Northampton State Hospital-Village Hill-1999 Community Builders Redevelopment Master PlanNorthampton State Hospital Redevelopment
F Final Master Plan & Land Disposition Proposal
TABLE OF CONTENTS
I LI
Executive ....... ............................................ ............................... 4
SECTION 1 Background and History .............. ............................... 11
!�
SECTION 2
The Market .................................. ...............................
14
SECTION 3
Research and Marketing .............. ...............................
18
j
SECTION 4
Historic Preservation ................... ...............................
25
SECTION 5
The Final Master Site Plan .......... ...............................
31
n
CJ
SECTION 6
Land Development by Phase ....... ...............................
35
I 'J
SECTION 7
Development Impacts ......................... .
40
SECTION 8
Required Public Investment .......: ...............................
43
SECTION 9
Implementation Plan
THE COLOR PLANS*
THE FINANCIAL PLAN*
THE APPENDICES*
i
. t
Separately Bound
1
Northampton State hospital Redevelopment
Final Master Plan & Land Disposition Proposal
Executive Summary
Introduction
This master plan is the culmination of many years of work by the citizens of the City of
Northampton and the Commonwealth of Massachusetts to craft a reuse program for the
Northampton State Hospital (NSH) that addresses a wide scope of community objectives and
turns what is now a dangerous liability into a vital and viable asset. In preparing this master plan
we have attempted to be as responsive as possible to the objectives established both within the
RFP and expressed through the community -input process. The mixed -use village, which we are
now calling the Village at Hospital Hill, is an attempt to actualize the multiple objectives for the
site in a manner which is viable and compatible. When fully built out, Hospital Hill will
potentially include over 400,000 square feet of mixed commercial space providing in excess of
800 jobs. It will also contain a 60 -80 unit assisted living facility; approximately 200 units of
mixed income rental and ownership housing; public walking trails and open space as well as
potentially community facilities such as a child care center, meeting space and a museum..
We are not at the end but truly at the beginning of the process to redevelop NSH. This plan can
not be implemented without continued ongoing local and state support. A significant amount of
public investment will be required to make this development plan economically viable including
funding for environmental remediation, demolition, roads and infrastructure development.
While this investment will be considerable, $15 -20 million, the fiscal payback to the city and
state upon full build out will be significant. We estimate that, in 1999 dollars, annual state
payroll taxes generated from the site will exceed $1.35 million and annual local property tax
revenue will exceed $800,000 (see tables 7A and 7B). Given the fact that the cost to prepare the
site for development (demolition and environmental remediation) is an obligation that the
Commonwealth, as owner of the property, is faced with regardless of future development
options, the return on the required investment here will be relatively quick and certainly
comparable to other investments made by the Commonwealth to promote economic
development.
This master plan establishes a conceptual framework for developing the site. To be successful
however, the development must be able to be as responsive as possible to opportunities that
emerge from the marketplace. Thus, without subverting the overall goals and objectives of the
master plan, it is critical that the plan remain as flexible as possible. This is especially true in
regard to the specific siting or sizing of new buildings as well as potentially emerging conditions
which would allow reuse of buildings which at present appear to be unsaveable.
0
I} � I
l
Development Team
Developer:
Fl
Prime Consultants:
Urban Planners /Architects
Engineering /Environmental Consultant
'u
Other Consultants:
Economic Development Research
(�
Historical Restoration Design
Commercial Market Assessment
Construction Cost Estimation
n
I
Telecommunications Infrastructure
The Community Builders, Inc.
Calthorpe Associates
Vanasse Hangen Brustlin, Inc.
Mt. Auburn Associates
Dietz & Company Architects
Crowley & Associates
D.A. Sullivan & Sons Inc.
Corporation for Public Technology
I L Team Credentials
The TCB development team is ideally suited to help the City of Northampton and the
Ll Commonwealth implement a redevelopment vision for the NSH. TCB is a well established non-
profit real estate development company which has built its reputation through its ability to
j 1 successfully undertake extremely complex development projects which have far reaching
U impacts upon the communities in which they are located. As a non - profit corporation, TCB
shares the development goals which have been established by local officials. As a seasoned real
Ll estate developer, TCB also brings a balanced and realistic focus on the bottom line, which will
help ensure that the project gets on track and stays there throughout the development process.
Calthorpe Associates based in Berkeley CA, is the master planning firm for the project.
Calthorpe is recognized as one of the top "new urbanist" architectural design and land use
planning firms in the country. Its philosophical commitment to a participatory approach. to
designing and reestablishing sustainable, mixed use urban communities is an ideal match to the
task at hand in Northampton
Vanasse Hangen Brustlin, Inc. (VHB), a Massachusetts -based civil engineering firm, with a staff
of over 530 professional, technical, and support personnel, and a regional office in Springfield, is
the. engineering firm for the development. VHB brings experienced engineers and land planners
and in -depth knowledge of the project and its issues, as well as familiarity with the Northampton
permitting and approval process. VHB's Springfield office staff also has extensive knowledge of
local roadways and traffic conditions.
VHB has a history of delivering innovative solutions to the complex problems often encountered
in the land planning environmental and engineering fields. The VHB Team provides TCB with a
committed resource of highly - qualified professional land, civil and highway design engineers,
construction administrators, and environmental scientists who have the necessary technical
I
�� 5
LJ
expertise and project knowledge to meet any challenge.
TCB has other consultant resources, some of which have already contributed to the testing and
formulation of the Final Site Plan. Included in this regard is Peter Small, former President of
Spaulding and Slye, one of New England's largest and most reputable commercial real estate
F1 firms. Mr. Small has been providing TCB with advice on a pro -bono basis regarding the
commercial development aspects of this master plan. As development moves forward, these
firms and other specialist consultants will be added to the TCB team to ensure that whatever
Ll expertise is needed to implement the Plan is available. This is expected to include the addition
of a partner or partners to undertake the commercial real estate development aspects of this plan.
Valley Community Development Corporation was part of the original team that responded to the
DCPO RFP. However, the CDC has been undergoing reorganization over the past year that has
restricted its ability to fully engage in the development process. It is expected that the CDC will
become part of the development team in some fashion in the future.
Site History
The Northampton State Hospital (NSH) was a major treatment center for the mentally ill and a
major employer to the region for over a century. From its origins in the 1850's, the hospital's
campus, both in terms of buildings and patient capacity, grew significantly. By the 1970, the
campus consisted of 538 acres of land, approximately 970,000 square feet of space and employed
over 2,000 people. Most of the buildings constructed since 1857 remain standing today. During
the 1960's and 70's, a nationwide trend towards de- institutionalization of mental health
u treatment, accelerated by a series of court decrees advocating community based treatment
. _ programs, rendered large institutions across the country such as Northampton State Hospital
obsolete. Throughout the 1980's, the client population declined dramatically and by August
1993, the last patients departed the NSH campus leaving the site and buildings abandoned.
Redevelopment History
There have been discussions concerning the redevelopment of the site for many years. In the
summer of 1997, the Commonwealth of Massachusetts, acting through the Division of Capital
Planning and Operations (DCPO), initiated an RFP process to designate a developer to redevelop
the site. The RFP's disposition scope comprised of approximately 124 acres of land and roughly
880,000 square feet of abandoned space in over 50 buildings. With the benefit of considerable
local input, the RFP outlined redevelopment objectives that are expected to impact Hampshire
County for many years. This project represents one of the most significant opportunities for
economic development available in the Pioneer Valley. An appropriate redevelopment plan,
both in its scale and impact, is critically important to the city and the community. TCB believes
this Final Master Plan establishes the framework for such a redevelopment plan.
�I 6
i
TCB's Provisional Designation
On May 15, 1998 TCB submitted a Draft Master Plan and Financial Proposal to DCPO. On
December 7, 1998 the Division of Capital Asset Management (DCAM), formally DCPO,
executed a Provisional Designation of the Community Builders Inc. (TCB) to be developer of
the NSH. That document pledged each parry to undertake, separately and collectively, some nine
(9) tasks during the next 180 days, preparatory to execution of a Land Disposition Agreement
(LDA). During the next several months TCB moved aggressively to complete its requirements
under this agreement, the results of which are reflected in the Final Master Plan.
Similar progress on several other required elements of the Provisional Designation, such as
scheduling and funding of on -site building demolition and environmental remediation, and
finalization of the LDA, have not yet been accomplished however. At the request of TCB,
DCAM's Acting Commissioner, Stephen J. Hines issued a 60 -day extension of the Provisional
Designation on June 4, 1999.
n The Master Plan Refined
L l TCB has invested substantial financial resources in refuting the Master Plan and Business
1 Proposal which was submitted in the spring of 1998. Major development studies were
undertaken in site planning, architectural design control, traffic and civil engineering, historic
rehabilitation architectural design, coordination with the Massachusetts Historical Commission,
preparation of development cost estimates, and environmental planning. In addition to surveying
local residential and commercial real estate brokers, and talking directly to prospective tenants,
TCB also commissioned an independent analysis of the commercial market to test its product
mix, market absorption and revenue stream assumptions.
To refine the Site Plan, TCB conducted an active community outreach program. In addition to
meeting with neighborhood abutters, TCB met with Northampton community leaders from the
Chamber of Commerce, city government, the business community, human service providers, and
r housing advocates. The result was the incorporation of several changes to the Site Plan to reflect
1 suggestions and comments received. Although many of these changes entail substantial
additional cost to the overall project, TCB is convinced the end result is truly a better Master
Plan for the community, and a significantly more marketable, and valuable commercial
development.
The success of this effort can be judged by the fact that on June 21, 1999 the Northampton
Community Advisory Committee (CAC) unanimously endorsed the TCB Final Site Plan, and
strongly urged rapid acceptance and speedy execution of the LDA to facilitate early development
(see letters in appendices).
7
I �
1 Basic Assumptions
In preparing this master plan TCB has been guided by a number of fundamental assumptions
which have not changed significantly since TCB's original RFP response. These assumptions
include:
Environmental Issues and Demolition
• Remediation by the State of all hazardous materials found on the site, both within
buildings and within underground service tunnels. This includes abatement for all reuse
buildings.
• State will provide an indemnification relative to all environmental issues
• Demolition by the State of all existing buildings not included in the final master plan for
reuse
NSH Redevelopment Process
• Commonwealth of Massachusetts and the City of Northampton will work with the
IL developer to secure all necessary approvals and public subsidies and/or grants during the
redevelopment process.
• DCAM will lead the discussions and maintain the relationship with Massachusetts
Historic Commission relative to compliance with the Memorandum Of Agreement.
• The developer has the right to build out all sites included in the master plan or convey
parcels to other developers with appropriate restrictions concerning appropriate use and
planning /design covenants.
E
r
-
J
The New Development Program
Based upon community discussions and market research TCB made a number of changes to the
building program in the Final Master Plan. The Phasing, or geographic sectioning of the project,
was also adjusted to more accurately reflect early versus later development zones. The five (5)
I rJ separate Phases now contain a total program of 207 units of residential housing, 60 -80 units of
Assisted Living, and up to 476,000 square feet of commercial development. (See map in Section
6 for phase layouts.)
I
Table S -1
�J Commercial Development
J Flex Office/ Mixed Subtotal*
Project Lt. Industrial Use Retail Commercial
' J Phase: (Size - S.F.) (Size - S.F.) (Size - S.F.) (Size - S.F.)
r
Phase A 137,000 N/A N/A 137,000
Phase B 20,000 12,000 N/A 32,000
j J Phase C 188,000 11,000 22,000 221,000
Phase D* 30,000 56,000 N/A 86,000*
J Phase E NIA N/A N/A NIA
�l Project Total 375,000 79,000 22,000 390,000*
�J
* Portions of Phase D not included in the total since re -use program is preliminary and projected
development is well into the future.
Table S -2 �
Residential Development Other
Multifamily Single Family Owner Subtotal Assisted
Project Housing Occupied Housing Housing Living
Phase: (Units) (Units) (Units) (Units)
I� Phase A N/A 2 2
Phase B 71 20 91 60 -80
_ Phase C N/A N/A N/A
%J Phase D* 36 58 94
I
Phase E N/A 20. 20
Project Total 107 100 207 60 -80
i
D
Required Public Subsidies
Seven months of thorough investigation have convinced TCB that the Northampton State
Hospital Redevelopment Project, now called the Village at Hospital Hill, is an exciting, dynamic,
and potentially high impact urban redevelopment undertaking. Unlike most traditional
commercial or residential development projects, Hospital Hill will require substantial public
investments to meet the numerous important public purpose objectives articulated by DCAM and
n the CAC. These objectives include:
J • early demolition and removal of the unsightly and potentially dangerous abandoned
building complex;
J • providing jobs and tax base to replace the original hospital operation;
• adding in kind to the rich Northampton land use fabric;
• providing needed mixed income housing on a site which minimizes impact
• safeguarding valuable community open space; and
• controlling unwanted traffic degradation and other environmental impacts.
LI The timely provision of this public investment is a necessary pre- condition of TCB's Business
Proposal.
J The Final Business Proposal
TCB proposes to pay the Commonwealth of Massachusetts the sum total of $ 2,500,000, subject
to the conditions and schedule explained in the separate, accompanying Financial Plan document.
Benefits to City and State
Redevelopment of Hospital Hill will create substantial additional benefits to both the
Commonwealth and the City of Northampton beyond TCB's direct land payment to DCAM. It is
important to keep these benefits, both financial and non - financial, in mind when considering the
substantial public investments that will be required to make Hospital Hill a reality. These
include:
• At least 390,000 SX of tax revenue and job producing new commercial development
• 207 units of housing of all income types for Northampton citizens
• 60 to 80 units of assisted living housing for elders
• Up to 889 jobs of various types, including entry level industrial jobs
• Almost $450,000 of new commercial tax revenues annually to the City of Northampton
• At least $1.4 million in state tax revenues from wages earned at Hospital Hill
• Over $800,000 in new residential tax revenues to the City
• New local streets and improved access to the regional highway network which will
benefit local residents and through travelers alike; and perhaps most importantly
• A new mixed use village of Northampton, with community facilities and public spaces.
-
I '
10
I�
1 SECTION 1 BACKGROUND AND HISTORY
1
Introduction
This document represents the final submission to the Division of Capital Asset Management
l l (DCAM) by the Community Builders Inc. (TCB) of a Master Plan for redevelopment of the
l J Northampton State Hospital grounds, hereafter called Hospital Hill (HH), under the terms of the
Provisional Designation dated December 7, 1998, as extended by DCAM on June 4, 1999. The
following sections will explain the origin, definition, rationale, and benefits of the Final Master
Plan developed by TCB over the past eight (8) months.
History and Opportunity
�J Redevelopment of the former Northampton State Hospital, which has been vacant since 1993,
represents an opportunity unparalleled in Western Massachusetts. The manner by which the site
a is redeveloped will impact the city of Northampton for decades to come. The state hospital must
not be viewed simply as a real estate opportunity. Rather, it is critical community and economic
_ development initiative which must be carefully undertaken under the rubric of goals established
by the public, and with the discipline provided by pragmatic and competent development
expertise.
TCB envisions Hospital Hill becoming a new village for Northampton where a range of uses can.
coexist in a compatible manner creating a living and working environment, which will be unique
for Western Massachusetts. The development must build on the assets that have made
Northampton the envy of municipalities up and down the valley — a vibrant downtown, a
relatively strong commercial and residential real estate market and a high quality of life which
has attracted a wide range of people to the city. The new community must be diverse and be able
to integrate people at a range of incomes and abilities in both the residential and commercial
settings. These are the principles that have guided the creation of the Final Master Plan.
The Development Planning Team
TCB's development team is ideally suited to help the City of Northampton and the
Commonwealth implement a redevelopment vision for the NSH. It includes two nationally
prominent design and engineering firms as well as the multidisciplinary resources of TCB's eight
office, 400 employee development company staff.
!, TCB is a non - profit real estate development company that has built its reputation through its C
ability to successfully undertake extremely complex development projects which have far
reaching positive impacts upon the communities in which they are located. TCB shares the goals
j
which have been established for the development of the NSH site by local officials. Asa
seasoned real estate developer, TCB also brings a balanced and realistic focus on the bottom line,
1 a perspective which will help ensure that the project gets on track and stays there throughout the
1 development process.
Calthorpe Associates based in Berkeley CA, is the master planning firm for the project.
Calthorpe is recognized as one of the top "new urbanist" architectural design and land use
planning firms in the country. Its philosophical commitment to a participatory approach to
design and reestablish sustainable, mixed use urban communities is an ideal match to the task at
hand in Northampton
Vanasse Hangen Brustlin, Inc. (VHB), a Massachusetts -based civil engineering firm, is the
project civil, traffic and environmental engineer. With a staff of over 530 professional, technical,
,l l and support personnel, and a regional office in Springfield, VHB brings to the project
J experienced engineers and land planners and in -depth knowledge of the project and its issues, as
well as with the Northampton permitting and approval process. VHB's Springfield office staff
j also has extensive knowledge of local roadways and traffic conditions.
VHB has a history of delivering innovative solutions to the complex problems often encountered
a in the land planing environmental and engineering fields. The VHB Team provides TCB with a
committed resource of highly - qualified professional land, civil and highway design engineers,
construction administrators and environmental scientists who have the necessary technical
a expertise and project knowledge to meet the challenges that will be presented.
TCB also has other consultant resources, some of which have already contributed to the testing
and formulation of the Final Master Plan. Included in this regard is Peter Small, former President
of Spaulding and Slye. S & S is one of New England's largest and most reputable commercial
n real estate firms. Mr. Small has been providing TCB with advice on a pro bono basis regarding
LJ the commercial development aspects of this master plan. As development moves forward,
specialist consultants will be added to the TCB team to ensure that whatever expertise is needed
,J to implement the Plan is available. TCB also expects to add a partner or partners to undertake the
commercial real estate development aspect of this plan.
Valley Community Development Corporation was part of the original team which responded to
-- the DCPO RFP. However, the CDC has been undergoing a reorganization over the past year
- which has restricted its ability to fully engage in the development process. It is expected that the
CDC will become part of the development team in some fashion in the future.
P ,
12
i.9
'PCB's Development Concept
1 The mission statement contained in TCB's original development submission for Hospital Hill
continues to guide the site planning process:
"To create a new village on the NSH campus where residential, commercial and civic uses can exist in a
compatible and complementary manner. The village will include residential and economic opportunities which
are available to people at abroad range of incomes and abilities. Community participation in the design and
development process is a critical element in creating the village."
Community Goals
(� TCB's goals in developing the Hospital Hill Final Master Plan continue to be fully aligned with
l - f the goals established by the Citizens Advisory Committee and articulated in the Request for
Proposals. These include:
l J • creation of 750 jobs (attainable in our view over the fifteen year absorption period);
• creation of up to 200 units of mixed income housing;
a • a goal of ensuring that 15% of the beneficiaries of the development (jobs and housing)
are clients of the Department of Mental Health;
• high quality construction jobs with priority to Northampton residents;
• preservation of the historic character of the site including, where possible, the reuse of
existing structures; and
a commitment to ongoing citizen input into the development process.
13
F� SECTION 2 THE MARKET
The Commercial Market Assessment
To test the market feasibility of the type and intensity of development proposed in TCB's initial
site plan, and to test the relative attractiveness of Hospital Hill as a commercial development
center compared to regional alternatives, TCB commissioned Crowley Associates, Real Estate
Appraisers and Consultants of Springfield, to conduct an independent market assessment of
Hospital Hill. On May 25, 1999 Crowley delivered its report — Market Study: Proposed
Northampton Village Northampton Massachusetts.
Crowley's Report, contained in the Appendices, addresses anticipated office and light industrial
(� uses for the site and the prospect of adding inventory of developable light industrial and office
J use property to the market. In an effort to determine the market demand for new inventory of
office and light industrial use space, Crowley looked to historical market absorption trends and
considered the current inventory of "market ready" and "non- market ready" light industrial and
' office use land that would likely compete with Hospital Hill. Crowley also assessed the extent of
new buildout evidence in the region and formed projections for future land absorption based on
historical market trends. Employment trends and growth projections were also incorporated into
their analysis to determine if new buildout in the market would be supported by projected area
n employment growth.
I � Crowley's research, as presented in their report, sheds light on the character and feasibility of
TCB's projected commercial development at Hospital Hill. While identifying several areas
L� where a cautious approach would be most prudent, Crowley found that prevailing market
demand could potentially support creation of a light industrial and office mixed -use development
F1 for Hospital Hill.
Specific findings included:
(� General Area Conditions
• There is a total of approximately 500,000 S.F. of "modern" commercial space in
Northampton today: 140,000 SF of which is office, the remainder being industrial. (TCB
note: Although this inventory does not count second story Class B & C space, Hospital Hill,
iffully developed, would almost double the "modern" commercial space inventory, hence the
need to anticipate a long buildout period).
{; • Northampton's industrial park has zero vacancy, and land sales are reportedly up to $175,000
L�G an acre (TCB note; TCB has learned that the 56, 000 S.F. Cole - Morgan building was recently
sold to new owners, and approximately 213 of that space will be released to market as office.
r The same owners are also offering four (4) new commercial buildable lots at approximately
$175, 000 per acre. These prices are well above Hospital Hill's pro forma land sales
r _ revenues of $5.00 per buildable square foot. However, as Crowley's report indicates, land
14
n
pricing in the region is more typically in the $50 -60, 000 range).
' • The City of Northampton has good marketability to the greater area and beyond. Hospital
Hill's competitive advantage is its Northampton location and ability to benefit from the
entrepreneurial demands of that market; its competitive disadvantage is that it lacks highway
access and a modern, garden park setting typical of a market industrial park.
• Market vacancy in the modern industrial parks is currently 2.1 %; modern Class A office
space is 5.7% vacant. The combined vacancy rate of 5.2% is indicative of a stable market.
E • The surrounding area contains an inventory of 223,306 S.F of unrented rehab space, a 37 %
L vacancy factor; much of the area's re -use space is utilized for "storage" (TCB note: this
finding supports TCB's view that demand for rehab space is weak. As the report stated,
since "storage is not a preferred use for Hospital Hill, significant levels of historical
rehabilitation is unlikely to be economically feasible').
Hospital Hill Development Program
• Office space should comprise approximately 10 -20% of total commercial and light industrial
buildout (TCB note: the "office " users targeted by TCB — new media etc. —fall easily within
f� the broad characterization of "light industry ". In any case, TCB's land development pro
�f forma has not differentiated sales by use).
• The proposed amount of buildout and general design is reasonable for the site.
• The Hospital Hill target market will include local and regional based companies engaged in
light industrial, service, office, research and development, and other areas (TCB note: these
are precisely the commercial uses envisioned by TCB).
• The Hampshire County services sector makes up 47.2% of the job market, and has had a 30%
growth rate over the past nine years. A large portion of the office, light industry, and mixed -
use space at Hospital Hill will be occupied by service businesses engaged in high growth
industries like telecommunications, internet, software and others.
Absorption
• Hospital Hill as proposed will capture between 10 -15% of the market in terms of buildout;
assuming an overall blended (office /light industrial and mixed use) annual absorption rate of
50,000 S.F. per annum (TCB note: This absorption rate assumption compares favorably with
TCB's conservative programmed absorption rate of 30, 000 S.F. per year).
• It is reasonable to project new office buildout at 5,000 to 10,000 S.F. per year.
15
r�
.7
P i;
• Complete absorption will require at least a 9 —10 year time frame. (TCB note: as mentioned
earlier, TCB's program assumes a 15-year buildout).
• Absorption on an acreage basis would be 10 acres per year.
• Projected new job creation (using the broad range of light industry factors of 1 job for every
500 to 2000 S.F., and considering a small amount of office use) will be 500 -700 jobs (TCB
note: we believe this assessment is conservative; compared to typical standards, the
industries mentioned above will create higher building densities and create more jobs).
Land Pricing
• Per acre land pricing in area industrial parks ranges from $30,000 to $175,000 per acre.
n Per acre pricing at Hospital Hill's mixed use development is projected to be in the range of
IJ $60,000 to $70,000 per acre (TCB note pro forma calculations have assumed roughly
$50, 000 to $60, 000 per acre).
Rental Rates
(� • Rental rates at area industrial parks range from $3.00 to $6.50 per square foot, triple net.
lJ • Good condition light industrial space at Hospital Hill would be capable of commanding
rental rates in the $5.00 -$6.00 range, with higher quality and customized buildings achieving
higher rents.
• Class A office space rental at regional industrial parks range from $12.00 to $20.00 per S.F.
Good condition office space at Hospital Hill would be capable of commanding rental rates in
_.i, • the $12.00 - $14.00 per square foot range, triple net, again with higher quality buildings
commanding greater rents.
Office and R &D rehab and reuses per
ace at Hospital Hill would rent for $6.00 to $12.00
O� p p P
square foot, net of electric expense.
Summary
IJ Crowley's report concludes with the statement:
"The data supports that the development of the site is feasible based on an analysis of
L_ l existing market conditions, and our projections for future growth in the light industrial
and office sectors."
16
_
l
I
j
While TCB found the Crowley analysis in many regards encouraging and confirming, our i
anecdotal experience in the market to date has led us to remain somewhat cautious in our
�J approach, particularly relative to our ability to produce a product at the site that can compete on
the basis of price.
I
l_J
lJ
-
LJ
LJ
LJ
�
J"
L I;
17
_:_
�- SECTION 3 RESEARCH AND MARKETING
Introduction
In devising a development program for Hospital Hill, TCB has been guided by several ambitious
and sometimes conflicting objectives:
• community goals and objectives for development of the site (see earlier discussion)
• the community - building mission of TCB as an organization .
• logical site organization: opportunities and constraints for development according to
sound land use and urban design principles, as modified by local land use controls
yielding maximum development density patterns; and
• market realities — how much commercial development can be sustained at Hospital Hill,
given reasonable assumptions about the future.
• overall economic feasibility
Our review of the residential market has confirmed our preliminary assumptions that there is
significant demand and limited supply in the housing stock. Northampton is a community that
L9 people want to live in as evidenced by the recent trend of bidding up home prices. Similarly, the
L low vacancy rates and high rents in the rental market are indicative of the need for more
production in particular at affordable rents. There is little doubt that if the products are
appropriately priced TCB will be able to market and build out the projected residential program.
For Hospital Hill the more formidable challenge will be in the area of economic development —
marketing the commercial and developing the components of the project.
J Economic Development Strategy — General Criteria
1 TCB has looked at a wide range of possible land uses for Hospital Hill and has consulted with a
}L
broad range of public sector officials, economic development officials and private entrepreneurs
r in order to derive a pragmatic and realistic economic development strategy. The guiding
J) principles of this strategy include:
-� Uses with low environmental impact: uses must be compatible with a mixed -use
Ll (residential/commercial) community:
• Uses with low single occupancy auto traffic production;
Uses which are non - competitive with existing Northampton CBD retail;
L Uses which would yield a living wage for workers;
• Uses which take 'advantage of the potential synergy with the five college community
Ll which surrounds Northampton;
• Uses which are already in Northampton, but which cannot find adequate expansion
— opportunities; and
New uses, which would add to Northampton's economic base.
I �,
Li
In
LJ
- Economic Development Strategy
TCB's economic development strategy will focus on the following:
n • Retention of existing Northampton, or other area- based, firms, to meet the industrial
J expansion needs reportedly not being met today;
LJ • Start up or expansion space for technology based businesses, including:
J Software developers
- Telecommunications
F - Internet providers
L - - Internet business consultants
- Information technology firms.
• Start up or expansion space for New Media businesses, including:
- Web designers
C l - Internet publishers
J Digital and electronic sound recording studios
- Graphic artists
- Video game makers
- Film, music. and video editors
- Publishing
LJ • Provide space primarily for small to medium sized companies
LJ Reach out to local entrepreneurs and other independents, seeking locational "synergy" with
similar businesses
• Respond to general office and industrial users who meet the impact criteria
• Start up or spin off opportunities from the region's Five College Community
L Action Plan
In order to implement preferred economic development for Hospital Hill's commercial core,
TCB is evolving an Economic Development Action Plan. This plan will be undertaken in concert
with the City of Northampton, the Chamber of Commerce, The Pioneer Valley Plan for Progress
1 (PVPP) and The Economic Development Council of Western MA, as well as other local and
regional economic development agencies. The aim is to provide a development site, which
complements the area's established traditional office and industrial parks. Hospital Hill will
Ll capitalize on the unique character of Northampton, and every effort will be made to overcome
market misperceptions of the site's remote location and regulatory hurdles.
Elements of TCB's Economic Development Action Plan identified to date include:
1) Seek Economic Development Partners by:
- Coordinating with area economic development agencies: PVPP and Economic
Development Council of Western Massachusetts and others;
�I.
19
I
i_ - Coordinating with the City of Northampton's economic development efforts; and
- Building in active involvement by the Northampton Chamber of Commerce and other -
local business groups;
- Identify private sector development partners
- Reach out to area colleges
2) Design for state -of -the -art telecommunications infrastructure, along with traditional
infrastructure preparation so as to become the area's premier "wired" business park;
3) Pursue development of a pilot site to co- locate fast growth New Media firms;
4) Provide links to capital resources like Mass Ventures and the Massachusetts Development;
5) Develop informational and promotional materials stressing area and site benefits, and
preferred development;
6) Explore tax incentives for business retention, expansion, and new business formation with
the City of Northampton; and
n 7) Conduct an active and on -going marketing outreach campaign targeting creation of 30,000
J square feet of new commercial development per year at Hospital Hill.
r � TCB's Marketing Program
TCB is committed to implementing a continuous, and well- focused marketing program for
Hospital Hill's commercial development, as well as its residential development. The key
elements of the program are expected to include:
• Develop professional marketing materials for Hospital Hill, explaining development
opportunities in general, the vision of a mixed use community, specific site attributes, and
Northampton's unique quality of life
• Work with DCAM, DMH and others to improve the site image, especially at the entrances by
J, removing debris, improving landscape maintenance, painting the entrance columns and bus
waiting area, moving the security operation to a less visibly prominent location and other
initiatives to improve the visual image
J L • Establish an on -site development office, either in the Haskell building or elsewhere on site in
order to improve communications and visibility
• Distribute basic Hospital Hill information packages to all area business organizations and
l regional development agencies to publicize the commencement of development
• Sponsor a media event, involving TCB, DCAM, the City, and DMH focused around formal
1 transfer of site ownership, new economic development opportunities for the City, and
;J commencement of active real estate development
• Erect attractively designed signs at the edges of the development showing illustrations of
quality development and giving contact information
• Execute brokerage agreements with area commercial real estate firms to create incentives for
business referrals; explore the advantages of an exclusive agency relationship
• Conduct a media campaign to educate the local and regional press about Hospital Hill,
development activities as they occur, and development opportunities
r ... l
Aff
J
• Create a neighborhood information forum, to provide timely information to neighbors on
planned development activities, respond to concerns, and prevent misinformation
• Conduct a targeted end user mailing campaign to inform likely candidates of business
opportunities at Hospital Hill
• Work with area colleges and universities to identify opportunities for collaboration and
coordination
• Conduct a focused, cost effective advertising campaign in appropriate local and regional
media, such as The Western Massachusetts Commercial Real Estate Book
• Seek cost effective ways to prospect other regional markets such as Boston, New York and
Hartford, for New Media and other firms that might be attracted to Northampton and
Hospital Hill.
The New Media Study
As part of the master planning effort, TCB commissioned a survey of so- called New Media firms
and economic development activity in the greater Northampton area by Mt. Auburn Associates
(MAA), a nationally recognized economic development consulting firm. Over the course of
'j several months MAA interviewed over 30 such firms, and arranged a briefing at which TCB
introduced the Hospital Hill project, and asked for reactions and expressions of interest.
"New Media" is a loose term describing a range of economic activities typically involving by
have no established common federal standard industrial classification. They represent the
convergence of video, audio, graphics, and text and for the most part work in a digital mode.
Their key components are as follows: computers, electronics, printing, software,
telecommunications, and digital transmission modes especially the internet, and the convergence
of entertainment, education, home and business. The types of firms represented by new media
include:
j_ According to Mt. Auburn, and other recognized sources, there has been a major expansion of
u such firms in recent years, and, significantly, many of these firms have originated or
subsequently located in the greater Northampton area. Mt. Auburn Associates estimates there are
21
r�
Computer System Design
Web Page Design
Internet Publishing
Digital Recording
�.
Software Development
Internet Providers
1
Graphic Artists
Video Games
Switching Devices
Interactive E &T programs
'
Internet Business Consulting
j_ According to Mt. Auburn, and other recognized sources, there has been a major expansion of
u such firms in recent years, and, significantly, many of these firms have originated or
subsequently located in the greater Northampton area. Mt. Auburn Associates estimates there are
21
r�
n
as many as 200 such firms in the area today, many of which are growing rapidly, and may need
expansion space in developments like Hospital Hill in the very near future (see Mt. Auburn
l 1 material in the Appendices). The typical pattern of such firms is that although they start small (1-
1 2 employees), within a short time span many must hire 10 or more employees and expand into
15,000 square feet or more of space. Perhaps the best example of such a firm is Javanet. Javanet
was founded in Northampton in 1995, and by 1998 had become the leading regional Internet
Service Provided in New England. Firms like Javanet reportedly seek quality community work
environments such as those found in Northampton. Among the reasons Javanet moved out of
Northampton was inadequate space for expansion and an incomplete telecommunications
infrastructure. Given the lack of readily available commercial expansion space in downtown
Northampton, this may well represent a significant development opportunity for Hospital Hill.
_1
New Media at Hospital Hill
According to Mt. Auburn and others, New Media activity represents a significant new factor in
n the economic development scene that may lend itself especially well to Hospital Hill.
} Competitive advantages of Hospital Hill for New Media might include:
Area Intellectual Environment
r l = Existing companies in the area
u The computer science /engineering environment at nearby UMass
The multiple existing industry associations in the area
Area Technical Resources
- UMass
- STCC — Technology Incubator
- Other training resources
Available Artistic Resources
- UMass Art Department
- Hampshire College
- The Region's firmly established artist community
The Hospital Hill Site
- the Campus setting
- potentially interesting and attractive for young companies space, especially in rehab buildings
such as the Male Attendants Dorm
- the potential presence of Broad Band Width as provided site infrastructure
- synergy with are artists
- the existing community base of similar industries
22
-- Key New Media Themes
Interviews conducted by MAA revealed a few key themes. These included:
• The Northampton area is growing significantly as a new media location
L_1 There is no reason to expect that this trend will change in the near future
• Barriers to entry are few, and local college graduates wanting to stay are likely to
• Jobs are open to all, not just college graduates
l 1 Existing facilities, do not focus on or meet the needs of new media
• Existing facilities are inadequate to meet the need of this industry
• Almost half the firms interviewed are in need of expansion space or soon will be
• There is a high degree of interest in situations creating interaction amongst firms and
professionals in the new media business
The MAA survey documents a significant potential market opportunity for the Hospital Hill
development. While the growth of this sector is likely to be incremental, we envision that the
New Media sector can be a key component of the economic development strategy for Hospital
L J Hill. We have, therefore, identified this sector has a key target in our economic development
strategy.
One of MAA's recommendations which TCB has adopted, is the need to provide state of the art
telecommunications wiring as standard infrastructure in the Hospital Hill commercial
development. TCB is examining both hard wire T -1 or better telecommunications technology,
and service providers, and newer, wireless technologies which provide DS3 -level connection to
digital data and internet services. One of these technologies will be selected and the investment
made to ensure that New Media and other technology- dependent businesses are attracted to
Hospital Hill.
Marketing Results to Date
During the seven -month "preliminary designation" period, TCB has explored development
opportunities at Hospital Hill with over fifty businesses, representing a wide range of desired
businesses for Northampton. These included a food retailer, hotel and restaurant a
power distribution company, new media firms of many different types, a furniture manufacturer,
a museum display creator, a radio station, non - profit community groups of several types,
including a food cooperative, a community opera and service organizations, and several different
assisted living. operators. TCB has also fielded information requests from real estate brokers and
land developers from as far away as Washington D.C. and Indianapolis, Indiana. TCB has used
the time to educate area commercial brokerage companies about Hospital Hill opportunities, and
to seek advice and counsel. TCB conducted interviews with eight of the largest and most active
commercial brokerage firms in Springfield and Northampton. All were enthusiastic about the
potential of Hospital Hill, and several made creative suggestions which have been incorporated
into TCB's planning.
L .
23
As the multiple letters of interest in the Appendices indicates, there are a number of companies
waiting to finalize land sales with TCB as soon the LDA is in place. TCB believes the economic
development program set forth above is conservative and based on sound business principles.
While we believe that caution is appropriate, TCB is confident that over time, the plan can work,
assuming the necessary public investment is forthcoming.
I '
J
24
- SECTION 4 HISTORIC PRESERVATION
I
Historic Preservation Considerations
Many of the structures on the Hospital Hill site are listed on the National Register of Historic
Places (NHRP) maintained by the Department of the Interior. Of the 75 total "sites, objects or
structures" on the site recognized by the state's historic preservation agency, 62 are declared to
have "contributing" historic significance. This gives them certain protections from demolition,
and access to advantageous historic tax credits in the event of preservation and rehabilitation.
The listing of Hospital Hill on the NRHP represents both an opportunity and a constraint to
active development of the property by a private sector developer.
+ j On August 10, 1995 the Massachusetts Historical Commission (MHC) executed a
1 Memorandum of Agreement (MOA) with DCAM and the City of Northampton. This pledged the
state agency, and any successor owners of the hospital land area, to undertake a variety of
G preservation measures, which included:
• marketing the site to the widest possible number of developers interested in historic
preservation;
• an examination of the costs of renovation versus demolition
a a photographic recordation and historical documentation study of every historically
significant structure;
• involvement of the MHC in the determination of the economic feasibility of saving
historic structures or demolishing them;
respect for the historical building materials, site organization, and building massing and
scale by any subsequent new development, and, finally
• preservation of significant view corridors.
In developing this master plan we have attempted to abide by the spirit of the terms and
provisions of the MOA. TCB has hired its own historic preservation consultant: Public
Archaeology Laboratory (PAL), of Providence RI, to tour the site, examine the terms of the
PJ MOA and advise TCB on how best to comply with its provisions, and coordinate contacts with
MHC. Several coordination meetings have taken place, at which the impact of the MOA on
TCB's site planning have been discussed, and TCB briefed the MHC on the Final Site Plan on
July 1, 1999.
TCB understands the responsibility of the Designated Developer of Hospital Hill to incorporate
the MOA in the development process as an on -going matter, and is prepared to cooperate
fully with DCAM in assisting that agency to meet its obligations under the MOA. It must be
recognized however, that preservation while saving in demolition costs, is likely to cost more
1 than new construction and will require other forms of public investment to be feasible.
��:i
25
i
1 - Obstacles to Site Preservation
Despite the recognized preference of MHC and others to maximize the number of Hospital Hill's
historically - significant structures that will be preserved and renovated rather than demolished
and replaced, there are a number of serious obstacles to large scale building preservation:
the sheer size of the Hospital Hill complex - 880,000 SF of buildings;
the dilapidated and unsafe condition of much of the most attractive buildings, especially the main
hospital building on the north campus;
• the complete absence of some essential building utility systems - heat and air conditioning, and
the need to completely replace those that are present such as water, sewer, and electric. A costly
l complete gut renovation would almost certainly be required;
• the inflexibility of the building layouts and materials. These do not lend themselves to modern
residential or office design, or cost - efficient rehabilitation; and
, I.
• the location of buildings relative to other intended uses in the overall Master Plan. In many
(� instances, the current location of building presents several impediments to the development
L� of the overall site.
TCB's Feasibility Studies
-� � During the provisional designation period, TCB commissioned Dietz and Company Architects,
historic preservation specialists, to survey the site and identify buildings which were the most
likely candidates for retention. On April 4, 1999 Dietz & Co. delivered to TCB a
rec6mmendation on key buildings worthy of further investigation for historical retention (see
Appendices for details).
Next Dietz toured several key buildings, and prepared schematic layouts for three typical
buildings. Using the Dietz architectural studies, TCB then conferred with D.A. Sullivan & Sons
Inc. of Northampton experienced general contractors, who prepared preliminary construction
cost estimates for alternative office and residential use. From this information TCB was able to
project likely total development costs, necessary rent levels, and make a comparison to market
rents in Northampton today.
r ^�
We also identified several residential structures on the grounds which might lend themselves to
re -use, but whose current location conflicted with the emerging Master Plan. TCB contacted
several area house movers and obtained preliminary cost estimates for relocating the structures to
a more suitable residential location within the Hospital Hill development. Estimates ranged from
a low of $25,000 for the small wood frame structures to a high of $125,000 or more for moving
the brick houses.
J TCB also investigated selling the current structures to suitable historic renovation developers.
TCB toured the site with an assisted living developer with historic renovation experience, and
several commercial retail and office developers and non - profit community groups. Several of the
26
l
i_ structures were examined in detail for possible re- development. With the exception of a few
structures on the south campus: the "G Recreation" building, the power plant, and the former
laundry building, all of which are well located and in relatively good shape, outside developers
did not find the Hospital Hill offerings to be attractive candidates for re -use. Redeveloping the
structures, even with historic tax credits, was unanimously rejected by these companies as too
expensive and less attractive to them than new construction on the same site.
L
Buildings Selected for Possible Retention
After preliminary review and analysis, TCB has selected a number of structures at Hospital Hill
that it deems worthy of fiirther, detailed consideration for retention and redevelopment. These are
listed on Table 4A.
TABLE 4A BUILDINGS SELECTED FOR FURTHER RETENTION ANALYSIS
Develop.
Phase
DCAM
Bld. No
Building
Name
Size
S.F.
Possible
Re -Use
DCAM Est.
Demo Cost
DCAM Est.
Clean Up Cost
Savings to
State
from Rehab
vs. demo
A
38
Power Plant
13,120
Industrial
$160,851
$500,000
- $339,149
39
Laundry
12,560
Industrial
$153,985 1
$135,000
$18,985
B
14
Nurse's Dorm
29,836
Apartments
$365,789
$35,800
$329,989
15
Male Attendant's
Dorm
31,040
Office
$380,550
$21,000
$359,550
Possible Structure relocation:
33
3 Prince Street
3,312
Residential
$40,605
N/A
34
39 Prince Street
4,154
Residential 1
$50,928
$6,000
$44,928
C
102
G- recreation
17,264
Retail
$211,657
$38,750
$172,907
7
Memorial D
31,824
Office
$390,162
$76,410
$313,752
8
Memorial E
31,824
Office
$390,162
$29,300
$360,862
•
10
Memorial F (partial)
18,550
Office
$211,350
$13,500
$197,850
Possible Structure relocation:
31
24 Chapel
3,330
Residential
$40,825
$28,750
$12,075
32
16 Chapel
1,848
Residential
$22,656
$6,750
$15,906
106
10 Chapel
2,411
Residential
$29,559
$5,000
$24,559
D
112
Coach Barn
15,518
Mixed Use
$190,251
$1,500
$188,751
40
Store House
25,747
1 Mixed Use
$315,658
$34,825
$280,833
TOTAL
242,338
$2,934,988
$992,585
$1,981,798
�i
I�
27
I
l_.
As can be observed from the table, if fully implemented this property retention program has the
potential to save the Commonwealth up to 1.9 million dollars in demolition costs. Our
1 preliminary analysis however is that the financial viability of preserving these structures is
marginal at best and may only be possible if a mechanism can be established with DCAM to
capture at least part of the demolition cost savings.
It must be stressed that difficult tests remain to be satisfied before preservation of these or any
j 1 other Hospital Hill buildings is assured.
The first test is the suitability of the building for conversion to modern, non - institutional uses.
Many of the Hospital Hill buildings, especially the ones in the main complex to the north, and
the Memorial complex to the south, are massive masonry structures that do not lend themselves
to easy reconfiguration. Load - bearing interior masonry walls prevent the large, clear span interior
spaces preferred by modern office layouts, and severely inhibit the efficient layout of the spaces
for apartment use. Eliminating these interior walls, and providing alternative structural support to
j meet building code has so far in our investigations prove to be prohibitively expensive.
LJ The next test is overcoming the severely deteriorated condition of the buildings. Roofs, windows,
L 1 and even some structural elements show signs of serious neglect and decay. Replacing these
1 elements, and meeting modern building code and historic rehab standards, will add significantly
to the cost of redevelopment.
I
But the largest and most important test is the one of economic feasibility.
TCB engaged an architect and an experienced rehabilitation contractor to examine the
redevelopment costs for three prototypical properties:
• Building 14 — The Nurse's Dorm
• Building 15 — The Male Attendant's Dorm; and
• Building 8 — Memorial Complex.
In each case the architect and contractor toured the building. Then the architect tested several
prototypical designs for apartments, office and mixed use, and the contractor prepared detailed
preliminary cost estimates for redevelopment according to market standards (see Appendices).
r� We then compared that cost to a rule of thumb construction cost estimate provided by the
contractor to determine how rehab would compare to new construction.
I.
28
y,
I
f
Table 4B — Comparison of Rehabilitation vs. New Construction
Male Attendant's Dormitory - +1- 20,000 S.F. - Office /R &D Finish
Rehab. New
J Costs: Construction Construction
Contractor's Cost Est.: $2,400,000 $2,000,000
Cost per S.F. $120 $100
I.J
Environ. Remediation $21,000 $0
-� Demolition $0 $380,550
Total Dev Costs: $2,421,120 $2,380,650
Total Cost Per S.F. $121 $119
I J As the above table indicates, without taking into consideration the additional costs associated
with demolition and site preparation, the cost of rehabilitation may be uncompetitive compared
i to new construction. Note also that these cost estimates are based on prevailing wage, union
labor rates and are significantly above comparable market costs (on a square foot basis) for both
rehabilitation and new construction. Construction costs will need to be brought to the $75 -80 /SF
level in order to be able to produce a cost competitive product.
One Possible Solution
The analysis clearly indicates that it would be financially preferable to demolish the Male
Attendant's Dorm, especially considering space inefficiencies, and the less marketable office
layouts required by the original building configuration. If cost to the state of demolition required
to clear the site for new development is added to new development costs however, in effect
subsidizing historic rehab, the final comparison between new construction versus rehabilitation is
far more favorable.
If one public goal of Hospital Hill development is to maximize historical building retention, then
every reasonable.means should be explored to bring down the costs of rehab versus new
construction. As Table 4A shows, TCB's retention program has the capability of generating.
j , considerable cost savings to the Commonwealth by avoiding costly demolition. If some or all of
these cost savings can be passed along to the developer in the form of reduced land acquisition
j costs, or some other means, and dedicated to historic rehabilitation, then the relative advantage of
new construction versus rehabilitation might be significantly reduced or eliminated. Without
(� such direct public subsidies, plus provision of historic tax credits, and a cooperative attitude
I 29
toward historic rehab design requirements by public agencies, TCB believes, based on its
investigations to date, it is highly unlikely that most of the larger structures at the Northampton
State Hospital will be saved from the wrecking ball.
44r _J
no
r -
I�
r--
- S]ECTION 5 THE FINAL MASTER SITE ]PLAN
Introduction
Since its preliminary designation TCB has been hard at work refining the Master Plan for
Hospital Hill. As a result of meetings with abutters, city officials, the CAC, local business
representatives, Smith College, regional planning and economic development groups, and
potential developers, a number of changes have been made to the draft site plan developed by the
TCB team dated May 4, 1999. These include:
Land Use
• Total residential housing units increased from 200 to 207
• The assisted living use location was shifted to a parcel fronting on Prince Street to increase
visibility
• The industrial building facing Laurel Street has been relocated, and a buffer of new small
scale residential housing has been created
• Hotel use was abandoned or at least deferred until later stages of the project
-� • New, but as yet unspecified commercial or community uses are proposed for the previous
J Main Admin building area
• Building orientations and parking lots have been shifted to better buffer abutters. Landscape
buffers have been introduced in sensitive areas
Historic Renovation
• Retention of any of the main hospital complex building in the north has been dropped, at
least for the short term.
• Redevelopment of several additional historic structures is proposed for further study:
North of Prince Street (North Site):
- the Nurses Dorm
- the Studio/Barn building
- the Storage warehouse
- moving two brick residential structures will be investigated
- male attendants dormitory
South of Prince Street (South Site):
- three Memorial complex buildings along the ridgeline
- moving three wood residential structures will be investigated
- G -Rec. building
i 31
Roadways and Access
I� � 0 Anew major entrance into the site connecting directly from Route 10 has been added
• The access road on the western edge of the northern part of the site, originally traversing the
n community gardens, has been shifted completely out of the gardens to the existing roadway
l J at the western edge of the Haskell Building property
• The western access connecting the south site to Laurel Street has been abandoned
• A second new access to the South Site from Prince Street has been added
Open Space
• Parking areas and path connections from site open space areas to the regional path system
'n were added
IJ • Generous landscape buffers have been retained or enlarged
• Major landscape features have been created to serve as design focal points, site entrance
j] areas, or groundwater retention areas
• A program to maximize the retention of large mature trees has been incorporated into the
n design.
a
Phasing
a The
numerology and boundaries
of the original phases has been changed for clarity and to better
'IJ
respond to perceived market opportunities:
Old Identifier
Project Area
New I dentifier
Phase IA
Earle Street area
Phase A
Phase IB
North site, along Prince
Phase B (enlarged to include
more housing sites)
Phase II
South Site, facing Prince
Phase C (somewhat enlarged)
I
�.
Phase III - b
Housing sites — west area
Merged into other phases
of north site
�)
Phase III — a
North site — main campus
Phase D (somewhat enlarged)
n
t .J
Phase IC
separate housing site to west
Phase E
it
i .i
l�
32
rz
a
1
ii
Final Site Plan Concepts
The master planning process is by its very nature an iterative one. To be effective, it must both
be guided by a set of clear principles and objectives and be flexible enough to evolve in response
to changes in conditions and new information. With the benefit of due diligence and public input
TCB has developed what we believe is an exceptional conceptual Final Master Plan which can
serve as the basis upon which to develop the site. While basic land use concepts for the site are
clear, it is critical that there continue to be flexibility in the plan so that TCB can be as
responsive as possible to opportunities that emerge from the marketplace.
Program
The Final Master Plan at full build out has the capacity to include approximately 476,000 square
feet of mixed use commercial space . It is estimated that this program could generate up to 889
jobs at a floor area-to-jobs ratio of approximately 500 square feet for each job. This is a
relatively conservative ratio by industry standards. Included is a mix of retail, office, light
industrial and research & development/multi media space as well as space for live -work studios,
a child care center, a possible community center/ museum area and the development of a 60 -80
unit Assisted Living Facility for seniors. The plan also includes 207 residential units, 100 of
which would be single family homes and 107 of which would be mixed income rental housing.
(l TCB's goals for the housing will be roughly 50% market rate and 50 % affordable to create a
u diverse, mixed income community.
Village Center
� The master plan envisions a Village Center which would be located at the intersection of Route
l�J 66 and the present entrance to the campus. The site's southern part, currently the Memorial
complex, represents predominately commercial uses including: office, R &D, light industrial and
retail. We believe these uses are most appropriate for this site based on their need for easy
J accessibility and proximity to Route 66 and Route 10. We expect build out at a pace driven by
local real estate market demand. We envision that these buildings would range in size from
5,000 - 30,000 square feet, and would be targeted to serve both single and multi -tenant needs.
The southern part of the main campus (closest to Route 66) will have a more mixed use
character. This part of the development will include new construction plus the rehabilitation of
several existing buildings to serve as office space and 23 apartments. There will also be 48 new
multifamily units (both market and affordable), 20 single family home lots, and the site for the
assisted living facility. Depending on market conditions, and final assisted living design, it may
be possible to create additional commercial space along the Main Street.
33
I
u
Northern Residential Hamlet
1 The northern portion of the main campus (where the main hospital building sits now) will be
�- primarily residential. The Final Master Plan includes 58 single family home sites and 36
multifamily units. TCB intends to further investigate preservation of a portion of the former
j main administration building totaling approximately 67,000 square feet. While no feasible use
L J has been identified to date, potential uses to be considered include: use as a combination of live-
work space, a community center, a possible museum or archives. However as explained above,
preliminary investigation is not positive, and the program currently projects new buildings on
this site for these or other uses.
Parcel E — Ice Pond
The final portion of the disposition includes "Parcel E." — the so- called Ice Pond area. This site
will be developed as a 20 building lot cluster development for single family homes. There will
be a mix of market rate and affordable homes. Similar to all new development at Hospital Hill,
construction will include design covenants to ensure coherent and complimentary development.
The Final Site Plans
Attached are the final site plans that have evolved based on input from TCB and its consultant
team and widely endorsed by the local community to guide future development at Hospital Hill.
J
1
r d
I
r- l
I, of M>LVwshuselts
iii DlvislUn o(Capl W l I'lamiing and Operations
Existing Conditions
The Village at Hospital Hill
The
f ( )
r
f x
i�
ck
,• �r ; , ,�� - -
lll(ll � / ::• rte.. '•' •'.
(, .;i; :' II • •` ('�j /�\ ��-�• ; - °, Z • GG . �, . }„yl! }f"J�'
,Q P
mu
y c .: ; n tir.<d u:.•+ it I ��. '
I I . _ z °�,,<.:. � ~����.; -• � °� 'c �I(.' �` r � � . -.
l" �., : � �� �-� 'Yam• ^�`' ��"" ,�, ,�._....: �'';, , � �t_�i , �' '�' _.
3 I i� . (`3 •jrf y j �t L.r�' 7' � S r \•�
• �(; l' { � f' .�jr,:•b' ` - � �(� \ \��tJ,- (.��` ` _ : -� ;� .). , - •`,i ..) rl.,�in•las •
./:- LS7 t. ��'�f-' jt� " f .�•J•� -� �� Af:J ,\ Il ' 1
. ;. J�,{ /;:{ r ,ei,; • ,�� 1 ,� \�• : .'tir � O.J,n:Cvlj�r� {O`v�� ' .�.Q \I I�' > \ -�',, y / �` I + '
r -- % (t , '::; - I..� /� ',:, . J, ,' ('+ '�j,. . • �:o 'i., Q(t ( Y �-✓•-
} -
-' �
0 ") ;
es).'
J. -... 1 . r+ .
f ia: } �•--�. I'�'t �' 1 1. •� 1�:� 0
� �••.�• ' ' `l !�� ,� '�'� '=:J� • --li'I .�T1'• 1..1 l :!: ;'� i'n Ct�wmu
!--� ^'. 1 . ' • 1, � >. �`: c[ti �('�+ 1.: L) C) C) T 1 y
'\ ` l: '�i�.. r.:.. �/ ti. C•"0. l,f. - C) 0 O•-(.J � F ,/
Phase
o
Y
)`
2 s \ °Y) Phase
F "CI Oe
�- • ...- r l= .j ^-c-%v �"'�ta"�_ :�. y ' ,: f�� (? t,, ,r 1 , r - � r -•
ri '.,. I ..� ' I•' i S.1� -7_. —`,�j _ -� ._- ^'i: "�r =_:- `� J 1 i
Phasing -'
J 1e Village at Hospital Hill .,- -� -•.. _ ., f 1� � G ;' _ _,. • .. -
June IA, ]971 / .1 '__�,_,_ •, n'� - ^' ' ^1 /
mom -11h of 6lassad—Ots Calthorp. Associals " i`
- -_ - ---- _ ! J
� �of Capital Planning and Op<n,inns 1'h<C ..... tr 0, fld— —'
ii
i
I i �
i
i
f ul
I -. I
I � J
�J
� I
�J
u i
i
w
� t
i
W
r
pl,
o
�
cn
n.
SECTION 6 LAND DEVELOPMENT BY PHASE
Introduction
Land development will be implemented in five phases as shown on the Phasing Plan. Under
TCB's proposed development program, land is anticipated to be fully sold in fifteen (15) years.
It is assumed that we will acquire the site in phases from the Commonwealth, prepare and
subdivide the parcels, and then market and sell sites to end users or developers. It is TCB's
intentions to develop several of the parcels on the site either on its own or in partnership with
i
others. These include the residential sites as well as potentially one of more multi - tenanted
commercial buildings.
Phase A — The Commercial Zone
Phase A contains nine individual parcels, and will be the first to be developed. Phase A is located
at the southern edge of the site, bounded by Grove, Earle, and Laurel streets. It consists of
approximately 10.4 acres of land with a projected development program of 137,000 square feet
of light industrial and office space. This area includes the existing Laundry and Power Plant
Buildings totaling 26,000 square feet, which are programmed for redevelopment. Additionally,
there will be seven (7) other development sites: five (5) industrial/office sites plus two (2) single
family residential sites. Full development of the last office site located along the ridgeline will be
dependent on completion of the new main access road connecting Hospital Hill to Route 10. Our
plan assumes that the land will be conveyed by the Division of Capital Asset Management
(DCAM) to The Community Builders, Inc. (TCB) in the year 2000. Because the new access
roadway is necessary for full development, we assume it may be 12 years before full absorption
is achieved.
* Note: S.F. = square feet; MF = multi - family residential; see Absorption Tables in Appendices
for full details.
F'' 35
L
Com. Flr Area (SF)
Projected
Identifier
Phase A Uses
Land
MF Units/Hsg Lots
Land Sales
Year of
(See map)
(No. Blds)
Area
*
Revenue
Absorption
A-3
Laundry &
3.1
31,000
$100,000
2000
A-4
Power Plant
A —1
Office
2.3
30,000
$330,000
2012
A-6
Office
1.8
36,000
A-2
Industrial
1
10,000
$180,000
2004
A-5
Industrial
1
12,000
A-7
Industrial
1.6
14,000
Subtotals
11.1
137,000 SF
$710,000
2012
* Note: S.F. = square feet; MF = multi - family residential; see Absorption Tables in Appendices
for full details.
F'' 35
L
r!
I_-
Phase B — The Mixed Use District
Phase B is the 16 acre portion of Hospital Hill that is located in the southern-most area of the
main hospital campus closest to Prince Street. TCB proposes to move aggressively to quickly
develop Phase B as a mixed -use area, since it has good visibility and is not dependent on a large
amount of new infrastructure investment. Phase B will include multi family housing, single
family housing, an assisted living facility for seniors, some retail and at least one moderate sized
office building targeted at New Media companies. Two of the existing hospital dormitory
buildings are programmed for historic renovation into office space and apartments. We assume
Phase B land will be conveyed by DCAM in the year 2000. TCB also assumes full development
of Phase B will be achieved over a three year period.
Projected
Identifier Phase B Land Area Com. Flr Area(SF) Land Sales Year of
(See Map) Uses (No. Blds) (Acres) MF Units/Hsg Lots Revenue Absorption
Male Dorm 20 000 $0* 2001
B-4 (Office - Rehab) 1.6 ,
B-2 Nurse Dorm 1.6 23 units $0* 2001
(Apartments - Rehab)
LJ
B —1 Assist. Living 3.4 60 -80 units $720,000 2000
Mixed Use — Apts. 20 units $60,000 2001
B-3 Mixed Use -Retail 0 ' 7 12,000 SF $69,000
Townhouses 1.0 28 units $84,000 2003
Residential 2.9 20 lots $1,000,000 2003
I_
32,000 SF
Subtotals 11.2X* 20lotss $1,933,000 2003
60 -80 units A.L.
Note: As financially marginal historic rehab projects, the two dorm buildings are not expected
l to be able to contribute land sales revenues
** Does not include roads and open space areas
J,
LJ
36
ri
I
Phase C — The Business Park
Phase C consists of the 12.0 area at the crest of the hill on the southern portion of the site, the
remaining parcels in the Memorial Complex. Much of the existing building complex will be
demolished, but TCB is assuming that the attractive G Recreation building will be converted to
retail use, and perhaps up to three of the Memorial Complex buildings, those lining the ridge
with attractive facades and good views, may be converted to office use or light industrial. Final
LJ decisions on these buildings must await further detailed study. If the redevelopment of this site
L � proves infeasible, it is the intent to build new structures on the site using the same footprint. A
total of ten (10) development sites for 10,000 to 30,000 square foot office and mixed use
commercial and retail buildings are included in Phase C. It must be emphasized that it is critical
- that the development process be as responsive as possible to the marketplace and that the siting
of buildings remain flexible. There will be no residential development in Phase C. There will be
an attractively landscaped plaza planned for the center of the site, facing onto Prince Street. TCB
has assumed land conveyance to TCB in the year 2002, following demolition and environmental
remediation by DCAM. Since much of the site will be dependent on construction of the new
access road and improved connections to Route 10, TCB does not envision full development
until 2011.
37
L-
Land
Identifier
Phase C
Area
-Com. Flr Area(SF)
Projected Land
Year of
(�
(See Map)
Uses (No. Blds)
(Acres)
MF Units/Hsg Lots
Sales Revenue
Absorption
u
C-7
G Rec.(Retail)
1.0
11,000
$ 55,000
2002
C-4
Mem. Complex
9
18,000
(Rehab Office or New)
C-5
Mem. Complex
9
36,000
$224,000
(Rehab Office or New)
C-8
Mem. Complex
1.03
36,000
2008
(Rehab Office or New)
C-2
Mixed Use
0.8
22,000
$110,000
2006
C —1
Office
.7
16,000
C-3
Office
.5
12,000
C-6
Office
1.2
22,000
$465,000
C-9
Office
1.03
24,000
C-10
Office
1.03
24,000
2011
Subtotals
9.1
221,000 SF
$835,000
2011
37
L-
Phase D — The Main Residential District
Phase D is the last 58.0 acre portion of Hospital Hill surrounding the top of the hill where the
main hospital buildings are now located. Development of Phase D will be dependent on: a)
demolition of the majority of the heavily deteriorated buildings; b) hazardous materials
remediation; and c) provision of new road, sewer, water and power infrastructure. Our plan for
Phase D includes housing of several different types, community buildings, commercial activity,
and active links to the extensive community open space system and park system that abuts the
property. Twenty -one larger "estate" lots, facing onto the Mill River open space system will
Ll provide highly attractive housing sites, and 37 lots of various smaller sizes will provide housing
development opportunities for a mix of income levels.
L J Although additional analysis must be undertaken, the Master Plan contemplates the retention and
rehabilitation of some of the historic structures — those in the best condition, which will lend
themselves more easily tore-use. These are the Studio -barn building and the so- called Storage
building. Unfortunately, the main hospital building, the oldest part of the complex which
l contains attractive brick detailing, appears to be in such an advanced stage of decay, and is so
J large, that TCB does not presently believe it can be cost - effectively renovated. It should be noted
that development of Phase D is anticipated to take many years. Therefore program decisions,
(� taken today must be regarded as best estimates using available information, subject to change- in
J response to actual market conditions. As the project unfolds, unforeseeable changes in market
conditions may revise TCB's current perspective regarding demolition of the main hospital
1 building.
1 TCB assumes Phase D land will be conveyed to TCB by the year 2004, following full demolition
and environmental remediation. Full development of Phase D is expected to take approximately
l ` 10 -12 years, through 2015.
Land
Identifier Phase D Area Com. Flr Area(SF) Projected Land Year of
r� (See Map) Uses (No. Blds) (Acres) MF Units/Hsg Lots Sales Revenue Absorption
L� Studio Barn 0.6 15,000 NA * 2013
D-4 (Office - Rehab)
D —1 Storage (Live work - Rehab) 0 30,000 NA * 2015
L
D-2 Mixed Use (2)
1 41,000 NA * 2015
D -3
I
Residential 30.9 58 lots $3,535,000 2013
L
Threeplex rentals 2.1 27 units $81,000 2013
Townhouses 1.7 9 units $27,000 2013
' 38
• 9
` - -� - 1 %�i, I J ..f' - '�� % r•.L,lar. U�' 4..� ,/. % I, -
D
'013 I,Wst—
P .
,- r• :, •' j,' ..Q t - n_Y.T: - J,�:_ rc.r.F ,,.� ht WL /( ��: �` C(f•� 1, " ._5
r w
c :; �,
• ,({� %'/ . I l. .f �G"� *: - ; „` .. - - - �\ >�r• \\ / ;�) , \ t �`� r!. ,
y b
y
,s ^ --'. JU,+ -•fi�7 !vr ,: i i,� SS, ' `�-�lJ • \ O , lu� {Q'� 'i.�t!• n . ( ^":. ,` If!-✓ --
_.. . / /•'' ��'� t. %, .��'�� Ir � ( •,�SCi�G� ,:� t 1 �'�1(�'ir� // /// \J/ % // :':� _
.r•,,•• ;' � , ', rat{ t•• (� i'S' c „ !:
1 ' , ) l It {�/ • f { [ t'r,6 Y. i �J ::. i f +..,r: , y' j -.I
_
1..
I x,
w O
. y; ; � =, / J /� ••. ' ( (- :� 1 w ,� „mss -� � , � ` '';i � ] r ,., -� .: � ;�
ion•: �. .
J f / / "•.: �\' �i!�, r N) 0 �' :r tt::.j \ i; s,i.r � )j. : �. +} \• {
U l) - U 0 r) 1J.• l,(�: l J ay
t (`,) \ ^`\ ���. :i�.. r,.:. l<,��"" 1..f�'1t nF,-C) O O•-(.)•� L. � 1 i. /�!` . +�•� '!��
\,� ,\ ,,mhn t• � 'Df. `I'1.1 x,
)1
IX
� A81 P - .'';4t �,f,1•: . 1 /* �•v - .-� n 1 - Q` (( r � A . � , • r.:; �, � r ' �
CIO
E ll
Phasing
' Village at Hospital Hill
W,
/ '1
I' lone 14,]`)9
no, wcahh of AL ssarhuseus Callhor}x associaf�s •� ^" _
mn of Capital Planning m,A 01-6—, The c. ....uq• Uuilders " - -`- r•
f
u f
A�
J.
2
1 . 3
1 K)
O'k
0
9LL D3
0
D
r I;[
r q
Y
1-
A
(I 6K)
ep
K�) (1 0 K)
I V"K)
Q
C5
C9
—A2
(24K} . ,• , : ,, :, , ' 1 x u v ; x r',/ , ' er T (10K)
36—
C-1
V
1 Cl
(24K) I V - A4 A3
VX
TA
A6 (14K) (21 K)
�, -�
�'
C (36K) I v
/*
A7 A
(14K) (12
... . ... . .. .... .
3.
'.j
Commercial
Parcelization
The Village at Hospital Hill
July 26,1999
CM lw,pv
Th� C": ity l4did—
co
... ...... .
... ...... .........
......... ...
ANNUAL ABSORPTION
SCHEDULE - HH PARCELS
Commercial Absorption Targeted @ 30,000 sf/yr.
SF housing absorption = 1 /mo commencing 3Qrt Yr 2000
Targeted
Cumulative
Projected
Commercial
Cumulative
Parcel No Use Lot size
Bld Size Development **
Development
(ac)
(sf) (s�
(sfl
Yr. 2000
Commercial:
30000
35000
A3* Ind 1
21000
A4* Ind 2.1
14000
BI AL 3.4
60 units
60 units AL
Total Corn Development this year:
35000
Housing:
6 units
SF
4 units
I
AM & Ah2 SF
2 units
_
Total Hsg Development this year:
6 units
ILL-
Yr. 2001
Commercial:
60000
67000
B4* Off 1.6
20000
B3 - Corn MX/Retail 0.7
12000
=
Total Com Development this year:
32000
Housing:
89 units
E SF
12
B - General Twnhse
28 units
133* - Res. MX/Apts
23 units
B2 Apts 1.6
20 units
�.
Total Hsg Development this year:
83 units
Yr. 2002
Commercial:
90000
100000
A5 Ind 1.3
12000
A2 Ind 1
10000
'
it
C7* Retail 1
11000
Total Corn Development this year:
33000
^ f
Housing:
101 units
B SF
4 units
B - General SF
8 units
i�
Total Hsg Development this year:
12 units
J
L
i
i
i
U
I
U
IA
r
Yr. 2004
Targeted
Commercial:
Cumulative
Projected
C6 Off 1.2
22000
Commercial
Cumulative
Parcel No Use Lot size
Bld Size
Development **
Development
(ac)
(sf)
(so
(sf
Yr. 2003
Commercial:
120000
130000
Al Off 2.3
30000
Total Com Development this year:
30000
Housing:
113 units
B - General SF
12 units
Total Hsg Development this year:
12 units
Yr. 2004
Targeted
Commercial:
A7 Ind 1.6
14000
C6 Off 1.2
22000
Total Com Development this year:
36000
Housing:
D - General SF
12 units
150000
166000
125 Units
Total Hsg Development this year: 12 units
Yr. 2005
Commercial:
C3 Off 0.5 12000
C4* Off 0.5 18000
Total Com Development this year: 30000
Housing:
D - General SF 12 units
180000
196000
137 Units
Total Hsg Development this year: 12 units
Yr. 2006
Commercial: 210000 218000
C2 MX 0.8 22000
Total Com Development this year: 22000
Housing: 149 units
D - General SF 12 units
Total Hsg Development this year: 12 units
I .
Commercial:
Targeted
t- _I
`
24000
Cumulative
Projected
36000
D - General SF
Commercial
Cumulative
36000
Parcel No Use Lot size Bid Size
Development **
Development
(ac) (sf)
(sf)
(sf)
Yr. 2007
12 units
Yr. 2009
Commercial:
Commercial: 240000 254000
- C5* Off 0.9 36000
Total Com Development this year: 36000
Housing: 161 units
D - General SF 12 units
Total Hsg Development this year: 12 units
Commercial:
Commercial:
C10 Off 1.0323
t- _I
— Total Com Development this year:
24000
Housing:
C8* Off 1.0323
36000
D - General SF
12 units
Total Com Development this year:
36000
Ll
Housing:
D - General SF
12 units
Total Hsg Development this year:
12 units
Yr. 2009
Commercial:
C9 Off 1.0323
24000
Total Com Development this year:
24000
Housing:
D - General SF
12 units
Total Hsg Development this year:
-12 units
Commercial:
C10 Off 1.0323
24000
— Total Com Development this year:
24000
Housing:
D - General SF
12 units
Total Hsg Development this year:
12 units
�1
4
i"
- J
Yr. 2008
Yr. 2010
270000 290000
173 units
300000 314000
185 units
330000 338000
197 units
j
Commercial:
420000 421000
451000
i
I
i
30000
D4 MX 0.6
15000
I
I
_
31000
Targeted
1
207 units
Y r. 2014
Cumulative
Projected
7
Commercial
Cumulative
Commercial:
Parcel No Use Lot size
Bld Size
Development"
Development
D3 MX 0.8991
(ac)
(sf)
(sf)
(sf)
Total Com Development this year:
25000
Yr. 2011
Housing:
Commercial:
r�
354000
360000
C1 Off 0.7
. 16000
Total Com Development this year:
16000
Housing:
207 units
D - General SF
10 units
i�
Total Hsg Development this year:
10 units
i
Yr. 2012
Commercial:
390000
390000
A6 Off 1.8
36000
Total Com Development this year:
36000
OL
Housing:
-
207 units
0
Yr. 2013
j
Commercial:
420000 421000
451000
D2 MX 0.8991
16000
30000
D4 MX 0.6
15000
Total Com Development this year:
31000
Housing:
207 units
207 units
Y r. 2014
j
Commercial:
450000
451000
D1 Off 0.8991
30000
Total Com Development this year:
30000
Housing:
207 units
Yr. 2015
Commercial:
48000
476000
j
D3 MX 0.8991
25000
-
Total Com Development this year:
25000
Housing:
207 units
r�
1
i
Guide
to HH Parcelization
And
Pace of
Commercial
Development
Delineation of
Parcels - See Map for Location
Parcel No
Use
Lot size
Bid Size Est. Yr. Dev.
'
(ac)
(sf) Commences
j` f
Phase A
Al
Off
2.3
30000
2003
A2
Ind
1
10000
2002
A3*
Ind
1
21000
2000
A4*
Ind
2.1
14000
2000
A5
Ind
1.3
12000
2002
j�
A6
Off
1.8
36000
2012
A7
Ind
1.6
14000
2004
Ahl
hsg
NA
2000
Ah2
hsg
NA
2000
_I
Total Dev
- 11.1
137000
2012
Phase B
Ll
B1
AL
3.4
NA
2000
B2*
Apts
1.6
NA
2001
r
B3
MX/Apt
0.7
12000
2001
B4*
Off
1.6
20000
2001
Total Dev
7.3
32000
2001
n
Phase C
C1
Off
0.7
16000
2011
C2
MX
0.8
22000
2006
C3
Off
0.5
12000
2005
C4*
Off
0.9
18000
2005
1 1__3
C5*
Off
0.9
36000
2007
C6
Off
1.2
22000
2004
C7*
Retail
1
11000
2002
C8*
Off
1.0323
36000
2008
C9
Off
1.0323
24000
2009
C10
Off
1.0323
24000
2010
Y_!
Total Dev
9.0969
221000
2011
r--,
Phase D
D1
Off
0.8991
30000
2014
D2
MX
0.8991
16000
2013
_
D3
MX
0.8991
25000
2015
D4
Off
0.6
15000
2013
Total Dev
3.2973
86000
2015
�_j
i�
J
IL
�I
LI
�l
i�
1
. LI
i
jl
'.l
Phase E
No commercial development in Phase E
Total Site Dev 30.7942 476000 15 YEARS
Assumes: Dev commences Jan 1. - Yr. 2000; AL not in absorption
* = rehab Building
I
li 1
SECTION 7 DEVELOPMENT IMPACTS
l
Jobs and Economic Impacts
The following chart demonstrates Hospital Hill's expected annual revenue stream produced by
r1 real estate taxes and state income tax revenues at complete project buildout. Estimated assessed
L_1 values were derived from tax assessments of current Northampton properties of similar type.
Calculation of local annual tax revenues was based on Northampton's 1999 tax rate of $15.05 per
$1,000 of assessed value.
Employment projections were derived using the following conservative standards:
Light Industrial 1 job : 500 SF Retail 1 job: 500 SF
�t Office 1 job : 450 SF Assisted Living .66 job : 1 unit
I r�
Table 7A The Village at Hospital Hill - Commercial Development Program
Tax & Employment Impacts
(1
Projected
Projected
u
Development
Projected
Estimated
Value
Northampton
Projected
Projected
By Type
Size — SF
Assessed Value
Hospital Hill
Annual Tax
New
New State
( All Phases)
HH Develop.*
$ /bld GSF By Type
Develop.
Revenues
Jobs
Tax Revenue
Ll
Lt Ind. - New
66,000
$60
$3,960,000
$59,598
132
$201,534
Lt Ind. - Rehab.
35,000
$40
$1,400,000
$21,070
70
$106,874
Office - New
134,000
$75
$10,050,000
$151,253
298
$454,638
Office - Rehab
110,000
$60
$6,600,000
$99,330
244
$373,210
Mixed Use - New
23,000
$60
$1,380,000
$20,769
51
$78,035
L �..
Retail
22,000
$67
$1,474,000
$22,184
44
$67,178
I
L 'e' i '
Assisted Living
56,250
$7,031,250
$75,000
50
$76,331
(75 units)
TOTAL
390,000
N/A
$31,895,250
$449,203
889
1,357,800
[`
* 86,000 of Phase D commercial activity not included since re -use
program is still
undefined and
�
projected development is so
far into the future
40
is
r
j
l
I
1. .
Residential Real Estate Tax and School Impacts
IJ
For the purpose of this analysis, building values have been estimated as follows: small lot
residential structures at approximately $150,000, large lots at approximately $200,000, and estate
lot structures at approximately $250,000. Values of new apartments and townhouses are
projected to be at $75,000, and the rehabilitated apartments are valued at $60,000. Market value
was estimated by using information from recent news articles on residential real estate values in
Northampton. Tax revenues are estimated using 100% of value combined with the 1999
Northampton tax rate.
Figures for public school - attending children are based on the 1990 census, assuming that general
overall Northampton demographics (2.28 persons per household and a ratio of 12.5% school -age
children to total population) will not change in the new development. Alternative case estimates
for children attending public school are based on data from the 1990 census and demographic
multipliers from the New Practioner's Guide to Fiscal Impact Analysis (Burchell, 1985). Both
estimates assume that only 76% of eligible school age children in the new development will
attend Northampton public schools, a current factor given to TCB by the Northampton School
Superintendent's office. School cost to the city is based on a weighted average cost per pupil, all
grades, derived from Northampton's 1999 per pupil expenditure by level of school (elementary,
middle,. and high school), which average is $5359.87.
n
LJ
4 n�
l
C. +
i r
of
41
IF]
LJ
Table 7B The Village at Hospital Hill — Residential
Development Program
Tax Revenues & New School Costs
Estimated
Estimated
Development
Projected
Potential
Children
Children
Low Est.
High Est.
By Type
Units
Annual Tax
Attending School
Attending School
New School
New School
All Phases )
HH Develop.
Revenues
1990 Census
Alternative
Cost to City
Cost to Ci
Residential:
Single Family
73
$165,345
20
45
$105,605
$236,145
Small Lot
$26,608
Single Family —
11
$33,220
2
5
$11,899
Large Lot
13
$31,235
$69,846
Single Family
16
$60,400
6
Estate Lot
Townhouses
37
$41,903
11
10
$55,034
$50,983
Apartments -
47
$53,228
13
6
$69,908
$28,845
New
Apartments -
23
$20,838
7
3
$34,210
$14,116
Rehab.
Total
207
$374,933
59
82
$307,892
$426,541
Commercial $449,203
Tax Revenues
Total Potential $824,136
�:. Tax Revenues
L f
5 ..
i L 42
i
i
SECTION 8 REQUIRED PUBLIC INVESTMENT
Introduction
To undertake a 124 acre development the size and complexity of Hospital Hill requires a
L J substantial investment in infrastructure. In addition to the understandable need for a complete
new road and utilities network to open up the site, Hospital Hill has the added potential burden of
J requiring the removal of 800,000 square feet of existing buildings before development can
proceed. Development of this scale also increases vehicular traffic on local streets. Accordingly,
attention must be paid to off -site transportation related improvements to support the development
as well. The cost and scope of all these required improvements is well beyond the financial
ability of land sales to absorb. If Hospital Hill development parcels are required to absorb the
cost of needed infrastructure improvements as part of pre - development, resulting final land costs
' will far exceed the market price of similar parcels on the market today. Therefore infrastructure
improvements necessary at Hospital Hill must be regarded as public infrastructure investments
>I� required to promote community and economic development. As such public financial resources
must be identified and secured over time for implementation to successfully occur.
In the case of Hospital Hill, necessary public infrastructure investment can be viewed as four
LJ separate but related elements:
1) Environmental Remediation and Demolition of State Hospital Buildings and tunnels;
2) On Site Infrastructure;
3) Off Site (but project related) Infrastructure; and
4) Route 10 Access Improvements (partially related to the project).
Demolition and Environmental Remediation
As described earlier in the Historic Rehabilitation section, TCB has identified a limited number
(1 5) of the almost sixty (60) buildings on the grounds of the former Northampton State Hospital
to be retained for further study of the financial feasibility of rehabilitation. Such properties would
1 need to be environmentally remediated by DCAM, rather than demolished, and although they
represent a small percentage of the total volume of existing, historically significant space at
Hospital Hill, nevertheless clean up, rather than demolition, could save the Commonwealth an
l estimated $ 1,982,000.
The remaining structures and objects, plus the extensive tunnel system, would need to be
r demolished by DCAM prior to property transfer to the developer. TCB's development program
has assumed that DCAM will secure funds necessary to complete demolition and remediation of
the entire site simultaneously, in year one of the project. The break down of demolition and
remediation costs by phase is shown below in Table 8A, and detailed cost information by
building and phase is at the end of this section.
J 43
I �
I
Phase:
TABLE 8A
TABLE 8B
A
Cost Category:
C
D
E Total
Environ. Remediati(
1
I J
Demolition
$47,223
Total
$252,708
$414,531
$1,992,232
HH DEMOLITION AND REMEDIATION COSTS BY PHASE
Phase:
TABLE 8B
A
B
C
D
E Total
n $825,500
$73,840
$447,200
$47,223
$0 $1,393,763
$252,708
$414,531
$1,992,232
$7,537,745
$0 $10,197,216
$1,078,208
$488,371
$2,439,432
$7,584,968
$0 $11,590,979
On Site Infrastructure
Preparing the site for commercial and residential development will also require the construction
of an extensive roadway system, and the provision of new sewer and water lines, electric service,
telecommunications and possibly gas. While definitive cost information must await final design,
Our site engineer has prepared preliminary cost estimates for required on -site infrastructure (see
Appendices for engineer's cost estimate information).
i
44
TABLE 8B
HH REQUIRED ON SITE INFRASTRUCTURE BY PHASE
r ,
Phase:
Cost Category:
A B C D
E_ Total
hJ
Infrastructure
$140,000 $329,000 $471,000 $1,806,000
$450,000 $3,196,000
'I
Stormwater Retainage
- _ - -
- $200,000
system
Total
$140,000 $329,000 $471,000 $471,000
$450,000 $3,396,000
} Off Site Infrastructure
Detailed information on possible traffic impacts of Hospital Hill development will be an
r important topic for examination in the Draft and Final Environmental Impact Report. TCB is
committed to begin the EIR process immediately following execution of the LDA. Until that
information is developed, it is impossible to predict what level of signalization and other
roadway improvements to nearby streets will be required to mitigate Hospital Hill traffic
' impacts, and therefore what the potential cost of such measures will be. Nevertheless, after
1 conferring with our traffic engineer, we have budgeted an amount for traffic signalization and
other Off Site improvements of $250,000.
j j
44
i_
f - 1
Route 10 Access Improvements
All parties recognize that the hairpin turn through the former railroad embankment to the south
LJ of the Hospital Hill site should be eliminated for safety and access reasons. This local traffic
improvement had been programmed prior to TCB's developer designation for Hospital Hill. We
have recognized from the beginning that access to Hospital Hill would be best handled by
channeling site traffic from the south, directly from Route 10 via an improved connector road.
No design had been completed, however. Community planning meetings for Hospital Hill re-
enforced the need for this connection, and resulted in calls for a new approach — a simpler direct
connection through publicly owned land. This would collect and channel Hospital Hill traffic
directly onto the campus, and discourage local neighborhood traffic diversions. It would also
lessen the amount of non - Hospital Hill through traffic which exists on local neighborhood streets
today by providing a faster alternative. Accordingly TCB directed its engineer to devise the
simplified direct connector concept currently shown on the Final Master Plan. As an area
roadway project, this Route 10 Connector Road is only partially related to Hospital Hill
development. DCAM has acknowledged its vital importance to Hospital Hill in the past,
however, and publicly promised state support and financial participation. Since the absence of
design prevents an accurate cost estimate at this time, we have nevertheless added a general cost
estimate of $250,000 to the project infrastructure budget to assist in implementing traffic
improvement.
Potential Funding Sources
With almost $4 million in required infrastructure improvements, in addition to building
demolition and remediation, Hospital Hill faces major public investment challenges. Obtaining
public funds to complete these necessary infrastructure improvements will require a strong
partnership and concerted action by TCB, the City of Northampton, the city's legislative
delegation and the Commonwealth. If Hospital Hill is to achieve its full potential as a public
economic development project, every available means to secure public funding must be explored.
Possible programs which might be explored include:
• Special Legislative Appropriation
• Community Economic Development Action Grants
• Public Works Economic Development Grants
• Chapter 90 State Highway funds
• US Economic Development Administration funds
• ISTEA — Federal Comprehensive Transportation Planning funds
• Tax Increment Financing — Bond Issuance
i
45
J
i
i
i..
i
m
'0' O O O
O O N O O O t0 et
0 0 0 (O (fl O N O CO t0
L..
N
CO
CA (D O CO h
O
O r d: OR O N CM
CU V: O 00 O C N O CA t:
r
O
CD 00 t0 Cl h
0) h CT O
O 00
O LO CO 00 tf) CD r
h C) V' t0 h n M
p
N t0 CO OO Cl) O h U) M
N
E
CA C0 O M h
E V'
M (fl cc O C0 O l0
E
cc (D N C0 h h h O "It N
N N N
C0
r (D to V' N
C) N
C0 00
Q h
N O h CA LO 00 V'
CD V' N O M
d
❑
O N N m CD N LO
V N r N CO —
'IT O 0)
to CD
l._
7
r N
CO Cl)
r r
0 0 O O
O O O O
O O O O
O O O O
O CD Cl 0 O O
O O O O O O
0. 00
ao
0 0
CL
C) C) ()o
00 oet
p,
006 00
to r C) 00
=
0 0
O O O t0
O O M O
h t0 'd_ M O N
L
O
O NO
R
M N LO n
Co
4.,) 4.,) N� N
(V
r C O
y
d
r M V
U
U
U
I
'.-
-
C
7
0 0 0 0 t0 ti
7
O N O CD O CD V'
0 0 0 O r OO O N M
C
7
O O O O O b 0 0 0 co N co O CO w
0 0 V: O O O O O 'd: N O T h
C)
O O O t[7 O h
O O r O h 0 0
O
E
r o 0 O O CD 00 to O r
00 O O h 0 V t0 h h h
O
E
O N O O O O O O V' t0 O U to r
O N t0 CD C o r r 0 CM O h Co M
Nr r_ h h t0 a eh
Q
O O CT CO t0 M N
O O r (0 O 0) w
Q 'I
tx) O M CD CC O C0 tD M
O t0 r N O h M to LO O
Q
rI 00 CO N O t0 M
O O N N CY) M CD CA t0 00 N CC) tD CA
d
is
O M V' t0 CA N h
6A
h n N CO V' N CT h 00
M 'd' N r N O h N COO C7 dN' O W le
—
CA
CO r co O
r M -e
r N
n
C0
L
� a
r
am
J I
to
J
Q
= O
Q
~ O
H
o
F-
p
V
n
O
E. E` V
E
Q
m E' E E E 10 0 0 0 E +`� U
U
O
0
p
m (moo E E E`
O
E c�a m E E E 0
a) a) a) a)
m m a) a) a) o
a) a) a) m
0
o
E
0 0 0
�aaah- +
7
a) a) a)
a +
7
a) m a)
�aaaa T 2 �aaaal- _
C
�aaaaaF
m
s otS
U
y
U
U)
U
d
p
p
❑
Q
Z c
to
m
U
V
L
CD m m CO m
_
y
L
S S S S S S S S
m
L
m m m m m m m m m m m m
Ca
CL
`°
a
O
a
_
E E U) 0 U)
d)
m m o)v m
`m
m a) m � (n
m CO mmmmm
E
o
C 2
E_
°)_ v v
a) E C C` C
E'
t0
�= L L_ to
CO
Z
W
O
R
Z
(D 0 co
�' = 0 ' O
Z
_
U
U ❑ m (� Q LL
a O
C d. 0.. 0-
�t CD V' O
3 f a) CD
J H
'a
E a�C (? i M (�)
a) a) a) (u 'o 0 0 0
W Q u rn
'�
0 7 E 7 E E E E E
-
E
no
O O
7
m
Z 0 7 CU 7
(�
O O O O N CU N (U aEi
m
.�-.
= =C7 = SSg�
�°
It
U
l
I
�
y E
CO O CO
m
N 'D
r Or
(r
m c
a
O Ch co C'7 O O h N 0 0
L
I'
CU a
C7 co N N
R �_
c M - � M r
C4
... ,,.
CL
m
s
°' m
amr
,I
I
_n
I�
OI
E
d
❑
a
f4
d
U
C
7
O
E
(f1
O M M d' N N O O V' N CD 00 O O CO CD O tD O
O CD V: O V: r M M LO LO h 00 O O co M LO V' O
O t� CD N to M 04 r - 00 M r �' CL) O O o0 ti 00 ti
M CO r N O M 0 LC) M M CD r Lo M N 00 CO N N
r N M M U CO V_ N ti M O CO CM r N 00 t` 00 M
(fl t0 V' CT N V' M It 00 00 ti ti tl- co to L r- � C
LO M LL7 'd' N O VN' . M r et r
r r L11 ti
O O O O
O O O U)
N O N N
M CC) M N
-.47 Cl) le
Cl)
V O O O N O 00 O O O t- M
D to M O M O 7 c0 Up c! T 00
V O m 0 0 0 LO CO M to r
1 ) V_ co M V r- eF M N
li C6 CO N O r r r N V � m M aa)
M V• C
O
E'
Cl)
❑'
A
d
U
O O Cl
O O Lq
C7 CD N
to
M
M
IF
O a0 ao '� N N O O V' O N Cfl m O O O O CD O t0 O C
M U O to ( W O O 00 O M Wt in C
>1 O O N LO M N f` 00 m r V' CO O 6 O c0 ti t"9 tai E
.A M M r N O M 0 L!7 M N M CD r M N O M W Ln QL
'.C) r N M M Ln N V: N f` M M O M M M r N to 00 N r 111 Q
d CO C V' O N V M V 00 V CO ': N" CO C0 r ! M d
N M M m V• t- M N t- M m CD M
co LO N O V• r CD r r It r
r r La h
J
l
O
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O o 0 0 0—
a a a a a m a a a a f a a a a a aEi m a a o U
0 0 0 o v 0 v v 0 v 73 v v 0 v a o L +
c
M
tA
d
❑
N O O O N O M CO O O f✓ M
(D to H O M O 00 LC) CA C1i M
CO 00 Ih O V' O C Oi N tD f` O
N O r M O LO V' co M to h
M V: Oct CO 'V: r N lei M W
M M h 00 O f` N t�: tD h 0
r
J
Q
O w
0
U
+
m
E M M M M M M M M
2<<<<<<<<<<<<<<<<<<
0)
�•'
t6
v
oc
m o of
a
O cm
0 a
S E O
L 0 00 NS C
C N rn Z c
o o
o v o
tL�v2m
W
0
to 42 L
c 0 -0 Z' �- `m O m
m OJ
-:..
E
N s
L E U) m N co N 7 CO Q. C
t9
Z
.O�-.
N C o CV c C >. O O O 0 L G
C c__ O O U S
c to
Ca m �' Z
c O
l�
M
C
O O S c co • „N,,
C c O. `1 Q C C
m L 0
x c
E L 9 9 L C U
Q =�o �z oW�� �°
co L` L
..
00
6 W Z
Y v
CC
E
o o
2 U5
S z L
E
N O O O N O M CO O O f✓ M
(D to H O M O 00 LC) CA C1i M
CO 00 Ih O V' O C Oi N tD f` O
N O r M O LO V' co M to h
M V: Oct CO 'V: r N lei M W
M M h 00 O f` N t�: tD h 0
r
J
Q
O w
0
U
+
m
E M M M M M M M M
N
Cl tT
( I ❑ M _ CO M N t� T r y c r� LO O O M m fl-
W 9 Cl) M M V' Cl) E M r N LO 'd V' r r r CD r r r r r x 0 0 0
Ca . L = r
L ? O. M
III
❑
Vi
WI
c0
t 11
y
d
O •
F ... a
Q
CO
CD
M
t l-
M
M
M
M
O ti _
L M -
O
N O U
m
CD � -a
N N O
N E
E
E
Q
U
y
w
0 0 �
E-
W
0
0
U
O
E
O Cl) (6
o Lc Q
tri
ti o
to
N
9
y
Q
a
C
O c0 m
CD O C
LCD r- O
co N O
E
❑
m
to
0
Cl)
O .+
co N co
M T fn
r- ° 0
r Q
O
Z
ca o 0
_ w
E o
c d E
O N ❑
c
W
0
U)
v
oc
m o of
O cm
0 a
S E O
L 0 00 NS C
C N rn Z c
tL�v2m
W
0
N
L
❑
N
Cl tT
( I ❑ M _ CO M N t� T r y c r� LO O O M m fl-
W 9 Cl) M M V' Cl) E M r N LO 'd V' r r r CD r r r r r x 0 0 0
Ca . L = r
L ? O. M
III
❑
Vi
WI
c0
t 11
y
d
O •
F ... a
Q
CO
CD
M
t l-
M
M
M
M
O ti _
L M -
O
N O U
m
CD � -a
N N O
N E
E
E
Q
U
y
w
0 0 �
E-
W
0
0
U
O
E
O Cl) (6
o Lc Q
tri
ti o
to
N
9
y
Q
a
C
O c0 m
CD O C
LCD r- O
co N O
E
❑
m
to
0
Cl)
O .+
co N co
M T fn
r- ° 0
r Q
O
Z
ca o 0
_ w
E o
c d E
O N ❑
c
W
0
U)
r -
SECTION 9 IMPLEMENTATION PLAN
Introduction
Implementing the Hospital Hill development Master Plan will require many cooperative
measures between DCAM and TCB, but none more important than completing the unfinished
business of the already executed Provisional Designation letter of December 7, 1999 (see
Appendices). This document pledged both parties to carry out a series of measures within a
specified timeframe.
TCB has worked diligently to fulfill its requirements under the agreement. It believes that
submission of this Final Master Plan satisfies many of its Provisional Designation
responsibilities, specifically those of Task 7 — "Prepare a Master Plan ". However there are many
other tasks from the agreement that remain to be accomplished:
No. Task Summary
1) Negotiate a mutually acceptable land disposition agreement
2) Prepare a survey plan of the parcels to be conveyed
3) Determine to scope of environmental remediation and prepare a schedule and funding plan
4) Identify buildings to be demolished and prepare a schedule and funding plan
5) Identify buildings to be re -used, and prepare a schedule and funding plan for hazardous
materials removal
r 6) Obtain necessary redevelopment approvals from the Massachusetts Historical Commission
7) Identify and approve a commercial real estate development expert to add to the TCB team.
As our planning has advanced, it has become evident to both parties that some of these tasks
were dependent on a clearer identification by TCB of the Final Site Plan. Now, with this obstacle
removed, accomplishment of the remaining tasks can proceed rapidly. Therefore, we have
incorporated these unfinished tasks into the Predevelopment Phase of the'Implementation Plan
outlined below. As we move into the Implementation Phase, it is assumed that DCAM will
cooperate with TCB to complete the remaining tasks of the original agreement, and move
aggressively, with TCB, into active development of Hospital Hill.
46
f j
I
�] Important Assumptions
In building the Hospital Hill Implementation Plan, TCB made certain important assumptions:
1. Building demolition and site remediation will be carried within the next 27 months, on
both the south and north campus, by the Commonwealth;
2. The Commonwealth will take primary responsibility for satisfying the Massachusetts
Historic Commission and carrying out the MOA;
3. The Route 10 Access Road improvement project will be undertaken by the City and
others in a timely manner, and DCAM will participate in funding this partially project -
related road improvement;
4. Previously planned reconstruction of Route 66 will be undertaken by within the next
year, and will include extension of sewer service to the area of Parcel E — The Ice Pond
(� Site;
_i 5. DCAM and the City of Northampton will work with TCB to identify and secure public
grants or other funds to finance necessary project infrastructure: roads, sewer, water,
telecommunications and electric service, plus off -site project - related infrastructure
improvements: traffic signalization and other necessary measures which emerge from the
n environmental review process.
L_J
n The Implementation Plan - Graphic
A graphic summary of TCB's 15 -year Implementation Plan for achieving redevelopment of
n Hospital Hill is shown below (see Appendices for the full detailed plan). The Implementation
Plan sets forth the major tasks which must be accomplished, identifies the expected start and end
dates (duration), names the parties or entities responsible for carrying out each task, and the
J public costs, and attempts to show, in a linear fashion, relationships amongst tasks. Some tasks
like "marketing" and "public information" will be carried out, in one form or another, throughout
the life of the project, and, therefore, are nonlinear. Others, like developing the Phases, will
overlap. All of the main tasks will have numerous subtasks, and there may well be additional
tasks or project requirements, impossible to predict today, which will have to be accomplished
before Hospital Hill is finished. The goal of the Implementation Plan is not to predict the future
with complete accuracy, but rather to illustrate the complexity of a development undertaking of
this magnitude, and the resulting need for maximum flexibility and cooperation amongst the
r three responsible parties: TCB, DCAM, and the City of Northampton.
I
47
�I
l mo
L
S'
ai5
Ss'
.............._..
............... _._._. ........... _..._. .. ..........
_ ........... _...�..
...........
.......... __ ........ .
va
.......
- ...._....__
...__.._...........
_. ....... _._........._•___._.....___
...............................................
_. ....
....... .. ..................
..... ......
O
�.__...
P
O
Q
T
O
b
W
O
N -�
`
O
Q
o
O
—
h
LL
�h —
q
O
r
a
Z
CO
Q
O
�
O �
h
�
O
N 7
co
F
_._..._....__
__.......... _.....
_.._.........
w
y
Q
_
c�
E
zz
W
t
Q
t
4{
_
U
U
dS
ca
U
p
ca
U
F
F
F
EL Q
F
L
U
a
o "
P
--
N
O
o
fA 49
Vf
K
K
Vi
U
9
K
Vi
N
N
N
C
a
d V1
£
£
a
a
o
a
o
0
0
0
°
r
A
G
rn
3
h
d
V
E
N_
to
6
CO
U
Q
U
u g
u
u
an d
o
,,�,
U
O
A
V
O
F R'
eD
m
n
n
n
0 0
M
M
o
M
n
h
N
N
n
F",
P
; f—I
"I
L JUI
77,
4i"
.... . . . ........ . ... . ......... .
..................
... ..............
.... . . . . ...............
. . . .............
.. ...........
. ....._........._....---
.......a
q . ......
. . . ..... . ....................
. . .... .. .. . ....
. ..... . . .. . ................. .. ............
..........
.................. . .......... . . ......
. .... . ...........
4n
MA
ZZ
LL
z
zr
C14
;z
02
u cz
C2
LL
u ll
... . . .......
u . ........ . . ............ . ...
. ...... .
.... ..........
. ..... . .......... . . ...... . ......
. .............. . ..
cm
I E
. ....... .
LL ..
C.)
I
0 V . ,
21
1 0
46
In
0
0
rQ
cQ
.I
ta
.!2
0
E
0
Ir
u
EIR cl .
u
li
- d
IR
0
E
Fll�
Lj
rti
j6
... . ............
.... . .....
. ..... ......
... ......... --------------
.........
. . ..... . . ............................
................
. ........ . ...........
. . . . ....... . ... .
. ........................................
.
. .......
. ........ ............. .............
. ...............
..... .. . .....
. . ....... ... ..... ....
.. .
o F
u
Z
O
LL
. ...
. .... . . .....
O
o
. ..... .....
........ . .....
.
.
. . . .............
. ...... >
3b . ...........
. ... . ....... . .
. . ................ . ..........
. ..... ......................
.... . . ...... . .........
. . .........
F
z
E
0
E In
O Q
lz
CL
-oz:
O
O
O
22
—0
—0
—0
—0
cn H
F
y
[ =
�,
N
3
3
3
F
F
"
N
�
c
0
R
4
T
T
T
cC
u
-o
0
0
>
H
0
a
-
0
0
r4
irs)
A
-
E
>
9
2
C)
ta
79
0
t9
I R
E
CIR
> C:
.6
O
Pi
F7
1.., J
r,
r-,
The Implementation Plan — Major Tasks
Implementing Hospital Hill development, as envisioned by TCB, entails ten (10) major tasks or
steps:
Table 9A Major HH Implementation Tasks
IF
L
F .
F I
L -.J_
LI
I�
u
r �5
LJ,
I x.
No. Description
1 Predevelopment Planning
2 Demolition and Remediation
3 On -going Project -wide Tasks
4 Develop Phase A
5 Develop Phase B
6 Develop Phase C
7 Develop Phase D
8 Develop Phase E
9 Public Information Program
10 Public Open Space
Completion
Date
4/2/00
1/1/04
12/28/10
711/12
12/31/03
12/31/11
1/1/15
6/1/02
On -going
On -going
* Note: All tasks will likely require some level of participation by all parties
Task 1 Complete Preliminary Planning
For Hospital Hill to become a reality, TCB, DCAM and the City of Northampton must work
cooperatively on a series of tasks related to completing the planning, and preparing the legal
ground for a new development project. Major subtasks included in Task 1 include:
• Negotiating and executing the LDA;
Completing the MEPA process — All three parties must work to secure environmental
approvals for Hospital Hill. A project of this scale cannot advance until MEPA approval is
granted. Although TCB will have primary responsibility to oversee the technical work
l_ I program, in response to the approved MEPA scope, major responsibilities will also fall on
the City and DCAM, especially in regards to fulfilling the requirements of the Massachusetts
Historic Commission MOA, and responding to comments raised by agencies and the public
1 during the review period. It is hoped that at least a Phase I Waiver will be granted by MEPA
�
within six months of commencing the process;
• Securing local regulatory approvals — although TCB's site plan and development program
was designed with the City of Northampton's Planned Village overlay zoning in mind, .
U numerous technical issues that would impede or prevent development have been identified.
These will need to be addressed legislatively if the Plan is to move forward. The City's
development control boards — Planning, Conservation Commission, Historical Commission,
j and DPW /Engineering, all have jurisdiction and will need to be consulted. It is TCB's
expectation that City officials will assist TCB in describing to these boards and agencies the
local economic development context of the Hospital Hill project. TCB may need to explore
l -J with these officials legal mechanisms to allow early, non - controversial elements of the plan:
re -use of the power plant and laundry buildings and assisted living development, to move
forward on an accelerated basis;
• Formation of a non - profit land holding entity — TCB will need to quickly implement a
separate legal entity to take delivery of the land when it is released by DCAM, oversee the
technical work program, and provide a vehicle for grant applications and to potentially
receive public funds to cover infrastructure improvements;
Finally, there are several technical planning tasks remaining. TCB will work with Calthorpe
to prepare urban design site controls and easement concepts to ensure that future private
development conforms to the approved Master Plan's "new urbanism" principals. A set of
overall design guidelines will be drafted in parallel with the zoning process.
Task 2 Complete Demolition and Infrastructure
�I
The importance of DCAM's early attention to environmental remediation and building
demolition at Hospital Hill has already been discussed. TCB has carefully considered the timing
I,
of demolition and remediation actions required phase by phase in order to support the
development program in the Final Plan. The sequence of demolition and remediation is laid out
~: in the Implementation Plan, along with projected costs derived from DCAM studies. Based on
discussions with DCAM TCB has assumed that all such work will be completed at Hospital Hill
within 21 months, or by October 1, 2001.
In addition to demolition and remediation, other public investments will also be required to cover
— infrastructure costs, both on -site and off -site. In Task 2 TCB had suggested a process and
49
I�
schedule whereby TCB, DCAM and the City can work together to meet this need. TCB is
suggesting that this investigatory process become a top priority early action item for all three
parties. Off -site projected related infrastructure, such as Route 66 re- building, the new access
—� road to Route 10, and new signals at problem area roadway intersections, will also require public
investment.
Task 3 On -going Project -wide Tasks
There are a number of tasks that will need to be carried on by TCB as developer throughout the
life of the project. These are expected to include:
• Maintenance and Security — As DCAM turns over property to TCB's new landholding entity,
responsibility for these activities will also pass;
-� • Marketing — Developers, businesses and the general public must all be made aware that
Hospital Hill is a reality. TCB has developed a schedule and a budget to engage in a
�l professional marketing campaign. TCB will rely heavily on cooperation with area
J commercial real estate brokers, local business organizations, and regional economic
development agencies to "get the word out ". Advertising and direct mail will also be used as
necessary;
0 Task 4 Phase A Development
The heart of the Implementation Plan is the schedule for developing each of Hospital Hill's
phases. After careful study of site characteristics and layout, local market conditions, timing
required for site improvements, and the expected regulatory process, TCB has chosen an
approach whereby several geographic areas can be developed simultaneously.
As currently envisioned, all four phases of the main campus area will share a similar
development process:
• Finalize the Development Program — in this beginning step, it will be up to TCB to finalize
the list of which buildings can be saved and which must be torn down;
• Complete Building Demolition and Environmental Clean up — no significant development
can advance until DCAM completes this essential step. For each phase we have has assigned
a cost and schedule for clean-up, using best available information;
• Construct Roadway & Utility Infrastructure — For several of the phases, significant
development cannot be advanced until the site is opened up and new utilities are in place.
This costly and time - consuming process has also been estimated for each phase in relation to
each site's unique needs, and projected market absorption;
50
l I
o Complete Land Subdivision — Land within each Phase will need to be subdivided in order to
be made ready for eventual conveyance and development;
• Land Takedown — when DCAM's site preparation responsibilities have been met and the site
is suitable for development, in some cases even before infrastructure improvements are
completed, the land should be conveyed, phase by phase, to TCB's land holding entity.
Active land development - land sales and construction by TCB or others - can then take
place;
• Complete Site Preparation — for each development site TCB, as land developer, will need to
ensure conditions are right for active development prior to land sale: access to utilities,
grading and other physical improvements if necessary etc.;
• Market Development Sites — no development will take place unless TCB actively solicits
new owners and developers. The marketing process will take time and money;
• Complete Land Sales — For each Phase we have prepared a parcel by parcel absorption table,
based on realistic conservative projections of market penetration. The end result is a Phase by
Phase land sale schedule, extending in some Phases for over a decade.
Phase A is one of TCB's "fast track" development areas. Because there is so little demolition and
'IL] remediation work to be done by DCAM, and because immediate access to development sites is
available from Earle Street, by- passing completion of the new access road, and, finally because
there is active development interest in several sites, TCB anticipates transfer of at least some
elements of Phase A from DCAM early in the year 2000. TCB would like to explore a transfer
even before completion of the full state environmental process. Full development will require
the completion of the new access road, however. The last parcel in Phase A therefore is not
projected to be sold until the year 2012.
Task 5 Phase B Development
Phase B is another of TCB's fast track development areas. Discussions are underway with
several assisted living developers who seek access in advance of completion of building
demolition and new roadway infrastructure. Accordingly, TCB would like to work with DCAM
and the City to "jump start" Hospital Hill with early Phase B development. If TCB's rehab
development program proves viable, and its mixed - income housing development moves ahead as
planned, Phase B land sales could be completed as early as the end of the year 2003.
Task 6 Phase C Development -
Substantial investment in building demolition and remediation, plus new roads and utilities will
^j 51
be required to open up Phase C — the main commercial area. Therefore TCB does not anticipate
land transfer before 2003, and the last sites in Phase C are not expected to be sold until the very
end of the project in 2015.
Task 7 Phase D Development
Phase D requires the largest amount of demolition and site preparation. Logic also dictates that
Phase D's interior - located sites, both residential and commercial, will lag in development timing
compared to more accessible and visible sites at the project's edges. Accordingly, TCB does not
anticipate land transfer until 2003 at the earliest and full development until the year 2015.
Task 8 Phase E Development
The 20 parcel Ice Pond Site differs from the rest of the project. It has one programmed use —
single family residential — and does not depend on DCAM demolition or remediation. It does
however depend on two important public investments: extension of sewer service to the site via
independently programmed Route 66 improvements, and the provision of $450,000 in roadways
and utilities to open up this mixed income housing development. Nevertheless, based on the
strong local housing economy, and discussions with the City and others on infrastructure, TCB
believes Phase E can be completed by mid 2002.
Task 9 The Public Information Program
TCB is committed to keeping the neighbors and others in the Northampton community fully
informed about the progress of the Hospital Hill development. TCB has programmed and
budgeted for an active community outreach program extending well in to the future.
Task 10 Implement the Open Space System
Hospital Hill contains almost 3 8 acres of publicly accessible open space — almost 47% of the
total development site. TCB is committed to designing and providing this space as project
financial resources permit. Deciding on who ultimately owns, polices, and maintains this space
when development is complete and the majority of the site is private property, and how Hospital
Hill open space will connect with the region's expanding park and pathway system, are complex
subjects that deserves concerted attention by TCB and the City of Northampton. We have
therefore programmed a schedule and budget to address these important public issues.
END
52
The Village at Hospital Hill
Financial Plan and Land Disposition Proposal
Since receiving its provisional developer designation, The Community Builders (TCB) has been
working diligently with the Northampton community to devise a master plan for the
redevelopment of the former State Hospital site that addresses the broad range of community
objectives for the site in a coherent and realistic manner. There is at last abroad consensus in the
community about how the site should be utilized as a community asset. TCB won the support of
the diverse interest groups for a development plan that has the potential to realize the community
development objectives that have evolved over the last twenty years.
Over the same time frame, TCB has been testing the development plan on the local real estate
market. TCB has explored land and building sales with commercial real estate developers, light
industrial, commercial, retail, and non - profit companies, and has commissioned a comprehensive
survey of area commercial market conditions to objectively establish Hospital Hill's competitive
advantages and disadvantages. Several assisted - living and elder housing developers have also
shown an interest in the site. Hotel developers and operators have been approached about a
conference center facility. TCB has also been exploring in depth the potential for media and
technology based companies to serve as a cornerstone for new business activity at the site.
Several users and developers stand ready to commit to the site, pending the outcome of the
disposition process.
Financial Realities
Although the long range potential is exciting, the emerging financial realities have forced a re-
examination of several of our earlier assumptions. On the basis of work performed over the past
several months, the following conclusions must be factored into the financial structure and plan
for Hospital Hill:
The commercial development program will be slow and incremental. In our master
plan we have attempted to be as responsive as possible to the community's goal for
commercial development at a significant scale. Our market research has convinced us
however that the local market is not likely to readily absorb over 400,000 SF of commercial
development quickly. The local market is composed primarily of small (5,000 SF to 10,000
SF) users. Although possible, the likelihood of a large commercial user emerging appears to
be remote. Our development plan and the land disposition agreement must therefore be based
upon realistic assumptions regarding how the commercial market is likely to respond to this
opportunity.
Significant historic rehabilitation is not economically feasible. The sheer size of the
building complex, over 800,000 square feet of building space, is daunting. TCB has explored
the physical constraints and economic feasibility of re -using these historic structures with
architects, historical rehabilitation specialists, contractors and other developers. Narrow floor
plates, thick interior bearing walls, narrow column spacing, deteriorated physical conditions,
i
lack of building utility systems, and siting considerations severely hamper the reuse potential
for the vast majority of the buildings. While TCB is continuing to explore creative reuse
possibilities for a small number of the buildings, most of them must be demolished as quickly
as possible to allow development to proceed on the remainder of the site. The costs and time
associated with securing the approval of the Massachusetts Historic Commission for the
demolition program may be significant.
Building Demolition Costs Create A Difficult Obstacle to Early Development. DCAM's
LJ demolition cost report has raised anxiety about the potential for early development. Based
LJ upon cost estimates by DCAM, building demolition and clean up costs could reach $14.6
million. Since DCAM presently has access to only $4.5 million for additional Hospital Hill
n site preparation activity, fully 2/3 of the site could go unmitigated and undemolished for an
unspecified period of time. Without a clear, funded demolition plan and timetable, the
prospect of developing the site, with the continued presence of a huge mass of deteriorating
E l i buildings, presents a tremendous marketing challenge for any land developer. Clearly,
before TCB or anyone else can invest in new development, a solution to the shortfall between
n clean -up costs and current state resources must be worked out.
Environmental Review Process could be time consuming and costly. Because this
development involves the disposition of public land, the entire redevelopment process is
subject to an environmental review process. While the Mass MEPA office has indicated a
willingness to engage in a cooperative and expeditious process, the process has great
uncertainty and could result in significant costs and major time delays.
The costs of necessary infrastructure improvements will render Hospital Hill
I uncompetitive without significant public subsidy. Our engineers have concluded that
U virtually the entire existing roadway system must be rebuilt to meet Northampton
standards and provide necessary waterr and sewer lines and other utilities to support new
(] development. Extensive additional new roads, perhaps as much as 2 linear miles, will be
required. Estimates of the cost of infrastructure improvements exceed $3.5 million. Our
financial analysis has confirmed the assumptions which were laid out in our original
financial proposal to the Commonwealth: The burden of necessary infrastructure costs
will render Hospital Hill uncompetitive on the commercial market when matched against
smaller, traditional office and industrial parks not requiring such expensive infrastructure.
L l; To be competitive in the marketplace and meet the public purpose objectives associated
with this development, significant public subsidy for infrastructure costs is imperative.
1 1 The community participation process requires time and compromise. One of the
overriding objectives established by the Community Advisory Committee for the
12. development of the Hospital Hill is that the process provide extensive opportunities for
public participation. This is an objective to which our development team subscribes.
However, if the process is to be legitimate, the developer, the CAC and DCAM need to
�{ be prepared to continue to make modifications and compromises to the development plan
to address community concerns. Such changes may well have adverse impact on the
overall financial viability of the development program.
I � _
J Traditional Private Sector Approach to Land Development Process is not financially
viable. Under a traditional private sector approach, a developer, (TCB or any other)
� l would assume the development risk of this project based upon an expectation of a
J financial return which would balance risks and rewards and be at least comparable to
alternative investment opportunities available in the marketplace. Our financial analysis
n has led us to conclude that in the case of Hospital Hill, the potential return on investment
J is extremely poor particularly relative to the development risks that are prevalent. The
potential revenue stream to the property in terms of land sales is too small and spread
F1 over too long a period of time to offset the anticipated costs and risks projected.
Land Disposition Business Proposal
Considering all the above factors we believe that if Northampton's vision for Hospital Hill is
Cons, g p
to be realized in the foreseeable future, the approach to how the site will be developed must
be reconsidered. No profit motivated, private real estate development company (TCB or any
other) would accept the challenge of developing Hospital Hill under these circumstances —
the risks are too great for the potential achievable rewards. The required level of public
dollars is high and the availability of these public dollars is uncertain. Revising the
development program to match market realities, solving the problem of funding demolition
F and infrastructure costs will be necessary to enable private development to proceed.
Given the realities of the marketplace, it is simply not possible to structure the land
' development portion of this project as a traditional real estate transaction. A modified
� approach to the development process needs to be established for this project to proceed. The
modified approach must take into consideration the likely flow of public resources, the need
v for a phased development process and the need to temper the development entity's risk of
moving ahead without all of the necessary public dollars in hand. The question now becomes
how to advance the development process rapidly, building on the accomplishments of the
past 6 months, in a way that balances the risk to the developer with the potential for financial
f _
return.
UA
�i
Public underwriting of the land development process is a necessary pre - condition
for development. The entire process of bringing the Northampton State Hospital site to
1
the point where financially viable, market- driven development can commence is in
essence a public - purpose process. It will be highly dependent upon public resources for
j
its success and therefore can not be conceived of as a traditional private real estate
transaction. Its objectives - jobs, commercial development, tax revenue generation,
housing, zoning, historic preservation, site clearance, infrastructure, service to DMH
j
clients - are public objectives. Producing land ready for private sector development is
dependent upon public action and public resources. In an era where these public
resources are in limited supply, this is an extremely high -risk proposition for any
n developer,
particularly when the multiple year build out phasing of the site is factored
into the equation.
J Traditional Private Sector Approach to Land Development Process is not financially
viable. Under a traditional private sector approach, a developer, (TCB or any other)
� l would assume the development risk of this project based upon an expectation of a
J financial return which would balance risks and rewards and be at least comparable to
alternative investment opportunities available in the marketplace. Our financial analysis
n has led us to conclude that in the case of Hospital Hill, the potential return on investment
J is extremely poor particularly relative to the development risks that are prevalent. The
potential revenue stream to the property in terms of land sales is too small and spread
F1 over too long a period of time to offset the anticipated costs and risks projected.
Land Disposition Business Proposal
Considering all the above factors we believe that if Northampton's vision for Hospital Hill is
Cons, g p
to be realized in the foreseeable future, the approach to how the site will be developed must
be reconsidered. No profit motivated, private real estate development company (TCB or any
other) would accept the challenge of developing Hospital Hill under these circumstances —
the risks are too great for the potential achievable rewards. The required level of public
dollars is high and the availability of these public dollars is uncertain. Revising the
development program to match market realities, solving the problem of funding demolition
F and infrastructure costs will be necessary to enable private development to proceed.
Given the realities of the marketplace, it is simply not possible to structure the land
' development portion of this project as a traditional real estate transaction. A modified
� approach to the development process needs to be established for this project to proceed. The
modified approach must take into consideration the likely flow of public resources, the need
v for a phased development process and the need to temper the development entity's risk of
moving ahead without all of the necessary public dollars in hand. The question now becomes
how to advance the development process rapidly, building on the accomplishments of the
past 6 months, in a way that balances the risk to the developer with the potential for financial
f _
return.
UA
�i
'
TCB has prepared an alternative development model to accomplish the Hospital Hill
development. This model has been utilized extensively for economic development initiatives
throughout the region utilizing entities such as WestMass Development Corporation, the
Springfield Business Development Corporation, and Westover Metropolitan Development
Corporation.
A Single Purpose Not for Profit Development Entity
As the land development vehicle for Northampton State Hospital, TCB will form a new
501(c)3 charitable corporation, Hospital Hill Development Corporation (HHDC). HHDC
would be a wholly owned subsidiary of The Community Builders and will have as its sole
purpose the redevelopment of the Northampton State Hospital site consistent with the public
purpose objectives established by the Citizens Advisory Committee.
n The functions of the HHDC would include:
• Securing approvals from the MEPA office
• Securing approval of the demolition program from MHC
• Securing master zoning approval from City of Northampton
Acquiring the site, in phases, from the Commonwealth
U In partnership with DCAM and the City, securing resources from the
Commonwealth to cover all costs of demolition and environmental remediation
• In partnership with DCAM and the City, securing resources from all available
public sources to fund the costs of roads and infrastructure
• Undertaking a marketing program to attract both commercial developers and end
users to the site.
• Conveying development parcels to developers, including TCB, for development
in accordance with the Master Plan
1 • Securing all funding necessary to undertake land development tasks
- HHDC would "contract" with TCB (and potentially its development partners) to serve as the
program manager for the land development process, providing the professional staffing
necessary to undertake all of the land development tasks. TCB would be able to recover its
f� staff costs and overhead as a direct expense of the development project.
HHDC would acquire the property in phases from the Commonwealth. The purchase price,
in the aggregate amount of $2.5 million would be paid in the form of one or more promissory
notes. All proceeds that are generated through land sales would be used first to cover all
direct expenses incurred in the land development process (not covered by grants or other
a
r
I '
I
L_.
income.) Net revenues beyond direct costs would be paid to the Commonwealth to retire the
acquisition note(s). For budgeting purposes, we have assumed that payments on the DCAM
notes would equal 20% of gross revenues until the required land development loan is retired,
I J and 51% of gross revenues thereafter until the entire $2.5 million in notes are paid.
Thereafter, any net revenues to HHDC would be distributed 50% to the Commonwealth and
j� 50% to TCB as an incentive management fee. In this manner both parties would have an
)) incentive to work together to develop Hospital Hill to its full potential.
J Advances of Pre Development Funds
As the owner of HHDC, TCB will be responsible for underwriting and financing the pre-
development expenses incurred prior to take down of the land for Phase A, and closing on the
land development loan. Pre - development expenses are expected to total in excess of $1.1
million. These expenses will include costs for master planning, civil engineering, historic
consultant, appraisal, market studies, legal and title, marketing and promotion, staff costs and
overhead. Given the size of this investment, TCB will seek to have DCAM assume direct
responsibility for covering predevelopment costs wherever possible out of the $4.5 million funds
�] available to it for site preparation. Further, DCAM's cooperation will be important in TCB's
efforts to secure pre - development financial assistance for these efforts from quasi - public entities
such as MassDevelopment. In particular this might include the engineering costs pertaining to
J the MEPA process. In any event, we anticipate that the majority of these expenses will be
recovered at closing of the land development loan in March 2000.
Land Development Loan
In addition to pre - development cost liability, TCB, through HHDC may also be required to
assume the financial risk inherent with the land development loan. Beyond pledging the land as
security, TCB may be required to provide corporate guarantees.
Developer Margin
Although developer staff and overhead is included in the development cost budget, no
development fee has been included. Any developer margin paid to TCB will come from net
proceeds from the sale of the land. Our current financial projects anticipate net proceeds over the
12 -15 year development period, after payment of the DCAM notes, of less than $1 million. This
would be divided 50 -50 between the Developer and the Commonwealth. If land sales are less
than anticipated and/or absorption is slower than projected, the net proceeds will decrease.
Conversely, if sales or greater and/or faster, the return to the Commonwealth and TCB will be
greater. Under this development structure, TCB will be foregoing upside profit opportunity in
exchange for being able to operate on a cost reimbursement basis.
J "
l
I �
I
]Financial Model
The financial model that follows assumes a land development approach to the transaction. It
assumes that Hospital Hill Development Corporation will acquire the site in phases from the
Commonwealth, prepare and subdivide the parcels, and then market and sell sites to end users or
developers. It is TCB's intentions to develop several of the parcels on the site either on its own
or in partnership with others. These include the residential sites as well potentially one or more
multi- tenanted commercial buildings. These transactions are not however reflected in the
financial model.
Income Assumptions
We have had extensive discussions with a number of local commercial and residential brokers
whose experience and expertise in the Northampton real estate market have complemented and
confirmed our research and assumptions. Further, we commissioned Crowley Associates of
Springfield, MA to undertake an independent assessment of the commercial market in order to
-test our underlying assumptions. Crowley's report is summarized in the Master Plan narrative
and is included in the appendices. Based upon this research and analysis we believe that the
following income assumptions can be reasonably achieved and accommodated in the
development.
Residential
Single Family Lot Sales:
These estimated lot prices assume improved lots on roads with all utilities including public
water and sewer will be provided to the property lot line.
• $50,000 average market price for Phase A (2 lots)
• $55,000 average market price for Phase B lots (20 single family home lots)
$60,000 average market price for Phase E lots (20 single family home lot cluster
development)
,�
• $55,000 average market price for small lots in Phase D lots ( 31 single family
home lots)
• $70,000 average market price for large lots in Phase D lots (11 single family
j home
lots)
°=
• � average e $85 000 market rice for "estate" lots in Phase D lots ( 16 single family
p
-
home lots)
}
25% of house lots will be sold at approximately $20,000 below market prices for
low and moderate first time homebuyers.
These estimated lot prices assume improved lots on roads with all utilities including public
water and sewer will be provided to the property lot line.
I�
j 1 Multifamily and Assisted - Living Site Sales:
• $3,000 per approved Multi Family unit — This number is based upon TCB's
historical experience and preliminary analysis of what the multifamily
development could potentially support in terms of land cost within the parameters
of the affordability goals of the development
$12,000 per approved Assisted Living unit — based upon discussions with
assisted - living developers and a preliminary offer received for development
rights.
Commercial
0 $042 per rentable square foot per site for reuse buildings
D $5 per buildable square foot for new construction sites.
I
Based on the Crowley report, we feel that the commercial site sales prices listed above are
reasonable and appropriate for Hospital Hill. In that much of Hospital Hill will be
developed in a manner that is different from traditional business parks (smaller lots, shared
parking areas, dense urban design), we have chosen to price parcel sales based upon
buildable or usable square footage rather than by land acreage. Pricing for reuse buildings
a preservation
has been discounted to reflect the anticipated higher costs involved in renovation and
as compared to new construction.
i Absorption
It is assumed that commercial real estate will be absorbed at an average rate of 30,000 square feet
per year. Single family residential sales are assumed to be absorbed at a rate of 12 unit sales per
year.
Land Development Costs
Environmental Remediation & Demolition
Consistent with TCB's original proposal, the financial plan presumes that the Commonwealth
r �
I�
r�
it
will take responsibility for the abatement of all hazardous materials on the site including
buildings which will be renovated as well as buildings that will be demolished; demolition of all
buildings not slated for reuse; and the environmental remediation and filling of all tunnels. A
priority will be placed on finalizing the list of buildings that are to be reused and the abatement
of hazardous materials in those buildings. As the developer, we expect to work with DCAM in
efforts to satisfy the obligations under its Memorandum of Agreement with the Massachusetts
Historic Commission. However, we are assuming that DCAM will have lead responsibility in
this regard. We have assumed that it will take approximately 21months for the Commonwealth to
complete all of the abatement and demolition work, as well as the remediation and filling of the
tunnels.
Environmental Remediation and Demolition Cost Breakdown
Environmental Remediation
Phase A $ 825,500
Phase B $ 73,840
Phase C $ 447,200
Phase D $ 47,223
Total $ 1,393,763
Building Demolition
$ 252,708
$ 414,531
$ 1,992,232
$ 7,537,745
$10,197,216
(Note: These cost estimates are based upon DCAM Cost Analysis and Building Retention
Program included in Master Plan. If additional buildings need to be demolished, these costs will
rise accordingly.)
On -Site Infrastrticture Assumptions
As we have stated from the outset of this process, this development can not be viable without
public funding for the necessary infrastructure costs. A partnership among the development
entity, the Commonwealth of Massachusetts and the City of Northampton will be essential in
order to identify and secure public resources necessary. This new infrastructure would be a clear
public benefit for the community. The anticipated real estate and income tax revenues which
will be generated as a result of the development will provide a reasonable fiscal return on this
public investment. All roads would be turned over to the Northampton Public Works Department
upon completion.
Potential sources for infrastructure costs include:
• Massachusetts Legislature special appropriation
LJ
;7
1 .1
• Public Works Economic Development Grants (PWED)
• Community Economic Development Action Grants
• US Economic Development Administrative Funds
• ISTEA - Federal Comprehensive Transportation Planning Funds
• Tax Increment Finance - Bond Issuance
On -Site Infrastructure Cost Breakdown:
REQUIRED ON SITE INFRASTRUCTURE BY PHASE
0
Cost Category:
Phase:
A B C D E Total
$200,000
$450,000 $3,396,000
CJ
Infrastructure
Stormwater Retainage
system
Total
$140,000 $329,000 $471,000 $1,806,000 $450,000 $3,196,000
$140,000 " $329,000 $471,000 $471,000
These improvements are the minimum to enable access and utility service to each of the phases.
Additional work may be necessary to access the individual sites to be developed. All road types
described above would be designed to the standards required by the City of Northampton's
Zoning and Subdivision Regulations. Both road types include the following: required ROW
easement and paved road, granite or concrete curbs where appropriate, 15" storm sewer, 8"
sanitary sewer, 12" water main & hydrants, 5' wide concrete sidewalk (one side), underground
utilities (including cable, telephone natural gas, electric and fiber- optic) and landscape
allowance. Further due - diligence determining the condition of existing utilities could result in
cost savings. We have assumed that all existing utilities are to be replaced in this cost estimate
Off -Site Infrastructure Assumptions
Off- site road and infrastructure improvements will be required to support a development of this
size. This $500,000 estimate allows for immediate improvements only. Additional improvements
may be necessary and are not reflected in this estimate. The estimate includes provisions for
signalization, and the construction of the off -site portion of the new access road off of route 10.
It is assumed that the developer will not be responsible for any off -site infrastructure costs, and
that all such costs will be publicly funded.
Beyond Environmental Remediation, Building Demolition and Infrastructure costs, there are
three (3) main additional land development cost categories: All Phases Costs, Parcel Specific
Costs and Financing Costs.
i
All Phases Costs
The All Phases cost includes those costs that related to the overall development including master
planning, market research, developer staff and overhead, marketing, taxes and insurance, and
maintenance. All phases costs estimate assumes a phased development period over the first five
years of the project.
Master Planning
$ 150,000
Survey and Engineering
250,000
Historic Consultant
30,000
Appraisal
20,000
Market Studies
20,000
Title Search
20,000
Legal
150,000
Taxes & Insurance
250,000
Developer Staff & Overhead
9Q0,000
Marketing, Promotion & Signage
250,000
Maintenance & Security
140,000
Contingency (10 %)
218,000
Total $ 2,398,000
Note: This All Phases Costs estimate assumes a phased development over a period of years. It is
assumed that all developer staff and overhead costs after five (5) years would be carried by
individual parcel transactions.
Parcel Specific Costs
Parcel Specific costs are costs necessary to develop the individual land sites including Survey,
Environmental Consulting, Site Engineering, Brokerage Fees, Appraisals, Market Studies, Legal,
and Developer Staff and Overhead.
Survey/Environmental/
Site Engineering $ 280,000
Brokerage 493,259
Appraisal/Market Study 33,500
Legal 295,000
Developer Staff & Overhead 680,000
Contingency (10 %) 178,176
Total $ 1,959,935
Financinfz Cost and Land Development Loan
A land development loan will be needed during the first six (6) years of the development
period. The maximum draw on this loan is projected to be approximately $1.4 million.
Financing Costs consist of interest on a land development loan bearing 10% interest, financing
fees of 2 points, and an interest reserve based on 30% of loan interest costs.
Interest Costs
$ 487,111
Financing Costs (2 %)
28,453
Interest Reserve
146,133
Total $ 661,696
h
I i
,
l_ l
J
i
i_ I
�II
'J
U,
I �
f
Total Sources and Uses of Funds
Sources of Funds
Land Sales Revenue
Environmental Remediation
Public Investment
Building Demolition
Public Investment
Infrastructure Public Investment
(On -Site and Off -Site)
Total Sources of Funds
Uses of Funds
Environmental Remediation
Building Demolition
Infrastructure
All Phases Costs
Parcel Specific Costs
Financing Costs
Total Uses
Total Net Proceeds Available
Acquisition Price
Incentive fees to be shared
By DCAM and TCB
$ 8,220,984
$ 1,393,763
$10,197,216
$ 3,896.000
$23,707,963
$ 1,393, 763
$10,197,216
$ 3,896,000
$ 2,398,000
$ 1,959,935
$ 661,696
$20,506,610
$ 3,201,353
$2,500,000
$701,353
7!
NORTHAMPTON STATE HOSPITAL 27- Jul -99
T11E COMMUNITY BUILDERS
MODEL: DCAM Receives 20 % -51% of Any Site Sale Revenue as Partial Acquistion Payment up to Maximum of $2,500,000.
Then 511 Sharing of Any Net Revenues Between DCAM and TCB.
Ll
C
SUMMARY OF LAND DEVELOPMENT '
A - Laundry F 71 Unit
PowerPian ntal, 75 D -Single
• Bldgs., Unit C - Memorial Family lots,
Office Light isted'Mix E - 20 Single Complex: 36 unit
Industrial ad Use Family Lots Mixed Use Rental, Mixe
Sites r 2 Commercial, Commercial Use
home lots 20 single Commercial
family
ommercial Building Square Footage (Existing or buildable) ,
USES OF FUNDS
ENVIRONMENTAL REMEDIATION 1,393,763 825,500 73,840 0 447 47,223
BUILDING DEMOLITION 10,197,216 252,708 414,531 0 1,992,232 7,537,745
ON -SITE INFRASTRUCTURE COSTS 3,196,000 140,000 329,000 450,000 471,000 1,806,000
OFF SITE INFRASTRUCTURE COSTS & storm detention 700,000 50,000 50,000 500,000 100,000
LAND DEVELOPMENT COSTS
All Phases Costs (allocated per phase in proportion to projected sales revenue) 2,398,000 207,102 563,842 320,862 243,563 1,062,631
Master Planning 150,000 12,955 35,270 20,071 15,235 66,470
Survey/Enviromental Consultant/Site Engineering 250,000 21,591 58,783 33,451 25,392 110,783
Historic Consultant 30,000 2,591 7,054 4,014 3,047 13,294
Appraisal 20,000 1,727 4,703 2,676 2,031 8,863
Market Studies 20,000 1,727 4,703 2,676 2,031 8,863
Title Search 20,000 1,727 4,703 2,676 2,031 8,863
Legal 150,000 12,955 35,270 20,071 15,235 66,470
Taxes & Insurance 250,000 21,591 58,783 33,451 25,392 110,783
Staff and Overhead 900,000 77,72 211,617 120,424 91,412 398,819
Marketing, Promotion, Signage 250,000 21,591 58,783 33,451 25,392 110,783
Maintenance and Security 140,000 12,091 32,918 18,733 14,220 62,039
Contingency
218,000 18,827 51,258 29,169 22,142 96,603
Parcel Specific Costs 1,959,935 162,988 262,875 264,841 403,197 866,035
Survey /EnviromentalConsultant/Site Engineering 280,000 30,000 30,000 40,000 50,000 130,000
Brokerage/Marketing 493,259 42,600 115,980 66,000 50,100 218,579
Appraisal/Market Study 33,500 5,000 5,000 5,000 5,000 13,500
Legal 295,000 20,000 20,000 30,000 80,000 145,000
Staff and Overhead 680,000 50,000 50,000 100,000 200,000 280,000
Contingency
178,176 15,388 41,895 23,841 18,097 78,956
Financing Costs 661,696 101,669 105,902 103,019 156,837 166,555
Interest Cost 487,111 69,985 69,985 69,985 124,720 124,720
Fees and Closing Costs 28,453 2,457 6,690 3,807 2,890 12,608
Interest Reserve (@30% of Interest Cost) 146,133 29,227 29,227 29,227 29,227 29,227
OJ AL LISE$ 0 � ,, DS .. 0 6' 0 � '` . ? 8 8
SOURCES OF FUNDS
LAND SALES REVENUE 8,220,984 710,000 1,933,000 1,100,000 835,000 3,642,984
INFRASTRUCTURE PUBLIC INVESTMENT (on -site & off -site &MEPA) 3,896,000 190,000 379,000 450,000 971,000 1,906,000
ENVIRONMENTAL REMEDIATION PUBLIC INVESTMENT 1,393,763 825,500 73,840 0 447,200 47,223
BUILDING DEMOLITION PUBLIC INVESTEMENT 1 10,197,2161 252,708 414 01 1 992 232 7537745
7®, ° . ,QURGE$ OU,I?$
_ 037;965 19x78 U$ Z;SUQ;3 X550 ObQ 4 1 1 4 0 7 1 3
NET Sources over Uses ' ' ' ' ' '
Land purchase cost -DCAM 2,500,000 215,911 587,825 334,510 253,923 1,107,831
Net Revenues 701,353 22,330 412,557 76,769 (222,520) 439,932
ii
i ��
NET Sources over Uses ' ' ' ' ' '
Land purchase cost -DCAM 2,500,000 215,911 587,825 334,510 253,923 1,107,831
Net Revenues 701,353 22,330 412,557 76,769 (222,520) 439,932
ii
i ��
nma
swo�
�+y+ N
O= cj =
M to O
N r O
00
QLLM x O
r
r-I
01
U
N f0
O
M
O
M
'i x y'v
O Gf .-
N
h
N
O
et
O
E
v
t
•2pXE
r-
M
0
V
y
o
0
0
0
= J
CD
Inn
N E
co
W L-
X
LO
o
v
oo
ti
M
W)
o
o
r+
r
to
= G'
en
r
Ile
M
riz O d
0b0
ti fA
m� ) ON
U
w ++
00
O
00
N
O
d y J r
in
r
N
f6 N a 7
� v E
o
N
C
N
J +�
Q a �Nt
O
ON
tn
ti
M
00
7
M
F
z
rn
W w
o
H
H v
* -A W c
rj) k
0 . z F
Z �4 U
C) U
0 z
W �
z a
� � a
� O R
F+
W W t
� A
z U E
W A M-
0
n
I
�J
l _J
i�
J
f
�I
I
NORTHAMPTON STATE HOSPITA PRQJE_ ECHEDIJLE_ND _CASHFL_0
THE COMMUNITY BUILDERS
Moo anoa 4n9a tr»nnn wn ?nno at'»nnn
TOTAL
01- Jan -99
01- Apr -99
01- Jul -99
01- Oct -99
01 -Jan -2000
01- Apr -2000
01 -Jul -2000
USES
BUDGET
Mt�
x 0 7t1n99�
00.Sap9Q�
0.ecu P30
Iviar2000
0 12re?a2.s
ENVIRONMENTAL REMEDIATION
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
825,500
0
0
0
0
412,750
412,750
0
B -71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
73,840
0
0
0
0
0
73,840
0
E- 20 Single Family Lots
0
0
0
0
0
0
0
0
C- Memorial Complex: Mixed Use Commercial
447,200
0
0
0
0
0
0
0
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
47,223
0
0
0
0
0
0
0
1,393,763
BUILDING DEMOLITION
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
252,708
0
0
0
0
126,354
126,354
0
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
414,531
0
0
0
0
0
207,266
207,266
E- 20 Single Family Lots
0
0
0
0
0
0
0
0
C- Memorial Complex: Mixed Use Commercial
1,992,232
U
0
0
0
0
0
0
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
7,537,745
0
0
0
0
0
0
0
10,197,216
INFRASTRUCTURE COSTS
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
140,000
0
0
0
0
70,000
70,000
0
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
329,000
0
0
0
0
164,500
164,500
0
E- 20 Single Family Lots
450,000
0
0
0
0
0
0
0
C- Memorial Complex: Mixed Use Commercial
471,000
0
0
0
0
0
0
0
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
1,806,000
0
0
0
0
0
0
0
OFF SITE INFRASTRUCTURE COSTS & storm detention
700,000
0
0
0
0
50,000
50,000
250,000
3,196,000
ALL PHASES COST
Master Planning
150,000
0
50,000
50,000
50,000
Survey/Enviromental Consultant/Site Engineering
250,000
25,000
25,000
200,000
0
Historic Consultant
30,000
5,000
10,000
10,000
5,000
Appraisal
20,000
20,000
Market Studies
20,000
10,000
10,000
Title Search -
20,000
10,000
10,000
Legal
150,000
25,000
25,000
50,000
50,000
Taxes & Insurance
250,000
35,714
35,714
35,714
Staff and Overhead
900,000
170,000
10,000
10,000
10,000
41,250
41,250
41,250
Marketing, Promotion, Signage
250,000
25,000
25,000
25,000
25,000
12,500
Maintenance and Security
140,000
3,500
2,500
3,500
Contingency
218,000
4,449
4,449
4,449
4,449
4,449
4,449
4,449
2,398,000
PARCEL SPECIFIC DEVELOPMENT COSTS
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
162,988
40,747
40,747
5,093
5,093
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
262,875
65,719
65,719
10,953
10,953
E - 20 Single Family Lots
264,841
0
0
66,210
C - Memorial Complex: Mixed Use Commercial
403,197
0
0
0
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
866,035
Land purchase cost - DCAM
2,500,000
0
159,000
0
1,959,935
FINANCING COSTS
Interest
487,111
0
0
0
0
15,938
25,810
22,269
Fees & Closing Costs
28,453
0
28,453
Deferred Developer Fee\Interest Coverage (30% of Interest)
146,133
TOTAL LAND DEVELOPMENT COSTS
23,006,610
229,449
134,4491
389,449
260,915
1,084,373
1,414,480
659,205
SOURCES
LAND SALES
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
710,000
0
75,000
0
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
1,933,000
0
720,000
0
E - 20 Single Family Lots
1,100,000
0
0
0
C - Memorial Complex: Mixed Use Commercial
835,000
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
3,642,984
8,220,984
ENVIRONMENTAL REMEDIATION PUBLIC INVESTMENT
1,393,763
0
0
0
0
412,750
486,590
0
BUILDING DEMOLITION PUBLIC INVESTEMENT
10,197,216
0
0
0
0
126,354
333,620
207,266
EQUITY
229,449
134,449
389,449
260,915
(1,014,262
INFRASTRUCTURE PUBLIC INVESTMENT (on -site & off-site &MEP
3,896,000
0
0
0
0
284,500
284,500
250,000
LAND LOAN
1,801,220
0
0
0
0
1,275,031
0
201,939
LAND LOAN REPAYMENT
(1,801,220
) 0
0
0
0
0
(485,230)
0
23
229
134
389,4491
260
L 1 084 373.
1 414 480
659 205
TOTAL SOURCES
701,353
0
0
0 0
0
0
0
Balance of Sources Over Uses
OT
01
01 01
01
0
0
Cumulative Balance
MAXIMUM LOAN AMOUNT B RROWE
1,275,031
0
0 0 0 0 0 1,275,031 789,801
BEGINNING LAND LOAN BALANCE
Loan Drawdown
0 0 0 0 1,275,031 0 201,939
Interest - Accrual only at 10% Quarterly
0 0 0 0 15 25 0 22 269
Interest Payment
0 0 0 0 (15,938) (25,810) (22,269)
Loan Principal Paydowns
0 0 0 0 0 (485,230) 0
ENDING LAND LOAN BALANCE
0 0 0 0 0 1 789 801 991,740
n
I
L- I
Fj
D i
D
n
L.J
D
D
n I
D
D
D
D
D
D
D
� J
l
�J
NORTHAMPTON STATE HOSPITAL
THE COMMUNITY BUILDERS
- Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
• 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
-20 Single Family Lots
- Memorial Complex: Mixed Use Commercial
- Single Family lots, 36 unit Rental, Mixed Use Commercial
1,393,763
UILDING DEMOLITION
- Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
20 Single Family Lots
Memorial Complex: Mixed Use Commercial
- Single Family lots, 36 unit Rental, Mixed Use Commercial
10,197,216
4FRASTRUCTURE COSTS
.- Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots 140,000
71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family 329,000
20 Single Family Lots 450,000
- Memorial Complex: Mixed Use Commercial 471,000
1 - Single Family lots, 36 unit Rental, Mixed Use Commercial 1,806,000
)FF SITE INFRASTRUCTURE COSTS & storm detention 700,000
3,196,000
tLL PHASES COST
Master Planning 150,000
Survey/Enviromental Consultant/Site Engineering 250,000
Historic Consultant 30,000
Appraisal 20,000
Market Studies 20,000
Title Search - 20,000
Legal 150,000
Taxes & Insurance 250,000
Staff and Overhead 900,000
Marketing, Promotion, Signage 250,000
Maintenance and Security 140,000
Contingency 218.000
2,398,000
PARCEL SPECIFIC DEVELOPMENT COSTS
4 - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lot. 162,988
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family 262,875
E - 20 Single Family Lots 264.841
Memorial Complex: Mixed Use Commercial 403,197
D - Single Family lots, 36 unit Rental, Mixed Use Commercial 866,035
Land purchase cost- DCAM 2,500,000
1,959,935
487,111
28,453
146,133
FINANCING COSTS
Interest
Fees & Closing Costs
Deferred Developer FeeUnterest Coverage (30% of Interest)
TOTAL LAND DEVELOPMENT COSTS
PROJEC2SCI[EDU1E. AND _CASIiELJ01L
4Q2000 1Q2001 2Q2001 3Q2001 4Q2001 1Q2002
n 1 - nrt - 7000 10 ] _11_2001 1 01 - Aor - 2001 I 01 - Jul - 2001 I Ol Oct - 2001 I 01 - Jan - 2002
BUDGET „30
- Dees, 2000'{
JOMaz. 2, 001Jun00;
1.
30 ,�"- Se2W,)i''
0
=200
R- °ltin;2,0�02N�
825,500
0
0
0
0
0
0
0
73,840
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
447,200
223,600
223,600
0
0
0
0
0
47,223-
47,223
0
0
0
0
0
0
252,708
0
0
0
0
0
0
0
414,531
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,992,232
996,116
996,116
0
0
0
0
0
7,537,745
1,884,436
1,884,436
1,884,436
1,884,436
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
225,000
225,000
0
0
0
0
0
0
0
0
0
0
100,000
0
0
0
0
0
0
0
0
250,000
100,000
0
0
0
0
0
35,714
35,714
35,714
35,714
0
0
0
41,250
41,250
41,250
41,250
41,250
21,250
21,250
12,500
12,500
12,500
12,500
12,500
12,500
12,500
3,500
4,500
4,500
5,500
5,500
6,500
6,500
4,449
4,449
4,449
4,449
4,449
4,449
4,449
5,093
5,093
5,093
5,093
5,093
5,093
5,093
10,953
10,953
10,953
10,953
10,953
10,953
10,953
66,210
22,070
22,070
22,070
22,070
22,070
22,070
0
0
0
0
100,799
100,799
5,600
69,000
33,000
125,000
0
33,000
0
0
75,600
33,000
50,000
0
54,000
11,000
23,888
23,331
165,000
24,036
165,000
0
22,615
21,994
55,000
23,035
23,771
0
0
0
8,220,984
ENVIRONMENTAL REMEDIATION PUBLIC INVESTMENT
BUILDING DEMOLITION PUBLIC INVESTEMENT
0
270,823
2,880,552
A - Laundry & PowerPlant Bldgs„ Office/Light Industrial Sites & 2 home lots
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
710,000
1,933,000
125,000
0
0
0
0
0
0
213,000
0
50,000
0
0
0
E- 20 Single Family Lots
C - Memorial Complex: Mixed Use Commercial
1,100,000
835,000
220,000
165,000
165,000
165,000
0
165,000
165,000
55,000
55,000
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
3,642,984
8,220,984
ENVIRONMENTAL REMEDIATION PUBLIC INVESTMENT
BUILDING DEMOLITION PUBLIC INVESTEMENT
1,393,763
10,197,216
270,823
2,880,552
223,600
2,880,552
0
1,884,436
0
1,884,436
0
0
0
0
0
0
EQUITY
INFRASTRUCTURE PUBLIC INVESTMENT (on -site & off -site &MEP
LANDLOAN
, LAND LOAN REPAYMENT
TOTAL SOURCES
Balance of Sources Over Uses
Cumulative Balance
3,896,000
1,801,220
(1,801,220
475,000
0
) (72,442
325,000
27,861
01
0
28,566
0
0
0
(142,255
0
92,609
0
100,000
0
(9,350A
0
68,186
0
23.707.963
3898
3 622 013
2
2 120 181
257 609
360 650
123 186
701,353
0 0
0
0 0
0
0
01 0
0
01 01
0
0
MAXIMUM LOAN AMOUNT BORROWED
1,275,031
BEGINNING LAND LOAN BALANCE
0
991,740 919,298 947,159 975,724 833,469 926,078 916,728
Loan Drawdown
Interest - Accrual only at 10% Quarterly
Interest Payment
___ o_.__.....t ._ ..A_.
:,:,,,.::,,,,,,,,,._
0 27,861 28,566 0 92,609 0 68,186
23,888 23,331 24,036 22,615 21,994 23,035 23,771
24 036 22 615 21 994 23 035
(23.888) (23,331) ( ) ( ) ( ) ( ) (23,771)
0
.. (72 4421 0 0 (142,255) 0 (9,35) _
' NORTIIANIPTON STATE HOSPITAL
THE COMMUNITY BUILDERS
I-J
i
I
I,
L_
I
L.J
t_J
C
l� J
I'_= ,ECT SCHE DULIi"LCA SII FLOW
vnonm HIM?
-
TOTAL
01 -Jul -2002
01- Oct -2002
2003
2004
2005
2006
2007
USES
BUDGET
0� �eP"
.. .:_'.
..... -.�
.. ... . ......
. ....... t.
:.a
ENVIRONMENTAL REMEDIATION
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots_
825,500
0
0
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
73,840
0
0
E - 20 Single Family Lots
0
0
0
C- Memorial Complex: Mixed Use Commercial
447,200
0
0
0
0
0
0
0
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
47,223
0
0
0
1,393,763
BUILDING DEMOLITION
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
252,708
0
0
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
414,531
0
0
E - 20 Single Family Lots
0
0
0
C- Memorial Complex: Mixed Use Commercial
1,992,232
0
0
0
0
0
0
0
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
7,537,745
0
0
0
0
0
0
0
10,197,216
INFRASTRUCTURE COSTS
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
140,000
0
0
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
329,000
0
0
E - 20 Single Family Lots
450,000
0
0
C - Memorial Complex: Mixed Use Commercial
471,000
0
0
371,000
0
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
1,806,000
0
0
1,806,000
OFF SITE INFRASTRUCTURE COSTS & storm detention
700,000
0
0
0
0
0
0
0
3,196,000
ALL PHASES COST
Master Planning
150,000
Survey/Enviromental Consultant/Site Engineering
250,000
Historic Consultant
30,000
Appraisal
20,000
'
Market Studies
20,000
Title Search
20 ,E
Legal
150,000
Taxes & Insurance
250,000
0
0
0
0
0
0
0
Staff and Overhead
900,000
21,250
21,250
85,000
50,000
Marketing, Promotion, Signage
250,000
12,500
12,500
25,000
0
0
0
0
Maintenance and Security
140,000
5,500
5,500
21,500
18,000
13,000
11,500
8,500
Contingency
218,000
4,449
4,449
17,796
17,796
17,796
17,796
17,796
2,398,000
PARCEL SPECIFIC DEVELOPMENT COSTS
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
162,988
5,093
5,093
20,374
5,093
0
0
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
262,875
10,953
10,953
10,953
E - 20 Single Family Lots
264,841
C - Memorial Complex: Mixed Use Commercial
403,197
5,600
5,600
22,400
22,400
22,400
22,400
22,400
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
866,035
0
0
0
476,319
57,736
Landpurchasecost - DCAM
2,500,000
52,000
40,000
150,000
203,875
165,475
429,102
409,722
1,959,935
FINANCING COSTS
Interest
487,111
23,129
20,710
79,469
66,329
22,220
0
0
Fees & Closing Costs -
28,453
Deferred Developer FeeUnterest Coverage (30% of Interest)
146,133
0
0
0
0
0
TOTAL LAND DEVELOPMENT COSTS
23,006,610
140,474
126,056
2,609 ,492
383,493
240,891
957,117
516,153
SOURCES
LAND SALES
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home lots
710,000
60,000
0
150,000
70,000
0
0
.0
B_ 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single family
1,933,000
200,000
200,000
600,000
0
0
0
0
E- 20 Single Family Lots
1,100,000
0
0
0
0
0
0
C - Memorial Complex: Mixed Use Commercial
835,000
0
110,000
96,000
110,000
72,000
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
3,642,984
0
839,376
731,376
731,376
731,376
8,220,984
ENVIRONMENTAL REMEDIATION PUBLIC INVESTMENT
1,393,763
0
0
0
BUILDING DEMOLITION PUBLIC INVESTEMENT
10,197,216
0
0
0
0
EQUITY
INFRASTRUCTURE PUBLIC INVESTMENT (on -site & of( site &MEP
3,896,000
0
0
2,177,000
0
0
LAND LOAN
1,801,220
0
0
0
107,029
0
0
0
LAND LOAN REPAYMENT
(1,801,220
(119,526
(73,944)
(317,508
(266,592
(508,688
0
0
23 707
140
126
2,609,4921
859,8121
318 688
841
803 376
TOTAL SOURCES
701,353
0
0
0
476,319
77,797
(115,741)
287,223
Balance of Sources Over Uses
0
0
0
476,3191
554
438
725 598
Cumulative Balance
MAXIMUM LOAN AMOUNT BORROWED
1,275,031
0
984,914 865,388 791,444 409,478 191,093 0 0
BEGINNING LAND LOAN BALANCE
Loan Drawdown
0 0 0 107 0 0 0
Interest - Accrual only at 10% Quarterly
23,129 20,710 15,012 7,507 2,389 0 0
Interest Payment
(23,129) (20,710) (79,469) (66,329) (22,220) 0 0
Loan Principal Paydowns
...,,0.
(119, (73,944) (317,508) (266,592) (508,688) 0 0
ENDING LAND LOAN BALANCE
865,388 791,444 409 191 0 0 0
r�
.. i NORTII IMPTON STATE HOSPITAL PRO1 Cf S DULEANILCASI Y
THE COMMUNITY BUILDERS
TOTAL
2008
2009
2010
2011
2012
2013
2014
2015 1
TOTAL
USES
BUDGET ':w�i'i
s. `�S r.�"�P?
,. 4x`d ° x. 34Y'
*- a'.9:.s`i
ej .. s
mro'
"- ,4:: . +i'4:
n'"ti ti.„
A"0.�'4,
ENVIRONMENTAL REMEDIATION
J
Ll
0
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home I
825,500
825,500
B- 71 Unit Rental, 75 Unit Assisted,Mixcd Use Commercial, 20 single fami
73,840
73.840
E - 20 Single Family Lots
0
0
C- Memorial Complex: Mixed Use Commercial
447,200
0
0
0
0
0
0
0
0
447,200
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
47,223
47
1,393,763
0
BUILDING DEMOLITION
-
0
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home 1
252,708
252,708
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single fami
414,531
414,531
E - 20 Single Family Lots
0
0
C- Memorial Complex: Mixed Use Commercial
1,992,232
0
0
0
0
0
0
0
0
1,992,232
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
7,537,745
0
0
0
0
0
0
0
0
7,537,745
10,197,216
0
INFRASTRUCTURE COSTS
0
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home 1
140,000
140,000
B- 71 Unit Rental, 75 Unit Assisted,Mixcd Use Commercial, 20 single fami
329,000
329,000
E- 20 Single Family Lots
450,000
450,000
C - Memorial Complex: Mixed Use Commercial
471,000
471,000
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
1,806,000
1,806,000
0
OFF SITE INFRASTRUCTURE COSTS & storm detention
700,000
0
0
0
0
0
0
0
0
700,000
3,196,000
0
ALL PHASES COST
0
Master Planning
150,000
150,000
Survey/Envimmental Consultant/Site Engineering
250,000
250,000
Historic Consultant
30,000
30,000
Appraisal
20,000
20,000
Market Studies
20,000
20,000
Title Search
20,000
20,000
Lem,
150,000
150,000
Tares & Insurance
250,000
0
0
0
0
0
0
0
0
250,000
Staff and Overhead
900,000
750,000
Marketing, Promotion, Signage
250,000
0
0
0
0
0
0
0
0
250,000
Maintenance and Security
140,000
5,500
4,000
1,000
140,000
Contingency
218,000
17,796
17,796
17,796
4,449
0
0
0
0
218,000
2,398,000
0
PARCEL SPECIFIC DEVELOPMENT COSTS
0
A - Laundry & Po%vcrPlant Bldgs., Office/Light Industrial Sites & 2 home 1
162,988
162,988
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single fami
262,875
262,875
E - 20 Single Family Lots
264,841
264,841
C- Memorial Complex: Mixed Use Commercial
403,197
22,400
22,400
22,400
5,600
403,197
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
866,035
57,736
57,736
173,207
28,868
14,434
866,035
Land purchase cost - DCAM
2,500,000
347,555
61,200
61,200
40,800
71,471
2,500,000
1,959,935
0
FINANCING COSTS
0
Interest
487,111
0
0
438,545
Fees & Closing Costs
28,453
28,453
Deferred Developer FeeUnterest Coverage (30% of Interest)
146,133
146,133
146,133
0
0
0
0
0
0
0
TOTAL LAND DEVELOPMENT COSTS
22,808,044
23,006,610
450,986
163,131
275,603
225,850
85,905
0
0
0
SOURCES
0
LAND SALES
A - Laundry & PowerPlant Bldgs., Office/Light Industrial Sites & 2 home 1
710,000
0
0
0
0
180,000
0
0
0
710,000
B- 71 Unit Rental, 75 Unit Assisted,Mixed Use Commercial, 20 single farm
1,933,000
0
0
0
0
0
0
0
0
1,933,000
E- 20 Single Family Lots
1,100,000
0
0
0
0
0
0
0
0
1,100,000
C - Memorial Complex: Mixed Use Commercial
835,000
72,000
120,000
120,000
80,000
0
0
0
0
835,000
D - Single Family lots, 36 unit Rental, Mixed Use Commercial
'
3,642,984
609,480
.0
0
0
0
0
0
0
3,642,984
8,220,984
0
ENVIRONMENTAL REMEDIATION PUBLIC INVESTMENT
1,393,763
1,393,763
BUILDING DEMOLITION PUBLIC INVESTEMENT
10,197,216
10,197,216
EQUITY
INFRASTRUCTURE PUBLIC INVESTMENT (on -site & off -site &M
3,896,000
3,896,000
LAND LOAN
1,801,220
0
0
0
0 0
0
0 0
1,801,220
LAND LOAN REPAYMENT
(1,801,220
0
0
0
0 0
0
0
0 (1,995,536
23,707,963
681,4801
120 000
120 000
80 000
180 000
0
0
0 23 513.646
TOTAL SOURCES
D,
9
3 (14
0
Balance of Sources Over Uses
1 936,UY21
912 960
757 358
611.5081
705,6031
705,6031
705,6031
705,603
Cumulative Balance
- MAXIMUM
LOAN AMOUNT UORROWE
BEGINNING LAND LOAN BALANCE
1.275,031
01 0 0 0 0 0 0 0 0
Loan Drawdown
0 0 0 0 0 0 0 0
0 0 0 0 0 0
Interest- Accrual only at 10% Quarterly
0 0
Interest Payment
0 0 0 0 0 0 0 0
Loan Princi al Pa downs
X.
0 0 0 0 0 0 0 0
ENDING LAND LOAN BALANCE
0 0 0 0 0 0 0 0
a
o
0
12W
o
J
J
Ll
!i
n
I�
A
o
o
—
3
d
t•1
b
>
�
n
c
n
c
ce
c
n
c
2
3 z
N
0 0 0
3
c_
N d d
2
A 3 �
N
O
A
O
°
A
O
O
°O
O
H
°
aF_
0 0 0
Rio _
N
S
O O W
O
W
•,�.'
m
c
m
Iw
m
�
N
�
J °
X
O O W
O
w
'��'• —
N
�
O
N
�
O So
N
O
O
:,vyNx9y r+
�E
° o o
O
N
T
s
°
I
O
O O N
iLL
I
O
C)
0
I
N
o D
W
O CO
2 o
A �
O
C O
,n Z
y
0
m
z
.i
D
r
i
1
f
I wj
o
?
S
o
,
c
c
H
d
C
A
<
<
ry
<
C
A
<
<
G
3 z
N N O
o o
Ot
W
N
O
N
°
0 0 0
O O O
d F 5
3
�
5
fR S w
N
z
3
W
N — N
0
;a N p
<
u
m
m
° m
w
_
o
w
°
O
`�
°
o
A
< m
m
A
p
O
(O
�
A
O
O
O
°
O
O
O
O
O
C N
A
4A
° o
v
v
of N
O
W
N
r
w _
m O N
w
O)
H
V
-4
J
^ N
W _
m O N
W
T
N
¢
Ufa
N
v
N
A
W
m O N
H
m
_
N
N
t0
0 0 0
O
0
o
ap
0
e
0 0
0
0
O O O
�o
fr
O O O
O O O
NE
8
C0
a'h
r
� o
a
O O O
4 $aa
U
O O O
N D
O W
O O
T
_ ,D N
O =�
C O
O z
C
m
z
n
r
1
I �
J
q
J
L I
9t
L
I
O D
W
°o O
iq
-i
C
G) Z
m
i
I
v
T
�
v
z
3
d
n
�
0
3
3
0
3
3
0
3
3
0
g
B
0
3
A
0
3
3
0
3
3
8
3
3
m
a
a
a 3
a
y
y
y
H
N
m
x
N
� W
°i
a
M
m v
°
a
CD
'O
<
< D O
O
O
p
O
O
O
p n
O
N
3 r
C p
(D
z
< z
m
rn
p
N
p
N
N
O
H
O
O:p
}xO? p
y+'x
C
$eci`
0 0
O
Rs
O
O
O O
,fit °o
O O
�C O
fir, e_
0 O
O O
fn
O
pp ))
0
0 0
\ a N
O O
O
O
O
O "n2NR3r
S �. N
O O
rr�
O
r
O
O O
O O
O
p
O
O
'p
O
O D
W
°o O
iq
-i
C
G) Z
m
i
I
- I
0
J
�I
o
o W
o to
- O
o
i
CO
Z
n
j0 m
�
m
m
A
n
a
r
d
�
n
3
g
3
3
3
3
n
3
3
3
B
3
m
B
m
3
3
3
3
=
a
a
a
a
"a
u
1
m
x
N
3
— m
� G
c
Q
m �
e +f
m
N N
0
N
v S +,
C T
D
N o
°
0
0
°
O
� r
c o
A
A
N
O
< 5
C
N
O
O
(W11
N
O
O
O
O
O
O
O
O
O
N
O W
O O
O O
O
O
O
N
O
O
O
0
O
A
0
O
�
t° W
110
w
E
�4: a
N
0
O O
O O
O O
�
O O
O O
O O
O
O
O
O
O
O
�
O
O
O
O
O
O
o
V w
O O
N
O O
N O
O 0
O O
O
O
0
O
v
N
0
O
w
a
0
O
N
w
"�e9$'q
0
O O
O
0
Aq
0
0 0
0
0
�+
Y �o
o A
p
a
o
0 0
0 0
O
0
°
0
x
O O
O O
O
O)
O
O
O O
O O
�
O
O
O �
O 3t,�r?q,4
O O
b
N O
fn
0
O
O O
O
O
y1fi,„s,
O O
O
O
o
o W
o to
- O
o
i
CO
Z
n
j0 m
�
m
m
A
n
a
r
I�
IJ
4
m
0
Cl)
'U
C:
CD
z
m
Cl)
CO
- 0
;u
;K