The Manchester Neighborhood Plan Introduction & Methodology In the summer of 2009, the Manchester Citizens Corporation (MCC) Board of Directors partnered with Pittsburgh History & Landmarks Foundation (PHLF) to commission a neighborhood planning process. The decision to undertake a planning process reflected a number of issues including the recognition that MCC’s existing planning documents were out of date with respect to reflecting the existing conditions in the neighborhood, and the desire to respond to increasing demolitions in Manchester in a proactive manner. MCC felt that the elements of a neighborhood wide strategy were embodied in the organization’s current development projects, but needed to be enhanced and articulated as part of a neighborhood planning process. MCC and PHLF desired to create a plan that is a dynamic rather than a static document. As a result, the planning process focused on establishing strategic principles and guidelines that would not change, even as the condition of individual parcels in the neighborhood changed. Although the Plan includes some parcel-specific recommendations, the plan is designed to focus more on overarching principles and guidelines. The Plan’s focus is on vacant and abandoned property. This is a critical issue as identified by Manchester residents and it is supported by data that indicate Manchester has a significant number of vacant properties. Vacant property poses a threat to public safety and the integrity of Manchester’s historic district. Dealing with the issue of vacant property in a systematic and well thought out manner is an objective of this Plan. The goals of this Plan relate to improving the physical and market conditions in the Manchester. If the Plan is successful, the measurable results will include: fewer vacant properties, greater private investment in renovations, and higher property values. With a stronger real estate market, Manchester will have fewer vacant properties and be a more desirable place to live for existing and potential new residents. MCC created a Steering Committee to oversee the implementation of the planning process in the Summer of 2009. The Urban Redevelopment Authority committed $7,000 towards the planning process and was specifically interested in having the Plan address properties in the Manchester Renaissance portfolio. PHLF committed staff time and raised a $100,000 grant from Richard Mellon Scaife that will go towards future activities in Manchester. In order to establish baseline data, MCC relied upon existing data from the 2000 Census and the Pittsburgh Community and Neighborhood Information Systems (PNCIS). The Department of City Planning released an online data center known as “SNAP” in early 2010, and this data was added to the plan. City Planning expects to update this data periodically, and the availability of this data will be extremely helpful in updating the plan going forward. 1 PHLF performed a preliminary market analysis using data available through the West Penn MLS and RealStats databases. This analysis included looking at data from 1998 through October of 2008 in order to determine trends and reveal areas of the neighborhood that included specific areas of market strength or weakness. Members of the Steering Committee and other volunteers worked to identify vacant structures in Manchester. Many of these volunteers have done this work on previous studies and have been trained by CTAC. Other datasets such as PNCIS and the City’s GIS system were used to cross reference vacant and condemned properties. The City’s Planning Department helped map this information. The Steering Committee then worked through the process of applying the guidelines developed in the Plan to prioritize individual parcels. PHLF provided needed expertise in estimating renovation costs. Tom Keffer, PHLF’s construction manager with more than 20 years experience in residential renovations, was able to develop renovation cost estimates for properties. Conceptual project budgets were developed to provide some framework for estimating the sources of funds that will need to be raised in the implementation phase. These conceptual budgets were based on financing and costs that are typical in URA funded projects. Executive Summary Overview This planning process was designed to replace the previous Manchester Neighborhood Transformation Initiative (MNTI), which was completed four years earlier. The resulting plan draws heavily from MCC’s historic preservation roots and builds on the $20 million worth of development that is currently underway in Manchester. Existing Conditions Manchester’s existing conditions represent a market that, while improving, still suffers from a significant number of vacant and deteriorated properties. 19.6% of the housing stock is vacant1 84 properties have been condemned by the City2 55 units have been demolished between 2004 and 20083 Market Summary In the latter part of 2008 and continuing through 2009, the financial markets began to experience unusual and significant changes that resulted in less access to credit, particularly mortgage financing. Obtaining financing to purchase a home is more difficult than it was in prior years. 1 2000 Census 2 Response from City of Pittsburgh to MCC request under Freedom of Information Act 3 Ibid 3 2 Mortgage lenders now require higher credit scores and larger down payments, thus creating a smaller number of eligible borrowers and homeowners. This situation is a concern to MCC as private capital is necessary to fund improvements to vacant and deteriorated properties in Manchester. Obtaining private financing to purchase and rehabilitate Manchester’s vacant properties has become even more difficult as many parcels have tax liens or other judgments clouding the title. A one-to-two-year factor should be added to all projects attempting to structure public/private financing for housing to allow for clearing existing liens and judgments. Before the current financial crisis, there was evidence that Manchester’s private housing market was strengthening, based on the statistical information below, which was taken from an analysis of home sales data over the last ten years through the West Penn MLS and RealStats databases: Manchester’s housing market varies significantly from street to street and block to block. Areas of market strength include: Page Street, West North Avenue, Sheffield Street, and Liverpool Street. The weakest market segments are located on Adams Street, Columbus Avenue, and Nixon Street. Home sale prices in Manchester have appreciated faster than other Northside neighborhoods (Fineview, Perry Hilltop, Spring Garden) and slower than two other neighborhoods (Allegheny West, Central Northside). However, Manchester’s home sales prices have kept pace with the City’s averages over the past ten years. The City’s average home price measured in constant (2007) dollars is $100,000. Revitalization Principles These strategic revitalization principles will guide current and future development efforts and assist with prioritizing among numerous opportunities: Prioritize Projects of Scale and Impact Prioritize Key Corridors and Corners Connect Current Development Along Columbus to Areas of Existing Market Strength Criteria to Evaluate and Prioritize Restoration of Existing Properties These principles seek to reconcile preservation interests, public safety, and market realities. MCC and its partners will evaluate strategic importance based on the following general guidelines: Architectural Integrity Cost vs. Market Value (i.e. prioritize structures with smaller funding gaps, allowing for more development) Marketability/Ability to identify purchasers for redeveloped real estate Location along key corridors or corners 3 Cultural significance (i.e. properties that have significance based on who lived there or events that occurred) Potential impact of demolition on adjacent properties (i.e., is it a party-wall structure, what would the potential impact on the streetscape be) Programmatic Recommendations Through MCC’s strategic planning process, MCC and PHLF developed a series of recommendations regarding vacant buildings and land, which are designed to leverage public/private resources. Implement Manchester’s $20 million4 Development Strategy through the Manchester Renaissance and Columbus Square5 housing programs Publish a Manchester Declaration of Community Wealth Statement and revisit it annually Hold future versions of Manchester’s Great House Sale Conduct a House Tour of Vacant Buildings and implement a $1 City House Sale for vacant structures Extend the Manchester Renaissance Housing Program to other vacant buildings located throughout Manchester Capitalize a Revolving Loan Fund for Preservation Activities Utilize the Recently Enacted Pennsylvania Conservatorship Law for Manchester’s Strategic Planning Initiatives Utilize the City’s Land Reserve Program to Assemble Publicly Owned and Tax Delinquent Property Document, Warehouse, and Re-use Architectural Elements Retrieved from Demolished Structures Maintain a Viable Manchester Local Historic Review Committee (LRC) 4 The Columbus Square development and associated infrastructure improvements totals $15 million; the rehabilitation of Phase I and Phase II of the Manchester Renaissance Portfolio will total $5 million. 5 Columbus Square is the name given to the development project on the former American Electric site. 4 Overview The Manchester community continues to struggle with problems associated with vacant and abandoned