03. Staff Briefing on the Red River Cultural District — original pdf

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Economic and Cultural District Program Services Update Economic Development Department October 28, 2024 Economic and Cultural District Framework Policy What is it? • Council approved via Resolution No. 20240926-014, the adoption of the Economic and Cultural District Framework Policy intended to provide guidance for community and policymakers in the identification, organizing, and resourcing of Economic and Cultural Districts. What are the Values/Guiding Principles? Community Amplification and Stewardship Foster grassroots engagement and organization Preservation and Promotion of Cultural Identity Ensure that cultural assets, traditions, and stories are honored Equitable Access to Resources and Opportunities Implement policies and initiatives that address systemic barriers to access Sustainable Development and Environmental Stewardship Integrate sustainable practices into district planning and operations Economic Clustering Promote collaboration, networking, and shared resources, fostering growth and resilience within the local economy C I T Y O F A U S T I N Economic and Cultural District Framework Policy Enhanced Support and Resources Access to Services: Existing districts will benefit from increased access to specialized services Training and Resources: Improved access to organizational training, legal resources, and strategic planning support. Improved Coordination and Integration Streamlined Processes: Enhance coordination between existing districts and city departments Identity and Branding: Updating or Enhancing their branding and identity through specialized projects. Financial and Operational Assistance Funding Opportunities: Access to equitable funding models, special revenue funds, and tax increment financing Support for Under-Resourced Areas: Help existing districts in underserved areas overcome challenges Potential Challenges Adaptation to New Policies: Need to adapt to new policy requirements and procedures Resource Allocation: Reevaluation of how resources are allocated among existing districts. C I T Y O F A U S T I N Place-Based Enhancement Program What is it? Council approved via Resolution No. 20240926-012, a new program to encourage affordable commercial space for creative sector, small local, community-serving projects, and needed infrastructure in underserved area. What is the incentive based on? New investment in real estate in priority areas for the City that provides major community benefits Preservation of existing venues, creative spaces, and legacy businesses threatened by high real estate costs (rent, taxes, building improvements) What community benefits are prioritized? The main community benefit for these projects will be providing affordable commercial space or supporting/retaining new or existing creative spaces, legacy businesses, and community-serving initiatives Additional community benefits will be tied to deeper affordability, serving many organizations, etc. • • • • • Community Benefit Targets Music Venues and Creative Spaces Small, Local Businesses, Nonprofits, and Co-ops Community Development Projects - Specific, high impact projects to benefit underserved community or fill an industry ecosystem “gap”. C I T Y O F A U S T I N Place-Based Enhancement Program Categories Program Proposal Category I - Affordable Space: Category II – Community Impact: Tax reimbursements on new construction to developers of mixed-use and commercial building projects to include affordable commercial leases for arts and music venues and establishments, small local businesses, and community development projects. Tax reimbursements on new construction that support the development of stand-alone high-impact community development or improvement projects including arts and music complexes, grocery stores in food deserts, childcare facilities, and industry hubs and incubators. Category III – Cultural Preservation: Tax reimbursements and potentially other programs to support retention and improvement of existing music venues, creative spaces, and legacy businesses, nonprofits, and co-ops. Category IV – Transformational Infrastructure: Flexible support for the provision of infrastructure elements, including transportation solutions, sustainable development, and utilities, that furthers the transformational delivery of a City-led redevelopment initiative tied to Council resolution or Council- adopted plan. C I T Y O F A U S T I N Creative District Combining District What is it? • Council approved via Ordinance No. 20241010-034, a create a new zoning district for a density bonus program focused on preserving and creating creative spaces and performance venues What factors were the Creative District Combining District based on? • Creative District Combining district will be driven by creative space stakeholders working with property owners through a process reviewed by Planning, Housing, and Economic Development Departments • Districts will be in majority commercial areas with a minimum size of three (3) acres • Districts will require a minimum of 25% of sites to be contributing, with principal creative space uses • Applications will require prior coordination and organizing among stakeholders – the Creative Space Combining District is a tool for creative space districts and organizations, not imposed on a neighborhood "top-down" • Establishment will proceed through case-by-case rezonings with opportunities for community engagement and feedback C I T Y O F A U S T I N Creative District Combining District Tools District and Gatekeeper Requirements Creative Space Development Bonus Ground Floor Creative Space: At least 30 % of Building Frontage; At least 25% of ground floor leasable area Creative Space Preservation and Relocation Benefits: Development Bonuses: 30 feet additional height from the base zone up to a maximum of 90 ft • Must comply with protections consistent with Existing • Waive minimum site area and maximum FAR Non-Residential Space provisions of 4-18-31 requirements • • • • Applies to Creative Spaces in operation for 12 months or longer Requirements to provide notice and relocation benefits equivalent to six months of area commercial rent Redevelop the site to replace all existing non-residential spaces with non-residential spaces of comparable size Grant a creative space operator operating for at least 12 months the option to lease an affordable creative space of comparable size following the completion of redevelopment Compatibility criteria modeled on DB90 Affordable Space Requirements: 50% of retail commercial real estate market rate; or Stabilized lease to revenue ratio based on industry average 5% annual rent escalation cap • Minimum 10-year affordability period (consistent with other non-residential compliance terms) Fee-in-Lieu (FIL) Option • • • • • C I T Y O F A U S T I N Red River Cultural District Context Place-Based Enhancement Program Economic and Cultural District Framework Provides district expanded access to available tools and supports Provides oversight to Red River Special Revenue Fund (Cultural District Service Agreements) Provides additional financial incentives to developers to integrate new or existing creative space in developments Provides direct financial assistance to Cultural Preservation targets (Category 3) Creative District Combining District Constraints due to Downtown Density Bonus and Capital View Corridors Staff recommendation to creative new Downtown Density Bonus subdistrict for RRCD C I T Y O F A U S T I N Questions? Economic Development Department October 28, 2024