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Draft Final Report Gloucester Harbor Economic Development Plan

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Draft Final Report Gloucester Harbor Economic Development Plan GLOUCESTER HARBOR ECONOMIC DEVELOPMENT PLAN DRAFT FINAL REPORT AUGUST 2010 PREPARED FOR: THE CITY OF GLOUCESTER SUBMITTED BY: MT. AUBURN ASSOCIATES, INC. VINE ASSOCIATES KARL F. SEIDMAN CONSULTING SERVICE TABLE OF CONTENTS Introduction ..................................................................................................................... 4 Findings ............................................................................................................................ 7 The Harbor Economy ..................................................................................................... 7 The Harbor Real Estate Market.................................................................................. 28 Public Infrastructure .................................................................................................... 45 Regulatory Environment ............................................................................................. 50 Downtown‐Harbor Connections................................................................................ 61 Organizational Capacity and Resources................................................................... 67 Recommendations......................................................................................................... 74 Introduction ................................................................................................................... 74 Goals................................................................................................................................ 74 Initiatives........................................................................................................................ 75 Implementation Oversight and Management....................................................... 102 2 TABLE OF CONTENTS: TABLES AND MAPS Maps: Economic Development Plan Study Area................................................................................................ 5 Waterfront Usage Plan Map A................................................................................................................. 33 Waterfront Usage Plan Map B ................................................................................................................. 34 Waterfront Usage Plan Map C................................................................................................................. 35 Waterfront Usage Plan Map D................................................................................................................. 36 Parcel Utilization Map .............................................................................................................................. 38 Development Opportunities Map........................................................................................................... 40 Downtown‐Harbor Connections, Opportunities, and Constraints Map........................................... 48 City Zoning Map ....................................................................................................................................... 51 Jurisdictional Areas Map.......................................................................................................................... 58 Downtown‐Harbor Existing Public Realm Map ................................................................................... 64 Downtown‐Harbor Connections, Opportunities, and Constraints Map........................................... 66 Proposed Harborwalk Map...................................................................................................................... 87 Downtown‐Harbor Future Public Realm Map...................................................................................... 88 Tables: Commercial Fisheries Landings by Live Weight: Gloucester 1989‐2009 ............................................ 8 Commercial Fishery Landings 2008 ‐ Major New England Ports......................................................... 9 Leisure and Hospitality Industry Wage & Salary Employment in Gloucester, 2008....................... 13 Trends in Leisure and Hospitality Industry Wage & Salary Employment, 2001‐2008 .................... 14 Employment Change in Selected Industries 2003‐2007, Gloucester & North Shore WIA............... 30 Land Area and Building Space by Use, Gloucester Designated Port Area ....................................... 32 Estimated Vacant and For Sale Building Space Gloucester DPA, Fall 2009 ...................................... 39 Chapter 91 Allowable Uses ...................................................................................................................... 55 Largest Categories of Ground Floor Businesses in Downtown Gloucester ...................................... 62 Summary of Funding Sources by Activity/Project Type...................................................................... 73 3 INTRODUCTION Gloucester Harbor has played a central role in Gloucester’s economic life and community identity since the city’s early settlement nearly four centuries ago. The commercial fishing industry has sustained families and fueled the city’s economy for generations while shaping its rich culture and traditions. Beginning in the 19th century, the allure of the working waterfront, with its wide array of maritime activities, colorful characters, and picturesque views, brought adventurous travelers and artists to the city and spawned an increasingly important visitor economy. And, as other communities have lost their traditional industries to the forces of economic change, the people of Gloucester have struggled to preserve their economic legacy with characteristic tenacity. Yet, it has become increasingly apparent over the last several decades that the scale of economic activity generated by traditional industries is not sufficient to sustain the harbor economy at healthy levels. In particular, the challenges faced by the commercial fishing industry have resulted in a decline in vessels and crews and the disappearance of many harbor businesses that provide the industry with supplies and services. Many harbor properties lay vacant, underutilized, and deteriorated because of a lack of demand for traditional maritime uses. A consensus appears to be emerging within the community that, while everything possible should be done to support and sustain traditional harbor industries, the community must also pursue new economic opportunities that will complement rather than supplant traditional industries and, at the same time, build a more vibrant and robust harbor economy that will create jobs and business opportunities for community residents, stimulate harbor property investment, and generate more tax revenue for local government. The objective of this report is to help the community achieve this vision. The report assesses the economic position of existing harbor industries and identifies emerging industries with growth potential that are well-suited to a harbor location. The recommendations in the report lay out specific strategies and implementation steps designed to help sustain traditional industries while broadening the harbor’s economic base with new industry development. Efforts to strengthen the harbor economy must address a complex set of factors, each of which is examined in the report. Industry conditions and trends. The extent to which traditional harbor industries can be retained and new industries attracted is influenced by broader regional and national economic forces, industry development trends, and Gloucester’s competitive position with respect to both existing and potential industries. In the case of the commercial fishing industry, federal fisheries regulation has also strongly influenced the industry’s current status and future prospects. 4 The real estate market. The harbor economy and real estate market are closely intertwined. On the demand side, the nature and scale of economic activity is what drives demand for property. On the supply side, property characteristics will influence the types of economic activities that can be drawn to the harbor. Public infrastructure. The condition of public infrastructure in the harbor area can significantly influence the economic environment. Investments in public infrastructure can serve to catalyze private investments. The regulatory environment. Land use and environmental regulation strongly influence the types of development that can occur in Gloucester Harbor. The regulatory environment for development within the harbor area is very complex. Downtown-harbor connections. The harbor and downtown are closely linked economically. The more robust the harbor economy, the more patronage downtown merchants are likely to enjoy. And, the more vibrant and attractive the downtown, the more likely both the downtown and the harbor are to attract local and more distant visitors. Economic development capacity and resources. Successful implementation of harbor and downtown economic development will require organizational leadership and participation in these efforts as well as sufficient financial resources from a variety of sources. The recommendations at the conclusion of the report address each of these key factors influencing harbor development. The study area for the report consists of the Designated Port Area within the harbor (a zone established by the State to preserve marine industrial uses) and the Main Street/downtown area. The study area is shown on the map below. 5 Preparation of the report involved
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