Ballpark Village

Wednesday, January 19, 2011

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Office Building –
225,000 sq. ft.
- 225,000sf Office Building
- Premiere office building in
the region
- First new office building in 30
years
- Building becomes an
“extension” of Busch
Stadium
- Green Building Efficiencies

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Planned Initial Development Project Phase –
Highlights
Office, 225,000 square feet Infrastructure
– Streets
– Utility Work
Retail, 100,000 square feet – Sidewalks, lights and
landscaping

Parking, 500 spaces

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Kansas City – Sample Tenants

PBR Big Sky

SPRINT
Mosaic Ultra Lounge
Shark Bar
Maker’s Mark Bourbon House &
Lounge
Vinino Wine Bar & Bistro
Angel’s Rock Bar
Bristol
Ragland Road Irish Pub
Jos. A. Bank
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Louisville Fourth Street Live
Sample Tenants

Borders Books
CVS
Office Depot
Red Star Tavern
Ri Ra Irish Pub
Lucky Strike
T-Mobile

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“Live” Component Programming
– Entertainment/Activities draw between 5 to 10 million
visitors to these mixed-use projects

– Kansas City 150+ days per year of active

programming

– Louisville 150+ days per year of active programming

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500 600

700

100 200
300
400

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Minority Participation Summary –
Cardinals Busch Stadium
• 80 MBE/WBE firms received 130 contracts worth
over $65 million
• MBE Protégé Program led to $21 million in contracts

“This is the first time in St. Louis history that a project of

this size has made this level of commitment and created
such a positive outcome for minority and women-owned
businesses.”
---April Hendricks-Brown of KWAME, the MBE/WBE and Mentor
Protégé Program Manager

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Minority Participation Summary - Cordish
MBE Participation MBE Participation
Cordish Project
Goal Achieved
4th Street Live!
Louisville, KY
15% 19%
Capital Centre I
Prince Georges, MD
25% 28%
Capital Centre II
Prince Georges, MD
25% 26%
Kansas City Professional
Services, Kansas City, MO
21% 39%
Kansas City Construction
Kansas City, MO
22% 22%
Pier 4 Office Building
Construction 30% 30%
Baltimore, MD

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Job Creation Summary
Cordish Project Construction Permanent
4th Street Live!
Louisville, KY
600 500
Atlantic City
Atlantic City, NJ
1,400 2,500
Capital Centre
Prince Georges, MD
1,200 1,300
Kansas City
Kansas City, MO
1,200 2,000
Pier 4
Baltimore, MD
600 500
Power Plant Live!
Baltimore, MD
400 600
Power Plant
Baltimore, MD
500 700

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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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Current Proposal
• Developer and City in process of completing
development agreement

• Requirements previously negotiated will remain in

place

• Any changes will be reflected in the Board of

Aldermen process

• 225,000 square feet of office, 100,000 square feet of

retail, 500 parking spaces

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Issue 2008 Proposal
Development / Retail*: 100-360,000 SF / $130 per SF
Incentive Office*: 100-750,000 SF / $100 per SF
Base Levels Residential: 100-250 units / $25,000 per apartment, or $50,000 per
condo
Parking: 1,200 spaces / $31,400,000
Infrastructure: $15,100,000 - $23,000,000 (with hotel)

Minimum Incentive $ 82,000,000 plus Issuance Costs

Maximum Incentive $188,700,000 plus Issuance Costs

Pledge of Available PILOTs: 25 years

Revenues EATs: 25 years
Other EATs*: 10 years after 25 years
State Revenues: 25 years
CID Sales Tax: 35 years
Springing TDD Sales Tax: 35 years (imposed if DSC on Bonds less
than 1.10)
TDD Ticket Tax: 35 years
50% of Bottom-Half EATs: 35 years (backstop)

* Minimums for Office and Retail are 100,000 SF each, but combined the two must total at least 325,000 19
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Issue 2008 Proposal
Financing Structure -Bonds not a general or moral obligation of City
-Developer to purchase $5,000,000 in subordinate bonds
-Bonds issued at outset of Development Project
-Bond proceeds disbursed per leasing and construction schedule

Development Project Area -Northern ½ of Old Busch Stadium

-Approximately 10 acres
-Includes Bowling Hall of Fame site

Future Development Future phases contemplated with subsidies calculated per square foot
or unit, but limited to amount of available revenues

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Issue 2008 Proposal
MBE and Workforce -Developer will comply with Mayor’s Executive Order #28
Goals - Construction -City’s DBE Program Office must approve MBE/WBE Utilization Plan
prior to any disbursements to Developer
-Developer will comply with Ordinance No. 67321, which adopts a Non-
Hispanic Minority workforce goal of 20.9% and a Hispanic-American
workforce goal of 1.47%

Workforce Goals – -Developer shall use good faith efforts to ensure that all business tenants
Ongoing Operations seek referrals from SLATE of minorities available for job openings
-Developer shall establish an Office of Training and Employment with the
express purpose of maximizing employment opportunities for City
residents, particularly the historically disadvantaged population

Eminent Domain Only available for public uses as defined in Article XXI of City Charter

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Issue 2008 Proposal
New Markets Tax -City required to assist in seeking NMTCs from a third party with respect to
Credits (NMTCs) Initial Development Project Phase to generate $10,000,000 of net benefit
-City will cause SLDC to reserve $22,500,000 of SLDC’s allocation until
June 15, 2010
-Developer required to provide financing through additional third-party
NMTCs or additional subordinate bond purchase in an amount equal to any
gap remaining after application of City and third-party NMTCs (subject to
reduction if initial third-party NMTC contribution results in benefit of less
than $10 million)
Completion Guaranty -Guaranty for each Element of each Phase from an entity with a minimum
liquid net worth; if Phase not completed within 7 years of Bond Closing,
Guarantor pays liquidated damages to City
-Financial penalties for failure to complete within 2 years of Bond Closing

Clawback Developer required to respend or pay to Bonds 75% of any negotiated cost
savings

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Issue 2008 Proposal
Bond Closing Anticipated Spring/Summer 2009 - maximum 36 months following
approval of MODESA Application by State (contingent on financial
markets)

Timing of Project -For each Phase, within 4 ½ years from Bond Closing for that Phase,
Completion 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 after first tenant
of any Office space
-No incentive for any residential or retail portion of Project after 10
years following the date of the Development Agreement

Green Elements Developer is exploring LEED certification on new office building

Hotel -No incentive for hotel

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MODESA Requirements
MODESA (Missouri Downtown Economic Stimulus Authority)
– Economic development incentive program to facilitate the redevelopment of downtown areas and the
creation of jobs
– Administered by and requires approval of the Department of Economic Development (DED) and the
Missouri Development Finance Board (MDFB)
– Must use 100% of new local property taxes and 50% of new local economic activity taxes to finance
development projects
– In addition, the State will allow capturing up to 50% of the State sales tax increment from sales new to
the State and up to 50% of the State incomes tax increment generated by jobs that are new to the State
to fund public improvements in the Development Area

Requirements Include:
– Central Business District
– Major Initiative
– Development Plan and Project
– Blight Analysis
– 50% or more of buildings have an age of thirty five years or more
– Market Study
– Cost-Benefit Analysis
– Economic Feasibility Analysis
– Shift Share (Net New Memorandum)
– Public Hearing
– DESA approval of Development Plan, Area, Project and supporting documents
– Board of Aldermen approval of Development Plan, Area, Project and supporting documents
– Application to Missouri Department of Economic Development and Missouri Development Finance
Board
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Development Plan
Describes the proposed development and provides the Downtown Economic
Stimulus Authority and the Board of Aldermen with a reasonable basis on
which to make certain findings and determinations required by state law and
to grant the economic incentives described in the plan.

Minimum-
325,000 square feet of commercial space (consisting of office, retail,
entertainment and restaurant space), 500 parking spaces, streetscape and
site infrastructure improvements.

Maximum-
1.1 million square feet of commercial space (consisting of office, retail,
entertainment and restaurant space), 1200 structured parking spaces,
streetscape and site infrastructure improvements and 250 residential units.

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Blighting Analysis

Deteriorated site conditions Uneven surface permitting ponding of water

Deteriorated site conditions Deteriorated former pedestrian plaza area

and current parking area 26
Source: Development Strategies
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Blighting Analysis

Typical subsurface conditions below pedestrian Deteriorated sewer inlet along

plaza area with rubble from previous development east side of Stadium Plaza

Lack of sidewalk and deteriorated former

Deteriorated Site Conditions planting area along south side of Walnut Street
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Source: Development Strategies
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Market Study
• Market will support the proposed mix of office, retail, and
entertainment uses

• Market will support future residential development – one

of premier residential locations in the region

• Increase downtown’s ability to capture demand within the

region, and compete with other major downtowns in the
Midwest

• A major new destination to capture visitor and tourist

spending

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Source: Development Strategies
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Cost Benefit Analysis
Estimated Jobs/Annual Earnings
Construction Jobs Earnings
Minimum 1,300 $65 million
Maximum 2,580 $129 million

Ongoing Jobs Earnings

Minimum 1,459 $91 million
Maximum 4,558 $231 million

• Construction jobs are annual equivalent

• Earnings for construction is for construction period and earnings for ongoing is
annually

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Source: Development Strategies
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Cost Benefit Analysis
Benefits to Taxing Jurisdictions
NPV OF TAXES OVER 25 YEARS
Current Minimum Maximum
St. Louis City $1,184,000 $19,925,000 $79,990,000
New Development New Development
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 $935,000
Sheltered 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's
Fund $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

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Source: Development Strategies
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Cost Benefit Analysis
Benefits to Taxing Jurisdictions
“No Build” Scenario - $6 million (NPV over 25 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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Source: Development Strategies
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Economic Feasibility
Examined the private and public components of the project
• Construction costs
• Project Revenues
• Completion Timelines
• Other assumptions

Costs estimates are necessary and appropriate

Amounts are feasible and reasonable

• Non MODESA sources
• MODESA sources

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Source: Development Strategies
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Shift-Share (“Net-New”)
Weighted Average of 90% over 25 years
• Initial years of project may be a shift from elsewhere in
downtown and the region
• Continued downtown growth will backfill existing spaces
with new users
• New office space will generate interest from out of town
firms and national site-selection firms
• New growth in the leisure and business visitor market
• Support new retail and entertainment businesses in the
state
• Spin off benefits for the entire region

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Source: Development Strategies
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MODESA Steps
City MODESA Meeting
Complete Development Agreement
Board of Aldermen – Start Process
HUDZ Committee
Board of Aldermen
E and A
Board of Aldermen – Complete Process
Mayor Signs 10 days after passage, Ordinance effective 30 days after
signing
MODESA – Application to State
Missouri Development Finance Board (MDFB)
Bond Closing
Construction Starts – Anticipate Summer – Fall 2011

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