Author: Manager

The Riverwalk Vision with David Williams of GRH Development Resources

Submitted by: David Rushing

Who you missed: David Williams, Managing Director of GRH Development Resources. David is a 25-year real estate and construction professional who oversees all aspects of the company’s development and construction projects. Dave has completed over $300,000,000 in residential, mixed-use, industrial and office projects throughout the Midwest, Georgia, Tennessee and South Carolina. Additionally, he is responsible for managing community relations, permitting and design, and overseeing the company’s project managers. He is also active in business development, property management, working with various agencies to attract additional users to the Riverwalk development, and shared responsibilities for financial institution relationships.

David holds a B.S. in Business Administration from Miami University and a M.S. in Environmental Science & Engineering from Ohio University.

What you missed: "Creating a Vibrant Development Through A Public Private Partnership" was an overview of the Riverwalk development located near the I-77 corridor at the N. Cherry Road interchange on the Catawba River in Rock Hill, SC. David told us about the entire project from start to finish. The property was previously owned by Celanese Corporation of America and operated as a cellulose acetate plant until 2005. In addition to cellulose acetate (a synthetic fiber widely used in the textile industry), Celanese also manufactured bulk chemicals including methanol and formaldehyde, and used large amounts of acetone and benzene to reuse the acetic acid used in the manufacturing process. The facility was self-sufficient and included a power plant, water filtration plant, raw water intake, wastewater treatment plant and landfills, and, at one point, the 2.5 million square-foot facility employed over 2,500 employees. The project included the search and closing on the property(1000 acres zoned for industrial), 2-year demolition and remediation, rezoning, a private/public partnership (detailing scope scale, cost & density needs), filtering through site environmental and physical restraints, utility needs, traffic and access, market studies and a charrette (an intense period of designing or planning) with local politicians, companies and citizens. Riverwalk is now home to several subdivisions with homes by residential developers including Saussy Burbank, Evans Coghill, and Chesmar Homes. Also in development are 300 high-end apartments along the Catawba River. The Giordana Velodrome which hosted the 2012 US Cycling Championships and a BMX Supercross Track are on the property. A YMCA is being constructed to overlook the Giordana Velodrome. In addition, ground breakings are planned for a 1,000,000 square-foot distribution center and a 100,000 square-foot facility providing 360 high-paying jobs. An events center provides wedding receptions and other communal events along the Catawba River and the Riverwalk Trail, a 2.5-mile corridor along the Catawba River, provides hiking and biking opportunities for residents and connects to numerous mountain bike trails within the development. The former TSD post closure units are being developed into baseball and soccer fields that adjoin the residential developments.

Why: The overall goal of the project was to transform a former industrial complex and Resource Conservation and Recovery Act (RCRA) Treatment, Storage, and Disposal (TSD) facility into a new mixed use, residential, commercial, and industrial complex. The new Riverwalk development would help catalyze economic redevelopment opportunities in the entire region, while incorporating the natural beauty and surroundings of the adjoining Catawba River. Furthermore, each project stakeholder had individual goals within that overarching goal:

• Private goals were to address an estimated $45,000,000 environmental legacy and develop a community distinguished by over three miles of river waterfront and a planned mixed use development consisting of authentic housing, shopping, entertainment, office, and schools.

• Public goals for City of Rock Hill were to cause redevelopment of the former industrial site, replacing the loss of high-wage manufacturing jobs and loss of tax base; and

• Public goals for the State of South Carolina regulatory agency and U.S. EPA, to successfully support the redevelopment by providing a cooperative and open dialogue to address the environmental legacy economically and quickly, in order to support the successful (job creation, economic activity and taxes) and protective (mitigation of human health and environmental risks) redevelopment of the site.

How: The project was funded without access to commercial financing and had to rely solely on investor equity, salvage recovery, tax incremental financing, and by the use of bond generated funds to install the infrastructure. These funds were needed to cover the $9,000,000 demolition, $3,000,000 remediation, and $50,000,000 infrastructure costs.

Securing the necessary financing for the project required over two years of creative planning, as well as extensive negotiations with multiple local and state entities.

For more information please visit: http://www.brownfieldrenewal.com/renewal-award-project-environmental_impact-riverwalk-24.html. where excerpts of this summary were used.

Sky’s the Limit for Higher Education in the Center City

Who you missed: A panel discussion led by Moira Quinn, Senior Vice President of Communications and Chief Operating Officer for Charlotte Center City Partners. The Panel was Dr. Cheryl Richards, CEO and Dean of Northeastern University Charlotte, Jerry Coughter Executive Director of UNC Charlotte Center City and Joanne Beam, Director of Wake Forest University Charlotte.

Dr. Cheryl Richards began her career in higher education 25 years ago at Colorado State University and has since held leadership posts with the University of Denver, Regis University, EDUCAUSE and Central Piedmont Community College. Dr. Richards has twice been recognized by the Mecklenburg Times as one of Charlotte’s “50 Most Influential Women” and was honored in 2014 as “Woman of the Year.” The Charlotte Business Journal recognized her as a “40 Under Forty” leader as well as one of the “Top 25 Women in Business.” A frequent presenter and speaker, she has also served as guest host for Carolina Business Review.

Dr. Richards holds a bachelor’s degree in Speech Communication, master’s degree in Student Affairs in Higher Education and Ph.D. in Leadership for Higher Education. She and her husband of 20 years are proud parents of two children.

Jerry Coughter climbed Mt. Kilimanjaro in 2013, helping raise $60,000 through the Rotary Club for Polio victims. In addition, he serves on the Board of Directors of Hope Haven and is an alumnus of Leadership Charlotte (Class 33). In that capacity Jerry serves as a member of the Alumni Group’s Education Committee, helping to bring informative programing to the community on topics including healthcare and civil discourse. Jerry holds a BS in Molecular Biology from Clemson University, an MS in Microbiology & Immunology from Virginia Commonwealth University, and an MBA from the Byrd School of Business at Shenandoah University. He is a doctoral candidate in Science & Technology Policy at the George Mason School of Public Policy. Jerry is a Grade 8 level referee with the United States Soccer Federation and officiates youth soccer matches in North and South Carolina and Virginia. He is the father of two teenage daughters.

Joanne Beam is an active volunteer who currently serves on the board of Good Friends (in Charlotte) Board of Trustees of the Charlotte Latin School, and the Executive Committee of the Association of Philanthropic Council. Beam is well connected within civic and University circles. Recently The Mecklenburg Times named Beam one of “The 50 Most Influential Women.” In 2013, she was named one of the Charlotte Business Journals “25 Women in Business.” In 1998 she was named one of the “Forty Leaders Under Forty” in the Piedmont Triad. Beam grew up in Lancaster, Pa., and moved to North Carolina to earn a degree in business from Wake Forest University.

Moira Quinn’s background revolves primarily around media and management. Moira started at WBTV, the CBS affiliate in Charlotte, as a college intern. She became a studio cameraman and was the first woman in Charlotte to work as a full-time TV news photographer. During the ‘80’s Moira co-hosted, produced stories for and served as interim producer on the TV show PM Magazine. She is a graduate of Queens University of Charlotte where she is Trustee Emeritus and on the Board of Advisors for the Knight School of Communication. Moira has also served on the Board of Trustees and the Alumni Association where she was President during the University’s Sesquicentennial. She has two sons and two grandchildren.

What you missed: The Growth of Higher Education in Center City and why UNC Charlotte, Wake Forest and Northeastern chose Uptown Charlotte. The discussion centered around 1) how and why these institutions chose Charlotte, 2) how and/or why they chose new or existing facilities, 3) the type of student that is attracted in an urban setting, and 4) how these students impact Charlotte’s growing population post graduation.

Why: Having campuses in Uptown Charlotte has created a dynamic educational outlet for today’s working professional. Being in the middle of the Charlotte metro area enables institutions of Higher Learning to offer advanced degrees with a high level of convenience for these professionals. They can work and provide the wage to their families and further advance their careers by attaining these advanced degrees. Uptown Charlotte, while initially skeptical of their new neighbors, has embraced the Universities and the students by getting involved in community service programs and working together to keep uptown vibrant and desirable. Jerry Coughter remarked, “we would not be successful if only the school was getting into Charlotte, we also needed Charlotte to get into UNCC.”

Charlotte's Economy and Where We are Going with Johnny Harris

Johnny Harris 
John W. Harris formed The Harris Group in January 1992, and in 1999 formed LincolnHarris, an affiliate company of Lincoln Property Company. Johnny is responsible for development and management of over 20 million square feet of property throughout the Southeast and was formerly President of The Bissell Companies, Inc., a major commercial real estate and investment management company.

Johnny, a lifelong Charlotte resident, has served on numerous boards including Piedmont Natural Gas, USAir, Inc, and the National Collegiate Athletic Foundation (NCAA) and has served on the Airport Advisory Committee, NC Department of Transportation and the Charlotte-Mecklenburg Hospital Authority. He is also a past Chairman of the Charlotte Regional Partnership, UNC-Chapel Hill Board of Trustees, NCAA Final Four Charlotte Organizing Committee, Charlotte Chamber of Commerce and the Charlotte Sports Commission.

Opening Remarks
Johnny opened his remarks to the crowd of over 225 by sharing that there is no better place to be than Charlotte. With unemployment figures down below 5.5%, with more employees at both Bank of America and Wells Fargo than in 2007, with a greater influx of Millennials into the Queen City and with $750 million in active construction projects in one submarket (SouthPark), this is the “beginning of our golden years”.

Protecting Our Airline
Johnny urged the crowd to work to protect Charlotte’s hub status with American/USAir. The fuel tax break that American receives needs to be extended. He shared that while the $6 million tax break sounds large, the economic impact received from that tax break is over $1.6 billion dollars to our region.

These breaks keep Charlotte attractive and provide us the ability to maintain that hub status. Charlotte Douglas has 683 average daily departures, over 40,600,000 passengers in 2014 (2.3% increase over 2013) and nationwide ranked 6^th in movements/operations and 8^th in passengers for 2013…

It is 1978 and We’re Atlanta
Airline deregulation sparked Atlanta’s growth.

Johnny outlined that whether you are pro or anti fracking, you have to admit that due to the lowered fuel costs, we are at the beginning of twenty-five years of great economic development.

The prior six year slow down is now fueling extreme demand, not only in multi-family but also in office. He described Ballantyne (and Smoky Bissell) as one of very few places in the country with significant development over the past six years, but said they eventually are going to run out of land.

SouthPark has $750 million in active construction, with another half-billion coming in the next eighteen months.

What is next? Look between the airport and the river. Johnny cites it as the only place with “big land”….. and “big land brings big users, and that is good”.

Well, Not Really Atlanta
We’re growing and we are the place people want to be. Economic Growth, Employment Growth and Millennial Migration – it is all Charlotte.

What Other Things Should We Pay Attention To?
The Intermodal Facility opened last year within the airport footprint and doubled the capacity of Norfolk Southern's prior uptown facility …. But it is already full.

Talk of a High Speed Train at the State level for a connection between Raleigh, Charlotte and Atlanta …. Possibly a privately funded railway (similar to plans for a line between Orlando and Miami).

Medical Services are now the 3^rd largest sector in the Charlotte region.

Anything to Worry About?
When asked what concerns him, Johnny didn’t have too much to worry about but did mention the need for strong leadership in Charlotte and in North Carolina. He mentioned running out of viable sites for construction as well as the need to make sure that the quality of what is being built remains a priority.

Final Thoughts
Johnny’s final thoughts were that regardless of where in the country someone lives, if they really do their homework, Charlotte is the place they should strive to be. It is about quality of life and with our proximity to the mountains and the ocean, our airport, cost of living, and job growth, the quality of life in Charlotte is pretty good.

He also shared that had he and his five member operations committee at Lincoln Harris been at a CREW luncheon 25 years ago, they would not have fit in without any women in that group; but today, two of the five positions are held by women and he seemed to imply that CREW probably helped that along!

2015 Outlook for Charlotte Metro and the Carolinas with Frank Warren of Kimley-Horn

Frank Warren, CRE, is a Senior Economist with Kimley-Horn and Associates. With over 25 years of real estate market research, appraisal, and development experience, Frank brings a uniquely comprehensive perspective to consulting assignments. Developer and investor clients rely on his insight to determine demand for commercial and residential projects, and to recommend specific concepts to maximize marketability and value. Frank also works on a wide variety of comprehensive planning and economic development assignments for local governments.

Charlotte’s New Normal? How shifting location preferences and infrastructure investments are driving new development patterns. Frank began his presentation by discussing all the changes that have shaped the City of Charlotte since 1964 including four interstate highways, two airport terminals, three UNC-C campuses, three baseball stadiums, three basketball arenas, the return of rail transit, and the dissolution and rebirth of Center City. Recent job growth in the Charlotte MSA (metropolitan statistical area) was heavily focused in Mecklenburg County, further enhancing it as the employment center of the region. Although, suburban job growth, primarily focused in York and Lancaster counties, has been facilitated through affordable land, state incentives, and business-friendly tax rates.

Demographic shifts are impacting location choices that households and employers are making. Nationally, household formation has dropped dramatically from a peak of two million new households per year to a trough of 500,000 during and following the Recession. The region’s renter household growth has been strongly focused in Mecklenburg County, representing not only organic growth but also pent-up renter demand. Millennials, born between 1980 and 2000, will continue to shape real estate. They generally value experiences over possessions, drive less, are always connected, and are increasingly diverse. They also face challenges like student debt, jobs, and incomes.

These employment and demographic shifts have impacted the real estate market throughout the region. Apartment growth has been heavily concentrated in a few submarkets in Mecklenburg County, primarily urban or with access to retail or transit opportunities. Similarly, office and retail vacancy rates and rent growth trends are strongest in urban locations. Development of new office space will likely emerge along the south corridor light rail line in the next five years. Older product in Midtown, Cotswold, Park Road, and Southpark will start to redevelop.

Key Takeaways:

• Divided Economy . Growth is accelerating in states and metropolitan areas with educated workforces and at least 18-hour urban cores; the balance of the country is trying to remain relevant.
• Mixed-Use Success . Demographic patterns, lifestyle preferences, and a focus on sustainability will continue to make mixed-use developments attractive.
• Suburban Redux . With downtown urban areas thriving, suburbs are the next great opportunity.