Developers frequently find themselves at odds with local officials – challenged with the politics and bureaucracy of project approvals. But when a proposed project meets the needs of all parties involved, it can lead to a successful development. It all comes down to having a common vision. An example of a synchronized vision between a developer and city officials is currently taking shape in Annapolis, Maryland.

While it serves as the state’s capital, the city of Annapolis is relatively small, with a population of approximately 35,000. The colonial capital city, rich in history and tradition, and known since its earliest days as “Athens of America,” is cautious of new development and the impact it will have on the city’s character and charm. Add to that the scarcity of land for new development, and sensitivity to any change, and you’ll begin to see the hurdles a developer faces in building even the most routine project. So imagine the issues Jerome J. Parks Companies, the developer, and EDSA, an internationally renowned, full-service planning, landscape architectural and graphic design firm, faced with Park Place, a proposed $200 million mixed-use property located in Annapolis.

Now in the early stages of construction, Park Place will initially feature a residential building with 208 luxury condominiums, a 225-room Westin Hotel, an office building with 145,000 square feet of Class-A space, up to 60,000 square feet of boutique retail shops and a 1,500-car parking garage. The buildings and surrounding public realm have been designed to bring classic architectural styling and ambiance to the area. In the second phase, an additional 111,000 square feet of office/residential space and a performing arts center are planned. From an economic growth perspective, the development is expected to create 1,323 new jobs in Annapolis. The first stage of the 12.1-acre development is expected to be completed in the fourth quarter of 2006.

A Common Vision
The road to success was rooted in a common vision between the developer and the city.

By the mid-1990s, Parks Companies had assembled a number of parcels of land at the end of what is known locally as Inner West Street. The property is within walking distance of the city’s Historic District. Numerous studies by the city determined that this property was a critical element of the city’s overall redevelopment plan and that proper development of the land parcel was vital to achieving the city’s vision.

At this point, there were two options.
1. The seven-acre property could be divided into lots to build an office park of four-story buildings and perhaps some retail. The zoning supported that, and the developer could have easily developed the land and moved on to its next project.

2. Work closely with the city to respond to their needs with a truly innovative mixed-use project that would go above and beyond what typically would have been built on such a site.

The developers began the process by meeting with representatives from the city and its Economic Development Office, as well as the new mayor. Because of that meeting, a decision to collaborate on a public-private venture evolved. While the land was already properly zoned, support from the city in other facets of the proposed project was still needed – most notably concerning parking requirements.

The parking requirements for Annapolis, like those of other municipalities, can be quite onerous. In addition, the zoning allowance for height is very restrictive. This made it difficult to build what everyone wanted on the site and still provide adequate parking. Upon evaluation of alternatives, it was quickly determined that there was the need for underground parking. This required the city’s assistance through TIF (tax increment financing) to fund a portion of the construction costs.

Project Features
During the initial meetings, the city also gave input on the product mix they envisioned for the site. For example, they offered a series of items on their “wish list.”

On the top of their list was the need for hotel rooms and banquet/meeting facilities in Annapolis to accommodate the demand from tourists, business travelers and visitors attending events at the U.S. Naval Academy, such as football games.

Second, as housing continues to be an important issue in Annapolis with a strong demand from people who want to live close to the Historic District, a residential component was in order. Park Place, located at the edge of the city’s Historic District, delivered on that need.

Additionally, the city said they’d like retail developed on the site. They were beginning to see a clearer vision of what the Inner West Street Corridor could become, so making Park Place a retail destination was another priority. A vision of boutiques, bistros and upscale restaurants ensured it would be the type of retail where people enjoyed shopping and socializing.

Before long, the developers were working closely with the city on this combined vision for Park Place. Not only would the city get a project that fit their plans, but also the long-term tax benefits would be substantial.

Building the Team
Next, the developers created a plan to move forward. The Parks Companies initially retained the planning services of the late Fred Jarvis, a long-time friend and colleague who had worked with them for many years, to do the initial site capacity and conceptual studies. Shortly thereafter, a competitive search for the right architectural firm was initiated. Ultimately Davis, Carter, Scott Limited of McLean, Virginia was selected. Led by Doug Carter, team members collaborated to develop plans for Park Place, a process that was heavily supported by working with the community.

In addition to public hearings, presentations were made to local businesses, professional organizations, neighborhood groups and associations. While the support of the city officials had been secured, buy-in from the local community continued to be key to this project.As such, time and resources necessary for this effort were allocated.

The philosophy was to be very open with the plans. Every two weeks public meetings were held to solicit feedback on Park Place. It was a process that was taken very seriously. Representatives from all facets of the development team – from planning, architecture and landscape architecture to traffic engineers and marketing consultants – all were on hand to answer questions and collect citizen input.

After each meeting, suggestions were analyzed. In many cases, the team agreed and tried to implement them. Overall, more than 20 substantial changes were made to the plans based on public feedback. The public process accomplished two objectives. It improved the design of the project by creating a place that people would visit, gather and socialize. Second, it made Park Place a true community project as the changes reflected direct public input.

In addition to the meetings, an Open House was held at the site, inviting the community to see the plans and talk to members of the team. More than 800 local residents and business leaders attended – a significant number when you consider the size of Annapolis. The attendees’ questions continued to be addressed and in doing so, the project continued to gain support and momentum. Written surveys were also collected from everyone, further soliciting feedback and ideas.

In all, more than a year-and-a-half of public hearings were held.

The bottom line is that the public hearings received nearly 100 percent support with virtually no opposition from the public. The common theme heard from public testimony was that “we want this project, we want it now and we don’t want it delayed.” Not an easy feat for a $200 million mixed-use project in a historic city such as Annapolis!

Creative Financing
Realizing that private financing could not cover the amount of parking that was needed to support this sort of project,  the city offered to utilize the TIF option, marking  a first for the city in this type of public-private venture. The team assisted the city on the design and implementation of the TIF and enabled the project to secure the $25 million in bond financing. Based on the city’s investment, it was provided partial ownership in the garage, creating yet another win-win for Park Place and the city.

By the fall of 2001, the financing aspects were coming together and multiple discussions with potential joint venture partners were being held. However, the events of September 11 resulted in the disappearance of most of the financing sources.

While the project continued to move forward on the planning phase, the search for financing partners continued and eventually an alliance with the global private equity firm known as The Carlyle Group was formed. As part of the financing arrangement, Anglo Irish Bank Corp. agreed to lend $150 million for the project in three separate loans – for the hotel, condominiums and an office building.

In November of 2004, The Carlyle Group joined the development team in announcing a $200 million budget to develop what is now a 12.1-acre parcel of land. Park Place will bring together Annapolis’s first 4-star hotel, luxury condos, fine boutique retail shopping, Class “A” office space and underground parking.

Additional Factors
While ultimately nine parcels were assembled for Park Place, a problem remained — land owned by a local dry cleaning establishment that was situated in a prime location on the property. Initially, an agreement to purchase that property could not be reached, so the project was designed around the dry cleaner’s building. Finally, after five years of negotiations with the owner, a parcel of property was acquired at the north end of the Park Place site, allowing the dry cleaner to relocate.

Another challenge in the process resulted from the urgent demand for condominiums. In response, the timing of construction was altered to deliver the residential component of Park Place sooner.

In order to reduce traffic congestion, the team’s transportation expert demonstrated how a looped public transit system, using smaller buses, could more easily navigate the city’s streets. The city verbally agreed to this idea and is now in the process of implementing, and may even expand, a public transit program that will center around Park Place, offering riders easy access to points along West Street and downtown Annapolis.

Location and Amenities
Park Place is within one-quarter mile from the Navy-Marine Corps Stadium and less than one-quarter mile from the Maryland State House.

The condominium building, The Residence at Park Place, will consist of 208 luxury units, ranging from 1,250 to more than 1,800 square feet. Amenities include an outdoor pool, fitness center, concierge services, room service, housekeeping and the opportunity for priority status at a local marina. Interior finishes will include granite kitchen counter tops, high-end appliances and cabinets as well as travertine tile flooring. Additionally, there will be secure private parking in the building. Prices start in the mid-$500,000 range. Pre-sales of the condominiums started in March 2005 and demand has been strong as they represent the first true luxury condominiums built in Annapolis.

The Offices at Park Place will consist of two 125,000 square foot state-of-the-art Class “A” office buildings, connected with a dramatic glass tower. The Shops at Park Place will consist of 60,000 square feet of upscale retail at the street level of the office buildings. The process of securing retail tenants that will contribute to the boutique-style atmosphere and upscale vision of Park Place is underway.

While a movie theatre was initially considered as part of Park Place, plans were later changed to include a state-of-the-art performing arts center after a local arts organization offered to work with the development team in raising the necessary funds. A non-profit entity was formed, with the developer providing the land, and funds for the proposed theatre that will accommodate 1,200 seats are being procured.

Finally, a franchise agreement with Starwood Hotels & Resorts Worldwide, Inc. for a 225-room luxury hotel under its upscale Westin brand was recently announced. Managed by the Davidson Hotel Company of Memphis, Tennessee, the hotel will feature 13,000 square feet of meeting space including a ballroom for social and business events. The hotel will also be equipped with the brand’s new Westin WORKOUT® Powered by Reebok fitness center.

The close proximity of Annapolis to the heavily trafficked Washington-Baltimore corridor will make the Westin a convenient hotel for business travelers. At the same time, it will become a popular hotel for tourists who are in the area to enjoy the city’s nautical heritage and picturesque Colonial-era charm.

To connect the classic architectural styling of Park Place with the outdoor environment, Keith Weaver of EDSA, now responsible for the implementation of the project, prepared a detailed site design for the public spaces. This included a retail plaza with gateway fountain, a hotel arrival court and a residential arrival garden. All of the design elements are linked with a unique European style streetscape environment for residents, shoppers and hotel guests to enjoy.

A Place to ‘Live, Work and Play’
With all of the intricacies associated with Park Place, a number of issues or regulatory constraints along the way could have produced a very different outcome. Instead, the visionary partnership between the public and private sector created an urban center where Annapolitans and visitors alike will be able to live, work, and play.

Park Place would not have been possible without the involvement and collaboration of many. From the city officials and local residents who contributed their ideas, to the expertise of the project team, Park Place is a story of how a shared vision turns a dream into reality for future generations to enjoy. SLDT

About the authors: Jerome J. Parks is founder and president of the Jerome J. Parks Companies, Annapolis, MD. Since 1952, the company has developed and managed high-quality commercial and residential developments in urban and waterfront settings. For more information, visit www.jparks.com. For more information about Park Place, visit www.parkplace-annapolis.com.

The late Frederick D. Jarvis, FASLA, was a Principal with EDSA, and an integral part of this project and was co-authoring this article before his recent death. He also served on the Editorial Board of Land Development Today.

Keith Weaver, Associate Principal with EDSA, is project manager for the implementation of Park Place.
EDSA is an internationally renowned, full-service planning, landscape architectural and graphic design firm with over 170 employees and 43 years’ experience in community planning, hotels and resorts, attractions and entertainment, campus and cultural planning, urban design, and environmental planning and ecotourism.  For more information, visit www.edsaplan.com.