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2010 Nashville Downtown Partnership Annual Report

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2010 Nashville Downtown Partnership Annual Report RE NEW Photo by: Metro Government of Nashville Gary Layda APRIL 29 MAY 3 JUNE 9 NASHVILLE DOWNTOWN PARTNERSHIP ANNUAL REPORT 20 10 NASHVILLE DOWNTOWN PARTNERSHIP 2010 BOARD OF DIRECTORS JANA JOUSTRA DAVIS THE HONORABLE THELMA HARPER MATTHEW C. MOORE BUTCH SPYRIDON OFFICERS HCA Ex Officio American Constructors, Inc. Nashville Convention and Visitors Bureau State Senator ROBERT R. CAMPBELL, JR. W. KIRBY DAVIS, JR. DONNA NICELY T. STEPHEN C. TAYLOR Chairman Chair, Retail Development AUBREY B. HARWELL, III Nashville Public Library Bass, Berry & Sims PLC Waller Lansden Dortch & Davis, LLP DZL Management Co., LLC Neal & Harwell, PLC JOHN F. PARKER TONY K. THOMPSON DONALD W. ABEL, JR. MARGARET O. DOLAN FRED RUSSELL HARWELL Chair, Business Development First Tennessee Bank Vice Chairman Ingram Industries Inc. Adams and Reese LLP Regions Morgan Keagan Trust Fifth Third Bank JAMES S. TURNER, JR. JOHN FLEMING WILLIAM HASTINGS ALEXIA POE MarketStreet Enterprises BETH FORTUNE Renaissance Nashville Hotel Hastings Architecture Associates, LLC Ex Officio Secretary Mayor’s Office of Economic THOMAS D. TURNER Vanderbilt University RICHARD FLETCHER THE HONORABLE MICHAEL F. JAMESON & Community Development Ex Officio 511 Group, Inc. Ex Officio Nashville Downtown Partnership BECKY HARRELL Metro Council, District 6 THE HONORABLE MARY PRUITT Treasurer LIBBY FUNKE Ex Officio ALAN VALENTINE Chair, Finance Committee Fringe Magazine SUE KENNEMER State Representative The Nashville Symphony KraftCPAs, PLLC FirstBank TONY GIARRATANA HUGH M. QUEENER JOHN VAN MOL GEORGE V. CRAWFORD, JR. Giarratana Development, LLC THE VERY REV. TIMOTHY KIMBROUGH Pinnacle Financial Partners DVL Public Relations & Advertising Immediate Past Chairman Christ Church Cathedral Gullett, Sanford, Robinson & Martin, PLLC THE HONORABLE ERICA GILMORE BRACKNEY J. REED RAY WATERS Ex Officio EDWARD LANG Gresham, Smith and Partners Hilton Nashville Downtown Metro Council, District 19 Nashville Predators DIRECTORS CHARLES ROBIN BETSY WILLIAMS WILLIAM GLAUS DR. FRANK LEWIS Robin Realty Co., LLC Ex Officio BILL BARKLEY The Bank of Nashville First Baptist Nashville Chair, The DISTRICT Chair, Residential Development PHIL RYAN City Development Company, LLC RONALD V. GOBBELL, FAIA ROBERT C. H. MATHEWS, III Metro Development & Housing Agency SALLY WILLIAMS Chairman, CBID Board Vice Chair, Sec’y-Treasurer, CBID Board Ryman Auditorium PRICE H. BELL, JR. Gobbell Hays Partners, Inc. The Mathews Company BRENDA SANDERSON DZL Management Co., LLC Chair, Public Space JOHN R. WINGO NATE J. GREENE ROBERT A. MCCABE, JR. Broadway Entertainment Frost Brown Todd LLC KENNETH BLACKBURN Colliers International | Nashville Chair, Resource Development AT&T Pinnacle Financial Partners RALPH SCHULZ JACK WOOD RONNY L. GREER Nashville Area Chamber of Commerce Chair, Access & Transportation MIKE BLOSSER Work & Greer, PC MARK MCNEELY Barge Waggoner Sumner & Cannon, Inc. Louisiana-Pacific Corporation McNeely Pigott & Fox Public Relations J. RONALD SCOTT JAMES H. BOND JOHN GUPTON JRS Investments Incorporated SHIRLEY ZEITLIN Central Parking System, Inc. Baker, Donelson, Bearman, Caldwell DEBORAH MERRELL Zeitlin & Company, Realtors & Berkowitz, PC SunTrust Bank GREG SLIGH C. ALLEN BRADLEY, SR. The Hermitage Hotel Nashville Electric Service a d y a L y r a G e l l i v h s a N f o t n e m n r e v o G o r t e Thomas D. Turner Crissy Cassetty Russell Payne M : President and CEO Retail Recruiter Vice President, y b o Sally E. Connelly Andrea Champion Operations t o h Executive Vice President Communications Director Erin Perry P Tamara Dickson Executive Assistant Vice President, Economic Development DOWNTOWN NASHVILLE ROLLS ON s the year 2010 began, downtown Nashville businesses Cumberland River showed its powerful strength as it flooded What did the flood of May, 2010, reveal about Nashville? expected ongoing economic challenges. What they downtown parks, streets, basements and parking lots. Water About downtown? When our agendas are drastically altered, Acould not expect or imagine was that the first few plants and power substations were put out of commission— we focus on our changed environment and find new ways to months would bring not one but two major crises involving and throughout the region, thousands of homes and do business. Desks and offices do not define a business. IT water! Before dawn on New Year’s Day, during a period of businesses were evacuated. The monumental tasks of rescue, staffs were resourceful in setting up emergency systems to exceptionally cold weather, a network of downtown water recovery and rebuilding began immediately—and continue. work offsite, staff meetings were held in coffee shops, and mains ruptured with a vengeance, flooding the streets of the mobile phones and social media kept everyone linked to the busy entertainment district near Broadway. In the hours and On an even larger scale, the overriding message became, rapidly changing conditions. The entrepreneurial spirit so days that followed, Metro Water Services, Mayor Karl Dean “Downtown Nashville is open for business—and the music characteristic of Nashville was never more apparent. and everyone involved displayed exceptional leadership and is still playing!” On May 7, flood-weary citizens streamed crisis management, with round-the-clock efforts to restore into Metro Public Square for a free concert by Focus, creativity, collaboration and compassion—the flood temporary water supplies to the buildings affected. As major The Nashville Symphony—confident in the resilience of showed that Nashvillians are rich in these resources. And water main replacement construction began, downtown their city. Day by day we celebrated the re-opening of these are the very resources that will make “downtown venues responded with creative strategies to counter the more businesses. Nashville the compelling urban center in the Southeast in perception that downtown was “closed” and to resume which to LIVE, WORK, PLAY and INVEST.” normal operations. Public and private sectors alike were focused on the immediate needs throughout the region. And individuals — Thomas D. Turner The next crisis began on the weekend of May 1, when Nashville responded with creative ways to help others—thinking President and CEO and many other regions of Tennessee experienced a devastating “outside the box” and doing what needed to be done. flood. In Nashville alone, damages exceeded $1 billion. The 3 WHY DOWNTOWN LIVING IS A GREAT OPTION BILL BARKLEY, Chair, Residential Development • For the fifth consecutive year, the Partnership’s 2010 Downtown Residential Survey found that “the urban experience” is the top element in these residents’ decision to continue living downtown. • Downtown Nashville’s residential properties rank high in “walkability.” Their favorable Walk Scores (which measure the number of standard consumer destinations within walking distance of home) average 94 (considered a “walker’s paradise”) in the downtown core and 88 overall. By contrast, Metropolitan Nashville’s average “walkability” score is 44, considered “car-dependent.” • The seventh annual LIVE IT UP! Downtown Home Tour exhibited renewed vitality in 2010, with both an evening City Lights Tour showcasing urban living in The Gulch and an afternoon tour of residential units from SoBro to North Capitol. Over 8,000 people have attended the LIVE IT UP! tours since 2004, with an economic impact of over $46 million in sales and leases. • Downtown residential sales increased significantly during the first six months of 2010, with a total of 137 closings (compared to 166 in all 12 months of 2009). Contributing factors in the increased sales include homebuyer tax credits, low interest rates and Nashville’s overall economic strength. • In 2010, downtown Nashville has a total of 5,155 residents and 3,713 residential units. Of the downtown residential inventory, 28% is rental, 66% condos and 6% single family residences. • With consistently high occupancy rates (95% in 2010) for downtown rental properties, demand remains strong. Demographic trends indicate that consumers in the future will be more likely to rent for a longer period of time. • Downtown Nashville has 44 residential condo properties, with a total of 2,664 units. Approximately 30% of these purchase units are in The Gulch, 29% in the downtown core, 20% in North Capitol and 18% in SoBro. • An analysis of the current number of downtown condos available for purchase and the average rate of sales annually indicates that the downtown inventory will be depleted in two years. Taking a residential project from planning and schematic stages to completion and delivery requires a minimum of three years. 4 LIVE NASHVILLE DOWNTOWN PARTNERSHIP EXPANDING DOWNTOWN RETAIL OFFERS MORE OPTIONS KIRBY DAVIS, Chair, Retail Development • The Partnership’s Retail Recruiter has made over 600 local and regional retailer visits since January, 2008. In 2010, repeat visits with top prospects for a downtown location are underway. During the first eight months of 2010, 200 prospect visits were made and specific downtown retail options have been presented to 30 of them. • The strong growth seen last year continues, with a total of 28 new retail businesses opened or announced between January and August, 2010. The total number of downtown retail openings in 2009 was 38. • At least 50% of the new 2010 downtown retailers offer shopping and 46% are food establishments. • New retailers in 2010 include downtown’s first wine market (Metropolitan Wine) and first organic grocery (Turnip Truck in The
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