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SOCIAL INFRASTRUCTURE SUCCESSES

SOCIAL INFRASTRUCTURE SUCCESSES. Panelists: Misty Baskett - National Development Council Rich Hill - Faegre Baker Daniels LLP Bo Kemp - Special Advisor to the Mayor of Gary, Indiana Jim Napolitano- Special Projects Manager for King County. Moderator:

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SOCIAL INFRASTRUCTURE SUCCESSES

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  1. SOCIAL INFRASTRUCTURE SUCCESSES Panelists: Misty Baskett- National Development Council Rich Hill- Faegre Baker Daniels LLP Bo Kemp- Special Advisor to the Mayor of Gary, Indiana Jim Napolitano- Special Projects Manager for King County Moderator: Les Nicholson- Pillsbury Winthrop Shaw Pittman; former General Counsel of GSA Projects: 1. 440,000 sq. feet Medical Office Building King County, Washington 2. Gary/Chicago International Airport P3 Expansion

  2. Interactive Panel Discussion of These Projects Primary issues Process/plan utilized Immediate, tangible results Long terms results Lessons learned

  3. Recent Projects Using 63-20 and Related Approaches Ninth and Jefferson Building King County, Washington 440,000 sq. ft. Medical Office Building LEEDGold Erased a $30,000,000 project overrun on previous GC-CM process The BOMA 2011 Outstanding Building of the Year (TOBY) award for excellence in the medical office category Financing: 63-20 Bonds Bond Issue: $189,720,000

  4. A Profile in Public Benefit • By the time the original GCCM group finished excavating the site, they were facing a $15 MILLION budget overrun • The University’s renovation of theInpatient Expansion Building (IEB) had a similar $15 MILLION budget overrun • King County elected to transfer $15 MILLION from the Ninth and Jefferson Building to fill the gap on the IEB. • This left King County with a $30 MILLION budget gap; effectively killing the NJB project.

  5. A Profile in Public Benefit King County Partnered with National Development Council to assist with financing and development. A development Team was assembled; NDC as Owner, Wright Runstad as Developer, NBBJ as Architect, and Turner as General Contractor. This team was able to triple the usable square feet within the existing footprint and reduce development costs from $800 per sq. ft. to $450 per sq. ft. Erasing the $30 Million deficit.

  6. A Profile in Public Benefit “The medical office building cost 50% less per square foot” “Budget was well managed”“Approximately $7.6 Million joint savings achieved on shell and core.”“Restructured project was delivered at substantial savings compared to initial project estimate”

  7. City of Gary/Gary Chicago International Airport Development Agreement • Master Developer • AFCOGary, LLC • Aviation Facilities Company, Inc. • Guggenheim Securities • Loop Capital • Financial Terms

  8. City of Gary/Gary Chicago International Airport Development Agreement (Cont’d) • Developer required investment of $25M in first 36 months • $2.5M in first 12 months • $100M over 40 year term • City revenue sharing through • Sale of City or Airport property • Lease of City or Airport property • Annual rental amount supplemented if net profit level not reached by rental amount • Contribution of property by the City or Authority • 20% of profits derived from contributed property

  9. Investment in Community Development • Investment in Community Development • $300,000 in the first 3-6 months • Workforce Development Requirements • Local participation – 30% • DBE/MBEparticipation – 20% • WBE/ABE participation – 5%

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