City of Springfield State Street Supermarket Project City of - PowerPoint PPT Presentation

City of Springfield State Street Supermarket Project City of Springfield - DevelopSpringfield

Springfield Profile Population: 153,060 � 4 th largest city in New England � 90 minutes from Boston � Geographic center of � Knowledge Corridor 20 universities within 15 miles � Birthplace of Basketball, Dr. � Seuss, National Armory Major employers: Big Y, � MassMutual Financial, TD Bank, Baystate Health, Smith & Wesson, Liberty Mutual, Peter Pan Bus Lines, Merriam- Webster City of Springfield - DevelopSpringfield

State Street 3.2 mile long, east-west � thoroughfare Touches 7 city neighborhoods � representing 44,000 residents Traffic counts ranging from � 12,450 to 29,300 per day Institutional anchors: � Springfield Museums, Community Music School, MassMutual Center, Armory Historic Site, STCC, American International College City of Springfield - DevelopSpringfield

City of Springfield - DevelopSpringfield

State Street Alliance � Began in 2007 � Building off of $16 million public investment, complete road reconstruction � Over 60 Business, non- profit, neighborhood, and government organizations � Funded the State Street Corridor Program (July, 2008) � Identified 6 target redevelopment projects City of Springfield - DevelopSpringfield including the

Neighborhood effort Mason Square Food Justice � Group – Community based, faith based, neighborhood councils Partnered with Baystate Health � and neighborhoods, Food Bank of Western Mass Fresh Food Farmers Market � Presented a petition signed by � 600 residents seeking a full line supermarket Established a transport shuttle � from three points in the neighborhood to area full line supermarkets City of Springfield - DevelopSpringfield

Endorsed Supermarket Site • Endorsed by the State Street Alliance • Highest State Street Traffic Counts • 7-8 Acres • Existing businesses – Burger King, Car Wash, Dental Clinic, residential • Parking lot for STCC – 3 acres/40% of lot City of Springfield - DevelopSpringfield

Market: Demographics Demographics 11,000 households within one � 2011 (Except Income 2010) mile Average � Avg Hshld Income: $31,600 Household Radius Population Households Income 0-1 Mile 30,900 11,800 $31,600 28,600 households within a 5- � 0-3 Miles 139,200 53,100 $46,400 minute drive 0-5 Miles 246,000 96,100 $55,200 Avg Hshld Income: $37,200 � Average Drive Household Over 50,000 households within � Time Population Households Income 5 Min 77,400 28,600 $37,200 a 7-minute drive (Trade Area) 7 Min 135,500 51,200 $46,400 � Avg Hshld Income: $46,400 10 Min 227,600 88,800 $53,800 Source: Claritas, Inc. City of Springfield - DevelopSpringfield

Market: Neighboring Uses 29,300 average daily traffic at Oak � St and State Street intersection STCC across street – 6,300 � students (2,700 full-time), 450 employees STCC Technology Park across � street – 900 employees including Liberty Mutual 300 employee office Adjacent High School – 1,380 � students Downtown within a mile – 8,000 � employees City of Springfield - DevelopSpringfield

Supermarket Supply 7-Minute Drive Time 25,000 sf food store (NSA) within a mile, otherwise competition 7-minute+ drive City of Springfield - DevelopSpringfield

Development Program � 55,000 square foot supermarket-anchored shopping center � Relocate STCC parking to campus in exchange for 3 acres of land � Acquire other private property within block City of Springfield - DevelopSpringfield

Preliminary Concept Plan A (excludes Burger King site) City of Springfield - DevelopSpringfield

Preliminary Feasibility - A Preliminary Economics Concept A: No Burget King Land Sq Ft NNN Rent Supermarket 55,000 $15.00 $825,000 In-Line 19,000 $23.00 $437,000 Small Anchor 15,000 $18.00 $270,000 Office 31,000 $16.00 $496,000 Gross Revenue $2,028,000 Less: Vacancy 5% ($101,400) Net Operating Income $1,926,600 Supportable Development Cost @ 8.5% $22,665,900 Development Cost /1 $17,380,000 Property Acquisition/Relocation Costs (No Burger King Land) $6,319,925 Parking Replacement Cost $5,400,000 Demolition Cost $7.00 $406,000 Total Cost $29,505,925 Gap ($6,800,000) 1. Assume $114 development cost and $20 tenant improvement budget for City of Springfield - DevelopSpringfield supermarket and $40 for other retail and office.

Preliminary Concept Plan B (includes Burger King site) City of Springfield - DevelopSpringfield

Preliminary Feasibility – B Preliminary Economics Concept B: Including Burger King Land Sq Ft NNN Rent Supermarket 55,000 $15.00 $825,000 In-Line 35,000 $23.00 $805,000 Small Anchor 20,000 $18.00 $360,000 Office 0 $15.00 $0 Gross Revenue $1,990,000 Less: Vacancy 5% ($99,500) Net Operating Income $1,890,500 Supportable Development Cost @ 8.5% $22,241,200 Development Cost /1 $15,840,000 Property Acquisition/Relocation Costs (Incl. Burger King Land) $7,268,470 Parking Replacement Cost $5,400,000 Demolition Cost $7.00 $431,200 Total Cost $28,939,670 Gap ($6,700,000) 1. Assume $114 development cost and $20 tenant improvement budget for supermarket and $40 for other retail and office. City of Springfield - DevelopSpringfield

Questions & Comments Nick Fyntrilakis MassMutual Financial DevelopSpringfield nfyntrilakis@MassMutual.com Brian Connors City of Springfield 413.787.6664 bconnors@springfieldcityhall.com City of Springfield - DevelopSpringfield