City Council Agenda and Packet 2013 05 07 - PG 113 - ATTACHMENT #4

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Economic and Market Assessment City of Louisville, CO We recommend that the Colorado Technology Center retain its current Planned Industrial zoning designation, and that light industrial/flex/tech uses be directed to there. With regard to the former Conoco Phillips Campus the open space park-like development has the potential to become a hallmark of green design, and should Louisville's image as an environmentally responsible and sustainable community. Conventional Office Louisville's highest concentration of for-lease office space is located in Centennial Valley. Based on land use breakdown data provided to TischlerBise by the City, we estimate that as much as 420,000 square feet out of a total of approximately 1.3 million square feet (which could include some public and institutional uses) currently stands vacant, a roughly 33 percent vacancy rate. Consequently, Louisville's challenge in the months or years to come will be to fill the vacant office space it presently has, which will suppress the demand for new office building construction. At such time as the occupancy rate in Centennial Valley rises to a reasonable level, such as 12 to 15 percent for instance, renewed activity in Centennial Valley, and even in the Highway 42 Revitalization Area, should surface. Louisville's Business Retention and Development office and professional real estate community work hand in hand to attract business to the City. As the local economic conditions improve, their efforts should start to bear tangible results. The City may want to reconsider allowable land uses in Centennial Valley as an economic development initiative, as discussed below. Centennial Valley Rezoning Underutilized and vacant land in the Centennial Valley Business Park should be considered for rezoning to a mixed-use overlay or mixed-use residential, similar to the Highway 42 Revitalization Area. This is an idea that was publicly supported in the charrette conducted in August, 2012, and one that has the potential to reactivate an area that is struggling with high vacancies and general inactivity. Of the roughly 2.85 million square feet of building area in Centennial Valley, 45 percent is office/commercial/public/institutional, 18 percent is retail/food & beverage/entertainment, 9 percent is hotel, and 8 percent is residential. Of the 360 acres of land in Centennial Valley, 126 acres remain to be developed. Higher density multi-family with provisions for subsidiary commercial uses could actually stimulate the attraction of small- to medium-format (500-25,000 square feet) retailers to the area. Indeed, national chain grocers and pharmacies have developed business plans to capitalize on urban revitalization trends, which specify locating in residential mixed use environments. A mixed use environment could also be more attractive to potential office building tenants by offering more in the way of amenities to daytime workers. 37