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A-1
List of Appendices
A Letter of Engagement
B 30 Yr Historical Rates of Change (Hotel)
C Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
D Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
E Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
F Occupancies amp ADRs All MA Hotels 05 - 07
G Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
H Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
I Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
J Financial Assumptions Made by HII (Hotel)
K HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
L HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
M Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
N Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
O Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
P Hotel Break-Even (Realistic Scenario)
Q Hotel Break-Even (Optimistic Scenario)
R Hotel Break-Even (Pessimistic Scenario)
S Hotel Development Costs at Various Grade Levels
T HII Hotel 10-Year Cash Flow Pro Forma
U HII Hotel Cash Flow Supportable DebtEquity Projections
V HII Hotel Capital Costs Financial Summary
W LIFESTYLE MARKET ANALYSTreg
W-1 LMAreg
All Target DMAs
W-2 LMAreg
Boston (Manchester NH) DMA
W-3 LMAreg
Hartford amp New Haven CT DMA
W-4 LMAreg
Providence RI-New Bedford MA DMA
W-5 LMAreg
Springfield-Holyoke MA DMA
W-6 LMAreg
New York NY DMA (Fairfield County CT Subset)
X MOTT Strategic Market Research Findings
Y Vacation Spa Locations amp Area Resorts
Z Pioneer Valley Real Estate Properties
AA Former MA State School Property Redevelopments
BB Alternative Development Suggestions
CC Potential Development Partners
DD BSS SWOT
EE Expert Interview Notes
FF Bibliography
A-2
Appendix A
Letter of Engagement
University of Massachusetts
Isenberg School of Management
Letter of Engagement
February 21 2008
William Terry
Belchertown Economic Development Industrial Corporation
PO Box 670
Belchertown MA 01007
Dear Mr Terry
The purpose of this letter is to verify that we intend to pursue the Isenberg School of
Management Practicum Project that we discussed with you on our recent visit We also want to
reiterate our understanding of the project we are to undertake and the major tasks related to
successful completion of this assignment Finally we would like to outline the initial information
and material that we expect will be needed to complete the project assignment We would also
like to bring to your attention the following statement concerning the nature of the student
consulting project that we are undertaking
This consulting project is possible through an agreement with your company and the Isenberg
School of Management at the University
of Massachusetts at Amherst The final presentation and report that will be presented to you in
no way reflects the views or opinions of any faculty member affiliated with the Isenberg school
of Management Rather it will contain the analysis observations research and
recommendations of the student team fro the Isenberg School of Management MBA program
that has been assigned to your company Our faculty advisorrsquos role is that of an administrator and
grader of our work and is not a member of the consulting team
1 Below is the project as the Isenberg MBA team understands it
The team will review the existing development plan for a mixed-use complex on the former
Belchertown State School Property and provide an analysis of its general feasibility This may
result in one of three recommendations
a The plan as is after minor changes and updates should be considered a ―go and the process of
pursuing a master developer should resume shortly
b The plan should be considered a ―go but only after significant changes to the plan This may
entail a phased implementation approach a revised combination of building elements or some
other alternative
A-3
c The plan as is should be considered a ―no go and alternative uses for the land should be
explored
The team will offer supporting evidence for whichever of the recommendations it ultimately
provides It will strongly consider the planrsquos feasibility in the eyes of master developers and
investors
2 Based on our discussions with you on February 11 2008 and February 20 2008 we intend to
accomplish the following tasks while completing the consulting assignment
a Review the existing feasibility study prepared by Hunter Interests to identify areas of potential
infeasibility as judged by the team Explore these sections of the study in greater detail and draw
conclusions as to whether they affect the feasibility of the overall plan
b Grow aware of significant changes (ie new hotel development)mdashand likely impending changes
(ie casino)mdashto the surrounding area and determine if they significantly affect the feasibility of
the existing plan
c Engage relevant experts and stakeholders to judge overall concept feasibility Experts and
stakeholders may include any of developers investors architects hotel and spa owners or staff
state agencies UMass educators with relevant knowledge EDIC board members outspoken
critics of the existing plan and other parties with useful insight
In performing each of these tasks the University of Massachusetts Isenberg MBA team will
consider each of the three possible recommendations identified in the project objective If areas
of infeasibility are identified the team will seek to determine alternative solutions as time
permits
We expect to generate useful recommendations as a result of completing the above tasks Most
importantly we hope that you find these recommendations to be actionable and to contribute to
the continued performance of the Belchertown Economic Development Industrial Corporation
(EDIC) Our goal is to provide you with a final written report by May 8 2008 and to have a
formal presentation of these results and recommendations by May 16 2008
Finally thank you for providing us with this experience We look forward to working with you
on the successful completion of this assignment
Sincerely
William Terry ____________________
Katherine Bloor ____________________
Pianpian Huang ____________________
Kevin Price ____________________
Ielyzaveta Zhuravska ___________________
A-4
Appendix B
30 Yr Historical Rates of Change (Hotel)
Historical Rates of Change 1978 ndash 2007
Source Smith Travel Research Bureau of Labor Statistics
Source httpwwwhospitalitynetorgnews1540003204035296html
A-5
Appendix C
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Realistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 04 045 05 055 055 055 055 055 055 055 055 055 055 055 055
Annual Occupied Room Nights 21900 24638 27375 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $3394500
$4005934
$4669139
$5387719 $5651718 $5928652 $6219156 $6523894 $6843565 $7178900 $7530666 $7899669 $8286753 $8692803 $9118751
Other Revenue
Food amp Beverage $2420266
$2856217
$3329079
$3841425 $4029654 $4227107 $4434236 $4651513 $4879437 $5118530 $5369338 $5632435 $5908425 $6197937 $6501636 3950
Telephone amp Other $312490 $368777 $429830 $495981 $520284 $545778 $572522 $600575 $630003 $660873 $693256 $727226 $762860 $800240 $839452 510
Total Gross Revenue $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Annual Expenses
Departmental Expenses
Rooms $1145797
$1352184
$1576045
$1818598 $1907710 $2001188 $2099246 $2202109 $2310012 $2423203 $2541940 $2666495 $2797153 $2934213 $3077990 1870
Food amp Beverage $1415396
$1670344
$1946879
$2246504 $2356583 $2472055 $2593186 $2720252 $2853544 $2993368 $3140043 $3293905 $3455307 $3624617 $3802223 2310
Telephone amp Other $238963 $282006 $328694 $379280 $397865 $417360 $437811 $459263 $481767 $505374 $530137 $556114 $583363 $611948 $641934 390
Total Dept Expenses $2800156
$3304534
$3851618
$4444382 $4662157 $4890603 $5130242 $5381624 $5645324 $5921945 $6212120 $6516514 $6835823 $7170778 $7522146 4570
Other Expenses
General amp Admin $533071 $608362 $733240 $846086 $887544 $931034 $976654 $1024511 $1074712 $1127372 $1182614 $1240562 $1301349 $1365115 $1432006 870
Sales amp Marketing $471799 $556781 $648960 $748835 $785528 $824018 $864395 $906751 $951181 $997789 $1046681 $1097968 $1151769 $1208206 $1267408 770
Repairs amp Maintenance $453417 $535089 $623676 $719659 $754923 $791914 $830718 $871423 $914122 $958914 $1005901 $1055190 $1106895 $1161133 $1218028 740
Utilities $349254 $412163 $480399 $554332 $581494 $609988 $639877 $671231 $704121 $738623 $774816 $812782 $852608 $894386 $938211 570
Fees amp Services $214454 $253082 $294982 $340379 $357058 $374554 $392907 $412159 $432355 $453541 $475764 $499077 $523531 $549184 $576094 350
Insurance $85782 $101233 $117993 $136152 $142823 $149822 $157163 $164864 $172942 $181416 $190306 $199631 $209413 $219674 $230438 140
Total Other Expenses $2107776
$2466710
$2899249
$3345443 $3509370 $3681329 $3861714 $4050938 $4249434 $4457656 $4676081 $4905209 $5145565 $5397697 $5662185 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income
Total Annual Revenues $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Total Annual Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income $794355 $1034715
$1252213
$1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681 $2697536 $2850539
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-6
Appendix C (continued)
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $794355 $1034715 $1252213 $1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681
$2697536
$2850539
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Profit Margin -3586 -2706 -2064 -1523 -1359 -1203 -1053 -911 -776 -647 -523 -406 -294 -187 -086
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1259711) $(1019351) $(801853) $(543735) $(448906) $(349429) $(245078) $(135615) $(20787) $99667 $226024 $358571 $497614 $643470 $796473
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-7
Appendix D
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Optimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 05 055 06 065 065 065 065 065 065 065 065 065 065 065 065
Annual Occupied Room Nights 27375 30113 32850 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $4243125
$4896142 $5602967 $6367305 $6679303 $7006589 $7349911 $7710057 $8087850 $8484155 $8899878 $9335972 $9793435
$10273313
$10776705
Other Revenue
Food amp Beverage $3025333
$3490932 $3994895 $4539865 $4762319 $4995672 $5240460 $5497243 $5766608 $6049172 $6345581 $6656514 $6982684 $7324835 $7683752 3950
Telephone amp Other $390613 $450728 $515797 $586160 $614882 $645011 $676616 $709771 $744549 $781032 $819303 $859449 $901562 $945738 $992079 510
Total Gross Revenue $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Annual Expenses
Departmental Expenses
Rooms $1432246
$1652669 $1891254 $2149253 $2254566 $2365040 $2480927 $2602492 $2730014 $2863785 $3004110 $3151312 $3305726 $3467707 $3637624 1870
Food amp Beverage $1769245
$2041532 $2336255 $2654959 $2785052 $2921520 $3064674 $3214843 $3372371 $3537617 $3710960 $3892797 $4083544 $4283638 $4493536 2310
Telephone amp Other $298704 $344674 $394433 $448240 $470204 $493244 $517413 $542766 $569361 $597260 $626526 $657225 $689430 $723212 $758649 390
Total Dept Expenses $3500195
$4038875 $4621942 $5252452 $5509822 $5779803 $6063014 $6360101 $6671746 $6998662 $7341596 $7701334 $8078700 $8474556 $8889809 4570
Other Expenses
General amp Admin $666339 $744391 $879888 $999920 $1048916 $1100313 $1154228 $1210785 $1270114 $1332349 $1397634 $1466118 $1537958 $1613318 $1692371 870
Sales amp Marketing $589748 $680511 $778752 $884986 $928351 $973840 $1021558 $1071614 $1124124 $1179206 $1236987 $1297599 $1361181 $1427879 $1497845 770
Repairs amp Maintenance $566771 $653997 $748411 $850506 $892181 $935898 $981757 $1029863 $1080327 $1133263 $1188792 $1247043 $1308148 $1372248 $1439488 740
Utilities $436567 $503755 $576479 $655120 $687221 $720894 $756218 $793273 $832143 $872918 $915691 $960560 $1007628 $1057002 $1108795 570
Fees amp Services $268067 $309323 $353978 $402267 $421978 $442655 $464345 $487097 $510965 $536003 $562267 $589818 $618719 $649036 $680839 350
Insurance $107227 $123729 $141591 $160907 $168791 $177062 $185738 $194839 $204386 $214401 $224907 $235927 $247488 $259614 $272336 140
Total Other Expenses $2634720
$3015706 $3479099 $3953706 $4147437 $4350662 $4563844 $4787472 $5022058 $5268139 $5526278 $5797066 $6081122 $6379097 $6691673 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income
Total Annual Revenues $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Total Annual Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income $1099186
$1358252 $1587649 $1862204 $1974275 $2091838 $2215162 $2344528 $2480234 $2622589 $2771919 $2928566 $3092890 $3265265 $3446086
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-8
Appendix D (continued)
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $1099186 $1358252 $1587649 $1862204 $1974275 $2091838 $2215162
$2344528
$2480234 $2622589 $2771919 $2928566 $3092890
$3265265
$3446086
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Profit Margin -2471 -1848 -1388 -983 -844 -711 -585 -465 -350 -241 -137 -037 057 148 234
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(954880) $(695815) $(466417) $(191863) $(79791) $37772 $161095 $290462 $426167 $568522 $717852 $874500 $1038823 $1211198
$1392020
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through most of the analyzed period
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-2
Appendix A
Letter of Engagement
University of Massachusetts
Isenberg School of Management
Letter of Engagement
February 21 2008
William Terry
Belchertown Economic Development Industrial Corporation
PO Box 670
Belchertown MA 01007
Dear Mr Terry
The purpose of this letter is to verify that we intend to pursue the Isenberg School of
Management Practicum Project that we discussed with you on our recent visit We also want to
reiterate our understanding of the project we are to undertake and the major tasks related to
successful completion of this assignment Finally we would like to outline the initial information
and material that we expect will be needed to complete the project assignment We would also
like to bring to your attention the following statement concerning the nature of the student
consulting project that we are undertaking
This consulting project is possible through an agreement with your company and the Isenberg
School of Management at the University
of Massachusetts at Amherst The final presentation and report that will be presented to you in
no way reflects the views or opinions of any faculty member affiliated with the Isenberg school
of Management Rather it will contain the analysis observations research and
recommendations of the student team fro the Isenberg School of Management MBA program
that has been assigned to your company Our faculty advisorrsquos role is that of an administrator and
grader of our work and is not a member of the consulting team
1 Below is the project as the Isenberg MBA team understands it
The team will review the existing development plan for a mixed-use complex on the former
Belchertown State School Property and provide an analysis of its general feasibility This may
result in one of three recommendations
a The plan as is after minor changes and updates should be considered a ―go and the process of
pursuing a master developer should resume shortly
b The plan should be considered a ―go but only after significant changes to the plan This may
entail a phased implementation approach a revised combination of building elements or some
other alternative
A-3
c The plan as is should be considered a ―no go and alternative uses for the land should be
explored
The team will offer supporting evidence for whichever of the recommendations it ultimately
provides It will strongly consider the planrsquos feasibility in the eyes of master developers and
investors
2 Based on our discussions with you on February 11 2008 and February 20 2008 we intend to
accomplish the following tasks while completing the consulting assignment
a Review the existing feasibility study prepared by Hunter Interests to identify areas of potential
infeasibility as judged by the team Explore these sections of the study in greater detail and draw
conclusions as to whether they affect the feasibility of the overall plan
b Grow aware of significant changes (ie new hotel development)mdashand likely impending changes
(ie casino)mdashto the surrounding area and determine if they significantly affect the feasibility of
the existing plan
c Engage relevant experts and stakeholders to judge overall concept feasibility Experts and
stakeholders may include any of developers investors architects hotel and spa owners or staff
state agencies UMass educators with relevant knowledge EDIC board members outspoken
critics of the existing plan and other parties with useful insight
In performing each of these tasks the University of Massachusetts Isenberg MBA team will
consider each of the three possible recommendations identified in the project objective If areas
of infeasibility are identified the team will seek to determine alternative solutions as time
permits
We expect to generate useful recommendations as a result of completing the above tasks Most
importantly we hope that you find these recommendations to be actionable and to contribute to
the continued performance of the Belchertown Economic Development Industrial Corporation
(EDIC) Our goal is to provide you with a final written report by May 8 2008 and to have a
formal presentation of these results and recommendations by May 16 2008
Finally thank you for providing us with this experience We look forward to working with you
on the successful completion of this assignment
Sincerely
William Terry ____________________
Katherine Bloor ____________________
Pianpian Huang ____________________
Kevin Price ____________________
Ielyzaveta Zhuravska ___________________
A-4
Appendix B
30 Yr Historical Rates of Change (Hotel)
Historical Rates of Change 1978 ndash 2007
Source Smith Travel Research Bureau of Labor Statistics
Source httpwwwhospitalitynetorgnews1540003204035296html
A-5
Appendix C
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Realistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 04 045 05 055 055 055 055 055 055 055 055 055 055 055 055
Annual Occupied Room Nights 21900 24638 27375 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $3394500
$4005934
$4669139
$5387719 $5651718 $5928652 $6219156 $6523894 $6843565 $7178900 $7530666 $7899669 $8286753 $8692803 $9118751
Other Revenue
Food amp Beverage $2420266
$2856217
$3329079
$3841425 $4029654 $4227107 $4434236 $4651513 $4879437 $5118530 $5369338 $5632435 $5908425 $6197937 $6501636 3950
Telephone amp Other $312490 $368777 $429830 $495981 $520284 $545778 $572522 $600575 $630003 $660873 $693256 $727226 $762860 $800240 $839452 510
Total Gross Revenue $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Annual Expenses
Departmental Expenses
Rooms $1145797
$1352184
$1576045
$1818598 $1907710 $2001188 $2099246 $2202109 $2310012 $2423203 $2541940 $2666495 $2797153 $2934213 $3077990 1870
Food amp Beverage $1415396
$1670344
$1946879
$2246504 $2356583 $2472055 $2593186 $2720252 $2853544 $2993368 $3140043 $3293905 $3455307 $3624617 $3802223 2310
Telephone amp Other $238963 $282006 $328694 $379280 $397865 $417360 $437811 $459263 $481767 $505374 $530137 $556114 $583363 $611948 $641934 390
Total Dept Expenses $2800156
$3304534
$3851618
$4444382 $4662157 $4890603 $5130242 $5381624 $5645324 $5921945 $6212120 $6516514 $6835823 $7170778 $7522146 4570
Other Expenses
General amp Admin $533071 $608362 $733240 $846086 $887544 $931034 $976654 $1024511 $1074712 $1127372 $1182614 $1240562 $1301349 $1365115 $1432006 870
Sales amp Marketing $471799 $556781 $648960 $748835 $785528 $824018 $864395 $906751 $951181 $997789 $1046681 $1097968 $1151769 $1208206 $1267408 770
Repairs amp Maintenance $453417 $535089 $623676 $719659 $754923 $791914 $830718 $871423 $914122 $958914 $1005901 $1055190 $1106895 $1161133 $1218028 740
Utilities $349254 $412163 $480399 $554332 $581494 $609988 $639877 $671231 $704121 $738623 $774816 $812782 $852608 $894386 $938211 570
Fees amp Services $214454 $253082 $294982 $340379 $357058 $374554 $392907 $412159 $432355 $453541 $475764 $499077 $523531 $549184 $576094 350
Insurance $85782 $101233 $117993 $136152 $142823 $149822 $157163 $164864 $172942 $181416 $190306 $199631 $209413 $219674 $230438 140
Total Other Expenses $2107776
$2466710
$2899249
$3345443 $3509370 $3681329 $3861714 $4050938 $4249434 $4457656 $4676081 $4905209 $5145565 $5397697 $5662185 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income
Total Annual Revenues $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Total Annual Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income $794355 $1034715
$1252213
$1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681 $2697536 $2850539
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-6
Appendix C (continued)
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $794355 $1034715 $1252213 $1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681
$2697536
$2850539
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Profit Margin -3586 -2706 -2064 -1523 -1359 -1203 -1053 -911 -776 -647 -523 -406 -294 -187 -086
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1259711) $(1019351) $(801853) $(543735) $(448906) $(349429) $(245078) $(135615) $(20787) $99667 $226024 $358571 $497614 $643470 $796473
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-7
Appendix D
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Optimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 05 055 06 065 065 065 065 065 065 065 065 065 065 065 065
Annual Occupied Room Nights 27375 30113 32850 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $4243125
$4896142 $5602967 $6367305 $6679303 $7006589 $7349911 $7710057 $8087850 $8484155 $8899878 $9335972 $9793435
$10273313
$10776705
Other Revenue
Food amp Beverage $3025333
$3490932 $3994895 $4539865 $4762319 $4995672 $5240460 $5497243 $5766608 $6049172 $6345581 $6656514 $6982684 $7324835 $7683752 3950
Telephone amp Other $390613 $450728 $515797 $586160 $614882 $645011 $676616 $709771 $744549 $781032 $819303 $859449 $901562 $945738 $992079 510
Total Gross Revenue $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Annual Expenses
Departmental Expenses
Rooms $1432246
$1652669 $1891254 $2149253 $2254566 $2365040 $2480927 $2602492 $2730014 $2863785 $3004110 $3151312 $3305726 $3467707 $3637624 1870
Food amp Beverage $1769245
$2041532 $2336255 $2654959 $2785052 $2921520 $3064674 $3214843 $3372371 $3537617 $3710960 $3892797 $4083544 $4283638 $4493536 2310
Telephone amp Other $298704 $344674 $394433 $448240 $470204 $493244 $517413 $542766 $569361 $597260 $626526 $657225 $689430 $723212 $758649 390
Total Dept Expenses $3500195
$4038875 $4621942 $5252452 $5509822 $5779803 $6063014 $6360101 $6671746 $6998662 $7341596 $7701334 $8078700 $8474556 $8889809 4570
Other Expenses
General amp Admin $666339 $744391 $879888 $999920 $1048916 $1100313 $1154228 $1210785 $1270114 $1332349 $1397634 $1466118 $1537958 $1613318 $1692371 870
Sales amp Marketing $589748 $680511 $778752 $884986 $928351 $973840 $1021558 $1071614 $1124124 $1179206 $1236987 $1297599 $1361181 $1427879 $1497845 770
Repairs amp Maintenance $566771 $653997 $748411 $850506 $892181 $935898 $981757 $1029863 $1080327 $1133263 $1188792 $1247043 $1308148 $1372248 $1439488 740
Utilities $436567 $503755 $576479 $655120 $687221 $720894 $756218 $793273 $832143 $872918 $915691 $960560 $1007628 $1057002 $1108795 570
Fees amp Services $268067 $309323 $353978 $402267 $421978 $442655 $464345 $487097 $510965 $536003 $562267 $589818 $618719 $649036 $680839 350
Insurance $107227 $123729 $141591 $160907 $168791 $177062 $185738 $194839 $204386 $214401 $224907 $235927 $247488 $259614 $272336 140
Total Other Expenses $2634720
$3015706 $3479099 $3953706 $4147437 $4350662 $4563844 $4787472 $5022058 $5268139 $5526278 $5797066 $6081122 $6379097 $6691673 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income
Total Annual Revenues $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Total Annual Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income $1099186
$1358252 $1587649 $1862204 $1974275 $2091838 $2215162 $2344528 $2480234 $2622589 $2771919 $2928566 $3092890 $3265265 $3446086
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-8
Appendix D (continued)
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $1099186 $1358252 $1587649 $1862204 $1974275 $2091838 $2215162
$2344528
$2480234 $2622589 $2771919 $2928566 $3092890
$3265265
$3446086
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Profit Margin -2471 -1848 -1388 -983 -844 -711 -585 -465 -350 -241 -137 -037 057 148 234
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(954880) $(695815) $(466417) $(191863) $(79791) $37772 $161095 $290462 $426167 $568522 $717852 $874500 $1038823 $1211198
$1392020
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through most of the analyzed period
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-3
c The plan as is should be considered a ―no go and alternative uses for the land should be
explored
The team will offer supporting evidence for whichever of the recommendations it ultimately
provides It will strongly consider the planrsquos feasibility in the eyes of master developers and
investors
2 Based on our discussions with you on February 11 2008 and February 20 2008 we intend to
accomplish the following tasks while completing the consulting assignment
a Review the existing feasibility study prepared by Hunter Interests to identify areas of potential
infeasibility as judged by the team Explore these sections of the study in greater detail and draw
conclusions as to whether they affect the feasibility of the overall plan
b Grow aware of significant changes (ie new hotel development)mdashand likely impending changes
(ie casino)mdashto the surrounding area and determine if they significantly affect the feasibility of
the existing plan
c Engage relevant experts and stakeholders to judge overall concept feasibility Experts and
stakeholders may include any of developers investors architects hotel and spa owners or staff
state agencies UMass educators with relevant knowledge EDIC board members outspoken
critics of the existing plan and other parties with useful insight
In performing each of these tasks the University of Massachusetts Isenberg MBA team will
consider each of the three possible recommendations identified in the project objective If areas
of infeasibility are identified the team will seek to determine alternative solutions as time
permits
We expect to generate useful recommendations as a result of completing the above tasks Most
importantly we hope that you find these recommendations to be actionable and to contribute to
the continued performance of the Belchertown Economic Development Industrial Corporation
(EDIC) Our goal is to provide you with a final written report by May 8 2008 and to have a
formal presentation of these results and recommendations by May 16 2008
Finally thank you for providing us with this experience We look forward to working with you
on the successful completion of this assignment
Sincerely
William Terry ____________________
Katherine Bloor ____________________
Pianpian Huang ____________________
Kevin Price ____________________
Ielyzaveta Zhuravska ___________________
A-4
Appendix B
30 Yr Historical Rates of Change (Hotel)
Historical Rates of Change 1978 ndash 2007
Source Smith Travel Research Bureau of Labor Statistics
Source httpwwwhospitalitynetorgnews1540003204035296html
A-5
Appendix C
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Realistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 04 045 05 055 055 055 055 055 055 055 055 055 055 055 055
Annual Occupied Room Nights 21900 24638 27375 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $3394500
$4005934
$4669139
$5387719 $5651718 $5928652 $6219156 $6523894 $6843565 $7178900 $7530666 $7899669 $8286753 $8692803 $9118751
Other Revenue
Food amp Beverage $2420266
$2856217
$3329079
$3841425 $4029654 $4227107 $4434236 $4651513 $4879437 $5118530 $5369338 $5632435 $5908425 $6197937 $6501636 3950
Telephone amp Other $312490 $368777 $429830 $495981 $520284 $545778 $572522 $600575 $630003 $660873 $693256 $727226 $762860 $800240 $839452 510
Total Gross Revenue $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Annual Expenses
Departmental Expenses
Rooms $1145797
$1352184
$1576045
$1818598 $1907710 $2001188 $2099246 $2202109 $2310012 $2423203 $2541940 $2666495 $2797153 $2934213 $3077990 1870
Food amp Beverage $1415396
$1670344
$1946879
$2246504 $2356583 $2472055 $2593186 $2720252 $2853544 $2993368 $3140043 $3293905 $3455307 $3624617 $3802223 2310
Telephone amp Other $238963 $282006 $328694 $379280 $397865 $417360 $437811 $459263 $481767 $505374 $530137 $556114 $583363 $611948 $641934 390
Total Dept Expenses $2800156
$3304534
$3851618
$4444382 $4662157 $4890603 $5130242 $5381624 $5645324 $5921945 $6212120 $6516514 $6835823 $7170778 $7522146 4570
Other Expenses
General amp Admin $533071 $608362 $733240 $846086 $887544 $931034 $976654 $1024511 $1074712 $1127372 $1182614 $1240562 $1301349 $1365115 $1432006 870
Sales amp Marketing $471799 $556781 $648960 $748835 $785528 $824018 $864395 $906751 $951181 $997789 $1046681 $1097968 $1151769 $1208206 $1267408 770
Repairs amp Maintenance $453417 $535089 $623676 $719659 $754923 $791914 $830718 $871423 $914122 $958914 $1005901 $1055190 $1106895 $1161133 $1218028 740
Utilities $349254 $412163 $480399 $554332 $581494 $609988 $639877 $671231 $704121 $738623 $774816 $812782 $852608 $894386 $938211 570
Fees amp Services $214454 $253082 $294982 $340379 $357058 $374554 $392907 $412159 $432355 $453541 $475764 $499077 $523531 $549184 $576094 350
Insurance $85782 $101233 $117993 $136152 $142823 $149822 $157163 $164864 $172942 $181416 $190306 $199631 $209413 $219674 $230438 140
Total Other Expenses $2107776
$2466710
$2899249
$3345443 $3509370 $3681329 $3861714 $4050938 $4249434 $4457656 $4676081 $4905209 $5145565 $5397697 $5662185 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income
Total Annual Revenues $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Total Annual Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income $794355 $1034715
$1252213
$1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681 $2697536 $2850539
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-6
Appendix C (continued)
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $794355 $1034715 $1252213 $1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681
$2697536
$2850539
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Profit Margin -3586 -2706 -2064 -1523 -1359 -1203 -1053 -911 -776 -647 -523 -406 -294 -187 -086
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1259711) $(1019351) $(801853) $(543735) $(448906) $(349429) $(245078) $(135615) $(20787) $99667 $226024 $358571 $497614 $643470 $796473
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-7
Appendix D
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Optimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 05 055 06 065 065 065 065 065 065 065 065 065 065 065 065
Annual Occupied Room Nights 27375 30113 32850 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $4243125
$4896142 $5602967 $6367305 $6679303 $7006589 $7349911 $7710057 $8087850 $8484155 $8899878 $9335972 $9793435
$10273313
$10776705
Other Revenue
Food amp Beverage $3025333
$3490932 $3994895 $4539865 $4762319 $4995672 $5240460 $5497243 $5766608 $6049172 $6345581 $6656514 $6982684 $7324835 $7683752 3950
Telephone amp Other $390613 $450728 $515797 $586160 $614882 $645011 $676616 $709771 $744549 $781032 $819303 $859449 $901562 $945738 $992079 510
Total Gross Revenue $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Annual Expenses
Departmental Expenses
Rooms $1432246
$1652669 $1891254 $2149253 $2254566 $2365040 $2480927 $2602492 $2730014 $2863785 $3004110 $3151312 $3305726 $3467707 $3637624 1870
Food amp Beverage $1769245
$2041532 $2336255 $2654959 $2785052 $2921520 $3064674 $3214843 $3372371 $3537617 $3710960 $3892797 $4083544 $4283638 $4493536 2310
Telephone amp Other $298704 $344674 $394433 $448240 $470204 $493244 $517413 $542766 $569361 $597260 $626526 $657225 $689430 $723212 $758649 390
Total Dept Expenses $3500195
$4038875 $4621942 $5252452 $5509822 $5779803 $6063014 $6360101 $6671746 $6998662 $7341596 $7701334 $8078700 $8474556 $8889809 4570
Other Expenses
General amp Admin $666339 $744391 $879888 $999920 $1048916 $1100313 $1154228 $1210785 $1270114 $1332349 $1397634 $1466118 $1537958 $1613318 $1692371 870
Sales amp Marketing $589748 $680511 $778752 $884986 $928351 $973840 $1021558 $1071614 $1124124 $1179206 $1236987 $1297599 $1361181 $1427879 $1497845 770
Repairs amp Maintenance $566771 $653997 $748411 $850506 $892181 $935898 $981757 $1029863 $1080327 $1133263 $1188792 $1247043 $1308148 $1372248 $1439488 740
Utilities $436567 $503755 $576479 $655120 $687221 $720894 $756218 $793273 $832143 $872918 $915691 $960560 $1007628 $1057002 $1108795 570
Fees amp Services $268067 $309323 $353978 $402267 $421978 $442655 $464345 $487097 $510965 $536003 $562267 $589818 $618719 $649036 $680839 350
Insurance $107227 $123729 $141591 $160907 $168791 $177062 $185738 $194839 $204386 $214401 $224907 $235927 $247488 $259614 $272336 140
Total Other Expenses $2634720
$3015706 $3479099 $3953706 $4147437 $4350662 $4563844 $4787472 $5022058 $5268139 $5526278 $5797066 $6081122 $6379097 $6691673 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income
Total Annual Revenues $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Total Annual Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income $1099186
$1358252 $1587649 $1862204 $1974275 $2091838 $2215162 $2344528 $2480234 $2622589 $2771919 $2928566 $3092890 $3265265 $3446086
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-8
Appendix D (continued)
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $1099186 $1358252 $1587649 $1862204 $1974275 $2091838 $2215162
$2344528
$2480234 $2622589 $2771919 $2928566 $3092890
$3265265
$3446086
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Profit Margin -2471 -1848 -1388 -983 -844 -711 -585 -465 -350 -241 -137 -037 057 148 234
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(954880) $(695815) $(466417) $(191863) $(79791) $37772 $161095 $290462 $426167 $568522 $717852 $874500 $1038823 $1211198
$1392020
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through most of the analyzed period
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-4
Appendix B
30 Yr Historical Rates of Change (Hotel)
Historical Rates of Change 1978 ndash 2007
Source Smith Travel Research Bureau of Labor Statistics
Source httpwwwhospitalitynetorgnews1540003204035296html
A-5
Appendix C
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Realistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 04 045 05 055 055 055 055 055 055 055 055 055 055 055 055
Annual Occupied Room Nights 21900 24638 27375 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $3394500
$4005934
$4669139
$5387719 $5651718 $5928652 $6219156 $6523894 $6843565 $7178900 $7530666 $7899669 $8286753 $8692803 $9118751
Other Revenue
Food amp Beverage $2420266
$2856217
$3329079
$3841425 $4029654 $4227107 $4434236 $4651513 $4879437 $5118530 $5369338 $5632435 $5908425 $6197937 $6501636 3950
Telephone amp Other $312490 $368777 $429830 $495981 $520284 $545778 $572522 $600575 $630003 $660873 $693256 $727226 $762860 $800240 $839452 510
Total Gross Revenue $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Annual Expenses
Departmental Expenses
Rooms $1145797
$1352184
$1576045
$1818598 $1907710 $2001188 $2099246 $2202109 $2310012 $2423203 $2541940 $2666495 $2797153 $2934213 $3077990 1870
Food amp Beverage $1415396
$1670344
$1946879
$2246504 $2356583 $2472055 $2593186 $2720252 $2853544 $2993368 $3140043 $3293905 $3455307 $3624617 $3802223 2310
Telephone amp Other $238963 $282006 $328694 $379280 $397865 $417360 $437811 $459263 $481767 $505374 $530137 $556114 $583363 $611948 $641934 390
Total Dept Expenses $2800156
$3304534
$3851618
$4444382 $4662157 $4890603 $5130242 $5381624 $5645324 $5921945 $6212120 $6516514 $6835823 $7170778 $7522146 4570
Other Expenses
General amp Admin $533071 $608362 $733240 $846086 $887544 $931034 $976654 $1024511 $1074712 $1127372 $1182614 $1240562 $1301349 $1365115 $1432006 870
Sales amp Marketing $471799 $556781 $648960 $748835 $785528 $824018 $864395 $906751 $951181 $997789 $1046681 $1097968 $1151769 $1208206 $1267408 770
Repairs amp Maintenance $453417 $535089 $623676 $719659 $754923 $791914 $830718 $871423 $914122 $958914 $1005901 $1055190 $1106895 $1161133 $1218028 740
Utilities $349254 $412163 $480399 $554332 $581494 $609988 $639877 $671231 $704121 $738623 $774816 $812782 $852608 $894386 $938211 570
Fees amp Services $214454 $253082 $294982 $340379 $357058 $374554 $392907 $412159 $432355 $453541 $475764 $499077 $523531 $549184 $576094 350
Insurance $85782 $101233 $117993 $136152 $142823 $149822 $157163 $164864 $172942 $181416 $190306 $199631 $209413 $219674 $230438 140
Total Other Expenses $2107776
$2466710
$2899249
$3345443 $3509370 $3681329 $3861714 $4050938 $4249434 $4457656 $4676081 $4905209 $5145565 $5397697 $5662185 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income
Total Annual Revenues $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Total Annual Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income $794355 $1034715
$1252213
$1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681 $2697536 $2850539
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-6
Appendix C (continued)
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $794355 $1034715 $1252213 $1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681
$2697536
$2850539
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Profit Margin -3586 -2706 -2064 -1523 -1359 -1203 -1053 -911 -776 -647 -523 -406 -294 -187 -086
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1259711) $(1019351) $(801853) $(543735) $(448906) $(349429) $(245078) $(135615) $(20787) $99667 $226024 $358571 $497614 $643470 $796473
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-7
Appendix D
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Optimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 05 055 06 065 065 065 065 065 065 065 065 065 065 065 065
Annual Occupied Room Nights 27375 30113 32850 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $4243125
$4896142 $5602967 $6367305 $6679303 $7006589 $7349911 $7710057 $8087850 $8484155 $8899878 $9335972 $9793435
$10273313
$10776705
Other Revenue
Food amp Beverage $3025333
$3490932 $3994895 $4539865 $4762319 $4995672 $5240460 $5497243 $5766608 $6049172 $6345581 $6656514 $6982684 $7324835 $7683752 3950
Telephone amp Other $390613 $450728 $515797 $586160 $614882 $645011 $676616 $709771 $744549 $781032 $819303 $859449 $901562 $945738 $992079 510
Total Gross Revenue $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Annual Expenses
Departmental Expenses
Rooms $1432246
$1652669 $1891254 $2149253 $2254566 $2365040 $2480927 $2602492 $2730014 $2863785 $3004110 $3151312 $3305726 $3467707 $3637624 1870
Food amp Beverage $1769245
$2041532 $2336255 $2654959 $2785052 $2921520 $3064674 $3214843 $3372371 $3537617 $3710960 $3892797 $4083544 $4283638 $4493536 2310
Telephone amp Other $298704 $344674 $394433 $448240 $470204 $493244 $517413 $542766 $569361 $597260 $626526 $657225 $689430 $723212 $758649 390
Total Dept Expenses $3500195
$4038875 $4621942 $5252452 $5509822 $5779803 $6063014 $6360101 $6671746 $6998662 $7341596 $7701334 $8078700 $8474556 $8889809 4570
Other Expenses
General amp Admin $666339 $744391 $879888 $999920 $1048916 $1100313 $1154228 $1210785 $1270114 $1332349 $1397634 $1466118 $1537958 $1613318 $1692371 870
Sales amp Marketing $589748 $680511 $778752 $884986 $928351 $973840 $1021558 $1071614 $1124124 $1179206 $1236987 $1297599 $1361181 $1427879 $1497845 770
Repairs amp Maintenance $566771 $653997 $748411 $850506 $892181 $935898 $981757 $1029863 $1080327 $1133263 $1188792 $1247043 $1308148 $1372248 $1439488 740
Utilities $436567 $503755 $576479 $655120 $687221 $720894 $756218 $793273 $832143 $872918 $915691 $960560 $1007628 $1057002 $1108795 570
Fees amp Services $268067 $309323 $353978 $402267 $421978 $442655 $464345 $487097 $510965 $536003 $562267 $589818 $618719 $649036 $680839 350
Insurance $107227 $123729 $141591 $160907 $168791 $177062 $185738 $194839 $204386 $214401 $224907 $235927 $247488 $259614 $272336 140
Total Other Expenses $2634720
$3015706 $3479099 $3953706 $4147437 $4350662 $4563844 $4787472 $5022058 $5268139 $5526278 $5797066 $6081122 $6379097 $6691673 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income
Total Annual Revenues $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Total Annual Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income $1099186
$1358252 $1587649 $1862204 $1974275 $2091838 $2215162 $2344528 $2480234 $2622589 $2771919 $2928566 $3092890 $3265265 $3446086
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-8
Appendix D (continued)
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $1099186 $1358252 $1587649 $1862204 $1974275 $2091838 $2215162
$2344528
$2480234 $2622589 $2771919 $2928566 $3092890
$3265265
$3446086
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Profit Margin -2471 -1848 -1388 -983 -844 -711 -585 -465 -350 -241 -137 -037 057 148 234
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(954880) $(695815) $(466417) $(191863) $(79791) $37772 $161095 $290462 $426167 $568522 $717852 $874500 $1038823 $1211198
$1392020
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through most of the analyzed period
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-5
Appendix C
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Realistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 04 045 05 055 055 055 055 055 055 055 055 055 055 055 055
Annual Occupied Room Nights 21900 24638 27375 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113 30113
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $3394500
$4005934
$4669139
$5387719 $5651718 $5928652 $6219156 $6523894 $6843565 $7178900 $7530666 $7899669 $8286753 $8692803 $9118751
Other Revenue
Food amp Beverage $2420266
$2856217
$3329079
$3841425 $4029654 $4227107 $4434236 $4651513 $4879437 $5118530 $5369338 $5632435 $5908425 $6197937 $6501636 3950
Telephone amp Other $312490 $368777 $429830 $495981 $520284 $545778 $572522 $600575 $630003 $660873 $693256 $727226 $762860 $800240 $839452 510
Total Gross Revenue $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Annual Expenses
Departmental Expenses
Rooms $1145797
$1352184
$1576045
$1818598 $1907710 $2001188 $2099246 $2202109 $2310012 $2423203 $2541940 $2666495 $2797153 $2934213 $3077990 1870
Food amp Beverage $1415396
$1670344
$1946879
$2246504 $2356583 $2472055 $2593186 $2720252 $2853544 $2993368 $3140043 $3293905 $3455307 $3624617 $3802223 2310
Telephone amp Other $238963 $282006 $328694 $379280 $397865 $417360 $437811 $459263 $481767 $505374 $530137 $556114 $583363 $611948 $641934 390
Total Dept Expenses $2800156
$3304534
$3851618
$4444382 $4662157 $4890603 $5130242 $5381624 $5645324 $5921945 $6212120 $6516514 $6835823 $7170778 $7522146 4570
Other Expenses
General amp Admin $533071 $608362 $733240 $846086 $887544 $931034 $976654 $1024511 $1074712 $1127372 $1182614 $1240562 $1301349 $1365115 $1432006 870
Sales amp Marketing $471799 $556781 $648960 $748835 $785528 $824018 $864395 $906751 $951181 $997789 $1046681 $1097968 $1151769 $1208206 $1267408 770
Repairs amp Maintenance $453417 $535089 $623676 $719659 $754923 $791914 $830718 $871423 $914122 $958914 $1005901 $1055190 $1106895 $1161133 $1218028 740
Utilities $349254 $412163 $480399 $554332 $581494 $609988 $639877 $671231 $704121 $738623 $774816 $812782 $852608 $894386 $938211 570
Fees amp Services $214454 $253082 $294982 $340379 $357058 $374554 $392907 $412159 $432355 $453541 $475764 $499077 $523531 $549184 $576094 350
Insurance $85782 $101233 $117993 $136152 $142823 $149822 $157163 $164864 $172942 $181416 $190306 $199631 $209413 $219674 $230438 140
Total Other Expenses $2107776
$2466710
$2899249
$3345443 $3509370 $3681329 $3861714 $4050938 $4249434 $4457656 $4676081 $4905209 $5145565 $5397697 $5662185 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income
Total Annual Revenues $6127256
$7230928
$8428049
$9725125
$10201657
$10701538
$11225913
$11775983
$12353006
$12958303
$13593260
$14259330
$14958037
$15690981
$16459839
Total Annual Expenses $5332901
$6196213
$7175836
$8214794 $8596496 $8996900 $9416925 $9857531
$10319727
$10804570
$11313170
$11846692
$12406356
$12993444
$13609300
Net Operating Income $794355 $1034715
$1252213
$1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681 $2697536 $2850539
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-6
Appendix C (continued)
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $794355 $1034715 $1252213 $1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681
$2697536
$2850539
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Profit Margin -3586 -2706 -2064 -1523 -1359 -1203 -1053 -911 -776 -647 -523 -406 -294 -187 -086
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1259711) $(1019351) $(801853) $(543735) $(448906) $(349429) $(245078) $(135615) $(20787) $99667 $226024 $358571 $497614 $643470 $796473
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-7
Appendix D
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Optimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 05 055 06 065 065 065 065 065 065 065 065 065 065 065 065
Annual Occupied Room Nights 27375 30113 32850 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $4243125
$4896142 $5602967 $6367305 $6679303 $7006589 $7349911 $7710057 $8087850 $8484155 $8899878 $9335972 $9793435
$10273313
$10776705
Other Revenue
Food amp Beverage $3025333
$3490932 $3994895 $4539865 $4762319 $4995672 $5240460 $5497243 $5766608 $6049172 $6345581 $6656514 $6982684 $7324835 $7683752 3950
Telephone amp Other $390613 $450728 $515797 $586160 $614882 $645011 $676616 $709771 $744549 $781032 $819303 $859449 $901562 $945738 $992079 510
Total Gross Revenue $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Annual Expenses
Departmental Expenses
Rooms $1432246
$1652669 $1891254 $2149253 $2254566 $2365040 $2480927 $2602492 $2730014 $2863785 $3004110 $3151312 $3305726 $3467707 $3637624 1870
Food amp Beverage $1769245
$2041532 $2336255 $2654959 $2785052 $2921520 $3064674 $3214843 $3372371 $3537617 $3710960 $3892797 $4083544 $4283638 $4493536 2310
Telephone amp Other $298704 $344674 $394433 $448240 $470204 $493244 $517413 $542766 $569361 $597260 $626526 $657225 $689430 $723212 $758649 390
Total Dept Expenses $3500195
$4038875 $4621942 $5252452 $5509822 $5779803 $6063014 $6360101 $6671746 $6998662 $7341596 $7701334 $8078700 $8474556 $8889809 4570
Other Expenses
General amp Admin $666339 $744391 $879888 $999920 $1048916 $1100313 $1154228 $1210785 $1270114 $1332349 $1397634 $1466118 $1537958 $1613318 $1692371 870
Sales amp Marketing $589748 $680511 $778752 $884986 $928351 $973840 $1021558 $1071614 $1124124 $1179206 $1236987 $1297599 $1361181 $1427879 $1497845 770
Repairs amp Maintenance $566771 $653997 $748411 $850506 $892181 $935898 $981757 $1029863 $1080327 $1133263 $1188792 $1247043 $1308148 $1372248 $1439488 740
Utilities $436567 $503755 $576479 $655120 $687221 $720894 $756218 $793273 $832143 $872918 $915691 $960560 $1007628 $1057002 $1108795 570
Fees amp Services $268067 $309323 $353978 $402267 $421978 $442655 $464345 $487097 $510965 $536003 $562267 $589818 $618719 $649036 $680839 350
Insurance $107227 $123729 $141591 $160907 $168791 $177062 $185738 $194839 $204386 $214401 $224907 $235927 $247488 $259614 $272336 140
Total Other Expenses $2634720
$3015706 $3479099 $3953706 $4147437 $4350662 $4563844 $4787472 $5022058 $5268139 $5526278 $5797066 $6081122 $6379097 $6691673 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income
Total Annual Revenues $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Total Annual Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income $1099186
$1358252 $1587649 $1862204 $1974275 $2091838 $2215162 $2344528 $2480234 $2622589 $2771919 $2928566 $3092890 $3265265 $3446086
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-8
Appendix D (continued)
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $1099186 $1358252 $1587649 $1862204 $1974275 $2091838 $2215162
$2344528
$2480234 $2622589 $2771919 $2928566 $3092890
$3265265
$3446086
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Profit Margin -2471 -1848 -1388 -983 -844 -711 -585 -465 -350 -241 -137 -037 057 148 234
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(954880) $(695815) $(466417) $(191863) $(79791) $37772 $161095 $290462 $426167 $568522 $717852 $874500 $1038823 $1211198
$1392020
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through most of the analyzed period
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
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ow
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dle
y
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nd
ell
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ert
ow
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ad
ley
Am
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ad
ley
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lha
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Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-6
Appendix C (continued)
Hotel 15 Year Cash Flow Pro Forma (Realistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $794355 $1034715 $1252213 $1510331 $1605161 $1704637 $1808988 $1918452 $2033279 $2153734 $2280090 $2412638 $2551681
$2697536
$2850539
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Profit Margin -3586 -2706 -2064 -1523 -1359 -1203 -1053 -911 -776 -647 -523 -406 -294 -187 -086
Net Income After Taxes $(2197211) $(1956851) $(1739353) $(1481235)
$(1386406)
$(1286929)
$(1182578)
$(1073115) $(958287) $(837833) $(711476) $(578929) $(439886)
$(294030)
$(141027)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1259711) $(1019351) $(801853) $(543735) $(448906) $(349429) $(245078) $(135615) $(20787) $99667 $226024 $358571 $497614 $643470 $796473
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-7
Appendix D
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Optimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 05 055 06 065 065 065 065 065 065 065 065 065 065 065 065
Annual Occupied Room Nights 27375 30113 32850 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $4243125
$4896142 $5602967 $6367305 $6679303 $7006589 $7349911 $7710057 $8087850 $8484155 $8899878 $9335972 $9793435
$10273313
$10776705
Other Revenue
Food amp Beverage $3025333
$3490932 $3994895 $4539865 $4762319 $4995672 $5240460 $5497243 $5766608 $6049172 $6345581 $6656514 $6982684 $7324835 $7683752 3950
Telephone amp Other $390613 $450728 $515797 $586160 $614882 $645011 $676616 $709771 $744549 $781032 $819303 $859449 $901562 $945738 $992079 510
Total Gross Revenue $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Annual Expenses
Departmental Expenses
Rooms $1432246
$1652669 $1891254 $2149253 $2254566 $2365040 $2480927 $2602492 $2730014 $2863785 $3004110 $3151312 $3305726 $3467707 $3637624 1870
Food amp Beverage $1769245
$2041532 $2336255 $2654959 $2785052 $2921520 $3064674 $3214843 $3372371 $3537617 $3710960 $3892797 $4083544 $4283638 $4493536 2310
Telephone amp Other $298704 $344674 $394433 $448240 $470204 $493244 $517413 $542766 $569361 $597260 $626526 $657225 $689430 $723212 $758649 390
Total Dept Expenses $3500195
$4038875 $4621942 $5252452 $5509822 $5779803 $6063014 $6360101 $6671746 $6998662 $7341596 $7701334 $8078700 $8474556 $8889809 4570
Other Expenses
General amp Admin $666339 $744391 $879888 $999920 $1048916 $1100313 $1154228 $1210785 $1270114 $1332349 $1397634 $1466118 $1537958 $1613318 $1692371 870
Sales amp Marketing $589748 $680511 $778752 $884986 $928351 $973840 $1021558 $1071614 $1124124 $1179206 $1236987 $1297599 $1361181 $1427879 $1497845 770
Repairs amp Maintenance $566771 $653997 $748411 $850506 $892181 $935898 $981757 $1029863 $1080327 $1133263 $1188792 $1247043 $1308148 $1372248 $1439488 740
Utilities $436567 $503755 $576479 $655120 $687221 $720894 $756218 $793273 $832143 $872918 $915691 $960560 $1007628 $1057002 $1108795 570
Fees amp Services $268067 $309323 $353978 $402267 $421978 $442655 $464345 $487097 $510965 $536003 $562267 $589818 $618719 $649036 $680839 350
Insurance $107227 $123729 $141591 $160907 $168791 $177062 $185738 $194839 $204386 $214401 $224907 $235927 $247488 $259614 $272336 140
Total Other Expenses $2634720
$3015706 $3479099 $3953706 $4147437 $4350662 $4563844 $4787472 $5022058 $5268139 $5526278 $5797066 $6081122 $6379097 $6691673 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income
Total Annual Revenues $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Total Annual Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income $1099186
$1358252 $1587649 $1862204 $1974275 $2091838 $2215162 $2344528 $2480234 $2622589 $2771919 $2928566 $3092890 $3265265 $3446086
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-8
Appendix D (continued)
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $1099186 $1358252 $1587649 $1862204 $1974275 $2091838 $2215162
$2344528
$2480234 $2622589 $2771919 $2928566 $3092890
$3265265
$3446086
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Profit Margin -2471 -1848 -1388 -983 -844 -711 -585 -465 -350 -241 -137 -037 057 148 234
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(954880) $(695815) $(466417) $(191863) $(79791) $37772 $161095 $290462 $426167 $568522 $717852 $874500 $1038823 $1211198
$1392020
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through most of the analyzed period
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
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y
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ert
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ad
ley
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ad
ley
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he
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he
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he
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y
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ale
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t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-7
Appendix D
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Optimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 05 055 06 065 065 065 065 065 065 065 065 065 065 065 065
Annual Occupied Room Nights 27375 30113 32850 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588 35588
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $4243125
$4896142 $5602967 $6367305 $6679303 $7006589 $7349911 $7710057 $8087850 $8484155 $8899878 $9335972 $9793435
$10273313
$10776705
Other Revenue
Food amp Beverage $3025333
$3490932 $3994895 $4539865 $4762319 $4995672 $5240460 $5497243 $5766608 $6049172 $6345581 $6656514 $6982684 $7324835 $7683752 3950
Telephone amp Other $390613 $450728 $515797 $586160 $614882 $645011 $676616 $709771 $744549 $781032 $819303 $859449 $901562 $945738 $992079 510
Total Gross Revenue $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Annual Expenses
Departmental Expenses
Rooms $1432246
$1652669 $1891254 $2149253 $2254566 $2365040 $2480927 $2602492 $2730014 $2863785 $3004110 $3151312 $3305726 $3467707 $3637624 1870
Food amp Beverage $1769245
$2041532 $2336255 $2654959 $2785052 $2921520 $3064674 $3214843 $3372371 $3537617 $3710960 $3892797 $4083544 $4283638 $4493536 2310
Telephone amp Other $298704 $344674 $394433 $448240 $470204 $493244 $517413 $542766 $569361 $597260 $626526 $657225 $689430 $723212 $758649 390
Total Dept Expenses $3500195
$4038875 $4621942 $5252452 $5509822 $5779803 $6063014 $6360101 $6671746 $6998662 $7341596 $7701334 $8078700 $8474556 $8889809 4570
Other Expenses
General amp Admin $666339 $744391 $879888 $999920 $1048916 $1100313 $1154228 $1210785 $1270114 $1332349 $1397634 $1466118 $1537958 $1613318 $1692371 870
Sales amp Marketing $589748 $680511 $778752 $884986 $928351 $973840 $1021558 $1071614 $1124124 $1179206 $1236987 $1297599 $1361181 $1427879 $1497845 770
Repairs amp Maintenance $566771 $653997 $748411 $850506 $892181 $935898 $981757 $1029863 $1080327 $1133263 $1188792 $1247043 $1308148 $1372248 $1439488 740
Utilities $436567 $503755 $576479 $655120 $687221 $720894 $756218 $793273 $832143 $872918 $915691 $960560 $1007628 $1057002 $1108795 570
Fees amp Services $268067 $309323 $353978 $402267 $421978 $442655 $464345 $487097 $510965 $536003 $562267 $589818 $618719 $649036 $680839 350
Insurance $107227 $123729 $141591 $160907 $168791 $177062 $185738 $194839 $204386 $214401 $224907 $235927 $247488 $259614 $272336 140
Total Other Expenses $2634720
$3015706 $3479099 $3953706 $4147437 $4350662 $4563844 $4787472 $5022058 $5268139 $5526278 $5797066 $6081122 $6379097 $6691673 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income
Total Annual Revenues $7659070
$8837801
$10113658
$11493330
$12056503
$12647272
$13266988
$13917071
$14599007
$15314358
$16064762
$16851935
$17677680
$18543886
$19452537
Total Annual Expenses $6559884
$7479550 $8526009 $9631126
$10082228
$10555434
$11051826
$11572542
$12118773
$12691770
$13292843
$13923369
$14584791
$15278622
$16006451
Net Operating Income $1099186
$1358252 $1587649 $1862204 $1974275 $2091838 $2215162 $2344528 $2480234 $2622589 $2771919 $2928566 $3092890 $3265265 $3446086
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-8
Appendix D (continued)
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $1099186 $1358252 $1587649 $1862204 $1974275 $2091838 $2215162
$2344528
$2480234 $2622589 $2771919 $2928566 $3092890
$3265265
$3446086
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Profit Margin -2471 -1848 -1388 -983 -844 -711 -585 -465 -350 -241 -137 -037 057 148 234
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(954880) $(695815) $(466417) $(191863) $(79791) $37772 $161095 $290462 $426167 $568522 $717852 $874500 $1038823 $1211198
$1392020
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through most of the analyzed period
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
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ow
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dle
y
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nd
ell
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ert
ow
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ad
ley
Am
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ad
ley
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lha
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Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-8
Appendix D (continued)
Hotel 15 Year Cash Flow Pro Forma (Optimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $1099186 $1358252 $1587649 $1862204 $1974275 $2091838 $2215162
$2344528
$2480234 $2622589 $2771919 $2928566 $3092890
$3265265
$3446086
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066 $2054066 $2054066 $2054066 $2054066
$2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Profit Margin -2471 -1848 -1388 -983 -844 -711 -585 -465 -350 -241 -137 -037 057 148 234
Net Income After Taxes $(1892380) $(1633315) $(1403917) $(1129363)
$(1017291) $(899728)
$(776405)
$(647038) $(511333) $(368978) $(219648) $(63000) $101323 $273698 $454520
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(954880) $(695815) $(466417) $(191863) $(79791) $37772 $161095 $290462 $426167 $568522 $717852 $874500 $1038823 $1211198
$1392020
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through most of the analyzed period
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-9
Appendix E
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Hotel 15 Year Cash Flow Pro Forma Pessimistic Scenario
Net Operating Income Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15
Revenues
Number of Rooms 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Average Occupancy 03 035 04 045 045 045 045 045 045 045 045 045 045 045 045
Annual Occupied Room Nights 16425 19163 21900 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638 24638
Average Room Rate $155 $163 $171 $179 $188 $197 $207 $217 $227 $238 $250 $262 $275 $289 $303 490
Average Room Revenue $2545875
$3115727
$3735311
$4408134
$4624133
$4850715
$5088400
$5337732 $5599281 $5873645 $6161454 $6463365 $6780070 $7112294 $7460796
Other Revenue
Food amp Beverage $1815200
$2221502
$2663263
$3142984
$3296990
$3458542
$3628011
$3805784 $3992267 $4187888 $4393095 $4608356 $4834166 $5071040 $5319521 3950
Telephone amp Other $234368 $286827 $343864 $405803 $425687 $446546 $468427 $491380 $515457 $540715 $567210 $595003 $624158 $654742 $686824 510
Total Gross Revenue $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Annual Expenses
Departmental Expenses
Rooms $859348 $1051698
$1260836
$1487944
$1560853
$1637335
$1717565
$1801725 $1890010 $1982620 $2079769 $2181677 $2288580 $2400720 $2518355 1870
Food amp Beverage $1061547
$1299157
$1557503
$1838049
$1928113
$2022591
$2121698
$2225661 $2334718 $2449119 $2569126 $2695013 $2827069 $2965595 $3110910 2310
Telephone amp Other $179222 $219338 $262955 $310320 $325526 $341476 $358209 $375761 $394173 $413488 $433749 $455002 $477297 $500685 $525218 390
Total Dept Expenses $2100117
$2570193
$3081295
$3636313
$3814492
$4001402
$4197471
$4403147 $4618901 $4845227 $5082644 $5331693 $5592946 $5867000 $6154483 4570
Other Expenses
General amp Admin $399803 $472333 $586592 $692252 $726172 $761755 $799081 $838236 $879309 $922396 $967593 $1015005 $1064740 $1116913 $1171641 870
Sales amp Marketing $353849 $433052 $519168 $612683 $642704 $674197 $707233 $741887 $778239 $816373 $856375 $898338 $942356 $988532 $1036970 770
Repairs amp Maintenance $340063 $416180 $498940 $588812 $617664 $647929 $679678 $712982 $747918 $784566 $823010 $863338 $905641 $950018 $996568 740
Utilities $261940 $320571 $384319 $453544 $475768 $499081 $523536 $549189 $576099 $604328 $633940 $665003 $697588 $731770 $767627 570
Fees amp Services $160840 $196842 $235985 $278492 $292138 $306453 $321469 $337221 $353745 $371079 $389262 $408335 $428344 $449333 $471350 350
Insurance $64336 $78737 $94394 $111397 $116855 $122581 $128588 $134889 $141498 $148431 $155705 $163334 $171338 $179733 $188540 140
Total Other Expenses $1580832
$1917715
$2319399
$2737181
$2871303
$3011996
$3159584
$3314404 $3476810 $3647173 $3825885 $4013353 $4210008 $4416298 $4632696 3440
Replacement Reserve $- $- $- $- $- $- $- $- $- $- $- $- $- $- $-
Real Estate Property Tax $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 $424969 151
Total Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income
Total Annual Revenues $4595442
$5624055
$6742439
$7956921
$8346810
$8755804
$9184838
$9634895
$10107005
$10602248
$11121758
$11666724
$12238394
$12838075
$13467141
Total Annual Expenses $4105918
$4912877
$5825662
$6798462
$7110763
$7438367
$7782024
$8142520 $8520680 $8917370 $9333497 $9770015
$10227922
$10708267
$11212149
Net Operating Income $489524 $711178 $916777 $1158458
$1236046
$1317436
$1402814
$1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808 $2254992
Other expenses are treated as 50 variable and 50 fixed (fixed costs taken from Year 4 first year of stabilized occupancy)
Inflation was disregarded in this pro forma as most of the projected numbers are linked to gross revenue which incorporates ADR growth at 49 CAGR
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-10
Appendix E (Continued)
Hotel 15 Year Cash Flow Pro Forma (Pessimistic Scenario)
Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15 $28125000
Net Operating Income $489524 $711178 $916777 $1158458 $1236046 $1317436 $1402814 $1492375 $1586325 $1684879 $1788261 $1896709 $2010472 $2129808
$2254992
Annual Debt Service $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066 $2054066
$2054066
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Taxable Income $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Profit Margin -5445 -4055 -3077 -2304 -2103 -1912 -1730 -1556 -1390 -1232 -1082 -938 -802 -671 -547
Net Income After Taxes $(2502042) $(2280388) $(2074790) $(1833108)
$(1755520)
$(1674130)
$(1588752)
$(1499191)
$(1405241) $(1306688) $(1203305) $(1094857) $(981095)
$(861758)
$(736574)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
Annual Cash Flow $(1564542) $(1342888) $(1137290) $(895608) $(818020) $(736630) $(651252) $(561691) $(467741) $(369188) $(265805) $(157357) $(43595) $75742 $200926
Depreciation is calculated as 30 year straight-line
Income tax was ignored in this model as it is unknown what type of an entity will own and manage the hotel and what tax bracket would be applicable Income tax can also be ignored because of negative net income through the analyzed period
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-11
Appendix F
Occupancies amp ADRs All MA Hotels 05 - 07
Occupancies amp Daily Rates All MA Hotels 05 - 07
$13194
$11980
$1127
$10248
$10810
$14348
$15885
731729
423439434
770
441
$000
$2000
$4000
$6000
$8000
$10000
$12000
$14000
$16000
$18000
Jan 0
5
Feb 0
5
Mar
05
Apr
05
May 0
5
Jun 0
5
Jul 05
Aug 0
5
Sep 0
5
Oct
05
Nov 0
5
Dec 0
5
Jan 0
6
Feb 0
6
Mar
06
Apr
06
May 0
6
Jun 0
6
Jul 06
Aug 0
6
Sep 0
6
Oct
06
Nov 0
6
Dec 0
6
Jan 0
7
Feb 0
7
Mar
07
Apr
07
May 0
7
Jun 0
7
Jul 07
Aug 0
7
Sep 0
7
Oct
07
Nov 0
7
Dec 0
7
Avera
ge D
ail
y R
ate
0
10
20
30
40
50
60
70
80
90
Occu
pan
cy R
ate
(in
)
ADR OCC
Af
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-12
Appendix G
Hotel Sensitivity Analysis ADRs Development Costs (Realistic Scenario)
SENSITIVITY ANALYSIS Realistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$ (18498735) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $4410722 $10061783 $15712844 $21363906 $27014967 $32666028 $38317089 $43968151 $49619212 $55270273 $60921335 $66572396 $72223457 $77874518 $83525580
$89176641
40 Mean $11430000 $1639161 $7290222 $12941283 $18592345 $24243406 $29894467 $35545529 $41196590 $46847651 $52498712 $58149774 $63800835 $69451896 $75102957 $80754019
$86405080
70 Mean $19777500 $(8712340) $(3061279) $2589783 $8240844 $13891905 $19542966 $25194028 $30845089 $36496150 $42147211 $47798273 $53449334 $59100395 $64751456 $70402518
$76053579
Median End $24120000 $(14097353) $(8446291) $(2795230) $2855831 $8506892 $14157954 $19809015 $25460076 $31111138 $36762199 $42413260 $48064321 $53715383 $59366444
$65017505
$70668566
Mean End $28125000 $(19063841) $(13412780) $(7761718) $(2110657) $3540404 $9191465 $14842527 $20493588 $26144649 $31795710 $37446772 $43097833 $48748894 $54399956 $60051017
$65702078
105 Mean $29516250 $(20789091) $(15138030) $(9486969) $(3835907) $1815154 $7466215 $13117277 $18768338 $24419399 $30070460 $35721522 $41372583 $47023644 $52674705
$58325767
$63976828
110 Mean $30907500 $(22514341) $(16863280) $(11212219) $(5561157) $89904 $5740965 $11392026 $17043088 $22694149 $28345210 $33996271 $39647333 $45298394 $50949455
$56600517
$62251578
120 Mean $33690000 $(25964842) $(20313780) $(14662719) $(9011658) $(3360596) $2290465 $7941526 $13592587 $19243649 $24894710 $30545771 $36196832 $41847894 $47498955
$53150016
$58801077
130 Mean $36472500 $(29415342) $(23764281) $(18113219) $(12462158) $(6811097) $(1160035) $4491026 $10142087 $15793148 $21444210 $27095271 $32746332 $38397393 $44048455
$49699516
$55350577
140 Mean $39255000 $(32865842) $(27214781) $(21563720) $(15912658) $(10261597) $(4610536) $1040525 $6691587 $12342648 $17993709 $23644771 $29295832 $34946893 $40597954
$46249016
$51900077
150 Mean $42037500 $(36316342) $(30665281) $(25014220) $(19363159) $(13712097) $(8061036) $(2409975) $3241086 $8892148 $14543209 $20194270 $25845331 $31496393 $37147454
$42798515
$48449577
175 Mean $48993750 $(44942593) $(39291532) $(33640471) $(27989409) $(22338348) $(16687287) $(11036226) $(5385164) $265897 $5916958 $11568019 $17219081 $22870142 $28521203
$34172265
$39823326
200 Mean $55950000 $(53568844) $(47917783) $(42266721) $(36615660) $(30964599) $(25313538) $(19662476) $(14011415) $(8360354) $(2709293) $2941769 $8592830 $14243891 $19894952
$25546014
$31197075
Highest End $80895000 $(84502440) $(78851378) $(73200317) $(67549256) $(61898195) $(56247133) $(50596072) $(44945011) $(39293950)
$(33642888)
$(27991827)
$(22340766)
$(16689705)
$(11038643)
$(5387582) $263479
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-13
Appendix H
Hotel Sensitivity Analysis ADRs Development Costs (Optimistic Scenario)
SENSITIVITY ANALYSIS Optimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(15169972) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $7632105 $14356961 $21081817 $27806673 $34531528 $41256384 $47981240 $54706096 $61430951 $68155807 $74880663 $81605519 $88330374 $95055230
$101780086 $108504942
40 Mean $11430000 $4860544 $11585400 $18310256 $25035112 $31759967 $38484823 $45209679 $51934535 $58659390 $65384246 $72109102 $78833958 $85558813 $92283669 $99008525 $105733381
70 Mean $19777500 $(5490957) $1233899 $7958755 $14683611 $21408466 $28133322 $34858178 $41583034 $48307889 $55032745 $61757601 $68482457 $75207312 $81932168 $88657024 $95381880
Median End $24120000 $(10875969) $(4151113) $2573742 $9298598 $16023454 $22748310 $29473165 $36198021 $42922877 $49647733 $56372588 $63097444 $69822300 $76547156 $83272011 $89996867
Mean End $28125000 $(15842457) $(9117602) $(2392746) $4332110 $11056966 $17781821 $24506677 $31231533 $37956389 $44681244 $51406100 $58130956 $64855812 $71580667 $78305523 $85030379
105 Mean $29516250 $(17567708) $(10842852) $(4117996) $2606860 $9331715 $16056571 $22781427 $29506283 $36231138 $42955994 $49680850 $56405706 $63130561 $69855417 $76580273 $83305129
110 Mean $30907500 $(19292958) $(12568102) $(5843246) $881610 $7606465 $14331321 $21056177 $27781033 $34505888 $41230744 $47955600 $54680456 $61405311 $68130167 $74855023 $81579879
120 Mean $33690000 $(22743458) $(16018602) $(9293747) $(2568891) $4155965 $10880821 $17605676 $24330532 $31055388 $37780244 $44505099 $51229955 $57954811 $64679667 $71404522 $78129378
130 Mean $36472500 $(26193958) $(19469103) $(12744247) $(6019391) $705465 $7430320 $14155176 $20880032 $27604888 $34329743 $41054599 $47779455 $54504311 $61229166 $67954022 $74678878
140 Mean $39255000 $(29644459) $(22919603) $(16194747) $(9469891) $(2745036) $3979820 $10704676 $17429532 $24154387 $30879243 $37604099 $44328955 $51053810 $57778666 $64503522 $71228378
150 Mean $42037500 $(33094959) $(26370103) $(19645247) $(12920392) $(6195536) $529320 $7254176 $13979031 $20703887 $27428743 $34153599 $40878454 $47603310 $54328166 $61053022 $67777877
175 Mean $48993750 $(41721210) $(34996354) $(28271498) $(21546643) $(14821787) $(8096931) $(1372075) $5352780 $12077636 $18802492 $25527348 $32252204 $38977059 $45701915 $52426771 $59151627
200 Mean $55950000 $(50347461) $(43622605) $(36897749) $(30172893) $(23448038) $(16723182) $(9998326) $(3273470) $3451385 $10176241 $16901097 $23625953 $30350808 $37075664 $43800520 $50525376
Highest End $80895000 $(81281056) $(74556201) $(67831345) $(61106489) $(54381633) $(47656778) $(40931922) $(34207066) $(27482210) $(20757355)
$(14032499) $(7307643) $(582787) $6142068 $12866924 $19591780
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-14
Appendix I
Hotel Sensitivity Analysis ADRs Development Costs (Pessimistic Scenario)
SENSITIVITY ANALYSIS Pessimistic Scenario
Effect of Change in Yr 1 ADRs amp Estimated Development Costs on Projected NPV
150 Rooms
Year 1 Average Daily Rates
$(21827498) 15000 20000 25000 30000 35000 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 90000
∆ D
eve
lop
men
t C
osts
Lowest End $9195000 $1189338 $5766605 $10343872 $14921139 $19498406 $24075672 $28652939 $33230206 $37807473 $42384739 $46962006 $51539273 $56116540 $60693807 $65271073 $69848340
40 Mean $11430000 $(1582222) $2995044 $7572311 $12149578 $16726845 $21304111 $25881378 $30458645 $35035912 $39613179 $44190445 $48767712 $53344979 $57922246 $62499512 $67076779
70 Mean $19777500 $(11933723) $(7356457) $(2779190) $1798077 $6375344 $10952610 $15529877 $20107144 $24684411 $29261678 $33838944 $38416211 $42993478 $47570745 $52148011 $56725278
Median End $24120000 $(17318736) $(12741469) $(8164202) $(3586936) $990331 $5567598 $10144865 $14722131 $19299398 $23876665 $28453932 $33031199 $37608465 $42185732 $46762999 $51340266
Mean End $28125000 $(22285224) $(17707958) $(13130691) $(8553424) $(3976157) $601110 $5178376 $9755643 $14332910 $18910177 $23487443 $28064710 $32641977 $37219244 $41796511 $46373777
105 Mean $29516250 $(24010475) $(19433208) $(14855941) $(10278674) $(5701407) $(1124141) $3453126 $8030393 $12607660 $17184927 $21762193 $26339460 $30916727 $35493994 $40071260 $44648527
110 Mean $30907500 $(25735725) $(21158458) $(16581191) $(12003924) $(7426658) $(2849391) $1727876 $6305143 $10882410 $15459676 $20036943 $24614210 $29191477 $33768743 $38346010 $42923277
120 Mean $33690000 $(29186225) $(24608958) $(20031691) $(15454425) $(10877158) $(6299891) $(1722624) $2854642 $7431909 $12009176 $16586443 $21163710 $25740976 $30318243 $34895510 $39472777
130 Mean $36472500 $(32636725) $(28059458) $(23482192) $(18904925) $(14327658) $(9750391) $(5173125) $(595858) $3981409 $8558676 $13135943 $17713209 $22290476 $26867743 $31445010 $36022276
140 Mean $39255000 $(36087226) $(31509959) $(26932692) $(22355425) $(17778158) $(13200892) $(8623625) $(4046358) $530909 $5108175 $9685442 $14262709 $18839976 $23417243 $27994509 $32571776
150 Mean $42037500 $(39537726) $(34960459) $(30383192) $(25805926) $(21228659) $(16651392) $(12074125) $(7496858) $(2919592) $1657675 $6234942 $10812209 $15389475 $19966742 $24544009 $29121276
175 Mean $48993750 $(48163977) $(43586710) $(39009443) $(34432176) $(29854910) $(25277643) $(20700376) $(16123109) $(11545842) $(6968576) $(2391309) $2185958 $6763225 $11340491 $15917758 $20495025
200 Mean $55950000 $(56790227) $(52212961) $(47635694) $(43058427) $(38481160) $(33903894) $(29326627) $(24749360) $(20172093) $(15594826) $(11017560) $(6440293) $(1863026) $2714241 $7291507 $11868774
Highest End $80895000 $(87723823) $(83146556) $(78569290) $(73992023) $(69414756) $(64837489) $(60260223) $(55682956) $(51105689) $(46528422) $(41951155)
$(37373889)
$(32796622)
$(28219355)
$(23642088)
$(19064822)
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-15
Appendix J
Financial Assumptions Made by HII (Hotel)
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-16
Appendix K
HVS Hotel Development Cost Forecasted Per-Room Averages (2007)
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-17
Appendix L
HVS Hotel Development Cost Actual Per-Room Cost Ranges (2004-2006)
httpwwwhospitalitynetorgfile152003166pdf
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
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rst
Am
he
rst
Am
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rst
Am
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rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
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Am
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rst
Ne
w S
ale
m
Le
ve
rett
Am
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Am
he
rst
Am
he
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Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-18
Appendix M
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Realistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Realistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $6127256 $7230928 $8428049 $9725125 $10201657
$10701538
$11225913
$11775983 $12353006 $12958303 $13593260 $14259330 $14958037 $15690981 $16459839
Costs $(5332901)
$(6196213)
$(7175836)
$(8214794)
$(8596496)
$(8996900)
$(9416925)
$(9857531)
$(10319727)
$(10804570)
$(11313170)
$(11846692)
$(12406356)
$(12993444)
$(13609300)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(143145) $97215 $314713 $572831 $667661 $767137 $871488 $980952 $1095779 $1216234 $1342590 $1475138 $1614181 $1760036 $1913039
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
Working Capital $(1140000)
Terminal Project Value $2168285
Incremental Cash Flow $(27096715) $369387 $609746 $827244 $1085362 $1180192 $1279669 $1384019 $1493483 $1608311 $1728765 $1855121 $1987669 $2126712 $2272568 $2425570
PV $(27096715) $331705 $491689 $599027 $705761 $689139 $670999 $651685 $631490 $610671 $589446 $568003 $546504 $525084 $503857 $482920
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-19
Appendix N
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Optimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Optimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $7659070 $8837801 $10113658
$11493330 $12056503 $12647272 $13266988 $13917071 $14599007 $15314358 $16064762 $16851935 $17677680 $18543886 $19452537
Costs $(6559884)
$(7479550)
$(8526009)
$(9631126)
$(10082228)
$(10555434)
$(11051826)
$(11572542)
$(12118773)
$(12691770)
$(13292843)
$(13923369)
$(14584791)
$(15278622)
$(16006451)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $161686 $420752 $650149 $924704 $1036775 $1154338 $1277662 $1407028 $1542734 $1685089 $1834419 $1991066 $2155390 $2327765 $2508586
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
Working Capital $(1140000)
Terminal Project Value $2700661
Incremental Cash Flow $(26564339) $674218 $933283 $1162681 $1437235 $1549307 $1666870 $1790193 $1919560 $2055265 $2197620 $2346950 $2503598 $2667921 $2840296 $3021117
PV $(26564339) $605440 $752584 $841924 $934568 $904672 $874030 $842937 $811648 $780378 $749308 $718592 $688357 $658708 $629730 $601491
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-20
Appendix O
Hotel Discounted Cash Flow Analysis Operating Cash Flow (Pessimistic Scenario)
Discounted Cash Flow Analysis (Operating Cash Flow) Pessimistic Scenario
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Capital Expenditure $(28125000)
Gross Revenue $4595442 $5624055 $6742439 $7956921 $8346810 $8755804 $9184838 $9634895 $10107005
$10602248
$11121758
$11666724 $12238394 $12838075 $13467141
Costs $(4105918)
$(4912877)
$(5825662)
$(6798462)
$(7110763)
$(7438367)
$(7782024)
$(8142520)
$(8520680)
$(8917370)
$(9333497)
$(9770015)
$(10227922)
$(10708267)
$(11212149)
Depreciation $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500) $(937500)
EBIT $(447976) $(226322) $(20723) $220958 $298546 $379936 $465314 $554875 $648825 $747379 $850761 $959209 $1072972 $1192308 $1317492
Property Tax $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969) $(424969)
Depreciation $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500 $937500
After Tax Cash Flow $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
Working Capital $(1140000)
Terminal Project Value $1635909
Incremental Cash Flow $(27629091) $64556 $286210 $491808 $733490 $811078 $892467 $977845 $1067407 $1161356 $1259910 $1363292 $1471741 $1585503 $1704839 $1830024
PV $(27629091) $57970 $230795 $356129 $476955 $473605 $467969 $460432 $451332 $440963 $429583 $417415 $404651 $391460 $377985 $364350
The model does not include periodic renovation expenses
Terminal project value is estimated as incremental cash flow in Year 15 multiplied by 5 and discounted at WACC
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
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Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-21
Appendix P
Hotel Break-even (Realistic Scenario)
Break-even Analysis
Year 1
Revenue $6127256
Variable Expenses $355905741
Contribution Margin 2568199
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 4191
Total Revenue Required to Break-even
$724141306
Break-even occupancy rate assuming ADR $150 11818
Break-even Analysis
Year 5
Revenue $10201657
Variable Expenses $649880534
Contribution Margin 3702851
Fixed Costs $2097690
Depreciation $937500
Fixed Costs and Depreciation $3035190
CM Ratio 3630
Total Revenue Required to Break-even
$836219642
Break-even occupancy rate assuming ADR $182 8197
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-22
Appendix Q
Hotel Break-even (Optimistic Scenario)
Break-even Analysis Optimistic Scenario
Year 1
Revenue $7659070
Variable Expenses $454079051
Contribution Margin 3118280
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 4071
Total Revenue Required to Break-even
$820198940
Break-even occupancy rate assuming ADR $155 10709
Break-even Analysis Optimistic Scenario
Year 5
Revenue $12056503
Variable Expenses $768040631
Contribution Margin 4376097
Fixed Costs $2401822
Depreciation $937500
Fixed Costs and Depreciation $3339322
CM Ratio 3630
Total Revenue Required to Break-even
$920010262
Break-even occupancy rate assuming ADR $188 7631
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-23
Appendix R
Hotel Break-even (Pessimistic Scenario)
Break-even Analysis Pessimistic Scenario
Year 1
Revenue $4595442
Variable Expenses $257732432
Contribution Margin 2018118
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 4392
Total Revenue Required to Break-even
$621887569
Break-even occupancy rate assuming ADR $155 13533
Break-even Analysis Pessimistic Scenario
Year 5
Revenue $8346810
Variable Expenses $531720437
Contribution Margin 3029606
Fixed Costs $1793559
Depreciation $937500
Fixed Costs and Depreciation $2731059
CM Ratio 3630
Total Revenue Required to Break-even
$752429022
Break-even occupancy rate assuming ADR $188 9015
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-24
Appendix S
Hotel Development Costs at Various Grade Levels
Development Costs BudgetEconomy Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $7500000
$50000 $ 83800 $ 27300 $ 45500 Building Soft Costs $690000
$4600 $ 13200 $ 600 $ 2400 FFE $1365000
$9100 $ 16900 $ 4500 $ 9100 Parking $300000
Total Development Costs $9855000
Development Costs Midscale Hotels wo FampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $11715000
$78100 $ 165300 $ 47100 $ 69000 Building Soft Costs $1905000
$12700 $ 60400 $ 2200 $ 9200 FFE $1605000
$10700 $ 25000 $ 5500 $ 10400 Parking $300000
Total Development Costs $15525000
Development Costs Extended Stay Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $13470000
$89800 $ 164800 $ 52900 $ 78800 Building Soft Costs $1995000
$13300 $ 87300 $ 2200 $ 11500 FFE $2190000
$14600 $ 23100 $ 3500 $ 15000 Parking $300000
Total Development Costs $17955000
Development Costs Midscale Hotels wFampB Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $12705000
$84700 $ 142900 $ 46900 $ 69900 Building Soft Costs $2250000
$15000 $ 61200 $ 3300 $ 11800 FFE $2115000
$14100 $ 34700 $ 6600 $ 13300 Parking $300000
Total Development Costs $17370000
Development Costs Full-Service Hotels Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $20085000
$133900 $ 363400 $ 48700 $ 121600 Building Soft Costs $3945000
$26300 $ 122700 $ 2300 $ 16500 FFE $3795000
$25300 $ 51200 $ 8300 $ 20700 Parking $300000
Total Development Costs $28125000
Development Costs Luxury Hotels and Resorts Development Costs
(per room) Number of Rooms 150
Mean High Low Median Construction $58035000
$386900 $ 1369100 $ 188700 $ 335600 Building Soft Costs $18480000
$123200 $ 238000 $ 26000 $ 106000 FFE $9195000
$61300 $ 116400 $ 33900 $ 65400 Parking $300000
Total Development Costs $86010000
Based on HVS 2007 estimates
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-25
Appendix T
HII Hotel 10-Year Cash Flow Pro Forma
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-26
Appendix U
HII Hotel Cash Flow Supportable DebtEquity Projections
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-27
Appendix V
HII Hotel Capital Costs Financial Summary
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-28
Appendix W
LIFESTYLE MARKET ANALYSTreg
The Lifestyle Market Analyst (LMA) is a consumer market analysis tool that
provides a market potential guide at the local regional and national levels The inputs for
the 2007 LMA edition included a sample of 73 million households for national data and
139 million households for county data The LMA is a joint venture of SRDS Media
Solutions and Equifax
The LMA provides a score centered on the number 100 which measures how
residents in a given geographic area spend their time and money as compared to the US
population at large If a given Designated Market Area (DMA) receives a score of 110 in
―Attend Cultural Arts Events this can be interpreted as the rate of household
participation in Attend Cultural Arts Events within ______ is 10 percent higher than the
US household rate of participation (110100 = 10 percent) Similar scores are
generated to measure demographic trends at the local and regional levels
The US is divided into 210 DMAs as defined by Nielsen Research Essentially
four DMAs lie within the two-hour drive radius of the BSS site1 The largest of thesemdash
by farmdashis the Boston MA (Manchester NH) DMA In Appendix W-1 The Team offers
results of aggregate data from the four DMAs as well as Fairfield County CT As data
in W-1 is weighted by DMA populations consumer lifestyle habits in the Boston MA
DMA will have a heavy impact on the overall market feasibility analysis Based on the
way the LMA data is structured the populations defined as within the two-hour radius
can not exactly match a two-hour radius as defined in the HII study Nevertheless the
1 Fairfield County CT is included within the New York NY DMA is within approximately two hours and
is included in The Teamrsquos data sample All other counties included within the New York NY DMA lie
outside the two hour radius
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-29
populations are mostly identical and the differences between the two populations should
not meaningfully impact the assigned lifestyle and demographic scores
In performing this analysis The Team sought to determine if there is an unusually
high market potential centered on the BSS site It tracked the indicators that seemed most
relevant to the Cold Spring project as presented These included ―Dieting Weight
Control ―Health Natural Foods ―Improving Your Health ―Attend Cultural Arts
Events and ―Horseback Riding Additionally The Team measured ―Real Estate
Investments as a gauge for how easy it might be to attract investors in the area2
The target area measured below-average for every lifestyle indicator excepting
―Attend Cultural Arts events This strongly damages the assertion that there is unusual
demand for health and wellness services in the region Area residents do have an affinity
for culture and the arts and it may make sense to include such components in a plan
Surprisingly ―Horseback riding came up well below-average The target DMAs include
some of the lowest market potential scores for the indicator in the nation3
The demographic trends are much more encouraging There is a plethora of high-
income ($75000-plus) age 45-64 residents within the two-hour radius This strongly
supports the use of the land towards providing services aimed at those who fit the defined
target demographic characteristics
The Team believes that Appendix W-5 which measures lifestyle indicators in the
Springfield-Holyoke MA region can be particularly useful to the BEDIC
2 Investment of course can stem from anywhere in the world but The Team believed that if the site or
town itself has a unique and compelling draw to it local investors would recognize this and perhaps be
more inclined to invest This may not be critical but The Team figured it could not hurt to measure real
estate investment market potential in the area 3 The Springfield-Holyoke DMA where Belchertown is located ranks 209
th out of 210 overall
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-30
Appendix W-1
LMAreg
All Target DMAs
Appendix W-1--Lifestyle Market Analyst
ALL TARGET DMAs
Area Population 9304860
Top Area Indicators
Top Ten Finishes
Snow Skiing Frequently 5 Own an AppleMac PC 2
Wines 5 Own a Blackberry 2
Gourmet Cooking Fine Foods 4 Frequent Flyer 2
Boating Sailing 4 WildlifeEnvironmental 1
Casino Gambling 3 Flower Gardening 1
Foreign Travel 3 Vegetable Gardening 1
Attend Cultural Arts Events 3 Use a Wireless Internet 1
Tennis Frequently 3 Cruise Ship Vacations 1
Own a Cat 2 Fashion Clothing 1
Shop by Catalog Mail 2 Own an HDTV 1
Needlework Knitting 2 Walking for Health 1
50
Key Indicators
Index Nation Avg
Attend Cultural Arts Events 11547237 100
Real Estate Investments 9280596 100
Dieting Weight Control 98188055 100
Health Natural Foods 97849085 100
Improving Your Health 98855277 100
Horseback Riding 67083832 100
Target Demographic
Index Nation Avg
45-64 Income $50000-$74999 98797289 100
45-64 Income $75000+ 13085616 100
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-31
Appendix W-2
LMAreg
Boston (Manchester NH) DMA
Appendix W-2--Lifestyle Market Analyst
DMA Boston (Manchester NH)
Encompasses Essex Middlesex Norfolk Plymouth Suffolk Worcester Hillsborough Rockingham amp Stafford Counties
Area Population 4791623
Top 10 Area Indicators
Index
Snow Skiing Frequently 176
Own an Apple Mac PC 136
Foreign Travel 129
Own a Blackberry 124
Frequent Flyer 122
Wines 122
Boating Sailing 121
Use a Wireless Internet 120
Attend Cultural Arts Events 118
Tennis Frequently 118
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 118 18
Real Estate Investments 95 83
Dieting Weight Control 96 180
Health Natural Foods 95 119
Improving Your Health 98 118
Horseback Riding 67 199
Target Demographic
Index
45-64 Income $50000-$74999 98
45-64 Income $75000+ 135
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-32
Appendix W-3
LMAreg
Hartford amp New Haven CT DMA
Appendix W-3--Lifestyle Market Analyst
DMA Hartford amp New Haven CT
Encompasses Hartford Litchfield Middlesex New Haven New London Tolland amp Windham Counties
Area Population 2018227
Top 10 Area Indicators
Index
Snow Skiing Frequently 129
Wines 124
Gourmet Cooking Fine Foods 120
Attend Cultural Arts Events 115
Tennis Frequently 114
Shop by Catalog Mail 113
Casino Gambling 112
Foreign Travel 111
Boating Sailing 111
Own a Cat 109
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 115 21
Real Estate Investments 86 107
Dieting Weight Control 100 130
Health Natural Foods 102 57
Improving Your Health 99 110
Horseback Riding 76 187
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 133
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-33
Appendix W-4
LMAreg
Providence RI ndash New Bedford MA DMA
Appendix W-4--Lifestyle Market Analyst
DMA Providence RI - New Bedford MA Encompasses Bristol Kent Newport Providence amp Washington Counties
Area Population 1276587
Top 10 Area Indicators
Index
Snow Skiing Frequently 124
Boating Sailing 121
Gourmet Cooking Fine Foods 118
Casino Gambling 116
Wines 114
Cruise Ship Vacations 113
Fashion Clothing 111
Own an HDTV 110
Needlework Knitting 109
Walking for Health 108
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 103 48
Real Estate Investments 87 103
Dieting Weight Control 105 62
Health Natural Foods 96 114
Improving Your Health 95 155
Horseback Riding 53 207
Target Demographic
Index
45-64 Income $50000-$74999 102
45-64 Income $75000+ 104
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-34
Appendix W-5
LMAreg
Springfield-Holyoke MA DMA
Appendix W-5--Lifestyle Market Analyst
DMA Springfield-Holyoke MA Encompasses Franklin Hampden amp Hampshire Counties
Area Population 539034
Top 10 Area Indicators
Index
Snow Skiing Frequently 126
WildlifeEnvironmental 116
Own a Cat 114
Gourmet Cooking Fine Foods 113
Casino Gambling 110
Shop by Catalog Mail 109
Wines 108
Flower Gardening 107
Needlework Knitting 107
Vegetable Gardening 106
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 106 37
Real Estate Investments 77 146
Dieting Weight Control 100 149
Health Natural Foods 103 49
Improving Your Health 101 96
Horseback Riding 49 209
Target Demographic
Index
45-64 Income $50000-$74999 110
45-64 Income $75000+ 99
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-35
Appendix W-6
LMAreg
New York NY DMA (Fairfield County CT Subset)
Appendix W-6--Lifestyle Market Analyst
Fairfield County CT Subset of New York NY DMA
Area Population 679389
Top 10 Area Indicators
Index
Tennis Frequently 192
Snow Skiing Frequently 186
Own a Blackberry 165
Foreign Travel 156
Frequent Flyer 151
Own an Apple Mac PC 146
Wines 144
Attend Cultural Arts Events 130
Gourmet Cooking Fine Foods 129
Boating Sailing 124
Key Indicators
Index Rank (of 210)
Attend Cultural Arts Events 130 --
Real Estate Investments 121 --
Dieting Weight Control 94 --
Health Natural Foods 105 --
Improving Your Health 110 --
Horseback Riding 82 --
Target Demographic
Index
45-64 Income $50000-$74999 80
45-64 Income $75000+ 171
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-36
Appendix X
MOTT Strategic MA Market Research Findings
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-37
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-38
Appendix Y
Vacation Spa Locations amp Area Resorts
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Topnotch
Resort amp Spa
$195-$595 for deluxe room
$245-$645 for executive
room
108 Luxury destination resort spa
Weddings tennis academy (one of
―Top 25 Tennis Camps in
America) skiing dining and other
outdoor activities
NYC Boston Washington
DC Philadelphia
Chicago Burlington
Montreal Toronto
Hartford Portland ME
Stowe VT
Green Mountains Smugglersrsquo Notch State Park
Stowe Village Vermont Ski Museum Spruce Peak
Mountain Von Trapp Family Lodge Ben amp Jerryrsquos
Factory restaurants shops outdoor activities
Stoweflake
Mountain
Resort amp Spa
$122-$264 accommodation
and breakfast
164 Resort amp spa
Golf weddings outdoor activities
skiing hot air balloon festival
Boston Hartford NYC
Albany New Jersey PA
Stowe VT
Equinox
Resort
$399-$499 Peak
$289-$389 Off-season
(Room only)
195 Luxury Hotel resort
Meeting amp event space golf school
of falconry fly fishing skeet
shooting restaurants skiing
Albany Hartford Boston
NYC Brattleboro
Montreal Portland ME
Manchester Village VT
Mansions golf course art center resort town (the
Equinox) nearby outlet stores Green Mountains
Emerald Lake State Park
Canyon Ranch
Lenox
$830-$1320 per night all-
inclusive deluxe room
$757-$1247 per night spa
sampler deluxe room
126 Destination resort amp spa
Outdoor fitness and healthcare
programs
Lenox MA
Berkshires Tanglewood Norman Rockwell
Museum Edith Wharton Estate theaters shops
restaurants Jacobrsquos Pillow Mass MoCA
Cranwell Resort $195-445 FallWinter
$295-565 SpringSummer
(singledoubles amp suites)
114 Resort Spa Golf Club
3 restaurants weddings
meetingsretreats
NYC Hartford Boston
Albany Central NJ
Providence
Lenox MA
Deerfield Spa $360-$595 per night $850-
$1420 weekly Some with
shared bath Weekly
packages include $70
massage or $150 personal
services
33 All inclusive destination spa
Was classified as one of best cheap
spas as well as included in the list
of top 10 destination spas
New York
WashingtonBaltimore
New England Philadelphia
Pittsburgh
East Stroudsburg PA
Located in the Pocono Mountains Farmers
markets wineries shopping restaurants golf and
outdoor activities throughout the Pocono area
Mayflower Inn
amp Spa
Room rates $450-$700
Suite rates $700-$1400
28 Luxury Inn and spa Tennis courts
putting green outdoor activities
Was in the list of 10 top destination
spas
New York City Albany
Boston Millbrook New
Jersey CT Philadelphia
Stamford Norwalk Westport
Washington CT
Located in Litchfield County Attractions include
antiquing art galleries restaurants and theaters
Kripalu Center
for Yoga
And Health
$152-437 ―Renewal amp
Retreat (meals
accommodation program
activities) Single double
dorms (6-22 beds)
Yoga
Focus on women
Albany Boston Montreal
Hartford NYC Providence
Lenox MA
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-39
Name Price No of
rooms
Hotel classification and on-
site activities
Market served Area Infrastructure
Mountain View
Grand
Resort amp Spa
SingleDouble $129 - $309
SuitesSpecialty $409 - $679
145 Resort amp Spa
Weddings meetings golf outdoor
activities skiing movie theater four
restaurants
Boston Montreal Hartford
NY Concord Burlington
Portland ME
Whitefield NH
White Mountains and Mt Washington nearby
Forest Lake State Park Franconia Notch State Park
resorts
The Spa at
Grand Lake
$275 - $375 per night
(Includes 30 min massage 3
meals fitness classes and full
use of facilities)
44 Destination Spa NYC NJ Boston
Providence Hartford
Lebanon CT
Golf casino gambling (154 mi Mohegan 198 mi
Foxwoods) antiquing theaters wineries flea
markets farms amp state parks Revolutionary War
Office
Gideon Putnam
Hotel amp Spa
$129 - $303 per night 120 Resort amp Spa
Golf located in the center of
Saratoga Spa State Park outdoor
activities
Albany Buffalo NYC
Boston
Saratoga Springs NY
Roosevelt Mineral Baths and Spa Saratoga Gaming
amp Raceway museums Hall of Springs Little
Theatre Saratoga Performing Arts Centerreg
Copperhood Inn
amp Spa
$325 off-peak and $350 peak
per person based on double
occupancy Includes
accommodations meals
meditation and fitness
programs
16 Inn and spa Dining weddings
meetings tennis court cross country
skiing hiking massage Was listed
as a best cheap spa
New York City Albany Shandaken NY
Copperhood is located in the Catskills which is a
huge tourist destination
Rich in restaurants lodging outdoor activities and
shopping
Buttermilk Falls
Inn amp Spa
$225-$450 per night
13 Inn and spa Weddings business
retreats meetings afternoon tea
organic garden and farm
New York City Boston
Connecticut Albany
Milton NY
In the Hudson Valley Plenty of museums theaters
outdoor activities and restaurants Major draws
include West Point Vanderbilt family historical
sites and FDR
Mirbeau Inn
amp Spa
$359-$410 peak season
$265 off-season
(room only)
34 Inn amp Spa
Award-winning restaurant boutique
outdoor activities weddings day
spa groups meetings
NY (all directions NY) Skaneateles NY
NYs Finger Lakes Wine Country Golf summer
music festival Christmas festival boat excursions
inns restaurants shopping
Mirror Lake Inn
Resort
amp Spa
$305 peak
$250 off-season
(standard room only)
128 Resort amp Spa
Family reunions meetings three
restaurants fitness center private
beach golf outdoor activities
Albany Boston Buffalo
Hartford Montreal NJ
NYC Ottawa Plattsburgh
Rochester Springfield
Syracuse Toronto Utica
VT
Lake Placid NY
Lake Placid was the site of the 1980 Olympics
Adirondack Mountains vineyards golf shops
theater Adirondack Museum
A review of this destination spa was done because of its designation as one of the ―Best Cheap Destination Spas taken from ―Best Cheap Destination Spas by Anitra Brown
located at httpspasaboutcomoddestinationspasacheapdestspahtm
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-40
Appendix Z
Pioneer Valley Real Estate Properties
List $ per Square Foot Prudential Sawicki Real Estate Properties
41408
0
50
100
150
200
250
300
350
400
Pe
lha
m
Am
he
rst
Be
lch
ert
ow
n
Be
lch
ert
ow
n
Am
he
rst
Ha
dle
y
Be
lch
ert
ow
n
Ha
dle
y
Am
he
rst
We
nd
ell
Am
he
rst
Be
lch
ert
ow
n
S H
ad
ley
Am
he
rst
S H
ad
ley
Pe
lha
m
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Le
ve
rett
Le
ve
rett
Ha
dle
y
Am
he
rst
Am
he
rst
Ne
w S
ale
m
Le
ve
rett
Am
he
rst
Am
he
rst
Am
he
rst
Am
he
rst
Pe
lha
m
Town
Pri
ce p
er
Sq
F
t
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-41
Appendix AA
Former MA State School Property Redevelopments
Specters of old state hospitals vanish as new uses take shape
By Robert Preer Globe Correspondent | July 8 2007
Scattered across Massachusetts are imposing brick and stone buildings that resemble
castles set on hundreds of acres of meadows fields and woods -- places once thought to be
ideal for the care of the mentally ill and disabled
Nearly all of the sprawling state hospitals and schools once called insane asylums
and other names that sound cruel today were closed in the 1970s and 1980s as mental health
treatment and residential facilities switched to smaller group settings After several decades
of neglect most of these unusual properties finally are now finally being redeveloped
Now from new municipal facilities to retail complexes to sprawling residential
developments the abandoned hospitals and their grounds are undergoing renovation for an
extraordinary range of uses One property alone the former Boston State Hospital in
Dorchester and Mattapan is host to multiple developments It already has a new nature
center state laboratory and dozens of suburban-style homes with hundreds more
condominiums and apartments a fitness center nursing home and community garden to
come
Grafton State Hospital houses a veterinary school Restaurants and stores are coming
to former state hospitals in Lakeville and Foxborough Danvers will have an out patient
medical center
Each one is its own story said Peter Norstrand deputy commissioner of the state
Division of Capital Asset Management the state agency overseeing the properties They are
mostly mixed uses with a preponderance of housing
Each of the sales took years to accomplish and required legislative votes to transfer
ownership of the properties Danvers State Hospital sold for $19 million and Metropolitan
State Hospital for $106 million a 50-acre slice of the 1000-acre Grafton State Hospital
recently sold for nearly $2 million
Weve certainly generated proceeds but when you factor in costs of maintaining the
properties over the years its hard to say weve made money said Norstrand
Among the hospitals being redeveloped
Boston State Hospital
At the far end Bostons Emerald Necklace near Forest Hills Cemetery and Franklin Park this
250-acre campus was closed in 1979 A light-filled Nature Center for the Massachusetts
Audubon Society the Massachusetts Medical School biological laboratory and
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-42
approximately 100 one- and two-family homes are completed The two residential projects
are a 99-unit mix of single-family housing and duplexes called Harvard Commons by Cruz
Development Corp and Olmsted Green a 500-unit condominium and apartment complex
co developed by Lena Park Community Development Corp and New Boston Fund The
development also will have a community center nursing home and community gardens
Danvers State Hospital
This Victorian-era campus was one of the most notorious state mental institutions before its
closure in 1992 and its Gothic setting played host to the shooting of a horror movie in 2001
AvalonBay Communities Inc is now building a neighborhood on around 75 acres of the
grounds including 433 luxury apartments and 64 condominiums Some are already occupied
but construction on others was delayed when a fire swept through several buildings in May
Portions of the historic Kirkbride building with its steeply pitched slate roofs and spires will
be preserved
Foxboro State Hospital
A new public safety building for Foxboroughs police and fire departments is already under
construction on this 160-acre property And site work has begun for Chestnut Green a 93-
acre community with playing fields 60000 square feet of retail space five office buildings
and 203 residences a mix of condominiums apartments and single-family The developers
are VinCo Properties Intoccia Construction Co and Douglas A King Builders Inc
Grafton State Hospital
This 1000-acre property in the central Massachusetts hills near Worcester already has Tufts
Veterinary School on half of it Also on the property are the Federal Job Corps offices and
residential facilities run by the state Department of Youth Services and state Department of
Mental Retardation A business park is being developed on 121 acres and housing is planned
for a 50-acre parcel The Massachusetts Bay Transportation Authority has a commuter rail
station there too
Lakeville State Hospital
Closed in 1992 this 72-acre property near the Lakeville-Middleborough town line and a
commuter rail station sold for $24 million at auction in 2002 to the Newton real estate firm
National Development with proceeds to fund the state Clean Elections program The existing
structures are scheduled to be demolished later this year and National Development is
planning to build a supermarket department store restaurant two office buildings and 100
units of senior housing
Metropolitan State Hospital
AvalonBay won the rights in December 2003 to redevelop a 23-acre portion of this 490-acre
campus near Route 2 in Lexington Belmont and Waltham The company is building 387
apartments on the Lexington land and about 250 more acres are preserved for open space
and recreation
Northampton State Hospital
This 126-acre campus was closed in 1996 Non profit developer Community Builders Inc
and state agency Mass Development plan to build 100 single-family homes 107 apartments
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-43
an assisted-living facility child-care center open space and 476000 square feet of office
light industrial and retail space Demolition of existing buildings began this year
Robert Preer can be reached at preerglobecom
copy Copyright 2007 Globe Newspaper Company
httpwwwbostoncomrealestatenewsarticles20070708specters_of_old_state_hospitals_vanish_as_new_uses_take_shap
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-44
Appendix BB
Alternative Development Suggestions
Note The Team heard several suggestions for possible land use along the way and it offers
this list here The Team in no way endorses any of these specific suggestions the list is
simply being made available as the BEDIC has asked for such feedback
Consider country clubs with residential component
Budget private school ndash look at Northfield Mt Herman Eaglewood Deerfield
Academy People send their kids to these schools bc theyrsquore safe Some dorm some
not Housing for bodyguards Itrsquos as accessible as the other schools for parents
dropping their kids off
Could have a school that fills a niche Deaf behavioral learning disabilities obesity
Could also couple it with wellness psychologists Could have a summer camp
There is very little light manufacturing in Western MA Industrial light industrial
office park could be a way to go
If yoursquore looking at housing best way to go is ―non-kid related housing (ie condos
with have 3 kids as opposed to 7 kids in single family homes)
Retail ndash there is a trend for on-line stores
Professional buildings ndash may be a possibility
Senior housing ndash good opportunity
Town may be better off offering zones and not the whole thing for development
The best way thing to build at the BSS site would be commercial ndash businesses that
bring people and other businesses to the town
Believes that there needs to be a diverse business base at the BSS site as it would
bring in the most tax revenue and be the most sustainable There should be a
residential component different locally owned businesses civic component Possibly
in conjunction with UMass or Bay State Medical (entities that are going to be around
for a long time) Good examples of this are the garden shop and Humes
Transportation (these are business located on the state school site that were sold off
earlier)
Shopping malls as an alternative Holyoke mall is very powerful because of little
competition It serves a very large area
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-45
Appendix CC
Potential Development Partners
Massachusetts Development Organizations
MassDevelopment
160 Federal Street
Boston MA 02110
Phone (800) 445-8030
Services offered to clients include consensus building project management contract
negotiation site planning oversight environmental assessment oversight funding
identification consultant management market feasibility financial analysis marketing
services site assemblage management publicprivate partnerships permitting brownfields
redevelopment
Westmass Area Development Corporation
255 Padgette Street
Suite One
Chicopee MA 01022
Phone (413) 593-6421 Toll Free (888) 593-6421
Fax (413) 593-5126
wwwwestmassdevelopmentcom
The Westmass Area Development Corporation (Westmass) is an experienced regional
private not-for-profit industrial and business development corporation created to promote and
assist business growth in western Massachusetts Westmass accomplishes these goals by
developing properly zoned and fully permitted industrial park land resources at the cross
roads of New England in the Knowledge Corridor
Pioneer Valley Planning Commission
26 Central Street Suite 34
West Springfield MA 01089-2787
Phone (413) 781-6045
Fax (413) 732-2593
infopvpcorg
PVPCrsquos principal responsibilities include
Bringing a regional and inter-regional perspective to the regionrsquos transportation
housing economic development historic preservation pollution control and resource
management and protection planning
Promoting the regionrsquos interests at the state and federal levels
Assisting municipalities with technical aid grant writing assistance and grant
administration
Fostering cooperative efforts among municipalities to achieve better land
development public service and financial efficiency
Enhancing collaboration between the public and private sectors in the Pioneer Valley
region
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-46
Gathering maintaining and making available planning-related data
Massachusetts Office of Business Development
Mike Vedovelli Regional Director for Pioneer Valley
53 Court St Suite 203
Westfield MA 01085
Phone (413) 562-8780
Fax (413) 562-2578
The Massachusetts Office of Business Development (MOBD) is committed to assisting
companies who want to locate expand grow or maintain a presence in Massachusetts
Through nine offices and five industry specialists MOBD works with companies and
municipalities to help them take advantage of available economic incentive programs
MOBD also assists companies in navigating and accessing the technical human financial
training educational and site-finding resources necessary to expand or locate in
Massachusetts
Retirement communities
Loomis Communities
246 North Main Street South Hadley MA 01075
Applewood in Amherst
Loomis House at the foot of Mt Tom
Loomis Village in South Hadley
Phone (800) 865-7655
Phone (413) 532-5325
Kendal Corporation
The Kendal Corporation development services staff provides a high level of expertise and
service to not-for-profit organizations interested in developing retirement communities that
will become a part of the not-for-profit Kendal system
David Jones Project Director
(610) 335-1245
infokcorpkendalorg
The following state hospitals were developed andor aided by the organizations listed
below Boston State Hospital Danvers State Hospital Foxboro State Hospital Grafton
State Hospital Lakeville State Hospital Metropolitan State Hospital Northampton
State Hospital
Division of Capital Asset Management
One Ashburton Place
Boston MA 02108
Phone (617) 727-4050
Fax (617) 727-5363
EmailINFODCAMstatemaus
DCAMrsquos services include Planning bull Design bull Construction bull Capital Repairs amp
Improvements bull Asset Management
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-47
Contractor Certification and Compliance bull Leasing bull Acquisition and Disposition bull
Maintenance
John B Cruz Construction Inc
Cruz Management Co Inc
Cruz Development Corporation
John B Cruz III
President
One John Eliot Square
Roxbury MA 02119
Phone (617) 445-6901
Fax (617) 442-2496
infocruzcompaniescom
Cruz Development has developed over 1500 units of housing and proudly specializes in
Build-To-Suit projects Once a location is identified the Cruz Development team negotiates
with the proper financiers lenders and government agencies to obtain funding building
permits and environmental approvals Then the Cruz team works with architects and
engineers to orchestrate schedules and construction details
Avalon Bay Communities
Boston MA
51 Sleeper Street Suite 750
Boston MA 02210
Phone (617) 654-9500
Fax (617) 426-1610
Award-winning AvalonBay Communities Inc is in the business of developing
redeveloping acquiring and managing luxury rental communities Our apartments are located
in high barrier-to-entry markets across the country including the Northeast Mid-Atlantic
Midwest Pacific Northwest and Northern and Southern California regions
VinCo Properties Inc
434 Massachusetts Avenue Suite 401
Boston MA 02118
Phone (617) 859-5900
Fax (617) 424-9623
Email infovincopropertiescom
VinCo Properties Inc is a Boston-based real estate development company which targets the
acquisition of undervalued real estate assets and undeveloped land VinCo Properties Inc
generates value through the repositioning of existing buildings land entitlement
development opportunities and quality construction
National Development
2310 Washington Street
Newton Lower Falls MA 02462
Phone (617) 527-9800
Phone (617) 965-7361
contactus1natdevcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-48
Since 1983 National Development has been one of New Englandrsquos leading development and
investment firms Our staff of 150 includes experienced individuals with backgrounds in
design engineering construction finance legal and brokerage Our unique culture is both
creative and collaborative Our out of the box thinking is what makes us a leader in the
New England real estate market
Community Builders
95 Berkeley Street Suite 500
Boston MA 02116-6240
Phone (617) 695-9595
Fax (857) 221-8618
The mission of The Community Builders Inc is to build strong communities where people
of all incomes can achieve their full potential We do this by developing financing and
operating high quality affordable mixed-income housing by coordinating access to support
services and by planning and implementing other community and economic initiatives
critical to the communities we serve We focus primarily on meeting the needs of lower
income people not effectively served by market forces We favor a multi-disciplinary
approach and engagements of significant scale that can have a lasting impact We specialize
in large-scale public and assisted housing redevelopment projects transforming distressed
housing projects into anchors for multifaceted revitalization efforts
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-49
Appendix DD
BSS SWOT
BSS Property SWOT
Strengths Weaknesses Opportunities Threats Land available at ―below
market valuehellip
hellipbut dirty perhaps rendering
it a liability instead
Potential nearby casino could
be a positive if phased flexible
implementation is followed
Remediation (who pays) could
stall development
Quabbin Reservoir onsite
water
Traffic counts visibility poor
accessibility arguably poor
Perhaps salvage a few
buildings a couple are unique
Credit markets rough
Safe environment good people Town name Partnership with UMass
hospital area business
More delay = more decay
Some infrastructure already in
place (broadband water
sewage)
Minimal infrastructure (in
terms of attractions)
Strong older richer population Remediation costs could be
greater than believed
Belchertown fastest growing
town in Western MA
Travelers to small towns most
enjoy dining and shopping
hellipnot much of either here
Brownfield funding Development already
completed could limit who
would be interested in placing
on-site
Entranceways to site in place
as well as pass through
property
Marketing funds under Ch 42d
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-50
Appendix EE
Expert Interview Notes
Note The unattributed notes below represent feedback received during expert interviews
Use developers as the main source of information They should know customers
Understand their thinking They might have a checklist of the most critical items that
make such places successful
Think about similar resort Eg Canyon Ranch ndash there are only two of them Why
They pick locations where rich people live Rich people go to Berkshires and AZ Itrsquos
―known
Probably not particularly useful to spend too much time updating data that is two
years old unless we have reason to believe therersquos significant error Investors make
go no-go decisions based on huge cushions
There should be a brand name Brand name can add up 10 of the cost
The Btown property is difficult to evaluate because there is nothing else like it in
Btown
A demand will need to be created bc there currently is no demand
How will guests get from Bradley Airport to the resort Shuttle Will they want to
travel that far
Therersquos a reason they put the state school where it is ndash itrsquos not near anything else
Other wellness centers are built in places where people already go
The critical point in this project is the ―location issue
Contact Hunter Interests and ask them where the numbers come from Contact the
developer and understand his background
Properties to consider Canyon Ranch in Lenox Stoweflake because both have the
same general population base and same ease of access
Even though Btown has connections with the Quabbin and the 5 school area it
doesnrsquot have what the Berkshires have (comparative study)
The casino is only a potential attraction thatrsquos being considered but it most likely will
have a different type of clientele
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-51
The complex needs to be ―cohesive It needs to be recognizable and marketable but
right now itrsquos trying to be all things to all people and this doesnrsquot work
They do have the strength of the Quabbin and it would be good if they could get
people to do bird watching tours hunting etc
Belchertown has boomed and still is Property is immense
15 mins to Pike is good
Typically you look at some combination of retail residential office and light
industrial Residential is easiest to build followed by retail
Health amp Wellness is growinghelliplook at people over 85hellipbut you need cache MA has
a greater older population than most places
Need a catch As a developer spa could intrigue me
Might consider ―ground truthingbring in 3 people to see the site review the plan
and tell you if yoursquore crazy
Doesnrsquot like conference facility idea UMass has its own Agreed that it would be
tough to draw Springfield businesses If I tell my wife letrsquos come out here to
Belchertown shersquoll say no
Businesshellipbuild from within Very difficult to attract
Luxury casino would be a real competitor and that seems to be what theyrsquore talking
about Would need to build flexibility into phasing plan to allow opportunity to
complement casino offerings Again phase over 20-30 years
Look at State Mental Hospitals Were they demolished or revitalized What did they
do
Any developer taking this on would need to ―be in it for the long haul 12-13 years to
break even Would require TIF which is against the EDICrsquos objective
Staffing in a wellness center could be a huge challenge My daughter is a massage
therapist makes $15hr Canrsquot afford to live in Belchertown at that wage
As a destination yoursquod have to recreate the Berkshires That would be challenging If
you can do this you can draw from 6-8 states Otherwise your draw is less Donrsquot
even bother if yoursquore below 3 states Hotel brand could have a huge effect on this For
5-star yoursquoll draw from several states Holiday Inn yoursquoll draw from Western Mass
Motel Six forget about it
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-52
Why not bring a developer and ask him what he wants to do to create jobs and
generate taxes Developers are hungry now Developers may come up with ideas and
evaluate them Specialization for a developer is important Do not look for one
developer
Economy is different today Check current economic conditions A lot of things have
changed
Hunter ndash provided only one solution There should be alternatives
Check where 5-star hotels are located in Massachusetts Are there any in Springfield
If no why If no it may be not a good idea to build a 5-star hotel in Belchertown
Price is not the issue if you go to a luxury spa You want to tell your friends that you
were in the Berkshires
Name of Belchertown ndash bad
Who dictates a decision about this project Belchertown put too many restrictions It
shrinks the number of opportunities and the number of interested developers
Occupancy of 70 ndash this is too high
Financial optimistic pessimistic and realistic (average) Do a SWOT Accept
occupancy 50
Risk premium ndash will be enormous for this project
Debt service coverage ratio ndash take 12
Lumber treatment plants bring in a fair amount of tax revenue
Does not think an industrial park would ever work at the site bc itrsquos not near an
interstate Used a development in Bondsville (a town near Btown) as an example and
said that it took 30 years to get a business in there
Currently applying for funds under Chapter 42d state law If granted they would be
given $100000 state funding for project costs and the site will be marketed (could
help attract developers) by the state
Something that failed Tampax HQ was in Three Rivers (also nearby) Tampax was
bought by Johnson and Johnson the plant was closed and lot of people were out of
work
Look at Community Development Block Grants Brownsfield Funding
Look at MassDevelopment (quasi-state agency)
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-53
Usually you examine the feasibility of several concepts then compare A B C and D
Look at the Lifestyle Market Analyst
Investment will be tough but could look at international investors
Look for comparables of similar sizehellip150 rooms in New England
Office retail and restaurant components seem small
Operating through a consulting firm is appropriate
As a developer would be great to have an aerial view of the property
65 debt is conservative
Interest rate maybe 10-11 will vary with DE
(In regards to Residual Land Value Technique) No lender is going to say this land is
worth _____
No one is knocking down their doors
T-Bills could be a fair opportunity cost measure
Build in moving penalties
Give land away incentivize
Noho is different look for break-even proposition between jobs and housing
Noho also went through multiple planshellipone for a jail one for a ―transition house
multiple environmental impact studies
Noho is two-phased includes (or at least was intended to include) retail industrial
housing (including affordable rate) assisted living child care office light industrial
Connections go a long way
frac34 of Noho land was set aside for agricultural preservation purposes
Noho opened a bid process to developers
EPA controls assessment and cleanup dollars Look to gain these
In a developer consider goals quality experience and capability
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-54
Development is public-owned (MassDevelopment) I would recommend them
Follow up with developers to ensure theyrsquove done the things they say theyrsquove done
Same tax rate in Noho for all property typeshelliplook at square footage
TIF = Tax breaks on new growth value
Recommend Western Massachusetts Development Corporation They would
probably look at the land
Seek professional assistancehellipvery hard to accomplish goals volunteer-wise
Major consideration profit Will this work No Spa wont generate enough traffic
This will be a destination project Must generate immense amount of traffic from a
large trading area
Return - as great as possible Sounds greedy but developers usually set a minimum
return a hurdle rate and work to exceed it Equity partners often dictate that rate
Long term institutional investors accept lower returns There is no standard but 15-
20 is a good start
The town would be better served by letting developers submit their own proposals for
the site Let the market determine the scope and value of the project not consultants
They have no skin in the game
I wouldnrsquot touch this without a thoroughly researched and proven concept that would
draw from a large trading area cutting across many demographics The capture rate
will be fairly low
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom
A-55
Appendix FF
Bibliography
Bloombergcom Rates amp Bonds Retrieved March 18 2008 from
httpwwwbloombergcommarketsratesindexhtml
Hotel Finance Loan Terms Retrieved April 10 2008 from httpwwwhotelfinancecom
Hunter Interests Inc in association with Carol R Johnson Associates and Ms Elizabeth Taras
Master Plan and Development Strategy for the Belchertown State School Property September 15
2005
Lesser Daniel H Rubin Karen Rates of return on hotel investments Cornell Hotel amp Restaurant
Administration Quarterly June 1 1993
Lodging Econometrics Industry Outlook for 2008 Reports a Record Construction Pipeline of 5438
Projects with 718387 Rooms January 28 2008
Lloyd-Jones Anne The Prognosis For Occupancy And Average Rate In A Slowing Economy HVS
March 28 2008
Massachusetts Office of Travel amp Tourism In-State Market Research Findings November 2004
Mintel Oxygen Spa Tourism - International ndash June 2007
Rappaport Liz Bond Loan Markets Remain Wary The Wall Street Journal March 27 2008
PKF Consulting PKF Hospitality Research Trends in the Hotel Industry Singapore Continental
Press Pte Ltd 2006
PKF Hospitality Research Not As Great in 2008 for US Hotels December 10 2007
Ross Westerfield Jordan Fundamentals of Corporate Finance 7th
Edition Boston The McGraw-
HillIrwin 2006
Sahlins Elaine HVS Hotel Development Cost Survey 2007 HVS San Francisco October 28 2007
Schwanke Dean et al Mixed-Use Development Handbook Second Edition Washington DC ULI-
the Urban Land Institute 2003
Taking Root A Robust Residential Market and Controlled Commercial Growth Redefine
Belchertown Business West Vol 24 No 14 November 12 2007
A-56
Websites consulted
httpwwwSpaFindercom
httpwwwcanyonranchcom
httpwwwcranwellcom
httpmapsgooglecom
httpwwwgostowecom
httpwwwmassgov
httpwwwcity-datacom
httpwwwmassdevelopmentcom