ULI Case Studies

January 2017 ULI Case Studies

Encore QUICK FACTS Location Tampa, Florida Project type Planned Community Location type Other Central City Site size 28 acres Date started 2006 Date opened 2012 Land uses Medical, Multifamily Rental Housing, Museum, Neighborhood/Community Center, Open Space, Restaurant, Retail, Structured Parking, Town Square Keywords/special features Affordable housing, Choice Neighborhoods, District energy, Downtown housing, Green building, Healthy place features, LEED Silver certified, Low-income housing, Main street retail, Mixed-income housing, Multigenerational district, Public housing, Public/private partnership, Redevelopment, Senior housing, Stormwater reuse system, Tax increment PAYTON CHUNG financing, Urban regeneration Encore is a mixed-use, mixed-income public housing redevelopment, with 662 units built to date. These two buildings, Ella and Reed, house low-income senior citizens and front Ray Charles Boulevard, Encore’s main street. Website www.encoretampa.com PROJECT SUMMARY Project address 1210 Ray Charles Blvd. Encore is a mixed-use, mixed-income redevelopment of what had been Tampa, FL 33602 public housing just north of downtown Tampa, Florida, developed by a Developers Tampa Housing Authority partnership between a housing authority and a bank-owned community Tampa, Florida development corporation. Encore currently comprises four apartment www.thafl.com Banc of America Community Development buildings with a total of 662 units of housing, 559 of which are affordable Corporation to seniors and family households with low incomes. At full buildout, the Charlotte, North Carolina baml.bankofamerica.com/creb/cdb LEED for Neighborhood Development Gold–rated community will have up Owner to 1,513 housing units, plus 180,000 square feet of office space, 200 hotel Central Park Development Group LLC Tampa, Florida keys, and a 36,000-square-foot grocery on its 12 city blocks. Over eight Architects years, the $425 million investment will create 5,000 construction jobs and Baker Barrios Architect Tampa, Florida 1,000 permanent jobs on a site that previously supported only 18 jobs. www.bakerbarrios.com Encore uses innovative and efficient districtwide approaches for stormwater Bessolo Design Group St. Petersburg, Florida management and cooling. www.bessolo.com casestudies.uli.org Encore Case Study 1 TAMPA HOUSING AUTHORITY HOUSING TAMPA Encore’s 28-acre site is located just northeast of downtown Tampa, northwest of the Channelside neighborhood, and west of Historic Ybor. The area has a long and storied history as the city’s home for African American business, society, and culture.

Introduction Central Avenue, just north of downtown Tampa, once rang out with song. Its swinging jazz clubs— like the Cotton Club, Apollo Ballroom, Club Chif- fon, and the Blue Room—were where Ray Charles recorded his first albums, Ella Fitzgerald wrote the song “A-Tisket, A-Tasket,” and Hank Ballard spot- ted a fun dance move that inspired him to pen the biggest hit of the 1960s, “The Twist.” Those sounds were lost to the neighborhood for a generation—demolished by urban renewal and drowned out by the thrum of highway traffic, with only a bronze plaque in a neglected park commemorating their absence. Today, after nearly 20 years of planning marked by several starts and stops, Central Avenue again plays an integral role in the life of a thriving central city. Encore, a new and diverse community developed by the Tampa Housing Authority (THA) and Banc of America Community Development Corporation (BACDC), now brings people of all ages and incomes to its homes, shops, squares, and parks—including one built atop a cutting- edge district-scale stormwater basin. Rather than a forbidding housing project, PAYTON CHUNG Encore is now “a catalyst for surrounding de- Public art honoring the neighborhood’s musical heritage welcomes visitors to the adjacent Perry Harvey Sr. Park.

2 Encore Case Study casestudies.uli.org velopment, feeding into surrounding communi- service, is two blocks southeast of the site, and ties,” says David Iloanya, director of real estate the Marion Street transit hub is six blocks to development for THA. What was a neglected the west. Several major streets constitute the area that drivers raced past on their way out rough boundaries of the site: on the west, North of downtown has now become an integral pe- Orange Avenue feeds traffic to Interstate 275; on destrian link between emerging neighborhoods the south, East Cass Street is a principal route such as Channelside, Historic Ybor, and the through downtown; and on the east, Nebraska River Arts District. Avenue is one of the city’s key north–south ar- terials. Nebraska is also the city’s busiest bus The Site and Neighborhood corridor: the area’s first MetroRapid line offers Encore’s 28-acre site sits just northeast of frequent, limited-stop service all day to both downtown Tampa and several blocks south- downtown and the University of South Florida. west of the city’s Historic Ybor neighborhood. The Encore site, formerly Central Park Vil- Union Station, providing Amtrak train and bus lage, was originally settled after the Civil War by PAYTON CHUNG St. James Church, built in 1922, is the centerpiece of Ray Charles Boulevard. It will be renovated for use as a museum.

newly emancipated African Americans. Known as “the Scrub,” it was an informal settlement they built in the scrubby woods just beyond the town limits of Tampa. After rail and steamship service arrived in 1883, the twin cities of Tampa and Ybor blossomed with commerce—particularly in cigar manufacturing and shipping. The city’s prosperity in the early 20th century drew many more African American residents, many of whom were forced by discriminatory laws to settle in and around the Scrub. Central Avenue developed as the primary commercial spine for the area and blossomed with hundreds of businesses. By day and es-

TAMPA HOUSING AUTHORITY HOUSING TAMPA pecially by night, Central Avenue was the lively Encore’s neighborhood was hard hit by urban renewal. From 1954 to 2007, the site was an isolated public housing heart of a thriving community. project called Central Park Village. As was the case in many other African American business districts across the country, waves of urban renewal tore apart the neighborhood in the post–World War II years. In 1954, the heart of the Scrub, an area packed with overcrowded frame houses, was leveled to build the 483-unit Central Park Village public housing development. Freeway construction in the early 1960s sliced Central Avenue in two, and disinvestment followed as integration opened new opportunities elsewhere. The simmer- ing summer of 1967 delivered a final shock: a police-involved shooting resulted in three days of riots and arson, leaving dozens of businesses in ruins. Central Avenue’s last business closed in 1974, and the city moved to level the area for a park and six-lane freeway ramp. In 1978, Perry

TAMPA HOUSING AUTHORITY HOUSING TAMPA Harvey Sr. Park opened, and Central Avenue’s Central Park Village was difficult to maintain and police. heyday was just a memory. casestudies.uli.org Encore Case Study 3 The Idea Central Park Village’s 1950s-era superblock layout isolated the community from its surroundings, and the cement-block buildings had inad- equate heating and mechanical systems from the beginning. By the 1990s, the buildings required a substantial overhaul or complete redevelopment. “The downtown site lends itself to greater densities” than the previous low-rises, says Leroy Moore, THA senior vice president and chief operating officer. Yet Tampa was also committed to maintaining the Scrub’s long history of providing a centrally located gateway to greater opportunity. “Unlike other cities, we’re not going to move vulnerable people away from the cultural and transportation hub,” Moore continues. “The Encore site is rich in jobs and transportation and entertainment.” By building it back to the scale warranted for a downtown neighborhood, he says, THA could maintain or even expand affordable housing opportunities near downtown.

Mixed-use development at Encore could PAYTON CHUNG expand opportunity further by bringing job op- Ella and Reed, two apartment buildings for seniors, front Encore’s town square. Each is designed to reference the neighborhood’s heritage. portunities to the site. Tremendous growth had taken place in the 1990s and 2000s all around financing (TIF) looked irresistible—especially plans statewide. By the time the court reversed Encore: a nationally renowned entertainment for a site then paying no local property taxes. An itself a year later, the damage had been done: district emerged amid the old cigar factories of ambitious plan emerged whereby Central Park the Great Recession had pulled property values Historic Ybor to the east, and thousands of resi- Village and its surroundings would sprout nu- in the Tampa area down 40 percent from their dents moved into converted lofts and new high- merous condominium towers, spinning off $250 2007 peak, and downtown condominiums were rises in the Channelside area just a few blocks million in TIF funds. particularly overbuilt. The CRA only netted a few to the southeast. THA released a request for qualifications thousand dollars a year in TIF funds—not mil- to find a development partner that could best lions, as had been forecast. Development Process leverage resources for Central Park Village. It In retrospect, the delay was a blessing Plans to redevelop Central Park Village began in selected BACDC, the oldest and largest bank- in disguise, Moore says. “Retooling it meant the 1990s, spurred by the availability of fed- owned community development corporation, replacing TIF funds with grant dollars, which eral HOPE VI grants that could help underwrite which had been working in central Tampa since were even better,” he says. “That kept us from development costs. In 2003, Civitas Tampa, 1999. The public/private partnership combines being overleveraged, so we weren’t burdened a local private development firm, proposed a the bank’s access to capital markets and more by servicing debt payments while trying to get 157-acre development encompassing Central straightforward procurement processes with lots sold. . . . We also could retool our program Park Village and neighboring properties, requir- THA’s relationships with local leaders and ac- for the market shift—from condo to rental ing complex land swaps both downtown and cess to service providers, notes Eileen Pope, housing and commercial.” in several outlying neighborhoods, local sub- vice president of BACDC. The recession held another silver lining for sidies, and HOPE VI funding. “The initial reac- In 2006, the city established a community Encore: “When the recession hit and everything tion was denial: the residents didn’t believe that redevelopment area (CRA) to harvest the tax was put on hold, we had the most shovel-ready they’d have the opportunity to come back” to increment from Central Park Village, while THA site in the country,” says Moore. Encore, says Iloanya. The plan ultimately failed began working with 483 families on relocation HUD launched the Neighborhood Stabili- to clear all the hurdles, and instead THA moved and received approval from the U.S. Department zation Program (NSP) as economic stimulus, forward at Riverview Terrace, a different site. of Housing and Urban Development (HUD) for rewarding local government efforts to assist THA’s track record of guaranteeing resi- demolition. By July 2007, Central Park Village neighborhoods hurt by widespread foreclosures dents the right to return to redeveloped housing, was no more and the city was preparing a $28 or abandoned housing. Because redevelop- if they so desire, warmed Central Park Village million bond issue to underwrite Encore’s hori- ment of vacant properties was among the eligible residents to later proposals. A new financing zontal infrastructure. In September, an unex- uses, THA joined the city in applying for NSP plan emerged: after Tampa-area housing values pected state court decision regarding TIF bonds funds. In 2012, they secured a $28 million NSP2 doubled between 2002 and 2006, tax increment halted Encore and scores of other TIF-backed grant for Encore’s horizontal infrastructure and

4 Encore Case Study casestudies.uli.org hoods, created an opportunity to accelerate the multifaceted investments around Encore. “Even before Choice Neighborhoods came about, we were defining what a Choice Neighborhood meant,” says Iloanya.

Public Agency Collaboration The site was long zoned for high-density residential—60 to 100 units per acre—and redevelopment of the site has been a high priority for the Tampa’s past two mayors. A designated point person within the permitting office helps ensure that local permits do not interfere with federal funding deadlines. The multidisciplinary approach of the Choice Neighborhoods program required extensive collaboration among multiple public agencies. The city rebuilt the 11-acre Perry Harvey Park—a five-block green expanse bordering Encore to the west—at a cost of $7 million, half of which was paid for through the Choice Neighborhoods grant.

PAYTON CHUNG The park immerses visitors in the neighbor- Trio, the second building completed at Encore, offers 141 apartments (with one to four bedrooms) in three separate hood’s rich history with several public art pieces, buildings. including three tile murals along the side wall of Encore’s Trio building. The park also includes features like a splash fountain, a festival lawn with a performance plaza, and basketball courts. One obstacle arose when activists were able to get the park’s existing skateboarding bowl placed on the National Register of Historic Places; the park’s HUD funding triggered federal review of plans to replace it. Ultimately, the bowl was laser-measured and rebuilt within a larger skate park alongside pieces of the original bowl. Also part of the site is Christina Meacham School, which was built in 1926 within what would later become Central Park Village. THA swapped the one-acre school site for two acres at Encore’s northern end, where Hillsborough County Public Schools (HCPS) plans to build a middle school. In the interim, the school site is used for a temporary PAYTON CHUNG Resident amenity spaces, like the fitness center at Ella, are located on the ground floor to enliven the street. urban farm operated by the University of South Florida to provide fresh produce to local residents, $10 million to mitigate and prevent foreclosures market’s comeback, says James Cloar, a THA restaurants, and grocers, and learning opportuni- throughout central Tampa. board member. “Concerns about housing afford- ties for schoolchildren. HCPS is also coordinating At long last, ground could be broken on En- ability downtown became critical just as Encore is with THA to bring a Head Start early-childhood core. Once funding was in place for the infrastruc- providing the opportunity for people to move into education center to the ground floor of the Trio ture, conventional housing subsidies could be quality housing at an affordable price.” apartment building. Hillsborough Community Col- arranged for vertical development on the resulting THA had been coordinating with the city lege, one of the country’s largest, will also expand blocks, and construction began within weeks. and county on multiple capital improvements into Encore with a job training center. “The housing authority had the first and in and around Encore in order to ensure that a Across Nebraska Avenue from Encore, Hills only crane in downtown Tampa” after the reces- complete community would be in place when borough County opened a $7 million public sion, says Iloanya. “Our timing actually worked residents returned. The Obama administration’s library that has historical exhibits and special out really well” relative to the local apartment replacement for HOPE VI, Choice Neighbor- collections, a recording studio, and a 350-seat casestudies.uli.org Encore Case Study 5 SITE PLAN TAMPA HOUSING AUTHORITY HOUSING TAMPA Site plan, with numbered development sites. meeting room. Eventually complementing the Street, Hank Ballard Street, and Blanche Arm- marketed by THA for sale to outside developers library’s exhibits will be a museum in the historic wood Street. The development’s new streets for mixed-use development. St. James Church, the only structure remaining and building names honor historical figures The four apartment buildings developed from the days before Central Park Village was associated with the site—whether popular by BACDC and THA at Encore have individual built and now located at the heart of Encore. musicians like Charles and Ella Fitzgerald or designs inspired by the site’s history, says community activists like Armwood and Essie Moore. “Each building has musical references Planning and Design Mae Reed. Landscaping along new or rebuilt and historical references,” he says, as does Encore’s streets divide the site into 12 full-block streets, particularly Ray Charles and Scott, public art placed throughout the site. The mod- development parcels, numbered from northwest emphasizes pedestrian friendliness and sus- ern design language and mid-rise scale pro- to southeast. Ray Charles Boulevard—which tainability with broad sidewalks, native plants, vide a transition from downtown’s high-rises runs from Perry Harvey Park along the site’s and rain gardens. to the residential neighborhoods beyond. Each western boundary to Nebraska Avenue—has Five parcels have been developed to date— building has resident amenity spaces—a fit- a broad landscaped median that is the defin- two as affordable apartments for seniors, two as ness center, a community gathering room with ing east–west axis of the development. Near the mixed-income apartments for families, and one kitchen, a library, a theater, and a computer center of the site, a traffic circle at the intersection with the site’s distinctive consolidated infra- room—and retail space on the ground floor, of Ray Charles and Hank Ballard Street creates structure plant. One additional parcel at the cen- creating activity along Ray Charles Boulevard. a “town square” for Encore. Scott Street runs ter of the site will also be developed as mixed- Each building also has an outdoor pool on a across the northern edge of the site, and East income rental apartments. Parcel 1, in the site’s roof deck above a midblock parking garage. Cass Street runs along the southern boundary. northwest corner, has been reserved for the Encore’s two apartment buildings for fami- Four north–south streets further divide the future Meacham Middle School. Five parcels lies are on the western block of Ray Charles site—the resurrected Central Avenue along- near the site’s southern and eastern edges, Boulevard, facing Perry Harvey Park. The side Perry Harvey Park on the west, Governor along busy East Cass and Nebraska, are being newest apartment building, Tempo, is a boldly 6 Encore Case Study casestudies.uli.org colored seven-story building on parcel 2 that houses 203 apartments, a ground-level retail space set aside for a stage theater and restaurant, and amenity spaces such as a game room and a chapel. Across the boulevard on parcel 7 is the 141-unit Trio, which includes one six- story building along Ray Charles with two four- story buildings behind. Its ground floor also houses a movie theater, a billiards room, an art gallery, and a restaurant. Two apartment buildings for seniors line the north side of Ray Charles Boulevard. Ella, on parcel 3, was the first building completed at Encore. It offers its 160 senior households such amenities as a shuffleboard court and a community garden on the roof deck, plus a movie theater and art exhibition space inside. Next

TAMPA HOUSING AUTHORITY HOUSING TAMPA door on parcel 4 is the Reed, with 158 units and Outdoor amenity decks are located atop parking in the middle of each block. The Reed has a pool and an outdoor an outpatient wellness center. dining area. Parcel 8, at the center of the site, is currently used for construction staging but in the future will be developed as mixed-income residential space by BACDC and THA. Of the five parcels near East Cass and Nebraska avenues being marketed for sale to private developers, parcels 9, 10, and 11 are ap- proved for mixed-use high-rises up to 25 to 30 stories tall, with up to 600 additional multifamily units, 200 hotel keys, and 180,000 square feet of office space. Parcels 5 and 12, located along the Nebraska Avenue retail corridor on Encore’s eastern edge, are intended for retail and office buildings of low- or mid-rise scale; parcel 12 is zoned for a 36,000-square-foot supermarket. The mix of unit sizes and income levels

BAKER BARRIOS ARCHITECT FOR THA within the apartment buildings was largely deter- Five parcels near the southern and eastern edges of the site will be sold to other developers for a mix of uses. Low- and mined by the promise that Central Park Village mid-rise retail space and offices are shown along Nebraska Avenue in the foreground; office space, a hotel, and high-rise condominiums are shown along Cass Avenue on the left. residents could return to Encore. Encore has already fulfilled its original promise to bring back more affordable units than had existed on the site, and also has as many units as the previous development offering three and four bedrooms. Encore has more small apartments than Central Park Vil- lage, in keeping with downtown market demand. Encore’s phasing strategy launched the development with Ella, a building for seniors. “It was a statement to the most vulnerable residents who had been relocated,” says Moore. Fifty-nine percent of Central Park Village households who wished to return to Encore were elderly or disabled and had not been well TAMPA HOUSING AUTHORITY HOUSING TAMPA served by the previous buildings. “A seven- A central utility plant provides stormwater and cooling services for the entire district. At right is the underground stormwater vault, capped by a park and solar panels. At left is the central chiller plant, which can efficiently cool up to story elevator building was not a hard sell” to 2.5 million square feet of space. these long-term residents, he says. casestudies.uli.org Encore Case Study 7 Development of Trio, the second phase and the first family building, involved considerably more legwork because of the lingering stigma involving high-rise public housing for families. Having “families in an elevator building required a lot more education,” Moore says. “Before we started the design, we took resident leaders, board members, and community folks on tours—not just in Tampa, but around the country,” examining new mid-rise and high- rise affordable housing in other cities, Moore says. The tours were meant to figure out “what were the strategies in managing those buildings, in designing larger apartment configura- tions with more bedrooms, and inherent design issues in large buildings—access to play areas, where those large apartments go within the buildings,” he says. PAYTON CHUNG Landscapes and streetscapes are designed with water use in mind. The neighborhood is aiming for LEED ND Gold Design, and especially management, can certification, and individual buildings are certified LEED for New Construction Silver or Gold. help minimize conflicts between children and other residents. For example, Trio’s three- son, or can filter into the aquifer. In the facility’s ing running even through a days-long power building layout maximizes the number of cor- several years of use, no stormwater has ever interruption. A second chiller uses a variable- ners, ends, and low-floor spaces available for left the site, nor has off-site water needed to be frequency system to directly feed chilled wa- large apartments. piped in for irrigation. ter into 7,500 feet of insulated chilled-water Building the stormwater vault early on was pipes that reach heat exchangers at each of Sustainability an investment that yielded “a more valuable proj- the buildings. Process water used in the cool- ect and a more urban scale,” Moore says. A sur- ing system is recycled from air-conditioner Encore’s plan targets Gold certification under face stormwater detention strategy for the Encore condensate and drawn from wells rather than the Leadership in Energy and Environmental site would have required six acres of land, taking from the municipal potable water supply. Design for Neighborhood Development (LEED up nearly one-fourth of the entire development In addition to meeting the needs of current ND) program. Each of its buildings has been, or and severing the site’s street grid. The storm and future development at Encore, the system is on track to be, certified LEED Gold or Silver. water vault’s 2,000-square-foot maintenance- has generated inquiries for THA from neighbor- Factors that contribute to the LEED ND rating truck access point is crowned with 99 solar ing buildings about obtaining chilled water. include Encore’s high density, mixed uses, and panels that can generate 23 kilowatts of power— excellent access to transit and neighborhood part of the overall 100 kilowatts of solar genera- Development Finance services. All of the site’s concrete demolition tion across the entire site. Moore notes that the debris was recycled as aggregate for nearby vault and park integrated stormwater manage- As is the case with most affordable housing de- road construction projects, and large oak trees ment into the plan so well that it has become velopments, several sources of subsidies were on the site were retained. As part of its focus on “infrastructure that you don’t have to hide.” combined to assemble the capital needed to build health and well-being, Encore is a smoke-free The neighboring district energy plant also out the site’s infrastructure and the four residen- property. Pope notes that tenants appreciate has a top-line benefit: not only is its opera- tial buildings. The four buildings built to date this, but “sometimes my contractors were not so tion 40 to 50 percent more energy efficient include 662 units; the two buildings for seniors happy with that.” than cooling each building separately, but it both provide 100 percent affordable housing, and The site’s stormwater and cooling needs also frees up building rooftops for resident the two family buildings provide 70 percent af- are handled at one 35,000-square-foot site amenities or revenue-generating photovol- fordable and 30 percent market-rate units. on a sliver of land at the southeastern corner taic cells. The plant has room for three chill- All four buildings have benefited from of the development, next to an electric com- ers with a combined capacity of 4,500 tons the Low-Income Housing Tax Credit (LIHTC) pany lot. The most prominent feature is the of refrigeration—enough to cool 2.5 million program, HUD grants available for replacing 16,000-square-foot “technology park,” which square feet of space. public housing units, HUD project-based con- nearly covers an 18,000-square-foot under- The first chiller installed was a screw tracts that guarantee a certain number of apart- ground sand basin—structured with five-foot- compressor, which fills 500 tons of ice stor- ments for recipients of housing vouchers, and wide concrete cubes—that stores up to 33,000 age tanks behind the building. That supply of state incentives for brownfield redevelopment. cubic feet of stormwater. That stormwater can be ice, produced at night when electric rates are Other funding sources included THA’s capital pumped for use in irrigation during the dry sea- lower, is sufficient to keep the air condition- funds, city housing funds, NSP funds, county

8 Encore Case Study casestudies.uli.org TAMPA HOUSING AUTHORITY HOUSING TAMPA TAMPA HOUSING AUTHORITY HOUSING TAMPA A unit interior at the Ella. Events, like a jazz festival, have built awareness of Encore and its history. tax-exempt bonds, and the Federal Home Loan Beyond the property level, overlapping lay- Pope attributes this to the housing being Bank (FHLB) grant program. ers of governance take care of matters affecting at the right location at a competitive price, Whereas many Choice Neighborhoods Encore. Each building has a two-part condo- with rents below those charged by nearby grants have primarily funded housing construc- minium association, separating retail from resi- luxury high-rises. “You get to live in the city tion, only Tempo received a grant from this pro- dential ownership—separation that is closely . . . in a safe community with good manage- gram. Similarly, Trio was the only building to use tracked because housing subsidies cannot be ment, in a quality product that might not be as the limited and highly competitive pool of 9 per- used for retail spaces. Each condo building, in fancy as somewhere else,” she says. Nor has cent LIHTCs; the other buildings used the more turn, is represented on a master association she found the mixed-income nature of the de- widely available 4 percent credits in conjunction of all Encore buildings. The streets, sidewalks, velopment to deter renters. “People who live with tax-exempt bond financing. BACDC has pipes, and street furniture between the build- in inner cities like diversity,” she says. “They syndicated most of the tax credits through Bank ings are managed by a community develop- understand that there’s economic, cultural, of America, but is free to work with other banks; ment district (CDD), a local authority funded and racial diversity, and are more accepting RBC Capital Markets offered a better price for through a property tax assessment to manage of that.” Cloar notes the remarkable diversity Tempo’s tax credits. public infrastructure on the site. The CDD has achieved so far, with a balance of all races its own board of supervisors and contracts with and ages living on site. Management, Marketing, and Rosetta Management for services. Residents sit The neighborhood-serving retail spaces Performance on multiple boards, including the CDD and the along Ray Charles Boulevard were leased master association, which helps in feeding news through a local broker, targeting a range of “You can easily point out public housing in back into the community. business types that had been identified through most cities, but we’ve worked so that you don’t The site’s marketing and branding draw market studies and earlier public meetings. A recognize our development as public housing,” extensively on the community’s rich history, a generous tenant improvement fund of $500,000 says Iloanya. One critical element of that is hav- particularly distinctive aspect in fast-growing helped attract local entrepreneurs to open shops ing strong management in place, he says. The Tampa. Encore’s ample open space and excel- on site, including a barbershop, Latin American buildings at Encore are all managed by the same lent regional accessibility make it a good site for restaurant, and a sports bar. firm, JMG Realty, which was selected in part public events that can “bring awareness to the Several of the developer parcels have because of its experience with mixed-income site and help to integrate it into its [downtown] been under contract in the past, but those populations and its understanding of complex context,” says Iloanya. Events, staged through sales did not close. In particular, past grocery mixed-income financing stacks. Many of the the mayor’s office or a public relations firm, proposals have stalled over designs that did financing sources stipulate differing levels of af- have included a jazz festival, a bicycle race, and not meet Encore’s urban design standards. fordability, which complicates accounting. food truck rallies. For the 2016 holiday season, “It’s key that we stay with the consistent Thus, Pope likes to engage property man- Encore hosted Metropolitan Ministries’ Holiday vision that we set up instead of circumventing agement companies even while the financing is Tent, which draws tens of thousands of volun- it—however long it takes,” says Iloanya. coming together. Property managers’ feedback teers, donors, and recipient families to its one- A new marketing effort for development can be critical during design as well, she adds. stop holiday giving destination. of the remaining parcels is to begin in “I like them to be part of the value-engineering One result of the marketing efforts has been February 2017, with an open-offer period process,” she says. “They need to understand very strong absorption for Encore’s market-rate to follow. Moore says proposals will be why you did or didn’t do these things so that it’s apartments: surprisingly, these units at Tempo and evaluated “not just on price, but also the easier to manage in the long run.” Trio have leased up before the affordable units. product they’re proposing to build and the casestudies.uli.org Encore Case Study 9 OTHER PARTICIPANTS General contractors Hardin Construction CORE Construction Siltek Group Malphus & Son General Contractors ZMG Construction Property management JMG Realty Rosetta Management Commercial brokers The Dohring Group Eshenbaugh Land Company Participating agencies City of Tampa Housing Finance Authority of Hillsborough County

PAYTON CHUNG Hillsborough County Public Schools Perry Harvey Sr. Park, which has long been a skateboarding destination, incorporates part of the country’s only U.S. Department of Housing and Urban historically designated skate feature. Development Interviewees developers’ capability” to deliver something same utilities payment regardless of actual op- Terrance Brady, director of energy services, Tampa compatible with the broader Encore plan. erating costs—and improves Encore’s resilience Housing Authority in the event of a power loss. All of these features James Cloar, board member, Tampa Housing Authority Observations and Lessons Learned were added because of their top-line benefits, not David Iloanya, director of real estate development, in response to any local mandates. Encore was able to bounce back from multiple Tampa Housing Authority Strategic phasing and realistic plan- Leroy Moore, senior vice president and chief setbacks, pivoting its infrastructure funding ning helped the project maintain momentum operating officer, Tampa Housing Authority strategy from HOPE VI to local tax increment Eileen Pope, senior vice president, Banc of America and manage bumps along the way. The chiller financing to NSP and finally Choice Neighbor- Community Development Corporation equipment was added in phases, which meant hoods when those opportunities arose. The it could benefit from technological improve- result was a development that delivered more ments. Launching the development with a build- affordable units at a more appropriate density ing housing seniors helped establish the site and with less debt than previous schemes had and anchor the town square while specifics for envisioned. Those two false starts taught Pope the more complex part of the project—mixed- that “you have to be realistic—and ready to pull income family housing—were being negotiated. the plug if it’s not working.” Projects of this scale must be careful to “avoid Pope has also learned to better anticipate false expectations of how quickly things are go- problems. BACDC and THA are preparing a ing to happen,” Cloar notes. “The individuals joint-venture redevelopment of another site, and involved may change over time, but the project Pope is already prequalifying contractors. “I has to maintain some continuity.” want to know how they handle problems,” she Encore has been able to distinguish its of- says. Iloanya echoes the sentiment. “I prefer to fering within a crowded downtown housing mar- deal with somebody who admits that they’ve ket through a combination of strategies. It can had problems versus someone who says, ‘We’ve appeal to residents interested in its rich history, never had a delay,’ or ‘We’ve never gotten an RFI those who want a location near but not in the [request for information],’” he says. thick of downtown, and those who want a more Building out the infrastructure beforehand diverse set of neighbors. allowed the team to view critical services not just as costs, but as opportunities. The stormwater system recaptured additional acreage for development, better tied the site together, and provided room for additional greenery throughout the site. The chiller plant dramatically increases energy efficiency—especially critical for government- assisted housing, where landlords receive the

10 Encore Case Study casestudies.uli.org PROJECT INFORMATION

Development timeline Development timeline Site purchased by THA 1952 Trio fully occupied January 2015 Planning started January 2006 Trio converted to permanent financing March 2015 Redevelopment district created March 2006 Reed construction completed April 2015 Site transferred to public/private partnership December 2006 Reed fully occupied August 2015 Demolition completed July 2007 Reed converted to permanent financing December 2015 Ella design started March 2010 Tempo leasing started May 2016 Infrastructure contracts signed April 2010 Tempo construction completed Summer 2017 Infrastructure groundbreaking May 2010 Project completion expected 2022

Road infrastructure construction began January 2011 Gross building area (GBA) Ella construction began August 2011 Use Total building area (sq ft) Reed design started September 2011 Office (proposed) 93,424 Reed received LIHTC allocation June 2012 Retail/restaurant 8,506 Ella leasing started September 2012 Hotel (proposed) 53,320 Ella construction completed December 2012 Residential 497,224 Trio construction began December 2012 Parking 371,823 Infrastructure construction completed December 2012 Resident amenities, management offices 23,357 Tempo design started April 2013 Total GBA 1,047,654 Ella fully occupied August 2013 Parking spaces 1,103 Reed construction began September 2013 Potential future development Total building area Trio leasing started December 2013 Office 180,000 sq ft Ella converted to permanent financing January 2014 Multifamily 600 units Reed leasing started June 2014 Hotel 200 keys Trio construction completed June 2014 Retail (grocery) 36,000 sq ft Tempo construction began October 2014

Land use plan Site area (acres) % of site Building parcels 18.12 64.7% Streets/surface parking 6.45 23.0% Landscaping/open space 3.43 12.3% Total 28.00 100%

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Residential information

Building or unit name/housing type Number of units Unit size (sq ft) Typical rent (per month) % leased Ella (seniors) 160 1 bedroom, 1 bath 120 700 $383–$712 100% 2 bedroom, 2 bath 40 1,007 $402–$858 100%

Reed (seniors) 158 1 bedroom, 1 bath 133 702–737 $383–$716 100% 2 bedroom, 2 bath 25 908–1,050 $402–$865 100%

Trio (family) 141 1 bedroom, 1 bath 35 704 $372–$755 100% 2 bedroom, 2 bath 90 904 $402–$875 100% 3 bedroom, 2.5 bath 13 1,167 $697–$1,100 100% 4 bedroom, 2.5 bath 3 1,304 $1,227–$1,310 100%

Tempo (family)—under construction 203 1 bedroom, 1 bath 69 711 $372–$755 — 2 bedroom, 2 bath 90 1,004 $402–$875 — 3 bedroom, 2.5 bath 40 1,080 $1,160 — 4 bedroom, 2.5 bath 4 1,482 $1,368 —

Retail/restaurant information Annual rent range $12–$16 per sq ft Average length of lease 5–10 years Key retail/restaurant tenants Retail type Gross leasable area (sq ft) Snipped Barbershop & Salon Barbershop 1,100 Michelle Faedo’s On the Go Restaurant 1,594 Westshore Pizza Restaurant 2,793

Development cost information Phase I infrastructure

Hard costs Soft costs (continued) Infrastructure $12,752,464 Legal $435,780 Chiller plant and distribution pipes $6,059,688 Marketing $74,158 Lot 3 parking garage $2,250,000 Bond for developer $27,242 Heat exchanger, transformer $163,932 Platting $12,556 Chiller design work $282,857 Developer fee $1,500,000 Total $21,508,941 Administration $350,000 Soft costs Utilities $219,356 Civil engineering $979,478 Total $3,672,305 Architecture $73,735 Total development cost $25,181,246

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Development cost information

Ella Trio Acquisition $1,645,000 Acquisition $1,425,000 Hard costs $18,846,222 Hard costs $18,900,000 Soft costs $2,951,406 Soft costs $5,391,402 Developer fee $850,000 Developer fee $2,000,000 Reserves $1,114,752 Reserves $1,091,347 Total $25,407,380 Total $28,807,749

Reed Tempo Acquisition $1,580,990 Acquisition $2,187,000 Hard costs $19,249,748 Hard costs $27,825,000 Soft costs $4,906,830 Soft costs $9,908,904 Developer fee $3,385,000 Developer fee $2,000,000 Reserves $1,890,282 Reserves $2,312,408 Total $31,012,850 Total $44,233,312

Financing sources All buildings to date Debt capital sources First mortgage debt $21,500,000 Equity capital sources Deferred developer fees $1,185,000 LIHTC $46,191,166 Public sector capital sources City of Tampa (HOME, NSP) $7,875,000 Tampa Housing Authority and HUD $74,796,852 Other (brownfield credits, FHLB) $2,913,273 Grand total $154,461,291

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Financing sources

Ella Construction Permanent Debt Bank of America (with Freddie Mac forward commitment)—tax-exempt bonds $2,900,000 $2,900,000 Bank of America—short-term bond $9,370,000 Equity and grants Bank of America—LIHTC (4%) $244,108 $7,790,085 HUD Replacement Housing Factor Grant $4,946,299 $4,946,299 HUD and Tampa Housing Authority—NSP 2 $2,250,000 $2,250,000 HUD and City of Tampa—NSP 1 $1,000,000 $1,000,000 Tampa Housing Authority—land note $1,600,000 $1,600,000 Tampa Housing Authority—member note $824,023 City of Tampa—HOME $2,500,000 $2,500,000 Federal Home Loan Bank of SF, Affordable Housing Program $1,000,000 Brownfield rebate $396,973 $396,973 Deferred developer fee $200,000 $200,000 Total $25,407,380 $25,407,380

Reed Debt Bank of America—construction loan $16,302,573 Oak Grove Capital—permanent loan $3,800,000 Equity and grants Bank of America—LIHTC (9%) $8,173,359 $20,675,932 HUD Replacement Housing Factor Grant $2,191,747 $2,191,747 Tampa Housing Authority—land note $1,570,000 $1,570,000 Tampa Housing Authority—member note $1,998,710 $1,998,709 City of Tampa $100,000 $100,000 Brownfield rebate $441,461 $441,461 Deferred developer fee $235,000 $235,000 Total $31,012,850 $31,012,849

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Financing sources

Trio Construction Permanent Debt Bank of America (with Freddie Mac forward commitment)—tax-exempt bonds $4,800,000 $4,800,000 Bank of America—letter of credit $9,320,000 Equity and grants Bank of America—LIHTC (4%) $6,802,881 HUD and Tampa Housing Authority—NSP 2 $3,385,000 $3,385,000 HUD Replacement Housing Factor Grant $2,836,374 $2,836,374 Tampa Housing Authority—land note $1,425,000 $1,425,000 Tampa Housing Authority—member note $607,038 $607,038 Tampa Housing Authority—capital funds $2,271,733 $4,788,852 City of Tampa—HOME $2,000,000 $2,000,000 Federal Home Loan Bank of SF, Affordable Housing Program $990,000 $990,000 Brownfield rebate $422,604 $422,604 Deferred developer fee $750,000 $750,000 Total $28,807,749 $28,807,749

Tempo Debt Bank of America (with Freddie Mac forward commitment)—tax-exempt bonds $10,000,000 $10,000,000 Bank of America—letter of credit $9,850,000 Equity and grants RBC Capital Markets—LIHTC (4%) $10,922,268 HUD Choice Neighborhoods $16,494,000 $16,494,000 HUD Replacement Housing Factor Grant $3,297,530 $3,297,530 Tampa Housing Authority—land note $2,187,000 $2,187,000 Tampa Housing Authority—member note $670,279 $670,279 Brownfield rebate $662,235 $662,235 Deferred developer fee $1,072,268 Total $44,233,312 $44,233,312

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