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DEVELOPMENT FEAS I B I L I TY : THE VALUE OF DENS I TY AND LARGE S I TES

MODERATE DENSITY w/ surface parking

HIGH DENSITY w/ garage parking

MAIN STREET

PLAZA SPACE

70’

BUILDING

40’

200’

PARKING GARAGE

LEE STREET

ROANOKE STREET

$6.3 M development value $8.3 M development costs

$18.3 M development value $20.3 M development costs

DRAPER ROAD

75% Value/Cost

90% Value/Cost

Hypothetical Redevelopment Scenario

Development Feasibility is a critical element in shaping the character, quality, and affordability of cities. Feasibility is the degree to which a particular project can be accomplished by a developer, and is impacted by things ranging from density, rents, building costs, lending standards, and zoning. Simply put, where land is expensive, such as in a downtown, small- scale, low density buildings are rarely feasible.

The hypothetical redevelopment of apartments at the two-acre “bookstore site,” at Roanoke and Lee and Main, illustrates this point. At a modest density, 50 units could be built at a cost of $8 million, but the development value is only $6 million, meaning the project is infeasible, with a 25 percent funding gap of $2 million. A higher density development, with more amenities, could be built for $20 million, which still yields a $2 million funding gap, but the percentage of this gap is just 10 percent. This means that the Town could

enter into a partnership with a developer by using tax incentives, and very likely get its money back over time. The less risky, higher density project is made possible by a larger site which yields more site design options and flexibility—in this example, a larger site accommodates a parking garage that supports the higher density. It is for this reason that several larger sites have been identified in this plan for potential development.

 Explore redevelopment of underdeveloped parcels  Identify sites throughout town best suited for student-oriented housing  Explore tools to encourage more full-time, non-student residents  Promote development that respects community preferences and architectural context and provides transition to the scale of existing development STRATEGY 1 OBJECT I VES

66 Chapter 2 - Analysis: A Framework for Downtown