may 18 webinar alameda point infrastructure

8/6/2019 May 18 Webinar Alameda Point Infrastructure

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Alameda PointFinanciaLBasics Webinar

May 18 , 2011

Workshop Goalse Explain how a basic financial pro forma worksand why it is important to the Alameda Point

processe Present a workingdefinition of financialfeasibility thatwill be refined over timee Inform community about the costs ofredeveloping Alameda Point using GeneralPlan as an illustrative example

ARRAAgenda Item #3-2011


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Financial Pro Forma Basics

What Is a Financial Pro Forma?e Comparison of sources of funds (e.

revenues and financing) and uses offunds(e. , design and construction costs), over aperiod of time

e Assessment of financial risk VS. rewarde Tool for measuring financialfeasibility andsensitivity to changes in key assumptions


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Pro Forma Reflects Deal Structuree Previous negotiations assumed "masterdeveloper

- Preparation of improved land for sale and lease- No guaranteed return on expensese Future disposition strategy yet to bedetermined- Single master developer- Multiple master developers- Auction , etc.e Structure of disposition affects formatassumptions, and target feasibility measures

Why Is a Financial Pro Forma Importantto Alameda Point Planning Process?

e Realistic assessment of financial feasibility ofdevelopment improves likelihood of successfullyimplementing Alameda Point projecte Informs planning process by evaluating tradeoffs

among the type and amount of development(i.e. , revenues) and the type and amount ofinfrastructure requirements and public benefits(i.e. , costs)


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Why Is a Financial Pro Forma Importantto Alameda Point Planning Process?If If a feasibility gap exists , it determines need forpublic financing and/or changes to factorsaffecting costs and revenues

& Tool for negotiating property conveyance anddisposition- Land value with the Navy- Land value , public benefits , and public financing with

future developer(s)

What Is a Working Definition ofFinancial Feasibility?If Alameda Point will need to attract private

sector funding in order to be successfullyimplemented& Private sector will require a return oninvestmentcommensurate with the risk

presented by the projectIf Revenues must exceed costs bya sufficientamount and fast enough to achieve a returnon investment required by the private sector


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What Is a Working Definition ofFinancial Feasibility?" Other factors important to the communitymust be addressed , such as:

- Impacts to City budget;- Transportation impacts;- Project amenities that provide citywide benefits;

and- Navy clean-up and conveyance requirements

" These other priorities require furtherdefinition and will affect financial feasibility

Alameda Point Pro Forma Overview" Sources of Funds

- Land sale or lease revenues- Existing building lease and sale revenues- Private financing (Le., equity, loans)- Public financing (e. , redevelopment taxincrement, Mello Roos CFD)


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Alameda Point Pro Forma Overview.. Uses of Funds

- Planning and predevelopment expenses- Site preparation , infrastructure , and

transportation costs- Mitigation of impacts to City budget- Affordable housing program- Renovation costs of existing buildings- Community facility and benefit costs- Management and operations costs- Return on private sector investment

Other Pro Forma Considerations.. Assessments for Ongoing Costs

- Impacts to City budget (ARRA Resolution)- Maintenance costs- Transportation operations

.. Development Risk- Entitlement- Cost- Financing- Market


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Other Pro Forma ConsiderationsII Return on Investment

- Relationship to risk- Internal rate of return and profit margin , etc.

Pro Forma Example:Project with Feasibility Gap

* Revenues exceed costs (profit margin positive), but IRR does not meettarget return of 15%


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Pro Forma Example:Project with Public Financing

* Added $75 of public financing over years 5 thru 7 to meet target return of 15%

Pro Forma Example:Project with Increased Revenues

* I ncreased revenues in year 5 by $75 to meet target return of 15%


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Pro Forma Example:Project with Decreased Costs

* Decreased community benefit costs by $45 over years 3 and 4 to meet targetreturn of 15%

Questions onFinancial Pro Forma Basics


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Alameda Pointnfrastructu re Costs

Infrastructure Costs OutlineReview Existing Infrastructure ConditionsDiscuss Proposed Infrastructure SystemsReview Existing Site Constraints

Discuss Anticipated Costs of the Required Infrastructure

Discuss Optional Public Benefits and Associated Costs


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Definition of Infrastructure

Flood and Sea Level Rise ProtectionUtilities ( Storm Drain , Sanitary Sewer, Electrical , and Gas)StreetsRegional Transportation

Parks and Open Space

Existing Navy InfrastructureMajority of utilities constructed over 60 years ago and approaching the endof its service lifeConstructed and maintained by the Navy on an "as-needed" basisNot constructed to current standards and regulationsMany utilities are located under structures or not within street corridorsVarying degrees of deteriorationfrom age , weathering, subsidencesediment, etc.City of Alameda , EBMUD and AMPconduct on-going improvementsand repairs to maintain service tolesseesPG&E and EBMUD will not acceptthe maintenance costresponsibilities for the existing gasand water systems


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Existing InfrastructureTypical maintenance issues include:

- Minor Flooding- Water Main Breaks- Sanitary Sewer Repairs- Street and Sidewalk Repairs

Examples of Recent Repair CostsBurdened by the ARRA include:- Water Main Repairs($20 - $60k)

- Sewer Pipeline and ManholeRepairs ($10 - $15k)

- Street Pothole Patching($10 - $15k)

Existing infrastructure is not capableof supporting the redevelopment andreuse of Alameda Point

Land Use Assumptions2003 General Plan Amendment

Big Whites RemainBuilding 5 RemainsRelocate and ConsolidateCollaborative HousingApproximate land Use Summary- 2 000 Housing Units- 2. 3 Million SF of CommercialUses (Office , R&D, Retail , Etc.


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Backbone Infrastructure Assumptions

Maintains Similar Grid PatternExtending into the SurroundingNeighborhoods

Framework of Roadways and UtilityCorridorsProvides Organized Structure forOverall Reuse and Re- Development

Reinforces Original NAS AlamedaFrameworkPrepares Development SitesAllowing for Flexibility of a Variety ofland Uses

Backbone Infrastructure Costs Include:Site Preparation Including Demolition Where AppropriateFlood and Sea level Rise Protection

- Grading- Drainage

Sanitary SewerPotable and Recycled WaterElectrical , Gas and Telecom (Dry Utilities)On-Site StreetsOff-Site Street ImprovementsRegional Transportation ImprovementsParks and Open SpaceContingency, Construction Management, Professional Services, Fees , Etc.


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Other Costs Not Included

Land AcquisitionOn-Site / In-Tract InfrastructureVertical Building ConstructionOn-Going Maintenance and Operation Costs to Achieve Fiscal NeutralityImpact Fees (Le" State School Fees)

Site PreparationDemolish and Dispose of Non- Historic StructuresDemolish and Recycle Existing Pavement and ConcreteRemove / Abandon Existing UtilitiesSite Clearing and Preparation

Site Preparation Costs = $120 Millon


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Flood Protection and Drainage

Existing Site DrainageExisting Conditions

Existing Flood ProtectionFeatures100 Year Tide Areas ofInundationProjected Sea Level Rise

Flood Protection and DrainageProposed Concept

Provide Protection from 100 Year Tide Plus 18" of Sea Level Rise andAccount for Wave Run-Allow for Future Adaptive Measures to Protect Against Larger Amounts ofSea Level Rise up to 55"Alternatives Explored

- Elevate Site- Improve Perimeter System- Hybrid


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Flood Protection and DrainageProposed Concept - Improved Perimeter System

Raise Seawalls and Rock SlopesAllocate for Future Expansion ofPerimeter FeaturesAddress GeotechnicalConstraints (Liquefaction)Maintain Majority ofExisting Elevations Interior tothe SiteInstall New Storm Drain Systemwith Water Quality TreatmentFlood Protection, Site Gradingand Drainage Costs:: $170Million

Sanitary SewerSystem of New Pipelines andLift StationsConvey Wastewater toExisting Pump Station 1Utilize Existing Off-SiteInfrastructure to ConveyFlows to EBMUD TreatmentPlantImprove Capacity of Siphonsat the Estuary Crossing

Sanitary Sewer Costs = $55Millon


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Potable WaterSystem of NewDistribution PipelinesProviding ProjectedDemands and Fire FlowsConnects to Existing WaterMains in Main StreetPotable Water Costs = $12

Millon

Recycled WaterSystem of New Distribution Pipelines Required by EBMUDConnect to the Future EBMUD Recycled Water SystemProvide Irrigation Water and Other Potential Permitted UsesRecycled Water Costs = $8 Milion


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Dry Utilities(Electric, Gas and Telecom)

System of New FacilitiesMeeting Current Standards and Regulations

Upgrade Existing Electrical Sub-StationDry Utility Costs = $25 Millon

On-Site StreetsConstruct New On-Site StreetsRebuild Existing Streets withinHistoric AreasConstruct Bike Circulation RoutesPedestrian Improvements , and aTruck RouteImplement Other Necessary TraffcImprovements

- Traffic Signals- Traffc Circles- Traffc Calming

On-Site Street Costs =$55 Million


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Off--Site Street ImprovementsImplement Off-Site StreetImprovements to SupportRedevelopment- Main Street- Mitchell Mosley AvenueExtension- Stargell Avenue Completion- Mariner Square Drive /Marina Village Parkwayand Park and Ride

- Cross Alameda TrailImprovements- RAMP Bike Lane andMedian ImprovementsOff-Site Street Costs = $65Milion

Regional Transportation ImprovementsRegional Transportation Improvements Based on Previous Studies. GPA andCommunity Workshop Include:

Shuttle SystemTransit CenterBus Rapid TransitFerry Terminal

Access Improvements in OaklandTransportation Demand Management (Establish Monitoring Program)

Regional Transportation Improvement Costs = $50 - 65 Millon


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Parks and Open SpaceProvide Neighborhood Parks andOpen Space AreasProvide Initial Improvements toRegional Facilities Including

- Sports Complex- Sea Plane Lagoon Frontage

Parks and Open Space Costs = $80Milion

Backbone nfrastructu re Costs(Without Public Benefits and Other Costs)

. Site Preparation $ 120 M$ 170 M$ 100 M$ 55 M$ 65 M$ 60 M$ 80 M

TOTAL $ 650 M

. Flood / Sea Level Rise Protection & Drainage

. Utilities (Sewer, Waters and Dry Utilities)

. On-Site Streets

. Off-Site Street Improvements

. Regional Transportation Improvements

. Parks and Open Space


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Public BenefitsEnhanced Sports Complex ($15 - $30 M)Enhanced Sea Plane Lagoon ($5 - $10 M)Additional Passive Open Space (To Be Determined)Marina ($5 - $10 M)Library ($9 - $15 M)Subsidies for Historic Preservation (Undefined)Subsidies for Affordable Housing (To Be Determined)

Questions onAlameda PointInfrastructure Costs


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Next Steps

Next Steps. Upcoming Workshops

- Transportation Workshop: May 26 6:30 pm to8:30 pm - Mastick Senior Center

- Sustainability Workshop: June 14 6:30 pm to8:30 pm - O' Club- Financial Workshop: TBD


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Next Steps. Preparation and Evaluation of Alternatives. Monthly Updates to ARRA. Review by Community and Boards and

Commissions. Other Ongoing Community Involvement. LBNL Second Campus Process

- July/August 2011 community meeting- Other shows of community support- November decision on preferred site

Questions

may 18 webinar alameda point infrastructure

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