locations at the Port. These estimates were based upon market data for the area, with adjustments made for locational and other differences.

The resulting estimates provide a basis for establishing the minimum ground rent for the development sites; however, these estimates may understate the actual value for specific uses, particularly at higher densities that will occur in the Cove Phase II Area where parking will be off-site in common lots, resulting in higher development densities on many parcels. Typically, in more mature, developed markets such as Orlando where higher-density development is common, land values are based on the square footage of building developed or, in the case of hotels, on a value-per-room basis.

Therefore, an appropriate ground rent should be the greater of the value-per-square-foot of land, as estimated by the appraisers, or the value-per-square-foot of building proposed to be developed on a site, as determined by the appraisers. In the case of a phased development, an expansion of a development, or a change in use, it is common for the rent to be increased to account for the higher value use or increased density. It is also likely that the land value, and thus the ground rent, will increase over time as the Port area becomes attractive and competitive.

Port Canaveral Land Use Plan – Final Report 73 If development proposals are solicited, the RFP usually does not stipulate a price or a minimum price. Rather, the developers include a price proposal and the final selection process usually involves a price negotiation after review by an experienced appraiser to determine that the price is not below market norms. Thus, an RFP process often produces the highest price for a property, consistent with the proposed uses.

The leases could be structured as a fixed level annual payment based on the land or building area, as appropriate. The payments typically are adjusted for inflation. Ground rent may take various forms as an “annual fixed rent,” “annual fixed rent with inflation adjustments,” “a fixed rent plus a percentage rent,” “transaction rent,” etc. For example, a ground lease could be structured with a lower fixed payment and a percentage rent payment based upon the gross building rents or hotel revenues, in much the same manner as a percentage lease for a retail store. This would enable the Port to participate in the increasing value of the area, yet provide attractive returns to the developers and investors.

The land for the entertainment venue is expected to be leased on an absolute net basis, with the tenant paying for all improvements. The likely lease structure would be a base rent plus a percentage of ticket sales and concession revenues. If parking were off-site in a common area, there would be a separate additional charge to the developer for parking on an event basis. If the parking were on-site on land leased by the entertainment developer, there would not be an additional charge for parking.

Since there is expected to be minimal on-site parking, with most parking in Port-provided lots, each developer in the Cove Area will be relieved of the direct cost of parking construction. Thus, the developer should be expected to reimburse the Port for the cost of parking by means of an annual common area parking recovery fee. It is not anticipated that the developer would reimburse the Port for the land under the common parking, since that cost is indirectly included in the increased land value and ground rent for each development site. It is also expected that each developer would pay a common area parking maintenance fee, in much the same manner as a Common Area Maintenance (CAM) charge in a retail or mixed-use development. These parking fees would be based upon the net number of common parking spaces that are attributable to the development component, using the appropriate parking ratio for the use.

Implementation Process

There are a number of ways in which to identify developers to implement the development program. The most commonly used approach is for the public agency to solicit developer proposals via a request for proposal (RFP) method; however, some agencies solicit proposals using the real estate brokerage community or direct advertising.

It has been our experience that an RFP process is the best manner of attracting quality development and obtaining the highest value for the property. Where agencies directly solicit developers without a competitive RFP process or use brokers to solicit developers, the ground rents are typically established in advance based upon market comparables. Thus, the rents would be quoted as a minimum rent-per-square-foot of land, against a rent-per-square-foot of building. Typically in a bid process, there is competition in the pricing and as a result higher rents are obtained.

Port Canaveral Land Use Plan – Final Report 74 In both the RFP process and the solicitation by brokers or agencies, solicitation materials should be prepared in advance. Before preparing these materials, the Port should carefully define the objectives, strategy, and process. Unless the goals are clear and the process defined, the implementation is unlikely to be successful.

RFP Process

Typically, the objective is to obtain the best-qualified developer with the best proposal at the highest price. The RFP process invites qualified developers to submit development proposals for a single parcel or multiple parcels. The RFP stipulates the uses that would be permitted, the development/ design controls affecting the parcel(s), the lease terms, and the process by which the developer would be selected. Generally, an RFP will not stipulate the price, but will stipulate the critical lease terms, the types of lease payments that will be considered, such as an “annual fixed rent,” “a fixed rent plus a percentage rent,” “transaction rent,” etc. and whether the payments are to be subordinated or unsubordinated. The RFP will also stipulate the required submission materials, which usually include conceptual designs and site plans, identification of all proposed uses, the proposed tenants or operators (if known), as well as the qualifications and experience of the development team, evidence of ability to fund the development, etc.

Therefore, in a successful RFP the respondents are competing in terms of use, design, price, and capacity with the final decision made after serious negotiations on all factors. Typically in an RFP process, the Agency reserves the right to reject any or all proposals without cause, as well as the right to negotiate the final terms of the transaction with one or more of the developers.

It typically takes several months to prepare and circulate an RFP that will elicit responses from qualified developers. The RFP is as much a marketing piece as it is a solicitation for development proposals. The RFP must contain sufficient well-presented information to interest qualified developers to go to the effort and cost of formulating a development team and submitting a proposal to develop one or more sites.

Developer Solicitation and Implementation Process

In order to prepare an effective offering, whether by RFP or by direct/broker solicitation, the Port must identify the desired development program, development and design controls, parcelization, specific parcels to be offered, staging, developer criteria, basic terms of the lease, required contents of submissions, applicants to be targeted, and the criteria for selecting proposals. These elements are detailed in the following paragraphs.

Development Program – The development program will provide the framework for developers to evaluate the potentials of each parcel and the overall concept for the area’s redevelopment. This report recommends reuse programs for the Marina, Mullet Road/Scallop Drive, Cove Phase II, Columbia, and Banana River development areas. The plans indicate the proposed uses by general area and are intended to serve as a guide to the uses by general locations, but are not intended to specify the reuse program in detail by specific parcel in each area. In order to undertake an effective solicitation and implementation process the Port needs to adopt a development program for the entire area.

Port Canaveral Land Use Plan – Final Report 75 Development and Design Controls – The development and design controls which are yet to be formulated will establish the permitted uses, densities, coverage ratio, building height, and design standards for different uses within each of the five areas. The quality of these controls will be a major factor influencing the response of developers. Development controls that are too rigid may impede developers from responding; however, overly permissive controls will not offer sufficient protection for developers to risk the cost of high-quality development.

Parcels to be Offered -- As previously discussed, the parcelization must be appropriate to the uses desired. RFPs frequently allow bidders to make a proposal for one or more development parcels. It is often better to have a limited number of developers sequentially developing an area than to have a number of different developers attempting to develop an area simultaneously. The coordination of multiple developers and their separate programs and designs can often result in design and program conflicts that reduce the appeal of the resulting development and reduce the attractiveness of the area to subsequent developers. Conversely, relying on a single or limited number of developers could result in significant problems should the developer fail to successfully implement the proposed program.

Staging – To protect against the risk of a developer failing to proceed with development on multiple parcels on a timely basis, future parcels are frequently offered on a sequential basis, with future parcels released only upon the timely completion of earlier parcels in accordance with the approved disposition program. This approach enables major, well-funded developers to undertake a coordinated multi-phased development, while providing the Port with the ability to terminate a disposition agreement if the development either does not proceed in the agreed-upon timeframe or if the developer does not meet its commitments.

In a development as large as the Cove Area, there are likely to be a large number of parcels that will be developed over a number of years. Therefore, the staging of the disposition is critical. This is made somewhat more complicated in the Cove Area due to the existing ground leases. Thus, at the outset there needs to be a sequential disposition plan that takes into account the availability and location of disposition sites in an orderly progression. This may need to involve the negotiation with some existing tenants to reconfigure, swap, buy-out, or otherwise obtain agreement that they will sublease their leasehold interest for future development. Serious developers are not likely to respond to an RFP where the owner does not have direct control of the parcels being offered and land use control over the abutting and nearby parcels. While it is sometimes the case that a developer will be required to negotiate the acquisition of land not controlled by the issuer of the RFP, where developers are required to negotiate with the tenant to gain control of a property, the party controlling the out-parcel has joint control of the RFP and usually gets a disproportionate share of the value created.

Where the development involves an area as large as the Cove, the question arises as to whether to have a single developer for the entire area or multiple parcels with separate developers. Both approaches can work. The advantage of seeking a single developer for all or most of the area is that larger and more experienced development firms could be attracted to the process. The downsides are that where there is a mix of uses, such as hotels, retail, inns, and mixed-use commercial, there are few developers that have the capacity to develop all uses equally well. Moreover, there is a business risk in committing to a single entity should that entity become busy elsewhere or suffer a financial setback. The problem with having multiple developers, on the other hand, is the coordination of the disposition and development process; however, the advantages are that (1) there is not dependency on a single developer and (2) that developers

Port Canaveral Land Use Plan – Final Report 76 with appropriate experience are attracted to the process. Based upon our experience, we believe that it is wise to entertain proposals from both large and smaller, but qualified, developers for both individual parcels and multiple parcels that would be sequentially developed; however, a multiple-parcel disposition could be terminated at any time that the developer fails to meet the conditions or time frame for the development of any parcel.

Developer Criteria – In formulating the solicitation process, the developer qualification standards must be determined. Typically, developers must provide evidence of their experience and financial capacity to develop, lease, and operate the properties. The other members of the development team must likewise have credible experience in their fields relative to the type of property and, where appropriate, the local or regional area market. Evidence of marketability and ability to perform in a timely manner are also necessary. The ability to fund and operate the proposed development is likewise a critical element in the selection process. The selected developer must have sufficient capital (both equity and borrowed funds) to complete the development. Moreover, the successful operation of the development is critical, since the failure of an early phase will deter future development. The team’s experience and track record are critical criteria in insuring that the development proceeds in a timely and high quality manner.

Basic Terms of the Lease – The solicitation should specify the basic lease terms. First is the term of the lease, which must be sufficient to finance the development. Typically, the lease is not less than 45 to 65 years, depending upon the scale and cost of the improvements. Often, ground leases for major commercial buildings are 75 to 95 years in length to enable the financing of the development. In this case, smaller development parcels may require only a 45-year lease depending on the cost and payback of the improvements. Short-term ground leases under 45 years in duration are insufficient for high-quality development.

The lease will typically stipulate the types of lease payments that will be considered, such as an “annual fixed rent,” “a fixed-rent plus a percentage rent,” “transaction rent,” etc. and whether the payments are to be subordinated or unsubordinated.

Developers to be Solicited – In preparing an RFP, the agencies will typically target major local, regional, and national developers as may be suited to the scale, prominence, and desired quality of the project. These developers are identified by reviewing the major and successful developments that have characteristics that are comparable to that sought at Port Canaveral. Sources of developer contacts include: the Urban Land Institute; major development publications; national, state and local development associations; the American Planning Association; the National Association of Realtors; industry associations; and other sources.

RFP Timing – It takes several months to prepare a successful marketing package and solicit developers. From the time that a developer has received a solicitation, it takes 60 to 75 days for a developer to investigate the potential opportunity, formulate a developer team, formulate a response, and prepare a good quality submission. The review of developer submissions can also take one month or more, depending upon the number and quality of the submissions as well as the thoroughness of the proposal review. Negotiations with one or more developers can take one to three months, depending on the negotiating teams and their decision-making abilities.

Port Canaveral Land Use Plan – Final Report 77 Developers tend not to respond to solicitations between mid-November and mid-January. Thus, solicitations should reach developers between mid-January to early September to have the maximum impact and chance of response. Prior to submitting a solicitation, the developers should be contacted by phone to describe the proposal, gauge interest, and encourage the developers to seriously consider the solicitation.

Submission Review – The review of developer submissions should consider: the quality of the developer, its team, and the proposed development; the consistency of the proposed development program with the desired redevelopment program; the ability of the developer to perform in a high-quality manner and within the desired timeframe; the ability of the developer to raise the capital required for the project; the likelihood of the developer being successful; the amount and reliability of the revenues to be paid by the developer to the Port; and the overall quality and attractiveness of the proposed response to the development program.

Action Plan

The following summarizes the steps and illustrates the potential timing required to undertake a successful implementation process. The schedule is based upon using an RFP process, but would be similar if the Port were to utilize brokerage services or directly solicit developers without an RFP.

1. As noted above, it is first necessary to adopt the land use plan for the entire area. This is to be considered at the November 20, 2002 Canaveral Port Authority Commission meeting.

2. The next step is to formulate the land use and design controls for the entire area. In a large agency, this work is normally undertaken by staff, often with the assistance of experienced land use planning/urban design consultants. These controls should provide reasonable flexibility for developers to implement market-based, economically feasible projects that will act as catalysts for further development.

3. At the same time the development controls are being formulated, the Port should establish the disposition strategy and process. To the extent that the staff lacks the experience to formulate the approach and strategy, a qualified real estate consultant should be retained.

4. The infrastructure design should commence as soon as the plan is finalized and the construction of the early phases of the infrastructure should commence at the same time as the development solicitation commences.

5. Prepare disposition materials, whether for RFP or brokerage/Port-based disposition process.

6. Solicit developers directly and through targeted advertising. Developers are likely to require 60 days to respond, providing that they have had advance notice. During this period, the Port should follow up with developers to ensure timely responses.

7. Review submissions for compliance with development objectives, design controls, and financial objectives. This should be completed within 30 to 45 days depending upon the complexity and number of submissions

Port Canaveral Land Use Plan – Final Report 78 8. Select final two or three developers for subsequent negotiations relative to project composition, design, and lease terms.

9. Negotiate final disposition agreement and lease terms. Assuming that there are negotiations with two or three developers, this could take 45 to 60 days to finalize terms.

10. Designate developer(s) and execute development agreement and ground lease.

TASK RESPONSIBILITY TIME FRAME Adopt Land Use Plan Canaveral Port Authority Commissioners Nov. 20, 2002 Public Hearing Staff with assistance of a qualified land use Establish Development Controls January 2003 – February 2003 planning/urban design consultant Staff with assistance of an experienced real Formulate Disposition Strategy & Process January 2003 – February 2003 estate consultant Commence Infrastructure Improvement Staff with assistance of a qualified January 2003 – June 2003 Design and Construction engineering consultant Staff with assistance of an experienced real Prepare Disposition Materials February 2003 – March 2003 estate consultant/broker and planner. Staff with assistance of an experienced real Identify Prospective Developers March 2003 – April 2003 estate consultant/broker Staff with assistance of an experienced real Solicit Qualified Developers April 2003 – July 2003 estate consultant/broker Staff with assistance of a qualified land use Review Developer Submissions planning/urban design consultant and real August 2003 – September 2003 estate consultant Staff with assistance of a qualified land use Select Final Developers planning/urban design consultant and real September 2003 estate consultant Negotiate Final Agreement Designate Staff with assistance of a legal counsel, land use planning/urban design consultant, September 2003 – October 2003 Developer and real estate consultant Designate Developer Canaveral Port Authority Commissioners October 2003

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