CIVIC CAMPUS MASTER PLAN...Oct 06, 2020 · (RMB) 1983 • 110 McDowell-Vacant (Old Police HQ) 1963...

CIVIC CAMPUS MASTER PLANEconomic Development &Innovation CommitteeMay 22, 2018

CURRENT STATE OF DOWNTOWN FACILITIES

FUTURE OF DOWNTOWN FACILITIESAvery B. Upchurch Complex (RMB Block)• Raleigh Municipal Bldg.

(RMB) 1983• 110 McDowell-Vacant (Old

Police HQ) 1963

11

234

5

6

2

Professional Bldg.

310 West Martin Bldg. (Dillon Bldg.) 1993

34

One Exchange Plaza (OEP) 2004

56

Briggs Building

One City Plaza

CURRENT DOWNTOWN CAMPUS

1

2

3

4

5

6



Police HQ) 1963

11

234

5

6

2

Professional Bldg.


34


56

Briggs Building

One City Plaza

ADDING FACILITIES OVER TIME

1 1983147,000population

64square miles



Police HQ) 1963

11

234

5

6

2

Professional Bldg.


34


56

Briggs Building

One City Plaza

1

2

3

4

5

6

2018460,000population

147square miles

ADDING FACILITIES OVER TIME

SECURITY CHALLENGES

Multiple building ENTRANCES

Unsecured PARKING

Lack of site PERIMETER security (bollards)

Lack of security SCREENING (turnstiles, metal detectors)

INCONSISTENT level of security between facilites (owned vs. leased)

INFRASTRUCTURE COST

• SERVERS• FIBER OPTIC LINES• NETWORKS

INFORMATION TECHNOLOGY (IT)

• FIRE• ACCESS• EMERGENCY BACKUP (GENERATORS)

BUILDING SYSTEMS

• ADDITIONAL PERSONNEL REQUIREDMAINTENANCE AND OPERATIONS

INEFFICIENT USE OF SPACE

DUPLICATION of resources

UNIQUE layouts for each building we occupy

Increased cost of providing INFRASTRUCTURE

Loss of time and cost due to CHURN

ADA + CUSTOMER SERVICE

City-owned facilites need ADA RENOVATIONS

2 of 3 Leased facilities DO NOT MEET ADA requirements

9 service locations spread across 3 buildings

Public meeting spaces are UNDERSIZED

A FRAGMENTED organization is CONFUSING for citizens

ACCESS

PROXIMITY TO AVAILABLE PARKING

PROXIMITY TO PUBLIC TRANSIT HUBS

SOCIAL EQUITY



Police HQ) 1963

11

234

5

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2

Professional Bldg.


34


56

Briggs Building

One City Plaza

CHALLENGES OF A FRAGMENTEDCAMPUS

SECURITY

INFRASTRUCTURE

USE OF SPACE

ADA + CUSTOMER SERVICE

ACCESS

CITY OWNED BUILDINGS

BUILDING SQFT

AGE OF BUILDING

10 YEAR CAPITALMAINTENANCE

EMPLOYEES

RALEIGH MUNICIPALBUILDING

DILLON BUILDING

ONE EXCHANGE

PLAZA

110 MCDOWELL

35 YEARS(1983)

$2,146,000

120,000 SQFT

379

53 YEARS(1965)

$1,050,000

45,000 SQFT

110

33 YEARS(1985)

$3,003,000

130,000 SQFT

331

59 YEARS(1959)

57,000 SQFT

VACANT

$100,000

CITY-OWNEDBUILDINGS

CITY LEASED BUILDINGS

BUILDING SQFT

LEASING COSTS

EMPLOYEES

PROFESSIONAL BUILDING

BRIGGS BUILDING

$189,000

15,000 SQFT 16,000 SQFT11,000 SQFT

51

$300,000

15

$574,000

80

ONECITY PLAZA

LEASEDSPACE

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Renovate & later Replace Municipal Deck

Renovate RMB

Demolish Old Police HQ

RenovateOEP

REQUIRED MAINTENANCECURRENT FACILITIES

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Demo Police HQ(5 Years)$171,360

RMB & OEP Security(5 Years) $2,500,000

RMB ADA Upgrades(5 Years) $3,000,000

Demo Municipal Deck(10-15 Years)$261,600

Replace Municipal Deck(10-15 Years)$14,030,000

RMB Systems Upgrade(15 Years)$32,000,000

OEP Systems Upgrade(20 Years) $19,500,000

Soft Cost$8,750,000

COST ESTIMATES

$80,000,000+Cost estimate in today’s dollars.

TOTAL

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COST ESTIMATES








Soft Cost$8,750,000

Total

$80,000,000**Cost estimates in today’s dollars.

HVAC / MechanicalLife SafetyPlumbingElectricalElevators

RoofWindows

SYSTEMS UPGRADE


FISCAL RESPONSIBILITY

• Over $1,000,000 in leasing cost per year, and RISING INCREASED LEASING COSTS

• 45 years is the average age of City-owned buildings downtown MAINTENANCE + ENERGY CONSUMPTION OF AGING FACILITIES

• DUPLICATION of resources• Increased cost of INFRASTRUCTURE

INEFFICIENCIES AND COSTS OF A FRAGMENTED WORKFORCE

INVESTING IN OUR FACILITIESPRESENTS AN OPPORTUNITY

?Duke PerformingArts Center Convention Center& Red Hat Amphitheater Raleigh Union Station

WHAT VISION, PRIORITIES & GOALS HAVE BEEN ESTABLISHED?

DECISION POINT - IMPLEMENTATION

NO-BUILD(STATUS QUO)

BUILD

MASTER PLAN

MASTER PLAN

BUILDNO-BUILD(STATUS QUO)

• SYSTEMS UPGRADE• STRUCTURAL REMEDIATION• ADA • SECURITY

MAINTAIN OUR CURRENT FACILITIES


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Soft Cost$8,750,000

COST ESTIMATES

NO-BUILD OPTIONMAINTAINING CURRENT FACILITIES

$80,000,000+Cost estimate in today’s dollars.

TOTAL



• ONE EXCHANGE PLAZA• 310 W MARTIN STREET

LOSS OF TAXABLE REAL ESTATENO-BUILD(STATUS QUO)

2016 Wake County Assessment $4,068,202

Wake County $25,019 per year

City of Raleigh $17,302 per year

Downtown MSD $2,559 per year

TAX ESTIMATE

310 West Martin Street

= $19,861 per year~5% inflation per year.Improvements to property will increase value.

One Exchange Plaza

2016 Wake County Assessment $15,752,356

Wake County $96,877 per year

City of Raleigh $66,995 per year

Downtown MSD $9,908 per year

TAX ESTIMATE

= $76,903 per year~5% inflation per year.Improvements to property will increase value.

310 West Martin Street

One Exchange Plaza +

$5 million +REVENUE

30 YEAR PERIOD

=



• ONE EXCHANGE PLAZA• 310 W MARTIN STREET

LOSS OF TAXABLE REAL ESTATE

• LIMITED OFFICE SUPPLY DOWNTOWN• LEASE RATES CONTINUE TO RISE

LEASING COSTS AS STAFF GROWS


DOWNTOWN STAFF - PROJECTIONS

2023 2033 2048

1,130 - 1,160staff

YEAR 5 YEAR 15 YEAR 30

1,050 +/- staff

2018YEAR 0

1,310 - 1,420staff

1,640 - 1,910staff

1.5% - 2.0% historic growth rate

NEW POSITIONSAT 1.5%-2% GROWTH

2023

80 - 110

ADDITIONAL SPACE NEEDEDAT 300 GSF/ PERSON

24,000 SF - 33,000 SF

YEAR 5

CUMULATIVE* LEASE COST

$23/SF at 1.5% INFLATION RATE

$8.0 million - $8.5 million

*Includes existing leased space

DOWNTOWN STAFF - LEASING COSTS


2023 2033

80 - 110 260 - 365


24,000 SF - 33,000 SF

YEAR 5 YEAR 15

79,000 SF - 109,000 SF


$35 million - $41 million






2023 2033 2048

590 - 855


24,000 SF - 33,000 SF

YEAR 5 YEAR 15 YEAR 30

79,000 SF - 109,000 SF

177,000 SF - 256,000 SF





80 - 110 260 - 365





LOSS OF TAXABLE REAL ESTATE

$80 million +

$120-160 million

$5 million +

30 YEAR OUTLOOK

LEASING COSTS AS STAFF GROWS


Estimate in today’s dollars, not at time of renovations.

$200-300MEstimated Total

MASTER PLAN

BUILD

?NO-BUILD

(STATUS QUO)

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PHASE I

Does not disrupt RMB or Municpal Deck

BUILD OPTIONNEW CITY HALL - PHASE 1

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NEW CITY HALL

VAR

IES


YEAR 2023-2024

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DEPARTMENTALOFFICE SPACE

VAR

IES


PUBLIC FACING FUNCTIONS

BELOW-GRADE PARKING GARAGE

20 STORIES 17 STORIES +/- 14 STORIES +/-

OPTION 1ABOVE CAPACITY

OPTION 2AT CAPACITY

OPTION 3BELOW CAPACITY

20 17 14

20 STORIES


SIZE

1,400 ppl

420,000 SF

CAPACITYAT 300 GSF/ PERSON

Year 203714 YEAR CAPACITY

1.5%GROWTH RATE


2.0%GROWTH RATE

CAPACITY DOES NOT INCLUDE PHASE II (RMB or NEW FACILITY)

20

20 STORIES

SIZE

1,400 ppl

420,000 SF


~$190 millionESTIMATED COST

$15.08 / SFEFFECTIVE RENTOVER 30 YEARS



20

17+/- STORIES

OPTION 2AT CAPACITY

SIZE

1,200 ppl

360,000 SF



1.5%GROWTH RATE


2.0%GROWTH RATE


17

17+/- STORIES

SIZE

1,200 ppl

360,000 SF





OPTION 2AT CAPACITY

17

14+/- STORIES


SIZE

1,000 ppl

300,000 SF


-40,000 sf DEFICIT AT MOVE IN

1.5%GROWTH RATE

2.0%GROWTH RATE

-50,000 sf DEFICIT AT MOVE IN


14

14+/- STORIES


SIZE

1,000 ppl

300,000 SF





14

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VAR

IES

PHASE II/III

PHASING IMPLICATIONSPHASE 1

RMBPHASE II

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Consolidates all downtown staff:

- RMB - OEP - 310 W Martin - Professional Bldg - Briggs Bldg - One City Plaza - new leases

10-15 years of capacity from move in date, 5-6 years from today.

Municipal Deck + new parking provides required spaces.

Uses all floors allowed by zoning.

20 STORIES

OPTION 1 - ABOVE CAPACITY20 STORIES420,000 SF

RMBPHASE II

20

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Can be entirely vacated.

Reaches end of life ~10 years after Phase I completed.

Systems upgrade, renovations required ifRMB is to be maintained.

Phase I + RMB provides 20-30 years of capacity after Phase I is completed.

Phase I + Phase II tower could provide capacity for 45-61 Years.

Allows flexibilty for use, timeline for starting Phase II.

RMBW/ ABOVE CAPACITY OPTION






20 STORIES

OPTION 1 - ABOVE CAPACITY20 STORIES420,000 SF

20

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17 STORIES

OPTION 2 - AT CAPACITY17 STORIES +/-360,000 SF

RMBPHASE II

17

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Can be entirely vacated.

Phase I + RMB provides 15-25 years of capacity after Phase I is completed.

Phase I + Phase II tower could provide capacity for 45-55 Years.

Phase II would need to start immediately after Phase I.

RMBW/ AT CAPACITY OPTION





17 STORIES

OPTION 2 - AT CAPACITY17 STORIES +/-360,000 SF

17

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50,000 SF short of space needed

Explore alternatives for Phase I consolidation:

RMBPHASE I

DECISION

OPTION 3 - BELOW CAPACITY14 STORIES +/-300,000 SF 14 STORIES

14

OPTION 3 - BELOW CAPACITY14 STORIES +/-300,000 SF

BUILDINGSVACATED

IMPACT

Consolidate all staff on Municpal Block GOAL

All owned and leased except RMB

• Committed to RMB long term.

• Site capacity limited to 9-14 Years

USE RMB

ADDITIONALCOST

$40M RMB Renovations

BUILDINGSVACATED

IMPACT

Consolidate all staff on Municpal Block GOAL

All owned and leased except RMB

• Committed to RMB long term.

• Site capacity limited to 9-14 Years

USE RMB

Maintain flexibility for Phase II.

Only owned property.(RMB, OEP, 310 Martin)

• Staff not fully consolidated in Phase I

• Site capacity to 35-45 Years with Phase II Tower

VACATE RMB

OPTION 3 - BELOW CAPACITY14 STORIES +/-300,000 SF

ADDITIONALCOST

$40M RMB Renovations

Leasing Costs until Phase II Complete

MASTER PLAN


MASTER PLAN

PHASE INO-BUILD(STATUS QUO)

PHASE I HOW MUCH?

~$190M

~$165M

~$140M

ABOVE CAPACITY

AT CAPACITY

BELOW CAPACITY

ABOVE CAPACITY

AT CAPACITY

BELOW CAPACITY

PHASE I HOW MUCH?

~$190M

~$165M

~$140M

9-14 YEARS OF CAPACITY BEFORE PHASE II NEEDED.

1-4 YEARS OF CAPACITY BEFORE PHASE II NEEDED.

USE RMB (+40M Renovations)

VACATE RMB (+ Leasing Costs)

IMPACTS TO CAPACITY

RENOVATE RMB?NOW / LATER?

HOW MUCH?

IMPACTS TO PHASE IIPHASE I

~$190M

~$165M

~$140M

ABOVE CAPACITY

AT CAPACITY

BELOW CAPACITY

PROVIDE GROWTH SPACE?

PHASE I OR II?

CIVIC CAMPUS

PHASE I-II

CITY-OWNED DEVELOPMENT

LEVERAGE PARTNERSHIPS

FULL SITE DEVELOPMENTVISION OF THE MASTER PLAN

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SITE VALUEPARTNERSHIP OPPORTUNITY

CITY OF RALEIGHDEVELOPMENT

PHASEII

PHASE I

PHASE II

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SITE VALUE - RETURN ON INVESTMENTPARTNERSHIP OPPORTUNITY

PARTNERSHIPDEVELOPMENT

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BUILDING VALUE - RETURN ON INVESTMENTEXCESS OFFICE SPACE INCOME

Year 2023 Need

Year 2023 Excess Space

Year 2033 Need

Year 2033 Excess Space

PHASE I - FUNDING SOURCES

SOLD301 Hillsborough St $5,800,000Residence Inn Marriott Site $1,100,000Charter Square $12,800,000

ESTIMATESOne Exchange Plaza ~$13,900,000310 W Martin St ~$4,600,000

$38,200,000

ASSET SALES$38M

SOLD PROPERTY + FUTURE SALES

DEBT CAPACITY$127M

NO IMPACT ONTAX RATE


$165MASSET SALES

$38M SOLD PROPERTY +

FUTURE SALES

+ =

DEBT CAPACITY$127M

NO IMPACT ONTAX RATE


$165MASSET SALES

$38M SOLD PROPERTY +

FUTURE SALES

+ =

LEASE SAVINGS$35-50M

NEXT 15 YEARS

Projected to fund maintenance costs

COST


$200-300MINCREASES OVER TIME

30 YEAR PERIOD

COST

PHASE I NO-BUILD(STATUS QUO)

$200-300MINCREASES OVER TIME

30 YEAR PERIOD

~$140-190MONE TIME COST

50 YEAR PROJECT

WHAT ARE OUR FIRST STEPS?

DIRECTION FOR PHASE I

AT CAPACITY

~$190M20 STORIES

~$165M17 STORIES +/-

20 17

ABOVE CAPACITY

COMMITTEE ACTIONS

1. Direct Staff of Phase I Implementation Strategy

2. Amend and Approve Master Plan

3. Direct Staff to develop a Public and Employee Engagement Plan

4. Authorize Staff to move forward with Design Services for Phase I

DISCUSSION

Consolidates Downtown staffinto Phase I Building with room for 9-14 years of growth.

Allows RMB to be renovated or redeveloped within a 10 year time frame.


PROS

Consolidates Downtown staffinto Phase I Building with room for 1-4 years of growth.

RMB can be immediately renovated or redeveloped before Phase I meets capacity.

Cost less than Option 1 (any renovations to RMB not included).

PROS

20

17

Highest upfront cost.

Doesn’t use remainder of RMB life (10 years) for core City functions.

CONS

Growth capacity is limited.

RMB or leasing space would be needed soon after Phase I (1-4 years).

Decision and funding for Phase II must follow closely behind Phase I.

CONS

~$190M

ABOVE CAPACITY

OPTION 1

~$165M

AT CAPACITY

OPTION 2

CIVIC CAMPUS MASTER PLAN...Oct 06, 2020 · (RMB) 1983 • 110 McDowell-Vacant (Old Police HQ) 1963...

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Transcript of CIVIC CAMPUS MASTER PLAN...Oct 06, 2020 · (RMB) 1983 • 110 McDowell-Vacant (Old Police HQ) 1963...