Showing posts with label Laveen Demographics. Show all posts
Showing posts with label Laveen Demographics. Show all posts

Sunday, December 1, 2013

Laveen 2.1, Part I: Density


I wrote a post a few weeks ago that I knew would be contentious, but did not anticipate the level of divisiveness that it fueled. It was titled "Laveen's Delicate State of Housing, Density, and Growth". What's so delicate, you might ask? Well, aside from the obvious point that we are still in the midst of the housing recovery (and it has slowed drastically in recent months), there are many issues in which I see Laveen precariously divided and without a properly up-to-date strategy going forward.

This division became clearer in watching the videos from the October 30th city council meeting (here and here), at which many Laveen residents spoke both in favor of and against Butler Housing's plan for a slightly denser housing development at 43rd and Baseline (and yes that's me, very dressed down for a formal meeting, but it was a rather stressful day of going back and forth from the hospital and other commitments). So let's look at some of these issues as discussed and/or alluded to in the last few months and explore how they might hint at a shift not only from Laveen 1.0 (low-density, agricultural) to Laveen 2.0 (more suburban, with mostly low- to medium-density tract housing and neighborhood retail), but now to Laveen 2.1, which I think is a fitting name for the revised plan that we should envision after having experienced a full cycle in the housing market over the last decade.

This will be a brief series, starting with density and then exploring traffic, real estate values, and Laveen's overall "feel" -- all of which are recurring topics of discussion both here and in general. So here goes:

Density

I get it, some folks don't like density. I once was on your side -- remember, I supported the legal battle against Berkana. I also fought the apartments planned for 35th Ave. and Southern. The memory of these past battles made me want to look back and reflect on what has changed since then, either about Laveen or my perspective. Here's a blog post that I wrote five years ago about the fight against apartments near Wal-Mart, which I'm glad I found. To this day I am concerned about the quality of development that we will see on that site if it ever gets developed. The high density only helps to facilitate and contribute to low-quality development at such a location in my opinion (although I suppose there's a chance that it could become affordable senior housing, which is pretty inoffensive and a popular, much needed multifamily product at present, as discussed in my last post). This is a separate issue from the site at 43rd and Baseline, largely due to the difference in surrounding amenities.

As was discussed quite vehemently by those opposed to the marijuana dispensary approved for 35th and Southern, Wal-Mart has brought something of a "bad element" to the community and we should be concerned about exacerbating this problem. Since then, the much celebrated C-A-L Ranch Store and others have decided to locate at the same intersection, which I see as positive for the area. I still, however, scratch my head in wonderment about how and why we pushed density toward that intersection. Without digressing too much on this particular example, let's bring it back around by saying that it's now there and it has most certainly changed things. I see the increased traffic to the area as a positive in the overall goal of crowding out the bad with the good -- essentially my overarching theory for promoting positive developments, which once again reflects MLK's famous quote:
Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.
This brings me back to the overall tone of our discussion on density. Not only has my perspective on appropriate placement and levels of density evolved; not only has the execution of Laveen's overall plan evolved; but there was something else that made me want to jump into the fray on this issue. It was that I picked up on a darker, more insidious element to the anti-density argument. The Laveen faction that most opposed the density on this site seemed to most prominently feature the voices of those who bought larger homes on larger lots in newer subdivisions. These homes are now, for all intents and purposes, regarded as "low density" (although many folks who live on Laveen's rare remaining acreage in the area might call it something more of a "compromise"). In their arguments against density, I detected this precariously qualified notion that they don't hate all density, but they certainly hate it to south of Baseline if a project wasn't previously zoned for higher density. This realization made me question what was so inherently bad about density -- particularly in this location, near where I once bought my own home on a 5,500 square foot lot. Were they blaming homebuyers like me for Laveen's growth-related challenges, while escaping blame themselves? I cannot find a justification for this line of reasoning in the city's most recent annual heat maps of criminal activity, nor could I find justification in analyzing rental rates in newer subdivisions and I made this case in my previous blog post. Therefore, I could not bring myself to oppose the density on these bases or any others.

Urban Village of Laveen

This discussion is incomplete without a reexamination of the overarching paradigm of the Urban Village concept adopted by Phoenix during the heyday of the New Urbanism movement. So too must we reexamine our naively wide-eyed vision for New Urbanism, as well as the specific implementation we envisioned, way back during Laveen 2.0's formative years.... like this blog post that I wrote in 2009, which now seems like an eternity ago. Granted, the housing market and the stock market had already crashed by then, but I was still optimistic about the framework we had created in Laveen and other such enclaves of newly planned growth. Re-reading that post was fascinating to me, and I feel that I owe my audience a little insight into my perspective. Here are some places that I'd visited and studied in recent years prior, as at least somewhat analogous templates (even if wildly inappropriate as direct analogs) for our visions of planned growth:
There were many more, too numerous to list, as well as the trend toward "Traditional Neighborhood Development" that took root in these places and others -- especially suburban growth areas that feature quaint walkable town centers (or even neighborhoods that offer a neat mix of uses). For a great regional example of a truly traditional neighborhood, I'd offer downtown Prescott, AZ, which is often held up as exemplary urban design. However, I can't help but note that downtown Prescott developed largely organically, on its own, in a very different time before the days of zoning and it started with density at the town center (newer growth in Prescott is an abomination to the city's original charm, IMO). Conversely, all of those above named places feature some sort of justifiably powerful centralized planning control (not to mention a great deal of economic resources), which allowed the artificial co-development of high density and low density for their own manifest destinies.

Guess what Laveen lacks: centralized control and clarity of vision. Not only must Laveen struggle with the modern execution of Phoenix's urban village concept, but we tend to erode the legitimacy of Laveen 2.0 with each inappropriate compromise that we allow and each smart compromise that we block (like our Wal-Mart apartments versus smarter SFR layouts near quality amenities). In every such controversy over compromise, we find this vocal minority talking about the prescribed density that we can live with -- density at the future village core, to be located between Baseline and Dobbins along 59th Ave. (see 2002 general plan here). Remember that this is the same density that was shoved down Laveen 1.0's throat a decade before most of our development started.

I'll go into Laveen's overall "feel" in another post, but end this one on a note that the above argument is misguided, possibly even spurious, based in part on our perception of what Laveen is and can be. The anti-density crowd holds onto its false belief that Laveen 2.0 remains "rural", while also rejecting the apparent truth that people tend to move to Laveen seeking housing value. To take it a step further, one of the parties fighting new density in Laveen cited a bit of smart-sounding research about current trends toward higher density mixed-use development (see here, here, and here), but falsely rejected that it matters to Laveen. Note that millenials and aging baby boomers are largely credited with leading these shifts away from the typically suburban toward more urban neighborhoods. When I ran an analysis of Laveen's demographics and community "tapestry" on esri.com, I confirmed that our population has experienced a sea change from "Green Acres" (Laveen 1.0) to "Up and Coming Families" (Laveen 2.0), with additional changes anticipated for the years since the 2010 census information was cited. Laveen does, after all, offer the closest swath of new housing to downtown and the airport, which differentiates the area from other such suburban locales in our metro housing market.

Moving forward, I find it increasingly difficult to toe the line on our expectations for a glorious village center that only makes sense once our embattled Loop 202 South Mountain Freeway gets formal approval. If we seek to preserve that plan, then I propose that we hold firmly against low-density suburban development in the target area, which hasn't been an issue (yet). But to oppose good density elsewhere looks foolish and backwards, especially when Laveen 2.0 is but one interpretation of an ideal balance between high and low density, and it's long overdue for an update. We can and should do better than our already corrupted Laveen 2.0 plan as we move forward, and one such way that we can do that is to squeeze increased density and positive flow closer to fun open spaces as a means to amplify that very benefit that we all agree is most critical to Laveen -- open space. Here's a wonderful article that might just blow your mind if you opposed the project at 43rd and Baseline: "Using urban density to support parks, and vice versa".

Saturday, November 16, 2013

Senior Housing in Laveen

Firstly, we need more senior housing in the 85339. This thought occurred to me as I drove down Baseline about a week ago and saw a couple of elderly folks on their electric scooters headed to the park and ride facility at 27th Avenue. Not only was I surprised to see people using that facility, I was reminded as well that the major influx of new Laveen residents tends to be young families, so we may have to remind ourselves every once in a while to offer resources as well for our elders. Then I started doing the calculations in my head and realized that the closest senior housing facilities that I know are:

Amber Pointe (independent housing on 7th Ave. and Broadway)
Maravilla Care Center (nursing care on 7th St. and South Mountain)
Life Care Center at South Mountain (assisted living near 7th St. and Baseline)

There are a few more home-based facilities scattered around the area, mostly toward the east of Laveen (as are those three above) and some places downtown. There is a plan to bring senior/assisted living to the NWC of 51st Ave. and Baseline (you know, supposedly "farm" land, where crops all too often go to die so that the owner can keep a low tax basis on vacant land -- no offense, but that's how it appears). I would strongly support this property owner's efforts if it means bringing more activity and resources to this intersection soon. That said, I remain skeptical yet hopeful after having watched this site for the last eight-plus years sitting in waiting for a developer. Now that they are working on entitlements with the city, however, there must be hope after all.

2010 census data tells us the following about the area:

85339
Total Population: 35,586
30-54 Population: 13,020 (36.6%)
55+ Population: 4,300 (12%)

85041
Total Population: 54,947
30-54 Population: 18,046 (32.9%)
55+ Population: 7,556 (13.8%)

That's a total of 90,533 people in these two ZIP codes (for comparison's sake, the city of Goodyear has a total population of 65,275). Of those 90,000 residents, 11,856 (13%) are 55+ and another 31,066 (34%) are in the 30-54 age group. This means that there's a total market of almost 12,000 residents who may soon be looking at retirement options that might include senior housing, plus another  31,000 who may need nearby senior housing options for their parents in the next two decades (or themselves later).

I don't work in this industry, nor have I ever, but I did once work with some smart folks who develop senior housing throughout the country. From what I understood of their business model, this might just be an opportunity worth pursuing further based solely on the numbers. I was actually rather fascinated by their development strategy, as it aligned closely with the interests that I represented at the time (hence why we were talking) and, if done right, follows demand like clockwork -- for a lucrative business model that also serves as a valuable amenity to the communities where they build.

What about Downtown? It's Not Too Far....

Imagine my surprise when I learned from Wayne Rainey, owner of monOrchid (where I was married, btw), that he had teamed up with the already familiar Reid Butler to build an interesting mixed-use development on the city-owned site adjacent to monOrchid, but that another project appeared to be winning: a low-income senior housing project. This is in the heart of Roosevelt Row, downtown, where I'd least expect to see senior housing as a preferred development type. So of course it piqued my curiosity, and it turns out that I'm not the only one. The AZ Republic editorial board chimed in with its column, Let’s get this downtown Phoenix project right; and the Downtown Devil reported on the story as well: ECCA meeting focuses on proposals for historic Knipe House and nearby properties.

Mr. Rainey has gone on to build support against the senior housing project, by starting a change.org petition and rallying his contacts throughout the city. I'm with him on this one and suggest that others should be as well. Aside from the fact that I'd like to see that senior housing spread out a little toward our corner of the city, here's my reasoning that I offered for supporting Rainey and Butler (and I think this is only the second time that I've actively supported Butler on something, which is a strange coincidence given that the last time was just a few weeks ago):

First, a few assumptions about senior housing:

1) Senior housing and assisted living facilities are still in demand as the baby boomer generation continues shifting toward retirement.

2) Affordable senior housing is particularly needed.

3) Ask any major senior housing developer about their strategy, and they will tell you that they generally prefer locations surrounded by and/or accessible to large residential neighborhoods that are not yet adequately served, as most people looking at such an option seek as minimal a life change as possible and want to remain near their families/friends. 

4) Affordable senior housing is easier to finance than other product types, thanks often in part to tax incentives, but also largely due to special HUD financing.

Now a few assumptions about downtown Phoenix: 

1) Part of what everyone wants (or says they want) is residential diversity downtown. 

2) Downtown Phoenix is one of the least densely populated areas of our entire metro housing market.

3) Downtown Phoenix needs more full-time residents in order to continue attracting residential amenities to the area, thus improving quality of life for current/future residents and fortifying the regional appeal for the area by breathing more life into it.

4) A vast majority of people who work and/or attend school downtown commute to the area.

And now for the basic analysis:

When exploring from a blank slate what is most needed downtown, I would recommend looking into current ratios of senior housing (particularly affordable senior housing) downtown as compared to other parts of Phoenix. Sure it will likely run a little bit higher, but this seems like a valid test of need for this targeted development type in this location and my guess is that the need will not be demonstrated by a comparative analysis.

Next, given that the city owns this site and is essentially serving as the invisible hand of the market, I'd ask what the market will most likely produce without the help of the city. My guess is that affordable senior and student housing will win this battle, thanks largely to the already available special HUD financing and back-end investment demand for these product types.

And finally, what segment remains under-served in the subject area? Sure there are the artists, but I'd also suggest that there's a sizable enough segment of the downtown workforce population that would prefer to live downtown if they had better options. What about them? Isn't it in the city's best economic interest to nudge this segment along every once in a while if it means increased competitiveness for attraction of high-wage employers? As a side benefit, it would also help reduce traffic/commuting costs elsewhere in the city.

Most of these questions/suggestions could be much better supported with data that should be gathered and analyzed, and I simply don't have the time right now. But my gut tells me that we don't need the affordable senior housing on this site and I don't think that's an unkind sentiment at all. I just don't see how the city as a whole or this neighborhood in particular benefit by concentrating so much senior housing in this particular area.



Sunday, September 1, 2013

Retail Update September 1, 2013

I'm all about taking short cuts..... So while I would love to elaborate on all the exciting progress we've made in recent retail growth, I'll instead provide the following email I sent to an area representative for Harbor Freight Tools, as inspired by Mike Hernandez in our Laveen FB group. The only major development that comes to mind that I missed in this email is the opening of Sinbad's Grocery, just outside Laveen in SoMo (27th Ave. & Baseline) -- go check it out on a weekend, when they have huge spreads of prepared Middle Eastern food available for take-out or (standing) dine-in. We also just got Chipotle and Barro's Pizza, both near Fry's at 51st Ave. & Baseline, so we are finally getting more dining options!

Without further ado, here goes (please let me know what I might have missed):

To: Chris Malherbe
cmalherbe@ngkf.com
(405) 306-7774
http://www.harborfreight.com/real-estate.html

As a former regional director for Choice Hotels International, I know how challenging it can be to manage a large territory and constantly keep up with every corner of every market (mine was essentially "the West" at one point). Therefore, I hope you are as receptive to local insight as I always was in that role, especially if it makes your job a little easier in identifying ideal submarkets with solid locations available. So I have one for you: 

Laveen Village Center, NWC of 35th Ave. & Baseline
Managed by Hinkson Company, LLC
Property Flier: http://hinksoncompany.com/13_0506_laveen_vlg_marketing.pdf
Space available: 15,600 sq ft in-line with monument signage in a newer shopping center

Other major tenants: Big 5, 99 Cents Only, Big Lots, Circle K, Wendy's (just announced), and several local businesses

Key demographics (from property flier): 
1 Mile: 10,685 population, $68,915 avg income
3 Mile: 60,508 population, $72,206 avg income
5 Mile: 146,657 population, $61,764 avg income

Traffic (from property flier):
Baseline Road  29,275 CPD
35th Avenue 17,813 CPD

More about the area:
  • Proven demand: Home Depot located 2 miles west at 51st Ave. & Baseline, Lowe's located 2 miles east at 19th Ave. & Baseline.
  • 1, 3, 5-mile radii can be misleading; as you can see from the street/freeway configuration and the area's population growth, There is a rather large residential population located to the south and west (85339 ZIP) that travels Baseline Rd. for their daily commute, many of whom turn north on 35th Avenue or 19th Avenue, toward downtown and the large government complex located directly north-northeast of this site.
  • Large population to the east in ZIPs 85041, 85042, 85040 may also be drawn to this location.
  • Large industrial area to the north and interspersed ranch/agricultural properties indicates significant likelihood that lifestyle/psychographic analysis will yield a sizable DIY market, where Harbor Freight will likely thrive.
  • C-A-L Ranch is currently opening a location 1 mile north (35th Ave. and Southern) to reach a similar demographic. 
  • This site has direct visibility to the large municipal area directly across the street: park, library, golf course, and school(s); this means great weekday and weekend traffic/visibility

Please let me know if you have any additional questions about the area. I am passionate about this part of town and involved with a great group of like-minded volunteers who come from professional backgrounds and are able to help provide more contextual area information, (besides that readily available to you through ESRI and CoStar reports). This could be helpful if your client, Harbor Freight, decides to pursue this option further. I think it's a slam dunk for you, and this shopping center's owner/manager are working to get deals done quickly, so please do look into it as soon as possible. 

Best regards,

Patrick T. Brennan
@Home Properties and Management
http://www.patrickbrennan.us
Direct | 480.559.9429
Fax | 602.467.3165