Ballpark Village Meeting Presentation

8/8/2019 Ballpark Village Meeting Presentation

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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 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 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!


Power Plant


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)



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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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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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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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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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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


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


Construction jobs are annual equivalent

Earnings forconstruction is forconstruction period and earnings for ongoing isannually


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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



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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



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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



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Ballpark VillageBallpark VillageShift-Share (Net-New)

Weighted Average of90

%over

25years


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

Documents

Ballpark Village Meeting Presentation