Introduction | Economic Development Insight | Business Survey
Economic Development InsightIntroduction | Financial Considerations | History of Economic Development | Master Plan | Commercial Districts | Mixed-Use Development | Market AnalysisMixed-Use Redevelopment- The Mixed-Use Concept- Public Sector Involvement - Industry Trends - Examples Mixed UsesMuch discussion has occurred over the City’s interest in pursuing mixed-use developments in our commercial districts. The rationale as to why it is needed and what mixed use means is presented in the following text.What is Mixed Use? Mixed use is exactly that – more than one type of land use occurring within a single zone. A number of present-day land use planners argue that, contrary to the single-use Euclidian zoning adopted in the early 1900s, zoning that permits and encourages different land uses to occur within a common area is preferred. It is believed the different land uses can create synergies and provide an environment that is more sustainable and more easily adapted for reuse than single-use zoned land. Mixed use does not dictate the numbers or quantities of uses, although these considerations do play a role in the overall success of a project. Each area and project must be considered and evaluated based on its own merits. How Are Land Uses Determined And Regulated? All land in the City is mapped and a zoning designation applied to that map. Zoning designations in the City of Upper Arlington include: Residential Districts R-S - Residential Suburban District R-1 - One-Family Residence District R-2 - One-to-Four-Family Residence District R-3 - Multi-Family Residence District RO-3 - Multi-Family Residence and Office District R-4 - Multi-Family Residence District RCD - Community Development District Commercial Districts B-1 - Neighborhood Business District B-2 - Community Business District B-3 - Conditional Business District O - Office District ORC - Office Research District PMU - Planned Mixed-Use District PB-3 - Planned Shopping Center District Miscellaneous Districts WCD - Wireless Communications District FP - Floodplain District Why Mixed Use? As stated earlier, mixed-use zoning is thought to be more synergistic and adaptive. Further, land-use experts are in agreement that society benefits from developments that are walkable, less reliant on the automobile and encourage social interaction Retail Uses in Upper Arlington Supply/Demand As demonstrated by the accompanying chart, Upper Arlington has historically had a greater amount of retail land use than surrounding areas. There was a time when Upper Arlington retail centers were regional draws, supported by a much larger population than that within our own political boundaries. Over time, retail throughout the region increased dramatically and the region’s disposable income has followed. Likewise, on average Upper Arlington’s retail buildings are aging and less desirable in comparison to the newer developments. Today, Upper Arlington still has more retail than regional, state or national averages. Presently well over two million square feet is available within a five-mile radius of Upper Arlington. Upper Arlington residents and daytime workers have enough buying power to support only 1.65 million square feet of retail. This gap between supply and demand readily explains vacant retail space in Upper Arlington. Retail Land Use Upper Arlington’s Position in the Region
Community Impact Another consideration is the impact the land use will have on the community. From a quality-of-life standpoint, the City’s goal is to attract and retain retailers, restaurants and service companies that support residents’ day-to-day needs. From a fiscal standpoint however, these types of businesses do not have a positive impact on City revenues. The challenge is to identify the amount and kinds of retail/service businesses that can be supported by the community while not overbuilding a use that does not contribute to the goal of increasing commercial tax revenue in order to reduce the burden on the residential property owner. Office Uses In Upper Arlington Supply/Demand Contrary to regional trends, the supply of office space in Upper Arlington is limited and probably not meeting current demand. Office space is classified by its age, quality/level of finish, amenities, etc. Upper Arlington’s office supply is primarily Class B and C space, with relatively no high-end Class A space in the market. Because of limited accessibility and visibility, Upper Arlington is not a likely candidate for large single-user office buildings. The City’s proximity to The Ohio State University, Battelle, most of the major hospital systems and Downtown Columbus, coupled with the City’s demographics, do make the community an ideal location for smaller medical, university-related or professional office users. Upper Arlington’s 2004 office vacancy rate fluctuated between 8-14%, much lower than the reported 24% vacancy rate for the Columbus market. The Columbus market office vacancy trend is reported in the chart below. Upper Arlington has not followed the same trend.
Prior to the new office construction in the 2000s, the last new Upper Arlington office space was constructed in the 1980s. As new Upper Arlington offices have been constructed in the 2000s, the space has quickly been absorbed demonstrating the strong demand for office space in Upper Arlington. A 2004 Boulevard Strategies report (Appendix A), suggests the City has the potential to absorb approximately 30,000 square feet of new office space per year. Community Impact Why is office land use so desirable? Consider that the City does not benefit from sales tax and therefore retail use income is based primarily on the income tax generated by minimum wage jobs. With income tax being the largest contributor to the City’s general fund, higher paying office and medical jobs have a much greater yield to the City. Identifying the right office product type, size and quantity is key to the overall success of what is constructed. Residential Uses in Upper Arlington Supply/Demand It comes as no surprise that as a highly desirable residential community, housing supply has not satisfied demand. Certain product types in particular, such as empty-nester housing, patio homes and senior housing, are of particular demand. Community Impact Although residential land use does not have the fiscal benefit of office land use, it does fiscally contribute more to the City than retail. Beyond the fiscal impact, residential is considered to be a small but necessary component of the mixed-use concept, as it contributes an immediate and direct synergy to the project’s overall success. Civic Uses Civic uses are considered a key component to mixed-use projects, as this land use acts as a permanent draw to the site. The civic use need not be a structure but can be accomplished in the way of a public gathering spot, public art or governmental office. Matt Shad Deputy City Manager-Economic Development City Manager's Office City of Upper Arlington 3600 Tremont Road Upper Arlington, Ohio 43221 Phone: 614-583-5046 www.ua-ohio.net |
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