October 03, 2012
FXM completes market analysis for Pawtucket - Central Falls River Corridor Plan
The Pawtucket Foundation is pleased to publicly release the Pawtucket-Central Falls Riverfront Corridor Market Analysis prepared by FXM Associates with Byrne McKinney Associates.
The Pawtucket Foundation retained FXM Associates to examine potential market support for near-term real estate development within the Pawtucket-Central Falls Riverfront Corridor area. The investigation focused on an assessment of potential market demand for commercial and residential real estate development/ redevelopment within the Riverfront Corridor study area, Blackstone-Seekonk River waterway activities, targeted landside sites, and public sector actions to encourage more private property investment and facilitate redevelopment in the Riverfront Corridor.
“This report gives the community the data to inform actionable steps towards creating and implementing a river corridor redevelopment plan,” said Thomas A. Mann, Jr., executive director of The Pawtucket Foundation. “The future success of this initiative relies on local government’s ability to invest in maintenance and improving physical access to the river…and property owners to market and better utilize their riverfront land."
Symbolically and functionally, the Blackstone River is the most important component of future Riverfront Corridor redevelopment, and accelerated Downtown revitalization in the cities of Pawtucket and Central Falls, Rhode Island.
A future National Historical Park focus on the Blackstone River and Canal system affords Pawtucket and Central Falls unique opportunities to rebuild economic and physical connections with the waterway, the very resource that originally brought prosperity to the region as the birthplace of the American Industrial Revolution.
Among three possible growth scenarios, if Pawtucket achieves the High Range growth potential for commercial space absorption along the river, after three years, the City would realize more than $995,000 per year in additional tax revenues at the current rate of $24.54/$1,000 commercial property valuation, compared to the Low Range estimates, which presume no further public investment or value.
Among key findings, the report shows conceptual development pro forma tests are favorable for potential new construction of residential units at the City-owned 45 Division Street site, and for retail uses at the privately-owned Apex property at 100 Main Street. Earlier this year, City officials, the property owner and The Pawtucket Foundation successfully championed rezoning the Apex site allowing for expanded commercial uses outright as outlined in the market study.
Other notable observations demonstrate the need for a community-wide economic development plan and needs assessment to determine economic impacts, municipal investments and resource allocations.
With limited commercial market demand, FXM asserts that to achieve the highest range of net absorption, the Cities of Central Falls and Pawtucket must pursue aggressive initiatives to improve the River Corridor, including at minimum:
- significantly improved property maintenance and public access to the river;
- significant expansion of river and riverfront investments, promotion and activities, especially water-dependent uses;
- strategic outreach to prospective retail business types identified in the Retail Gap Analysis; and
- completion of the Pawtucket and Central Falls segments of the Bikeway and Greenway.
"The residents and businesses of Pawtucket and Central Falls overall, as well as riverfront corridor property owners and tenants, have a lot to gain by making the river more attractive, accessible and active,” said Frank Mahady, principle economist and planner at FXM Associates. “It won't take an heroic amount of money and effort to make it happen over the next couple of years."
The Pawtucket Foundation Program Director Aaron Hertzberg notes that The Pawtucket Foundation is already assessing models that would allow the private sector to participate in the maintenance of strategic riverfront and gateway sites. “While we have looked at the maintenance capability a business improvement district might provide, we have a higher level of confidence that we can improve the character with simple initiatives like an adopt-a-spot program that might enable businesses to contribute to beautification efforts.”
FXM’s market report details potential net absorption of commercial space based on analyses of historical and projected net absorption as well as employment growth forecasts. While a retail gap analysis shows market potential for some new retail growth (even without new population growth), other projections highlight a conservative estimate for projected annual absorption of housing as well as contemporary flex, office and industrial spaces.
The contents of the FXM Associates study will be delivered to VHB, the consultant selected by the public-private river corridor team led by Pawtucket’s planning department to further the initiative over the next year. The market assessment will provide a basis and framework for the preparation of the River Corridor Development Plan, and is intended to help establish land use and density criteria, forecast housing and commercial demand, and guide potential business recruitment.
Funding Partners for the Riverfront Corridor Redevelopment Initiative include:
- Apex Development Company, LLC
- Blackstone Pawtucket
- Bristol County Savings Bank
- City of Central Falls
- City of Pawtucket
- Collette Vacations
- John H. Chafee Blackstone River Valley National Heritage Corridor Commission
- Ocean State Charities Trust
- Pawtucket Redevelopment Agency
- Rhode Island Foundation
- Statewide Planning Challenge Grant
- Tai-O
- The Pawtucket Foundation
Consultant Studies Completed or in Progress:
- Market Analysis: FXM Associates (Complete)
- Riverfront Commons Zoning Recommendations: Horsley Witten Group (Complete)
- Visitor Center and Roosevelt Ave Design Study: The Pawtucket Foundation with Thurlow Small Architecture (Complete)
- Design and implementation plan: VHB (In Progress)