Construction Project

Historic rehabilitation and adaptive re-use consistent with guidelines of “Downcity Providence: Master Plan for a Special Time and Implementation Plan” Mixed Use Development:

Floor One: Citizens Bank downtown retail branch;

Floor Two: AS220 Gallery, artists’ studios and specialized space.

PROJECTED DEVELOPMENT COST                                                                        $615,810

Construction is intended to include new building systems, code and life-safety compliance, and the “re-discovery” and restoration of the architecturally and historically significant facade. Tenant fit out and improvements to be completed by tenants.

KEY COMMUNITY BENEFITS

Restoration of an historically significant downtown structure that has suffered from years of neglect and abuse.  Stabilization and security of a building that is a key gateway to downtown and the Arts and Entertainment District.  Enhancement of the City’s tax base and revenue by an improved property which shall remain on the tax rolls.  A mix of uses that will, in combination, provide 24-hour vitality and presence within the historic downtown retail core; and attract a clientele that will contribute to the goal of a safe and user-friendly downtown.

ANTICIPATED TIMETABLE

Assuming developer selection has been completed by December 1997, the following timetable is projected:

Pre-Construction Tasks

Design and engineering,

design review and permitting,

construction cost estimating and solicitation of bids,

securing financing                                                                                  1/98 - 5/98

Issuance of a Building Permit                                                                  5/98

Construction                                                                                          5/98 - 9/98

Certificate of Occupancy/Lease Up                                                           9/98

DEVELOPMENT TEAM

AS220

Development

Hogan/Macaulay

Architecture/Design

The Stone Company

Construction Management

Upon designation, this team will be expanded to include engineering, legal and other professionals.  Proposed Reuse

In an effort to identify an appropriate re-use for the Packard Building, we explored a variety of uses ranging from restaurants, cafes, and jazz clubs to a grocery store. Our due diligence led us to conclude that while such uses had initial appeal, each encountered significant constraints because of size limitations of the space, lack of on-site parking, and excessive renovation or operating costs.  The AS220 proposal calls for a mixed use for the Packard Building that includes a retail service component and arts usage for this historic structure located at 202-206 Washington Street. The newly renovated and restored Packard Building will include a branch of Citizens Bank as the street level tenant; the second floor will house a more publicly accessible AS220 Gallery and several new artist studios.

I.  USES

A.  First Floor

Citizens Bank, a major and highly regarded regional financial institution, is the proposed tenant for the first floor space which encompasses approximately 2,500 square feet, exclusive of the basement. It is intended that Citizens will relocate to the Packard Building its existing branch, currently located at 87 Empire Street, just to the southeast of the AS220 complex. (See Citizens Lease Proposal contained in the financial section.)

B.  Second Floor

The second floor will accommodate an expansion and enhancement of AS220 and its many arts-related uses.  Our plan calls for the relocation of the AS220 Gallery to the Packard Building so that the Gallery may be accessed directly from Washington Street. This reconfiguration will promote pedestrian traffic along Washington Street and forge a connection between the Empire Street Arts and Entertainment uses and this key Washington Street block anchored by Trinity Repertory.

On the remainder of the second floor of the Packard Building, we will introduce a type of art-making space that will be a first in downtown Providence. Our plan calls for an Artists Print Making Studio that will specialize in the design and creation of limited edition etchings, monoprints, silkscreened works, plus wood and linoleum cuts.

Several audiences will be served by this space:

Patrons of our downtown. In city after city, artists at work are an attraction for tourists and visitors to downtown, as well as those who are in the city on a daily basis. The second floor print making studio will function as an “open studio,” regularly accessible to visitors who wish to watch artists plying their craft and have the opportunity to purchase a limited edition work of art. A larger version of this concept, known as the Torpedo Factory, located on Alexandria, Virginia, attracts upwards of 800,000 tourists annually.

Area artists. Both established and newly graduated artists need shared, community accessible space that is properly equipped and outfitted in order to produce their work.  Continuing Education Subscribers. Classes and courses would be available at the Print Making Studio, and these will attract students of all ages and skills. Given that such courses are typically evening functions, the building will emanate activity will into the night time hours.

C.  The Packard Building: Windows of Activity

The first and second floor windows of the Packard Building are exceptional in their size, their expansiveness and their number. This factor, plus the building’s location in at an important gateway to downtown, in general, and their Arts and Entertainment District, in particular, requires that special attention be paid to window treatment and the activities that take place behind those windows. The thrust of this entire proposal is the layering of arts related uses that will bring liveliness and animation to this site in a way that engages and draws in large and varied audiences from early in the day until late in the evening. Literally and figuratively, the windows of the Packard Building will mirror the strong and vibrant arts theme to be conveyed by the new uses and reinforce the Packard Building as an arts destination.

At the street level, the windows of the Citizens Bank will contain a unique display of visual art which will represent an introduction to the upstairs uses-the gallery and print making studio. The second level AS220 gallery will handle the purchase and sale of art displayed on the street level, and will continue to present constantly changing exhibits. As is our current practice, our gallery openings will be scheduled in the evenings, which adds to night time traffic in downtown. Visual art openings are very festive and animated events. When viewed from the street level, looking up to the second floor Packard Building windows, there will be an enormously inviting pedestrian appeal.

The artists at work in the print making studio adds still another dimension of activity and vitality. Ten artist work stations are planned, encompassing a full range of print making mediums, ranging from etchings to wood cuts.  The space and the artists will be artists will be accessible to the public on a regular basis. This venue is expected to be added to the Art Trolley tour, as well as to the schedule of other providers of downtown tours, such as the Providence Preservation Society.

Remembering the unique importance of the expansive Packard windows, we expect to program activities in the windows throughout the year. “Windowerx,” an initiative by Groundwerx Dance Theatre, which typically pairs a visual and performing artist, is a superb example of a downtown window performance. We would expect to schedule such performances at particularly appropriate times, such as during Art Trolly nights, special occasions at Trinity Repertory Theatre or the Providence Public Library, First Night, etc..

When the Packard Building was constructed in the early 1900’s, its ornate design and expansive windows represented a very well crafted and intentional effort to showcase the offerings inside this handsome building.  AS220’s proposal for the adaptive re-use of the historic Packard Building is grounded in the same philosophy-to showcase the design achievements of the arts community so as to attract and engage the public at large and enhance their downtown experience so that it is a most worthwhile and enriching cultural encounter.

II.        DOWNCITY PROVIDENCE: MASTER PLAN FOR A SPECIAL TIME AND IMPLEMENTATION PLAN

The Downcity Plan envisions that key components to the revitalization of the downtown will be: providing opportunities for artists, maintaining the historic character of the district, and night-time illumination and activity. Our proposal furthers these efforts in the following ways:  Expanded services for artists provided by AS220 will make the initiative for resident artists in Downcity more viable. The Packard Building will also allow AS220 to be a more visible presence in the city, with an inviting new entrance directly across from the Trinity marquee. In collaboration with Citizens Bank, a storefront gallery will be created as part of a special Citizens “Art Bank” concept for their branch, reaffirming that Citizens is “Not Your Typical Bank.”

The historic character of the district will be enhanced through cleaning and restoration of the glazed terra-cotta, and building new storefronts and entrances in keeping with the original character of the building.  With the planned change of both Washington and Empire Streets to two-way traffic, this intersection will become an important entrance to the Downtown Arts and Entertainment District. The Packard Building in its restored condition will, paired with Trinity’s Majestic Theater, form a stunning gateway of creamy polychrome terra-cotta. This will be enhanced at night by illuminating the building in tandem with a lit marquee at the generous new entrance to AS220, opposite the Trinity marquee.

This night-time activity of the AS220 artists space and gallery will add to the enlivening of the streetscape, as will the lit storefront gallery, which will encourage theater goers and passers-by to linger and visit the upstairs gallery. Thanks to the large expanse of glass at the second floor, the AS220 evening activities will also help enliven the street below. A roof garden planned for the building will be visible from the street and will be subtly lit to further lend a sense of vitality.  In tandem with Citizens Bank, AS220 will be able to provide the stability of a strong and committed commercial anchor combined with the vitality of the arts community. This innovative combination will reinforce the special character and identity of the district as a place of growing creativity and vitality.

While the focus of this submission is the adaptive re-use of the Packard Building in response to the RFP that has been issued, we regard the restoration and rehabilitation of this historic structure as part of the larger and more comprehensive vision for Providence’s Arts and Entertainment District and for the AS220 Complex. While still a work in progress, this vision has been crafted over the past year through a very collaborative effort that has involved the arts community, members of the public and private sector and Empire Street neighbors. In summary, here are the components of this vision.

A.  Re-Use of Present Citizens Bank Branch at 87 Empire Street

A Citizens Bank branch in the Packard Building represents a relocation from the present branch site at 87 Empire Street. This is an historically significant building that has a strong architectural and visual presence in the middle of the Empire Street/Arts and Entertainment block. Discussions involving Citizens Bank, the Policy Department of the City of Providence and the Superintendent of Schools have been underway with regard to the re-use of this building as a School for the Performing Arts. The location is superb, given the proximity of the site to Trinity Repertory Theatre, the Providence Performing Arts Center, Groundwerx Dance Theatre, Perishable Theatre, AS220, and the Providence Public Library, as well as numerous galleries and other cultural resources located in downtown Providence.

B.  Expansion of Perishable Theatre and Groundwerx Dance Theatre

Perishable and Groundwerx are based in the AS220 Complex in space that abuts the above Citizens Bank. During their four years at AS220, Perishable and Groundwerx have grown considerably in their performance and educational offerings with the result that they have outgrown their existing space. An increase in space at the current site can be achieved by a three-floor addition to the rear of their present building. This will accomplish several things: greater capacity and sustainability for both organizations; a doubling of needed classroom and rehearsal space; and the creation of an improved facade and lobby and much-needed additional seating for Perishable’s mainstage performance space. The expansion will also accommodate an elevator, insuring that the entire AS220 Complex will be handicapped accessible.  This contemplated expansion of Perishable and Groundwerx is directly related to the disposition of the Citizens Bank building because the land on which the proposed addition would occur is part of the Citizens site.

C.               The AS2000 Campaign: Completion of Building Improvements; Debt Retirement and the Creation of an Endowment 

AS220’s re-development of the block known as 95-121 Empire Street has brought stability and new life to what was a severely blighted and almost entirely abandoned structure. Since project completion in 1993, the Complex has been 100% occupied. The combination of uses, users and programming results in a kaleidoscope of activities that has repeatedly received regional and national attention and recognition as both an artistic model and as a demonstration in successful downtown revitalization.  For the AS220 Complex to continue to serve the arts community and contribute to the effort to reinvigorate our downtown, resources must be devoted to the present physical plant and to retirement of existing debt. The price tag for the Groundwerx/Perishable expansion, the addition of an elevator to the Complex, improvements to the existing facade and some building systems along with retirement of existing debt and the creation of an endowment, is $1,500,000. To achieve this, it is AS220’s goal to launch a capital campaign, the first phase of which would begin in 1998.  While the Packard Building is a separate and distinct undertaking that is self-supporting, it does represent the first step in the chain of events outlined above. As such, the initiation of the Capital Campaign, to be known as AS2000, will be linked to the effort to restore the Packard Building and establish this architectural gem as a visual cornerstone in Providence’s Arts and Entertainment District.  Financial

I.          DEVELOPMENT COSTS (USES)

A.         Acquisition                                                                              $250,000

B.         Construction

Preliminary construction cost estimates have been provided by the Stone Company with input from Architects Hogan and Macaulay as well as the proposed users. Construction assumes the replacement of building systems, such as HVAC, electrical and plumbing, roof and windows and compliance with code and life safety requirements. Our estimate also factors in the restoration of the exterior of this historic building so as to comply with the requirements of the Rhode Island Historical Preservation Commission and the standards of the U. S. Secretary of the Interior. This effort will require special attention with regard to windows as well as the overall treatment of the facade itself. Appropriate restoration of the Packard Building serves two goals: the community regains a visual treasure that is rich in handsome architectural detail that has for too long been concealed and mistreated; and the development can benefit from the equity raised through historic tax credits.  Our construction estimates are predicated on the delivery of “shell” space with improvements and fit out to be completed by the tenants.

Construction per square foot estimate:  $45 per sf x 5,800 sf =      $261,000

Construction contingency: $5 per sf x 5,800 sf =                           $29,000

Total Construction:                                                                                             $290,000

C.         Soft Costs

Our soft cost budget includes professional fees; permitting; costs associated with financing and closing; survey and appraisal; insurance and tax credit certification costs.  Soft Costs: $72,200

Soft Cost Contingency @ 5%:                                                                  $3,610

Total Soft Cost                                                                                       $75,810

Total Projected Development Cost                                                           $615,810

II.                SOURCES OF FINANCING

Proposed sources of financing for the projected development costs of $615,810 are as follows:

A.         Debt Financing                                                                                    $400,000

Based on preliminary discussions with prospective lenders and the projected revenue stream, the completed development can support debt financing in an amount of $400,000. Calculations are based on a blended interest rate of 7% . This incorporates funding opportunities with the Rhode Island Historical Preservation Commission, financing from which carries an interest rate that is 2 percent below prime; and conventional financing rates.

B.         Equity                                                                                                  $215,810

There are several sources of equity, one of the most significant being the historic preservation tax credits.  These are federal income tax credits which can be applied directly to the reduction of tax liability. There is a very strong market for historic tax credits because they represent one of the very few remaining tax reduction opportunities. The credits are based on 20% of the development costs (certified by the U.S. Secretary of the Interior), exclusive of land costs. Assuming an allowable Packard Building cost of $365,000 (development costs minus acquisition) and based on the current market, the credits can be expected to yield between $58,000 - $73,000.

Projected value of tax credits:                                                                 $ 65,000

The sources of remaining equity include grants, fundraising events, sales of the AS220 Building Box:                                                                                                            $150,000

Total Sources                                                                                         $615,810

III.OPERATING PRO FORMA

A.         Revenue

Floor One: The proposed tenant for the first floor of the restored Packard Building is Citizens Bank, which would operate a branch at this site. Included in this submission is a Proposal to Lease by Citizens Bank which calls for a ten-year term with three five-year renewal options. Base rent in years one through five is $16 per square foot. This is a triple net lease with the tenant paying its own utilities as well as its pro rata share of property taxes.

Floor Two: Floor two will accommodate AS220/arts related tenants and will contain individual and group work studios. Projected rents are $5 per square foot in years one through five; and $7 per square foot in years six through ten. These rents are consistent with current AS220 studio rents as well as other upper-floor spaces in the downtown retail core.

B.         Operating Expenses

The ten-year operating budget included in this submission is based on AS220’s four-year operating history in its own 22,000 square foot complex, which abuts the Packard Building. Given the triple net nature of the first floor lease, the operating budget for the Packard Building is relatively uncomplicated.

AS220/Lederer-Packard Building

Development Budget

Development Budget

For Packard Building: Uses

A.         Acquisition                                                                                 $250,000

Construction Costs 5,800 Square Feet

Construction:                             $45 PSF cost                              $261,000

Contingency:                             $5 PSF cost                                            $29,000

B.         Total Construction                                                                      $290,000

Soft Costs

Professional Fees                                                                                   $27,500

Architecture and Engineering

Legal, Tax Credit Certification

Appraisal, Survey, Insurance                                                      $6,700

Costs Associated with Financing                                                   $15,000

Closing Costs, Interest during Construction,

Lender’s Counsel and Inspection Fees

Permits and Fees                                                                                    $3,000

Development Overhead                                                              $5,000

Developer’s Fee                                                                         $15,000

Subtotal Soft Costs                                                                                 $72,200

Soft Cost Contingency (5%)                                                        $3,610

C.         Total Soft Costs                                                             $75,810

Total Uses                                                                                             $615,810

Development Budget

for Packard Building: Sources

Debt Financing                                                                           $400,000

Equity

Historic Tax Credits

Grants

AS220 Building Box

Fundraising                                                                                            $215,810

Total Sources                                                                             $615,810

Five-Year

Operating Pro Forma

Our Proposal also contains a full projected pro forma for the use of the space.  The pro forma is followed by a Proposal for Lease from Citizens Financial Group, which matches our pro forma’s expectations. These documents, unfortunately, are not easily adaptable to the web. If you really want to take a look at them, give us a call at 831-9327 or stop by our offices, Mon-Fri 10am-7pm.  Development Timetable

Our timetable for the re-development of the Packard Building assumes that developer selection has been completed by this December. Key pre-production tasks, such as engineering and design, design review, cost estimating, financing submissions and zoning and permitting, are projected to require five months, that is, from January to May.

Demolition is to begin by May with the issuance of a building permit to follow shortly. Our schedule calls for a construction period of approximately four months. The timeline which follows details the pre-construction tasks as well as the construction period.  Tenant fit out will follow construction completion by The Stone Company. Full completion of the development and occupancy is projected to occur from September to November, 1998.

Our Proposal also contains a timetable prepared by Stone which, unfortunately, is not easily adaptable to the web. If you really want to take a look at this, give us a call at 831-9327 or stop by our offices, Mon-Fri 10am-7pm.