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Technical Assistance Panel Report Transit-Oriented Transformation of the Near Northside May 30-31, 2012

Sponsored by: Metropolitan Transit Authority of Harris County (METRO) Central Civic Improvement, Inc. Greater Northside Management District -Downtown (UHD)

About ULI Houston A District Council of the Urban Land Institute ULI Houston is a district council of ULI–the experience among local, national, and Urban Land Institute, a nonprofit education international industry leaders and policy and research organization supported by its makers dedicated to creating better members. Founded in 1936, the Institute communities. today has approximately 28,000 members worldwide representing the entire spectrum ULI’s mission is to provide leadership in the of land use planning and real estate responsible use of land and in creating and development disciplines, working in private sustaining thriving communities worldwide. enterprise and public service. ULI Houston carries out the ULI mission locally by sharing best practices, building As the preeminent, multidisciplinary consensus, and advancing solutions through real estate forum, ULI facilitates the its educational programs and community open exchange of ideas, information, and outreach initiatives.

About the Technical Assistance Panel (TAP) Program

The objective of ULI Houston’s Technical offering objective and responsible advice Assistance Panel (TAP) program is to to local decision makers on a wide variety provide expert, multidisciplinary advice of land use and real estate issues ranging on land use and real estate issues facing from site-specific projects to public policy public agencies and nonprofit organizations questions. The TAP program is intentionally in the Metropolitan area. flexible to provide a customized approach to Drawing from its extensive membership specific land use and real estate issues. base, ULI Houston conducts two-day panels

Jonathan Brinsden Lance Gilliam Chair, ULI Houston Co-Chair, Advisory Services Committee Midway Companies UCR moodyrambin PAGE

Edwin Friedrichs Ann Taylor Co-Chair, Advisory Services Committee Executive Director Walter P Moore ULI Houston

Contents

Acknowledgments Page 1 ULI Houston Panel Page 3 Foreword: Overview and Panel Assignment Page 4 Market Potential Page 6 Concept Plan Page 12 Implementation Page 17

1

Acknowledgments

ULI Houston would like to acknowledge We would also like to thank the stakeholders the leadership of the Metropolitan Transit who agreed to participate in the background Authority of Harris County (METRO), for interview sessions, for providing their insight inviting the Urban Land Institute to provide to augment the multiple decades of on-the- independent, objective expert advice on ground experience represented among the the use of land owned by METRO and of ULI panel members. vital interest to supporting sponsors of this Technical Assistance Program panel. We We thank Marlene Gafrick, City of Houston, gratefully acknowledge Central Houston Dept. of Planning & Development, Civic Improvement, Inc., Greater Northside Jeff Weatherford, City of Houston, Public Management District, and University of Works, Jeff Procell, GNMD; Sarah Castillo, Houston-Downtown (UHD), who also Resident/GO Neighborhoods; Jimmy Castillo, provided financial and in-kind support, Resident/City of Houston Public Art Dept.; making this collaborative effort possible. Jon Cooper, Resident; Rob Block, Avenue CDC; Alex Morales, Resident; Christina Specifically, ULI would like to acknowledge Slubbe, Avenue CDC/ GO Neighborhoods, Mr. George Greanias and Ms. Kimberly Steve Flippo, METRO, Amar Mohite, City of Slaughter with METRO for their leadership, Houston, Dept. of Planning & Development, as well as Mr. Robert Eury with Central Lance Gilliam, UCR moodyrambin PAGE, Houston Civic Improvement, Inc., Tim Williamson, Cadence Bank, Dr. William Flores with UHD, and Cullen Powell, Wells Fargo Bank, Tim Clarke, Rebecca Reyna, with Greater Northside Cypress Real Estate Advisors, Steve Clarke, Management District, for the engagement Cypress Real Estate Advisors, Jim Jard, of their respective organizations, and for Cypress Real Estate Advisors, generously sharing their time and insight Laurie Flores, La Bonita CDC, with the panel. Jason Holoubak, Avenue CDC, Jessica Pugil, Consultant, Mike Williams, METRO, ULI Houston would also like to express Fred Childs, METRO, Kurt Luhrsen, METRO, appreciation to the professional staff of Christine Moreno-Conner, METRO, the sponsor and supporting organizations, Mr. Armando Bermudez, Near Northside particularly Mr. Clint Harbert, METRO, BOND, Christa Chao, State Representative Mr. David Bradley, UHD, Mr. Chris McCall, Jessica Farrar’s Office, Tom Davis, City of UHD, Mr. Edmund Petry, METRO, Houston, Ralph DeLeon, City of Houston, Mr. Russ Frank, METRO, and Mr. Lonnie Sarah M. Melecki, State Representative Hoogeboom, Central Houston Civic Jessica Farrar’s Office, Cheryl Mergo, Improvement, Inc. H-GAC, Anne Olson, Partnership, Jerry Peruchini, Office of The technical assistance of Abbey Roberson Council Member Ed Gonzalez and Alan of HOK and Jason Tramonte of STG Design Potok, Harris Co. Flood Control. Group, and the invaluable contributions of writer Jason Stuart were vital to the production of the panel’s presentation and this report. 2

ULI Houston would like to acknowledge the The findings and recommendations provided contributions and participation of District in this report are based on the collective Council Chair, Jonathan Brinsden, Chief expertise of the panel, briefing materials Operating Officer, Midway, and the provided by the Sponsor, and information assistance of TAPs Committee members, gleaned from the tour, stakeholder Ben Pisklak, Gables Residential, presentations, and roundtable discussions Aaron Thielhorn, Trammell Crow, conducted during the panel’s two-day effort. Todd Meyer, SWA Group, Jeff Munger, HFF, and Walker Molinare, Stewart Title, as ULI owes a special word of appreciation to well as the following Houston Management the experts who dedicate their valuable time Committee Members. as volunteers in service on the panel. Each panelist strives to provide the highest quality, Gary Altergott, Principal, Morris Architects, unbiased, and trustworthy advice for the Mission Advancement Chair benefit not just of study sponsors, but of the Matthew Behrmann, Project Manager, larger community. The quality of their effort Hines, Young Leaders Chair, Russ Bynum, is the result of far more than a concentrated Project Manager, AECOM, Membership two-day process, and is only made possible Co-Chair, Greg Erwin, Co-Chair, Real Estate by the decades of work and service they Development & Investments Practice Group, have devoted to achieving excellence at the Winstead, P.C, Sponsorship Chair, Edwin highest levels of their respective professions. Friedrichs, Senior Principal, Walter P Moore, Advisory Services Co-Chair, Lance Gilliam, Managing Partner, UCR moodyrambin PAGE, Advisory Services Co-Chair, Bill Odle, Partner, TBG Partners, Programs Chair, Sandra Porter, Director of Corporate Marketing & Business Development, Hines, Strategic Communications Steering Committee Chair, Cullen Powell, Vice President, Wells Fargo Bank, Treasurer, Adrienne Schwartz, Director of Business Development, Harrison Kornberg Architects, Membership Co-Chair and Reid C. Wilson, Managing Shareholder, Wilson, Cribbs & Goren, Governance Chair.

We appreciate the graphic design assistance from Clark Condon Associates, who provided layout and design services on the final report. 3

ULI Houston Panel

Panel Chair: Sean D. Rae Vice President, Development Trammell Crow Chuck Perry Residential - Houston, TX Managing Partner Perry Rose - Denver, CO During his tenure at TCR, Sean D. Rae has been directly involved in new development Chuck Perry is recognized as an authority in and refinancing transactions totaling more community based planning and mixed-use, than $500 million. Prior to joining TCR, he mixed-income real estate development. Prior was a credit analyst with Amegy Bank of to joining Perry Rose, Dr. Perry served as in the Bank’s Officer Development the Assistant Director of the Denver Urban Program. Renewal Authority (DURA). Charles Savino Panelists: Executive Vice President CDS Market Research - Houston, TX Tom Fish Executive Managing Director, Jones Lang Charles Savino, Executive Vice President LaSalle Real Estate Investment Banking of CDS Market Research. Before joining Houston, TX CDS, he served as Executive Vice President and Chief Operating Officer of the Greater Tom Fish leads Americas real estate Houston investment banking (REIB) business and has Partnership. executive leadership responsibility for the company’s Americas capital markets Diane Schenke business. President Greater East End Management District Shon Link Houston, TX Vice President, Development Midway - Houston, TX Diane Schenke, President, Greater East End Management District, a 16 square mile area Shon Link is responsible for development between and the Port and acquisition for Midway’s commercial of Houston, which supplements the services portfolio, including CITYCENTRE, a 1.5 provided by existing million square foot mixed use project on governments. Houston’s west side. Prior to Midway, Shon was an Architect and Project Manager for Kevin Shanley, FASLA Gensler. CEO The SWA Group - Houston, TX

Kevin Shanley, CEO, SWA Group, which practices planning, urban design, and landscape architecture in six North American offices and in Shanghai. 4

Forward: Overview and Panel Assignment

In Houston’s traditionally lower density and Questions the Panel is Asked to auto-oriented style of development, Transit- Answer Oriented Development (TOD) still represents a new form of growth. Effective partnerships The purpose of the 2-Day ULI Technical between private and public sector land Assistance Panel is to present the use and development practitioners will be Metropolitan Transit Authority of Harris crucial to successful TOD and wider market County, (METRO), and participating acceptance. organizations, Central Houston Civic Improvement, Inc., University of Houston- The new LRT station at North Main St. Downtown and the Greater Northside and Burnett St., and the Transit Center Management District, with the panel’s on 4 acres joining the station, is bringing recommendations in response to these significant interest and new activity to this questions: area on the near north side of Downtown. METRO is moving forward on construction 1. What are the best strategies for short- of the Burnett Transit Plaza and LRT station, term and future development of the but has additional land available for future property METRO owns that also development. incorporates a new LRT station and intermodal Transit Center? Cypress Real Estate Advisors owns adjacent land and retains the development rights 2. What tools provide incentives to above the Transit Center. METRO owns encourage successful development in approximately 25 additional acres in alignment with this plan? this area. A variety of potential partners has expressed interest in exploring the 3. What is the road map to navigate opportunity to develop complimentary uses from current conditions to the on this land, such as a county health clinic. desired outcome, including phasing of development and potential barriers this plan must overcome? Street improvements in the near Northside neighborhood will enhance bus access to the Transit Center. Pedestrian and bike access is important, both as an alternative means of transportation and also because parking for the Transit Center is limited. Heavy use by “kiss and ride” customers (i.e., those who do not park cars at the station) is anticipated.

Ensuring that any future development of this site also benefits and enhances the near Northside neighborhood should be considered a priority in all proposed development solutions. 5

Forward: Overview and Panel Assignment continued

The ULI Panel’s product, if successful, 3. A catalyst for future private investment should help to create these desired that will be spurred to make the most outcomes: beneficial use of property in the area.

1. Development of a plan of action for Recommendations may be accompanied by METRO that is grounded in Houston relevant examples of successful strategies market reality, combined with adjacent and projects that provide real-world role stakeholder input and alignment models and guideposts. These will be (Northside Neighborhood, UHD, Central followed by implementation steps adapted to Houston, Cypress Real Estate Advisors/ reflect unique characteristics of Houston. Hardy Yards, etc.), and based upon forward-leaning and flexible principles The panel may also recommend potential that provide long term adaptability. incentives, policies, and design strategies The plan of action will define project to achieve predictability for successful elements that should be included in the development in alignment with this plan. design of the Recommendations are delivered within the Burnett Transit Center to context of barriers, limits and or challenges ensure this asset meets the needs of to overcome and ideas on how to address METRO and the community. these hurdles.

2. Strengthening public support and acceptance of TOD as a beneficial style of development that is truly “better than the sum of its parts.” 6

Market Potential

The panel began its efforts by noting The panel offers the above background that the creation of successful transit- because, thankfully, there is the potential oriented development (TOD) projects is an here for an immensely positive end result extremely challenging undertaking, even for the study area, a large area surrounding in regions with far higher percentages of it, and indeed for the region as a whole, transit usage than our own. In part, this through the creation of a regionally- is because many developers and transit significant destination and exemplar of agencies across the country have neglected TOD. This assessment may appear overly- the “oriented” part of TOD and have optimistic at first glance, given the existing simply settled for transit plus some kind of market conditions within the study area adjacent development, resulting in little to and connectivity issues there. The panel no synergy between the two. In the worst fully recognizes that the current mobility cases, this “transit-adjacent” development and connectivity issues are very difficult, has actually impeded access to the transit and are equally bad by foot, bike, bus or car. station by pedestrians, bicyclists, and Moreover, all of these modes are needed others, with the usual development suspect to connect to the light rail station and new being a giant new garage. In a successful development in order for them to meet their TOD, transit and development purposefully respective metrics for success: increased interact, both with each other and with the transit ridership and project marketability. surrounding community. This interaction On the other side of the ledger, though, is among infrastructure, development, and the potential redevelopment area’s size people requires transparent and close and relatively small number of landowners; working partnerships among a multitude nearby natural amenities; proximity to the of stakeholders throughout the process, but central business district, the University of especially on the front end. Houston-Downtown, and other institutional anchors; the already-existing engagement Such partnerships can be time-consuming of almost all of the necessary stakeholders; and fraught with peril for both the public and the favorable view of Houston that and private sector parties, as both groups is currently held by the capital markets. are usually working under tight deadlines Each of these strengths, as well as some that are either related to federal approvals concomitant challenges that need to be and political demands, or private financing overcome, are reviewed in greater detail and market conditions. It is only when all below. parties involved recognize the possibility for an immensely positive end result, achievable Strengths only through close cooperation, that such partnerships can be formed and stand the Potential redevelopment area’s size and test of time. If the only result foreseeable is relatively small number of landowners. One a somewhat mediocre one—from the point of the greatest challenges facing any urban of view of any of the parties concerned— infill and/or TOD project is assembling the they will likely not participate in the process, amount of land needed to develop a cohesive and may even work to undermine it, resulting and creative project. In this instance, not in an expensive missed opportunity. only are there the four acres controlled by METRO immediately adjacent to the 7

Market Potential continued

proposed Burnett Transit Center Station, offered by this larger canvas, the panel but there are approximately 25 additional took all of the following areas into acres in various-sized parcels also controlled account in its recommendations (please by METRO within the area, including 17 see Illustration 1, below). Whenever the acres along . Cypress Real panel refers to the “study area” in the Estate Advisors’ Hardy Yards encompasses report, it means to include all areas noted 40 acres, the University of Houston- below, with the exception of the Existing Downtown controls several parcels, including Neighborhoods and the area the panel two large parking lots, and the remaining has designated here as the “St. Arnold undeveloped parcels within the immediate District,” which are included in this vicinity are owned by Union Pacific Railroad, illustration for contextual purposes only. or investors. The large, contiguous blank slate offered by the above-listed parcels, in Nearby natural amenities. The a relatively small number of hands, allows aforementioned 17 acres fronting White for the possibility of creative land-swapping Oak Bayou lie within the floodplain and and/or purchase in order to create the best are therefore not developable, but could possible result for all parties involved, as nonetheless serve as an amazing amenity for well as for the addition of new roads, trails, the area: creating much-needed intramural fields for the University of Houston-Downtown and its club sports (including its undefeated soccer team); being available to the community when not in use by the University; and providing several additional access points to the MKT Trail, as shall be illustrated later in the report. Perhaps most importantly, though, such an amenity would instantly distinguish this area from the many other redevelopment sites within our region that are competing for capital, infrastructure, development projects, residents, and workers, much as Discovery Green and sidewalks to provide for optimal access has done and continues to do for Downtown to the light rail station, and to address the Houston. Not only would there be demand overall connectivity issues within the area. created by those wishing to live with such an Sensing the far greater possibilities unparalleled—and unobstructed, in relative 8

perpetuity—view of active green space, the successful they enhance the existing bayou, and the Houston skyline, but such surrounding community, create new an amenity would also create additional opportunities to live, work, shop, learn and demand for other nearby projects, as well as recreate close to transit, increase transit enhance the quality of life for those already ridership among a broad base of the public, living within the area. As a practical matter, and set an example for quality place making depressing the fields slightly would also that others can follow. However, such a provide district-wide solutions to detention high risk/high reward endeavor requires and floodplain fill mitigation for surrounding all stakeholders to be all-in; if any parties developments, which could relieve their are half-hearted in their efforts, the project developers of some expenses and challenges will fail. Fortunately, as demonstrated by relating to stormwater detention and water the involvement of so many community and quality, so that they could improve their institutional stakeholders in the Technical projects in other ways. Assistance Panel’s sessions and the input they provided, the necessary stakeholders Proximity to the Central Business District are already at the table and engaged with , the University of Houston-Downtown, each other, and are excited about seeing and other institutional anchors. Although their area realize its full potential as a place seemingly far away due to the lack of that is better connected, both internally connectivity, the study area is in actuality and to the rest of the city. Of course, there just as close if not closer to the heart of the may be differences of opinion as to how to central business district than two potential best get there, but at this crucial juncture, competitors for redevelopment and residents, all are still engaged, and none appears Midtown and the Washington Corridor. to be too disillusioned. The panel offers With the extension of the Red Line north, recommendations in the Concept Plan the study area will be even closer, further and Implementation sections of the report highlighting the importance of increasing regarding how this partnership process may accessibility via all modes to the Burnett best proceed, given both the short and long Transit Center Station, so that the largest time horizons involved. number of people possible can access the central business district using transit. Capital markets currently hold a favorable Additionally, the site’s proximity to the view of Houston. Houston is currently a University of Houston-Downtown, and to globally desirable place for capital, thanks in medical facilities such as Casa de Amigos, La large measure to its job growth, population Nueva Casa, and the Thomas Street Clinic, growth, cooperative city government, and its again points to the need to view all of the demonstrated ability to improve quality of parcels within the study area as a whole, to life and attract new business. Redevelopment ensure that these major institutional anchors opportunities such as this one must be seized are as accessible as possible both to those upon while capital is flowing in, because as disembarking from light rail or bus and to has been demonstrated in the past, when current and future residents. the tide turns, it turns fast and hard. Nor, as noted previously, is this area the only Existing engagement of necessary redevelopment site competing for such stakeholders. As discussed at the beginning investment. of this report, when TOD projects are 9

Market Potential continued

Challenges could be realized, but this is not an area where extensive ground-floor retail could Current market conditions within the be counted on to activate the streetscape, study area. Although the many strengths pointing yet again to the need to enliven the of the area have been laid out above, the streetscape through quality design. fact remains that the area is one that is undergoing redevelopment, and is unproven Connectivity issues. The point cannot be to the market. Lenders will necessarily hammered home enough: connectivity could be wary of overly-optimistic proformas not possibly be much worse than it is today, forecasting high rents on multi-family be it within the study area, from the study residential or office space, particularly area to downtown, or from the existing given the relatively low cost of single-family neighborhoods to and through the study rental housing currently available within the area. Although the Burnett light rail station neighborhood, and the lack of true “comps” would seem to be a solution to the these that can be looked at within the region. In problems, the need to connect 40-60 buses order to be marketable, new development per hour to the station for transfer purposes will need to be high-quality, yet affordable raises its own new issues, particularly as relative to competitor neighborhoods such as they relate to the safety and quality of life Midtown, the Washington Corridor, Sawyer of existing residents, on whose narrow Heights, and EaDo. This is particularly true neighborhood streets the buses are proposed in the beginning, before the area becomes to run. Moreover, given the current difficulty more fully built-out and the overall vision is in accessing the station by foot, bike, or car, easier to grasp, such that someone working great care must be taken with the placement downtown would be willing to sacrifice the and design of the bus transfer facility, both to nightlife and already-existing amenities of ensure that it does not further impede access other areas for a slightly lower rent that to the light rail station by any of these modes could be available within the study area. and to prevent the facility from becoming a deterrent to future new development near In order to provide such lower rents, the station. Although Houstonians have developers need access to cheaper and demonstrated an interest in living next to a easily developable dirt; any complications quiet, clean-running light rail line, they likely that increase the cost of land increase feel differently about loud, idling, diesel- the amount of return needed and thus burning buses, especially given the frequency rents charged. Such complications would with which the buses will enter and exit the certainly include building above a bus transfer station. transfer station, a prohibitively expensive proposition for any developer in such an Timing. As noted in the discussion of the untested market area. Near-term market area’s strengths, thanks to the capital potential largely consists of competitively- markets the time is ripe for an ambitious priced multifamily and townhome residential redevelopment project such as this one. product, institutional uses such as UH-D Moreover, METRO has expressed the need expansion space and medical facilities, and to have a transfer center in place when the very limited retail. Once the entire study Burnett Station opens, and Cypress Real area is built out, greater retail opportunities Estate Advisors no doubt wishes to begin 10

seeing a return on its investment in the “The Heart of the Melon”. Within this study Hardy Yards, which it first acquired in 2005. area, the panel firmly believes that this key And yet, as also mentioned previously, the site—“the heart of the melon”—is the site panel believes that the maximum market that is currently slated by METRO to serve potential for all parties involved can only as the bus transfer center. The panel cannot be achieved by taking a more holistic emphasize enough that, in its opinion, placing view, encompassing all of the currently such a facility in such a critical location undeveloped properties in the area. would be extremely deleterious to realizing the maximum potential of the Burnett light It is also important to note that the entire rail station and the study area. Most of the project cannot and should not be expected reasons for this belief have been alluded to to be built out all at once- some parcels above, but the following bear repeating: will have to be held back until the area has proven itself to the market, in order • With 40-60 buses entering every hour, to obtain the best possible product on the pedestrians and bicyclists will find it site(s). In any TOD project, the most important site is the one that links the transit station to the rest of the project; this site is in every respect the front porch and the front door of the station, both activating the station area and facilitating access to it. Because it is so important to get this site done right, and because such sites usually involve greater challenges and expense in terms of providing excellent design and linkages to the rest of the project and in working as closely as possible with the transit agency, such sites often need to be held back incredibly challenging to walk or ride until the area around them has been built up across the wide driveway where buses and the market will sustain a higher-cost and will be entering and exiting on such a higher-quality product. frequent basis, thus inhibiting foot and 11

Market Potential continued

bicycle traffic from new and existing transfer station, dramatically changing neighborhoods to the station and limiting the character of these neighborhood potential ridership; streets; and,

• Residents will be reluctant to live next to • Building on top of such a facility is such a facility, a fact that will be quickly incredibly expensive, and would likely surmised by potential development not occur until far into the future. lenders upon touring the site and seeing so many buses entering, exiting, and In order to mitigate these challenges, and to idling, thereby limiting surrounding fully capitalize on the strengths enumerated development potential; above, the panel proposes the following recommendations regarding an alternative • Placing the facility in such a location concept plan, which entails taking a close necessitates the use of Freeman and look at all of the available sites and means of Chestnut Streets for bus access to the connectivity within the study area. 12

Concept Plan

The illustration below outlines the panel’s In terms of site layout for Parcel E, the recommended concept plan for the broader panel recommends locating rider facilities study area. Following the illustration are around the exterior of the bus loop, so that detailed explanations of each component riders do not have to cross bus traffic to of the plan and the panel’s rationale for the get to a central island. Meanwhile, Parcel recommendation. The panel fully recognizes F could accommodate the Kiss and Ride, that the recommendations described while Parcel D could provide some surface below will require substantial efforts to parking. be made by all parties, in that the panel’s recommendations involve multiple transfers Vertical Circulation of land and significant infrastructure investments. In the Implementation section Due to the fact that the Burnett Station of the report, the panel attempts to address will be an elevated station—something to these challenges and provide a roadmap. which Houstonians are unaccustomed and of which they may be wary—the issue of Relocating the Bus Transfer Station vertical circulation also demands careful attention. To that end, the panel recommends Perhaps the most consequential providing high-quality and highly-visible recommendation by the panel is to vertical circulation from station platforms reconsider the proposed placement of the to the street level on Burnett Street, on bus transfer station, from Parcel A on the both sides of the elevated structure. Moving plan, to Parcel E, west of Main Street and the transfer center to the west side of Main north of the rail station. Street allows effective phasing, with Phase I on the west side connecting to the bus Relocating the station in this manner facility, kiss and ride, and nearby health addresses many of the challenges highlighted clinics in the near-term, while Phase II previously, in that it: on the east side would connect to future TOD, when built. This phasing would allow • Removes the potential deterrent to for optimal integration of the station with future TOD development east of the the eventual TOD, as the design on the east station, as explicated in the Market side could be tailored to the type of project Potential section; that gets built, and could also strengthen the connection to UH-D further south by • Allows for superior phasing, leaving eventually providing pedestrian connectivity the key parcel, A, available for future along the track level. The panel further development; recommends the following design standards for these vertical circulation elements: • Removes negative impacts from the nearby neighborhood and neighborhood • Provide direct connection to Burnett streets; and, Street sidewalks;

• Serves the health clinics with closer • Be open and fully visible from Burnett service and better bus access. Street; 13

Concept Plan continued 14

• Include “plaza” space, with stairs station and bus transfer station. helping to shape the plaza space (as was • The cost of the extension of Burnett accomplished at the UH-D Shea Street Street will be offset by the dollars Building); and, that would otherwise have to be spent reconstructing Freeman and Chestnut • Make elevators as near to 100% Streets. transparent as possible. • Locating the bus routes outside of the Mobility Improvements neighborhood will protect them from the heavy impacts of 40-60 buses/per hour As can also be seen in the above concept and the physical impacts of widening the plan, the panel has incorporated a number streets to accommodate this volume of of recommended changes to the area’s bus traffic; street and trail layout, with the goal of creating a grid where none currently exists, • Extending and adding infill streets and increasing connectivity via all modes between Hogan/Main and Burnett to of transportation including bus, car, foot, provide access to stranded properties wheelchair, stroller, and bike. The panel and to provide additional mobility for the heard a number of concerns voiced about the Station area; Hernandez Tunnel, both related to its current condition and to the immense expense • Extending Fletcher Street south along that would be involved in rebuilding it. The edge of floodplain to Naylor and Shea panel believes that by making the following Streets to provide access to bayou connectivity improvements, sufficient—and frontage parcels (Parcels B and C on far more appealing—new pedestrian routes plan); are created throughout the site, such that the Hernandez Tunnel could be closed to • Assuming that the San Jacinto/Fulton pedestrians. These various improvements bridge and street improvements will be include: part of the plan;

• Extending Burnett Street west to Hogan • Providing 20’ reserve along the south (and possibly beyond to Quitman) and side of the Burnett Street extension for connecting Burnett Street east to the hike and bike trail connections to the Hardy/Elysian couplet, enabling bus White Oak MKT regional trail; and, circulation on Burnett Street from Hogan on west side to Hardy/Elysian • Providing a pedestrian connection couplet on east side; from the UH-D south campus to the north campus area, including a possible • Making Burnett Street an urban street, undercrossing under the proposed with four 12’ lanes and 13’ between the Fletcher Street extension. curb and right of way on each side. This will allow for a 6’ wide sidewalk that can be tree shaded and will feed from the neighborhoods to the Burnett light rail 15

Concept Plan continued

Potential Mix of Uses for Parcels and • Parcel D- Currently owned by Metro, the Tracts panel recommends that this be dedicated to Phase I surface parking for Burnett In taking a holistic view of the study area, Station and the bus transfer station. the panel recommends the following mix of uses for each of the parcels: • Parcel E- Currently under private ownership, the panel recommends that • Parcel A- As mentioned previously, the this parcel be acquired by Metro for the panel views this as the key parcel, given bus transfer station. As this land may its direct connection to the elevated have some contamination issues, capping transit station, existing neighborhoods, it with the paved transfer station is and the 40-acre Hardy Yards site. As actually a good use of the land. the site is currently owned by Metro, the panel recommends that it be sold • Parcel F- Currently owned by UPRR and via an RFP process, with development City right of way, the panel recommends guidelines for TOD. Given the importance that these tracts be acquired by Metro of the site, it may be desirable to wait for vertical circulation and kiss and ride. until surrounding projects have moved forward, “proving up the market,” so that • Parcel G- These several tracts the highest and best use of this site may provide growth parcels for health be realized. care and community support facilities, complementing already-existing facilities • Parcel B- Assuming the dedication of the within the area. 17 acres of floodplain to sports fields and detention, and that the small warehouse • Parcel H- These several tracts allow outparcel will be included in parcel, the for possible affordable or market rate panel views this site as an excellent housing or other development. opportunity for park-front development, as outlined in the Market Potential • UHD-1- Currently owned by Metro section. This parcel is currently owned by (as are all of the other four UH-D sites UH-D. proposed below), this parcel could be purchased by UH-D for a possible science • Parcel C- The panel also views this site center building. as a park/bayou front development. As the parcel is also owned by UH-D, they • UHD-2- This parcel could be purchased may wish to reserve this tract for the by UH-D for a possible student life possibility of student housing. center building, for which a great need has been expressed by both UH-D students and administration. 16

• UHD-3- This parcel could be purchased Additionally, this site could provide by UH-D for a possible academic building development mitigation detention basins and/or parking garage. for new and infill development within the area bounded by Hogan/Main and • UHD-4- Currently owned by Metro and Burnett Streets and between Main and a private entity, this parcel could be Fletcher. Excavating the area used by purchased by UH-D for possible parking the sports fields and setting the Fletcher garage expansion. Street extension back to allow for excavation of upper edge of floodplain provide floodplain fill mitigation for the • UHD-5- Currently owned by Metro, all UHD-1 and UHD-2 sites, which will of this tract is below and within the 100 require a couple of feet of fill to bring year floodplain, and could be acquired by them above the floodplain. UH-D to provide sports fields for students and for the nearby neighborhoods. 17

Implementation

As noted in the Market Potential section Public + Institutional Partners of the report, the panel was strongly • METRO encouraged during its own sessions by • UH Downtown the engagement it saw from the many • Avenue CDC stakeholders who care about the study • Hardy Yard TIRZ area, both in terms of making the most of • LISC + Go Neighborhoods its new light rail access and realizing the • Central Houston Civic Improvement area’s full potential, and in ensuring that • Greater Northside Management District existing residents’ needs are also taken into • City of Houston account. The panel sought to balance the • Harris County Hospital District expressed needs and concerns of all these • Harris County Flood Control District stakeholders through its concept plan, as • Harris County Toll Road Authority well as those of the region itself, which • TxDOT stands to benefit greatly from the creation of a transit-oriented, mixed-use destination Private Partners with educational, medical, and recreational • Cypress Realty Advisors anchors, located in such close proximity to • Other private entities willing to invest the CBD. To adequately meet the needs of • Union Pacific Railroad so many different groups, the panel had to consider a larger area than what may Funding have originally been envisioned, but it is the panel’s hope that by demonstrating the As noted previously, some of the costs greater benefit that all parties may achieve that will be necessary for infrastructure by working together, all parties will be improvements, such as the extension and motivated to do so. improvement of Burnett Street and its sidewalks, may be offset by monies that In addition to existing community members would have been expended on Chestnut and their representatives, the panel views and Freeman streets. Similarly, creating all of the following entities as necessary a grid system where none previously partners in creating a comprehensive vision existed and providing wide sidewalks for the area, and in engaging in the land along the new roads provides ample transactions and infrastructure investments new routes for pedestrians as well as needed to make the vision a reality. The vehicles, so that the Hernandez Tunnel following list is non-exhaustive, but provides may be closed to pedestrians, rather than a sense of the breadth and diversity of investing significant funds there. The fact the parties involved. Due to the fact that that many of the parcels already belong new development will inevitably increase to public entities also helps, as there are surrounding values, at least in the long- several mutually beneficial land-swap term, several of the groups listed below opportunities. Additionally, there is a great are dedicated to the mission of providing deal of increased land value to be realized and/or maintaining affordable housing by creating connections through properties opportunities. that previously had little to no access, and to 18

creating amenities such as the playing fields • Experience with mixed-use real estate and trail access. The panel realizes that the and TOD; TIRZ may already be stretched thin by its responsibility to pay back the costs of the • Familiarity with the study area and all of San Jacinto Street bridge, but to the extent the necessary partners identified above, that TIRZ funds are available for further as well as the ability to bring all of these connectivity improvements, that would be partners together for a common purpose; an excellent application of those funds. Due and, to the fact that the area is eligible for New Markets Tax Credits, an analysis should • Ability to be viewed as independent of be undertaken utilizing 4% and 9% Low bias toward any of the partners. Income Housing Tax Credits combined with the TIRZ set-aside for affordable housing. The need to move both quickly and deliberately, with an eye towards both the near- and long-term and with all potential Having a Champion stakeholders at the table, may seem impossible given the pressures to just get Perhaps most importantly, though, the something done at this point. Thankfully, study area needs a champion: an individual Houston and Houstonians have a long history for whom keeping all parties engaged and of meeting such challenges, working best keeping the big picture in mind at all times is under such constraints. The potential payoff job number one, instead of being job number is a regionally-significant transit-oriented nine on five different people’s lists. The development, built from the ground up, which panel did not reach the question of who that would be a much-needed first for our region. person should be or even what entity he or she should work for, but rather recommends that the ideal candidate have the following characteristics: Transit-Oriented Transformation of the Near Northside

Houston, TX

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