The Triad an Interconnected Web

The Triad An Interconnected Web

September 2013 Southside Neighborhood : Greensboro The Triad An Interconnected Web

orth Carolina is blessed with a collection of metropolitan areas as diverse as its landscape. Traditional areas with one prime center Nlike Charlotte exist alongside polycentric metropolitan areas like the Triangle, which encompasses several large cities and a web of medium cities and small towns.

The Triad is another example of a polycentric metropolitan area. It is home to three of the top ten highest-populated cities in the state: Greensboro, Winston-Salem, and High Point rank third, fifth, and ninth respectively. Access to three large cities within a 30 minute drive is unique in North Carolina to the Triad, and rare by any standard of the majority of states in the country.

The proximity and growth of these cities can be tracked to its three major industries: tobacco, cotton, and furniture. The fingerprints of these industries can be found throughout the Triad. Even some of the smallest Sponsored by: of towns can credit still-operating factories as their base industry; others have converted their historic factories to new uses which have been key revitalization efforts. While the Triad has strong business centers and a diverse housing stock, this history of industry is the fabric that makes this region of North Carolina unique and sets it apart from Charlotte and the Triangle.

Research Credit: The study area for the Triad is immense. It’s a wedge-shaped area that spans from Mt. Airy and Surry County in the northwest to Burlington and Alamance County in the east and Lexington and Davidson County at the southern tip. If the same area were dropped over Buffalo, NY, it would cover the Buffalo metro and span from Lake Ontario to the Pennsylvania border. If it were dropped over Connecticut, it would cover the entire state. It’s hard to believe that if a commuter were to make a drive from one side to the other along I-40, it would be equivalent to driving from Rhode Island to New York.

2 Southside Neighborhood : Greensboro

The future of this region has been part of an ongoing study called Piedmont Together, which is a partnership of the Piedmont Triad Regional Council and the Piedmont Authority for Regional Transportation (PART) that is funded through the U.S. Department of Housing and Urban Development, Office of Sustainable Communities. Above: Map of North Carolina counties Piedmont Together asked Urban3 to complete a “per acre” analysis that with Piedmont Authority for Regional Transportation (PART) shaded in red. would help area citizens, public servants, and officials better understand revenue analysis by land use type. Inset: The same area transposed by New England and Long Island. Note that PART is as big as Connecticut. Maps Why Per Acre? above and inset are not the same scale. Often times municipalities look at land development on a “per unit” or “per project” basis. Though this is an accurate measure of the revenue or expense of the project, it doesn’t allow for measuring land-use patterns that vary in size or scale. Urban3 promotes this methodology to gauge the relative revenue production of different property types—much in the way we gauge efficiency of cars on their gas consumption, where gas is a finite commodity. Just as miles per gallon becomes the bellwether for fuel efficiency, value per acre is a way to compare the revenue production of real estate patterns. Using value per acre, a municipality can determine how the revenue is being produced to pay for community services. And for a county, city, or town, acres are a finite commodity.

When assessing value of commercial areas in particular, analysis has traditionally looked at the value of one building, one business, or one development (such as a mall) and compared it to another. In doing so, large land-hungry stores on the edge of a community—which cover significant acreage—will always appear more valuable than a downtown building (whose lot might only be a tenth of an acre). This method also ignores the tremendous infrastructure that is necessary to access the larger site and to get around it. So, just as we don’t compare the fuel efficiency of automobiles by how far a car can go on a tank of gas, 3 A Great Experiment

For thousands of years, human settlements were scaled around the predominant transportation technol- ogy of the day: walking. This impacted the way streets were scaled, the way buildings were spaced and the way public areas were utilized. The approach to building places for people who walked was estab- lished by trial and error over millennia. It was a system that was optimized by experience.

Beginning in the early 20th Century and then accelerating after World War II, America undertook an approach to building places based on the newly predominant mode of transportation: the automobile. New building styles were developed, new ways of locating and separating uses implemented and a new approach to growth adopted. These systems were based largely on the theories of academics and intel- lectuals, people who had studied how to deploy a new way of thinking to address the perceived deficien- cies of the historic development pattern.

Initial results were largely confirming. New growth generated windfall gains for local governments and provided much needed jobs for a generation that had lived through hardship in the Great Depression. As time went on, however, the nature of these financial exchanges started to become evident.

When the federal or state governments, the DOT or a developer pays for new infrastructure, it costs the local government very little to create new growth. The day to day burden of maintenance, however, falls largely on local governments. Since that burden doesn’t come due for two decades or more after each new growth project, it creates an illusion of wealth as new tax revenue pours in but distant obligations go unaccounted for.

Today, what seems the normal way of doing things is, in reality, a very young experiment. Just sixty years – two generations – of building in this new style has passed. Local leaders struggle today to make good on those distant and unaccounted for obligations of prior generations. The answer developed dur- ing this experiment – induce new growth – is proving insufficient.

What we are now finding is that our cities are not burdened by a lack of growth but by decades of unproductive growth. When the long term service and maintenance obligations from new development exceeds the cumulative amount of revenue that new development generates, an insolvency crisis is un- avoidable.

So what do we do now?

Instead of pursuing growth for growth’s sake, local governments need to pursue growth that is financially productive, places that generate more revenue than overall expense. It is no coincidence that, as we study the Piedmont Region, we find that the places built in the historic development pattern fit this objective while those shiny, new places we think of as “growth” don’t quite measure up. These insights are valuable data to policy makers and the public when they are trying to understand why the current approach is not working and then develop strategies that do.

All of the cities we studied are blessed with areas that are financially strong and productive.These places form the foundation of a healthy, prosperous and productive Piedmont.

Charles L. Marohn, Jr. PE AICP President and Co-founder Strong Towns 4 we can’t compare the value of buildings or businesses to a community solely by their total tax value without consideration for the amount of land they are using.

By analyzing property based on its value per acre, we can normalize the value of all land to the acre. This analysis can compare property value in a whole new—and much fairer—light.

Urban3 and Piedmont Together created a set of maps based on value per acre. The higher values per acre were given a hotter red color while those patterns of lower value per acre received a cooler green color. One glance at the map paints a familiar picture. You generally find the more valuable, productive lands where you would expect to: in the bigger cities. It is easy to spot Greensboro, Winston-Salem, and High Point. Smaller towns that have some properties generating similar values per acre as those found in the downtowns of their bigger city brothers and sisters are also apparent on these maps.

An MRI of the body gives you an overall picture of your larger health, but it can also be a lot of data to look at. The same is true of this regional map. The map is helpful, but most citizens are familiar with their own neighborhood or community. As more localized maps are produced, it allows for a finer grain of analysis, and a deeper understanding of the land-use effect in each community—much in the way that that same MRI would be easier to read of your wrist, rather than the whole body. The relationship to the region should also serve as a reminder of the connection that the smaller parts have upon the region: the neighborhoods build to towns and cities and the cities become counties and regions.

For the purposes of this study, Urban3 focused on five municipalities: Greensboro, Winston-Salem, High Point, Burlington, and Lexington. Though the cities vary in shape, population, land area, economic base, and to some degree, culture, there are more similarities than differences. Indeed, there are lessons that transfer across communities that should be acknowledged and shared. In order to maintain brevity in the report, the following will discuss the key opportunities and challenges of each community, with a brief view of the highlights found in each location. PART has maintained a larger analytic set, as well as all of the larger presentations that were delivered to each community.

5 Value Per Acre Key Index

Map of North Carolina counties with Piedmont Authority for Regional Transportation (PART) mapped as “Value Per Acre” index to reflect the proportion of tax production within each County, and across the entire area. Notable across the region are the values of the downtowns across the region are clearly legible in their value, and with that, the production density of property taxes. Not only are the large cities, such as Greensboro and Winston-Salem, but the downtown in smaller towns such as Lexing- ton, Burlington, Mt. Airy, and Asheboro.

6 Greensboro Greensboro is the largest city in the region. At 273,425 people, it is slightly ahead of Winston-Salem at 229,617 and High Point at 105,753. Greensboro has developed—like many other large cities over the past several decades—with the commercial and industrial sectors following expansions in infrastructure. But also like many cities, Greensboro is experiencing a renaissance in and around its downtown brought about by changing demographics, financial tools like Historic Tax Credits, and leadership from downtown management entities like Downtown Greensboro Incorporated. Downtown management entities add value to the area through Below: Three dimensional model various economic development programs and other initiatives. They demonstrating “Value Per Acre” for all also promote leadership and a more central focus for improvement. of Greensboro city limits. The scale corresponds with the larger value/acre When considering the value of a downtown like Greensboro, it helps map key index, but converted in a vertical to think in terms of a portfolio value. Downtown Greensboro is worth “height” dimension. The model dem- over a Billion dollars in public and private real estate. With a value onstrates the potency of parcels in and around downtown in property tax genera- of this size, downtown is a crucial asset that should have an active tion. The most productive properties in portfolio manager to take care of the area. Just to talk about the the CBD are shown in purple. private sector real estate is talking about many Millions of real estate

7 Comparing the Value of Housing

value. This isn’t to slight the cultural, historic, and civic importance of downtown, but at its base, downtowns are highly efficient points of commerce. For all of the cities studied pound for pound, or acre for acre, the downtowns were by and far the most productive generators of property tax value. This is easiest to see when one converts the data into a three-dimensional tax model of the “value per acre,” which also proportionally demonstrates the tax production per acre.

There are many notable examples of revenue production within Greensboro. One obvious example is the Center Pointe Building, which leads the value set at $376,067 of Guilford County property $4,121,739/acre taxes per acre, one of the highest in the region. By contrast, the Southside Townhouse Koury Center and Friendly Plaza generate $9,586 and $4,385 per acre respectively. Surely a tower would generate this kind of revenue production, but there are other revenue generators that are star producers in their own right. Several examples of mid-rise infill exist throughout downtown, like 360 South Elm which produces $74,204/acre in Guilford County property taxes. By this measure, the property tax production of one 106 acre Friendly Mall shopping district would be matched by just 7.5 acres of 360 South Elm Street buildings. This project is at the cusp of a larger “Southside” district that is a veritable toolbox of infill projects, and development typologies that should receive their own study, as they are excellent examples that can be applied throughout the entire region. In fact, these smaller buildings demonstrate the power of context, proximity, and density. They validate a market demand and market niche that is often overlooked in most municipalities. The entire southside $14,374,490/acre district is a little over 11 acres and the mixed-use townhouses 360 South Elm are realizing an average assessed value of $4M/acre. Like the comparison above, one would need only 2.2 acres of Southside townhouses to equal the property taxes generated by the 15.6 acre Kmart Plaza on Wendover.

$17,288,079/acre 324 South Elm

Left: The relative “Assessed” values of housing around downtown Greensboro. 8 Although we have seen that downtown developments are the most valuable in the community, Greensboro’s downtown core is separated from the rest of the district by underperforming parcels. Greensboro should continue to reconnect the downtown beyond the core. Lower-rise buildings may provide the necessary boost of density and property tax revenue to fill the voids east of downtown and north toward the NewBridge Bank Ballpark. When a community considers an investment in any part of town, the net effect of that investment should be weighed by the most relative impact. Something as small as mending a neighborhood on the Southside has realized millions in private reinvestment in the downtown, and yields a many-fold return in the tax base. Like any portfolio, the investment must take into consideration the long term effect and goals of the investment, and add value to the larger whole where you get the biggest bang for the buck.

County Property Tax Production From Guilford

9 Left: Three dimensional model demonstrating “Value Per Acre” for all of Winston-Salem city limits. The scale corresponds with the larger value/ acre map key index, but converted in a vertical “height” dimension. The model demonstrates the potency of parcels in and around downtown in property tax generation. The most productive properties in the CBD are shown in purple.

Winston-Salem Looking Back Once the largest city in North Carolina, Winston-Salem has transitioned well despite economic and demographic challenges. Its signs of rebirth are tied to the icons of its past. Many of the landmark downtown factories are being given new life as high-tech office centers, lofts, and mixed-use buildings. Their presence gives Winston-Salem a post-industrial feel that is unparalleled in North Carolina, and arguably, the entire South. It is within its uniqueness that Winston-Salem is capitalizing on its future.

The size and scale of its downtown is also unparalleled. Winston-Salem’s approach of breaking the overall area into districts is working, as the areas will need their own identity to grow as sub-areas of the larger whole. Within these districts, a variety of infill projects enhance the repurposed structures. Less concentrated than Greensboro’s Southside district, infill and renovated buildings are filling gaps in the downtown fabric. Several buildings are demonstrating the impact of generating increased property tax revenues, including the 4th Street townhouses, 851 4th Street, and the IMG Building which are producing $12,115, $54,081, and $93,910 in Forsyth County taxes per acre respectively.

10 The size of Winston-Salem’s downtown isn’t its only challenge. The area of Winston-Salem has grown within Forsyth County, and much of that area is yielding relatively low property taxes per acre. As an example, newer retail areas have been added such as the Peters Parkway. Though they may indeed provide more access to retail, the level of contribution in property taxes is somewhat modest with the Lowes and Walmart producing $2,818 and $3,473 respectively in County taxes per acre. Additionally, introduction of new retail impacts existing retail. Those properties left behind tend to lower in value, and hence, production of community revenue. It is notable that the Kmart property yields about a third of the Walmart property’s taxes per acres, producing a paltry $1,167 per acre. The average Winston-Salem single family resident produces more county taxes per acre at around $2,043.

Forsyth County is leading the area in looking at the value of development in a new light. The Forsyth County Planning Department has incorporated the “per acre” method into its comprehensive plan as a model of growth management and analytics. Economic analysis is a staple in planning in many states, and was a basic part of city planning when the profession emerged in the 1920’s. Forsyth’s model policy moves the community forward by looking back to best practices in planning. This consideration is important so that the community can prioritize capital investment in areas of high productivity. For instance, the 1 Park Vista mixed-use project is about $17.5 Million in value on just 0.3 of an acre. If the community were to see 3.7 acres of developments like this, it would yield the same property taxes as the 103 acre Hanes Mall.

Legacy Value

Models of architecture and land-use exist within Winston- Salem demonstrate the relationship of design and density to the potency to the community as a revenue source. Not only is the potency demonstrated, but the these values are produced for over a century, while other land uses are not only producing low levels of revenue density, but they are typically not designed to last more than one useful life. In 2013, 0.5 acres of 612 Main, or 0.1 acres of Old Wachovia would equal the property taxes of the 11 acre Kmart property. 612 S. Main Street Old Wachovia Bank Kmart Site $5,513,091 /Acre Value $22,509,981 /Acre Value $254,237 /Acre Value Built: 1867 Built: 1911

11 Winston-Salem is on its way, cultivating its wealth with steadily guided projects that incrementally mend the fabric of the community back to its recognized whole. As it grows, the community must realize that the benefits to the larger city far outweigh the complexity of dealing with a large downtown. The portfolio needs to be managed to detail how the community becomes closer to its original physical character and scale. Winston-Salem has much to build upon and its past is a great guide to its future.

Note: Forsyth County was under a revaluation at the time of this study. What is reflected in the chart may change, particularly for residential property in the downtown, such as 1 Park Vista.

County Property Tax Production From Forsyth

$300,000Forsyth County (Winston-Salem) Property Tax** Revenue Proﬁle: 2013 Tax Yield per Acre

$250,000 $279,244

$200,000

$150,000 $104,685

$100,000 $93,910 $81,358 $54,081 $44,867 $42,496

$50,000 $40,552 $30,449 $25,639 $15,115 $12,115 $8,757 $10,069 $5,014 $4,331 $2,043 $2,818 $3,473 $1,167 $1,558 $0 Kmart Lowe’s Costco Walmart City S-F* 851 4th St. Hanes Mall (Old Salem) Sam’s Club Sam’s (Peters Pky) (Peters Pky) RJ Reynolds Gallery Lofts IMG Building 4th & Liberty 854 W 4th St. 612 S. Main St. Old Salem (Total) County Res. S-F* 1 Park Vista Lane 1 Park Vista Old Wchovia Bank Residential Commercial Mixed-Use 4th St. Townhomes 4th & Broad Condos 4th & Broad Winston Factory Lofts *Average values per Forsyth County Assessor File Joe Minicozzi,AICP : Asheville NC ** Excluding schools portion 12 Left: Three dimensional model demonstrating “Value Per Acre” for all of High Point city limits. The scale corresponds with the larger value/ acre map key index, but converted in a vertical “height” dimension. The model demonstrates the potency of parcels in and around downtown in property tax generation. The most productive properties in the CBD are shown in purple.

High PointHigh Point is the third largest city in the sample set, and the second largest city in Guilford County. Though it lives in the shadow of its bigger sister Greensboro, High Point is capitalizing on opportunities to expand its own tax base. In fact, as noted in the 3D models, the downtown is indeed producing revenues that put it at the scale of downtown Greensboro. The bad news is that the step from downtown out into the rest of the community is very dramatic. Herein lies the opportunity.

High Point has what a lot of communities work really hard to capture - authenticity. This hometown to John Coltrane has a long and rich history in the furniture industry, and like the swallows of Capistrano, the furniture “Market” returns to downtown High Point twice a year. No other downtown on the planet has the density of private sector showrooms per capita. Though these are outliers that skew the model upward, they do pay taxes at the listed rate per acre. This is a good thing. The opportunity missed is capitalizing on the rest of the year when Market isn’t in session. This will help those properties between the large display buildings.

High Point recognizes this and isn’t resting on its laurels. The City Project is spearheading discussions and kicked off a planning effort to do this very thing. Additionally, High Point University is seizing an opportunity at the periphery of the city to reimagine its campus as well as increase its already impressive relationship with the community. 13 High Point has a lot to build upon, and there are lessons to be learned from her big sister Greensboro. Projects like the Southside and even 360 Elm could be realized in and around downtown, but considerations should be given through the overall plan to building a mixed-use base that is year- round and capitalizes on High Point’s center-of-the-universe status for the furniture industry. If just under two acres of Greensboro’s 360 Elm Street existed in High Point, it’d equal the entire property tax production of the over 62 acre Oak Hollow Mall. In addition to improving value, buildings like these would provide an opportunity for residential within downtown. Additionally, areas around the core of downtown could look to Greensboro’s Southside project or the 4th Street Townhouses in Winston- Salem for models of high density, high tax revenue yield real estate that comes in a lower-rise format. Getting people living in and closer to downtown is another way to spur market demand for entrepreneurs of eateries and entertainment, typically found in downtown quarters. $150,000

County Property Tax Production From Guilford $125,000 Guilford County (High Point) Property Tax** Revenue Proﬁle: 2013 Tax Yield per Acre

$100,000 $106,505 $104,778 $96,019

$75,000

$50,000 $36,243 $52,224 $27,354

$25,000 $23,385 $16,057 $3,196 $3,018 $3,018 $2,053 $2,438 $2,066 $1,790 $0 C&D IFHC Kmart Lowe’s Walmart City S-F* County S-F* Rush Fitness 134 N Main St. 209 S. Main St. 164 S. Main St. 203 N. Main St. Oak Hollow Mall 317 W High Ave 151 W High Ave

Residential Commercial Mixed-Use

*Average values per Guilford County Assessor File Joe Minicozzi,AICP : Asheville NC ** Excluding schools portion 14 High Point can benefit from the fact that the market for urban forms of residential and mixed-use has already been proven in the market. Indeed, many individuals that work in High Point live in those products in other communities.

High Point is turning a corner, and the fact that leadership has formed and plans are underway is a great step toward improvement. High Point University’s plans must also be integrated in future plans for a downtown. As we have seen in many other successful downtowns across the state, young and artistic members of the community help patronize downtown businesses, but also provide the lifeblood of city regeneration. The key is integrating the future leadership into decisions with today’s leadership. All of the ingredients of success have been prepared to move High Point forward, and build upon its authentic assets.

Value Scale Guilford County is blessed with two of the top ten largest cities, in population, in the state. This is parallel to how the Triad is shaped overall, as Winston-Salem is very close in proximity. The study provided an ability to scale the relative values of High Point with Greens- boro, as a comparative. The model (below) shows the two cities side-by-side. Notable from the model, High Point has a high density of value potent properties in the downtown (in purple), as well as Greensboro. Yet what Greensboro shows in a greater value density, but also a broader expanse of mid-level density.

15 Left: Three dimensional model demonstrating “Value Per Acre” for all of Lexington city limits. The scale corresponds with the larger value/ acre map key index, but converted in a vertical “height” dimension. The model demonstrates the potency of parcels in and around downtown in property tax generation. The most productive properties in the CBD are shown in purple.

Lexington Lexington is the county seat of Davidson County, and the southernmost city in the study. It is located along the I-85 corridor between Charlotte and Greensboro. Originally settled in the 1700’s, and named in honor of the site of the first battle of the revolution, the commerce initially centered around rural trade and mining operations. Like many of the communities throughout the Triad region, Lexington transitioned into textile and furniture manufacturing in support of regional (and national) industries. Like many of the cities in the region, those industries have transitioned out of the region, and Lexington is taking active steps toward its future.

Of the sample set, Lexington has the smallest and least developed downtown. Most of the core of downtown is a six- to eight-block area based around two historic squares at the intersection of Main and Central. Lexington has also maintained a managed presence in the downtown with Uptown Lexington operating as a Main Streets organization. Uptown manages a series of programs, most notably the ‘Pigs in the City’ program, an tribute to the city’s status as the “Barbecue Capital of North Carolina.”

Though downtown Lexington is a small district, it is incredibly potent. As noted in the 3-D model, it is immediately evident. What is also evident from the model, similar to High Point, is how the valuation around Lexington ‘flattens out’. This is both a challenge for the community and an opportunity. What the flattening demonstrates is that large areas of Lexington produce low levels of tax revenue on a per acre basis. With this, these properties consume larger quantities of public services, yet 16 return lower levels of revenue when spread across the entire parcel. Again, like High Point, there are opportunities to ‘grow the values up’ in areas in and around the core of downtown. Additionally, Lexington already has successful examples of this in what it has accomplished in the core of downtown. In fact, Lexington already has plans to do this over to the train tracks at Railroad Street. A series of buildings are planned for revitalization, with the creation of a mixed-use complex along the tracks. This catalyst project, if accomplished, will add for value density in an area that is currently relatively low level revenue return. A key detail of this project will be making the pedestrian realm, between the core and this project, feel seamless and inviting.

Of the sample set, Lexington has the lowest amount of tax-exempt property in the core, with about 26% non-taxable. This was somewhat surprising for a County seat. Though it is not recommended to have more than 40% taxable, Lexington’s low level reflects the location of government offices being located outside of the core. When offices are located outside the core, it makes entrepreneurial opportunities for shops and retail more difficult because of the lack of nearby employees.Though it could be argued that the decentralization is more affordable, or is more auto-convenient, Lexington should weigh the cost-benefit of those decisions. Downtown’s thrive in a “park once” development pattern, where a pedestrian may achieve many needs within a 5 minute walk. The key is making that experience seamless and removing dead zones. The pedestrian experience in the core area of Main and Central is well executed, but once one leaves that area, the pedestrian realm deteriorates.

Lexington knows what works and the proof has produced dramatic results. The key will be building off successes and rehabilitating structures that still have vacant upper stories, as well as dealing with large retail uses. A

Legacy Value Models of architecture and land-use exist within Lexington demonstrate the relationship of design and density to the potency to the community as a revenue source. Not only is the potency demonstrated, but the these values are produced for over a century, while 15 N. Main Street 18 S. Main Street other land uses are not only producing $1,614,754 /Acre Value $2,994,494 /Acre Value low levels of revenue density. In 2013, 1.5 acres of 18 Main would equal the property taxes of the 17 acre Lexington Shopping Center. Additionally, results Lexington Shopping Center from the study suggest that significant $255,723 /Acre Value returns in tax base could be realized with activating the upper stories of downtown buildings like 15 N. Main.

17 sample of buildings that could benefit from revitalization are the 3-story 1 South Main and 15 North Main Street. Those buildings are assessed at $1,422,231 per acre and $1,614,754 per acre respectively. By contrast, the renovated 2-story 18 South Main Street is $2,994,494 per acre. So a 2-story building is producing double the revenue of a 3-story structure because of restoration.

To use 18 South Main in another example and understand their potency; if Lexington had 1.5 acres of buildings like it, that area would achieve the same property tax production as the Lexington Shopping Center. There are examples of retail throughout Lexington which deserve a broader strategy. Like other communities within the study, the retail pattern has cannibalized itself within the community to some degree. Since the introduction of the Walmart, other centers have dropped in value, and with it, a lower level of property tax production. Walmart’s assessed value per acre is a little under $448,000 while the Davidson Plaza is around $292,000 and Lexington Shopping Center is $256,000. $30,000 County Property Tax Production From Davidson

$25,000 Davidson County (Lexington) Property Tax** Revenue Proﬁle: 2013 Tax Yield per Acre

$20,000 $22,283

$15,000

$10,000 $10,900 $5,878 $5,177 $5,000 $3,860 $2,961 $2,791 $1,647 $1,630 $1,288 $1,062 $931 $720

$0 Lowes Walmart City S-F* 1 S. Main Lexington 100 N. Main 15 North Main 102 S. Main St. Davidson Plaza Warner Building Warner County Res. S-F* Shopping Center Shopping Center New Bridge Bank 18 South Main St. Residential Commercial Mixed-Use

*Average values per Davidson County Assessor File Joe Minicozzi,AICP : Asheville NC ** Excluding schools portion 18 BurlingtonLocated at the eastern edge of the Triad region, Burlington has capitalized on its position midway between the Triangle and Greensboro/ Winston-Salem. It is the largest city in Alamance County and like other communities in the region, its commerce grew around textiles and agriculture. What distinguishes Burlington from its small town peers is that it has a rich history of industry diversification from railroad based businesses and into tech and aircraft industries.

Central to downtown is the largest employer in Burlington, LabCorp. LabCorp has a traditional headquarters in downtown, but it has also taken over many buildings in and around downtown. A quick walk around, and it almost appears as if LabCorp is in every building downtown. This is both a opportunity and a challenge for Burlington.

It is great to have high occupancy and stable workforce. This provides for a high population of daytime workers in and around downtown. Downtown Burlington recognizes this, and like its sister cities in the study, Downtown Burlington serves as the catalytic management group focused on long term revitalization of the downtown. Many cities don’t have the benefit of large scale employment in the downtown outside of public sector employment. Additionally, LabCorp is an active part of Downtown Burlington. Expanding downtown’s diversity by attracting complementary businesses that engage LabCorp, increasing retail/dining opportunities, and expanding opportunities for housing are all opportunities that are within reach of Burlington. 19 The challenge is that several of the buildings are occupied with offices on the ground floor. Office uses on the ground level of downtown buildings challenge pedestrian activity. Retail studies show that pedestrian will turn around when they reach 75 feet of dead/inactive frontage. It is understandable that office employers like LabCorp shouldn’t get into the restaurant industry, yet they shouldn’t preclude those opportunities from happening either. Additionally, when an entrepreneur moves into this position, attention should be given to maintaining the continuous retail presence in order to provide for a diversity of dining, shopping, and entertainment options for the pedestrian.

Downtown is a fairly intact set of buildings, and the community is actively engaged in the Main Street’s “4 Principles” program. In addition to those elements of design and management, consideration should be given to the one-way network of streets. The street network may be contradicting the design patterns necessary to a thriving pedestrian space. Though one-way street systems are productive at moving cars, lessons from 4th Street in Winston-Salem and Elm Street in Greensboro demonstrate the effect of

County$70,000 Property Tax Production From Alamance Alamance County (Burlington) Property Tax** Revenue Proﬁle: 2013 Tax Yield per Acre

$58,333 $60,151 $54,997 $46,667 $44,002 $35,000

$23,333 $14,638 $22,508

$11,667 $9,707 $3,372 $2,277 $2,300 $1,537 $1,091 $1,082 $1,122

$0 Lowe’s Atlantic Walmart City S-F* 458 S. Main Wells Fargo Wells County S-F* Holly Hill Mall Bank & Trust Coat Factory LAB Corp HQ JR& Burlington 111 Maple Ave 123-143 E Davis Alamanc Crossing Residential Commercial Mixed-Use

*Average values per Alamance County Assessor File Joe Minicozzi,AICP : Asheville NC ** Excluding schools portion 20 slower two-way traffic. In fact, many cities are considering eliminating one-ways altogether for their urban cores.

LabCorp represents a tremendous case study for the leaders of Burlington. Perhaps LabCorp could survey its workforce for ideas for dining, shopping and entertainment. Burlington could model a recruiting strategy for businesses off information in the survey, and create a win- win for the employees in the process. Downtown organizations like Raleigh Downtown Inc. have similar programs that could serve as a model. The effort will be worth it, and may help to expand options for downtowns growth. Additionally, the survey should pose the question of whether individuals would live in downtown in lofts, townhouses (like Greensboro’s Southside), or in mixed-use buildings. These market desires won’t be for everyone, but even if there is a small segment of employees in the company that would like that option, it would still benefit builders to know this demand. Having this data will be very helpful for the development community to better understand the market opportunities.

Burlington could also evaluate its recent growth in purely retail development patterns. Though the Alamance Crossing has become a successful regional retail product, it has come with some localized costs. To some degree, existing retail within Burlington just shifted, and that loss is felt at the Holly Hill Mall, about 5,000 feet away, and the J+R/ Burlington Coat Factory site further east. Though it could be argued that this is a natural transition in retail, for a community the size of Burlington the effect is felt within the retail tax base. For instance, Alamance Crossing is averaging $913,455 in value per acre, while Holly Hill has dropped to $295,479 in assessed value per acre. The J+R/Burlington Coat Factory site has dropped to an assessed value of $293,097 per acre. To put that into perspective, the 3 story LabCorp building at 458 South Main Street (former department store) is valued at $11,918,185 per acre. In other words, 458 South Main is yielding over thirteen times the property tax revenue of Alamance Crossing.

Right: Map image of Burlington’s retail corridor area. A value per acre assess- ment demonstrates the shift of value from older retail areas to the newer Alamance Crossing, less than one mile away. For purposes of perspective, 458 S. Main Street (below) is valued at close to $12 Million per acre.

Alamance Crossing Holly Hill Mall 96.39 acres 40.2 acres $913,455/acre $295,479/acre Piedmont Together

Though this report is regional in focus, the stories of the downtowns clearly show through the maze of data. The health of the downtowns in the Triad paint a picture of history and culture, but also a story of resilience and community wealth. For the Triad, all of the communities are regionally connected, but generally independent economically. With the transition of industry and commerce affecting the entire region, those communities that build upon their authenticity and independence that is at the root of each community’s history will benefit in the creation of a sense of place that can maintain a more resilient future economy.

It should be noted that what is good for the downtown is great for the town or city, but it is incredible for the County and region. Downtowns produce a tremendous amount of county property tax and they provide unparalleled efficiencies of commerce and transportation. As the region considers its future as a connective web of places, pulling on the strings of that web will inevitably lead to a downtown core. They are the identity of each community and they build a tapestry of the region. The revitalization “What is good for the efforts that have been achieved in the cities and towns in the study have downtown is great for demonstrated tremendous value returns to the communities, which enable the town or city, but more community revenue to be realized. As each place looks to grow its community wealth, it can learn from the region, but also from within its it is incredible for the own boudaries. County and region!”

Joseph Minicozzi, AICP Principal Urban3, LLC

Special Thanks to: This project could not have been accomplished without the consultation and support of Mark E. Kirstner at Piedmont Authority for Regional Transportation and all of the Piedmont Together partners, including the City of Greensboro and Forsyth County Planning Departments, the Piedmont Triad Regional Council of Governments, Ed Wolverton Downtown Greensboro, Wendy Fuscoe and High Point’s City Project, Anne Morris and Downtown Burlington, and The City of Lexington and Uptown Lexington.

Data Sources: County 2013 land area shapefiles for property boundaries and the 2013 propertyAssessment files from the PART Region’s County Assessor’s Office Regional GIS graphic from the GIS website for Piedmont Triad’s Council of Governments. < http://www.nwpcog.org/> Regional Initiatives. Piedmont Triad Regional Council, 2012. Web. 14 Aug. 2013. .