Winn's Pitch for MCC at Sibley

WinnCompanies Proposal for a Downtown Center City Campus at Sibley: Saving Taxpayer Money, Meeting MCC’s Needs & Reviving Downtown

January 30, 2013 Dear Rochester leader, We are writing to provide you with important information to consider as part of the ongoing process to select the highest quality, safest and also most economically efficient permanent home for Monroe Community College's (MCC) Downtown Campus. Following the December 11 County Resolution approving funding for an improved, permanent downtown MCC campus, we were encouraged to see the County’s commitment to exploring multiple options that would offer a fantastic, downtown learning environment for future generations of students in an efficient development approach that would minimize the financial burden to taxpayers. Toward that end, we worked diligently during the past month to create a revised development proposal that delivers on both goals for the County, the college and the Rochester community. As you know, the WinnCompanies submitted a proposal last year based on the bid specifications provided by MCC. Those specifications were tailored for a building like the Kodak building, an office building without academic characteristics or an existing campus infrastructure. The MCC specifications required the college’s existing campus spaces in the Sibley Building be demolished and rebuilt, which is far from the most efficient development method in terms of finance or design. Even under these constraints, our final net development cost to the County and SUNY came in at $67 million with the inclusion of tax credits, which is $8 million less than the $75 million Kodak site development cost. This proposal included a five-year, lease-to-own structure, which we later learned was not ideal for MCC leadership. We believed at that time that we offered the best proposal for the students and the taxpayers of Monroe County, but, unfortunately, we were not given the opportunity to present our plan to the College Board and other interested parties prior to a vote. Since then, the WinnCompanies has delivered on its promise and invested in the City of Rochester and Monroe County by purchasing the Sibley Building and beginning a smart, efficient development process that will greatly benefit the local community and contribute to the revitalization of this great city. We believe our investment is already noticeable at the building in terms of cleanliness, safety and appearance. We are now submitting the following new proposal designed to fulfill the County’s publicly stated desire to examine multiple fiscally responsible options for the MCC campus. We want to be crystal clear as to costs and structure of a Sibley Campus under this revised proposal. It does not contemplate tax credits and, therefore, can result in the immediate sale to MCC of any portion of the Sibley Building that college leaders believe they need. Based on our analysis, the WinnCompanies can deliver the MCC campus at Sibley for $18 million less than the Kodak proposal. Our new approach efficiently improves existing spaces within the current campus while expanding with new construction in vacant areas of the building. For the price of $57 million, the Sibley Building can meet or exceed every single criteria of Kodak and the College Board's site selection criteria, including:

A greater amount of built-out square footage (275,539 square feet); A dedicated MCC entrance and lobby and separated utilities; All new heating and cooling systems;


Benefits to Taxpayers

Cost to Build – The renovated and expanded campus at Sibley without tax credits would cost $57 million. This represents a savings of $18 million for the taxpayers of Monroe County (more than $9 million) and SUNY ($9 million) as compared with the proposed $75 million Kodak site. These cost savings stem from the revised plan for renovation, as opposed to demolition and rebuild, of certain aspects of the existing campus, coupled with significant expansion and newly built amenities, including a cafeteria, auditorium spaces, and large gathering spaces for students to meet and socialize.

Cost Certainty – Any cost overruns at the Sibley site would be borne by WinnDevelopment, a 40-year-old, well-capitalized, nationally renowned historic renovation company. Any cost overruns at the Kodak site will be borne by Monroe County taxpayers. DiMarco Constructors have priced out the Winn plan in detail based on extensive site visits and design review.

Cost to Operate – At Sibley, MCC would only have to own the 275,539 square feet that the college has called for in its own specifications. Taxpayers would not be asked to finance the operation of the approximately 300,000 square feet of unneeded vacant space that would remain at the 561,951-square-foot Kodak site.

Expansion - In the 1 million square foot Sibley Building, there is plenty of expansion space available for future growth by MCC (100,000 square feet or more), as well as leasable space to local business and community partners of the college. Any unused portion of the Kodak site will burden Monroe County with ongoing insurance, repair, security and heating costs. Potential expansion space at Sibley carries no upfront cost for taxpayers.

Ease of Acquisition – Unlike the Kodak site, Monroe County taxpayers will not need to pay for lengthy due diligence, bankruptcy attorneys, or pre-development at the Sibley Building. WinnDevelopment already has completed due diligence, so there will be no surprises. In addition, since WinnDevelopment holds the current four-and-a-half-year lease, development of a new campus could begin as soon as MCC wishes.

Benefits to the College

Ownership – No tax credits are used in our plan, allowing MCC to own the campus space it wants immediately. This is a major change in our Sibley proposal, which the College Board and County may not have been aware of until now. The MCC campus would be a legally separated condominium, with separate utilities, entrances and elevators.


Benefits to the College (continued) Updated Facilities – We are confident in our ability to update and/or add at Sibley all the

requested facilities detailed in MCC's specifications, including student lounges, a cafeteria, fitness center and larger classrooms. A roof top green and a courtyard green are also included in our plan. Flexible floor plates and the selective elimination of columns at Sibley allow for the creation of auditoriums and larger classrooms. Columns will no longer interfere with the learning experience in classrooms.

Collegiality/Academia – The Sibley Building is adjacent to RIT’s new Center for Urban Entrepreneurship, which will create a true downtown academic community and create opportunities for MCC students. The University of Rochester’s Eastman School of Music and the Eastman Theater is two blocks away, and the University of Rochester’s School of Dentistry is in the Sibley Building.

Visible & Prominent MCC Identity – MCC will have its own exclusive, designated entrance and separate and spacious lobby with plenty of visibility and prominent presence (please see rendering attached which illustrates the banners, signage and dedicated street level entry) along Clinton Avenue. The inclusion of a dedicated entry and lobby is a significant update to our previous proposal. A prominent presence on the corner of Main and Clinton offers greatly enhanced advertising opportunities for MCC to attract more students, compared to Kodak's peripheral location.

Accessible Parking – The Sibley Building is connected to approximately 1,700 covered parking spots, including 100 spots in the basement of the building, which we propose to provide for MCC, if they so desire. There are 439 uncovered spaces at Kodak site, where the lack of parking could severely hamper expansion or marketability of the approximately 300,000 square feet of vacant space that the County would then be forced to purchase.

College Green – The Sibley Building proposal creates an expansive college green on the 5th floor roof for the exclusive use of students and staff. (Please see rendering attached).

Vertical Transportation – New escalators that are now being installed in the Sibley Building and three renovated elevators that will be installed soon will quickly transport students and staff between floors. There are no escalators at the Kodak site.

Site Utilities – The Sibley Building has access to all public utilities including the Monroe County fiber network. As SUNY requires, no utilities would need to be "shared" with other buildings or users.


Benefits to Downtown

Community Hub – The Sibley Building already offers retail, food, shopping, healthcare, day care, and dental services. Many more important tenants will be added in the near future as the building is redeveloped. It is readily apparent that with all the development across Main Street at Midtown, the Sibley Building will once again be the best place for office, retail, residents and institutions to come together as the heartbeat of Rochester with easy access to transit.

Economic Activity – A new downtown campus at the Sibley Building will be in the heart of Rochester, allowing MCC’s 3,000 students, faculty and staff to benefit – and participate in – the downtown’s rebirth, hundreds of millions of dollars of private investment, and opportunities to interact with local merchants and potential future employers.

Public Transportation – The Sibley Building is the most convenient location for students, staff and visitors to the college. The new $50 million 87,000 square foot RTS Transit Center is being built just 25 steps from the building, nearly across the street from the proposed exclusive MCC entrance.

Safety – The Sibley Building will be at the heart of a rejuvenated, lively and safe downtown. With the inclusion of the Rochester Police Substation (to be completed and occupied by 50 police officers in July 2013), and the addition of a new $350,000, 60 camera, state-of-the-art security and entry system (being installed at the building now), our goal is to make the Sibley Building the safest building in downtown Rochester.

Housing – There are plans for much needed, quality affordable housing, as well as market rate housing, in the connected tower at Sibley.


About WinnCompanies

• Founded 40 years ago

• Has never missed a mortgage payment or real estate tax payment in its history

• 6th Largest Property Management Company in the Nation

• Largest Manager of Affordable Housing in the Country

• Largest Manager of Military Housing in the Country

• More than 3,100 employees

• Manage 12 assets that are as large or larger than Sibley

• Manage more than 1,250,000 square feet of commercial space

• Manage 545 properties in 23 states totaling 95,233 housing units

• Manage 46 properties in New York State totaling 11,481 housing units

About WinnDevelopment

• Redeveloped more than $2 billion of real estate

• Redeveloped more than 70 properties in 13 states

• Sibley is Winn’s 18th large scale historic rehab

To read more about the WinnCompanies’ history, award winning work, and projects please visit: winncompanies.com

Total Square Feet 275,539

AmountGeneral Construction, FF&E and Design* $43,936,849

Soft Costs, Legal, Fees $3,327,306

Financing Costs $2,240,747

Acquisition $7,600,000

Total $57,104,901

WinnCompanies Proposal for a Downtown Campus at Sibley:Saving Taxpayer Money, Meeting MCC's Needs & Reviving Downtown

*Hard cost budget based on detailed pricing by Dimarco Constructors with backup.

No tax credits are used in this proposal, therefore MCC can buy the Sibley Campus at any time.

D E V E L O P E R :

A R C H I T E C T : The Architectural Team

Sibley BuildingRochester, NY

December 19, 2012

Winn Development

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Exterior Rendering

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Basement

MCC

Retail

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Rochester Police

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Residential

Back of House

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First Floor

MCC

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Rochester Police

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Second FloorScheme 2

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MCC :Potential Community Partnership Space + Potential Cafeteria / Student Lounge

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Fourth Floor

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Fifth Floor

MCC COLLEGE GREEN

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Sixth Floor

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Retail

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Residential

Back of House

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Winn's Pitch for MCC at Sibley

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Transcript of Winn's Pitch for MCC at Sibley