681 Florida St Considerations for multitenant arts use What is - - PowerPoint PPT Presentation

681 Florida St

Considerations for multitenant arts use

What is Nonprofit Shared Space?

2+ organizations at a physical site

Below market

• r stabilized

rents Reduced cost and/or higher quality shared services & amenities Often distinguished by intentional collaboration Sometimes to centralize a set

• f human

services

Theme Center 32% Multi- Sector 45% Service Center 23%

Co-location

Intentional clustering of organizations. Composed of multiple (2+) primarily nonprofit tenant organizations, can be mixed with retail, housing, offices.

Community Hubs

Includes community programming and services, not just for building tenants. Typically includes accessible / public community space or common areas for formal & unstructured programming.

Coworking

Sharing of workspace among freelancers and independent workers and small

• rganizations. Membership based,

charged by the hour, hot desking/hotelling

In 2011, the Nonprofit Centers Network conducted an assessment of organizations sharing facilities in the US and Canada. The study found a very broad range of benefits associated with centers including:

Benefits of Nonprofit Centers

Reduced and/or stabilized rents Recruit and Retain top talent Reduced costs by sharing services

Organizational Efficiencies

Increased knowledge Increased

• rganizational

capacity Increased IT capacity Better location New community spaces/ services Capacity building assets

Organizational Effectiveness Community Infrastructure

Common Shared Amenities

Conference Rooms/ Phone Booths Common Lounge Bike Parking Shower/Locker Facilities Common Kitchen Copy/ Mail room

Shared Amenities Considerations

Reservations/ Bookings Cleaning/ Maintenance Billing/ Usage Stocking/ Management

Common Shared Services

Internet IT Services Human Resources Bookkeeping Phone Reception

Shared Services Considerations

Policies & procedures to manage Additional administration staff & expertise Billing/ Usage Technical Support Issues

Tides Thoreau Center

Ninth Street Center for Independent Media

Ed Roberts Campus

How is Nonprofit Shared Space developed?

Who in your network would want to see this project succeed? Map your potential partners.

Mission Driven Space

Engaged Board Funding Partners Community Stakeholders Government Potential Tenants Potential co-owners Development Partners

Real Estate Readiness Feasibility & Facility Strategic Planning Site Identification Pre- Development Build Out

After Space is Secure Before Space is Secure Assemble Team Project Management

Real Estate Readiness Facility Strategic Planning Feasibility + Acquisition Construction Pre- Development Build Out Real Estate Committee Financial Consultant Real Estate Consultant Project Manager Broker Architect Capital Campaign Consultant Lawyer(s) Engineer General Contractor Environmental Consultant

Who Helps + When

Partner Roles

Low High Control & Risk

Tenants Co-owners Board members Co- founders

Real Estate Readiness

Organizational Capacity

Has a clear Mission & Vision Solid strategic/business plan Not in a period of

• rganizational

rethink

Staff & Board Capacity

Stable & experienced leadership team Board commitment to real estate project Staff capacity to

• versee/manage a

real estate project

Financial Capacity

Debt capacity Fundraising/ capital campaign capacity Reserves/ Assets

Real Estate Readiness

Financial Capacity

Debt capacity Fundraising/ capital campaign capacity Reserves/ Assets

Surplus Net Operating Income (NOI) for 3 Years

• Budget by program & quarter
• Revenue leverage & risk

Donor Capacity

• Fundraising enhances capital campaign
• Capital campaign stresses fundraising

A Strong Balance Sheet = Choices

• Reserves
• Current ratio 3:1
• Liquidity
• Net Assets

Master Lease

Master: A

• rg

Owner: Public, Nonprofit

• r Commercial

Sub- Leases ABC Org [NEW] Master Lessor

Some Model of Shared Risk

D

• rg

E

• rg

Sub- Leases A

• rg

B

• rg

C

• rg

A

• rg

B

• rg

C

• rg

A B C

Owner: Public, Nonprofit

• r Commercial

Debt Bonds Tax credits Hard Costs

Sources Uses

Marketing & Leasing Start-up Operations Staffing FF&E Soft Costs Reserves/Cash Grants Capital Campaign

How is Nonprofit Shared Space

• perated?

• Rent
• Leasing/Marketing

Expense

• Facility Management
• Utilities
• Maintenance & Repair
• Security
• T

axes & Insurance

• Administrative Expense
• Reserves
• Program Staff
• Depreciation
• Rent
• Common Area Maintenance
• Other charges: phone,

internet, other fees

• Membership, co-working

fees

• Events, conference room

rentals

• Storage

$ $

Revenue/Expense

Master Lease

Master: A

• rg

Owner: Public, Nonprofit

• r Commercial

Sub- Leases ABC Org [NEW] Master Lessor

Some Model of Shared Risk

D

• rg

E

• rg

Sub- Leases A

• rg

B

• rg

C

• rg

A

• rg

B

• rg

C

• rg

A B C

Owner: Public, Nonprofit

• r Commercial

Master (A) takes on new operating program (building) with associated revenues, expenses, risks & gains No change to B or C A, B and C output one-time resources to form ABC org, then no change ABC org takes on new operating program (building) with associated revenues, expenses, risks & gains

Management Considerations

• Who staffs?
• Who programs?
• Who operates facility?
• Who leases?
• Internal or external

property management?

Programming Budget Tenant Selection Operations

Nonprofit Center Governance

Community Meetings Co-owners Board Members Advisory Committee Directors/ Tenant Council Tenant Surveys

Low High Control & Risk

Q&A