1. Real Estate Development & Reuse
Parkview Randallia Campus
Real Estate Development & Reuse
Indiana Economic Development Course
Horizon Convention Center, Muncie, Indiana

2. Good Morning!
Founded in 2004, Greenstreet Ltd. is an Indianapolis-based real estate development, brokerage and consulting firm which leverages sustainable strategies in the planning, development, marketing and disposition of urban mixed-use assets throughout the United States.
Agenda
About the Audience
Chapter 6
Development Defined
The Basic Real Estate Development Process
Dealing with Environmental Contamination
Public Participation in Development
Roundtable Discussion about Development & Reuse Strategies
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3. Types of Development Build-to-Suit Speculative Development
Greenfield Development
Redevelopment, Reuse, Brownfield Development
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4. Lots of projected growth…
US Growth Projections :
+ 82 million more people (27 million between 2000 and 2010)
+ 55 million new housing units
IN Growth Projections :
+ 718,000 more people (400,000 between 2000 and 2010)
+ 481,000 new housing units
Source: U.S. Census Bureau
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5. Neighborhood Preference Studies
Nelson
RCLCO
NAR
Housing Type
2006
2008
2011
Attached
38%
39%
Detached
62%
61%
The National Association of Realtors completed a major national survey on neighborhood preference in February 2011 (95% confidence level)
Source: Arthur C. Nelson; RCLCO; National Association of Realtors
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6. Neighborhood > House
88% favor neighborhood over home size
59% would buy a smaller house on a smaller lot in exchange for a shorter commute to work
Most important factors in purchasing a home:
privacy from neighbors
short commute to work
high quality public schools
access to sidewalks
places to walk to
Downtown 8%
City-Residential Area
11%
Suburb-Mixed-Use
28%
Suburb-Housing Only
12%
Small Town
18%
Rural Area
22%
Do our land use policies support the fulfillment of nearly half of demand?
Source: National Association of Realtors
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7. Where will growth occur?
US Growth Projections :
+ 82 million more people
+ 55 million new housing units
IN Growth Projections :
+ 718,000 more people
+ 481,000 new housing units
Greenfield
~60-65%
Suburban Densification
~15-20%
Urban Infill
Source: ULI, ‘Developing Greenfields without Sprawl,’ 2004
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8. Trends Redefining the American Dream
% Owner Occupied
1990
2000
2010
2040
Indianapolis MSA
64%
69%
66%
? %
U.S.
65%
60%
Drivers:
Single-person households already outnumber family households
The sub-prime mortgages that enabled growth in ownership between 1990 and 2000 are history
Fannie Mae and Freddie Mac may disappear
20% down payments will become conventional
The next generation of homebuyers is the most educated generation ever, but also the poorest generation since the Great Depression - submerged in debt, no savings or liquid assets
Source: MPO-MIBOR Consumer Preference Survey
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9. Central Indiana Reflects National Trends
Source: MPO-MIBOR Consumer Preference Survey
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10. Massive Supply-Demand Inbalance
Suburban Housing-Only Neighborhood
25% of regional Consumer Preference
88% of the regional Construction Pipeline
Suburban Mixed-Use
Urban Neighborhood
Downtown
75% of regional Consumer Preference
12% of the regional Construction Pipeline
Source: MPO-MIBOR Consumer Preference Survey
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11. Evolution toward Smart
Source: Urban Green
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12. Paying the Way
Smart growth development patterns reduce infrastructure costs from 32% to 47% vs. conventional development patterns.
Sources: U.S. Source: Growing Cooler, Urban Land Institute; Smart Growth & Conventional Suburban Development: Which Costs More? U.S. EPA
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13. Green is the New Granite
Gen Y and the Baby Boomers have a strong preference for green amenities… and they’re the largest generations in history. Serving these 50 million potential homebuyers over the next years will dominate the U.S. economy.
Nationally, consumers are paying premiums of 1.5 to 5% for green development. Surveys are indicating that green is the fastest way to sell a home, and that the neighborhood is more important than the house.
Is green the new granite countertop? (Atlantic Monthly)
Source: The Atlantic Magazine, Joe M. McIlwain

14. Green Building Megatrends
U.S. Trends
Green building growth to rebound
Federal momentum has slowed
LEED-EBOM will gain momentum
Water issues grow in importance
Zero net energy to gain traction
Global Trends
Green building movement will continue to grow
Performance disclosures
Global carbon ratings
Solar power stalls
Building management goes into the Cloud
Source: Hanley-Wood Builder online

15. Real Estate Development Process
Pre-development
Market, financial and political feasibility
Site and engineering analysis
Financing
Contractor negotiations and public approvals
Construction
Marketing
Building occupancy and management
IN Economic Development Conference | © Greenstreet Ltd.

16. Dealing with Environmental Contamination
Indiana defines a brownfield as:
“a parcel of real estate that is abandoned or inactive; or may not be operated at its appropriate use; and on which expansion, redevelopment, or reuse is complicated; because of the presence or potential presence of a hazardous substance, a contaminant, petroleum, or a petroleum product that poses a risk to human health and the environment.”
Source: Indiana Code
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17. Challenges in Brownfield Redevelopment
Environmental Liability Concerns
Developers and property owners want to manage past and future liabilities associated with the property’s environmental history.
Financial Barriers
Private lenders are often reluctant to give loans for potentially impaired lands. In some cases, cleanup costs for a property may ultimately be more than the property’s value.
Cleanup Considerations
A brownfield redevelopment timeline may take longer than typical development due to environmental assessment and cleanup activities.
Reuse Planning
A reuse plan based on community goals or sound economic and environmental information (e.g., market potential) may be lacking.
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18. Typical Brownfield Redevelopment Process
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19. Brownfield Redevelopment Process
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20. Public Sector Partnership in Development
Bond Financing
Loan Guarantees
Revolving Loan Funds
Tax Credits
Tax Increment Financing
Sale-Leasebacks
Tax Abatement
Grants
Regulator
Establishing rules of the game
Facilitator
Helping catalyze development
Initiator
Lead role in some capacity
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21. Brownfield Toolbox Indiana Federal Grants for site assessments
Grants for remediation of petroleum contaminated sites and hazardous substances
Grants to match federal funding
Low interest loans for assessment or remediation activities
Tax credits for voluntary remediation
Federal
Site (property) assessment grants
Site cleanup grants
Grants to establish Revolving Loan Funds
Job training grants
Funds for state brownfield programs
IN Economic Development Conference | © Greenstreet Ltd.

22. Public Sector’s Role in Development
Type I
Type II
Type III
Industrial
Used more in the past; less frequent now
Common
Rare
Office
Commonly used as initial catalyst for development
Used occasionally
Retail
Residential
Hotel
Used to stimulate convention business
Type I - No market demand, requiring subsidy with little potential for value recapture
Type II - Little current market demand, but potential support if built
Type III - Publicly owned/controlled land with market demand and development potential
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23. Homan Square, Chicago, IL
Urban mixed-use redevelopment of former Sears, Roebuck and Co. Headquarters (1907 to 1973)
55 total acres
14 acres of open space (25%)
308 for-sale and rental homes
One million sf of adaptive reuse of commercial and institutional space to serve as “vessels for jobs” and community services
Development: 1994 to 2000
Developed as a venture of The Shaw Company, Sears, Roebuck and Co., and the City of Chicago
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24. Vacancy to Vibrancy U.S. Census 1990 2000 2010 Unemployment 24% 21%
2005
U.S. Census
1990
2000
2010
Unemployment
24%
21%
18%
Single-Parent Households
45%
43%
28%
Families in Poverty
51%
31%
22%
Home Ownership
20%
32%
Sources: U.S Census Bureau for the four census tracts around Homan Square (2715, 2716, 2904, and 2905)
IN Economic Development Conference | © Greenstreet Ltd.

25. Redevelopment Strategy
Jobs: One million sq. ft. of adaptive reuse of commercial and institutional space to serve as “vessels for jobs”
Community Services: Integrate new community center services with existing facilities and programs
Diverse Housing: Mixed-income for-sale and rental homes
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26. Site Plan
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27. Administration Building
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28. Economic Development
Adaptive reuse of commercial buildings for non-profit and business incubator space
Chicago Police Training Facility
Henry Ford Academy: Power House Charter High School
Holy Family Lutheran School
3,000 jobs generated
Spurred development of new grocery anchored community shopping center
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29. Community Center
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30. Community Services Chicago Park District Recreation Center
North Lawndale YMCA
Robert Crown Center for Health Education
Lawndale Christian Health Center
Family Focus of North Lawndale
Neighborhood Technology Resource Center
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31. Mixed-Income Housing
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32. Mixed-Income Housing
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33. New Life for North Lawndale
308 units of mixed-income housing
50% owner-occupied housing from $90,000
50% rental housing from $395 per month
Integrated housing products
Housing for families earning between $15,000 to over $75,000 (1999)
Decreasing subsidy over time – market rate homes sold for $185,000 (1999)
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34. Public – Private Partnership
Private Sector
Sears, Roebuck and Co.
LIHTC Equity Investors
The Shaw Company
Federal/State
HOME
CDBG
City of Chicago
Infrastructure
New Homes for Chicago
Chicago Park District
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35. Homan Square: Lessons Learned
Committed founders and patient capital
Compelling vision to inspire partnerships
Community that is vested in the result
Sustainable organization (strong HOA)
Homes + Jobs + Community Services
Homes vs. “affordable” or “workforce”
Design for safety and security
orientation, fencing, security, police
Creating value by design
open space, green building, architecture
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36. Prairie Crossing, Grayslake, IL
Greenfield, 40 miles northwest of Chicago
Surrounding landowners partnered to buy the site after an intense legal battle that would have allowed 2,500 units
Zoning allowed up to 1,600 units
678 acres total
470 acres Open Space (69%)
395 units (.58 UPA Gross)
9% attached product
73 acres of commercial including TOD with commuter rail to Chicago and O’Hare
Charter School
Community Barn
Community Supported Agriculture
Boarding Stable
10 miles of trails
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37. Conventional vs. Sustainable Development
667 acres
1,600 units
2.4 units per acre
667 acres
395 units
.4 units per acre
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47. Prairie Crossing: Lessons Learned
Price premium above market increased over time:
1995: 15% premium
2000: 33% premium
19% is the home
14% is the community
2005: 100% premium
LID practices yielded savings vs. conventional infrastructure:
Reduced Road Width: $178,000
Curb & Gutter: $339,000
Storm Sewer: $210,000
Sidewalk Alternatives: $648,000
_______________________________
Total Savings $1,375,000
A 2,000 sq. ft. home is:
$250,000 in Grayslake, IL
$500,000 in Prairie Crossing
IN Economic Development Conference | © Greenstreet Ltd.

48. Randallia Campus Creating a Dynamic Life Sciences Campus
Future Use Plan & Economic Development Strategy
Creating a Dynamic Life Sciences Campus
In the Heart of Fort Wayne, Indiana

49. Understanding Parkview’s Projected Services at Randallia
While space programming and configuration activities are on-going, commitments of Parkview Health System to the Randallia Campus include:
At least a 120-Bed Main Hospital Facility with a mix of inpatient acute care, post acute care and rehabilitation services, including skilled nursing facilities
Full Emergency Room Services
Family Birthing Services
Outpatient Services
Physician Practices
Surgery Suites
Parkview Behavioral Health (Will continue to be located on Beacon St.)
These services will remain at the Parkview Randallia Campus after the opening of the Parkview Regional Medical Center in 2012.
Understanding Parkview’s Projected Services at Randallia

50. Parkview owns approximately 65 Acres.
MAIN HOSPITAL
COMPLEX
Various parkview support buildings
IN TOTAL, A Health and medical campus of approximately 150 acres already exists in this location.
Parkview owns approximately 65 Acres.
HOBSON ROAD
CROSSROAD
CHILDREN’S
HOME
ST. ANNE’S
RETIREMENT
COMMUNITY
PARK
CENTER
PARKVIEW
BEHAVIORAL HEALTH
PARKVIEW
CAREW MEDICAL
PARK
VETERANS
ADMINISTRATION
HOSPITAL
Parkview Hospital in the Context of a Neighborhood of Institutions and Organizations

51. WHAT IS OUR NICHE? HEALTH CARE Delivery EDUCATION & RESEARCH continued
WHAT IS OUR NICHE?
Parkview Health believes that the Randallia Campus, in association with neighboring institutions, can become a National Center of Excellence in Senior Care, Rehabilitation and Behavioral Health Services.
A CAMPUS POSITIONING STRATEGY Beyond a
continued
Parkview
Hospital presence…
Senior Care
Behavioral Health
Rehabilitation
Orthopedics &
BioMechanics
Health Technology
Life Sciences
Education & Research
HEALTH CARE Delivery
EDUCATION &
RESEARCH

52. THE FUTURE: A Center of Life Science Activity…
Major Employment in higher paying jobs.
Significant Education and Research Opportunities
Focus on niche Areas and Themes for National Success
Significant land for future Economic Development
An Artist’s Conceptualization of a Year Vision of a Fort Wayne Life Sciences Campus

53. Getting in Alignment with Indiana Economic Development Strategy: An opportunity to tap the momentum and resources committed to Indiana’s Health and Life Science initiatives, such as BioCrossroads and OrthoWorx.
Indiana’s $69 billion health industry, defined as biopharmaceuticals, medical devices and instruments, healthcare delivery, laboratories and payors – accounts for over 20 percent of Indiana’s total state taxes and almost 10 percent of the state’s employment.
Indiana is one of the nation's top four life sciences leaders as defined by number and concentration of life sciences-related jobs

54. Getting in Alignment with Indiana Economic Development Strategy: An opportunity to expand the R&D capacity of Indiana’s Life Science initiatives
54% of total university research in Indiana is in life sciences
As the home to some of the best research institutions in the U.S., Indiana is unearthing innovative research, discovering the healthcare solutions of tomorrow. But, there is opportunity in Northeast Indiana.
“Medical innovation has significant positive outcomes for the health of the nation, the health of the economy, and the health of Americans.”
Battelle Institute 1
2, 3
4, 5, 6 7

55. Indiana Adults with a College Degree:
33.4%
Lumina Foundation Big Goal for 2025
60%
Additional number of degrees needed to meet workforce needs in 2025
877,737
Institutions can address these converging trends, with a more sustainable, cost-effective, public-private partnership model that integrates institutions into communities and leverages economic development strategies.
Increasing Demand for Higher Education A State and National Challenge

56. Getting Started: Creating a Culture of Education and Research
The Life Science Education and Research Consortium of Northeast Indiana
In July 2011, 5 area education and research institutions agreed to form a consortium to create a culture of education and research at the Randallia Campus.
Each institution is collaborating with each other to create dynamic and unique career paths or “ladders” for students – from K-12 through doctoral programs.
The physical presence of the Consortium at the Randallia Campus will give unparalleled access for students, faculty and researchers to not only Parkview Hospital, but the tremendous health care assets of its neighbors, including the VA Hospital.
Near-term activities are anticipated by Fall 2012, with full occupancy possible by 2013.
Getting Started: Creating a Culture of Education and Research

57. Source: Indiana Department of Workforce Development, 2011
High Growth and High Wage Employment: The Randallia Campus is an opportunity to align and support the implementation of local, regional and state economic development initiatives around life sciences.
$33, Median Wage
Source: Indiana Department of Workforce Development, 2011
Reuse of Existing Buildings Provides Vessels for Jobs:
Driving High Growth, High Wage Employment

58. Takeaway Thoughts on Redevelopment
Today, financing is always creative and the capital stack is getting taller
Today, catalytic development is always a public-private partnership
Make infrastructure work harder
Do your own homework; know the market, ask the right questions
Become a student of ‘best-practices’ – financial, regulatory, development
You’ll always get what you always got if you always do what you’ve always done; if necessary, go outside your community to get what you want
One size does not fit all; focus incentives by project to improve the developer’s return and/or reduce their risk
IN Economic Development Conference | © Greenstreet Ltd.

59. Discussion Questions
When it comes to development, what type of community are you (proactive, reactive, supportive, or anti-growth)? What type of community should you be? Is a government's support for growth and development something that should be considered at a regional, rather than a local level?
What are some ways that communities can make their infrastructure work harder, or more efficiently? In an era of limited resources, can long-term benefits outweigh the short-term costs?
What type of development do residents of your community want? What type of housing choices do they have? Do your community's policies and incentives match up with local demand?
Where does your community look for best practices? Within your region, the state, or nationally? What are some ways that you've brought attention to best practices, and how have you educated decision makers and the public?
How does your community handle brownfields? Do you document them, help developers get funding, actively purchase and hold property, incentivize development, or help actively plan the site?
IN Economic Development Conference | January 12, 2012 | © Greenstreet Ltd.

60. Resources Urban Land Institute (Case Studies) : www.uli.org
US EPA :
IN Brownfields :
IN Department of Environmental Management :
New Markets Tax Credits :
Historic Tax Credits :
LIHTC :
CDBG :
HOME :
NSP : hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/
IN Economic Development Conference | © Greenstreet Ltd.