Walkable communities - Mix Use - Answer to Garrett's Question

[Brad]

Garrett asked this question earlier last week, but it was a complex question that I have not had time to answer properly. Omaha Cowboy and I actually discussed this subject tonight over a beer.

Not defending anything he’s saying, but you can build new walkable communities, it’s just that zoning laws tend to forbid them. Check out the Grove in Covington, Georgia as a nice example.

I could list several reasons why that development would not happen in Omaha, but zoning wouldn't be one of them. There are enough special districts and overlay districts where I'm sure you could get it approved.

Also curious on your perspective on why it wouldn’t happen. Cultural things? Finances?

Short answer why this couldn't happen here................................ Time!

Culture is a problem, but not why you think.

Finance is a problem, but not why you think.

As Omaha Cowboy summarized our conversation tonight = "These cakes need time to bake"

Think of the walkable mixed use neighborhoods... Benson, Dundee, Old Market. The two things they all have in common are Old (Time) and mostly local businesses...

Even Countryside Village is "old" and all local businesses. 20 years ago, Starbucks came to Countryside Village, but they would never do that in 2024.

So here is the problem:

If you were a local developer and found a great piece of property you wanted to turn in to a true walkable mixed use development like the "Grove in Covington, Georgia", you would most likely need someone to finance the project. Fairly quickly the financing person (Bank or Investor) would want to see returns on their investment. With current interest rates, that's quite the monthly payment on any decent sized project. So you basically have the "bank" wanting you to sell/lease your lots ASAP.

A quick sell/lease would be to a national developer or national real-estate agent. However they want to take your tree lined boulevard and substitute it for a drive-thru and "X" number of parking stalls at the front door. They want to make sure the front door is facing the busiest street with the sign high enough in the air for "everyone" to see.

To get the local developers vision to completion would take so much time, time most investors are not going to give them.

Like I said earlier in the post, the great walkable neighborhoods are mostly local businesses. However these new areas are too expensive for local businesses.

Most of the local Municipalities do some things really good and some things really bad. Unfortunately ANY delay in a project costs time, which is money (Interest), which raises the price for the end user. Some of our local municipalities think its no big deal to delay a project a couple months, but that could be thousands of dollars in interest payments to developer trying hard to stay in the green. Also, OPPD and MUD can also delay projects which costs the project.

In summery, I think the culture of the Omaha public really wants these mixed use projects. I think the City of Omaha and most suburban cities really wants these projects. But I think all the logistics in the middle really ruin most of these true mixed use projects. I don't think most people see all the complexities in these project. I don't think people like Mayor Stothert in Omaha, or Mayor Black in Papillion, or Mayor Evans in Gretna understand how easy it is for a single city employee to cost a development tens of thousands of dollars by a single decision. There is so much grey area that they cities need to me less Black and White... Regulators need to be more fluid with the decision making process to keep the overall project moving forward. Cities need to be a partner not a road block...

In today's business climate, these true walkable mixed use neighborhoods are not going to be successful with national retailer, they need to do everything they can to make attractable spaces for local retailers.

Hopes this makes a little sense...

[Garrett]

If the primary concern is the desire for local businesses but the rent is too high, I think Omaha does have a lot of strong local businesses with good amounts of capital that could anchor a mixed use walkable development like this. Flagship naturally comes to mind. Stories Coffee comes to mind. Coneflower is up there. Maybe even another Utterback restaurant.

What makes Covington, Georgia different from Omaha in this case? heck, as we’ve now discussed in the other thread, Greta has released a fairly ambitious multi-modal plan for the Crossing area. Is that plan unworkable?

[Brad]

I don't know if the desire is necessarily for only local businesses, its just what happens when you set standards that are tougher than the national companies want to deal with.

I'm not sure what makes Covington different, I just know why several mixed use projects in Omaha have never got off the ground or why some have slowly morphed in to suburban/car oriented developments over time.

[Garrett]

I don't know if the desire is necessarily for only local businesses, its just what happens when you set standards that are tougher than the national companies want to deal with.

I'm not sure what makes Covington different, I just know why several mixed use projects in Omaha have never got off the ground or why some have slowly morphed in to suburban/car oriented developments over time.

That’s fair! I remember the early days of the forum when there was some “traditional” neighborhood being pushed up on State that went nowhere, and now the very slow process of Heartwood Preserve. But looking at generational trends, millennials, and even more so Gen Z, are seeming increasingly car averse in ways that may make more walkable neighborhoods in the suburbs a greater reality in the future. I think the Gretna Crossing plan is a sign of shifting trends, but it’ll also take good execution. I’d have to do a dive to see what made Covington work as well.

[GenX]

Not sure it’s quite an apples to apples comparison, but I thought the Prarie Queen development was intended to be a car free community. I dropped a rider off the last night and there wasn’t a single parking space on the streets available. Both sides jam packed with only enough room for one car to drive through. These properties do not have garages or off-street parking.