Officials want development to be part of Hampton Roads light rail

Urban planners and promoters of light rail often cite the 52-mile MAX light-rail system in Portland, Ore., for generating several billion dollars of real estate development around its stations since it began operating in 1986, The Virginian-Pilot
 reports. In Charlotte, N.C., where the 9.6-mile Lynx light-rail system opened in 2007, development has been more restrained, though that may be a reflection of the economy.

Developers aren’t
clamoring to propose new projects, given the abundance of homes, condominiums
and apartments on the market; low demand for any commercial space; and
difficulty in obtaining financing.

Still, the economy hasn’t
stopped local politicians, planners and economic development officials from
pinning hopes for new development and economic renewal on Hampton Roads Transit’s
7.4-mile Tide "starter" light-rail line in Norfolk, Va., scheduled to open in
the spring.

"During this lull in the
economy, it’s now probably the best time to put in the infrastructure for the
type of development we’d like to see in the future," said Warren Harris,
Virginia Beach’s economic development director.

About 100 government
officials and business people gathered in Norfolk recently for a forum hosted
by the local chapter of the Urban Land Institute to discuss strategies for
promoting development projects that maximize use of the nascent light-rail
system.

Norfolk officials long
have touted the benefits of "transit-oriented" developments. They cite recent
projects such as the Wells Fargo Center office building in downtown Norfolk,
the nearby Belmont at Freemason apartment building and other projects as
examples of how developers can take advantage of the city’s 11 light-rail
stations.

Recently, Virginia Beach
officials have jumped on board, identifying eight sections of the city to be
redeveloped with an emphasis on high-density, compact structures. Six of its "strategic
growth areas" are along the old freight rail line that some city officials are
pushing to use to extend the Tide light-rail system to near the Oceanfront.

The Tide initially will
run from the regional medical center at Colley and Brambleton avenues in
Norfolk, through downtown, past Harbor Park and parallel to Interstate 264 out
to Newtown Road. An extension into Virginia Beach would be a straight shot from
there along the same right of way.

Beach economic
development officials hope the identified areas will give them a jump-start on
pushing developers toward high-density projects that take advantage of light
rail in the event it’s extended to the city.

"The decision has been
for our future development to cluster in these strategic growth areas," Harris
said. "For us it means moving into an urban development pattern, where we’ll
see more vertical development, more structured parking."

Planning officials
already have created master plans for areas at current light-rail stops, such
as the transportation hub planned for the area around Harbor Park. Those master
plans, the officials say, will provide a road map to allow them to maximize the
integration of commercial and residential buildings with light-rail stations. The
Newtown Road area of Virginia Beach is poised to take advantage of light-rail
development, even if an extension into the city is years away, Harris said. The
Tide’s eastern terminus is at the border of the two cities.

For some developers,
light rail itself can be a lure, said Chuck Rigney, an assistant director in
Norfolk’s development department.

"Regions with light-rail
systems are much more likely to attract the company-headquarters-type
opportunities like what we’re trying to attract in Hampton Roads," he said.

Plans for a light-rail
station near York Street in Norfolk were key to Kotarides Developers’ decision
to build the Belmont at Freemason apartment complex at the corner of York and
Duke streets, said Pete A. Kotarides, a partner in the Virginia Beach-based
firm.

"The parcel was really
narrow. It wasn’t an easy site to work with," Kotarides said. "Because light
rail was there, it was worth the effort. If it was just some random site, we
probably would have been a lot less interested. Having light rail there moved
that location to the top of the list."

The question of whether
to build near light rail hinges on more than the line itself, said Michael
Barrett, CEO of Virginia Beach-based developer Runnymede Corp.

"Just because you have a
light-rail line coming within a half-mile of your property doesn’t mean you can
throw up any multi-use building and it’ll be a success," Barrett said. "No one
factor ever determines whether a real estate project will be a success, but
having access to light rail and roads increases the chances of success."

Economic development
officials have other arguments for trying to lure transit-oriented
developments, he suggested.

"There is a good reason
that the old suburban model doesn’t work," Barrett said. "On one hand, we’ve
seen the suburban ‘McMansions’ fall in popularity. The market for those has
fallen apart. The second issue is that younger people increasingly seem to
prefer closer urban neighborhoods."

Harris, Virginia Beach’s
development director, doesn’t expect all developers in Hampton Roads to catch
on right away.

"I think it’s been more
of an education process to bring about a shift in a developer mindset," he
said. "There’s still a mentality around for more of a suburban development
scheme rather than an urban scheme."

Harris said successful
high-density developments like Town Center in Virginia Beach help economic
officials make the argument to developers.