Racine, WI Market Analysis
Market analysis and funding strategies for a neighborhood master plan.
The Need
The City of Racine identified the desire and need to replace their local outdated and underperforming community center. This led to the need for a redevelopment master plan for the 900-1100 blocks of Dr. Martin Luther King Drive between Hamilton Street and State Street. Phase I includes the construction of 25,000-35,000 square foot Federally Qualified Health Center (FQHC) and a new community center. Construction costs are estimated to exceed $65 million.
Redevelopment Resources conducted a market analysis and developed funding strategies for the developments within the area master plan. Taxable residential and commercial development in the surrounding neighborhood was the focus of this market analysis as well as household growth, income, and employment.
Highlights
Market-rate multi-family housing has not been developed in the City of Racine for quite some time. As many as 182 multi-family housing units per year over the next four years could be built to satisfy the growth potential of the City. However, City staff and leadership believe that significant incentives would be required to entice development of this type. Our analysis determined that there would be little increment remaining to contribute to the public portion of the project. Therefore, Redevelopment Resources recommended the City encourage market-rate multi-family housing in future phases of development. As a component of the transformative development planned for Lincoln-King Neighborhood, such development would add vibrancy to the neighborhood. It would replace the current Community Center and generate a contributing, high-impact, tax-paying development. Additional recommendations included strategically incentivizing infill development on single-family parcels when they became available.
Impact
The City moved forward with plans for the FQHC and Community Center sans a residential component. They were granted a $20M Healthcare Infrastructure Capital Investment Grant and a $15M Neighborhood Investment Fund Grant by the State of Wisconsin for the project.
Smithgroup was awarded the architectural and engineering services contract for the clinic and community center in September of 2022.
Related Projects
Development Strategy
Re/development Strategy