ballpark village meeting presentation
TRANSCRIPT
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Ballpark VillageWednesday, January 19, 2011
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Ballpark Village
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Ballpark Village
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Ballpark Village
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Ballpark VillageBallpark Village
Office Building 225,000 sq. ft.
- 225,000sfOffice Building- Premiere office building in
the region- First new office building in 30
years- Building becomes an
extension ofBuschStadium
- Green Building Efficiencies
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Ballpark VillageBallpark Village
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Ballpark VillageBallpark VillagePlanned Initial Development Project Phase
HighlightsOffice, 225,000 square feet
Retail, 100,000 square feet
Parking, 500 spaces
Infrastructure Streets
Utility Work
Sidewalks, lights and
landscaping
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Ballpark VillageBallpark VillageKansas City Sample Tenants
PBR Big Sky
SPRINT
Mosaic Ultra Lounge
Shark Bar
Makers Mark Bourbon House &
Lounge
Vinino Wine Bar & Bistro
Angels Rock BarBristol
Ragland Road Irish Pub
Jos. A. Bank
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Ballpark VillageBallpark VillageLouisville Fourth Street Live
Sample Tenants
Borders Books
CVS
Office Depot
Red Star Tavern
Ri Ra Irish Pub
Lucky StrikeT-Mobile
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Entertainment/Activities draw between 5 to 10 millionvisitors to these mixed-use projects
Kansas City 150+ days per year ofactive
programming
Louisville 150+ days per year ofactive programming
Ballpark VillageBallpark VillageLive Component Programming
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This is the firsttime in St. Louis history that a project ofthis size has made this level ofcommitment and createdsuch a positive outcome for minority and women-owned
businesses.
---April Hendricks-Brown of KWAME, the MBE/WBE and MentorProtg Program Manager
Ballpark VillageBallpark VillageMinority Participation Summary
Cardinals Busch Stadium
80 MBE/WBE firms received 130 contracts worthover $65 million
MBE Protg Program led to $21 million in contracts
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Cordish Project MBE ParticipationGoal
MBE ParticipationAchieved
4th Street Live!
Louisville, KY15% 19%
Capital Centre I
Prince Georges, MD
25% 28%
Capital Centre II
Prince Georges, MD25% 26%
Kansas City Professional
Services, Kansas City, MO21% 39%
Kansas City Construction
Kansas City, MO 22% 22%
Pier4Office Building
Construction
Baltimore, MD
30% 30%
Ballpark VillageBallpark VillageMinority Participation Summary - Cordish
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Cordish Project Construction Permanent4th Street Live!
Louisville, KY600 500
Atlantic City
Atlantic City, NJ1,400 2,500
Capital CentrePrince Georges, MD
1,200 1,300
Kansas City
Kansas City, MO1,200 2,000
Pier4
Baltimore, MD600 500
Power Plant Live!
Baltimore, MD400 600
Power Plant
Baltimore, MD500 700
Ballpark VillageBallpark VillageJob Creation Summary
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General Contractor TBD
Union Labor Intend to use Union Construction Trades
LEED Certification Planning to pursue designation
ADA will meet or exceed Federal requirements
Timing Planned Bond Sale 2011 (contingent on financial markets)
Ballpark VillageBallpark Village
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Ballpark VillageBallpark VillageCurrent Proposal
Developer and City in process ofcompletingdevelopment agreement
Requirements previously negotiated will remain in
place
Any changes will be reflected in the Board ofAldermen process
225,000 square feet ofoffice, 100,000 square feet ofretail, 500 parking spaces
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Ballpark VillageBallpark VillageIssue 2008 Proposal
Development /Incentive
Base Levels
Retail*: 100-360,000 SF / $130 per SFOffice*: 100-750,000 SF / $100 per SFResidential: 100-250 units / $25,000 per apartment, or $50,000 percondoParking: 1,200 spaces / $31,400,000Infrastructure: $15,100,000 - $23,000,000 (withhotel)
Minimum Incentive $ 82,000,000 plus Issuance Costs
Maximum Incentive $188,700,000 plus Issuance Costs
Pledge of Available
Revenues
PILOTs: 25 yearsEATs: 25 yearsOther EATs*: 10 years after 25 years
StateR
evenues: 25 yearsCID Sales Tax: 35 yearsSpringing TDD Sales Tax: 35 years (imposed if DSC on Bonds lessthan 1.10)TDD Ticket Tax: 35 years50% ofBottom-HalfEATs: 35 years (backstop)
* Minimums forOffice and Retail are 100,000 SF each, butcombined the two musttotal atleast 325,000
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Ballpark VillageBallpark Village
Issue 2008 ProposalFinancing Structure -Bonds not a general or moral obligation ofCity
-Developerto purchase $5,000,000 in subordinate bonds-Bonds issued at outset ofDevelopment Project-Bond proceeds disbursed perleasing and construction schedule
Development Project Area -Northern ofOld Busch Stadium-Approximately 10 acres-Includes Bowling Hall ofFame site
Future Development Future phases contemplated with subsidies calculated per square footor unit, butlimited to amount ofavailable revenues
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Ballpark VillageBallpark Village
Issue 2008 ProposalMBE and Workforce
Goals - Construction
-Developer willcomply with Mayors Executive Order #28-Citys DBE Program Office must approve MBE/WBE Utilization Plan priorto any disbursements to Developer-Developer willcomply withOrdinance No. 67321, which adopts a Non-Hispanic Minority workforce goal of20.9% and a Hispanic-Americanworkforce goal of1.47%
Workforce Goals
Ongoing Operations
-Developer shall use good faith efforts to ensure that all business tenantsseek referrals from SLATE ofminorities available for job openings-Developer shall establish an Office ofTraining and Employment withtheexpress purpose ofmaximizing employment opportunities for Cityresidents, particularly the historically disadvantaged population
EminentDomain Only available for public uses as defined inArticle XXI ofCity Charter
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Ballpark VillageBallpark Village
Issue 2008 Proposal
New Markets Tax
Credits (NMTCs)
-City required to assistin seeking NMTCs from a third party with respecttoInitial Development Project Phase to generate $10,000,000 ofnet benefit-City willcause SLDC to reserve $22,500,000 ofSLDCs allocation untilJune 15, 2010-Developer required to provide financing through additionalthird-partyNMTCs or additional subordinate bond purchase in an amount equalto anygap remaining after application ofCity and third-party NMTCs (subjectto
reduction ifinitialthird-party NMTC contribution results in benefit ofless than$10 million)
Completion Guaranty -Guaranty for each Element ofeach Phase from an entity with a minimumliquid net worth;ifPhase notcompleted within 7 years ofBond Closing,Guarantor pays liquidated damages to City-Financial penalties forfailure to complete within 2 years ofBond Closing
Clawback Developer required to respend or pay to Bonds 75% ofany negotiated costsavings
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Ballpark VillageBallpark Village
Issue 2008 Proposal
Bond Closing Anticipated Spring/Summer 2009 - maximum 36 months followingapproval ofMODESAApplication by State (contingent on financialmarkets)
Timing of Project
Completion
-For each Phase, within 4 years from Bond Closing forthat Phase,but Developer will use commercially reasonable efforts to complete in
2 years from Bond Closing-No incentive for any Office space more than 5 years afterfirsttenantofany Office space-No incentive for any residential or retail portion ofProject after 10years following the date ofthe DevelopmentAgreement
Green Elements Developeris exploring LEED certification on new office building
Hotel -No incentive forhotel
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Ballpark VillageBallpark VillageDevelopment Plan
Describes the proposed development and provides the Downtown EconomicStimulusAuthority and the Board ofAldermen with a reasonable basis onwhichto make certain findings and determinations required by state law andto grantthe economicincentives described in the plan.
Minimum-325,000 square feet ofcommercial space (consisting ofoffice, retail,entertainment and restaurant space), 500 parking spaces, streetscape andsite infrastructure improvements.
Maximum-1.1 million square feet ofcommercial space (consisting ofoffice, retail,entertainment and restaurant space), 1200 structured parking spaces,
streetscape and site infrastructure improvements and 250 residential units.
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Ballpark VillageBallpark VillageBlighting Analysis
Deteriorated site conditions
Deteriorated site conditions
Uneven surface permitting ponding ofwater
Deteriorated former pedestrian plaza area
and current parking areaSource:Development Strategies
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Ballpark VillageBallpark VillageBlighting Analysis
Typical subsurface conditions below pedestrianplaza area with rubble from previous development
Deteriorated Site Conditions
Deteriorated sewerinlet alongeast side ofStadium Plaza
Lack ofsidewalk and deteriorated formerplanting area along south side ofWalnut Street
Source:Development Strategies
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Ballpark VillageBallpark VillageMarket Study
Source:Development Strategies
Market will supportthe proposed mix ofoffice, retail, andentertainment uses
Market will supportfuture residential development oneofpremier residentiallocations in the region
Increase downtowns ability to capture demand withinthe region, and compete with other major downtowns inthe Midwest
A major new destination to capture visitor and touristspending
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Ballpark VillageBallpark VillageCost BenefitAnalysis
Estimated Jobs/Annual Earnings
Construction Jobs Earnings
Minimum
Maximum
1,300
2,580
$65 million
$129 million
Ongoing Jobs Earnings
Minimum
Maximum
1,459
4,558
$91 million
$231 million
Source:Development Strategies
Construction jobs are annual equivalent
Earnings forconstruction is forconstruction period and earnings for ongoing isannually
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Ballpark VillageBallpark VillageCost BenefitAnalysis
Benefits to Taxing JurisdictionsNPV OF TAXES OVER 25 YEARS
Current Minimum Maximum
St. Louis City $1,184,000 $19,925,000 $79,990,000
Community College $163,000 $249,000 $872,000
St. Louis School District $2,914,000 $7,313,000 $25,336,000
Metro Zoo/Museum $185,000 $278,000 $935,000Sheltered Workshop $87,000 $116,000 $281,000
St. Louis Library $339,000 $468,000 $1,241,000
Mental Health $46,000 $56,000 $76,000
MSD $86,000 $154,000 $755,000
Community Children'sFund $106,000 $128,000 $174,000
MetroLink $0 $1,088,000 $3,892,000
Metro Parks District $0 $211,000 $389,000
$5,110,000 $29,986,000 $113,941,000
State $27,589 $29,480,000 $102,113,000
$5,137,589 $59,466,000 $216,054,000
New Development New Development
Source:Development Strategies
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Ballpark VillageBallpark VillageCost BenefitAnalysis
Benefits to Taxing Jurisdictions
No Build Scenario - $6 million (NPV over25 years) to taxing jurisdictions
Build Minimum Range Project Development (325,000 sq ft of commercial)
Project will generate $109 million (NPV over 25 years)in taxes
$50 million (NPV) eligible for project support$59 million (NPV) distributed to taxing jurisdictions
Build Maximum Range Project Development (1.1 million sq ft of commercial,
residential units)
Project will generate $429 million (NPV over 25 years)in taxes$213 million (NPV) eligible for project support
$216 million (NPV) distributed to taxing jurisdictions
Source:Development Strategies
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Ballpark VillageBallpark VillageEconomic Feasibility
Examined the private and publiccomponents ofthe project
Construction costs
ProjectRevenues
Completion Timelines
Other assumptions
Costs estimates are necessary and appropriate
Amounts are feasible and reasonableNon MODESA sources
MODESA sources
Source:Development Strategies
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Ballpark VillageBallpark VillageShift-Share (Net-New)
Weighted Average of90
%over
25years
Source:Development Strategies
Initial years ofproject may be a shiftfrom elsewhere indowntown and the region
Continued downtown growth will backfill existing spaces
with new users New office space will generate interestfrom out oftown
firms and national site-selection firms
New growthin the leisure and business visitor market
Support new retail and entertainment businesses in thestate
Spin offbenefits forthe entire region
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Ballpark VillageBallpark VillageMODESA Steps
City MODESA Meeting
Complete DevelopmentAgreement
Board ofAldermen Start Process
HUDZ Committee
Board ofAldermen
E andABoard ofAldermen Complete Process
Mayor Signs 10 days after passage, Ordinance effective 30 days aftersigning
MODESA Application to State
Missouri Development Finance Board (MDFB)
Bond Closing
Construction Starts Anticipate Summer Fall 2011