02/11/1997 Minutes - Laserfiche WebLink

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and the access would be from Westview, not from Brookpark since the development would not be able to afford to pu.rchase the rights from the limited access highway, so access from Brookpark is not realistic. Any multi-family would generate less tax revenue to the community and school district, but since clvldren would live in the multi-family there would be more service costs. He stated that there is no question that a successful office development would generate more tax revenues, but the office would have to be there to achieve it, and it is not realistic to expect it. In reference to the amount of retail in North Olmsted as compared to the average and to other communities, it is true the North Olmsted has more square footage per resident than other communities; however, retail does not distribute itself evenly based on population or by community. Market needs are dictated by the. shopper and require regional centers. North Olmsted is a regional center and 90% of the commercial tax base comes from retail, and the city must make sure tlus economic base remains competitive. This can be maintained by permitting development that ineets market needs such as Hoine Depot, acknowledging more retail development on suitable sites such as Parcel "E", particularly with the restrictions that have been offered. The city and developers must continue to pursue re-occupancy, retro-fitting, or re- positioning existing space to meet the needs and stated that Biskind Development is constantly looking to re-position any vacancies or assure re-occupancy of vacancies in their existing facilities. He mentioned other centers that are going through re-positioning. Also there is a concem that a large business might go out of business, but Hoixie Depot owns the facility and it is a coiporate asset so there is a long term interest in preserving the investment. The building could be reused as is, or subdivided. He mentioned how retailing has changed in the last 10 or 15 years in various retail categories and noted that adjustments in retailing will continued to be needed. Elgain regarding competitiveness of South Park Mall, the newspapers reported that as much as 15% of North Olmsted market might shift away. That might reduce the traffic, but in the long term implications would be the further vacancies of retail stores that are available which would result in devaluation of property and tax revenues. Developing this parcel as a lower density single family, cluster or condominiums was mentioned previously, but the owners have had no offers for that. He questioned the feasibility of this since, new construction would have to go for a higher selling price as the existing housing in the area and there would be additional development costs to offset the impact from Brookpark Road, and there are alternative residential sites to absorb the housing in this price range. He does not believe that this use is realistic to consider this since the city has accepted, as a public policy, certain development intensity by virtue of the zoning and the comprehensive plan. The multi-family use would be consistent with that policy if the retail is use is not approved. Mr. Corsi introduced Mr. Charles M. Ritley, an independent fee appraiser and listed his credentials. Mr. Ritley explained that he has been involved in appraising inillions of square feet of retail space and office build'mg space, and this property was rezoned for office building in about 1988 or 1989 which was the peak office building market in terms of leasing activity, price levels, lender eagerness to promote this kind of development. At that time it would appear that this parcel could be developed this way. That world fell apart with down sizang, etc. and office buildings values lut bottom in 1993-94. Today, a developer can not afford to put new construction in a secondary location and there are other areas in the metropolitan area and 'm North Olmsted that would support first class office building development. These buyers will not go on BrookpaPk Road across f'rom VVaI-Mart. He stated that with the re-organization of retailing, the customer is the beneficiary of this re-organization since he gets a lower cost product for his dollar. Retail has a better opportunity to reorient itself to a changing environment. In 1990 through 1993, in the Beachwood office place 'market, seventeen out of the approxiYnate 50 build.ings in that corridor were either in foreclosure, had turned deeds over to the banks or lenders were re-structuring loans to try to save it for going under. Beachwood suffered tremendous tax loss as a result. The cost of retrofitting an office building is far more expensive than it is to retrofit a 4