City Operations / Fiscal Responsibility San Diego Explore Civic the Possibilities Center Complex Press Briefing August 14, 2008
City Operations / Fiscal Responsibility Objective Save Taxpayer Dollars
City Operations / Fiscal Responsibility Responsible Fiscal Planning 550,000 SF of leases expire in Years 2013 / 2014 Why now? $13 million in current annual lease costs and expected to rise $5 to $6 million annually higher leasing costs = fewer $ s for City services / infrastructure long-term ownership is less expensive than leasing
City Operations / Fiscal Responsibility Existing Liabilities Constructed in mid 1960s Hazardous materials, including asbestos Concourse City Operations Building (COB) Not seismically retro fitted Lack fire sprinklers & life safety systems Not fully ADA compliant Evans Jones Parkade Poor public accessibility Insufficient parking City Administration Building (CAB) Civic Theatre Civic Center Plaza (privately owned)
City Operations / Fiscal Responsibility Dispersed City Operations Redundancy of space Conference rooms Filing and storage Reception and circulation Inefficient operations Fragmented customer service
City Operations / Fiscal Responsibility City occupied Space Building No. of Employees Current Annual Lease Costs (2008) Projected Annual Lease Costs (2013) Square Feet Lease Expiration City Administration Building (CAB) 600 n/a n/a 174,000 City owned City Operations Building (COB) 400 n/a n/a 194,000 City owned Concourse 60 n/a n/a 42,000 City owned World Trade Center 125 n/a n/a 57,000 City owned Civic Center Plaza (CCP) 835 $4.7 M $7.6 $8.0 M 243,000 7/23/14 600 B Street 550 $4.0 M $4.8 $5.1 M 153,000 5/31/13 Executive Complex 455 $3.0 M $4.2 $4.5 M 136,000 3/31/14 707 Broadway 55 $1.1 M n/a 40,000 3/31/10 TOTAL 3,080 $12.8 M $16.6 $17.6 M 1,039,000
City Operations / Fiscal Responsibility San Diego Explore Civic the Possibilities Center Complex Renovate / Lease / Buy Alternatives
San Diego Civic Center Condition Assessment 2011 dollars (millions) may provide up to 30 additional years of useful life
San Diego Civic Center Alternative #xxx 1 $1,500,000,000 $1,250,000,000 $1,000,000,000 $1,490,689,320 Renovate City owned buildings Concourse remains a meeting facility $750,000,000 $500,000,000 $510,564,372 Keep existing workspace standards $250,000,000 $0 PV 50 Year Costs (Year 2013) First 15 Year Costs Release current amount of space at best negotiable rate
San Diego Civic Center Alternative #xxx 2 $1,500,000,000 $1,250,000,000 $1,164,249,921 Renovate City owned buildings Concourse remains a meeting facility $1,000,000,000 $750,000,000 Migrate to efficient workspace standards $500,000,000 $440,870,377 Acquire Civic Center Plaza $250,000,000 $0 PV 50 Year Costs (Year 2013) First 15 Year Costs Lease reduced amount of space at best negotiable rate
San Diego Civic Center Alternative #xxx 3 $1,500,000,000 $1,250,000,000 $1,000,000,000 $750,000,000 $1,200,445,150 Renovate City owned buildings Concourse remains a meeting facility Migrate to efficient workspace standards $500,000,000 $428,789,526 Lease Civic Center Plaza $250,000,000 $0 PV 50 Year Costs (Year 2013) First 15 Year Costs Lease reduced amount of space at best negotiable rate
San Diego Civic Center Alternative #xxx 4 $1,500,000,000 Renovate City owned buildings $1,250,000,000 $1,000,000,000 $1,052,881,188 Convert Concourse to office space $750,000,000 $500,000,000 $394,361,832 Migrate to efficient workspace standards $250,000,000 $0 PV 50 Year Costs (Year 2013) First 15 Year Costs Lease reduced amount of space at best negotiable rate
San Diego Civic Center Alternative #xxx 5 $1,500,000,000 $1,250,000,000 $1,000,000,000 $1,305,832,968 Do not renovate Cityowned buildings Accept latent risks $750,000,000 Keep existing workspace standards $500,000,000 $381,100,731 $250,000,000 $0 PV 50 Year Costs (Year 2013) First 15 Year Costs Release current amount of space at best negotiable rate
San Diego Civic Center Alternative #xxx 6 Renovate City owned buildings $1,500,000,000 $1,250,000,000 $1,000,000,000 $1,085,568,327 Convert Concourse to office space $750,000,000 $500,000,000 $395,272,378 Migrate to efficient workspace standards in City owned buildings $250,000,000 $0 PV 50 Year Costs (Year 2013) First 15 Year Costs Lease reduced amount of space in suburban location
San Diego Civic Center Alternative #xxx 7 Renovate City owned buildings $1,500,000,000 $1,250,000,000 $1,000,000,000 $1,312,688,748 Concourse remains a meeting facility $750,000,000 $500,000,000 $450,938,093 Keep existing workspace standards $250,000,000 $0 PV 50 Year Costs (Year 2013) First 15 Year Costs Lease balance of required space in suburban location
San Diego Civic Center Summary of Alternatives PRESENT VALUE OF 50 YEAR CITY COST PROJECTIONS (2013 DOLLARS) $1,600,000,000 $1,400,000,000 $1,200,000,000 $1,490,689,320 $1,000,000,000 $800,000,000 $1,200,445,150 $1,305,832,968 $1,312,688,748 $600,000,000 $400,000,000 $200,000,000 $1,164,249,921 $1,052,881,188 $1,085,568,327 $0 Alt 1 Alt 2 Alt 3 Alt 4 Alt 5 Alt 6 Alt 7
San Diego Civic Center Summary of Alternatives CITY S TOTAL COSTS INITIAL 15 YEARS $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $510,564,372 $440,870,377 $428,789,526 $394,361,832 $381,100,731 $395,272,378 $450,938,093 $100,000,000 $0 Alt 1 Alt 2 Alt 3 Alt 4 Alt 5 Alt 6 Alt 7
City Operations / Fiscal Responsibility San Diego Explore Civic the Possibilities Center Complex New Facility Alternatives
City Operations / Fiscal Responsibility Other Alternatives Considered Sports Arena Site Approx. $18 million lease buy out Loss of venue and revenue stream Minimal transit Height restrictions Severe traffic constraints
City Operations / Fiscal Responsibility Other Alternatives Considered Qualcomm Stadium Site Chargers lease through 2020 First year eligible for buy out is 2010 Soil contamination / remediation required Served by only one transit line
City Operations / Fiscal Responsibility Other Alternatives Considered Copley Drive Site Site owned by City Water Dept. Must pay Fair Market Value (est. $35 million) Maximum 100,000 SF building Customer service uses prohibited Not transit compatible
San Diego Explore Civic the Possibilities Center Complex Civic Center Site Redevelopment Alternative
San Diego Civic Center Greater Efficiencies Optimal floor plate is 240% larger than current Existing City Administration Building Reduces amount of wasted space 13,300 SF floor plate Easily fits on a City block New City Administration Building 32,000 SF floor plate Greater floor area dedicated to workspace
San Diego Civic Center Facilities Needs Assessment Findings and Recommendations Rentable SF 1,000,000 800,000 1,018,000 706,440 300,000 SF (30%) Less Space 600,000 400,000 200,000 0 Total Existing Space New Facility
San Diego Civic Center Facilities Needs Assessment Findings and Recommendations Rentable SF 1,000,000 800,000 706,440 749,100 788,000 849,400 898,316 0.6% per year average growth 600,000 400,000 200,000 0 2013 2023 2033 2053 2063
San Diego Civic Center Facilities Needs Assessment Findings and Recommendations CITY STAFF PER CAPITA
San Diego Civic Center Finalist Development Teams Hines Pelli Clarke Pelli Architects ROMA Design Group Clark Construction CB Urban Development Gerding Edlen Zimmer Gunsul Frasca Architects MW Steele Group Spurlock Poirier Landscape Architects Brightworks Turner Construction KPFF Consulting Engineers Lincolne Scott United Fund Advisors
Proposed Financing Options Tax exempt bonds Certificates of Participation (Tax exempt) 63 20 Tax exempt Transaction Traditional Equity and Debt (Taxable) Real Estate Investment Trust (REIT)
Hines Compared to Lowest Alternative $1,250,000,000 50 Year Present Value Cost Comparison (in 2013 dollars) $1,052,881,188 $1,000,000,000 $750,000,000 $500,000,000 $784,487,913 Savings of $268 million over 50 years (in 2013 dollars) $250,000,000 $0 Alternative #4 Hines Fixed Rate Tax Exempt Financing Values verified as of 8/13/08
Hines Compared to Lowest Alternative Initial 15 Year Cost Comparison $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $381,100,731 $374,651,622 Savings of $6.5 million over initial 15 years compared to lowest cost alternative $0 Alternative #5 Hines Fixed Rate Tax Exempt Financing Values verified as of 8/13/08
GED Compared to Lowest Alternative $1,200,000,000 $1,000,000,000 50 Year Present Value Cost Comparison (in 2013 dollars) $1,052,881,188 Savings of $402 million over 50 years (in 2013 dollars, with full land price for future phases) $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 Alternative #4 $628,212,324 GED 63 20 Financing (with full land price for future phases) $621,864,459 GED 63 20 Financing (Phase One only) Savings of $431 million over 50 years (in 2013 dollars, Phase One only) Values verified as of 8/13/08
GED Compared to Lowest Alternative Initial 15 Year Cost Comparison $450,000,000 $400,000,000 $350,000,000 $300,000,000 $381,100,731 $318,597,787 $353,186,345 Savings of $62 million over initial 15 years (with full land price for future phases) $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 Alternative #5 GED 63 20 Financing (with full land price for future phases) GED 63 20 Financing (Phase One only) Savings of $28 million over initial 15 years (Phase one only) Values verified as of 8/13/08
Fiscal / Economic Impacts Gerding Edlen Gerding Edlen Hines (if fully developed with all proposed private development) (50% discount for evaluation purposes) Sales Tax Revenue to City $493,664 / year (upon stabilization) $246,832 / year (upon stabilization) $44,000 / year Employment Construction 13,282 FTE 6,641 FTE 3,245 FTE Direct 6,608 FTE / year 3,304 FTE / year 3,176 FTE / year Indirect / Induced 701 FTE / year 350 FTE / year 39 FTE / year Wages Construction $538 million $269 million $132 million Direct $379 million / year $189 million / year $193 million / year Indirect / Induced $508 million / year $254 million / year $2 million / year Values verified as of 8/13/08
City Operations / Fiscal Responsibility Community Meetings Calendar August 14 6:30 8:30 p.m. District 6 Serra Mesa Kearny Mesa Library 9005 Aero Drive San Diego 92123 August 26 6:30 8:30 p.m. District 4 Tubman Chavez Center 415 N. Euclid Avenue San Diego 92114 August 16 10:00 a.m. 12 noon District 5 Scripps Miramar Library 10301 Scripps Lake Drive San Diego 92131 August 18 6:30 8:30 p.m. District 7 Allied Gardens Library Center 5188 Zion Street San Diego 92120 August 19 6:30 8:30 p.m. District 2 Pacific Beach Recreation Center 1405 Diamond Drive San Diego 92109 August 20 6:30 8:30 p.m. District 2 San Diego Concourse / Silver Room 202 C Street San Diego 92101 August 21 6:30 8:30 p.m. District 1 Nobel Recreation Center 8810 Judicial Drive San Diego 92122 August 23 10 a.m. 12 noon District 8 Otay Mesa Library 3003 Coronado Avenue San Diego 92154 August 25 6:30 8:30 p.m. District 3 City Heights Weingart Library 3795 Fairmount Avenue San Diego 92105
City Operations / Fiscal Responsibility Project Schedule Milestone Dates * CCDC Joint Committee Presentation of Alternatives September 10 City Council Rules Committee Presentation of Alternatives September 17 Centre City Advisory Committee (CCAC) Presentations of Alternatives September 17 Special CCDC Board Meeting Recommendation of Alternative or Developer September 23 City Council Presentation and Selection of Alternative or Developer October 21 * Dates subject to change
City Operations / Fiscal Responsibility Keep Informed www.ccdc.com Sign in sheets Downtown Information Center Future Public Meetings Email: civiccenter@ccdc.com
City Operations / Fiscal Responsibility Explore the Possibilities QUESTIONS