DECO Yards OPT. The Redevelopment of the Coca-Cola / SCIPS Property

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1 DECO Yards OPT. A The Redevelopment of the Coca-Cola / SCIPS Property

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3 Contact Information Milhaus 460 Virginia Ave. Indianapolis, IN Primary Contact Jeremy Stephenson Principal & President Milhaus (o) (m) Secondary Contact John Watson Managing Member Core Redevelopment (m) Neighborhood Collaboration. Historic Preservation. Next-Generation Technology. Creative Office Space. Information in Education. Economic Growth. Environmental Resiliency. Our comprehensive team combines big-picture perspective and creative visioning with hands-on experience in implementing complex solutions to our urban environments. Our ability to deliver an innovative project, both on time and on budget, cannot be overstated on a development of this magnitude. We provide unparalleled experience in completing important new construction and historic restoration projects in Indianapolis historic neighborhoods, qualities necessary to solidify this project s long-term success. Moreover, we understand the IPS goal to deliver a project that creates significant long-term value value generated from not only initial sales price, but also additional property tax revenue and value created through direct linkages to educational opportunities for students, especially those in STEM and Arts related programs at IPS. By establishing technology and education partners like High Alpha, Nextech, and Young Actors Theatre, our Team has gone above and beyond to ensure not just a project that can be built but one that can thrive and create a lasting impact on our hometown. DECO Yards: Coca-Cola / SCIPS Building Option A 01

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5 Milhaus: Master Developer, General Contractor, Property Management Milhaus is a team of inspired and industrious individuals, headquartered in Indianapolis, who are committed to the development of creative and thoughtful mixed use and multi-family real estate. We deliver solutions for our urban neighborhoods, cities and partners by providing expertise in real estate investment, development and management. Our projects withstand the passage of time leaving communities in a better place than we found them. Since 2010, Milhaus has developed more than $500 million of mixed-use and multifamily real estate across the country. Our team provides creative perspective gained from a strong foundation in urban planning and design, finance, construction, appraisal, and real estate law. We deliver quality homes where our customers can live consciously and be a part of a community. We pride ourselves on sustainable development, understanding how each project impacts our built environment. The diverse skill sets and significant experience of our team help provide flexible solutions for our partners, our investors and us. Core Redevelopment: Co-Developer (Historic Rehabilitation) Core Revelopment is one of the most experienced firms in the Midwest at rehabilitating and repositioning historic buildings into distinctive marketrate residential properties: Core takes pride in bringing unique properties in unique locations to life. Core has performed 15 certified historic tax credit rehabilitations, representing an aggregate investment of more than $100 million. Core provides 30 years of experience focused exclusively on residential real estate development, including the rehabilitation and management of more than 5,000 apartment units. They understand that the successful interplay between residential, retail and commercial uses is critical to creating the vibrancy that drives well-balanced economic development. RATIO Architects: Master Architect / Planner RATIO is a multidisciplinary design practice offering services in architecture, preservation, interior design, landscape architecture, urban planning, and graphic design. Since our founding in 1982, the firm has partnered with a diverse list of clients and gained a wealth of experience in the education, community, workplace, lifestyle and cultural marketplaces. After more than 30 years, RATIO has evolved to a firm of more than 100 designers and administrative staff. The firm s four studio locations in Indianapolis, IN; Champaign, IL; Raleigh, NC; and Chicago, IL allow our team of design professionals to cross geographic boundaries and provide a high level of architectural design excellence to clients throughout the country. Shiel Sexton: General Contractor Shiel Sexton has evolved past a general mastery of materials and equipment into a highly specialized set of skills. We ve organized our company along lines of our specific expertise: Commercial, Healthcare, Education, Public Works and Science and Technology. We specialize in construction management, general contracting and design-build services. Every structure we build, no matter what its purpose, is the result of collaboration. We hold that no structure can succeed unless everyone involved is at the table. Architects, contractors, and end users are all invited into the conversation to make an exceptional building. SHK: Construction Manager / MBE/WBE Lead SHK is an Indianapolis-based Construction Management and Real Estate Services firm. SHK has successfully worked with clients such as the Indiana Housing Community Development Authority, Indianapolis Marion County Public Library, Indianapolis Public Schools, Ivy Tech Community College of Indiana, and the Metropolitan School District of Lawrence Township. Under Steve s direction, SHK has served as the Construction Quality Manager on the delivery of three IPS school buildings totaling over $21 million. Team Summary Shrewsberry: Environmental Engineer Shrewsberry & Associates, LLC is a DBE/MBE/VBE engineering and environmental consulting firm founded in 2001 with corporate headquarters in Indianapolis, IN. Shrewsberry has core competencies and experience in an expanding spectrum of disciplines including Environmental Engineering and Compliance, Civil Engineering, Water/Wastewater Engineering, Transportation Engineering, Construction Inspection and Admin., Utility Coordination, Permitting, and Owner s Representation. High Alpha: Technology Office Partner Led by proven tech entrepreneurs Scott Dorsey, Mike Fitzgerald, Eric Tobias, and Kristian Andersen, High Alpha is comprised of High Alpha Studio and High Alpha Seed. High Alpha Studio creates, operates and supports new companies by providing a blend of services including: product development, sales and marketing, finance, brand and design, and talent development. High Alpha Seed invests in High Alpha Studio companies and other emerging enterprise cloud companies. The combination of High Alpha Studio and High Alpha Seed represents a new model for entrepreneurship that seeks to help companies reduce friction, increase velocity, and achieve enterprise scale. Nextech: Educational Partner Launched in 2015 by Scott Dorsey, Nextech is an Indianapolis-based nonprofit with a passion to narrow the widening gap between computer-related jobs and the number of individuals pursuing them. By connecting educators, nonprofits and entrepreneurs, Nextech delivers educational programs and work-based learning experiences to inspire and enable students from all backgrounds to pursue careers in technology. Their vision is to transform K-12 students from technology consumers to the next generation tech pioneers. DECO Yards: Coca-Cola / SCIPS Building Option A 02

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7 Overview Our preliminary development concept is to deliver a combination of rental and for-sale housing, both new construction and historic rehab, technologyfocused office and co-working space in the western SCIPS garage buildings, neighborhood desired retail along Mass Ave., a midblock public plaza at the southern edge of the site, a public park space near the existing Cultural Trail, and underground parking. Full Historic Restoration of Existing Buildings and Carrollton We are committed to a full and complete restoration of both the SCIPS building and the garages west of Carrollton. This restoration is an absolutely fundamental element of our plan. The eastern SCIPS building will be restored to include apartments and street level retail along College and Carrollton, while the western garage buildings will be adaptively restored as incubator space for technology and education related start-ups, as described below. Another important component of our proposal is the redesign of Carrollton Avenue. We propose a shared street design that reestablishes the street grid and opens the site to vehicular traffic, but does so in a way that continues to favor the pedestrian. Technology Office Space Within the western SCIPS garage buildings, we have exclusively partnered with High Alpha to create a technology incubator and co-working office spaces. Combining the experience of High Alpha and the existing aesthetic qualities of these buildings will make this an incredibly desirable location for growing businesses and organizations. This creates a diversified employment base and provides real opportunities for educational mentorship to IPS K-12 students. Retail & Public Spaces We believe a critical component of this project is the provision of outdoor park and public spaces. The nexus of our design program is a mid-block public retail plaza along Mass Ave. between the existing SCIPS Buildings and our proposed new development. Responding to an existing need for quality open spaces along Mass Ave., the proposed office, restaurant, retail, and residential uses surrounding this plaza will create a true 24-hour type amenity for the community. A new programmed park space, will create a walkable draw for existing Chatham Arch residents, families, and current and future IPS students. It is our intention to locate this park toward the northern edge of the site to make it easily accessible to both the Cultural and Monon Trails a critical connection point for surrounding neighborhoods. This also gives us the opportunity to incorporate the Cultural Trail into the site and explore adding Pacers Bikeshare station(s). Residential Our development program is anchored mid-block along College Ave. with different for-sale housing options. A combination of low-rise condos and townhomes help transition the scale of development to the west and offers a product that is in short supply and high demand in Indianapolis, specifically within Chatham Arch. Milhaus understands the rising demand for this type of product, and we have proven our ability to successfully develop and finance this product type at this scale. It is our goal to design housing options that attract a wide array of demographics, including young professionals and families with children alike. Building off of our Team s successful experience in this neighborhood, we also envision multiple rental product types that deliver options not currently available in Chatham Arch including market-rate apartments that can rise up to eight stories. Parking We understand how critically important parking is to this project. With more than 850 spaces designed into our plan - our uses are completely self-parked on-site, made possible by a large underground parking garage and multiple Project Summary Narrative above-grade covered parking options. Our current plan includes capacity for public parking, up to 100 spaces, with flexibility to add additional dedicated parking spaces if needed. Ownership Structure Core Redevelopment will own, operate, and manage the main SCIPS building east of Carrollton. Milhaus, and its affiliated entities, will own, operate, and manage all uses and buildings west of Carrollton. Education Initiatives We re dedicated to the long-term success of Indianapolis public schools, their students, and their families. Our Team has committed to four important initiatives: 1. Partnering with NexTech to provide space that supports on-going K-12 mentoring opportunities and existing operations within IPS schools. 2. Young Actors Theatre will provide programmatic opportunities that support self-empowerment through an outlet of theatrical arts. 3. Privately provide $500,000 in total scholarships to IPS students over the next ten years for opportunities in developing skills in the design, real estate, construction, and property management industries. 4. Offer a variety of housing options, both rental and for-sale, for IPS educators. Control of Corner Parcel It is absolutely vital to highlight that our plan includes development all the way to the corner of College and Mass Ave. The development of this corner is vital to connecting this Project to the rest of the Mass Ave corridor and Milhaus has exclusive control and development rights for this critically important corner parcel, as illustrated in our plan. DECO Yards: Coca-Cola / SCIPS Building Option A 03

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9 Proposed Site Plan Project Data Apartments condo or townhomes 25,000-45,000 sf neighborhood desired retail 73,000 sf rehabbed tech office space 940 parking spaces with nearly 700 below ground Office / Historic Structure Retail Residential for Sale Residential for Lease Underground Parking Public Parks & Plazas Public Paths & Boulevards DECO Yards: Coca-Cola / SCIPS Building Option A 04

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11 COMMITTED EQUITY Backed by institutional and high-net worth equity partners that are focused on investing in urban mixed-use projects such as this one, Milhaus has secured construction financing for 16 projects in the past five years in excess of $450 million. Core, having executed certified historic tax credit rehabilitations well in excess of $100 million, has advanced experience with the syndication of historic tax credits and has the financing sources in place to execute the rehab of the SCIPS Building. Together, our Team has the financial capacity already in place to complete significant projects of scale. Milhaus BP Investors, LLC, an affiliate of Milhaus Development, LLC, has an allocation of $100 Million of equity that is only approximately 15% placed. This fund is targeted towards large urban infill mixed-use projects and will assist us in developing a Project that creates long-term value for IPS. SUBSIDY REQUEST Our Team prides itself on establishing a deal and sticking to it, not asking for additional help on the back end of a project. We have experience developing creative underwriting scenarios and obtaining municipal financing tools such as tax abatement and tax increment financing. That being said, we do not pursue public assistance on our projects unless we believe the project is not viable without it. We understand the value of transparency when using public financing tools such as Tax Increment Financing, which is why we have provided you a breakdown of the components of our plan that tie directly to the amount of public assistance we are requesting. VALUE TO IPS In addition to the upfront purchase price we are offering, our project provides an immense long-term dollar value to IPS. Through both our team s scholarship commitment to IPS students pursuing careers in design, construction and real estate trades and through the estimated annuity payments generated due to the scale of our proposed project, IPS is looking at a value to them of $16,000,000. Please also reference Exhibit B in our Terms Agreement. Base Purchase Price: $14,000,000 at closing Property Tax / Annuity Payment: $1,500,000 over 10 yrs. Scholarships to IPS Students: $500,000 over 10 yrs. TOTAL VALUE $16,000,000 over 10 yrs. MILHAUS PROPERTIES, LLC // Sources and Uses TOTAL PROJECT SOURCES AND USES USE Land $14,000,000 Total Development and Construction $158,013,537 TOTAL $172,013,537 SOURCE Debt $96,885,976 Equity $46,527,361 TIF $28,600,200 TOTAL $172,013,537 SUBSIDY BREAKDOWN SUBSIDY USES Retail Plaza Carrollton Ave. Public Park Power Line Removal Environmental Garage waterproofing Parking Garage Construction TOTAL $28,600,200 SUBSIDY SOURCES TIF $28,600,200 TOTAL VALUE $28,600,200 DECO Yards: Coca-Cola / SCIPS Building Bid Package A

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