HomeMy WebLinkAboutORD 83-37 ORDINANCE NO. F3 - 3 7
ENTITLED AN ORDINANCE APPROVING THE PROJECT
PLAN FOR REINVESTMENT ZONE NUMBER ONE, CITY
OF BEAUMONT, TEXAS; AND PROVIDING FOR
SEVERABILITY.
WHEREAS, on December 7 , 1932 , the City Council of the City
of Beaumont ( the "governing body" ) adopted ordinance No. 82-132
which created Reinvestment Zone Number One, City of Beaumont, Texas
( the "Zone" ) pursuant to the provisions of Article 1066e , Vernon' s
Texas Civil Statutes ( the "Act" ) ; and ,
WHEREAS, the board of directors of the Zone has prepared
and adopted a project plan for the Zone and has submitted the
project plan to the governing body for its approval, as provided in
Section 8 ( a) of the Act; and,
WHEREAS, the project plan for the Zone includes a
statement listing the kind, number, and location of all proposed
public works or public improvements in the Zone; an economic
feasibility study; a detailed list of estimated project costs; a
description of the methods of financing all estimated project costs
and the time when related costs or monetary obligations are to be
incurred; a map showing existing uses and conditions of real
property in the Zone; a map showing proposed improvements to and
uses of real property in the Zone; proposed changes of zoning
ordinances, the master plan, building codes, and city ordinances; a
list of estimated nonproject costs; and a statement of a method of
relocating persons to be displaced as a result of implementation of
the plan; and,
WHEREAS, a copy of the project plan is attached hereto as
Exhibit "A" ;
NOW, THEREFORE, BE IT ORDAINED
BY THE CITY OF BEAUMONT:
Section 1 .
That the project plan for Reinvestment Zone Number One,
City of Beaumont, Texas, as prepared and adopted by the board of
directors of the Zone, a copy of which is attached hereto as
Exhibit "A" and incorporated herein for all intents and purposes, is
feasible and in accordance with the master plan of the City of
Beaumont, and that said project plan is hereby adopted.
Section 2 .
That if any section, subsection, sentence, clause or
phrase of this ordinance, or the application of same to a particular
set of persons or circumstances, should for any reason be held to be
invalid, such invalidity shall not affect the remaining portions of
this ordinance, and to such end the various portions and provisions
of this ordinance are declared to be severable.
PASSED BY THE CITY COUNCIL of the City of Beaumont this
the /c day o f7^c. 191F3
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PROJECT PLAN
DOWNTOWN BEAUMONT
REINVESTMENT ZONE
City of Beaumont
Planning Department
March, 1983
CITY COUNCIL
BEAUMONT, TEXAS
William E. Neild, Mayor
Evelyn Lord, Mayor Pro Tem Joseph Deshotel, Ward III
Bill Cox, Ward I Wayne Turner, Ward IV
BOARD OF DIRECTORS
DOWNTOWN BEAUMONT REINVESTMENT ZONE
Wilton White, Chairman
Yvonne Craig Ed Edson, III
Murry Frank Richard LeBlanc
William Phillips, Jr. Bill Wilson
TABLE OF CONTENTS
PART PAGE
1 INTRODUCTION 1. 1
Overview of Tax Increment Financing. . . . . . . . . . . . . 1. 1
Location and Boundaries of the Reinvestment
Zone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 3
Relation of Reinvestment Zone Plan to Other
LocalPlans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 4
2 ISSUES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . 1
3 INVENTORY AND ANALYSIS 3. 1
Existing Land Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 1
Intensity of Development. . . . . . . . . . . . . . . . . . . . . . . . 3. 5
Building Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 5
RecentDevelopment Trends. . . . . . . . . . . . . . . . . . . . . . .3. 8
Historic/Architectural Inventory. . . . . . . . . . . . . . . . 3. 10
Office Buildings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 14
RetailTrade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 15
Parking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 19
OpenSpace Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 21
Vehicular Circulation. . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 24
Economic Feasibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.27
Development Potential. . . . . . . . . . . . . . . . . . . . . . 3. 27
Projected Tax Increment Revenues. . . . . . . . . . . 3. 31
4 DEVELOPMENT PLAN 4. 1
Development Objectives. . . . . . . . . . . . . . . . . . . . . . . . . . 4. 1
LandUse Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 4
Proposed Development Concept. . . . . . . . . . . . . . . . . . . . 4. 5
PublicImprovements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 7
Proposed Changes to Official Plans &
Ordinances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 20
5 IMPLEMENTATION TOOLS 5. 1
Central City Development Corporation. . . . . . . . . . . . 5 .2
Urban Development Action Grants. . . . . . . . . . . . . . . . . 5. 3
Community Development Block Grants and
"Section 108" Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 4
Investment Tax Credits. . . . . . . . . . . . . . . . . . . . . . . . . . 5. 5
Texas Industrial Development Bonds. . . . . . . . . . . . . . 5. 6
Tax Increment Financing and Tax Abatement. . . . . . . 5. 7
LIST OF FIGURES
FIGURE # PAGE
1 Location Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 5
2 Reinvestment Zone Boundaries. . . . . . . . . . . . . . . . . 1. 6
3 Building Location Key. . . . . . . . . . . . . . . . . . . . . . . . 1. 7
4 Existing Land Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 2
5 Building Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 6
6 Vacant Buildings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 7
7 Building Conditions (by block) . . . . . . . . . . . . . . . 3 . 9
8 Development Trends. . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 11
9 Historic and Rechitectural Resources. . . . . . . . . 3. 13
10 Retail Sales in the CBD as a Percent of
Total Retail Sales (1958-1977) . . . . . . . . . . . . . . . 3. 16
11 Percentage Change in Retail Sales Between
1958 and 1977 (constant dollars) . . . . . . . . . . . . . 3. 17
12 Off-Street Parking (by block) . . . . . . . . . . . . . . . . 3 . 20
13 Open Space Resources. . . . . . . . . . . . . . . . . . . . . . . . . 3 . 22
14 Major Streets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 25
15 Traffic Counts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . 26
16 Proposed Land Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 4
17 Development Concept. . . . . . . . . . . . . . . . . . . . . . . . . . 4 . 5
18 Proposed Public Improvements. . . . . . . . . . . . . . . . . 4. 8
19 Downtown Market Place Site Plan. . . . . . . . . . . . . . 4. 10
LIST OF TABLES
TABLE # PAGE
1 Existing Land Use. . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . 3
2 Number and Distribution of Retail
Establishments (1958-1977) . . . . . . . . . . . . . . . . . . 3. 18
3 Projected Revenues, Tax Increment Zone:
Projection #1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 32
4 Projected Revenues, Tax Increment Zone:
Projection #2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 33
5 Projected Revneues, Tax Increment Zone:
Projection #3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 34
6 Projected Revenues, Tax Increment Zone:
Projection #4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 35
7 Estimated Costs of Public Improvements. . . . . . 4. 9
8 Downtown Market Place Parking Areas :
Estimated Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 12
9 Downtown Market Place Public Plaza:
Estimated Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 14
10 Crockett Connector: Estimated Costs. . . . . . . . 4. 16
11 Tyrrell Historical Library Renovation:
Estimated Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . 17
12 Computerized Traffic Signal Improve-
ments : Estimated Costs. . . . . . . . . . . . . . . . . . . . . 4. 19
PART ONE
INTRODUCTION
The Texas Tax Increment Financing Act of 1981 au-
thorizes Texas cities to use Tax Increment Financing (TIF)
as an urban revitalization tool. Beaumont' s City Council
deisgnated a portion of the city' s downtown area as a
Reinvestment Zone for the purposes of Tax Increment
Financing in November, 1982 , and appointed a seven-member
Board of Directors to oversee the TIF program.
Among the requirements of the Tax Increment Financing
Act are the preparation and adoption of a plan for the
Reinvestment Zone describing existing conditions and speci-
fying proposed improvements and sources of financing. This
document is intended to meet the legal requirement for a
plan and to provide a unified strategy for revitalizing
the Reinvestment Zone.
Overview of Tax Increment Financing
Tax increment financing is a relatively new approach
to urban development financing, having first been intro-
duced in Minnesota in 1947. California, one of the most
active states for tax increment financing, began its
program in 1952. To date, TIF legislation has been ap-
proved by 37 states. Over 75 percent of these states have
1. 1
adopted their TIF laws since 1975. 1
Tax increment financing is most commonly associated
with programs to correct urban blight and revitalize
central business districts. The locational criteria for
TIF zones contained in the Texas enabling legislation
strongly favor deteriorated areas, sites within or ad-
jacent to Federally assisted "new communities, " and areas
which meet the Federal "distress criteria" for the Urban
Development Action Grant (UDAG) program. 2
Once a Reinvestment Zone has been established under
Texas law and is placed in service, tax increment financing
operates as follows:
First, a tax increment base -- the total appraised
value of all real property within the zone at the time of
its establishment -- is determined. As long as the
zone is legally in effect, taxing entities (city, -ounty,
school districts, and other special districts) receive
tax payments for property within the zone calculated
only on the tax increment base amount. In other words,
1Texas Municipal League, Tax Increment Financing in
Texas Cities, 1982 , pp. 1-3.
2Section 3 (a) , Texas Tax Increment Financing Act,
Article 1066e, Vernon' s Civil Statutes.
1. 2
the appraised value of real property in the zone is
effectively "frozen" for the purposes of general taxation.
At this point, tax exempt Tax Increment Bonds may be
sold to finance public improvements such as streets,
utilities, parking or sidewalks needed to support and
attract privately funded redevelopment projects.
As the value of property in the zone increases in
subsequent years, special taxes based on the captured
appraised vaZue -- the amount in any given year by which
the current assessed value of real estate in the zone
exceeds the tax increment base -- are deposited in the
City' s Tax Increment Fund. The Tax Increment Fund is used
to retire the Tax Increment Bonds. Alternately, the ac-
cumulated deposits in the Tax Increment Fund may be used
to finance public improvements on a "pay as you go" basis.
In California, the state with the most experience =ith tax
increment financing, approximately one-half of the projects
implemented have been financed in this manner.1
Location and Boundaries of the Reinvestment Zone
The Downtown Beaumont Reinvestment Zone consists of
a 30-block area in the Central Business District (CBD) .
1
Texas Municipal League, Tax Increment Financing in
Texas Cities, Austin, 1982 , p.- -20.
1. 3
0-�
Figure 1 shows the location of the zone within the city
of Beaumont. Figure 2 shows the boundaries of the zone
and the surrounding area. The boundaries of the zone
were determined in accordance with State legislative
requirements which limit tax increment zones to blighted
areas, prohibit more than 15% of the total appraised
value of all real property in a city from inclusion in
a Reinvestment Zone and prohibit residential property
from accounting for more than 100 of the zone' s total
area. Figure 3 is a Building Location Key identifying
27 significant buildings.
RELATION OF REINVESTMENT ZONE PLAN
TO OTHER LOCAL PLANS
Two major existing plans are of interest in developing
the Reinvestment Zone plan. The first of these, the
City of Beaumont' s Land Use Plan, is an official state-
ment of goals, objectives, policies and proposals for
guiding Beaumont' s long-range growth and development.
The Land Use Plan proposes making the downtown area a
regional center of banking, professional service, govern-
ment, conventions, tourism and entertainment. Economic
incentives and reduced development regulation are proposed
to give the downtown competitive development advantages.
A second plan, the Central Business District Develop-
ment Plan, was prepared in 1973 by a team of consultants
1. 4
Figure 1
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Beaumont, Texas
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[RENVIEWMEN7 BUILDING LOCATION KEY
1.FEDERAL BLDG.
�011 V 1.SO.PACE C DEPOT 16. PETROLEUM BLDG.
KYLE BLDG 18. 1st. CITY BANK
4.FRIEDMAN BLDG. 17. SAN JACINTO BLDG.
Beaumont, Texas 5. 1st.FEDERAL SAVtNGS 18M E EENCL O;BE HOTEL
4"GOODHUE BLDG. 20.JEFFERSON THEATRE
7. DIXIE HOTEL 21. TYRRELL LIBRARY
8.EDISON PLAZA(GSU) 22. WHITE HOUSE BLDG.
0 100 300 Epp 9.SANTA FE DEPOT 23. TX.STATE OPTICAL
10.STEDMAN BLDG. 24. JULIE ROGERS THEATRE
1,AsE SAVINGS 25. CIVIC CENTER
scale. north 1
12. GILBLBERT RT BLDG. 28.CITY HALL
City,of Beaumont,Texas Planning Department 13. S.W. BELL 27.COUNTY COMPLEX
14.TX. COMMERCE BANK
headed by Gruen Associates, Incorporated. The Gruen plan
was commissioned at a time when the downtown area was
rapidly deteriorating. The downtown plan proposed an
ambitious program of parks, public buildings, street
improvements, office, hotel, residential and commercial
development.
Several major projects proposed in the Gruen plan
have been completed, including Riverfront Park, several
City and County buildings, the Orleans Plaza, and the
Southwestern Bell building. The most notable Gruen
plan project as yet unrealized is the proposal for a
downtown convention hotel.
***********************************************************
The remainder of the Reinvestment Zone Plan is divided into
five major sections:
ISSUES - Major problems and concerns confronting
the redevelopment of the Reinvestment Zone.
INVENTORY AND ANALYSIS. - A compilation of studies
and development information concerning existing
conditions and the future potential of the Reinvest-
ment Zone.
DEVELOPMENT OBJECTIVES - Goals and objectives for
guiding the redevelopment of the Reinvestment Zone.
THE PLAN - Proposals for encouraging redevelopment
of the Reinvestment Zone.
1. 8
IMPLEMENTATION TOOLS - A summary of available
urban redevelopment programs.
1. 9
PART TWO
ISSUES
In order to develop a clear set of priorities for
improvement of the Reinvestment Zone, it is first neces-
sary to identify major policy areas of concern, uncertainty,
or controversy. The following issues are among those
that must be addressed in planning for the revitaliza-
tion of the Reinvestment Zone:
• PARKING: Most types of downtown development
generate sufficient parking demand that off-street
parking is needed, usually in the form of surface
parking lots , but occasionally in the form of multi-
level parking garages. A real or perceived shortage
of parking can decrease the marketability of downtown
real estate.
0 LACK OF PRIVATE INVESTMENT: Most of the major new
downtown construction projects in recent years has
been undertaken by governmental entities and
utility companies. Major new private-sector con-
struction projects have been scarce.
• UNDER-UTILIZATION OF LAND AND BUILDINGS : There is
a high rate of vacancy in downtown buildings and,
similarly, a high incidence of use by marginal
businesses.
2 . 1 /�
• CONVENTIONS AND TOURISM: The Convention Center' s
competitiveness for attracting state and regional
convention trade is hurt by the absence of a down-
town convention hotel.
• IMAGE: In order to attract businesses and consumers
to the central business district, it will be neces-
sary to improve the downtown area' s image. Three
important areas of improvement are:
1) Appearance - Efforts to make downtown more
visually attractive should be included in the
overall revitalization effort.
2) Security - Visitors to the downtown area must
be made to feel safe from the threat of street
crime.
3) Circulation and Parking - Potential users of
downtown facilities should be confident that a
visit to the downtown area will not involve
unreasonable traffic delays or parking
problems.
• POTENTIAL REGIONAL MARKET: The Beaumont Central
Business District has, as yet, only partially tapped
its potential market area of over 375,000 consumers
in the three-county Southeast Texas region. Re-
development of the CBD will enable the city to more
2. 2
fully exploit Beaumont' s geographic and economic
status as a regional center of commerce, entertain-
ment, and professional services.
• ACCESSIBILITY: Downtown Beaumont was laid out
in the early 1800s on the banks of the Neches River.
The city has grown westward ever since. As a result,
the "Central" Business District is not centrally
located. Improved vehicular access to the Reinvest-
ment Zone, particularly for the south and west ends
of Beaumont, will be needed if the redevelopment
effort is to be successful.
2 . 3
PART THREE
INVENTORY AND ANALYSIS
A series of surveys and analytical studies of
existing conditions and development trends was conducted
to provide a data base for the preparation of the Rein-
vestment Zone Plan. The areas of concern studied include
land use, building conditions, recent development trends,
historic buildings, parking vehicular circulation, com-
mercial development trends and markets, open space
resources, and financial feasibility of the Reinvestment
Zone for tax increment financing.
Existing Land Use
A land use survey was conducted by the Beaumont
Planning Department within the Reinvestment Zone and
along its boundaries in January, 1983. Land uses were
recorded using a system of fourteen categories. Vacant
buildings were noted and classified according to the last
apparent use.
The results of the land use survey are shown in
generalized form in Figure 4 . Table 1 shows the tabulated
results of the survey within the Reinvestment Zone.
Not surprisingly, the predominant land uses in and
around the zone were found to be offices, banks, and
3. 1 J,(,
TABLE 1
EXISTING LAND USE
DOWNTOWN BEAUMONT REINVESTMENT ZONE
(January 1983)
% OF
LAND USE ACRES TOTAL
Surface Parking & Vacant 35. 16 39. 51
Parks and Open Space 1. 30 1. 46
Government 2 . 60 2. 92
Quasi-Public . 99 1. 11
Residential . 43 0. 48
Banks 2 . 08 2 . 34
Offices 3. 59 4. 03
Retail and Services 6. 80 7. 64
Heavy Commercial 4. 62 5. 19
Light Manufacturing 1. 05 1. 18
Parking Garages 1. 04 1. 17
SUBTOTAL 59 . 66 67. 04
STREET RIGHT-OF-WAY 29. 33 32 . 96
TOTAL 88. 99 100. 00
3. 3
retail or service outlets. Large office buildings
housing two major utility companies -- Gulf States Util-
ities and Southwestern Bell -- and the Beaumont Enter-
prise/Journal are located just outside the northeastern
edge of the zone. The southeastern portion of the Rein-
vestment Zone is dominated by city government facilities,
including the Convention Center, the Julie Rogers Center
for the Performing Arts, and the Tyrrell Library. These
facilities combine with the City Hall, the downtown
Public Library, the Municipal Court/Police Station, and
the Jefferson County Courthouse to form an eight-block
City/County complex. The recently completed Riverfront
Park is located adjacent to the Reinvestment Zone on a
five-acre tract between the City government complex and
the Neches River.
The central portion of the Reinvestment Zone is
dominated by banks, retail and service establishments,
and major office buildings.
The only residential properties in the Reinvest-
ment Zone are the Beaumont Retirement Hotel at Orleans
and Fannin and a few small, frame single-family residences
located near the intersection of Trinity and Forsythe.
A Texas State Optical manufacturing plant is located
at Pearl and Forsythe Streets.
3. 4
Intensity of Development
Figure 5 shows the building outline of the permanent
structures within the Reinvestment Zone. As shown by the
Land Use Survey, 26 percent of the land area of the Rein-
vestment Zone is occupied by buildings; the remainder is
accounted for by street rights-of-way, public parks or
open space, surface parking and vacant land.
Building Conditions
A primary purpose of tax increment financing is
the elimination of "urban blight. " While definitions
of blight -vary widely, unusually high incidences of
vacant or deteriorated buildings are generally recog-
nized indicators of urban blight or physical distress.
In a survey conducted in January, 1983, 10 of 110
buildings surveyed in the Reinvestment Zone appeared
to be vacant. Additionally, many of the older buildings
were occupied at the ground level but appeared vacant
or used for storage on upper stories. Figure 6 shows
the structures identified as vacant in the survey.
Structures were also visually surveyed and classi-
fied using a three-tiered structural condition scale.
Structures were rated according to the following system:
CATEGORY 1 - Buildings in good condition; new, renovated,
or well-maintained structures with no ap-
parent structural or cosmetic deterioration.
3 . 5
BROADWAY
■ _p
■
LEVITY
■
CROCKETT
BOWIE
FANNIN 0.
e
FORBYTIE
■
■
■
■
WALL ■
■�ee�■e■ ■ eae■e a eo
COLLEGE
CU
= u f C;3 -
00
MiLAM O 0
MAMUN
O VV
Do [M vv N Figure 5
IRMWE-07MIENY BUILDING
ZONE COVERAGE
Beaumont, Texas
0 900 300 500
scale north Building outlines shaded
City of Beaumont,Texas Planning Department .?
/III
tai
I �
a
h � �
TTrr
t
VACANT BUILDINGS
ZONE January 1983
Beaumont, Texas
Vacant buildings shaded
acale north
City of Beaumont,Texas Planning Department
CATEGORY 2 - Buildings in need of moderate exterior
repairs, renovation, or cosmetic improve-
ments.
CATEGORY 3 - In need of substantial renovation.
The findings of the structural condition survey were then
averaged for each block. These block averages are shown
in Figure 7 .
Recent Development Trends
Many of Beaumont ' s major downtown office buildings
date back to the building boom that followed the second
Spindletop oil discovery in 1925 . Three major
projects between 1961 and 1963 -- the Petroleum Building,
Texas Commerce Bank, and First City Bank -- provided the
downtown with a more modern appearance. Unfortunately,
no additional major office construction projects were
undertaken until the early 1970s when the current down-
town renaissance began. Significant new construction
projects during the 1970s included the Southwestern
Bell building, the First Federal Savings building, the
First City drive-in facility, the Orleans Street shopping
plaza and the Texas State Optical plant. Additionally,
the City of Beaumont constructed the Pearl-Orleans
traffic connector, the new Police Station and Municipal
Court, City Hall and Civic Center, and the new Public
3 . 8
z
a
f r
r 1
NOTE
low
i
DD OWN DW I,'�J
Figure 7
EI V S N BUILDING
OON I r77771
Category
By Category
0 100„ 300 � Category
scale north
City o f Beaumont,Texas Planning Department (see text for explanation)
/ ,�
Library. Another major governmental project, the County
Courthouse Annex, was constructed by Jefferson County.
During the early 1980s, Gulf States Utility Company' s
new headquarters , Edison Plaza, was completed, as
were Riverfront Park and the renovated City Auditorium,
(renamed the Julie Rogers Theatre for the Performing Arts) .
Currently the Tyrrell Library, the Jefferson Theatre and
the "old" GSU building (Edson Hotel) are being renovated.
A downtown convention hotel, an essential factor
to the continued success of the downtown revitalization
effort, is yet to be built. A proposed 226-room Hilton
Hotel project was cancelled in 1982 . After the with-
drawal of the Hilton project, the idea of building a
hotel immediately north of the Civic Center, as originally
proposed by the Gruen plan in 1973 , has been revived.
Two very significant downtown projects are currently
proposed within the boundaries of the Reinvestment Zone.
Both projects involve restoration of historic structures,
a "mixed use" development concept, and financing packages
involving Industrial Revenue Bonds, Urban Development
Action Grants, syndicated equity, and Investment Tax
Credits. These are the Downtown Market Place and Kyle Center.
Figure 8 summarizes the recent progress of the down-
town revitalization program.
Historic/Architectural Inventory
Twenty-eight structures located within the Tax Incre-
3 . 10
i
------------ 1
-0/1
MEM
<�i_.III _�� ,jjj.�� , � ��� �■ j
1�1■ , rid
■
■
� 0• W TOWN Figure
R INVEST EN
• E DEVELOPMENT
Beaumont, Texas
1961-1963 - .
COMPLETED PROJECTS,
�, % CURRENT UDAG PROJECTS
scale north
City of Beaumont,Texas Planning Department R RENOVATION IN PROGRESS
ment Zone are included in the Beaumont Commercial Historic
District (BCHD) . The BHCD is officially recognized by
the United States Department of Interior and is included
on the National Reigster of Historic Places. National
Register status makes the buildings which are designated
as "contributing" to the BHCD eligible for special-
Federal tax credits under the 1981 Economic Recovery Tax
Act. Figure 9 shows the BCHD boundaries and significant
structures in the district.
The buildings within the BCHD date from the late
19th to early 20th centuries and range in scale from small
residential structures to multi-story office buildings.
The newly restored Julie Rogers Theatre for the
Performing Arts (the former City Hall/Auditorium) and
the Tyrrell Library are classified as contributing to the
BCHD. The Jefferson Theatre, the Gilbert Building,
the Goodhue Building and the San Jacinto Building are
also included in the district.
Two major developments involving historic structures
are currently planned. The Downtown Market Place will
utilize the Stedman, Friedman, and Southern Pacific
buildings as the core of a $13 million, mixed-use center
featuring specialty retail, office, restaurant, enter-
tainment, and public components. The three architecturally
significant structures will be restored to their original
appearance and new structures compatible with the Historic
District will be added to the site.
3 . 12
i
i
-
i
I) I
' 7
.tl It � ■�
DOWNTOWN
Figure 9
�� REINVE TMEN
HISTORIC &
ARCHITECTURAL
ZONE
Beaumont, Texas Beaumont Commercial Historic
District (BCHD)
0 100 300 500
scale north Classified as "contributing'v to,
City of Beaumont,Texas Planning Department BHCD
J
A second current development proposal involves the
renovation of the Kyle Building, one of the finest
examples of art deco architecture in the southwest.
The Kyle Center project will feature retail uses in the
restored Kyle Building, a new twelve-story office
building, and' a multi-level parking garage.
Office Buildings
Office development is obviously a major component
of the development mix of the CBD and the Reinvestment
Zone. The total downtown office space inventory is esti-
mated at 1. 8 million square feet. 1
A 1979 Urban Land Institute study estimated that
downtown Beaumont could absorb an additional 50, 000 square
feet of new office space each year, provided that new
developments were "properly located, well-designed and
marketed at a competitive rent level. "2
Two significant office projects are currently
planned within the Reinvestment Zone: 36,000 square feet
of office space in the proposed Downtown Market Place
project, and 105 ,000 square feet in the new office
building proposed by an Austin developer as part of the
Kyle Building restoration project.
1Halcyon Development Co. estimate prepared for Kyle
Center UDAG application.
2Urban Land Institute, Beaumont, Texas : An Assessment
of Opportunities, Plans and Programs for the Revita ization of
Beaumont, 1979 , pp. 27-29 .
Retail Trade
The Central Business District was Beaumont' s major
retail trade center until the 1950s when two related
trends -- the increased personal mobility provided by
the private automobile and the development of planned
shopping centers in outlying areas -- caused a decline
in the retail function of the downtown area. A 1982
Beaumont Planning Department study (Retail Trade: The
Central Business District) determined that, while retail
sales in the CBD generated 25. 9 percent of Beaumont' s
retail sales, by 1978 , the CBD accounted for only 5. 4
percent of the city' s total retail sales. (See Figure 10. )
The study also determined that, in constant dollars,
retail sales in the CBD declined 62. 1 percent between
1958 and 1977 (Figure 11) . During the same period, retail
trade increased by 67. 9 percent in Beaumont and 81. 4 percent
in the larger three-county Beaumont-Port Arthur metro-
politan areas.
The total number of retail establishments of all
types in the CBD declined sharply between 1958 and 1977
(Table 2) , from 179 to 54. The most severe reduction
was among automotive dealers and service stations.
There were 30 such establishments in the CBD in 1958
and only 2 in 1977. Apparel and accessory stores also
3. 15
0-437
Figure 10
RETAIL SALES IN THE CBD AS A PERCENT
25.9% OF TOTAL RETAIL SALES IN
BEAUMONT, TEXAS
1958 - 1977
18.6%
w
rn
8.8%
7.7%
5.4%
1958 1963 1967 1972 1977
Q SOURCE: U.S. Census of Retail Trade: U.S. Department of Commerce.
Arl
Are
4
c
e 4 I
Al
dr
W /
`N� l
v �
C
C �
o mQ
o �
�o oo
00
o °
m o 0
Original Map Located In Map Folder
in Vault of Clerks Office
Figure 11
PERCENTAGE CHANGE IN RETAIL SALES BETWEEN 1958 and 1977
(in constant dollars)
_. Beaumont, Texas
-62. 1 %
1
o -
0 .......................
f
+67.9%
..........:::::::... .
90
..
rti
�$yUry:vy
r:Y,•�>
0
1 .4 /
8 0
-80 -60 -40 -20 0 +20 +40 +60 +80
PERCENT CHANGE
SOURCE: Calculated from the U.S. Census of Retail Trade
Table 2
Number and Distribution of
Retail Establishments
Beaumont CBD
1958-1977
SIC
Group 1958 1963 1967 1972 1977
Building Materials, Hardware,
and Farm Equipment 3 3 3 1 1
Retail Trade - General
Merchandise 8 9 9 7 5
Food Stores 1 6 2 1 0
Automotive Dealers and Gasoline
Service Stations 30 23 12 9 2
Apparel and Accessory Stores 53 38 30 24 12
Furniture, Home Furnishings
and Equipment Stores 11 15 12 7 5
Eating and Drinking Places 32 20 21 11 13
Miscellaneous Retail Stores 41 34 23 17 16
Total 179 148 112 77 54
Source: U.S. Census of Retail Trade: 1958, 1963, 1967, 1972, and 1977;
U.S. Department of Commerce.
3 . 18
declined precipitously during this period, from 53 outlets
in 1958 to 12 in 1977 . Eating and drinking establishments
declined from 32 in 1958 to 13 in 1977. During the same
period the number of miscellaneous retail establishments
declined from 41 to 16 .
A 1973 Urban Land Institute study listed 12 major
retail and department stores in the CBD. By 1982, 4
of these had closed and 2 others had announced plans to
move to suburban shopping centers. Until the announce-
ment of the Downtown Market Place project in 1982 , no
interest had been expressed in locating a major new
retail facility in Beaumont ' s downtown.
Parking
The off-street parking supply within the Reinvest-
ment Zone is estimated at 3547 spaces. 1 Of this total,
3243 spaces are in surface lots and 304 are in parking
garages. Figure12 shows the geographic distribution of
these spaces. The total parking supply is easily in--
creased by over a thousand off-street spaces when lots
immediately outside the zone are added to the inventory.
1Planning Department Survey, January, 1983.
3. 19
0 -� -�
t�
.■1 0 ter= :® �__ -
ENiM
- � � ■■ `'� � `ter' 7
NONE
DOWNTOWN Figure
ROMWESTMENT
PARKINCI
Beaumont, Texas
Numbers indicate total off-street
ONE
�� spaces
0 100 300 500
scale north Parking garage
City of Beaumont,Texas Planning Department -., LL
In addition to off-street parking, there are an estimated
515 curbside (on-street) parking spaces within the zone
boundaries.
Open Space Resources
Parks, open spaces, plazas, and pedestrian areas
are essential features of any downtown environment. Such
facilities provide visual and psychological relief from
the intensely urbanized character of the central business
district. Open space features are also excellent marketing
tools for attracting potential retail, office, tourist
and convention business, as exemplified by San Antonio's
renowned Riverwalk. A practical limit is imposed upon
the amount of open space in central business districts,
however, by the cost and scarcity of raw land.
Figure 13 shows major open space features in and
around the Tax Increment Zone. The following open space
features contribute to the downtown environment.
• Riverfront Park.1 Riverfront Park, originally proposed
in 1973, was completed in late 1982. The 5-acre,
crescent shaped site includes an amphitheatre,
pedestrian walks, boat docks, wooden piers, picnic
tables, a restroom, and a concession area.
1Located outside of the Tax Increment Zone.
3 . 21
oils
tv la
r � •
DOWNTOWN
REINVESTMENT OPEN SPACE
GONE RESOURCES
Beaumont, Texas
City Parks
0 100 300 500 Plazas, Areas
scale north
City of Beaumont,Texas Planning Department
i City Hall Plaza. The Civic Center and City Hall
are connected by a plaza featuring exposed aggregate
and brick paving, landscaping, lighting and a re-
flecting pool with fountains., and a metal sculpture
by David Cargill.
• Keith Park/Pedestrian Mall. The site of the Julie
Rogers Theatre was designated as a public park in
the 1828 original Beaumont townsite plat and is
listed on the City' s official parks inventory as
Keith Park. Pedestrian improvements were made to
the Julie Rogers Theatre grounds in 1982 . The site
also features several spectacular 19th Century oak
trees.
As part of the Civic Complex development funded by
a bond issue in the 1970s, the Beaumont Public
Library was constructed adjacent to what is now the
Julie Rogers Theatre. Wall Street between Pearl and
Main Streets was abandoned, filled, and landscaped
to create a pedestrian mall between the library and
the theatre. Benches, sidewalks, and a mobile sculp-
ture were also installed.
Together, the pedestrian mall and the City Hall Plaza
form an important visual and pedestrian link between
Riverfront Park and the theatre/library area.
3. 23
0xZ �7
• Petroleum Building. A landscaped, pedestrian-oriented
plaza was included in the development of the Petro-
leum Building and Texas Commerce Bank in the early
1960s.
• Orleans Plaza. Completed in the late 1970s, the
Orleans Plaza was intended to provide a pleasing
pedestrian environment to attract shoppers to retail
stores along Orleans Street. The project consists
of landscaping, benches , signs, sidewalk improvements,
and provisions for transit bus loading and unloading.
Vehicular Circulation
Figure 14 shows the major downtown thoroughfares
as identified by the City's Official Street and Highway
Plan (1973) . Traffic counts for selected 24-hour periods
are shown in Figure 15.
Completion of the Downtown Market Place and Crockett
Connector projects will result in changes in the circula-
tion patterns, with the improved Liberty-Laurel "one-way
pair" system becoming the primary east-west approach to
the northern end of the Reinvestment Zone. These pro-
jects are discussed in Part Four of the plan.
3. 24
III <<
u
4.
0
Figure 14,
MAJOR STREETS
ZONE
Beaumont, Texas
Classified as an arterjal street
0 too �-o- --- 7U on Official Street and Highway
scale north
Plan
City of Beaumont.Texas Planning Department
\ ee 4s
BROADWAY
•10,362S •8769N 4753N
® 0 1 8,1 LIBERTY
21255
CROCNETT ' 1914W a
•6446N
.11.348S5 o1823S •5282S
3334E 3946E• 3002E
u •li �J U 4940N
7775 19985
1659W '` •L= •4976S
.3684W FAWM 92278W
1128N •2877N •4897N •5705N�ei�
1 •1134S 9719S •4841S
1862E• '2283E' ` 1040E
•6258N
23 e
a ■LO
wAU e
l�
COLLEGE
El 111
0 p
16 7- 00
0
O
MANKLM
0
oo�/V11�1 IJ�o�IV u�1 T���'Figure 15
IC COUNTS
�ol1�J� 24 HR. VOLUME &
Beaumont, Texas
DIRECTION OF FLOW
0 100 300 500
scale north
City of Beaumont,Texas Planning Department /
ECONOMIC FEASIBILITY
The economic feasibility of any tax increment financing
proposal is dependent upon the generation of revenues
through increased assessed property values. Since most
tax increment zones are located in blighted or declining
areas , the required increase in assessed valuation must
result from redevelopment activities, new construction,
or renovation of existing properties. Otherwise, the
possibility exists that assessed valuations could actually
decline or increase only slightly, resulting in little or
no funding available to implement projects or retire bonds.
To determine the economic feasibility of the project
plan as outlined in this report, studies were conducted
to determine (1) the potential of the Downtown Reinvestment
Zone for future development and (2) the projected amount
of tax increment funding to be generated by the Reinvestment
Zone.
Development Potential
In recent years interest in potential development
projects in and around the Reinvestment Zone has resulted
in the preparation of several market studies and analyses
of development potential. The Reinvestment Zone has
several major positive factors, including locational
determinants, availability of special financial incentive
3. 27
programs, and market access factors, in its favor as a
likely location for major CBD projects:
• Adequate streets, utilities, and community facilities
to support further development activities .
Strong commitment by local government and business
community to downtown redevelopment.
• Streamlined and minimized zoning procedures regula-
tions in the Reinvestment Zone.
• Future stability guaranteed by substantial investments
in office headquarters in. downtown of local, county,
Federal governments, several major utility companies
and banks.
• Highest concentration of office development in the
Beaumont Standard Metropolitan Statistical Area.
• Access to a regional retail/restaurant/entertainment
market with $3. 8 billion in total personal income.
• Beaumont ' s median family income for 1979 -- $20,906 --
represents a 134 . 2% change over 1979 median income
compared to a national average increase of 110 . 0% . 2
1Weinstein, B.L. , Economic Profile of the Beaumont-
Port Arthur-Orange Metropolitan Area, John Gray Institute,
1982 .
2Ibid. , p. 13, p. 15.
3. 28
• The downtown "daytime population" of office workers
is estimated at 8000 .
• Several major vacant parcels suitable for hotel,
office, or commercial development are available.
• 26 structures eligible for Investment Tax Credits
under the 1981 Economic Recovery Tax Act are located
in the Reinvestment Zone.
• The Reinvestment Zone is included in an approved
"Eligible Blighted Area" for sale of Texas Industrial
Revenue Bonds to finance commercial (non-industrial)
projects.
Several market analyses have been undertaken to deter-
mine the feasibility of various possible downtown develop-
ment projects in recent years. A 1982 study by Zuchelli,
Hunter, and Associates indicated that "available market
research as well as the lending commitments of local banks
are supportive of the finding. . .that sufficient market
strengths exist to support the Downtown Market Place. "1
Market research conducted by Zuchelli, Hunter and Associates
and Cranston Development Co. in 1982 determined that the
1Urban Development Action Grant (UDAG) application,
#UDAG 2 , December 10 , 1982 , supplement, Market Feasibility
for Downtown Market Place.
3 .29
market for specialty retail, entertainment-oriented
restaurants, and office space within the Reinvestment Zone
was sufficiently strong to allow development of the Market
Place mixed-use complex with rental rates competitive with
existing local developments and profitable rates of
occupancy and sales.
Market research for the proposed Kyle Center office/
retail project was conducted by Halcyon Development, Ltd. ,
in 1982. It was determined that there was a shortage of
prime Class A office space and restaurants in the CBD
and that the Downtown Market Place, by providing a "critical
mass" of specialized CBD retailing, would be complementary
to further office/retail projects such as the proposed
Kyle Center. 1
A 1979 Urban Land Institute (ULI) study identified
markets for office uses, specialized retail development,
restoration of historic structures, convention-oriented
hotels, cultural and recreational entertainment and a
major concentration of restaurants as major development
opportunities within Beaumont' s CBD. 2 Many of the
1UDAG application, #UDAG 3, October, 1982 , Market
Feasibility for Kyle Center.
2Urban Land Institute, 1979 , An Assessment of_Oppor_
tunities,_Plans and Programs for the Revitalization of
of Downtown Beaumont, 80 pp.
3 . 30
specific projects mentioned in the ULI report are located
within the Reinvestment Zone, including the Stedman, Kyle,
and Gilbert buildings; a potential hotel site; and under-
utilized railroad-owned properties.
The Reinvestment Zone Plan includes a proposal for
a downtown convention hotel as a complement to the Civic/
Convention Center. Studies by Harris , Kerr, Forster and
Company and Leaventhol and Horwath in 1979 determined that
sufficient demand existed for a downtown convention hotel.
Several new hotel projects have since been announced,
however. Further market research is needed to determine
whether a first-class, downtown convention hotel with
direct access to the Convention Center could overcome the
competition of major competing hotels located along the
interstate highway system.
Projected Tax Increment Revenues
Four sets of projected tax increment revenues, each
based upon different scenarios for new development and
property values, are shown in Tables 3 through 6. Each
projection is based on the assumption that the current
total tax rate of $22 . 50 per $1000 currently applicable
to the Reinvestment Zone will not increase during the
operating life of the Reinvestment Zone. Two types of
growth in the total assessed value of the zone are
3 . 31
,
Table 3
PROJECTION �
PROJECTED TAX INCREMENT FINANCING REVENUES
DOWNTOWN BEAUMONT REINVESTMENT ZONE
CUMULATIVE
TOTAL INCREASE, PROJECTED
ASSESSED ASSESSED ANNUAL CUMULATIVE
YEAR VALUE VALUE INCREMENT INCREMENT
1983 44000000
1984 45100000 1100000 24750 24750
1985 50200000 6200000 139500 164250
1986 51455000 7455000 167738 331988
1987 52741375 8741375 196681 528668
1988 54059909 10059909 226348 755016
1989 55411407 11411407 256757 1011773
1990 56796692 12796692 287926 1299699
1991 58216610 14216610 319874 1619572
1992 59672025 15672025 352621 1972193
1993 61163825 17163825 386186 2358379
1994 62692921 18692921 420591 2778970
1995 64260244 20260244 455855 3234825
1996 65866750 21866750 492002 3726827
1997 67513419 23513419 529052 4255879
1998 69201254 25201254 567028 4822907
1999 70931286 26931286 605954 5428861
2800 72704568 28704568 645853 6074714
2001 74522182 30522182 686749 6761463
2002 76385237 32385237 728668 7490131
2003 78294868 34294868 771635 8261765
2004 80252239 36252239 815675 9077441
ASSUMTIONS�
1 ) ANNUAL RATE OF APPRECIATION( % >^ . . 2^5
2 > TAX RATE PER $1000 ( $ >~ ^ . ^ , , ^ , ^ ^ . 22.5
3) NEW PROJECTS:NAME/YEAR/VALUE
ADDED TO TAX ROLLS, .MARKET PLACE/1985/$6200000
SOURCE: BEAUMONT PLANNING DEPARTMENT
3 . 32
^ ' Table 4.
PROJECTION 2
PROJECTED TAX INCREMENT FINANCING REVENUES
DOWNTOWN BEAUMONT REINVESTMENT ZONE
CUMULATIVE
TOTAL INCREASE, PROJECTED
ASSESSED ASSESSED ANNUAL CUMULATIVE
YEAR VALUE VALUE INCREMENT INCREMENT
1983 44000000
1984 45100000 1100000 24750 24750
1985 50200000 6200000 139500 164250
1986 61655080 17655000 397238 561488
1987 63196375 19196375 431918 993406
1988 64776284 20776284 467466 1460872
1989 66395691 22395691 503903 1964775
1990 68055584 24055584 541251 2506026
1991 69756973 25756973 579532 3085558
1992 71500898 27500898 618770 3704328
1993 73288420 29288420 658989 4363318
1994 75120631 31120631 700214 5063532
1995 76998646 32998646 742470 5806001
1996 78923613 34923613 785781 6591783
1997 80896703 36896703 830176 7421958
1998 82919120 38919120 875680 8297639
1999 84992098 40992098 922322 9219961
2000 87116901 43116901 970130 10190091
2001 89294823 45294823 1019134 11209225
2002 91527194 47527194 1069362 12278587
2003 93815374 49815374 1120846 13399432
2004 96160758 52160758 1173617 14573049
=======================================================
ASSUMTIONS:
1 ) ANNUAL RATE OF APPRECIATION( % )^ , . 2.5
2 ) TAX RATE PER $1000 ( $)~ ° , , . ^ . , ^ , . 22,5
3) NEW PROJECTS:NAME/YEAR/VALUE
ADDED TO TAX ROLLS. .MARKET PLACE/1985/$6200000
KYLE CENTER/1986/$10200000
SOURCE! BEAUMONT PLANNING DEPARTMENT
3. 33
'
^
. Table 5
PROJECTION 3 `
PROJECTED TAX INCREMENT FINANCING REVENUES
DOWNTOWN BEAUMONT REINVESTMENT ZONE
CUMULATIVE
TOTAL INCREASE, PROJECTED
ASSESSED ASSESSED ANNUAL CUMULATIVE
YEAR VALUE VALUE INCREMENT INCREMENT
1983 44000000
1984 44000000 O O O
1985 50200000 6200000 139500 139500
1986 50200000 6200000 139500 279800
1987 50200000 6200000 139500 418500
1988 50200000 6200000 139500 558000
1989 50200000 6200000 139500 697500
1990 50200000 6200000 139500 837000
1991 50200000 6200000 139500 976500
1992 50200000 6200000 139500 1116000
1993 50200000 6200000 139500 1255500
1994 50200000 6200000 139500 1395000
1995 50200000 6200000 139500 1534500
1996 50200000 6200000 139500 1674000
1997 50200000 6200000 139500 1813500
1998 50200000 6200000 139500 1953000
1999 50200000 6200000 139500 2092500
2000 50200000 6200000 139500 2232000
2001 50200000 6200000 139500 2371500
2002 50200000 6200000 139500 2511000
2003 50200000 6200000 139500 2650500
2004 50200800 6200000 139500 2790000
ASSUMTIONS�
1 ) ANNUAL RATE OF APPRECIATION( % ). , . O
,
� ) TAX RATE PER $1000 ( $ >^ . ^ ^ . ~ . , ^ . , 22.5
3) NEW PROJECTS:NAME/YEAR/VALUE
ADDED TO TAX ROLLS^ ~MARKET PLACE/198506200000
SOURCE! BEAUMONT PLANNING DEPARTMENT
`
3 . 34
Table �
PROJECTION 4
PROJECTED TAX INCREMENT FINANCING REVENUES
DOWNTOWN BEAUMONT REINVESTMENT ZONE
CUMULATIVE
TOTAL INCREASE, PROJECTED
ASSESSED ASSESSED ANNUAL CUMULATIVE
YEAR VALUE VALUE INCREMENT INCREMENT
1983 44000000
1984 44000000 O O O
1985 50200000 6200000 139500 139500
1986 61655000 17655000 397238 536738
1987 61655000 17655000 397238 933975
1988 61655000 17655000 397238 1331213
1989 61655000 17655000 397238 1728450
1990 61655000 17655000 397238 2125688
1991 61655000 17655000 397238 2522925
1992 61655000 17655000 397238 2920163
1993 61655000 17655000 397238 3317400
1994 61655000 17655000 397238 3714638
1995 61655000 17655000 397238 4111875
1996 61655000 17655000 397238 4509113
1997 61655000 17655000 397238 4906350
1998 61655000 17655000 397238 5303588
1999 61655000 17655000 397238 5700825
2000 61655000 17655000 397238 6098063
2001 61655000 17655000 397238 6495300
2002 61655000 17655000 397238 6892538
2003 61655000 17655000 397236 7289775
2004 61655000 17655000 397238 7687013
=======================================================
ASS UMTION0
1 ) ANNUAL RATE OF APPRECIATIGN( % ), ~ ~ O
2) TAX RATE PER $1000 ( $ >. . , . . ^ . ^ ^ ^ ^ 22.5
3) NEW PROJECTSINAME/YEAR/VALUE
ADDED TO TAX ROLLS, ~MARKET PLACE/1985/$6200000
KYLE CENTER/1986/$10200000
'
SOURCE! BEAUMONT PLANNING DEPARTMENT
� � //
considered: (1) annual growth at a fixed rate due to
inflation and the indirect enhancement of land values
resulting from the downtown redevelopment program; and
(2) increases due to the addition of completed new projects
to the tax rolls.
Fairly conservative approaches were taken for each
of the two growth variables. Although local estimates
of the annual rate of appreciation anticipated in the
total assessed value of the zone have ranged as high as
5 percent, the projections included in this report are
based upon more conservative figures of 2 . 5 percent and
0 percent. Similarly, although several new major projects
are likely to be built during the life of the Reinvestment
Zone, tax increment revenues are projected on the basis of
two alternate scenarios : (a) that the Downtown Market
Place will be the only new major project, and (b) +-hat
the Market Place and Kyle Center will be the only major
new projects added to the Reinvestment Zone.
No allowance is made for the recent reappraisal of
the Reinvestment Zone although this is expected to generate
additional tax increment revenues.
The variations in the four projections are as
follows:
TABLE 3 : 2 . 5% annual rate of increase in assessed value
3. 36
43-37
above tax increment base with the additional
increase of $6 ,200 , 000 for 1985 due to completion
of the Market Place.
TABLE 4 : Same assumptions as Table 3 with an additional
$10, 400 , 000 added to the total assessed value in
1986 due to completion of Kyle Center.
TABLE 5 : Same assumptions as Table 3 except that no annual
rate of increase in the total assessed valuation
is projected.
TABLE 6 : Same assumptions as Table 4 except that no
annual rate of increase in the total assessed
value is projected.
3. 37
PART FOUR
DEVELOPMENT PLAN
This section consists of a proposed plan of action
for the physical development of the Downtown Beaumont
Reinvestment Zone. Implementation of the plan involves
multiple public and private financing mechanisms. and is
only partially dependent upon tax increment financing.
The most specific proposals relate to short-range,
public sector capital improvements. The plan deals
with long-range public improvements and private develop-
ment projects in a more generalized manner.
The development plan is composed of five parts:
(1) Development Objectives, (2) Development Concept,
(3) Proposed Land Use, (4) Proposed Projects, and
(5) Proposed Changes to Official Plans and Ordinances.
DEVELOPMENT OBJECTIVES
Goals and objectives are the cornerstone of any
effective planning process. Goals and objectives are
needed to (1) provide direction to planning studies,
(2) to identify specific areas of concern to be researched
and evaluated in the planning process, (3) to provide a
mechanism for reflecting public input, and (4) to provide
for monitoring and evaluating the success of implementation
actions.
4 . 1
The following development objectives are the basis
for the Downtown Beaumont Reinvestment Zone Plan:
• Establish the Central Business District as the banking,
government, professional office, and convention and
entertainment center of Beaumont and the Southeast
Texas region.
® Encourage new investment of private capital funds
in the Tax Increment Zone.
• Use public 'investment in the Tax Increment Zone to
"leverage" the investment of private funds.
• Provide a diversified mixture of entertainment,
recreational, and dining opportunities in the Tax
Increment Zone to stimulate tourist and convention
business.
• Encourage the renovation and "adaptive re-use" of
architecturally or historically significant structures
in the Reinvestment Zone.
• Improve the public image of the downtown area.
® Improve transportation access to the Reinvestment
Zone.
• Maintain an adequate supply of parking to support
economic growth in the Reinvestment Zone.
i Expand local employment opportunities by stimulating
physical and economic growth in the Reinvestment Zone.
4 .2
• Encourage the development of new retail and service
establishments in the Reinvestment Zone to serve
the growing "daytime population" of office workers.
• Increase the tax base within the Reinvestment Zone
through promoting new construction and renovation
projects.
Land Use Plan
A proposed land use plan for the Reinvestment Zone
is shown in Figure 16 . The land use plan is based upon
a land use plan originally proposed in the Central Busi-
ness District Development Plan in 1973 with modifications
as required by changed conditions , new development, and
programmed new projects. The plan is consistent with
Beaumont' s Comprehensive Plan which proposes the develop-
ment of retail trade and services; financial institutions;
highrise residential and office complexes; hotels; major
convention and cultural centers; recreation and enter-
tainment facilities; and major government offices as the
primary land uses for downtown Beaumont.
Proposed Development Concept
A general concept plan for physical development of
the Reinvestment Zone is shown in Figure 17. The major
features of the concept plan are:
4. 3
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SIE R
LON ENT aN
Beaumont
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' Offices or ,Banks
0 100
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City of Beaumont north - Gov't.
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4. 4
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partment Convention y Redevel De�elop�ent
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Construction of a convention hotel adjacent to the
Civic Center to increase Beaumont' s share of the
convention and tourist trade.
Development of "mixed use" complexes featuring
offices, retailing, services, entertainment and
parking.
ion access to the Reinvestment
• Improved transportat
Zone through construction of the Crockett Connector.
® tem of major thoroughfares and
Development of a sys
pedestrian ways.
ro ert through reno-
� „More efficent use of downtown p p Y
vation of historic structures and infill" develop-
ment on vacant sites.
Expansion of the off-street parking supply to meet
the parking demand generated by new development.
The improvements proposed in the development con-
cept plan will result in a more positive image for Beaumont
and the downtown area and will advance the City Council's
officially adopted policy of making the Central Business
District a regional center of business and culture. Major
projects , such as the hotel and office developments , will
provide larger secondary markets for retail trade, ser-
vices, and entertainment.
4 . 6
V� c
PUBLIC IMPROVEMENTS
Several major public improvements projects have been
completed in downtown Beaumont within the past five years,
including the City Government complex, Riverfront Park,
the Orleans esplanade, the County Courthouse annex, and
the Pearl-Orleans Connector. Additional public improve-
ments now programmed within the Reinvestment Zone are
described in the following section. A map summarizing
proposed public improvements (Figure 15) and a table showing
the estimated costs, sources of funds, and construction
dates for each improvement project (Table 7) are also
included.
It should be noted that the only anticipated public
improvements involving tax increment financing are the
public plaza and parking lot development associated with
the Downtown Market Place.
Parking for Downtown Market Place
Under the terms of the Downtown Market Place develop-
went proposal the City of Beaumont will construct a
minimum of 310 off-street parking spaces to serve the
Market Place. The conceptual site plan for the Market
Place and the parking is shown in Figure 19 . The 310
required parking spaces will be located in two lots.
4 .7 (i
h I�
a i
LAZA
WON—
MEN 0
INS
1
VIEW
Figure 18
PROPOSED PUBLIC
Beaumont, Texas
0 100 300 500
scale north
NOT SHOWN: SEWER SEPARATION
City of Beaumont.Texas Planning Department L
TABLE 7
ESTIMATED COSTS OF PUBLIC IFIPROVEMENTS
Estimated Construction
Project Cost Period Source of Funds
Parking Lots $1,392 ,000 6/1/83 to 6/1/84 "Section 108" Loan/Tax Increment
Financing
Public Plaza $ 408,000 6/83 to 6/84 "Section 108" Loan/Tax Increment
Financing
Crockett Connector $ 871,000 7/83 to 9/84 1980 Major Roadway Improvement Plan Bond Issue
Tyrell Library $ 300,000 to 4/83 a. Community Development Block Grant
$150,000
b. City General Fund
$150,000
Traffic Signal Improvements $ 220,867 10/79 to 3/83 City
Combination Sewer Seperations $2,000,000 undetermined Environmental Protection Agency Grant
At FIGURE 19
KEY to STRUCTURES:
1 Stedman Building (existing)
2 Restaurant/Retail (new)
3 New Infill Construction
4 Friedman Building (existing)
y Southern Pacific Building (exi ng)
Ju
3 ®�
4 �
2
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CONCEPTUAL SITE PLAN 0 55 110 220
Downtown Market Place • Beaumont, Texas
4 . 10
Lot "A" , on the north side of the project, will contain
95 parking spaces. Lot "B" , located at the corner of
Neches and Bowie adjacent to the Santa Fe Railroad Depot
building, will include 220 spaces. Materials, sidewalks,
lighting and landscaping treatments will be coordinated
with the privately constructed commercial components of
the project to produce a visually unified design.
Parking lot "A" will be metered and will be operated
by the City of Beaumont. Lot "B" will be leased to the
Market Place developers by the City and will be operated
by a management firm selected by the developers. The
City will receive a percentage of the revenues from Lot
"B" .
Estimated costs of acquiring and developing the two
parking lots are shown in Table 8. Funding for the parking
improvements will be provided by a "Section 108" 3nan from
the Department of Housing and Urban Development (HUD) . Tax
Increment revenues will be used to repay the HUD loan. In
the early years of repayment, it is projected that tax incre-
ment revenues will be insufficient to meet all of the debt
service requirement of the "108" loan. Therefore, the
City will use a portion of its annual Community Development
Block Grant (CDBG) allocation beginning in fiscal 1984
to supplement the tax increment funds in retiring the loan
After the "Section 108" loan is repaid, payments of tax
4 . 11
TABLE 8
DOWNTOWN MARKET PLACE PARKING AREAS
ESTIMATED DEVELOPMENT COSTS '
ACTIVITY COST ESTIMATED
DESIGN AND ENGINEERING $ 95,500
LAND AQUISITION $512,000
PARKING LOTS
Dirtwork $161,000
Paving 164,000
Curbs and Gutters 15,000
Lighting 30,000
Striping 2,000
Meters 27,500
SIDEWALKS $ 64,000
PEDESTRIAN LIGHTING $ 67,500
LANDSCAPING $ 50,500
CONTINGENCY $203,000
$1,392 ,000
Source: City of Beaumont Planning Department and Urban Transportation Department.
4. 12
� �
increment funds will be used to repay the diverted CDBG
funds.
The total "108 Loan" amount will be $1. 8 million.
The interest rate will be set by HUD. As of February, the
rate for "108" loans was 10. 5% . The "108 Loan"/tax incre-
ment financing mechanism will also be used to finance the
acquisition and construction of the public plaza component
of the Market Place project.
Public Plaza in Market Place
A plaza will be constructed on the Market Place
site to form an open public space in the approximate
center of the project area.
A portion of the plaza land acquisition and construc-
tion costs will be paid by the City through the previously
discussed "Section 108" loan from HUD. The landscaped,
pedestrian-oriented plaza may also include a synthetic-
surfaced ice skating rink.
The City' s land acquisition costs will be $245, 000
while $163,000 will be required for the City' s share
of construction costs. These costs are itemized in
Table 9 .
Crockett Connector
The connector will link Crockett Street to the pro-
posed Liberty/Laurel one-way pair, providing improved
4 . 13 0`6u 3
TABLE 9
DOWNTOWN MARKET PLACE PUBLIC PLAZA
ESTIMATED PUBLIC COSTS
Land Acquisition $245,000
Construction
Excavation 16 ,000
Concrete 1,000
Brick Paving & Curbs 83 ,000
Mechanical & Electrical 42 ,000
Landscaping 12 ,000
General Conditions of Contract 9 ,000
$408 ,000
Construction costs based on pro-rated share of construction
estimates prepared 10/29/82 by developer.
4. 14
0 _fgc�
access to downtown from the west. The construction
cost of the portion of the Crockett Connector located
within the Tax Increment Zone is estimated at $871,000
to be provided by the 1980 Transportation Improvement
Program bond issue proceeds. This figure includes paving
and storm drainage costs but does not include anticipated
water and sanitary sewer modifications. Table 10 sum-
marizes the estimated costs of the connector while
Figure 18 shows its proposed alignment. Future improve-
ments to the Liberty/Laurel system and construction of
the Lamar Freeway will greatly improve the CBD' s acces-
sibility to south Beaumont, the West End, and Interstate
10.
Tyrrell Historical Library
The Tyrrell Historical Library is listed on the
National Register of Historic Places and is a part of the
City of Beaumont' s public library system. Rehabilitation
of the Tyrrell .Library was started in 1982 and Phase 2 should
be completed by April, 1983. The total project cost of
$284 ,988 includes architectural fees, re-roofing, re-
painting of masonry, painting, copper downspouts, elec-
trical and a lightning protection system. Project costs
are itemized in Table 11.
$150 , 000 of the funding for this project was provided
from the City ' s CDBG allocation. - Other''funding was contri-
buted by the Texas Historical Commission and City of Beaumont.
Additional improvements planned as Phases 3 and 4 of the
Project are described in Table 11. �
A l r
TABLE 10
CROCKETT CONNECTOR
ESTIMATED DEVELOPMENT COST1
ESTIMATED UNIT TOTAL
ITEM QUANTITY PRICE COST
10" Rein. Conc. Pavement 18,361 SY * $35/SY $642,635
6" Conc. Pavement (Driveways) 926 SY $20/SY 18,520
4" Conc. Pavement (Sidewalks) 1,447 SY $18/SY 26,046
Retaining Wall 330 LF $30/SY 91900
Catch Basins 23 EA $1000/EA 23,000
Manholes (Storm) 12 EA $1500/EA 18,000
54" Rein. Conc. Pipe 385 LF $100/LF 38,500
36" Rein. Conc. Pipe 533 LF $40/LF 21,320
30" Rein. Conc. Pipe 553 LF $35/LF 19,355
24" Rein. Conc. Pipe 155 LF $25/LF 3,875
18" Rein. Conc. Pipe 423 LF $20/LF 8,460
*Includes estimated cost of roadway
excavation & removing old street Subtotal $829,611
pavements.
Contingency (5%) 41,389
Total Estimated Construction Cost ,871,000
Source: Garrod and Dartez, Inc.
1Costs apply to portion of Crockett Connector within Reinvestment Zone only.
Does not include water and sewer adjustments or design costs.
4 . 16
TABLE 11
TYRRELL HISTORICAL LIBRARY RENOVATIONS
ESTIMATED COSTS
PHASE 2
ACTIVITY COST
Architectural Fees 36 ,000
Reroofing 138,034
Repointing Masonry 15 ,846
Painting 6 , 516
Copper Downspouts 5 ,000
Electrical & Lightning Protection System 9 , 590
General Contractor 74 ,002
$284 ,988
PHASE 3
Window repairs, door repairs , additional
repainting, weatherization.
Estimated Cost: $250, 000-280,000
PHASE 4
New mechanical and electrical equipment,
new plumbing, rearrange interior space for
functional utility, new finishes , install
elevator, refinish basement.
Estimated Cost: $900,000
Source : City of Beaumont CDBG Division and Public Library.
4 . 17
J-13-
Traffic Signal Improvements
The safety and efficiency of traffic flow in the Re-
investment Zone will be improved by a proposed computer-
assisted upgrading of traffic signal operation. The
downtown computerized signal system will be completed in
March, 1983. The system includes computerized traffic
signals at 24 intersections in the Reinvestment Zone.
The total cost of the system when completed will be
$845, 576 provided by the City of Beaumont. Of this
total, $220, 867 will be expended within the Reinvestment
Zone. Table 12 summarizes costs of the signal system.
Combination Sewer Separation
Several "combination sewers" are located within
the Tax Increment Zone. Combination sewers carry both
sanitary sewage and storm run-off and were commonly con-
structed throughout the United States before wastewater
treatment became a standard practice . Because, in
periods of heavy storm run-off, combination sewers can
discharge untreated wastes into waterways, they are no
longer considered environmentally acceptable. The Federal
Water Pollution Control Act Amendments of 1972 prohibits
sewer systems which allow improper discharge of untreated
waste through overflows or bypasses.
The City is "separating" its combined sewer systems
by building new separate sanitary sewers with funding from
4 . 18 - �� 1
TABLE 12
COMPUTERIZED TRAFFIC SIGNAL IMPROVEMENTS
ESTIMATED COSTS
LOCATION COST
Bowie & Main $ 8 ,770. 50
Bowie & Orleans 9 , 802 . 00
Bowie & Park 9 ,107.25
Bowie & Pearl 9 ,640. 25
Broadway, Calder, & Main 10 ,130. 35
Broadway & Pearl 10 ,037. 75
Willow & Broadway 9 ,230. 25
Orleans & Crockett/Laurel 13 ,255. 00
Main & Crockett 9 , 607. 25
Park & Crockett 10 ,299. 75
Pearl & Crockett 9, 343. 25
Orleans & Fannin 9 , 802 . 00
Park & Fannin 9 ,107. 25
Pearl & Fannin 9 ,107. 25
Orleans & Forsythe 9 ,797. 50
Park & Forsythe 8,976 . 00
Pearl & Forsythe 8, 374. 50
Willow & Laurel 8 , 706 . 35
Main &Liberty 10, 825. 25
Orleans & Liberty 9 , 797. 50
Pearl & Liberty 9 , 107. 25
Willow & Liberty 9 ,071. 15
Park & Wall 8 ,976 . 00
$220 , 866 . 60
Source: City of Beaumont Urban Transportation Department.
4 . 19 �'`� �
an Environmental Protection Agency (EPA) grant. Although
the exact alignment and total cost of possible separation
projects in the Reinvestment Zone are as yet undetermined,
the City Water Utilities Department estimates that $2
million would be required.
PROPOSED CHANGES TO OFFICIAL PLANS AND ORDINANCES
The improvements and development concept proposed
in this plan are in substantial accordance with existing
official City plans and ordinances. Changes to two of-
ficial plans and one change to the Official Zoning Map
would be needed, however. These proposed changes are as
follows:
1) Revise the Official Street and Highway Plan to allow
for the partial closing of Crockett Street and the
reclassification of the Liberty-Laurel/Crockett Con-
nector corridor as the primary arterial street
providing for east-west traffic flow to the northern
edge of the CBD.
2) Revise the Park and Open Space Plan to add the public
plaza at the Downtown Market Place project to the
City' s park system as a "special park. "
3) Revise the Official Zoning Map to change the zoning
of the Downtown Market Place site from a combination
of "Light Industrial" and Heavy Industrial" to
"Central Business District. " This will provide more
4. 20 _ �
flexibility for siting buildings on the site and will
make the project exempt from any off-street parking
requirements. This zoning change is also needed to
reflect the new role of the Market Place site as
an important part of the CBD.
4 . 21
PART FIVE
IMPLEMENTATION TOOLS
Although considerable progress has been made in the
past decade towards the physical and economic revitaliza-
tion of downtown Beaumont, much work remains to be done.
A sound nucleus of new public buildings, community faci-
lities, banks and major utility company offices has been
developed. The substantial public and private sector
commitments that have been made should signal potential
downtown developers that Beaumont ' s central business
district offers them a safe investment environment and
an opportunity to participate in expanding office, retail
and service markets.
Beaumont' s Reinvestment Zone, like most downtowns,
has several important competitive advantages in attracting
certain types of development largely due to the intense
concentration of professional and government offices in
a relatively small area. This concentration provides a
market for further office development and some specialized
services and retailing to serve the daytime office worker
population. The service and retail markets will experience
further growth if a convention hotel is built downtown.
The Reinvestment Zone also shares several common
development problems with the downtown areas of other
5. 1
s
cities. Large parcels of developable, vacant land at
reasonable prices are scarce in comparison to suburban
locations. The more affluent markets for consumer
goods and services have been lost to suburban-type shopping
centers. Because of the relative high cost and scarcity
of land, parking facilities for a large new project may
be prohibitively expensive.
There are several implementation tools available to
help capitalize upon downtown Beaumont' s competitive
development advantages and overcome some disadvantages.
Some of the most promising implementation tools are:
• The Central City Development Corporation (CCDC) .
Founded in 1971, the CCDC is a private, non-profit
corporation with the powers to promote downtown
revitalization through planning, coordination of
joint public-private ventures, land acquisition,
financing and development activities. The CCDC ' s
central role in the Market Place project is a good
example of the organization's function as a catalyst
for development. Through its consultants, the CCDC
formulated a development proposal, attracted a
prominent developer, and arranged to raise equity
investments by syndicating cash profits and tax
advantages. The CCDC has also acquired options
5 . 2
and negotiated purchases of land and buildings
needed for the project.
• Urban Development Action Grants (UDAGs) . The U.S.
Department of Housing and Urban Development' s UDAG
program provides competitive grants to eligible
cities to stimulate urban revitalization and the
creation of new jobs. Generally, the grants are
loaned by the recipient cities to developers as
low-interest second mortgages to reduce development
costs, thereby "leveraging" private investment in
projects which would not have been economically
feasible using conventional financing. As the loan
funds are "recaptured" over time by the participating
cities, a supplementary source of financing for
community development activities is provided. To
be competitive, a UDAG financing proposal must show
that the Federal grant money will "leverage" a private
investment of at least five or six times the UDAG
amount.
Beaumont ' s "distressed city" UDAG eligibility status
expired in October, 1982 -- ironically because of a
relatively low unemployment rate recorded in 1981
and used as part of the UDAG eligibility formula.
Depending on the outcome of an annual re-evaluation
5. 3
of eligibility status later in 1983 , Beaumont' s
eligibility to submit new proposals may or may not
be reinstated. Regardless of the City' s "distressed
city" eligibility status, applications for UDAG
projects may still be submitted under a more re-
strictive "Pockets of Poverty" clause in the UDAG
regulations, provided that the proposed project is
located in an area meeting certain demographic
requirements, the City provides "matching" funds
equal to 200 of the requested UDAG amount and 51%
of the permanent jobs generated by the finished
project go to residents of the Pocket of Poverty.
0 Community Development Block Grants (CDBG) and "Section
108" Loans. Another important source of urban re-
vitalization funds is HUD' s Community Development
Block Grant program. Each year the City receives
an "entitlement" block grant of approximately $2
million (the amount has declined annually in recent
years) to be spent in designated target neighborhoods
for physical revitalization and economic development
projects, most of which must primarily benefit
persons with low to moderate (less than 80% of median)
incomes. The use of CDBG funds is determined by
City Council with a Citizen' s Advisory Committee
5. 4
providing recommended spending priorities. In
Beaumont' s downtown area, CDBG funds have been used
for historic renovation projects and economic
development planning. In fiscal 1983, a $350 , 000
"backstop loan" to Market Place developers is
proposed to provide supplemental financing for the
project.
Section 108 of the CDBG regulations allow cities to
borrow money from HUD for CDBG-eligible activities
with future CDBG entitlements used as security for
the loan. A $1 million 108 loan guarantee was
approved for the now defunct downtown Hilton Hotel
project but never used. Currently, the City is
proposing to revise the loan agreement to provide
$1. 8 million for the public improvements associated
with the Market Place project.
A Investment Tax Credits. The 1981 Economic Recovery
Tax Act provides for Investment Tax Credits (ITC)
for rehabilitation of commercial buildings. The
amount of the credit varies with the age of the
building with the maximum allowable credit -- 25% --
reserved for restoration of buildings included in
the National Register of Historic Places. Restora-
ation of historic buildings must comply with U. S.
5 . 5
Department of Interior guidelines to qualify for
the full 25% credit. Numerous buildings in the Re-
investment Zone are eligible for the 25% credit by
virtue of their inclusion in the Beaumont Commercial
Historic District, which is included in the National
Register. Investors may "buy into" the tax credit
through syndication and non-profit groups may sell
an eligible building to a developer who, in turn,
leases the building back to the non-profit group,
renovates the building, and takes advantage of the
tax credit.
• Texas Industrial Development Bonds . The State of
Texas allows sale of tax-exempt industrial revenue
bonds (IRBs) to finance private development projects.
The bonds are generally bought by banks and are
repaid by the project developer at an interest rate
approximately two percentage points below market
rates. Texas IRBs were originally limited to use
for industrial projects. A subsequent revision to
State enabling legislation allows the use of IRBs
for certain commercial projects within an eligible
blighted area designated by a city' s governing body.
IRBs are tax exempt only for projects costing less
than $10 million with the important exception
projects utilizing a required minimum amount of
UDAG financing which can make the bonds tax exempt
for projects up to $20 million.
® Tax Increment Financing and Tax Abatement. Texas
law allows establishment of Reinvestment Zones for
tax increment financing (TIF) or tax abatement.
Because of the mechanics of TIF and tax abatement,
only one of the two techniques may be used in the
same Reinvestment Zone. Therefore, tax abatement
is not an available option for the Downtown Beaumont
Reinvestment Zone. The only projects proposed for
tax increment funding in the Downtown Reinvestment
Zone are the public components of the Market Place
project. Use of these funds for other projects would
require City Council approval and a revision to the
Reinvestment Zone Plan. The same is true of expan-
sion of the zone boundaries or establishment of other
zones.
The programs discussed above are among the most
common funding mechanisms used for downtown projects, al-
though other programs of the Economic Development Administra-
tion, the Small Business Administration, and other U.S.
Department of Commerce agencies have been used in many
5 . 7
other cities. As Federal funding to cities continues
to decline in the future, there will be a greater demand
for techniques such as IRBs, tax increment financing,
and other State and local programs.
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