Civic Center Public-Private Partnership

Transcription

1 Civic Center Public-Private Partnership October 27,

2 Port Interim Headquarters As a result of a seismic study, the Administrative Headquarters of the Port was determined to be seismically deficient On December 27, 2012, the Port purchased the office building located at 4801 Airport Plaza Drive In March of 2014, the Port moved into its Interim Headquarters 2

3 Public-Private Partnership On February 12, 2013, the City Council directed staff to prepare and release an RFQ for a Public-Private Partnership to design, build, finance, operate and maintain an new Civic Center On April 1, 2013, the Board of Harbor Commissioners agreed to participate in the RFQ process On October 22, 2013, the City Council selected the Short List of RFQ Respondents and directed staff to prepare and release an RFP to this Short List On January 27, 2014, the Board of Harbor Commissioners agreed to participate in the RFP, with no obligation to proceed to a contract The RFP was released on February 28, 2014 to the Short List of RFQ Respondents Proposals from the Short List were received on June 2, 2014 Proposals were received from two Project Teams: Long Beach CiviCore Alliance Plenary Edgemoor Civic Partners 3

4 Civic Center: Guiding Principles Redevelop the Civic Center into a vibrant mix of public and private space including a grand Civic Plaza Improve connections between the new Civic Center and Downtown Revitalize Lincoln Park into a destination park with amenities appropriate for visitors, residents and Downtown workers Reduce maintenance costs, increase energy efficiency, consolidate offsite leases, and remain cost neutral Consider private development elements and/or disposition of surplus property for private development 4

5 Civic Center: Project Goals Ensure the City s cost to operate and maintain a new City Hall and Main Library are no greater than current costs, estimated in 2013 at $12.6 million, but including CPI increases Shift risks associated with design, development, entitlement, financing, construction, maintenance and operation to the Project Team Incorporate a 40-year life-cycle Operations and Maintenance contract for the Civic Center as part of the current City costs of $12.6 million Require ownership of the facilities to revert at no cost to the City at the end of the contract at a good or better condition 5

6 RFP Evaluation Criteria Administrative Responsiveness: Pass/Fail Technical Responsiveness 118 Facilities Management 18 Private Development 43 Financial Proposal Private 38 Financial Proposal Public 50 Total Potential Score 267 6

7 Project Teams Long Beach CiviCore Alliance Project Team: Macquarie Capital Group Lend Lease Investments Mar Ventures / Continental Development PCL Construction Fentress Architects Civitas Landscape Architects ABM Facility Services Bank of America / Merrill Lynch 7

8 Project Teams Plenary Edgmoor Civic Partners Project Team: Plenary Group Edgemoor Infrastructure & Real Estate Clark Construction Group Skidmore, Owings & Merrill Architects Kelly Sutherlin McLeod Architects Gustafson, Guthrie, Nichol, Landscape Architects Stifel Financial Corporation Johnson Controls 8

9 Proposals for a New Port Headquarters Site Plan from LBCCA s RFP submittal 9

10 Proposals for a New Port Headquarters Site Plan from PECP s RFP submittal 10

11 Proposals for a New Port Headquarters LBCCA s Artist s Rendering 11

12 Proposals for a New Port Headquarters PECP s Artist s Rendering 12

13 Proposals for a New Port Headquarters LBCCA s Model of the Civic Center 13

14 Proposals for a New Port Headquarters PECP s Model of the Civic Center 14

15 Project Cost Benchmarks Long Beach Civicore Alliance Plenary Edgemoor Civic Partners Gross Square Feet 232, ,000 Total Construction Cost $ 144,217,000 $ 179,016,000 Construction Cost /SF $ $ Development Cost $ 21,778,000 $ 18,250,000 Financing Cost $ 26,321,000 $ 34,296,000 Total Project Cost $ 192,316,000 $ 231,562,000 Project Cost/SF $ $

16 Parking Costs Long Beach Civicore Alliance Plenary Edgemoor Civic Partners No. of Spaces Total Cost $ 24,684,000 $ 29,361,000 Cost per Space $ 43, $ 51,

17 Financing Costs Long Beach Civicore Alliance Plenary Edgemoor Civic Partners Structure 115 Non-Proft 63/20 Non-Profit Senior Debt $328.4 M $417 M Anticipated Terms 42 years: 4.55% blended 43 years: Port: 3.81%, City: 4.82%, Wtd Average: 4.36% Coverage Ratio 1.41x 1.18x Sub-Debt $52.3 M $45 M Sub-Debt Rate of Return 13% 15.75% 17

18 Operations & Maintenance Costs Long Beach Civicore Alliance Plenary Edgemoor Civic Partners Structure 40-year Contract 40-year Contract First Year Payment $ 3,149,000 $ 4,736,000 Indexation 2.50% 2.50% Total Payments over 40 Years $ 212,199,000 $ 313,432,000 18

19 Payment Schedule Long Beach Civicore Alliance Plenary Edgemoor Civic Partners Lease M&O Total Lease M&O Total Partial Year $ 4,613,000 $ 1,257,000 $ 5,870,000 $ 1,084,000 $ 383,000 $ 1,467,000 Year 1-10 $ 109,990,000 $ 35,062,000 $ 145,052,000 $ 137,060,000 $ 53,059,216 $ 190,119,216 Year $ 109,990,000 $ 44,882,000 $ 154,872,000 $ 137,060,000 $ 67,920,281 $ 204,980,281 Year $ 109,990,000 $ 57,453,000 $ 167,443,000 $ 137,060,000 $ 86,943,702 $ 224,003,702 Year $ 109,990,000 $ 73,545,000 $ 183,535,000 $ 137,060,000 $ 106,125,987 $ 243,185,987 Total $ 444,573,000 $ 212,199,000 $ 656,772,000 $ 549,324,000 $ 314,432,186 $ 863,756,186 Present 7% $ 151,248,000 $ 58,341,000 $ 209,589,000 $ 183,866,000 $ 86,411,000 $ 270,277,000 Present 6% $ 170,107,000 $ 67,340,000 $ 237,447,000 $ 207,367,000 $ 99,871,000 $ 307,238,000 Present 5% $ 193,346,000 $ 78,706,000 $ 272,052,000 $ 236,324,000 $ 116,836,000 $ 353,160,000 Present 4.5% $ 207,012,000 $ 85,510,000 $ 292,522,000 $ 253,354,000 $ 126,978,000 $ 380,332,000 19

20 Project Delivery Outreach & Entitlement Planning Commission approval City Council approval Commercial Close Financial Close Start of Construction Construction Duration Occupancy 9 Months 11 Months 13 Months 15 Months 17 Months 19 Months 43 Months 48 Months 20

21 Civic Center Public-Private Partnership October 27,