A NEW CIVIC CENTER VISION REPURPOSING CHARITY HOSPITAL

NEW ORLEANS

New Civic Center Vision • Honors and Repurposes a Civic Icon

• Showcases Historic Preservation

• Revitalizes Adjacent Neighborhoods

• Provides a Financeable Strategy

• Catalyzes Redevelopment of Decommissioned VA Site

• Stabilizes Annual Operating Costs Below Current Levels

• Improves Efficiency & Quality of Workplace for Workforce

• Operational by Fall 2017

Why City Hall & CDC Need to Move • City Hall and CDC buildings are both over 50 years old and becoming functionally obsolete

• Maintenance on aging equipment, including originally installed elevators, HVAC systems,

generators, pump systems and incidentals are costing the City and Court:

– City Hall $350,000 (2012) CDC $250,000 (2012)

• Annualized Operating Expenses for City Hall and CDC are currently $240,000 per year in

janitorial expenses, plus an additional $630,000 in staff salaries for engineers/maintenance

workers, totaling $870,000 for both buildings

• Both buildings are facing a number of structural issues including aging plumbing and fixtures,

leaks and subsidence

• Both buildings are lacking modern, up-to-date Computer IT infrastructure including

inadequate wiring and electrical power to properly run and cool IT equipment, lack of space

for data centers and IT equipment, and poor wireless capabilities throughout buildings

• Both buildings are at maximum capacity with limited office space and storage available:

– City Hall 316,622 SF CDC 116,602 SF

Adjacent to Existing City Hall & CDC

3-5 Minute Walk to

Civic Center Complex from current City Hall/CDC

Tulane Avenue Arrival

Occupancy Distribution

Debunking the Myths about the

Charity Hospital Building • Charity’s structural integrity has been validated as

structurally sound.

• Charity’s basement will be filled with concrete and

pilings to reinforce foundation.

• Courtrooms will have 12’- 17’ high ceilings that are

fully open spaces with no obstruction from ceiling

beams or columns.

• Charity provides large floor layout possibilities.

19th Judicial District Courthouse

Precedent

Courtroom Fit

Typical Standard Courtroom (1,700 SF; Corner Bench)

Vertical Stacking

Programmatic Stacking

Area Summary Total Project Sizing and Areas GSF Total GSF

City Hall Tenant Space (Existing Inefficient Footprint is 338,905 sf) 281,325

Civil District Courts Tenant Space (Includes Courtrooms) 284,695

City Council Tenant Space (Includes Chamber) (Existing Footprint is 35,640 sf) 34,320

Public Commons Tenant Space 23,650

Mothballed Future Tenant Space 0

Fourth Floor (Dedicated to Central, Mechanical, Electrical and Plumbing Services) 48,005

Decommissioned Basement (Used for Total Foundation Infrastructure Replacement) 109,785

Selective Demolition (Two Rear Flanking Wings on Gavier Street Side) 194,415

Original Gross Total Area (NIC Post-1939 Extraneous Additions) 976,195 GSF

Less Decommissioned Basement 109,785

Less Selective Demolition 194,415

Net total Area (NIC Post-1939 Extraneous Additions, Basement, Selective Demolition 671,995

Add New Atrium Court 10,240

Add New Elevator Shafts 31,740

New Gross Total Area 713,975 GSF

New Gross Total Area Less Common Areas 600,340 GSF

City Hall and City Council Percentage Share Breakdown 315,645 52.58%

CDC Percentage Share Breakdown 284,695 47.42%

NOTE: CDC is currently 116,602 SF

Project Development Costs Total Building Construction Costs and FF&E Allowance

Total Project Construction Cost (713,975 GSF at $265 PSF) $189,203,375

Total FF&E Allowance Cost (Total for City Hall, City Council, and Courts $20,000,000

Selective Demolition Allowance $5,000,000

AFC $214,203,375

Design & Engineering Fees per FP&C (8.86%) $16,680,128

Total Building and Furniture, Fixtures and Equipment Construction

Costs

$230,883,503

Site Infrastructure Improvement Costs

Utility Infrastructure Upgrades (Including Co-Gen linkage) $2,000,000

AFC $2,000,000

Design & Engineering Fees per FP&C (7.6997%) $893,165

Site Infrastructure Total Construction Cost $2,893,165

Total Costs

Building & Infrastructure Total Construction Cost $243,376,668

Construction Cost Contingency @7.5% $18,253,250

Gross Total for Construction Cost & Contingency $261,629,918

Developer/ Project Management Fees @ 4% $10,465,197

Overarching Project Contingency (on both construction cost and

mgmt. fees) @ 3%

$8,162,853

TOTAL PROJECT DEVELOPMENT COST $270,657,968

Sources & Uses of Funds

Sources of Funds Percentage Credit Basis for Credit

State Contribution* $100,000,000

Historic Tax Credits on Net Total

Area Improvements (State Only)

(NIC Post-1939 Additions,

Basement)*

25% $178,078,675 $33,389,752

New Markets Tax Credits * $18,000,000

FEMA Funds from Existing City

Hall FEMA Project Worksheets

$11,000,000

Estimated Contribution from CDC $0

Recovery Dollars $30,400,000

City-Issued Revenue Bonds $77,868,217

Total Sources of Funds $270,657,968

Total Project Development Cost $270,657,968

*Funds specifically attached to Charity Hospital building

Annual Civic Center Complex

Operating Costs Annualized Operating Expenses (Responsibility of City and CDC)

Civic Complex Operating Expenses 713,975 sf @ $8.00 psf $5,375,960

Reserve/Maintenance on 713,975 sf at $1.0 psf $713,975

Annualized Cost of Debt Service (Tax Exempt Bonds to

support $77,868,217 Bond Issue)

$5,979,176

Total Gross Annual Costs (for both City and Courts) $12,069,111

CITY OF NEW ORLEANS ANNUAL COSTS* 52.58% $6,805,717

CDC ANNUAL COSTS* 47.42% $6,138,394

*Share split based on prorated occupancy square footage.