Archive for Public Private Developments

Utah Performing Arts Center Begins the Design Process With Help of Community

Utah Performing Arts Center MapThe Utah Performing Arts Center with developer Garfield Traub Swisher and designer Pelli Clark Pelli Architects is ready to begin the design process with the help of the Salt Lake City community. The Performing Arts Center concluded their public outreach program that included two 8-foot tall chalkboards located on Regent Street and an open house for the community at Gallivan Center.

The 8-foot tall chalkboards allowed the community to give their input on what they believed the new Utah Performing Arts Center should include in its new design. The open house followed this phase of the design process with the purpose of letting community members see the collected feedback and how it is going to be incorporated into the beginning stages of the design process.

“We are excited to be a part of the Utah Performing Arts Center development process and look forward to seeing the positive effects it will have on Salt Lake City,” said Garfield Traub Swisher principal Steve Swisher. “The new performing arts theater will really revamp the City and attract retailers, restaurants, and other entertainment.”

The 2,500-seat theater located on Salt Lake City’s Main Street will include improvements to Regent Street directly behind the theater, in between 100 and 200 South. “The parking garage on Regent Street has approximately 20,000 square feet of retail space on the ground floor,” according to Robert Farrington, economic development director for Salt Lake City Corporation. “With some cosmetic changes to that structure, a little bit of extra retail that will be in the back of the theater itself and changes with signage and programming, maybe tables and chairs in the street when it’s not being used for loading the theater, you can really transform that street into a more intimate, pedestrian feel.”

“The City really wanted to include the community in as much of the design process of the Utah Performing Arts Center as possible so the community can take pride in their new Performing Arts Center and give them insight on things they may not of been aware of,” said Steve.  “We feel the outreach program served its purpose and was a huge success.”

The Utah Performing Arts Center design is projected to be finalized during the Summer of 2013. For more information, visit: http://www.utahperformingartscenter.org/

DPAC Impresses Yet Again With $1.8 Million Annual Net Profit

Durham Performing Arts Center Stage

Durham Performing Arts Center Stage

The Durham Performing Arts Center (DPAC), a public/private development led by Garfield Traub Development of Dallas in partnership with Szostak Design of Chapel Hill, reported recently a net income of more than $4.5 million in fiscal 2011-12, with $1.8 million of these funds going to the City of Durham. Under its operating contract with PFM/Nederlander, the City receives 40% of the annual net income from the theater to use for amortizing debt and maintaining and paying other costs related to the City-owned Theater.

DPAC director Bob Klaus reported attendance to be over 417,000, with 25% of attendees being first-time patrons.  Over one-third of the performances were sold out, and the SunTrust Broadway series has already counted almost 11,000 subscribers for the 2012-13 season.

DPAC’s largest attendance for the past season was the return performance of “Wicked”.  82,000 people attended 32 performances, just two years after a successful first run at the DPAC.

Projections for surplus cash flow after operations were originally conservatively estimated at  $400,000 per year, with approximately $160,000 (40%) going to the City.  Fortunately for the DPAC and the City of Durham, the actual results have exceeded the original, purposefully conservative projections by a factor of ten!

Bob Klaus, General Manager of the DPAC, commenting on the performance of the theater, said “the expectations were high, but we beat all expectations”.

Just last month, Pollstar ranked DPAC as #2 among the top 100 best-selling theaters in the world, second only to the Auditorio Nacional in Mexico City, and the #1 top-selling theater in the US, beating out widely-known theater markets like Los Angeles and New York City.

The reputation and performance of the DPAC continues to validate the vision and leadership of the City and its development team which worked so collaboratively throughout the development process.  Public/private partnerships are now being aggressively promoted across the nation, and the Durham Performing Arts Center stands as a paradigm of success of public/private collaboration.

Contact Garfield Traub Development if you would like to see how they can help create your City a successful performing arts center like the DPAC.

Garfield Traub Development DPAC Rated #1 Top-Selling Theater in U.S.

DPAC also rated #2 top-selling theater in the world

DPAC

Durham Performing Arts Center - Durham, NC

The Durham Performing Arts Center (DPAC), developed by Garfield Traub in partnership with Chapel Hill architect Szostak Design in Durham, North Carolina, has proven itself yet again against the best of the best and is now rated #1 by trade publication Pollstar as the top-selling theater in the U.S. for the first half of 2012.

If that were not impressive enough, DPAC scored the #2 position in the top 100 selling theaters in the world, second only to Mexico City’s Auditorio Nacional.  And since the rationale for the development of the DPAC was doubted by many prior to its opening in 2008, this is a very special achievement for all those involved in the DPAC from development to delivery.

“It all starts with great shows, and for us to have two big multi-week blockbusters in the same season really tipped the attendance scales”, said Bob Klaus, DPAC’s General Manager in the Durham News Service. “It’s a credit to Nederlander and PFM and the great shows they bring us, this will truly be a season to remember.”

Today the attendance statistics have been released for DPAC’s 2011-2012 season, which includes 200 performances bringing in a total of 417,180 guests and 67 total sellouts. The highest attended shows were Radio City Christmas Spectacular with 38 performances and Wicked with 32 performances.

“We at Garfield Traub are extremely proud of what the DPAC has accomplished,” said Garfield Traub Principal Greg Garfield. “It is an honor to be able to say we participated in the development of the project, and we could not be happier for all those involved.”

Since the opening of the DPAC in 2008, the theater has consistently ranked on the top of Pollstar’s top-selling theater rankings, but has also won other awards such as:

  • Numerous local Reader’s Choice Awards
  • The Independent Weekly’s “Best of” winner for Best Theater Venue – 4th Consecutive Year
  • The Herald Sun’s Reader’s Choice Award for Best Live Entertainment – 4th Consecutive Year
  • Raleigh’s Metro Magazine’s Standing Ovation for Best Theater – 3rd Consecutive Year
  • Durham Magazine – Best Place for Live Music and Best Place for Live Theater – 2nd Consecutive Year
  • And #3 in gross ticket sales among venues with a capacity of 5,000 or under in the soon to be published July 28th mid-year charts for Billboard Magazine.

Since the DPAC’s opening in 2008, 520 ticketed events have been presented drawing in more than one million attendees.  For more information about the DPAC and how it was successfully developed, visit the Garfield Traub website.

Public Private Partnerships Investment and Development Opportunities

Economic reports have shown a stagnant job market and a fairly broad-based contraction in public sector construction during the month of March. This contraction reflects cuts to infrastructure investment structures, now that state and local governments have tightened their belts and the activity of the 2009 Federal fiscal stimulus has played out.

The lack of job and economic growth will continue to impact development activity in most sectors, including public institutions. These institutions cannot (or do not want to) use their tax-exempt bonding capacity to finance real estate assets. Traditional real estate lenders are cautious, have strict underwriting requirements, and in some cases, are using floating rate debt to finance assets. And, the parameters for the CMBS market are still quite conservative.

In order to obtain financing, it may be time to explore non-traditional alternatives. The Credit Tenant Lease form of financing offers a solution through competitively priced, long-term fixed-rate debt
and a faster closing process.  CTL applies to municipal, state, and federal government real estate developments and assets, as well as universities, public schools, healthcare, office, retail and specialty real estate.

CTL loans are based on the investment-grade credit rating of the tenant. The real estate is collateral and secondary in the credit matrix. These loans give owners, developers, and clients with investment-grade credit tenants the opportunity to finance the development and hold the property for the long term. With proceeds up to 100% LTV, and long-term, non-recourse debt, CTL loans minimize equity requirements and limit liability.

The current capital market environment offers an excellent time to take advantage of the benefits offered through the CTL loan program. Each CTL loan is structured as a private placement bond. Investor demand for these bonds exceeds supply, driving down loan spreads. This, in combination with low Treasury rates, has pricing at or near historic lows.

CTL loans offer the following advantages:

•  Loan proceeds up to 100% LTV
•  Non-recourse debt
•  Very competitive rates
•  Long-term, fixed-rate debt
•  Assumable debt on sale or transfer
•  Ability to prepay loan (at make-whole)
•  Rate lock up to 60 days prior to closing
•  Construction/Perm loan opportunity

Mesirow Financial specializes in CTL financing, utilizing direct access to CTL debt sources through its 120-person institutional sales group covering 1,200 institutional accounts.  This coverage facilitates real-time, accurate, and competitive pricing with superior execution.  With these advantages, Mesirow strives to provide its clients with optimal pricing and the most favorable terms.

Garfield Traub has an abundant amount of experience in financing public developments despite the economic downturn throughout the U.S. If you would like to learn more about how your public agency can get your essential developments financed contact Garfield Traub and we will be happy to help.

EB-5 Money – Commercial Real Estate Funding Solution

Garfield Traub Development is pleased to call your attention to a very informative article authored by Bob Voelker of the Dallas based law firm, Munsch Hardt Kopf & Harr, P.C.  Bob is one of the most respected real estate attorneys in the country, and well versed in development financing methodologies including EB-5 and New Markets Tax Credits among many others.  This article on EB-5 essentials is very timely.  Accessing cost efficient international funds as part of an overall capital structure for essential facilities for the public sector enables projects to not only proceed but to succeed.  Indeed, we at Garfield Traub are using these funds to complete funding on target developments across the nation, especially hotels and conference centers in key cities.  As accessing these funds in China and in other nations is becoming more and more active and a number of new developments are in the international marketplace simultaneously, we only consider using this funding for developments in first or second tier communities, where those communities are also investing in these P3 or Public/Private ventures, and where other “quality” elements exist to establish a strong story to enable strong acceptance.

Please enjoy this article.

Bob Voelker: Foreigner Investors Filling Real Estate Funding Gap

Several local real estate projects are securing gap financing by luring foreign investors to create American jobs in exchange for U.S. visas. Most of this money is coming from China under a U.S. Customs and Immigration Service (USCIS) program known as EB-5. As this is a financing tool relatively new to North Texas, I have laid out the basics of EB-5 below.

Q. What is an EB-5 Visa?

A. EB-5 is an immigrant investor visa category created for foreign nationals who invest in a U.S. business that creates at least 10 full-time jobs. An EB-5 applicant will receive a visa for himself or herself, his or her spouse, and all of their children under the age of 21. The USCIS will issue a conditional visa within five-eight months of application by an EB-5 investor, as long as the investor and the project are qualified. If the investment project fulfills the job creation criteria after two years, the investor can obtain permanent resident status, and can apply for U.S. citizenship in five years.

Q. What is the criteria  for an EB-5 Visa?

A. In order to qualify for an EB-5 Visa, an investor must invest at least $500,000 in a “targeted employment area” (as discussed below) in an enterprise that will create at least 10 new full-time jobs for U.S. citizens and legal residents per $500,000 investment. Foreign investors usually purchase limited partnership interests in a limited partnership made up of multiple investors seeking EB-5 visas, with the partnership being controlled by the EB-5 Regional Center (which in essence acts as the “syndicator”). This limited partnership then invests in the entity that controls the project.

Q. What is a Regional Center?

A. A Regional Center is an entity created to sponsor projects for EB-5 investors and approved by the USCIS. There are currently more than 175 Regional Centers.

Q. How are EB-5 investors secured?

A. The EB-5 Regional Centers have well developed networks of foreign brokers and licensed emigration agents who raise financing for EB-5 projects, usually through seminars attended by foreign investors.

Q. What are EB-5 investors looking for in an EB-5 investment?

A. EB-5 investors are looking to obtain two primary objectives: 1) their visas, which are obtained through the project creating the number of jobs promised in the business plan, and 2) a reasonable likelihood of the return of their investment in five or six years. Secondarily, EB-5 investors and the Regional Centers are looking for a small rate of return on their investment—frequently from 1-5 percent plus, depending on the structure, a small back-end interest in the project (which can be subordinated to debt repayment and returns to other equity partners).

Q. What is a Targeted Employment Area?

A. A targeted employment area is any city, county, census tract or other geographical area or political subdivision accepted by the USCIS that has an unemployment rate that’s more than 150 percent of the national average rate, or a “rural area.” A rural area is an area outside a metropolitan statistical area or outer boundary of any city or town having a population of 20,000 or more. Although at first blush this would seem to allow the use of EB-5 financing only for rural projects and urban projects in impoverished areas, we have found after evaluating a large number of proposed project sites that a large percent of urban areas qualify.

Q. What is the process?

A. The process of qualifying a project for EB-5 investment is as follows. It typically takes about nine to 12 months to complete:

• Determine if the site qualifies as a targeted employment area.

• Provide project information including description and proformas to the Regional Center.

• Negotiate a term sheet with the Regional Center outlining the amount and terms of the investment. The Regional Center hires an economist who determines the number of jobs that will be directly or indirectly created by the project (and thus sizing the total EB-5 capital limit).

• Work with other debt and equity financing sources to make certain the EB-5 terms and conditions coordinate with other financing terms.

• The project sponsor and the Regional Center negotiate the investment documents.

• The Regional Center (working together with the project sponsor) prepares the investment partnership documentation and an offering memorandum and business plan outlining the investment and submits same to the USCIS for approval.

• The documents are translated into the foreign language and the Regional Center markets the investment overseas through foreign brokers.

• The foreign investors make application to the USCIS for their visas and place deposits in escrow with the Regional Center.

• The USCIS processes the visa applications.

• The USCIS approves the visa applications.

• The approved foreign investors close their investment in the investment partnership, which in turn invests in the project partnership. These investments are sometimes made while the visa applications are being processed, but are returnable if visa approval is denied by the USCIS.

Securing these funds overseas is a complex and time-consuming process, but for real estate projects that will be in development for a lengthy period, and where the EB-5 raise will be in excess of $5 million, the process may be worthwhile given EB-5’s low cost of capital (versus traditional real estate mezzanine debt/equity).

To find out more about how EB-5 money can help you fund your commercial real estate developments, contact Garfield Traub, 972-716-3838.

The Omni Dallas Hotel Revenue Equals Savings for Taxpayers

The Omni Dallas Convention Center Hotel

The Omni Dallas Convention Center Hotel

What if your city could develop a hotel like the Omni Dallas Hotel at no cost to taxpayers and help transform your city into a place where investors, developers and new businesses come to create new jobs, new revenue and a variety of new and improved amenities that ultimately equate to financial security for the city and for those who live in it? It so happens that cities everywhere are doing this successfully with the construction of large developments such as Hotel and Conference Centers, Performing Arts Centers and other large mixed-use developments that attract tourists and visitors from other cities and promote growth and tourism.

As a very current example, the Omni Dallas Hotel, owned by the city of Dallas, reports that it is thriving to the degree that hotel officials project that it will bring in enough net revenue to meet its first-year debt obligations, not requiring Dallas taxpayers to contribute to the mortgage payment. Furthermore, financial projections also show that taxpayer support may continue to be unnecessary in years to come.

The Omni Dallas hotel was built with $477 million in city-backed bonds, and with the current performance, the Omni Dallas Hotel Manager Ed Netzhammer sates that he is confident that every penny of the city’s financing will be accounted for by the hotel’s revenue, indicating an excellent outlook for Dallas taxpayers.

According to the 2012 forecast displayed in The Dallas Morning News, the following was reported for the Omni Dallas Hotel.

The Omni Dallas Hotel 2012 Financial Forecast

  2011 2012
Occupancy Rate 58.5% 57%
Daily Room Rate $121.97 $169.34
Revenue Per Room $71.39 $96.52

The above numbers are steadily rising, and the Omni Dallas Hotel officials noted that in January, paid occupancy was a remarkable 65 percent, or 11 percentage points above projections. These 2012 numbers put the Omni Dallas Hotel on the same level as the Hilton Anatole. The combination of November – January numbers alone exceeded projections by 34%.

The most important information from the reports comes from the fact that in 2012, the Omni Dallas hotel expects to get 70 percent of sales from groups and conventions alone. “The inclusion of headquarters hotels is crucial for convention centers,” says Steve Moffett President of the Hospitality Division of Dallas-based development company Garfield Traub Development. “The numbers show that headquarters hotels enhance the performance of their convention centers, allowing them to meet and often exceed expectations.”

In the The Dallas Morning News article titled, “Omni’s 2012 sales expected to cover first-year debt payment,” the Omni Dallas Hotel manager Mr. Netzhammer expects his hotel to be the headquarters hotel or co-headquarters hotel in 16 citywide conventions. The 16 conventions are expected to fill up most downtown hotels, meaning not only great news for the Omni Dallas Hotel, but also for other hotels, restaurants, departments stores and other various businesses located in close proximity to the Dallas Convention Center.

Another great example of this type of success is not a hotel, but a Performing Arts Center. The Durham Performing Arts Center (DPAC) in downtown Durham, NC, had its skeptics before it was built, but now the development is very successful generating revenue to not only operate profitability, but enhance the numerous businesses surrounding it in downtown Durham. In addition, it now ranks among the top 10 in attendance of touring Broadway theaters nationally, and generated multiples of its originally-estimated net revenue. Since opening, the DPAC created new demand for restaurants, hotels and shops surrounding it.

To discuss how your city can achieve similar success like the Omni Dallas hotel and the Durham Performing Arts Center by building facilities which create new economic development for the community, contact Garfield Traub Development.

Durham Performing Arts Center (DPAC) Proves Big City Benefits Once Again

Durham Performing Arts Center (DPAC)

Durham Performing Arts Center - Durham, NC

If you were reading the Garfield Traub Public Private Partnerships blog recently you would have seen our last article titled, “Dallas Convention Center Hotel Development Brings Big Benefits to City.” There we explained how convention center hotel developments are boosting city revenue and bringing in new visitors and business in large numbers. Additionally, you may have read towards the end of the article about performing arts centers allowing cities to reap similar benefits. A press release from the Durham Performing Arts Center (DPAC) was released yesterday titled, “DPAC Gets Ready to Celebrate 3 Monumental Years,” reinforcing our point even more.

The DPAC press release cited that the Durham Performing Arts Center is celebrating multiple achievements in the month of November, including being named once again in the top 10 theater venues in attendance in America, the New York Times Travel section recognizing the DPAC as “an integral part of the city of Durham’s continuing success,” and the celebration of the DPAC’s 3rd Anniversary on November 30, 2011.

In a previous article titled, “Garfield Traub Development DPAC Proves Skeptics Wrong” we noted that trade publication Pollstar named DPAC #2 in the U.S. for attendance, and #4 internationally in 2011 Pollstar’s Top 100 Theater Venues for ticket sales. The DPAC has stated that, “In the U.S., DPAC is on the heels of the Coliseum at Caesars Palace in Las Vegas- a theater often referred to as the home of the greatest entertainers of the world, and the legendary Fox Theatre in Atlanta. Trailing DPAC is #4) Nokia Theatre L.A. Live , LA, CA #5) Beacon Theatre, NY, NY #6) Broward Ctr. Au-Rene Theater, Fort Lauderdale, FL, #7) Radio City Music Hall NY, NY, #8) Verizon Theatre at Grand Prairie, Grand Prairie, TX, #9) Orpheum Theater, Omaha, NE and #10) Dreyfoos Theater, West Palm Beach, FL.”

With a new theater development like the Durham Performing Arts Center being built in a down economy, like the Dallas Convention Center development, taxpayers and some city officials were skeptical. However, as time has proven again and again, it is these developments that, if planned well, can make the difference how a city weathers and how quickly a city recovers from a down economy.

Durham Performing Arts Center Representative Reginald James Johnson was recently asked by KCPW radio station, Utah’s first and only 24-hour commercial-free news and information radio station, if there was an economic benefit to building the DPAC. Mr. Johnson replied by saying, “The Durham Performing Arts Center opened in bad economy in 2008, and when the DPAC first opened they sold out and restaurants surrounding it were thriving despite others in most other cities plummeting in sales.” And Schuster Center Representative

Schuster Center

Schuster Center Dayton, OH

Ken Neufeld answered that same KCPW question by saying, “Dayton, Ohio was behind the scene and needed to be put in a favorable position to recruit businesses and people. Statistically, arts amenities are one of the top three things people are looking for when moving or coming there. Over half of ticket sales for the Lion King Broadway show were made up of those who had never been to theater before, thus bringing in new customers for all businesses located around the Center. Performing arts centers are an infrastructure that smart cities have to have, and it has paid off for Dayton a lot.”

If you would like to know how you might be able to get a Performing Arts Center like the DPAC developed in your city contact Garfield Traub.

DALLAS CONVENTION CENTER HOTEL DEVELOPMENT BRINGS BIG BENEFITS TO CITY

Omni Dallas Convention Center Hotel

Omni Dallas Convention Center Hotel

The new 1,000-room Dallas Convention Center Hotel made front page of the Dallas Morning News today announcing its debut this Friday. Along with that debut, the City has a lot more to be excited about with actual revenue earnings climbing well above the originally projected numbers.

This rise in revenue is not uncommon with Convention Center Hotels despite the down economy. Convention Center Hotels have proven, if planned well, to bring not only success in city revenue, but also in creating more jobs, boosting revenue for surrounding businesses, and in bringing more visitors to their cities.

The idea for the almost $500 million Dallas Convention Center Hotel stemmed from the City wanting to reap the benefits mentioned above. Luckily for Dallas, the hotel is already doing just that and it has not even opened yet.

Omni Dallas Convention Hotel Roof Top

Omni Dallas Convention Center Hotel Roof Top

According to City figures, The Dallas Omni Hotel has booked 273 meetings and conventions through 2017. And the Dallas Convention Center is already reaping the benefits from 89 of those that will use their space. Additionally, figures presented to the Dallas Morning News by Chief Financial Officer for the Dallas Convention Center & Visitors Bureau Matthew Jones, cited that in fiscal years prior to voters approving the hotel, the city booked 31 large conventions. In the fiscal years immediately following the vote, there were 45.

It is these reports that also have the City excited that they will more than likely not have to use any of their reserve funds to pay back any part of the $497 million in bonds used to build the hotel. The numbers also ease the City’s concerns that the taxpayers, who almost killed the hotel project in May of 2009 with a referendum will be angry with them in the end.

Durham Performing Arts Center (DPAC)

Durham Performing Arts Center - Durham, NC

“This anger is not uncommon with taxpayers ever since the onset of the current recession,” said Ray Garfield of Dallas-based Garfield Traub Development. “Taxpayers worry that their money is going to frivolous desires by the City, but it is actually projects like the Dallas Omni Hotel, Durham Performing Arts Center in Durham, North Carolina, and many others that prove that even though times might be tough, it is hospitality and entertainment developments like these that are helping to keep cities going and looking their best.”

To find out more about how a Convention Center Hotel or Performing Arts Center might help your city, contact Garfield Traub.

Utah Performing Arts Center Development Case Strengthened By City Successes

During a recent interview with KCPW, Utah’s first and only 24-hour commercial-free news and information radio station, three theater experts from Denver, Durham, N.C. and Dayton, Ohio discussed why theaters such as the proposed Utah Performing Arts Center in Salt Lake City are vital to the success of a City in a down economy and over the long term. The cost estimate for the proposed Utah Performing Arts Center is approximately $100 million, but other big theaters have made up for their initial cost in tenfold benefits to their cities.

A yearlong study commissioned by the Redevelopment Agency of Salt Lake City and conducted by Garfield Traub Swisher, the Utah-based company selected by the RDA in October 2009 to develop the theater, identified a bevy of cultural and economic benefits the proposed Utah Performing Arts Center would bring to the capital city.

Here is a sample of what each expert had to say about their Performing Arts Center experiences:

Ken NeufeldSCHUSTER CENTER  REPRESENTATIVE KEN NEUFELD, President and CEO of the Victoria Theatre Association, operator of the Benjamin and Marian Schuster Center, the Victoria Theatre, and the Loft Theatre in Dayton, Ohio

KCPW: How did your community pay for your facilities?

Ken Neufeld: Public Private Partnership

  • $40 Million in Philanthropy
  • State, County and City Supporters
  • Regional Transit Authority with Federal Money
  • Bonds

KCPW: Was there an economic benefit to building your Performing Arts Center?

Ken Neufeld: “Dayton, Ohio was behind the scene and needed to be put in favorable position to recruit businesses and people. Statistically, arts amenities are one of the top three things people are looking for when moving or coming there. Over half of ticket sales for the Lion King Broadway show were made up of those who had never been to theater before, thus bringing in new customers for all businesses located around the Center. Performing arts centers are an infrastructure that smart cities have to have and it has paid off for Dayton a lot.”

KCPW: Did the new performing arts center take away from the other local arts facilities and are you just ticket shifting or actually getting more visitors?

Ken Neufeld: “There is no crossover. We know from studying our audience what other kinds of venues they go to and are engaged in. When we did “Wicked” the Symphony actually captured more buyers as new subscribers from the “Wicked” audience then we did. So, it actually went in the reverse and we developed more of an audience for them. Our market is very different from others.”

KCPW: You mentioned you have an historic theater already. Why invest in a larger theater if you already have a theater that can bring touring productions into town?

Ken Neufeld: “The idea of having a retrofitted old theater is never really an acceptable option. It is like a city that looks at their sewer system and says, “We can patch up those cast-iron pipes, they will last another 10 years.” But that is really not the smart idea in the long run. You really have to look at these buildings as part of a city’s infrastructure, and these arts centers are a part of a smart modern city’s infrastructure in order to attract businesses and people to move to the community. These amenities help people to do this.”

KCPW: Final advice as to whether the Utah Performing Arts Center should be built in this economy.

Ken Neufeld: In times of a recession you can benefit at getting a facility at a better budget point. In 30 years when everyone is still enjoying this facility and it is doing everything it should be doing, I don’t think anyone is going to be talking about the $100 million bond issue at that point. They are going to be slapping themselves on the back saying ‘wasn’t that a great decision?’”

 

Reginald James JohnsonDURHAM PERFORMING ARTS CENTER REPRESENTATIVE REGINALD JAMES JOHNSON, Interim Director of the Durham, North Carolina Department of Community Development

KCPW: How did your community pay for your facilities?

Reginald James Johnson: Public Private Partnership

 

  • $30 Million in certificates of participation paid by hotel occupancy taxes
  • Naming Rights Partnerships
  • Duke University provided $7.5 million

KCPW: Was there an economic benefit to building your Performing Arts Center?

Reginald James Johnson: The Durham Performing Arts Center opened in bad economy in 2008, and when the center first opened they sold out and restaurants surrounding it were thriving despite others in most other cities plummeting in sales.”

KCPW: You mentioned you have an historic theater already. Why invest in a larger theater if you already have a theater that can bring touring productions into town?

Reginald James Johnson: “Because we did not have one that could actually hold a Broadway play in Durham. Stage requirements did not accommodate all the equipment a Broadway theater needs in the historical theater and we wanted to have a Broadway play come to Durham.”

KCPW: Is this the right time? The economic climate is not great, as we all know. If you had to make this choice again in your respective cities, would you do this now?

“We can’t pull back in a down economy. Everything can’t just come to a halt. We have to keep moving forward regardless. We in Durham look toward the future and we have visions of what we want the quality of life to look like. And even now, we are doing the largest revitalization project we have ever done. We need to move forward in times like these because life goes on, and our children and our children’s children need to have something to benefit from.”

 

Randy WeeksDENVER CENTER FOR PERFORMING ARTS RANDY WEEKS, President of the Denver Center for the Performing Arts

KCPW: How did your community pay for your facilities?

Randy Weeks: Public Private Partnership

 

 

  • Naming Rights Partnerships
  • Bond Issues
  • Facilities Development Admission Tax (FDA) – This tax comes from each ticket sold to service bonds, this tax has paid for the facility two times over

KCPW: Did the new performing arts center take away from the other local arts facilities and are you just ticket shifting or actually getting more visitors?

Randy Weeks: “The vibrancy of the local theater scene is really quite incredible and flourishing. We are feeding the cultural economy. The more exposure people have to an art form the more they want it.”

KCPW: Is this the right time? The economic climate is not great, as we all know. If you had to make this choice again in your respective cities, would you do this now?

Randy Weeks: “The main advice I would give is you should have done it 10 years ago, and putting it off more is just going to cost more. With the older structures and little amenities people just don’t want to go downtown anymore.”

In order for this state-of-the-art theater to be completed, the Utah Performing Arts Center needs to have the support of sponsors like you who would like to add their name as a “UPAC Playbill Partner” and receive regular project reports, upcoming UPAC Newsletters and exclusive, partners-only opportunities!

To see how other existing Performing Arts Centers have benefited their cities, visit the Utah Performing Arts Center website.

Garfield Traub Public Private Development Group Growing Fast

The term Public Private Development is quickly rising in popularity due to the success of those using Public Private Partnerships to obtain much needed funds to renew government infrastructure, improve transportation, and construct new projects that state, local and Federal governments could not afford before due to budget constraints.

Due to the importance and rapid growth of using Public Private Partnerships in today’s developments, Garfield Traub Development decided to create a Public Private Development group within LinkedIn, the world’s largest professional network. The group specializes in helping public/private sector decision makers involved in building developments to network with others in both the decision making and facilitation process of their developments.

“I am extremely happy with what our Public Private Development LinkedIn group has accomplished thus far. The quality of material that has been posted by members has exceeded my expectations,” said Mr. Garfield. “This has turned into such an impactful tool for those like me who are involved in the development process and for those looking for others to assist them in their developments.”

The group was started by Garfield Traub six months ago and already has more than 550 members comprised of public and private sector decision makers specializing in site identification and acquisition, zoning and entitlement, financing, investment, design and construction, leasing, management and asset management, as well as professionals such as general contractors, architects, engineers, specialty consultants, investment bankers, mortgage brokers, lenders and investors.

“Our goals are for professionals to get answers to their questions and for them to have the ability to give answers and suggest resources to help each other to succeed. This is especially important in this economic environment where constrained government budgets have made financing and development of essential facilities quite difficult,” said Mr. Garfield. “It is more important than ever for us to find ways to come together as we emerge from this recession and help each other and our clients succeed.

If you or anyone you know are involved in any part of the commercial real estate development process and would like to contribute or ask questions involving public private partnerships, you too can join Garfield Traub’s Public Private Development group on LinkedIn today for free. For more information on how you can get your public developments financed and completed, please visit the Garfield Traub website.

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