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Sample Specialty Consulting Projects
Mixed Use Feasibility Study Supporting
Creation of a Tax Increment Reinvestment Zone
Situation
The City of Nassau Bay, Texas was anxious to redevelop an office park, situated across the street from the Johnson Space Center/NASA complex. The City signed a letter of understanding with Griffin Partners, a commercial development firm based in Houston, in which Griffin agreed to develop a substantial mixed use project on the 31.5 acre site which it had purchased, premised on creation of a TIRZ, as well as a Planned Unit Development (PUD) that encompassed the site, and City funding of street improvements and other infrastructure. CDS Market Research was contracted by the City to perform a market feasibility study to determine if the land uses envisioned for the proposed mixed use project were realistic and project likely absorption rates on which the financial forecast of incremental tax revenues could be based.
Approach
The land uses considered by Griffin to be appropriate for the redevelopment site included multi-family apartments, retail, office and a hotel/conference center together with both surface and structured parking. The site plan called for a grand entry and esplanade boulevard leading to the hotel at the back of the complex, flanked by two-story retail and office facilities with the apartment complex situated in a back quarter of the property. CDS performed analyses of historic development patterns, existing multi-family housing and commercial development, recent absorption and projected near to mid-term demand by land use, based on projections of employment and population obtained from the Houston-Galveston Area Council. CDS concluded the assignment by projecting optimum timing of construction and likely absorption rates by land use.
Action to Date
Based on the CDS market study and projected incremental tax revenues for all properties in the proposed zone, the Nassau Bay City Council approved formation of the TIRZ. Subsequently, construction proceeded on the complex called Space Center Plaza which includes 336 apartment units, a 225 room hotel, and over time up to 100,000 SF of retail space and up to 566,000 square feet of office space.
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