High Point Park Our Neighborhood
Team Member Program
Dawn Holmes Heinz
Emeka Onwugbenu Tepper
Ajinkya Ratnaparkhi Heinz
Pallavi Kumar Heinz
Meera 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 Air
Design• 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 WashingtonObservatio
n 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 Cost
Space Amenities Hard Cost Soft Cost Contingency
Total 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
Tickets
Pittsburghers $1.6 M
Tourist $7.8 M
Sub-Total $9.45 M
Restaurant and Bar
Leasable Space $2.1 M
Profit 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 Value
Cost $33.037 M
Annual 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 Funding
URA – 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 Values
Rebrand PITTSBURGH
Local Employment
Increase tourism
Support Local
Businesses
Free green project exhibit
Use sustainable
energy
Aid Pittsburgh PROMISE
Quantifiable Social Benefits
Buying local: $24M construction
$1M every year local food
Employing Welfare-to-work:90-100 restaurant
30-40 conference
4.5% job market tourism
In-kind donationsFree tickets to schools
Free 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
st
Knowledge
Engaged and Dedicated Stakeholders
Roadmap To Success
18
Due Diligence Construction Launch
Finalizing 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
capacityComplemetar
ityGreen
elements
WEAKNESSWeather at the altitude of 840 feetExpected high cost of construction
OPPORTUNITIESTourism
Adds to the uniqueness of PittsburghBenefit 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 23,64,622
Above $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 23,64,622
42% willing to pay above $10Poplulation expected 993141.24Tourists 3900000
expected ticket sale 4893141.24total ( tourists +total population) 6264622Not expected 1371480.76
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