June 16, 2011
ULI’s sold out luncheon event, Growing North: Opportunities and Challenges on the Expanding Northern Edge of Houston, had us buzzing over here at REDNews after hearing what each speaker had to say. Jon Lindsay, President of the North Houston Association, moderated the event
Charles Savino, Executive Vice President of CDS Market Research, spoke first. Savino discussed his forecast predictions regarding the Houston area’s projected population and employment growth. Overall, he believes that the North, West, Southwest, South, East, and Central areas will all see an increase in population and employment. Savino believes that the area will grow from a current population of 5.5-6 million residents to a staggering 10 million by 2030.
David Gornet, Executive Director of the Grand Parkway Association, outlined details concerning two major construction projects. The Grand Parkway Association is currently taking bids for their first project, a $350 task with a projected completion date of 2013 which will connect I10 to 290, allowing drivers to drive from 59 to 290. The 2nd project, a whopping $1.6 billion venture, will connect 290 West of Fairfield to 249 to I45 N to 59N and is slated for completion in 2015. TXDOT is currently looking for private investors to partner with them in funding the $1.6 billion project.
Keith Simon, SVP and Director of Development for CDC Houston, a subsidiary of Coventry Development Corporation New York, gave a detailed breakdown of the development of a new, master planned community, Springwoods Village, on 1,800 acres located along Interstate 45 approximately 30 miles north of downtown Houston and adjacent to the new Exxon site. The land, which was purchased in the 1960s, has been being developed with 6 principles in mind.
1) Create a vision for a mixed use, master planned community
2) Launch when anchored for employment use
a. They start with the residential, then expand when able to employ and create office and retail spaces.
3) Implement an infrastructure with a tax-exempt public use vehicle, i.e. a management district
4) Connect with high quality land builders who are willing to build specific projects within specific time frames in order to enhance the value of remaining land
5) Establish many public and private partnerships.
6) 90% of the community is built by land sells to others. 10% of the community will be built by the developers or through land donations specifically for civic facilities.
Simon also outlined 3 main reasons as to why the land is just now being developed.
1) It is an in-fill site
2) The Grand Parkway is moving forward, providing excellent regional connections.
3) The area growth is strong and there are high demographics which support the decision for now being the time to develop the land.
Springwoods Village is expecting 12-15,000 residents to live in the 4.5-5000 proposed residences. 35-50,000 people are also envisioned to work in the proposed 8.5 million square feet of office space within Springwoods Village boundaries. Springwoods Village falls within Spring ISD & Klein ISD; conversations with the 2 school districts has resulted in Spring expressing that they would need to build a school within Springwoods Village and Klein saying they don’t see the need to construct a school just yet. Coventry has also worked with the City of Houston on designating certain areas for fire/police/and EMT stations for Springwoods Village. Coventry has also said they will set 150 acres specifically for a nature preserve.
Several statistics detailing the economic impact of Springwoods Village were also presented by Simon.
- The build out will last 15-20 years and during these years there will be:
o $10 billion produced in gross products
o Creation of 100,000 construction jobs
o $143 generated in local revenues
- After Springwoods Village is built up there will be:
o $7.5 billion produced in gross products
o Creation of 50-80,000 jobs
o $4 billion in property value
o $450 million in local revenues
o $600 million in total state revenues
Posts
