April 26, 2010 PC Informational Presentation...

VERIDIAN HOMES, LLC 6801 South Towne Drive Madison, WI 53713 Phone 608.226.3100 Fax 608.226.0600

www.veridianhomes.com

To: Plan Commission Members

From: Grandview Commons Design Team

CC:

Date: Friday, April 23, 2010

Re: Grandview Commons Grocery Store Informational Presentation

Thank you for the opportunity to present, for informational discussion, the preliminary concepts for the integration of a grocery store within the Town center of Grandview Commons. After 10 years of implementation of the neighborhood it became apparent that having an anchor use was critical to achieving the walkable town center envisioned by the project. The concept presented for discussion balances the needs of the project, the walkable mixed use character of the town center, and strives to maintain the vision of the overall neighborhood; while providing a critical spark of activity to move the Town center from concept to reality. The plan commission presentation represents the first of several meetings to help gather information regarding the opportunities and challenges for the neighborhood, city, and developer and we welcome the chance to discuss the project with you and the neighborhood. The following information reflects some background and comments received to date regarding the project: HISTORY: Grandview Commons was designed in 1999 as Madison’s first new traditional neighborhood development (TND) and has been undergoing construction over the interceding years. The town center, envisioned as the active heart of the neighborhood was designed to meet the daily needs of residents in a walkable urban framework featuring a mix of residential, civic, and retail uses. The neighborhood was designed and implemented by Veridian Homes, then Don Simon Homes, in concert with Vandewalle & Associates and D’Onofrio Kottke; the same team that is guiding the development of the grocery store project. Developed well before any discussions of the Zoning Code Rewrite, this neighborhood was entitled using the Planned Unit Development: General Development Plan zoning (GDP). The GDP was developed to guide building placement, use, and size of tenant space and included up to 150,000 square feet of commercial and 225 residential units for the mixed use area. The Doric Lodge site was not included in the original design due to separate ownership.



TODAY: Veridian has been diligently working to implement the town center in keeping with the goals of the original vision. The first buildings built along Sharpsburg and North Star Drive contain all of the aspects of the walkable pedestrian scale and currently houses the Jovian Tap House and Dr. Stacey Dental offices. The space formerly occupied by the Latte Da coffee shop is currently vacant. Two additional buildings were designed and approved in 2004 and 2007, but have not been constructed due to lack of leasing interest. Overall, the neighborhood has undergone continuous updating and revising of the GDP document in response to market conditions, lessons learned, and changes to the design. Veridian’s purchase of the Doric Lodge property created an opportunity to extend the mixed use area and has led to the potential integration of the grocery store use. FREQUENTLY ASKED QUESTIONS: Why an anchor use? The town center was based upon a walking model; however, commercial leasing is driven by two factors: rooftops and exposure. The neighborhood itself cannot hold enough households to drive the retail uses alone and as such the town center was carefully cited to be accessible to the residents of the neighborhood and surrounding region. While the placement of the town center anticipated hosting off of the exposure along Cottage Grove Road, ten years of aggressive marketing identified that the site lacked a key ingredient that would give it a competitive edge against other sites in the general Madison market: an anchor. This is similar to the experience Middleton Hills, a nearby TND located in Middleton Wisconsin, faced while working to implement their town center. Prior to the redesign of the Town center, Middleton Hills attempted to implement their project without an anchor, and without success; including a failed attempt at a small scale corner store. Only after the Copps Grocery store was added did the project achieve the momentum that has led to the successful creation of the town center, now nearing build out. The original Grandview Commons town center design called for a 25,000 square foot anchor store. Veridian has spent the last 10 years trying to identify and attract a retailer at that size for the location. After conversations with close to 50 different potential anchor retailers, it is clear that market realities dictate the need for a larger footprint in order for a retailer to be viable in this location. Veridian purchased the Doric Lodge property to extend the mixed use area and attract the necessary anchor tenant for the project. Why 62,000 square feet? Neighborhood centers historically contained all of the daily needs of the area residents, including groceries. The concept and scale of a town center has not changed. The nature and scale of groceries has shifted to supplying greater diversity of products and more prepared food options; along with the need to accommodate parking. While 25,000 square feet was once deemed economically viable, today’s grocery stores are significantly larger, ranging from 50,000-200,000+ square feet. Stores smaller than this range are now only found in self contained markets with limited competition (small towns), convenience store/gas stations formats, (PDQ, Kwik Trip, etc.) or specialty higher priced retailers (Trader Joe’s, Brennan’s, etc.).



In the latter part of 2009, Roundy’s Corporation indicated an interest in developing a Copps grocery store at the Town center site and serving as an anchor for the development. Roundy’s Corporation has indicated that a store size of 62,000 square feet is necessary in order for the store to be viable and adequately serve all of the needs of the surrounding community. We understand that going from 25,000 square feet to 62,000 square feet is a significant change to the concept, but it is important to consider the following:

• The original General Development Plan for the site called for 150,000 square feet of retail space at the Town center. With the addition of the Doric Lodge site we have significantly increased the amount of land for the site and, excluding the library, we have only increased the total retail space for site by 18,000 square feet.

• 25,000 square feet is not a viable option for an anchor store on the site. Veridian has tried to attract a specialty retailer to the site for the past 10 years with no success. No specialty store has found the location to be suitable. Neither Trader Joe’s nor Whole Foods view the Grandview Commons Town center site as a viable location for their operations. In fact, the approved but withdrawn Whole Foods along University Avenue was designed for 55,000 square feet.

• To be competitive in today’s market, a grocery store must be large enough to offer a reasonable variety of quality products at affordable prices in order to attract customers. 62,000 square feet represents the typical norm for modern grocery stores. For comparison, Sentry at Hilldale recently expanded to 60,000 square feet in order to remain viable and meet the needs of consumers in that area.

What about Traffic? As mentioned above, the Grandview Commons Town center has always been envisioned as a walkable commercial space for the neighborhood. We believe that the current design provides the neighborhood with a walkable retail development, but we also understand that any commercial development will need to balance vehicular access with walkability. The proposed development addresses the various issues associated with traffic at the site by:

• Designing neighborhood streets that discourage cut through routes. The traffic circulation design facilitates local resident access within Grandview Commons, but encourages regional traffic to utilize the access points from Cottage Grove Road. As the local traffic currently exits the neighborhood for grocery shopping; the integration of the grocery store does not significantly increase traffic on local routes and strives to discourage any regional traffic cutting through the neighborhood with multiple access points along the Cottage Grove Road Frontage.

• Adding bike paths and sidewalks to interconnect the pedestrian grid through the site and beyond to the residential areas, parks and adjoining commercial spaces.

• Separating customer and truck traffic. There will be no through truck traffic for the grocery store on residential streets.

• Limiting delivery traffic to store hours. This will not be a 24/7 Copps location and deliveries will occur only during store hours and no times will be earlier than 7:00 am or later than 10:00 pm, per the Big Box Ordinance.



What about the Library? The Grandview Commons Library site has been dedicated to the City and is anticipated to begin construction in 2013 and Veridian Homes has been working diligently with the Library Board to keep the project on track. The Library Board on April 5th voted to support revisions to their parcel to accommodate the grocery store proposal, citing the benefits of the stores compatible use, implementation of the infrastructure (parking, drives, and utilities) and other agreements which supported the goal of implementing the Library on-time and with significant cost savings. What about the Process? Monday’s presentation is one of many opportunities where the design team is seeking public input. We anticipate several more neighborhood meetings, small group meetings, and information exchanges in addition to the public hearing process associated with all zonings and plan revisions. We take this responsibility seriously and look forward to lively discussions at all points of the project and are in no way attempting to fast-track or short-cut the process.

North

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Grandview Commons Madison, Wisconsin

Garden Homes (45’x80’) Cottage Homes (37’x95’) Village Homes (45’x95’) Village Homes II (59’x90’) Courtyard Homes (75’x95’)

Twin Homes Condo/Apartments Neighborhood Center Residential Neighborhood Center Mixed Use Parks & Open Space Stormwater Management

Illustrative Plan Single Family (Alley Loaded)

Multi-Family

Single Family (Front Loaded)

Ridge View Homes (59’x85’) Manor Homes (69’x100’) Estate Homes (95’x130’)

Modified: 2.24.10

2010

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North

0' 200' 100' 400’

Grandview Commons Madison, Wisconsin

Garden Homes (45’x80’) Cottage Homes (37’x95’) Village Homes (45’x95’) Village Homes II (59’x90’) Courtyard Homes (75’x95’)

Twin Homes Condo/Apartments Neighborhood Center Residential Neighborhood Center Mixed Use Parks & Open Space Stormwater Management

Illustrative Plan Single Family (Alley Loaded)

Multi-Family

Single Family (Front Loaded)

Ridge View Homes (59’x85’) Manor Homes (69’x100’) Estate Homes (95’x130’)

Modified: 2.24.102010

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April 26, 2010 PC Informational Presentation...

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