High Point Park Case Challenge The Vertical Crawl where Pittsburgh’s contemporary meets culture.. Steven Meersman Lavanya Shaji Daniel Brackley Jess Martin Abhay Doshi
Dec 16, 2015
High Point Park Case Challenge
The Vertical Crawl where Pittsburgh’s
contemporary meets culture..
Steven Meersman Lavanya Shaji
Daniel BrackleyJess Martin
Abhay Doshi
Current Situation
One acre of unused outdoor space looms 840ft above Pittsburgh making the top of the US Steel
Tower the tallest point in the city. In a city known for its spectacular evening views and
green initiatives, this space poses an excellent place for the development of an environmentally friendly, self sustaining, and publicly accessible
observation point.
Proposal
• Development of a contemporary designed facility that includes indoor and outdoor space that showcases Pittsburgh.– Indoor structure allows flexibility for weather
conditions and year round accessibility– External elevators minimize hindrance to
building tenants and local residents
Vision
• Development of a contemporary designed facility that includes indoor and outdoor space that showcases Pittsburgh.– Indoor structure allows flexibility for weather
conditions and year round accessibility– External elevators minimize hindrance to
building tenants and local residents
Mission
• Our mission is to host a centralized point for Pittsburgh tourists to start their visit and
locals with an everyday indoor and outdoor space. Our center provides an interactive
experience through outdoor gardens, local art and food while also providing a wealth of
information about Pittsburgh.
External Elevators
Educational & Events
The Award Winning View
Pittsburgh Cuisine
Adaptable
Pittsburgh Art & Culture
Features Activities
The Vertical Crawl
Stained Glass from Pittsburgh Glass center
Elevator Gallery
Interactive WindowsCentral
Space/Gallery
Café/Restaurant
Hydroponics
Peregrine Falcon
Market Analysis• Strategy : Partner and
Prosper
• Key Partnerships:– Restaurants: Pamela’s
Primati Brothers– Tour guides: Molly’s
Trolleys, Ducky tours– Galleries and Museums– Décor: Pittsburgh Glass
Center
The Competition• Places with a view in the
city:– Mt. Washington : Nighttime view from Mount
Washington in Pittsburgh was voted 2nd most beautiful place in America by USA WEEKEND's Annual Travel Report
• Airport
– Free activities around the city such as Schenley Park, Museums etc.
Green Technologies
• Pollution Technology
• Rainwater Harvesting– Grey Water
• Bio Degradable Materials
• Indoor Fresh Air
• Electricity– Wind Turbines– Translucent PV
Panels– Thermo Energy
Services – Revenue Source1. Main Services
Visitors Center Observation
Deck Museum Garden
2. Secondary Services Event Center Restaurant/
Café Lounge
Financial Analysis
TicketsSegmentation
strategy to extract surplus
observation deck, total package,
club, commission
Advertising & Rent
Sponsored spaces by
local companies,
museums etc
Restaurants Events
Utility SavingsDepend on level of
technology @ implementation
10% of utility bills
Merchandise
32%
59%
8%
1%$7M
Revenue after
5 years
Funding • The Heinz Endowments
• The Richard King Mellon Foundation
• The Pittsburgh Foundation
• Alcoa Foundation
• Pennsylvania Department of Conservation and Natural Resources (DCNR)
“In addition to the $2.5 billion already invested in downtown riverfront development over the past five years, some $400 million in new commercial development is scheduled. Add to that an already major influx of more than 3,200 new Downtown residents. They will all need outdoor space where they can spend their time and money.” – Economic Development, www.pointstatepark.com
Benefits to the Pittsburgh Community– Attracts tourists to
Pittsburgh• Central point for all
attractions• Interactive experience• Showcases the art
– Educational• Case competitions• Robotic exhibitions• Monumental History
highlights of Pittsburgh– Role model
• Green innovation• Utilizing empty spaces• Propagates local
businesses
Recovery of Urban Peregrine Falcons
• The peregrine falcons in Pittsburgh used to be the only peregrines known to breed in the western part of Pennsylvania.
• Groups :– The National Aviary – Western Pennsylvania Conservancy – The Pennsylvania Game
Commission
• Live streaming from web cam of the peregrine falcon nest to wide screens in the observatory
Proposed BenefitsOur Plan
– External Green Elevators• Outside of building• Unique• Green Role Model
– Green Park Area• Location and view• All-weather• Attractive outdoors
area
– Gallery• Advertising/Information• Art community• Flexible space for
private parties, events, etc.
Potential Risks& MitigationRisks Mitigation
General decrease in tourist sector
• Diversification• Growing Economy• Adapt to local residents
Residents disrupted• Financial incentives• Access Perks• Business tabs/discounts
Permit Issues
• Studies and Research in o Legal o Safetyo Environmental o Public o Political support
“Places become what people dream”- Teresa Heinz
Appendix
Financial Sustainability
Funding – Green– Educational– Pittsburgh Landmark– Historical– Innovative
Revenue streams– Restaurant/Bar– Entrance Fees– Event Access– Advertising– Leasing– Merchandise Business Partners– VisitPittsburgh.pa– CMU and PITT cooperation– Gallery Crawl/Cultural Trust
Incentives for building owners– Tab for Restaurant, Bar– Business Meetings/Events– Advertising Space
Appendix 1: Financial Forecast
growth 20% 15% 10% 10% 10%%revenue 0 1 2 3 4 5 6
revenue 4,994,376.00$ 5,538,776.00$ 5,993,136.00$ 6,386,472.00$ 6,810,804.60$ 7,268,816.61$ #tickets 80000 96000 110400 121440 133584 146942.4-tickets breakup 32.68% 1,632,000.00$ 1,958,400.00$ 2,252,160.00$ 2,477,376.00$ 2,725,113.60$ 2,997,624.96$ ----elevator 40% 9.61% 480,000.00$ 576,000.00$ 662,400.00$ 728,640.00$ 801,504.00$ 881,654.40$ ----total package 50% 20.02% 1,000,000.00$ 1,200,000.00$ 1,380,000.00$ 1,518,000.00$ 1,669,800.00$ 1,836,780.00$ ----club 10% 2.40% 120,000.00$ 144,000.00$ 165,600.00$ 182,160.00$ 200,376.00$ 220,413.60$ ----commission 2% 0.64% 32,000.00$ 38,400.00$ 44,160.00$ 48,576.00$ 53,433.60$ 58,776.96$ -merchandise 0.20% 10,000.00$ 12,000.00$ 13,800.00$ 15,180.00$ 16,698.00$ 18,367.80$ -advertising 0.60% 30,000.00$ 33,000.00$ 34,650.00$ 36,382.50$ 38,201.63$ 40,111.71$ -utility savings 392,376.00$ 392,376.00$ 392,376.00$ 392,376.00$ 392,376.00$ 392,376.00$
5% 5% 5% 5% 5%-rent 58.67% 2,930,000.00$ 3,143,000.00$ 3,300,150.00$ 3,465,157.50$ 3,638,415.38$ 3,820,336.14$ ----restaurant 1,600,000.00$ 1,680,000.00$ 1,764,000.00$ 1,852,200.00$ 1,944,810.00$ 2,042,050.50$
10.0% 5.0% 5.0% 5.0% 5.0%----events 665,000.00$ 731,500.00$ 768,075.00$ 806,478.75$ 846,802.69$ 889,142.82$ ----club 665,000.00$ 731,500.00$ 768,075.00$ 806,478.75$ 846,802.69$ 889,142.82$
Appendix 1: Space Utilizationspace utilization floor floor 1 floor 2
main hall 1,2 4000 3000gallery 1 1 9000 gallery 2 1 4000 gallery 3 1 4000
bar 1700 1200souvenir shop 1700
restaurant 2 8000observatory deck 2 6000
walkways, etc 151.8201973 213.87
total space [sq ft] 44000
equilateral triangle side [ft] 1.7320508080.25 318.7689561
subtract safety distance from edge 30000% 38971.14317inside space 70% 27279.80022usable space 1st floor 90% 24551.8202usable space 2nd floor 75% 18413.86515 42965.68535
market size for ticketslocals 2.4Mstudents 0.15Mtourists 3.9M 6.45M
Financial Analysis
TicketsSegmentation strategy to
extract surplusobservation deck, total
package, club, commission
Advertising & RentSponsored spaces
by local companies, musea, etc
Restaurants Events
Utility SavingsDepend on level of
technology @ implementation
10% of utility bills
Merchandise
32%
59%
8%
1%
$7M Revenue
after 5 years
Revenue Mix growth 20% 15% 10% 10% %revenue 0 1 2 3 4 5revenue $ 4,994,376.00 $ 5,506,776.00 $ 5,926,576.00 $ 6,282,635.20 $ 6,666,808.70 #tickets 80000 96000 110400 121440 133584-tickets breakup 32.68% $ 1,632,000.00 $ 1,958,400.00 $ 2,252,160.00 $ 2,477,376.00 $ 2,725,113.60 ----elevator 40% 9.61% $ 480,000.00 $ 576,000.00 $ 662,400.00 $ 728,640.00 $ 801,504.00 ----total package 50% 20.02% $ 1,000,000.00 $ 1,200,000.00 $ 1,380,000.00 $ 1,518,000.00 $ 1,669,800.00 ----club 10% 2.40% $ 120,000.00 $ 144,000.00 $ 165,600.00 $ 182,160.00 $ 200,376.00 ----commission 2% 0.64% $ 32,000.00 $ 38,400.00 $ 44,160.00 $ 48,576.00 $ 53,433.60 -merchandise 0.20% $ 10,000.00 $ 12,000.00 $ 13,800.00 $ 15,180.00 $ 16,698.00 -advertising 0.60% $ 30,000.00 $ 33,000.00 $ 34,650.00 $ 36,382.50 $ 38,201.63 -utility savings 7.86% $ 392,376.00 $ 392,376.00 $ 392,376.00 $ 392,376.00 $ 392,376.00 3% 3% 3% 3%-rent 58.67% $ 2,930,000.00 $ 3,111,000.00 $ 3,233,590.00 $ 3,361,320.70 $ 3,494,419.47 ----restaurant $ 1,600,000.00 $ 1,648,000.00 $ 1,697,440.00 $ 1,748,363.20 $ 1,800,814.10 10.0% 5.0% 5.0% 5.0%----events $ 665,000.00 $ 731,500.00 $ 768,075.00 $ 806,478.75 $ 846,802.69 ----club $ 665,000.00 $ 731,500.00 $ 768,075.00 $ 806,478.75 $ 846,802.69
Income statement 0 1 2 3 4 5 6 7 8
-Revenues $ - $ - $ - $ 4.99 $ 5.51 $ 5.93 $ 6.28 $ 6.67 $ 7.08
-Costs $ - $ - $ - $(2.38) $(2.45) $(2.53) $(2.60) $(2.68) $(2.76)
--rent $ - $ - $ - $(1.30) $(1.34) $(1.38) $(1.42) $(1.46) $(1.51)
--maintenance $ - $ - $ - $(0.13) $(0.13) $(0.14) $(0.14) $(0.15) $(0.15)
--labour $ - $ - $ - $(0.95) $(0.98) $(1.01) $(1.04) $(1.07) $(1.10)
--investment $(20.00) $(20.00) $(6.00) $ - $ - $ - $ - $ - $ -
-Income w/ rent $(20.00) $(20.00) $(6.00) $ 2.61 $ 3.05 $ 3.40 $ 3.68 $ 3.99 $ 4.32
-Income w/o rent $(20.00) $(20.00) $(6.00) $ 3.91 $ 4.39 $ 4.78 $ 5.10 $ 5.45 $ 5.83
-NPV w/0 inv $ 15.73
-NPV w/ inv $(23.49)
@ inflation = 3%, discount = 10%
Appendix III: space utilizationspace utilization floor floor 1 floor 2
main hall 1,2 4000 3000
gallery 1 1 9000
gallery 2 1 4000
gallery 3 1 4000
bar 1700 1200
souvenir shop 1700
restaurant 2 8000
observatory deck 2 6000
walkways, etc 151.8202 213.87
total space [sq ft];
44000equilateral triangle side [ft]
1.7320508080.25 318.7689561 subtract safety distance from edge 30000% 38971.14317inside space 70% 27279.80022usable space 1st floor 90% 24551.8202usable space 2nd floor 75% 18413.86515 42965.68535
rent $/sq ft sq ft annual rentin building 30 42965.68535 $ 1,288,970.56 top building 200 8000 $ 1,600,000.00 avg p/meal 40 # meals $ 40,000.00 days/year 280 meals/day 142.8571429
event 4000sq ft 8sq ft / person 500# people 7$/drink 10cover charge 4drinks/personoccupancy 0.7 $ 3,500.00 $ 9,800.00 total $ 13,300.00 # nights/week 2 weeks 50 $ 1,330,000.00 %rent 50% total rent $ 665,000.00
Foundations/Organizations who sponsor off-site exhibitions
• National Arts Programhttp://www.nationalartsprogram.org/-sponsors a ton of exhibitions in airports throughout the country
Pennsylvania Council on the Arts Partners in the Arts Granthttp://pacouncilonthearts.org/pca.cfm?id=6&level=Third-Goal is to expand access and visibility of the arts in PA
GPAC Artist Opportunity Granthttp://www.pittsburghartscouncil.org/artistoppgrant.htm-Artist has to apply directly, but designed to increase new opportunities to display (like your project)
Sprout Fundhttp://www.sproutfund.org/publicart/-Focus on the Pittsburgh region, new opportunities for the public to experience art. They do small projects and grants, but also a good option for individuals and small organizations to get funding for a public project
Visit Pittsburghhttp://www.visitpittsburgh.com/essentials/visual-arts/-They were really involved with the art program at the airport, might be a good overall sponsor for your project.