Feasibility Study of Mixed Use Project by ynt45324

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									                                    Table of Contents
    I.      Executive Summary

    II.     The Need

    III.    Study Process

    IV.     Project Scope

    V.      Feasibility Study Team

    VI.     Existing Information Review

    VII.    Concept Options

    VIII.   Titcomb Street Options

    IX.     Green Street Options

    X.      Preferred Option

    XI.     Implementing a Public-Private Project

    XII.    Conclusion

    Appendix A – Project Images – Preferred Option

    Appendix B – Floor plans – Preferred Option

    Appendix C – Construction Cost Estimate – Preferred Option

    Appendix D – Financial Summary (Sources and Uses)

    Appendix E – Alternative Floor plan: Underground Level at Green Street Site

    Appendix F – Alternative Floor plans: Titcomb Street Site




2                           Newburyport Parking Garage and Mixed-Use Feasibility Study
I.       Executive Summary


In January of 2005, the City of Newburyport retained Dore and Whittier Architects and a team of consultants
to develop a Comprehensive Feasibility Study for a New Structured Parking Facility to be located at one of
two potential site locations in the City – Titcomb Street and Green Street. The objective of the Study was to
review these locations that have been examined previously and to develop concept designs and pricing in
order to determine a preferred option. The Study also includes a mixed-use component concept at both
locations that can be sold to a private developer as part of the project as a way to reduce the overall cost of
development to the City. For purposes of this study, “mixed-use” is defined as retail and residential space.


Newburyport’s Strategic Development Plan and Master Plan both discuss the need to develop a parking
facility if the proposed expansion of the waterfront area is to be realized. If the waterfront park expansion
plan moves forward there will be an expected loss of 100-150 parking spaces that will need to be replaced
in order to maintain the status quo. Approximately 200 spaces will remain in the Waterfront Park with 50
spaces located in the waterfront west lot and the other 150 spaces located in the NRA east lot. As part of
this report, several different options were reviewed taking into consideration:


         garage configuration and efficiency;
         design (scale, aesthetics, height, massing);
         the number of parking spaces created;
         the potential for mixed-use application;
         proximity to retail districts;
         the feasibility of construction;
         cost;
         impacts on view corridors;
         proximity to abutting uses and structures;
         impact on existing parking supply; and
         vehicular and pedestrian access and circulation.


Over the course of the study, the Study Team and representatives of the City reviewed eight (8) options and
the consensus is that the Green Street location is preferable to Titcomb Street. Of the six (6) Green Street
options developed, the Preferred Option is conceived as a 578-space 4-level garage – Ground level plus
three (3) upper levels with third level parking on the roof deck. The garage would be wrapped on the east



3                                 Newburyport Parking Garage and Mixed-Use Feasibility Study
and west ends by an attractive 3½-story retail/residential mixed-use building designed in keeping with the
downtown. The first floor would be dedicated retail space and the upper floors are expected to be
residential owner-occupied flats. As currently conceived, an 8,000-12,000 sf downtown community center
could be located on the upper floors at the east end of the project adjacent to the Inn Street mall.


The Study also includes an outline for potential public-private partnership structures that the City could
implement to help to reduce the overall cost of the project. This, when coupled with potential funding from
the Commonwealth, shows that a structured parking facility in downtown Newburyport is economically
feasible and consistent with the planning objectives of the City.




II.      The Need

The City of Newburyport enjoys a vibrant, open and accessible waterfront area that provides a scenic
backdrop to a bustling retail shopping district bounded on the North by the Merrimac River; on the South by
Harris Street; on the West by Route 1; and on the East by Federal Street. Initiated in the City’s 1965 Urban
Renewal Plan, the long-term redevelopment plan for the central waterfront lots controlled by the NRA was to
clear these properties of historic buildings and provide off-street parking as an interim use. Both the 2001
Master Plan and the 2001 Central Waterfront Feasibility Study recommend conversion of the Newburyport
Redevelopment Authority (NRA) lots to public open space. The Master Plan recommends creating
additional parking facilities in order to replace spaces removed from the NRA lots and to provide for growth
in the downtown. As a result, the City, in conjunction with the NRA, plan to enhance the NRA waterfront
parking lots and develop these lots into a larger waterfront park. According to the Central Waterfront
Feasibility Study, the net effect of this development will reduce the present number of parking spaces that
are located at this location to approximately 100-150. Currently these parking lots are primarily used for
long-term parking for employees within the downtown area. The loss of these parking spaces on the
waterfront, coupled with continued growth in Newburyport’s downtown, demand that a viable solution be
developed prior to the removal of these spaces. The most practical solution to accommodate the need for
parking is to develop a structured parking facility in the immediate downtown area.




4                               Newburyport Parking Garage and Mixed-Use Feasibility Study
                                                                                               Aerial Photo Downtown Newburyport



As illustrated in figure 6.1, the proposed waterfront park is estimated to cost approximately $2.3 million to
design and construct and will include portions of both the NRA west and east lots. The images are not
considered designs for the anticipated waterfront park, but conceptual examples of various ways to integrate
park components that the public may desire, such as landscaped open lawn spaces, pedestrian walkways,
a visitor center, a playground, a spray pool/skating pond, etc. The actual extent and design of the new
waterfront park will depend on the available capital and operational funding as well as the public design
process. The park design will need to integrate and strengthen the linkage between the proposed
waterfront developments on both sides of the Waterfront Mixed Use District as well as the proposed mixed-
use space within the municipal parking project and continued redevelopment along upper State Street and
the downtown business district.




Figure 6.1




5                                 Newburyport Parking Garage and Mixed-Use Feasibility Study
                                            Source: Bluestone Planning Group/ Dore and Whittier Architects, Inc.


The City has recently completed a zoning ordinance change that establishes an overlay district in the area
bounded by the Merrimack River to the North; Merrimac Street to the South; Route 1 to the West; and
Green Street extension to the East. The Waterfront West Overlay District (WWOD) provides certain zoning
enhancements that help to foster prudent development in this district while maintaining public access and
visual corridors to the waterfront. The WWOD encourages potential developers to consider commercial
mixed-use applications that will help to maintain the vital character of Newburyport’s current downtown
setting by integrating retail, office and residential land uses. This growth, if realized, will also increase the
demand for additional parking and the WWOD has factored this into the zoning requirements with
requirements for all off-street parking demand to be met within the overlay district without the use of
municipal or the NRA lots.




6                                Newburyport Parking Garage and Mixed-Use Feasibility Study
The area encompassed by the WWOD is prime real estate and will most likely be developed over time and
hence significantly expand the downtown area. Coupled with the decreased number of parking spaces at
the NRA parking lots, this expansion outside the WWOD along Merrimac Street will drive the need for
additional parking spaces in the downtown business district. Redevelopment of vacant and underutilized
buildings along Prince Place and upper State Street will add additional off-street parking demand in the
downtown. The recent passage of the Intermodal Transportation Improvement Fund will also help defray
the costs associated with constructing a municipal parking facility by requiring a special permit from the City
for non-residential use of the parking structure through payment of a $5000 fee to the City.




III.     Study Process


The City of Newburyport issued a Request for Qualifications for consultants in January 2005 to develop a
Comprehensive Feasibility Study for a new structured parking facility to potentially be located at one of two
locations (Titcomb Street and Green Street) being considered by the City. One of the City’s goals was to
integrate a new structured parking facility with a commercial mixed-use component that would not only help
to offset the cost of a new parking garage, but would also help to integrate the project into the Newburyport
cityscape. Dore and Whittier Architects and a team of well-qualified consultants (the Study Team) was
selected to perform the Feasibility Study. A kickoff meeting was held between the Study Team and
representatives of the City of Newburyport to confirm the objectives outlined in the Request for
Qualifications and to help define related issues not available in the RFQ. Over the course of the Study, the
Study Team and the City met numerous times refining various options and the assumptions inherent
therein. The process was iterative in that as certain concepts were presented, representatives of the City
had the opportunity to provide feedback into the design of concept options and their associated costs. Over
the study period, eight (8) different options for a new parking garage to serve the downtown area at two
different locations were considered. These options are presented in greater detail later in this report.


IV.      Project Scope

The project scope was to evaluate the feasibility of developing a multi-story parking structure at a Titcomb
Street or Green Street location (see figure 11.1) and to provide the City with a recommendation for the
preferred option and location. The Study Team considered the feasibility of a public-private partnership
such that a mixed-use application would be part of the overall garage project and would potentially reduce
the City’s cost of building a new parking garage. A review of existing information was conducted including



7                               Newburyport Parking Garage and Mixed-Use Feasibility Study
the City’s Master Plan, waterfront plans, and previous parking studies to better understand the need for the
proposed project. The project scope included the development of concept options for both locations
including, site plans, floor plans, elevations, cost estimates, development budgets and alternative financing
structures that would show the net cost back to the City required to finance the proposed project. Elevations
and renderings of the project were also to be developed to provide an understanding of the relationship
between the proposed project and the downtown streetscape. The Study Team was also requested to
investigate the possibility of integrating a community center into the options being reviewed as part of the
Study.


V.        Feasibility Study Team

The Study Team is comprised of nine (9) consulting firms each with significant experience and expertise in
their respective fields.
      •   Dore and Whittier Architects Inc.                 Architects ▪ Project Managers
      •   LeMessurier Consultants Inc.                      Structural Engineering
      •   Antrim Management, LLC                            Parking Planning Consultant
      •   Byrne McKinney & Associates, Inc.                 Financial Consultant
      •   The Parking Network                               Parking Facility Consultant
      •   Daylor Consulting Group, Inc.                     Site & Civil Consultant
      •   Vanasse & Associates, Inc.                        Transportation Consultant
      •   Carol R. Johnson Associates                       Landscape Architects
      •   Garcia, Galuska & DeSousa                         MEP Consulting
VI.       Existing Information Review

Over the years, the City has had numerous studies and reports prepared by various consultants that show
the evolution of the traffic, parking and development trends in the City. As part of the process, the Study
Team reviewed a number of studies, reports and comprehensive plans that were provided by the City in an
effort to evaluate information germane to the parking study. Five documents in particular were helpful while
developing the Parking Feasibility Study: the City of Newburyport Structured Parking Study – Phase II
(dated June 2002 – prepared by Miller, Dyer Spears Inc.); the Downtown Parking Planning Study (dated
April 11, 2005 – prepared by Traffic Solutions, LLC; the Newburyport Master Plan (dated September 2001 –
prepared by Taintor & Associates); the Newburyport Waterfront Strategic Plan (dated December 2003 –
prepared by Goody, Clancy & Associates) and the Newburyport Central Waterfront Feasability Study (dated
December 2001 – prepared by the Bluestone Planning Group).



8                               Newburyport Parking Garage and Mixed-Use Feasibility Study
The Phase II Structured Parking Study (the MDS Study) identified many of the basic assumptions related to
the development of a new parking garage located at the Titcomb Street site. In our review of the report, we
found the underlying assumptions to be reasonably accurate. The MDS Study recommended the Titcomb
Street location as the preferred location for a number of reasons as described in the cover letter of their
report. The conclusion that was reached in the MDS Study was that a parking garage was feasible at the
Titcomb Street site, and that such a facility could accommodate 350 +/- new parking spaces at a cost of
approximately $37,000/space including the cost of land acquisition at this location.


The Downtown Parking Planning Study looked at the feasibility of a paid parking plan including a new
parking garage for the City of Newburyport. Much of the information reported in the Parking Planning Study
is beyond the scope of our review, however it does provide insight into the notion that revenue from a paid
parking program is realistic. The Downtown Parking Planning Study also provides information regarding the
utilization factor of the different long and short-term parking lots and on-street parking that helps to define
the parking demand in the City. The daytime utilization factors in the surface parking lots are relatively high
especially at the Green Street and NRA west-lot locations. As noted in previous studies, we feel that the
high utilization rate at Green Street is related to the “convenience factor” associated with this location.


The Newburyport Central Waterfront Feasibility Study and the Waterfront Strategic Plan integrate the goals
and objectives of the Newburyport Master Plan into complementary documents that provide a
comprehensive plan for the downtown waterfront district. We found these studies especially useful in that
they provide a good perspective of the planning objectives of the City and their direct relationship to
developing an overall parking management plan. Since these plans were originally developed in 2001 and
2003, respectively, some of the objectives have been met and/or further refined by recent planning and
capital projects. These plans continue to be valid today. As noted in the Master Plan as a High Priority
project, “the most important land use challenge facing the City is the downtown waterfront and its
relationship to the business district.” This relationship between the waterfront and the downtown business
district is critical to continuing the vitality and growth in the City. As development both public and private
continue in the future, the need to establish a stable and effective plan for parking has been recognized as
perhaps the most important aspect for continued growth. In summary, if the City’s plan to develop the NRA
parcels into a larger waterfront park are to be successful, a plan for creating a new parking facility to
accommodate the attendant loss of parking spaces at these locations must be developed.




9                                Newburyport Parking Garage and Mixed-Use Feasibility Study
The Study Team also met with various City Departments, local interest groups and adjacent property
owners to solicit input on some of the preliminary concept design options. Based on these discussions, no
issues were presented that would make either the Titcomb Street or Green Street locations infeasible.
Although the Titcomb Street location creates additional access issues for the Police Department, both the
Police and Fire Chiefs were interviewed to obtain their perspectives from an overall public safety point of
view and either location was determined to be feasible. Site utilities are available at both locations and are
not problematic when utility plans were reviewed.




10                              Newburyport Parking Garage and Mixed-Use Feasibility Study
VII.     Concept Options


The primary objective of this study was to determine the best location for a new structured parking facility at
two sites: Titcomb Street or Green Street. Other sites were considered in previous studies, however the
scope of this study was to investigate and compare these two locations.
                                                                                                                      Figure 11.1




        Green Street Location                      Titcomb Street Location                   Newburyport Downtown Business District




These locations have been considered previously under different studies, most recently in the MDS Phase II
Study. The scope of this study is to investigate potential design options at both locations, develop cost
information, re-evaluate previously prepared information, develop a preliminary financial model and finally to
consider possible alternative financing structures using a public-private partnership.




11                              Newburyport Parking Garage and Mixed-Use Feasibility Study
Eight (8) different options were considered, two (2) options were considered at Titcomb Street, and six (6)
options were considered at Green Street. The basic parameters and operating assumptions used to
compare the two options are as follows:


Site:
-    The Titcomb Street site is comprised of the following land parcels: Titcomb Street parcel 1-7; Titcomb
     Street parcel 9-11; and 49-57 Merrimac Street. These properties are the same properties included the
     MDS study.
-    The Green Street site is comprised of the existing Green Street surface parking lot and the ingress and
     egress thereto. The Green Street site also includes an easement that provides access to the Merrimac
     Landing underground parking.


Construction Costs:
-    Titcomb Street parking facility construction costs and land acquisition costs were taken from the MDS
     Study and used as a per/space cost for this study and were escalated at 5%/year to current year
     dollars.
-    The Green Street parking facility construction costs were developed based on the proposed design.
-    Construction cost estimates were prepared for Green Street and were compared to similar projects in
     the marketplace. A $1,750 per/space base allowance for building façade treatment is included in the
     Green Street option and was based on a $1 million allowance in the preferred option. (It was assumed
     that some form of façade treatment cost was included in the MDS Study).
-    No geotechnical or environmental review was conducted at either location and therefore no allowances
     have been made for unsuitable soils and/or materials, or environmental remediation.
-    An industry standard 10% contingency (for concept design level review) is applied to the construction
     cost estimate.


Financial:
-    Assumes a developer contribution based on the estimated land sale cost including permits
-    Estimated $375/sf sale price assumption for retail/residential based on market comps
-    Soft Cost assumption based on industry standard for concept design level non-construction costs (i.e.,
     design fees, legal, geotechnical, operational testing, project management, etc.)
-    Debt Service reserve estimated at 3 years of average annual debt service for unexpected
     circumstances




12                              Newburyport Parking Garage and Mixed-Use Feasibility Study
-    Operating costs are based on the recently prepared Parking Study prepared by Traffic Solutions LLC




Number of Parking Spaces:
-    The number of parking spaces in each particular option is determined by the footprint of the buildable
     site, the garage design and the number of parking levels in each scenario. The number of new spaces
     required is determined based on the projected lost spaces at the NRA lots and new growth.


Mixed-Use:
-    Once the garage footprint and parking demand was defined, the remaining site would be optimized with
     a mixed-use component to be built by a private developer to offset garage capital expenses incurred by
     the City.


State Grant:
-    A&F Chapter 205 Section 103 as amended by Chapter 245 Section 12. A grant or contribution from the
     Department of Administration and Finance is assumed to be $5 million.


Community Center:
If the City opts to locate a 12,000 SF Community Center within the project, an additional 40 parking spaces
would be required under the Off-Street Parking Requirements listed in Section VII of the Zoning Ordinance.
Understanding that additional parking demand would be expected at the facility, the City can evaluate
whether reserved spaces or parking discounts for users are preferred. Note that the inclusion of the
Community Center would require the City to purchase the floor space on the same estimated cost basis of
the residential units that it would displace. Using the estimated cost basis for residential units this figure is
estimated at $3.2 million.


Zoning Requirements:
         The addition of some new mixed-use space within the parking structure project would entail some
         new parking demand. The Zoning Ordinance requires new off-street parking spaces for all
         residential uses (without the use of municipal lots) and for all non-residential uses more than 300
         feet from a municipal parking lot. Section VIIA of the Zoning Ordinance provides a special permit
         process for all non-residential uses within 500 of the municipal parking structure to petition the City
         Council for a special permit for use of the municipal parking structure provided a $5000 per space




13                               Newburyport Parking Garage and Mixed-Use Feasibility Study
         fee is paid to off-set the construction and maintenance costs of the facility. In the proposed plan, it
         is assumed that between 75-95 spaces will be required for the proposed commercial space (retail
         and office uses) and approximately 1.5 deeded parking spaces per unit (for a total of 47 spaces)
         are assumed for the proposed residential uses.


VIII.    Titcomb Street Options


The Study Team reviewed the Titcomb Street option presented in the Phase II MDS Study and also
developed two additional options based on different designs. Due to site constraints at this location,
flexibility in developing the design of the garage is limited. Many of the assumptions used in the previous
study are used (revised to include price escalation where appropriate) as part of this study as well. While
we agree with many of the basic underlying assumptions used to develop a parking garage at Titcomb
Street in the previous study, on balance, we do not agree that this location is preferred. From a pure design
perspective the site is constrained and the project will be more difficult to construct. The limited amount of
laydown and staging area would require that off-site locations be used for this purpose. The design of a
combined mixed-use facility and parking garage at this location does not lend itself to an open parking
structure that is preferable from a cost perspective. For example, by meeting the standard for an open
garage structure, it would not be necessary to mechanically ventilate and sprinkler the garage, as would be
the case if it were deemed a public (or enclosed) garage as defined in the building code. Additionally, life-
cycle costs associated with an enclosed garage are expected to be higher based on additional lighting and
security requirements. Only limited additional development opportunity beyond the garage itself is available
and therefore it would not afford as significant an offset to the cost of the garage if a public-private
partnership were to be implemented as compared to the Green Street location. While still centrally located
within the City’s downtown area, we note that this location will require greater travel time to reach existing
retail areas. We also note that the parcels required to build the garage at this location are not owned by the
City, and would be subject to negotiation or eminent domain proceedings.




14                               Newburyport Parking Garage and Mixed-Use Feasibility Study
The two new design options considered four-level (Ground + 3) and five-level (Underground + Ground + 3)
designs that would accommodate approximately 300 and 375 spaces, respectively. Both these options are
feasible and would afford a mixed-use opportunity of 35,000 sf +/- that would be located on both Titcomb
and Merrimac Streets. As part of the review process, the feasibility of integrating a community center into
the proposed project was investigated and determined to be feasible.


                       Titcomb Street – Alternative 7                  Cost /Space ($2005)
                        Construction Cost                              $32,200
                        Soft Costs                                         6,400
                        Short-Term Capitalized Interest                    3,900
                        Land Acquisition Cost                              7,400
                        Total Cost per Space ($2005)                   $49,900




XI.      Green Street Options


Six (6) options at the Green Street location were reviewed and compared based on:
         garage configuration and efficiency;
         design (scale, aesthetics, height, massing);
         the number of parking spaces created;
         the potential for mixed-use application;
         proximity to retail districts;
         the feasibility of construction;
         cost;
         impacts on view corridors;
         proximity to abutting uses and structures;
         impact on existing parking supply; and
         vehicular and pedestrian access and circulation.


The site is currently owned by the City and used as mid-term (3-hour) surface parking lot. The Green Street
lot maintains the highest utilization rate in the City (mid-day peak occupancy rate of 99% according to a
parking study prepared for the City in 1998). Given its close proximity to both the Central Business District




15                                Newburyport Parking Garage and Mixed-Use Feasibility Study
(CBD) and the waterfront it appears to be more strategically located than the Titcomb Street site. The site is
large and has access from Merrimac Street, Green Street and Unicorn Street. The site is traversed by an
east-to-west easement that runs with the Merrimac Landing parcel in order to maintain access to the sub-
grade parking for the building. The Green Street location allows for a more cost-effective design both in
terms of layout and the ability to maintain an “open” garage designation for at-grade and above-grade levels
consistent with the building code. This is an important design factor when considering the overall
functionality and cost of the proposed garage.


The Green Street location also offers considerably more opportunity for a mixed-use development to help
fund the public project. The Green Street design concept would be to wrap the parking garage with a
mixed-use building on the east and west ends of the project. Both the east and west portions of project
would include mixed-use buildings that would accommodate retail space on the first level and residential
units on the upper levels. The parking garage will be designed to blend with the current architecture in the
downtown area and will include an articulated brick veneer treatment to tie in the new retail areas with the
pedestrian corridors.


Perhaps the most important design attribute of this concept is that the garage itself would be less visible
from the east and west view corridors and would afford the opportunity to integrate this project into the
Newburyport cityscape. Not only does this improve the overall architectural appearance of the project, but it
also serves to reduce the cost of the façade treatment that the garage would otherwise be forced to absorb.
Including a mixed-use building at this location would be consistent with the use prior to the creation of the
Green Street parking lot and would also be consistent with the adjacent building types and setbacks from
the street. The additional build-out opportunity provides a significant potential offset to the net cost of
constructing the project and also helps to extend the historic downtown fabric.


The south side of the garage would have landscaped pedestrian corridor to connect Green Street and
Unicorn Street with the Inn Street Mall area and the north side of the project would include a wide
landscaped pedestrian corridor connecting the two retail areas at both ends of the project (see site plan in
Appendix A).


One drawback of the Green Street site is the fact that approximately 200 heavily utilized parking spaces in
the existing surface parking lot would be unavailable during the building project’s construction, which could
be 12 months or more. While this is a significant issue, we believe that it can be addressed through an




16                               Newburyport Parking Garage and Mixed-Use Feasibility Study
appropriate phasing plan and do not believe that the anticipated disruption outweighs all of the other
financial and locational benefits discussed in this study. The best option to provide the displaced parking
spaces as near as possible to Green Street during the construction period is to more efficiently use the
Waterfront Trust and NRA lots that lie directly across the street. Basically, the City and its quasi-public
partners that control the waterfront lots should capitalize on the existing conditions at the NRA East lot,
which has been documented to be usually no more than half full at peak summer utilization.


The closest and best substitute for the Green Street lot is the combined Waterfront Trust and NRA West lot.
Since these two lots are primarily used for all day parking by commuters, we recommend that the Green
Street lot’s existing 3-hour time limit be set and enforced on these lots as part of the displacement plan, so
that commuters are encouraged to park all day at the underutilized NRA East lot. In addition, a more
efficient striping and parking stall plan in the NRA lots will provide approximately 10% more parking
capacity. We strongly recommend that no fees be charged for parking on any of these lots during the
construction period, which could otherwise discourage users. In summary, the combination of a more
efficient parking lay-out and then full utilization of the existing space on the waterfront, plus appropriate
signage and appropriate enforcement of the 3-hour time restriction on the west, will provide the 200 spaces
displaced temporarily at Green Street.


If parking demand exceeds supply or the City opts to implement the Off-Street Paid Parking System in
advance of construction of the parking facility, a fall-back option might include leasing supplementary
parking space from private landowners in the downtown area. Another fall-back option might include
negotiating with the MBTA to potentially implement the plans that have been discussed for event parking in
terms of establishing a free (subsidized) and efficient shuttle system that would take people back and forth
from the MBTA commuter rail station parking lots. Whichever approach or combination of approaches is
used by the City, there is a viable solution to the problem of parking displacement that will continue to
support visitors and other users of the downtown.




17                               Newburyport Parking Garage and Mixed-Use Feasibility Study
Upon review of the various options developed for Green Street, each option was consistently more cost
effective when compared to a parking garage located at the Titcomb Street site. The ability to institute a
significantly more cost-effective design and the higher level of private contribution that can be made as a
result of the larger mixed-use development are key components of the lower overall net cost of the
proposed facility. The project costs of the various options for both Green Street and Titcomb Street are
provided in detail in Appendix D.


                      Green Street – Preferred Option                   Cost /Space ($2005)
                       Construction Cost                             $17,400
                       Soft Costs                                        3,300
                       Short Term Capitalized Interest                   900
                       Land Acquisition Cost                                   0
                       Total Cost/Space ($2005)                      $21,600




IX.      Preferred Option


Over the course of the study, the Study Team and representatives of the City reviewed eight (8) options and
the consensus is that the Green Street location is preferable to Titcomb Street. Of the six (6) Green Street
options developed, the Preferred Option is conceived as a 578-space 4-level garage – Ground level plus
three (3) upper levels with third level parking on the roof deck. The garage would be wrapped on the east
and west ends by an attractive 3½-story retail/residential mixed-use building designed in keeping with the
downtown. The first floor would be dedicated retail space and the upper floors are expected to be
residential owner-occupied flats. As currently conceived, an 8,000-12,000 sf downtown community center
could be located on the upper floors at the east end of the project adjacent to the Inn Street mall.


The total project cost of the Preferred Option (public parking garage portion) is estimated to be
approximately $12.6 million of which $8.3 million is contemplated to be funded by the Commonwealth and
the City selling land to private developers for development of the mixed use component of the project. The
remaining $4.3 million would need to be funded by the City through a general obligation bond issuance.
However, to a large extent the debt service and operating expenses incurred by the City as a result of the




18                              Newburyport Parking Garage and Mixed-Use Feasibility Study
new parking garage are estimated to be offset by the additional tax revenue resulting from the mixed use-
project. Approximately 80% of the costs are estimated to be covered by the increased tax revenue with the
remaining 20% to be funded by an alternative means.


XI.      Public-Private Partnership Structure
Both locations consider the potential for implementing a public-private partnership whereby the City would
effectively sell a parcel of land with the required permits to a potential developer. The developer, in turn,
would pay the City an amount for the right to develop the parcel consistent with a set of parameters outlined
by the City (i.e., building type, size, etc.) and as a result, lower the net cost back to the City required to
develop a parking garage. The basic tenet is that the City would own and operate the parking garage and
the private developer would own the mixed-use component.


An economic model was developed to estimate what a private developer would theoretically be willing to
pay for the right to develop the land. The economic model assumes that the developer would be willing to
pay the City the surplus amount in excess of its cost and profit margin. Simply put, if the developer could
develop the project for $8 and needed to make a $2 profit, the total cost would be $10. If the development
company could sell this property for $15 based on market rates, then it would have $5 left over to pay the
City to purchase the land. The City could solicit proposals from multiple developers through a developer
competition to ensure that all of its objectives are met.


There are many possible ways to implement a public-private arrangement and each party will have different
requirements that will need to be addressed in order to make it a successful proposition. The proposed
project while basically divided into two components still retains many common elements. For example, the
buildings will be physically connected and will share common components (i.e., stairs, corridors, party walls,
etc.). Moreover, in order to optimize the construction and minimize disruption, it would be preferable to have
the projects constructed simultaneously, or at a minimum, use a consolidated construction schedule. It
would also be more efficient and preferable to have one contractor construct both projects rather than
having two projects and two contractors on the same site at the same time. As currently envisioned, public
funding from the Commonwealth and the City are necessary to develop the parking garage portion of this
project that will make this portion of the project subject to public bidding laws. Recent reforms under
Chapter 193 have modified the previous “low-bid” approach to a certain extent but a competitive process is
still required. A private developer is not bound by the same laws and regulations as public entity and
therefore does not need to go through a competitive bidding process.




19                               Newburyport Parking Garage and Mixed-Use Feasibility Study
There appear to be two basic approaches to implementing this particular project. The first approach would
be to have one entity build both the garage and mixed-use project and then sell the appropriate building
back to the other party. This approach is feasible but has its drawbacks. For example, if the City were to
build both components the overall bonding amount of the project would be significantly higher as compared
to just a parking garage because it would need to finance the mixed-use component in addition to the
parking garage. The absolute cost could be lower because of the lower cost of funds that City has access
to in the bonding markets but it may be outweighed by the political reality of trying to garner support for a
much larger project. There is also a considerable cost and complexity associated with developing the
documentation that goes along with this type of structure and it can become burdensome in very short
order. The developer could build the entire project and then have the City acquire the parking garage once
it is completed there are also pros and cons not the least of which is that the developers cost of capital is
higher than the City’s. The developer will also have concerns that will need to be addressed in the
documentation process to ensure that its interests are met as well.


A different tactic would be to approach the development of the projects somewhat separately so that each
party can proceed with the development of their respective projects more or less independently. Certain
basic agreements will need to be made from the outset and at certain pre-determined points in the
development process; the parties will need reaffirm their understanding of how the two parts will “fit”
together. Because the public entity will be required to pre-qualify contractors as part of the bidding process,
the private developer will know what contractors will be in the running for the public portion of the project
and could approach that group to construct the private portion of the project. The preferred result would
occur when there are two discrete projects and one contractor building both projects. Another requirement
of the recent changes in the Construction Reform Act requires that a project manager be retained by the city
as part of the process to help the city administer the project and to ensure the project is properly managed.


These approaches are being considered in an attempt to balance: 1) the primary financial objective of the
City – to lower the cost of the project; 2) site and construction limitations; 3) financial considerations of both
parties; and 4) the overall duration of the project. In order for this process to be successful it will require
that both parties work cooperatively and communicate effectively during the entire process. These
examples are possible alternatives and the final structure will need to be negotiated between the City and
developer as part of the development process.




20                               Newburyport Parking Garage and Mixed-Use Feasibility Study
Implementation Plan Steps
1. Develop Project Design
2. Start Land Disposition Process
3. Private Partner Selection Process
4. Public Sector Construction Bidding Process
5. Private Sector Construction Selection Process
6. Final Public/Private Negotiation
7. Construction


XII.       Conclusion


Upon review of the existing information provided by the City in conjunction with this study and previous
related studies prepared by other consultants, it is clear that a solution to the projected loss of long-term
parking at the NRA lots is required. A structured parking facility in the form of a multi-level garage with a
retail/residential mixed-use component offers a feasible, functional and economically-sound solution to
Newburyport’s parking needs.


Many aspects were reviewed as part of this report including, but not limited to:
       •   Design efficacy;
       •   Site constraints;
       •   Proximity to the proposed waterfront park and retail areas;
       •   Lower net development costs;
       •   Ability to integrate the project with an activate neighborhood streetscape;
       •   Potential to incorporate a downtown community center;
       •   Accessibility.


A project at either location represents a significant undertaking both in terms of cost and the disruption
associated with construction. The estimated schedule to construct the proposed project is 12 months for the
parking garage and 18 months for the mixed-use buildings. The construction of a new parking garage
facility in Newburyport has been identified in many previous studies as being critically important to the
continued successful growth in the downtown area and if this project is implemented, it will provide a long-
term solution for Newburyport’s parking needs well into the foreseeable future.




21                                Newburyport Parking Garage and Mixed-Use Feasibility Study
While both locations represent feasible locations to develop a parking garage facility, the conclusion
reached in this study is that the preferred option of a 4-level (G+3) parking garage located at the Green
Street location presents itself as the most attractive option when compared to all other options considered.




22                              Newburyport Parking Garage and Mixed-Use Feasibility Study
                                              Appendix A


                                          Project Images
                      Preferred Option – Green Street




Site Locus Plan – Numbers represent rendering views from different locations




23                                Newburyport Parking Garage and Mixed-Use Feasibility Study
 1. View from Green Street




     2. View from Merrimac Street




24                                  Newburyport Parking Garage and Mixed-Use Feasibility Study
                           3. Alley View




 4. View from Inn Street




25                                         Newburyport Parking Garage and Mixed-Use Feasibility Study
 5. View from Pleasant Street




26                              Newburyport Parking Garage and Mixed-Use Feasibility Study
                      Appendix B


                       Floor Plans
     Preferred Option – Green Street




27        Newburyport Parking Garage and Mixed-Use Feasibility Study
28   Newburyport Parking Garage and Mixed-Use Feasibility Study
29   Newburyport Parking Garage and Mixed-Use Feasibility Study
30   Newburyport Parking Garage and Mixed-Use Feasibility Study
                      Appendix C


                   Cost Estimate
     Preferred Option – Green Street




31        Newburyport Parking Garage and Mixed-Use Feasibility Study
     Newburyport Parking Garage
     Residential = 64,000 SF Retail = 22,000
     Garage = 212,000 SF / 170,000 SF
                                                        SUMMARY SHEET
                                                                                                Estimate     Bonds
     GEN CONDITIONS (Mos x 25K)**                                     12           25,000         $300,000
     DEMOLITION                                                                                         $0
     SITEWORK                                                                                     $204,900
     CONCRETE                                                                                     $479,250
FS   MASONRY                                                                                      $300,000     $5,500
     STRUCTURAL STEEL                                                                           $5,300,000
FS   MISC. METALS                                                                                 $192,000     $3,880
     CARPENTRY                                                                                     $20,000
FS   CAULK / DAMPROOFING                                                                           $10,000      $250
FS   ROOFING (EDPM / Shingle )                                                                          $0        $0
FS   WINDOWS / CURTAINWALL                                                                              $0        $0
FS   GLASS & GLAZING                                                                                    $0        $0
     DOORS / HARDWARE                                                                              $15,000
     DRYWALL                                                                                            $0
FS   RESILIENT FLOORING                                                                                 $0           $0
     CARPET                                                                                             $0
FS   CERAMIC TILE                                                                                       $0           $0
FS   ACOUSTIC CEILINGS                                                                                  $0           $0
FS   PAINTING                                                                                           $0           $0

     INTERIOR SPECIALTIES DIV 10                                                                       $0

     EQUIPMENT DIVISION 11                                                                             $0
     EQUIPMENT DIVISION 12                                                                       $250,000
FS   ELEVATOR                                                                                    $125,000      $2,875
FS   FIRE PROTECTION                                                                             $477,000      $8,155
FS   PLUMBING                                                                                    $212,000      $4,180
FS   HVAC                                                                                         $10,000       $250
FS   ELECTRICAL                                                                                  $318,000      $5,770



     LANDSCAPING (Allowance)                                                                     $100,000
     PARKING MACHINES (Allowance)                                                                $350,000



                                                                                              $8,663,150
     DESIGN CONTINGENCY                         10%                                         $   866,315
                                                              10 % O H + P                      $952,947
                                                                                            $10,482,412        74,779
                                                              SUBS / GC BOND                    $105,639
                                                              TOTAL                         $10,588,050
     CONSTRUCTION CONTINGENCY                   10%                                         $ 1,058,805

     TOTAL CONSTRUCTION COST INCL. CONTINGENCY                                              $11,646,855


     TEK Estimating Inc.
     May-05




32                            Newburyport Parking Garage and Mixed-Use Feasibility Study
                 Appendix D


       Financial Summary
      (Sources and Uses)




33   Newburyport Parking Garage and Mixed-Use Feasibility Study
34   Newburyport Parking Garage and Mixed-Use Feasibility Study
35   Newburyport Parking Garage and Mixed-Use Feasibility Study
36   Newburyport Parking Garage and Mixed-Use Feasibility Study
37   Newburyport Parking Garage and Mixed-Use Feasibility Study
                        Appendix E


                         Floor plan
     Underground Level – Green Street




38         Newburyport Parking Garage and Mixed-Use Feasibility Study
39   Newburyport Parking Garage and Mixed-Use Feasibility Study
                  Appendix F


                  Floor plans
             Titcomb Street




40   Newburyport Parking Garage and Mixed-Use Feasibility Study
41   Newburyport Parking Garage and Mixed-Use Feasibility Study
42   Newburyport Parking Garage and Mixed-Use Feasibility Study
43   Newburyport Parking Garage and Mixed-Use Feasibility Study

								
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