SF City Impact Taylor St Business Plan

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30th year capital campaign$7.5 million dollars

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VISION∙ Acquire two buildings and one parking lot for

SF City Impact∙ Renovate one building∙ Create positive cash flow and additional revenue

streams for sustainability ∙ Double the impact of SF City Impact’s

outreach and operations

PROPERTIES∙ One purchase of three parcels total

› 120 Taylor Street - Parking lot, 16 stalls› 136 Taylor Street - Four-story vacant building,

12,325 sq ft› 144 Taylor Street - Two-story fully occupied

building that includes a newly renovated 30-room hotel ($800K of improvements by tenant), newly renovated restaurant ($1 million of improvements by tenant), convenience store and clay art business (see rent roll) - 25,192 sq ft

LOCATION

∙ One block from 6th Street/Market Street - Warfield and Golden Gate Theaters

∙ In the heart of the booming Mid-Market neighborhood, where real estate inventory is very low

$6.5M PURCHASE PRICE IS ROUGHLY $173 PER SQUARE FOOT

$1M IS TO RENOVATE THE BUILDING FOR CITY IMPACT PURPOSES

IMPACT∙ Create an outreach epicenter for Bay Area volunteers, equipping

and mobilizng them for service∙ Increase number of Missions Teams, resulting in more volunteers

and more revenue∙ Host 20 additional urban missionaries, resulting in more

community leaders and more revenue∙ Consolidate office space into 136 Taylor, freeing space to grow

SF City Academy to 250 students∙ Consolidate SFCI’s parking into 120 Taylor, eliminating

parking rent∙ Increase City Impact housing space, doubling the number of

daily workers from 45 to 90∙ Create sustainable revenue for the organization

CASH FLOW CURRENT MONTHLY RENT ROLL

120 Taylor Street $3,000136 Taylor Street - 144 Taylor Street $19,742.67 TOTAL $22,742.67

MONTHLY EXPECTED REVENUE FOR 136 TAYLOR STREET

Lower Level - Social Enterprise (TLMade) $1,000Floor One - Outreach Center $0Floor Two - Missions Teams $16,000 Floor Three - Urban Missionaries $10,000Floor Four - AAB & SFRM Offices $3,500TOTAL $30,500

MONTHLY SUSTAINABLE REVENUE $53,242.67

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executive SummaryAt present, San Francisco City Impact (“City Impact”) provides community outreach, support for adults, and an elementary school for children living in the Tenderloin. City Impact, a non-profit organization, was founded by Roger Huang in 1984. As of this date, it owns and operates facilities at 230 Jones Street and 218 Turk Street and leases space at 140 Turk Street and 302 Eddy Street. Based upon its past success and the growing needs necessary to serve people living in the Tenderloin, City Impact is in critical need of additional space. Recently, the owner of the buildings at 120, 136 & 144 Taylor Street has agreed to sell these buildings to City Impact. The acquisition of these buildings offers the rare opportunity to utilize a renovated, mixed-use commercial, retail and residential property on one of the Tenderloin’s most strategic corners, providing City Impact with the ability to do five things:

1) Grow and develop City Impact’s Social Enterprise businesses2) Recruit and train City Impact Urban Missionaries3) Host missions teams4) Increase enrollment in the elementary and middle school5) Create positive cash flow and sustainability for City Impact’s overall operations

city impact todayFrom a management perspective, City Impact is uniquely positioned to run and operate the Taylor Street Properties. City Impact offers relief programs such as daily feedings, health care, and social services, while trying to break the cycles of poverty and despair in the Tenderloin through education and leadership training. Its three decades of experience provide a clear vision for the central role this property can play in revitalizing the neighborhood. Just as important, City Impact embraces for-profit principles, has a solid track record of financial stewardship and is operationally sound.

City Impact’s extensive experience operating programs, businesses, and facilities in the Tenderloin includes the following:

∙ Runs an annual budget of $8 million, including gifts in-kind and gifts in-service.∙ Has launched and operated a financially sustainable and profitable social enterprise, TLThrift, in the

Tenderloin for more than two decades, employing and training dozens of workers over the years. Its fiscal year 2012 net income was $39,000, representing a profit margin of approximately 40%.

∙ Operates four campuses including the Thrift Store, the Rescue Mission, a school with 120 students, and a successful commercial kitchen that produces 250 hot meals per day (including rice plates, stir fry, burgers, steak, vegetables, pasta, and breakfast items) for the school and the Rescue Mission.

∙ Delivers 135,000 meals and groceries each year directly to the doors of residents in 47 buildings in the Tenderloin. During holiday events, serves over 23,000 meals over a four day period.

∙ Recruits, equips and mobilizes 8,000 volunteers each year through the annual City Impact Conference, Missions Trips Programs, and Holiday Events. In addition, utilizes 135 weekly local volunteers in daily operations and programs.

∙ Over the past 29 years, in addition to its community support programs, at least 435 people’s lives have been transformed through City Impact’s Leadership Training Program.

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The City Impact team will bring its acumen for stewarding financial and human resources to the Taylor Street Property. Not only will it create jobs for Tenderloin residents and the homeless, but the increase in volunteers and leaders stemming from the acquisition of the property will help in providing the relief, rehabilitation, and development services that City Impact offers. The increased number of volunteers and leaders from the City Impact Urban Missionary program as well as the missions teams that come will further increase the scale of help we can offer the underserved. Services such as meals, clothing and groceries will be extended to those in need, because of the increase of trained volunteers. Furthermore, the increase of space from the Taylor Street property will allow for offices to be moved from City Impact’s 230 Jones location, allowing our school to expand to educate more children, allowing our Health and Wellness Center to offer more free medical care, and allowing City Impact to change more lives.

the taylor property acquiSition (the “property”)The Property, located at 120, 136 & 144 Taylor Street, is comprised of three adjacent legal parcels totaling approximately 37,517 gross square feet of building area. The Property includes approximately 17,538 gross square feet of leased commercial, restaurant and retail space, approximately 12,325 gross square feet of vacant seismically-upgraded brick and timber office space, an approximately 4,887 square foot surface parking lot, a leased billboard, and a renovated hotel under management contract with 27 SRO and 2 Tourist units. The restaurant space originally housed the legendary Original Joe’s Restaurant until a fire damaged the restaurant in 2007. A new restaurant, Piano Flight, has leased the space and will open in Spring 2014.

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Summary of city impact taylor Street utilization

lower level - Tlmade (social enTerprise)

One year ago City Impact launched its second social enterprise, TLMade. We believe that people can find healing and dignity through productive lifestyles. TLMade gives residents the opportunity to enter into gainful employment, produce quality products, and learn entrepreneurial skills that will not only bring resources themselves, but also bring much needed resources for the community in which they live. City Impact believes that restoring dignity and creating jobs is key to breaking the cycle of poverty in the inner city. This last year TLMade employed five Tenderloin residents and was able to generate over $2,000 every month in revenue. Projections with the increased space at 136 Taylor push projections over $5,000 a month.

Floor one - ouTreach cenTer

One of the biggest obstacles that City Impact faces is the lack of open space needed to train, equip, and mobilize our volunteers. With the first floor of 136 Taylor serving as City Impact’s main outreach center, departments will no longer have to compete for space. Groups as large as 250 people will gather here with the sole purpose of being sent out to serve in the community.

Floor Two - missions Teams

The second floor of 136 Taylor will be utilized to host missions teams from around the country. At a conservative estimate, City Impact will be able to host 620 more team members a year on the second floor. Team members pay on average $65 per night (+ registration fee) and typically stay for 4 nights. This amounts to $16,016 every month in revenue for City Impact.

Floor Three - urban missionaries

Every department of City Impact has been growing, and this growth is most apparent in City Impact’s Urban Missionary Program. The Urban Missionary Program has been instrumental in training up young adults to become leaders across the world in disciple making. Last year, the number of Urban Missionaries trained by City Impact grew by over 900%, increasing from 4 to 36. City Impact expects an even greater influx of people entering into the Urban Missionary Program in 2014 and is planning on hosting over 46 new Urban Missionaries. Currently space is the only thing limiting the Urban Missionary Program from progressing even further. The Taylor Street Property will allow for the growth that City Impact is expecting with the Urban Missionary Program. The addition of the Taylor Street Property will allow for 20 new Urban Missionaries generating an additional $120,000 per year in revenue.

Floor Four - aab & sFrm oFFices

The AAB & SFRM offices will be moved from the 230 Jones location to the fourth floor at 136 Taylor. AAB currently has 300 Sponsors generating $11,400 per month. City Impact projects that AAB Sponsorship will jump to 400 sponsors in 2014, generating $15,200 per month, and grow to 500 sponsors in 2015, generating $19,000 per month. Each month, AAB is budgeted to pay $3,500 in rent for operations.

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floor four – aab & Sfrm officeS

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exiSting & projected* leaSe income

120 Taylor Street - City Impact

Parking Lot $3,000*

TOTAL $3,000*

136 Taylor - City Impact

Lower Level - TLMade $1,000*

Floor 1 - Outreach Center -

Floor 2 - Missions Teams $16,000*

Floor 3 - Urban Missionaries $10,000*

Floor 4 - AAB & SFRM Offices $3,500*

TOTAL $30,500*

144 Taylor Street

Lower Level - Piano Fight $749.50

Floor 1 & Mezz - Piano Fight $6,372

TOTAL $7,121.50

162 Taylor Street

Best Hotel $5,460

TOTAL $5,460

187 Eddy Street

Clay Underground $3,661.17

TOTAL $3,661.17

199 Eddy Street

Cool Super Grocery $3,500

TOTAL $3,500

City Impact Projected Income $33,500* + Lease Income $19,742.67

TOTAL PROJECTED INCOME $53,242.67

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addendum

mid-markeT neighborhood

San Francisco’s Mid-Market neighborhood serves as the southern border of the Tenderloin and encompasses the area on either side of Market Street between 5th Street and Van Ness Avenue. It features many of the city’s finest entertainment and cultural amenities, including numerous theaters and music venues. The neighborhood is surrounded by densely populated residential neighborhoods, with 2,100 existing housing units and an additional 4,000+ housing units planned or currently under construction. In addition, the Mid-Market area is adjacent to Civic Center, the home to many state and local government offices, including San Francisco City Hall. Government entities in the neighborhood include the San Francisco Public Utilities Commission, the Supreme Court of California, the San Francisco Public School Administration, the San Francisco Municipal Transportation Authority and the University of California’s Hastings College of the Law.

The neighborhood is undergoing its most significant transformation since it was dismantled for the construction of BART in the 1970s, and is now viewed as perhaps the most dynamic neighborhood in San Francisco, as evidenced by the recent influx of both office and residential institutional capital. Various efforts by the city have been put in effect to improve this blighted section of town, including the Better Market Street Initiative Project (scheduled completion in 2015), aimed at improving the aesthetic and functionality of Market Street as the city’s main thoroughfare.

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Site plan

building area descripTion size

124 Taylor Street N/A Parking Lot 16 parking stalls

136 Taylor Street

Lower Level 2,425 gross square feet

First Floor 2,700 gross square feet

Second Floor 2,400 gross square feet

Third Floor 2,400 gross square feet

Fourth Floor 2,400 gross square feet

Total 12,325 gross square feet

144 Taylor Street

Lower Level 9,897 gross square feet

First Floor 7,641 gross square feet

Second Floor 7,654 gross square feet

Total 25,192 gross square feet

The besT hoTel - sro & hoTel uniTs

The second floor on the 144-164 Taylor Street property contains 27 Single Room Occupancy (SRO) Units and 2 Tourist licensed Units. The Hotel is master-leased for 15 years to a private operator/manager, with a manager on-site 24 hours/day, 7 days/week. The lease is $5,460 per month.

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136-142 Taylor StreetThe building has exposed open-beam wood ceilings.

144-164 Taylor StreetThe property has T-bar drop ceilings in select locations throughout each floor and partially exposed ceilings.

sTairs

124 Taylor StreetN/A - Parking Lot

136-142 Taylor StreetThe property has one full stairwell spanning from the basement to the 4th floor in the northwest corner, with a dedicated exit to Taylor Street. The property has a second ground floor exit to the adjacent parking lot from the ground floor. The property also has an exterior fire escape to Taylor Street.

144-164 Taylor StreetThe property has three separate stairwells from the basement to the 1st floor with dedicated exits to Taylor and Eddy Streets. The property also has a dedicated stairwell from Taylor Street to the 2nd floor hotel rooms, as well as an exterior fire escape from the 2nd floor to Eddy Street. The property has a new interior stairwell within the Piano Fight premises, leading from the basement to the new mezzanine.

resTrooms


136-142 Taylor StreetFirst Floor: One ADA restroom on the ground floor with a sink and toilet. Floors 2 - 4: One restroom per floor with a sink, toilet, and shower.

interior detail

sTrucTural/seismic


136-142 Taylor StreetThe foundation consists of poured-in-place concrete, and masonry constructed walls.The rear wall is concrete over masonry. The property was seismically-upgraded in 2002.

144-164 Taylor StreetThe building consists of a reinforced concrete slab and perimeter foundation (built over a brick foundation), and a steel frame structure with wood floors, roof, and walls.

inTerior walls


136-142 Taylor StreetThe walls are primarily exposed brick and painted drywall

144-164 Taylor StreetThe walls are primarily painted plaster and drywall

Flooring


136-142 Taylor StreetThe floors are primarily exposed wood floors throughout.

144-164 Taylor StreetThe floors consist of concrete slab, vinyl tile, tile and carpet floor coverings.

ceiling


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2nd Floor Best Inn: The hotel rooms have individual heating units.

elecTrical power


136-142 Taylor StreetElectrical service provided by PG&E. The basement has two (2) 20 amp power panels. The first floor has 200 amps, the second floor has 125 amps, the third floor has 125 amps, and the fourth floor has 60 amps.

144-164 Taylor StreetElectrical service provided by PG&E. The electrical system includes 110/220 3-phase systems with circuit breaker.

lighTing


136-142 Taylor StreetPrimarily suspended fluorescent lighting.

144-164 Taylor StreetWithin last 2-3 years, all lighting in the property except for the grocery store has been replaced and upgraded except for the grocery store has been replaced and upgraded. gas


136-142 Taylor StreetGas service provided by PG&E

144-164 Taylor StreetGas service provided by PG&E liFe & Fire saFeTy


136-142 Taylor Street

144-164 Taylor StreetBasement Ceramic Studio: Two ADA restroomsGround Floor Grocery Store: Two ADA restrooms on the ground floor with a sink and toilet.Piano Fight: 8 new unisex ADA restrooms (7 on main floor, one in basement)2nd Floor Best Inn: 13 toilets, 17 showers (2 public restrooms with shower/stall/sink; 11 private restrooms in rooms). All hotel restrooms renovated in 2010 to ADA standards

ada


136-142 Taylor StreetThe property appears to comply with ADA requirements for a building of its age and vintage. The property contains some floors with ADA restrooms and some without ADA restrooms.

144-164 Taylor StreetThe property appears to comply with ADA requirements for a building of its age and vintage. The property contains some units with ADA restrooms and some without ADA restooms.

hvac sysTem


136-142 Taylor StreetNone, although the fourth floor has ceiling fans. The site has new dual-pane windows and wood core doors from a 2008 renovation.

144-164 Taylor StreetBasement Ceramic Studio: One dedicated HVAC system. Ground Floor Grocery Store: Non-conditioned natural-air fan.Piano Fight: One new dedicated HVAC system located in the basement, three new HVAC systems located on the main floor, all with conditioned air.

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The property does not have a wet pipe fire sprinkler system; however, it does have fire alarms and fire extinguishers.

144-164 Taylor StreetAll 3 stories contain full fire life safety systems upgraded in 2010, including a wet pipe fire sprinkler system, fire alarms and fire extinguishers, and direct alarm contact with the Fire Department. The Piano Fight fire life safety system is being fully-upgraded now as part of current renovation, all to current building code.

verTical TransporTaTion


136-142 Taylor StreetThe property has one (1) elevator that is dated but functional. Elevator service provider is Apple Elevator Co.

144-164 Taylor StreetThe property does not contain an elevator. The City of San Francisco did not require the addition of an elevator in the recent 2010 renovation.

if you Would liKe to contribute:Three ways To give To The 30Th year capiTal campaign

Online (credit or eCheck)https://secure.qgiv.com/for/sfci/restriction/30thyearcapitalcampaign/

Check or Cashpayable to: sF city impactmemo: 30th year capital campaignaddress: p.o.box 16217, san Francisco, ca 94116

Stocksmorgan stanleyaccount #: 785-212917-301clearing pin: 0015

Tax ID number: 94-3163872

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income2013 Fiscal year

$1,916,420donaTions in serviceThe second largest portion of donations came from devoted hours of service given by faithful volunteers.

$3,326,817donaTions in kindThe majority of our donations came from supplies generously provided by City Impact supporters.

$2,621,595donaTions in giFTOne of the most valuable resources in City Impact came in the form of monetary gifts from hundreds of inviduals and churches around the US.

$110,160TlenTerpriseWe’re starting to explore social enterprise and the potential role it could play in the growth of City Impact.

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expenSeS2013 Fiscal year

94.79%program expensesThese are costs that serve the community and where the bulk of our revenue goes. Program expenses include supplies, salaries, and resources that help City Impact develop and grow. The money we spend on our program expenses directly impact our mission and our ministry.

1.56%Fundraising expensesThese are costs that help us maintain our efforts in raising funds. Events, mailing cam-paigns, and materials to obtain contributions from donors fall under this category.

3.65%adminisTraTive expensesThese are costs that go into all the behind-the- scenes work. Certain supplies, salaries, and upkeep expenses are categorized as administrative expenses.

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facebook.com/sfcityimpact230 Jones StSan Francisco, CA, 94102 @sfcityimpact @sfcityimpact

SF City Impact Taylor St Business Plan

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Transcript of SF City Impact Taylor St Business Plan