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High Point Park Our Neighborhood Team MemberProgram Dawn HolmesHeinz Emeka OnwugbenuTepper Ajinkya RatnaparkhiHeinz Pallavi KumarHeinz Meera George PalackanHeinz.

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Presentation on theme: "High Point Park Our Neighborhood Team MemberProgram Dawn HolmesHeinz Emeka OnwugbenuTepper Ajinkya RatnaparkhiHeinz Pallavi KumarHeinz Meera George PalackanHeinz."— Presentation transcript:

1 High Point Park Our Neighborhood Team MemberProgram Dawn HolmesHeinz Emeka OnwugbenuTepper Ajinkya RatnaparkhiHeinz Pallavi KumarHeinz Meera George PalackanHeinz

2 Imagine!

3 Agenda Product Concept ▫The Neighborhood Market & Competitor Analysis Triple Bottom Line Approach ▫Financial ▫Social ▫Green Roadmap to Success

4 Our Neighborhood 840 feet in the Air Design US Steel Topography Business Buys Local Affordable Green Water Wind Electricity Community School Hiring Exhibits

5 Welcome to the Neighborhood Functions in winter and summer 1 acre Observation Deck Green Spaces Restaurant / Bar Conference Area

6 Our Neighborhood Offers Multiple Amenities Restaurants / Bar Breathtaking Views Office / Conference Room Accessibility Green Space

7 Unique Product in an Untapped Market Ticket Total Market Area

8 Limited Competition Provides Unique Business Opportunity Mount Washington Observation 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

9 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

10 Relatively Low Implementation Cost SpaceAmenitiesHard CostSoft CostContingencyTotal 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 Cost 3.Maintenance Cost is 30% of Gross Revenue 4.20% of NOI saved as cash reserve 5.30% tax rate

11 Multiple Revenue Streams SourcesAvenueAnnualized Tickets Pittsburghers$1.6 M Tourist$7.8 M Sub-Total$9.45 M Restaurant and Bar Leasable Space$2.1 M Profit 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 Price 2.70% Utilization of Conference 3.$857 / Sq-ft for restaurant revenue 4.10% profit sharing 5.7% of Pittsburgh population 6.20% of Tourist population SummaryValue Cost$ M Annual Revenue$ M Payback Period9.5 Years IRR36%

12 Healthy P&L Statement Year 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 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

13 Potential Sources of Funding URA – Urban Redevelopment Authority Angel Investors and Private Equity Funds Funding & Exemptions for Green Ventures Guaranteed Contracts

14 The economic cost structure is not significantly increased by ‘going green’ Reinvest Savings in Green Energy and Social Projects

15 Social Benefits Reflective of Local Values Rebrand PITTSBURGH Local Employment Increase tourism Support Local Businesses Free green project exhibit Use sustainable energy Aid Pittsburgh PROMISE

16 Quantifiable Social Benefits Buying local: $24M construction $1M every year local food Employing Welfare-to-work: restaurant conference 4.5% job market tourism In-kind donations Free tickets to schools Free exhibition space for children for green industry

17 Community Environmental groups Hospitality Industry Green Industry Project Managers: Construction Architects Expert/consultant: Green Building Alliance City engineers Dicks Construction Marketing consult Workforce: Welfare to work agencies Raw Material: local providers Funding Owners: US Steel Tower Restaurant owner Vendors Regulations: State and Federal City ordinances RegulateResource Public Interest Knowledge Engaged and Dedicated Stakeholders

18 Roadmap To Success 18 Due DiligenceConstructionLaunch Finalizing Concepts Capital Building / Finance Team Formation (Lawyers) Permits & Control Final Architectural details / Blueprints Raw Material Orders Work Distribution Implementing Blueprints LEED Certification Interiors InspectionMarketing Unveiling the Roof

19 Imagine!

20 Our Neighborhood Revitalized! Economic Less than 10 Years Payback Green Gold LEED Certified Social Job Creation & Rebrands Pittsburgh

21 Q&A Session Team Members Dawn Holmes – Heinz Emeka Onwugbenu – Tepper Ajinkya Ratnaparkhi – Heinz Pallavi Kumar – Heinz Meera George Palackan – Heinz

22 Appendix

23 Supplementary slide SWOT ANALYSIS STRENGTHS 360 degree view Large capacity Complemetarity Green elements WEAKNESS Weather at the altitude of 840 feet Expected high cost of construction OPPORTUNITIES Tourism Adds to the uniqueness of Pittsburgh Benefit to State Economy THREATS Competition mainly to conference rooms SWOT

24 Social Entrepreneurship A business model to measure the triple bottom line Partner 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

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