Urban Renewal and Economic Development Committee — Charleston, WV
Date: 2020-09-23
Time: 12:00

CITY OF CHARLESTON
 West Virginia
 Council Member – 13th WARD

Brent Burton Urban Renewal and Economic Development, Chair
340 MacCorkle Ave SE Finance Committee
Charleston, WV 25314 Parking Committee
Telephone: 304.541‐0991
E‐mail: brent.burton@cityofcharleston.org




TO: Urban Renewal and Economic Development Committee
FROM: Brent Burton, Chair
RE: Committee Meeting

 UNTIL FURTER NOTICE, MEETINGS WILL BE MADE AVAILABLE TO THE PUBLIC VIA ZOOM

There will be a Committee meeting of Urban Renewal and Economic Development on September 23, 2020
at 12:00 PM, in the A/V Conference Room, City Hall, Room 308.

*Join via internet:
https://us02web.zoom.us/j/85075946174?pwd=OUhiUWwwTURYNVhLa2VyKzROUklWZz09
Passcode: 873089
*Join via Telephone: (312) 626‐6799 or (929) 436‐2866
Webinar ID: 850 7594 6174
*Join via CivicClerk: https://charlestonwv.civicclerk.com

 Agenda
Approval of Previous Minutes

 1. 2‐6‐2020

Presentation on the 2020 Downtown Charleston Housing Study ‐ Charleston Area Alliance(Susie Salisbury) &
Bowen National Research(Patrick Bowen)

 1. Housing Needs Snapshot

Administration Updates




BB/ns



 City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330
 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax

CITY OF CHARLESTON
 West Virginia
 Council Member – 13th WARD

Brent Burton Urban Renewal and Economic Development, Chair
340 MacCorkle Ave SE Finance Committee
Charleston, WV 25314 Parking Committee
Telephone: 304.541‐0991
E‐mail: brent.burton@cityofcharleston.org




TO: Urban Renewal and Economic Development Committee
FROM: Brent Burton, Chair
RE: Committee Meeting

 UNTIL FURTER NOTICE, MEETINGS WILL BE MADE AVAILABLE TO THE PUBLIC VIA ZOOM

There will be a Committee meeting of Urban Renewal and Economic Development on September 23, 2020
at 12:00 PM, in the A/V Conference Room, City Hall, Room 308.

*Join via internet:
https://us02web.zoom.us/j/85075946174?pwd=OUhiUWwwTURYNVhLa2VyKzROUklWZz09
Passcode: 873089
*Join via Telephone: (312) 626‐6799 or (929) 436‐2866
Webinar ID: 850 7594 6174
*Join via CivicClerk: https://charlestonwv.civicclerk.com

 Agenda
Approval of Previous Minutes

 1. 2‐6‐2020

Presentation on the 2020 Downtown Charleston Housing Study ‐ Charleston Area Alliance(Susie Salisbury) &
Bowen National Research(Patrick Bowen)

 1. Housing Needs Snapshot

Administration Updates




BB/ns



 City Council | 501 Virginia Street, East | Post Office Box 2749 | Charleston, West Virginia 25330
 www.charlestonwv.gov | 304.348.8179 | 304.348.8038 fax

 Page | 1 of
 MINUTES
 URBAN RENEWAL AND ECONOMIC DEVELOPMENT COMMITTEE MEETING

 5:30 P. M., FEBRUARY 6, 2020

 A/V CONFERENCE ROOM

Brent Burton, Chair, called the meeting of the Charleston City Council Committee on
Urban Renewal and Economic Development to order at 5:30 p.m., FEBRUARY 6, 2020,
in the Audio/Visual Room in City Hall.

Committee Members Present:
Brent Burton, Chair
Tiffany Wesley-Plear, Vice Chair (via phone)
Ben Adams
Naomi Bays
Jennifer Pharr
Bobby Reishman




 1. Approval of Previous Minutes – Councilmember Bays moved to approve the
minutes of the previous meeting on 1-23-2020. Councilmember Pharr seconded. There
was no objection and the minutes were approved.




 Page | 2 of
 2. Discussion concerning downtown revitalization, housing and the new projects
 from the water crisis settlement funds.

Councilmember Burton asked Mayor Goodwin and Chief of Staff, Matt Sutton, to give
the Committee an update. Mayor Goodwin asked if members had questions regarding
the outline for the Community Participation Fund that they had been given. She remined
them that the funds have to go through a 501(c)(3). Councilmember Bays confirmed
that they could buy equipment for a Community Center.

Mayor Goodwin added that the enhancements have been made to the Coliseum and
Convention Center, such as the basketball/volleyball courts. She stressed that there
had been no plan on how the newly renovated Convention Center was to be utilized to
its maximum potential. The funds will be used to attract people/groups to the facilities.

Mayor Goodwin also stated that some of the money in the Business Economic Impact
Fund will go to façade grants. Additionally, it will also go to assist businesses in creating
business plans. The Administration is currently working to coordinate with the local
Universities and Business Schools for an unspecified entrepreneurial project.
Councilmember Bays confirmed that the façade grants will be based on similar CURA
grants but for the entire City.

Mayor Goodwin stated that a long-term but very important project will be advertising and
promoting the City. The Administration wants to develop strong, effective marketing
strategies. The Mayor added that last May, the Convention Center and CVB had a
meeting to create a strategy to work together to promote the facility. Anything spent for
advertising and marketing will need to have quantitative and qualitative data attached to
it, such as focus groups and surveys. It will be a national approach. As an example,
Mayor Goodwin cited the colors assigned to the different neighborhoods; it was a good
idea, but was executed inconsistently. She stressed that this kind of re-branding will
take a lot of time and funds to do correctly and effectively. Councilmember Wesley-
Plear stated that a friend from out of town was confused about the different colors, and
the reasons behind them weren’t obvious or meaningful. Councilmember Adams asked
what the process and time frame would look like. The Mayor answered that research
would come first, involving outside companies and focus groups, and future decisions
would be based on the results.

Councilmember Pharr asked if there was any sort of requirement that the various
groups involved (CVB, Charleston Main Streets, CAA, etc.) would have to effectively
communicate with each other and the Administration if the City had provided funds to
them. Mayor Goodwin answered that there was. Mayor Goodwin stated that she
believed that if the City went to those various groups with any research data that had
been gathered, it would be easier to get them on board. Sutton stated that, in his
experience, the most successful City re-brandings are those that listened to the outside
consultants. Councilmember Pharr pointed out that the City does not have any billboard
in any direction that describes what they can do in Charleston. The Committee
discussed that the blue travel signs are not allowed by the DOH, but they could get




 Page | 3 of
creative with billboards on strategically placed buildings along the interstate. Mayor
Goodwin stated that the City needs to think about what it can invest in that will attract
massive amounts of people, such as sports tourism.

Mayor Goodwin updated the Committee on the installation of the kayak dock by saying
that the location may need to be changed to the other side. The goal is to get it
completed by Spring. The Administration is also working on relaunching the Charleston
Summer Youth Professional and Career Program for 14-17-year-old kids to get
experience in a career field. Councilmember Wesley-Plear suggested reaching out to
West Virginia State.

Chief of Staff, Matt Sutton, stated that over the past few weeks, there had been a very
large amount of business owners seeking medical marijuana permits. While the City
does not reap the tax benefits of the dispensaries, they do provide 8-16 jobs at each
location, with growth facilities providing more. Councilmember Adams asked if there
was going to be a cap on locations per region. Sutton answered he did not think that will
be the case as there are only a few cities in the state in which the businesses seem
interested. Sutton added that the businesses seems most interested in Kanawha City,
Downtown and the West Side.

Councilmember Pharr suggested that the Committee invite the leadership of the CVB,
Charleston Main Streets, CAA, etc. to speak about updates and what the groups’
commitment will be to work together.

Councilmember Pharr asked for an update on the search for a new Director for the
Convention Center. Sutton answered that the consultants met with the stakeholders and
will begin to write the job description based on those needs. The Convention Center
Board is also looking into hiring an outside marketing and booking firm.




Councilmember Reishman motioned to adjourn the meeting. Councilmember Adams
seconded.

Meeting adjourned.




 Page | 4 of
Downtown Charleston, WV
 Market-Rate Housing
 Needs Snapshot
 Snapshot of Market-Rate Housing Needs Assessment
 by Bowen National Research




 Susie Salisbury | VP, Community Development
 Charleston Area Alliance
 304-340-4253
 ssalisbury@charlestonarealliance.org

 Page | 5 of
 Snapshot
 Summary
 ABOUT THE SNAPSHOT
 The Charleston Area Alliance, with support
 from the Greater Kanawha Valley
 Foundation and United Bank, hired Bowen
 National Research to conduct a housing
 study on downtown Charleston, West
 Virginia to:
 Provide an update on the 2015
 downtown Charleston housing study.
 Obtain updated data and information on
 market-rate housing needs.
 Serve as a catalyst for property
DOWNTOWN STUDY AREA (DSA) development in Charleston and the
 Kanawha Valley.

 SCOPE OF WORK
 Evaluated demographics and
 analyzed economic conditions.
 Inventoried existing housing stock
 rents/costs and availability for
 market-rate housing.
 Evaluated livability factors.
 Gathered community input.
 Provided housing gap estimates.

 CAPITOL STREET, CHARLESTON, WV

 CharlestonAreaAlliance.org
 Page | 6 of
 The
 Snapshot
HOUSING GAP ESTIMATES
The study estimated there are 424 units needed in downtown Charleston
within the next five years.
  322 rental units needed in 102 for-sale units needed
 downtown Charleston. in downtown Charleston.
Renter household growth in downtown Charleston is projected to occur among
those earning $60,000+, indicating a need for higher priced housing products..
DEVELOPMENT OPPORTUNITIES
There are desirable buildings and parcels poised for potential
development.
Much of the study area properties are eligible for Federal and State Historic
Tax Credits due to their location within a National Register Historic District.
Downtown Charleston has three Census Tracts recently designated
as Qualified Opportunity Zones (QOZ). QOZs spur investment in
communities through tax benefits.
DEMOGRAPHICS & ECONOMIC CONDITIONS Focus on
Charleston, West Virginia should explore
 LIVEABILITY,
strategies that offer a diversified housing which creates
stock to attract and retain millennials, ages housing options
25-45, and accommodate a senior for all ages,
population, ages 65+. incomes and
CharlestonAreaAlliance.org
 abilities.
 Page | 7 of
DOWNTOWN'S SUCCESS
atlas lofts
The Atlas Building project is a testimony to the
potential for mixed-use rental space in
downtown Charleston. The lofts feature 52
premier studios, and 1BR and 2BR apartments
with ground floor commercial space. Pre-leasing
began in August 2020 and within two weeks, the
property manager saw a pre-lease rate of 44%,
well above the national average of 30%.
The Atlas Building's success is not included in the ATLAS BUILDING, CHARLESTON, WV
Bowen report due to the project being under
construction.
 parkview lofts
 Parkview Lofts is a success story for
 condominium development in
 Charleston, WV. Based on information
 from the local Tax Assessor, most of the
 units sold between $200,000-$349,000,
 with the majority at or above $270,000.
 These price points make for an average
 price per-square-foot of $203.
PARKVIEW LOFTS, CHARLESTON, WV



 Most of the available downtown condominium products are
 priced above $200,000, with average price per-square-feet
 between $136-$258. These figures, as well as the Parkview
 Lofts project, are desirable illustrations of pricing potential
 for new downtown condominium projects.
 CharlestonAreaAlliance.org
 Page | 8 of
 MARKET-RATE HOUSING INVENTORY

 High occupancy rates reveal few choices for prospective downtown
 renters. Healthy market rates fall between 94-96%.
 100 100




 96.1% 99.3% 96.6%
 75 75




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 50 50



 25
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 Downtown CWV Remainder of CWV Kanawha Co. G ov er
 Vi llage *
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The significant shortage of available units The eight sampled market-rate housing
outside of downtown Charleston adds to projects have a total of 1,410 units and
the rental demand. a combined occupancy rate of 95.3%,
Downtown rents among the most indicating a good level of demand for
common unit types are generally higher, higher end market-rate rentals.
which indicates rent premiums for
downtown development.



 Downtown CWV The market-rate housing inventory
 data and rent per-square-foot
 provides a baseline for establishing
1BR $1.46 .yduts newoB 0202 rents and features for future,
 ni dehcraeser stcejorp comparable projects.
2BR $1.25 detelpmoc no desab
 ,tooF-erauqS-reP tneR More recent downtown projects are
 seeing price per-square-foot
 ranging from $1.17-$1.76.

 CharlestonAreaAlliance.org
 Page | 9 of
FOR-SALE HOUSING
County-wide home sales remain steady and sell relatively quickly.
Average downtown sales price is $202,075, which is about $20,000
more than the average for the remainder of Charleston.
City-wide availability rate is 2.3%, within range of typical
healthy markets.

LIVABILITY FACTORS
 Strong economic network
 Charleston's downtown including employee work
 is considered a walker's locations, community services
 paradise, where daily and retail are concentrated in
 tasks do not require a the downtown Charleston
 car. area, making it easy to access
 work and leisure in a central
 location.

COMMUTING PATTERNS
Over 47,000 people commute into Charleston on a daily basis. It is
anticipated that as additional housing is added to Charleston
overall, the market will have a greater chance of attracting
commuters as potential residents to the city and into downtown
Charleston. Attracting less than 1% of daily commuters would fill
the housing gap over the next 5 years.

 47,000+
 Daily
 Commuters
 CharlestonAreaAlliance.org
 Page | 10 of

MINUTES
 URBAN RENEWAL AND ECONOMIC DEVELOPMENT COMMITTEE MEETING

 12:00 P. M., SEPTEMBER 23, 2020

 A/V CONFERENCE ROOM

Brent Burton, Chair, called the meeting of the Charleston City Council Committee on
Urban Renewal and Economic Development to order at 12:00 p.m., SEPTEMBER 23,
2020, in the Audio/Visual Room in City Hall.

Committee Members Present:
Brent Burton, Chair
Tiffany Wesley-Plear, Vice Chair
Brady Campbell
Adam Knauff
Chuck Overstreet
Jennifer Pharr (arrived after approval of minutes)




 1. Approval of Previous Minutes – Councilmember Wesley-Plear moved to approve
the minutes of the previous meeting on 2-6-2020. Councilmember Overstreet seconded.
There was no objection and the minutes were approved.
 2. Presentation on the 2020 Downtown Charleston Housing Study ‐ Charleston
 Area Alliance (Susie Salisbury) & Bowen National Research (Patrick Bowen) -

Councilmember Burton introduced Patrick Bowen from Bowen National Research and
Susie Salisbury from the Charleston Area Alliance. He added that CAA hired Bowen to
conduct a housing needs assessment of Downtown Charleston.

Salisbury added that the update to the 2015 Downtown Housing Study was just
completed, with a focus on Market Rate Housing to include rental and for-sale housing.
CAA partnered with the Greater Kanawha Valley Foundation and United Bank for the
study.

Councilmember Knauff stated that since there was an economic study for Downtown
went pretty far into the West Side, what was what was the basis or rationale for the
most recent study. Salisbury added that the study was stretched over to Maryland
Avenue as much of the “flats” are considered Downtown to include people looking for
market rate housing. Bowen added that the inclusion of a few blocks won’t materially
affect the conclusions of the study. Additionally, the study in 2015 looked at the entire
spectrum of housing, while the current study focuses on Market Rate Housing.

Highlight’s of Bowen presentation:

  The study examined a large economic demographic, housing supply
 information (historical and current), transportation, parking, crime etc. that
 would affect why someone would choose to live Downtown or not.
 Additional information was gathered from an online survey. Case studies
 were performed on 4 other communities that examined downtown housing
 markets at different price points.
  Showed how Downtown has historically changed from the rest of the City
 (with a stabilized growth). If nothing is done to encourage economic and
 housing growth, the area will start to lose additional households over the
 next 5 years. Age groups 65+ are expected to grow a lot, which points to
 an increased demand in senior housing.
  Changes to housing by income are projected to increase in middle to
 upper income renters. Homeowner growth is expected in households with
 the highest incomes. Multi-family apartments have a 96.1% occupancy
 rate (the ideal is 94-96%). The City overall needs additional Market Rate
 Housing. Premium rates for rentals occur the most for 1-2-bedroom
 apartments. It is possible that there will be an increased demand for 2-
 bedroom apartments. There is a high demand for high-end rentals.
  Most non-conventional rentals (single-family home, duplex, etc.) are
 priced at a premium.
  For-sale housing is stable with price points slowly increasing. Average
 days on market is 80 days, which indicates a good level of demand.
  The Downtown market is at a competitive disadvantage (older, smaller
 square footage, less choices, etc.).
  Commuting patterns show that 80% of the workforce does not live in
 Charleston. It is likely many of those people would be open to living
 Downtown if their requirements are met.
  There are 2 Qualified Opportunity Zones in the Downtown area that
 provides incentives for developers.
  Downtown case studies show similar cities to be Altoona, PA, Lancaster,
 PA, Huntington, WV and Chattanooga, TN. Projects in the downtowns of
 the cities added to their vibrancy, helped employers attract and retain
 employees, contributed to urban renewal, etc. It also included construction
 costs, uncertainty with downtown living, etc. The studies show that
 housing built downtown with the right product and the right price will be
 successful.
  Recommendations: network and reach out to groups and developers to
 promote opportunities, more nightlife and retail opportunities are needed
 and encourage public/private partnerships.

Councilmember Knauff confirmed that the study suggested that the focus be to smaller
development rentals and away from condo units. Bowen added that while condos would
be beneficial, the steady shift will be to smaller apartment rentals which will lead to
bigger projects.

Councilmember Wesley-Plear asked how much of the non-conventional housing is
located on the West Side. Bowen replied that they didn’t break it out into geography
beyond the Downtown area as opposed to the rest of the City. He added there is a map
in the study. Councilmember Wesley-Plear asked if the housing around the King Center
or Washington Manor were included. Bowen replied that the index in the back of the
survey listed every project that was surveyed, but he did not know from memory.
Salisbury added that the townhouses in front of Washington Manor (Clendenin
Square/Charleston Village) were included. Bowen added that anything that would an
affordable component (tax credit, government subsidized, etc.) would not have been
included in the survey.

Bowen added that the national average for pre-leasing is 10-20%, which is much lower
than pre-leasing for the Atlas Building as stated by Councilmember Pharr.
Councilmember Pharr added that many similar buildings in the area are prime for this
sort of development.

Todd Dorcas, from the Greater Kanawha Valley Foundation, asked if the study showed
the percentage of renter versus ownership and how that compares city-wide. Bowen
replied that it is estimated that 87.1% of units Downtown are renter occupied. The rest
of the City is 46.2%. Dorcas asked if the population loss to the number of housing units
consistent with typical demands. Bowen replied that it’s complicated, but he believes
that there isn’t much of a choice Downtown (that does not include affordable housing).
That is why he recommended building smaller rentals as a base and building condos
and larger rental projects on top of that.
Councilmember Knauff asked what was the difference between somewhat and very
walkable as listed in the study. He added that Kanawha Blvd was listed as somewhat,
but he felt that it is a very walkable area. Councilmember Knauff additionally asked if
parking concerns were included in the study. Bowen replied that the study broke down
more walkability sports than would normally be done, and generally they found
Downtown to be very walkable (yellow and green areas). Councilmember Knauff said
that the study didn’t mention anything about grocery stores or access to fresh food,
adding that if the area had been extended a block further, it would have included a
Kroger. He asked if that should be a concern. Salisbury added that the Capital Market is
also in the study area. Salisbury added that the City conducted a parking study several
years ago and noted 30,000 parking spots Downtown. Councilmember Knauf agreed
that Charleston has a lot of parking and would like to see it as a selling point.


 3. Administrative Updates -
Mayor Goodwin announced to the Committee that the City has received grant money to
work on the development of Slack Plaza, adding that this will be a great opportunity to
encourage urban growth. It will be a seamless connector for walkability as well as
building on city center. A design draft was presented to the Committee. Mayor Goodwin
added that it is more than just housing, that it is about the amenities and quality of life
the City can offer to attract and keep citizens and businesses. Councilmember Knauff
confirmed that there is a planned ice-skating rink. Councilmember Wesley-Plear asked
if Slack Plaza could be rented out. Mayor Goodwin replied that is something that would
need to be examined.


Councilmember Pharr added that some younger professionals said they have stayed on
the City because there is now more available housing Downtown.




Councilmember Overstreet motioned to adjourn the meeting. Councilmember Pharr
seconded.

Meeting adjourned.