AN ADVISORY SERVICES PANEL REPORT

Galveston Texas

Urban Land Institute www.uli.org 1025 Thomas Jefferson Street, N.W. Printed on recycled paper. Suite 500 West Washington, D.C. 20007-5201 Galveston Texas

Building the Future

May 31–June 5, 2009 An Advisory Services Panel Report

Urban Land Institute 1025 Thomas Jefferson Street, N.W. Suite 500 West Washington, D.C. 20007-5201 About the Urban Land Institute

he mission of the Urban Land Institute is Established in 1936, the Institute today has more to provide leadership in the responsible than 32,000 members worldwide, representing use of land and in creating and sustaining the entire spectrum of the land use and develop­ T thriving communities worldwide. ULI is ment disciplines. Professionals represented committed to include developers, builders, property own­ers, investors, architects, public officials, plan­­ners, • Bringing together leaders from across the real estate brokers, appraisers, attorneys, engi- fields of real estate and land use policy to neers, financiers, academics, students, and exchange best practices and serve community librarians. needs; ULI relies heavily on the experience of its • Fostering collaboration within and beyond members. It is through member involvement ULI’s membership through mentoring, and information resources that ULI has dialogue, and problem solving; been able to set standards of excellence in • Exploring issues of urbanization, conservation, ­­de­velopment prac­­tice. The Institute has long regeneration, land use, capital formation, and been recognized as one of the world’s most sustainable development; respected and widely quoted sources of objec­ tive information on urban planning, growth, • Advancing land use policies and design and development. practices that respect the uniqueness of both built and natural environments;

• Sharing knowledge through education, applied research, publishing, and electronic media; and

• Sustaining a diverse global network of local practice and advisory efforts that address current and future challenges.

©2009 by the Urban Land Institute 1025 Thomas Jefferson Street, N.W. Suite 500 West Washington, D.C. 20007-5201

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Cover photo by city of Galveston

2 An Advisory Services Panel Report About ULI Advisory Services

he goal of ULI’s Advisory Services Pro­ stakeholders in the project under consideration, gram is to bring the finest expertise in participants in ULI’s five-day panel assignments the real estate field to bear on complex are able to make accurate assessments of a spon­ T land use planning and development sor’s issues and to provide recommendations in a projects, programs, and policies. Since 1947, compressed amount of time. this program has assembled well over 400 ULI–member teams to help sponsors find A major strength of the program is ULI’s unique creative, practical solutions for ­issues such as ability to draw on the knowledge and expertise downtown redevelopment, land management of its members, including land developers and strategies, evaluation of development potential, owners, public officials, academics, representa­ growth management, community revitaliza­ tives of financial institutions, and others. In tion, brownfields redevelopment, military base fulfillment of the mission of the Urban Land reuse, provision of low-cost and affordable Institute, this Advisory Services panel report is housing, and asset management strategies, intended to pro­vide objective advice that will among other matters. A wide variety of public, promote the re­spon­­­sible use of land to enhance private, and nonprofit organizations have the environment. contracted for ULI’s Advisory Services. ULI Program Staff Each panel team is composed of highly qualified professionals who volunteer their time to ULI. Marta V. Goldsmith They are chosen for their knowledge of the panel Senior Vice President, topic and screened to ensure their objectivity. Community/Education Provost ULI’s interdisciplinary panel teams provide Thomas W. Eitler a holistic look at development problems. A Vice President, Advisory Services re­spected ULI member who has previous panel experience chairs each panel. Matthew Rader Manager, Advisory Services The agenda for a five-day panel assignment is Caroline Dietrich in­tensive. It includes an in-depth briefing day Panel Associate, Advisory Services composed of a tour of the site and meetings with spon­­­sor representatives; a day of hour-long Gwen McCall interviews of typically 50 to 75 key community Senior Administrative Manager, Community representatives; and two days of formulating James A. Mulligan recommendations. Long nights of discussion Managing Editor precede the panel’s conclusions. On the final Kimberley Todd day on site, the panel makes an oral presentation Manuscript Editor of its findings and conclusions to the sponsor. A written re­port is pre­pared and published. Betsy VanBuskirk Creative Director Because the sponsoring entities are responsible for significant preparation before the panel’s vis­ Susan S. Teachey, ON-Q Design, Inc. it, including sending extensive briefing materials Desktop Publishing Specialist/Graphics to each member and arranging for the panel to meet with key local community members and

Galveston, Texas, May 31–June 5, 2009 3 Acknowledgments

he Urban Land Institute thanks Mayor necessary financial support to convene the Lyda Ann Thomas, City Manager Steve panel at no expense to the city of Galveston. LeBlanc, the city council, and all city Thanks also go to Ann Taylor, Reid Wilson, and T staff for inviting an Advisory Services Gary Altergott from ULI Houston for providing panel to participate in Galveston’s recovery background research and logistics leadership; from Hurricane Ike. As in other disaster-hit Lori Schwarz and Wendy O’Donohoe from the areas, ULI seeks to apply its members’ abilities to city of Galveston; Betty Massey from the Long- help create resilient, sustainable communities for Term Community Recovery Committee; and all the future. the Galvestonians who were interviewed by the panel and shared their thoughts on the city’s The panel extends special thanks to the ULI future opportunities. Foundation and its donors for providing the

4 An Advisory Services Panel Report Contents

ULI Panel and Project Staff 6

Foreword: The Panel’s Assignment 7

Market Potential 10

Planning and Design 13

Development Strategies 21

Implementation 26

Conclusion 29

About the Panel 30

Galveston, Texas, May 31–June 5, 2009 5 ULI Panel and Project Staff

Panel Chair James Lima Partner Smedes York HR&A Advisors President New York, New York York Properties, Inc. Raleigh, North Carolina Tom Murphy Senior Resident Fellow, ULI/Klingbeil Family Chair for Urban Development Urban Land Institute Panel Members Washington, D.C.

Marshall A. Anderson Sue Southon Partner Principal Anderson Nikolich Design Initiative, LLP Strategic Planning Services Birmingham, Alabama Bloomfield Hills, Michigan Agnes Artemel ULI Project Staff President Artemel & Associates, Inc. Matthew P. Rader Alexandria, Virginia Manager, Advisory Services

Jana Freedman Caroline Dietrich Executive Vice President Panel Associate, Advisory Services Oceancrest Properties, LLC Portland, Oregon Drew Sanderford Intern, University of Virginia Mossik Hacobian President Urban Edge Boston, Massachusetts

John Knott President The Noisette Company, LLC North Charleston, South Carolina

6 An Advisory Services Panel Report Taos Texas Newton Beaver Harper Graves Woods Grant Ottawa Kay Nowata Howell Butler Calloway Alfalfa Craig Stone Hickman Barry Oregon Ripley New Madrid Clarksville Robertson Washington Taney Ozark Fulton Stewart Montgomery Union McDonald Fulton Osage Cheatham Dallam Lake Obion Henry Sherman Woodward Houston Davidson Hansford Ochiltree Garfield Noble Delaware Fulton Clay Weakley Los Alamos Mora Lipscomb Randolph Pemiscot Dickson Rogers Baxter Sandoval Ellis Major Pawnee Mayes Benton Carroll Boone Benton Sandoval Marion Harding Greene Dunklin Humphreys Sharp Dyer Lawrence Ohio R. Gibson Carroll Williamson Payne Tulsa Izard Hartley Dewey Broken Arrow Madison Moore O k l a h o m a Washington Hickman Santa Fe Hutchinson Roberts Kingfisher Wagoner Springfield 40 Hemphill Fayetteville Newton Searcy Jonesboro Mississippi Blaine Logan Creek Cherokee Adair Craighead Crockett Stone Lauderdale Maury San Miguel Roger Mills Perry Rio Rancho Independence JacksonMadison Henderson Lincoln Haywood Lewis Custer Edmond A r k a n s a s Decatur Poinsett Clarksville Oldham Okmulgee Van Buren Jackson Tipton Bernalillo Potter Carson Canadian Oklahoma Muskogee Crawford Johnson Cleburne Chester Gray Wheeler Midwest City Okfuskee Franklin 40 Sequoyah Pope Wayne Lawrence Giles Hardin 40 Quay Beckham Washita Pottawatomie McIntosh Cross Hardeman McNairy Santa Fe Broken Arrow Conway White Crittenden Shelby Fayette Cleveland Oklahoma Tulsa Fort Smith Valencia Caddo FayettevilleLogan Jonesboro Deaf Smith Seminole Haskell Sebastian Woodruff Guadalupe Randall ArmstrongRio Rancho Norman Faulkner Jackson 40 Torrance Donley Collingsworth Edmond Saint Francis Lauderdale Grady Hughes ArkansasYell Alcorn Tishomingo Greer McClain Benton Limestone Albuquerque PittsburgMidwest City Le Flore Perry Desoto Tippah Curry Kiowa Amarillo Harmon 44 Oklahoma City Latimer Scott Marshall Fort Smith North Little Rock Lonoke PrairieMemphis Lee Colbert N e w M e x i c o Pulaski Parmer Pontotoc Norman Tate Prentiss DecaturLawrence Debaca Castro Swisher Garvin Monroe Briscoe Jackson LawtonComanche Tunica Hall Childress Saline Franklin Coal Garland Union Socorro Montgomery North Little Rock New Mexico Stephens Phillips Decatur Lawton Lafayette Polk Panola Lee Itawamba Hardeman Tillman Murray Atoka Pushmataha Little Rock Roosevelt 35 Pontotoc Winston Cotton Johnston Hot Spring Bailey Carter PineGrant Bluff PineJefferson BluffArkansas Marion 25 Lamb Hale Coahoma Quitman Floyd Motley Wilbarger Lincoln Cottle Mississippi R. Pike Mississippi R. Yalobusha Jefferson Wichita Falls Howard 55 Foard Wichita McCurtain Clark Calhoun Chickasaw Marshall Choctaw Lincoln Tallahatchie Monroe Wichita Falls Lubbock Love Sevier Dallas Birmingham Lamar Walker Bryan Cleveland Fayette Desha Bolivar Cochran Clay Grenada Hockley Clay Lubbock Crosby Dickens King Montague Webster Knox Baylor Grayson Denton Hempstead Nevada SunflowerTuscaloosa Chaves Archer Lamar Little River Sierra Cooke Fannin Red River Ouachita Drew Leflore Montgomery Plano Calhoun Oktibbeha Lowndes Carroll Tuscaloosa Bowie Mississippi Las Cruces Foreword: The Panel’s Assignment Bradley Choctaw Pickens Yoakum Terry Delta Lynn Chicot Garza Kent Fort Worth Dallas Miller Stonewall Jack Abilene Shreveport Monroe Tuscaloosa Bibb Haskell Throckmorton WiseDenton Columbia Ashley Washington Winston Noxubee Young Denton Collin Union Holmes El Paso Hopkins Franklin Titus Longview Bossier City Humphreys Attala Otero Hunt Morris Tyler Cass Lea Midland 30 Lafayette Jackson Greene Gaines Carrollton AlabamaMississippi Dona Ana Dawson Odessa Camp Sharkey Hale Borden Scurry Rockwall Neshoba Kemper Las Cruces Fisher Rains Yazoo Leake Eddy Jones Shackelford Irving Claiborne Union Perry Stephensn SeptemberPalo Pinto 8, 1900,Parker the cityTarrant of GalvestonDallasGarland Wood Marion Location map. Morehouse San Angelo Waco Upshur West Carroll Sumter was hit by the deadliest natural disaster Issaquena Madison Kaufman Bossier Webster Lincoln East Carroll Dallas Harrison Monroe Lauderdale Andrews in United States history. Known simply Van Zandt Ouachita Scott Newton Martin Killeen Howard 20 Gregg Caddo Richland Warren Marengo Mitchell Nolan Hood 20 Madison Rankin Taylor as the 1900 Storm, the hurricane brought Smith Bienville Hinds 20 Callahan OEastland Johnson Longview Bossier City Jackson El Paso Ellis TEXAS 45 winds of 140 mphErath and storm surges of 15 feet Mobile Wilcox Somervell TylerBryan LOUISIANA Madison Midland Henderson Panola Franklin Clarke Choctaw that killed 20 percent of Galveston’s residents Caldwell Jasper Loving Winkler Round Rock College StationRusk De Soto Baton Rouge Smith Ector Chihuahua Navarro Red River Claiborne Midland Glasscock Tensas Gulfport A l a b a m a Coke and destroyedComanche 36,000 buildings. GalvestonHill re­ Austin Lafayette Simpson Odessa Sterling Lake Charles Winn Copiah Runnels bounded from this disasterBosque by rebuilding its in­ Beaumont Coleman Brown Catahoula Anderson 49 Kenner Jefferson Wayne Clarke 16 frastructure, formingHamilton a home-rule municipality, Cherokee Shelby Natchitoches New Orleans Jones Monroe Hudspeth Ward Covington Culberson Freestone Houston Baytown Port Arthur and growing its population base to approximately La Salle Lawrence Reeves Sugar LandNacogdoches Sabine Grant Lincoln Crane Upton San Angelo Rio Grande McLennan Pasadena Jefferson Davis Washington Reagan Tom Green 60,000Mills residents. Limestone Adams Franklin 10 Irion T eConcho x a s Coryell San Antonio San Augustine Sabine Greene Galveston Concordia Lamar McCulloch Galveston is located along the Gulf of Mexico, Leon Marion Forrest Perry Chihuahua San Saba Lampasas Falls Houston Angelina Pike Walthall 50 miles south of Houston. The island is now Rapides Wilkinson Amite Killeen Victoria 55 Trinity Vernon Avoyelles Jeff Davis home to employers such as theBell University of West Feliciana Escambia Schleicher Robertson 59 George Menard L o u i s i a n a West Feliciana Saint Helena Pecos Texas Medical Branch (UTMB), American Madison Baldwin Crockett Coahuila Washington Stone Mobile Jasper 45 35 Newton Pearl River 45 10 National Insurance Company, and TexasMilam A&M GulfPolk Tylerof East Feliciana Mason Llano Burnet Walker Evangeline University at Galveston. Hospitality, food Bryan Tangipahoa Jackson Williamson Brazos Mexico Beauregard Allen Pointe CoupeeEast Baton Rouge Sutton Harrison 155˚ Kimble service, and other tourism-related industries Saint Landry Burleson Grimes West Baton Rouge Saint Tammany Hancock C h i h u a h u a Round Rock College StationCorpus ChristiSan Jacinto Livingston 10 22˚ provide other major sources of employment Regional map. Terrell 57 Jefferson Davis Gillespie Travis Laredo Gulfport Presidio and serve Galveston’s 5 million annualLee visitors. MONTGOMERY HARDIN Saint Martin Blanco Calcasieu Acadia Washington Iberville Ascension Saint John LIBERTY Lafayette the Baptist Orleans Val Verde Kerr Bastrop Brewster After more than a centuryHays of rebuilding85 and sta- Saint James Jefferson Edwards 49 ORANGE 45 Kendall WALLER Iberia Assumption Saint Charles Real bilization, Galveston was hit by another catastro- Kenner Jefferson 16 21˚ Fayette AUSTIN HARRIS 10 Saint Bernard Comal Caldwell Vermilion phic30 natural disaster. On SeptemberNuevo 13, 2008, Houston Cameron Saint Martin Bandera JEFFERSON Hurricane Ike made landfallLeon on Galveston’s Saint Mary 10 Harlingen CHAMBERS Lafourche Guadalupe McAllen Rio Grande shores with sustained winds of 110 mph andCOLORADO Iberia 2 FORT BEND Terrebonne Kinney storm surgesBexar of 17 feet.Monterey IkeGonzales ranks as the third GALVESTON Plaquemines Uvalde Medina Brownsville 20˚ most destructiveSaltillo hurricane to make landfallLavaca GALVESTON WHARTON Durango in the United StatesWilson and is estimated to have BRAZORIA 35 Galveston Chihuahua Hawaii caused over $3.5 billion in damageDewitt on Galveston Maverick 57 Atascosa Karnes Jackson Zavala Island. After more54 than six months of cleanup, 40 Frio 45 Gulf of 19˚ many Galveston businesses areVictoria reopeningVictoria and MATAGORDA 155˚ Galvestonians are rebounding from catastropheTamaulipas Goliad Mexico onceZacatecas again. 105˚ Dimmit 100˚ Calhoun 95˚ 90˚ 37 Bee 157˚ 156˚ 155˚ C o a h u i l a La Salle McMullen Refugio 45 Galveston’sLive Recovery Oak Process considering projects and working with the 22˚ Galveston has taken a proactive approachAransas to San Patricio recovery. In NovemberJim Wells 2008 the city council Federal Emergency Management Agency (FEMA) to plan their implementation. On April 9, 2009, Webb created a committee ofNueces residents to define a long-termDuval strategy to chart a course not only to the city council voted unanimously to accept the recovery but to future vitality. The committee’s committee’s 42-project Long-Term Community 57 more than 300 membersKleberg spent over 6,000 hours Recovery Plan.

Galveston,Jim Hogg Texas, May 31–June 5, 2009 7 Brooks Zapata 21˚ 85 Kenedy 49 45 Maui 30 N u e v o Starr Willacy Hidalgo Kahoolawe L e o n Maui Harlingen Cameron

20˚ Monterey 2 Saltillo D u r aHawaii n g o Hawaii

57 54 40 45 19˚ Tamaulipas 157˚ 156˚ 155˚ Z a c a t e c a s

105˚ 100˚ 95˚ 90˚ The seawall shortly after Betty Massey, chair of the committee, described • Treasuring historical and cultural resources Hurricane Ike in Septem- its vision for the future as: and maintaining the city’s unique character. ber 2008. Ike ranks as • Building a community that behaves in an the third most destructive The Panel’s Assignment hurricane to make land- environmentally responsible manner, values fall in the United States its natural resources, and protects people, The city of Galveston invited the ULI panel to and is estimated to have infrastructure, natural resources, and build­ consider sustainable neighborhood development caused over $3.5 billion ings from perils inherent to location on a strategies—strategies and actions the city should in damage on the island. barrier island; undertake to create healthy, socially diverse, • Strengthening the economy and diversifying affordable, and resilient neighborhoods for its engines; Galveston. In pursuit of this assignment, the city • Reconstructing traditional neighborhoods and asked the panel to consider two core questions: making the island’s housing stock stronger, safer, more affordable, and more attractive; • How can we attract residents to live on the island? • Strengthening and enhancing the effective­ ness of the education system; • What do we need to do to keep them here?

• Making health care available to everyone; The panel considered diverse tactics to attract and retain residents to Galveston’s neighbor­ • Rebuilding and improving infrastructure and hoods and to encourage investment in both the transportation systems; rehabilitation of historic housing stock as well • Keeping Galveston clean and beautiful; and as the construction of new housing.

8 An Advisory Services Panel Report Summary of Recommendations

The panel’s recommendations build on the mo- mentum of the recovery plan and lead to one goal: create “one Galveston.” This goal envi­ sions an ecologically sound island community that combines resort living with a revitalized urban core. Defined as the historic neighbor­ hoods east of 61st Street, the urban core will offer diverse housing options for permanent residents. As Galveston moves forward, the panel encourages the community to:

• Focus development efforts in the historic urban core, not undeveloped areas;

• Develop better physical connections within the historic core neighborhoods—especially the Strand, UTMB, and the Seawall—for pe- destrians, cyclists, transit passengers, and vehicles; The ULI Advisory Services panel receives a briefing from city officials. • Build on existing economic strengths, includ­ ing UTMB, the Port of Galveston, and tourism;

• Support entrepreneurship at all levels and leverage the energy of UTMB and its national laboratory to create new businesses and em­ ployment on the island; and

• Respect the island’s fragile ecosystem in part- nership with federal agencies and other enti­ ties vested in the island’s long-term environ­ mental sustainability.

The city of Galveston has the choice to continue to manage decline or invest in its future. The strategic advice suggested in this report will allow the city to create one Galveston while pro- viding that investment in its future that will be the ultimate and positive legacy of Hurricane Ike.

Galveston, Texas, May 31–June 5, 2009 9 Market Potential

rowing economic competition from Demographic Profile Houston and damage from repeated hurricanes have dealt Galveston econo- Galveston’s permanent full-time population is G mic blows in recent years. Hurricane Ike below 60,000. The panel heard that each year inflicted significant damage in historic neighbor­ 5 million to 7 million people visit the island for hoods already showing signs of wear. In addition, a day at the beach, a short stay in a hotel, or a new vacation home developments are drawing visit to a vacation home that they have purchased. residents to the island’s east and west ends, leading to further abandonment and deteriora­ Galveston residents tend to have lower incomes tion of homes in the historic urban core. than the national average and fewer of them are in the labor force. The island’s median house­ As part of hurricane recovery efforts, Galveston hold income was $34,135 in 2007, substantially needs to determine how to maintain a varied less than the national average of $50,007. The and appealing housing stock that can serve employed population numbered only 24,642, or existing and displaced residents as well as considerably less than 50 percent. Educational attract new permanent residents to the island. attainment is less than the national average. First, Galveston must determine which mar- ket segments offer the greatest potential for These figures reflect the tendency in recent years new residents. for middle-income employees to choose to reside on the mainland. However, this trend Galveston already scores well on many of the can be improved once housing is available. measures used by potential homebuyers to evaluate housing options: proximity of housing Employment to jobs, the availability of amenities and neigh­ borhood services, and the relative cost of Galveston’s 24,640 employed persons work pri- housing. Other measures that might require marily in the educational and medical sector at some effort and investment to bring them in UTMB and other educational institutions. Other line with the market’s expectations are the key sectors are arts and entertainment, finance, quality of neighborhood schools and the percep­ insurance, real estate, tourism, and retail. tion of safety both at night and during the day. There are about 35,000 jobs on the island, indi- Galveston has the urban fabric, climate, employ­ cating that many jobs are filled by people who ment base, access to Houston, and energetic live on the mainland. Jobs held by people who citizens necessary for it to become a very desirable commute onto the island are focused in the large place to live. It may feel bypassed at the moment educational and health care facilities on the because many working families have chosen to island, particularly UTMB. Figures 1 and 2 list live in traditional suburban subdivisions on the employment levels by sector. mainland. This trend can be seen in most urban­ ized areas in the United States, but it is revers­ Galveston’s roster of employers is impressive. ing. Families can be attracted to the island once Major sectors include government, health care the island offers a critical mass of new and and education, port and industrial activities, rehabilitated housing of the right size, type, and tourism and hospitality, finance and insur­ price range to fulfill a variety of housing needs. ance, foundations, and small businesses.

10 An Advisory Services Panel Report Figure 1 Figure 2 Employment Levels by Sector Major Employers by Sector

Employer Number of Jobs Government City of Galveston Education and health care 22,200 Galveston County Hospitality 2,800 Health Care and Education Galveston Independent School District Government 2,100 K-12 private schools Retail 2,188 Galveston College Texas A&M Center for Marine Training and Safety Finance, insurance, and real estate 1,517 Texas A&M University at Galveston University of Texas Medical Branch at Galveston Port and trade 1,000 (UTMB) Note: Table is based on data reported in interviews with local Galveston National Laboratory stakeholders. Data only include jobs with major employers and may not be comprehensive. Port and Industrial Port of Galveston (cruises and cargo) Support services for oil and gas companies More than 80 companies in maritime support services Tourism and Hospitality Moody Gardens Hotel and Convention Center All of these sectors offer growth potential. The Galveston Island Convention Center at San Luis hospitality sector is certain to grow but will Recreational facilities (Schlitterbahn, Flight Museum) continue to offer wages that tend to be lower Mid-price hotels than in other sectors. Other potential expansions Diverse restaurants include the possible container terminal on Peli- can Island, as well as facilities that would result Finance and Insurance from the proposed high-speed rail from Hous­ American National Insurance Company Local banks ton. The greatest growth opportunity for employ- ment in Galveston lies in the potential to attract Foundations biotech companies to the area around UTMB. Family foundations Small business Housing Affordability 2,500 to 3,000 businesses

Median household income in Galveston is approximately $34,000. Based on FHA under­ writing criteria, a prospective single-family home purchaser earning that median income could afford to pay $839 per month. Currently, Housing Opportunities that monthly payment could support a pur­ Galveston has many opportunities to encourage chase price of about $100,000, assuming no workers, retirees, students, and many others to third-party down-payment assistance or make Galveston their home by creating new housing subsidy. Similarly, at a $150,000 housing and rehabilitating existing housing. purchase price, minimum household income required by a borrower is about $48,000. At The best market for new permanent residents is a purchase price of $200,000, a buyer would found in the UTMB employees who currently live need to earn $64,400, almost double the area on the mainland. Many of the jobs associated median income. with UTMB are high-level research, medical,

Galveston, Texas, May 31–June 5, 2009 11 and academic jobs. These employees have high island’s largest existing employers and those disposable incomes that could be captured on with the greatest potential for growth. Develop­ the island and help the island’s economy. These ment in these areas should focus on rehabilita­ employees require quality housing, including tion, infill, and compact development to create single-family residences, condominiums, and a high-quality, urban lifestyle. The city should townhomes. craft land use policy, financing incentives, and marketing efforts to implement these initia­ There are also opportunities to provide housing tives. The city and its major employers will be for students, hospitality industry workers, and in a stronger competitive position to attract a retirees. Retirees will increasingly seek out quality workforce if it has diverse housing Galveston if it is perceived as a safe and warm choices at a range of price points. city that provides restaurants, shopping, and recreational activities close to comfortable small Development around downtown and UTMB residential units. Niche markets include empty will help revitalize neighborhoods. Addition­ nesters, the gay and lesbian community, outdoor ally, compact development will lessen sprawl enthusiasts, and vacation and second home- and minimize the cost of public investment in owners. If a rail link is completed, the island infrastructure. Compact development also pro- can also provide housing for employees working duces new housing at locations best serviced by in Houston. retail and other services and amenities. Fully realized, the plan to build out the available de- Understand the Problem velopable sites in the historic neighborhoods will produce a vibrant, walkable district that Right now, the historic neighborhoods offer will be internationally renowned. limited housing options. There is a limited amount of new construction with modern Pursue High-Speed Rail amenities and building systems. While the historic homes have broad appeal to a cross The proposed rail link to Houston will open section of potential residents, renovation and Galveston to the regional commuter population upkeep costs deter some buyers. Properties and enhance the quality of life for islanders. The suffering from deferred maintenance and panel recommends pursuing this project aggres­ neglect are not easily matched with the inter­ sively. The rail line will also support the panel’s ests and financial abilities of prospective new vision for a dense, walkable urban district area employees. stretching from the railroad station to UTMB.

Link Housing to Economic Leverage Historic Preservation

Development Historic neighborhoods throughout the urban The panel recommends using new housing to core should be enveloped into one overarching support economic development efforts, espe­ district so that all historic properties that merit cially by creating a diverse range of high-quality consideration for historic preservation tax credit housing options around the downtown and the support are eligible pursuant to National Reg- UTMB campus. Housing located in these areas ister criteria. can offer an easy, walking commute to the

12 An Advisory Services Panel Report Planning and Design

nduring and sustainable communities Unified Vision respect the strong link between social, environmental, and economic conditions. The Galveston community demonstrated great E They use the constraints posed by these will and capacity in its efforts to create the conditions to inform their land use decision- Long-Term Community Recovery Plan. How- making process. Further, these communities ever, interviews and anecdotes suggest that understand that land use policy relies on factors multiple, divergent visions for Galveston’s much broader than where development should future remain. Without consensus on a clear occur. Effective land use policy will consider direction, there is an almost certain chance economic durability, quality of public educa­ of continued decline. tion, friendliness to entrepreneurship, and other types of infrastructure. The panel seeks The panel heard many comments from inter- to provide Galveston with direction on how to viewees that reflect frustration in this lack of collaboratively address these issues to build a direction. A few of these comments are para­ durable, thriving community in the future. phrased here:

This map shows the area between the San Luis Pass and High Island on the Bolivar Peninsula. The process of erosion and accretion underscores the need to rely on solid sci- entific analysis to shape public policies related to growth, building, and design. Figures represent sediment transport in square meters per year.

Source: University of Texas, Bureau of Economic Geology, 1998.

Galveston, Texas, May 31–June 5, 2009 13 N

This map, prepared by • The island community is at a crossroads. underscores the need to rely on solid scientific the University of Texas’s We have had a long history of just surviving. analysis to shape public policies related to growth, Bureau of Economic Galveston will only last as long as it is re­ building, and design. Geology, shows areas of spected and loved by everyone. imminent (red) and high Existing studies document Galveston’s fragile (yellow) geohazard poten- • We have no long-term defensible and reliable ecosystem, including base flood elevation, tial on Galveston Island, land use plan. We need to realistically and wildlife habitats, and geohazards. This informa­ indicating that most of the truthfully instill confidence in the safety of tion has been produced by the Trust for Public west end and substantial living here. Land, the National Oceanic and Atmospheric portions of the east end of Administration (NOAA), and other agencies. • How do we convince the community that the island are susceptible As an aggregate, the studies suggest that there they have the ability to change this pattern to storm damage. are areas of the island that are relatively stable, and create a new and reliable future together? or safe for development and those that are less stable. In order to pursue a safe and sustainable Planning Framework future for the entire island, this information must be used to make decisions about the future Successful urban design rests on a clear under­ development of the island. standing of environmental systems. On a macro scale, Galveston is part of the Coastal Gulf of In addition to environmental influences, new Mexico system. Ocean temperatures drive cur- development plans should consider existing rents that have shaped the Gulf Coast for millen­ physical elements. These elements include the nia, independent of human habitation or hur- residential core neighborhoods, the Strand and its ricane activity. These currents will continue to commercial hub, UTMB and its national labor- affect the coastline, especially the barrier islands atory, the ports of Galveston and Houston, and and coastal plains. the bay, beaches, marshes, and natural resources.

Regionally, these currents drive sediment trans- The panel feels that Galveston’s land use decision- port, which adds to the island in certain sections making process can benefit from increased use by accretion and takes away from the island in of the existing data that documents environmen­ other areas by erosion. This process reveals tal systems, historic resources, and infrastructure. how fragile coastal barrier island ecosystems To do so, this information needs to be incorpo­ are. Further, this process of erosion and accretion rated into a layered geographic information

14 An Advisory Services Panel Report system (GIS) that will inform public and private existing building capacity to support a perma­ sector decision makers about the true risk and nent population of 70,000. This target popula­ economics of infrastructure and development tion should meet the market demands and needs decisions. The panel strongly encourages the of all employers. city to undertake an extensive study of the scien­ tific data to ensure that future development pat- The panel proposes a planning framework that terns respect and enhance currently identified focuses Galveston’s energy and investment on assets such as the historic neighborhoods be- the natural and historic assets, targeting tween 61st and UTMB, the Strand, UTMB, and development in the safest and most economi­ the Port of Galveston. cally viable locations on the island and investing in five priority areas: Galveston can thrive as a full-time community and tourist destination by protecting its environ­ • East/west and north/south connective mental and historic resources. The panel envisions corridors; a community that attracts the highest-value • The Strand-UTMB 21st-century urban core; tourists and residents by combining an abundant and thriving ecosystem with a well-preserved, • Seawall Boulevard; thriving urban core. This combination must be supported by a vibrant and innovative 21st- • Historic residential neighborhoods from century economy. 61st Street to UTMB; and

A transit-oriented development on 25th Street. Making It Happen • The panel believes the city can develop these Galveston has an incredible urban fabric—the assets and connect them with corridors and type that new urbanists and ecologists strive to nodes that focus energy, effort, and funding, create and re-create. Galveston has a founda­ while limiting development of those areas that tion of gridded streets, sidewalks, avenues, and are less stable. boulevards with diverse and unique architec­ tural assets. It also has the potential to have a The connecting corridors and nodes will build world-class beach, waterfront, and natural on Galveston’s traditional urban form. Key habitat. The urban core has sufficient land and corridors will feature high-quality urban envi-

Galveston, Texas, May 31–June 5, 2009 15 The areas highlighted Port in this map identify Strand locations that need to be part of a comprehensive strategy for the island.

UTMB

Seawall

Historic neighborhoods

services and create moments of vitality throughout Galveston’s neighborhoods.

The panel recommends that the city build a framework for public sector investment and land use decision making that focuses develop­ ment in the most secure and healthy locations. This strategy will yield a sustainable Galveston that will provide long-term social, economic, and environmental health for everyone. This framework must be consistent and predictable over time, transparent, fair, and anchored to produce true economic rigor that objectively evaluates the short- and long-term impact of every decision against the vision. The frame­ work requires the following actions:

Mardi Gras on the Strand. ronments, with amenities for all users. The panel • Contract with Coastal Communities Planning recommends focusing new public investment Atlas Mapping Service to integrate all available data from the city, NOAA, the Trust for Public along these corridors that will become the most Land, and others into an integrated GIS; dynamic streets in Galveston and will help knit the city together from Seawall Boulevard to the • Include the recently completed photographic bay and from UTMB to 61st Street. inventory of all buildings in Galveston as well as the master plans for the Port of Galveston The panel envisions nodes that will develop at and UTMB; the intersection of these corridors. The nodes will build on Galveston’s vernacular of corner • Inventory all historic neighborhoods between stores. Currently vacant corner properties will 61st and UTMB to determine scale, type, and house uses ranging from groceries to cafes to condition along with all vacant or vacated galleries that will provide neighborhood property;

16 An Advisory Services Panel Report High-Speed Rail Line Mixed-Use Development

Transit-oriented development Major connectors

• Establish a complete street ordinance for all Boulevard. These areas are discussed further in The panel recommends roads and a hierarchy and design standard the following sections. building the Houston- including build to lines, signage, and tree and Galveston rail line and sidewalk standards for all corridor and con­ 21st-Century Urban Core developing a new, transit- nector roads; The Strand and its surrounding areas will grow oriented neighborhood in into Galveston’s thriving core and a destination and around the Strand. • Establish a housing design program for restored of choice for residents throughout the Houston and new housing development that creates region. The panel recommends capturing this the design and quality control to support and market by building the Houston-Galveston revitalize sustainable neighborhoods in the rail line and developing a new, transit-oriented urban core; neighborhood around the rail station at 25th Street • Consider establishing design standards that and the Strand. The neighborhood will outpace re-create the historic tile sidewalks as a unique traditional suburban developments by offering place-making statement; diverse housing and amenities that serve regional commuters and those who live and work on the • Work with ULI’s Houston District Council, island. A great transit-oriented neighborhood is the American Institute of Architects, and the one component that will attract middle-income U.S. Green Building Council to establish green families from throughout the region. infrastructure and building standards to guide the design and building professions in creat­ To be truly sustainable, the neighborhood must ing a new, green economy; and provide housing options affordable to diverse income groups. The city should offer density • Establish special mixed-use overlay zones bonuses to developers willing to incorporate for each target development area including low- and moderate-income housing. In building form-based codes. a high-quality, mixed-income neighborhood, Galveston can begin to break down boundaries Major Development Initiatives of race and class.

Within the core historic neighborhoods, the The neighborhood needs diverse working envi- panel encourages the city to focus development ronments for startup companies, artisans, and efforts on three areas: a 21st-century urban other entrepreneurs. Vacant buildings on the core, a biotech village, and a beautified Seawall west side of 25th Street could be transformed

Galveston, Texas, May 31–June 5, 2009 17 These illustrations demonstrate the relative location of the Strand and UTMB. The panel recommends developing vacant parcels and brownfields east of the Strand into a thriving, mixed-use district linking the Strand to UTMB.

UTMB Connector street Strand-UTMB corridor Neighborhood center

18 An Advisory Services Panel Report Examples of commercial development on Galveston Island.

into live/work spaces and creative office spaces plete street, the Strand will anchor the village for entrepreneurs. To create a front door for the and help connect downtown to UTMB. entrepreneurial community, the panel recom­ The biotech village can provide supportive mends creating a public market to showcase office and lab space for companies born from local art, locally produced food, and other entre- the national laboratory, grown in the Customs preneurial efforts. Funding for these projects House, and ready for large-scale launch. In could include a combination of housing, historic order to promote a sustainable economy and preservation, brownfield, and other tax credits. attract middle-income families, Galveston must The downtown needs thriving, adjacent neigh- keep these new businesses on the island. The borhoods to support its businesses and civic life. city should collaborate with UTMB to provide The city should encourage homeowners to pur- all necessary services to support entrepreneurs, chase and rehabilitate homes in the neighbor­ including access to capital, business planning hoods adjacent to downtown. To do this, the city assistance, facilitated access to markets, patent should promote and make available first-time policy, and access to intellectual resources. homebuyer training, financial education, and The village will offer a mix of housing for UTMB foreclosure prevention and mitigation programs. faculty, staff, and students as well as existing Biotech Village residents. All public housing units currently located in these areas must be equally replaced The vacant parcels and brownfields east of with mixed-income development. The city can downtown should be developed into a thriving, help make housing opportunities in this neigh- mixed-use biotech village. The core of the bio- borhood available to all homeowners by taking tech village will be the Customs House Business advantage of the state’s mortgage bond program Incubator, currently underway with UTMB’s and the city’s down payment assistance programs leadership. Once it is transformed into a com­ for families with eligible income. Layering sub-

Galveston, Texas, May 31–June 5, 2009 19 recovery plan—landscaping, street furniture, lighting, signage, and public art. The city could look to federal stimulus programs for funding to support some of these efforts, including surface transportation grants and the Economic Devel- opment Administration’s economic development facilities program. Revitalized Historic Neighborhoods The panel encourages the city to aggressively encourage housing rehabilitation and infill development in historic neighborhoods through­ out the urban core, with a special emphasis on the neighborhoods between Broadway Boulevard, Avenue O, 26th Street, and 45th Street. Based The bulk of Galveston’s residential neighborhoods (yellow) are located to the on anticipated mortgage delinquency rates, this east of 61st Street. Within this area, the city should encourage repair of damaged area is eligible for Neighborhood Stabilization properties, development on vacant lots, and enhancement of corridors that Program II (NSP) funding from the U.S. Depart­ connect Galveston assets. ment of Housing and Urban Development. sidies (federal tax credits, low-income housing The city should work to acquire, rehabilitate, tax credits, HOME funds, and CDBG subsidies) and resell historic homes to first-time home­ will help ensure that units will be affordable to buyers or provide assistance to those wishing to all income levels. acquire and rehabilitate foreclosed or blighted In the longer term, the panel sees an opportunity houses. Within the constrictions of the Texas to create a research park on the east side of the Land Bank legislation, properties could also be acquired, cleared, and held for future develop­ UTMB campus. The park would be the location ment. The National Vacant Properties Campaign for firms needing immediate access to the uni- can provide technical assistance in this endeav­ versity, the national lab, and a skilled work­ or. In addition, the city might consider the force. Other cities offer models for incentive following strategies: programs to attract these companies, but the key incentive may be available land that the city • Create a neighborhood business improvement already controls. district for historic districts with the funds to be invested in sidewalk and streetscape Beautified Seawall Boulevard enhancements, lighting, and signage; The panel encourages the city to begin the Explore the possibility of using Economic beautification of Seawall Boulevard with a first • Development Administration and other fed­ section between 21st and 25th Streets. Under­ eral funds to support renovation in historic standing that previous beautification efforts districts; and have stumbled due to scale and jurisdictional challenges, the panel encourages the city to • Conduct comprehensive code enforcement, start with this four-block stretch to demon­ create rental registration and inspection pro­ strate what can be done and also to bring new grams, and offer assistance and low-interest attention to neighborhoods in need of catalyst. loan programs to owners and landlords to address code violations. The enhanced Seawall Boulevard will create a gateway to the historic neighborhoods and a beautiful sense of place along the waterfront. The panel envisions implementing the street- scape enhancement already called for in the

20 An Advisory Services Panel Report Development Strategies

he city of Galveston has land area of 46 consistent with the vision in the recovery plan square miles and a population in 2007 of and be based on realistic, financially feasible, po- 53,826 or population density of 1,165 per­ litically viable, and environmentally sustainable T sons per square mile. Similarly, the city of elements and steps. Further, the recovery com- Boston has a land area of 48 square miles and a mittee has already built a base of community 2007 population of 600,980 or a population den­ vision. Galveston must continue to build upon sity of 12,520 persons per square mile. While in this community-wide consensus to create inclu- and of itself, this disparity in population density sive public/private partnerships and to ensure does not indicate an unsustainable situation, it active participation of neighborhood associations. points to a potentially difficult proposition of affordably maintaining expected urban levels of services and amenities. Galveston is likely in an Housing for Whom? unsustainable position over the long term if it The city of Galveston can look to a number of chooses to continue expanding east and west rath- market cohorts as potential buyers of new and er than focusing its energy on its urbanized core. revitalized units. The panel strongly encourages Galveston has significant assets on which to build. the city to ensure that the more than 500 residents The proposed development strategy should be of public housing who have been displaced are

The housing stock in Galveston is diverse in terms of quality, architecture, and condition.

Galveston, Texas, May 31–June 5, 2009 21 resettled. Similarly, the city must ensure that all Housing Assumptions and Strategies homeowners and renters who lived in Galveston before Hurricane Ike are able to return to their There are many projects that need to be com­ homes or to replacement housing. The panel con- pleted to ensure that Galveston creates a new curs with the recovery goal to make sure there inaugural terrain to build upon and subsequently is sufficient supply of housing affordable to the attract and retain permanent residents. Among workers who support the tourist industry and the most pressing is the rebuilding of various to the students and faculty at UTMB. In addition, infrastructure components such as wastewater the city should find methods to create housing treatment plants, sewer plants, waste disposal to attract new middle-income residents. facilities, healthcare and education campuses, and alternatives to automobile-based transpor­ tation. Similarly, Galveston has a considerable Where to Create Housing base of human capital that can add significant Building on the planning framework discussed value to the rebuilding process. Additionally, above, the city should focus its energy on the new housing needs to be produced for almost all markets and price points. The city should primary development area of 61st Street to UTMB. seek to find methods of fueling development Within this area, the city should encourage the across product and price categories to ensure repair of damaged properties, new development that the human capital that helped create and on vacant lots, and the enhancement of corridors sustain Galveston will return and flourish. that connect Galveston assets. Wherever possible, new development should build around and sup- One striking element that could add to a strong port public transit use. By stimulating develop­ housing market is the skill and dedication of ment within these areas, it is likely that the city Galveston’s preservation community. Based on can harness and grow its economic drivers. evidence and interviews there are organizations

Figure 3: Galveston Housing Production

Hourly Labor Number Percent Labor Labor Labor Hours per Labor Years of Number Cost per of Houses Cost Labor Dollars Cost Hours Year Years Construction of Jobs Unit Repairs Houses with minor damage 8,350 $4,978,000 $596 Houses with major damage 7,575 $88,610,000 $11,698 Houses with substantial damage 1,070 $41,541,000 $38,823 Total houses in need of repair 16,995 $135,129,000 50% $67,564,500 $20 3,378,225 2,000 1,689 5 338 $7,951 New Construction Houses (total development cost) 2,129 $266,135,163 50% $133,067,581 $20 6,653,379 2,000 3,327 5 665 $125,000

Source: City of Galveston, ULI Advisory Services panel briefing materials, May 2009.

22 An Advisory Services Panel Report Figure 4: 2,000 new units of housing, including the required Projected Jobs Generated and Targeted replacement of 569 affordable housing units. Based on a total development cost of $125,000 per new home or apartment, this represents an Category Number of Job of Jobs additional expenditure of $266 million in con- struction of new homes over the next three to Total construction jobs 1,004 five years. Construction jobs, Galveston residents 502 This availability of space for new housing and Construction jobs, Galveston Housing rehabilitated units is an opportunity to incorpo­ Authority residents 251 rate public housing into the city’s fabric instead Job ready 50 of concentrating it in a few locations. Addition­ ally, this is the opportunity to plan and imple­ Trained over two years 201 ment the development under the oversight of Source: City of Galveston, ULI Advisory Services panel briefing the multiple stakeholders that have worked so materials, May 2009. well together in developing the recovery plan. It should be noted that this opportunity also affords

Galveston the ability to maximize the opportu­ at hand to assist in the rebuilding efforts. nities for employment for residents of Galveston Specifically, the Artist Homestead Galveston and residents of public housing. The city and the Island Initiative, an organization committed to Galveston Housing Authority should strongly building walkable, sustainable communities consider local employment guidelines when within the historic districts, illustrates an un- tapped artisan economy built around historic approving public housing development. preservation, sustainable infrastructure, and As shown in figures 3 and 4, the renovation of green building professionals. the 17,000 housing units and construction of After renovating the infrastructure, Galveston 2,000 new units over the next five years repre- should then begin developing neighborhoods sents an aggregate economic activity of up to along transit lines. This development would $1.1 billion that will generate 1,000 to 2,800 jobs. include amenities and retail services in each area at key nodes as recommended in the The panel suggests that the city consider the following Planning and Design section. following recommended steps to accompany this strategy:

Investing in Galveston: Projects · Inventory all vacant lots and buildings; Data provided to the panel indicates almost · Identify all parcels that are appropriate for 17,000 houses in need of some level of repair. new construction; The panel is concerned that the FEMA damage assessment estimate of $135 million or $7,900 · Identify all vacant buildings that can be saved per unit is too low. Imputing an average, and and renovated; more conservative, construction cost of $50,000 per unit, the more probable estimated cost of · Establish a schedule to complete renovations these repairs is closer to $850 million. Based on and new construction over a five-year period; this estimate, the FEMA assessment could repre- sent only 16 percent of the estimated repair cost. · Agree on employment goals for Galveston and public housing residents; and Partial data of vacant buildings and parcels in- dicates that Galveston has sufficient residential · Design and implement training programs as land in the core of the city to build approximately needed to meet employment goals.

Galveston, Texas, May 31–June 5, 2009 23 The Strand Seaport is a regional and national tourist destination. The Strand and the rest of downtown must be the focus of the new “one Galveston” recom- mended in this report.

Create a Partnership · Connect downtown to the beach by focusing development at the 21st Street and 25th Street The recovery committee’s experience has corridors; demonstrated the capacity of the Galveston residents to face and overcome a major crisis, · Support the expansion of the UTMB campus; to overcome previous divisions, and to build and consensus across several potentially conten­ · Prioritize development along the transit sys­ tious priorities. The city should build on that tem to reinforce use of public transit and to experience and create a partnership of neigh­ ensure access between home and jobs with borhood associations, the city, and major local minimum reliance on automobiles. educational and private institutions to plan and oversee the implementation of the housing Success with Houston production. By developing a scattered-site infill development strategy, Galveston can Galveston should build on its previous successes ensure that every neighborhood is revitalized in engaging the expertise and proximity of its and that residents and business owners are regional neighbor Houston to expand Galveston’s involved actively in the revitalization of their port activities and enhance transportation modes own neighborhoods. such as a potential high-speed rail system be- tween the two cities. Unquestionably, Houston is The city can control development to accomplish vital to the success of Galveston’s vision. Hous­ other objectives including but not limited to ton’s proximity and expertise can provide sup- the following: port for leadership, school system, transporta­ · Strengthen the core of the city; tion, commerce, and connectivity disciplines.

24 An Advisory Services Panel Report Employing consultants, ULI’s Technical Assis­ and encourage multiparcel development. Other tance Programs, and the Houston ULI District opportunities could include: Council (as examples) for expert advice when­ ever possible will expedite all goal achievement · Engaging the Galveston Historical Foundation without diluting the island’s unique sense of to create housing that integrates the flavor of spirit and place. the historical neighborhoods with new hous­ ing stock;

Additional Development Strategies · Creating or inviting nonprofits including Habi- to Consider tat for Humanity, NeighborWorks America, Local Initiative Support Corporation (LISC), Galveston’s historic neighborhoods provide faith-based organizations, and other service- ample evidence in favor of a state historic tax oriented developers whose expertise provide credit. While Texas does not presently have state middle-income housing. historic tax credit legislation, the city has an opportunity to lobby for an experimental zone · Gather the opinions of the neighborhood as­ to rebuild and develop within the target areas. sociations as often as possible by leveraging the success of the Galveston Alliance of Island Galveston must streamline its process to acquire, Neighborhoods. clear title to, and redevelop abandoned and distressed properties. Further, the panel suggests that the city create land banks to acquire, hold,

Galveston, Texas, May 31–June 5, 2009 25 Implementation

he city of Galveston has an unprecedented Figure 5 opportunity to leverage a plethora of Potential Funding and federal resources to move its recovery Technical Assistance Sources T plans forward—specifically with respect for Neighborhood Redevelopment to housing. The availability of disaster recovery funding, the Housing and Economic Recovery FUNDING Act of 2008, and the American Recovery and Community development block grants Reinvestment Act of 2009 make some of the larger projects proposed in the recovery plan HOME more feasible. The city should position itself Disaster Recovery to capture its fair share of financing incentives available through these successful and popular Neighborhood Stabilization Program I and II federal programs. (See Figure 5.) Low-income housing tax credits In addition, lessons learned from the recovery Weatherization/energy efficiency grants experiences of New York City and New Orleans can be used to inform local leadership on how to National Trust for Historic Preservation (Preservation maximize the opportunities provided. Galves­ Development Initiative) ton stands ready to actively address a warming Federal Emergency Management Agency (assistance to planet and a truncated supply of fossil fuels. It put displaced residents in foreclosed homes) has the opportunity to invest in social, environ­ mental, and political infrastructure that will Historic preservation tax credits (local, state, federal) boost its quality of life, improve its competiti­ Economic Development Administration veness in local and global markets, and create the foundations for sustainable neighborhoods New Markets Tax Credits and development patterns. Department of Labor workforce training funds The city of Galveston has the choice to continue TECHNICAL ASSISTANCE to manage decline or invest in its future. In con- trast to its population decline, 15 percent job Local Initiative Support Corporation loss rate, and a median income 37 percent lower than the remainder of Texas, Galveston has great NeighborWorks assets in its history, the beach, tourism, UTMB, State Housing Finance Authority the Maritime Academy, a rapidly growing re- gional market, engaged citizens, and the port. Federal Department of Housing and Urban Development

The missing ingredient in the eventual recovery AmeriCorps of Galveston lies in its institutional capacity to National Vacant Properties Campaign create the change it seeks to make. Currently, the city government is not structured to both National Development Council efficiently manage primary operations and im- Center for Competitive Workforce plement the recovery plan to reinvent the city. In order to realize its recovery goals and to be- International Economic Development Council come competitive in the global marketplace

26 An Advisory Services Panel Report once again, Galveston must configure its lead- provide housing, commercial, and economic ership and policy structure to reflect a shift development services and financing on behalf of toward public entrepreneurship. It must em- the city. This agency would be staffed by profes- brace a new mindset of accountability and sionals tasked with identifying opportunities, responsibility and also actively seek out public/ affecting markets, and managing capital flows private partnerships that advance public values to create results. such as creating housing that can sustain middle-income families. The redevelopment authority could receive oper- ating funding from city and local foundations. Creating a Redevelopment Authority However, this would require local foundations to consider philanthropy as an investment in The panel recognizes the hard work and dedica­ the community with anticipated return on that tion of city staff, and the significant contribu­ investment—in social, environmental, political, tion of the 300 individuals who gave their time and economic gains. Foundations could invest and talent to create the recovery plan. It is now through grants and other program-related in- time to ask how to get the work done. The city vestments, as well as use Galveston’s recovery is not in the position to take on the additional to find market-level investments for the founda­ responsibility for implementation with its tion’s assets. It is also critical that local foun­ current human and financial resources. dations begin to support recovery and redevel­ The recovery committee recommended the opment projects and initiatives in the form of appointment of a recovery czar, but the focus local matches for competitive grants and grant needs to be broader than the Hurricane Ike writing support. recovery projects. The panel suggests that Galveston create a redevelopment authority A spirit of public entrepreneurship can drive a to implement the recovery plan, and to oversee redevelopment authority. One example of how long-term development in its neighborhoods, this spirit could create change is by providing commercial corridors, downtown, and the port. seed funding for high-value startup businesses Simply responding to recovery issues will not similar to Southeast Michigan’s New Economy position Galveston to take advantage of the many Fund. Further, if Texas law permits, the rede- opportunities currently before it. velopment authority could create a land bank that could take ownership of vacant and blighted Through a public/private redevelopment auth- property, clear the title, and package it for ority, Galveston can create the development future development. infrastructure that will enable it to take ad- vantage of its unique strategic opportunities, capitalizing on the federal disaster relief and Other Opportunities stimulus funding available to jump start these projects. It will also build institutional capacity The panel considered many other implementa­ to support housing, commercial, and economic tion activities that can help realize the vision for development opportunities through partnerships Galveston. These activities are united by a desire and leveraged resources. These opportunities to take advantage of unprecedented federal will allow Galveston to create a welcoming and funding and support for neighborhood revital­ competitive environment to attract investment. ization activities as well as a desire to leverage resources already present in the region. Recom­ Strategic Opportunities mended activities include:

One suggested format for a redevelopment · Use AmeriCorps members to organize hom­ authority would include a collection of elected, eowners associations and support neighbor­ business, and philanthropic leaders. It would hood beautification projects, neighborhood have the authority to contract with the city to watches, and youth programming;

Galveston, Texas, May 31–June 5, 2009 27 · Engage LISC or NeighborWorks to assist in · Work with the local business community to housing redevelopment activities; minimize the business challenges resulting from conducting business on a barrier · Fund a marketing plan that will rebrand island—the International Economic Develop­ Galveston as a unique location based on well- ment Council (IEDC) report from Cedar defined and articulated programs (historic, Rapids, Iowa, could provide useful resources; green, edgy, charming, beautiful, safe, and diverse); · Develop tools and identify and coordinate resources to deploy economic and business · Use worker training funding available, along development programs, pre-disaster business with indigenous worker and business re­ continuity planning support and post-disaster quirements to provide new employment redevelopment, including small business opportunities for unemployed and under- working capital and bridge loan programs; employed residents with a particular focus on green construction and historic preserva­ · Create a rebuilding resource center that would tion opportunities; provide local and state services from the public and private sectors to those who need advice · Identify and aggressively pursue state and and assistance in order to rebuild business federal resources to support recommenda­ operations. tions—create a toolbox of local, state, and federal programs that can be leveraged;

· Use lessons learned from Hurricane Katrina to request waivers on HUD restrictions;

28 An Advisory Services Panel Report Conclusion

he city of Galveston has a choice to con­ decision making is supported by scientific data. tinue to manage a declining community or Once these steps are taken, the city can begin to to embrace the opportunity of recovery to leverage its urban fabric to link diverse commu­ T move the community toward economic nity nodes such as the Strand, UTMB, the port, and ecological sustainability. In order to achieve and the Seawall area along transit corridors. By the latter, the city will need to focus its energy focusing development along transit lines, greater on the area between 61st Street and UTMB. It opportunities for mixed-income neighborhoods will also need to create capacity in the municipal will emerge as transit around and on and off the corporate structure to allow professional staff island will become less dependent on cars. Finally, the opportunity to focus on development work the city can work to implement the several spe­ rather than daily operations. Further, moving cific strategies recommended in each of the above forward will require sound knowledge of the sections to help continue Galveston’s recovery barrier island ecosystem (both locally and re­ and repositioning. gionally) to ensure that land-use planning and

Galveston, Texas, May 31–June 5, 2009 29 About the Panel

Smedes York of a variety of award-winning buildings and de­ signs. Since 1997, Anderson has been project Panel Chair architect and designer on many wide-ranging Raleigh, North Carolina projects including planning, single and multi­ family residential, retail, institutional, and A Raleigh native, York is chairman of York commercial work. Properties Inc. and of two related companies: Prudential York Simpson Underwood and In 2007, Anderson and business partner Kris McDonald-York Construction. He is past chair- Nikolich founded the Design Initiative, an man of ULI and a member of ULI’s Board of Trust- architectural firm focused on regionally specific ees. He was mayor of Raleigh from 1979 to 1983. sustainable design and development. The firm is currently working with Camp Fire USA in York has spent his professional career in real Birmingham to provide design guidance in estate and construction. In addition to his busi- implementing a master plan for Camp Fletcher ness, he has served in a leadership capacity for in McCallah, Alabama. Design Initiative is the many organizations including past chairman of town architect for Trussville Springs, a DPZ the North Carolina Chamber, the Greater Raleigh planned 170-acre traditional neighborhood Chamber of Commerce, the Raleigh-Durham development designed along the banks of the Airport Authority, and the North Carolina State Cahaba River. The firm is helping the city of University Board of Trustees. Current positions Birmingham redefine its sustainable goals include chairman of Triangle Tomorrow, board through their work on the redesign of a city member of the Research Triangle Park Foundation, park, as well as working on a recent effort to and board member of the YMCA of the Triangle. create sustainable, affordable, and livable From 1964 to 1966, York served as a lieutenant housing in a new community development in the U.S. Army Corps of Engineers, receiving project for several small towns in Alabama. an Army Commendation Medal for his service After serving four years in the U.S. Marine in South Korea. Corps, Anderson went to Auburn University York earned his bachelor of science degree in and graduated in 1997, magna cum laude with civil engineering from North Carolina State a bachelor of architecture degree. He now University and a master of business administra­ serves on the Advisory Council for Auburn’s tion degree from the University of North Carolina School of Architecture. at Chapel Hill.

Agnes Artemel Marshall A. Anderson Alexandria, Virginia Birmingham, Alabama Artemel has more than 25 years of experience Anderson has 12 years of professional experience in market and economic analysis and project as an architect coordinating and contributing feasibility studies. She has conducted studies to multidisciplinary teams on a variety of project in the housing, office, hotel, retail, and indus­ types. He has been responsible for the success trial sectors, as well as mixed-use and special-

30 An Advisory Services Panel Report focus projects at locations throughout the United development of a 500-acre urban area, promot­ States. She specializes in setting up public/private ing this development, and facilitating the public partnerships to bring the resources of both public and private actions needed for implementation. and private sectors to bear on solving urban The area is now experiencing rapid growth. issues, particularly revitalizing older urban neighborhoods. Artemel is a director of the Alexandria Economic Development Partnership and of the Alexandria For the public sector, Artemel conducts eco- Industrial Development Authority. She is also nomic base analyses, forecasts the economic on the Board of the West End Business Association impact of proposed small area and master plan and the Board of Advisors of Virginia Commerce changes, and prepares strategic plans for eco- Bank. She is an appointee to the Mayor’s Task nomic development and tourism development. Force on BRAC, and previously served on the Carlyle PTO Task Force in Alexandria. She has For the private sector, she has assisted developers led the Old Town North Community Partnership and landowners in obtaining the highest value for the past three years, focusing on bringing for raw land and buildable lots, analyzed land businesses and residents to work together toward carrying capacity, considered zoning and regu- a mixed-use, pedestrian-friendly neighbor­ latory obstacles, determined the market poten­ hood. Artemel has a master’s degree in urban tial of proposed new projects, and assisted with and regional planning from George Washington processing real estate development projects University. through the municipal approval processes.

She has extensive experience in community relations and with building community support for a new project. She has formed a number of Jana Freedman grass-roots advocacy groups in support of economic development objectives including Portland, Oregon ADAM (Alexandrians Delivering smart growth A native Oregonian, Freedman is executive vice Around Metro), SWAAT (SouthWest Alexandria president–development with locally owned Access and Transportation), and COMBO (Coali­ Oceancrest Properties LLC in Portland, Oregon. tion of Membership Business Organizations). In that capacity, she is responsible for site selec­ Recent projects have included determining tion and development planning of mixed-use highest and best use for a property in historic and industrial properties, project feasibility St. Mary’s County, Maryland; analyzing the and financial analysis, tenant negotiation, and future prospects for tourism development in asset management. Alexandria, Virginia, in the face of emerging With a career spanning all aspects of commer­ competition from a large mixed-use hospitality cial real estate, in 1981 Freedman began her and tourism project in another jurisdiction; professional career in commercial real estate conducting visitor forecasts for a proposed finance with Bank of Montreal on Wall Street. 100,000-square-foot museum; planning a After 13 months she was recruited to Dallas in mixed-use project in a revitalizing neighborhood an expanded lending and credit officer capacity adjacent to a Metrorail transit station; recom­ with Canadian Imperial Bank of Commerce mending market-based business attraction stra- (CIBC). At the insistence of Olympia & York’s tegies for economic development in an urban subsidiary, Block Bros., Freedman transferred area; and specifying implementation steps to with their local commercial real estate loans support an ambitious redevelopment vision for from CIBC to Sunbelt Savings Association in an older, low-density urban neighborhood. Dallas. At Sunbelt she was fully integrated with Previously, Artemel was executive director of the borrower’s development team during all the Eisenhower Avenue Public Private Partner­ phases of the project, including parcel identifi­ ship, in charge of determining the appropriate cation and acquisition, master-planned commu­

Galveston, Texas, May 31–June 5, 2009 31 nities design, zoning requests, architectural any other New England community develop­ review, CCR creation, parcel sales, neighbor­ ment corporation. hood association development, and infrastruc­ Urban Edge is a nonprofit community devel- ture build out. Further, she was the key liaison opment corporation focused on housing devel­ between the developer, Sunbelt as lead lender, opment and preservation, homebuyer training, and over 30 participating lenders. Loans by foreclosure prevention, lending for home im- Block Bros. and other Block-related entities provements and de-leading, resident organizing, totaled in excess of $500 million and included safety initiatives, and support for youth facilities raw land and mixed use properties. Valley Ranch, and programming. Now in its 35th year of oper- a 2,600-acre master-planned community in ation, Urban Edge has developed or preserved Irving, Texas, was the premier project devel­ over 1,300 homes and apartments and 81,000 oped from assembled raw land during Freed­ square feet of community facilities, commercial, man’s tenure with the Dallas lenders. and retail space. Current and recently completed In 1986 Freedman moved to Los Angeles, where real estate development projects include 13 homes she successfully devised commercial real estate for first-time homebuyers, conversion of a for- financing packages for many prominent clients, mer transit power station into studio and pro- gram space for Boston Neighborhood Network, including the Disney family. In 1989 she briefly and a $250 million mixed-use, mixed-income, relocated to Portland, before returning to Dallas transit-oriented development in partnership to open, staff, and manage a regional commer­ with four community-based and private partners. cial equipment leasing office. Subsequent to the sale of that firm, Freedman returned to Portland to resume her commercial real estate activities as owner, developer, and asset manager. John L. Knott, Jr. Freedman founded ULI’s Oregon/Southwest North Charleston, South Carolina Washington District Council, is on the founding leadership committee, and serves as vice chair As president, chief executive officer, chairman, on the UDMUC–Purple Flight product council. and cofounder of the Noisette Company LLC, Knott leads the Noisette Project development team. This team is collaborating with the city of North Charleston, South Carolina, in the Mossik Hacobian sustainable restoration of 3,000 acres of the city’s historic urban core and areas of the former Boston, Massachusetts Charleston Naval Base. In addition, Knott serves Hacobian is president of Urban Edge and its as the chief executive officer/managing director of Island Preservation Partnership, which devel- affiliated organizations. As of December 2007, oped the 1,206-acre Dewees Island oceanfront he had served for 22 years as executive director retreat dedicated to environmental preservation. of Urban Edge Housing Corporation (UEHC) In 2001, Dewees Island was honored with ULI’s and Urban Edge Property Management (UEPM). Award for Excellence. In July 2005, the American Urban Edge has concentrated on comprehensive Society of Landscape Architects selected the community-based development in partnership Noisette Community Master Plan for its 2005 or collaboration with local, citywide, regional, Professional Award, the Award of Excellence, and statewide organizations. Hacobian’s interest the organization’s highest honor. in community development was sparked during a nine-month design project in East Harlem while Knott served for four years as the founding attending the Columbia Architecture School. chairman for ULI South Carolina. He also founded During his tenure Urban Edge has developed the ULI SC Center for Sustainable Leadership. and preserved more affordable housing than His most recent appointment is to the Milton

32 An Advisory Services Panel Report S. Eisenhower Foundation as a trustee, as well Earlier in his career, Lima was senior vice as an advisory board member for the Remaking president for special projects at the New York Cities Institute at Carnegie Mellon. In addition, City Economic Development Corporation, Knott serves as chairman of the Transportation where he managed initiatives focused on grow- Advisory Board for Charleston County. The Heinz ing the city’s central business districts and in- Center Coastal Vision Steering Committee is creasing public access to the city’s waterfront. another of Knott’s involvements. Having served as assistant commissioner for new construction programs at the New York City Department of Housing Preservation and Development, he understands the complexity James Lima and opportunities in structuring financing for community development. New York, New York Lima is assistant adjunct professor in the Lima has two decades of private and public sector experience in the planning, financing, Columbia University master of science in real and implementation of large-scale, mixed-use estate development program, where he teaches development. Public/Private Partnerships in Real Estate Development. He earned a bachelor’s degree He has expertise in market-rate and mixed- from Columbia College with a major in archi­ income housing, as well as economic develop­ tecture and urban studies, and he stayed at ment initiatives focused on revitalizing urban Columbia to complete a master of science centers and waterfronts. Over the past decade, degree in real estate development. he has successfully aligned the interests of private and public entities to build close to $1 billion He serves on a number of boards, including worth of mixed-income housing, retail, and new Syracuse University School of Architecture, public amenities throughout New York City. A Friends of the New York Harbor School, Design strategic planner, consensus builder, and prag- History Foundation, and Columbia College and matic problem solver, Lima is hailed as an effec- Columbia GSAPP Alumni Associations. tive and creative leader in public and private real estate development. Prior to joining HR&A, he was senior director Tom Murphy of development in the New York regional office of one of the country’s top residential REITs, Washington, D.C. AvalonBay Communities Inc. At AvalonBay, Lima oversaw planning and construction of a A former mayor of Pittsburgh, Murphy is a senior development portfolio consisting of more than resident fellow, ULI/Klingbeil Family Chair for 1,800 residential units, retail, and public ameni­ urban development, at the Urban Land Insti­ ties valued at more than $600 million. tute. His extensive experience in urban revital­ ization—what drives investment, what ensures Previously, Lima served as New York City Mayor long-lasting commitment—is a key addition to Michael Bloomberg’s appointee as the founding the senior resident fellows’ areas of expertise. president of the Governors Island Preservation and Education Corporation, a public corporation Since January 2006, Murphy has served as ULI’s overseeing the planning, redevelopment, and Gulf Coast liaison, helping to coordinate with operations of the 172-acre former military facility the leadership of New Orleans and the public in New York Harbor in conjunction with the to advance the implementation of rebuilding National Park Service. Lima was responsible for recommendations made by ULI’s Advisory Ser- securing the first $30 million commitment of vices panel. In addition, he worked with the historic preservation funding for the Island’s Louisiana state leadership, as well as with lead- national landmark buildings. ership in hurricane-affected areas in Missis­

Galveston, Texas, May 31–June 5, 2009 33 sippi, Alabama, and Florida to identify areas ity Award from the U.S. Conference of Mayors appropriate for ULI involvement. and was honored with the 2001 Pittsburgh Man of the Year Award by Vectors Pittsburgh. Prior to his service as the ULI Gulf Coast liaison, Murphy served three terms as the mayor of Pittsburgh, from January 1994 through December 2005. During that time, he initiated a public/ Sue Southon private partnership strategy that leveraged more than $4.5 billion in economic development Bloomfield Hills, Michigan in Pittsburgh. Murphy led efforts to secure and Southon is a development professional, trainer, oversee $1 billion in funding for the development and strategic planner. In 1992 she founded of two professional sports facilities, and a new Strategic Planning Services to provide strategic convention center that is the largest certified green building in the United States. He developed planning, site consultation, organizational strategic partnerships to transform more than development, project management (including 1,000 acres of blighted, abandoned industrial construction project management), and grant properties into new commercial, residential, writing assistance to industry, government, non- retail, and public uses; and he oversaw the devel- profit, and educational organizations. Southon opment of more than 25 miles of new riverfront has extensive experience in community, eco- trails and urban green space. nomic development, and housing development. Strategic Planning Services has offices in south­ From 1979 through 1993, Murphy served eight eastern Michigan and New Orleans, Louisiana. terms in the Pennsylvania State General Assembly House of Representatives. He focused legislative Prior to 1992, Southon was with the Michigan activities on changing western Pennsylvania’s Department of Commerce, responsible for economy from industrial to entrepreneurial, comprehensive strategic planning in distressed and wrote legislation requiring the Common­ communities, and assisting local government wealth of Pennsylvania pension fund to invest to develop and implement a range of business in venture capital. In addition, he wrote legis- development and retention programs. From lation creating the Ben Franklin Technology 1995 to 1996, she served as the senior director Partnership, which is dedicated to advancing of business development for Michigan First, the Pennsylvania’s focus on technology in the eco- state’s public/private business attraction and nomy; and he wrote legislation to encourage marketing organization. From 1980 through 1990, industrial land reuse and to transform abandoned she was the executive director of the Independent rail rights-of-way into trails and green space. Business Research Office of Michigan. Housed within the school of business at the University Murphy served in the Peace Corps in Paraguay of Michigan, the office was created as a public from 1970 through 1972. He is a 1993 graduate policy research resource for small business of the New Mayors Program offered by Harvard interests. Southon wrote federal, state, and University’s Kennedy School of Government. foundation grants resulting in awards in excess He holds a master of science degree in urban of $55 million. studies from Hunter College, and a bachelor of science degree in biology and chemistry from Southon served on the professional development John Carroll University. committee that created the International Eco- nomic Development Council (IEDC) professional He is an honorary member of the American certification program. She assisted in the devel- Society of Landscape Architects; a board member opment of the curriculum for the marketing of the Pennsylvania League of Cities and Muni- business attraction and the strategic planning cipalities; and a board member of the National modules, and served as an instructor for both Rails to Trails Conservancy. He received the courses. She worked with the IEDC advisory 2002 Outstanding Achievement of City Livabil­ services program on regional economic devel­

34 An Advisory Services Panel Report opment, state business attraction, and strategic planning presentations. Sue has also trained on behalf of IEDC for the Economic Development Institute and the National Association of Work- force Boards. Southon is a regular volunteer for IEDC’s Gulf Coast Recovery Program.

Southon is also technical assistance provider for the Michigan State Housing Development Authority, Detroit and Michigan LISC, and is a HUD-certified HOME specialist. She holds bachelor’s and master’s degrees from the University of Michigan.

Galveston, Texas, May 31–June 5, 2009 35