Northeast Ohio Retail Development Impacts: Policy Implications for a Sustainable Community Future PDD 611 Planning Studio Spring 2007 1 Table of Contents Introduction 3 Section I. Northeast Ohio Trade Area Analysis, 2007 5 Section II. Policy Implications and Recommendations 26 Chapter I: The Built Environment 27 Chris Bongorno, Jesse Grant, Domenic Bellone, Andre Leflore, Cory Riordan Chapter II: Economic Development 51 Sheetal Puthran, Takeema Gumbs, Vikramjeet Singh, Jill Taylor, Joel Wimbiscus, Mark Young Chapter III: Municipal Finance 68 Kathy Vislosky, Lisa Warner, John Vang, Matt Sattler, Scott Muscatello Chapter IV: Riparian Systems 89 Rosemary Giesser, Kesha Christoph, Erin Aleman, Bee Chalarat, Laurent Gloerfelt Chapter V: Transportation 137 Diana Golob, Vetella Camper, Geoffry Brouman, Jeffery Schiffman, John Paul Kilroy, Justin Glanville, Sashank Garikapati Conclusion 155 2 Introduction Background The purpose of this report is to serve as an initial update to the Northeast Ohio Regional Retail Analysis (NORRA). The Cuyahoga County Planning Commission completed the initial study in August of 2000 for NOACA. The original study consisted of three elements: an inventory of retail establishments in the area, an analysis of national retail trends reflected in the area, and finally a discussion of the linkages between retail development, land use, transportation, tax base, and environment. The original study had several significant findings, worth continued examination. First, NORRA found the region saturated in the retail categories of convenience and shopping goods by more than six million square feet. There was also a spatial mismatch discovered between the location of new development and the areas of the region which were underserved. The study also found that while retail generated more than $345 million dollars annually in property, income and sales tax revenue, the continual movement outward was taxing community resources with demands for new infrastructure and transportation improvements. Finally, in addition to stressing financial resources, the study found negative impacts on natural resources and environmental amenities caused by retail development ever outward from the central core. Study Area As with the original study, this update covers the 195 communities in Cuyahoga, Lorain, Medina, Lake, Geauga, and Portage Counties as well as sixteen additional communities in northern Summit County. Project Goals Northeast Ohio is not a fast growing region; rather the area’s population has remained fairly constant. While the size of the population has not grown dramatically, the land area developed has vastly increased and now covers the majority of most counties covered in the NORRA. Given the findings of the original study, this area faces challenges with its growth pattern. Continual growth outward at the expense of an already developed inner core is not sustainable. Sustainable development was defined by the Brundtland Commission as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” The development envisioned by the Brundtland Commission is not the sort of development found in Northeast Ohio at the moment. There are three cornerstones of sustainability: environment, economy and society. These three elements interact with one another through the concepts of stewardship, efficiency and governance. This update to NORRA was designed to revisit the status of large retail establishments in the area and then turn to a discussion of retail’s impacts and alternative choices that are more sustainable. The alternatives incorporate the cornerstones of sustainability and also suggest means of achieving sustainability through stewardship, efficiency and governance. 3 This update comprised two phases. Phase I consisted of a general update of major retail development and redevelopment projects within the study area since 1999. The study area was broken down into the eight geographic planning areas of Cuyahoga County, Lorain County, Medina County, Lake and Geauga counties, and Portage and northern Summit counties. Each area was examined for new retail development, redevelopment and vacancies of retail properties, over 5,000 square feet, in the convenience and shopping goods categories. Next, a retail trade area analysis was done to determine saturation levels of each region of the study area. Phase II consisted of planning and policy analyses of several areas related to sustainable retail development. The topics examined were: riparian systems, transportation systems, buildings, government services and tax issues, and economic development. Each topic was examined with regard to sustainable development principles, best practices, and impacts of retail in the Northeast Ohio. In addition to an analysis, each group identified possible policy and planning responses to insure more sustainable retail development going forward. 4 Section I. Northeast Ohio Retail Analysis 2007 5 NORTHEAST OHIO TRADE AREA ANALYSIS, 2007 I. Retail Growth in Cuyahoga County by Region In Cuyahoga County, retail space for convenience goods and services grew by 5% between 2000 and 2007 ( Table 1.1 ). Retail space for shopping goods and services grew at a faster pace (29%) ( Table 1.2 ). This is an overall retail square foot growth of 20% ( Table 1.3 ). Table 1.1. Change in Retail Square Foot Totals and Rate of Retail Growth for Convenience Goods and Services in Cuyahoga County, 2000-07 Convenience Retail (Square Feet) Proportion of Stores over Retail Growth Cuyahoga County 5,000 SF (5,000 SF+) NORRA 2000 (5,000 SF+) 2007 (5,000 SF+) (2000) (2000) Chagrin Southeast 2,781,790 1,160,991 1,376,726 42% 16% Hillcrest 2,521,083 1,062,900 991,281 42% -7% Heights 1,795,993 1,021,491 949,121 57% -8% Cuyahoga 653,422 293,823 619,247 45% 53% South-central 2,657,534 1,344,291 1,234,463 51% -9% Southwest 2,066,308 1,137,362 1,346,775 55% 16% Westshore 3,699,883 1,553,644 1,737,547 42% 11% Cleveland 5,718,892 2,716,293 2,552,827 47% -6% Total 21,894,905 10,290,795 10,807,987 47% 5% Table 1.2. Change in Retail Square Foot Totals and Rate of Retail Growth for Shopping Goods and Services in Cuyahoga County, 2000-07 Shopping Retail (Square Feet) Proportion of Stores over Retail Growth Cuyahoga County 5,000 SF (5,000 SF+) NORRA 2000 (5,000 SF+) 2007 (5,000 SF+) (2000) (2000) Chagrin Southeast 4,170,248 914,104 1,914,758 22% 52% Hillcrest 3,902,402 3,073,698 5,602,351 79% 45% Heights 980,718 885,342 883,547 90% 0% Cuyahoga 325,500 142,332 142,332 44% 0% South-central 3,208,425 2,724,050 2,786,854 85% 2% Southwest 3,501,810 3,065,739 3,438,292 88% 11% Westshore 4,029,421 2,337,520 3,735,421 58% 37% Cleveland 2,912,668 1,421,852 1,871,403 49% 24% Total 23,031,192 14,564,637 20,374,958 63% 29% 6 Table 1.3. Change in Retail Square Foot Totals and Rate of Retail Growth for Convenience and Shopping Goods and Services Combined in Cuyahoga County, 2000-07 Retail Totals (Square Feet) Proportion of Stores over Retail Growth Cuyahoga County 5,000 SF (5,000 SF+) NORRA 2000 (5,000 SF+) 2007 (5,000 SF+) (2000) (2000) Chagrin Southeast 6,952,038 2,075,095 3,291,484 30% 37% Hillcrest 6,423,485 4,136,598 6,593,632 64% 37% Heights 2,776,711 1,906,833 1,832,668 69% -4% Cuyahoga 978,922 436,155 761,579 45% 43% South-central 5,865,959 4,068,341 4,021,317 69% -1% Southwest 5,568,118 4,203,101 4,785,067 75% 12% Westshore 7,729,304 3,891,164 5,472,968 50% 29% Cleveland 8,631,560 4,138,145 4,424,230 48% 6% Total 44,926,097 24,855,432 31,182,945 55% 20% Figure 1.1. Change in Square Footage of Retail for Convenience Goods & Services in Cuyahoga County, 2000-07 Convenience Retail: Change in Square Footage 2000-2007 Cuyahoga County 5% growth Cleveland Westshore Southwest Total SF (5,000+) 2007 Southcentral Total SF (5,000+) 2000 Cuyahoga Height Hillcrest Chagrin Southeast 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Retail Square Feet Figure 1.2. Change in Square Footage of Retail for Shopping Goods & Services in Cuyahoga County, 2000-07 Shopping Retail: Change in Square Footage 2000-2007 Cuyahoga County 29% growth Cleveland Westshore Southwest Total SF (5,000+) 2007 Southcentral Total SF (5,000+) 2000 Cuyahoga Height Hillcrest Chagrin Southeast 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Retail Square Feet 7 II. Retail Growth in Northeast Ohio Table 2.1 shows that retail space for convenience goods and services grew by 11% in the region between 2000 and 2007. Retail space for convenience goods grew faster in the region than it did in Cuyahoga County alone. During the same time period, retail space for shopping goods and services grew by 30% ( Table 2.2 ). The growth rate for the region as a whole for shopping compares to the growth rate for Cuyahoga County (30% vs. 29%): (1) Geauga, Medina, and N. Summit counties have grown by more than 50%; (2) Lake and Portage counties did not experience comparable growth; (3) Cuyahoga and Lorain have grown at the same rate. Table 2.1. Change in Retail Square Foot Totals and Rate of Retail Growth for Convenience Goods and Services in Northeast Ohio, 2000-07 Convenience Retail (Square Feet) Proportion of Stores over Retail Growth Region 5,000 SF (5,000 SF+) NORRA 2000 (5,000 SF+) 2007 (5,000 SF+) (2000) (2000) Cuyahoga County 21,894,905 10,290,795 10,807,987 47% 5% Geauga County 1,801,390 848,072 1,169,147 47% 27% Lake County 5,104,494 2,958,492 3,558,545 58% 17% Lorain County 5,415,200 5,415,200 5,997,487 100% 10% Medina County 2,880,111 1,677,334 1,970,755 58% 15% Portage County 2,055,884 989,078 1,079,682 48% 8% Summit County 2,154,112 1,248,462 1,682,251 58% 26% Total 41,306,096 23,427,433 26,265,854 57% 11% Table 2.2.