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Home My WebLink About031108 Town CenterMarch 11, 2008 PHASE IV-TOWN CENTER Block 2 (Beacon Building) 1 Site of New Tower 2 3 Town Center Development Recap Town Center Development Recap Phase I –February 2000 Phase I –February 2000 ? ? Office Tower (Block 4) Office Tower (Block 4) ? ? Towne Bank (Block 5) Towne Bank (Block 5) ? ? Hilton Garden Inn (Block 5 –176 rooms) Hilton Garden Inn (Block 5 –176 rooms) ? ? Phase II –June 2003 Phase II –June 2003 ? ? 342-unit Cosmopolitan Apartments (Block 10) 342-unit Cosmopolitan Apartments (Block 10) ? ? Dick’s Sporting Goods (Block 12) Dick’s Sporting Goods (Block 12) ? ? 2-story retail/entertainment (Block 8 –Bravo!, Comedy Club, Ruth’s 2-story retail/entertainment (Block 8 –Bravo!, Comedy Club, Ruth’s ? ? Chris Steak House) Chris Steak House) Restaurants (Block 3 –Cheesecake Factory, Keegan’s) Restaurants (Block 3 –Cheesecake Factory, Keegan’s) ? ? Phase III –September 2005 Phase III –September 2005 ? ? 37-story Westin Hotel/condominium tower (Block 7) 37-story Westin Hotel/condominium tower (Block 7) ? ? 236-room full service hotel (Floors 5 –15) 236-room full service hotel (Floors 5 –15) ? ? 119 condos (Floors 16 –36) + penthouse/common area 119 condos (Floors 16 –36) + penthouse/common area ? ? 56 condominiums, 14,000 sq. ft. ground floor retail (Block 6) 56 condominiums, 14,000 sq. ft. ground floor retail (Block 6) ? ? Office Building, 97,040 sq. ft. (Block 5 –FY-10) Office Building, 97,040 sq. ft. (Block 5 –FY-10) ? ? 4 VBDA Support -TIF Funded VBDA Support -TIF Funded Phase I Phase I ? ? Parking Garage (Block 4) Parking Garage (Block 4) ? ? 1,284 spaces 1,284 spaces ? ? Plaza Land (Block 8) Plaza Land (Block 8) ? ? Phase II Phase II ? ? Parking Garage (Block 10) Parking Garage (Block 10) ? ? 851 spaces 851 spaces ? ? Parking Garage (Block 12) Parking Garage (Block 12) ? ? 574 spaces (269 are for theatre -CIP funded) 574 spaces (269 are for theatre -CIP funded) ? ? Phase III Phase III ? ? Parking Garage (Block 7) Parking Garage (Block 7) ? ? 735 public spaces (additional 212 for condos –Developer financed) 735 public spaces (additional 212 for condos –Developer financed) ? ? Pedestrian Bridge (connects garages in Block 12 to Block 7) Pedestrian Bridge (connects garages in Block 12 to Block 7) ? ? Meeting Room/Conference Facility (Block 7) Meeting Room/Conference Facility (Block 7) ? ? 5 Scope of Improvements Scope of Improvements Phase IV Phase IV BLOCK TWO BLOCK TWO • • Single Block, Multi-facility, Mixed-use Development Single Block, Multi-facility, Mixed-use Development • • 21 Stories –364,000 sq. ft. 21 Stories –364,000 sq. ft. • • Main Lobby, Retail (First Floor) –34,000 sq. ft. Main Lobby, Retail (First Floor) –34,000 sq. ft. • • Parking Garage, 650 Spaces (8 levels) Parking Garage, 650 Spaces (8 levels) • • Office Space –330,000 sq. ft. Office Space –330,000 sq. ft. • • 6 Developer Obligations Developer Obligations Phase IV Phase IV Purchase land required for development and Purchase land required for development and ? ? construction of Phase IV Tower from Authority construction of Phase IV Tower from Authority (at Authority’s cost of acquisition) (at Authority’s cost of acquisition) Construct all improvements on Block 2 Construct all improvements on Block 2 ? ? Estimated Private Investment $72 -$82 million Estimated Private Investment $72 -$82 million ? ? 7 VBDA Obligations VBDA Obligations Phase IV Phase IV Purchase 650-Space Parking Garage Purchase 650-Space Parking Garage ? ? Developer to construct Developer to construct ? ? Estimated cost : $22-28 million Estimated cost : $22-28 million ? ? Price determined same manner as Block 10 Price determined same manner as Block 10 ? ? (Cosmopolitan) and Block 12 (Dick’s) garages (Cosmopolitan) and Block 12 (Dick’s) garages Number of spacesx Per space price(from construction Number of spacesx Per space price(from construction ? ? bids) bids) Price will be known before execution of Phase IV Price will be known before execution of Phase IV ? ? Development Agreement. Development Agreement. To be paid from TIF revenues To be paid from TIF revenues ? ? (continued…) (continued…) 8 VBDA Obligations VBDA Obligations Phase IV Phase IV (cont.) Pay for Infrastructure Improvements on Block 2 Pay for Infrastructure Improvements on Block 2 ? ? Estimated Cost: $650,000 -$850,000 Estimated Cost: $650,000 -$850,000 ? ? Lease 1 floor in new 21-story Main Office Tower Lease 1 floor in new 21-story Main Office Tower ? ? Leased Area: ~ 25,000 square feet Leased Area: ~ 25,000 square feet ? ? VBDA’s rent VBDA’s rent ? ? ~ $30.50 to $31.00/SF or $762,500-$775,000 per year ~ $30.50 to $31.00/SF or $762,500-$775,000 per year ? ? Lowest rent in tower, other than anchor tenant Lowest rent in tower, other than anchor tenant ? ? 9 Additional Terms Additional Terms Phase IV Phase IV Modify Option Land Agreement to permit purchase of Modify Option Land Agreement to permit purchase of ? ? Block 2 (Beacon) before Block 12 Commercial Unit Block 2 (Beacon) before Block 12 Commercial Unit Developer may lease from VBDA up to 10% of Developer may lease from VBDA up to 10% of ? ? parking spaces under long-term lease (so long as parking spaces under long-term lease (so long as approved by bond counsel) approved by bond counsel) Garage acquisition and operation will mirror existing Garage acquisition and operation will mirror existing ? ? garages at Town Center garages at Town Center Phase IV is contingent on completion of Beacon land Phase IV is contingent on completion of Beacon land ? ? exchange exchange 10 Notes: Summary of Phase IV Costs Notes: Summary of Phase IV Costs (millions) (millions) Public Investment Public Investment ? ? Block 2 garage -$22.0 -$28.0 Block 2 garage -$22.0 -$28.0 ? ? Block 2 Infrastructure -$0.650 -$0.850 Block 2 Infrastructure -$0.650 -$0.850 ? ? TOTAL PUBLIC -$22.65 -$28.85 TOTAL PUBLIC -$22.65 -$28.85 Private Investment Private Investment ? ? Block 2 Tower -$72.0 -$82.0 Block 2 Tower -$72.0 -$82.0 ? ? TOTAL PRIVATE -$72.0 -$82.0 TOTAL PRIVATE -$72.0 -$82.0 11 Summary of Public and Private Investments Phases I, II, III & IV (millions) March 2008 Project ElementPhase IPhase IIPhase IIIPhase IVTotal Project ElementPhase IPhase IIPhase IIIPhase IVTotal PUBLIC INVESTMENT* PUBLIC INVESTMENT* $29.3$25.8$28.5$22.7 -$28.9$106.3 -$112.5 $29.3$25.8$28.5$22.7 -$28.9$106.3 -$112.5 PRIVATE PRIVATE $95$97$220$72 -$82$484 -$494 $95$97$220$72 -$82$484 -$494 INVESTMENT INVESTMENT TOTAL INVESTMENT TOTAL INVESTMENT $124.3$122.8$248.5$94.7 -$110.9$590.3 -$606.5 $124.3$122.8$248.5$94.7 -$110.9$590.3 -$606.5 Public:Private Ratio Public:Private Ratio 1 to 3.21 to 3.81 to 7.71 to 3.01 to 4.5 1 to 3.21 to 3.81 to 7.71 to 3.01 to 4.5 Includes garages and infrastructure * 12 Business Taxes Generated Within the Core Business Taxes Generated Within the Core Area of the CBD South TIF District* Area of the CBD South TIF District* Type of Tax200520062007 Type of Tax200520062007 Business License $749,444$850,035$1,042,999 Business License $749,444$850,035$1,042,999 Business Property229,863348,014392,511 Business Property229,863348,014392,511 Trustee Taxes**1,677,8272,584,4852,749,749 Trustee Taxes**1,677,8272,584,4852,749,749 General Sales Taxes481,428534,363568,758 General Sales Taxes481,428534,363568,758 TOTAL$3,138,562$4,316,897$4,754,017 TOTAL$3,138,562$4,316,897$4,754,017 * Source: Commissioner of the Revenue **Includes meal, admission, and hotel taxes; excludes utility taxes, which are difficult to quantify. Anticipated number of jobs in the Block 2 Tower = 1,500 –1,600 13 14 15 QUESTIONS? 16