Link to Charlotte Business Journal Article

Arena seen as growth magnet
by Erik Spanberg
Senior staff writer
March 12, 2004

A recent study of how Charlotte can create an arts and entertainment district around the new uptown arena finds many opportunities for development -- and a need for further study.

Future Cities, a Los Angeles-based planning firm led by Michael Hallmark, suggested familiar remedies in a $20,000 report commissioned by Charlotte Center City Partners, Levine Properties, Spectrum Properties Inc. and the Charlotte Bobcats. The study was completed earlier this year. Proposals include more street-level retail, a greater emphasis on pedestrian-friendly streets and a combination of commercial, residential and entertainment projects.

The arena, a $265 million building that will be operated by the Bobcats, opens in fall 2005. Hallmark says the city's consideration of an arena district is important in itself. Many sports projects in recent years were developed piecemeal, leaving ancillary projects unplanned around stadiums and arenas. In many cases, that has led to wasted potential.

The consultant points to Los Angeles, Dallas, Phoenix and now Charlotte as examples of a new wave of sports development. Rather than building a sports home and counting on the arrival of shops, condos and restaurants, teams and other boosters are taking the lead on enticing nearby development.

Spectrum and The Ghazi Co. have already begun securing tenants for a $40 million makeover of the old convention center across from the arena tract, while light-rail and trolley routes near the site also are expected to attract projects.

City-owned parcels at the arena site have been targeted for offices and retail space by several firms, further evidence of interest from the private sector. Without a plan, though, backers fear a hodgepodge neighborhood lacking consistency and cohesiveness.

"This discussion can help us get a better and more successful mix of assets around the arena as opposed to just a jump-ball," says Tim Newman, president of Charlotte Center City Partners. "The key is to have a coordinated effort and to have everyone on board."

Daniel Levine, whose company controls 22 acres in the arena neighborhood, says the prospects look bright for a park and related development on his land. Adjacent projects, such as the revamped old convention center, will give other landholders incentive, he says.

Levine views the Future Cities study as a good starting point but says the report doesn't offer enough detail. "I wish (Hallmark) would have put a little more meat on the bone," he says. "It could have delved deeper, I think."

Next week, Newman and the Center City Partners board will enlist LandDesign Inc. and the local chapter of the Urban Land Institute to pick up where the Future Cities report leaves off. The switch from Future Cities will save money and bring more local perspective into the talks, officials say.

The LandDesign-ULI effort will begin with a three-day workshop in April. The event, closed to the public, includes participation by property owners, developers and local government officials. A final report is expected by early summer.

Even with a plan in hand, developing the arena neighborhood will require money and cooperation. For example, one of the models Hallmark cites, Victory Center in downtown Dallas, has struggled for six years to make good on a 50-acre development of shops, offices and residencies around the American Airlines Center.

The original developer on Victory Center, Related Urban Development Corp., gave up on the project, citing a lack of interest from prospective tenants. The arena and Victory Center struggled despite a $125 million public investment in the arena and another $45 million in tax-paid incentives.

"You have to pay as much attention to the ones that miss the mark as the ones that hit it," Levine says.

Barry Silberman, who heads the Bobcats arena operations, says the building will have 150 nights of activity per year. "That alone should be an incentive for other projects," he says, pointing to Santa Monica's Third Street Promenade as an example of what can be done.

Thus far, few details have emerged on how much, if any, public money might be needed for the arena neighborhood. Hallmark says Charlotte offers greater potential than downtown Phoenix, where an ongoing $50 million renovation of an NBA arena will soon link a retail corridor with a Major League Baseball stadium a block away.

"This is the next step in our industry," says Rick Welts, president of the Phoenix NBA franchise, which is spearheading the makeover. "The venues are becoming places that are outward-looking, that tie into the rest of the area. It's not stand-alone."

Great article. Their are several loft style condo projects being built around the LA "staples" center right now.

Paul ALlens crew really went about it wrong. I think they will turn it around though. The whole rose quarter area will be filled with lofts, resteraunts, Rose Garden, Ballpark and probably casino and convention center hotel by 2012 or so.

This would be my dream too. I just went around the big block today that is the Blanchard site. It would sure work with the Rose Quarter infrastructure that is already there. If that place had NBA and maybe NHL in the winter and then MLB in the spring and summer, there wouldn't be a undeveloped lot in a half mile radius.

The west side is running out of space. The West Hills will stop the developers at some point. It's better to start seeing more development in the Rose Quarter and the Lloyd District now because land prices are cheaper and the tax base for the city needs to grow on both sides of the river.

The west side of the Willamette will always be the governmental and cultural hub for Portland, but the Rose Quarter and the east side is the place for the sports complexes. Cheaper land, better freeway access, and better MAX access to more people.

I'm not sold on the casino that never dies. Only because if one is allowed into the Lloyd Center area then all the tribes will sue to be allowed the same access. The State of Oregon will not do this. The state lottery couldn't take that much of a hit. The state already sees how the resturant industry is addicted to the funds from gambling. The owners of certain resturants freely admit that they are casino's already in all but name. Under state law. casino's outside of tribal land are illegal. We will be seeing some resturants closing down if the owners are to be believed. These closures are being threaten because the state is talking about lowering the take by the house(resturant) from 33% down to somewhere near 20%(?).

BB