The Value of Historic Preservation. Colorado National Bank Building th Street

Transcription

1 The Value of Historic Preservation Colorado National Bank Building th Street

2 Original Building Building history Harold Kountze, then Vice President of Colorado National Bank, commissioned architect Fisher & Fisher to design the Bank That Looks Like a Bank in 1914.

3 Building history Completed / Open 1916 Builder: Seerie Brothers

4 Building history Marble Supplied by Colorado Yule Marble Company Contemporaneously Supplied Marble for Lincoln Memorial

5 1920s Addition Building history Expanded to the West (toward 16 th St.) Doubled Size of Building Architect: Hoyt & Hoyt Allen True Murals Incorporated

6 Building history Allen Tupper True ( ) Local Artist / Famous Muralist 16 Murals in Building Including His Largest Work of Art Other Murals Featured in the Colorado State Capital, Wyoming State Capital and Missouri State Capital Also Designed the Bucking Horse and Rider Found on the Wyoming State License Plate

7 1960s Addition Building history Two Stories Added to Top / Fourth Floor Modified Alteration of Façade and Roof Architects: John Rogers / Jerome Nagel Impetus For Partnership Now Known as RNL

8 Holiday Institution Building history The massive Christmas Tree in the lobby was an annual tradition that was symbolic of the holiday season. The developer intends to recreate this unique Denver experience.

9 Building history Recent History / Current Status US Bank Acquired Colorado National Bank in 1998 US Bank Completed a Sale / Lease-Back to a Local Investor in 2001 US Bank Did Not Renew Its Lease and Vacated the Building in December 2006 Efforts Were Made to Market the Building to Other Users

10 Building history Recent History / Current Status Little Interest in Property Due to its Condition and the Operating Inefficiencies Related to the Design The Lender Subsequently Took Control of the Building An Affiliate of Stonebridge Companies Purchased the Property in December 2009 It Has Been Vacant for More Than Three and a Half Years and Has Become a Target for Vandals

11 Building history Recent History / Current Status The Colorado National Bank Building was Officially Listed on the National Register of Historic Places on April 27, Asbestos Abatement Work has been Initiated at a Cost of ±$1,500,000

12 Building condition Physical Challenges Asbestos Functional Obsolescence Inefficient Design Lack of Windows Lack of Parking Operating Costs (Heating / Cooling) SW & Alley Façades No Windows Standing Water on Roof

13 Physical Challenges Structural Upgrades Protection / Refurbishment of Historical Elements Deferred Maintenance Roof Exterior Condition (Graffiti) Building condition Interior Water Damage Water Damage Marble Stains

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15 Redevelopment Vision Conversion of an existing bank building, with the addition of two stories, into a full-service hotel with 230 guestrooms, a signature restaurant and lounge, and approximately 6,000 SF of meeting space. 15

16 Public Private Partnership Property is located within the existing 53-block Downtown Denver Urban Renewal Area. 16

17 Public Private Partnership Redevelopment of the Colorado National Bank Building advanced the following goals of the Downtown Denver Urban Renewal Plan: To renew and improve the character and environment of that portion of the City s central business district located within the Urban Renewal Area by preventing or ameliorating economic, physical, and environmental deterioration. To eliminate the incidence of crime within the Urban Renewal Area. To protect the existing character of the Historic District. To build upon present economic strengths in the Urban Renewal Area by encouraging the growth of existing uses that are suitable to the Urban Renewal Area. To encourage the renovation of existing structures in the Urban Renewal Area. 17

18 Project Proforma Sources and Uses Sources (000's) Equity $ 11,071 23% Debt $ 26,381 55% TIF Loan $ 10,000 21% State Historic Fund $ 300 1% Façade Easement $ 118 0% Total $ 47, % Uses (000's) Acquisition $ (4,704) 10% Redevelopment $ (43,166) 90% Total $ (47,870) 100%

19 Project Proforma Development Budget Colorado National Bank - Development Budget ,630 Total Per Key Per SF Acquisition $ 4,704,450 $ 20,454 $ 30 Design $ 1,050,000 $ 4,565 $ 7 Demolition / Abatment $ 1,500,000 $ 6,522 $ 9 Hard Construction $ 23,111,499 $ 100,485 $ 146 Construction Management $ 801,243 $ 3,484 $ 5 Permits & Fees $ 631,523 $ 2,746 $ 4 FF&E $ 4,978,382 $ 21,645 $ 31 OS&E / Technology $ 1,125,000 $ 4,891 $ 7 Consultants & Third Parties $ 130,000 $ 565 $ 1 Legal / Accounting / Other $ 225,000 $ 978 $ 1 Carrying Costs $ 600,000 $ 2,609 $ 4 Developer's Overhead $ 534,162 $ 2,322 $ 3 Working Capital $ 400,000 $ 1,739 $ 3 Pre-Opening Expenses $ 575,000 $ 2,500 $ 4 Franchise Application Fee $ 120,000 $ 522 $ 1 Subtotal $ 40,486,259 $ 176,027 $ 255 Project Contingency $ 3,708,037 $ 16,122 $ 23 Development Fee $ 1,335,405 $ 5,806 $ 8 Loan Acquisition Expense $ 323,600 $ 1,407 $ 2 Interest Expense $ 2,016,724 $ 8,768 $ 13 Subtotal $ 7,383,766 $ 32,103 $ 47 Total $ 47,870,026 $ 208,131 $ 302

20 Economic Development Impact Assumptions: Sales TIF capacity assumes taxable sales (food & beverage and other) of $34 per available room night. Lodger s Tax capacity assumes 7% Lodger s Tax committed to the project, which required the financial support of the City and Visit Denver. Property Tax capacity assumes that the Assessed Value of the completed hotel at $41,917 per room, which equates to an Appraised Value of $144,541 per room or a total Appraised Value of $33,244,517. Capacity: The total projected TIF capacity of the project is more than $33 million over 25 years. Accruing interest at 7%, the estimated gap of $10 million would be repaid in 16.5 years at total cost of $16.5 million. 20

21 Value of Historic Preservation Benefits of Redevelopment Historic preservation of a Denver landmark. Reactivation of a significant building along 17 th Street and ½ block from the 16 th Street Mall that has been vacant since Job Creation Small Business Contracting New & Permanent Tax Revenues 21