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New Haven CBD Retail Strategic Plan

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New Haven CBD Retail Strategic Plan l l New Haven CBD Retail Strategic Plan Prepared for The Town Green Special Services District Board December 17, 1999 DRAFT: Confidential Draft Final Report i!J ERNST & YOUNG LLP Not for Distribution New Haven CBD Retail Strategic Plan Influencing Development Outcomes The City of New Haven has a superb historic architectural and cultural framework in place to create a vibrant and active Central Business District (CBD). Key elements in the revitalization of New Haven's CBD were put in place over the last three decades -- which include the Coliseum, the Chapel Square Mall and other cultural and educational attractions. These investments have led to increased private investment in existing structures, along with the construction of selected new residential and renovated hotel properties. Specialty Retail was also included in this revitalization. New Haven as a Unique Destination Market cycle reversals have slowed the pace of that continuing revitalization, which now requires consideration of a Strategic Plan for the CBD. This Plan establishes a framework for integrating a rational and balanced view of potential additional retail development, occupying vacant shopfronts, increasing public I cultural attractors and workforce amenities, and constructing new residential projects. We believe New Haven's CBD must be broadly perceived as a unique destination -- vibrant and pedestrian friendly -­ with unique supporting choices in food-service, retail, and cultural and educational offerings. Retail as Strategic Amenity Retail is seen as a key element of most urban revitalization plans -- and retail will be seen as even more strategic in the future development of New Haven's CBD. A vibrant CBD retail core certainly has strategic value-- as retail encourages pedestrian density, and that density, combined with new CBD residential options, will increase security advantages and the perception of downtown New Haven as a safe, secure environment. Increased weekend and evening activities in the CBD will also prompt positive perceptions of the city's well-being. Retail is also a powerful workforce amenity. Diverse offerings which are concentrated in the CBD plan can distinguish downtown New Haven from large scale suburban shopping complexes with their vast parking structures and standardized experiences. Retail will also have an increasingly Strategic Value in retaining the existing workforce by resisting erosion due to expanding suburban office developments. 1 DRAFT- Confidential Draft Final Report. Not to be distributed. ill ERNST & YOUNG LLP \ New Haven CBD Retail Strategic Plan New Haven's CBD is at a crucial transition point-- with traditional Dept Store Retailing fully evaporated, and an adjacent Three-anchor Regional Mall in near-term development. The Traditional Function of the city has changed -- and the immediate strategic question is - how can New Haven best capitalize on its inherent strengths, and can a concept-driven, well-executed Strategic Plan capture market support from new sources--- including the New Galleria at Long Wharf. Strengths Weaknesses • Building stock with outstanding architectural and • Lack of defined re-use concepts and market historic quality recognition • Concentrated CBD Workforce • Underspent CBD I Regional Residents retail • Strong consumers in Yale University Students & potential due to limited offerings Faculty • Diffuse CBD focus with adequate retail clusters • Drawing power of University Events nearby campus • " Experience" value -- of cultural offerings & • Latent market expansion requires deliberate architectural settings intervention • Opposed to typical Regional Mall Merchandising, • Lacking Plan /Implementation to augment and Niches exist -- in Lifestyle Retail expand the Retail experience • Lacking plan to capture Urban Entertainment I Big Box I Lifestyle I Food I Crafts potentials 2 DRAFT- Confidential Draft Final Report. Not to be distributed. ill ERNST & YOUNG LLP New Haven CBD Retail Strategic Plan Eight Downtown Retail Zones Downtown New Haven has Eight distinct Retail Zones, each of which enjoys a recognizable identity in terms of major uses, pedestrian and vehicular access, and architectural features. The most important consideration of this analysis is to focus efforts within these zones, not as self contained areas, but as interconnecting "Clusters" of retail uses. I '(} I Lower Chapel Street -- Value Oriented Retail Crown St. Corridor -- Restaurants & Clubs ~ • Existing Partial two- sided retail • Older buildings with • Shubert and Palace are • Several new site possibilities inc I MXD • Shartenberg site development surface/street parking strong Theater destinations behind Palace potential • Vacancies at Ninth Square • " Front Door" to Medical • Potential to strengthen Upper Chapel • New Shoreline Commuter Train interface School and very important Street station planned Grand Central site • Strong 2-sided potential I :;. .I Chapel Square Mall -- Interim Retail Broadway Corridor -- Specialty Retail ~ •1 00% CBD location • Served by existing Temple • Well-executed Retail/ • Limited expansion • Omni/Conf/ Synergy Street Garage U Specialty Focus possibilities • Large Retail footprint potential • Yale Co-op is partial student • Caters to Yale population • Two-sided only at • Crown St. visibility draw with uncertain future intersection • Large office bldg and Long Wharf • Existing York Sq Cinema is Theater potential at Malley's site narrowly_ focused I fi} .I Upper Chapel -- Single-Sided Specialty Retail I rl I Office District -- Chapel Sq. to Upper Church ~ • Existing Specialty Retail Base • Arts/Theater concentration 1,.....1 •Concentrated Office • Corporate leasing potential for • Potential Retail synergy with • MXD projects possible workforce SNETCo Bldg Crown St. • Office expansion sites • Large mid-block parking garage unclear -- except on lower possibility Church St 9th Square -- Neighborhood Service Retail & Restaurants 1 , -~ 1 Whitney Grove-- Two Sided Service & Specialty Retail • Potential capture of • Opportunity to increase two- ~ • Neighborhood Arts Cluster • Culture, Art I Office I Residential uses Coliseum population sided retail • Music School are well-executed mixed-used • Artist Housing project good • Crown St extension has • Office cluster patterns stabilizer major role for Retail/ Restaurant access 3 DRAFT- Confidential Draft Final Report. Not to be distributed. ill ERNST & YOUNG LLP - } t New Haven CBD Retail Strategic Plan Downtown Retail To implement change in downtown New Haven, and to effect a transformation of the existing streetscapes into Mixed­ Use and Retail developments - - including new loft offices, residential entertainment and specialty retail, broadened food-service choices, and cultural attractions- - will require attention to selected Critical Success Factors as follows: r .I Maximize Retail Penetration of Existing 1 I Encourage Mixed Use I Demograehic Market Sueeort I • Require Retail under Residential • Better Serve the Downtown Workforce • Test Loft Offices with service Retail • Get Fair Share of Suburban Residents • Explore Entertainment/Retail Destination • Increase Penetration and Capitalize on Prototype at Chapel Square Mall Tourist/Visitor Market • Establish " Clusters" of In-Fill Retail categories I lmerove Regional Drawing Power by Creating Address Constraints -- Available Sites, ·,~ 1 New Sueeort I I Access & Parking Infrastructure, Security • Increase Visitor and Family Attractions • Limited Number of Large Footprint with Heritage and Cultural emphasis Development Sites • Increase Residential and Workforce • Actual vs. Perceived Parking Populations with residential development Demand & Supply • Search for Cross-Income Concepts (Farmers • Security, Street Lighting, Way Finding Market, Crafts Bazaar Auction Hall) .., Develoe Seecific Site Strategies ) I ~, I I I Endorse Public/Private Partnering • Respond to the " 8 Downtown Districts" • Create Common Planning Objectives • Target In-Fill Zones • Anticipate need for Developer and Tenant • Identify Potential Full-Block Retail Sites Incentives • Target Live/Work Zones • Establish Retail Outreach with • Concentrate Office & Conference Core Coordinated New Haven Promotion 5 DRAFT- Confidential Draft Final Report. Not to be distributed. i!J ERNST & YOUNG LLP ) ) l \ \ t ~ New Haven CBD Retail Strategic Plan Analysis of Selected Zip Codes • An analysis of certain zip codes selected for effective drive time and adjacency to New Haven would exhibit much different characteristics in number of households, median age and, most importantly, median household incomes than a simple radius capture of the New Haven MSA. These targeted market segments could be attracted to a downtown themed specialty retail "district". The notable differences between this selected group of zip codes include: 0 Median household income $50,249 (vs. $40,553 in New Haven MSA) -- 24% higher 0 852,748 population (vs. 791 ,4000 in New Haven MSA) --8% larger 0 367,109 households (vs. 301 ,755 in New Haven MSA) --22% larger • The following chart compares several demographic markets: .. al'Mile-Radlus Qly;.of ~A New Hawn NewHa~n , ~w; Jtilven ~ Le,cteq,2lpJ~:>QQ~ Population1 127,327 791 ,400 1,825,194 852,748 Households1 48,178 al1,755 691,454 ~. 109 Median Household lncome1 $27,<m $40,553 $45,882 $50,249 GAFO Retail Spending per Consumer tt-l per Anm•rt $4,882 $5,640 $5,912 $6,253 Total GAFO Retail Spending per Annum3 $131,960,400 $228,718,920 $2,295,581,162 $4, 087~876,_()48 .. 1 Source: CACIMa rke ting S ys te ms , lnc . 2 S o urc e:
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