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• Senior Vice President and Regional Director for Liberty Property Trust
• Oversees Liberty’s Urban/Metro Region which includes the city of Philadelphia, Washington, DC and Northern Virginia.
• Also responsible for Liberty’s urban and national development projects
• Has overseen the development of over 15 major public-private development projects encompassing over 4.1 million square feet and representing approximately $1.2 billion of private investment
• Development projects for which Mr. Gattuso has been responsible include:
– Comcast Center, a 975’ high, 1.25 million square foot, LEED Gold Certified office tower in downtown Philadelphia
– The Plaza at PPL Center, Allentown, Pennsylvania
– The Raintree Office Campus, Scottsdale Arizona, a three-building master planned office campus for a major US financial institution
– TJX Distribution Center, a 1 million sf distribution center in the heart of Philadelphia, recognized as a Smart Growth development by the Sierra Club
– GlaxoSmithKline’s new center for North American Pharma under construction at the Philadelphia Navy Yard
Case Study: Comcast CenterPhiladelphia, Pennsylvania
The Challenge:
• Develop a landmark, state-of-the-art, CBD office building, capable of serving as the new headquarters for one of the nation’s leading technology/communication companies
• Integrate new office development with existing adjacent commuter rail station
• Incorporate sustainable, high-performance technologies into a high-rise office tower
• Proposed development costs at time of project conception exceed by 90% previous high-water-mark for CBD office valuation on per RSF basis
• Existing rental rates in CBD office market at time of project conception are 30% below those needed to support new development
• Leveraged over $700 million in direct private investment in the project ($490 million by Liberty Property Trust with balance invested by tenants in the building). Over 23 to 1 leverage ratio
• Secured a growing Fortune 100 headquarters in downtown Philadelphia, with significant job retention and creation
• Leveraged the tallest LEED gold certified building in the world (as of the date of completion)
• The completed Comcast Center development replaced a surface parking lot which had existed for over 20 years, and re-established important pedestrian connections within the office district
• Permitted the inclusion of significant public spaces as part of the development program including a ½ public plaza and dramatic indoor winter garden which serves as the new western entrance to the city’s main commuter rail station
• Required legislative approval at the state and local government levels
• Exposed project to heightened public scrutiny and comment
• Precipitated voluntary program to promote minority, female and disabled business enterprise participation in the design and construction phases of the project, as well as minority and female employment in the building trades
• Required segregation of public/infrastructure elements of the project, separate contracting as well as public sector contract management
The Navy Yard Corporate Center/Navy Yard Commerce CenterPhiladelphia, Pennsylvania
• Designate key portions of the Corporate Center and Commerce Center as Keystone Opportunity Improvement Zones (KOIZ) providing the abatement of certain state and local taxes for qualified firms
• Provide for low-cost financing to qualified business and for certain required infrastructure
• Provide over $43 million in federal, state, and local government grants for construction of related infrastructure
The Navy Yard Corporate Center/Navy Yard Commerce CenterPhiladelphia, Pennsylvania
The Outcome:
•Comprehensive Master Plan for 500 acre mixed-use development
•High quality design and sustainability standards
•Marketplace credibility
•10 buildings completed or under construction
•$244 million in private investment to date, including public infrastructure funded by Liberty
•An additional 600,000 rsf of commercial space, representing $200 to $250 million of investment by Liberty anticipated in the Corporate Center and Commerce Center alone
The Navy Yard Corporate Center/Navy Yard Commerce CenterPhiladelphia, Pennsylvania
Price of Public/Private Partnership:
• Minimum development performance schedule must be maintained or rights are forfeited
• Land pricing is based upon a FAR basis and escalates over time
• Public participation in minimum annual building rents
• Precipitated voluntary program to promote minority, female and disabled business enterprise participation in the design and construction phases of the project, as well as minority and female employment in the building trades
Government Approvals:• Executive Branch decision process• Attorney General’s Office review and signoff• State legislative and budget approvals• Maryland Board of Public Works Approvals
Augmented Political Interest and Influence:• Union, community, housing, environmental, local and minority hiring/contracting, historic and other groups• Competitive private interests
Additional Costs: • Legal, lobbying, and publicist fees• Public amenities and concessions• Increased infrastructure costs (e.g. commuter garage)
• Symphony Center Light Rail• Owings Mills Metro• Savage MARC• State Center Metro/Light Rail• Reisterstown Plaza Metro• Laurel MARC• Odenton MARC• Penn Station MARC/Amtrak• Howard Street Light Rail• West Baltimore MARC• Johns Hopkins/EBDI Metro• Rogers Avenue Metro• Cromwell Light Rail• Muirkirk MARC• Baltimore Redline stations
• Silver Spring Metro• New Carrollton Metro• Branch Avenue Metro• Bethesda Metro• White Flint Metro• Wheaton Metro• Twinbrook Metro• Rockville Town Center/ Metro• Naylor Road Metro• West Hyattsville Metro• College Park Metro• Largo Metro• Prince George’s Plaza Metro• Morgan Boulevard Metro• Glenmont Metro
• 28 acre State-owned parcel in Mid-town Baltimore• One million square feet of obsolete State office space• Light Rail, Metro, Amtrak, MARC• GOAL: Replace State office space while creating a mixed-use TOD
State ApprovalsRFQ: Request For Qualifications MOU: Memorandum of UnderstandingIDA: Interim Development Agreement LOI: Letter of IntentMDA: Master Development Agreement Ground LeasesState Space Leases
DateMarch 2006June 2007 Dec 2007 Aug 2008June 2009 July 2010 Dec 2010