Team HK: Final Presentation

GUDC HONG KONG

STANFORD CAMPUS IN HONG KONG PROJECT (CHKP)

STANFORD UNIVERSITYLJUBLJANA UNIVERSITY

TEAM MEMBERSSam WrightAndy LiTheo LimJakob LozejDominik Košak MENTORSDerek OuyangSinan Mihelčič

HONG KONG TEAM

STANFORD UNIVERSITY

UNIVERSITY OF LJUBLJANA

GUDCHONG KONG

INTRODUCTION

WHAT? Stanford technological campus proposal WHERE? Search for the most suitable site in Hong Kong HOW? Via internet resources, online interaction, university professors and mentors WHY? To learn designing and making decisions for urban development,To use strategic thinking as a key for successful process in the project,To understand the decision-impact process based on gathered information

MISSION STATEMENT

The Stanford Center in Hong Kong is a not-for-profit subsidiary of Stanford University headquartered in Hong Kong SAR, China, established in 2005 as an overseas office to facilitate Stanford University’s presence in the rapidly growing East Asia Region. Along with Stanford Centers in Beijing, China, and Kyoto, Japan, The Stanford Center in Hong Kong is concerned with supporting and cultivating academic and political relations with major East Asian institutions. In addition, the Stanford Center in Hong Kong has a particular focus on networking with local businesses and corporations, especially in the areas of engineering and technology. As part of its overall mission, The Stanford Center in Hong Kong is developing a new project, the Campus Hong Kong Project (CHKP), which has three main goals: TO ESTABLISH a physical campus in the city of Hong Kong which introduces undergraduate and graduate-level education in the technology sector, namely in sciences, engineering, and business; TO ENCOURAGE closer academic, social, business, and cultural ties between the University and the rapidly growing East Asia Region; TO ENGENDER a mutually beneficial interaction space for the people of Hong Kong and Stanford affliates around the world.

ORDER OF PRESENTATION

1. Introduction 2. Context & Background 3. Site Selection 4. Site Analysis 5. Concepts 6. Financing 7. Public Relations & Outreach 8. Future Directions

INTRODUCTION

HONG KONG

CHINA

HONG KONG

CHINA

INTRODUCTION

HONG KONG

CHINA

INTRODUCTION

LANTAU

NEW TERRITORIES

HONG KONG ISLAND

KOWLOON

MAINLAND CHINA

OUTLYING ISLANDS

Official name: Hong Kong Special Administrative Region of the People's Republic of ChinaOfficial languages: Chinese, EnglishArea: land - 1,104 km² (426 sq mi), water - 50 km² (19 sq mi)Population: 7,061,200 (2010), 6,480 km² / 16,576/sq miTime zone: HKT (UTC+8)Currency: Hong Kong dollarHuman development index (HDI): 0.898 (very high)

GENERAL INFORMATION

Current Hong Kong was first incorporated into China during the Qin Dynasty and largely remained under Chinese rule until 1841 during the Qing Dynasty. Hong Kong became a colony of the British Empire after the First Opium War (1839–42). Originally confined to Hong Kong Island, the colony's boundaries were extended in stages to the Kowloon Peninsula in 1860 and then the New Territories in 1898. It was occupied by Japan during the Pacific War, after which the British resumed control until 1997, when China resumed sovereignty.

Hong Kong in 1843 (English colonial area) seen from Kowloon peninsula.

BRIEF HISTORY

HONG KONG ISLAND (Central, East Coast, South Coast)Hong Kong Island is the site of the original British settlement. Most of Hong Kong's highest skyscrapers and the financial centre can be found here, including its famous skyline along the northern coastline. Hong Kong's financial centre, shopping. Overall, Hong Kong Island is more modern and wealthy than the other areas of Hong Kong.

KOWLOONThis peninsula jutting south towards Hong Kong Island from the Asian continent is the most populous area in Hong Kong and at one time it was the most densely populated place in the world. Today, it offers a chaotic mix of malls, street markets and residential tenements.

NEW TERRITORIESNamed by British officials when leased from the Chinese government in 1898, the New Territories contain a curious mix of small farms, villages, industrial installations, mountainous country parks and towns that have populations the size of some cities.

LANTAUThe largest of the Outlying Islands, twice the size of Hong Kong Island and famous for its high peaks, wild landscapes, great beaches and the airport, which has a significant role in Hong Kong's economy.

OUTLYING ISLANDSWell-known weekend destinations for the locals, the Outlying Islands are most of the islands surrounding Hong Kong Island. They range from significant population centers to rocks poking out of the sea.

DISTRICTS

Average age is 41.7 years and life expectancy is 82.9 years.

EthnicityThe majority of Hong Kongers of Chinese descent trace their ancestry to various parts of Southern China: the Guangzhou area, Sze Yap, Chaoshan, Fujian and Shanghai.

SOCIAL REPORTPopulation by Age

0-14 15-24 25-34 35-44 45-54 55-64 65+

Percentage of Population

13.5% 13.1% 15.3% 18.1% 17.5% 10% 12.5%

Total Male Population

482,500 445,400 462,000 547,000 594,200 353,500 339,500

Total Female Population

452,100 459,300 592,000 698,400 613,400 337,400 464,800

Population by EthnicityChinese 95%Filipino 2.1%Indonesian 0.8%Westerners 0.7%Indian 0.3%Other 1.1%

Labour Force Participation RateThe size of the total labor force in Hong Kong for 2010 was 3.65 million. This represented 59.7 per cent of the total population aged 15 and over. The distribution of the employed population in Hong Kong by occupation for 2010 was as follows:

Higher EducationMain higher education institutions in Hong Kong are The University of Hong Kong (21,500 students), The Hong Kong University of Science and Technology (8,000 students), Chinese University of Hong Kong (14,300 students), Hong Kong Polytechnic University (28,300 students).

Education Attainment 2005 2010No Schooling / Pre-Primary 6.4% 5.4%Primary 19.3% 17%Secondary 51.5% 52.3%Post-Secondary 22.8% 25.4%

Occupation Distribution 2005Managers and Administrators 9.7%Professionals 6.5%Associate Professionals 19.3%Clerks 16.1%Service Workers and Shop Sales Workers

16%

Craft and Related Workers 7.1%Plant and Machine Operators and Assemblers

5.8%

Elementary Occupations 19.4%

SOCIAL REPORT

Reclaimed land in Hong Kong (yellow).

● 7,650 Skyscrapers● Lack of buildable area has created very dense construction● Many developed areas are on top of Reclaimed Land● Land Reclamation dates back to Han Dynasty (206 BCE – 9CE)● Many projects are in development on Hong Kong Island and West Kowloon● The closure of Kai Tak Airport has lifted height restrictions, allowing more high rises to be built in West Kowloon

CONSTRUCTION REPORT

Salient Facts and Figures: ● Hong Kong has just over 1100 sq km of land controlled by a dedicated council● 40% of usable land is dedicated to conservation● 67% of land is still undeveloped● Permits to build are easier to obtain in the New Territories; harder to obtain in Kowloon; nearly impossible to obtain for HK island.● Most development is happening on new lands in the New Territories or reclaimed land in Kowloon.● Most new industries and universities are located in the New Territories. A spread-out American-style campus is possible in the New Territories.

A spread-out American-style campus is possible in the New Territories cf. China University of HK near Fo Tan, below

ZONING AND PARKS

PROPOSED SITES MAP1) KAI TAK AIRPORT, KOWLOON2) WEST KOWLOON, KOWLOON3) AUSTIN, KOWLOON

4) FO TAN, NEW TERRITORIES5) TUEN MUN, NEW TERRITORIES

1) KAI TAK AIRPORT, KOWLOON

2) WEST KOWLOON, KOWLOON

3) AUSTIN, KOWLOON

4) FO TAN, NEW TERRITORIES

5) TUEN MUN, NEW TERRITORIES

1) DECISION MATRIX CRITERIA

Decision Matrix Explanation: - Each criteria and sub-criteria is evaluated in 1-5 tier system (1 - worst, 5 - best)- Each sub-criteria is differently weighted, based on the importance of the subject- All provided data is objective and was found on the Internet or other authentic sources- Decision matrix also includes subjective data, provided by the locals

Economic - 20% Transportation - 20% Construction - 15% Parks and Zoning - 10% Sustainability and Environment - 15% Political and Neighborhood Feasibility - 20%

ECONOMIC DECISION MATRIX

Site / Subject Construction Costs

Land prices

Financial feasibility

Weighted total

Kai Tak Airport 3 2 5 3.3

Austin 3 2 5 3.3

West Kowloon 3 2 5 3.3

Fo Tan 4 4 4 4

Tuen Mun 4 4 4 4

Economic - 20 % 1. Construction Cost - 33.3% 2. Land Prices - 33.3% 3. Financial Feasibility - 33.3%

TRANSPORTATION DECISION MATRIX

Travel

Time to Airport

Travel Time to Downtown

Travel Time to Mainland

China

Distance to Closest MTR

Station

Frequency of MTR Transit

Number of MTR Lines

near the Site

Weighted Total

Rounded Weighted

Total

Kai Tak Airport 1 3 4 2 5 3 2.95 3

West Kowloon 3 5 5 5 3 5 4.6 4.6

Austin 2 3 5 4 3 5 4.1 4.1

Fo Tan 1 2 3 5 5 3 3.65 3.7Tuen Mun 1 1 1 2 4 2 2.05 2

Transportation - 20% 1. Travel Time to Airport - 5% 2. Travel Time to Downtown HK - 15% 3. Travel Time to China Mainland Travel Hub - 5% 4. Distance to Closest MTR station - 30% 5. Frequency of MTR Trains - 15% 6. Number of MTR Lines near the Site - 30%

CONSTRUCTION DECISION MATRIX

Existing

Infrastructure (Water)

Existing Infrastructure

(Roads)

Existing Infrastructure (Electricity)

Land Quality

Typhoon Flooding Danger

Landslide Danger

Casting Shadow

s

Traffic Noise

Weighted Total

Rounded Weighted

Total

Kai Tak Airport 3 3 5 5 3 5 5 4 4.25 4.3

West Kowloon 3 3 4 5 1 5 4 3 3.7 3.7

Austin 0 0 5 5 2 5 4 2 3.15 3.2

Fo Tan 0 0 2 3 5 3 5 5 3 3

Tuen Mun 0 0 1 3 5 4 5 5 3 3

Construction - 15 % 1. Existing Infrastructure (water 33.3%, electricity 33.3%, roads 33.3%) - 30 % 2. Land Quality - 25 % 3. Typhoon Flooding Danger - 10 % 4. Landslide Danger - 10 % 5. Casting Shadows - 10 % 6. Traffic Noise - 15 %

PARKS AND ZONING MATRIX

Site / subject measurement

% Park Space1 mile radius

% Park Space5 mile radius

Official Land Utilization

Distance to Edge of City

(m)

Distance to shore

Kai Tak airport

0

2.1

Residential

2500 m

0m

West Kowloon

4.8

5.1

Commercial

6500 m

200 m

Austin

4.9

4.8

Vacant

7000 m

250 m

Fo Tan

18.2%

16.0%

Open Space

500 m

8500 m

Tuen Mun

15.3%

14.9%

Commercial

500 m

6700 m

% of Total 20% 30% N/A 30% 20%

Parks and Zoning - 10%

SUSTAINABILITY AND ENVIRONMENT MATRIX

Site / subject measurement

H2O2/HNO3 (Ave. 2007)

O3 Concentration (Ave. 2007)

Kai Tak Airport 22.4 330 micrograms/cubic meter

West Kowloon 19.5 290

Austin 27.4 320

Fo Tan 8.8 200

Tuen Mun 16.2 250

% of Total 60% 40%

Sustainability and Environment - 15%

POLITICAL AND NEIGHBORHOOD FEASIBILITY MATRIX

Political and Neighborhood Feasibility - 20%

FINAL DECISION MATRIX

Current Weighting:

Economic 20%

Transportation 20%

Construction 15%

Parks & Zoning 10%

Environment & Sustainability 15%

Politics & Neighborhood Feasibility 20%

Economic Transportation Construction Parks & Zoning

Environment & Sustainability

Political & Neighborhood

FeasibilityTotal

Kai Tak Airport 3.3 3 4.3 2 2.5 3.3 3.1

West Kowloon 3.3 4.6 3.7 2.3 2 3.8 3.4

Austin 3.3 4.1 3.1 2.2 1 4.1 3.1

Fo Tan 4 3.7 3 3 5 2.3 3.5

Tuen Mun 4 2.1 3 4 4.1 2.3 3.1

SELECTED SITEWEST KOWLOON, KOWLOON

SELECTED SITEWEST KOWLOON, KOWLOON- Highly Urbanised Area- Waterfront Proximity- Well-integrated in the City

SITE ANALYSIS - built / void

SITE ANALYSIS - tissue

SITE ANALYSIS - typologies

SITE ANALYSIS – structure size

SITE ANALYSIS - height dominants

SITE ANALYSIS - traffic

SITE ANALYSIS – geometry and characteristics of space

SITE ANALYSIS – construction

- coastal land reclamation consists of two layers: highly permeable layer consisting of crushed rock fragments underneath a less permeable layer (sand)- land reclamation increases water level- deep foundations have a profound impact on underground water flow● building on reclaimed land demands ground improvement and

constant maintenance (drainages) – Source: Preliminary assessment of the impacts of deep foundations and land reclamation on groundwater flow in a coastal area in Hong Kong, China

ASCERTAINMENTS:● LESS CONTACT AREA WITH GROUND = LOWER COSTS FOR

CONSTRUCTION AND MAINTAINING● BUILDING ON RECLAIMED LAND DEMANDS AT LEAST 20 % MORE

INVESTMENT THAN BUILDING ON ORDINARY LAND

SITE VIEWS – union square

SITE ANALYSIS – harbour city

SITE ANALYSIS – harbour city

SITE ANALYSIS – WK waterfront promenade

CAMPUS PROGRAMMATIC SCHEME

Common Facilities

Student Housing

Technical Facilities

Laboratories Building

Technical Incubator Building

Business School Building

Engineering School Building

168,000 ft2

30,000 ft2

20,000 ft2

10,000 ft2

15,000 ft2

12,500 ft2

12,500 ft2

CAMPUS VOLUMETRIC PROGRAM

Common Facilities

Student Housing

Technical Facilities

Laboratories Building

Technical Incubator Building

Business School Building

Engineering School Building13F

10F

50F

7F9F9F 11F

CAMPUS PROGRAMMATIC SCHEME

ENGINEERING SCHOOL + LABORATORY BUILDING – specialized in construction techniques and innovative approaches to construction and materials which will contribute to local developement TECHNOLOGICAL INCUBATOR – making collaborative environment with local companies and young enterprises which will boost approaching to the market BUSINESS SCHOOL – exploring new ways of fostering an entrepreneurship community STUDENT HOUSING – providing residential space for 800 students COMMON FACILITIES – providing comfortable and healthy environment for staff, students and locals OPEN SPACES – use of existing green space on the western side (peninsula)

CAMPUS CONCEPT 1

CAMPUS CONCEPT 1

CAMPUS CONCEPT 1

CAMPUS CONCEPT 1

CAMPUS CONCEPT 2

CAMPUS CONCEPT 2

FINAL CONCEPT DETAILS - Concept 1

FINAL CONCEPT DETAILS - Concept 1 (Phase 2)

FINAL CONCEPT DETAILS - Concept 2

CONCEPT DECISION FACTORS

Concept 1 Concept 2

Construction Better

Views Better

Access Better

Building Heights Better

Potential for Growth Better

Distance to Green Spaces Better

Plot Size-Cost Better

Feng Shui Better

Overall Better

FINANCE

Minimize Risks

Mitigate Costs

1. Buy the land

2. Partner with a local developer

3. Make a pre-emption agreement with the city of Hong Kong

Principal sources of data used in the cost estimation model :

- Hong Kong's Rating and Valuation Department

- Hong Kong's land sales in 2009-2011

- Hong Kong Census and Statistics

Phasing Plan & Timeline Schedule

FINANCE

Laboratories building

15,000 sq ft $17.5 mil.

Engineering building

30,000 sq ft $26 mil.

FINANCE

Student Housing

170,000 sq ft $115.5 mil.

Common Facilities

12,500 sq ft $8.25 mil.

FINANCE

Best-case scenario

Worst-case scenario

Phase 1 scenarios:

-Signed pre-emption agreement-Differences in cultures won‘t represent a bigger obstacle-Equivalent sponsor funding to Stanford CA-Popularity among students

-Unavailability of land for growth-Local disapproval-Cultural barrier-Lack of sponsor funding-Unpopularity among students

Predicted risks

Selling all the facilities with profit.

Continue the project to phase 2 as planned.

Rent the facilities until it is possible to buy aditional land.

Predicted scenarios in year 2021

FINANCE

Business as Usual

Technological incubator

10,000 sq ft $9 mil.

Business school building

20,000 sq ft $17.25 mil.

FINANCE

FINANCE

Technical Facilities

15,000 sq ft $10 mil.

Land Purchase

32,300 sq ft $9.5 mil.

Phase 2 scenarios:

Best-case scenario

Worst-case scenario

-Stanford University is a key element of HK‘s education system- Differences in cultures won‘t rapresent a bigger obstacle-Equivalent sponsor funding to Stanford CA-Popularity among students

- Non-acceptance from local companies-Local disapproval-Cultural barrier-Lack of sponsor funding

Predicted risks

In case of unpredictable events facilities will be sold with loss.

The project is a enormous success. Revenues and donations are higher than predicted.

School activities will pursue normally. Stanford will need to foster relationship with surrounding companies.

Predicted scenarios in year 2028

FINANCE

Business as Usual

All Facilities and Invested Capital (IC) Engineering building 30,000 sq ft $26 mil.

Laboratories building 15,000 sq ft $17.5 mil.

Student housing 170,000 sq ft $115.5 mil.

Common facilities 12,500 sq ft $8.25 mil.

Business school 20,000 sq ft $17.25 mil.

Tech incubator 10,000 sq ft $9 mil.

Technical facilities 15,000 sq ft $10 mil.

Surrounding land 32,300 sq ft $9.5 mil.

Total IC $213 mil.

FINANCE

How to justify the higher investment compared to other sites in Hong Kong? Is it justifiable at all?

Justification:- proximity of corporations and companies- prestigious location- closeness to all needed infrastructure- facilitation of the exit strategy

FINANCE

DEVELOPER LIAISON

Terms of Agreement: 1. Stanford is the owner of the land, SHKP is the main developer. 2. SHKP develops campus and other properties together with Stanford as a main stakeholder. 3. SHKP will take full profit from any non university-related residential, retail, and office tower units. 4. SHKP and Stanford will jointly manage architectural design and character of the entire development. The two areas of the project should be integrated to a certain extent, but the Stanford area should have more of the feel of a campus. 5. SHKP will profit from proximity and prestige to leverage higher profits on their development units. 6. Stanford and SHKP will agree upon further terms regarding compensation through annuities or other means.

Sun Hung Kai Properties (SHKP)

PUBLIC OUTREACH AND INVOLVEMENT

Inform and Engage the Public Public Information Meetings -Union Square-Docks and Harbor Development-HKU, other universities-West Kowloon Local contribution to project -Public art -Architecture Competition-Information Booths in Local Malls, MTR Stations

Information Media Channels -Twitter (@StanfordinHK)-Facebook (StanfordinHK)-Newspaper and TV ads

POLITICS, PERMITTING AND PROCESS

We will consult with SHKP to guide us through the permitting process. We will need to gain permits from the following authorities: HK Planning and Development BoardHK Department of EducationHK Buildings DepartmentHK Environmental Protection DepartmentWest Kowloon District CouncilUnion City District Council In addition, we will collaborate with the following groups to ensure social and cultural integration of our project: Society for Community Organization (SoCO)HK Heritage Studies and Promotion OrganizationMonte Jade Science Technology AssociationHong Kong Electronics and Technology Association (HKETA)and others

FUTURE DIRECTIONS

1. Develop Institutional and Developer Relations 2. Obtain Stanford-side Approvals and Final Program Requirements 3. Detailed Architectural and Schematic Design 4. Carry Out PR and Outreach Plan 5. Environmental Review Process

CONCLUSION