Master Plan Executive Committee Agenda, 9/26/2018
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1 Master Plan Executive Committee Agenda, 9/26/ Breakfast, Welcome & Updates 2. Park Framework (MVVA slides and group discussion) 3. Park Phasing (MVVA boards, slides and group discussion) 4. Master Plan goals for Park Funding
2 The Master Plan Contents 1 Art Foo We His Gar Par Educ Inno 6 4 The Land The Framework The Program Implementation Change Over Time Community History The Six Landscapes 1. Edges and Neighbors 2. Circulation and Transportation 3. Buildings [Inside and Outside Spaces] 1. Balancing Two Park Experiences 2. Accessibility, Safety, and Equity 3. Circulation and the Promenade Loop 1. Connect at the edges and build from the edges inward 2. Build excitement in the park to develop relevant and supportive partners over time 1. The Creek 4. The Six Landscapes 3. Plan for building and cultural anchors to occur in 2. The Grove 5. Hubs and Niches later phases in order to reap greater value in revenue 3. The Meadow generation 4. The Downtown Gateway 4. Pace capital construction to align as much as possible 5. The Ridge with fundraising and park administration capacity 6. The Valley 5. Pair building rehabilitation with landscape restoration to connect the indoor and outdoor experience 6. Where possible, site new roads and paths at existing paved areas to protect mature trees
3 The Framework 2. Build a framework that allows for growth 2. Build a framework that allows for growth Central Park New York, othea Dix Park MasterNew Plan York North Meadow The Reservoir Loop Drive Metropolitan Museum of Art The Lake BUILD A FRAMEWORK THAT ALLOWS FOR EVOLUTION 16 CENTRAL PARK Dorothea Dix Park Master Plan The Mall Central Park The Pond 17
4 The Framework 2. Build a framework that allows for growth 2. Build a framework that allows for growth The Loeb Boat House 1872 The Metropolitan Museum of Art Est Delacorte Theatre Est Central Park New York, othea Dix Park MasterNew Plan York 16 Dorothea Dix Park Master Plan 19
5 The Framework
6 The Framework: an essential structure that conveys that the park is... - accessible - public - welcoming - understandable - enduring
7 The Framework: Park Entrances All are important Downtown as much as future of SW Raleigh Defined by the landscape character of the immediate context
8 The Framework: Foster an Active Edge for the Park Mixed development Active uses Residential presence Important presentation of the Park DOWNTOWN BOYLAN HEIGHTS HERITAGE PARK LAKE RALEIGH FULLER HEIGHTS CARALEIGH SOUTHWEST RALEIGH
9 The Framework: A Robust System for Pedestrian and Bike Movement Connect to Regional Greenways Build on Raleigh s network/amenities TO NORTHWEST RALEIGH ROCKY CREEK GREENWAY TO WEST RALEIGH WALNUT CREEK GREENWAY TO SOUTHEAST RALEIGH
10 The Framework: Park as Transition STATE LANDS DOWNTOWN & ADJACENT NEIGHBORHOODS
11 The Framework: Park Connections to Downtown WESTERN BLVD WEST STREET LAKE WHEELER ROAD
12 The Framework: Park Connections to West and South
13 The Framework: Internal Park Link
14 Phasing: Next Steps after the Master Plan 1. Legal Agreements and Actions 2. Additional Planning Studies 3. Client Team / Design Team Development
15 Priority Project: Creek Restoration, Recreation Fields, and Landfill Closure Landbridge Feasibility Study Dix Park Master Plan Adopt Master Plan as City Council Approved Plan Site Survey; Inventory of Site s Natural Resources Civil and Geotech Engineers Legal Agreement with DEQ Infrastructure Master Plan Water + Sewer Infrastructure Coordination Plan Legal Agreement with NCDOT Park Horticultural Staff Landscape Operations and Maintenance Plan Funding Strategy MOU re: Funding and Maintenance Construction 1. Legal Agreements and Actions 2. Additional Planning Studies 3. Client Team / Design Team Development
16 Financial Goals for the Master Plan Implementation Phase Request for MPEC Leadership + Design Team Direction A Park that is A Park That is Financially Sustainable = Financially Self Sufficient What we mean when we say financial sustainability : a long term vision for how the park will support its physical spaces, its programs and the management of all of its resources. That financial support will be derived from a range of public and private sources. The alternative is deferred maintenance, unrealized goals, disappointment and disaffection.
17 Financial Goals for the Master Plan Implementation Phase Relevant supporting information - State DHHS spent approximately $12.3 million dollars in 2017 for Dix Hospital Operations and Maintenance ($11.9 million buildings and utilities + $.4 million grounds) - Park partnerships in renovating and maintaining bulidings not only reduce the burden of some amount of maintenance, but also can produce revenue to support park maintenance - Residential uses at rehabilitated buildings offer the most revenue to the park per unit; hotel units offer the second highest revenue to the park; office uses third (HR&A analysis, July 2018) - The selective rehabilitation and demolition of the park s buildings is projected to cost between $114 million to $240 million; the need to upgrade accessibility, utilities, and building systems are major cost factors (MVVA analysis, May 2018)
18 Scenario 1: No On-site Contributions to Support Park Operations and Maintenance KEY Building to be Demolished Building - Operated/Maintained by COR/Conservancy 478,000 SF 694,000 SF costs - $6 million buildings - $16 million landscape no on-site revenue total funding to secure $22 million annually
19 Scenario 2: Some On-site Contributions to Support Park Operations and Maintenance KEY 478,000 SF Building to be Demolished 268,000 SF Building - Operated/Maintained by COR/Conservancy Building/Landscape - Operated/Maintained by Partners 426,000 SF costs - $4 million buildings - $15 million landscape on-site revenue + $4 million buildings + $100k event space total funding to secure $14.9 million annually
20 Scenario 3: On-site Contributions to Support Park Operations and Maintenance (MVVA proposal) KEY 478,000 SF Building to be Demolished 268,000 SF Building - Operated/Maintained by COR/Conservancy Building/Landscape - Operated/Maintained by Partners 774,000 SF costs - $2 million buildings - $14 million landscape on-site revenue + $7 million buildings + $1 million event space total funding to secure $8 million annually
21 Dix Park O&M Budget Overview A high-level overview of Dix Park's annual operating and maintenance budget is presented below. The annual cost of operating and maintaining the park is based on MVVA design concepts regarding how many acres of the park will be developed at differing levels of programmatic intensity. It is likely the total annual O&M budget for Dix Park will range from $10 million to $15 million. This budget model focuses on the potential for value capture via ground leasing to contribute to annual O&M expenses. The ground lease revenue amount is based on the residential and hotel programs prepared by Utile, for development in existing buildings as well as new development. Anticipated ground lease revenue per residential unit was derived using per unit land values from comparable properties in Raleigh. As the budget demonstrates, the proposed development program does not generate sufficient revenue to meet the annual O&M budget. Working Draft - For Discussion Dix Park Annual O&M Budget Uses Estimate Annual O&M $10,000,000 Potential Sources Public % of Total O&M Budget City $400,000 4% County $0 0% Contributed Income (e.g., Membership Program) $100,000 1% Earned Income 28% Concessions $2,000,000 Event Space Rentals $700,000 Amphitheater $100,000 Ground Lease Revenue: In structuring transactions with private developers to ground lease land, the City will have several factors to consider, which will impact the size of rent payments it receives. Factors such as: density of development, length of lease, use of one master developer vs. individual developers, and provision of infrastructure, will all impact the amount in ground lease paid by a developer to the City on an annual basis. The annual revenues below are based on: per unit land values of comparable Raleigh residential properties, land value per square foot of built space for comparable Class B Raleigh office properties, and the performance of Downtown Raleigh hotels and precedent hostels, including properties in Nashville, TN and Asheville, NC. Annual Ground Lease Revenue Potential - Baseline Program Value Capture - Baseline Program 37% Units/Rooms Anticipated Ground Lease Revenue Units to be developed in existing buildings 84 Rehabbed Residential Units 84 $600,000 New units to be developed 667 New Construction Residential Units 667 $2,200,000 Hotel rooms to be developed in existing buildings 170 Rehabbed Hotel 170 $800,000 Hostel rooms to be developed in existing buildings 120 Rehabbed Hostel 120 $100,000 Annual Ground Lease Revenue $3,700,000 Total 1,041 $3,700,000 Total $7,000,000 Annual Ground Lease Revenue Potential - Option 2A Units/SF Anticipated Ground Lease Revenue O&M Gap $3,000,000 30% Rehabbed Residential Units 84 $600,000 New Construction Residential Units 667 $2,200,000 Rehabbed Hotel (total rooms) 170 $800,000 Rehabbed Office (total SF) 100,000 $500,000 Total $4,100,000
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