Market Analysis | Financial Analysis
Public Strategies | Mixed-Use | Downtown Revitalization
Urban | Downtown
The Challenge
RCLCO has a thirty+ year history of working with River City Company (“River City”), the economic development engine for Downtown Chattanooga, to drive the economic and physical revitalization of their downtown. Since RCLCO’s last Downtown Chattanooga market study and strategic plan in 2013, the market has flourished and much of the market potential described in the original study’s findings has been realized throughout Downtown today. The City has a meaningfully stronger economy than it did a decade ago. However, as development spreads to adjacent urban submarkets, River City wanted to understand whether future redevelopment in these areas would impact the vibrancy and market opportunity within the Downtown boundaries and how to enhance its competitiveness. RCLCO was engaged to take a fresh look at the market potential for Downtown Chattanooga, as well as for two sites that, if strategically redeveloped, could greatly benefit Downtown and the greater community.
Solution
RCLCO analyzed the recent performance of the Downtown market, the future demand by land use, and the competitive positioning of each neighborhood within Downtown to capture that activity. Our work included an analysis of economic and demographic forces, such as employment trends and household and population growth trends, that were likely to influence future development, as well as interviews with local market participants to gain insight into the general market performance for the different land uses. These findings were then used to identify critical success factors to sustain and enhance downtown’s success. RCLCO also utilized the market analysis to determine the highest and best use of two specific redevelopment sites in Downtown. RCLCO’s recommendations for each site were supplemented by residual land value analyses to ensure they were feasible and attractive to developers, as well as an estimate of the public return on investment generated by net new tax revenue from the redevelopment.
Impact
RCLCO’s study of the market potential for Downtown Chattanooga uncovered compelling opportunities to further enhance the current mix of uses, including strong support for new residential development. These findings are currently being used by River City to inform the long-term vision for future development in Downtown, by local developers to attract capital to their projects, and by the City as they revise their downtown zoning. Following our work with River City, RCLCO began working with the Regional Planning Authority on similar analysis to drive their comprehensive plan.