Upload
others
View
8
Download
0
Embed Size (px)
Citation preview
A
re:envisionbergamot:station TITLE
re:envisionbergamot:station
DEVELOPMENT TEAM
Jeff Worthe, PresidentWORTHE REAL ESTATE GROUPReal Estate Developer
Joe Coriaty AIA, PrincipalFREDERICK FISHER AND PARTNERSBergamot Station Architect
Frederick Fisher AIA, PrincipalFREDERICK FISHER AND PARTNERSBergamot Station Architect
Howard Robinson,Real Estate Consultant
James Burnett, FASLA, PresidentOFFICE OF JAMES BURNETTLandscape Architect
Matt Lavin WORTHE REAL ESTATE GROUP Real Estate Developer
Joel ZenoFREDERICK FISHER AND PARTNERS
Arash Azarbarzin, PresidentSBE HOTEL GROUPHotel Consultant
Michael HernandezWORTHE REAL ESTATE GROUP
Wayne BlankSHOSHANA WAYNE GALLERYFounder, Bergamot Station
John Clark, PrincipalLOOKINGGraphic Design Consultant
1
re:envisionbergamot:station DEVELOPMENT TEAM
®
REAL ESTATE DEVELOPMENT
M. David PaulManaging MemberJeff WorthePresident
100 Wilshire BoulevardSuite 1600Santa Monica, CA 90401p 310.393.9653f 310.458.2644e [email protected]
LANDSCAPE ARCHITECTURE
James BurnettPresident
550 Lomas Santa FeSuite ASolano Beach, CA 92075p 858.793.6970f 858.793.6905e [email protected]
ARCHITECT
Frederick Fisher, Joe CoriatyPrincipals
12248 Santa Monica BoulevardLos Angeles, CA 90025p 310.820.6680f 310.820.6118e [email protected]
ARTS PROGRAMMING
Aaron PaleyPresident, Co-founder
3780 Wilshire BoulevardLos Angeles, CA 90010p 213.365.0605f 213.365.0702e [email protected]
HOTEL AND HOSPITALITY
Sam NazarianFounder, Chairman, CEO Arash AzarbarzinPresident, SBE Hotel Group
8000 Beverly BoulevardLos Angeles, CA 90048p 323.655.8000f 323.655.8001e [email protected]
FOUNDER
Wayne BlankFounder
2525 Michigan Avenue B1Santa Monica, CA 90404p 310.453.7535f 310.453.1595e [email protected]
BRAND AND IDENTITY DESIGN CONSULTANCY
John ClarkPrincipal
145 Standard StreetEl Segundo, CA 90245p 310.322.6330f 310.322.3762e [email protected]
HOTEL GROUP
Wayne BlankBergamot Station
2
PARKING
The Bergamot Station Arts Center RFP stated that the development must self-park (or meet the parking requirements of LUCE and the now adopted Bergamot Area Plan), either on-site or nearby. The City Yards shared parking structure was presented as an option to help meet the proposed project’s parking needs.
1. Do you have any additional information you would like to provide on how your team would reduce or eliminate the City’s obligation to finance the structure and/or its cost for City employees to use the structure?
• We would propose a few possible strategies to lower and possibly eliminate the cost for
the City of Santa Monica to park the City Yards employees in the new proposed parking
structure. They are as follows:
• We could enter into a revenue sharing arrangement with the City to offset their cost of
using the garage.
• The City could commit to rent 350 stalls at $125.00/month for a 30 year period. This
would provide the ability to finance the garage in a cost efficient manner. The cost to
the city would be offset by the additional revenue received on the remaining 210 stalls
and use of the City’s 350 stalls in the evening and on the weekends. The sources of
revenue would consist of the following:
• Day Time: The remaining 210 cars will be used by employees and visitors of
Bergamot Station. We would propose a nominal charge of $2.00/car/day. If only
half of those 210 spaces are used at $2.00/day for 51 weeks a year, this would
generate $74,970 annually.
• Day time: For neighboring tenants, the costs of monthly parking would be
$150.00. The utilization of 75 spaces would generate $135,000 annually.
• Night Time: Events four times per month that would make use of all 560
spaces at 2.00/car will generate $53,760 annually.
• Night Time: Evening Expo riders and gallery visitors paying $2.00/car,
assuming only half the stalls are utilized six nights per week (event night
above excluded), would generate $171,360 annually.
• These revenue streams are not only conservative in rate, but also in utilization, almost
eliminating any parking cost for the City. We look forward to discussing in
detail the various assumptions that were used above.
• These ideas, and others, even those originated by other respondents, should be part of the
post-ENA discussions between City and selected developer.
3
re:envisionbergamot:station
2. If the City Yards shared parking structure cannot be developed, how would your proposal be modified?
• Our modifications would come in the form of an on-site underground parking structure. This
parking structure would require the demolition of Building A (4,600 SF gallery space that was
initially set to be preserved). This garage would include roughly 250 stalls.
• There are some problems with this option that are as follows:
• The construction of the parking structure would not accommodate any City Yards employee
parking.
• The size of this underground garage would require the use of off-site parking to
accommodate larger cultural and community events.
• Vehicle traffic would not be eliminated on the Bergamot Station site. This is a goal of ours
so as to enhance the bicycle and pedestrian experiences.
4
FINANCIALS
The Bergamot Station Arts Center RFP stated that the development must produce annual ground lease payments for the City based on fair market values.
1. Please reconfirm what the proposed total annual ground rent for the City will be for the duration of the lease, net of any charges for City employee parking (if your proposal is tied to shared parking at City Yards), or other credits or deductions that you are projecting. •
• The starting ground rent for the City commencing in 2018 will be $700,000/yr
increasing annually by 1%, compounded every 5 years. If the retail space located at
the project generates an amount in excess of our projections, we would share 50% of
those net revenues with the City. The total ground rent for the City over the
term would be a minimum of $49,986,934. We are open to discussing additional
suggestions to increase revenue to all the parties.
2. Please provide a concise list of the proposed project’s public benefits to the City, including the monetary value of each benefit. Please identify any assumptions used in your calculations. • Our proposed project provides the following public benefits:
• Arts
• New permanent home for Museum - SMMoA
• Below market rents for the gallery spaces assisting them to be successful and for
us to be able to attract a diverse base of outstanding gallery operators, not just
those that can pay the highest rents
• Arts Management of Outdoor Spaces for Cultural and Community Events
• Unique, arts-centric connection to light-rail. Opportunity to encourage traffic-reducing
rail transit to arts venues, special events, and hotel/restaurant amenities.
• Community Meeting Room
5
re:envisionbergamot:station
• Alternate Transportation
• Bike Center
• Bike Share
• Bike Path
• Town Square and Public Courtyard (133,164 SF) - Creation of a true town square for
community use both organically and organized
• Public Areas with Restrooms
• Site Porosity (Connections to the Neighborhood and City)
• New union hotel located away from beach and downtown areas
• Employment opportunities for Santa Monica residents
• Potential arts management, hotel management and restaurant management programs
for Santa Monica High School and Santa Monica College students
• Improved pedestrian-oriented design frontage along 26th Street and Olympic Boulevard
and welcoming design connection to Expo stop
• Activate Michigan Avenue and encourage pedestrian-oriented uses (particularly if
utilizing a parking structure at City Yards)
• Shared-Use parking options
• Control ground water runoff from existing large impervious site
• Provide new development without displacing local businesses
• Economic benefits to City (see below)
2. Continued
6
FINANCIALS (continued)
The Bergamot Station Arts Center RFP stated that the development must produce annual ground lease payments for the City based on fair market values.
3. Please provide additional detail regarding the projected economic benefits to the City, including the fiscal benefits produced by the proposed project on an annual basis after project stabilization (i.e. Sales Tax, Property Taxes, Transient Occupancy Taxes and any other ongoing City revenues). Please identify any assumptions used in your calculations.
Bergamot Station Tax Revenues Upon StabilizationBergamot Station Project
Rooms Revenue $9,506,767TOT Rate 14.0%TOT Generated (rounded) $1,330,950
$40,000,000 + $3,000,000Sales Tax Revenue (Art Galleries, Restaurants, Non-‐Food Retail, Other) $43,000,000Tax Rate 1.5%Sales Tax Generated (rounded) $645,000
Real Estate Tax $909,527Percent to City of Santa Monica local agencies 17.10%Property Taxes Generated to the City $155,529
Hotel Gross Revenue $14,730,767Business Tax Rate 1 $1.25Business Tax Generated to the City $18,519
$159,433 + $393,000Stabilized Utility Expense -‐ Bergamot Station Tenants + Hotel $552,433Utility Tax (10%) $55,243
Stabilized Parking Revenue $435,090Parking Tax (10%) $43,509TOTAL MEASURABLE TAX REVENUES to City of Santa Monica local agencies (rounded) $2,248,7601 Tax equates to $180.80 for the first $60,000 in Gross Revenues plus $1.25 per additional $1,000 of gross revenues over $60,000.
7
re:envisionbergamot:station ARTS CENTER MANAGEMENT
As part of the Exclusive Negotiating Agreement, staff will recommend to Council that the selected developer be required to submit an annual Performance-Based Art Center Management Plan to the City’s Cultural Affairs Department.
1. State your understanding and willingness to commit to producing this annual plan for the duration of the ground lease. What performance measures would you recommend be included in the Arts Center Management Plan? • We are prepared and willing to submit an annual Arts Center Management Plan to the
City’s Cultural Affairs Department. We would be open to discussing various performance
hurdles but would imagine they could include: number of events held, amount of visitors
to the site, and SMUSD participation in events at the property.
2. The RFP also states the goal of retaining existing arts center tenants and the requirement of providing core and shell space for the SMMoA. Can you clarify your team’s intent to meet or exceed these requirements? • Our goal and expectation is to retain all existing galleries and all existing tenants at
Bergamot Station. As the founder of Bergamot Station, Wayne Blank has attracted
every current tenant since he started his partnership with the City of Santa Monica.
With his knowledge base and his role as an integral part of our team, it makes us
uniquely qualified to handle the transition. We feel that Bergamot Station is an arts and
cultural destination that is committed to preserving this DNA and community fabric by
all means necessary. Our team feels Santa Monica Museum of Art is the gateway into
Bergamot Station. We are committed to providing Santa Monica Museum of Art with a
core and shell of a signature building.
8
ARTS CENTER MANAGEMENT (continued)
As part of the Exclusive Negotiating Agreement, staff will recommend to Council that the selected developer be required to submit an annual Performance-Based Art Center Management Plan to the City’s Cultural Affairs Department.
3. Please elaborate on the transition from an interim arts center management and marketing strategy with the existing operators, Bergamot Station LTD and its subtenants, to your team’s long-term arts center management strategy, including details on staffing. • We are uniquely positioned to create a smooth transition at the property as principals of
Bergamot Station LTD are members of our team. This is critical as existing tenants
would need to extend their leases as they come due over the next four years of their
existing lease term. We would be in a position to begin implementation of our Arts
Center Management program prior to the transition date. We have attached an
organization chart for the Arts Center Management Team and we would be prepared
to bring that team on as soon as we are selected.
• Please see Staffing and Organizational Chart
9
re:envisionbergamot:station
BERGAMOT STATION STAFFING AND ORGANZATIONAL CHART
Bergamot Sta+on Development Team
Design, Development, and
Construc+on
General Contractor: Krismar
Construc+on Architect: Frederick Fisher & Partners
Landscape Architect: OJB Hotel Partner: SBE
General Manager, Overall Site Opera+ons
Site Management Staff
Property Manager
Property Administrator Site Engineer Property
Accountant Parking and Security
Arts Management Staff
Galleries & Art Related Uses
Arts Curator Gallery
Administrator
Arts and Cultural Event Programming
Program Director Events Coordinator
• Implementing
marketing strategies
• Recruitment and
retention of galleries
• Cultivating the
relationships and
addressing the
unique needs of
the galleries
• Preparation of the
annual Arts Center
Management Plan
to the city
• Coordination
with the city and
other arts/cultural
organizations
including SMMoA
• Collaboration
with CARS
• Coordination
of logistics for
all events at
Bergamot Station
BERGAMOT STATION STAFFING AND ORGANIZATIONAL CHART
10
CREATING A VIBRANT, ICONIC DEVELOPMENT
The RFP provides the opportunity to create a unique and “iconic transit-adjacent, urban infill gateway development that will further elevate the role and status of the Site in supporting the arts in the region.”
1. Confirm the buildings on Site that your team will be preserving in place, including the total square footage preserved, and the amount of proposed investment (on a per square foot basis) to improve the existing buildings.
• We will preserve four existing buildings: A, B, E, and F. They total 41,700 SF.
(As referenced on page 80 of our RFP). We plan on spending $770,935
on the core and shell improvements of these existing buildings, along with
$1,595,985 for site work and landscaping around these preserved buildings.
This equates to $57 per square foot.
• Please see Site Diagram
11
re:envisionbergamot:station
H - HOTEL/MIXED USE83,000 SF
M - MUSEUM21,100 SF
B - EXISTING GALLERY24,000 SF
C - CREATIVE OFFICE67,000 SF
E/F - EXISTING GALLERY13,100 SF
D - BIKE CENTER/RETAIL7,600 SF
A - EXISTING GALLERY4,600 SF
NEW BUILDINGS / 178,700 SFEXISTING BUILDINGS / 41,700 SF
EXISTING VS. NEW BUILDINGS
L
TITLE
®
Krismar ConstructionWorthe Real Estate GroupWayne Blank, Bergamot Founder