section1 business plan

Section1: Business Plan V2.1

2 The Section.1 Project

3

I. Executive Summary ...................................4II. Park Overview ............................................9 a. Site Survey .......................................11 b. Major Features ............................20III. Revenue Generation ................................46IV. Development Plan ....................................53 a. Section1 Team ................................56V. Financial Models ......................................77VI. Supporting Documents ...........................82

Table of Contents

S E C T I O N


Section1 is a movement. It is an exercise. A celebration. An example of how the creative minds of our generation can shape communities and enrich our lives. Our foundation is dedicated to fostering opportunities that promote and produce vibrant, progressive and creative forms of urban art. To do this we transform vacant, underutilized and derelict sites into vibrant, creative venues and cultural centers. These destinations, designated as Section1 Parks, provide an oasis for creative expression. A practice that is required to promote diversity, encourage social discourse, and develop innovative environments which lead to systemic positive social change. The development of our network of Section1 Parks will be done utilizing a creative placemaking platform and human centered practices. In doing so we will leverage talent form the communities we serves, instill ownership of these parks and maximize the value such open space can have on our society.

While Section1 Inc. is in its startup phase, a current opportunity to develop its first project, the worlds largest urban art park, will provide the potential for substantial future growth, and a revenue-generating model to allow the organization to obtain financial independence and sustainability. This project is aimed at transforming 3.5 acre site located behind Maryland Institute College of Art and directly underneath the Jones Falls Express way into what will soon be the world’s largest urban art park. Current plans for the site include an 18,000 SF skate park, 60,000 SF of paintable surfaces, two live performance venues and an acre of lush green space.

Since the project’s launch in mid 2012, our team of creative initiators have been fervently working to make this dream a reality. We have successfully obtained official support from all of our critical stakeholders, including Maryland Transit Authority, Maryland Institute College of Art, University of Baltimore, MDOT, The Mayor’s Office, Baltimore Office of Promotion and the Arts, and The Bozzuto Group. In addition to these prestigious organizations we have developed support from several prominent architectural firms, city councilmen, academics, artists, musicians, and community and business leaders.

Section1 INC is now at a critical juncture of its growth and strategically positioned to launch our Phase-1 capital funding campaign, pending official status as a certified 501(c)3 organization. (ETA October 2014) As such, it is the goal of the organization to raise $400,000 in capital funding for our Phase-1 pre-development planning and assessment budget. It is the intention of Section1 to obtain funding partners interested in matching the funds internally raised between October 2014 – March 2016. It is requested that foundational and individual funding partners provide up to $250,000 in matching funds.

MISSIONSection1 is a non-profit organization dedicated to fostering opportunities that utilize urban art to enrich our communities. To do this Section1 (A) transforms vacant, underutilized, or derelict spaces into arts destinations, which serve as mediums for creative expression, exhibition, social discourse, and education; (B) operates these parks as visual and performing arts venues to provide empowering, engaging and sustainable cultural centers—spaces that provide a curated platform for urban art; (C) economically enhances communities and enriches the community experience by attracting neighbors, artists, art patrons, tourists and others, as well as involving communities in park restoration projects; (D) educates artists, communities, and municipalities as to the benefits, craft and culture of urban art; (E) promotes and produces the creation, collaboration, and conversations of urban art; and (F) provides volunteer time and resources, seeks grants, engages in fundraising, and develops other initiatives to enrich the community experience through art.

S E C T I O N

Executive Summary

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DEVELOPMENT PLAN

This phase will consist of three primary milestones, of which include pre-development planning and assessment, community design and outreach, and Phase1 construction and remediation. Upon completion of Phase1 all safety and access requirements will haven been addressed, allowing the organization to begin programing the space with revenue generating events.

Having completed all environmental remediation, site clean up and initial access requirements, Phase-2 will begin with the development of the sites major features. This phase will consist of community design workshops, drafting construction documentation, and final construction of the sites skatepark, entertainment stages, green space sections.

The final phase of the parks development will consist of the official launch of the parks operations. Upon doing so the park will be financially independent and sustainable. Surplus revenues will be repatriated into various grants intended to enhance the collaborative and creative culture of the park. In addition, Section1 will begin to seek additional sites to transform into arts and culture centers.

Phase 1 Phase 2 Phase 3

Timeline: Jan 14 - July 15 Timeline: July 15 - July 16 Timeline: July 16 - 8

SECTION1 TEAM

Samuel PolakoffPresident

Development Director

Richard BestVice PresidentExecutive Director

Heather BradburySecretary

MICA

Ada GoerickeTreasurer

Innovation Consultant

Toby BlumenthalBoard Member

BSO

Chip WatkinsBoard Member

Common Wealth

Promotions

Jeff KayceBoard MemberThe Bozzuto Group

Ann PriftisBoard Member

Clark Priftis Art

Brian GeradoStrategist

Baltimore Corp

Fellow

Julie BuissonStrategist

MBA/MA

Ccandidate

In addition to our Board of Directors, Section1 consists of a team of 8 part-time staff members and over 30 multidisciplinary volunteers and pro-bono consultants. Among this team of professionals consists, artists, designers, environmental, mechanical and civil engineers, developers, architects, and legal and financial consultants. Our development team is lead by members of our Board including Samuel Polakoff, Chip Watkins and Jeff Kayce. Combine the three have over 60 years of experience in real-estate development and have led capital funding campaigns well over $50 million. In addition to their contributions, several local organizations have donated time and resources toward our efforts, providing Section1 with Phase1 environmental, civil and architectural drawings and assessments.

* Indicates Johns Hopkins Alumni


FINANCIAL POSITIONSection 1 is seeking $400k in funding for Phase-1 Phase-1 pre-development planning and assessment. As per the capital allocations noted below, Phase-1 requires $250k in planning and design work. Total land development costs are estimated at $3.5MM, or $1MM per acre. This is a conceptual estimate produced by our team of professional consultants. More concrete estimates will be gathered upon the completion of environmental assessments and planning studies. Our goal is to make the park safe by the end of year 1 with fencing, access, lighting and security. Security will be provided via a partnership with MICA and a security camera plan. Initial seed funding was provided by Maryland Institute College of Art via the MICA LAB Award to the sum of $10,000. In addition the Section1 team raised an addition $10,000 in funding during our initial community outreach campaign during Artscape 2014.

DescriptionYear 1 - Phase 1

Year 1 - Phase 2 Year 2 Year 3

Capital InvestmentsPlanning & Design Work 250,000 Cleaning, clearing, utility and remidiation 2,450,000 Final work to complete parkscape 1,050,000

Total Capital Investment 250,000 2,450,000 1,050,000 -

In addition to $250,000 for preliminary planning and design work, $150,000 is required to cover operational expenses. Operating expenses will fund key positions required to execute our plan, including an executive director, business development director, program manager, and part time administrator. This team will focus on park build out and community engagement. Because the community will be an integral part of the park development process, it is crucial that we secure all four positions through Phase-1 funding. It is the intention of Section1 to obtain said operations funds via an internal fundraising, of which will include a crowd funding campaign.

YoY Growth


Year 1 - Phase 2 Year 2 Year 3 Year 2 Year 3

IncomeCE - Payroll 84,348 84,348 91,095 104,760 8% 15%Community Engagement 14,250 14,250 16,388 16,879 15% 3%

Ops - Payroll 70,000 70,000 75,600 86,940 8% 15%G&A 5,280 5,280 5,438 5,602 3% 3%Computer Equip 4,000 - - 4,000 0% 0%Insurance 4,500 4,500 4,635 4,774 3% 3%Phone Conference & WIFI 1,000 1,000 1,030 1,061 3% 3%Rent - - - - 0% 0%Leasehold Improvements 5,000 5,000 5,000 7,500 0% 50%

Total Operational Expenses 188,378 184,378 199,186 231,515 6% 16%

Operational Budget

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3 YEAR FINANCIAL PROJECTIONS


Year 1 - Phase 2 Year 2 Year 3 Year 2 Year 3

IncomeFriends of Memberships

VIP Sponsor $25,000+ 75,000 81,000 100% 8%Premier Donation $10,000+ 50,000 54,000 100% 8%VIP Patron $5,000+ 35,000 37,800 100% 8%Premier Patron $1,000+ 10,000 10,800 100% 8%VIP Member $500 ($60 monthly) 12,500 13,500 100% 8%Premium Member $240 ($20 monthly) 60,000 64,800 100% 8%Member $120 ($10 monthly): 300,000 324,000 100% 8%

Income from Memberships - - 542,500 585,900 100% 8%

Income per Large Event 18,000 18,000 Number of Events 16 23

Income from Large Events - - 288,000 414,000 100% 44%

Income per Small Event 5,000 5,000 5,000 5,000 Number of Events 5 15 20 30

Income from Small Events 25,000 75,000 100,000 150,000 300% 50%

Total Income before Op. Exp. 25,000 75,000 930,500 1,149,900 3622% 24%

As per the schedule below, the park is estimated to generate $100k through various events in year 1. Our skilled team is actively planning out events and is confident that small event income is conservative and feasible in year 1.

The overall goal is to fund our park through events, sponsorships and memberships. We believe we can achieve the above income, resulting in a self-sustaining park in year 2, excluding capital investments. In addition, as per the economic impact data found on Baltimore, we anticipate creating 5.6 jobs by year 3 based on our estimated spend levels.

ECONOMIC IMPACTWhen the Highline was built in New York City, there was an economic impact to the surrounding neighborhood. Specifically, building the highline created 8,000 construction jobs and 12,000 new jobs due to redevelopment of surrounding neighborhoods. A total of two billion dollars was spent on private investment as a result of the Highline. (NYT.com, 2011) We believe that the Section 1 art park can have a similar impact to surrounding neighborhoods, creating jobs from both surrounding business development as well as construction.

According to a 2010 report from Americans for the Arts, Baltimore’s art and culture organizations spent $251MM on operating expenses related to their organizations and another $14.9MM on capital. In addition, art event related audience expenditures totaled $121.9MM. There is a total of $388MM in direct expenditures on arts and culture in Baltimore, equivalent to 9,505 jobs. (americaforthearts.org, 2010) The report also shows that for every $100k invested in non-profit arts and culture organizations, 2.43 jobs are created. In addition, the average operating expense budget for a non-profit art org was $1.9MM. In 2010, 7MM people attended art events in Baltimore, with 76% of those being city residents. Additional planning and assessments, to understand the organization development and operational budget for Y1-Y3, will be conducted during Phase1 pre-development to better understand the true economic impact of the development of Section1’s initial park.

S E C T I O N

PARKOVERVIEW

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Site Overview


Located in the heart of Baltimore, between the vibrant Station North Arts and Entertainment District and the prestigious Maryland Institute College of Art, sits a vacant 3.5 acre canvas. Surrounding this canvas is a rich community, comprised of artists, designers, and educational institutions, museums, historical landmarks and a demographic largely consisting of the creative class. The site, since the extension of the Jones Falls Expressway (JFX) in the mid 1970’s, has set vacant. Limited access prevents the site from being commercially developed and with the exception of light vehicular traffic, is largely unused. The exception to this can been seen on columns the support the JFX. For nearly 40 years urban artists have found value in this space and used it as a medium for their creative practices. While the space is an asset to these artists their activities are a liability the current landowner MTA, as well as to CSX and Amtrak who maintain the adjacent railroad lines. Current access to the site can be obtained via a sidewalk on the western side of the Fitzgerald property. Vehicular

access can be acquired by traveling through the rear of parking garage located at 80 W Oliver St. Current site access is limited to MTA and Amtrak personal, to include the Amtrak Police who patrols the area. In speaking with our local stakeholders, we have been warned the site may require environmental remediation prior to the safe use of the site. Historically, the site sits on top of what used to be the Jones Falls Way. In the efforts to install the JFX, the Jones Falls was diverted and the current location was filled with dirt. Depending on where this dirt was acquired from, the land may obtain trace amounts of mercury, chromium and/or arsenic. These potential threats have been heavily investigated by members of the Section.1 team. Having spoken with dozens of environmental agencies, developers and remediation experts, this remediation is suggested to be relatively easy. Upon obtaining an official Right of Entry from the MTA, among our first priorities is to conduct a Phase 1 environmental survey to better understand the current conditions of the site.

SITE SURVEY

SITE MAP

39.309622,-76.620939


SITE MAP

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39.309622,-76.620939

WALKABILITYMap indicates the geographic areas, which can access

the proposed site within a 20 minutes commute by foot.

Mapping is broken down into 5, 10, and 20 minutes walking

intervals.


PUBLICTRANSIT STUDY

Source: http://www.mapnificent.net

Map indicates the geographic areas, which can access the

proposed site within a 30-minute commute on public

transportation. Mapping does not include walking times to

or from transit stations.

Area represents commute times Mon-Fri.

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MAJOR PARK FEATURES

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PRECEDENTS

UrbanArtDestinations

MusicVenues

Facilities

skateParks

Wynwood Walls - Miami FL 5 Pointz - Brooklyn NY Graffiti Alley - Baltimore, MD

FDR Park - Philadelphia PA Burnside Skatepark - Portland OR Kinghighway Skatepark - St. Louis MO

Under The Bridge - London CBGB’s- New York, NY 9:30 Club - Washington, DC

GreenSpace

Love Park - Philadelphia PA The High Line - New York NY PNC Firstside Park - Pittsburgh PA


URBANART

Urban art can be found in its many forms, in every city and in every country around the world. It is arguably one of the most important forms of art in human history and one, which will historically define its current generation. While the practice can take many forms, this act of self-express continues to inspire and beautify our communities. As can be found in many cases, urban art is the focus of creative placemaking as it creates an engaging dialogue and creative atmosphere that our societies are attracted to. Our proposed park will act as a creative hub for individuals who wish to practice urban art in any of its creative forms. The site features roughly 40,000 sqft of mural space, which will be curated to allow any patron of the park to participate in this activity.

“Whether the street works seem utopian or anarchic, aggres-sive or sympathetic, stunningly well-executed or juvenile, orig-inal or derivative, most street artists seriously working in the genre begin with a deep identification and empathy with the city: they are compelled to state something in and with the city, whether as forms of protest, critique, irony, humor, beauty, sub-version, clever prank or all of the above.” - Martin Irvne*

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Artist: KAWS

Artist: Banksy

Artist: JR


Co-currated by Jesse James and Stefan Hauswald, Articulate Baltimore was a public

art initiative aimed at activating the Bromo Tower Arts and Entertainment District. The

project, having taken place in 2012, brought a group of national and international

artists to beautify the city of Baltimore. Among the projects many artist included

Pixel Pancho, Never 2501, Billy Mode, Jesse James, Christ Stain, and Stefan Ways. The

projects mark on the local community continues to positively impact the neighborhood.

Open Walls, curated by local artist Gaia, brought ‘the finest and most widely recognized

street artists from around the world’ to participate in a 2 month long urban arts initiative

in the Station North Arts and Entertainment District. Over 20 artists coalesced within

the district bringing to life 25 murals. The district is now Baltimore’s most vibrant and

thriving arts district, attracting tourists, artist and inventors to take residence in this

creative community.

Among the areas most noted urban art projects, is that of Michael Owens’ Baltimore Love

Project. With the assistance of Executive Director Scott Burkholder, Michael has gifted the

city with over 20 murals. The projects message of love has been expressed throughout

Baltimore and helped to connect the people and communities if this great city. The final

wrap of the project was culminated in September 2013, leaving the As of September

2013, the project was successfully completed, leaving opportunity for Baltimore’s next

being urban arts project.

Articulate Baltimore

Open Walls Baltimore

Baltimore Love Project

The controversial urban arts project, Wallhunters, aimed to expose and publicize those

responsible from many of the vacant and dilapidated properties throughout the city.

This project, a collaboration between Slumlord Watch and local artist Nether, utilized

street art as a means of beautification and political expression. Over 16 instillations were

created by renowned arts such as Gaia, LNY, Mata Ruda, Tefcon, Specter and Nanook,

among many others. While controversial, the use of street art as an agent of social

change is a compelling and thought provoking relationship.

Wall Hunters

BALTIMORE’S URBAN ART

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2013 URBAN ART FESTIVALS

Empty Walls - Cardiff, Wales City Leaks - Cologne, Germany Bukruk - Bangkok, Thailand

Roskilde - Roskilde, Denmark Out Door - Roma, Italy

Living Walls - Atlanta GA MURAL - Montreal, Canada Murals - Heerleen, Neatherlands

Art Basel - Miami FL Chale Wote - Jamestown, South africa Festival De Murales - Barcelona, Spain

From Bangkok to Barcelona and Miami to Montreal urban art festivals are being celebrated around the world. This medium is not only a

powerful too of inspiration, creative placemaking and community development, it is most importantly a dialogue to share and spread

our unique cultures. Artist from all over the globe are invited to these events to share their style, heritage and creative visions. Many U.S.

cities such at Atlanta and Miami host annual conferences to bring this diversity to their cities. It is through this diversity and creativity that

innovative and progress cultures are created. It is our intention to create a venue that will host and celebrate this diverse and creative

dialogue year round. In doing so we will create a international recognized hub for creative initiators and practitioners to share their

culture with the communities of Baltimore.


URBANARTPRECEDENCE

Among the first developers to utilize urban art as a means of community revitalization and economic development was Tony Goldman, of Goldman Properties. His earliest success was the transformation of a small burrow of Sothern Manhattan. Leveraging from the creative cultural already present in the community, he developed what is now the artistic heart of New York, known as SoHo. Mr. Goldman also used this strategy to rejuvenate various areas of Miami, including the once delinquent community of Wynwood. The Wynwood district is now a thriving art mecca, host to the world famous out door street art museum Wynwood Walls. The district also hosts the annual Art Basel conference, bringing artist, collectors, and galleries from around the world for a week long festival. It is this same vision that the Section.1 Project sees for the Station North Arts and Entertainment District, and one we intended to actively pursue.

Wynwood Walls - Miami FL

Station North A&E District - Baltimore, MD

CC BY Zizzzy Baloobah

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(top) In a recent development, 5 Pointz , an

urban art mecca located in Brooklyn, New

York has been set to be demolished. For over a

decade the building has provided New York with

a rare legal space for the practice of urban art

and gained international esteem. Over time the

building has become a safety hazard resulting in

the owner deciding to demolish the site and to

transform the space into a residential complex

5 Pointz - Brooklyn NY

Graffiti Alley - Baltimore, MD

South Banks - London

SoHo - New York NY The Tunnel - London

CC BY Walley Gogetz

CC BY Axel Taferner


CC by Cedric Meleard

Baltimore County(Secondary Market)

Baltimore City (Primary Market)

Total Population 817,455*

Population < 5 years: 6.0% 49,047

Population <18 years: 21.7% 177,388

Population of Skaters in County* 57,222

Total Population 621,342*

Population < 5 years: 6.8% 42,251

Population <18 years: 21.5% 130,482

* The International Association of Skateboar Undustries reports that roughly 7.0% of the us population were found to be skateboarders. *United States Census Bureau

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SKATEPARK

STATE & CITY SKATEBOARDING DEMOGRAPHICS

Among the many benefits associated with skate parks include the creation of social gather places, positive mental wellbeing, the promotion of healthy lifestyles, reduction of criminal behavior, and an increase in tourism.* Typically the development of this social value is estimated to cost between $20 - $25 SF. As it is detailed on the following pages, we propose the creation of an addition 18,000 SF skate park be developed within our site. Based from the cost projections of the Skatepark of Baltimore, located in Hampden Baltimore, we estimate construction cost of this park to be roughly $30 SF. Capital investment of $540,000 will be required to construct such a space.

The IASC reports that roughly 7% of the U.S. population identifies themselves as skateboarders. This includes both passive and active users. They recommend that cities develop 1.0 SF of public skate park per user to accommodate the demand of this user group. As shown in the chart above, Baltimore is home to roughly 44,000 skateboarders. The development of a world-class skate park, as proposed, will undoubtedly cater to the population of skate boarders in the outlying geographic areas. Combined with the Baltimore County’s skate boarding population of 57,000 individuals, the proposed park has a direct accessibly market of 101,000 individuals.

A lack of appropriate skate parks leads to vandalism, increased injury rates and the destruction of private and public property. This not only increases liabilities for the city of Baltimore, but also increases maintenance cost for public and private property owners.

SKATEBOARD PARK DEMAND PER CAPITA


SKATEPARK OF BALTIMORE

AT ROOSEVELT PARK

Baltimore Public Skate Parks

Skatepark of Baltimore at Roosevelt Park 16,000 sqft

Carroll Park 10,000 sqft

Total Public Skate Park Size 26,000 sqft

CARROLL PARK

Currently only two public skateboard parks exist within City limits. They include Carroll Park and Skatepark of Baltimore. While the two combined equate to roughly 26,000 SF of skate park space, this number does not reach the current demand of the cities skateboarding population.

We propose that the access demand be developed within our park, as it can easily accommodate 18,000 SF of skateable features. While this would allow the city to reach current needs, it does not account for the increased demand, due to the population growth. It is recommended that in addition to the 18,000 SF skate park of our proposed site, Baltimore proactively increase its public skate parks to accommodate projected population growth. This will not only increase tourism to these locations from geographic outlying areas, but also contribute to attracting population growth of the creative class.

CURRENT NEED

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Contradictory to popular belief, skateboarding is actually a relatively safe sport. The

U.S. Consumer Product Safety Commission has releases various studies suggesting

that skateboarding is actually safer then swimming, bicycling or most high impact

sports such as football, baseball, basketball, and even volleyball. The ISAC* reports

that skateboarding has a nominal injury rate of 0.07%. Compared to basketball (1.6%),

baseball (1.8%) or football (2.2%) skateboarding is a much safer alternative. Over 50

percent of skateboarding injuries are caused by skating on uneven or irregular surfaces.

Safety

The skateboard culture is often alienated by society who inaccurately labels its

practitioners as social outcasts. It is due to this alienation and the lack of public space

that skateboarders are forced to trespass in order to find appropriate spaces to skate.

While it might be misconstrued that skate parks would lead to an increase in crime,

several studies have actually suggested that crime rates drop after a skate park has been

opened. Cities such as Portland and San Francisco have used this to their advantage and

installed skate parks to deter crimes such as prostitution and drug use.

Crime

International research suggests a wide range of benefits associated with skateboarding

and skate parks. In addition to serving as a form of exercise and recreation,

skateboarding also provides a mode of transportation, self-expression and identity. It

encourages youth to become independent, socialize and build self-esteem. Alternative

to streetscapes, skate parks provide a safe space for these practitioners to enjoy the

sport. They create areas for social discourse, opportunities for special events and reduce

city maintenance costs accrued from skating on city property.

Benefits

As is often the case, many agencies choose not to build skate parks due to fear of

litigation, as a result of injuries sustained in the park. As suggested above, there is a

higher rate of injury playing basketball then that of skating. Of the 0.07% injury rate

found in skating, over 50% of these resulted in skating on uneven surfaces. Injuries

are even further reduced when proper safety protection is utilized. It is suggested that

patrons of the park be required to wear proper safety gear, in addition to signing a

waiver prior to skating. The professional design and construction of the proposed park

will further reduce the risk of injury and subsequent liabilities.

Liability


SKATEPARKPRECEDENCE

As can be found in several cities around the country, skateparks are often located in spaces below highway overpasses. Theses location provide an environment out of the elements that not only increase the longevity of the parks materials, but also provides shade and protection to the parks patrons. While these are added values to the skater boarders, skate parks typically take residence under such space due to lack of support from municipalities. As is the case for FDR, Burnside and Kingshighway, the development of these sites were constructed without official approval or funding from the city governments. The skateboarders, finding value in these derelict spaces took it upon themselves to build the parks. While this provides for a compelling story, there is an increased risk in skating terrain that is not professional developed.

CC by Julian Bleecker

Unknown Location

33

Love Park (left) is a plaza that has become an

center of art and urban culture for the city of

Philadelphia . Attracting artists and skaters from

the community, Love Park has become a success

both locally and nationwide. As is often the case,

the presence of art in the area allowed for growth.

The park has become a destination for groups to

meet and sometimes rally. It is a common space

that allows for people of different backgrounds to

collaborate and share ideas.

CC by David Buchhofer

CC by Julian BleeckerBurnside Skate Park - Portland OR

FDR Skate Park - Philadelphia, PA

Kinghighway Skatepark - St. Louis MO

Love Park - Philadelphia PAUnknown Location


SKATE-ABLE ARCHITECTURE

It is important that the design of the skate park take into consideration the mixed use of the proposed park. While certain areas within the park may be designated primarily for skateboarding, the space must still accommodate a wide range of users when it is not in use by a specific demographic. The skate park must also be designed to prevent overflow of skate boarders into areas designated for other uses. This will prevent injury from collisions and an increased positive experience for a wider range of users. It is suggested that the park be designed with skate-able architecture. Be it a sculpture, park bench, walkway, or retaining wall, all spaces must allow for a broad range of uses. This will allow the park to be attractive to a larger demographic and create a more diverse culture.


CC by Cedric Meleard

*Mintel: Live Entertainment Industry 201337

Be it the Apollo Theatre, The Fillmore, CBGB’s, The Troubadour, or The Hacienda, performance venues have proven the ability to not only launch artists careers, but also possess the power to define the music of a generation. This park will prove to be such a space, serving as Baltimore’s premier live entertainment venue.

Live music represents a $10.3 billion dollar US market, a figure that is projected to rise to $12.2 billion by 2016. This market, as defined by Mintel, is divided into 5 separate segments, each characterized by venue size. Included in this market segmentation are clubs, theaters, areas, amphitheaters, and stadiums. The development of Core Park will allow Section1 to operate in Clubs, Theatre and Amphitheatre markets. This provides a unique opportunity to program the site with a wide variety of live performances and cater to a diverse set of industry needs.

CLUBS

First among these three segmentations are clubs. As described by Mintel, this classification consists of small venues with a capacity, typically less then 1,000. These are most often general admission venues that create an intimate and exciting experience for both artist and performers due to their small size. Current plans for the park provide the opportunity for a 6,000sqft venue. This club will have the capacity to host upwards of 600+ people and provide a unique aesthetic unlike any current completion.

Overall clubs account for roughly 12% of all tickets sold in the US, making them the fourth largest grossing entertainment venue. The largest driver in this segments success is attributed the clubs ability to cultivate a loyal fan base. Unlike other performance venues, a clubs intimate nature generates nostalgia for event goers. These spaces are often the first level of venues performed by developing and up-and-coming artist. This trend allows clubs to become a refuge for mainstream or star performers whom often launch major tours at prominent and well-known clubs. As is often the case, many of these star artists will book back-to-back shows at smaller clubs to capture their local market.

While clubs are responsible for 12% of all live entertainment ticket sales, over 35% of this segment is controlled by only 10 venues. Among these establishments include Terminal 5 (NY), 9:30 Club (DC), The Joint (NV), and Fillmore Auditorium (CO) among others. This suggests an opportunity for even a small club to obtain a large market share. This success is largely contributed to the clubs ability to create a unique and engaging environment and its ability to cultivate relationships with key concert prompters.

Concert promoters often operate, own, lease or establish booking rights for clubs. Their industry wide relationships allow them to obtain high-profile shows, which aid in the awareness and reputation of the clubs.

LIVE PERFORMANCE SPACE


THEATERSIn addition to the Club segment, the park also has the opportunity to serve as a Theatre. As described by Mintel, these are characterized as year-round venues offering a capacity upwards of 5,000. Incorporated into the development plans of the park may include a 20,000sqft theater. This venue provides capacity for upwards of 5,000 individuals and a unique aesthetic unlike any venue in the world. The theatres segment is responsible for over 26% of all ticket sales nation wide and the segment with the largest growth rate in the live entertainment market. These venues provide less risk then due to lower fixed cost associated with hosting shows and provide a more appropriate size space for artist who might have a difficultly in attracting enough spectator for larger events.

Much like clubs, over 45% of the theatre market is controlled by only 10 venues. These include Radio City Music Hall (NY), Fox Theatre (GA), Fox Theatre (MI), Fabulous Fox Theatre (MO), and Madison Square (NY), among others. On average each of these venue are responsible for the sale of over 350,000 sold annually.

As detailed in Figure ## the park provides an opportunity for a theatre which could include both covered and uncovered seating and standing areas, general and premium admissions and exclusive VIP des-ignated zones. The site is also naturally designed to provide safe and easy access from the entrance, preventing bottlenecks during admission. An emergency staging area will be reserved toward the rear of the site, allowing easy entrance and access to emergency personnel. As will be required within our lease agreement, 24-hour vehicular access must be provided to Amtrak and MTA personal. Reserved access to these vehicles will be provided to the rear of the site, and monitored by emergency personnel.

AMPHITHEATER

The last live entertainment segment, catered to by the park, is that of amphitheaters. This segment is characterized by outdoor venues with a capacity ranging from 5,000 – 30,000. While the parks theatre, described above, will likely be that of an amphitheater the ability to expand usage to the sites entire entertainment zone allowing it to serve in this larger capacity segment. The parks entertainment zone is comprised of an 80,000sqft space, which a capacity ranging from 10,000 – 15,000 patrons. While it is likely that park will not serve in this capacity for a single concert, this space allows the park to host a va-riety of events, which require a large unique site. As is a growing trend in the live entertainment market, promoters are seeking sites to host multi-day conventions. These events create destinations and allow promoters to sell significantly more tickets then that of a single day show. Examples of such conventions include Artscape, South by Southwest, Comic-Con, or DefCon. In addition to hosting pre-established conventions, the space will also need to host events such as skateboard competitions and indie music and mural festivals. Doing so will not only increase awareness of the park, but also establish it as a pre-mier venue for the major forms of urban art that are practiced within it.

It is important to note, that in order for an event of this scale to be hosted at the site, in depth traffic stud-ies must be conducted. This will also require additional access to be developed to allow for safer egress and to prevent bottlenecks from causing issues to the local communities.

LIVE PERFORMANCE SPACE


Providing an escape from every day scenery allows for res-

idents to create a different connection to the city, one that

is vital to community well-being. Parks are an invitation for

interaction with nature, may it be animals or plants. The in-

clusion of art from the community will only strengthen pride

in the community and care for the surroundings.

GREEN SPACE

Baltimore is currently home to 4,905 acres of green space. This equates to 9.5% of the cities landscape. While the number might seem adequate, when compared to other densely populated cities such as New York or Washington DC with a rate of 19.5%, there is an obvious need for park growth. Of the 4,900+ acres of parkland in Baltimore, less then 2 acres is present in the Station North Arts and Entertainment District. The area is currently home of roughly 6,000 residents. When comparing Baltimore’s average rate of 7.7 acres of land per resident, this is an additional need of over 5 acres of park space in the area. In addition to increasing property values*, stimulating economic development, increasing tourism and attracting new residents parks also increase safety and help to develop the culture of the community. ** We propose that an estimated 40,000 Sqft of green space be created within our park.

**http://www.planning.org/cityparks/briefingpapers/economicdevelopment.htm*http://www.actrees.org/files/Research/parks_on_property_values.pdf

41

The New York High Line (above) transformed a

unused freight rail in the West Side of Manhattan

into an elevated public park. The creators used

open- source design to get ideas from different

architects and picked the winner to develop the

space. The park was developed in three different

stages. The first section opened in 2009 and the

second in 2011. The park attracted over 2 million

visitors in 2009, a number that has expanded to

3.7 million. The success of the project has been

so vast that cities like London are looking to get

their own High Line and have investors flocking

at the idea.

PNC Firstside Park - Pittsburgh PA (above)

The High Line - New York NY (below)


DESIGN INSPIRATION

LOT-EK, a New York and Naples, Italy based architectural firm

founded in 1993. Their sustainable construction approach

involves utilizing locally sourced manmade objects as their

raw materials and then ‘upcycles’ them to develop innovative

and unique buildings. Our vision of all physical facilities will

be developed with a similar approach.

FACILITIES

It is proposed that a 5000 sqft incubator/coworking space be developed in the park. These

facilities will allow us to leverage from the creative atmosphere of the park and channel

that spirit into innovative projects, initiatives and businesses that perpetuate the culture

of the space. We suggested the programing of incubator and resident clients be a mix of

25% technology-based businesses, 25% social entrepreneurs, 25% art and design oriented

organizations and 25% student associations. Creating a multidisciplinary environment is

key to the development of creative and innovative culture. By mixing this broad set of skills

we will not only provide a valuable working environment for our incubator businesses, but

also an atmosphere that provides future opportunities for the members of our resident

student associations.

Source: All images sourced from LOT-EK www.lot-ek.comThis project is in now at affliated, sponsored or endorused by LOT-EK

43Source: All images sourced from LOT-EK www.lot-ek.comThis project is in now at affliated, sponsored or endorused by LOT-EK


RETAIL& CONCESSIONSPACE

Mintel industry research reports that 24% of attendees purchase t-shirts during live

entertainment events. Roughly 13% purchase an event program, 12% purchase CD’s, and

7% would purchase an event poster. When combined with food and beverage purchases,

consisting of 54% of attendees purchasing food, water or soft drinks and the 45% who

reportedly consume alcoholic beverages, a substantial economic opportunity is present.

Our current profoma suggests that in year one, associated revenues could be as high as

$250,000 and rapidly claim to over $600,000 by year 5. In order for the park to capture

these revenues, facilities must be installed to host their sales. We propose these facilities,

much like the incubator space, be built from locally source and recycled shipping container.

Examples of such spaces are provided herein.

Source: All images sourced from LOT-EK www.lot-ek.comThis project is in now at affliated, sponsored or endorused by LOT-EK

45

Source: LOT-EK www.lot-ek.comSource: LOT-EK www.lot-ek.com

Source: LOT-EK www.lot-ek.com Source: LOT-EK www.lot-ek.com

Source: muvbox.com Source: muvbox.com

Source: muvbox.com Source: muvbox.com


REVENUE GENERATION

47

EVENTS

Among the many major features of the park will include several live entertainment spaces. These spaces will range in size from 600 person capacity and smaller up to an estimated 4,000 person venue. This flexibility provides Section1 to capitalize on this site by providing a unique venue for various different events, festivals and special gatherings. Most importantly this allows the park to host live musical performance that cater to cats big and small. Flexibility in performance space also provides Section1 with a strategic advantage in accomplishing our mission of promoting urban artist by providing musicians with larger performance spaces as their skills and fan base grow.

• Artscape• Skate Competitions• Concerts• Music Festivals• Street Art Jams• Corprate Events• Community Gatherings

• Dance Parties• Confrences• Lecture Series• Outdoor Classes• Graduation • Farmers Market• Team Building• Trade Show

• Networking Events• Industry Demos• Award Ceremonies• Weddings• Seminars• Business Dinners• Movie Screenings• VIP Events

The products and services provided by Section1 shall all complement the main mission of the organization, of fostering opportunities that utilize urban art to enrich the lives of the communities we serve. It will be the focus of Section1, for its initial three years of operations, to develop its first urban art. This park will be developed on an abandon 3.5-acre site in Baltimore, Maryland, located behind Maryland Institute College of Art and directly under the Jones Falls Expressway. Upon its completion, this arts destination will serve as the world’s largest urban art park, featuring over 60,000+SF of urban art, two live performance spaces, a 20,000+SF skatepark and over an acre of lush green space.

As a social enterprise, Section1 strives to obtain a triple bottom line in which the foundations social and environmental missions are balanced with financial returns. As such it is our intention to develop various, independently sustainable, revenue generating models to allow our organizations parks to maintain 100% financial independence upon their completion. While these methods of revenue generation will be site specific, the products and services of our first urban art park include a multi-tiered membership program, two live entertainment venues, an art supply store, merchandize sales, and site rentals, among others.


ART SUPPLY

Setion1’s first park will serve as the world’s largest urban art park. The park itself will serve as an arts and culture destination, attracting visitors and artist from around the world. Within this site over 60,000+ sqft of mural space will be on display and available for our patrons to creatively express themselves. The programing of the space will create an environment that encourages and promotes artists to paint on a daily basis. Special curation of the walls will require the artwork in the space to rotate frequently. We project that upon completion of the parks construction, over 650,000sqft of art will be created on our walls every year. The development of a retail store offering a specialized array of artists’ materials and supplies will be provide Section1 with an economic opportunity to meet the increased demand for such materials within the site. The close proximity of an art supply retail store will also provide and added value to our patrons, as limited access to the site prevents them from bringing in their own supplies with easy. Additionally, the development of an art supply store will allow Section1 to attract strategic partnerships with various art supply manufacturers, create subsidized art supply programs for our member artists, and allow Section1 to obtained and disburse art supplies at a below market rate.

49

The development of the park will include the creation of paintable public surface, by over 60,000+sqft. Curation of the space will include several different zones. These zones will be developed to allow Section1 to define a professional and engaging aesthetic within the space. Zones will include areas with different guidelines on who can paint and how long a piece of artwork is allowed to stay up. A tentative programing of mural curation will create 4 separate zones, each representing 15,000sqft of mural space. A break down of these zones is as follows;

Zone1 will act as open space, whereby any visiting patron of the park will be allowed to freely paint. Special templates may be painted on these surfaces to allow patrons with little experience to ‘color in the lines’ and contribute to a predesigned large-scale mural. This zone will also provide mural space for educational program and special signage for various events and festivals. The implementation of this open space will be required to deter park patrons from painting on unwanted surfaces or restricted zones.

Zone 2 will consist of 15,000 sqft of mural space. Unlike the murals in Zone 1, this area will be curated to allow artwork to stay up for no less then 2 weeks. These spaces will be first come first serve. Special signage will be fixed or painted onto the surface indicating when the murals will become available. This zone will also be used to scout talented artist, whom will be invited to submit for a Zone 3 mural.

Zone 3 will be curated by the Section1 Creative Council, in conjunction with a democratic voting system that is integrated into our social media platform. Artist will be required to submit proposals to paint these surfaces. The Section1 team will curate appropriate proposals and submit them to our online social networks. Fans, followers and friends of the park will then be encouraged to vote on their favorite submissions. Winners of these submissions will then be allowed to paint a designated wall, of which will be stay up for no less then 3 months. Winning artist may also be provided with sponsorships, art supplies, or additional resources to execute their design.

Zone 4 is a Section1 designated zone. This zone will be reserved for international talent, special projects and resident artists. This zone will primarily consist of the largest, or more highly visible murals in the park. The Section1 Team, in conjunction with its Creative Council, will determine the curation of these murals. Designated artist may be provided with sponsorships, art supplies, or supplies to execute their designs. Zone 4 artwork will be allowed to stay up for no less then 6 months.

Market Demand

As suggested above, we estimate roughly 650,000 sqft of murals will be painted each year within the park. This equates to a demand in excess of 2,150 gallons of bucket paint and over 22,575 cans of aerosol alone. This equates to direct demand of upwards of $240,000 in paint alone. An art supply retail store located on site will provide Section1 with a strategic advantage to capture this market, in addition to the demand of various other art supply products.

Meals and Refreshments $ 10.02 $ 11.87 $ 10.48

Souvenirs and Gifts $ 1.82 $ 3.00 $ 2.11 Ground Transportation $ 2.22 $ 3.61 $ 2.56

Overnight Lodging (on night only) $ 0.20 $ 2.94 $ 0.87

Other/Miscellaneous $ 1.44 $ 1.25 $ 1.39 Average Event Spending Per Person $ 15.70 $ 22.67 $ 17.41

Category of EventRelated Expenditure

Resident*Attendees

AllCultural Audiences

Non-Resident*Attendees+

=

Nonprofit Arts and culture Event attendees Spend an Average of $17.41 Per Person (excluding the cost of admission)

* For the purpose of this study, residents are attendees who live within the City of Baltimore; non-residents live outside that area.**Source: Arts & Economic Prosperity IV: The Economic Impact of Nonprofit Arts and Culture Organizations and Their Audiences in the City of Baltimore. For more information about this study or about other cultural initiatives in the City of Baltimore, visit the BaltimoreOffice of Promotion and the Arts’s web site at www.promotionandarts.com. Copyright 2012 by Americans for the Arts (www.AmericansForTheArts.org).


MERCHANDISE & OTHER

Market Opportunity

Conservatively, Section1 projects to attract over 250,000 park patrons annually by year 2. With over 60% of these patron visiting the site specifically to attend a hosted event, total spending on meals, refreshments, souvenirs and gifts is projected to range from $1.5MM - $3MM annually. The development of a line of Section1 merchandize will be created to capitalize on this opportunity. In addition to merchandize, the development of an 18,000ft^2 skatepark will provide the opportunity for custom Section1 designed skateboards, safety equipment and various demographic targeted products.

As detailed in the chart above, event patrons spend an average of $10.48 on meals and refreshments per event. This spending includes both food as well as alcoholic refreshments. In order to capitalize on this market opportunity, Section1 will develop facilities to sell these goods, and partner with local beer venders and food trucks to sell goods during Section1 hosted events.

51

FRIENDS OF MEMBERSHIPS

Among the many revenue-generating models provided by the park, include the development of a ‘Friends of’ membership program. This program can be developed to provide additional services to the various users of the park and provide an added value to general and premier donors. While the exact specifications of these memberships are still to be determined, below is an illustration of how they might be broken down.

VIP Sponsor $25,000+: A custom designed package of benefits

Premier Sponsor $10,000+: Special recognition on website, bronze plaque displayed at parks entrance, 50 VIP tickets to Section1 produced events.

VIP Patron $5,000+: Special recognition on website, plaque displayed at parks entrance, 25 VIP tickets to Section1 produced events.

Premier Patron $1,000+: Special recognition on website, plaque displayed at parks entrance, 5 VIP tickets to Section1 produced events.

VIP Member $500 ($60 monthly): One ‘Care Package’ annually. Discounted art/retail supplies. After hours access to the park. 2 free VIP tickets to any Section1 produced event. Free VIP upgrade on any ticket purchase.

Premium Member $240 ($20 monthly): Free park swag. Discounted art/retail supplies. After hours access to the park. 1 free VIP pass to Discounted VIP upgrade on any Section1 produced event.

Member $120 ($10 monthly): Free park swag. Discounted art/retail supplies. Discounted VIP upgrade on any Section1 produced event.

VIP Sponsor $25,000+ 3 $ 75,000.00 Premier Donation $10,000+ 5 $ 50,000.00 VIP Patron $5,000+ 7 $ 35,000.00 Premier Patron $1,000+ 10 $ 10,100.00 VIP Member $500 ($60 monthly) 25 $ 12,500.00 Premium Member $240 ($20 monthly) 250 $ 60,000.00 Member $120 ($10 monthly) 2,500 $ 300,000.00

Total $ 542,500.00

MEMBERSHIP QUANTITY TOTAL

Year 2 Projections


S E C T I O N

53

DEVELOPMENT PLAN


DEVELOPMENTSTRATEGY

THE PROJECT WILL BE DEVELOPED IN THREE PHASES. EACH PHASE WILL HAVE A TANGIBLE IMPACT ON THE SITE. PHASE ONE: SPACE PREPARATION, PROGRAMMAIC DELINEATION AND DESIGN. PHASE TWO: CONSTRUCTION OF DESIGNS. PHASE THREE: TRANSFER OF OPERATIONS.

THE SECTION.1 PROJECT

As described in the following pages, the development of the urban art park will be broken down into three separate phases. The beginning of this development will consists of various site studies to understand the level of environmental remediation that will be required in addition to thorough civil engineer assessments. Phase1 will also include a comprehensive community outreach campaign to inform future design and master planning and programing. Upon the completion of Phase1 the site will be cleaned and all safety and preliminary access issues will have been addressed. This will also allow Section1 to begin programing the site with revenue generating events. Completion of Phase1 is set to be complete July 2015, coinciding with Artscape and a special Section1 music and art festival.

Phase2 will begin with the finalization of the parks designs through community driven democratic processes and be completed with the build out of the parks major features. This phase will also consists of naming the park, finalizing park programing, cultivation sponsors and developing partnerships with local community, arts and educational focused organizations. Completion of Phase2 is set to be complete July 2016, coinciding with Arscape’16 and the grand opening of the urban art park.

Phase3 will being the full-scale operations of the park, to include its skatepark and live performance venues. This will also being the phasing in of additional revenue generating methods such as art retail space and additional merchandizing opportunities. The earned-income model of the park will allow surpluses revenues generated through the ongoing operations of the park to be repatriated back into creative, educational and community driven grants and funding programs.

55

THE SECTION1 PROJECT AS A PRECEDENT OFCREATIVE PLACEMAKING

[X]

[X][X][X][X][X]

Places artists and art at the center of planning, execution and activity.

Leverages the creative potential already present in a place. ative-

Creates opportunities for people of all income levels and backgrounds to thrive in place. Supports economic diversity in the community, providing multiple points of entry and interaction for people of all incomes.

Creates interesting places that capitalize on distinctiveness.

Creates a place where people want to go and linger.

Principles of successful creative placemaking*Artplace

[X][X] Contributes to a mix that makes places more diverse, more interesting

and more active, thus making spontaneous interaction more likely.

Fosters connections among people and across cultures.

http://www.artplaceamerica.org/articles/principles-of-creative-placemaking/

[X][X] Is always presenting itself to the public and encouraging pedestrian

activity.

Creates a place where business wants to be.

[X] Convinces people that a place can have a different and better future.

* Source: http://www.artplaceamerica.org/articles/principles-of-creative-placemaking/


SECTION1TEAM

SAMUEL POLAKOFFPresident

ADA GOERICKETreasurer

ANN PRIFTISBoard Member

BRIAN GERARDOInnovation Strategist

RICHARD BESTVice-President/ Executive Director

CHIP WATKINSBoard Member

JEFF KAYCEBoard Member

Kristen FaberCommunity Outreach

HEATHER BRADBURYSecretary

TOBY BLUMENTHAL **Board Member

JULIE BUISSONDesign Strategist

Jon StruseCreative Designer

JAMAR JONESMedia Lead

Daniela MileykovskyLead Editor

Hannah GarberSocial Media Lead

S E C T I O N

** Bill Clinton excluded

57

DAVIN HONGArchitect (Living Design Lab)

JOE CELLUCCIArchitect (CBH+A)

STEVE ZIGERArchitect (Ziger Snead)

ERIC LEWISArchitect (Alexander Design Studio)

ALAN REEDArchitect (GWWO)

HUNTER PIELLawyer (Law Office of Hunter C. Piel)

BRAD ROGERSSustainability/Development

LEE DRISKILLArchitect (Hord Coplan Macht)

JASON ST. JOHNLawyer (Saul Ewing)

BOB ROSENFELTCivil Engineer (Colbert Matz Rosenfelt)

CHRIS DELAPORTEAdvisor (The Park Advocate)

SAMIR TAYOLRArchitect (Marks Thomas)

Cynthia Blake SandersLawyer (Ober|Kaler)

DENISE SULLIVANEnvironementalist (Urban Green Envt.)

ANDREW ROSEAdvisor (Zest Social Media Solutions)

BILLY MODECreative Council

Michael OwenCreative Council

TTtheArtistCreative Council


PHASE ONEDEVELOPMENT

Phase one’s space preparation will commence with cleaning the site. It is currently a safety and health hazard. It will also be necessary to define the perimeter of the site. The space of the proposed site not only occupies the space beneath Interstate 83 but reaches into the adjacent landscape such that drastically different experiences can be created in the park; those that are restricted by a ceiling (the interstate) and those that are open to the sky. Barriers and other architectural elements will be used to define the spaces.

Currently, access to the site is cumbersome and indirect. The solution proposed is to develop a sidewalk on the westerns side of The Fitzgerald property. This platform will allow visitors to access the site from Mount Royal Avenue and the adjacent light rail station. In addition to this point of access Phase ones pre development assesment will include feasibility studies of addition access points. Preparation includes laying a foundation that will allow the future construction of many different types of spaces. It is impossible to tell how the needs of the spaces will change; perhaps what once was a skate park must become a garden because the desires of the community have evolved. Although this variable cannot be controlled, a foundation which accommodates change must be created.

Phase one will also address community involvement. It is essential that an advisory council of dedicated and knowledgeable individuals be assembled. Their expertise will help guide the project and the allocation of resources available.

Timeline

JAN 2014 - JULY 2015

59

Rough Grading 10475 CY @ $ 7.00 $ 73,325.00 Silt Fence 650 LF @ $ 6.60 $ 4,290.00 Fence Install 1200 LF @ $ 5.00 $ 6,000.00

Sinage 1 ALLOW @ $ 5,000.00 $ 5,000.00

Total $ 88,615.00

Item of Work Quantity Total Unit Cost

Phase I Cost Projections

Sitework

MISC Concrete Requirement 1 ALLOW @ $ 25,000.00 $ 25,000.00

Total $ 25,000.00

Concrete

Elevated Walkway (5,000 SF) 1 ALLOW @ $ 35,000.00 $ 35,000.00 Total $ 35,000.00

Rough Carpentry

Pre-Development Budget 1 ALLOW @ $ 400,000.00 $ 400,000.00

Total $ 400,000.00

Pre-Development Planning

$ 548,615.00


GRAND PRIX FENCING

Increasing site safety is the number one priority of Phase one

site development. To prevent patrons from accessing both

the CSX and Light rail tracks, fencing must be installed. It is

suggested that roughly 1400 LF of the Grand Prix fencing

be repurposed to address the safety needs of the park. Not

only is this an aesthetic match for an urban art park, but also

a unique way to integrate Baltimore’s past, into its vibrant

future.

PHASE ONE

As shown in the site map above, Phase I will consist of addressing safety concerns around the parameter of the site. Roughly 1400 LF of fencing will be required to prevent patrons from accessing the railroad tracks. Installation of fencing will require retaining walls to be developed along certain portions of the parameter. Fencing around the northwest side of the park is currently installed to prevent access to the Jones Falls waterway. In addition to safety, thorough site cleanup is required to remove trash and debris from the site. This will include leveling the ground plane under the JFX, and environmental cleanup of the wooded areas on the northern side of the site. Gates will need to be installed on three locations around the park. These gates will prevent unauthorized foot and vehicular traffic from accessing restricted MTA, CSX and Amtrak property. Additionally the development of an access point to allow pedestrian traffic will be required. (See page 29 for proposed access plans)


Design by Dina Markakis

63

Among the major obstacles facing the development of the park includes increasing access for pedestrian traffic to the site. The solution proposed is to develop a raised platform on the western side of the Fitzgerald property, located at 1201 Mt Royal Ave. This location provides many advantages due its it proximity to the Mt Royal light rail station and its accessibility from Mt Royal Ave. Additionally, the proposed entrance also provides a prime location for signage to be develop to increase awareness of the park and its primary access point. The open courtyard located at the promenade of this proposed access point allows for the safe assembly and collection of patron without disrupting the residence of the Fitzgerald property. An increase in pedestrian traffic to this site will also be advantageous to the retail space adjacent to the entrance. This retail space, currently the host of Unexpected Art, could be converted into a bar or restaurant and cater to the increased depend such a park would generate. Our precedent, Wynnwood Kitchen & Bar, is a prime example of the success such establishments have obtained being located in close proximity to urban art landmarks. It is after this establishment that the proposed ‘Paint Bar’ is modeled after.

ACCESSDesign by Dina Markakis

Design by Dina Markakis

Wynwood Kitchen & Bar


PRELIMINARY DESIGNSCONCEPTS


PHASE TWODEVELOPEMENT

Phase II of the park development will consist of finalizing the park design determined by community design conversations, translating these designs into construction documents, and finally the construction of the park. This will also include the creation of branding, park logos and the installation of signage at a preselected site, adjacent to the Mt Royal light rail station and any additional access locations determined during Phase I. While the timeline of site construction will largely be determined by our effectiveness of raising the required capital investment, it is tentatively scheduled to July 2016. While early investment will undoubtedly speed up this process, navigating through the various municipalities will take time. It will be required that seed or grant money be obtained to fund part time staff to manage the project through both Phase I & II. As previously stated, upon the completion of Phase I and contingent upon the results of an environmental assessment, the site will be in a state which will allow it to host various festivals, concerts and community events. Hosting these events will provide the park to generate revenues to be used in further site development. While the park will need to rent appropriate equipment and facilities to host these events, it is an opportunity that provided revenue generation as well and an increased awareness of the park.

Timeline

JULY 2015 - JULY 2016

Roadway Asphalt Paving 772 CF @ $ 105.00 $ 81,060.00 Silt Fence 650 LF @ $ 6.60 $ 4,290.00 Curb & Gutter 630 LF @ $ 10.00 $ 6,300.00 Storm Drain Piping 180 LF @ $ 56.00 $ 10,080.00 Total $ 101,730.00

Item of Work Quantity TotalUnit Cost

Phase II Cost Projections

Sitework

Concrete Sidewalk - 4” 26000 SF @ $ 6.75 $ 175,500.00 Concrete Roadway - 6” 4000 SF @ $ 8.00 $ 32,000.00Retaining Walls - 15’ 92 CY @ $ 150.00 $ 13,800.00 Total $ 221,300.00

Concrete

Railings 450 LF @ $ 65.00 $ 29,250.00 Stairs 20 LF @ $ 205.00 $ 4,100.00 Total $ 33,350.00

Metals

$ 2,804,635.00

General Lighting 1 ALLOW @ $ 25,000.00 $ 25,000.00 General Power 1 ALLOW @ $ 10,000.00 $ 10,000.00 Total $ 35,000.00

Electrical

Skatepark 18000 SF @ $ 30.00 $ 540,000.00 Landscaping 15000 SF @ $ 30.00 $ 450,000.00 Facilities 5000 SF @ $ 200.00 $ 1,000,000.00 Total $ 1,900,000.00

Major Features

Contest Prizes 1 ALLOW @ $ 25,000.00 $ 25,000.00 Construction Docs 1 ALLOW @ $ 10,000.00 $ 10,000.00 Marketing 1 ALLOW @ $ 15,000.00 $ 15,000.00 Total $ 50,000.00

Site Design

Salaries 1 ALLOW @ $ 373,255.00 $ 373,255.00 Admin Expenses 1 ALLOW @ $ 54,560,.00 $ 54,569.00 Total $ 373,255.00

Operational Budget

69

71

RESERVED FOR SITE RENDERS


Upon the completion of Phase II and the installation of facilities to hosts the parks various revenue-generating models, daily operations will be transferred over to a pre-established business entity, bestowed with the going concern of the park. As it is proposed on the following page, we suggest this business entity be in the form of a Benefit Corporation. Ongoing operations of the park will include the management and growth of the parks various business models, the curation of creative activities within the space, and the outward communication of the parks activities. It will also be required that an individual be elected to pursue and monitor the ‘material positive impact’ of the organization. The above activities suggest the need for the appointment of a council of creative, executive and benefit directors. This triumvirate will share the responsibility of the parks operations and through a tri-partisan approach; direct the growth and success of the organization. Phase III will also include the implementation of the parks programing. This will be comprised of coordinating festivals, concerts and various community events, curating call for artists and the implementation of art within the park, the development of a creative and innovative culture within the incubator space and monitoring and recommending any changes that will create a more positive experience for our broad range of end users.

As it is our intention to serves a sub-cultural hub for the city of Baltimore, continuous community outreach will be required to promote the park and increase engagement with the cities various non-profit and arts & culture related organizations and communities. These entities may include performing artists and theatres, museums, educational institutions, bicyclist, visionary and contemporary artists and muralists, industry associations, local bars and restaurants, musicians, poets, and a wide variety of the various creative classes found within Baltimore.

PHASE THREE

Transfer of Operations

Timeline

JULY 2106 -

8

PROGRAM EXAMPLE

VANDAL-TO -VALUEPROGRAM

The US Department of Justice reports that the repair and removal of graffiti damage cost $15 billion annually and contributes to over 100,000 juvenile arrests each year. Traditional approaches for the reduction of graffiti-vandalism include reactive removal, the development of hotlines to report tagging and rewards for information leading to the arrest of a graffiti-tagger. Several cities, such as New York, have even created ‘Vandal Squads’ to document, track and criminally prosecute vandals and urban artists. While cities go to great lengths in enforce the prohibition of this form of expression, their efforts are not effective at lowering graffiti rates year over year. We propose an alternative solution aimed at reforming these individuals and their practice into a form that creates social value. Rather then incarcerate these graffiti-tagger we suggest that a Vandal-to-Value Program be instituted. Upon arrest and convection individual will be required to attend this program, whereby they will be required to conduct a pre-determined number of comminute service hours.

This community service will be dedicated to the clean up of graffiti and tagging around the proposed park site, and various locations around the city. In addition to this community service, individuals will also be required to meet business and homeowners who struggle with vandalism and also be given art classes and instruction by prominent artists from the Baltimore area. This program will be dedicated to challenging these individuals as artists rather then criminalizing them. By conducting these classes at the park we will also invite them to practice their expression within the legally sectioned space rather then on illegal surfaces around the city.

75


S E C T I O N

77

FINANCIALMODELS


Financial Summary

yoy growth

DescriptionYear 1 -Phase 1

Year 1 -Phase 2 Year 2 Year 3 Year 2 Year 3

Friends of MembershipsVIP Sponsors $25,000+ 75,000 100,000Premier Donation $10,000 50,000 60,000VIP Patron $5,000+ 35,000 40,000Premier Patron $1,000+ 10,000 11,000VIP Member $500 ($60 monthly) 12,500 13,500Premier Membership $240 ($20 monthly) 60,000 64,800Member $120 ($10 monthly) 300,000 324,000Income from Memberships $542,500 $613,300 13.05%

Income per large event $18,000 $18,000 $18,000Number of large events 2 16 23Total Income from large events 0 $36,000 $288,000 $414,000 700.00% 43.75%

Income per small event $5,000 $5,000 $5,000 $5,000Number of small events 5 10 25 30Total Income from smal events $25,000 $50,000 $125,000 $150,000 66.67% 20.00%

Merchandise and food per person $12.59 $12.59 $12.59 $12.59No of people 10,000 30,000 130,000 175,000Total Merch & Food $125,900 $377,700 $1,636,700 $2,203,250 225.00% 34.62%

Total Income excluding Operating Exp $150,900 $463,700 $2,592,200 $3,380,550 321.77% 30.41%

yoy growth

DescriptionYear 1 -Phase 1

Year 1 -Phase 2 Year 2 Year 3 Year 2 Year 3

CE - Employee Related Expenses 84,348 84,348 182,192 209,520 8% 15%Community Engagement 14,250 14,250 32,775 33,758 15% 3%

Ops - Employee Related Expenses 70,000 70,000 151,200 173,880 8% 15%G&A 5,280 5,280 10,877 11,203 3% 3%Computer Equpment 4,000 0 4,000 4,000 0% 0%Insurance 4,500 4,500 9,270 9,548 3% 3%Phone Conference & Wifi 1,000 1,000 2,060 2,122 3% 3%Rent 0 0 0 0 0% 0%Leasehold Improvements 5,000 5,000 10,000 15,000 0% 50%

Total Operation Expenses 188,378 184,378 402,373 459,032 7.95% 14.08%

81

S E C T I O N


SUPPORTINGDOCUMENTS


September 21, 2014

To Whom It May Concern:

I am writing this le�er in support of Section1, an organization dedicated to transforming blighted spaces into arts destinations and cultural centers. The current efforts of Section1 are aimed at revitalizing an abandoned 3.5-acre space, in the heart of Baltimore, into an unprecedented arts venue. I have had the pleasure of personally touring this space and can unconditionally state that I share the inspired vision for its transformation.

As an active member of the Baltimore design, fine arts and greater cultural community, I can say with certainty that this initiative has the opportunity to benefit our city through urban revitalization, community building, and by creating a unique and safe space for the current and future cultural leaders of Baltimore to thrive. The fact that such a convergent vision is unprecedented will, without question, elevate the perception of Baltimore as being a city that embraces and supports innovative thinking and action.

As a supporter of Section1’s efforts, and on behalf of Mission Media and MissionTix, we humbly request that you too show your support for this organization as they aim to accomplish such ambitious and needed goals.

Sincerely,

Todd HarveyFounder / Creative DirectorMission Media, LLC & MissionTix, LLC

89

September 24, 2014


On behalf of the Joseph and Harvey Meyerhoff Family Charitable Funds, I am writing this letter in support of the Section1 project. This initiative, spearheaded by an expert team of visionaries, developers, and creative and educational leaders, will undoubtedly prove successful. The team’s ability to garner political, community and municipal support is impressive and bodes well for the project in its early stages.

This park will fill a void in the regional cultural arts scene by showcasing urban art, serving as a gathering spot in an urban park setting and as a home for live music. Many of the members of the Section1 team have a strong history of collaboration with the community, and this project is poised to have great impact on the Baltimore community and beyond. The completion of this ambitious project will provide Baltimore with a premier urban arts venue that not only showcases and promotes the unique talent and culture of our great city, but also has the potential to become a true asset to Baltimore City.

With great excitement, I express my support of Section1 and their team of creative initiators. I believe this innovative group of professionals has the right talent to make this vision a reality. I endorse and support the vision of this groundbreaking Section1 project.

Sincerely,

Elizabeth “Buffy” MinkinVice President of Baltimore and Domestic Initiatives

91

September 24, 2014

Ref: Section1 Project Letter of Support


I am writing this letter in support of the non-profit organization Section1. This organization is dedicated to transforming blighted urban spaces into arts destination and cultural centers. Current efforts of Section1 in Baltimore are aimed at revitalizing an abandoned, multidimensional, 3.5-acre space in the heart of the city, into an unprecedented arts venue.

As an active member of the Baltimore architectural community, I can say with great resolve that this initiative will bring an immense benefit to our city by enriching existing resources for Baltimoreans on a daily basis. Well planned city parks that provide urbanites a solid connection to nature, a place to socialize and a greater sense of community are essential in the development and maintenance of thriving urban lifestyles. To neglect this pure and simple principle is to abandon the idea that the inner city can afford its inhabitants a joyful and pleasurable environment in which to live.

As a supporter of Section1ʼs efforts, and on behalf of Marks, Thomas Architects, we humbly request that you too show your support for this organization as they aim to accomplish such ambitious and needed goals.

Sincerely,

Samir Michael Taylor Designer Marks, Thomas Architects 1414 Key Highway Baltimore, MD 21230 410.539.4300 ext. 3332 www.marks-thomas.com

93

September 24 2014 To Whom It May Concern: I am writing this letter in support of Section1, an organization dedicated totransforming blighted spaces into arts destination and cultural centers. Thecurrent efforts of Section1 are aimed at revitalizing an abandoned 3.5-acrespace, in the heart of Baltimore, into an unprecedented arts venue. As an active member of Baltimore’s tech start-up scene, I can speak withgreat resolve as to the importance of creative incubators, such as theenvironment that will be created in this park. It is through platforms suchas Section1 that ideas can be shared an innovation flourishes. As a leaderin the Baltimore music industry, I can attest to the need for uniqueperformance spaces such as that proposed by the Section1 team. Thisspace will provide our city with a unique venue that will allow Baltimoreto attract a diverse group of international acts not yet met within thecurrent market. As a supporter of Section1’s efforts, and on behalf of MissionTix, wehumbly request that you too show your support for this organization asthey aim to accomplish such ambitious and needed goals. Sincerely, Greg CangialosiCEOMissionTix, LLC

616 Water Street Suite 225Baltimore, MD 21202 p 410 982 0799 [email protected]


100 INTERNATIONAL DRIVE | BALTIMORE MD 21202

September 22, 2014

To Whom It May Concern: It is my great pleasure to write this letter of recommendation on behalf of Richard Best and the Section 1 team who have launched one of the most transformative urban redevelopment projects in Baltimore -‐-‐ and perhaps anywhere. Section 1 reimagines a totally "dead" urban space under the Jones Falls Expressway as a dynamic, visually intriguing and socially engaging public space for the diverse community in Baltimore and Station North. Beyond its rich potential for connecting people within Baltimore, Section 1 also promises to be a magnetic attraction for a wide range of visitors and tourists.

I would also like to express my support for Richsrd Best -‐-‐ on of the most memorable individuals I have encountered in my many years at Johns Hopkins. As an Carey/MICA joint MA/MBA student in the Leadership Ethics Seminar and CityLab courses, he impressed me – and his graduate student colleagues – with the breadth and depth of his knowledge and diligence in class work, but especially in his fearlessly imaginative and cogently analytical approach to managing the complex, daunting challenges of launching a major social innovation initiative. His intuitive grasp of big picture context and consequences as well as the granular details of project management are truly impressive.

As a Carey/MICA alumnus, Richard brings all these qualities to Section 1. I hope we can keep him in Baltimore, but wherever he goes, Richard is certain to build a unique career of stellar achievement that makes the world a better place.

Please do not hesitate to contact me directly with further inquiries about Richard Best and Section 1..

Sincerely,

Lindsay J Thompson Associate Professor [email protected] http://citylab.jhu.edu/ Johns Hopkins Carey Business School Johns Hopkins Bloomberg School of Public Health


[email protected] 443 939 1343 September 23, 2014 To Whom It May Concern, I am writing in support of Section.1 and their efforts to create a safe space for a marginalized art form. As a professional street artist of 11 years, I’ve seen many of the battles fought to put up art in the public sphere circling around misinformation and misconceived notions of the art form. As the genre continues to change, platforms for dialog are necessary for positive integration of art in community. Section.1 can be one of those needed platform for us artists out there grinding to communicate and create with our neighbors. The general public will have opportunity for observation of and discussion with the creatives that are painting on walls all around town and beyond. Making that connection happen is priceless! The temperature of the street art scene continues to rise as artists are pitted against each other by developers. Civic institutions play artists as pawns in unhealthy forms of gentrification. Sometimes the job is very lonely and there are few opportunities for us to work around and with each other. I see Section.1 being a place that is not only safe from the red tape and politics of legal walls “above ground”, but fosters community among a divided group of artists. Happy hours for artists are fun, panel discussion helpful, but we would all rather just be painting. It’s what a lot of us live for. Putting a bunch of people like that together in a setting as natural as the proposed Section.1 will grow exciting new art projects and original businesses ventures that would not have existed without this venue. It will also help grow a unified community of passionate creatives. Section.1’s plans to bring outside artists to work with locals is another needed component to Baltimore. Traveling to paint in different towns, I have unfortunately seen many artistic communities become bubbles, closed to outside presence or influence. Baltimore has a little bit of that going on as well. Bringing in artists to work with locals is a good thing. Section.1 would be an attractive place for outside artists among a white noise of invitations to run-of-the mill mural festivals and painting projects. Programming high level talent at Section.1 would offer up and coming artists (at MICA and beyond) an opportunity to be inspired by and learn from masters of the craft. It would offer opportunities for networking and continuing to export the Baltimore art scene to other areas around the globe. It would offer artists a different perspective. The needs are many to make Section.1 a reality. Please join me in supporting the creation of Section.1 as well as all of the positive changes it will inevitably bring. Sincerely, Michael Owen Artist

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