High Point Park Case Challenge

The Vertical Crawl where Pittsburgh’s

contemporary meets culture..

Steven Meersman Lavanya Shaji

Daniel BrackleyJess Martin

Abhay Doshi

Current Situation

One acre of unused outdoor space looms 840ft above Pittsburgh making the top of the US Steel

Tower the tallest point in the city. In a city known for its spectacular evening views and

green initiatives, this space poses an excellent place for the development of an environmentally friendly, self sustaining, and publicly accessible

observation point.

Proposal

• Development of a contemporary designed facility that includes indoor and outdoor space that showcases Pittsburgh.– Indoor structure allows flexibility for weather

conditions and year round accessibility– External elevators minimize hindrance to

building tenants and local residents

Vision

• Development of a contemporary designed facility that includes indoor and outdoor space that showcases Pittsburgh.– Indoor structure allows flexibility for weather

conditions and year round accessibility– External elevators minimize hindrance to

building tenants and local residents

Mission

• Our mission is to host a centralized point for Pittsburgh tourists to start their visit and

locals with an everyday indoor and outdoor space. Our center provides an interactive

experience through outdoor gardens, local art and food while also providing a wealth of

information about Pittsburgh.

External Elevators

Educational & Events

The Award Winning View

Pittsburgh Cuisine

Adaptable

Pittsburgh Art & Culture

Features Activities

The Vertical Crawl

Stained Glass from Pittsburgh Glass center

Elevator Gallery

Interactive WindowsCentral

Space/GalleryCafé/Restaurant

Hydroponics

Peregrine Falcon

Market Analysis• Strategy : Partner and

Prosper

• Key Partnerships:– Restaurants: Pamela’s

Primati Brothers– Tour guides: Molly’s

Trolleys, Ducky tours– Galleries and Museums– Décor: Pittsburgh Glass

Center

The Competition• Places with a view in the

city:– Mt. Washington : Nighttime view from Mount

Washington in Pittsburgh was voted 2nd most beautiful place in America by USA WEEKEND's Annual Travel Report

• Airport

– Free activities around the city such as Schenley Park, Museums etc.

Green Technologies• Pollution Technology

• Rainwater Harvesting– Grey Water

• Bio Degradable Materials

• Indoor Fresh Air

• Electricity– Wind Turbines– Translucent PV

Panels– Thermo Energy

Services – Revenue Source1. Main Services

Visitors Center Observation

Deck Museum Garden

2. Secondary Services Event Center Restaurant/Café Lounge

Financial Analysis

TicketsSegmentation

strategy to extract surplus

observation deck, total package,

club, commission

Advertising & Rent

Sponsored spaces by

local companies,

museums etc

Restaurants Events

Utility SavingsDepend on level of

technology @ implementation

10% of utility bills

Merchandise

32%

59%

8%

1% $7M Revenue after

5 years

Funding • The Heinz Endowments

• The Richard King Mellon Foundation

• The Pittsburgh Foundation

• Alcoa Foundation

• Pennsylvania Department of Conservation and Natural Resources (DCNR)

“In addition to the $2.5 billion already invested in downtown riverfront development over the past five years, some $400 million in new commercial development is scheduled. Add to that an already major influx of more than 3,200 new Downtown residents. They will all need outdoor space where they can spend their time and money.” – Economic Development, www.pointstatepark.com

Benefits to the Pittsburgh Community– Attracts tourists to

Pittsburgh• Central point for all

attractions• Interactive experience• Showcases the art

– Educational• Case competitions• Robotic exhibitions• Monumental History

highlights of Pittsburgh– Role model

• Green innovation• Utilizing empty spaces• Propagates local

businesses

Recovery of Urban Peregrine Falcons

• The peregrine falcons in Pittsburgh used to be the only peregrines known to breed in the western part of Pennsylvania.

• Groups :– The National Aviary – Western Pennsylvania Conservancy – The Pennsylvania Game Commission

• Live streaming from web cam of the peregrine falcon nest to wide screens in the observatory

Proposed BenefitsOur Plan

– External Green Elevators• Outside of building• Unique• Green Role Model

– Green Park Area• Location and view• All-weather• Attractive outdoors area

– Gallery• Advertising/Information• Art community• Flexible space for

private parties, events, etc.

Potential Risks& MitigationRisks Mitigation

General decrease in tourist sector

• Diversification• Growing Economy• Adapt to local residents

Residents disrupted• Financial incentives• Access Perks• Business tabs/discounts

Permit Issues

• Studies and Research in o Legal o Safetyo Environmental o Public o Political support

“Places become what people dream”- Teresa Heinz

Appendix

Financial Sustainability

Funding – Green– Educational– Pittsburgh Landmark– Historical– Innovative

Revenue streams– Restaurant/Bar– Entrance Fees– Event Access– Advertising– Leasing– Merchandise Business Partners– VisitPittsburgh.pa– CMU and PITT cooperation– Gallery Crawl/Cultural Trust

Incentives for building owners– Tab for Restaurant, Bar– Business Meetings/Events– Advertising Space

Appendix 1: Financial Forecast

growth 20% 15% 10% 10% 10%%revenue 0 1 2 3 4 5 6

revenue 4,994,376.00$ 5,538,776.00$ 5,993,136.00$ 6,386,472.00$ 6,810,804.60$ 7,268,816.61$ #tickets 80000 96000 110400 121440 133584 146942.4-tickets breakup 32.68% 1,632,000.00$ 1,958,400.00$ 2,252,160.00$ 2,477,376.00$ 2,725,113.60$ 2,997,624.96$ ----elevator 40% 9.61% 480,000.00$ 576,000.00$ 662,400.00$ 728,640.00$ 801,504.00$ 881,654.40$ ----total package 50% 20.02% 1,000,000.00$ 1,200,000.00$ 1,380,000.00$ 1,518,000.00$ 1,669,800.00$ 1,836,780.00$ ----club 10% 2.40% 120,000.00$ 144,000.00$ 165,600.00$ 182,160.00$ 200,376.00$ 220,413.60$ ----commission 2% 0.64% 32,000.00$ 38,400.00$ 44,160.00$ 48,576.00$ 53,433.60$ 58,776.96$ -merchandise 0.20% 10,000.00$ 12,000.00$ 13,800.00$ 15,180.00$ 16,698.00$ 18,367.80$ -advertising 0.60% 30,000.00$ 33,000.00$ 34,650.00$ 36,382.50$ 38,201.63$ 40,111.71$ -utility savings 392,376.00$ 392,376.00$ 392,376.00$ 392,376.00$ 392,376.00$ 392,376.00$

5% 5% 5% 5% 5%-rent 58.67% 2,930,000.00$ 3,143,000.00$ 3,300,150.00$ 3,465,157.50$ 3,638,415.38$ 3,820,336.14$ ----restaurant 1,600,000.00$ 1,680,000.00$ 1,764,000.00$ 1,852,200.00$ 1,944,810.00$ 2,042,050.50$

10.0% 5.0% 5.0% 5.0% 5.0%----events 665,000.00$ 731,500.00$ 768,075.00$ 806,478.75$ 846,802.69$ 889,142.82$ ----club 665,000.00$ 731,500.00$ 768,075.00$ 806,478.75$ 846,802.69$ 889,142.82$

Appendix 1: Space Utilizationspace utilization floor floor 1 floor 2

main hall 1,2 4000 3000gallery 1 1 9000 gallery 2 1 4000 gallery 3 1 4000

bar 1700 1200souvenir shop 1700

restaurant 2 8000observatory deck 2 6000

walkways, etc 151.8201973 213.87

total space [sq ft] 44000

equilateral triangle side [ft] 1.7320508080.25 318.7689561

subtract safety distance from edge 30000% 38971.14317inside space 70% 27279.80022usable space 1st floor 90% 24551.8202usable space 2nd floor 75% 18413.86515 42965.68535

market size for ticketslocals 2.4Mstudents 0.15Mtourists 3.9M 6.45M

Financial Analysis

Tickets Segmentation strategy to extract surplus

observation deck, total package, club,

commission

Advertising & RentSponsored spaces

by local companies, musea, etc

Restaurants Events

Utility SavingsDepend on level of

technology @ implementation

10% of utility bills

Merchandise

32%

59%

8%

1%

$7M Revenue after 5 years

Revenue Mix growth 20% 15% 10% 10% %revenue 0 1 2 3 4 5revenue $ 4,994,376.00 $ 5,506,776.00 $ 5,926,576.00 $ 6,282,635.20 $ 6,666,808.70 #tickets 80000 96000 110400 121440 133584-tickets breakup 32.68% $ 1,632,000.00 $ 1,958,400.00 $ 2,252,160.00 $ 2,477,376.00 $ 2,725,113.60 ----elevator 40% 9.61% $ 480,000.00 $ 576,000.00 $ 662,400.00 $ 728,640.00 $ 801,504.00 ----total package 50% 20.02% $ 1,000,000.00 $ 1,200,000.00 $ 1,380,000.00 $ 1,518,000.00 $ 1,669,800.00 ----club 10% 2.40% $ 120,000.00 $ 144,000.00 $ 165,600.00 $ 182,160.00 $ 200,376.00 ----commission 2% 0.64% $ 32,000.00 $ 38,400.00 $ 44,160.00 $ 48,576.00 $ 53,433.60 -merchandise 0.20% $ 10,000.00 $ 12,000.00 $ 13,800.00 $ 15,180.00 $ 16,698.00 -advertising 0.60% $ 30,000.00 $ 33,000.00 $ 34,650.00 $ 36,382.50 $ 38,201.63 -utility savings 7.86% $ 392,376.00 $ 392,376.00 $ 392,376.00 $ 392,376.00 $ 392,376.00 3% 3% 3% 3%-rent 58.67% $ 2,930,000.00 $ 3,111,000.00 $ 3,233,590.00 $ 3,361,320.70 $ 3,494,419.47 ----restaurant $ 1,600,000.00 $ 1,648,000.00 $ 1,697,440.00 $ 1,748,363.20 $ 1,800,814.10 10.0% 5.0% 5.0% 5.0%----events $ 665,000.00 $ 731,500.00 $ 768,075.00 $ 806,478.75 $ 846,802.69 ----club $ 665,000.00 $ 731,500.00 $ 768,075.00 $ 806,478.75 $ 846,802.69

Income statement 0 1 2 3 4 5 6 7 8

-Revenues $ - $ - $ - $ 4.99 $ 5.51 $ 5.93 $ 6.28 $ 6.67 $ 7.08 -Costs $ - $ - $ - $(2.38) $(2.45) $(2.53) $(2.60) $(2.68) $(2.76)--rent $ - $ - $ - $(1.30) $(1.34) $(1.38) $(1.42) $(1.46) $(1.51)--maintenance $ - $ - $ - $(0.13) $(0.13) $(0.14) $(0.14) $(0.15) $(0.15)--labour $ - $ - $ - $(0.95) $(0.98) $(1.01) $(1.04) $(1.07) $(1.10)--investment $(20.00) $(20.00) $(6.00) $ - $ - $ - $ - $ - $ - -Income w/ rent $(20.00) $(20.00) $(6.00) $ 2.61 $ 3.05 $ 3.40 $ 3.68 $ 3.99 $ 4.32 -Income w/o rent $(20.00) $(20.00) $(6.00) $ 3.91 $ 4.39 $ 4.78 $ 5.10 $ 5.45 $ 5.83 -NPV w/0 inv $ 15.73 -NPV w/ inv $(23.49)@ inflation = 3%, discount = 10%

Appendix III: space utilizationspace utilization floor floor 1 floor 2

main hall 1,2 4000 3000gallery 1 1 9000 gallery 2 1 4000 gallery 3 1 4000

bar 1700 1200souvenir shop 1700

restaurant 2 8000observatory deck 2 6000

walkways, etc 151.8202 213.87

total space [sq ft];

44000equilateral triangle side [ft]

1.7320508080.25 318.7689561 subtract safety distance from edge 30000% 38971.14317inside space 70% 27279.80022usable space 1st floor 90% 24551.8202usable space 2nd floor 75% 18413.86515 42965.68535

rent $/sq ft sq ft annual rentin building 30 42965.68535 $ 1,288,970.56 top building 200 8000 $ 1,600,000.00 avg p/meal 40 # meals $ 40,000.00 days/year 280 meals/day 142.8571429

event 4000sq ft 8sq ft / person 500# people 7$/drink 10cover charge 4drinks/personoccupancy 0.7 $ 3,500.00 $ 9,800.00 total $ 13,300.00 # nights/week 2 weeks 50 $ 1,330,000.00 %rent 50% total rent $ 665,000.00

Foundations/Organizations who sponsor off-site exhibitions

• National Arts Programhttp://www.nationalartsprogram.org/-sponsors a ton of exhibitions in airports throughout the country

Pennsylvania Council on the Arts Partners in the Arts Granthttp://pacouncilonthearts.org/pca.cfm?id=6&level=Third-Goal is to expand access and visibility of the arts in PA

GPAC Artist Opportunity Granthttp://www.pittsburghartscouncil.org/artistoppgrant.htm-Artist has to apply directly, but designed to increase new opportunities to display (like your project)

Sprout Fundhttp://www.sproutfund.org/publicart/-Focus on the Pittsburgh region, new opportunities for the public to experience art. They do small projects and grants, but also a good option for individuals and small organizations to get funding for a public project

Visit Pittsburghhttp://www.visitpittsburgh.com/essentials/visual-arts/-They were really involved with the art program at the airport, might be a good overall sponsor for your project.