The financing for this development occurs through 4 major phases, spaced three years apart. Ample growth occurs throughout phases 1, 2, and 3, with the 4th phase being a full build-out scenario. In the 1st phase, 2.2 million rentable square feet are to be built. The uses include, 10 floors of rentable housing, 3 floors of Single Room Occupancy, 2 floors of affordable housing, 14 floors of office space, and 10 floors of hotel. An additional $2.5 million is being allocated towards a plaza in order to create valuable open space that will pull in attention and investment. This first phase is intended to capitalize on the city’s need for office space as well as provide supporting elements such as hotel and connections to the skyway. This phase gains positive NPV after year 10, and continues to gain value until year 29, when the development maxes out value at 15%.
Phase Two hinges off the momentum from the first phase by allocating space for retail, in addition to continuing office and residential development. Ground level and skyway-level retail are integrated in the build-out scenario in order to further integrate new space with the current downtown. This phase does not gain a positive NPV until year 12, when it maxes out at a 13% IRR rate. Affordable units are included in this phase as well, in order to integrate both market-rate and affordable-rate uses early on in the project.
Phase Three allocates more space for office, as well as structured parking, and the largest plaza / park spaces in preparation for the activation of the new stadium. The stadium will increase activity sporadically throughout the year, however, in order to sustain the investments, other areas of activity must be emphasized. This phase allocates for the full build-out of park and open space systems that will ensure activity and attention to retail and businesses situated in the corridors extending from the stadium to the downtown. This phase also gains a positive NPV value after year 12, and continues to generate value until year 29.
The final phase, anticipates a full build-out of mixed-use residential development with ground floor retail in the peripheral areas. 31 floors are al-located to rental housing, while office space oriented towards the medical complex is also developed. The NPV becomes positive in year 14, and maxes out to an IRR of 12%.
Through these four phases, investment is centered on transit-oriented nodes as well as open space systems, in an inclusive strategy that anchors public investment. Value can be gained from city blocks that were once parking lots in a model that gives emphasis on business, lifestyle, activity, and events. The strategy is intended to be modest, but momentum-gaining as developments pick-up value in a long term vision. This project intends to tie into the existing and extensive investments the city has already made, and to capitalize on them to attract investment from local businesses and firms.