Block 9

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Proposed Phase VITown Center

Block 9

City CouncilNovember 24, 2015

Town Center 1998

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Town Center 2015

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Town Center Update

To date:• Office: 814,736 sf

• Restaurants: 117,807 sf (19 total)

• Retail: 190,459 sf

• Residential: 804 units

• Hotel Rooms: 412 rooms

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Town Center TIF Summary

Investment Phase I Phase II Phase III Total Phases I-III

Phase V Total

PUBLICINVESTMENT

Public Parking Garages*

$22.5 $18.1 $16.9 $57.5 $20.1 $77.6

Meeting Space,Connector, and Land*

$0.5 $9.9 $10.4 $10.4

Infrastructure –CIP/EDIP Funded

$6.3 $7.7 $1.7 $15.7 $1.0 $16.7

TOTAL PUBLIC (Garage and Infrastructure)

$29.3 $25.8 $28.5 $83.6 $21.1 $104.7

TOTAL PRIVATE $95 $97 $172 $365.0 $84.4 $449.4

Public Private Ratio 1:3.2 1:3.8 1:6.1 1:4.4 1:4.0 1:4.3

Completion Dates Fall 2003 Winter2005

Fall 2007 Fall 2014* TIF Funded

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Town Center Business Taxes*

* Business Taxes Generated Within the Core Area of the CBD South TIF District

Type of Tax

FY-2006 FY-2007 FY-2008 FY-2009 FY-2010 FY-2011 FY-2012 FY-2013 FY-2014 FY-2015 Total

BusinessLicense

$840,825 $922,049 $1,531,582 $1,233,412 $1,031,408 $1,017,683 $1,145,026 $1,101,228 $1,273,972 $1,302,397 $12,134,786

Business Property

$346,107 $396,849 $459,920 $488,441 $512,452 $543,806 $606,636 $592,533 $582,047 $696,721 $5,459,174

Trustee Taxes

$2,436,041 $2,722,755 $3,409,303 $3,787,405 $3,653,831 $3,942,810 $4,331,820 $4,431,275 $4,060,647 $4,698,700 $39,128,222

General Sales Taxes

$536,114 $567,921 $601,962 $676,243 $645,569 $654,584 $798,863 $756,119 $696,605 $789,641 $7,163,823

Total $4,159,087 $4,609,574 $6,002,767 $6,185,501 $5,843,260 $6,158,883 $6,882,345 $6,881,175 $6,613,271 $7,487,467 $63,886,005

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Town Center Master Plan

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Phase VI: Block 9

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Aerial Perspective

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Mixed-use Retail, Restaurant, Theater and Apartments • Level One: 33,000 sf retail

• Level Two: 17,000 sf Zeiders American

Dream Theater (300-seat experimental

theater) and 5,000 sf restaurant

• Level Three - Nine: +/- 120 studio/1-

bedroom luxury apartments

• Streetscapes around entire block

• Public plaza

• Pedestrian bridge

Proposed Project

33,000 sf retail

17,000 sf theater

5,000 sf restaurant

+/- 120 apartments 10

11COMMERCE STREET

Aerial Perspective

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Project Schematics

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Second Level Plan

PUBLIC PLAZA

Project Budget Estimates

Private Investment(Armada Hoffler)

$30,725,489

ZADT $7,651,312

VBDA $2,933,374

Total Building Cost $41,310,175

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33,000 sf retail

17,000 sf theater

5,000 sf restaurant

+/- 120 apartments

Mixed-use Retail, Restaurant, Theater and Apartments

VBDA Participation

Podium Cost(Foundations, etc.)

$1,440,959

Vertical Transportation(Monumental Public Stair, Stairs, Elevators)

$473,470

Public Plaza $813,260

Soft Costs(Design and Legal)

$205,685

Total VBDA Cost $2,933,374

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Infrastructure Cost

Streetscapes $500,000

Pedestrian Bridge(Connecting Cosmopolitan Garage to Block 9)

$500,000

Total InfrastructureCost $1,000,000

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Funding

Building Support and Plaza(TIF Funded)

$2,933,374

Streetscapes and PedestrianBridge(EDIP Funded)

$1,000,000

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LEVEL TWO

17,000 sf theater

300 seats

ZeidersAmerican Dream Theater Goal: To become an integral part of the community

– using the arts to encourage individuals to

embrace their dreams and to achieve their

full potential.

Highlights:• Private investment of $7,598,411

• ZADT* will be responsible of all operations,

management and programing

CONCEPT PROPOSED BY MICHAEL ZEIDERS, FOUNDING DIRECTOR

*ZADT – Zeiders American Dream Theater

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LEVEL TWO

17,000 sf theater

300 seats

ZeidersAmerican Dream Theater Will Include• Audio and video recording studio

• Lobby and reception area

• Flexible rehearsal performance space

• Offices and support spaces

Primary Activities:• Touring acts

• Music festivals and variety shows

• Original plays and operas

• Community performing arts groups

• Webcasts

• Audio and video recording20

Town Center Impacts• Construction of Phase VI at high quality

level

• Maintains momentum of Town Center

retail activities

• Brings unique uses to Town Center

• Increases values of existing Town Center

and Pembroke area development

• Benefits existing restaurants and retailers

Project Benefits

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Cultural Impacts• Helps establish Town Center as cultural

center.

• Complements Sandler Center

• Attracts upcoming performing arts talent to

the Virginia Beach region.

• Enhances quality of life for residents and

visitor

• Operations and maintenance costs of

theater provided by non-profit

• 24-theater-use dates to City at no cost

• 300-seat performing arts venue

• Supports Special Service District (SSD:

$34,000 per year)

• Generates net surplus revenues to City

Project Benefits

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Town Center Phase VI Fiscal Impact 20 Years:

Project Benefits: Fiscal Impact

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REVENUES:

Personal Property $291,960

BPOL $379,599

General Sales $3,148,990

Meal $3,352,969

Admissions $653,738

Utility $156,000

Indirect and Induced Spending $166,423

Residential Non-R.E. Revenues $5,140,916

TOTAL $13,290,595

COSTS:

Municipal and School $6,951,119

NET FISCAL IMPACT:(Excluding Real Estate Taxes)

$6,339,476

ADDITIONAL REVENUES

Real Estate Taxes (per year) $304,182

SSD Taxes (per year) $172,695

PRIVATE/PUBLIC RATIO 13:1

Questions?

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