AN ADVISORY SERVICES PANEL REPORT Paterson New Jersey

Paterson, New Jersey, December 7–12, 2003 1 Paterson New Jersey

Strategies for Development of a Transit Village

December 7–12, 2003 An Advisory Services Panel Report

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

LI–the Urban Land Institute is a non- resented include developers, builders, property profit research and education organiza- owners, investors, architects, public officials, plan- tion that promotes responsible leadership ners, real estate brokers, appraisers, attorneys, U in the use of land in order to enhance engineers, financiers, academics, students, and the total environment. librarians. ULI relies heavily on the experience of its members. It is through member involvement The Institute maintains a membership represent- and information resources that ULI has been able ing a broad spectrum of interests and sponsors a to set standards of excellence in development wide variety of educational programs and forums practice. The Institute has long been recognized to encourage an open exchange of ideas and shar- as one of America’s most respected and widely ing of experience. ULI initiates research that quoted sources of objective information on urban anticipates emerging land use trends and issues planning, growth, and development. and proposes creative solutions based on that research; provides advisory services; and pub- This Advisory Services panel report is intended lishes a wide variety of materials to disseminate to further the objectives of the Institute and to information on land use and development. make authoritative information generally avail- able to those seeking knowledge in the field of Established in 1936, the Institute today has more urban land use. than 20,000 members and associates from 70 coun- tries, representing the entire spectrum of the land Richard M. Rosan use and development disciplines. Professionals rep- President

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Cover photo: View from Paterson train station courtesy of Master of Infrastructure Planning Program, New Jersey Institute of Technology.

2 An Advisory Services Panel Report About ULI Advisory Services

he goal of ULI’s Advisory Services Program ipants in ULI’s five-day panel assignments are is to bring the finest expertise in the real able to make accurate assessments of a sponsor’s estate field to bear on complex land use plan- issues and to provide recommendations in a com- T ning and development projects, programs, pressed amount of time. and policies. Since 1947, this program has assem- bled well over 400 ULI-member teams to help A major strength of the program is ULI’s unique sponsors find creative, practical solutions for ability to draw on the knowledge and expertise of issues such as downtown redevelopment, land its members, including land developers and own- management strategies, evaluation of develop- ers, public officials, academicians, representatives ment potential, growth management, community of financial institutions, and others. In fulfillment revitalization, brownfields redevelopment, military of the mission of the Urban Land Institute, this base reuse, provision of low-cost and affordable Advisory Services panel report is intended to pro- housing, and asset management strategies, among vide objective advice that will promote the re- other matters. A wide variety of public, private, sponsible use of land to enhance the environment. and nonprofit organizations have contracted for ULI’s Advisory Services. ULI Program Staff Each panel team is composed of highly qualified Rachelle L. Levitt professionals who volunteer their time to ULI. Senior Vice President, Policy and Practice They are chosen for their knowledge of the panel topic and screened to ensure their objectivity. Mary Beth Corrigan ULI panel teams are interdisciplinary and typi- Vice President, Advisory Services cally include several developers, a landscape Nancy Zivitz Sussman architect, a planner, a market analyst, a finance Senior Associate, Advisory Services expert, and others with the niche expertise needed to address a given project. ULI teams Nicholas Gabel provide a holistic look at development problems. Associate, Advisory Services Each panel is chaired by a respected ULI mem- ber with previous panel experience. Jason Bell Panel Coordinator, Advisory Services The agenda for a five-day panel assignment is in- Yvonne Stanton tensive. It includes an in-depth briefing day com- Administrative Assistant posed of a tour of the site and meetings with spon- sor representatives; a day of hour-long interviews Nancy H. Stewart of typically 50 to 75 key community representa- Director, Book Program tives; and two days of formulating recommenda- Stella Tarnay tions. Many long nights of discussion precede the Manuscript Editor panel’s conclusions. On the final day on site, the panel makes an oral presentation of its findings Betsy VanBuskirk and conclusions to the sponsor. A written report Art Director is prepared and published. Martha Loomis Because the sponsoring entities are responsible Desktop Publishing Specialist/Graphics for significant preparation before the panel’s visit, Kim Rusch including sending extensive briefing materials to Graphics each member and arranging for the panel to meet with key local community members and stake- Diann Stanley-Austin holders in the project under consideration, partic- Director, Publishing Operations

Paterson, New Jersey, December 7–12, 2003 3 Acknowledgments

oth personally and on behalf of ULI, the als, conducting on-site briefings and tours, arrang- panel members would like to thank the ing interviews, and providing continuous assis- sponsors—the city of Paterson, the New tance to the panel and staff during its six-day visit. B Jersey Department of Transportation (NJ Key members of the city’s resource team include DOT), and the New Jersey Department of Com- Marilee Jackson, Joyce Gregory Hunt, Edith munity Affairs, Office of Smart Growth—for giv- McKinnon, Barbara McLennon, Frank Blesso, ing them the opportunity to work on this impor- Gary Melchiano, Michael Deutsch, Jamie Dykes, tant assignment. The panel extends special Charlie Parmelli, Wanda Perez, Donna Stubbs, appreciation and thanks to Mayor Jose “Joey” Nayidah O’Neal, Kesha Young, Alana Onorato, Torres; Jack Lettiere, Dennis Keck, and Brent Karen Brooks, and Mari O’Neal. Very special Barnes of NJ DOT; and Susan Bass Levin of the thanks and recognition go to Darius Sollohub, as- New Jersey Department of Community Affairs, sociate director of infrastructure planning at the for providing leadership in identifying and ad- New Jersey Institute of Technology (NJIT), his vancing the opportunity for transit-oriented de- students, and his assistant Beatriz Yabur, for velopment in Paterson. preparing exceptionally high-caliber briefing ma- terials to the panel, and for providing report The panel is particularly grateful for the prepara- graphics. tion and coordination provided by Jennifer Senick of Ron Rukenstein & Associates and members of Finally, the panel is grateful to the many public of- the city’s staff in assisting the panel before and ficials, business leaders, representatives of organi- during the assignment. The city’s team did a ter- zations and interest groups, and citizens of Pater- rific job of preparing the panel for its assignment son who took time to be interviewed as part of the by providing extensive advance briefing materi- panel’s research.

4 An Advisory Services Panel Report Contents

ULI Panel and Project Staff 6 Foreword: The Panel’s Assignment 7 Summary of Recommendations 9 Market Potential 12 Planning and Design 19 Development Strategies 29 Implementation 35 Conclusion 41 About the Panel 42

Paterson, New Jersey, December 7–12, 2003 5 ULI Panel and Project Staff

Panel Chair Anita B. Morrison Principal Smedes York Bay Area Economics President Silver Spring, Maryland York Properties, Inc. Raleigh, North Carolina Alex J. Rose Director of Development Panel Members Continental Development Corporation El Segundo, California Stephen A. Cebra Senior Vice President Ruth A. Wuorenma Walker Parking Consultants/Engineers President Boston, Massachusetts Neighborhood Capital Institute Chicago, Illinois John Gosling Vice President ULI Project Director RTKL Associates, Inc. Washington, D.C. Jo Allen Gause Senior Director E. Eddie Henson Residential Development Henson-Williams Realty, Inc. Tulsa, Oklahoma On-Site Coordinator John (Jack) C. Hewett Jason Bell President Panel Coordinator The Hewett Company Advisory Services Program Santa Barbara, California Edwin R. Kimsey, Jr. Vice President Niles Bolton Associates, Inc. Atlanta, Georgia Alvin R. McNeal McNeal Consulting Washington, D.C.

6 An Advisory Services Panel Report Foreword: The Panel’s Assignment

he city of Paterson has been presented with Location map. an opportunity to work with the New Jer- NEW YORK sey Department of Transportation (NJDOT) T and New Jersey Transit (NJ Transit) as part of the Transit Village Initiative, a multi-agency ef- Paterson fort spearheaded by NJDOT and NJ Transit. The Newark New York Transit Village Initiative was established to help communities revitalize areas around their transit stations, making them an appealing choice for live, work, and play, thereby reducing reliance on the PENNSYLVANIA automobile. Trenton

Philadelphia

Two important goals of the Transit Village Initia- N NEW JERSEY A E

tive are to reduce traffic congestion and to im- C

O prove air quality by increasing the number of C I T transit riders. Studies have shown that greater N A L T housing options within walking distance of a tran- A sit facility—typically within a one-quarter to one- half-mile radius—do more to increase transit rid- ership than any other catalyst. Therefore, the Dover Transit Village Initiative seeks to attract housing, businesses, and people into communities with DELAWARE transit facilities. city can take to create a transit village around its The inter-agency Transit Village Task Force rec- train station in order to enhance community revi- ommends a community for transit village designa- talization, increase transit ridership, and spur eco- tion. To be designated, a community must demon- nomic development. Specific questions posed to strate a commitment to revitalizing and the panel included the following: redeveloping the area around its transit facility into a compact, mixed-use neighborhood with a • What land uses are appropriate around the strong residential component. train station in order to create a true transit vil- lage? What are appropriate densities for these The city of Paterson is very interested in better understanding viable strategies for the creation of uses, keeping in mind the need to balance infra- a transit village in order to facilitate: 1) business structure requirements, economic development, development that leverages the city’s assets; 2) in- and the environment? creased housing options that take advantage of • What are appropriate design guidelines that underused buildings; 3) improved mobility through better access and linkages; and 4) revital- will make the transit village appealing, yet will ization that capitalizes on Paterson’s ethnically di- not be so restrictive as to discourage develop- verse community. ment?

NJ DOT and the city of Paterson asked a ULI Ad- • How can some of the existing structures be in- visory Services panel to recommend steps that the corporated into the transit village?

Paterson, New Jersey, December 7–12, 2003 7 City of Paterson and sur- • What incentives should be offered to the private Dobbs Ferry rounding area. Ridgewood sector for developing a transit village? 287 Yonkers • Which portions of the project should be funded Paterson by the public sector? What are potential sources 80 Hackensack of funds? Clifton Passaic 280 The ten-member ULI panel assembled in Pater- son for an intensive week of work to answer these Livingston Union City questions. Panel members—who contributed their son Newark time—were selected for their relevant expertise New 78 ence Jersey City York and objectivity. Months of preparatory work com- pleted by the sponsor and ULI staff, including the Elizabeth Bayonne compilation of extensive briefing materials, en- 278 abled panel members to undertake an in-depth Rahway evaluation of Paterson as a potential transit vil- Carteret Edison 95 lage center, and to draw up recommendations. During their week in Paterson, panel members in- • What additional infrastructure is needed on the terviewed city, community, and business leaders, site to support the proposed development and were briefed by the sponsor on the assignment, to foster transit-oriented development? and toured the transit village study area and • What additional parking is needed to support surrounding neighborhoods. The panel evaluated the transit village? Where should it be located? Paterson’s potential for designation as a transit village community based on New Jersey state • What is an appropriate development plan for standards, market potential, existing infrastruc- the transit village that will accommodate pro- ture and building resources, and available insti- posed uses, promote smart growth, and connect tutional, financial, and political support. They the village to the downtown in a pedestrian- evaluated the existing City Center development friendly environment? proposal in light of these standards. The panel drew up findings and recommendations including, • What is the appropriate sequencing of develop- as requested, transit village design guidelines, and ment? Which projects will be catalytic for devel- presented them at a public meeting on December opment? 12th, 2003. This report presents the panel’s find- • What is the appropriate process for develop- ings, conclusions, and recommendations. ment of the transit village (that is, master de- veloper, several developers, etc.):

8 An Advisory Services Panel Report Summary of Recommendations

he panel wholeheartedly recommends that true transit village around its train station and to Paterson pursue designation as a transit spur economic development communitywide. village. The city has the physical, market, T and political resources needed to create a Set the Stage for Future Residents transit-oriented urban village around its train station, achieving the complimentary goals of in- To attract private investment and development creased public transportation use as sought by the to the transit village, the city must first create a state, and the goal of local economic development. safe, attractive, and convenient environment for future residents. The panel therefore urges the Paterson has a rich base of assets on which to city to take the following steps: build: a dense and diverse population; a strong sense of history; a compact, walkable urban core; •Provide convenient and secure parking in close an ample supply of historic structures and under- proximity to residential development in the used commercial buildings that can be converted transit village; to housing; infill and brownfield redevelopment • Reduce traffic congestion by providing a shuttle opportunities; and existing transportation infra- bus system between remote parking facilities structure. and downtown office buildings; The underpinning of successful revitalization and • Make it more convenient for residents to use economic development efforts for Paterson’s urban public transit by providing shuttle bus service core, and for the city as a whole, will be residential between the transit village, bus, train, and fu- development. New housing opportunities in the ture light-rail stations; transit village will bring an influx of residents to the area, at first primarily from within Paterson, • Establish a transit loop system that will provide and later from beyond the city limits. New transit better linkages between key areas of the city; village residents will invest in homes, spend money in stores, dine in restaurants, establish businesses, •Create a system of small urban parks and en- use public transit, and take advantage of recre- gaging public spaces along four key transit vil- ational and entertainment opportunities. lage streets: Market Street, Main Street, Ward Street, and Memorial Drive; and The catalyst for new residential development in the transit village will not come from a large-scale, • Reduce real and perceived crime in the city’s mixed-use development such as the one proposed urban core. for the Center City site, even one better planned and designed than the panel believes the current Target Small-Scale Residential proposal is. Rather, demand will grow out of a Development steady flow of new small-scale, primarily market- rate residential developments undertaken by pri- The panel believes that the most effective strat- vate sector developers. Success will breed success; egy for facilitating the creation of a transit village investment will attract new investment. is to target many small-scale, mostly market-rate residential development projects that take advan- The panel recommends that the city take the fol- tage of existing and proposed transit infrastruc- lowing actions to facilitate the development of a ture.

Paterson, New Jersey, December 7–12, 2003 9 Transit village study area.

Transit Village Study Area Boundary

Downtown

Great ● Falls City Hall 1/2 Mile Fifth Ward Historic ★ District Train Station MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT Convert Underused Buildings and Land can accommodate demand for larger-scale com- to Housing mercial uses that are likely to follow an influx of new residents into the urban core. The three- and four-story commercial structures that line Main and Market streets are develop- Create a Transit Village Development ment opportunities waiting to happen. For the Corporation most part, these buildings are occupied by retail tenants on the ground floors, and are vacant or To realize its potential as a true transit village, the underused on the upper levels. Converting these panel recommends that the city create a Transit upper floors to housing units presents an immedi- Village Development Corporation (TVDC). The ate development opportunity and has the poten- TVDC would bring together public and private tial to bring significant numbers of new residents stakeholders to develop and implement a plan to to the transit village. The capital required to con- create a transit village. A board of directors com- vert them to housing will, in most cases, be lower prising members of key city, state, community, than that required for new construction. and business interests would govern the TVDC. A full-time executive director, dedicated administra- Paterson also has an enviable stock of vacant and tive support, and a grants specialist would exe- underused historic structures that can be con- cute the board’s policies and plans. The panel be- verted to rental and for-sale housing. Examples lieves that TVDC operations can be funded by a include the Armory, the Alexander Hamilton portion of the Urban Enterprise Zone sales tax Hotel, and historic mill buildings. revenue that is allocated to Paterson by the state.

The city should also pursue opportunities for new Recommended action steps for the TVDC include: ground-up residential development on infill sites • Develop a fully articulated master plan and de- such as the vacant lot at Straight and Ellison sign standards for the transit village; streets and the surface parking lot adjacent to the parking deck at Market and Railroad streets. •Prepare an inventory and analysis of potential Brownfield sites around the perimeter of the city development sites;

10 An Advisory Services Panel Report • Streamline the city’s development approval •Tap into existing state, county, and federal process; funding; • Initiate and manage city-sponsored requests for •Offer land writedowns for city-owned develop- proposals for the transit village; and ment sites; • Champion transit village development projects • Pay for some or all of the environmental clean- through the approval process. up costs on brownfield sites; • Aggressively market Paterson and transit vil- Foster New Ways to Attract Private lage development opportunities to the region; Development • Reduce parking requirements in selected areas; Perhaps the single most important incentive the city can offer to attract private development and •Provide density allowances; investment to the transit village is a well-defined • Make use of transit infrastructure investment vision that has staying power from administration funds; to administration. Businesses and developers need to know that the adopted plan will not change • Facilitate public/private development ventures; later, down the road. and Other actions the city can take to attract and sup- •Take advantage of funding programs available port private development include: through the Paterson Restoration Corporation, the city’s department of community develop- • Give high priority to city-funded infrastructure ment, and other entities. improvements and economic development proj- ects that will enhance the transit village area; • Establish realistic annual revenue goals for eco- nomic development projects;

Paterson, New Jersey, December 7–12, 2003 11 Market Potential

ounded in 1792, Paterson has a unique his- tional attainment of Paterson residents. While 47 tory as the nation’s first planned industrial percent of Paterson residents aged 25 or more had city. With Alexander Hamilton’s founding of a high school diploma or the equivalent, only 11 F the Society for Establishing Useful Manu- percent had an associate, bachelor or graduate de- factures (S.U.M.) at the 77-foot-high Great Falls gree. Thirteen percent of Paterson residents in on the Passaic River, Paterson was at the fore- the civilian labor force aged 16 or older was unem- front of America’s industrialization. Designed for ployed in 2000. industrial uses along the raceways of Great Falls, Paterson is New Jersey’s third largest city, with with nearby housing for workers who would walk an official Census population of 149,222 residents to the factories, Paterson developed as a compact, in 2000, and perhaps 10,000 to 30,000 more un- pedestrian community that persists to this day. counted residents. The city has a relatively young The city retained its character as an industrial city population, with a median age of only 30.5 years through the centuries, with manufacturers provid- and a smaller component of elderly residents than ing good jobs to skilled and semiskilled factory most other jurisdictions in the state. workers. Paterson has served as a gateway com- Shifting from an early employment base domi- munity for wave after wave of new immigrants at- nated by manufacturing jobs, the city’s economic tracted by employment opportunities. base continues to include manufacturing, food dis- tribution, and other industrial uses. However, the Paterson Today predominant employment sources are now gov- ernment, health care, and education. As the seat Paterson continues to draw new immigrants from of Passaic County, downtown Paterson hosts a variety of nations. Its current residents come county courts and a range of city, county, state, from over 80 different countries. One-third of the and federal offices. city’s residents were born outside of the U.S. One- half of Paterson residents responding to the U.S. Census in 2000 were of Latino heritage—the real Development Assets and Challenges percentage is likely higher given the tendency to The panel began its analysis of the market poten- undercount the immigrant population. Just under tial for a transit village in Paterson by evaluating one-third of residents are African Americans, 6 the city’s competitive strengths and challenges. percent report themselves as being of two or more As part of this process, panel members identified races, 13 percent are non-Hispanic whites, and the key assets that contribute to the area’s develop- remaining 2 to 3 percent are of Asian, Native ment potential, as well as liabilities and challenges American or Pacific Islander descent. that may inhibit future development. Paterson’s role as a gateway community con- Assets tributes to a concentration of lower income house- Paterson has a number of important economic and holds. In 2000, the median income of Paterson physical assets on which to build, including: households was $32,778 compared with $49,210 in Passaic County as a whole. Thirty-eight percent of • City and county government operations; Paterson households had incomes below $25,000 in • Major regional hospitals; 2000, including 23 percent with incomes below $15,000. In part, these incomes reflect the educa- • Highway and road accessibility;

12 An Advisory Services Panel Report • Good bus and rail service, which will improve with the opening of the Secaucus transfer sta- tion in December 2003 and the proposed Hack- ensack light-rail line in the longer term;

•High retail occupancy rates;

• An available labor force;

•A walkable community;

•History and historic resources;

•A dense population base; and

• Ethnic diversity. Challenges Issues that challenge the city’s ability to achieve MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT its development goals include:

• Relatively low household incomes;

• Perception of high crime rates;

• City image as a blue-collar community;

• Limited parking in locations required by shop- pers and other customers;

•Traffic congestion in downtown;

• Loss of some local manufacturers to interna- tional competition;

• Retail competition from malls and shopping centers in surrounding areas; FROM THE COLLECTION OF LEONARD A. ZAX • Absentee landlords reluctant to invest in their walk one-quarter to one-half mile to a transit sta- Above: Paterson’s Great buildings; and tion, longer if the walk is attractive and safe. Falls is an icon of the city. • Lack of physical connectivity among several of Below: The city wants to the city’s economic engines. The Paterson regional housing market has experi- preserve and capitalize on enced high rates of price increases, particularly the legacy of Paterson’s Housing Market Potential during the last three years of low mortgage inter- industrial past. est rates. Nevertheless, Paterson housing remains As traffic conditions continue to worsen, many in- markedly more affordable than housing in other dividuals and families are rethinking their housing parts of northern New Jersey. With housing prices choices so as to shorten and simplify their com- at an all-time high throughout the state, first-time mutes. Housing located in a transit village offers homebuyers and even middle-income renters are them the opportunity to take advantage of transit finding it harder and harder to secure appropriate service and to avoid traffic congestion. Transit- housing. oriented development works best when higher densities place more people within easy walking This creates significant opportunities for a city distance of the transit station. Most people will like Paterson. Cost pressures are forcing house-

Paterson, New Jersey, December 7–12, 2003 13 holds to consider locations they would not have Recently built housing resulting from invest- considered in previous years, leading to invest- ment by the Paterson Housing Authority and ment in deteriorated neighborhoods that have local Community Development Corporations has been bypassed during earlier waves of suburban- met with high demand and good market response. ization. Paterson can attract new middle-income Some homebuyers have found doubles an attrac- residents by offering an attractive environment tive option, living in one unit and using rent from with an improved quality of life. the second unit to help make the mortgage pay- The city offers a range of housing in a variety of ments. neighborhoods, from single rooms and small apart- Reuse of Historic Buildings ments to large single-family houses and even man- Across the country, cities are finding that high- sions. However, many residents leave the city quality historic architecture can attract young sin- when they get ready to buy a housing unit or gles and childless couples to formerly deteriorated move up to a house or a larger unit. neighborhoods. With an improved environment The panel identified five major market opportuni- around Passaic County Community College, stu- ties for residential development: dents could be exposed to Paterson’s advantages while in school and be drawn to stay once they • Housing for first-time homebuyers; graduate and enter the workforce. The children of • Adaptive reuse of historic mill buildings to at- Paterson residents often leave the community as tract young singles and couples who value his- they pursue their careers. An environment of at- toric architecture, and to retain some of the tractive housing, coupled with additional retail fa- city’s young people as they pursue careers; cilities, could persuade some to remain in town. Condominiums priced from $150,000 to $250,000 • Condominiums and apartments for transit com- would be appropriate for this market. muters to Manhattan and northern New Jersey employment centers. Though small now, this Housing for Transit Commuters market should grow significantly with the open- Currently, Paterson’s Main Line transit access to ing of the Secaucus transfer station, and in fu- Hoboken and the PATH trains into New York ture years with the new light-rail line to Hack- City attract only 208 daily commuters. However, ensack; the opening of the new Secaucus transfer station • Move-up, for-sale housing for middle-income will significantly improve the rail commute from households; and Paterson to Manhattan. Over time, as commuters grow to appreciate the new service and conve- • Rental housing for low- to moderate-income nience, and seek new housing opportunities, Pa- households. terson will become increasingly attractive. First-Time Homebuyers Move-Up, For-Sale Housing With two-thirds of the city’s households renting, The predominant pattern of tenure in Paterson is there is pent-up local demand for affordable home- that households stay in the city for a limited pe- ownership opportunities. Paterson has roughly 15,000 households with incomes of $35,000 to riod until their economic status improves and they $75,000, many of which could qualify for new hous- can afford to move to a more suburban jurisdic- ing given below-market mortgage rates and tion. Attracting employees of the hospitals and downpayment assistance. Rent-to-own programs government agencies, as well as retaining young would be very effective in helping them make the Patersonians ready to buy their first or second transition from renters to homeowners. Housing home, will depend on creating a more attractive units priced from $150,000 to $200,000 in a well- environment. Building on Paterson’s assets while designed development would meet with strong reducing negative elements that impact the city’s market acceptance. quality of life can encourage such an environment.

14 An Advisory Services Panel Report Underused historic build- ings in the transit village area like the ones shown have tremendous poten- tial for conversion to housing. MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT

Currently, larger residential units suitable for Office Market Potential move-up, for-sale housing sell for $200,000 to $300,000. Currently, Paterson has no Class A multi-tenant office space. The city’s existing office space is con- New Affordable Rental Housing centrated in government-owned and occupied Paterson’s Community Development Corpora- buildings and four larger privately owned, multi- tions and the Paterson Housing Authority have tenant buildings located within downtown. The done a good job of tapping into outside resources general-occupancy buildings open to multiple ten- to create affordable rental housing for the city’s ants have roughly 320,000 square feet of space, workforce. Creation of additional rental units, in- with only 10,000 square feet of available space and tegrated into mixed-income developments near a waiting list for additional tenants. Government transit, would be a very appropriate way to en- tenants occupy much of the multi-tenant space. sure that new housing development does not in- volve displacement of current Paterson families. Existing rents are $18 to $25 per square foot for the highest-quality office space, and $8 to $10 per Residential Development Prerequisites square foot for Class C space. Such rents would To attract the middle-income renters and home- not cover the costs of new construction. The city buyers identified above, it is critical that the city has seen no new office construction for several ensure the following improvements are in place: years. Passaic County as a whole has a stable of- fice market of 4.77 million square feet in multi- • Convenient and secure parking in close proxim- tenant buildings, with more than 687,000 square ity to housing (preferably directly connected or feet of space available for an overall vacancy rate adjacent to it); of 14.4 percent. Within the Class A market, the •A quality environment with clean and attractive county has 766,000 square feet of high-quality of- public spaces; and fice space, with 11.3 percent vacant as of the third quarter of 2003 according to Cushman & Wake- •A secure environment with low incidence and field’s inventory. Leasing activity through the first perception of crime. three-quarters of the year totaled only 101,000

Paterson, New Jersey, December 7–12, 2003 15 square feet countywide, with only 18,700 square ronment that will encourage visitors to linger in feet of net absorption. No new office space is cur- Paterson, eat in local restaurants, and visit local rently under construction. shops. Paterson’s rich history of immigration and ethnic diversity should be celebrated through eth- The only significant office activity within Paterson nic and heritage festivals that promote the his- is the consolidation of Board of Education offices toric district. Development of additional ethnic into a single building with 70,000 to 80,000 square restaurants in the vicinity of Great Falls can be feet of space. The consolidation will open up space justified as the visitor base grows over time. in multi-tenant buildings that the Board of Edu- cation now rents. Other institutions, such as St. To successfully compete for visitation, Paterson Joseph’s Hospital, may have comparable needs for must offer an authentic setting and a visitor- build-to-suit office space. friendly experience. This means vigorous preser- vation and protection of the historic assets that Paterson has a limited demand for new private of- characterize the Great Falls Historic District. The fice space, focused primarily on businesses with city needs to ensure that existing buildings are re- links to the city, county, state, and federal agen- tained and reused in a manner compatible with cies and courts. Given the narrow focus of poten- their historic character. It should also prevent in- tial tenants, preleasing should precede any major trusion of development that is inconsistent with new development. the historic design and materials of the district. One major constraint on Paterson office demand Visitors will seek out and return to attractions has been the lack of adequate parking in close that offer an easy and enjoyable experience. Clear proximity to private office buildings. With addi- wayfinding signs to help them find their way tional parking made available to office tenants through town, available and easy-to-find parking, and their clients/customers, the demand for office and other support facilities (restrooms, restau- space could be increased. rants, and retail) will support such an experience.

Tourism Market Potential Hotel Market Potential Tourism development can bring new retail cus- Opportunities for hotel development are currently tomers to Paterson and increase the community’s somewhat limited given the nature of the down- visibility in the region. Paterson has a remarkable town employment base—government uses do not history to tell and architectural assets with which typically generate significant visitor demand. Fol- to tell its story. The city’s initiative to create an lowing development of the Great Falls National historic park at Great Falls is an outstanding op- Historic Site, Paterson will have a site suitable for portunity. The Great Falls Historic District, with development of a bed and breakfast or a small inn its remarkable physical environment at the falls in the historic district. St. Joseph’s Hospital has an and along the Passaic River, offers a unique set- immediate need for expanded conference space ting in which to share Paterson’s story. The Pater- and accommodations for its visitors. With careful son Museum already does an outstanding job of design and siting, it might be possible to develop a profiling the city’s industrial history. Designation facility that will serve both the hospital and the of the historic district as a national park, a state tourist market. Consideration should be given to historic park, or both, would greatly raise its visi- siting and configuring a facility so as to provide a bility as a tourism destination to be appreciated greater community benefit, for example, including by regional residents and tourists alike. Coupled community meeting space. with the proposed Colt Gun Mill museum, Great Falls could attract significant numbers of new Retail Market Potential people to Paterson. Paterson can be proud of its vibrant local retail- Private reinvestment to reuse the industrial mill ing. Main and Market streets host a rich array of buildings can create a unique and attractive envi- local shops that have responded well to the retail

16 An Advisory Services Panel Report demands of the city’s residents. These shops serve Paterson’s city hall is primarily a walk-in and transit-dependent cus- as grand today as it was tomer base, emphasizing lower-cost goods that ap- in the city’s industrial peal to price-conscious customers. Some retailers heyday. have developed particular niches serving specific ethnic markets.

Rents for first-floor retail space along Main Street are reported to range from $20 to $30 and even $35 per square foot, indicating a healthy level of retail activity.

Paterson’s retailers have developed market orien- tations and strategies that differentiate them from the regional malls and shopping centers that encircle the city. Though downtown does not offer the full range of goods and services typically of- fered by national chain retailers or sought by the area’s middle-income residents, it does fill a partic- ular need quite successfully.

R.J. Brunelli & Co., Inc. reports that the 21-mile stretch of Route 46 south of Paterson and I-80, with 160 properties of 5,000 square feet or more, offers 5.59 million square feet of retail space with vacancies of only 1.5 percent. FROM THE COLLECTION OF LEONARD A. ZAX While the low vacancy rates in and around Pater- son indicate a healthy retail market, it is impor- come, that estimate could be as much as 20 percent tant to keep in mind that retail development can- lower than the city’s actual expenditure potential. not lead a revitalization effort. Few retailers can These retail dollars are currently being spent not take the long view and invest in an area that does only in Paterson but across northern New Jersey, not yet have the market potential to support their in New York City, and in other parts of the coun- retail operations. Small, local entrepreneurs typi- try by vacationing Patersonians. Recapturing cally lack the capital required to operate at a loss these dollars for new Paterson retailers will de- for several months, let alone a couple of years, be- pend on a retail mix and environment that can fore an area is revitalized. National chains have a compete with existing malls and shopping centers. wide variety of alternative locations available to them and will not open stores in locations that do With significant new residential development, not meet their threshold requirements for con- particularly housing at higher price levels than sumer income and potential sales. currently exists in Paterson, the expenditures that Paterson retailers can draw on will expand. Paterson’s concentration of 149,000 or more Following residential expansion, opportunities to residents in an area of eight square miles offers attract and support new retail space will emerge. a significant market for certain types of retailers. Claritas, a national data provider, estimates that Creating an environment that is more inviting and Paterson residents have the capacity for $347 supportive of the retail customer can increase re- million in shoppers goods purchases and an addi- tail sales in Paterson. Easy-to-find and convenient tional $175 million in convenience retail purchases. parking reserved for short-term use will enhance Given the Census undercount of Paterson resi- the retailer’s ability to compete with area shop- dents and the informal economy of unreported in- ping centers and their free parking lots.

Paterson, New Jersey, December 7–12, 2003 17 Particular opportunities exist for additional ethnic ity of life through continued investment in up- restaurants that will draw patronage from Pater- grading of the public school system, reduction of son as well as surrounding towns. Marketing ef- crime, and creation of public spaces and parking forts to promote Paterson restaurants, and cre- resources. The goal of improved quality of life is ation of additional retail spaces appropriate for best achieved by focusing on a single neighbor- restaurant use, will support authentic ethnic food hood or two for a period of time, building on exist- operations. ing assets, and then allowing the market to re- spond to enhanced market demand. Market Potential Conclusion There are no quick fixes in economic development. The panel believes that Paterson should build What it requires is a continual program of suc- from its unique strengths of ethnic diversity, his- cessful small projects and investments that over tory, riverfront setting, and the city’s compact, time add up to create an enhanced environment walkable layout. Paterson’s greatest near- and that attracts private reinvestment. Success mid-term market opportunities lie in residential breeds success. development. Attracting new residents will de- pend on overall efforts to improve the city’s qual-

18 An Advisory Services Panel Report Planning and Design

n responding to the sponsor’s request for de- Two important goals of the Transit Village Initia- sign guidelines appropriate for a transit vil- tive are to reduce traffic congestion and to im- lage, the panel first assessed the feasibility of prove air quality by increasing the number of I creating a transit-oriented development in the transit riders. Studies have shown that greater vicinity of Paterson’s train station. The panel iden- housing options within walking distance of a tran- tified the major assets and activity generators sit facility—typically within a one-quarter- to one- within the area and assessed their potential to half-mile radius—do more to increase transit rid- contribute to the viability of a transit village. As ership than any other catalyst. Therefore, the part of this analysis, the panel evaluated the mer- Transit Village Initiative seeks to attract housing, its of the development proposal currently under businesses, and people into communities with consideration by the city for the Center City site. transit facilities. The panel recommended several action steps that the city should take to improve mobility and park- The benefits of being designated as a transit vil- ing in the transit area. This chapter concludes lage community include priority funding and tech- with a set of design guidelines that can help shape nical assistance from some state agencies, and eli- the creation of a successful transit village in Pa- gibility for grants from NJDOT’s $1 million in terson and in other cities in New Jersey. annual transit village funding.

Transit Village Defined Transit Village Criteria In recent years, cities throughout New Jersey and A community must meet specific criteria defined across the country have seen a resurgence of new by NJDOT and NJ Transit to be designated a residents and housing development in their urban transit village. The criteria include the following: cores. This renaissance in urban housing results from a convergence of several forces: significant •A commitment within the community to grow public sector investment in downtown cultural, jobs, housing, and population; entertainment, and sports venues; a younger gen- •A transit facility rail or a light-rail station, a eration with fewer prejudices against urban living ferry terminal, or a bus hub or a bus transfer and a preference to live near work and play; and station; new interest in urban infill development on the part of production builders. Downtown residents •Vacant land and underutilized buildings within offer many benefits to cities, including a built-in walking distance of transit where redevelop- constituency for urban retail, commercial, cultural, ment can take place; and entertainment activities. • An adopted land use strategy for achieving The New Jersey Department of Transportation compact, transit-supportive, mixed-use develop- (NJDOT) and New Jersey Transit (NJ Transit) ment within walking distance of transit. This spearheaded a multi-agency effort known as the can be in the form of a redevelopment plan, zon- Transit Village Initiative. The Transit Village Ini- ing ordinance, master plan or overlay zone; tiative strives to help revitalize communities around transit stations to make them appealing •A strong residential component and a wide vari- choices for live, work, and play, thereby reducing ety of housing choices within walking distance reliance on the automobile. of transit;

Paterson, New Jersey, December 7–12, 2003 19 • “Ready-to-go” transit-oriented projects that as a small, tightly knit, self-contained, industrial can be completed within three years; city with a rich variety of industrial and commer- cial uses and a grid of pedestrian-friendly streets. • Pedestrian- and bicycle-friendly streets and Two main shopping streets—Main and Market pathway frameworks; streets—and several major centers of employ- •A community that sees its transit station as the ment including county government offices, local focal point of the community and uses its station businesses, and the Passaic County Community plaza as a gathering place for community activi- College energize the downtown business core. Some 40,000 people are employed in downtown ties such as festivals, concerts, public cere- Paterson. monies, and farmers markets; 5th Ward Neighborhood •A transit station that is included in a station area management plan, a special improvement The area to the east of downtown is characterized by a tightly knit grid of residential-scale streets; a district (SID), or is part of a Main Street New variety of small single-family houses on small lots; Jersey designation; duplexes; apartment buildings in two-, three-, and • Planning policies that strive to minimize auto- some four-story configurations; neighborhood- mobile use by maximizing the appeal of transit, scale, street-level retail; churches; and schools. In reducing parking requirements near transit sta- other words, the area is a model of traditional tions, and implementing shared parking solu- neighborhood development. The missing elements tions wherever possible; are trees along the streets, a system of parks and urban open space, and newer housing types with • Support for local arts and culture; and enclosed garages or off-street parking. • Guidelines that support the historic and archi- Train Station Area tectural integrity of the community by ensuring that new buildings blend in with the existing The area surrounding the train station is defined buildings. by street-level retail along Market Street and mu- nicipal parking facilities. The panel believes this Paterson Transit Village Area Strengths area should be targeted for higher-density, mixed- use development that will create a 360-degree ac- Paterson’s transit village study area is defined by tivity center linking the downtown core with the a one-half-mile radius around the Paterson train 5th Ward neighborhood. Development should em- station that extends in the direction of the Great brace both sides of the rail line. The side nearest Falls Historic District to the west, and to Madison the Center City site should accommodate the Avenue and the Conrail tracks to the east. The needs of vehicular and bus traffic, commuter park- area lies within a comfortable five- to ten-minute ing, and heavy foot traffic, and should present an walking zone. It encompasses approximately 250 “urban gateway” image of downtown Paterson. acres, and includes most of the downtown busi- The side facing the 5th Ward should be designed ness core and much of the 5th Ward neighbor- to reflect the surrounding community and be inte- hoods east of the central business district. grated into the neighborhood with such features as public art, inviting public spaces, opportunities Within the transit village area are several major for recreation and relaxation, and attractive street activity generators and physical assets that con- furniture. tribute to the viability of a transit village. The panel’s assessment of each of these key assets is The Government Center discussed below. While it is unlikely that this area will see signifi- cant new growth in the future, it has one of the The Downtown Business Core largest concentrations of employment in down- The urban fabric and scale of Paterson’s Center town Paterson, providing jobs for some 22,000 City is still very much intact and reflects its roots people. Its location opposite the Center City site

20 An Advisory Services Panel Report is important as it can provide a potential customer base for future retail and residential development on that site. Bus Terminal Over 26 cross-town and regional bus routes origi- nate from the Broadway bus terminal served by New Jersey Transit and Spanish Transportation. The panel considered the possibility of relocating the bus terminal to the train station area to create an intermodal transit center. However, because of the terminal’s location on the edge of downtown and its ready access to regional roadways, the panel concluded that moving it to the train station would add even more bus traffic to the area’s al- ready congested streets. Instead, some bus traffic FROM THE COLLECTION OF LEONARD A. ZAX could be rerouted to serve the train station when commuter rail ridership increases. The panel believes that Memorial Drive and Ward The corner of Main and Passaic County Community College Street offer the greatest potential for new infill Market streets is still the development. As part of the main circulation heart of downtown Pater- Passaic County Community College (PCCC) is a street system ringing the downtown business son. These streets— key downtown activity generator. With an enroll- core, they are wider in width and carry the high- along with Ward Street ment of over 6,000 students, activity extends well and Memorial Drive— into the night. PCCC has grown rapidly in the est volume of traffic. provide a strong street past few years, and the college has ambitious Parking on these streets should be programmed network for the proposed plans for expansion in the immediate vicinity of to reinforce connections to adjacent centers of ac- transit village. the existing campus. A central issue for the col- tivity, including connections to the Great Falls lege is the need for contiguous space that will link Historic District and the potential light-rail sta- the expansion program together. The panel under- tion area on Ellison Street. stands that to help achieve this objective, a new municipal parking structure is proposed for Memorial Drive. The panel recommends that this Parking Recommendations new parking garage be carefully located where it The responsibility for planning, overseeing, and can serve not only PCCC but also future residen- managing public parking within the city’s bound- tial development in the transit village area. aries rests with the Paterson Parking Authority. Downtown Street Framework Established in 1948, the Parking Authority cur- rently oversees approximately 4,000 public park- Four major streets—Market, Main, and Ward streets and Memorial Drive—provide a strong ing spaces, both on and off the street. The major- arterial framework for the transit village area. ity of these spaces are located within the central Street tree plantings and beatification now under- business district. way help to accentuate the street grid. From a The Parking Authority’s portfolio consists of three transit village point of view, Market Street is the parking garages providing a total of over 2,000 most important of the four, as it links city hall and parking spaces and 11 surface lots with a com- the downtown retail core with 5th Ward neighbor- bined capacity of nearly 1,100 spaces. In addition hoods. Main Street performs a similar function, the Parking Authority controls 900 on-street me- moving north to south through the downtown tered spaces. core, one-half mile west and parallel with the rail line and train station. Both streets are lined with Parking revenues have increased steadily in re- street-level retail and some upper-floor-level busi- cent years. They reached $4.3 million in 2002 and nesses and housing. were forecast to grow to $4.6 million in 2003.

Paterson, New Jersey, December 7–12, 2003 21 Rates have been $1.00 per hour since 1996, with a Increase Parking Around St. Joseph’s Hospital daily maximum of $6.00 per day. Monthly permits The panel understands that the area surrounding are available in most parking facilities. Promo- St. Joseph’s Hospital is in dire need of additional tional coupon books and parking stamps are avail- parking. The city might consider exploring the able and can be used in lieu of cash. formation of a public/private partnership to in- crease parking in some form. The panel understands that future plans include development of at least two and possibly as many Parking Must Support Light Rail as four new parking facilities. These facilities are Additional parking will be needed to support the designated for the Historic Mill District, the pub- proposed multistation light-rail line. The Parking lic safety area adjacent to Passaic County Com- Authority should play an active role in the devel- munity College, and a third in conjunction with opment of this important resource. the Center City development. On-Street Parking Enforcement The panel made the following recommendations The enforcement of on-street parking regulations related to parking. currently rests with the Paterson Police Depart- Expand Parking Authority’s Jurisdiction ment, while collections are the responsibility of The Parking Authority’s scope of responsibility the Parking Authority. The panel recommends should be expanded to include areas outside the that the Parking Authority assume responsibility central business district and the Historic Great for establishment and enforcement of on-street Falls District. It should include secondary com- parking regulations. mercial areas such as South Main and East 21st streets, residential neighborhoods, light-rail Transportation Linkage station nodes, and the area around St. Joseph’s Recommendations Hospital. The panel considered regional transportation is- Conduct Parking Studies sues in light of Paterson’s new role as a transit vil- Comprehensive parking studies should be con- lage. They made the following recommendations ducted in areas exhibiting parking problems. It is for new transportation linkages that will improve imperative that parking demand be established regional transportation flow and at the same time and stratified by user groups and compared with support the functions of the transit village. available supply. A strategy and implementation plan should be developed to address parking Support Light-Rail Links to Hackensack and shortfalls. Beyond Historically, there has been very limited use of Furthermore, the Parking Authority should con- Paterson’s rail station for commuting purposes. duct a study to determine the demand for parking Thus, the primary challenge for bringing a transit in the central business district, including the pro- village to life is to establish a new pattern of com- posed Center City mixed-use development, based muting behavior. The panel reviewed available in- on the shared use of parking spaces. For example, formation on the proposed new light-rail route and parking spaces used during the day by retail or of- fice parking can be available in the evening for believes that the combination of light rail and Pa- residential parkers or entertainment and restau- terson’s existing system will provide walk-on ac- rant uses. cess to approximately half of the city. The light- rail system can connect to the city’s concentrated Increase Residential Parking Capacity commercial service and industrial uses, providing There currently is a critical shortage of residential access to jobs for many of Paterson’s citizens. The parking in most of Paterson’s residential neigh- operation of the light-rail system, linked to down- borhoods in and around Center City. To unlock the town and the main train line by efficient shuttle potential of housing conversions, adequate park- connection, will support downtown retail, tourism, ing capacity is imperative. parking, and residential functions. Such a system

22 An Advisory Services Panel Report can provide a tremendous boost to Paterson’s eco- A second loop could proceed east along Market nomic development. Street past Eastside High School, the Armory, and the Roberto Clemente School, north on Madi- The panel believes that implementation of the son Avenue to the proposed light-rail station at light-rail line is a critical element in activating the Broadway and Ellison Street, and then west on transit village, and it encourages the city and com- Ellison Street to the train station. munity to lobby aggressively for its timely devel- opment. In the meantime, redevelopment and The transit system should use state-of-the-art densification of downtown residential, office, and rolling stock that is attractive, fast, and fun. The retail uses within convenient walking distance to city should consider using equipment that runs on the existing train station should be pursued. alternate fuel. Provide a Parking Shuttle to Connect Downtown and Transit Stations Evaluation of Proposed Center City Parking in Paterson is clustered along Market and Development Project Main streets, with many of the existing surface The panel was asked to assess the development lots occupied by government workers from fed- proposal currently under consideration for the eral, state, county, and city offices. Their daily ar- 5.25-acre Center City site, to consider its suitabil- rival and departure adds to already congested ity and potential as a catalyst for the creation of a streets. These employees rarely use their vehicles transit village. Without question, the Center City during the day yet they occupy most of the pre- site represents an important development oppor- mium locations in the commercial area. tunity for the city. However, as significant as the The panel recommends that the Parking Author- site is, it is important to keep in mind that retail ity establish a parking shuttle system that will development cannot lead a revitalization effort. The development of such a large-scale, mixed-use transport full-day workers from remote surface project, no matter how well designed, will not lots at the edge of town to their downtown places stimulate sufficient residential development for of employment. The benefit of the shuttle would the creation of a true transit village. be twofold: it would relieve congestion by clearing the streets of employee parking, and it would free The panel strongly believes that the most impor- up additional transient parking spaces for com- tant catalyst for residential development in the mercial daytime use. transit village area will be targeted conversion of Create a “Bow Tie” Transit Loop existing underused commercial and historic struc- tures to market-rate housing, and selected new in- To provide better linkages between key destina- fill residential development. This strategy is the tions within the city, the panel recommends that cornerstone of the panel’s development strategies the city provide a transit loop that will connect the recommendations, and is described in detail in the Historic Mill District, the train station, the central next chapter of the report. business district, eastside residential and educa- tional institutions, and the Paterson Armory. While the panel cautions the city not to rely on a mixed-use project to galvanize new residential de- Depicted as a bow tie with the train station being velopment in the transit village area, the Center the “knot,” the transit loop route proceeds west City site does represent a unique development op- from the train station to its terminus point on portunity. It should be developed in a manner that Spruce Street in the heart of the Historic Mill Dis- will enhance and support other revitalization and trict. This western terminus point can be served housing creation efforts. by the parking garage proposed by the Parking Authority. The route continues south on Spruce The panel believes that significant limitations in Street to Ward Street, heads east on Ward Street the physical and programmatic elements of the through the government center and the Center proposed mixed-use project exist, and that the City site, and terminates at the train station. proposal should be reconsidered. First, there

Paterson, New Jersey, December 7–12, 2003 23 Concept plan for the Center City site and Railroad tracks surrounding area. Key: Housing over retail New four-story housing over retail Ellison Street Parking garage Civic or institutional building Green space Memorial Drive Market Street Main Street

addPedestrian green Clark Street spine

Ward Street

New parking garage Potential with ground-floor institutional restaurants site

should be greater emphasis on the housing compo- The panel’s recommendations for specific elements nent of the proposed Center City project and less of the proposed plan are summarized below. emphasis on the retail, entertainment, and office components. Street Retail Locating housing over large footprint “big box” Second, because the rate of absorption for the retailers is expensive and often results in a highly wide range of currently proposed land uses, par- compromised solution for the residential tenants. ticularly street-level retail, will take time, the In contrast, smaller retail tenants can easily be in- project will have to be developed in multiple corporated into urban neighborhoods. Community- phases. Therefore, the plan should employ a scale retail generally fits within 60- to 65-foot simple, yet flexible, building typology conducive residential building depths, can function effec- to incremental development. The proposed atrium tively with front access for delivery and trash linking the major building blocks precludes this pickup, requires smaller-scale mechanical sys- option. tems, and needs less parking. Any development on the Center City site should be designed and built with an urban form and a The panel recommends that Paterson’s transit vil- human scale. It should be an outward-looking de- lage retail program be divided into two elements: velopment that engages the downtown framework small-scale, neighborhood support retail spaces and provides an open system of streets and public at the base of the building blocks fronting Main spaces, This should be supported by external ar- Street, and larger retail spaces such as urban su- chitectural elements such as windows and store- permarkets and mid-sized anchor tenants located fronts that promote an “eyes-on-the-street,” self- along Ward Street, the more heavily trafficked policing public and semipublic environment. downtown collector street.

24 An Advisory Services Panel Report Public Space The panel believes that Paterson’s urban form and The public space element of the current Center physical assets make it an ideal candidate for tran- City site proposal consists of an atrium space and sit village designation. Although there are many a small exterior courtyard hidden behind the ex- ways to improve and augment the existing urban isting and proposed buildings. Hidden public core, Paterson has: spaces in urban settings are an invitation to trou- ble. By removing the atrium, or by reworking it as •A connected, pedestrian-friendly environment a covered arcade, these spaces can be combined with active street-level retail and a connected into an interesting traffic-free pedestrian area sidewalk system that encourages pedestrian that can function as a “people” place. It can serve traffic; as a space for meetings and programmed events and a pedestrian connection between the govern- •A rich fabric of historic buildings and struc- ment center and city hall. Mixed-use/multifamily tures; residential buildings that bring vibrancy to the streets with ground level restaurants, outdoor •A mix of land uses; café seating, and live/work flex space can frame • An extended activity cycle; this area. Live/Work Space • Close-in, tight-knit neighborhoods within an Introducing street-level live/work units will ener- easy, ten-minute walk to the train station; gize the public spaces and will provide a built-in •A discernable town center and an active retail population to police them. Live/work units can ini- core; tially be designed as apartment flats, or two-level units for studios or small professional businesses, •A variety of housing types; and can later be re-tenanted for retail space as necessary. • Buildings located close to the street that en- courage a self-policing environment; Parking: Costs Savings Underground parking is expensive. A basic under- • Streets that form a connected network able to ground parking garage with sprinklers costs disperse traffic congestion; $30,000 to $35,000 per space, while above-grade parking structures cost $10,000 to $13,000 per •A supply of available public parking; space, depending on the quality of the architec- tural cladding. It is now common practice across •Prominent civic, educational, religious, and cul- the country to wrap an above-grade parking tural facilities; structure with retail shops, small tenant offices, •A comprehensive feeder bus systems; and residences, and flex space units. This approach re- duces parking costs, turns a potentially ugly park- • Redevelopment opportunities in the form of va- ing garage into an attractive urban building, and cant and underutilized land and buildings. makes the parking function all but invisible from public view. Planning and Design Recommendations Paterson Is an Excellent Candidate for for Creating Transit Villages Transit Village Designation The successful planning and design of a transit vil- Paterson’s urban fabric and scale is still very lage incorporates stakeholder participation in the much intact and reflects that of a small industrial visioning process, an understanding of density, city of the 1900s. As a result, the Paterson of the scale, and appropriate mixed uses, and attention early 21st century already has many characteris- to the public realm. With this in mind, the panel tics that make it ideally suited for a transit village. makes the following recommendations.

Paterson, New Jersey, December 7–12, 2003 25 Consolidate the Vision Success also hinges on building density and Building a true transit village requires attention achieving a critical mass of population that is able to scale and design. It is essential that the key to support such features as structured parking, principals in the process—the transit agency, city comprehensive property management services, and state policy makers and planners, and partici- and community building activities. It is not un- pating developers—seek the best planners and usual for TODs to start at densities of 40 to 75 apply design principles that will create a memo- units per net acre. Density at these levels does rable sense of place. not necessarily translate into high-rise buildings. Many urban housing developments being devel- The goals, objectives, and vision for the transit vil- oped across the country employ wood-frame con- lage area must be shaped by considerable commu- struction technology in three- and four-story con- nity and stakeholder input. Market and economic figurations that achieve these densities. analyses for the transit village area, past planning initiatives, and interviews with the appropriate Critics say that higher-density apartment projects public officials and community leaders should be result in enclaves as well as more churning and synthesized into a set of preliminary planning dis- rent rollover. In fact, experience shows that many cussion points. A series of charrette and workshop of these projects have spurred investment in their sessions should be held with stakeholders, busi- immediate area by creating new markets for in- ness leaders, community leaders, and neighbor- town living. Because these higher density devel- hood groups to create a sense of community “own- opments support a wider range of services, rent ership” of the plan. These steps typically provide rollover is often much lower than the typical more focused direction for ongoing implementa- apartment product. tion, making it less likely that the wrong project or issue will be studied in great detail to the detri- NAHB data drawn from the Census Bureau, the ment of the overall strategic planning effort for American Housing Survey, and HUD reports the transit area. demonstrate that multifamily development has a positive economic effect on the neighborhoods in Pump Up the Housing Density which it occurs, while its impact on traffic, prop- Transit-oriented developments (TODs) are not erty values, and school crowding is benign. For just about living close to work; many urban example, NAHB economists estimate that 100 dwellers do a reverse commute to their jobs in the new multifamily units typically add $5.3 million suburbs. TODs succeed because they provide a in local income—wages for workers, as well as more convenient and amenitized lifestyle than can profit for local businesses—to a city’s bottom line; be found in many of today’s suburbs. This is true $630,000 in taxes and other revenue for local gov- because TODs are developed at densities that can ernment; and 122 local jobs. On an annual basis, economically support a wide range of amenities the 100 units generate $2.2 million in local income, (clinics, health clubs, corner delis, transit options, $384,000 in taxes and revenue, and 47 new perma- restaurants, take-out food, etc.) and land uses nent jobs. (housing, retail, office, civic, and public spaces). TODs provide a connected, pedestrian-friendly Expand Housing Choices environment, reduce the need to drive for every Multifamily development is an important strategy household purchase, and facilitate community in- for smart growth. Higher-density housing, espe- teraction and neighborliness. Successful TODs are cially in infill locations, can expand housing op- not densified versions of suburban garden apart- tions in areas with limited housing stock, allowing ment complexes transplanted back to the inner people to live near transportation, jobs, cultural, city. Rather, they incorporate a sophisticated and entertainment amenities. Expanded housing urban form that is timeless and enduring—one choices that include multifamily housing can also that is as focused on the design and upkeep of the help revitalize neighborhoods by attracting resi- public realm as it is on architecture. dents—and the retail development that follows.

26 An Advisory Services Panel Report While infill development increases the downtown above, multifamily buildings designed as live/work residential base incrementally, it seldom results space, and street closures for public events or in enough critical mass of housing within a single block parties. location to support a traditional urban neighbor- Reclaim the Public Realm hood. In other words, this approach does not cre- ate a sustainable urban neighborhood quickly One of the essential elements in urban community enough to attract a significant share of the hous- development is the reclaiming and control of ing market back into the city center. A mixed-use street space. The goal is to populate the space development site, such as the Center City prop- with people who live, work, and play in the neigh- erty in Paterson, presents a unique opportunity to borhood, and who will protect and support it. build critical mass for the creation of a true urban Streets are the outdoor living rooms of urban neighborhood. The resident population brought neighborhoods and represent—in higher-density in by the project will be large enough to reclaim neighborhoods of this type—a significant percent- street space and support local shops and services. age of the urban open space. The transit village should provide a fully amenitized street space. In the panel’s experience, the demographic pro- This calls for outward-facing development with no files of urban transit-oriented developments fences or gates. Urban open space must have a include: clearly defined “owner” and be designed with no leftover ambiguous spaces between buildings. • People who are tired of fighting traffic, and are willing to give up the second car; Get the Retail Strategy Right Introducing retail into mixed-use developments • Diverse age groups looking for options to move requires discipline and an understanding of the up or down in housing size, depending on where function and nature of retail in an urban mixed- they are in their lifecycle; and use setting. Specifically, it requires an under- • Seniors who desire an independent lifestyle standing of the different requirements of neigh- while reducing their dependence on the auto- borhood support retail, main street retail, and mobile. destination specialty retail. The challenge is to understand the different needs of retail tenants, The new class of owners and renters attracted to commercial tenants, and residential tenants in these types of live/work neighborhoods is typi- terms of parking, security, servicing, and mechani- cally made up of singles, couples without children cal services. Key issues include: control over hours attracted to the urban lifestyle, and empty nest- of operation, parking management, street space ers downsizing and moving to a more convenient, activities, and competition for on-street parking labor-saving housing type than the typical subur- and traffic circulation. ban home. The footprint sizes and scale of retail should be Mix and Layer Uses kept in scale with residential building typologies. Zoning standards and overlay ordinances that af- For example, large overhanging retail roof space fect transit village areas should permit a high de- disconnecting the dwelling unit from the street, gree of design flexibility. For example, land use and large-footprint retail buildings, are not con- and zoning ordinances should permit layering and ducive to residential plumbing, HVAC systems, mixing of uses in a single building or street, in- and structural bay spacing. cluding the mixing of commercial, residential, civic, and cultural uses to extend the activity Street retail uses energize the street space with cycle. Above all, zoning should allow the commu- activity, shops, and with support services that nity to reclaim the street space by encouraging generate high densities of pedestrian traffic. How- street activity and by permitting the private use ever, it is important to realize that while retail of public space through more permissive land use may generate activity, the retail component of the regulations. Examples include outdoor café seat- transit village should not be the primary justifica- ing, kiosks, street-level “flex space” with housing tion for its development. Transit access can en-

Paterson, New Jersey, December 7–12, 2003 27 hance the retail market, but the market must be • An urban form that links neighborhoods viable without the transit component. Retail fol- through the orientation and identity of open lows other development; it is not a leading land space, retail, and building massing. use. The most important considerations for retail development are location, market, and design. •A development scale that is set by residential Proximity to transit is nowhere near the top of rather than commercial uses. the list. Retail cannot be forced, and nothing stig- • Activated sidewalks and streets with connec- matizes an entire development like failing retail. tions to ground-level retail, multiple front Good Design Matters doors, and on-street parking. Fundamental to the design principals governing • Street design standards created for the needs creation of a user-friendly transit village is the of the pedestrian as much as for the automobile placement and relationship of key project ele- —with narrow cross-sections, wide sidewalks, ments including buildings, parking, and roadways. on-street parallel parking, neck-downs, shade A sense of place is fostered not by the buildings trees, and traffic-calming techniques designed themselves, but by their ability to define public to deflect nonlocal through-traffic; spaces. Equally important is the scale of these ele- ments, which relates to their ability to welcome • Parking that is relegated to a hidden, secondary and engage pedestrians. New development should location so that development and sidewalks are promote outstanding design in residential devel- not interrupted; and opment, innovation in mixed-use neighborhood development, and creative landscaping. The fol- • External architectural design elements such as lowing design principles should guide the imple- bay windows, front doors, stoops, balconies, and mentation of transit villages: street-level amenities like shops, cafés, and health clubs that animate the streetscape. • Commitment to high-quality public infrastruc- ture that sends a signal that associated architec- ture will be of an equally high standard;

28 An Advisory Services Panel Report Development Strategies

evelopment is often thought of as getting used buildings and new construction on infill rid of the old and creating something brand and brownfield sites. new. But it is more accurate to think of it in • Facilitate the conversion of the upper floors of D terms of maximizing existing assets, of cre- commercial buildings along Main Street to resi- ating something better out of an existing fabric. dential uses. Whether in Atlanta, San Diego, or Paterson, • Facilitate the adaptive reuse of Paterson’s sig- urban revitalization is driven by housing. Resi- nificant yet underutilized landmark structures dents are the foundation and essence of any com- for housing. Opportunities include redevelop- munity. The panel believes that Paterson’s great- ment of the Armory and the Alexander Hamil- est opportunity for economic development and ton Hotel, and the reuse of historic mill struc- revitalization of its urban core is through the cre- tures, as has been successfully demonstrated by ation of new housing. The city has a rich base of the city. assets on which to build: a dense urban environ- ment, an enviable stock of underused commer- • Encourage Paterson’s major employers, such as cial and historic structures, existing transporta- St. Joseph’s Hospital and Passaic County Com- tion infrastructure, and proximity to regional munity College, to partner with private devel- employment centers and centers of culture and opers and investors to develop new and ex- panded facilities. recreation. • When appropriate, augment private sector Key Development Strategy housing development efforts with not-for-profit Recommendations housing creation. The panel made the following key development • When a critical mass of new housing units has strategy recommendations aimed at achieving the been absorbed into the transit village area, goals of: economic development in the form of new focus on attracting market-driven retail, office, dining, entertainment, and lodging develop- jobs, greater consumer spending, and increased ment. private investment; enhanced quality of life for residents through the creation of high-quality • Identify brownfield redevelopment sites to sat- open space and a wider array of live-work-shop- isfy anticipated new demand for commercial play opportunities within a cohesive, walkable en- uses driven by new residential development. vironment; reduced traffic congestion and greater use of existing transit infrastructure; and the Converting Upper Floors of Commercial creation of the transit village environment envi- Buildings to Housing sioned by the state of New Jersey and the city of Paterson: The numerous multistory commercial buildings along Main and Market streets now used only for • Focus first on encouraging privately-sponsored, ground-level retail represent a tremendous oppor- small-scale residential development projects tunity for new housing. In downtowns of all sizes, that take advantage of existing and proposed in all parts of the country, the conversion of under- transit infrastructure. Housing development op- used space above street-level retail to housing has portunities include the redevelopment of under- breathed life into abandoned central cores. The

Paterson, New Jersey, December 7–12, 2003 29 Market and Main streets •Creating new residences in what is currently are bustling and vibrant at abandoned space will bring new residents who street level, but upper will make further improvements to the struc- floors of buildings are tures and the neighborhood. mostly underused or vacant. • The conversions will provide needed new hous- ing opportunities for people in all stages of life, including members of extended families who wish to establish separate residences, young adults moving out of the family homestead, working families who want the convenience and amenities of urban living, and seniors seek-

MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT ing to downsize their housing needs. With Pa- terson’s strong employment base in the public panel urges the city to aggressively pursue the and service sectors, as well as its growing com- development potential of these underused assets. munity college student population, downtown Advantages of Conversion conversions will create housing opportunities that are both affordable and close to employ- The conversion of underused space in commercial ment locations. buildings to housing units offers many advantages: • Since the structures already exist, the capital • Adaptive use represents an immediate and required to convert them to housing will in most achievable means of creating additional housing cases be lower than that required for new con- units in the transit village area. Building supply struction, making it more feasible for develop- is plentiful; individual building investment re- ers to develop affordably priced housing. quirements are relatively manageable; and mul- tiple ownership provides dispersed opportuni- Turning Perceived Obstacles into Opportunities ties to participate in the housing creation Despite the stated advantages of pursuing hous- process. ing conversions in Paterson’s transit village area, • New residents will in turn create greater de- numerous concerns have been raised about the vi- mand for new and improved retail, dining, per- ability of these conversions. The panel accepts sonal services, and entertainment offerings that there is validity to some of the concerns. within the urban core, thereby generating new However, panelists also believe that perceived ob- tax revenue for the city and income for local stacles can be turned into opportunities. Finding businesses. workable solutions to the problems presented by housing conversion will give the city an opportu- • Increased cash flow resulting from the conver- nity to demonstrate to the development and in- sion of nonincome-producing space to income vestment communities that Paterson is a support- producing units will raise the value of building ive, ready, willing, and able partner in the housing owners’ assets, and will in turn expand the city’s creation process. The panel suggests the following tax base. Paterson’s existing five-year tax set of approaches to address challenges related to abatement ordinance ensures that owners will housing conversion: be able to capture more of the increase in value immediately upon completion of a conversion. Increased Traffic Congestion. The addition of hous- Thereafter, the community will further benefit ing units leading into and within an already con- from increased ratables associated with these gested central core area raises the concern of properties. parking availability and increased traffic. While it is true that new residential development in the • Placing more housing units in the vicinity of ex- transit village will strain existing parking capac- isting and proposed transit lines will increase ity, the increased demand will justify the creation usage of the city’s transit infrastructure. of a new parking facility with sufficient capacity

30 An Advisory Services Panel Report for new residents, shoppers, and nearby office employees. Additional surface parking capacity can be created through selected, ad hoc acquisi- tion of property in close proximity to the new housing units.

New residential development in close proximity to transit infrastructure will encourage greater use of public transit, thereby reducing the demand for additional parking capacity.

Increased traffic is inevitable, due to the use of currently vacant space. The panel recommends that traffic studies be undertaken and mitigation measures that have been used in other similar sit- uations be considered and implemented. Such

measures could include things such as reduced on- MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT street parking during peak hours, reversible traf- fic lanes, designated loading zones, dedicated turn lanes and selected roadway widenings.

Building Codes. Concern has been raised that building, fire, life-safety, and disabled access codes preclude economically feasible conversion of these buildings for residential use. While the panel con- curs that in some cases, individual building con- ditions may prove to be prohibitively expensive to remedy or mitigate, the panel also knows that numerous cities throughout the country have adopted adaptive use ordinances. Such ordinances tailor the applicable codes to the existing build- ings in a way that appropriately balances the need for safety with the need for revitalization of va- cant and underutilized assets. Adaptive use ordi- nances in Los Angeles and Seattle have facilitated MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT the creation of over 2,000 units of housing in 1920s- deterioration, building code violations, ignorance The panel recommends era vacated commercial structures, and provide or disregard of applicable municipal programs that the upper floors of an excellent example of such code balancing. New which benefit the property owner, misunderstand- commercial buildings Jersey’s Separate Rehabilitation Code has already ing of applicable tax codes, and tenancies that are lining Market and Main demonstrated the state’s willingness to undertake not consistent with community objectives for the streets be converted to and facilitate such a balancing exercise. particular location. new apartments and con- dominiums. Absentee Landlords. A number of buildings with It is not surprising that an absentee owner who good conversion potential are owned by individu- is currently deriving significant economic benefit als and entities not located in Paterson. While this solely from a ground-floor rental might not im- is not in and of itself a negative, absentee owner- mediately see the benefit of converting the up- ship can reflect a misalignment of community and per floors to housing. To overcome this initial owner interests. This misalignment often becomes resistance, the city can avail itself of several evident through deferred maintenance, physical approaches.

Paterson, New Jersey, December 7–12, 2003 31 First, the city can proactively seek out and edu- asset’s value, is in addition to the additional cash cate absentee owners about the economic bene- flow to the owner created by Paterson’s five-year fits of conversion. Outreach efforts can include property tax abatement ordinance, as well as the preparation and review of cash flow pro formas additional depreciation expense for the new capi- and helping owners to meet and consult with qual- tal improvements. ified development, design, financial, and construc- tion professionals. The city should clearly demon- Negative perceptions about the quality of life and strate to building owners the economic benefit of safety of the corridors where these buildings are existing city incentives, such as the sidewalk im- located, particularly during the evening hours, provement fund, the façade improvement pro- must be aggressively combated. The “safe and gram, city parking programs, and relaxed build- clean” emphasis of business improvement districts ing code requirements under the rehabilitation throughout the country has gone a long way to- statutes. wards changing perceptions grounded in past re- alities. In fact, Paterson itself has already proven Second, the city can stimulate conversion activity this to be the case with the installation of en- by undertaking a demonstration project in an hanced lighting in the South Market Street corri- available vacant commercial building. The goal dor, as well as the ongoing urban tree planting would be to show building owners the cost, time program. More importantly, as more residents frame, and potential rental stream of a building move into these converted properties, greater ac- conversion. tivity on the sidewalks and fewer abandoned and Third, where proactive education measures are darkened upper floor windows help create an en- not successful in securing owner participation in vironment that is perceived as more friendly, safe, the conversion process, the panel recommends and comfortable. that the city force compliance, on a selective basis, Access to Upper Floors. The panel heard concern through various coercive means available. These regarding blocked access to upper floor spaces means may include building code enforcement through current ground floor retail space in many and, ultimately, the power of eminent domain. buildings suitable for conversion. Admittedly, this This three-pronged approach is equally applicable will take a concerted negotiation effort on behalf to locally based ownership that resists movement of the landlord with its retail tenant to secure the towards the conversion process. Panel members necessary access. Building code enforcement may note that they have been advised of the percep- come into play as well. Ordinances that encourage tion that the practice of assessing these properties the maximum use of storefront space may also at less than full value is a disincentive for convert- need to be revisited. When negotiations with own- ing the upper floors to residential. This is a false ers and code enforcement efforts fail, the panel be- perception and suggests the need for an effective lieves that the Housing Authority may be able to outreach program by the city. condemn portions of a building to secure the nec- essary access. This has been done in other states. Based on its experience with housing conversions in other cities, and on Paterson’s residential rental Suitability for Housing. The panel heard some con- rates, the panel believes that any concerns regard- cern about the suitability of the space in these ing the economic infeasibility of these conversions buildings for housing use. Historically, in urban is misplaced. Current market rental rates of $18 areas throughout the United States and else- per square foot point to a building valuation of ap- where in the world, living above retail and office proximately $200 per square foot. Using a conser- space has been more common than not. The cur- vative estimate of conversion costs of approxi- rent wave of urban living in converted commercial mately $125 per square foot, $75 per square foot structures suggests that there is indeed market of value is added to the building, generating an acceptance for such housing. With Paterson’s annualized 14 percent cash-on-cash return for the healthy demand for housing, and with vacancies of owner. The return, along with the increase in the about 5 percent, concern about a lack of demand

32 An Advisory Services Panel Report for attractive, well-located, affordable housing The historic buildings should be put to rest. along the old mill race- ways can be converted School Capacity. Increasing the number housing into desirable new apart- units could raise concern about putting additional ments and condomini- pressure on public school capacity. However, the ums. smaller size, the location, and the configuration of the housing units proposed for Paterson’s transit village area will appeal more to single and child- less couples than it will to larger families. Even so, the state of New Jersey expects to allocate in ex- cess of three-quarters of a billion dollars in new school facility improvements, which should be suf-

ficient to mitigate any additional capacity demand MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT placed on Paterson’s schools.

Opportunities for Adaptive Use and Infill Development All of the advantages and opportunities associated with the conversion of underutilized commercial structures described above are equally applicable to the adaptive use of historic structures, as well as to the redevelopment of underused land.

As a gateway community, Paterson’s population is inherently transient. People entering the commu- nity typically rent housing. Consistent with this pattern, more than two-thirds of the households living in Paterson are renters, in contrast with the national average of one-third. There are many community and personal benefits to having a larger owner-occupied residential base. These include a more stable employee base, pride of ownership, and a sense of belonging. Homeown- ers create demand not only for retail and other commercial amenities, but also for a more diverse mix of housing opportunities. The historically high appreciation of owner-occupied property yields a MASTER OF INFRASTRUCTURE PLANNING PROGRAM, NJIT higher tax base for the city than does rental prop- erty. In addition, converting rental property that opportunities in Paterson for both. For example, is subject to tax abatement into owner-occupied Paterson’s historic mill properties offer ideal op- property will immediately place the property on portunities to create for-sale housing. The conver- the tax roll. sion of the upper floors of commercial buildings into for-sale housing should also be considered. The benefits of housing conversion and the adap- Again, through its Housing Authority, the city has tive reuse of historic structures apply to the de- an opportunity to take the lead on a demonstra- velopment of both rental and affordable for-sale tion project and to jump-start the redevelopment housing. The panel believes there are many good process.

Paterson, New Jersey, December 7–12, 2003 33 It should also be noted that the relatively low cost larger brownfield sites around the perimeter of of homeownership in Paterson is conducive to for- the city. Such users bring significant tax revenue sale residential development. With the many no- and provide residents with conveniently located and low-downpayment programs available today shopping opportunities. Care must be taken in se- through federal and state governments, and with lecting the appropriate larger retail offerings so today’s historically low interest rates, a $150,000 that a balance of local and national retailers is mortgage translates to a monthly payment of ap- maintained. A good example is the Home Depot proximately $900. Even with the addition of prop- project, which is bringing needed home improve- erty taxes and utilities, home ownership costs are ment goods to the community without displacing comparable to the $1,000 per month or so rent lev- significant local retail offerings. els for a typical Paterson rental unit. With as- sumed development costs on the order of $125 per Future Office Space Development square foot, for-sale residential development is economically feasible. Rental rates for office space in Patterson are cur- rently too low to justify new speculative office de- The panel believes that potential ownership op- velopment. However, existing office space users portunities primarily serve the demand of those such as the Board of Education, area hospitals, already living and working in Paterson, or those and various other public agencies might need ad- desiring to do so. In the future, with the larger ditional space. This demand may present opportu- stock of housing in Paterson, coupled with the ex- nities for build-to-suit office space in existing panding and extensive regional transit network, structures, such as the Fabian Theater or the Ar- this base may also provide ownership opportuni- mory, or in vacant upper floor space in buildings ties for those working elsewhere in the region. on Main and Market streets.

Future Retail and Entertainment Future Hospitality Development Development Designation of the Great Falls Historic District As noted earlier in this report, urban residents as a national park, coupled with new development are the driving force for the creation and ongoing along the Passaic River, could create opportunities vitality of urban retail, entertainment, and dining for small to medium lodging development. In the services. Paterson’s urban core and surrounding shorter term, St. Joseph’s Hospital has an im- neighborhoods have a rich and diverse array of mediate need for expanded conference space and thriving ethnic retail and dining offerings. The ad- overnight visitor accommodations. Care should be dition of residents made possible by the conver- given to siting and configuring such facilities so sion of upper floors in commercial buildings, cou- that they provide a greater community benefit pled with the adaptive reuse of historic structures than just new hotel capacity. For example, meet- and new infill development, will increase the de- ing space can be made accessible for community mand for additional retail, dining, and entertain- meetings, and parking can be made available to ment options within the city’s urban core. the community at large. A critical mass of new residents in the transit vil- lage area will also create a market opportunity for mass merchandisers who can take advantage of

34 An Advisory Services Panel Report Implementation

he panel recommends that the city aggres- state has not seen progress on previously funded sively pursue designation as a transit vil- projects. lage. Paterson meets the state’s criteria for T transit village designation, and the city’s Also, tracking the decision-making process is diffi- economic development initiatives are entirely sup- cult because there are no defined “point persons” portive of the state’s objectives. within city government. Lack of appropriate staffing is viewed by the community as the city The creation of a transit village requires much being “penny wise and pound foolish,” especially more interaction and collaboration with multiple when lack of capacity means failure to use com- public and private stakeholders than does conven- mitted public funds. This lack of capacity must be tional, single-use planning and development. And addressed if redevelopment in the transit village this enhanced need for collaboration requires new area is to occur. forms of implementation and organization. The panel’s implementation recommendations are summarized in this chapter. Create a Transit Village Development Corporation Address City Staff Capacity To address the lack of city staff capacity, and to Before developing an implementation strategy, draw key stakeholders into Paterson’s transit vil- the panel first looked at the city’s capacity to exe- lage development effort, the panel recommends cute the recommended development strategy. In that the city create a Transit Village Development the panel’s view, the city does not have sufficient Corporation (TVDC). The TVDC could merge pub- staff to undertake the kinds of activities described lic and private stakeholders and be charged with in this report. oversight of the creation and implementation of a master plan to develop a transit village in Paterson. Although the city staff is supplemented in num- bers and experience with a variety of consultants, Successful implementation of a transit village institutional memory is lacking in certain depart- will require unwavering, long-term commitment ments. Questions about city affairs are addressed from all stakeholders who are working together to to former employees who are now employed as achieving a shared vision. A master plan must be consultants to the city. City functions such as code developed and approved; an appropriate design enforcement and engineering, which have a great oversight and review process must be established; impact on development, seem to lack full-time em- and a multi-disciplinary staff will need to work to- ployees. As a result, city services and improve- ments suffer. gether from the inception of the transit village de- velopment plan to full buildout of construction and For example, the panel heard that millions of ongoing management and maintenance. dollars of state funds have been committed to the city in the last five years but none of the funds If a TVDC is not created, the panel urges the city have been used—a “massive problem of coordi- to hire experienced development professionals who nation and implementation” according to several will report directly to the mayor and city council, interviewees. The panel heard that state funds and who will have the same responsibilities as for parks have not been released because the described below.

Paterson, New Jersey, December 7–12, 2003 35 Why Create a TVDC? The panel advises the city to extend its search for appropriate expertise to the broader region. It is Transit-oriented developments draw on resources important to remember that Paterson is a regional and forge connections from beyond the city limits. city, not just a bedroom community, and a tran- They require an organization that can connect sit village will represent a major development public and institutional authorities with shared in- project in the region. Paterson’s revitalization terests in transit villages (city, NJDOT, NJ Tran- will benefit not only Paterson, but also the entire sit, Parking Authority, PCCC, etc.) not only with region. each other, but with private stakeholders such as larger employers and business owners in the Spe- The executive director will work closely with the cial Improvement District. mayor and city staff. In fact, he/she will be an ex- tension of that staff in many ways. For example, Transit villages, especially those undergoing the executive director will likely “chaperone” changes such as Paterson’s, need a plan that be- projects proposed for the designated transit vil- longs to the city as a whole and not to any single lage area through the necessary departmental administration. This will provide continuity and and public approvals. predictability for existing and prospective commu- nity members, developers, and other sources of In addition to the creation of the TVDC, the panel private capital over the coming decades. recommends that certain changes be made at city hall to facilitate the development of the transit vil- The city needs an entity with a professional staff lage. As currently structured, the Department of that is enabled to work across various city depart- Community Development, through its divisions ments and other involved stakeholders to assure of Community Development, Housing, Economic timely progress on plan execution. The staff does Development, Planning and Zoning, and Historic not need to be large, but it does need to be focused. Preservation, will play a defining role in imple- menting the transit village, and will have a peer TVDC Structure relationship with the executive director of the The TVDC should have a board of directors that TVDC. As such, the panel feels that the profile consists of eight to 12 voting members, represent- of these divisions should be raised. These critical ing both the public and private sectors. Appropri- departments, plus a dedicated grants manager, ate public and quasi-public members may include should be removed from the Department of Com- the mayor, a council member, senior representa- munity Development and reorganized as a sepa- tives from NJDOT, NJ Transit, the Paterson rate department. The new department would Parking Authority, the Downtown Paterson Spe- have a direct reporting relationship to the mayor, cial Improvement District, and PCCC. Private giving its director access across department lines sector representatives should include persons and underscoring the critical importance of the with relevant professional expertise (engineers, transit village. Among the priorities of this new appraisers, architects/planners, developers, etc.) department would be to provide support services who live in or have significant business interests to the TVDC and facilitating implementation of within Paterson. Given that there are other orga- the transit village. nizations in Paterson with a commitment to revi- talization, perhaps some could be consolidated in TVDC Funding the TVDC. It is the panel’s understanding that the state re- The TVDC must have an executive director with turns 3 percent sales tax from the Urban Enter- appropriate professional credentials to execute prise Zone to the city (in addition to the city also the policies and plans of the board. The executive receiving the benefit of a lower tax rate). The director should report to the board and should panel recommends that some portion of the sales have appropriate administrative support, plus a tax that is returned to the city—perhaps one- dedicated grants specialist (full-time preferred). third—be designated for operations of the TVDC

36 An Advisory Services Panel Report and its staff. If this is not feasible, then the city The objectives of the analysis of each potential should approach the Paterson Restoration Corpo- development site should include the following: ration for initial operational funding, with a direc- • Determine how a property is positioned in the tive to secure permanent funding thereafter. Other marketplace; potential sources of permanent funding include NJDOT, NJ Transit, and the Parking Authority. • Assess its advantages and disadvantages com- Sources of funds for development incentives and pared to its competition; other transit village revitalization costs are dis- cussed later in this chapter. • Gauge the extent of developer interest; and • Classify the site according to its readiness for Action Steps for the TVDC development.

The panel makes the following recommendations As initial steps, the city should prepare an inven- for actions that the TVDC can take to undertake a tory of its available development parcels and en- successful transit village development process. gage the services of a competent real estate con- Develop a Transit Village Master Plan sulting firm. It will be the responsibility of this firm to evaluate and rank each site according to One of the first goals for the TVDC should be to when and how it is to be marketed for develop- shape and define the vision for Paterson’s transit ment. For example, first priority designation will village through a process that results in a fully ar- go to those sites which have sufficient private sec- ticulated master plan. The plan development pro- tor interest and are deemed ready to market; sec- cess should incorporate and consolidate all other ond priority sites will have some private sector in- planning efforts for the transit village. Because terest but have existing constraints that need to the plan will represent the collective vision for the be overcome; third priority designation will go to transit village, it is imperative that the process in- those sites which not only lack private sector in- cludes broad public participation, education, and terest but need substantial and sustained city outreach efforts. work to make them marketable.

The plan should include design standards that The real estate analysis should be updated period- ensure consistent, high-quality development, but ically as data change. The analysis should indicate that still have enough flexibility to promote cre- whether linking a site to public incentives and sup- ative ideas. The plan should incorporate a com- port programs would alter or improve its ranking. prehensive branding and marketing program that will promote the transit village as a great place to The real estate analysis should be used by the city live, work, play, and shop. as a basis for establishing a well-considered mar- keting program and developing a solicitation of- Inventory and Assess Development Sites fering document. (See page 38.) It is to the city’s The approach of “if you offer it, development will advantage to offer sites that have been market- come” may have been a reasonable approach at tested and that are likely to be successfully devel- one time in Paterson’s development history. How- oped. It would help to eliminate the image of ever, as a largely built-out city with few vacant the city as one that offers sites and development sites remaining, this approach is no longer appro- opportunities only to leave them to languish for priate. Additionally, demographic and retail mar- years before being built, or as has occurred in keting changes are freeing up buildings that are several cases, to never be built at all. If done prop- strategically located and can be recycled for other erly, the real estate analysis will allow the city uses. Therefore, the city needs a blueprint for a to better manage its real estate development re- realistic and achievable marketing strategy to sources. The sites will be marketed when they maximize its return from the development of its are ready, and the city will save time, money, and real estate assets. staff resources.

Paterson, New Jersey, December 7–12, 2003 37 Streamline the Solicitation and Approval • Use sophisticated, experienced real estate bro- Process kers or consultants to expedite the marketing of The panel believes that the city’s planning and de- city-owned sites in the transit village area and velopment process needs to be streamlined. Exist- to reach a broader regional audience. ing procedures appear confusing, cumbersome, and time-consuming. In real estate development, time • The TVDC should have oversight of the RFP means money. A slow process can be a significant process for transit village–related projects. disincentive for new private investment. RFPs should be used as an opportunity both to market Paterson and to negotiate the best The panel believes that the TVDC can help stream- financial package (with the most reliable, credit- line the process. With multiple priorities needing worthy developer). The distribution of the RFPs the city’s attention, development items are often should be at least regional so as to maximize deferred to future meetings, delaying the ap- access to “best practices.” Posting the RFPs proval process. With a TVDC, the city will have an on the American Planning Association website entity that will specialize in transit-oriented devel- can yield unanticipated respondents. Paterson opment. The board members will have an experi- will benefit from the increased activity in enced real estate professional on staff and they will older urban centers around the country. Suc- develop expertise and an understanding of the nu- cessful models decrease risk for investors and ances of projects, building institutional capacity. The TVDC will be able to address and resolve is- bankers, and, hence, will increase interest in sues before recommending a proposal to the mayor and competition for Paterson. and council for action, thereby speeding the pro- • The TVDC should actively be involved with the cess. To answer those who might be concerned negotiation of public/private ventures. about “another layer of government approvals,” the city and the TVDC should have as a goal close cooperation and agreement on design standards so The Role of Regulatory Agencies that developers get consistent feedback from city City planning, zoning, and other regulatory agen- and TVDC staff. A consistent, streamlined pro- cies have a number of opportunities to support cess will greatly enhance the likelihood of attract- development of the transit village area through ing private developers and investors to transit vil- changes to local regulations, modifications of es- lage development opportunities. tablished policy or practice, and amendments to The city’s development process should strive to their respective work programs. Each city agency be more like private sector negotiations. The city and department should study opportunities to em- currently processes approvals for development phasize transit village concepts in their existing projects in much the same way as approvals to functions. procure goods and services. This does not recog- nize the highly sophisticated nature of real estate Financing Transit Village Development development transactions. The panel feels that the development process will be markedly improved Projects by removing development projects from the tradi- The panel makes the following recommendations tional procurement process and creating a sepa- for effective financing of transit village develop- rate set of development procedures, overseen by ment projects. the TVDC, with an emphasis on marketing oppor- tunities rather than purchasing goods. Establish the Ground Rules and Don’t Change Them Other action steps that the panel believes will im- It cannot be emphasized too strongly that a pri- prove the approval process include: mary incentive for private sector development • Ensure that the new zoning regulations provide will be a well-defined transit village vision that flexibility in the application of parking require- has “staying power” beyond any particular ad- ments, establishing maximum rather than mini- ministration. New businesses and real estate de- mum space requirement for projects. velopers need to know that if they make an invest-

38 An Advisory Services Panel Report ment in Paterson’s transit village area, the vision • Other tools that have been used successfully by and roadmap for accomplishing it will not change. cities to support transit village development in- clude: land writedowns, environmental cleanup, The approaches to financing a development proj- marketing/promotion, density allowances, re- ect by the public and private sectors and the trans- duced parking requirements, infrastructure actions that are made will vary depending on the support, transit infrastructure investment market situation. For example, in a strong mar- funds (TIIF), and public/private partnerships. ket, the price that can be obtained for any devel- opment product, whether office, apartments, or Maximize Existing Funding Sources retail, exceeds the physical cost of development The city of Paterson, Passaic County, and the by some amount that assures the developer an state of New Jersey offer a dazzling array of pro- acceptable profit. In this case, market-rate devel- grams that could support business development opment will occur of its own accord and there is and infrastructure improvements in the proposed no need for public financing subsidies. However, transit village. Additionally, a number of very spe- when the market is weaker, as it has been in Pa- cific programs for existing and new businesses are terson for a number of years, public subsidies are available for Paterson’s Urban Enterprise Zone, required to attract private investment which covers over 30 percent of the city. The pro- grams range from incentive programs for new and To take full advantage of development opportuni- expanding businesses to direct loans and grants to ties in the downtown area and the area around the assist in financing working capital, fixed assets, proposed new light-rail line, the city will need to new equipment and building acquisition, and con- make some changes in the management and allo- struction. The following key support programs are cation of its economic development and redevelop- available through the Paterson Restoration Cor- ment program funding. City officials may have to poration, the city’s Department of Community De- make difficult choices in the short run to ensure velopment, and other entities: long terms benefits from the transit village area. General Funding Programs The panel recommends the following financial Small Business Loan Program. Provides loan guar- strategies: antees on bank financing from $5,000 to $25,000. • Prioritize completion of the Capital Improve- Interest rates are traditionally 1.5 to 2 percent ments Program; above prime.

• Establish a realistic annual revenue goal from Direct Loans. Provides loans of up to $100,000 for economic development projects based on the fixed-asset improvements (i.e., purchase of ma- real estate analysis; chinery and equipment, with an interest rate as prime + 1 percent). Loan terms are for up to seven •Create a Public Services Plan (PSP) as a com- years. panion to the city’s annual budget. The PSP should identify scheduled operations and main- Urban Enterprise Zone Funding Programs tenance activities, establish annual expenditures, Urban Enterprise Loan Program. Provides direct and link and leverage external public and private loans for fixed assets, for loan amounts up to funds. Priority should be given to infrastructure $1,000,000. Interest rates range from 3 to 7 per- improvements in the transit village area; cent based upon the term of the loan, three years to seven years. • The city has already received federal, state, and county funds to undertake a variety of plan- Facade Improvement Program. Provides loans and ning and development activities; these activi- grants to retail businesses located along Main ties should be completed as soon as possible. Street from Crooks Avenue to Memorial Drive. Demonstration by the city that it is using the Retail businesses in this area can receive a 50 per- funds it has received will significantly increase cent matching grant to improve store facades, future funding from these entities. awnings, windows, etc. up to $50,000 per company.

Paterson, New Jersey, December 7–12, 2003 39 A matching grant of 70 percent per company is • Maintain an ongoing dialogue between the available if an entire block front is rehabilitated. state, county, and city on planning and zoning changes in a transit village; Capital Improvement Program. Companies can re- ceive a matching grant of up to $20,000 for capital • Consider linking eligibility of State TOD incen- improvements to their property. tives to local government adoption and imple- mentation of TOD-friendly planning, zoning, in- Sidewalk Improvement Program. Companies can re- frastructure adequacy, housing, and/or other ceive a matching grant of up to $6,000 to repair or measures. The specific characteristics of the replace sidewalks. linkage mechanism can take any of a number of possible forms. (For example, the mechanism Employee Tax Credits. A one-time tax credit of can be prescriptive, or based on a “scorecard” $500 to $1,500 per new employee to qualifying approach, or it can be based on eligibility crite- firms subject to the Corporation Business Tax. ria or be competitive.); Sales and Use Tax. Exemptions from state sales • Support local government adoption and imple- taxes on the purchase of taxable tangible personal mentation of TOD-friendly planning, zoning, in- property and taxable services and on the sale of frastructure adequacy, housing, and/or other materials, supplies, or services to a contractor, measures to promote transit villages, including subcontractor, or repair person erecting buildings the creation of an entity to focus specifically on on, or making improvements to, the real property implementing transit villages; of a qualified business. • Evaluate the implications of creating a “capital- Unemployment Insurance Awards. Based on the ized” transit village revolving fund through NJ amount of unemployment insurance paid by a firm Transit or some other appropriate state agency within the zone for new employees. Awards can for “gap” financing of projects in transit vil- range from 50 percent of an employer’s unemploy- lages; and ment insurance payment for the first four years to 10 percent in year 20. • Define and implement a transit village location efficient mortgage program if one does not cur- Reduced Sales Taxes. Retail sales of tangible per- rently exist at the state level. sonal property within the zone are reduced by up to 50 percent of the current rate, effectively re- Summary of Implementation Recommendations ducing the sales tax rate to 3 percent. The panel recommends the following key steps to Paterson’s realization of its potential as a tran- It is the panel’s understanding that monies from sit village location: this program are not budgeted. Therefore, they can be used for a variety of purposes. The panel • Pursue transit village designation; recommends that some of these monies be used to support the proposed TVDC. •Create a TVDC; • Enhance existing city planning and economic Beyond Paterson: What State and Local development staff resources for the transit Governments Can Do to Promote Transit village; Villages in New Jersey • Aggressively pursue private development opportunities; The panel recommends the following action steps for New Jersey state and local governments to • Define a clear and unambiguous development take in order to promote transit villages: process; • Examine development codes to identify barriers • Use existing resources more creatively; and to transit village implementation, and change them if required; • Leverage public financial assistance.

40 An Advisory Services Panel Report Conclusion

he panel’s recommendations are intended to cover attractive, affordable, and accessible hous- help the city of Paterson envision and imple- ing in Paterson’s transit village. ment a plan for redevelopment of the train T station area into a vibrant transit-oriented The city has the ingredients in place for the devel- neighborhood with residents, shops, restaurants, opment of a successful transit village. To realize urban parks, and public spaces. its potential, the city must build the foundation of support and marshal the public and private re- The creation of a transit village will revitalize not sources necessary to see this long-term effort only the transit village area, but will create a more through. The panel believes that the creation of a viable city. New development will provide a wide separate development entity—the Transit Village range of transit-accessible housing options for Development Corporation—will enable the city to those who already live in Paterson, and will even- accomplish this goal. tually entice some from outside the area to dis-

Paterson, New Jersey, December 7–12, 2003 41 About the Panel

Smedes York actively engaged in project master planning, pro- gramming, and parking functional design. In ad- Panel Chair dition, he provides assistance with market feasi- Raleigh, North Carolina bility studies, site analysis, and financial pro formas.

A Raleigh native, York is president of York Prop- Specializing in urban projects, Cebra has com- erties, Inc., and board chairman of two related pleted parking structures for communities and companies: York Simpson Underwood and Mc- governmental agencies all along the east coast, Donald-York Construction. He also serves on the including facilities in Philadelphia, Harrisburg, board of SCANA, a major public corporation. Scranton, Greenwich, Montclair, Jersey City, York has spent his professional career in real es- Atlantic City, Providence, Portland, Medford, tate and construction. He has served in a leader- Chelsea, and Boston. He also acts as a functional ship capacity in many organizations, including past designer who performs site planning activities and chairman of the North Carolina Citizens for Busi- assists with functional design of parking layouts ness and Industry, the Greater Raleigh Chamber with other team members. of Commerce, the Urban Land Institute, and the Prior to joining Walker Parking Consultants, trustees at North Carolina State University. Cur- Cebra was an urban designer with Cole Asso- rent positions include the Board of Directors and ciates in South Bend, Indiana, and responsible Executive Committee of the Research Triangle Park Foundation, the Triangle United Way, and for preparation of community land use plans, the YMCA of the Triangle. UDAG programs, and park and recreational facility design. From 1964 to1966, York served as a Lieutenant in the U. S. Army Corps of Engineers, and receiv- Cebra received his Master of Science in City & ing an Army Commendation medal in 1966. He Regional Planning from Southern Illinois Univer- also spent time in elective office as Raleigh City sity, and his Bachelor of Science from Valparaiso Councilman (District E) from 1977 to 1979, and as University. He is a member of the Urban Land In- mayor of the City of Raleigh for two terms, from stitute and the Society for Marketing Professional 1979 to 1983. Services. York received a Bachelor of Science in Civil Engi- John Gosling neering degree from North Carolina State Uni- versity, and a Master of Business Administration Washington, D.C. degree from the University of North Carolina at Chapel Hill. Gosling is company-wide residential sector leader and director of planning and urban design for the Baltimore and Washington offices of RTKL Asso- Stephen A. Cebra ciates Inc. In these roles, he has been responsible Boston, Massachusetts for managing and developing some of the firm’s most high-profile urban design and planning as- Cebra, born in Paterson and raised in neighboring signments in major cities around the nation and Garfield, New Jersey, has more than 20 years of abroad. They have included the award-winning experience in the parking consulting and urban State/Thomas Urban District Plan in Dallas; the planning fields. With Walker since 1980, he is Downtown and Arkansas River Corridor Plan in

42 An Advisory Services Panel Report Wichita; the Oklahoma City Redevelopment Plan; Henson is an active member of the Urban Land the Center City Plan in Nashville; the Tower City Institute. He has served as a ULI trustee, mem- Center in Cleveland, Ohio; and recent assign- ber of the Executive Committee, chairman of the ments for mixed-use development and urban infill Awards Committee, the ULI Research Commit- housing at Baltimore’s Inner Harbor. tee and the Urban Development/Mixed-Use Council. He is a member of the American Society A native Londoner, Gosling received his architec- of Real Estate Counselors, the Institute of Real tural education at the Architectural Association Estate Management, and the International Coun- School of Architecture in London, and is a certi- cil of Shopping Centers—where he served as fied architect and planner. He has been a practi- chairman of ICSC’s certification program, which tioner of planning and urban design for over 30 trains, tests, and recognizes outstanding shopping years, working for both developers and profes- center managers on an international basis. sional service firms. He received a bachelor degree in mechanical engi- Gosling is a Fellow of the Institute for Urban De- neering from Texas Tech University and an MBA sign, the recipient of the 1998 City of Dallas degree from Harvard Business School. Kessler Award for Individual Achievements in Urban Design, and a member of Lambda Alpha International, the land economics society based in John (Jack) C. Hewett Washington, D.C. He teaches a graduate course, Santa Barbara, California “Rebuilding the American City” at the University of Virginia; and for the past two years has taught Hewett has been involved in the real estate indus- advanced residential development process classes try for the past 30 years. He assists currently with for the Urban Land Institute. A recipient of ULI’s tailored financings, plus acquisitions and disposi- Agar Award for Journalism, Gosling has written tions of property. For ten years he worked with numerous articles on urban revitalization and the now CB Richard Ellis organization as an in- urban design for Urban Land, including “Points vestment broker, with a focus on securing funds of View—Debating Density,” appearing in the for existing projects. Prior to this, Hewett was as- August 2001 issue. sociated with the Bishop Corporation, a Honolulu- based real estate developer/investor, dealing with He joined RTKL in 1984 as director of planning all aspects of ownership, from acquisition, and de- and urban design in the Dallas office, was named a velopment through long-term management of principal in 1988, and relocated to the RTKL investments. Projects included apartments, condo- Washington office in 1996. miniums, shopping centers, master planned com- munities, resorts, theme parks, and luxury hotels. E. Eddie Henson Hewett received his MBA and JD from Syracuse Tulsa, Oklahoma University and is admitted to the Bar in Califor- nia, New York, and Hawaii. He has also served as Henson is president of Henson-Williams Realty. a faculty member at five colleges and universities, Founded in 1987, the firm specializes in develop- where he has taught business and law courses ment of urban properties and resort communities, and provides asset management services to major both domestically and abroad. Hewett’s profes- public corporations nationwide. sional designations include Certified Property Manager (CPM) from the National Institute of Previously, Henson was president of Williams Re- Real Estate Management, Commercial Invest- alty Corporation, where he directed the develop- ment Member (CCIM) from the National Board ment and management of a number of major of Realtors, Real Estate Financier (CREF) from mixed-use projects, including Williams Center in the National Real Estate Forum, and the SIOR Tulsa, Tabor Center in Denver, Rivercenter in San designation from the Society of Industrial and Antonio, and Independence Center in Charlotte. Office Brokers.

Paterson, New Jersey, December 7–12, 2003 43 Edwin R. Kimsey, Jr. and will exceed $150 million in 2004. The projects have added 50,000 new daily riders to WMATA’s Atlanta, Georgia Metrorail and bus systems, and 25 primary jobs Kimsey is vice president and principal of Niles and several million dollars in new taxes to the cof- Bolton Associates (NBA), a professional design fers of local jurisdictions. They have successfully firm based in Atlanta providing architecture, in- demonstrated that more compact developments at terior design, landscape architecture, and urban Metrorail stations can offer housing choices, di- planning services. A licensed architect in seven verse living areas, and create financial returns for transit agencies, developers and the public. states with over 28 years of experience, he re- ceived his bachelor of arts and master of archi- McNeal earned a bachelor degree from North tecture degrees from Yale University. Carolina Central University and a masters degree from the University of Cincinnati. He has served NBA maintains a national reputation for work in as an adviser to several transit agencies on transit- mixed-use developments, multifamily housing, oriented development. McNeal has written articles transportation architecture, department stores, for a variety of journals, and presented papers universities, clubhouses, hotels, and resorts. With at professional conferences. He is a coeditor of exposure to diverse project types and geographic Washington on Foot, a popular book of neighbor- locations, Kimsey has had extensive experience in hood walking tours published by the Smithsonian working with both private and public organiza- Institution. tions. He is currently principal-in-charge of the San Jose State University Campus Village, a $150 million mixed-use development under construc- Anita B. Morrison tion in San Jose, California. Silver Spring, Maryland

Kimsey has been active in numerous business and As a principal of Bay Area Economics, Morrison civic associations, including the Urban Land Insti- manages the firm’s Washington, D.C., office, di- tute and the American Institute of Architects. He recting BAE assignments for the eastern United was the lead facilitator for a community visioning States. She has 26 years of experience in economic charrette for Buckhead, Atlanta’s premier busi- and development consulting, specializing in mar- ness and retail neighborhood. Kimsey has previ- ket and financial feasibility analysis, strategic eco- ously served on ULI Advisory Services panels nomic development, and urban revitalization. for the California State Capitol area in Sacra- mento, and the San Pedro community adjacent to Morrison’s work in transit-oriented development the Port of Los Angeles, California. He has been began with analyses of potential development a vice chair of ULI’s Residential and Multifamily spin-off generated by transit investments in De- councils. troit and St. Paul, Minnesota. Most recently, she has worked with the Washington Metropolitan Alvin R. McNeal Area Transit Authority and the District of Colum- bia in evaluating the economic development po- Washington, D.C. tentials associated with alternative new light-rail transit lines. The District’s goal was to ensure that McNeal directed WMATA’s unique and highly suc- new transit investments will reinforce the city’s cessful public/private development program until economic development initiatives to revitalize October 2003. He is now a development and trans- neighborhoods and attract new investment. She portation consultant. During McNeal’s tenure, evaluated opportunities for new development and WMATA’s program became a model “transit- then estimated the potential fiscal impacts of al- oriented development program,” encompassing 60 ternative transit lines. transit-oriented development projects valued at over $3 billion. Since its inception in 1974, the pro- For the Georgia Avenue/Petworth Metro station gram has generated over $100 million in revenue in Washington, D.C., Morrison led a market study

44 An Advisory Services Panel Report and participated in a corridor planning effort that Urban Land Institute, chair of ULI’s Commercial culminated in a developer solicitation for District- and Retail Development Council, a vice chair of owned property above the station. For the West ULI’s National Program and District Council Hyattsville Metro station just outside the District committees, and a member of ULI’s Los Angeles in Prince George’s County, Maryland, she evalu- District Council Executive Committee. Rose has ated the market and financial feasibility of new chaired and served on numerous ULI Advisory mixed-use development as input to the station Service Panel assignments, focusing on downtown area plan. and transit corridor redevelopment and revitaliza- tion and office development issues, and has partic- Morrison received a Master of Public Policy de- ipated in several ULI office sector workshops. gree from the University of Michigan Institute of Public Policy Studies, based on a course of study Rose has been a member of numerous other com- in economics and public policy analysis. munity, industry, legal, UCLA- and USC-affiliated groups, including the Los Angeles Conservancy, Alex J. Rose Leadership Manhattan Beach, and the steering committee of New Schools Better Neighbor- El Segundo, California hoods—a broad-based private and public citizen’s advisory board which is researching and develop- Rose serves as director of development for Conti- ing standards and methodologies for the develop- nental Development Corporation in El Segundo, ment of over 100 new community-asset public California. He is responsible for managing all de- schools in the Los Angeles metropolitan area. velopment and construction activities for the sub- urban office/R&D park developer, whose holdings cover 3.5 million square feet in Southern Califor- Ruth A. Wuorenma nia’s South Bay market and in the city of San Fran- Chicago, Illinois cisco. Rose oversees acquisitions and new project development; planning and execution of all tenant Wuorenma has devoted her career to helping di- improvement, core and shell renovation, and new verse public, private, for-profit, and nonprofit construction work; major facilities maintenance groups work together to achieve mutual goals. and upgrades; project budgeting and cost controls; Her experience spans national and international internal project management; and architect, engi- commercial real estate, market-rate and afford- neer, and contractor management. able housing, and various civic activities.

Over the past nine years, Rose has overseen the In 2003, Wuorenma created the Neighborhood development and acquisition of nearly 1 million Capital Institute, an Illinois not-for-profit re- square feet of Class A office space, as well as the search and policy corporation, which offers plan- physical transformation of over 1 million square ning and real estate development strategies to feet of single-tenant R&D facilities into multi- foster capital investment, economic vitality, and tenant office space, restaurants, retail, and enter- an enhanced quality of life in cities, neighborhoods tainment uses. Prior to assuming development and households. In commercial real estate devel- and construction responsibilities, he served as di- opment for over 20 years, she decided to bring rector of property management. Rose also has ex- that experience to clients with revitalization goals. tensive experience in title insurance and is a li- The central goal of the Institute is to foster the censed California attorney, with experience in creation of great plans that can be implemented. general civil and bankruptcy litigation practices. Clients served include public, private, for-profit, and not-for-profit organizations of all types that Rose received his MBA from the University of seek to stabilize and enhance neighborhoods. Southern California (USC), his JD from South- western University School of Law, and his BA in Although the Institute provides a broad range of Political Science from University of California in development advisory services, one of its highest Los Angeles (UCLA). He is a trustee of the priorities is to foster connections among the multi-

Paterson, New Jersey, December 7–12, 2003 45 tudes of stakeholders in the planning process, in- the property attracted buyers highly diverse in cluding development and private investment com- income, race, and age—from young adults to re- munities. The Institute works to link public goals tirees who had never before owned a home. Her to private capital. This commitment helps keep background also includes experience as a top- the planning process not only on-track but helps producing developer for the Marriott Corporation to smooth the transition to plan implementation. in the United States and Europe. She began her career as a land use and zoning attorney at Rud- Before founding NC Institute, Wuorenma served nick & Wolfe (now Piper Rudnick), orchestrating as development advisor to the City of Waukegan, sophisticated planning and design teams through Illinois as it launched a redevelopment master the entitlement process as she balanced the inter- plan and financial strategy for its 1,400-acre lake- ests of developers and communities. front and 400-acre downtown. In that role she acted as executive director for the internal and A licensed real estate broker and attorney, external groups established to spearhead the Wuorenma is a member of the Urban Land Insti- planning process. One of the Midwest’s largest tute, its Affordable Housing Council, and the planning projects, the redevelopment plan encom- Chicago Local District Council Policy Committee; passes more than 4,000 new residences, an inter- Lambda Alpha International honorary society for modal regional commuter rail and bus station, a land economics; the Congress for the New Urban- restored eco-park and moorlands system, and im- ism; and the National Housing Conference. Her provements to the expansive marina. memberships outside the real estate arena include the Chicago Finance Exchange, the University of Prior to her work in Waukegan, she was a man- Chicago Women’s Board, and the executive com- aging director for Mesirow Financial/Stein Real mittee of Roosevelt University’s Chicago College Estate, where she oversaw the firm’s work on a of Performing Arts board. Committed to address- variety of mixed-use, high-density, often transit- ing the issues facing lower-income households, oriented urban developments, including market- she has also served on the executive committee rate and public housing transformation projects. of Chicago Commons and on the board of Meals on Previously, with Joseph Freed Homes, she devel- Wheels Chicago. She graduated with honors from oped a variety of market-rate products, both new the University of Illinois at Urbana-Champaign construction and loft conversion. and earned her JD from its College of Law. Under NC Institute’s predecessor, Neighborhood Active on national panels relating to workforce/ Capital Company, Wuorenma partnered with affordable housing, transit-oriented development Freed in an award-winning, nonsubsidized condo- and smart growth, Wuorenma has a passion for minium conversion affordable to households below helping diverse, mixed-use communities thrive in 40 percent of area median income. Positioned as ways that benefit all residents and stakeholders. “value housing” rather than “affordable housing,”

46 An Advisory Services Panel Report