Resolution 6527 - Laserfiche WebLink

MARKET OPPORTUNITY The multifamily rental market is strong at the present time and should improve with an economic recovery in the region. Prevailing market rents are near the thresholds for feasible development in some areas of the city. The opportunities for higher density new development that might benefit from TDR's are sites that offer unique and scarce features, thus justifying a cost premium; and in zones where existing development is at allowable maximum densities. These opportunities fall into two broad categories: HIGH AMENITY SETTINGS Such settings offer water and/or mountain views, proximity to public and commercial services, and an attractive streetscape and surrounding development. Such settings could accommodate single-purpose residential or mixed-use buildup. Downtown qualifies for the category; however, given the lack of density and height restrictions, there is no economic incentive for a developer to purchase development rights in the area. Areas on the periphery of Downtown and elsewhere in zones other than the B-3 and R-5 zones could attract higher-density development. R-3 and R-4 zones in areas with views and attractive settings should be considered. TRANSIT CORRIDORS The major transit corridors offer the potential to provide higher-density development, while taking advantage of the excellent public transportation. In particular, the R-2 and R-3 zones west and east of Evergreen Way could accommodate increased density as the nodes on the corridor itself experience even greater density. In particular, R-2 zones along the corridor could allow townhomes at densities comparable to R-2A. The C-2ES zone at the Everett Station is an obvious candidate as well. RETAIL MARKET OPPORTUNITIES Retail is a common ground floor use in a mixed-use building. Retail market conditions can affect the feasibility of development of a mixed-use building, with or without TDR's. RETAIL TRENDS Consumer spending has been affected by the current recession. Taxable retail sales trends in Everett and Snohomish County are summarized in Figure 3. Total taxable sales for Everett and the county both peaked in 2007; fell to 2005 levels by 2009; and began to increase again in 2010. The sales trends for retail trade sector only, showed similar patterns, although the changes aren't so dramatic. Declines in sectors such as construction taxable sales pulled down the total figure, without affecting retail trade. Figure 4 summarizes the changes in taxable sales by sector for retail trade and selected services. The three bars for each sector represent 2005, 2007 and 2010 taxable sales. EVERETT TRANSFER OF DEVELOPMENT RIGHTS STUDY FINAL REPORT PROPERTY COUNSELORS PAGE 26