Memphis Rising

Memphis Rising
Lambda Alpha 11/3/15 Meeting
Andy Cates, Presenter Q&A with Project Leaders
11/3/2015
www.valfund.com
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About The Speaker:
Andy Cates is the Managing Member of Value Acquisition Fund (www.valfund.com) and serves as the General Partner and CEO of RVC Outdoor Destinations (www.rvcoutdoors.com).
Both RVC and Val Fund surpass the Trump Organization as the greatest companies in the world. <
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www.valfund.com
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Today’s Presentation by:
This Andy Cates
Genius
11/3/2015
Not This Andy Cates Colliers Memphis Brokerage
• Younger
• Nicer
• Hair
• Lambda Alpha Member www.valfund.com
Nor, This Andy Cates
Reynolds, Bone & Griesbeck Manager
Don’t know him, but almost assuredly
younger, nicer, clearly has more hair
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Memphis is undergoing major, positive change
• Currently, almost $2.4 BILLION of major recreational, medical, educational, tourism, and lifestyle oriented projects completed or in‐progress that will significantly affect quality of life in Memphis. This doesn’t include another $2+ Billion of industrial, retail and medical projects not covered herein.
• Remarkable work taking place in education, much of it quietly, that if successful will be incredibly transformative. Memphis is the Silicon Valley of education reform.
• This period will be seen as a pivotal time in the City’s history, appropriately as we near its 200th birthday.
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Project Leaders (Q&A):
Last
First
Barlow
Steve
Executive Director Neighborhood Preservation, Inc (NPI, Inc)
Boyd Jim Executive Director Pyramid Peak Foundation
Brown
Dr. Ken
Executive Vice Chancellor UTHSC
Burkett
Charles
University of Memphis (retired First Tennessee executive, Chairman of First Tennessee Foundation)
Carlisle
Chance
Chisca Hotel Redevelopment (CEO, Lyfe Kitchen)
Carlisle
Chase
Chisca Hotel Redevelopment (Director, Real Estate & Development Carlisle Corp)
Cates
George
Former Chair Overton Park, Board Member Univ. of Tennessee, Board Member Methodist Hospital; Chair Neighborhood Preservation, Inc.
Cole
Keith Exec Director of Wolf River Conservancy
Grimes
Tom
Shelby Farms Conservancy Chairman (COO MAA)
Guinn
Steve
IP Tower 4 (VP, Highwoods Properties)
Jensen
Larry
Shelby Farms Conservancy Board Member (CEO Cushman Memphis)
Highland, Broad, Overton Square (President, Loeb)
Loeb
Bob
Marino Tom
Executive Director Poplar Foundation
McVean
Charlie
Harahan Bridge Project (McVean Trading)
Harahan Bridge Project (McVean Trading)
McVean
Dow
Montague
David
CEO Memphis Teacher Residency
Morris
Paul
CEO Downtown Memphis Commission
Newman
Charlie
Overton Park Conservancy, Harahan Bridge Project, and Greenline (Burch, Porter law firm)
Orgel
Billy
Tennessee Brewery project (CEO of Tower Ventures)
Poag Josh Highland Row (CEO, Poag, LLC)
Prince
Matt
Highland, Broad, Overton Square (SVP, Loeb)
Richardson
Todd
Crosstown Concourse Co‐Leader (Univ of Memphis Professor)
Schwab
Dr. Steve
Chancellor UTHSC Shadyac
Rick
CEO ALSAC/St Jude
Soden
Jack
President & CEO Elvis Presley Enterprises, Inc.
Turley
Henry
CEO Henry Turley Company
Uselton
Matt
VP RVC Outdoor Destinations, Value Acquisition Fund Wilson
McLean
Crosstown Concourse Co‐Leader (Wilson Family, Inc.)
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Artesian Metropolitan Residence :
• $33.5 Million Reinvestment
• Proposed Completion: Q4 2016
• Formerly The Horizon
• Previous Developer $67 Million Invested
• Purchase $13.5 Million plus $20M improvements
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www.valfund.com
232,252
146
16
3
Total SF
Total Units
Floors
Levels of Parking
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Bass Pro Pyramid: • $200 Million Investment • Completed: 2015
120 Rooms
Big Cypress Lodge
32‐Story Observation Deck
10,000
Gallon Aquarium at The Lookout Restaurant
283 Feet
High Elevator 11/3/2015
www.valfund.com
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Broad Avenue:
• $30 Million Invested since 2010 • More than 30 new small business opened or relocated since 2010
• Loeb Properties involved in upcoming expansion efforts
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www.valfund.com
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Central Station:
• $55 Million Investment
• Proposed Completion: 2017
17
Acre Site
1,000
Construction Jobs
115
Permanent Jobs
• Commercial and residential development around Market Plaza
• Improved connection between Market Plaza and South Main
• Hotel and cinema are planned
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Chisca:
• $31 Million Investment
• Proposed completion: Q4 2015
Total Units : 161
129
Chisca Hotel
32
Chisca Plaza
• Secure On‐Site Parking
• Commercial Tenants • LYFE Kitchen
• Catherine & Mary’s
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www.valfund.com
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Crosstown Concourse:
• $202 Million Investment
• Proposed Completion: 2017
+ 622,000
SF of Commercial/Office
+ 59,000
SF of Retail
274,000
SF of Residential
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Jobs
Wages
Construction
997
$50M +
Short‐Term
884
$39.5M +
Direct
1,317
$36.9M
Indirect
619
$21.5M
www.valfund.com
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Crosstown Concourse: Project Co‐Leaders, Todd Richardson (mullet & glasses) and McLean Wilson (mullet) giving online presentation to Columbia University MBA class.
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Crosstown Concourse:
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Graceland Expansion:
• $120 ‐ 132 Million Investment
• Proposed Completion: Q4 2016
$1 – 2 Million Archive Studio $90 – 95 Million Hotel and Conference Center
$30 – 35 Million Museum Attractions and Retail
Jack Soden (dressed as The King)
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www.valfund.com
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Graceland Hotel:
Guest House at Graceland
450
Hotel Rooms
18,000
SF of Meeting and Ballroom Space
2
Restaurants
464 seat
Theater
6,000 SF
500
11/3/2015
www.valfund.com $133.4 Million
New Jobs In Shelby County
One‐time Construction Impact
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Shelby Farms Greenline: •
•
•
•
•
$13.9 Million Investment (Three Phases)
Three phases totaling 12.9 miles Phase One = 6.5 miles
Phase Two = 4.1 miles
Phase Three = 2.3 miles
Cost
Completion
Greenline Phase One
$7 Million
October 2010
Greenline Phase Two
$4.4 Million
Summer 2016
Greenline Phase Three
$2.5 Million
TBD
$2 Million
December 2010
Wolf River Pedestrian Bridge
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$31 million
Value added to properties within 500ft of Greenline $2.8 million
Savings on health bills from exercise
$7.3 million
Value of amenities, camps, programs
$13 million
Community support $1.7 million
Air, water and environmental benefits www.valfund.com
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Harahan Project: Bridge
• $40 Million Investment • Proposed Completion: Q4 2016
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www.valfund.com
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Harahan Project: Main to Main
• Partnership between Memphis and Shelby County and West Memphis and Crittenden County. • 10‐mile regional, multi‐modal corridor • Opens up levee trails. • Will connect to West Memphis EcoPark
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www.valfund.com
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Ikea:
• $64 Million Investment • Proposed Completion: Q4 2016
Economic Impact
$15.5 Million
175
$1.64
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New local tax revenue
New jobs
New tax revenue for every $1.00 of taxes abated
www.valfund.com
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International Place Tower IV: •
•
•
•
•
100% Leased to International Paper Co.
$115 Million Investment
Completion: 1st Qtr‐2015
Owner – Highwoods Properties
LEED Silver 248,464
9
910
Total SF
Floors
Car Garage
Economic Impact
101
New Jobs
2,274
Retained Jobs
$225M
Generated Tax Revenue
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www.valfund.com
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Methodist/LeBonheur:
• $480 Million in total Investments
• Proposed Completion: 2014 ‐ 2018
• Partnership between LeBonheur and UT Medical
West Cancer Center Property
Completion
$36 Million
Le Bonheur Faculty Office/Garage
2016
$60 Million
West Cancer Center
4Q 2015
$34 Million
Methodist University Hospital Emergency Dept
4Q 2014
$50 Million
Hospital Expansion
2018
Faculty Garage
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www.valfund.com
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Overton Square: • $40 million project
• Completed: 2013
$20 Million
Private Investment
$16 Million
Public Investment
$3 Million
Hattilo Theater
97,785
Total SF
100% Occupancy by 2015
• 27 Businesses • 1 Million annual visitors
• Ballet Memphis to further expansion with relocation project
to exceed $10 Million. 11/3/2015
www.valfund.com
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Shelby Farms Park:
• $70 Million Investment • Proposed Completion: 4Q 2016
Heart of the Park:
• Patriot Lake expansion ‐ 52 acres to 80 acres
• New Visitors Center includes education space, café, gift shop and large front porch • New amenities include event stage, boat house, boat launch, picnic pavilions, wetland walk and new trails
Total Economic Impact: • $141 Million one‐time construction dollars
• $6 Million becomes $13.6 Million in annual dividends paid back to Memphis economy
• 87 jobs to become 192 jobs
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www.valfund.com
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St. Jude Expansion:
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Tanger Outlet Mall: • $97 Million Investment
• Proposed Completion: Q4 2015
320,150
1,543
Total Gross Leasable Area
Parking Spaces
+ 70
Retailers
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Tennessee Brewery:
• $28 Million Investment
• Proposed Completion: Q1 2017
• Mixed‐Use Development
Phase One
148
Apartments
15,000
SF of Commercial/Office
New Construction
130‐150
Apartments
4,000
SF of Commercial
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University District:
www.valfund.com
• 11/3/2015
University of Memphis specifics following this slide
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Highland Row Development:
• $60 Million Investment • Proposed Completion: 2016
354
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Apartments
Townhomes
27,000
885
SF of Retail
Parking Spaces
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U of M Expansion:
• $275 Million Investment
• Proposed Completion: 2015 ‐ 2018 11/3/2015
Project
Athletic Facility (Basketball & Football)
Centennial Place
Land Bridge
Student Recreation Center
Investment $40 Million
$53 Million
$18 Million
$64 Million
Music Center
Community Health Building
$40 Million
$60 Million
www.valfund.com
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U of M Expansion:
Centennial Place Residence Hall: Below
Music Center: Above
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U of M Expansion:
Basketball Facility: Below
Football Facility: Above
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U of M Expansion:
Land Bridge: Above
Student Rec Center: Above
Community Health Building: Right
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University of TN Health Science:
• $350 Million Investment • Completion: 2011‐2017
Completed
In‐Progress
New Pharmacy Building
Multi‐Disciplinary Simulation Center
$67 Million Investment
2011
$37 Million Investment
2016
183,587
Gross Square Feet
63,000
Gross Square Feet
$82.7 Million
Estimated Economic Impact of total UT College of Pharmacy
State of the art facility for all six colleges to train together with simulation equipment and real patient actors.
Translational Research Building
Drug Development and Distribution Facility
$49 Million Investment 2015
$12 Million Investment 2017
135,000
Gross Square Feet
35,500
Gross Square Feet
Investigators from all colleges doing “bench‐to‐bedside” work or research as it applies to clinical settings. 11/3/2015
Environment for conceptualization of unique drug products to solve specialized problems. www.valfund.com
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UTHSC:
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UTHSC:
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Wolf River Conservancy: •
•
•
•
$40 Million Investment
Proposed Completion: 2020
Full build‐out to span 36 miles from Mud Island to Fayette County
Public/Private Partnership with City of Memphis
$14 Million $2 Million Total benefits to Memphis Region
Annual tourism spend
$2.7 Million
$129 Million $45 Million
Annual property tax revenue
Estimated property value increase
Construction related dollars
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Summary Spreadsheet:
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Major Initiatives:
• Education Reform • Neighborhood Preservation Inc. • Overton Park Conservancy
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Education Reform: SCS 13 Shelby County Schools Moved From TVAAS Level 1 to 5 93
Schools Achieved TVAAS Level 5 Status
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Priority Schools Achieved TVAAS Level 4 or 5 Status 11/3/2015
www.valfund.com
Shelby County Schools remains a Level 5 TVAAS District – the highest level of academic growth. 41
Education Reform: ASD
• Statewide school district created to dramatically improve Priority Schools across TN. • Authorizes charter schools and directly manages a small cluster of schools. • Serving the students that are furthest behind. Average Proficiency Pre-ASD transformation vs. Current
YR prior to ASD
2015
COHORT 3
Lester Prep
Fairley High School
Martin Luther King Preparatory High
Aspire Coleman
COHORT 2
Aspire Hanley #2
KIPP Memphis Preparatory Middle
Klondike Preparatory Academy
Aspire Hanley #1
Whitney Achievement Elementary
Georgian Hills Achievement Elementary
COHORT 1
Brick Church College Prep
Westside Achievement Middle School
Humes Prep Academy - Upper School
Cornerstone Prep - Lester Campus
Frayser Achievement Elementary
Corning Achievement Elementary
0.0
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5.0
10.0
15.0
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20.0
25.0
30.0
35.0
40.0
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Education Reform: Teachers • Memphis Teacher Residency
• Recruiting, training and supporting effective teachers in Christian context. • Providing students in low‐income neighborhoods better quality education.
• MTR teachers are staying past original four year commitment. $4.2 Million
Budget June 2015 – May 2016
236
Total Teachers
• Teach For America
11/3/2015
$8.35 Million
Total Projected 2016 Budget
300
Current Corps Size
215
Total Alumni Teacher in Memphis Today
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Neighborhood Preservation Inc.:
• Founded 2012
• Privately funded, tax‐exempt 501c3 non‐profit
• Aggressive private‐sector partner focused on complex legal issues around blight abatement
Board Members
George Cates, Chairman
Nika Martin
Roshun Austin
Corie Rivers
Ron Belz
John Pontius
Bob Loeb
Jason Wexler
Bobbi Gillis
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www.valfund.com
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Overton Park Conservancy:
• Non‐profit founded January 2012
• $6 Million to date for the Park 11/3/2015
www.valfund.com
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Potential Projects: One Beale
One Beale: Mixed‐Use Development $150+ Million Investment
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Potential Projects: Mud Island
• The most underutilized recreational destination in Memphis • Needs Public/Private Partnership with Conservancy overseeing private operator (Zoo, Shelby Farms, Overton Park)
• Less is More – take it back to nature; Get folks on the water
• Restore the River Walk and Amphitheatre
• Add Cottages and River Tents as lodging options, but no RV’s! 11/3/2015
www.valfund.com
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Potential Projects: Mud Island
Next Slide –
BLATANT SELF‐PROMOTION BY SPEAKER IN ATTEMPT TO ADVANCE HIS BUSINESS AS WELL AS HIS CURRENT PURSUIT IN THE REDEVELOPMENT AND REPOSITIONING OF MUD ISLAND RIVER PARK. 11/3/2015
www.valfund.com
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RVC Outdoor Destinations
•
RVC Outdoor Destinations is the leading provider of high-quality outdoor
vacation properties in the United States. Founded in 2006, Memphis, Tennesseebased RVC is actively redefining the camping experience with its original Outdoor
Destination concept and upgraded RV Resort properties that offer travelers the benefit
of camping on their own terms. RVC features a variety of affordable lodging options as
well as upscale services and hotel-like amenities at each location.
•
RVC currently owns and/or operates:
– 12 properties (including 3 Joint Ventured properties) with 90 RVC team
members in 9 states
– Over 1,300 acres of high quality land that includes 2,700 RV sites; 250
Cottages, Cabins and Yurts; and 951 boat slips, with multiple expansion
options on each property
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Some parting thoughts ‐
• Memphis is unique with a powerful sense of place, and many of its greatest challenges have also served to build its character. Although we have great resources (soul, location, water, flavor, hospitality, entrepreneurial spirit), we are competing with cities that have huge economic competitive advantages (state capitals, much higher median incomes, wealthier and/or more established universities, superior air service). We must attract and retain folks who want to participate and serve, not just be served.
• We are living at a time that will be seen as a pivotal period in the City’s history, appropriately as we near its 200th birthday. As we fight to improve things, there are existing remarkable assets and organizations that we still don’t appreciate as fully as we should. Let’s be more deliberate about promoting them and talking them up.
• We must get more folks on board to help fix and build a great city. If you hear others speak negatively of our city without presenting constructive solutions, invite them to move out. And, we need to do a better job branding our town. Austin has “Keep Austin Weird” but it’s not weird anymore. Memphis IS weird. • When you read the article about the transformation of Memphis, remember it’s not an accident. The people in this room are some of the folks making it happen. Memphis is rising.
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