Understanding Mixed-Use Development & Density: A Recap

On April 12, Building Worthington’s Future (BWF) was delighted to host an educational event for the community all about understanding mixed-use development and density. Moderator and BWF acting President, Matt Gregory, spoke with two panelists, Terry Foegler, formerly with the City of Dublin, and Nelson Yoder, Principal at Crawford Hoying, who shared their experiences in navigating mixed-use development.

Terry Foegler is the President of Terry Foegler & Associates and has vast experience in public and private sector planning and development. This includes serving as Assistant City Manager and City Manager of Dublin, Ohio. With decades of experience in the public sector, Terry has been at the forefront of working with community leaders to manage growth and improve the vitality of cities. Terry’s experience included direct involvement in economic development, neighborhood and urban revitalization, and complex mixed-use project implementation. At the event, he shared various examples from over the years of the creation of walkable, mixed-use development from concept to realization. While at the City of Dublin, he was instrumental in implementing the first phases of the Bridge Street District vision, connecting historic Dublin to what we now know as Bridge Park and the Bridge Park development itself.

Nelson Yoder shared his experience and expertise in delivering complex, nonpareil walkable communities. With a background in finance, design, and construction, Yoder has an extensive understanding of what is needed to establish mixed-use, high-density transformations. His first mixed-use project was the award-winning Hudson 29 development on Lane Avenue in Upper Arlington. He also worked alongside Foegler and the City of Dublin in implementing development on both sides of the river in Dublin (Bridge Park and the Bridge Street District.)

The Need for Walkable Mixed-Use Development & Appropriate Density

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“We went from Leave it to Beaver to Friends” - Terry Foegler

To understand the benefits of walkable mixed-use development and density, we first discussed the need for it. Terry and Nelson talked us through the reasons for the recent popularity of mixed-use development and why neighborhoods and urban areas are striving to become denser.

In the 50s, 60s, 70s, and 80s there was mass development of single-use housing. Suburban areas were being developed across vast greenfield and farm areas, accommodating post-war families and growth. Businesses were grouped in “professional parks” and areas designated specifically for offices and office buildings. Uses were separated and clustered while streets, highways, and parking lots were built to accommodate car travel.

In the early 2000s, Millennials and young professionals were locating in larger numbers in activated, walkable areas. One result was that employers in areas like Dublin were beginning to

have difficulty attracting new talent. Vacancies were increasing at professional parks as young professionals were redefining their idea of where they wanted to work. The aging population was downsizing at the same time these young professionals were entering the workforce. It was a time when two very different groups of people wanted the same thing—walkability in a vibrant, amenitized area with a mix of housing, services, offices, retail, entertainment, and restaurants. These two groups of people made up a growing part of the population driving the popularity and benefits of walkable mixed-use development.

At the same time, the Central Ohio region began studying how to accommodate the growth that was occurring and the environmental, economic, transportation, and health impacts of continued sprawl and development outward. Studies pointed toward focusing inward and increased density in strategic places. Foegler cited urbanist Chirs Leinberger in explaining why mixed-use is important to the built environment and city fiscal health.

With the increase of mixed-use in our area over the past decade, both Foegler and Yoder agreed that one of the positive impacts they have seen is the rise of commercial and residential desirability and property values surrounding mixed-use developments.

Financing a Mixed-Use Development Project

When Foegler and Yoder were asked about financing mixed-use development, there was no surprise that it is complex. Because mixed-use offers a tenant blend that creates multiple revenue-generating elements, especially high-demand residential, lenders and investors often require a housing component to be part of the development. Knowing that the residential piece will be occupied and immediately generating income creates leverage for the financing.

Commercial developments, on the other hand, don’t have that same advantage. After a speculative commercial project is completed, they can sit vacant for an undetermined amount of time waiting for the right tenant. It takes a 60-70% occupancy rate in commercial developments to obtain cash flow. The advantage of mixed-use development for lenders is the confidence in cash flow with the residential property side of the project. For example, if the project is at least 70% residential, the lender can be confident that the project is going to cash flow immediately.

Additionally, mixed-use developments attract a wider variety of tenants due to the variety of functions that provide environments for people to live, work, and play, all with the added advantage of vitality and walkability. This also allows retail spaces to get more visibility and an immediate customer base, hence a better opportunity to generate revenue.

Building the right financial partnerships for both the residential property and commercial property needs, necessary structured parking, and signature public use space (parks, trails, sidewalks, etc.) can be an extensive process with important considerations to make it successful. However, the main takeaway was that the increased costs and time in creating a walkable mixed-use development project returns more value and revenue to the city where it is located by attracting and retaining businesses and employees, enabling the city to provide more and higher-quality services and amenities that its residents desire.

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Dublin Bridge Park: Cory Klein Photography

Key Takeaways

During the course of this 1.5-hour event, important information was covered, many questions were asked and answered, and great knowledge and understanding was gained. If you were unable to attend, we invite you to watch our recorded video of the presentation here.

Here are some key takeaways from the presentation to be noted:

· Countries across the world have been doing this for years, it is not a new concept. In fact, our cities and towns were founded and developed as walkable, mixed-use places—and they grew and densified as more people and businesses called those places home. Bridge Park is the newest Central Ohio example of putting this concept into action.

· You can create bad density without walkability if you choose the wrong mix of uses, location, or the wrong design. These three things—use, location, and design are all vital to the success of this type of project.

· Repeated evidence shows that single-family home values near mixed-use development increase due to the popularity and proximity of the area.

· There will always be a need for single-family homes, but mixed-use development is part of growth and is here to stay.

· Mixed-use takes political willpower, collaboration, and working partnerships for success.

· Continued education about the need for and importance of compact, walkable, mixed-use is important.

· Since Covid-19, a number of companies have downsized and a number of people are working remotely, making this a very competitive environment for attracting office and retail tenants. Businesses are looking to stay relevant by locating in space incorporating work, life, and play environments.

· For successful mixed-use, the development must involve the community.

Building Worthington’s Future is committed to maintaining Worthington’s historic charm and character while building economic growth and vitality. If you have any questions or comments regarding our program, let us know. Understanding how this extremely relevant type of development can benefit our community is important.