Pillsbury Winthrop Shaw Pittman LLP SOCIAL INFRASTRUCTURE SUCCESSES Panelists: Misty Baskett-...

Pillsbury Winthrop Shaw Pittman LLP

SOCIAL INFRASTRUCTURE SUCCESSES

Panelists:Misty Baskett- National Development Council

Rich Hill- Faegre Baker Daniels LLP

Bo Kemp- Special Advisor to the Mayor of Gary, Indiana

Jim Napolitano- Special Projects Manager for King County

Projects:

1. 440,000 sq. feet Medical Office Building King County, Washington

2. Gary/Chicago International Airport P3 Expansion

Moderator:Les Nicholson- Pillsbury Winthrop Shaw

Pittman

Interactive Panel Discussion of These Projects

1. Primary issues

2. Process/plan utilized

3. Immediate, tangible results

4. Long terms results

5. Lessons learned

2 | Social Infrastructure: Case Studies of Success

Recent Projects Using 63-20 and Related Approaches

King County, Washington 440,000 sq. ft. Medical Office

Building LEED Gold Erased a $30,000,000 project

overrun on previous GC-CM process

The BOMA 2011 Outstanding Building of the Year (TOBY) award for excellence in the medical office category

Financing: 63-20 Bonds Bond Issue: $189,720,000


Ninth and Jefferson Building

A Profile in Public Benefit


By the time the original GCCM group finished excavating the site, they were facing a $15 MILLION budget overrun

The University’s renovation of theInpatient Expansion Building (IEB) had a similar $15 MILLION budget overrun

King County elected to transfer $15 MILLION from the Ninth and Jefferson Building to fill the gap on the IEB.

This left King County with a $30 MILLION budget gap; effectively killing the NJB project.


King County Partnered with National Development Council to assist with financing and development.

A development Team was assembled; NDC as Owner, Wright Runstad as Developer, NBBJ as Architect, and Turner as General Contractor.

This team was able to triple the usable square feet within the existing footprint and reduce development costs from $800 per sq. ft. to $450 per sq. ft.

Erasing the $30 Million deficit.



“Budget was well managed”

“Approximately $7.6 Million joint savings

achieved on shell and core.”

“Restructured project was delivered at substantial

savings compared to initial project estimate”


“The medical office building cost 50% less per square foot”

City of Gary/Gary Chicago International Airport Development Agreement

Master Developer AFCO Gary, LLC Aviation Facilities Company, Inc. Guggenheim Securities Loop Capital

Financial Terms


City of Gary/Gary Chicago International Airport Development Agreement (Cont’d)

Developer required investment of $25M in first 36 months $2.5M in first 12 months $100M over 40 year term City revenue sharing through

Sale of City or Airport property Lease of City or Airport property

Annual rental amount supplemented if net profit level not reached by rental amount

Contribution of property by the City or Authority 20% of profits derived from contributed property


Investment in Community Development

Investment in Community Development $300,000 in the first 3-6 months

Workforce Development Requirements Local participation – 30% DBE/MBE participation – 20% WBE/ABE participation – 5%


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