Transit-oriented development (TOD) is the creation of places that bring together a variety of higher density buildings, and a mix of uses, often including
residential, commercial and open space that are served by alternative transportation modes with an emphasis on mass transit. Successful TODs are more than a collection of buildings near a transit facility. They are vibrant centers of activity, with amenities and a clear sense of place, and will often have an organizing principle, such as a central open space or a gateway, that make them special areas.
The following guidelines for developing TODs in Petaluma are based on work done by the Urban Land Institute (ULI) and our experience planning and developing TOD projects in various cities.
Develop a vision. Developing a TOD requires a clear vision to guide development and to shape the sense of place created in the TOD. The vision should clearly articulate how the TOD will be connected with adjacent areas and the role that the TOD will play within the city.
Consider the market. TOD needs to be market-driven and transit-enhanced. A transit stop alone is not sufficient for stimulating TOD. There must be a market or the strong potential to create a market for the mix of uses—retail, housing, office, and other uses that comprise the TOD.
Plan for a mixture of uses. TODs provide greater potential for a mix of uses, both vertically and horizontally (including open space), and for a mix of incomes in residential elements. The transit component is woven into the fabric of TODs, creating opportunities for well designed higher density buildings, which benefit from the pedestrian traffic generated by both the uses on site and the access provided by transit.
Create transit connections within the city. Transit connections should connect the TOD with transit in greater Petaluma, as well as connecting Petaluma to the greater Sonoma and Marin County region. Successful TODs require strong connections to transit and alternative modes of transportation with other higher density residential and/or commercial areas within the City. Transit between these areas should be reliable and, preferably, frequent. These connections can be made by rail transit or with a well-programmed bus system that uses quality vehicles and has a regular schedule.
Form public private partnerships to implement TOD. Partnerships between private and public sectors are fundamental to achieving the TOD vision for several reasons. First, the higher densities developed in TODs are often more costly to develop, especially if the development requires structured parking. In addition, infrastructure in TODs may be more expensive than in other areas because of the need to relocate or bury utility lines and/or the need to limit access to developments to accommodate the transit. Finally, obtaining financing for development in TODs may be more difficult and costly than for other types of development because lenders often view TODs as higher risk developments than in more traditional developments. Providing infrastructure, financing, and land assembly are most effectively done through collaborative public-private efforts as a result of these factors.
Include balanced parking. Parking will remain a critical ingredient on TODs, allowing greater access to the TOD. Successful projects will accommodate a balance of parking—enough to support market viability for the uses in the TOD while factoring in the benefits brought from transit. If economically viable the parking should be in structures, ideally below grade but if this isn’t possible for
environmental or economic reasons, then in structures that integrate other uses.
Design and build sustainable quality. TODs should be special places if they are going to succeed on multiple levels (financial, vibrancy, connectivity, sustainability, etc). The more a community and its developers can devote attention to and invest resources in quality design of sustainable buildings and open spaces, the more special these places can become and the greater receptivity and use they will have for
residents, businesses and visitors.
OPPORTUNITIES FOR TRANSIT-ORIENTED DEVELOPMENT (TOD) The Sonoma-Marin Area Rail Transit (SMART) is a 70-mile rail system being built in
Sonoma and Marin Counties. The system will have 14 rail stations, two of which will be located in Petaluma, with each station accommodating a total of 28 daily train stops.
Petaluma’s SMART stations will be located at:
Downtown Petaluma Station. This station will be located at the renovated historic rail depot, adjacent to Lakeville Street, between East Washington and East D Streets.
This station will provide easy access to the Turning Basin, as well as the downtown area. It is also located near the new Copeland Street Transit Mall. SMART owns the 4.7 acre site adjacent to the station and which will become a pivotal parcel in the TOD.
Corona Road Station Area. This station will be located in northeastern Petaluma, near Corona Road and North McDowell Boulevard. The proposed station site is a 7-acre parcel which SMART is currently seeking to acquire and will be primarily devoted to a park and ride component for the foreseeable future.
CENTRAL PETALUMA STATION AREA
Development around the Downtown Petaluma Station and Copeland Street Transit Mall presents opportunities for catalyzing development on vacant and underutilized sites around the transit facilities. Figure 1 shows the location of the Downtown Petaluma Station and surrounding area. Coordinated, deliberate planning of these facilities and the adjacent properties will help assure the City a better mix of uses for both horizontal and vertical developments. This approach can help the City achieve a broad cross-section of community goals, such as providing housing for households with a range of incomes, easier access to jobs and shopping and more mobility options. A deliberate approach to planning
development within this TOD can increase the likelihood of retail and other uses that will both support capturing a greater market share and complement downtown uses, rather than competing with downtown.
TOD DESIGN
Development of the SMART site can better serve urban, economic and community development interests by optimizing connectivity and fostering high quality, sustainable design for residential, commercial and institutional projects as well as open spaces. Together, these elements should create a sense of place where people want to be. Creating these opportunities requires special considerations for the design of the TOD area.
Ideally TOD station sites should have an organizing principle, such as a green space, urban plaza, gateway feature, or some other special indicator that announces the site. In Petaluma’s case, the existing historic buildings that serve as the TOD ticketing areas, art center, and visitors’ center can perform this function.
The design and layout of the streets within the TOD are important as well. TOD areas should encourage greater connectivity particularly for pedestrians. This large area, Site 21 owned by SMART, can better address these objectives if it is divided into at least two blocks of about two acres each, with a “complete” street splitting the lots. A complete street
accommodates all users safely and to the extent possible equally and can take many forms including a narrow paved street often with no sidewalks that accommodates slow auto traffic, some on street parking, pedestrians and, bicycles. It can, and usually does include street art of some kind. If possible, this street should continue through adjacent large blocks to the south (Site 22 the Haystack site), creating a strong pedestrian environment on these blocks as well.
This street configuration provides more corners, encouraging more opportunities for commercial success, building and design variety, enhanced pedestrian flow and greater connectivity. Corners are preferred locations for retailers because they are visible and accessible on two street sides. Corner locations for multifamily residential and office uses rent or sell for higher amounts, which can support better designed and more financially successful buildings. In addition, people often like to hang-out or meet one another at corners, particularly if there are dining establishments or cafes associated with the corner.
Buildings within the TOD should be designed to distinguish them from downtown, giving the TOD its own identifying character. To promote connectivity, a strong pedestrian orientation and a more vibrant street presence, buildings should conform to the CPSP SmartCode.
TODs need to reinforce sustainable development for the built environment. The publicly owned SMART site should strive to achieve high standards of sustainability and should explore incorporating features such as distributed energy (e.g., district heating and cooling).
The site is also large enough to accommodate shared structured parking for residential and commercial uses, meeting some of the parking needs of surrounding blocks. Parking should be incorporated into mixed-use structures, if economically viable. The sustainability features could be one of the hallmarks of the entire TOD.
POTENTIAL USES IN THE DOWNTOWN SMART STATION AREA TOD
Uses for both the SMART owned transit site and the Haystack parcel should be planned collaboratively. Their development should be coordinated to optimize market potential, minimize the needs for structured parking (by factoring in shared structured parking alternatives), incorporate complementary design elements, and increase opportunities for open space. Uses on and around the sites could include:
A mixture of multi-family housing types, such as apartments, condominiums and townhomes. These types and unit mixtures should accommodate diverse household incomes and sizes. Consideration should be given to reducing the average unit size which will assist overall affordability as well as energy efficiency.
Retail that provides neighborhood services, should occupy much of the ground floor spaces in the vertical mixed-use buildings. Active ground floor uses are essential in retaining a vibrant environment, offer opportunities to local businesses and
entrepreneurs, and can help the pro formas of many developments. Over time retail and other active ground floor opportunities may include a grocery store, restaurants, fitness center, day care facilities, and small specialty stores. The mix of retailers and other active ground floor uses can help give the TOD a distinct identity that invites visitors as well as serving residents.
The focus or organizing principle of this TOD could be as an arts district that builds on the existing arts center on the site. Potential uses that would complement an arts district could be an arts school, culinary school, music school, arts supply shop, galleries, wine tasting shop, music and musical instrument shop, and other related businesses.
Even if an arts district is not part of this TOD site, art should be incorporated as a feature that helps define the area. It can help to distinguish and celebrate the TOD.
This can be a combination of street and open space art, as well as art that’s incorporated into the buildings.
Institutional uses, such as schools and medical facilities, should be considered as parts of the TOD. People who rely on rail and bus systems will be more easily able to access these services. Developing educational facilities within the TOD, such as community college branches or portions of an elementary or preschool, can reduce reliance on automotive transportation to access these facilities. Any of these uses can be incorporated into the mix of a mid rise building.
The Tourism Analysis (see Appendix V.) suggests that there is potential for a boutique hotel (either free-standing or part of a mixed-use project) within the TOD Since Petaluma is currently underserved by hospitality facilities. Having a hotel on a rail line offers added convenience for visitors to the area and compliments denser urban housing that’s part of and surrounds the TOD.
IMPLEMENTATION PHASING
Using a phased development approach separates project components of the TOD and allows the TOD to evolve at a pace consistent with market demand for various uses and product types so that newly built spaces are effectively absorbed.
The initial phases of development should be focused on the SMART site, as well the
Haystack mixed use site. Key infrastructure improvements (e.g., complete streets, structured parking and utility upgrades) should be designed and implemented to accommodate
development on both of these sites.
These two large sites could be broken up into at least four parcels and be redeveloped in phases. By looking at these two sites comprehensively, public resources can be used to more effectively leverage private investment and influence the types of uses. It also provides opportunities for public input on structured parking, streetscape improvements, open space, and various utilities. These improvements could, through a development agreement with private developers, help leverage greater development densities by removing some of the private costs for these amenities. Better quality, sustainable, denser development could be more profitable for the developers and would generate more taxes and fees for the City, as well as help create a more invigorating environment.
The 7.5-acre site of the Golden Eagle Shopping Center currently houses a cluster of one-story retail. This site could be the next phase of the TOD development. Depending on economic conditions, once the initial phase of the TOD is completed, there may be additional demand for more intensive mixed use development. Sensitive redevelopment of the Golden Eagle site would offer more walkable and enjoyable connections between the SMART and Haystack sites, the River and Turning Basin, as well as Downtown. Depending on timing and market conditions, the Golden Eagle site may lend itself to a mix of uses that includes retail, housing, hospitality and office.
Other parcels in the area (between East Washington and Madison Streets) have a variety of development, including industrial and retail. While these uses can (and likely will) be
redeveloped over time, redevelopment is likely to occur in 7 to 13 or more years. If the City wanted to expedite redevelopment of these parcels it could explore taking options on some of these parcels, or facilitate establishment of a horizontal development entity among the owners, though this may involve tenant relocation expenses and/or lease buyouts.
Development of the other, mostly small, opportunity sites within the TOD is likely to occur as the TOD area builds momentum. Some of the parcels, especially those with approved uses, may develop relatively soon while others may take a longer time to redevelop.
The TOD needs to include more than just the SMART site. The vision for the TOD should integrate potential development on sites adjacent to and within a half mile (about a 13 – 15 minute walk) of the Transit stations. The area with greatest potential for TOD development near the Petaluma Station is located between Lakeville Street and the Petaluma River and between Madison Street and the end of Jefferson Street. This area is about 25 to 30 acres in size.
CORONA ROAD STATION AREA POTENTIAL USES
Demand for TOD at the Corona Road site, beyond the SMART station, may lag until the market for office and residential uses recovers from the current recession. Opportunities for TOD development within the Corona Road Station Area include:
SMART’s current plans for the 7 acre SMART site is to develop a park and ride.
Initially there will be no charge to park here, though SMART intends to monitor activity and over time should assess a parking fee as market conditions change.
The corner of Corona Road and North McDowell Boulevard should have an active use. The most likely prospect in the next few years is retail uses. Over time, as the office vacancy rate in Petaluma decreases, there may be demand for office or mixed use development at this corner.
Potential uses over time, on Site 7 and portions of the SMART site include: a hospitality facility (e.g., a well-designed hotel), vertical light industrial, and/or institutional facilities.
IMPLEMENTATION PHASING
TOD development on the Corona site should occur in phases. The first phase of
development will be as a park and ride. During this phase of development, which may last 10 or more years, the focus in this TOD area should be on absorbing the existing office and industrial space on nearby parcels. Given the extraordinarily high office vacancy rate, some of the existing office space will likely need to be converted to other uses (e.g., hospitality, institutional), at least temporarily, in order to be absorbed.
As office space is absorbed in Petaluma, decreasing the office vacancy rate, SMART should work with the City to craft a redevelopment strategy for the Corona site that brings a mix of uses and structured parking to accommodate both the new uses as well as the park and ride needs. Over time bus service to this area will also increase which should be factored into the redevelopment strategy.
IMPLEMENTING TOD IN PETALUMA
The following section presents TOD development tools that can be used in Petaluma. The list of tools is not meant to be an exhaustive list but to give the City ideas for tools that other cities have used for developing TODs.
COMMERCIAL AND MIXED USE DEVELOPMENT TOOLS
The following list of tools can be used to support commercial and mixed use development within the TODs.
Tax increment financing can be used to assemble land, provide infrastructure improvements that support development (e.g., streets, sidewalks, open space, or parking garages) and low-interest loans/grants to rehabilitate or develop residential, commercial and mixed-use buildings.
Tax credits permit investors to receive a credit against Federal and sometimes state income taxes for making qualified investments in development or redevelopment projects. These tax credits provide equity for the eligible projects which helps to finance them.
HUD Section 108 Loan Guarantee Program is a source of subordinated low-interest loans for economic development projects.
Expediting permits for projects that meet or exceed City specific objectives, such as sustainability, job creation of family wage positions, or other objectives. The City would need to work with private developers to agree on these standards.
Sole source impact fees would allow impact fees from a project area to be reinvested within that area to reduce the cost of key infrastructure improvements needed to facilitate additional development in the area.
Land write-downs on parcels owned by SMART or the City can reduce the sales price or ground lease rates and encourage a greater mixture of uses on publicly owned land owned.
Revenue bonds can be used to pay for some development costs. These bonds can include 63-20, 501c3, and parking revenue bonds.
− 63-20 bonds can be used to pay for up to 100 percent of development costs of projects that have at least 90 percent public uses, including medical, educational,
and government facilities. The cost of land acquisition can be included in the bonded amount, assuming that there is revenue from the development to service the dept incurred.
− 501c3 bonds are similar to 63-20 bonds but are available only to eligible non-profit organizations.
− Parking revenue bonds can only be used to build public parking structures. They can be worked into private projects through partnership agreements, where a portion of the parking is available to the public.
Local tax policy changes provide opportunities to raise revenue in support of TOD. Examples of potential changes to local tax policies include increasing transient occupancy tax.
Options for land or building acquisition allow the redevelopment agencies or the
Options for land or building acquisition allow the redevelopment agencies or the