A northeast Ohio municipality was in the process of building a new police station and slated the existing police station for demolition. The existing station sits on an 0.76 acre parcel of land that existing station is located at a major intersection in a high-traffic, high-profile location and is across from a recently redeveloped downtown district. The site is in a desirable location, but it has topographical and access issues. The municipality approached Allegro to evaluate the land and identify possibilities for future use of the site.
Allegro began a study of the area, implementing its proprietary “highest and most appropriate use” method. This approach differs from the conventional “highest and best use” methodology, which omits community objectives and focuses on market economics as the driving force behind real estate development. Allegro favors a more holistic approach, recognizing that any successful development project requires the coordination of physical, financial, and social elements.
In phase one of the project, Allegro evaluated the quantitative and qualitative attributes of the property and the surrounding market area. In its analysis, Allegro discovered the dualistic nature of the site’s location: the high visibility also meant less accessibility, and therefore diminished development potential. To understand the value of the site minus the soon-to-be-demolished building, Allegro assessed sales of comparable land from the past five years and used this data as a benchmark.
Phase two of the project required an evaluation all of the potential uses for the site that were permissible under the existing zoning. To accomplish this, Allegro created a matrix utilizing filters to objectively evaluate the impact and feasibility of each possible use. The filters were determined by physical, financial, and social elements based on criteria specified by the city. The matrix resulted in three tiers of “highest and most appropriate uses.”
Ultimately, Allegro used the analysis to lead the municipality in a thorough evaluation of the site, then advised the city on how to appropriately position and utilize the property going forward.