City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 21, 2015
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, ACTING CITY MANAGER /s/
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City Council Consideration of Waterfront Implementation Phasing and Funding Plan Recommendations
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ISSUE: City Council receipt and consideration of phasing and funding of Waterfront Plan Implementation.
RECOMMENDATION: That City Council:
1. Receive and adopt the proposed phasing plan for implementation of the Waterfront public improvements generally consistent with the following initial order of implementation:
a. Completion of core area utility, roadway and other infrastructure construction required to support subsequent improvements;
b. Completion of Flood Mitigation elements;
c. Completion of Fitzgerald Square improvements;
d. Completion of remaining park improvements inside the core area.
2. Provide general guidance to the City Manager to program funding for Waterfront implementation consistent with the recommended phasing plan and to the extent financially feasible into the forthcoming FY 2016 to FY2025 Capital Improvement Program with recognition of the priority of this project as an asset to City residents, businesses, and visitors; and its support of overall economic and environmental sustainability.
BACKGROUND:
Development of the Phase I Design
The Waterfront Plan was approved in January 2012 creating a 21st Century vision for a redeveloped Alexandria Waterfront that addresses important community goals, such as a fully connected public walkway along the riverfront, expanded visual access to and from the water, enhanced and expanded public spaces with varying levels of programmed activity, flood mitigation and shoreline improvements and economic sustainability measures. Plan approval was followed by the hiring of The OLIN Studio and URS Corporation in 2013 to develop a Phase I Landscape and Flood Mitigation Preliminary Design (Phase I Design) which was completed in late spring 2014 and approved by the City Council on June 14, 2014. In addition to incorporating the important aforementioned Plan vision and goals, the Phase I Design, through additional public input, further reflects the array of community ideals and aspirations for a world-class Waterfront. Additionally, the Phase I Design incorporates the landmark City-Old Dominion Boat Club (ODBC) Property Exchange Agreement, allowing full implementation of the Waterfront Plan's premier element, a public, multi-purpose Fitzgerald Square at the foot of King Street, while also accommodating a new ODBC boathouse and parking lot on the east side of The Strand between Prince and Duke Streets. This prime OLIN design creates the Waterfront which Alexandrians envision for year-round and multifaceted riverfront enjoyment.
When approving the Phase I Design, the City Council also requested staff to return with cost estimates and phasing and funding options for Waterfront Plan implementation. Staff worked over the summer and fall to generate the information.
DISCUSSION:
Development of Cost Estimates and Draft Phasing and Funding Options
Staff, with the assistance of expert outside technical consultants, has developed a cost estimate of $120 million for full implementation of the Phase I Design. Like the Waterfront Plan, the Phase I Design divides the planning area into two subareas, the Core Area (Duke Street to Queen Street), and the Area Outside the Core (Harborside/Shipyard, Founders, Oronoco, Rivergate, and Tidelock Parks).
Cost Estimates
The chart (see Attachment 1) illustrates the subareas, the public improvements within each subarea and the associated costs. This delineation of the Waterfront planning area into subareas lends itself to phasing. The Core Area is further divided into primary and secondary areas, with the assumption that the landside and infrastructure elements of the primary area would need to be implemented before the secondary area.
Project Revenue Sources and Financing Options for Waterfront Implementation
The Plan anticipated the primary revenue stream for funding the implementation would come from new Waterfront development. Those revenues sources include the tax increment produced by the new development, and one-time developer contributions for off-site public improvements
Additional potential revenue sources identified for Waterfront Plan implementation include:
· Fees for programmed activities;
· Private donations and fundraising; and
· Federal, state and local grants.
In addition, financing options could include bonds, cash, and/or a combination of the two.
Development of Phasing and Funding Options
December 3, 2014 Community Open House
The process for development of phasing and funding options began with a Community Open House held on December 3, 2014. The public was requested to identify priorities for implementation of planned Waterfront public improvements through a polling exercise. The polling exercise consisted of 17 questions, divided into categories including demographics, general public improvement priorities, and specific public improvement priorities. Seventy (70) people participated in the polling exercise.
The general questions asked to the public to prioritize major plan elements like flood mitigation and a continuous riverfront walkway, and expansion of parks and open space. The more specific questions asked for prioritization of individual projects, both inside and outside the core area. Those projects included, for example, Fitzgerald Square improvements and amenities, the Civic Building, King Street Pier, and Founders Park improvements. The participants were also asked to share which general or specific improvements they would like to see implemented in the next 10 years.
Based on the questions asked, the conclusions in terms of top priorities were:
· Start construction inside the Core Area
· Provide for Flood Mitigation
· Provide a continuous Riverfront Walkway
· Expand and enhance Parks
· Over 70% of the respondents indicated they want to see 2 or more Core Area projects implemented in the 10 year CIP
Phasing Options
Based upon the community feedback from the Community Open House, staff developed three potential Phasing Options for presentation at a December 11 joint public hearing of the Waterfront and Park and Recreation Commissions. The Options include the same three elements, identified by the community as highest priorities, implemented in a different order. These options focus on priorities to be constructed first, with an understanding that remaining public amenities would be prioritized and added to future capital improvement program budgets.
The Options are as follows:
· Option A - Flood Mitigation and Promenade Priority
· Option B - Fitzgerald Square Priority
· Option C - Core Area Parks Priority
Option A - Flood Mitigation and Promenade Priority, would begin with construction of the Flood Mitigation Elements and Promenade between Duke Street and Queen Street, followed by the construction of the improvements to the unit block of King Street and the creation of Fitzgerald Square, and completed with expansion and enhancements to Point Lumley Park and improvements to Waterfront Park. The advantages of this option include early protection from nuisance flooding, a highly desirable riverfront walkway, and protection of future public investments from flooding. Some disadvantages include other public enhancements such as public parks are deferred, and there would be delayed synergy with private investments in public amenities.
Options B and C are variations of the implementation order for the same core area elements. Implementation of Option B begins with Fitzgerald Square and the foot of King Street, is followed by the flood mitigation and promenade next, and then the expansion of Point Lumley and Waterfront Parks. Implementation of Option C begins with the expansion of Point Lumley and Waterfront Parks, is followed by Fitzgerald Square and the foot of King Street, and the completion of the flood mitigation and promenade.
Option B has the advantage of providing new active public space and a marquee element of the plan early in implementation. Option C provides enhanced large open space, and creates synergy with the proposed private development projects along Strand Street. Delaying flood mitigation is a common disadvantage to both options by exposing existing along with new infrastructure to the risk of nuisance flooding.
December 11, 2014 Joint Waterfront Commission and Park and Recreation Commission Public Hearing
Staff presented these Options to a joint meeting of the Waterfront Commission and Park and Recreation Commission on December 11, 2014. A public hearing was held and general consensus among commissioners from both boards at the joint public hearing was to begin with Option A, the Flood Mitigation Bulkhead and Promenade Option. Members generally believe it is best to start with flood mitigation to ensure protection of other public investments. Most public speakers also supported this option.
December 16, 2014 Waterfront Commission Meeting
As a follow-up to the December 11, 2014 public hearing, the Waterfront Commission discussed the matter of the above phasing and funding options at its December 16, 2014 regular monthly meeting. The Waterfront Commission voted to prepare a letter to the Mayor and City Council recommending Waterfront implementation begin with Option A, starting with construction of the Flood Mitigation Bulkhead and Promenade, followed by Fitzgerald Square and then the Core Parks.
January 6, 2015 Planning Commission Meeting
Staff presented a summary of the Phasing and Funding information and civic engagement process conducted to the Planning Commission for discussion on January 6, 2015. Commissioners generally supported a recommendation that implementation begin with Option A, and considered the three options a good summary of the choices available.
January 15, 2015 Parks and Recreation Commission Meeting
Staff presented a summary of the Phasing and Funding information and civic engagement process conducted to the Parks and Recreation Commission for discussion on January 15, 2015. The Commission voted to prepare a letter to the Mayor and City Council recommending Waterfront implementation begin with Option A, starting with construction of the Flood Mitigation Bulkhead and Promenade, followed by Fitzgerald Square and then the Core Parks.
FISCAL IMPACT: The total cost for implementation of the Waterfront Landscape and Flood Mitigation Design (as illustrated by the Phase 1 Design) is $120 million (in 2014 dollars). The portion of the Phase 1 Design identified as initial priority phases during the civic engagement process, recommended by staff, and depicted by Option A as the priority infrastructure, totals approximately $52 million. No specific time frame for implementation is proposed at this time, as the improvements are to be incorporated and prioritized in conjunction with the preparation of the upcoming full FY 2016 to FY2025 citywide Capital Improvement Program.
ATTACHMENTS:
1. Cost Estimate Chart
2. Waterfront Phasing Option A
STAFF:
Emily Baker, Acting Deputy City Manager
Mitchell Bernstein, Acting Director, Department of Project Implementation
Karl Moritz, Acting Director, Department of Planning and Zoning
Neslie Birch, Director, Office of Management and Budget
Anthony Gammon, Acting Deputy Director, Department of Project Implementation
Susan Eddy, Deputy Director, Department of Planning and Zoning
Chris Bever, Assistant Director, Office of Management and Budget
Nancy Williams, Principal Planner, Department of Project Implementation
Jack Browand, Division Chief, Department of Parks, Recreation, and Cultural Activities