2013-01-13 Breaking New Ground Hains Point Redevelopment Economic Impact Study - M.steenhoek Rev1

Breaking New Ground
Measuring the Economic Impact of the Redevelopment of Hains Point
Matthew Steenhoek December 9th, 2012 UAP-5974: Methods Independent Study: Market, Economic Impact, & Fiscal Impact Methods Dr. Terry Holzheimer Rev.1
Breaking New Ground is purely an academic study that does not represent an actual proposal for redevelopment, it has not been reviewed, endorsed, or otherwise approved by any local or federal agency nor should it be viewed in a context outside of an academic study. Among many other things, the redevelopment of Hains Point would require a transfer of ownership from the Federal Government to the District of Columbia, similar to the transfer completed for Poplar Point and a number of other sites through Public Law 109-396, the Federal and District of Columbia Government Real Property Act of 2006. The Researcher knows of no actual proposals for a transfer of this nature, nor any conversations by appropriate parties related to such a transfer. The cost estimate data used is based roughly on existing pricing and trends in the Washington DC regional market as well as other national benchmarks, and the tax impact analysis has not been reviewed or assisted by a tax professional, nor has it been reviewed by any local agency with taxing authority. The tax and economic impact metrics and approach used were referenced from several recent major redevelopment projects in the District, including the Southwest Waterfront, O Street Market, and Saint Elizabeths East Campus, but include the Researchers projections and assumptions. Matthew Steenhoek Masters Candidate - Urban and Regional Planning Virginia Polytechnic Institute December 9th, 2012
Table of Contents
Table of Contents ........................................................................................................................................................... i Table of Figures ............................................................................................................................................................. ii MARKET & ECONOMIC IMPACT STUDY ......................................................................................................................... 1 A. I. II. III. B. I. II. III. IV. Market Study & Development Program Analysis ............................................................................................. 1 Program Description .................................................................................................................................... 4 Public Infrastructure Program and Costs ..................................................................................................... 6 Private Development Program and Costs ............................................................................................... 9 Economic Impact Summary of Hains Point..................................................................................................... 18 Total Direct Annual Tax Revenue ............................................................................................................... 18 Employment ............................................................................................................................................... 20 Public Infrastructure Funding and Management ................................................................................... 21 Conclusion.............................................................................................................................................. 25
Hains Point Breaking New Ground by the numbers: .......................................................................................... 26 Works Cited ................................................................................................................................................................. 27 Appendix ...................................................................................................................................................................... 30 Appendix A: Development Site Analysis.................................................................................................................. 31 Appendix B: Project Cost Estimate .......................................................................................................................... 32 Appendix C: Residential Program Summary............................................................................................................ 33 Appendix D: Economic Impact Summary ................................................................................................................ 34 Appendix E: Annual Direct DC Tax Revenue by Use ................................................................................................ 35 Appendix F: Retail Annual Direct DC Tax Revenue ............................................................................................... 36 Appendix G: Office Annual Direct DC Tax Revenue .............................................................................................. 37 Appendix H: Hotel - Annual Direct DC Tax Revenue ............................................................................................... 38 Appendix I: Condominium (Market Rate) Annual Direct DC Tax Revenue ........................................................... 39 Appendix J: Condominium (Affordable) Annual Direct DC Tax Revenue ............................................................. 40 Appendix K: Apartment (Market Rate) Annual Direct DC Tax Revenue ............................................................... 41 Appendix L: Apartment (Affordable) Annual Direct DC Tax Revenue .................................................................. 42 Appendix M: Parking Annual Direct DC Tax Revenue .......................................................................................... 43 Appendix N: Business Improvement Fee Generation ............................................................................................. 44 Appendix O: 30 Year Debt Service and Tax Revenue Calculation ........................................................................... 45 Appendix P: Investment and Tax Revenue Timeline 2040-2050 ............................................................................. 46
Table of Figures
Figure 1: Hains Point / East Potomac Park (Source: Google Maps) ............................................................................... 1 Figure 2 : District 2040 Development Supply and Demand Projections ........................................................................ 3 Figure 3: Primary Redevelopment Site Boundaries (Source: Google Maps) N.T.S. ....................................................... 4 Figure 4: Approximate equivalent area of Primary Redevelopment Site (Source: Google Maps) N.T.S. ...................... 5 Figure 5: Proposed Redevelopment Program (8.0 FAR) ................................................................................................ 9 Figure 6: Residential Redevelopment Type and Affordability Summary ..................................................................... 10 Figure 7: Residential Unit Size and Type Distribution Summary ................................................................................. 10 Figure 8: Office Supply and Demand Projections ........................................................................................................ 12 Figure 9: Projected Hotel Mix and Distribution ........................................................................................................... 14 Figure 10: Residential Parking Ratio Assumptions ...................................................................................................... 17 Figure 11: Annual Direct Tax Summary ....................................................................................................................... 18 Figure 12: Cumulative District Tax Revenue 2040-2070 ($2012) ................................................................................ 19 Figure 13: Construction Employment Calculation ....................................................................................................... 20 Figure 14: Public Infrastructure Bond Debt Service Calculation .................................................................................. 21 Figure 15: TIF Annual Debt Service 2040-2070, with 10-year Build Out ..................................................................... 22 Figure 16: Cumulative Debt Service and Real Estate Tax Revenue 2040-2070 ........................................................... 22 Figure 17: Existing Business Improvement District Comparison ................................................................................. 24
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MARKET & ECONOMIC IMPACT STUDY

A. Market Study & Development Program Analysis
Hains Point, officially known as East Potomac Park, is a 395 acre park in southwest Washington, DC. It is located between the Potomac River and the Washington Channel and is under the jurisdiction of the National Park Service, see Figure 1 below.
Figure 1: Hains Point / East Potomac Park (Source: Google Maps)
Hains Point is currently home to a number of National Capital Park Service and U.S. Park Police buildings, extensive surface parking lots, a golf course and driving range, an Olympic sized swimming pool, picnicking and fishing areas, and other vehicular and pedestrian infrastructure. It is located to the south of the Tidal Basin and Jefferson Memorial, west of the Washington Channel and the Southwest Waterfront neighborhood, and east of the Potomac River and National Airport. The northern edge of Hains Point is defined by the highway infrastructure of the Case Bridge and 14th Street Bridge. Virginia Rail Express (VRE) and WMATAs Yellow line tracks emerge from their below-grade tunnels in its northwest corner and continue across the Potomac to Virginia.
The Economic Impact portion of this report focus on the potential tax generation and job growth that would result from the concept development program to be further described below. This development program responds to the supply needs identified in the Researchers study District 2040: Building Towards a Sustainable DC and can serve as a baseline for future discussion and further evaluation.
District 2040 provided an analysis of growth targets identified through the Sustainable DC initiative and the Mayors Five-Year Economic Development strategy. The Sustainable DC initiative set a goal of adding 250,000 new residents to the District of Columbia over the next twenty years, and the Mayors Five-Year Economic Development strategy identified an ambitious plan to create 100,000 new jobs over the next five years. These aspirational goals, as well as trends related to tourism growth, retail level of service, demographic and household composition changes, and cultural, entertainment, and open space demands were reviewed against the pipeline of known projects out to the year 2040.
By 2040, the District was projected to grow to over one million residents, add more than 250,000 new households, offer approximately 280,000 new job opportunities, have tourism demand for 53,000 hotel rooms, and retail demand for an additional 16,000,000 square feet. While more than 150,000,000 square feet of redevelopment is
currently identified, a significant gap still remains between the development pipeline and the Districts development potential. See Figure 2 : District 2040 Development Supply and Demand Projections for additional
Summary Supply and Demand Projections Year: 2040 Projected Supply Projected Demand Residential Units 373,000 518,000 Office Squarefeet 57,844,000 63,666,000 Hotel Units 9,000 25,000 Retail Squarefeet 9,254,000 16,694,000 Museum/Entertainment Squarefeet 2,714,000 3,714,000
Source : Researcher's Projections
Delta (146,000) (5,822,000) (16,000) (7,441,000) (1,000,000)
information regarding the projected supply and demand imbalance. Figure 2 : District 2040 Development Supply and Demand Projections
I.
Program Description
The primary proposed redevelopment site would be located immediately south of 14th Street and Case Bridge infrastructure and extend to the existing surface parking lots. This creates a primary redevelopment site of approximately 142 acres, 35% of the total site area. For reference, this is roughly the size of the area in Downtown between 15th and 17th Streets NW and between Pennsylvania Avenue/Lafayette Square and O Streets NW, see Figure 2 and Figure 3 below.
Figure 3: Primary Redevelopment Site Boundaries (Source: Google Maps) N.T.S.
Figure 4: Approximate equivalent area of Primary Redevelopment Site (Source: Google Maps) N.T.S.
Of this primary site area, more than 75 acres would be dedicated for parks, open spaces, or streetscape and sidewalk improvements, including 18 acres of waterfront park space along the bulkhead on either side of the development parcels and a 14 acre central public space that divides the primary redevelopment site longitudinally. The resulting 65.6 acres would be available for redevelopment at an average FAR of 8.0. This development intensity provides for the opportunity for 22.8 million square feet of development. Across the 395 acres of Hains Point, this represents an FAR of 1.3 and provides opportunities for the redevelopment of almost 330 acres of parks and open space, more than 83% of the total site area. See Appendix A: Development Site Analysis for more information.
II.
Public Infrastructure Program and Costs
Significant public investment would be necessary to allow for this level of development intensity. This investment primarily falls into four categories: parks/open spaces/recreation, entertainment/culture, utilities/structural infrastructure, and transportation network. These investments, with soft costs and contingency 1, are estimated at a value of $2.7 billion dollars, see Appendix B: Project Cost Estimate for further detail. Parks / Open Spaces / Recreation - $460.7 million o o o o Perimeter Parks - $23.4 million Center Green Park - $28.1 million Recreation Parks, Fields, and Structures - $323.4 million Streets, Sidewalks, and Bicycle Network - $85.8 million
Entertainment / Culture - $905.3 million o o o Two Smithsonian-grade museums - $800 million Outdoor cultural and performing arts center - $57 million School, Library, or Community Center - $48.3 million
Utilities / Structural Infrastructure - $509.6 million o o o Bulkhead Reconstruction and Canal construction - $40.8 million Utilities and Site Work - $198.8 million Cogeneration Plant and Energy Infrastructure - $270 million
Transportation - $267.9 million o o o Streetcar Infrastructure - $37.5 million New Yellow Line Metro Station - $130.4 million Bridge and Highway Infrastructure - $100 million
These investments in public infrastructure will create an environment that enables redevelopment to prosper and operate in a sustainable manner to help meet the unmet needs identified in District 2040. The investments and creation of a new, accessible urban parks system will help to enhance the value of the surrounding real estate while creating a valuable amenity for District residents, workers, and visitors alike. In order to be successful, these urban parks must be easily accessible, have a high level of population density and commercial intensity immediately nearby, and be highly managed, maintained, and operated by a non-profit entity funded largely by
Assumes twenty percent soft costs and five percent contingency
surrounding land and business owners for the District of Columbia. This management structure will give the District government and residents of the District more latitude in how the parks are used, managed, and enjoyed. The integration of the urban park system into the redevelopment plan will allow for these new parks to reach their full potential.
Providing opportunities for increased cultural options will fulfill gaps not currently accounted for in the existing development pipeline and will help to drive tourist demand and to integrate the redeveloped Hains Point with the museum, memorial, and monument system of the Monumental Core. Extending the monuments into the fabric of the new Hains Point neighborhood will create opportunities to better integrate the federal components with the local components and character of the District. Expanding the Districts entertainment options through the creation of a new, world-class outdoor music and performing arts venue will provide the city with an amenity that will help the District compete with other first tier cities entertainment options and opportunities. The selection of a marquee architect and designer for the venue will, like Bing Thoms Arena Stage or Frank Gehrys Pritzker Pavilion, help to create another cultural icon for the District.
Significant traditional infrastructure will be needed to allow for the redevelopment of the site. This includes creation of a utility network, expanding decentralized energy generation, structural repairs to the bulkhead, and other major infrastructure initiatives such as the creation of an on-site energy plant. An on-site energy plant will help to increase energy security for the District by reducing the burden on the already taxed energy grid, and provide increased reliability, efficiency, and choice for consumers. Reconstruction of the bulkhead will help to make the site more resilient and help to stabilize the site for the planned development intensity. The creation of the canal will align with some of the visions included in NCPCs Monumental Core Framework Plan and will increase potential for water-based transit services such as water taxi (National Capital Planning Commission, 2009).
The investment in a new infill metro station will also align with goals of the Monumental Core Framework Plan and will facilitate sustainable transportation options for the Hains Point redevelopment. Improvements to the bridge and highways and connection to the planned streetcar system will further increase mobility options to and from the site. These premium connections to the transportation network will further enhance the attractiveness of the site and will be required to enable the viability of the site for redevelopment.
The grouping of dense, mixed-use development with premium transportation, robust infrastructure, cultural and entertainment venues, and a world-class public realm will be vital to the feasibility of the proposed redevelopment of Hains Point. These elements have positively reinforcing benefits and cannot operate or be feasible in isolation. The proposed public infrastructure program is aimed at responding to the gaps identified and policy recommendations made in the District 2040.
III.
Private Development Program and Costs
Similarly, the proposed private development program for Hains Point is a response to the gaps identified in the Sustainable D-based needs projections from District 2040: Building Towards a Sustainable DC. While the development capacity identified in the proposed redevelopment plan is not sufficient to accommodate the majority of the supply and demand disparities identified in District 2040, it should be considered as one of the many tools, initiatives, and projects that will need to be implemented across the District to accommodate the growth projections. See Figure 11, below, for a summary of the proposed redevelopment program:
Summary of Proposed Program for Redevelopment of Hains Point Residential Office Hotel Retail Museum/Entertainment Other Total % of Unmet Resident/Employee Demand Count Avg GSF 25,751 Residents 767 GSF/Unit 11.1% 25,747 Employees 231 GSF/Employee 18.8% 2,783 Employees 731 GSF/Key 15.8% 4,323 Employees 370 GSF/Employee 21.5% 100.0% 108 Employees 58,712
% of Total Development 53.8% 26.0% 8.0% 7.0% 4.4% 0.9% 100.0%
GSF 12,296,250 5,947,500 1,830,000 1,601,250 1,000,000 200,000 22,875,000
Units/Keys 16,025 Units 2,504 Keys
18,530
Figure 5: Proposed Redevelopment Program (8.0 FAR)
i. Residential Summary
The residential mix proposed for the redevelopment program reflects a number of considerations related to the goals of District 2040. Units have been proposed at an average size that is more in keeping with the future needs and household composition of the District. The distribution of condominiums and apartment units reflects the projections made by the GMU study Housing the Regions Workforce. Affordable housing requirements are based on the current mandatory inclusionary zoning requirements (See Figure 5 for additional information) (Department of Housing and Community Development, 2012).
Residential Split % GFA Condo - Market 31.3% Condo - Affordable 2.7% Apartments - Market 60.7% Apartments - Affordable 5.3% TOTAL
Avg # % of Avg Total Total GFA Avg. GFA Total NSF NSF Units Unit Mix Occupancy Occupancy 3,852,204 909 3,389,939 800 4,236 26.4% 1.80 7,604 334,974 782 294,777 688 429 2.7% 1.67 716 7,460,346 723 6,565,105 636 10,321 64.4% 1.55 15,951 648,726 624 570,879 549 1,040 6.5% 1.42 1,479 12,296,250 767 10,820,700 675 16,025 100.0% 1.61 25,751
Figure 6: Residential Redevelopment Type and Affordability Summary
This intensity of residential unit development accounts for a penetration rate of 11.1 percent 2 (Steenhoek, 2012). The majority units are intended to be flats, which will allow residents to have the option to age-in-place without the complication of having to unnecessarily navigate flights of steps within their units. Residential unit size and mix was adjusted to meet the average 675 net square foot target identified in District 2040, see Figure 6 below. Additional information regarding the proposed unit mix, size, and distribution can be found in Appendix C:
TOTAL Studio 1BR 2BR 3BR TOTAL
Avg % of Avg Total % GFA Total GFA Avg. GFA Total NSF NSF # Units Unit Mix Occupancy Occupancy 30.4% 3,741,544 518 3,292,559 455 7,230 45.1% 1.00 7,230 30.1% 3,704,563 754 3,260,015 664 4,912 30.7% 1.50 7,368 23.0% 2,828,783 1,159 2,489,329 1,020 2,440 15.2% 2.50 6,100 16.4% 2,021,360 1,400 1,778,797 1,232 1,444 9.0% 3.50 5,053 100.0% 12,296,250 767 10,820,700 675 16,025 100.0% 1.61 25,751
Figure 7: Residential Unit Size and Type Distribution Summary District 2040 identified a gap a 145,005 residential units in 2040, the 16,025 in the proposed redevelopment would account for 11.1 percent of this demand.
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Residential Program Summary. Community amenities such as a school or community center are planned to provide residents with a holistic neighborhood environment that can adapt to the changing demographic needs. Projected development costs for the residential component are $1.89 billion, see Appendix B: Project Cost Estimate for additional information.
Many aspects of the proposed Hains Point redevelopment will make it attractive to future residents. Its unique and overt location, transportation amenities, and balanced mix of uses will increase its competitiveness in the regional market place. The new, robust urban parks system will provide residents with an unmatched amenity that is well managed, highly programed, and which offers diverse opportunities for recreation. Further, the 1.6 million square feet of retail and restaurant use will help to create a vibrant and dynamic street scape environment with fresh choices and many opportunities to meet, congregate, and celebrate. Cultural, educational, entertainment, and civic uses will only serve to enhance the unique offerings and attractiveness that Hains Point can offer.
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ii. Office Summary

The office component proposed for the redevelopment program reflects the continued office space demand that is projected by District 2040 to accrue during the proposed ten year build out when unmet demand is projected to swell from 5.8 million square feet to 31 million square feet by 2050 if no new significant office supply is identified, see Figure 17 below.
DC DOES DOES WDCEP Office WDCEP Employment Employment Pipeline - 5 Yr Cummulative PROJECTIONS Projection Total (GSF) to 2018 Year (GSF) Demand (GSF) Delta (GSF) 2010 0 0 803,071 0 0 2015 7,657,894 7,657,894 844,280 9,328,975 (1,671,081) 2020 9,913,480 17,571,374 887,604 19,136,665 (1,565,291) 2025 10,067,980 27,639,353 933,151 29,447,633 (1,808,279) 2030 10,067,980 37,707,333 981,036 40,287,705 (2,580,372) 2035 10,067,980 47,775,313 1,031,377 51,684,033 (3,908,720) 1,084,302 63,665,160 (5,821,868) 2040 10,067,980 57,843,292 2045 0 57,843,292 76,261,095 (18,417,803) 1,139,943 89,503,388 (31,660,096) 2050 0 57,843,292 1,198,439 Source: Researcher's analysis of WDCEP and DOES data and projections
Figure 8: Office Supply and Demand Projections
By 2040 a pipeline of 57.8 million square feet of office development has been identified, yet projected demand of 63.6 million square feet continues to outpace this growth. At 5.9 million square feet, the proposed office component would be sized to fulfill the entire demand in 2040. This composition will provide a daytime office employee population of more than 25,000 which is aligned with the total resident population. Providing a balanced mix of residential and office will help to ensure that the Hains Point redevelopment remains an active and vibrant neighborhood during the work day as well as on the evenings and weekends. This healthy mix allows for greater success of businesses that are located in the neighborhood because the population density and potential customer-base remains consistent.
Hains Point will be an attractive office market opportunity because of its location, convenience, and density of use, which is large enough to support industry clustering and specialization. The site offers premium visibility for
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headquarter buildings and could function as an urban office campus or integrate higher education or medical uses within the flexible office infrastructure. Office development is already the primary real estate type in the area of southwest between the Mall and the Washington Channel. With the planned expansion of the LEnfant Plaza complex, the Southwest Ecodistrict, and the Wharf, access to a larger concentration of traditional private and government office use is quick and convenient from Hains Point. Further, the Pentagon is one stop away on the Metro, making Hains Point an ideal choice for defense contractors and others that need to be in close proximity to the Pentagon but also desire a marquee location within the District of Columbia with unmatched views and visibility.
Projected development costs for the office components are $1.27 billion, see Appendix B: Project Cost Estimate for additional information.
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iii. Hotel
The hotel component of the proposed redevelopment program will bring over 2,500 much needed hotel rooms to the District in a very tourist and visitor friendly location. These new hotel rooms will accommodate approximately 16 percent of the unmet demand identified in District 2040. The hotel program is currently anticipated to include a variety of hotel products, with various service levels and amenities that can meet the price points of luxury travelers, families, and business travelers. See Figure 18 for the projected hotel mix and distribution.
Projected Hotel Mix % of Mix GSF Rooms Luxury Full Service Select Service Total/Avg 35% 40% 25% 100% 640,500 732,000 457,500 1,830,000 877 1,002 626 2,504
Figure 9: Projected Hotel Mix and Distribution
Luxury travelers will be attracted to Hains Points unmatched views, retail and restaurant offerings, and entertainment options. Families will find the redevelopments close location to popular tourist destinations such as the Jefferson Memorial, the National Mall, and the Tidal Basin as well as the new museum and cultural offerings to be attractive. Lastly, business travelers will appreciate the convenient access to the to the almost six million square feet of office development on-site as well as the other office concentrations at the Wharf and LEnfant Plaza or SW Federal Center areas. All tourists, whether arriving by car, train, or airplane, will enjoy the convenient access that Hains Point offers with direct vehicular access from I-395, adjacency to LEnfant Plaza VRE station, and National Airport being only four metro stops away. Hains Points unique location on the water can also permit arrival to the site from National Airport by water taxi. Additionally, Hains Points on-site new metro station, streetcar stop, and bicycle network will make getting around the District quick and easy for visitors.
Projected development costs for the hotel components are $668 million, see Appendix B: Project Cost Estimate for additional information.
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iv. Retail
The retail component of the proposed redevelopment will offer approximately 1.6 million square feet of retail and restaurant opportunities. Ground floor retail is a critical component of creating a vibrant pedestrian environment and helps to create a more convenient and liveable environment for residents and employees. This volume of retail is estimated to fulfill just over 20 percent of the retail undersupply in the District identified in District 2040. The inclusion of the Hains Point retail will help bring the average retail per capita closer to regional and national levels and will create job opportunities for up to 4,300 workers. While the majority of demand will be driven by employees, guests, and residents in the immediate neighborhood area, the easy access and wealth of transportation options at Hains Point will allow for the retailers and restaurateurs to capitalize on the neighborhoods future status as a regional destination and significant tourist foot traffic visiting the cultural offerings. Approximately 60 percent of the ground floors of the proposed buildings on Hains Point would be filled with retail and restaurant uses 3 which provide ample space for other ground floor uses such as lobbies, loading, and service while still maintaining a critical mass and consistent retail experience. Projected development costs for the retail components are $668 million, see Appendix B: Project Cost Estimate for additional information.
The anticipated mix of retail and restaurant/entertainment space is 40 percent to 60 percent, respectively. This acknowledges the attraction of Hains Point as a dining and entertainment destination, the increasing trends to eat outside of the home or office, and fact that the smaller kitchens in efficient apartments and condominiums may not be conducive to preparing large or frequent meals (Clabaugh, 2012). A wide variety of dining options should be provided to accommodate the needs of visitors, residents, and workers. The balanced mix of residents and employees, paired with the strong hotel and cultural presence will provide a steady customer base for restaurant offerings enabling locations to operate on expanded or adjusted hours as fits with their individual business plans and clientele. This will help to ensure that restaurants and retail options dont uniformly shut down after traditional business hours or weekends, a common criticism of downtowns that lack a healthy balance of
3
Calculation assumes an average lot coverage of 80% and that 85% of all retail and restaurant offerings will be located on ground floor.
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residential, hotel, and cultural options to balance the office uses. Restaurant uses should be distributed and integrated with other retail offerings but should be located in spaces that offer the greatest opportunity for views such as the waterfront perimeter or adjacent to the major park offerings.
Neighborhood and destination retail offerings typical of a community or neighborhood type center should be interspersed with the restaurant uses throughout the proposed redevelopment but should look for opportunities on streets with a high level of other active uses, such as hotel or office entries, but which do not necessarily offer the premium views. These locations will have foot traffic and, while every street should not be expected to be Main Street, will allow for a continued street level convenience retail experience on most mixed-use blocks. Retail offerings should include neighborhood serving staples such as a centrally located grocery store, hardware store, dry cleaner, drug store, bicycle shop, and pet stores as well as other general merchandise, soft goods, and convenience offerings. Designing retail offerings around the daily needs of residents and workers will help to ensure that most common needs can be met without having to leave the proposed redevelopment area. Other specialty retail clustering opportunities should be evaluated to help create a regionally recognized retail focus in certain niche categories. Further, limited GAFO (General merchandise, Apparel, Furniture, and Other items) retailers should be considered to help minimize retail leakage from sales that might otherwise go to big-box or large format retailers in surrounding jurisdictions.
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v. Parking
Approximately 13,500 parking spaces are anticipated to be constructed on two levels of parking below-grade. While this is a significant volume of parking, it represents an aggressive parking mix and utilizes shared parking methodology to maximize the utility of each parking spot. The strong transit oriented nature of the proposed Hains Point redevelopment allows for these ratios to be achieved. Dedicated residential parking for the proposed 16,000 residential units represents approximately 50 percent of the available parking supply. See Figure 10 for additional information regarding residential parking ratios.
Residential Parking Ratios Unit Type Unit Count Parking Ratio Parking Space Demand Condominiums (Market 4,236 65% 2,753 Condominiums (Affordable) 429 5% 21 Apartments (Market) 10,321 40% 4,128 Apartments (Affordable) 1,040 5% 52 Total 6,955
Figure 10: Residential Parking Ratio Assumptions
The remaining 6,500 spaces are for shared use of the office, retail, hotel, and cultural uses. This equates to a blended average for non-residential uses of approximately 1,600 square feet per space. The varying peak operational hours and days of these uses provide a structure where parking space use can be shared to create an efficient use structure which minimizes the creation of underused, single-use serving parking. Further, parking structures should be shared or linked between individual buildings on a block or potentially joined between blocks to increase parking garage efficiency and flexibility. At more than $40,000 per parking space, for a total projected cost of $684 million, it is important that parking structures are designed to maximize utility, see Appendix B: Project Cost Estimate for more information.
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B. Economic Impact Summary of Hains Point

I. Total Direct Annual Tax Revenue
The redevelopment of Hains Point represents an opportunity to create significant direct tax revenue for the District. First-year annual tax revenue projections identify $425 million dollars of annual direct taxes to the District of Columbia. This estimate was created without accounting for additional tax revenue created from cultural or entertainment venues and without applying aggressive multipliers or identifying indirect or induced impacts. Further, the potential revenue stream to the District associated with land sales or ground leases has not been accounted for. Given the intensity of development and unique nature of the site, capitalizing on the direct land value as a potential revenue stream could be very significant for the District. Due to these factors the true economic impact of the proposed redevelopment of Hains Point is likely significantly larger than has been stated. See Figure 10 and Appendix D Appendix M for additional detail.
Total Direct Annual DC Tax Revenue by Use Condominium (Affordable) Apartments (Affordable) Parking Hotel Condominium (Market) Retail Apartments (Market) Office Total
Figure 11: Annual Direct Tax Summary
$2012 $2,209,671 $3,184,422 $25,365,876 $49,062,939 $59,297,858 $92,909,949 $95,244,507 $98,366,610 $425,641,832
Over a thirty year period this redevelopment of Hains Point would grow to create more than $3.8 billion dollars in new tax revenue. See Figure 12: Cumulative District Tax Revenue 2040-2070 and Appendix O: 30 Year Debt Service and Tax Revenue Calculation for additional information.
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Figure 12: Cumulative District Tax Revenue 2040-2070 ($2012)
For the District, these impacts can be seen largely to represent net new tax revenue since the redevelopment program of Hains Point is a response to the significant undersupply of development within the District that was identified though the analysis of the Sustainable DC population growth targets. This redevelopment provides the opportunity to help the District maximize its potential and will draw residents and jobs back into the central city from the suburbs. This will create opportunities for new residents and employees, not simply a substitution of opportunities that are already provided for within the boundaries of the District proper.
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II.
Employment
In addition to providing significant opportunity to expand the Districts tax base, the redevelopment of Hains Point would provide many important employment opportunities. In total, more than 38,000 full time equivalent jobs are projected to be created through the redevelopment of Hains Point. This includes approximately 25,750 office jobs, 4,325 retail jobs, 2,785 hotel jobs, 110 parking related jobs, and the creation of approximately 5,565 construction jobs, see Figure 13: Construction Employment Calculation for additional information on Construction Employment projections.
Construction Job Calculation Value of Construction (Hard Cost) Direct Labor Average Annual Income (1) Total Person Years Build Out Time Period Construction FTE Jobs
7,165,385,600 40% 51,500 55,653 10 Years 5,565
Source: DOES Industry and Occupational Projections 2008-2018 (1) Average income of Construction and Extraction Occupations 2008 Annual Income escalated a 3% to 2012 dollars Figure 13: Construction Employment Calculation
Employment for the thousands of architects, engineers, landscape architects, planners, designers, lawyers, developers, and other real estate professionals has not been included in this calculation. Nor has employment opportunities related to the cultural, entertainment, transportation, or infrastructure components of the program. The income generated for District residents by these employment opportunities have not been included in the calculations except to the extent that residents of Hains Point also work on Hains Point. Due to the lack of a commuter tax, expanding employment opportunities within highly transit accessible areas within the District, while simultaneously providing housing options for those that hold jobs in the District, is of paramount importance in order to build a stronger and more resilient tax base within the District.
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III.
Public Infrastructure Funding and Management i. Public Infrastructure Funding:
A wide variety of creative opportunities and mechanisms will have to be employed for the funding of the Public Infrastructure required for the redevelopment of Hains Point. While this study does not venture to guess what tools would ultimately be used to fund an undertaking of this magnitude, it does offer a basic metric for consideration using Tax Increment Financing. Currently, the Hains Point site generates zero real estate tax revenue for the District as it is owned by the federal government. Annual full-build unescalated Real Estate Tax Revenue projected for the redevelopment of Hains Point is $170 million dollars. The annual debt service associated for bonds for public infrastructure in the amount of $1.7 billion 4 dollars is only $100.3 million dollars. This preliminary metric indicates that using Year One Real Estate Tax values alone would provide a debt service coverage ratio of 170 percent 5.
Debt Service Calculation Bond Amount Annual Interest Rate Life of Loan Number of Payments per Year Total Number of Payments Payment per Period Sum of Payments Interest Cost Annual Debt Service Annual Real Estate Tax Revenue (Yr1) Debt Coverage Ratio
$1,692,810,000 4.25% 30 2 60 $50,183,653 $3,011,019,175 $1,318,209,175 $100,367,306 $170,406,313 170%
Figure 14: Public Infrastructure Bond Debt Service Calculation
A phased development timeline of ten-years offers a more nuanced view of how new real estate tax revenue would be accrued relative to TIF bond expenditures. As demonstrated in below in Figure 15: TIF Annual Debt Service 2040-2070, with 10-year Build Out and Figure 16: Cumulative Debt Service and Real Estate Tax Revenue
the value all of the Public Infrastructure with the exception of the Museums that are assumed to be funded through private fundraising and/or government appropriations 5 Issuance Costs or other associated costs have not been included in this basic calculation
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2040-2070 6, the front-loaded TIF scenario would result in a few brief years where new tax revenue generated by the redevelopment is not sufficient to cover the debt service payments however once development phases being to deliver the debt service requirements are easily covered. During this initial period, other more mature TIF districts may have to be looked to in order to provide coverage or techniques such as utilizing an initial interestonly period on the bonds may need to be considered.
Figure 15: TIF Annual Debt Service 2040-2070, with 10-year Build Out
Figure 16: Cumulative Debt Service and Real Estate Tax Revenue 2040-2070
Also see Appendix O: 30 Year Debt Service and Tax Revenue Calculation and Appendix P: Investment and Tax Revenue Timeline 2040-2050 for additional information regarding debt service payment and new tax revenue timing.
22
Clearly, many other factors such as the health of the bond markets, the Districts credit rating, debt cap restrictions and a myriad of other factors would need to be considered, but this illustrates the potential capacity that private development has to support the creation of robust infrastructure investments. Other opportunities, such as the use of an infrastructure bank or private sponsorship, could further limit the need to issue bonds for this infrastructure. In Chicago, the construction of Millennium Park was able to raise over $220 million dollars in private donations and sponsorships (NGA Center for Best Practices, 2007). The sponsorships of elements of the infrastructure, public parks, spaces, cultural, and entertainment components of the Hains Point redevelopment is another potentially highly lucrative opportunity for the District.
23
ii. Public Infrastructure Management:
As discussed above, the aligned interest of the private sector with the District should be capitalized upon regarding the basic maintenance and operations of the newly constructed public spaces and infrastructure. A business improvement district (BID) should be established on Hains Point. Similar to the Capitol Riverfront BID, the Hains Point BID would be able to support the maintenance and operation of the Hains Point park system. Using prevailing assessment rates, a BID for Hains Point would be able to generate approximately $3.3 million in assessments from property and building owners in the Hains Point neighborhood, see Appendix N: Business Improvement Fee Generation for further information.
While this will not be sufficient to completely eliminate the need for many city services, the BID would be able to greatly supplement the management efforts and needs of the District while maintaining a clean and safe environment and promoting business development in the neighborhood. The Hains Point BID would be smaller than some of the major BIDs that are in operation today but it would have a density that is roughly approximate to the Downtown BID or NoMA BID areas, see Figure 17 below for additional detail.
Business Improvement District Comparison Hains Point NoMA Capitol Riverfront Downtown Acres 142 240 500 640 Residential Units 16,025 10,001 10,000 6,863 Office GSF 5,947,500 22,156,000 17,000,000 80,000,000 Hotel Rooms 2,504 1,512 1,500 9,600 Retail GSF 1,601,250 1,274,950 100,000 3,444,882 Parkland 32 0 10 20 Total GSF 22,875,000 34,458,350 36,726,928 97,600,000
Sources: Researcher's analysis of 2012 NoMA Development Map, Capitol Riverfront BID Urban Design Framework, Downtown BID: Stage of Downtown 2011, Personal Email Communication
Figure 17: Existing Business Improvement District Comparison
24
IV.
Conclusion
As discussed in District 2040: Building Towards a Sustainable DC significant measures will need to be taken to allow the District to grow to its full potential as was envisioned in the Mayors Sustainable DC initiative. Breaking New Ground demonstrates how a valuable asset in the District of Columbia can be utilized to help the District grow in a sustainable manner to fulfill its potential and maintain its competitive stake in the region. The redevelopment studied in Breaking New Ground will create a vibrant neighborhood for District residents, both new and old, that grows employment opportunities, provides a new tourist destination and hub, expands the Districts retail offerings, and supports a robust urban parks system.
The redevelopment program reviewed in Breaking New Ground would induce billions dollars in private investment, generate hundreds of million dollars each year in new direct tax revenue, and expand tourism, housing, small business, retail, and recreation opportunities. It would create new world class museums, architecturally iconic entertainment venues, and an unmatched civic realm.
The future prosperity of the District of Columbia and the metro region depends on its ability to support growth by providing housing, employment, transportation, and recreation over the coming decades in a sustainable manner. Breaking New Ground is intended to study the economic impacts of one potential redevelopment scenarios for Hains Point.
25
Hains Point Breaking New Ground by the numbers:

- $6 billion dollars in Private Investment - $2.7 billion dollars in new Public Infrastructure - $3.8 billion dollars of net new Real Estate Tax Revenue by 2070 - $425 million dollars in annual Direct Tax Revenue - $11.6 billion dollars of taxable real estate value - 22.8 million square-feet of high density mixed use development - Housing for more than 25,000 District Residents - 33,000 new permanent jobs - 5,500 construction jobs - 1,500 new affordable housing units - 2,500 new hotel rooms - 1.6 million square-feet of retail and restaurant to help stop retail leakage - 1 new metro station - 2 new Smithsonian quality museums - 300+ acre world-class urban park system - $3.3 million dollars in annual Business Improvement District assessments - 1 new outdoor performing arts center
26
Works Cited
109th Congress. (2006). Public Law 109-396, the Federal and District of Columbia Government Real Property Act of 2006. Washington: US Government Printing Office. AECOM. (2012). Maryland Avenue Southwest Plan: Washington DC. Washington: AECOM. Bolan Smart Associates, Inc. (2007). SW Waterfront, Economic Impact Summary - $2007. Washington: Bolan Smart Associates, Inc. Brookings: Metropolitan Policy Program. (2009). Value Capture and Tax-Increment Financing Options for Streetcar Construction. Washington: Brookings. Bryant Park Management Corporation. (2010). 2010 Annual Report. New York: Bryant Park Management Corporation. Canal Park Development Association, Inc. (2012). History. Retrieved November 25, 2012, from canalparkdc.org: http://www.canalparkdc.org/about/history Capitol Riverfront BID. (2012, April 27). Request for Proposal: Urban Design Framework Plan. Retrieved December 9, 2012, from capitolriverfront.org: http://www.capitolriverfront.org/_files/docs/crbid-urban-design-framework-plan.pdf Capitol Riverfront Business Improvement District. (2012). About the Park. Retrieved November 26, 2012, from yardspark.org: http://www.yardspark.org/about Cassidy Turley. (2012). U.S. Office Trends Report, 3rd Quarter 2012. Washington: Cassidy Turley. CBRE. (2012). CBRE Cap Rate Survey. CBRE. Census Bureau. (2012). Residential Building Permits by State with Valuation. Washington: Census Bureau. Clabaugh, J. (2012, October 9). Washingtonians Eating Out More. Retrieved December 9, 2012, from Washington Business Journal: http://www.bizjournals.com/washington/news/2012/10/09/washingtonians-eating-outmore.html Clark Construction. (2012). Monumental/Unique Projects. Retrieved November 25, 2012, from clarkconstruction.com: http://www.clarkconstruction.com/index.php/projects/project_list/C28 Clark Construction. (2012). Southwest Waterfont, The Wharf, 50% DD Budget Update. Washington: Clark Construction. DC Appleseed; Our Nation's Capital. (2008). Building the Best Capital City in the World. Washington: DC Appleseed. DC BID Council. (2012). DC BID Profiles 2012. Washington: DC BID Council. 27
Delta Associates. (2011). Washington Area Retail Outlook, Mid-Year 2011. Washington: Delta Associates. Department of Housing and Community Development. (2012). Inclusionary Zoning Affordable Housing Program. Retrieved December 2, 2012, from dhcd.dc.gov: http://dhcd.dc.gov/service/inclusionary-zoning-affordable-housing-program Destination DC. (2011). Washington DC's 2011 Visitor Statistics. Washington: Destination DC. Destination DC. (2012). DC City Fact Sheet. Retrieved November 18, 2012, from planning.washington.org: http://planning.washington.org/planning/meeting-planners/dc-in-abox/dc-city-fact-sheet District of Columbia Department of Employment Services. (2011). District of Columbia Industry and Occupational Projections 2008-2018. Washington: District of Columbia. Downtown BID. (2012, April 25). 2012 State of Downtown. Retrieved December 9, 2012, from downtowndc.org: http://www.downtowndc.org/item/sod-2012-report Gandhi, N. M. (2008). Fiscal Impact Statement: "Tax Increment Revenue Bonds Waterfront Arts Project Refundable TIF Approval Resolution of 2008". Washington: Government of the District of Columbia. Greendoor Advisors; Delta Associates. (2010). St. Elizabeth's East Campus Market Study. Washington: Delta Associates. GSA Office of Governtwide Policy. (2011). Workspace Utilization and Allocation Bench Mark. Washington: General Services Administration. Institute of Transportation Engineers. (2003). Trip Generation, 7th Edition. Washington: Institute of Transportation Engineers. Mix, T., & Jiang, X. (2009). Demographic Multipliers in Delaware. Newark: University of Delaware. MuniCAP. (2012). Southwest Washington Waterfront Washington DC: Tax Increment Financing Projections. Washington: MuniCAP. National Capital Planning Commission. (2001). Memorials and Museums Master Plan . Washington: National Capital Planning Commission. National Capital Planning Commission. (2009). Monumental Core Framework Plan. Washington: EDAW AECOM. National Capital Planning Commission. (2010). About Washington's Parks and Open Space. Washington: National Capital Planning Commission. NGA Center for Best Practices. (2007). Arts and the Economy, Using Arts and Culture to Stimulate State Economic Development. Washington: National Governers Associate. 28
NoMa BID. (2012, February). NoMa Development Map 2012. Retrieved December 9, 2012, from nomabid.org: http://www.nomabid.org/wp/wpcontent/uploads/2012/02/NoMaDevMap_2012.pdf Office of Mayor. (2012). The Five-Year Economic Develment Strategy for the District of Columbia. Washington: Government of the District of Columbia. Office of the Chieft Finacial Officeter of the District of Columbia. (2008). Economic and Financial Analysis: City Market at O Street,Washington DC. Washington: District of Columbia. Office of the Deputy Mayor for Planning and Economic Development. (2010). The Yards. Retrieved November 24, 2012, from dmped.dc.gov: http://dmped.dc.gov/DC/DMPED/Projects/Anacostia+Waterfront+Initiative/Anacostia+Waterfr ont+Neighborhood+Projects/ci.The+Yards.print Office of the Deputy Mayor for Planning and Economic Development. (2012). Development Projects. Retrieved November 25, 2012, from Office of the Deputy Mayor for Planning and Economic Development: http://dmped.dc.gov/DC/DMPED/Projects/Development+Projects Office of the Mayor. (2012). A Vision for a Sustainable DC. Washington: District of Columbia. Social Compact, Inc. (2008). Washington, DC Neighborhood Market DrillDown: Catalyzing Business Investment in Inner City Neighborhoods. Washington: Social Compact, Inc. Steenhoek, M. (2012). District 2040: Building Towards a Sustainable DC. Alexandria: Virginia Tech. Strurtevant, L., & Fuller, S. (2011). Housing the Region's Workforce: Policy Challenges for Local Jurisdictions. Arlington, VA: George Mason University. The Trust for Public Land. (2010). 2010 City Park Facts. Washington: The Trust for Public Land. Uhlir, E. K. (2006). The Millennium Park Effect: Creating a Cultural Venue with Economic Impact. New York: Americans For the Arts. Washington DC Economic Partnership. (2012). Development Tracker Database. Washington: Washington DC Economic Partnership. Zipper, D. (2012). Retail Development Strategies, Washington DC. Retrieved November 24, 2012, from http://www.mayorsinnovation.org: http://www.mayorsinnovation.org/pdf/DavidZipper.pdf
29
Appendix
30
Appendix A: Development Site Analysis
HAINS POINT 2040 Development Site Analysis
Road/Public Other Parks Development System Pads Develop Site Parks Perimiter Center Green Realm Project Site Area Width 1,975 250 250 Length 3,125 3,125 2,500 SQFT 6,171,875 SQFT 781,250 SQFT 625,000 SQFT 1,906,250 SQFT 11,029,969 SQFT 2,859,375 SQFT Acres 141.7 Acres 17.9 Acres 14.3 Acres 43.8 Acres 253.2 Acres 65.6 Acres Percentage of total Hains Point Area: 35.9% 4.5% 3.6% 11.1% 64.1% 16.6% Acres SQFT East Potomac ParkTotal: Total Open Space Open Space % 394.9 329.3 83.38% 17,201,844 14,342,469
Calc (no FAR Alt FAR Development Public Calc Realm) Pads Only Entire Site 8.0 5.36 1.3 GSF Potential 22,875,000 GSF
31
Appendix B: Project Cost Estimate

HAINS POINT 2040 Project Costs
Unit Public Infrastructure Costs Bulkhead Reconstruction/Repair/Canal Hains Point Parks/Fields/Structures Bandshell/Entertainment/Cultural Museums (2) School/Library/Other Center Green Parks Perimiter Streets/Sidewalks Streetcar WMATA Station Bridge and Highway Infrastructure Utilities/Site Work Cogeneration Plant Subtotal Soft Costs Contingency Total Public Private Costs 66% Residential (Apartments) 34% Residential (Condo) Office Hotel Retail Garage Museum/Entertainment Other Subtotal Soft Cost Contingency Total Private Total TOTAL Construction Jobs Value of Construction (Hard Cost) Direct Labor Average Annual Income (1) Total Person Years Build Out Construction FTE Jobs lf sf sf sf sf sf sf mi
Quantity 10,200 12,936,219 200,000 800,000 92,000 625,000 781,250 1,906,250 2.5 1 1 3,312,500 27
Unit Price $4,000 $25 $285 $1,000 $525 $45 $30 $45 $15,000,000 $130,400,000 $100,000,000 $60 $10,000,000 20% 5%
Amount $40,800,000 $323,405,475 $57,000,000 $800,000,000 $48,300,000 $28,125,000 $23,437,500 $85,781,250 $37,500,000 $130,400,000 $100,000,000 $198,750,000 $270,000,000 $40,800,000 $323,400,000 $57,000,000 $800,000,000 $48,300,000 $28,100,000 $23,400,000 $85,800,000 $37,500,000 $130,400,000 $100,000,000 $198,800,000 $270,000,000 $2,143,500,000 $428,700,000 $128,610,000 $2,700,810,000
sf MW
sf sf sf sf sf sf
8,109,072 4,187,178 5,947,500 1,830,000 1,601,250 5,718,750 above above
$185 $215 $170 $290 $130 $95
$1,500,178,279 $1,500,200,000 $900,243,318 $900,200,000 $1,011,075,000 $1,011,100,000 $530,700,000 $530,700,000 $208,162,500 $208,200,000 $543,281,250 $543,300,000
20% 5%
$4,693,700,000 $938,740,000 $281,622,000 $5,914,062,000 $8,614,872,000
7,165,385,600 40% 51,500 55,653 10 5,565
32
Appendix C: Residential Program Summary

HAINS POINT 2040 Residential Program Summary Percent Affordable 8% Avg. Avg % of Total Residential Split % GFA Total GFA GFA Total NSF NSF # Units Unit Mix Occupancy Condo - Market 31.3% 3,852,204 909 3,389,939 800 4,236 26.4% 7,604 Condo - Affordable 2.7% 334,974 782 294,777 688 429 2.7% 716 Apartments - Market 60.7% 7,460,346 723 6,565,105 636 10,321 64.4% 15,951 Apartments - Affordable 5.3% 648,726 624 570,879 549 1,040 6.5% 1,479 TOTAL 12,296,250 767 10,820,700 675 16,025 100.0% 25,751 Condo - Market Studio 1BR 2BR 3BR Subtotal Condo - Affordable Studio 1BR 2BR 3BR Subtotal Apartments - Market Studio 1BR 2BR 3BR Subtotal Apartments - Affordable Studio 1BR 2BR 3BR Subtotal TOTAL Studio 1BR 2BR 3BR TOTAL Avg. Avg % of Total % GFA Total GFA GFA Total NSF NSF # Units Unit Mix Occupancy 20.0% 770,441 568 677,988 500 1,356 32.0% 1,356 30.0% 1,155,661 795 1,016,982 700 1,453 34.3% 2,179 30.0% 1,155,661 1,250 1,016,982 1,100 925 21.8% 2,311 20.0% 770,441 1,534 677,988 1,350 502 11.9% 1,758 100.0% 3,852,204 909 3,389,939 800 4,236 100.0% 7,604 Avg. Avg % of Total % GFA Total GFA GFA Total NSF NSF # Units Unit Mix Occupancy 30.0% 100,492 511 88,433 450 197 45.9% 197 25.0% 83,744 767 73,694 675 109 25.5% 164 25.0% 83,744 1,136 73,694 1,000 74 17.2% 184 20.0% 66,995 1,364 58,955 1,200 49 11.5% 172 100.0% 334,974 782 294,777 688 429 100.0% 716 Avg. Avg % of Total % GFA Total GFA GFA Total NSF NSF # Units Unit Mix Occupancy 35.0% 2,611,121 511 2,297,787 450 5,106 49.5% 5,106 30.0% 2,238,104 739 1,969,531 650 3,030 29.4% 4,545 20.0% 1,492,069 1,108 1,313,021 975 1,347 13.0% 3,367 15.0% 1,119,052 1,335 984,766 1,175 838 8.1% 2,933 100.0% 7,460,346 723 6,565,105 636 10,321 100.0% 15,951 % GFA 40.0% 35.0% 15.0% 10.0% 100.0% Avg. Avg % of Total Total GFA GFA Total NSF NSF # Units Unit Mix Occupancy 259,490 455 228,351 400 571 54.9% 571 227,054 710 199,808 625 320 30.7% 480 97,309 1,023 85,632 900 95 9.1% 238 64,873 1,193 57,088 1,050 54 5.2% 190 648,726 624 570,879 549 1,040 100.0% 1,479
Avg. Avg % of Total % GFA Total GFA GFA Total NSF NSF # Units Unit Mix Occupancy 30.4% 3,741,544 518 3,292,559 455 7,230 45.1% 7,230 30.1% 3,704,563 754 3,260,015 664 4,912 30.7% 7,368 23.0% 2,828,783 1,159 2,489,329 1,020 2,440 15.2% 6,100 16.4% 2,021,360 1,400 1,778,797 1,232 1,444 9.0% 5,053 100.0% 12,296,250 767 10,820,700 675 16,025 100.0% 25,751
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Appendix D: Economic Impact Summary

HAINS POINT 2040 Economic Impact Summary
Real Estate Tax Retail Office Hotel Condominium (Market) Condominium (Affordable) Apartments (Market) Apartments (Affordable) Parking Total Retail Space Tax (Non Real Estate) General Retail Restaurant Total Private Sector Office Direct Tax
Tax Value /SF Taxable Value $1,319,085,295 $4,091,880,000 $791,473,360 $1,932,378,018 $58,909,752 $2,538,741,247 $61,042,700 $824,852,280 $11,618,362,651 Taxable Sales $309,361,500 $574,528,500 $883,890,000 Gross DC Taxes $16,240,440 Taxable Sales $156,771,773 $65,609,332 $31,078,105 $253,459,210 Taxable Sales $2,248,155 $80,329,870 $6,511,605 $253,536 $89,343,166 Total Potential $546,627,743 $25,386,266 $546,627,743 $63,932,015 $1,182,573,767
$824 $688 $432 $570 $200 $387 $107 $144
Annual Real Estate Tax $24,403,078 $75,699,780 $14,642,257 $17,004,927 $518,406 $22,340,923 $537,176 $15,259,767 $170,406,313 Related Tax $17,840,039 $50,486,980 $68,327,019 Related Tax $16,240,440 Related Tax $15,677,177 $5,576,793 $2,377,475 $10,203,192 $33,834,638 Related Tax $179,852 $6,426,390 $586,044 $20,283 $7,212,569
Hotel Related Tax Revenue Room Tax Other Guest Expenses Non-guest Food and Beverage Other Total Employee Related Sales Tax Revenue Retail Office Hotel Parking Total DC Resident Income Tax Condominium (Market) Condominium (Affordable) Apartments (Market) Apartments (Affordable) Total DC Resident Retail Expenditures Condominium (Market) Condominium (Affordable) Apartments (Market) Apartments (Affordable) Total Other DC Resident Related Fees Condominium (Market) Condominium (Affordable) Apartments (Market) Apartments (Affordable) Total Condo Transfer/Resale Fees Condominium (Market) Condominium (Affordable) Total
Income Tax $30,638,827 $1,205,330 $2 $58,724,376 $1,784,164 $92,352,698
Total Potential Capture Rate Sales Tax $174,920,878 35.00% $4,591,673 $6,663,895 40.00% $199,917 $9,023,132 $343,738,368 35.00% $19,179,605 40.00% $575,388 $544,502,745 $14,390,110 Other Related Fees $2,623,813 $114,238 $5,156,076 $287,694 $8,181,821 Transfer Tax Annual Turn over 7.00% $4,438,617 7.00% $171,780 $4,610,398
Parking Sales Tax TOTAL DIRECT ANNUAL DC TAX REVENUE
$10,085,826 $425,641,832
34
Appendix E: Annual Direct DC Tax Revenue by Use

HAINS POINT 2040 Annual Direct DC Tax Revenue By Use Total Direct Annual DC Tax Revenue by Use Condominium (Affordable) Apartments (Affordable) Parking Hotel Condominium (Market) Retail Apartments (Market) Office Total
$7.50 $5.58 $4.44 $26.81 $17.49 $58.02 $14.51 $16.54 $18.61
$2,209,671 $3,184,422 $25,365,876 $49,062,939 $59,297,858 $92,909,949 $95,244,507 $98,366,610 $425,641,832
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Appendix F: Retail Annual Direct DC Tax Revenue

HAINS POINT 2040 Retail - Annual Direct DC Tax Revenue - $2012 Project Description General Retail Restaurant/Entertainment Total Retail Direct Project Full Time Employment (a) 667 sf per retail job (d) 961 retail jobs 286 sf per Restaurant/Entertainment (d) 3,363 restaurant/entertainment jobs 4,323 total jobs 370 avg retail/restaurant sf per job
640,500 gsf 960,750 gsf 1,601,250 gsf
Value Projection Rent per SF Vacancy Less: vacancy Effective Rent per SF Expense Ratio Less: expenses NOI per SF Cap Rate (c) Market Value per SF
Gen Retail Restaurant $45 $60 5.00% 5.00% ($2.25) ($3.00) $42.75 $57.00 8.00% 8.00% ($3.42) ($4.56) $39.33 $52.44 6.25% 5.50% $629.28 $953.45 6.25% Retail Building one sf $629.28 $953.45 $823.78 $15.24 total sf $403,053,840 $916,031,455 $1,319,085,295 $24,403,078 $24,403,078 total sf $483.00 $27.77 $20.83 $50.00 $1.70 $0.51 $309,361,500 $17,788,286 $13,341,215 $3,085,881 $32,025,000 $1,088,850 $324,093 $17,840,039 total sf $598.00 $53.82 $43.06 $5.97 $90.25 $3.07 $0.46 $574,528,500 $51,707,565 $41,366,052 $5,730,922 $86,707,688 $2,948,061 $441,945 $50,486,980
7.25% Real Estate Tax General Retail Real Estate Value Restaurant Real Estate Value Total Taxable Real Estate Value (assessment) Real Estate Tax Revenue Total Rest Estate Tax Revenue
100.00% of value 1.85% commercial tax rate
General Retail Direct Tax Revenues On-site Taxable Retail Sales (Adjusted 8% for vacancy) DC Average Applicable Sales Tax Sales Tax Net of On-Site Residents of Office Tenants DC Corporate Tax Business Personal Property Business Personal Property Tax Other Operating Taxes and Fees (b) (Adjusted for 8% vacancy) DC General Retail Related Tax Capture Restaurtant/Entertainment Direct Tax Revenues On-site Taxalble Retail Sales (adjusted for 8% vacancy) DC Average ApplicableSales Tax 21) Sales Tax Net of On-Site Residents or Office Tenants DC Corporate Tax Business Personal Property (adjust for 5% vacancy) Business Personal Property Tax Other Operating Taxes and Fees (b) DC Restaurent Related Tax Capture
one sf $525 per sf 5.75% 75.00% not on-site consumers 9.975% on 10% Profit on Gross $50 FF&E per sf $3.40 per $100 assessed value $0.55 per sf
one sf $650 per sf 9.00% 80.00% not on-site consumers 9.975% on 10% Profit on Gross $95 FF&E per sf $3.40 per $100 assessed value $0.50 per sf
Employee Related Sales Tax Revenue FTE Employee Retail Expenditures Subject to Sales Tax Employee Related Sales Tax Total Direct Annual Tax Revenue Total Direct Annual Tax Revenue
one sf $45 per FTE per week 8.00% Mostly Meals
total sf $2,248,155 $179,852
$58.02
$92,909,949
Notes (a) Full time equivalent (40 hrs/wk) employees (b) Misc. fees, operations purchases, utility, and telecom fees, and other business license and related fees and charges (c) See CBRE Cap Rate Survey - August 2011, http://www.cbre.us/o/minneapolis/AssetLibrary/PCGMN_CapRateSurvey_Aug2011[2].pdf (d) See Demographic Multipliers in Delaware, June 2009. Mix, Troy and Jiang, Xuan. Retail employment 1.0-2.0 per 1,000 SF, Eating and Drinking 3.0-4.0 employees per 1,000 SF http://dspace.udel.edu:8080/dspace/bitstream/handle/19716/4279/DelMultipliers.pdf?sequence=1
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Appendix G: Office Annual Direct DC Tax Revenue

HAINS POINT 2040 Office - Annual Direct DC Tax Revenue - $2012 Project Description General Office Retail (see retail she) Total Office Value Projection Rent per SF Vacancy Less: vacancy Effective Rent per SF Expense Ratio Less: expenses NOI per SF Cap Rate (c) Market Value per SF Direct Project Full Time Employment (a) 231 sf per office job 25,747 office jobs 25,747 total jobs
5,947,500 gsf 0 gsf 5,947,500 gsf Office $40 5.00% ($2.00) $38.00 14.00% ($5.32) $32.68 4.75% $688.00
Office Building Real Estate Tax General Office Real Estate Value Retail Real Estate Value Total Taxable Real Estate Value (assessment) Real Estate Tax Revenue Total Rest Estate Tax Revenue Private Sector Office Direct Tax (75% private occupancy) Taxable Gross Revenues s (Adjusted 5% for vacancy) DC Corporate Tax Business Personal Property Business Personal Property Tax Other Operating Taxes and Fees (b) (Adjusted for 5% vacancy) DC General Office Related Tax Capture Employee Related Sales Tax Revenue FTE Employee Retail Expenditures Subject to Sales Tax Employee Related Sales Tax Total Direct Annual Tax Revenue Total Direct Annual Tax Revenue one sf $688.00 $420.00 $688.00 $12.73 total sf $4,091,880,000 $0 $4,091,880,000 $75,699,780 $75,699,780
one sf $120,000 per employee 9.975% on 5% Profit on Gross $2,250 per employee $3.40 per $100 assessed value $0.60 per sf
$370.13
total sf $2,201,347,403 $10,979,220 $9.25 $55,033,685.06 $0.31 $1,871,145 $0.57 $3,390,075 $16,240,440 total sf $80,329,870 $6,426,390
one sf $60 per FTE per week 8.00% Mostly Meals
$16.54
$98,366,610
Notes (a) Full time equivalent (40 hrs/wk) employees (b) Misc. fees, operations purchases, utility, and telecom fees, and other business license and related fees and charges (c) See CBRE Cap Rate Survey - August 2011, http://www.cbre.us/o/minneapolis/AssetLibrary/PCGMN_CapRateSurvey_Aug2011[2].pdf
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Appendix H: Hotel - Annual Direct DC Tax Revenue

HAINS POINT 2040 Hotel - Annual Direct DC Tax Revenue - $2012 Project Description Hotel Rooms Direct Project Full Time Employment (a) 0.9 jobs per room (d) 2,783 hotel jobs 2,783 total jobs
2,504 rooms 1,830,000 gsf 731 gsf per room Luxury
Projected Hotel Mix % of Mix GSF Rooms ADR Gross Annual Income Occupancy Effective Gross Income Per Room Expense Ratio Less:expenses NOI per Room Cap Rate (c) Total Value Per Room Total Value Full Service Select Service Total/Avg 35% 40% 25% 100% 640,500 732,000 457,500 1,830,000 877 1,002 626 2,504 290 195 190 227 105,850 71,175 69,350 246,375 73.00% 75.00% 80.00% 76% 77,271 53,381 55,480 $62,267 58.00% 58.00% 58.00% (44,817) (30,961) (32,178) 32,454 22,420 23,302 $26,152 8.00% 8.50% 8.50% 405,670 263,766 274,136 316,025 355,595,086 $ 264,237,088 $ 171,641,186 $ 791,473,360
42977.42
Hotel Building Real Estate Tax General Hotel Real Estate Value Retail Real Estate Value Total Taxable Real Estate Value (assessment) Real Estate Tax Revenue Total Rest Estate Tax Revenue Direct Use Related Tax Revenues Room Nights Room Revenue (Net of Parking) Transient Accomodations Tax Other Hotel Expenditure (inc. restaurant) Other Hotel Guest Sales Tax Business Personal Property Business Persronal Property Tax Other Operating Taxes and fees (b) Total Direct Use Related Taxes DC Direct Use Tax Capture Other Direct Tax Revenue Non-Hotel Related Food & Beverage Sales DC Average Applicable Sales Tax Sales Tax Net of Hotel Guests DC Corporate Tax Total Other direct Tax Revenue Other Direct DC Tax Capture Employee Retaleted Sales Tax Revenue FTE Employee Retail Expenditures Subject to Sales Tax Employee Related Sales Tax Total Direct Annual Tax Revenue Total Direct Annual Tax Revenue one room total rooms $316,025.13 $791,473,360 $0.00 $0 $1,083,178.15 $791,473,360 $20,038.80 $14,642,257 $14,642,257 one room 75.55% Occupancy $227 ADR 10.00% per employee $95.00 per occupied room night 8.50% Tax Rate $40,415 FF&E per Room $3.40 per $100 assessed value $6.13 per room night 100.00% net DC sales 276 $62,597 $6,260 $26,197 $2,227 $40,415 $1,374 $1,690 $2.00 $11,551 total rooms 690,625 $156,771,773 $15,677,177.31 $65,609,332 $5,576,793 $101,217,886.15 $3,441,408 $4,233,528 $28,928,907 $28,928,907
$45 per day per room day 9.00% 85.00% not on-site consumers 9.975% on 10% profit on gross 100.00% net DC sales
one room total rooms $12,409 $31,078,104.81 $1,117 $2,797,029 $949 $2,377,475 $1,009 $2,528,256 $1,959 $4,905,731 $1,959 $4,905,731
$45 per FTE per week 9.00% mostly meals
$2,600 $234
$6,511,605 $586,044
$19,590.20
$49,062,939
Notes (a) Full time equivalent (40 hrs/wk) employees (b) Misc. fees, operations purchases, utility, and telecom fees, and other business license and related fees and charges (c) See CBRE Cap Rate Survey - August 2011, http://www.cbre.us/o/minneapolis/AssetLibrary/PCGMN_CapRateSurvey_Aug2011[2].pdf (d) See Institute of Transportation Engineers - Trip Generation, 7th Edition, p541 ( http://www.anaheim.net/departmentfolders/planning/LakeHotel/AppendixQ.pdf)
38
Appendix I: Condominium (Market Rate) Annual Direct DC Tax Revenue

HAINS POINT 2040 Condominium (Market Rate) - Annual Direct DC Tax Revenue - $2012 Project Description Condominiums Market Component Market Units Average Size Total Saleable SF Project Related DC Residents 1.80 person/household 4,236 occupied units 7,604 total residents 100.00% net residents 7,604 DC Residents Market Condo Building Real Estate Tax Condominium Real Estate Value DC Homestead Exemption Taxable Residential Real Estate Value Residential Real Estate Tax Total Real Estate Tax Revenue Residential Direct Tax Revenues Average Unit Values Required Gross HH Income Taxable Income Initial DC Income Tax Additional DC Income Tax TOTAL Potential DC Income Tax Income Taxes Adjuste for Average Occupancy Potential DC Residents Income Tax Revenue Adjusted for Resident Status New Resident Retail Expenditures Subject to Sales Tax District of Columbia Resident Sales Capture DC Average Applicable Sales Tax (a) Other Resident Related Use Taxes and Fees Personal Property Tax Total Residential Direct Tax Revenues Recurring Property Resale Transfer Taxes Annual Re-sales Relates Taxes (2.9% combined fees) Total Direct Annual Tax Revenue Total Direct Annual Tax Revenue one sf $60,000 per unit 0.88% residential tax rate $645.00 ($74.97) $570.03 $5.02 total sf $2,186,510,971 ($254,132,953) $1,932,378,018 $17,004,927 $17,004,927
4,664 units 91% 4,236 units 800 NSF 3,389,939 NSF
$645.00 per sf 25.00% multiple of unit value 80.00% of gross $30,000.00 of initial taxable income 8.70% DC tax rate over initial 96.00% Occupancy 90.00% of residents pay taxes 40.00% of taxable income 35.00% of expenditures 7.50% blend of categories 0.60% of taxable income
One Unit Total Units $516,228 2,186,510,971 $546,627,743 $129,057 $103,246 $437,302,194 $2,000 $8,471,098 $6,372 $26,990,507 $8,372 $35,461,606 $8,037 $34,043,142 $7,234 $30,638,827 $7,234 $30,638,827 $41,298 $174,920,878 $14,454 $61,222,307 $1,084 $4,591,673 $619 $2,623,813 not considered $37,854,314
7.00% turnover
One Unit Total Units $1,048 $4,438,617
$14,000
$59,297,858
Notes (a) blend of sales tax and services and restaurant sales tax (b) Misc. fees, operations purchases, utility, and telecom fees, and other business license and related fees and charges
39
Appendix J: Condominium (Affordable) Annual Direct DC Tax Revenue

HAINS POINT 2040 Condominium (Affordable) - Annual Direct DC Tax Revenue - $2012 Project Description Condominiums Market Component Market Units Average Size Total Saleable SF Project Related DC Residents 1.67 person/household 429 occupied units 716 total residents 100.00% net residents 716 DC Residents Affordable Condo Building Real Estate Tax Condominium Real Estate Value DC Homestead Exemption Taxable Residential Real Estate Value Residential Real Estate Tax Total Real Estate Tax Revenue Residential Direct Tax Revenues Average Unit Values Required Gross HH Income Taxable Income Initial DC Income Tax Additional DC Income Tax TOTAL Potential DC Income Tax Income Taxes Adjuste for Average Occupancy Potential DC Residents Income Tax Revenue Adjusted for Resident Status New Resident Retail Expenditures Subject to Sales Tax District of Columbia Resident Sales Capture DC Average Applicable Sales Tax (a) Other Resident Related Use Taxes and Fees Personal Property Tax Total Residential Direct Tax Revenues Recurring Property Resale Transfer Taxes Annual Re-sales Relates Taxes (2.9% combined fees) Total Direct Annual Tax Revenue Total Direct Annual Tax Revenue one sf $60,000 per unit 0.88% residential tax rate $287.07 ($87.22) $199.84 $1.76 total sf $84,620,887 ($25,711,135) $58,909,752 $518,406 $518,406
4,664 units 9% 429 units 688 NSF 294,777 NSF
One Unit Total Units $197,473 84,620,887 $59,242 $25,386,266 $44,431 $19,039,700 $2,000 $857,038 $1,256 $538,019 $3,256 $1,395,057 $3,125 $1,339,255 $2,813 $1,205,330 $2,813 $1,205,330 $15,551 $6,663,895 $6,220 $2,665,558 $467 $199,917 $267 $114,238 not considered $1,519,485 Total Units $401 $171,780
One Unit 7.00% turnover
$5,157
$2,209,671
40
Appendix K: Apartment (Market Rate) Annual Direct DC Tax Revenue

HAINS POINT 2040 Apartment (Market Rate) - Annual Direct DC Tax Revenue - $2012 Project Description Total Apartments Market Component Market Units Average Size Total Saleable SF Value Projection Average GSF per Unit Average NSF per Unit Rent per NSF Monthly Rent per Unit Annual Rent per Unit Vacancy Rate Less: vacancy Effective Rent per Unit Less: expenses per unit NOI per Unit Cap Rate (c) Market Value per Unit Market Value per NSF Project Related DC Residents 1.55 person/household 10,321 occupied units 15,951 total residents 100.00% net residents 15,951 DC Residents
11,361 units 91% 10,321 units 636 NSF 6,565,105 NSF
723 636 $4.04 $2,570 $30,838 4.70% ($1,449) 29,388 ($11,413) $17,975 4.75% $378,427 $ 594.93 Market Apartment
Real Estate Tax Apartment Real Estate Value Real Estate Assesment Residential Real Estate Tax Total Real Estate Tax Revenue Residential Direct Tax Revenues Monthly Rent Required Gross HH Income Taxable Income Initial DC Income Tax Additional DC Income Tax TOTAL Potential DC Income Tax Income Taxes Adjuste for Average Occupancy Potential DC Residents Income Tax Revenue Adjusted for Resident Status New Resident Retail Expenditures Subject to Sales Tax District of Columbia Resident Sales Capture DC Average Applicable Sales Tax (a) Other Resident Related Use Taxes and Fees Personal Property Tax Total Residential Direct Tax Revenues Total Direct Annual Tax Revenue Total Direct Annual Tax Revenue
3170 114120
65.00% 0.88% residential tax rate
one sf total sf $ 594.93 $3,905,755,765 $386.70 $2,538,741,247 $3.40 $22,340,923 $22,340,923 One Unit Total Units $2,570 26,523,022 $92,513 $954,828,800 $83,262 $859,345,920 $2,000 $20,642,054 $4,634 $47,825,214 $6,634 $68,467,268 $6,322 $65,249,307 $5,690 $58,724,376 $5,690 $58,724,376 $33,305 $343,738,368 $11,657 $120,308,429 $874 $9,023,132 $500 $5,156,076 not considered $72,903,584
$9,228
$95,244,507
Notes (a) blend of sales tax and services and restaurant sales tax (b) Misc. fees, operations purchases, utility, and telecom fees, and other business license and related fees and charges (c) See CBRE Cap Rate Survey - August 2011, http://www.cbre.us/o/minneapolis/AssetLibrary/PCGMN_CapRateSurvey_Aug2011[2].pdf
41
Appendix L: Apartment (Affordable) Annual Direct DC Tax Revenue

HAINS POINT 2040 Apartment (Affordable) - Annual Direct DC Tax Revenue - $2012 Project Description Total Apartments Market Component Market Units Average Size Total Saleable SF Value Projection Average GSF per Unit Average NSF per Unit Rent per NSF Monthly Rent per Unit Annual Rent per Unit Vacancy Rate Less: vacancy Effective Rent per Unit Less: expenses per unit NOI per Unit Cap Rate Market Value per Unit Market Value per NSF Project Related DC Residents 1.42 person/household 1,040 occupied units 1,479 total residents 100.00% net residents 1,479 DC Residents
11,361 units 9% 1,040 units 549 NSF 570,879 NSF
624 549 $2.80 $1,537 $18,442 4.70% ($867) 17,575 ($11,413) $6,162 5.25% $117,380 $ 213.86 Affordable Apartment Building
Real Estate Tax Apartment Real Estate Value Real Estate Assesment Residential Real Estate Tax Total Real Estate Tax Revenue Residential Direct Tax Revenues Monthly Rent Required Gross HH Income Taxable Income Initial DC Income Tax Additional DC Income Tax TOTAL Potential DC Income Tax Income Taxes Adjuste for Average Occupancy Potential DC Residents Income Tax Revenue Adjusted for Resident Status New Resident Retail Expenditures Subject to Sales Tax District of Columbia Resident Sales Capture DC Average Applicable Sales Tax (a) Other Resident Related Use Taxes and Fees Personal Property Tax Total Residential Direct Tax Revenues Total Direct Annual Tax Revenue Total Direct Annual Tax Revenue
3170 114120
50.00% 0.88% residential tax rate
one sf total sf $122,085,401 $ 213.86 $61,042,700 $106.93 $537,176 $0.94 $537,176 Total Units One Unit $1,537 1,598,460 $61,468 $63,932,015 $46,101 $47,949,011 $2,080,173 $2,000 $0 $0 $2,000 $2,080,173 $1,906 $1,982,405 $1,715 $1,784,164 $1,715 $1,784,164 $18,440 $19,179,605 $7,376 $7,671,842 $553 $575,388 $277 $287,694 not considered $2,647,247
$3,062
$3,184,422
42
Appendix M: Parking Annual Direct DC Tax Revenue

HAINS POINT 2040 Parking - Annual Direct DC Tax Revenue - $2012 Residential Parking Ratios Unit Type Unit Count Condominiums (Market Condominiums (Affordable) Apartments (Market) Apartments (Affordable)
Project Description Total Parking Spaces Condo Purchase Apartment Rent Commercial/Public/Hotel Parking
13,456 spaces 2,775 spaces 4,180 spaces 6,501 spaces
4,236 429 10,321 1,040
Parking Ratio Parking Space Demand 65% 2,753 5% 21 40% 4,128 5% 52 Total 6,955
Direct Full time Employment 60 parking spaces/job 108 parking jobs Value Projection Gross Parking Revenue Opperating Expenses Less: Operating Expenses Annual Operating Income Cap Rate Market Value Market Value Per Space 84,048,549 53.00% ($44,545,731) $39,502,818 6.00% 658,380,303 $61,638 Parking Parking Real Estate Tax Condominium Purchased Spaces Apartment and Commercial Value Taxable Real Estate Value Real Property Tax Total Real Estate Tax Revenue Parking Direct Tax Revenues Monthly Rent - Apartments Commercial/Daily Parkers Gross Potential Income less vacancy Gross Parking Revenue TOTAL Parking Sales Tax $60,000 condo parking space purchase price 100.00% $1.85 per 100 one sf total sf $ 60,000.00 $297,294.10 $5,499.94 $166,471,976 $658,380,303 $824,852,280 $15,259,767 $15,259,767
3170 114120
2 turns
$250.00 per space $16.00 average daily rate 5.00% vacancy 12.00%
One Unit Total Units $3,000 12,541,246 $11,680 $75,930,912 $8,283 $88,472,157 ($414) -$4,423,608 $7,869 $84,048,549 $2,413 $10,085,826
Employee Related Sales Tax Revenue FTE Employee Retail Expenditures Subject to Sales Tax Employee Related Sales Tax Total Direct Annual Tax Revenue Total Direct Annual Tax Revenue
$45.00 per FTE per Week 8.00% mostlymeals
$253,536 $20,283
$6,068
$25,365,876
43
Appendix N: Business Improvement Fee Generation

HAINS POINT 2040 Business Improvement Fee Generation Potential BID Assessments Assessment GSF Units/Keys Formula BID Fee generation 12,296,250 16,025 $ 120 / Unit $1,923,022 5,947,500 $0.15 / SF $892,125 1,830,000 2,504 $ 100 / Room $250,446 1,601,250 $0.15 / SF $240,188 1,000,000 $0. / SF $0 200,000 $0. / SF $0 22,875,000 $3,305,781
Residential Office Hotel Retail Museum/Entertainment Other Total
53.8% 26.0% 8.0% 7.0% 4.4% 0.9% 100.0%
Source: Researcher's projection using DC BID Profiles 2012 from the DC BID Council
44
Appendix O: 30 Year Debt Service and Tax Revenue Calculation

HAINS POINT 2040 30 Year Debt Service Calculation and Tax Revenue TIF Annual Year # Year Debt Service 1 2040 $38,765,985 2 2041 $38,765,985 3 2042 $38,765,985 4 2043 $61,662,025 5 2044 $61,662,025 6 2045 $61,662,025 7 2046 $90,444,360 8 2047 $90,444,360 9 2048 $121,120,704 10 2049 $121,120,704 11 2050 $121,120,704 12 2051 $121,120,704 13 2052 $121,120,704 14 2053 $121,120,704 15 2054 $121,120,704 16 2055 $121,120,704 17 2056 $121,120,704 18 2057 $121,120,704 19 2058 $121,120,704 20 2059 $121,120,704 21 2060 $121,120,704 22 2061 $121,120,704 23 2062 $121,120,704 24 2063 $121,120,704 25 2064 $121,120,704 26 2065 $121,120,704 27 2066 $121,120,704 28 2067 $121,120,704 29 2068 $121,120,704 30 2069 $121,120,704 Cumulative Debt Service $38,765,985 $77,531,969 $116,297,954 $177,959,979 $239,622,004 $301,284,029 $391,728,390 $482,172,750 $603,293,454 $724,414,158 $845,534,861 $966,655,565 $1,087,776,269 $1,208,896,973 $1,330,017,676 $1,451,138,380 $1,572,259,084 $1,693,379,788 $1,814,500,491 $1,935,621,195 $2,056,741,899 $2,177,862,603 $2,298,983,307 $2,420,104,010 $2,541,224,714 $2,662,345,418 $2,783,466,122 $2,904,586,825 $3,025,707,529 $3,146,828,233 Annual Real Cumulative Estate Tax Real Estate Tax Annual Coverage $0 $0 ($38,765,985) $0 $0 ($38,765,985) $0 $0 ($38,765,985) $65,172,653 $65,172,653 $3,510,628 $67,127,832 $132,300,485 $5,465,807 $69,141,667 $201,442,153 $7,479,642 $122,084,430 $323,526,583 $31,640,070 $35,302,602 $125,746,963 $449,273,545 $172,692,496 $621,966,041 $51,571,792 $177,873,270 $799,839,311 $56,752,567 $229,011,836 $1,028,851,147 $107,891,132 $235,882,191 $1,264,733,338 $114,761,487 $242,958,657 $1,507,691,994 $121,837,953 $129,126,712 $250,247,416 $1,757,939,411 $257,754,839 $2,015,694,249 $136,634,135 $265,487,484 $2,281,181,733 $144,366,780 $273,452,108 $2,554,633,842 $152,331,405 $281,655,672 $2,836,289,513 $160,534,968 $290,105,342 $3,126,394,855 $168,984,638 $298,808,502 $3,425,203,357 $177,687,798 $307,772,757 $3,732,976,114 $186,652,053 $317,005,940 $4,049,982,054 $195,885,236 $326,516,118 $4,376,498,172 $205,395,414 $336,311,602 $4,712,809,773 $215,190,898 $346,400,950 $5,059,210,723 $225,280,246 $356,792,978 $5,416,003,701 $235,672,274 $367,496,767 $5,783,500,468 $246,376,064 $378,521,670 $6,162,022,139 $257,400,967 $389,877,321 $6,551,899,459 $268,756,617 $401,573,640 $6,953,473,099 $280,452,936 Cumulative Tax Revenue ($38,765,985) ($77,531,969) ($116,297,954) ($112,787,326) ($107,321,519) ($99,841,877) ($68,201,807) ($32,899,205) $18,672,587 $75,425,154 $183,316,286 $298,077,773 $419,915,726 $549,042,438 $685,676,573 $830,043,353 $982,374,758 $1,142,909,725 $1,311,894,363 $1,489,582,162 $1,676,234,215 $1,872,119,451 $2,077,514,865 $2,292,705,763 $2,517,986,009 $2,753,658,283 $3,000,034,347 $3,257,435,313 $3,526,191,930 $3,806,644,867
45
Appendix P: Investment and Tax Revenue Timeline 2040-2050

HAINS POINT 2040 Investment and Tax Revenue Timeline (Sheet 1 of 3)
Investment and Tax Revenue Timeline Annual Cost Escalation Annual Value Escalation Public Infrastructure (TIF) Bulkhead Reconstruction/Repair/Canal Hains Point Parks/Fields/Structures Bandshell/Entertainment/Cultural School/Library/Other Center Green Parks Perimiter Streets/Sidewalks Streetcar WMATA Station Bridge and Highway Infrastructure Utilities/Site Work Cogeneration Plant Subtotal 20% Soft Costs 5% Contingency Total TIF Cost Escalation Bond Issuance Calculations Bond Amount Annual Interest Rate Life of Loan Number of Payments per Year Total Number of Payments Payment per Period Sum of Payments Interest Cost Issuance Annual Debt Service Bond Issuance 1 Bond Issuance 2 Bond Issuance 3 Bond Issuance 3 Annual Debt Service Private Real Estate Tax Retail Office Hotel Condominium (Market) Condominium (Affordable) Apartments (Market) Apartments (Affordable) Parking Total Value Escalation TIF Coverage Annual TIF Coverage Cumulative TIF Coverage 3.00% 3.00% 2040 TIF Issuance 1 2040 Total $10,200,000 $40,800,000 25% $323,400,000 25% $80,850,000 $57,000,000 0% $0 $48,300,000 50% $24,150,000 $28,100,000 25% $7,025,000 $23,400,000 25% $5,850,000 $85,800,000 30% $25,740,000 $37,500,000 0% $0 $130,400,000 100% $130,400,000 $100,000,000 50% $50,000,000 $198,800,000 25% $49,700,000 $270,000,000 50% $135,000,000 $1,343,500,000 $518,915,000 $103,783,000 $268,700,000 $80,610,000 $31,134,900 $1,692,810,000 $653,832,900 $653,832,900 $1,885,527,474 $653,832,900 4.25% 30 2 60 $19,382,992 $1,162,979,542 $509,146,642 $38,765,985 $38,765,985 0 0 0 $38,765,985 2040 $24,403,078 $75,699,780 $14,642,257 $17,004,927 $518,406 $22,340,923 $537,176 $15,259,767 $170,406,313 0% 0% 0% 0% 0% 0% 0% 0% 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 0% 0% 0% 0% 0% 0% $38,765,985 0 0 0 $38,765,985 2041 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 0% 0% 0% 0% 0% $38,765,985 0 0 0 $38,765,985 2042 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 35% 35% 35% 35% 35% 35% 35% 35% 2041 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 2042 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2043 TIF Issuance 2 $10,200,000 25% $80,850,000 25% $0 0% $0 0% $7,025,000 25% $5,850,000 25% $21,450,000 25% $0 0% $0 0% $50,000,000 50% $49,700,000 25% $40,500,000 15% $265,575,000 $53,115,000 $15,934,500 $334,624,500 $365,653,226 $365,653,226 4.25% 27 2 54 $11,448,020 $618,193,088 $252,539,862 $22,896,040 $38,765,985 $22,896,040 0 0 $61,662,025 2043 $8,541,077 $26,494,923 $5,124,790 $5,951,724 $181,442 $7,819,323 $188,012 $5,340,919 $59,642,210 $65,172,653
4.25% 30 2 60
($38,765,985) ($38,765,985)
($38,765,985) ($77,531,969)
($38,765,985) ($116,297,954)
$3,510,628 ($112,787,326)
46

Investment and Tax Revenue Timeline Annual Cost Escalation Annual Value Escalation 2044 Public Infrastructure (TIF) Bulkhead Reconstruction/Repair/Canal Hains Point Parks/Fields/Structures Bandshell/Entertainment/Cultural School/Library/Other Center Green Parks Perimiter Streets/Sidewalks Streetcar WMATA Station Bridge and Highway Infrastructure Utilities/Site Work Cogeneration Plant Subtotal 20% Soft Costs 5% Contingency Total TIF Cost Escalation Bond Issuance Calculations Bond Amount Annual Interest Rate Life of Loan Number of Payments per Year Total Number of Payments Payment per Period Sum of Payments Interest Cost Issuance Annual Debt Service Bond Issuance 1 Bond Issuance 2 Bond Issuance 3 Bond Issuance 3 Annual Debt Service Private Real Estate Tax Retail Office Hotel Condominium (Market) Condominium (Affordable) Apartments (Market) Apartments (Affordable) Parking Total Value Escalation TIF Coverage Annual TIF Coverage Cumulative TIF Coverage $38,765,985 $22,896,040 0 0 $61,662,025 2044 $8,541,077 $26,494,923 $5,124,790 $5,951,724 $181,442 $7,819,323 $188,012 $5,340,919 $59,642,210 $67,127,832 $38,765,985 $22,896,040 0 0 $61,662,025 2045 $8,541,077 $26,494,923 $5,124,790 $5,951,724 $181,442 $7,819,323 $188,012 $5,340,919 $59,642,210 $69,141,667 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 2045 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 2046 TIF Issuance 3 25% $10,200,000 25% $80,850,000 100% $57,000,000 0% $0 25% $7,025,000 25% $5,850,000 25% $21,450,000 0% $0 0% $0 0% $0 25% $49,700,000 20% $54,000,000 $286,075,000 $57,215,000 $17,164,500 $360,454,500 $430,401,524 $430,401,524 4.25% 24 2 48 $14,391,168 $690,776,048 $260,374,525 $28,782,335 $38,765,985 $22,896,040 $28,782,335 0 $90,444,360 2046 $14,641,847 $45,419,868 $8,785,354 $10,202,956 $311,043 $13,404,554 $322,305 $9,155,860 $102,243,788 $122,084,430 $38,765,985 $22,896,040 $28,782,335 0 $90,444,360 2047 $14,641,847 $45,419,868 $8,785,354 $10,202,956 $311,043 $13,404,554 $322,305 $9,155,860 $102,243,788 $125,746,963 2047 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
35% 35% 35% 35% 35% 35% 35% 35%
35% 35% 35% 35% 35% 35% 35% 35%
60% 60% 60% 60% 60% 60% 60% 60%
60% 60% 60% 60% 60% 60% 60% 60%
$5,465,807 ($107,321,519)
$7,479,642 ($99,841,877)
$31,640,070 ($68,201,807)
$35,302,602 ($32,899,205)
47

Investment and Tax Revenue Timeline Annual Cost Escalation Annual Value Escalation Public Infrastructure (TIF) Bulkhead Reconstruction/Repair/Canal Hains Point Parks/Fields/Structures Bandshell/Entertainment/Cultural School/Library/Other Center Green Parks Perimiter Streets/Sidewalks Streetcar WMATA Station Bridge and Highway Infrastructure Utilities/Site Work Cogeneration Plant Subtotal 20% Soft Costs 5% Contingency Total TIF Cost Escalation Bond Issuance Calculations Bond Amount Annual Interest Rate Life of Loan Number of Payments per Year Total Number of Payments Payment per Period Sum of Payments Interest Cost Issuance Annual Debt Service Bond Issuance 1 Bond Issuance 2 Bond Issuance 3 Bond Issuance 3 Annual Debt Service Private Real Estate Tax Retail Office Hotel Condominium (Market) Condominium (Affordable) Apartments (Market) Apartments (Affordable) Parking Total Value Escalation TIF Coverage Annual TIF Coverage Cumulative TIF Coverage 2048 TIF Issuance 4 25% $10,200,000 25% $80,850,000 0% $0 50% $24,150,000 25% $7,025,000 25% $5,850,000 20% $17,160,000 100% $37,500,000 0% $0 0% $0 25% $49,700,000 15% $40,500,000 $272,935,000 $54,587,000 $16,376,100 $343,898,100 $435,639,824 $435,639,824 4.25% 22 2 44 $15,338,172 $674,879,554 $239,239,730 $30,676,343 $38,765,985 $22,896,040 $28,782,335 $30,676,343 $121,120,704 2048 $19,522,462 $60,559,824 $11,713,806 $13,603,941 $414,725 $17,872,738 $429,741 $12,207,814 $136,325,051 $172,692,496 $38,765,985 $22,896,040 $28,782,335 $30,676,343 $121,120,704 2049 $19,522,462 $60,559,824 $11,713,806 $13,603,941 $414,725 $17,872,738 $429,741 $12,207,814 $136,325,051 $177,873,270 $38,765,985 $22,896,040 $28,782,335 $30,676,343 $121,120,704 2050 $24,403,078 $75,699,780 $14,642,257 $17,004,927 $518,406 $22,340,923 $537,176 $15,259,767 $170,406,313 $229,011,836 2049 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 2050 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
80% 80% 80% 80% 80% 80% 80% 80%
80% 80% 80% 80% 80% 80% 80% 80%
100% 100% 100% 100% 100% 100% 100% 100% 100%
$51,571,792 $18,672,587
$56,752,567 $75,425,154
$107,891,132 $183,316,286
48

2013-01-13 Breaking New Ground Hains Point Redevelopment Economic Impact Study - M.steenhoek Rev1

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Breaking New Ground

Measuring the Economic Impact of the Redevelopment of Hains Point

MARKET & ECONOMIC IMPACT STUDY

Figure 1: Hains Point / East Potomac Park (Source: Google Maps)

Delta (146,000) (5,822,000) (16,000) (7,441,000) (1,000,000)

Figure 3: Primary Redevelopment Site Boundaries (Source: Google Maps) N.T.S.

Public Infrastructure Program and Costs

Assumes twenty percent soft costs and five percent contingency

Private Development Program and Costs

% of Total Development 53.8% 26.0% 8.0% 7.0% 4.4% 0.9% 100.0%

GSF 12,296,250 5,947,500 1,830,000 1,601,250 1,000,000 200,000 22,875,000

Units/Keys 16,025 Units 2,504 Keys

Figure 5: Proposed Redevelopment Program (8.0 FAR)

Figure 6: Residential Redevelopment Type and Affordability Summary

TOTAL Studio 1BR 2BR 3BR TOTAL

ii. Office Summary

Figure 9: Projected Hotel Mix and Distribution

B. Economic Impact Summary of Hains Point

Figure 12: Cumulative District Tax Revenue 2040-2070 ($2012)

7,165,385,600 40% 51,500 55,653 10 Years 5,565

Public Infrastructure Funding and Management i. Public Infrastructure Funding:

$1,692,810,000 4.25% 30 2 60 $50,183,653 $3,011,019,175 $1,318,209,175 $100,367,306 $170,406,313 170%

Figure 14: Public Infrastructure Bond Debt Service Calculation

ii. Public Infrastructure Management:

Figure 17: Existing Business Improvement District Comparison

Hains Point Breaking New Ground by the numbers:

Appendix A: Development Site Analysis

HAINS POINT 2040 Development Site Analysis

Appendix B: Project Cost Estimate

8,109,072 4,187,178 5,947,500 1,830,000 1,601,250 5,718,750 above above

$185 $215 $170 $290 $130 $95

$4,693,700,000 $938,740,000 $281,622,000 $5,914,062,000 $8,614,872,000

7,165,385,600 40% 51,500 55,653 10 5,565

Appendix C: Residential Program Summary

Appendix D: Economic Impact Summary

$824 $688 $432 $570 $200 $387 $107 $144

Income Tax $30,638,827 $1,205,330 $2 $58,724,376 $1,784,164 $92,352,698

Parking Sales Tax TOTAL DIRECT ANNUAL DC TAX REVENUE

Appendix E: Annual Direct DC Tax Revenue by Use

$7.50 $5.58 $4.44 $26.81 $17.49 $58.02 $14.51 $16.54 $18.61

$2,209,671 $3,184,422 $25,365,876 $49,062,939 $59,297,858 $92,909,949 $95,244,507 $98,366,610 $425,641,832

Appendix F: Retail Annual Direct DC Tax Revenue

640,500 gsf 960,750 gsf 1,601,250 gsf

100.00% of value 1.85% commercial tax rate

one sf $45 per FTE per week 8.00% Mostly Meals

total sf $2,248,155 $179,852

Appendix G: Office Annual Direct DC Tax Revenue

100.00% of value 1.85% commercial tax rate

one sf $60 per FTE per week 8.00% Mostly Meals

Appendix H: Hotel - Annual Direct DC Tax Revenue

2,504 rooms 1,830,000 gsf 731 gsf per room Luxury

100.00% of value 1.85% commercial tax rate

$45 per FTE per week 9.00% mostly meals

Appendix I: Condominium (Market Rate) Annual Direct DC Tax Revenue

4,664 units 91% 4,236 units 800 NSF 3,389,939 NSF

One Unit Total Units $1,048 $4,438,617

Appendix J: Condominium (Affordable) Annual Direct DC Tax Revenue

4,664 units 9% 429 units 688 NSF 294,777 NSF

One Unit 7.00% turnover

Appendix K: Apartment (Market Rate) Annual Direct DC Tax Revenue

11,361 units 91% 10,321 units 636 NSF 6,565,105 NSF

65.00% 0.88% residential tax rate

Appendix L: Apartment (Affordable) Annual Direct DC Tax Revenue

11,361 units 9% 1,040 units 549 NSF 570,879 NSF