DEVELOPMENT PROGRAM

Oxford Circle Redevelopment Framework

Today Oxford Circle represents a collection of real estate parcels and improvements that are clearly in transition. The most successful business operations are a blood plasma center and a fitness center; both serve mostly customers from outside the immediate neighborhood. There are two small convenient-type grocers, but even they do not fully serve the local market. The majority of the buildings that are not directly on Versailles Road have outlived their useful lives and suffer from deferred maintenance and obsolete design. Few of the buildings have direct street frontage, typically a requirement of well-functioning commercial spaces, and there is no synergy amongst the small grouping of businesses. In other words, Oxford Circle is comprised of a series of isolated outlots with businesses that demonstrate no ability to attract customers wanting or needing a diverse set of retail and service opportunities. This 10 acre commercial real estate is dysfunctional and provides little value to the adjacent neighborhoods. Both the types of businesses and the site configuration must change if Oxford Circle is going to contribute and serve the surrounding households and Versailles Road commuters.

Oxford Circle is clearly in transition and there are only a small handful of viable businesses still in operation. The property owners have experienced difficulty in maintaining both their buildings and the shared parking and common area spaces. The real estate economics for most of the property owners is a losing proposition. This is coupled with several property owners who are ready to retire and intend to sell their real estate in the near future. The prevailing sentiment amongst the property owners is that change is needed and most would be happy to sell their properties and support a new day for Oxford Circle and the neighborhood. It would be difficult to imagine a better window of opportunity to accomplish a large scale redevelopment of Oxford Circle then the one that exists today.

Objectives

Community-Based Redevelopment

CATALYZE encourage + attract additional investment RELOCATE find a new home for the library

The goal of early public investments should be to create a context that paves the way for future private investments. This approach leverages scarce public resources to encourage investment in area’s that are not likely to attract development on their own.

The Cardinal Valley Small Area Plan identified an opportunity to relocate the Village Branch Library that would serve two purposes - provide larger, better space for the high demand library and anchor the redevelopment of the underutilized Oxford Circle Center.

EMPOWER create new opportunities for residents

Due to limited access to services and support, libraries have become a quasi-community center. However, this site has the opportunity to create an “Opportunity Hub” that becomes the entry point for residents looking to improve their current situation with inclusion of social services, life-long education options and job networking.

CONNECT improve connectivity and access to site

Built during the era of the automobile, Oxford Circle does not work for its current users who arrive primarily on foot. By improving how trafficpedestrian, bike, transit and vehicular - flows on and off the site, it becomes much more attractive to users, investors and potential customers.

TRANSFORM create an attractive, welcoming environment

Lack of investment is very visible in the number of marginal uses, deferred maintenance issues and overall neglect of the properties. There must be improvements to the physical and built environment that re-establishes a welcoming and safe environment if the site can attract additional users, tenants and investment.

DIVERSIFY offer more retail + service options

There is a documented unmet demand for retail and commercial services that presents an opportunity to expand and diversify the existing offerings. Restaurants, convenience goods and general retail options are missing. By diversifying the offerings, there is potential to attract a broader market to Oxford Circle.

RECREATE increase recreational + natural amenities

Vaughn’s Branch Creek presents a unique opportunity to extend the existing trail network and create a series of open spaces within Oxford Circle. Improvement to the creek itself, along with improvements to the existing open space will enhance the development context of the site.

EXPAND attract + serve a broader market

Today Oxford Circle primarily serves the immediate neighborhood. Its location along Versailles and across from an active hospital use provides the opportunity to expand the market and attract an additional customer base that could support expanded retail and service offerings.

Moderate Approach

Strengths of Approach

• Reconfigures dysfunctional site layout into one that has the ability to transform site to better serve the neighborhood

• Adapts existing uses to meet current demand/need

• Creates better internal connections and meets community objectives identified in Small Area Plan

The Moderate Approach is a realistic two-part approach of creating a library, community space, and recreation space through property acquisition or reuse, and enhancing the public realm through streetscape, infrastructure, and greenway improvements. By strategically acquiring and setting aside critical properties along the backside of the Circle for civic use, a problematic area from a retail perspective is turned into a positive. A new Village Library Branch building in this location will be closer to the community it serves, with enhanced transit, bicycle, and pedestrian access along Oxford Circle, with ample parking both on site and in new on-street spaces along Oxford Circle. The reuse of the Ford’s Fitness building provides the opportunity for optional phasing of the library while a new building is under design and construction. It provides an unique opportunity to transform the current gym directly into a community/ recreation center. The remaining buildings would be allowed to develop overtime to best suite the needs of

APPROACH OVERVIEW |

Moderate Acquisition + Development Strategy targeted property acquisition strategic transformation w/ improved site plan new library facility community/rec facility (rehab + addition) ability to influence future direction change perceptions to attract investment

Estimated Budget: $15,000,000

Objectives Accomplished (7 of 8)

Challenges to Approach

• Requires property acquisition of key properties and long-term transition of less complementary uses

• Provides limited impact visually along Versailles Road and will require long-term plan to transition uses

• Gradual approach fails to address all physical constraints in the short-term this newly revitalized node. Finally, the parcels along Versailles Road would become opportunity sites for vehicular-centric commercial businesses to capture a portion of the visitors that drive by everyday.

Improvements to the public realm, most notably the addition of a village green, redesign of the parking lots and a “complete streets” approach to Oxford Circle, will work to strengthen the existing infrastructure and bolster retail opportunities. A central green acts as outdoor space for the library, shared community space for gatherings and festivals and a new frontage for the existing commercial buildings. By adding islands within the parking lots and sidewalks internal to the site, the community is encouraged to circulate around the site, activating it further and increasing safety. The portion of Vaughn’s Branch that bisects the site will be further revitalized to become a greenway amenity, as well as an active piece to the stormwater and drainage plan.

Complete Approach Minimum Approach

robust property acquisition new library facility community/rec facility (rehab + addition) new retail and/or service space control future of site change perceptions and attract investment

Estimated Budget: $20-$30,000,000

Objectives Accomplished (8 of 8) minimal property acquisition library/community space (rehab + addition) village green requires additional acquisition lack direction/control of other properties limited ability to catalyze other investments

Estimated Budget: $5,000,000

Objectives Accomplished (2 of 8)

Strengths of Approach

• Provides maximum impact and eliminates uncertainty for new users

• Expands market appeal

• Holistic approach fully utilizes site and creates better synergy between the anchor uses

Challenges to Approach

• Requires significant upfront acquisition of properties, including Versailles frontage

• May be too much too soon for some long-term residents who have attachment to the site

Strengths of Approach

• Very limited acquisition could result in near-term development outcomes

• Existing building compatible for reuse as library and would reduce upfront cost to redevelopment

Challenges to Approach

• Limited ability to impact and attract other investment to the site and broader community

• Little to no visual impact on Versailles or the majority of Oxford Circle

• No control and limited ability to influence surrounding properties

Complete Streets Application

NEW VILLAGE LIBRARY

20,000 sq. ft. flexible, adaptive space innovative library model indoor / outdoor programming community-driven services

Estimated Construction Budget: $6,000,000

CREEK RESTORATION & IMPROVED OPEN SPACE

FUTURE DEVELOPMENT PADS

REALIGN MASON HEADLEY/OXFORD CIRCLE

17,000* + 4,000 sq. ft. recreational flex space early learning classrooms community services

Estimated Construction Budget: $2,600,000

VILLAGE GREEN/ PUBLIC PLAZA

flexible, adaptive space shared parking outdoor programming community gathering/festival space

Estimated Budget: $620,000

Complete Streets Application

on-street parking w/ bike lanes continuous sidewalks improved transit facilities upgraded stormwater infrastructure

Estimated Budget: $870,000

NEIGHBORHOOD RETAIL & SERVICES

transition of non-compatible businesses relocation of desirable businesses on-site improved “retail” environment more transparent inviting facades

Estimated Budget: $490,000

CASE STUDY |

Baker-Ripley Community Village

In 2007, 12 partner organizations began a community-based process to develop an innovative community village in the low/moderate-income minority community of Baker-Ripley in Houston, Texas. As part of that redevelopment, a mixeduse village was designed to bring a variety of social, health, educational, and recreational amenities to the underserved neighborhood. The place-based strategy blends traditional elements of redevelopment and placemaking with service delivery in a unique village setting that ultimately became a focal point of the larger community.

APPROXIMATE COST (IN 2015 DOLLARS) $16.9 MILLION

OXFORD CIRCLE FEASIBILITY STUDY | PAGE 60

CREEK RESTORATION & OPEN SPACE

build on recent restoration/clean-up efforts extend bike/ped path south expand recreational and open space areas

Estimated Budget: $450,000

REALIGN MASON HEADLEY/OXFORD CIRCLE

improve connectivity to hospital/visitor market create better context for future retail development remove visual and physical barriers on Versailles Road

Estimated Budget: $3.4 million

Future Development Pads

create new welcoming gateway via development expand regional / commuter markets transition non-compatible / undesirable uses

Estimated Budget: tbd

NOTE: all estimated budgets reflect hard construction cost only

BUDGET Estimated Cost + Funding Strategy

The recommended redevelopment program for Oxford Circle represents an estimated $14,440,000 investment in new facilities and infrastructure improvements. This investment will produce a public gathering place that will attract local residents to a variety of services, retail offerings and opportunities to connect to a variety of greater Lexington resources. Like most redevelopment initiatives, the implementation requires a strong public/ private partnership. In this instance, the private sector is strongly represented by local “high-capacity” not-forprofits that are critical to producing the desired redevelopment outcome. Another typical characteristic of an ambitious redevelopment initiative is the variety of the “capital stack” that is assembled to support the effort. There will be no less than eight sources of funds to support the redevelopment of Oxford Circle, and likely the list will grow as the final project details are established.

The budget as represented in this report is an estimate of total project costs and the types of funding sources that can be used to support them. The budget demonstrates that there is a viable approach for realizing the desired redevelopment objective. The redevelopment budget as represented is based on several key assumptions:

1. With the Library and Community Action Council as the key redevelopment anchors, establish a program that minimizes long term debt thus reducing the annual impact of capital expenditures on their respective annual budgets;

2. Utilize resources available to each of the anchor entities to reduce the need for outside funding;

3. Introduce low cost funding sources such as a federal 108 loan and new markets tax credits, both of which have program objectives that reflect those of this initiative;

4. Utilize flexible debt instruments that allow both entities to fundraise and to retire their debt as they secure funds to do so. Both the Library and Community Action Council demonstrate the capacity to retire most of the project debt within a 10 year period or less; and

5. Package redevelopment objectives in a manner that will appeal to external philanthropic and governmental funders. It is likely that additional sources will be identified as the project details are finalized.

Finally, as can be seen the budget reflects the broad categories of redevelopment project expense and then the funding sources which will support the overall effort. The “sources and uses” budget will eventually be put in a form that represents each of the individual efforts (i.e. library project, community center project, retail infill project, etc). The sum of these individual projects is represented in this budget as seen here, as well as the means to support them.

As local leadership rolls up its sleeves and begins to explore the best path forward, it is important to realize that the budget will be modified and likely improved to the benefit of each of the project components.

NOTE: The provided budget does not include any environmental remediation and is only an estimate intended for discussion

(1) Cost represents construction hard cost only. Does not reflect total project cost. To see total project cost see implementation budget on page 66.

(2) Contingency funds could be used for a variety of redevelopment activities include, but not limited to additional property acquisition and business relocation assistance.

Fundraising and grants will retire 50% to 75% of $6 million debt

Lease rate of $6 - $12 / sqft will retire remaining 25% to 50% of debt over 20 years at 5% grant will retire 60% to 75% of their debt

Lease rate of $4 - $8 / sqft will retire 15% to 20% of debt over 20 years at 5% of construction cost may be reduced by grants and

Interest only loans for 7-years with ability to negotiate forgiveness of up to 50% of loan at end