Dallas Farmers MarketDesign & Economic Development

Strategic Plan

Economic Development & Housing Committee Briefing

April 17, 2006

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PURPOSE & STAKEHOLDERS

Present findings & recommendations of the Dallas Farmers Market Design & Economic Development Strategic Plan –Boka Powell, Inc. Study

The options & recommendations in this briefing have incorporated the valuable insight of Dallas Farmers Market stakeholders, including:

• Dallas Farmers Market Friends• Dallas Farmers Market Tenants & Vendors • Downtown Dallas Inc. • Downtown Developers

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BACKGROUND

1994 - Major improvements undertaken at the Dallas Farmers Market (DFM) included construction of: – Shed 2– Administration/multi-purpose facility– Traffic & Parking modifications

2003 – DFM Summit & USDA Agriculture Marketing Services studied DFM

2004 – Reports from Summit & USDA recommended a comprehensive market analysis as first step in determining future of DFM

September 2004 - Boka Powell, Inc. was hired to conduct a Design and Economic Development Strategic Plan for the DFM

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MARKET COMPARISONS

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MARKET COMPARISONS • Detroit Eastern Market • Seattle - Pike Place Public Market • Los Angeles Farmers Market • Los Angeles Grand Central Market

Pike Place Public Market - Seattle

• Baltimore - Lexington Market • St. Paul Farmers Market• Philadelphia - Reading Terminal Market • St. Louis - Soulard Farmers Market • Columbus - North Market • Cincinnati - Findlay Market Los Angeles Farmers Market

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Market Comparison Recommendations

Defined Core Values– Support spirit of/and the American farmer– Serve as small business incubator – Support local businesses (vs. national chains)– Nurture valued tenants– Promote healthy living – Provide variety of customer experiences

6Dallas Farmers Market

Market Comparison Recommendations (Cont…)

• Transfer day-to-day operations of the Market to a non-profit or for-profit entity

- New management entity responsible for all aspects for DMF management, security, maintenance, custodial, tenant selection & leasing, marketing, fund raising, etc.

- Note: City support continues for capital improvements

• Benefits:- Provides flexibility to respond quickly to market & operationalchanges

- Removes City from tenant selection & leasing activities

- Provides mechanism to attract sponsors, gifts & donations

- Sets an entrepreneurial tone for DFM

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Market Comparison Recommendations (Cont…)

• Define a new product mix & seek local tenants to provide products

– Define product mix based on customer desires

– Create tenant selection policy

– Work with economic development to improve tenant recruitment programs

– Revise leasing structures to include annual & daily rentals

Reading Terminal Market - Philadelphia

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Market Comparison Recommendations (Cont…)

Improve the perception of safety at the DFM:

• Continue use of Security Officers & create a visible Security Office at DFM

• Provide “down room” for DPD, DID officers to allow respite from heat/cold & increase visibility at DFM

• Continue implementation of security cameras

Los Angeles Los Angeles -- Grand Central MarketGrand Central Market

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Market Comparison Recommendations (Cont…)

• Increase marketing funding & efforts– Create new policies for a safe, clean, fresh & welcoming environment

– Market farm fresh, locally produced foods & businesses

– After changes, increase annual Marketing funding from $50K to $100K

– Fund branding & marketing campaign ($150K)

– Increase programming budget from $50K to $100K annually

– Increase programming for schools on healthy eating & food safety

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MARKET ANALYSIS

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Market Analysis Findings

• DFM can improve access to several key markets, including:– New adjacent residential– New residential in or near Downtown

• Other underserved demographics for DFM– Downtown office employees – Tourists

Note: Public transit needed to attract downtown office workers / tourists

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MARKET ANALYSIS (Cont…)

• Shed 2 has ability to anchor grocery/ restaurant demand with adjacent residents

• Recommend 10,000 sq. ft. or 50% of Shed 2 for grocery / dining / specialty food

• Other downtown & citywide residents provide additional demand for retail / restaurant

• As the DFM is repositioned it will become a catalyst for additional retail opportunities in the district

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SITE, DESIGN & PARKING

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SITE, DESIGN & PARKING

• Opportunities– Downtown Parks Master Plan– Comprehensive Transportation Plan for the CBD– Inside the Loop Committee Report– City of Dallas Comprehensive Land Use Plan

• Challenges – On-Site Vehicle & Pedestrian Circulation– Public Parking Challenge – Retail Density – Special Event Staging Flexibility

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Site Opportunities: Potential Deck Park Over I-30

Potential Pedestrian Linkages

Harwood Pedestrian Corridor– Links Dallas Heritage Park,

DFM, Arts District & Uptown

– Future Street Car may run down Harwood

Future Deck Park over I-30 will connect DFM to Dallas Heritage Village

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Site Opportunities (Cont…)Inside the Loop Committee recommends Hike & Bike Trails near DFM

DaDallas Farmers Market Area

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Development Continues Adjacent to Dallas Farmers Market

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Adjacent Residential Units Completed Total 967

Camden Farmers Market 610

2220 Canton Lofts 48 Other Units 8

Camden Townhomes 17Camden Lofts & Apartments 284

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Harlan Building – 5 units

312 Harwood Lofts - 3 units

Ruibal’s Plants of Texas

501 Adjacent Residential Units Planned

Photo courtesy of Urban Innovations, Inc

44 Townhomes

310 Apartments

119 Townhomes

28 Townhomes

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Site Challenges – Vehicle & Pedestrian Circulation

• Circulation is confusing & inflexible

• Food kiosk is a visual barrier

• High traffic counts on Canton & Central are not being used to attract & direct customers

Existing Traffic Flow

Food Kiosk is Visual Barrier

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Recommendation - Vehicle & Pedestrian Circulation

• Add pedestrian esplanade & expand to Canton for continuity

• Construct entrance portal

• Remove food kiosk

• Add active/ kid friendly fountain to bring sound & energy to esplanade

• Modify traffic circulation

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Pedestrian Esplanade & Entry Portal

Kid Friendly Fountain

Site Challenges - Public Parking

• DFM improvements in early 1990’s reduced parking spaces by 35% (127 spaces)

• Vendors compete with customers for parking during peak season

• Parking access not defined well along Harwood Street

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• Add 500 parking spaces- Must be convenient & centrally

located

- Improve directional signage on & off site

• Improve Harwood Street & link DFM to Dallas Heritage Village

Recommendation

LEGEND237 Public210 Vendor / Service138 Public w/in 2 blocks585 Total Spaces

44 Not Available

Challenge - Retail Density / Staging Flexibility

Dallas Farmers Market Needs:

• Critical mass of retail activity -beyond Shed 2

• Products mix must be available 7-days a week

• Predictable large special events

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Los Angeles – Grand Market

Recommendation:• Renovate Shed 2 • Seek development opportunities

adjacent to DFM• Increase density of retail space

on DFM site • Provide 7-day a week activity • Seek special events space

Seattle – Park Place Public Market

Summary of Infrastructure Options ConsideredNOTE: All options include renovation of Shed 2

Funding: 2003 Bond Funds $3.2M

– Option 1 – Replace Shed 3 with 500 space parking garage w/ Market Hall Space & – Estimated Cost $18M (Future Bond Funds)

– Option 2 – Replace Shed 4 with 500 space parking garage w/ Market Hall Space – Estimated Cost $18M (Future Bond Funds)

– Option 3 – Purchase vacant land & Taylor Street property. Add surface parking & additional retail / restaurant space Estimated Cost $20.6M (Future Bond Funds)

– Option 4 (Recommended) – Modify Shed 4 & Lot C to increase surface parking & work w/ private developer to purchase Taylor Street property for additional retail & restaurant -Estimated Cost $10.5M (Future Bond Funds)

NOTE: Options 3 & 4 require addition of shuttles & use of existing CBD parking facilities for peak season & special events

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All Options Include Renovation of Shed 2• Design & construction improvements include:

– Add heat & air conditioning– Upgrade water, sanitary sewer, electrical & gas service– Add improvements needed to support 10,000 sq. ft. dining /

specialty food space - exhaust hoods, grease traps etc. – Tenant finish out provided by tenant

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Shed 2 – Dallas Farmers Market

Option 1 & 2 Construct 500 Space Parking Garage with 41,500 sq. ft. Market Hall, Esplanade Improvements, Entry Portal & Fountain - $18M

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Option 2: Replaces Shed 4 with Parking Garage & Market Hall

Option 1: Replaces Shed 3 with Parking Garage & Market Hall

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Character Sketch –Parking Garage, Esplanade Entry Portal

Option 1 & 2: Construct Esplanade Improvements, Entry Portal & Fountain

Option 1 & 2 - Pros & Cons

Taylor St. Building at Proposed Entry PortalPROS

• Proceeds with Shed 2

• Improves product mix

• Displaces tenants & parking during construction activity

• Interim construction detracts from customer visits – may not come back

• If Garage/ Market Hall is not heavily used it could result in further decline

• High Risk investment w/ no guarantee of success

• Portal at Marilla & Pearl may not be attractive due to deterioration ofadjacent Taylor Street building

• Does not address traffic circulation problems along Taylor Street

CONS

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Option 3 Purchase Building & Portion of Vacant Land

• Purchase vacant 4 acre parcel of property- Bounded by Central Expressway, Canton, Pearl & Marilla- Acquire approx. ½ of property & seek private development for ½

• Purchase Taylor Street property for additional retail / restaurant

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Vacant 4 Acre Site

Taylor Street Property

• Omit parking garage until market warrants construction

• Demolish food kiosk

• Construct 4 portals & esplanade

• Abandon Taylor Street as a public street Estimated Cost: $20.6 M

Option 3 (Cont…)• PROS

– May provide interim space for Shed 2 vendors during construction

– Corrects traffic circulation problem

– Clearly defines DFM property

– Increases visibility of DFM

– Increases retail density at DFM

– Lower risk investment –

– New parking area may serve as special event space

– Must create shuttles & access to existing CBD parking for peak season and special events

• CONS– Takes potential development of 4 acre

tract off tax rolls

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Option 4On-Site Surface Parking & Taylor Property

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Canton St.

Private Residential / Retail Development

• Modify Shed 4 & Lot C to increase surface parking

• Create new seasonal vendor space to area between Shed 2 & 3

• Seek public / private partnership to redevelop Taylor St. property to retail/ restaurant

• Add 4 entry portals, fountain, small children’s play area, welcome kiosk, signage & landscaping

• Renovate & add additional customer restrooms

• Improve Sheds 1 & 3 including addition of produce wash stations & storm water improvements

Option 4 - Estimated Costs 2003 Bond Funds - $3.2M

– Shed 2 Renovation – Demolish kiosk – Modify Shed 4 & Lot C to increase parking – Design new attractive seasonal vendor space between Shed 2 & 3 – Seek abandonment of Taylor Street as a public street

Future Bond Funds - $10.5M– Construct esplanade improvements along Pearl St. from Marilla to

Farmers Rd.– Improve surfaces, landscaping, lighting, bury utilities, etc.– Add fountain, small children’s play area, 4 entry portals, welcome

kiosk, signage & landscaping– Construct new attractive seasonal vendor space between Shed 2 & 3 – Renovate & add additional customer restrooms – Improve existing Sheds with produce wash stations & storm water

improvements

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Option 4 - Pros & Cons

PROS• Taylor Street Property Public Private Partnership

– Provides incentive for private development of retail / restaurant– May provide interim space for Shed 2 vendors during construction– Corrects major traffic circulation problem – Increases retail density on DFM site– Clearly defines DFM property & increases visibility for customers

• Shed 4 & Lot C Surface Parking – Provides additional parking & clear place for customers to park – Potential to implement improvements quickly– Lower risk–allows market to catch up before building future garage– Provides special event space – Requires creation of shuttles & access to existing CBD parking for

peak season and special events

CONS• Market tenants will need to adjust to higher tenant density during

peak seasons

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Recommendations• Pursue Option 4 Improvements - $10.5M Future Bond Funds

• Develop RFP & funding plan to transfer day-to-day operations of DFM to a non-profit or for-profit entity

• Create ad hoc committee w/ stakeholders to develop new policies & procedures to improve DFM & eliminate Chapter 29, Dallas City Code

• Develop defined product mix plan based on study of customer needs, branding & marketing

• Develop outreach & incentive programs to encourage existing & new local tenants to provide products

• Implement DPD officer “down room” at DFM

• Develop plans & funding mechanisms to add shuttles & seek access to adjacent parking facilities for peak / special events

• Once product mix changes seek additional marketing funding

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Estimated Economic Impact - 2015• DFM provides an appealing focal point for residential, office

& retail development

• Planned management, marketing & infrastructure improvements will enhance customer experiences & attract untapped markets

• Boka Powell estimates adjacent property values will increase to approximately $269.2M by 2015– Property Taxes (all entities) estimated at $7.3M annually– City of Dallas Property Taxes estimated at $1.83M annually

• Sales Tax is estimated at $8.1M annually– Revenues to all entities estimated at $668K annually– City of Dallas revenues estimated at $80K annually

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Future Development Opportunities• Completion of the TX DOT Pegasus Project realigns I-30 and

provides additional development opportunity • Pegasus project design is complete & awaiting approx. $400M

in funding • The property adjacent to DFM could be reclaimed by the City of

Dallas or sold for private development

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Future Private Development Opportunity

Future DFM DevelopmentOpportunity

Next StepsApril 26, 2006

Seek City Council adoption of DFM Economic Development Strategic Plan

Seek City Council approval for design of Shed 2, demolition of kiosk, modification of Shed 4 for surface parking & design of seasonal tenant space improvements

October 2006 1. Develop RFP, funding plan & seek authorization to transfer management of DFM to a non-profit or for-profit entity

2. Create ad hoc committee w/ stakeholders & develop new policies/procedures & eliminate Chapter 29, Dallas City Code

3. Develop plans & funding mechanisms to add shuttles & seek access to adjacent parking facilities for peak / special events

4. Develop defined product mix based on study of customer needs

5. Develop outreach & incentive programs to encourage existing & new local tenants to provide defined product mix

6. Develop plans & cost estimates for DPD officer “down room”7. Work w/ Economic Development on Taylor St. redevelopment

& begin process to abandon Taylor Street

TBD Seek Future Bond Program approval for Option 4 –Estimated Cost $10.5M

TBD Schedule design & construction activities upon voter approval of Future Bond Program

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