Transforming Cherry Street: A Mixed-Use Development Overview
School
Cornell University**We aren't endorsed by this school
Course
NBA 6390
Subject
Information Systems
Date
Dec 11, 2024
Pages
41
Uploaded by SuperHumanSalamander4783
Project Cherry St. Site Plan Review Ithaca, NY December 13, 2023 CREATED BY Jennifer Andrea, Lauren Oertel, Marco Matius, Rane He, Roberto Teran Alcantara
1 EXECUTIVE SUMMARY The envisioned Cherry Street development project represents a transformative initiative aimed at redefining the landscape of the district while preserving its industrial heritage and distinct character. Focused on creating a dynamic and vibrant mixed-use environment, the project will host diverse activities, seamlessly integrating residential, retail, and industrial facets. This executive summary provides an overview of the project's timeline, site analysis, and risk mitigation strategies. The project has five phases: conceptualization, pre-development, feasibility analysis, planning, and construction. Notably, the construction phase, spanning four years, is strategically divided into four overlapping stages to optimize efficiency and facilitate a smoother community transition. This phased approach accelerates the timeline and offers time for community adaptation to changes. Our site analysis encompasses various critical aspects, including the site's background, business context and current landscape, an assessment of needs, a SWOT analysis and government outlook. Emphasizing strategic importance, the analysis provides a comprehensive understanding of the potential and challenges. It particularly highlights the site's role in enhancing the economic, social, and architectural fabric of Cherry Street. Our investment thesis seeks to capitalize on the creation of value via the activation of a challenged site while meeting the underserved demand of the market. The project’s 10.4% unlevered return profile represents an attractive and high cash yielding investment opportunity to develop a $126M project while only having to invest $106 million. The projections rest on conservative assumptions for both costs and revenue that ensure the viability of the project under a well-defined risk profile. Identified relevant risks include environmental challenges and the presence of an unsheltered encampment. To address environmental risks, the project incorporates thorough risk assessments, flood-resistant design elements, and collaboration with government agencies for infrastructure adjustments and comprehensive flood insurance. In tackling the encampments, circulation activation strategies and collaboration with government agencies aim to discourage undesirable activities while contributing to long-term solutions. The Cherry Street development project emerges as a comprehensive and community-centric endeavor, prioritizing sustainability, adaptability, and artistic enrichment. With a detailed timeline, thorough site analysis, and proactive risk mitigation strategies, the project is poised to contribute significantly to the growth and vitality of the Cherry Street district. Through collaboration, innovation, and a commitment to community integration, the project aims to be a cornerstone for the district's identity and evolution, fostering a positive living environment for all stakeholders involved.
2 SITE ANALYSIS Site BackgroundThe industrial site at 203-297 Cherry Street, historically used as a storage yard adjacent to recycling facilities, presents a largely impervious landscape currently serving as parking space. Vegetation is limited and primarily located along the western boundary, near Cayuga Inlet. The site features two broad driveway entries but lacks dedicated pedestrian pathways. The site consists of two large rectangles which are combined by a smaller pathway in the middle. In total, the 289,674 SF site considers a buildable footprint of 190,852 SF (including 98,822 SF of alleyway/green spaces). Source: https://ithacavoice.orgIn a comprehensive analysis, we considered this site from multiple perspectives: •Cherry Street Business Context:This angle explores the commercial potential and existing economic activities on Cherry Street, assessing how the site can integrate with or complement the local business ecosystem.•Needs Assessment:Evaluating the community and market demands will provide insights into how the redevelopment can serve the area, potentially addressing housing, retail, or recreational requirements.•SWOT Analysis: A strategic approach will identify the Strengths, Weaknesses, Opportunities, and Threats associated with the site, considering factors like location, current use, and developmental constraints or incentives.•Government Outlook:An examination of municipal plans, zoning laws, and potential incentives will shed light on the regulatory landscape influencing the site's future development.•Relevant Maps and Visuals:Utilizing available cartographic data will clarify the spatial context, including infrastructure, environmental features, and proximity to key urban elements. Through this multi-faceted evaluation, stakeholders can develop a nuanced understanding of the site's potential, challenges, and role within the broader vision for Cherry Street's evolution.
3 Business ContextCherry Street in Ithaca hosts a diverse array of businesses, each contributing uniquely to the local community. The collaborative potential among these businesses, coupled with the strategic expansion plans, presents exciting opportunities for economic growth and community development. Continuous monitoring of local trends and fostering synergies among businesses can further enhance the vibrancy of the Cherry Street business landscape. The Tompkins Chamber of Commerce plays a crucial role in fostering economic growth, community development, and collaboration among businesses in the region. Its importance to Cherry Street's future development can be highlighted in several key aspects: •Business Advocacy and Support:The Chamber advocates for the interests of local businesses, acting as a unified voice to address challenges and promote favorable business conditions. This advocacy is essential for creating a business-friendly environment on Cherry Street.•Networking Opportunities:The Chamber provides networking platforms, events, and initiatives that facilitate connections among businesses. This networking is invaluable for Cherry Street businesses to build partnerships, share resources, and explore collaborative opportunities.•Community Engagement:Through various programs and events, the Chamber encourages businesses to actively engage with the local community. This engagement is crucial for Cherry Street's future development, fostering positive relationships and demonstrating a commitment to the community's well-being.The importance of the Visum Development-owned site with expansion potential to our site lies in its potential to contribute significantly to the economic, social, and architectural landscape of the area. From our perspective the potential to correctly integrate or even consider the possibility of expanding our project through this additional land parcel would amplify our efforts to transform and revitalize the cherry district. Here are key aspects highlighting its importance: •Economic Stimulus: The expansion of the Visum Development-owned site can function as a catalyst for the continuation of economic growth on Cherry Street. New construction projects or expanded facilities may generate employment opportunities, attract businesses, and stimulate local economic activity.•Increased Foot Traffic: A well-planned expansion can lead to increased foot traffic in the Cherry Street area. This is beneficial for existing businesses as it can potentially bring in more customers and clients, contributing to the overall vibrancy of the district.•Increased Property Values:A well-executed expansion project could lead to increased property values in the surrounding area. This is beneficial for property owners and can attract further investment in the Cherry Street district.•Sustainability and Innovation: If Visum Development incorporates sustainable practices or innovative design concepts into the expansion, it can set a positive example for future developments and contribute to a more environmentally conscious and forward-thinking community.Beside the chamber of commerce, there are also other businesses surrounded by the site: Legal Assistance of Western NY Inc, Youth Advocate Program, The Cherry Arts, Ithaca Arthaus, Weitsmans Recycling, Harrick Plasma, and Ports of NY Winery. They can collectively contribute to a dynamic, diverse, and supportive community. The development of our site makes an exciting next chapter in the story of the Cherry Street Neighborhood. Historically an industrial corner of Ithaca, 2017 rezoning efforts coupled with the
4 new Brindley Bridge and the imminent Black Diamond Pedestrian Bridge, have led this neighborhood to be recognized as the next frontier for Ithaca development. Equipped with water views, proximity to downtown and ample underutilized parcels, the Cherry Street Neighborhood holds the potential to become the next vibrant, prosperous, and eclectic neighborhood in Ithaca. Needs AssessmentTomkins has a diverse population of approximately 105,000 residents when considering the entire Metropolitan Statistical Area (MSA), with a significant presence of students, faculty, and staff from local educational institutions. The average household income in Ithaca is relatively high ($102,000), influenced by the presence of educational institutions and a large community of retirees. Cornell University has 26,000 alumni and 18,000 employees and Ithaca College as 7,000 alumni and 3,000 employees, contributing to the local community's cultural, educational, and economic development. Furthermore, our site also benefits from well-connected bus routes, a diverse retail landscape, significant traffic flow on S Meadow St and high walkability. These factors collectively contribute to the accessibility, economic vitality, and cultural richness of the Cherry Street community. •Bus Routes Connectivity:The bus routes 14S, 14, 11, 20, and 21 play a vital role in connecting Cherry Street to key locations in Ithaca. These routes provide essential connectivity to downtown Ithaca, offering residents access to shopping, dining, and entertainment at The Commons. Those Routes contribute to seamless transportation between Cherry Street and major educational institutions, facilitating the movement of students, employees, and residents. The proposed new bus stop plan next to the site is expected to enhance this accessibility even more, by providing an additional transportation link for the community.•Retail Connectivity: Major retailers Walmart, Wegmans, Lowe’s, TJ Maxx, Trader Joe’s around Cherry Street offer diverse products, catering to the shopping needs of residents and visitors. The concentration of retail within a walking distance of +546k SF of retail space contributes to a convenient and accessible shopping environment, boosting economic activity in the Cherry Street area. Additionally, S Meadow St. experiences an average annual daily traffic (AADT) of 36,000, indicating significant vehicular movement.•Walkability:The Black Diamond Trail and Waterfront Trail can bring a range of benefits to the site development, enhancing the overall quality of life and creating a more attractive and connected community. The trails function as connectors, linking Cherry Street to key recreational areas, waterfronts, and green spaces. Residents can easily access parks and natural settings, fostering a sense of community and connection to the surrounding environment. From the appreciation perspective, these trails can attract potential residents and investors who value a healthy and active lifestyle, positively impacting the overall development and perception of Cherry Street.In summary, our site stands to benefit from its well-connected and amenity-rich surroundings, promoting a balanced lifestyle, economic opportunities, and a sense of community for its residents. The site development is expected to bring positive changes, fostering community growth, economic development, and an improved overall quality of life for residents. SWOT Analysis The Cherry Street Residential Development presents an exciting opportunity, but it is essential to conduct a thorough analysis to identify internal strengths and weaknesses, as well as external opportunities and threats.
5 Strengths •Sizable & Wealthy Consumer Base: The development benefits from a large and affluent consumer base, with a population of 105,000 and an average household income of $102,000. This provides a strong foundation for market demand and economic growth.•Diversified Demand Drivers: The presence of diversified demand drivers, such as education and retirement, ensures a resilient market. This diversity minimizes vulnerability to economic downturns in specific sectors.•Proximity to Retail Centers: The short walk from over 546,000 square feet of retail space, including popular brands like Wegmans, Trader Joe's, and Lowe's, offers residents convenient access to shopping and services, enhancing the area's appeal.•Scenic Views & Waterfront Trail Access: The development boasts scenic creek views and direct access to the Waterfront Trail, providing residents with attractive natural amenities and recreational opportunities.Weaknesses •Soil Remediation Concerns: Industrial use soil remediation concerns pose potential environmental challenges, necessitating careful planning and execution to address and mitigate any soil-related issues.•Potential Flood Risk: The potential flood risk in the area requires comprehensive planning and infrastructure measures to ensure the safety and resilience of the residential structures.•Disconnected District: The district's disconnected nature within Ithaca may impact community cohesion. Addressing connectivity issues is crucial for fostering a sense of belonging and accessibility.Opportunities: •Meeting Renter Demand at Lower Price: There is an opportunity to meet the demand for affordable rental properties, addressing a market gap and catering to a diverse range of residents.•Enhancing Connectivity: Investing in new infrastructure and on-site transportation stations can improve connectivity, making the area more accessible and attractive for residents and businesses.•Value Appreciation due to Area Reconversion: The ongoing area reconversion efforts create an opportunity for value appreciation, making the residential development more desirable and potentially increasing property values.•Captive Demand: The presence of a captive demand, with over 560 residents in the immediate area, offers a built-in market for residential development, providing stability and potential long-term residents.Threats: •Nearby Unsheltered Encampment: The presence of a nearby encampment poses a threat to safety and community well-being. Collaborative efforts with local authorities and organizations are necessary to address this issue.•Construction Cost Increases: Potential increases in construction costs before the execution of a Guaranteed Maximum Price (GMP) could impact project feasibility. Effective cost management and contingency planning are vital to mitigate this threat.In conclusion, the SWOT analysis provides valuable insights into the factors influencing the Cherry Street Residential Development. Leveraging strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats will be crucial for the successful planning and execution of this development. Strategic decision-making and community engagement are key components of a sustainable and thriving mix-used project.
6 Government OutlookIn 2023, Tompkins County, including Ithaca, demonstrated proactive governance through significant investments in infrastructure and public services, as reflected in its 2024 Capital Budget and Debt Service plan, which allocated $32.5 million to various projects. The county's fiscal health showed positive signs, evidenced by a 4% increase in sales tax receipts in the second quarter of 2023 compared to the previous year. Key initiatives included renovations to the Public Safety Building and Jail, addressing essential community and law enforcement needs. The government also reallocated $510,000 in the Community Recovery Fund to support community projects. Challenges such as the need for emergency housing, financial threats to the airport, and state mandate increases were acknowledged, impacting decisions on the continuation of various positions and programs. The county's commitment to diversity and international issues was also evident in its celebration of Black History Month and Latinx Heritage Month, and its resolution to support Ukraine. These actions underscore Tompkins County's commitment to balanced development, community well-being, and cultural inclusivity. •Capital Budget and Infrastructure:The 2024 Capital Budget and Debt Plan presented by County Administrator Lisa Holmes highlighted long-range capital program scenarios. $32.5 million was allocated for various programs, with funding from Federal and State sources, tax levy, and county’s fund balance. Programs include infrastructure and facilities improvements, and developments at the Ithaca Tompkins International Airport. •Fiscal Health and Sales Tax Revenue:Sales tax receipts increased by 4% in Q2 of 2023 compared to 2022, indicating positive fiscal health for the county. •Public Safety Building and Jail Renovations: There was unanimous support for a report on renovations to the Tompkins County Jail and the Public Safety Building. This report will guide future renovation plans, considering the needs of various stakeholders including law enforcement, community members, and individuals who were formerly incarcerated. •Community Recovery Fund Re-allocation:The Legislature's Community Recovery Fund Committee reconsidered the allocation of $510,000 following the withdrawal of an application from Second Wind Cottages. This fund is intended to support various applicants that had previously made the first scoring cut in 2022, with no new applications being accepted.•Challenges and Risks:The government also discussed various challenges and risks facing the county, including the need for emergency housing shelter beds, financial threats to the airport, and state mandate increases. These challenges will influence decisions on the continuation of various positions and programs. •Housing and Parking Concerns: The county is considering the impact of new developments, including the Center of Government project, on downtown parking. With a growing number of employees in the downtown area, there is a need for additional parking solutions.•International and Cultural Stance:A resolution was passed to continue supporting Ukraine by displaying its flag in the Legislature chambers, reflecting the county's stance on international affairs.•Cultural Celebrations: The Legislature celebrated Black History Month and Latinx Heritage Month, acknowledging the contributions of these communities to the county. Tompkins County's government actions highlighted a strategic approach to urban development and fiscal responsibility, while also showing a strong commitment to cultural recognition and international support. The county's investment in infrastructure and the positive trajectory of its fiscal health, particularly in sales tax revenue, reflect a stable and forward-thinking governance.
7 Simultaneously, the county's focus on public safety renovations, community fund reallocations, and addressing local challenges demonstrates a deep engagement with community needs and priorities. Additionally, the celebration of cultural heritage and a clear stance on international issues like the conflict in Ukraine illustrate Tompkins County's broader awareness and inclusivity. Overall, these measures collectively point towards a balanced and dynamic approach to regional governance and community welfare. Current LandscapeSource: https://tompkinscountyny.gov/files2/maps/index.htmlTompkins County is a county located in the U.S. state of New York. As the 2020 census, the population was 105,000. The county seat is Ithaca. Tompkins County comprises the Ithaca Metropolitan Statistical Area, and it is home to Cornell University, Ithaca College, and Tompkins Cortland Community College. According to the U.S. Census Bureau, the county has a total area of 492 square miles (1,270 km2), of which 475 square miles (1,230 km2) is land and 17 square miles (44km2) or 3.4% is water. Tompkins County is in the west central part of New York State, south of Syracuse and northwest of Binghamton. It is usually geographically grounded with the Finger Lakes region. Ithaca is a city and the county seat of Tompkins County, New York, United States. Situated on the southern shore of Cayuga Lake in the Finger Lakes region of New York, Ithaca is the largest community in the Ithaca metropolitan statistical area. A college town, Ithaca is home to Cornell University, an Ivy League university routinely ranked among the world’s best universities, and Ithaca College. Nearby in Dryden, New York is Tompkins Cortland Community College. These three colleges bring thousands of students to the area, who increase Ithaca’s seasonal population during the school year. As of the 2020 Census, the city’s population was 32,108.
8 There are 10,287 households, out of which 14.2% had children under the age of 18 living with them, 19.0% were married couples living together, 7.8% had a female householder with no husband present, and 71.2% were non-families. 43.3% of all households are composed of individuals, and 7.4% had someone living alone who was 65 years of age or older. The average household size was 2.13 and the average family size was 2.81. In the city, the population is spread out in terms of age, with 9.2% under the age of 18, 53.8% from 18 to 24, 20.1% from 25 to 44, 10.6% from 45 to 64, and 6.3% who were 65 years of age or older. The median age is 22 years. For every 100 females, there were 102.6 males. For every 100 females age 18 and over, there were 102.2 males. The median income for a household in the city was $21,441, and the median income for a family was $42,304. Males had a median income of $29,562 versus $27,828 for females. The per capita income for the city is $13,408. About 13.2% of individuals and 4.2% of families were below the poverty line. Evolution of Cherry Street Connections Source: https://www.cityofithaca.org/DocumentCenteCurrent On-Site Connectivity & Nearby Amenities
9 Source: Final Project PresentationNew infrastructure will be constructed to provide additional connections to the Cherry Street Neighborhood Neighborhood Context Source: https://www.cityofithaca.org/DocumentCente
10 DEVELOPMENT PLAN The envisioned Cherry Street development stands as a transformative initiative that seeks to redefine the landscape of the district while preserving its industrial heritage and distinct character. At the heart of this vision is the redevelopment of 105 Cherry Street, where we aspire to cultivate a dynamic and vibrant mixed-use environment. Our ambition extends beyond merely constructing buildings; rather, we aim to curate an immersive experience that seamlessly integrates the residential, retail, and industrial facets of the development. 105 Cherry Street will serve as a nexus for diverse activities, fostering interaction and synergy between its various components. Programming Overview The proposed development on Cherry Street marks a significant departure from historical neglect, with recent lot acquisitions sparking renewed interest in the area. Our comprehensive vision encompasses ground floor retail spaces, three stories of residential units, and a strategically positioned five-story parking garage at the entrance. Furthermore, the site will host industrial workshops adaptable to unique tenants, engaging in activities ranging from artisanal product production to the manufacturing of customizable goods like leather bags, perfumes, pottery, or glass. The Shared Vision including the City of Ithaca’s Director of Economic Development and the Director of Tompkins Chamber of Commerce. Both stakeholders referenced previous proposals for this district, emphasizing that the lack of preservation of light manufacturing and alignment with the district's existing purpose had been reasons for prior denials. They also highlighted the significance of Plan Ithaca, the City's comprehensive plan adopted in 2015, which specifically designates Cherry Street as an Enterprise district.
11 Enterprise districts, as outlined in Plan Ithaca, are characterized by their predominant use for industrial, office, and research and development purposes, strategically aimed at expanding business, employment opportunities, and high-density residential uses. In homage to the district's industrial roots, our commitment revolves around preserving and celebrating its existing character. The integration of light manufacturing and industrial workshops pays tribute to the area's history while introducing a contemporary twist. These adaptable spaces cater to the evolving needs of unique tenants engaged in activities such as artisanal product production and the creation of customizable goods. This innovative retail model will bring economic benefits, job opportunities, and a unique atmosphere to the district. We envision this transformative approach not only enhancing the traditional retail experience but also aligning with the City of Ithaca’s vision for the district, promoting light manufacturing and supporting entrepreneurial endeavours. Site Design and Connectivity The core of the development is intentionally pedestrian-oriented, creating seamless connections through plazas and a tree canopy. Vehicular access, facilitated by a narrow road, leads to a parking garage entrance. However, this road is slated for closure during peak hours, prioritizing service to industrial workshops and emergency services. A park along the waterfront, a proposed TCAT station, and strategic green infrastructure, including bioretention gardens and permeable surfaces, address both aesthetic and environmental considerations. Bike Sharing Stations and TCAT Station In addition to working with TCAT to integrate a TCAT shelter, we plan to work with them to expand their transit lines to stop within our site near the waterfront. To identify which line would be most appropriate, we will work with stakeholders, transportation planners, and TCAT. Along with this improvement, including bike sharing stations will allow residents and visitors to easily travel between the development and downtown as well as using Cherry Street as a destination point for recreation on the Black Diamond Trail.
12 Green Infrastructure The development’s site is surrounded by water and within a critical flood zone. It is imperative to implement infrastructure that offsets the risks associated with flooding and waterlogged land. We will consult with an architect to ensure the buildings are prepared for this type of environment. Additionally, we will install bioretention gardens in several locations that are the most vulnerable. This will also be an attractive green space among the tall structures. Another technique we are prepared to use is permeable surface along the proposed service road, alleys, and pedestrian corridors. Community Events and Markets Advertising and hosting frequent community events, markets, or festivals will draw attention to Chery Street. This could draw shoppers into the area from downtown and cyclists or runners coming from the Black Diamond Trail. Public Art Installations Our proposal integrates public art installations along primary and secondary pedestrian pathways and in plazas that are intended to serve as landmarks, creating a visually engaging experience and encouraging people to explore the complex. Interactive Information Stations Kiosks with updated postings will provide details about the history of the district, what is currently offered there, as well as upcoming community events. This will create a sense of community and connection among tenants and visitors and draw people to the site after their first visit. Outdoor Seating Areas A mixture of movable chairs at tables and benches will be strategically placed throughout the development in areas where there is activity, such as public seating in front of cafés or benches in visually attractive areas near trees or art. We want this development to be welcoming to everyone, not only business owners and residents. Wayfinding and Signage Integrating clear signage from popular areas in Ithaca that use a consistent brand for Cherry Street will allow neighbours and passerbys to become familiar with the development before even visiting. This will make it easier for people to be willing to visit something new and more comfortable exploring this once-neglected side of Ithaca. Architectural Concept The Cherry Street development aims for more than just looks. Outside, we blend brick, metals, and glass, focusing on sustainability with repurposed materials from deconstruction. projects Communal green spaces and unique stone patterns not only look good but also promote environmental consciousness.
13 Inside, we prioritize openness, airiness, and natural light, creating a comfortable and flexible environment. Workshops feature natural wood, concrete, and brick for creativity, adapting to changing needs. Artistic elements in pedestrian corridors transform overlooked spots into vibrant focal points, celebrating the district's unique character. Since we do not have a trained architect yet, these are preliminary visions and mood-boards. We plan to consult with architectural experts during the development process. This development is intended to be a sustainable, adaptable, and artistically enriched space honouring the district's
14 roots while propelling it into a vibrant future. Through innovative design and community integration, we're building a cornerstone for the district's identity and evolution. Project Schedule Our project schedule is comprised of five stages which is expected to span across five years. The first three stages are expected to be completed by early 2024. Stage 5 is the longest stage and will take about four years to complete.Stage 1- Conceptualization: This stage takes about a month to complete if the buyer has already gone through the timing strategy and location analysis process to gain site and project metrics to determine what is the highest and best use for this land. This also assumes that acquisitions have been completed before the development team completes a development package. The estimated time for completing a development package is about one month. Stage 2-Pre-Development:This stage focuses on due diligence, assembling the financial package, and assessing funds available and needed to complete the project. Due diligence includes looking at the site, the city plan, and understanding all the risks or hazards that the project includes and how to mitigate them. Such risks include remediation, environmental testing, appraisal review, and pulling title to ensure it remains free and clear. The proposed project will change the way the site is currently zoned and therefore will need to seek an exemption or a zoning change from the City of Ithaca. However, given the City’s interest in changing this area into a more community centred area, much like the proposed design, we expect little resistance from the Zoning Board of Appeals. The financial package component includes making a pencil test and back of the envelope financial spreadsheet to understand the sources and uses of funds and have a well thought out project that makes sense financially. This will allow us to analyse the going in costs and future cash flows we can expect to best calculate what the returns on the project will be. By analysing the financials needed to make the project work we will have a better understanding of the funds needed at the front end prior to any cash flows. Stage 3- Feasibility:Includes equity and debt sourcing. Once the pre-development stage is completed, we will assess where we want to source our capital. Currently, we expect to fund the deal with only equity. However, we also ran a test by adding some debt to the deal to see how much that can boost returns. We expect stronger returns when debt is added to the deal, however, that decision will be left to the owner. Further details about the cash flow will be addressed in the financials section. Stage 4- Planning:This stage focuses on the entitlement process, the design processes, releasing the RFP and assessing bids. Then we will go through the submissions and work through the selection process of choosing the best team to complete the project. The longest part of this phase is the entitlement process which is projected to take at least 6 months and we have conservative budgeted nine months towards this given the sites previous use and conditions. The timeline assumes this has already been completed as the owners have had this site for four years. Stage 5- Construction and Leasing:This stage is the longest stage and will be phased out across four overlapping phases. This stage is set to begin in early 2024 and end in 2028. The construction stage will cover the construction of four multi-family and retail mixed use buildings, two light
15 industrial buildings, a parking lot, and a parking garage as well as maintenance for the shared spaces such as walkways, corridors, streets, and green spaces. In each phase, there will be multiple checkpoints to meet to complete construction for each building. Steps included excavation, foundation, structuring, putting up the walls, the MEP, flooring, finishing, furnishing and other finishing touches like landscaping. Below is more detail about the construction phasing. Construction Timeline In the construction and leasing stage, the site will undergo four phases of overlapping construction: •Phase 1: The timeline for phase 1 will be from month 5-29, about two years in total. Phase 1 includes the construction of the Z-shaped multi-family/retail building, the parking garage, and smaller light industrial building.•Phase 2: A year into the construction of the buildings in Phase 1, Phase 2 will begin starting month 17 and is projected to end month 35 (18 months (about one and a half years) total). This will include the construction of the two smaller multi-family/retail buildings, the one on the waterfront next to Althaus, and the L-shaped one next to the smaller industrial building from Phase 1.•Phase 3: Close to the completion of Phase 2, Phase 3 will begin in month 32 and is expected to be complete by month 51. This phase includes the construction of the U-shaped multi-family/ retail building with a carve out in the middle of the “U” for parking on the ground level.•Phase 4: Halfway into completion of Phase 3, Phase 4 will begin at month 44 is expected to wrap up in month 52. This will focus on completing the site and building the larger light industrial building on the edge of the property. We decided to do an overlapping multi-phased construction timeline to condense the construction timeline as much as possible to help generate cash flow and ultimately lower costs which are sourced by equity alone. This will help raise our bottom line and overall increase returns and MoIC. Additionally, the phasing will allow the property enough time between completion of one phase and the next to allow for lease-ups and absorption. By giving the community enough time to adjust to the new proposed makeup of this site we expect vacancies to be higher in the first year or so than later once the community has adjusted to the site and the site becomes livelier. We did not want to oversaturate the area and therefore by slowly phasing the buildings out, we will grow the site along with demand rather than ahead of it. Financials The total development budget for the project amounts to $126.5M, while our stabilized NOI forecast expects to reach $10.6M in year six. Considering these estimates, we target to reach a 7.4% untrended Return on Cost (ROC) for the project. This will result in a 10.4% unlevered project Internal Rate of Return (IRR), 1.6x Multiple on Invested Capital (MoIC) and $62M profit considering a 7-year hold period. In this section we will further develop the assumptions used to build our project’sland valuation, development budget, and financial pro-forma.
16 Land ValuationWe used two distinct methods (residual value & comparable sales) to estimate the gross value of the land on which the project will be developed. The residual value approach factors the value of the land as a percentage of the total value of the project. We utilized a range observed in comparable projects (5-7%) to estimate a value from $22-31 PSF. The comparable sales approach, was based on an initial value which averaged four available land comparables reaching a value of $21 PSF. Because the comparable sales where not recent, having occurred in the years between 2017-2021, we also adjusted this initial average value to account for the time value of money from having acquired at least 3 years before the current date. This adjustment was made at a yearly rate of 5-8%. This rate not only accounts for inflation, but also for an additional premium ranging from 3-6% per year to consider a land appreciation component. When applying this factor to the initial $21 PSF we arrived at a valuation range of $24-26 PSF. The following graph visually portrays the previous valuation ranges as well as the individual price references of sales comparables to facilitate the visualization of the values. Land Valuation Ranges From this analysis we conclude that a fair value for the land would range in between the minimum range for the sales comparison approach $24 and the maximum value from the residual approach $31. This results in a valuation range of $7-9M for the land. We highlight that this value would be a gross value, not considering any potential remediation contingencies that could arise from a “brownfield site” as it is the case of this site (given its history as an industrial recycling plant). To account for this, we estimated a potential environmental contingency of $5M for the buyer to be able to undertake any potential remediations efforts after the acquisition. This contingency is a broad estimation of a costly downside scenario which could be adjusted once we obtain the results of the Phase I environmental study. This study contemplated in our due diligence process before the closing on the land acquisition. This negotiation and estimate would evolve during the diligence process as we learn more on the specifics of the remediation scope required.
17 As it stands, the resulting net price of the land for the seller would be the environmental contingency subtracted from the gross land valuation resulting in net value of $2-4M. BudgetThe complete detail of our development budget is included for reference in Appendix A: Development Budget.The total cost amount of $126,586,509 is subdivided into the following four general categories: Development Budget $ $/ GBA % Land 3,900,000 6 3% Hard Costs 107,411,402 171 85% Direct Construction & Site Improvements 105,420,370 168 83% Furniture, Fixtures & Equipment 1,991,032 3 2% Soft Costs 14,093,580 22 11% Pre-Opening & Working Capital 1,181,527 2 1% Total $ 126,586,509 $ 202 100% The net land value of $3.9M is budgeted out of the consideration of a $8.9M gross price and a $5M environmental contingency included in the soft cost budget section. The total budget for the project amounts to $202 dollars per square feet of Gross Buildable Area (GBA) including parking. This compares on the higher range of costs for comparable developments ($184-201 per square feet of buildable area). The detail gathered of comparable projects is presented on the following table: 1Averages from Syracuse, Rochester & Buffalo marketsThe phasing of the project allows funding part of the total cost through $20.3M of project cash flows that are forecasted in years 1 to 5. Because of this, the total requirement of equity to fund the project reduces to only $106.3M. Sources & UsesUses$%Sources$%Development Cost126.6100.0%Common Equity106.384.0%Project Cash Flow20.316.0%Total Uses126.6100.0%Total Sources126.6100.0%
18 FinancialsThe complete detail of our Financial Pro-Forma is included for reference in Appendix B: Financial Pro-Formaand Appendix C: Cash Flow & Assumptions Summary. A summary version is provided below: The following is an extraction of the main assumptions considered to develop our financial projections, the complete list of assumptions is detailed in Appendix B and C. When compared to our market research, all our assumptions compare quite conservatively which provides us certainty about the financial viability of the project. 1Data collected from property websites, LoopNet, Zillow, Apartments.com & REIS research reports The expected key return metrics of the project are included below. This project represents an attractive investment opportunity offering over 600 basis points when compared to the current 4.24% 7-year treasury bond yield. On leveraged basis2(assuming 50% Loan to Value and 9% fixed interest rate) this project would achieve expect a 24% levered IRR, an attractive risk adjusted level when compared to typical development returns that usually target ~20% levered returns.
19 2Levered return calculations are included in the underwriting tab of our financial model Risks & Mitigants The prospective development presents a significant opportunity for economic advancement and community enhancement. Nevertheless, the realization of this ambitious project is accompanied by inherent challenges. This section thoroughly examines the potential risks associated with the development and incorporates strategic mitigation measures aimed at guaranteeing the successful execution of the project. The following are most relevant risks associated with the project: 1.Market Competition 2.Lack of on-Site Infrastructure 3.Environmental 4.Nearby Unsheltered Encampment5.Project Execution Complexity6.Stakeholder Opposition7.Regulatory and Permitting Challenges8.Economic Downturn Scenarios9.Technological10.Labor Shortages11.Changing Market Trends12.Natural DisastersBecause the success of the project is highly affected by our ability to mitigate or plan on the risks above, it is crucial to take a proactive and strategic approach to enhance and assure the project's outcomes. Consequently, we have devised the following strategies outlined below to mitigate each potential risk. Market Competition In our evaluation of the competitive landscape, it has come to our attention that other developers are expressing interest in initiating projects within the vicinity of Ithaca. Given that the success of our project hinges on the delicate balance of supply and demand in the area's market, the looming presence of competitors poses a significant threat. The potential impact on market share and overall project success necessitates a proactive response. To mitigate this risk, we have meticulously formulated the following strategies: Low Price Positioning:In our strategic market positioning endeavours, we are keenly aware of the role pricing plays in attracting and retaining consumers. Implementing a low-price positioning strategy signifies a comprehensive approach to address the dynamic demands of the consumer base within our targeted market segment. By conducting a thorough analysis of pricing structures in the area, we are poised to offer compelling pricing, ensuring that our project stands out as an attractive option for the discerning and cost-conscious clientele.Strategic Partnerships:Recognizing that success in the modern business landscape is often contingent upon collaborative efforts, we place a strong emphasis on the cultivation of strategic partnerships. Our approach extends beyond transactional relationships, seeking to establish enduring connections with key stakeholders who share our vision and values. Through this proactive engagement, we aim to create a network of alliances that contribute to the overall
1 development and sustainability of the surrounding community. Our initial focus will be to target the cities large education institutions (Cornell University & Ithaca College) in order to be able to become an ally in our shared effort to provide Ithacans with good quality housing options at a competitive price range. Lack of On-Site InfrastructureWe recognize that the lack in infrastructure in the area can slow progression and long-term viability of our development project. This poses a potential risk to the attraction and retention of tenants. To mitigate these challenges, the following targeted strategies will be employed: On-site Transport Station Enhancement: Enhancing accessibility is identified as a pivotal aspect of our infrastructure strategy. Recognizing the integral role that convenient transportation options play in tenant satisfaction and community connectivity, we propose the establishment of one on-site transport station. This proactive measure aims at improving overall accessibility, and to achieve this, we intend to collaborate with the TCAT company and government officials. Our goal is to facilitate the construction of a bus station near the project, thereby contributing not only to the convenience of residents but also to the broader transportation infrastructure of the surrounding area.Collaboration in Utilities Expansion:Ensuring seamless operations requires a collaborative effort in utilities expansion. This entails working closely with utility providers to not only expand but also upgrade essential services. Through this collaboration, we aim to address potential bottlenecks and guarantee the sustained functionality of our development. By proactively engaging with utility providers, we seek to create an infrastructure framework that supports the diverse needs of our project and contributes to the overall well-being of the community. We believe that given the utilization of electricity and water utilities in nearby new projects as Arthouse our job would be to build on previous efforts to extend and achieve the level of capacity a project of our size requires. Environmental The unique geographical characteristics of our project site, particularly its adjacency to the waterfront and inclusion in a flood zone area, elevate the risk profile significantly. Acknowledging the high likelihood of environmental challenges, our response to these revolves around strategic mitigation strategies designed to address the identified risks and fortify the project against potential adverse impacts. Environmental Assessment:The first strategic initiative involves a thorough environmental assessment conducted as a part of our due diligence process before the acquisition of the site. Additional to this consideration, our budget currently incorporates a $5M environmental contingency to account for mayor remediation expenses on this front. This pre-emptive assessment aims to identify and address potential risks emanating from the site's unique characteristics taking into consideration the inherent nature of a “brownfield site”where an industrial recycling plan was previously located. By adopting a proactive stance through comprehensive assessments, we aim to preclude potential environmental hurdles and inform the subsequent phases of our project. Flood Insurance & Design Implementation:Recognizing the inherent risk posed by the project's location, we will implement infrastructure that holds and slowly releases excessive water from rainfall or flooding on the site such as bioretention gardens, bioswales, and permeable surfaces. This proactive measure ensures that our project can withstand potential flood events, minimizing
2 the risk of physical damage and supporting the natural environment around us. Additionally, we emphasize the importance of securing comprehensive flood insurance coverage. This dual-layered approach not only safeguards against potential losses but also instils confidence in stakeholders by showcasing our commitment to responsible and resilient project management. Nearby Unsheltered Encampment The adverse impact of unsheltered encampments on our project's image and community well-being necessitates a thorough examination. This issue extends beyond immediate concerns, influencing the attraction of prospective tenants and community dynamics. Our approach to addressing the issue is characterized by proactive and multifaceted mitigation strategies that not only discourage undesirable activities but also contribute to long-term solutions. Circulation Activation:In response to the potential challenges posed by the encampments, we propose the implementation of circulation activation strategies. This involves revitalization efforts aimed at fostering positive public engagement. By strategically revitalizing the area, we create an environment that actively discourages these activities. Facilitate Government Assistance:Recognizing the need for a collaborative and holistic approach, we actively seek to collaborate with government agencies. Our goal is to facilitate short-term facilities (while some of our project spaces get rented) and create direct and indirect employment opportunities, addressing the root causes of homelessness in partnership with relevant authorities. This collaboration is not just a short-term fix; it forms an integral part of our commitment to contributing to long-term solutions. By facilitating government assistance, we aspire to improve the overall well-being of the community, fostering a positive and sustainable living environment. Project Execution Complexity The acknowledgement of project complexity as a potential source of delays, cost overruns, and operational challenges is an important consideration to acknowledge. By designed we have decided to undertake a phased approach to project to break down one big challenge into more manageable components. The following mitigation strategies are designed to not only address the complexities inherent in project execution but also to foster a controlled and efficient progression through well-defined programming, careful scheduling, and a phased supply approach. Well-defined Programming & Schedule:Central to our risk mitigation strategy is the articulation of clear project goals and the establishment of a well-defined programming structure. This involves delineating in a clear manner the sequence of activities, resource allocation, and task dependencies. Concurrently, we emphasize the importance of a meticulously planned schedule, outlining project milestones and deadlines. By adhering to this carefully crafted schedule, we aim to minimize the risk of delays and ensure a streamlined progression of the project. Phased Supply Approach:Recognizing the benefits of breaking down the project into manageable stages, we incorporated a phased approach in our project. This strategic division allows for granular control over project intricacies, minimizing the complexities associated with simultaneous execution. By approaching the project in distinct phases, each with its set of objectives and timelines, we enhance efficiency, control, and the overall success of the project. Not only this, but some additional benefits of this strategy include controlling the supply and ramp up process of renting the different phases of the project without oversupplying the market. As well as being able to stabilize separate initial stages and receive cash flow to de-risk and enhance the returns of the project funding future phases with cash flow from initial ones.
3 Stakeholder OppositionOpposition from key stakeholders can pose significant challenges, potentially impeding project progress and casting doubt on the project's alignment with community interests. Recognizing the pivotal role of stakeholder support in the success of our project, we turn our attention to the formulation of strategies that address opposition and actively engage the community in the project's development. Our proactive mitigation strategies are designed to not only address potential opposition but also to cultivate a positive and collaborative relationship with stakeholders through comprehensive community engagement and transparent communication. Community Engagement:A cornerstone of our approach involves the implementation of a comprehensive community engagement plan. This plan is designed to actively involve stakeholders in the decision-making process, providing them with a platform to express concerns, share insights, and contribute to the project's development. By fostering a sense of inclusion, we aim to address opposition by acknowledging the perspectives of residents, businesses, and community groups, ensuring that their concerns are heard and considered in the decision-making framework. Transparent Communication:Recognizing the importance of open and transparent communication channels, we commit to maintaining clear and accessible lines of communication with stakeholders. This involves regular updates on project goals, benefits, and potential challenges, ensuring that stakeholders are well-informed throughout the project's lifecycle. By adopting a transparent communication strategy, we aim to build trust, dispel concerns, and showcase our commitment to collaborative and responsible project development. Regulatory and Permitting Challenges Delays and complications stemming from regulatory and permitting challenges pose significant threats to project timelines and overall success. Our strategies for mitigation are tailored to achieve effective compliance while minimizing potential delays. Early Consultation:A fundamental aspect of our approach involves engaging with regulatory authorities early in the planning process. This proactive step is aimed at gaining a thorough understanding of the regulatory landscape and project requirements. By initiating early consultations, we aim to identify potential challenges, address concerns, and streamline the permitting process. This not only demonstrates our commitment to compliance but also sets the foundation for a collaborative relationship with regulatory authorities, contributing to the overall success of the project. Legal Expertise:To further fortify our approach, we recognize the importance of legal expertise in navigating local regulations. Our strategy involves retaining legal experts with a proven track record in dealing with regulatory complexities. These professionals will play a crucial role in ensuring compliance, minimizing delays, and providing strategic guidance throughout the permitting process. By leveraging legal expertise, we aim to navigate potential challenges with precision, ensuring that our project adheres to all regulatory requirements. Economic Downturn Scenarios The acknowledgment of economic downturns as potential disruptors necessitates a comprehensive understanding of the uncertainties that may arise in the future. The volatile nature of economic growth, influenced by factors such as pandemics or political reasons, underscores the
4 need for strategic planning to ensure project resilience. Our mitigation strategies are designed to proactively address the risks posed by economic downturns, ensuring financial stability and sustained project feasibility. Financial Contingency Planning:A pivotal aspect of our approach involves the integration of financial contingency planning into the project budget. This strategic measure is aimed at building financial resilience, allowing the project to withstand economic fluctuations that may arise during periods of downturn. By incorporating contingencies into our budgetary framework, we enhance our ability to navigate uncertainties, mitigating the potential impact on project funding and overall feasibility. Our budget currently includes a total of $15M in contingency (12% of the total budget) to be assigned to specific unexpected events as the project progresses. Lastly, we believe that our conservative stance on underwriting in both estimated costs and revenues provides us with the opportunity to under promise an achievable target with a large opportunity to outperform over that goal. Diversify Revenue Sources:Recognizing the importance of reducing dependence on a single revenue stream, we consciously structured diversified product mix in our project. The different uses not only diversify our revenue streams but also complement the project with different types of clients enhancing continuous interaction and activation of the different areas in different moments of the day and the week. Technological The construction industry's rapid technological evolution introduces challenges in integrating the latest advancements, risking technical complications and project delays. Acknowledging this reality, our focus is on devising strategies that ensure seamless technology adoption while minimizing associated risks. Our strategies for mitigating technology-related risks are designed to provide a structured and reliable approach to technological integration. Technology Assessment:A fundamental aspect of our risk mitigation strategy involves conducting a thorough assessment of proposed technologies. This meticulous evaluation ensures that technologies considered for adoption are proven, reliable, and align with the project's specific requirements. By scrutinizing the viability of innovative solutions, we aim to reduce the likelihood of technical challenges and enhance the overall reliability of technology integration. Pilot Programs:In response to the challenges posed by rapid technological evolution, we advocate for the implementation of small-scale pilot programs for innovative technologies. This phased approach allows us to test and validate the effectiveness of these technologies in controlled environments before full-scale adoption. By incorporating pilot programs, we aim to identify any potential issues early on, refine implementation strategies, and ensure a smoother integration process. Labor Shortages The construction industry, a critical component of the Cherry Street development, grapples with the looming threat of potential delays and escalating costs stemming from shortages in skilled labor. In response to this concern, the project team has devised the following measures to mitigate these potential challenges. Workforce Development Programs:Recognizing the pivotal role of skilled labor in the success of the project, we propose the establishment of robust Workforce Development Programs. This
5 involves strategic partnerships with local educational institutions to formulate and implement training programs specifically tailored to equip individuals with the requisite skills demanded by the project. By aligning these programs with the project's needs, we not only address current skill shortages but also contribute to the long-term development of a skilled workforce in the construction industry. Labor Contingency Plans:A proactive stance toward potential labor shortages is integral to maintaining project timelines and controlling costs. To this end, the project team will implement detailed labor contingency plans. These plans encompass a multi-faceted approach, including cross-training workers to diversify skill sets and enhance flexibility. Additionally, we will explore the option of widening the geographic scope of our labor pool, ensuring that the project can swiftly adapt to unforeseen challenges by accessing talent from a broader area. Additionally, being proactive in forming the right partnerships with trusted contractor can provide us with a higher level of safety that we will be able to contract the labor that is required for the project. Changing Market Trends In navigating the dynamic landscape of changing market trends, our focus is on addressing the primary challenge of inherent uncertainty in demand forecasting. Unforeseen shifts in consumer preferences or economic conditions have the potential to impact the viability of the Cherry Street development project. To proactively mitigate this issue, the project team underscores the importance of ongoing market research, data trend analysis, and a keen awareness of both local and global economic landscapes. Market Research:A cornerstone of our strategy involves the establishment of a rigorous and continuous market research framework. This entails the systematic monitoring of market trends and the regular conduct of comprehensive market research exercises. By staying abreast of evolving consumer preferences and economic indicators, we position ourselves to anticipate changes, enabling informed decision-making and strategic adjustments to project plans. Flexibility in Design:Recognizing the fluid nature of market dynamics, we advocate for a design approach characterized by flexibility. This means crafting the project with an inherent adaptability to respond to changing market demands. Through a design framework that accommodates flexibility, we enhance the project's resilience, ensuring that it remains agile in the face of unforeseen shifts in market conditions. Natural Disasters As we embark on the development of Cherry Street, the geographical location introduces a dimension of vulnerability to natural disasters, necessitating a meticulous risk assessment tailored to the region's characteristics. It is imperative to navigate the unpredictability inherent in natural events by evaluating their likelihood and potential impact. This process involves a synthesis of historical data and expert insights, providing a comprehensive understanding of specific vulnerabilities. Armed with this knowledge, the project team is poised to implement targeted strategies that enhance resilience and minimize potential damages. Risk Assessment:A cornerstone of our strategic approach involves the conduction of a thorough risk assessment tailored to the potential natural disasters prevalent in the region. This comprehensive evaluation encompasses a spectrum of natural events, such as earthquakes, floods, and storms. By tailoring the design of structures to withstand specific risks, we fortify the project against the unpredictability of nature, ensuring a resilient and robust development.
6 Insurance Coverage:Acknowledging the potential financial impact of natural disasters, we emphasize the importance of securing comprehensive insurance coverage. This proactive measure serves as a financial safeguard, mitigating potential losses in the unfortunate event of a natural disaster. By aligning our insurance coverage with the identified risks, we ensure a strategic and comprehensive approach to risk management, bolstering the project's financial stability. The development of Cherry Street presents a transformative opportunity for the community. By proactively addressing and mitigating potential risks through the outlined strategies, stakeholders can ensure the project's success, fostering economic growth, and community well-being. A balanced and thoughtful approach to risk management will undoubtedly contribute to the long-term sustainability and positive impact of the Cherry Street development. Procurement PlanIn continuation of the previously articulated comprehensive procurement plan, the strategic procurement approach for each stage of the Cherry Street development project is further elucidated. The structure of the procurement plan is designed to align with the unique requirements of different project stages, ensuring the engagement of specialized expertise at opportune moments. Stage 1 –Concept:As the conceptual phase of the Cherry Street development commences, the foundation of our procurement strategy is centred on assembling a team possessing a profound understanding of innovative urban design and conceptual development. Employing a competitive bidding process, we aim to secure the services of a Project Manager adept at strategic planning and seamlessly aligned with our project vision. Simultaneously, collaboration with firms demonstrating proven expertise in urban planning, architecture, and geotechnical/soil engineering ensures a comprehensive approach to the challenges presented in this conceptual stage. Procurement Strategy: -Project Manager: Implementing a competitive bidding process for the selection of a Project Manager is crucial in ensuring that the chosen firm possesses the requisite experience in conceptual development and strategic planning. This strategy aims to attract proposals from seasoned project management entities, fostering a competitive environment that promotes excellence in navigating the intricacies of the conceptual stage.-Architects and Urban Planners: Engaging firms with a proven track record in innovative urban design involves a meticulous selection process. The procurement strategy emphasizes evaluating past projects, design philosophies, and the ability to align with the conceptual goals of the Cherry Street development. This approach ensures that the selected architectural and planning entities contribute effectively to shaping the visionary aspects of the project.-Soil Engineer: The strategy for selecting a soil engineering firm involves a thorough assessment of expertise in geotechnical engineering. Emphasis is placed on firms with a demonstrated ability to comprehend soil conditions and effectively address potential challenges unique to the conceptual stage. The competitive selection process ensures the engagement of a specialized team equipped to navigate the complexities associated with the project's initial phase.
7 Stage 2 - Pre-Development: Progressing into the pre-development stage, our focus shifts towards maintaining momentum and alignment. The continuity of the Project Manager from the previous stage is pivotal for a seamless transition, providing consistency in project oversight. Architects and Engineers, integral to the transition, will continue to contribute to evolving plans, ensuring their feasibility. The introduction of Financial Analysts and Legal Advisors becomes crucial in safeguarding compliance, sound financial planning, and addressing potential legal challenges. Additionally, a Real Estate Development Expert is added to provide insights into navigating real estate markets and optimizing development opportunities. Procurement Strategy: -Project Manager: Continuing with the selected project management firm from the conceptual stage underscores the importance of consistency and seamless transition. This strategy aims to maintain momentum, ensuring that the acquired knowledge and understanding of the project vision persist throughout the pre-development stage, contributing to effective oversight and coordination.-Architects: Maintaining continuity with the architectural and engineering teams involves a strategic approach to retain the expertise that contributed to the conceptual stage. The procurement strategy focuses on a collaborative relationship between the Project Manager and the architects, facilitating a seamless transition and ensuring the evolving plans maintain feasibility and alignment with project goals.-Engineers: Advising on the plan and ensuring project feasibility requires a sustained engagement of engineering expertise. The strategy involves retaining the services of experienced engineers who contributed to the conceptual stage, ensuring their continued involvement in refining plans and addressing any emerging challenges in the pre-development phase.-Financial Analyst: Engaging specialized firms proficient in real estate finance is a critical component of the procurement strategy for the pre-development stage. This involves a thorough selection process, considering firms with a proven track record in sound financial planning for real estate projects. The aim is to ensure compliance, mitigate financial risks, and foster a robust financial foundation for the upcoming stages.-Legal Advisor: The strategy for legal advisory services involves maintaining specialized legal expertise to assess the feasibility of the project and address potential legal challenges. This includes ongoing legal support for compliance, navigating regulatory requirements, and identifying and mitigating legal risks associated with the pre-development phase.-Real Estate Development Expert: Seeking expertise in navigating real estate markets and optimizing development opportunities requires a strategic approach to identifying individuals with a deep understanding of market dynamics. The procurement strategy emphasizes selecting a Real Estate Development Expert through a competitive process, considering factors such as market analysis proficiency and a successful track record in optimizing real estate development opportunities.Stage 3 –Feasibility: In the feasibility stage, our commitment to continuity remains steadfast. The Project Manager continues to guide the project with consistency and efficiency. Legal
8 Advisors and Financial Analysts persist in their roles, providing specialized expertise crucial for assessing feasibility and addressing potential legal and financial challenges. This stage emphasizes a collaborative approach, ensuring that the project's feasibility is rigorously evaluated, setting the foundation for subsequent stages. Procurement Strategy: -Project Manager: Continuing with the selected project management firm for the feasibility stage ensures a consistent approach to project oversight. The strategy emphasizes the Project Manager's role in guiding the project with efficiency and expertise, maintaining alignment with the project vision while adapting to the specific requirements of the feasibility stage.-Legal Advisor and Financial Analyst: Maintaining specialized legal and financial expertise during the feasibility stage is crucial. The procurement strategy involves the ongoing engagement of legal advisors and financial analysts to assess project feasibility thoroughly. This includes addressing potential legal and financial challenges that may arise during the detailed evaluation of the project's viability.Stage 4 –Planning: Transitioning into the planning stage, our procurement strategy centers on fostering collaboration and maintaining project consistency. The core team of Project Manager, Architect, and Engineer remains intact, providing a seamless continuum in project vision and design. The introduction of a Procurement Specialist is strategic, streamlining vendor selection and negotiation processes. Additionally, engaging local stakeholders in the planning process ensures that community input is incorporated, aligning the project with local needs and aspirations. Procurement Strategy: -Project Manager, Architect, and Engineer: Ensuring continuity with the core project management, architectural, and engineering teams is a central strategy for the planning stage. This involves a seamless collaboration among these key entities to maintain consistency in project vision and design. The procurement strategy underscores the importance of effective communication and coordination among the core team members throughout the planning stage.-Procurement Specialist: Engaging specialists with expertise in procurement processes and contract management is essential for streamlining vendor selection and negotiation. The procurement strategy involves selecting a Procurement Specialist through a competitive process, considering factors such as negotiation skills, industry knowledge, and the ability to optimize procurement processes for the planning stage.-Stakeholders: Fostering collaboration with local stakeholders is a critical component of the procurement strategy for the planning stage. This involves a proactive approach to engage local community members, authorities, and organizations in the planning process. The aim is to incorporate community input, align the project with local needs and aspirations, and build positive relationships with key stakeholders.Stage 5 –Construction: As the construction phase commences, the emphasis is on selecting a team of professionals with a proven track record in large-scale projects. The Project Manager, a
9 steady guiding force, continues to provide oversight and coordination. Through a competitive bidding process, we secure Contractors, Civil Engineers, Mechanical Engineers, Electrical Engineers, and Architects. This diverse team ensures a comprehensive and well-coordinated construction effort. Specialty experts, such as environmental consultants or sustainability experts, may be engaged based on evolving requirements, ensuring that the construction phase aligns with the highest standards of quality and sustainability. Procurement Strategy: -Project Manager:Continuing with the project management firm ensures consistent oversight and coordination during the construction phase. The procurement strategy underscores the Project Manager's role as a guiding force, providing leadership and expertise to ensure the successful execution of the construction plan.-Contractors/Civil Engineer, Mechanical Engineer, Electrical Engineer, and Architects: Selecting experienced professionals through a competitive bidding process is crucial for the construction phase. The procurement strategy emphasizes the importance of proven success in large-scale construction projects, ensuring that the chosen contractors and engineers have the expertise to meet the project's unique challenges.-Specialty Experts: Engaging additional specialties, such as environmental consultants or sustainability experts, is contingent on the evolving requirements of the construction phase. The procurement strategy involves a flexible approach to identify and secure specialty experts based on the specific needs that arise during the construction stage.This detailed procurement plan ensures a systematic approach to acquiring the necessary expertise at each stage of the Cherry Street development project. By aligning roles with specific project phases, the plan optimizes efficiency, fosters continuity, and enhances the project's overall success. Regular reviews and adjustments will be undertaken to adapt to evolving project needs and industry advancements. Each procurement strategy is tailored to the unique demands of the respective project stage, emphasizing a rigorous and strategic approach to the selection of expertise. The overarching goal is to optimize efficiency, foster continuity, and enhance the overall success of the Cherry Street development project. Regular reviews and adjustments are integral to adapt to evolving project needs and industry advancements. Architectural Request For Proposal The complete detail of our proposed Architectural RFP for the project is included for reference in Appendix E.
10 Appendix A: Development Budget Detailed Allocated BudgetTotalsLand3,900,000Cost of Land 3,900,000Direct Construction and Site Improvements105,420,370Building costs/ Direct Construction Core & ShellCore and Shell Structure627,355@5132,057,841Sitework/Landscaping289,674@154,345,110917,029Total Direct Construction36,402,951Fitout and Tenant Improvement AllowancesMultifamily347,590@13145,673,326Retail100,296@888,785,930Industrial43,796@773,356,963Structured Parking125,038@151,825,555Ground Parking10,635@0-@-Total Allowances & Adjustments59,641,774Subtotal96,044,724Plus Estimating Contingency and Design Evolution Factor@2.5%2,401,118Plus Escalation@1.0%960,447Building permits1.0%Of D/C + Design Add & Esc.994,063Additional Impact Items0.0%of total Construction-0.0%of total Construction-0.0%of total Construction-Subtotal100,400,353Owner's Construction contingency5.0%Of D/C and permits5,020,018Furniture, Fixtures, and Equipment1,991,032Public spaces Lobby(ies)98,822@5494,110Technology and telecomm equipment627,355@21,254,710Leased Space FF&ECo-Living (Kitchens/LR,DR Furn)@-Co-Working (furn. and partitions)@-Outdoor/rooftop FF&EFlat-Subtotal1,748,820Plus Estimating Contingency and Design Evolution Factor@2.5%43,721Plus Escalation@1.0%17,488Purchasing fees5.0%of FF&E90,501FF&E Contingency5.0%of FF&E90,501Soft Costs14,093,580Project Soft CostsArchitectural and Engineering FeesConceptual FIT Test Flat Fee20,000Entitlement design and applicationFlat Fee50,000Architectural & Eng/design & Construction docs6.0%Of Direct Constr.2,184,1776.0%Legal - project based0.5%of construction182,015Land closing costs 1.0%of land39,000Survey0.2%of construction72,806Financing costsConstruction period interest paymentssee calcsLoan closing costs0.0%of construction-Construction Holding costs(taxes, insurance)0.5%of construction182,015Interior design fee0.5%of construction182,015Environmental Remediationestimate5,000,000Additional Items/ImpactestimateAdditional Items/ImpactestimateSoft Costs Subtotal7,912,027
11 Project Soft Cost contingency at 5.0%of soft costs395,601Subtotal All Costs above115,719,030Corporate Soft CostsCorporate Professional fees, legal, acct'g 0.0%of subtotal all costs-Developer's Fees4.0%of subtotal all costs4,628,761Overall project contingency1.0%of subtotal all costs1,157,190Pre-opening and Working Capital (P-O & WC)1,181,527Non-land costs before Pre-Opening/Working Capital 121,504,982Pre-openingSupplies, Services, recruiting0.1%of total121,505Operating reserves ( 3 months of proj.operating exp's)25.0%of total1,003,759Projected Annual OPEX from Pencil Test-4,015,035Subtotal1,125,264Pre-opening/Working Capital Contingency5.0%of P-O & WC56,263Optional Rounding Add (general contingency)Total Development Cost126,586,509
12 Appendix B: Financial Pro-Forma Pro-FormaFigures in USDTotalYear1234567891011Period Beginning of Period (BoP)1-Jan-241-Jan-251-Jan-261-Jan-271-Jan-281-Jan-291-Jan-301-Jan-311-Jan-321-Jan-331-Jan-34Period End of Period (EoP)31-Dec-2431-Dec-2531-Dec-2631-Dec-2731-Dec-2831-Dec-2931-Dec-3031-Dec-3131-Dec-3231-Dec-3331-Dec-34Rent GrowthMultifamily2.0%4.0%6.1%8.2%10.4%12.6%14.9%17.2%19.5%21.9%24.3%MF Retail2.0%4.0%6.1%8.2%10.4%12.6%14.9%17.2%19.5%21.9%24.3%Retail2.0%4.0%6.1%8.2%10.4%12.6%14.9%17.2%19.5%21.9%24.3%Industrial2.0%4.0%6.1%8.2%10.4%12.6%14.9%17.2%19.5%21.9%24.3%Parking2.0%4.0%6.1%8.2%10.4%12.6%14.9%17.2%19.5%21.9%24.3%Other Income Growth2.0%4.0%6.1%8.2%10.4%12.6%14.9%17.2%19.5%21.9%24.3%Expense Growth2.0%4.0%6.1%8.2%10.4%12.6%14.9%17.2%19.5%21.9%24.3%Stabilization Multifamily0.0%0.0%50.0%75.0%75.0%100.0%100.0%100.0%100.0%100.0%100.0%MF Retail0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Retail0.0%0.0%50.0%75.0%75.0%100.0%100.0%100.0%100.0%100.0%100.0%Industrial6.8%20.3%27.0%45.3%81.8%100.0%100.0%100.0%100.0%100.0%100.0%Parking0.0%0.0%50.0%75.0%75.0%100.0%100.0%100.0%100.0%100.0%100.0%RevenuesGross Potential Rent105,998,34836,637112,1086,880,84710,555,05510,979,26514,879,67715,177,27115,480,81615,790,43216,106,24116,428,366Multifamily86,457,609--5,712,2258,739,7048,913,36812,123,71712,366,19212,613,51612,865,78613,123,10213,385,564MF Retail------------Retail15,380,062--1,016,1551,554,7181,585,6112,156,7052,199,8392,243,8352,288,7122,334,4862,381,176Industrial4,160,67836,637112,108152,467260,633480,285599,255611,240623,465635,934648,653661,626Vacancy(5,969,353)(3,664)(11,211)(382,150)(587,426)(620,546)(838,648)(855,421)(872,529)(889,980)(907,779)(925,935)Multifamily(4,322,880)--(285,611)(436,985)(445,668)(606,186)(618,310)(630,676)(643,289)(656,155)(669,278)MF Retail------------Retail(1,230,405)--(81,292)(124,377)(126,849)(172,536)(175,987)(179,507)(183,097)(186,759)(190,494)Industrial(416,068)(3,664)(11,211)(15,247)(26,063)(48,029)(59,926)(61,124)(62,347)(63,593)(64,865)(66,163)Net Rental Income100,028,99532,973100,8976,498,6979,967,62910,358,71914,041,02914,321,85014,608,28714,900,45315,198,46215,502,431Multifamily82,134,729--5,426,6148,302,7198,467,70011,517,53111,747,88211,982,84012,222,49712,466,94612,716,285MF Retail------------Retail14,149,657--934,8631,430,3401,458,7621,984,1682,023,8522,064,3292,105,6152,147,7272,190,682Industrial3,744,61032,973100,897137,220234,570432,257539,330550,116561,119572,341583,788595,463Concessions/ Free Rent(8,634,897)(366)(9,135)(560,701)(860,103)(894,670)(1,212,504)(1,236,754)(1,261,489)(1,286,719)(1,312,454)(1,338,703)Multifamily(432,288)--(28,561)(43,699)(44,567)(60,619)(61,831)(63,068)(64,329)(65,616)(66,928)MF Retail------------Retail(153,801)--(10,162)(15,547)(15,856)(21,567)(21,998)(22,438)(22,887)(23,345)(23,812)Industrial(41,607)(366)(1,121)(1,525)(2,606)(4,803)(5,993)(6,112)(6,235)(6,359)(6,487)(6,616)Non-Revenue/Bad Debt(1,743,475)(366)(1,844)(113,192)(173,635)(180,613)(244,776)(249,672)(254,665)(259,758)(264,954)(270,253)Multifamily(432,288)--(28,561)(43,699)(44,567)(60,619)(61,831)(63,068)(64,329)(65,616)(66,928)MF Retail------------Retail(153,801)--(10,162)(15,547)(15,856)(21,567)(21,998)(22,438)(22,887)(23,345)(23,812)Industrial(41,607)(366)(1,121)(1,525)(2,606)(4,803)(5,993)(6,112)(6,235)(6,359)(6,487)(6,616)Net Rental Revenue98,773,60432,24098,6556,418,2029,843,92510,228,26813,864,67314,141,96614,424,80614,713,30215,007,56815,307,719Multifamily81,270,153--5,369,4918,215,3228,378,56611,396,29411,624,22011,856,70512,093,83912,335,71512,582,430MF Retail------------Retail13,842,056--914,5401,399,2461,427,0501,941,0341,979,8552,019,4522,059,8412,101,0382,143,059Industrial3,661,39632,24098,655134,171229,357422,651527,345537,891548,649559,622570,815582,231Economic Occupancy92.2%88.0%88.0%93.3%93.3%93.2%93.2%93.2%93.2%93.2%93.2%93.2%Other IncomeParking Income1,692,750--111,839171,114174,515237,370242,117246,960251,899256,937262,075Multifamily1,079,363--71,313109,109111,277151,356154,383157,471160,620163,833167,110MF Retail------------Retail418,754--27,66742,33043,17258,72159,89561,09362,31563,56164,833Industrial194,632--12,85919,67520,06627,29327,83928,39528,96329,54330,133Miscellaneous Fees6,916,609--456,978699,176713,069969,897989,2951,009,0811,029,2631,049,8481,070,845Multifamily6,916,609--456,978699,176713,069969,897989,2951,009,0811,029,2631,049,8481,070,845MF Retail------------Retail------------Industrial------------Total Other Income8,609,359--568,817870,291887,5841,207,2671,231,4131,256,0411,281,1621,306,7851,332,921Multifamily7,995,972--528,291808,285824,3471,121,2541,143,6791,166,5521,189,8831,213,6811,237,955MF Retail------------Retail418,754--27,66742,33043,17258,72159,89561,09362,31563,56164,833Industrial194,632--12,85919,67520,06627,29327,83928,39528,96329,54330,133Effective Gross Income107,382,96332,24098,6556,987,01910,714,21611,115,85215,071,94015,373,37915,680,84615,994,46316,314,35316,640,640Multifamily89,266,125--5,897,7829,023,6079,202,91312,517,54812,767,89913,023,25713,283,72213,549,39613,820,384MF Retail------------Retail14,260,810--942,2071,441,5771,470,2221,999,7552,039,7502,080,5452,122,1562,164,5992,207,891Industrial3,856,02932,24098,655147,030249,032442,717554,637565,730577,045588,586600,357612,364Operating ExpensesMultifamily26,779,837--1,769,3352,707,0822,760,8743,755,2643,830,3703,906,9773,985,1174,064,8194,146,115MF Retail------------Retail4,278,243--282,662432,473441,067599,926611,925624,164636,647649,380662,367Industrial1,155,26810,17331,12842,33472,368133,358166,391169,719173,113176,576180,107183,709Total Operating Expenses32,213,34810,17331,1282,094,3313,211,9233,335,2984,521,5824,612,0144,704,2544,798,3394,894,3064,992,192Expense Ratio30.3%31.6%31.6%30.0%30.0%30.0%30.0%30.0%30.0%30.0%30.0%30.0%Net Operating Income75,169,61522,06867,5274,892,6887,502,2927,780,55310,550,35810,761,36510,976,59311,196,12411,420,04711,648,448Multifamily62,486,287--4,128,4486,316,5256,442,0398,762,2848,937,5299,116,2809,298,6059,484,5779,674,269MF Retail------------Retail9,982,567--659,5451,009,1041,029,1551,399,8281,427,8251,456,3821,485,5091,515,2191,545,524Industrial2,700,76122,06867,527104,696176,664309,359388,246396,011403,931412,010420,250428,655Cash Flow Before Debt Service75,169,61522,06867,5274,892,6887,502,2927,780,55310,550,35810,761,36510,976,59311,196,12411,420,04711,648,448Multifamily62,486,287--4,128,4486,316,5256,442,0398,762,2848,937,5299,116,2809,298,6059,484,5779,674,269MF Retail------------Retail9,982,567--659,5451,009,1041,029,1551,399,8281,427,8251,456,3821,485,5091,515,2191,545,524Industrial2,700,76122,06867,527104,696176,664309,359388,246396,011403,931412,010420,250428,655
13 Appendix C: Cash Flow & Assumptions Summary Project UnderwritingFigures in USDTotalPeriod End of Period (EoP)1-Jan-2431-Dec-2431-Dec-2531-Dec-2631-Dec-2731-Dec-2831-Dec-2931-Dec-30Year01234567NOI41,576,851-22,06867,5274,892,6887,502,2927,780,55310,550,35810,761,365Multifamily34,586,825--4,128,4486,316,5256,442,0398,762,2848,937,529MF Retail--------Retail5,525,457--659,5451,009,1041,029,1551,399,8281,427,825Industrial1,464,57022,06867,527104,696176,664309,359388,246396,011Net Resale147,284,902-------147,284,902Multifamily123,720,940------123,720,940MF Retail--------Retail18,447,499------18,447,499Industrial5,116,462------5,116,462Total Cash From Project 188,861,753-22,06867,5274,892,6887,502,2927,780,55310,550,358158,046,267Development Cost(126,586,509)(7,743,375)(15,486,750)(37,852,168)(30,371,672)(26,735,729)(8,396,815)--Project Cash Flow Unlevered62,275,244(7,743,375)(15,464,683)(37,784,641)(25,478,984)(19,233,436)(616,262)10,550,358158,046,267PV Factor1.000.910.830.750.680.620.560.51Present Value1,366,890(7,743,375)(14,058,802)(31,226,976)(19,142,738)(13,136,696)(382,650)5,955,40281,102,725Yield On Cost8.5%0.0%0.0%0.1%3.9%5.9%6.1%8.3%8.5%
14 Appendix D: Gantt Chart of Project ScheduleConstruction Timeline
15
16 Appendix E: Architectural RFPProject Description 105 Cherry Street is a seven-building community consisting of four mixed-use multi-family/retail buildings, two light industrial buildings, and a parking garage. The area also has shared spaces such as greenery and walkways. The goal of the project is to reimagine the development within Cherry Street District to pay homage to the industrial history and character of the area while also creating a vibrant interactive area to bring community members together. The project will have 85,252SF of retail space, 295,452 SF of residential space within 432 apartment units, and 39,416 SF of flexible light industrial space. Site Characteristics Site Overview: Southwest Area / South Side median real estate price is $285,156, which is less expensive than 71.9% of New York neighbourhoods and 56.3% of all U.S. neighbourhoods. The average rental price in Southwest Area / South Side is currently $2,231, based on NeighborhoodScout's exclusive analysis. Rents here are currently lower in price than 64.1% of New York neighbourhoods. Southwest Area / South Side real estate is primarily made up of small (studio to two bedroom) to medium sized (three or four bedroom) single-family homes and small apartment buildings. Most of the residential real estate is renter occupied. Many of the residences in the Southwest Area / South Side neighbourhood are relatively historic, built no later than 1939, and in some cases, quite a bit earlier. A number of residences were also built between 1970 and 1999. Home and apartment vacancy rates are 6.7% in Southwest Area / South Side. Neighbourhoods analysis shows that this rate is lower than 57.4% of the neighbourhoods in the nation, approximately near the middle range for vacancies.
17 The site is between the boundary of Inlet Island and Southwest Area Cherry Street and Taber Street: The intent of the Design Guidelines for the Southwest Area is to guide new development on the vacant parcels. This document recognizes that the existing industrial zone along Cherry Street and Taber Street is very different in characteristic and land use from the vacant southwest area parcels. Therefore, to the extent reasonable, the spirit of the design guidelines should be applied to redevelopment along Cherry Street and Taber Street. -People: With more than 1.7% of residents living with a same sex partner, Southwest Area / South Side is truly a neighborhood that stands out from the rest in this regard. In fact, exclusive analysis by NeighborhoodScout reveals that this neighborhood has a greater concentration of same sex couples than 95.6% of U.S. neighborhoods.-Modes of transportation: More people in Southwest Area / South Side choose to walk to work each day (11.3%) than almost any neighborhood in America. If you are attracted to the idea of being able to walk to work, this neighborhood could be a good choice.-Diversity: Did you know that the Southwest Area / South Side neighborhood has more Finnish and Iranian ancestry people living in it than nearly any neighborhood in America? It's true! In fact, 2.1% of this neighborhood's residents have Finnish ancestry and 1.6% have Iranian ancestry.-Environmental Report:Due to the historical land uses, samples collected as part of this Investigation were analyzed for a combination of volatile organic compounds (VOCs), semi-volatile organic compounds (SVOCs), poly-chlorinated biphenyls (PCBs), and metals. The scope of the Phase II included surface soil sampling, a soil boring program, groundwater well installation and sampling, and reporting.-Risks: Flood- flood control channel constructed in 1960s Property Size: The project sits on a 6.65-acre parcel of land that is currently abandoned. The site is part of the cherry district area, formally an industrial part of Ithaca located on the Waterfront. Existing Conditions: The parcel is in poor condition and will need remediation. There are currently abandoned structures on the property that will need to be removed. In addition to the structures that need to be removed, the site will need to undergo further soil testing and potential gas tank remediation given the sites former use. The site has already undergone an environmental testing which noted soil testing was recommended. Scope of Services:
18 The architectural firm awarded this project will undertake a comprehensive scope of work, beginning with the development of initial design concepts, which will encompass architectural drawings, floor plans, and 3D renderings. Subsequently, the firm will delve into the detailed design phase, where they will craft meticulous architectural plans and specifications that align with construction bidding and permitting requirements. Sustainability will be at the forefront of this endeavour, with a focus on integrating sustainable design features, materials, and systems to enhance energy efficiency and meet stringent environmental objectives. To address existing conditions, the firm will conduct a thorough assessment of the current site, structures, and infrastructure. This assessment will involve: •Site Evaluation: Carefully examine the existing site, considering topography, soil conditions, drainage, and any natural features that may impact the design.•Building Inspection: Assess the condition of the existing structures on the site, identifying any potential for reuse.•Utilities and Infrastructure Analysis: Evaluate the state of utilities such as water supply, sewage systems, electrical connections, and gas lines to determine their capacity and condition.•Environmental Considerations: Conduct environmental assessments to identify any potential hazards, contamination, or ecological concerns that may require mitigation. Based on these assessments, the architectural firm will develop a comprehensive plan to address existing conditions. This plan may include recommendations for demolition or adaptive reuse of existing structures, as well as strategies for integrating the site's unique characteristics into the overall design. The goal is to maximize the project's potential while respecting and addressing any constraints posed by the existing conditions. Throughout this process, sustainability and environmental considerations will remain paramount, ensuring that the project aligns with the highest standards of responsible development. Deliverables (Drawings, Renderings, etc.): Architects will have to submit drawings, renderings, and designs for each building they wish to work on. Note, the developer may ask for revisions to each design if it does not fit the community façade or may need to be redesigned to fit the landscape. If asked to complete revisions, the development team will respond to the initial submittal and with a follow update of when the revisions must be completed by. Travel is not covered under the initial submittal process and architects will have to cover their own travel expenses. We also ask that you provide a list of venders and if chosen will be expected to complete a NDA and a formal contract. Examples of Past Work/Portfolio:No more than three projects of a similar type and size for a similar client RFP Timeline: -RFP Release: November 1, 2023-Deadline for Submission of Proposal: December 15, 2023-Evaluation and Shortlisting of Firms: January 15, 2024 -Site Visits for Shortlisted Firms: January 15-February 15, 2024-Interviews and presentations: February 1-15, 2024-Selection of Architecture Firm: March 1, 2024
19 Project Schedule: 1.Conceptualization: Complete prior to development2.Pre-Development: November 20233.Feasibility: TBD on funding sources4.Planning: November 2023 – March 20245.Construction and Leasing: March 2024 – February 2028Selection Criteria: Selection will be based on ability to complete the project on budget and on time with careful consideration for quality and community development. Applicants will be evaluated on the previous work they have undertaken, proximity to Ithaca, and being able to bring the Cherry Street Development vision to life. We also ask that you provide up to 3 references from customers who can speak to your work. Provide the name, the project, and contact information such as number and email. Soft Costs and Fees: See breakdown below Project Team: 1.Project Manager: The Project Manager is the cornerstone of the project's success, assuming a central role in overseeing and coordinating all aspects. Responsible for the overall project management, this professional ensures seamless collaboration among various stakeholders, effective resource allocation, and adherence to project timelines and budgets. Their strategic leadership encompasses risk management, conflict resolution, and the implementation of best practices to drive the project towards successful completion.2.Contractors/Civil Engineers: Contractors and Civil Engineers are pivotal in translating project designs into tangible structures. With expertise in construction methodologies, these professionals play a crucial role in executing the physical construction of the project. Their Project Soft CostsArchitectural and Engineering FeesConceptual FIT Test Flat Fee20,000Entitlement design and applicationFlat Fee50,000Architectural & Eng/design & Construction docs6.0%Of Direct Constr.2,184,1776.0%Legal - project based0.5%of construction182,015Land closing costs 1.0%of land39,000Survey0.2%of construction72,806Financing costsConstruction period interest paymentssee calcsLoan closing costs0.0%of construction-Construction Holding costs(taxes, insurance)0.5%of construction182,015Interior design fee0.5%of construction182,015Environmental Remediationestimate5,000,000Additional Items/ImpactestimateAdditional Items/ImpactestimateSoft Costs Subtotal7,912,027Project Soft Cost contingency at 5.0%of soft costs395,601Subtotal All Costs above115,719,030Corporate Soft CostsCorporate Professional fees, legal, acct'g 0.0%of subtotal all costs-Developer's Fees4.0%of subtotal all costs4,628,761Overall project contingency1.0%of subtotal all costs1,157,190
20 responsibilities include coordinating construction activities, managing subcontractors, ensuring quality control, and adhering to safety standards. The procurement strategy involves a meticulous selection process, considering factors such as experience, track record, and the ability to deliver projects of similar scale and complexity.3.Architect: Architects bring a visionary perspective to the project, focusing on the design and aesthetic aspects of the development. Beyond creating visually appealing structures, they consider functionality, sustainability, and the overall user experience. The procurement strategy involves engaging in a design competition to attract innovative proposals. Evaluation criteria include alignment with project goals, past project successes, and a commitment to community enhancement.4.Architect Interior: Interior Architects specialize in the aesthetic and functional aspects of the project's interior spaces. Their expertise ensures a harmonious integration of design elements, considering both visual appeal and practical functionality. The procurement strategy entails engaging specialized interior architectural firms with a proven track record in creative and functional interior designs. Collaboration skills and the ability to align with the project vision are prioritized in candidate selection.5.Soil Engineers: Soil Engineers play a critical role in assessing the soil's composition and ensuring stable foundations for structures. Their geotechnical expertise is essential for mitigating risks associated with soil conditions. The procurement strategy involves selecting firms with a strong geotechnical background and experience in conducting comprehensive soil analyses. Project compatibility, especially experience in similar soil conditions, is a key consideration.6.Electrical Engineer:Electrical Engineers take charge of the electrical infrastructure and systems within the development. Their responsibilities include designing and implementing electrical systems, with a focus on sustainability and efficiency. The procurement strategy emphasizes engaging firms with expertise in large-scale electrical systems design. Prioritization is given to candidates with a proven track record of integrating sustainable and energy-efficient solutions.7.Mechanical Engineer: Mechanical Engineers are tasked with the design and implementation of mechanical systems within the project. Specializing in heating, ventilation, and air conditioning (HVAC) systems, they contribute to the project's overall functionality and efficiency. The procurement strategy involves selecting firms with specialized knowledge in HVAC systems and a demonstrated capability to integrate innovative and efficient mechanical solutions.8.Transportation Expert: Transportation Experts concentrate on optimizing transportation infrastructure and connectivity. With expertise in urban transportation planning, they contribute to creating accessible and efficient transportation networks. The procurement strategy prioritizes candidates with a proven track record in urban mobility and an emphasis on community-friendly transportation solutions.9.Financial Analyst: Financial Analysts are indispensable for evaluating economic feasibility, managing budgets, and ensuring financial sustainability. Engaged in real estate finance, these professionals navigate the financial complexities of large-scale developments. The procurement strategy involves selecting analysts with a background in real estate finance, strong risk management skills, and experience in mitigating financial uncertainties.10.Legal Expert: Legal Experts navigate regulatory frameworks, ensuring compliance and managing legal aspects. Specializing in real estate law and zoning regulations, they play a crucial role in mitigating legal risks. The procurement strategy includes selecting legal firms with expertise in real estate law, a track record of navigating complex legal landscapes, and an in-depth understanding of local zoning laws and regulations.11.Human Capital Manager: Human Capital Managers oversee workforce development, recruitment, and training. Their expertise in human resources contributes to fostering a skilled and engaged workforce. The procurement strategy involves engaging candidates with a strong background in human resources, workforce development, and talent acquisition. Community
21 engagement skills are prioritized to create positive community interactions through employment opportunities.12.Other Specialties: Identifying and procuring additional specialties, such as environmental consultants, community engagement specialists, and sustainability experts, is crucial. The procurement strategy involves conducting a thorough needs assessment to identify specific requirements for additional specialties. Contracts are structured to accommodate dynamic project needs, ensuring flexibility in adapting to emerging specialties.Contacts: Roberto Teran Alcantara: Chief Financial Officer Email: Rat75@cornell.edu Jennifer Andrea: Master Scheduler and Talent Acquisition Specialist Email: Jla289@cornell.edu Lauren Oertel: Design and Community Expert Email: Lro24@cornell.edu Rane He: Community Research Expert Email: ah872@cornell.edu Marco Matius: Risk Mitigation Specialist Email: Mm2829@cornell.edu Submission method: Submissions should be sent to Roberto Teran Alcantara by the deadline via email. Terms & Conditions Our firm anticipates that the chosen supplier will adhere to the terms and conditions outlined in the forthcoming Adobe agreement. Utilizing the AIA B101, our legal team has implemented specific modifications, and we kindly request your thorough review of the document. Should there be any proposed revisions or redlines, we kindly request architects to submit them by the specified date. It is crucial to emphasize that compliance with the stipulated terms and conditions will play a pivotal role in the selection process for architects. About Us: We are a distinguished local development firm specializing in the revitalization of communities and the art of placemaking. Our core focus lies in the strategic redevelopment of areas, with a primary emphasis on retail, multi-family residences, and light industrial offices. We pride ourselves on our commitment to infusing historical significance, artistic elements, and green spaces into each of our projects, transcending mere spaces and transforming them into vibrant and purposeful places. Through a meticulous integration of community history, artistic expression, and sustainable greenery, we aim to contribute meaningfully to the built environment, fostering environments that resonate with both residents and businesses alike. Our dedication to excellence and innovation underscores our mission to create spaces that not only meet functional requirements but also enrich the surrounding community, promoting a sense of belonging and enhancing the overall quality of life.