NASHVILLE DOWNTOWN PARTNERSHIP 2009 BOARD OF DIRECTORS JANA JOUSTRA DAVIS NATE J. GREENE RALPH SCHULZ Ex Officio NAI Nashville Ex Officio OFFICERS HCA Nashville Area Chamber of Commerce JOHN GUPTON KIRBY DAVIS Ex Officio J. RONALD SCOTT Chair, Public Space Baker, Donelson, Bearman, Caldwell & JRS Investments Incorporated First Management Services Berkowitz, PC GREG SLIGH EMANUEL J. EADS THE HONORABLE THELMA HARPER The Hermitage Hotel Ex Officio Ex Officio Central Parking Corporation State Senator LYDIA SPRAGENS Ex Officio MIKE FITTS AUBREY B. HARWELL, III Pinnacle Financial Partners Ex Officio Ex Officio State Architect Neal & Harwell, PLC ROBERT A. MCCABE, JR. BUTCH SPYRIDON Chair, Resource Development Ex Officio JOHN FLEMING FRED RUSSELL HARWELL Pinnacle Financial Partners Nashville Convention and Visitors Bureau GEORGE V. CRAWFORD, JR. Renaissance Nashville Hotel Ex Officio Chairman Adams and Reese LLP MARK MCNEELY T. STEPHEN C. TAYLOR Gullett, Sanford, Robinson & Martin, PLLC RICHARD FLETCHER Ex Officio Ex Officio 511 Group, Inc. DAVE HERRELL McNeely Pigott & Fox Bass, Berry & Sims PLC ROBERT R. CAMPBELL, JR. Ex Officio Public Relations Vice Chairman Chairman, The DISTRICT TONY K. THOMPSON Waller Lansden Dortch & Davis, LLP DEBORAH MERRELL Ex Officio TH E HONORABLE Ex Officio First Tennessee Bank DONALD W. ABEL, JR. MICHAEL F. JAMESON SunTrust Bank Secretary Ex Officio JAMES S. TURNER, JR. Fifth Third Bank Metro Council, District 6 MATTHEW C. MOORE Ex Officio Ex Officio MarketStreet Enterprises BECKY HARRELL HAL JOHNSON American Constructors, Inc. Treasurer Ex Officio THOMAS D. TURNER KraftCPAs, PLLC Christ Church Cathedral PAUL NEY Ex Officio Ex Officio Nashville Downtown Partnership RONNY L. GREER SUE KENNEMER Mayor’s Office of Economic & Community Immediate Past Chairman Ex Officio Development JOHN VAN MOL Work & Greer, PC FirstBank Ex Officio BETH FORTUNE DONNA NICELY Dye, Van Mol & Lawrence Ex Officio EDWARD LANG Ex Officio Vanderbilt University Ex Officio Nashville Public Library RAY WATERS DIRECTORS Nashville Predators Ex Officio BILL BARKLEY LIBBY FUNKE JOHN F. PARKER Hilton Nashville Downtown Chair, Residential Development Tennessean DR. FRANK LEWIS Ex Officio Crosland, LLC Ex Officio Regions Morgan Keagan Trust SALLY WILLIAMS TONY GIARRATANA First Baptist Nashville Ex Officio PRICE H. BELL, JR. Ex Officio SUSAN W. PLAGEMAN, CFRE Ryman Auditorium Chair, Retail Development Giarratana Development, LLC ROBERT C. H. MATHEWS, III The Nashville Symphony DZL Management Co., LLC Vice Chair, Secretary-Treasurer, JOHN R. WINGO THE HONORABLE ERICA GILMORE CBID Board THE HONORABLE MARY PRUITT Ex Officio KENNETH BLACKBURN Ex Officio The Mathews Company Ex Officio Frost Brown Todd LLC AT&T Metro Council, District 19 State Representative JACK WOOD MICHELLE BOUCHER WILLIAM GLAUS BRACKNEY J. REED Chair, Access and Louisiana-Pacific Corporation Ex Officio Gresham, Smith and Partners Transportation The Bank of Nashville Barge Waggoner C. ALLEN BRADLEY CHARLES ROBIN Sumner & Cannon, Inc. Ex Officio RONALD V. GOBBELL, FAIA Robin Realty Co., LLC Nashville Electric Service Chairman, CBID Board SHIRLEY ZEITLIN Gobbell Hays Partners, Inc. PHIL RYAN Zeitlin & Co., Realtors Metro Development & Housing Agency DOWNTOWN NASHVILLE: Focusing On The Upside In 2009, economic challenges occupancy and profit margins, and even closure of some Partnership plans to initiate a pilot program of car sharing. Each and development opportunities businesses and restaurants. Despite these broader market shared vehicle replaces 15 privately owned cars, with obvious require flexibility and quick realities, downtown Nashville has shown significant growth in benefits to the environment and the downtown parking capacity. adaptation to the changing retail and new business tenants this year, and continues to add environment. The Board and impressive new commercial and residential inventory. Downtown Nashville has much to celebrate this year—old and staff of the Nashville Downtown new—from the 100-year anniversary of top-rated The Hermitage Partnership continue to navigate This has also been a good year to get back to the basics. While Hotel to the brand new LEED neighborhood status of The Gulch. this complex course realistically remaining focused on keeping downtown clean, safe and Richard Florida recently touted the major concentration of multiple and boldly. One distinct attractive, the Partnership explores creative new ways to enhance music genres here as The Nashville Effect. By attracting top advantage is that the Resource the downtown experience for those who live, work and play here. artistic and music talent and a wide range of professionals and Development Committee scholars, Nashville itself makes it easier for us “to make broadened the Partnership’s We choose the option of moving forward—preparing for the downtown Nashville the compelling urban center in the Southeast circle of investors and sponsors last year. Through advance economic rebound by working smarter and becoming a more in which to LIVE, WORK, PLAY and INVEST.” There’s no place like it! planning, the Partnership has deferred several initiatives until sustainable urban community. Inspired by the Mayor’s Green additional revenues are available. Ribbon Committee, new commercial and residential Thomas D. Turner developments are seeking LEED pre-certification, office tenants President and CEO Even as Nashville has fared better than many other cities, it has are expanding their recycling options and tap water is the also seen layoffs, a dip in the housing market, impact on hotel beverage of choice for downtown meetings. By mid-2010, the Thomas D. Turner Crissy Cassetty President and CEO Retail Recruiter Sally E. Connelly Russell Payne Executive Vice President Vice President, Operations Andrea Champion Bill Abraham Communications Director Clean and Safe Manager Erin Perry Chico Allison Bookkeeper/Office Assistant Shuttle Manager Tamara Dickson Vice President, Economic Development STAFF 3 ADAPTING TO CURRENT REALITY AND PLANNING FOR FUTURE REBOUND Bill Barkley, Chair, Residential Development • A slight increase in local real estate closings by mid-2009 may indicate a trend toward the beginnings of market stabilization. Economic data released in June by Residential Units Delivered (Annually) Brookings Institution listed the stability of Nashville’s real estate market as number 25 on a ranking of the country’s 100 largest metro areas. 1,00 ............................................................................................................................... ............................................................................................................................... • Since 2001, the number of downtown residential units has increased over 150%. 900 The largest number of units added to the inventory in a single year was 929 in 800 ............................................................................................................................... 2008, followed by 539 in 2006 and another 432 in 2009. The larger scale of 700 ............................................................................................................................... several developments (one with more than 400 units and three with over 250 units) has accelerated downtown residential expansion considerably since 2006. 600 ............................................................................................................................... 500 ............................................................................................................................... 400 ............................................................................................................................... 300 ............................................................................................................................... 200 ............................................................................................................................... 100 ............................................................................................................................... 0 ............................................................................................................................... 2003 2004 2005 2006 2007 2008 2009 2010 (est) 4 LIVE | NASHVILLE DOWNTOWN PARTNERSHIP • Several decades ahead of Nashville in downtown residential • Since 2004, over 6,500 people have attended the annual • The downtown rental market (currently 30% of the total development, peer cities such as St. Louis and Memphis LIVE IT UP! Downtown Home Tours, with an economic impact residential inventory) has consistently averaged over 90% currently have from two to six times more downtown residents. of at least $46 million in sales and leases. occupancy for the past six years. No new rental product has been introduced since 2006, and with the potential for • Because of this longstanding deficit in residential units, a • With an uncertain housing market, many young professionals greater demand of these units in the near future, at least feasibility study in 2003 projected that downtown Nashville are choosing to rent several years longer before buying. Echo three downtown rental developments are planned. could absorb over 4,000 new units by 2010. Just slightly Boomers (children of the Baby Boomer generation) show a more than 50% of that number is expected by 2010. strong preference for urban living and will soon have a major • Additional residential options are needed for downtown