Flats East Bank Presentation- Ohio Meeting of CDFA

  • 437 views
Uploaded on

City of Cleveland Department of Economic Development Director Tracey A. Nichols delivered this presentation with Representatives from Baird, Bricker & Eckler and Project Management Consultants for the …

City of Cleveland Department of Economic Development Director Tracey A. Nichols delivered this presentation with Representatives from Baird, Bricker & Eckler and Project Management Consultants for the Ohio Meeting of the Council of Development Finance Agencies. The presentation highlights the Flats East Bank and the innovative financing used in the project.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
437
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Tracey NicholsCity of ClevelandDevelopment Director(216) 664-3611tnichols2@city.cleveland.oh.us---------------------------------------------Tim LongRobert W. Baird & Co.Managing Director(888) 792-0039tlong@rwbaird.com----------------------------------------------Steve StrnishaProject Mgmt Consultants(216) 566-5518steve.strnisha@aboutpmc.com----------------------------------------------David Rogers, Esq.Bricker & Eckler(614) 227-2367drogers@bricker.com
  • 2. $272,000,000Flats East Bank DevelopmentPhase I - Office and Hotel Project• Office Tower - 500,000 Square Ft. Class ‘A’ Office Building- Anchors - Ernst & Young and Tucker, Ellis & West• Hotel - 150 Room Aloft Hotel• Health & Fitness Center• Several New Restaurants & Bars• Public Parking – 545 Space Garage, Over 400 Surface Spaces & Light Rail Access• Public Space - 1,200 foot Boardwalk- 14 Acre Public Park- Beach• Future Phases – 17 acres of Land adjacent to Phase I Site
  • 3. MasterPlan Key123456789101118-Story OfficeToweranchored by Ernst& Young andTucker, Ellis, &West150 Room Hotel16,500 sf HealthClub14 acre Park1,200 of RiverfrontBoardwalkEntry Plaza on545 space ParkingGarageSurface ParkingBeachWaterfrontRestaurantsOffice overRestaurantWaterfrontOutdoorBeach Club
  • 4. Expected to be Cleveland’s First LEED Certified Building
  • 5. THE PLAIN DEALER“The two-year project is estimated tocreate more than 2,000 jobs and… as theresidential market recovers, pave the wayfor a new downtown neighborhood.”Future Phases
  • 6. $272,000,000Flats East Bank Development ProjectDETAILED SOURCES & USESSOURCE AMOUNT NOTES PERCENTDeveloper Equity $44,800,000 Scott & Iris Wolstein/ Other 16.50%Clev Port 1stMortgage BondsOffice: Wells FargoCIFOhio Carpenter’sHotel & Retail: CIF$53,000,000$20,000,000$18,900,000$20,000,000SeniorSubordinateSubordinateSenior41.1%City Funding $46,700,000 HUD 108/ VPI/ CPP/ GO &Port Approp Bonds/ Grant17.1%Tax Increment FinancingState OEBF BondsCleveland Port BondsSummit Port Bonds$15,000,000$8,800,000$4,700,000ParityParityParity10.4%Other State Funding $12,800,000 Clean Ohio/ 629/ RapidOutreach/ Urban Red Loan5%NEORSD $9,200,000 3.3%County Funding $7,300,000 EPA/HUD/BEDI/Brownfield 2.7%CDP $5,000,000 1.8%Federal Grants $4,900,000 DOT & Commerce 1.8%Other/Interest Earnings $900,000 .3%TOTAL SOURCES $272,000,00 100%
  • 7. Flats East Bank Development ProjectROLE OF GOVERNMENT Gap Financing Lower Cost Financing (and or grants) Match Program Requirements to Financing Needs Funding often tied to Job Creation Government Funding can Leverage NMTC Eminent Domain Process can be time consuming – So start early
  • 8. Flats East Bank Development ProjectROLE OF BAIRD AS INVESTMENT BANKER Coordinate Working Group and help Solve Problems Structure Bonds to meet financing needs of Project: First Mortgage Bonds:• Bonds used to avoid sales tax on construction costs• Structured as “conventional” mortgage loan TIF Bonds:• Tied together Cleveland, Summit & State bond funds• Utilized Recovery Zone Facility Bonds Port City Appropriation Bonds• City avoided GO Bonds Market bonds Prepare timetables & debt schedules Assist in closing the financing
  • 9. Flats East Bank Development ProjectSUMMARYFUNDINGTotal Cost of Phase I $272,000,000Sources of Funds 36Direct Public Sources $86,800,000 (32%)Private Sources $185,200,000 (68%)Office Building – Loan to Cost 35%WORKING GROUPSize of Working Group 76 people on distribution list(37 attorneys)Number of Legal Entities 18Number of Governmental Entities 8TIMELINEInitial Meeting(Developer/CDP/City/Port/Baird)December 22, 2003Closing of all Funding Sources December 21, 2010
  • 10. Flats East Bank Development ProjectSUMMARYFUNDINGTotal Cost of Phase I $272,000,000Sources of Funds 36Direct Public Sources $86,800,000 (32%)Private Sources $185,200,000 (68%)Office Building – Loan to Cost 35%WORKING GROUPSize of Working Group 76 people on distribution list(37 attorneys)Number of Legal Entities 18Number of Governmental Entities 8TIMELINEInitial Meeting(Developer/CDP/City/Port/Baird)December 22, 2003Closing of all Funding Sources December 21, 2010