High Point Park Our Neighborhood

Team Member Program

Dawn Holmes HeinzEmeka Onwugbenu TepperAjinkya Ratnaparkhi HeinzPallavi Kumar HeinzMeera George Palackan

Heinz

Imagine!

Agenda•Product Concept

▫The Neighborhood

•Market & Competitor Analysis

•Triple Bottom Line Approach▫Financial▫Social▫Green

•Roadmap to Success

Our Neighborhood 840 feet in the AirDesign• US Steel• Topography

Business• Buys Local• Affordable

Green• Water• Wind• Electricity

Community• School• Hiring • Exhibits

Welcome to the Neighborhood

Functions in winter and summer

1 acreObservation Deck

Green SpacesRestaurant / BarConference Area

Our Neighborhood Offers Multiple Amenities

Restaurants / Bar

Breathtaking Views

Office / Conference Room Accessibility

Green Space

Unique Product in an Untapped Market

4.78MM

Restaurant

4.89MM

Total Market Volume= 6.26MM people

Ticket SaleTicket

Total Market Area

Limited Competition Provides Unique Business Opportunity

•Mount WashingtonObservation Deck

•The Grand Concourse•Capital Grille•Ruths Steak House•Nakama Japanese Steak House

Restaurant

•David L. Lawrence convention centre•The Pittsburgh expomart•Carnegie Museum of Natural Art and history•The Grand Hall

Conference Hall

Strategic Green Elements

Wind• Use passive

ventilation and shading

• Potential reinvestment in micro turbines

Water• Greywater

Recycling System

• Rain water Harvesting

LEED Certified• Gold standard

possible• Buy green

energy for electric needs

Relatively Low Implementation CostSpace Amenities Hard Cost Soft Cost Contingenc

yTotal Cost

Interior

Restaurant / Bar $3,600,000 $4,140,000 $828,000 $4,968,000

Conference Rooms $8,800,000 $10,120,000 $2,024,000 $12,144,000

Exterior

Observation Deck $6,000,000 $6,900,000 $1,380,000 $8,280,000 Central Outdoor Space $840,000 $966,000 $193,200 $1,159,200

Green Space $1,400,000 $1,610,000 $322,000 $1,932,000

Wood Deck $3,300,000 $3,795,000 $759,000 $4,554,000

TOTAL $23,940,000 $3,591,000 $5,506,200 $33,037,200

Key Assumptions:1. Soft Cost is 7%2. 20% Contingency Cost3. Maintenance Cost is 30% of Gross

Revenue4. 20% of NOI saved as cash reserve5. 30% tax rate

Multiple Revenue StreamsSources Avenue Annualized

TicketsPittsburghers $1.6 M

Tourist $7.8 M

Sub-Total $9.45 M

Restaurant and Bar

Leasable Space $2.1 MProfit Sharing @ 10% $0.7 M

Sub-Total $2.87 M

Conference Rooms

Rental Income $2.0 M

Sub-Total $2.0 M

Total $14.387M

Key Assumptions:1. $10 Ticket Price2. 70% Utilization of Conference3. $857 / Sq-ft for restaurant revenue4. 10% profit sharing5. 7% of Pittsburgh population6. 20% of Tourist population

Summary ValueCost $33.037

MAnnual Revenue

$14.387 M

Payback Period 9.5 Years

IRR 36%

Healthy P&L StatementYear 2014 2015 2016 2017 2018 2019 2020 2021

Total Revenue $15,107,395

$15,862,765

$16,655,903

$17,488,699

$18,363,134

$ 19,281,290

$20,245,355

$21,257,622

Operating Cost $4,532,219 $4,758,830 $4,996,771 $5,246,610 $5,508,940

$ 5,784,387 $6,073,606 $6,377,287

Operating Income

$10,575,177

$11,103,936

$11,659,132

$12,242,089

$12,854,193

$ 13,496,903

$14,171,748

$14,880,336

EBITDA $10,575,177

$11,103,936

$11,659,132

$12,242,089

$12,854,193

$ 13,496,903

$14,171,748

$14,880,336

Depreciation $634,511 $666,236 $699,548 $734,525 $771,252 $ 809,814 $850,305 $892,820

Amortization $4,488,697 $4,488,697 $4,488,697 $4,488,697 $4,488,697

$ 4,488,697 $4,488,697 $4,488,697

EBIT $6,720,990 $7,281,475 $7,869,983 $8,487,917 $9,136,748

$ 9,818,020

$10,533,356

$11,284,459

Taxes $2,016,297 $2,184,442 $2,360,995 $2,546,375 $2,741,024

$ 2,945,406 $3,160,007 $3,385,338

Net Profit $4,704,693 $5,097,032 $5,508,988 $5,941,542 $6,395,724

$ 6,872,614 $7,373,349 $7,899,121

Cash Reserve $940,939 $969,167 $998,242 $1,028,189 $1,059,035 $ 1,090,806 $1,123,530 $1,157,236

Profit $3,763,755 $4,127,866 $4,510,747 $4,913,353 $5,336,689

$ 5,781,808 $6,249,819 $6,741,885

Potential Sources of FundingURA – Urban Redevelopment Authority

Angel Investors and Private Equity Funds

Funding & Exemptions for Green Ventures

Guaranteed Contracts

The economic cost structure is not significantly increased by ‘going green’

Reinvest Savings in Green Energy and Social Projects

Social Benefits Reflective of Local ValuesRebrand

PITTSBURGH

Local Employment

Increase tourism

Support Local

Businesses

Free green project exhibit

Use sustainable

energy

Aid Pittsburgh PROMISE

Quantifiable Social BenefitsBuying local: $24M construction$1M every year local food

Employing Welfare-to-work:90-100 restaurant30-40 conference4.5% job market tourism

In-kind donationsFree tickets to schoolsFree exhibition space

for children for green industry

• Community• Environmental

groups• Hospitality

Industry• Green Industry

• Project Managers: ConstructionArchitects

• Expert/consultant: Green Building AllianceCity engineers Dicks ConstructionMarketing consult

• Workforce:Welfare to work

agencies• Raw Material:

local providers

• Funding

•Owners: US Steel TowerRestaurant ownerVendors

•Regulations: State and FederalCity ordinances

Regulate Resource

Public Intere

stKnowledg

e

Engaged and Dedicated Stakeholders

Roadmap To Success

18

Due Diligence Construction LaunchFinalizing Concepts

Capital Building / Finance

Team Formation (Lawyers)

Permits & Control

Final Architectural

details / Blueprints

Raw Material Orders

Work Distribution

Implementing

Blueprints

LEED Certification

Interiors

Inspection

Marketing

Unveiling the Roof

2010 2011 2013 2014

Imagine!

Our Neighborhood Revitalized!Economic• Less than 10

Years Payback

Green• Gold LEED

Certified

Social• Job Creation &

Rebrands Pittsburgh

Q&A SessionTeam MembersDawn Holmes – HeinzEmeka Onwugbenu – TepperAjinkya Ratnaparkhi – Heinz  Pallavi Kumar – HeinzMeera George Palackan – Heinz

Appendix

Supplementary slide SWOT ANALYSIS

STRENGTHS 360 degree view

Large capacityComplemetarityGreen elements

WEAKNESSWeather at the altitude of 840 feetExpected high cost of construction

OPPORTUNITIESTourism

Adds to the uniqueness of Pittsburgh

Benefit to State Economy THREATSCompetition mainly to conference

rooms

SWOT

Social EntrepreneurshipA business model to measure the triple

bottom linePartner network

Key activities

Key resources

Good or service

Customer relations

Distribution channels

Customer or market

Economic Cost structure Economic Revenue streams

Environmental Cost structure

Environmental Revenue streams

Social Cost structure Social Revenue

• Self sufficient from mostly un-related income• Success measured for each bottom line

Assumptions Restaurant / Bar 12,000 Soft Cost is 7% of Construction Cost 15% Conference Rooms 32,000 Construction Contingency Cost 20% Sub-Total 44,000 Pittsburgh Population 23,64,000 Observation Deck 20,000 Annual Tourist 39,00,000 Central Outdoor Space 2,400 Ticket Price $10 Wood Deck 11,000 Annual Restaurant Revenue / Sq-ft $857 Sub-Total 33,400 Utilization of Conference Rooms 70%Building Maintanance Cost 30%Cash Reserve Percentage 20%Tax Rate 30%

Sq-Ft Rate ($/Sq-Ft) Hard Cost Soft Cost Sub-Total Contingency Total CostRestaurant / Bar 12,000 300$ 36,00,000$ -$ 36,00,000$ -$ 36,00,000$ Conference Rooms 32,000 300$ 96,00,000$ -$ 96,00,000$ -$ 96,00,000$ Sub-Total 44,000 1,32,00,000$ -$ 1,32,00,000$ -$ 1,32,00,000$ Observation Deck 20,000 300$ 60,00,000$ -$ 60,00,000$ -$ 60,00,000$ Central Outdoor Space 2,400 350$ 8,40,000$ -$ 8,40,000$ -$ 8,40,000$ Green Space 4,000 350$ 14,00,000$ -$ 14,00,000$ -$ 14,00,000$ Wood Deck 11,000 300$ 33,00,000$ -$ 33,00,000$ -$ 33,00,000$ Sub-Total 37,400 1,15,40,000$ -$ 1,15,40,000$ -$ 1,15,40,000$

TOTAL 81,400 2,47,40,000$ -$ 2,47,40,000$ -$ 2,47,40,000$

Interior Space

Exterior

Interior Space

Exterior

 Total population 23,64,622Above $50000 37.3Tourists 3900000Population to whom this facility is affordable 882004.006

Total 62,64,622Expected 4782004.006Not expected 14,82,618

Ticket sale

Total population 23,64,62242% willing to pay above $10Poplulation expected 993141.24Tourists 3900000

expected ticket sale 4893141.24total ( tourists +total population) 6264622Not expected 1371480.76