5508 incubator exchange - usf florida institute of...

5508 Incubator ExchangeBusiness - Training - Entrepreneurial Program Developer/Owner:

Coastal Bay Properties, Inc.Non-Profit:

Thap-Inc.orgProject team:

Derrick Blue – Team LeadMichael Holmes

Roberta Meade-Curry

CRED Tampa Bay 2014

Project Development Team

• The THAP GROUP• Five Nonprofit Agencies--One Vision:

• Tampa Hillsborough Action Plan, Inc.• Jeannette Bradley, CEO

• Coastal Bay Properties, Inc.• Derrick Blue, Executive Director

• Synergy Health Centers, Inc.• Mimi Ghosh, Executive Director

• Oakhurst Square I• Oakhurst Square II

"A Community where every individual is self-sufficient , has dignity, pride, and self respect.“"A Community where every individual is self-sufficient , has dignity, pride, and self respect.“

Why 5508 Incubator Exchange?

http://youtu.be/DG5-t9QkkcM




Development Concept

5508 Incubator Exchange offers furnished professional work space and businessassistance services to highly motivated entrepreneurs and freelancers in the TampaCommunity -- with special emphasis on individuals who typically experience difficultyaccessing mainstream resources and Veterans.

A Phased Retrofit is located at 5508 N. 50th Street in Tampa, Florida. The Project Scopeinvolves 30,000 square feet of Existing Warehouse and Storage Space into a facility whereEast Tampa, Tampa Bay Region, as well as, Hillsborough County Residents can come andreceive job-skill training and administrative, maintenance, general office support whilestarting or growing a small business. Included in this Phased Development will be a smallRestaurant/Cafe and small Childcare Facility.

Provide ongoing business support by a dedicated team of local professionals, partners, andorganizations in addition to accessing an array of affordable business support resources,services and technology.

Existing Façade of Incubators

Existing Shell 12’w x 24’ d Single Incubator

Existing Furnished Quad

Our S I T E

Future Land Use: CC - 35

Zoning District: CI

Overlay District: East Tampa

CRA District: East Tampa

Incentives: Enterprise Zone

Brownfield Zone

10.02 QCT METROPOLITAN DDA

Site Development

Co-WORKING Space Membership

Daily @ $25/day

6 months @ $140/month

Month-to-Month @ $155/month

5508 INCUBATORS

BUSINESS INCUBATORSAVAILABLE NOW!

QUAD Incubator Membership (6x12)6 months @ $175/monthMonth-to-Month @ $190/month

SINGLE Incubator Membership (12X24)6 months @ $350/monthMonth-to-Month @ $375/month

DOUBLE Incubator Membership (24x48)6 months @ $700/monthMonth-to-Month @ $750/month

Market Research

• Community Need

• Market Analysis

• Market Demand

• Market Competition

% of population

below Poverty 42 % < H. S. Education 39 % Graduate / Professional

Degree 3.4 %

Median Income $ 28-34 K

Median age 31 – 33

Single Parents 19 %

Unemployment Underemployment High school drop out rate Low number of community

owned businesses Low opportunity for

business workshops/ training to residents/veterans

Limited assistance to small businesses

Need vehicle to combat deterioration and blight

Community Need1 Market Analysis2 Market Demand3

Market Research

Affordable office space Flexible worker needs

flexible environment to work Assistance to increase credit

worthiness opportunities High population of active

duty returning to civilian life High population of active

duty spouses Business Coaching from

experienced mentors Job Creation, Job Readiness

Market Research - Competition

Nationally/Globally

Incubator and Co-Working trend on the rise

From one in 2005 , to 781 by 2013, in the U.S.,

to 2,498 worldwide.

Doubled annually between 2006 and 2012.

Corporations including these environments

as part of their business plans to increase

productivity and creativity amongst their

workforce

Mobility of the worker, mobility of the technology continues to escalate

Locally

0 - Incubator and Co-Working spaces in East Tampa

Downtown Tampa, West Tampa, Largo, Sarasota

1 - Daycare/Nursery

36-45 children enrolled on average

5 miles nearest one

15 – Educational Service Venues

57 – Food Service Venues

42 – Healthcare and Social Services

Our Facility actively offers these services now

Feasibility

• Development Budget

• Funding Sources

• ProForma

• What’s the bottom line ?

…. …….let’s do the numbers ……. …….let’s do the numbers ……. …….let’s do the numbers …

Feasibility


• Funding Sources

• ProForma


ACQUISITION$ 150,000.00

SITE IMPROVEMENTS$ 195,000.00

CONSTRUCTION$ 691,600.00

PROFESSIONAL FEES$ 131,500.00

PROPERTY TAXESRESERVES $ 155,650.00

CONTINGENCY 10%$ 160,000.00

DEVELOPER FEE 3%$ 48,000.00

DEVELOPMENTBUDGET $ 1,544,750.00

Feasibility


• Funding Sources

• ProForma


DEVELOPMENTBUDGET

1,544,750.00

EQUITY$ 365,000.00

EXISTING LOAN ON PROPERTY

6.0 %20 YRS

$ 306.500.00

NEW LOAN 6.0 %20 YRS

$ 216,750.00

CRA FAÇADE IMPROVEMENT

GRANT($ 50,000.00)

ENTERPRISE ZONE COMMUNITY

CONTRIBUTION TAX CREDITS

($ 400.000.00)

BROWNFIELD GRANT PROGRAM ($ 400,000.00)

G A P 0

Feasibility


• Funding Sources

• ProForma


INCUBATORRENTAL INCOME

82UNITS $ 345,900.00

CO-WORKINGRENTAL INCOME

200MEMBERSHI

PS$ 366,000.00

COMMERCIAL LEASE INCOME - CAFE

$10.00/SQ.FT. $ 25,000.00

COMMERCIAL LEASE INCOME - NURSERY

$10.00/SQ.FT. $ 6,250.00

COMMERCIAL LEASE INCOME –

Trade Servicesin Bldgs. 3 & 4

$0.00/SQ.FT.

FOLDED INTO INCUBATOR UNIT NUMBERS

LESS VACANCY ASSUMPTION 12 %1ST

YEAR($ 85,428.00)

EGI - EFFECTIVE GROSS INCOME $ 602,391.00

TOTAL OPERATING EXPENSES

w/ TRANSFER TO RESERVES($ 608,423.00)

N O I $ 20,331.00

Feasibility


• Funding Sources

• ProForma


YEAR ONE YEAR TWO YEAR THREE

N O I $ 20,331.00 $ 51,021.00 $ 45,837.00

DEBT SERVICE $ 13,005.00 $ 13,005.00 $ 13,005.00

NET CASH FLOWAFTER TAX $ 7,326.00 $ 38,016.00 $ 32,832.00

DCR –DEBT

COVERAGERATIO

1.56 3.92 3.52

Management

•COMMUNITY COLLABORATIONS•Visit by CRA Director•Visits by Local and State Politicians•Continue to develop relationships with existing and potentially new partners•PLANNING SCOPE•Architect Firm Hired•Begin Interviews for MEPS Team•FUNDING SCOPE•CRA Facade Grant application submitted•CCTC application Prepped•CCTC Resolution requested to be on City Council’s Agenda July 31

2014

JULY AUG

•PLANNING SCOPE•Interviews with General Contractors•Select MEPS Team•Design Development Drawings•FUNDING SCOPE•CRA Facade Grant Award Granted•CCTC Resolution Received•CCTC Application submitted to State

FALL

•PLANNING SCOPE•Construction Documents Phase•FUNDING SCOPE•Finalized Marketing Packet for CCTC•CCTC Application Approved

•Begin Solicitation of CCTC•Develop Fundraiser Committee•Begin Planning 1st Event

•Begin Brownfield Grant Applications

2015

•PLANNING SCOPE•Break Ground Phase I – Parking Area•FUNDING SCOPE•Continue CCTC Solicitations•Submit Brownfield applications

Potential Funding Sources

• The CRA Facade Improvement Grant

• Community Contribution Tax Credit Program• Seeking $400,000 in Business Tax Credit Donations

• Florida Community Loan Fund

• Black Business Loan Program• Tampa Bay Black Business Investment Corporation

• U.S. Department of Veterans Affairs

• Financial Institutions• Bank of America• PNC Bank

Impact & Benefits

g potential

Job creation Training & Funding for

entrepreneurs to launch & thrive Shared employee resources Initiate & Foster Community

Partnerships Decrease initial need for 3 C’s for

Startups (Capital, Collateral, Commitment)

Increase median income Stimulate revenue to local retailers

Unemployment reduced Employable Job Skills Training for

residents and veterans Foster community owned

businesses Increase opportunity for business

workshops Increase assistance to small

businesses Only Co-Working/Incubator in area On-site Café and Daycare

Community Impact Economic Benefits

Challenges & Opportunities

g potential

Loss of or reduced Grant Funding Denied /Delay of Resolution for CCTC Lack of Companies to contribute

under the CCTC Denied Brownfield Designation Not acquire property to North Increase building material/equipment costs Increase labor costs Membership decrease Individual’s perception/fear of going into

business Reduced commitment from Community

Partnerships / Philanthropists

Own and occupy property Rehabilitation vs. New Construction Existing operations/clientele Political awareness/visitations Existing Community Partnerships Location Strong leadership and vision in our

committed Staff/Volunteers /Board of Directors

Commitment from Area Philanthropists Marketing & Business Plan complete Architect/Design Team confirmed Façade Grant application submitted CCTC Resolution on Council’s Agenda

Our Strengths Our Weakness/Threats

Collaborations

Wells Fargo - Bank of America - Railroad Credit Union

Omar A. Maach

Maach Designs

• ….are you ready to hatch your golden egg…?

5508 Incubator Exchange