Waterside – The Cordish Company’s presentation to Norfolk City Council

Waterside – The Cordish Company’s presentation to Norfolk City Council


>>IF I COULD GET YOUR ATTENTION, PLEASE. THE COUNCIL WOULD LIKE TO BEGIN THIS SECOND
PHASE OF TONIGHT’S AGENDA, WE HAVE COME HERE TO WATERSIDE FOR THE PRESENTATION BY THE TWO
FINALISTS, IF YOU WILL, FOLKS WHO HAVE RESPONDED TO THE CITY’S REQUEST FOR PROPOSALS WHAT TO
DO WITH WATERSIDE. FOR LACK OF A BETTER WORD, I WILL SAY ONE
PROPOSAL IS THE CORDISH PROPOSAL, THE OTHER IS THE LINDSAY PROPOSAL. EACH PRESENTER HAS BEEN TOLD THEY HAVE 45
MINUTE, WE WOULD LIKE YOU TO WORK WITH US, THIS IS THE FIRST TIME THE CITY COUNCIL IS
SEEING THIS. THIS IS AS CLOSE AS WE CAN GET TO YOU TIMELY
TRANSPARENT INFORMATION AS WE GET IT, SO, THE COUNCIL MAY HAVE A COUPLE OF QUESTIONS
BECAUSE WE ARE SEEING IT JUST FOR INFORMATION PURPOSES, WE ARE NOT HERE TONIGHT TO DEBATE
THE PROS AND CONS OF ANY PROPOSAL. WE STILL HAVE THE MANAGER WHO WILL BE SORTING
THROUGH ALL THIS AND MAKE RECOMMENDATIONS TO US. TO THE EXTENT THE COUNCIL HAS ANY QUESTIONS
AT ALL, I WOULD ASK THAT THEY JUST BE FOR INFORMATIONAL PURPOSES AND NOT FOR ANYTHING
OTHER THAN HA. I WOULD NOT LIKE TO TELEGRAPH TO EITHER ONE
OF THE PROPOSALS THE COUNCILs POSITION, WOULDN’T WANT TO HANEY CAP THE MANAGER. WE HAVE A NUMBER OF FOLKS HERE TONIGHT, WE
WILL NOT HEAR FROM THE PUBLIC ON THIS MATTER, BUT WE DO APPRECIATE YOU BEING HERE, GLAD
TO HEAR FROM YOU LATER TO TELL YOU THE TRUTH. SO, WITH THAT THE FIRST FOLKS ARE THE CORDISH
PROPOSAL AND WE ARE GLAD TO HEAR FROM YOU, THANK YOU.>>THANK YOU SO MUCH FOR HAVING US DOWN AND
BEING GIVE ENAN OPPORTUNITY — GIVEN AN OPPORTUNITY TO TALK TO YOU. MY NAME IS READ CORDISH, I WOULD LIKE TO INTRODUCE
OTHER MEMBERS OF THE COMPANY THAT HAVE JOINED ME HERE TODAY, MICHAEL STULTZ IS A DEVELOPMENT
DIRECTOR FOR THE CORDISH COMPANY AND HAS BEEN INVOLVED IN PUTTING TOGETHER THIS PROPOSAL
AND WOULD CONTINUE TO STAY INVOLVED IN THIS PROPOSAL ONGOING ALONG WITH MYSELF AND THE
OTHER EXECUTIVES AND PROFESSIONALS THAT WOULD BE ASSIGNED TO THE PROJECT. MEGAN FLATTERY IS DIRECTOR OF MARKETING AND
HANDLES OUR LARGE SCALE DOWNTOWN PROJECT ACROSS THE COUNTRY AND ALSO MY HONOR TO INTRODUCE
MY FATHER DAVID CORDISH WHO I WILL INTRODUCE IN MORE DETAIL IN A FEW MINUTES BEFORE HE
SAYS HIS REMARKS. WE THOUGHT IF IT IS OKAY WITH THE COUNCIL
BEST TO INTRODUCE OURSELVES VIA VIDEO AND THEN GET INTO OUR REMARKS.>>IT’S OKAY.>>THERE IS NOTHING WE CAN’T TALK ABOUT. IT’S A VIDEO.>>HERE WE GO. WE’RE DOING TO COMMENCE WITH OUR REMARKS AND
IF WE HAVE A CHANCE AT THE END WE’LL COME BACK TO THE VIDEO. I’D LIKE TO START BY INTRODUCING THE CHAIRMAN
OF THE CORDISH COMPANY, HAPPENS TO BE MY FATHER DAVID CORDISH. THE CORDISH COMPANY IS A MULTIPLE GENERATIONAL
FAMILY HELD PRIVATE BUSINESS. MY FATHER IS OUR PRESIDENT AND CHAIRMAN, I’M
ALSO HONORED TO WORK WITH MY BROTHERS, THE THREE OF US ARE VICE PRESIDENTS WITHIN THE
COMPANY. MY FATHER HAS BEEN RUNNING THE COMPANY IN
THE PAST 40 YEARS IN WHICH HE’S TAKEN FROM RUNNING THE CORDISH COMPANY TO SERVING ON
THE PUBLIC SIDE, HE’S A INDIVIDUAL THAT UNDERSTANDS PRIVATE DEVELOPMENT BUT PUBLIC SIDE WHERE
HE’S WORKED FOR TWO PRESIDENTS, PRESIDENT CARTER AND PRESIDENT REAGAN. IN HIS ROLE AS CHAIRMAN OF THE CORDISH COMPANY
HE HAS BEEN INSTRUMENTAL IN DEVELOPING SOME OF THE LEADING LARGE SCALE DOWNTOWN PUBLIC-PRIVATE
DEVELOPMENTS ANYWHERE IN THE COUNTRY. HE’S A TRUE VISIONARY IN THAT REGARD AND HAS
CREATED A CULTURE WITHIN OUR COMPANY THAT I THINK IS WHAT SETS US APART IN DEVELOPMENT,
SO, WITHOUT FURTHER ADO IT MY PLEASE TOUR INTRODUCE DAVID CORDISH. [APPLAUSE]
.>>GOOD AFTERNOON OR EVENING, WE’RE PRETTY
FAR DOWN THE ROAD OF AFTERNOON. I’M CHAIRMAN OF THE CORDISH COMPANY WHICH
IS 103 YEARS OLD AT THIS POINT, THE COMPANY WAS FOUNDED BY MY GRANDFATHER AND MY FATHER
PAUL SUCCEEDED HIM AND WORKED FULL-TIME UNTIL HE WAS 93 YEARS OLD. I TOOK OVER, AS READ SAID, IN THE LATE 60s,
EARLY 70s AND HAVE BEEN CHAIRMAN EVER SINCE. AND THE FOURTH GENERATION IS READ AND HIS
TWO BROTHERS. WHEN YOU ARE A PRIVATELY HELD COMPANY THAT
HAS BEEN AROUND FOR A WHILE YOU APPROACH PROJECTS MAYBE A LITTLE DIFFERENTLY THAN OTHERS DO. WE BUILD THEM FROM SCRATCH OR REMODEL THEM,
WE DESIGN THEM, WE FINANCE THEM INTERNALLY OURSELVES AND THEN WE MANAGE THEM AND THEN
WE KEEP THEM. AND WE HAVE DOZENS AND DOZENS OF PROJECT AROUND
THE COUNTRY, SOME OF WHICH WE HAVE HAD FOR 70 OR 80 YEARS, FOR 50 OR 60 YEARS, FOR 30
OR 40 YEARS. AND WHEN YOU HAVE THAT KIND OF AN OWNERSHIP
MENTALITY AS A DEVELOPER, YOU APPROACH THINGS IN A LITTLE DIFFERENT WAY. BECAUSE YOU KNOW THAT YOU ARE GOING TO BE
WITH THAT PROJECT, YOU ARE NOT GOING TO CUT CORNERS IN THE BEGINNING AND YOU ARE NOT GOING
TO CUT CORNERS OR DO DEALS FOR TENANTS OR TENANT SPACES THAT YOU THINK ARM THE PROJECT
IN THE LONG — THAT YOU THINK HARM THE PROJECT IN THE LONG RUN. WE HAVE THAT PERSPECTIVE. AND IT IS ONE OF OUR TRADITIONS, I WOULDN’T
SAY IT’S EVERY SINGLE PROJECT, BUT ONE WE ARE PRETTY PROUD OF THAT MANY OF OUR PROJECTS,
MANY, MANY OF THEM HAVE UNDER SOME PREVIOUS OWNERSHIP, UNDER SOME PREVIOUS DEVELOPER FAILED,
AND WE ARE BROUGHT IN TO TAKE IT OVER, FREQUENTLY BY A CITY, BY A STATE, BY A COUNTY, BY AN
INDIAN TRIBE, YOU NAME IT, PUBLIC SECTOR TO REVITALIZE IT AND TO MAKE IT EITHER GREAT
FOR THE FIRST TIME, MANY OF THEM THAT FAIL DON’T HAVE THE LONG HISTORY THAT WATERSIDE
HAS HAD, SO THAT WE HAVE TO REALLY CREATE IT FROM SCRATCH. OTHERS WE HAVE TO BRING BACK TO ITS HEYDAY. I COULD TAKE YOU A ROUND THE COUNTRY, I DON’T
THINK WE HAVE ENOUGH TIME, WE ONLY HAVE 45 MINUTES AND GO PROJECT BY PROJECT. MANY OF THEM YOU WOULD SEE HAVE THE SAME HISTORY
AND SAME PROBLEM, SAME SITUATION ALL OF US IN THIS ROOM ARE FACING TODAY, YOU HAVE A
PROJECT THAT NEEDS A COMPLETE REVITALIZATION. BUT AS YOU WILL HEAR FROM REID WHO WILL GET
INTO THE PARTICULARS IN A MINUTE, WE DON’T THINK IT A PROJECT THAT SHOULD BE DISCARDED,
WE DON’T THINK IT A BUILDING OR SITE THAT SHOULD BE DISCARDED. THERE IS A LOT RIGHT ABOUT WATERSIDE. THERE ARE THINGS THAT WE ARE GOING TO CHANGE
IF WE ARE FORTUNATE ENOUGH TO BE SELECTED BY YOU, AND WE ARE GOING TO OPEN IT UP AND
MAKE IT A PEOPLE PLACE AND REID WILL DETAIL THAT. BUT THE BONES OF THIS BUILDING BELONG TO THE
PUBLIC, THEY HAVE HISTORIC SIGNIFICANCE TO THE PUBLIC, THEY HAVE MEMORIES TO THE PUBLIC
AND THINGS THAT SHOULD BE CAPITALIZED ON. THAT WERE DONE RIGHT AT THE BEGINNING AND
JUST NEED TO BE REFRESHENED NOW. IF I HAD TO GIVE ONE SINGLE HALLMARK OF US
WHICH PROBABLY DISTINGUISHES US FROM 99% OF THE DEVELOPERS IN THE COUNTRY, ESPECIALLY
TODAY IS WE BUILD OUT OF OUR OWN EQUITY, SO OUR COMMITMENT TO THE SIT IT IS IF WE ARE
SELECTED, WHAT WE ARE PROPOSING TO YOU, WE WILL SIMPLY BUILD IT OUT OF OUR MONEY. WE DON’T WANT THE CITY’S MONEY AND WE DON’T
NEED A BANK’S MONEY, NOT TO SAY WE NEVER GO TO A BANK. SOMETIMES WHEN OUR PROJECTS ARE FINISHED,
THEY ARE COMPLETED, THEY ARE LEASED, THEY ARE OPEN TO THE PUBLIC, SOMETIMES THEN WE
WILL GO TO A BANK AND PUT ON FINANCING, BUT WHAT WE DO IS BUILD THEM OUT OF OUR OWN CASH. WE ARE FORTUNATE TO BE IN A POSITION TO DO
THAT AND ESPECIALLY IN THE LAST THREE OR FOUR YEARS, FIVE YEARS WHAT MANY PEOPLE CALL THE
POST LEHMAN YEARS, THE COLLAPSE OF THE BANK, PEOPLE ARE VERY STINGY, YOU BETTER BE IN THAT
POSITION. BUT MAYBE BECAUSE WE’VE BEEN AROUND FOR A
HUNDRED YEARS, THAT’S OUR COMMITMENT TO YOU. IT ENABLES US TO GO MUCH QUICKER AND CERTAINLY
WITH MUCH MORE CERTAINTY. AND, AGAIN, LET ME JUST REPEAT IT, WE DON’T
NEED A CHECK FROM THE CITY, DON’T NEED A LOAN FROM THE CITY, DON’T NEED ANYTHING FROM A
BANK, WE WILL COMMIT TO YOU TO BUILD IT. I WILL GIVE YOU ONE EXAMPLE, WE ARE ABOUT
TO OPEN RIGHT NEAR THE BALTIMORE-WASHINGTON AIRPORT, IF ANY OF YOU EVER USE DWI, PART
OF THE MALL WE ARE BIDDING ALMOST — A LITTLE OVER $600 MILLION CASINO, RETAIL ENTERTAINMENT
PROJECT AND WE MADE THIS EXACT COMMITMENT TO THE STATE OF MARYLAND WHEN THEY SELECTED
US AND IT WAS A VERY, VERY, VERY HOTLY, CONTESTED LICENSE, BECAUSE ITS VALUABLE AND IN THE GREAT
STATE OF MARYLAND. WE SAID TO THEM AND I WILL NEVER FORGET THE
PANEL UP BEFORE US, DAVID AND MANY OF THESE PEOPLE HAVE KNOWN US ALL OUR LIVES, IT’S VERY
DIFFICULT TODAY TO FINANCE THIS MAGNITUDE OF CASINO, MORE THAN HALF A BILLION DOLLARS,
HOW DO YOU KNOW YOU CAN GET A LOAN. I SAID I DON’T, BUT WE WILL BUILD IT.
AND WE HAVE DELIVERED IT AS PROMISED AND WE’VE DONE IT WITH OUR OWN FUBDZ AND THAT’S THE
— OUR OWN FUNDS AND THAT’S THE SAME COMMITMENT I MAKE TO YOU. I’M JUST GOING TO TRY TO HIT A FEW OF THE
HIGHLIGHTS OF THE HISTORY OF THE COMPANY AND THEN REID WILL GET INTO SPECIFICS OF WHAT
WE WILL DO HERE. WE DO MORE PUBLIC-PRIVATE DEVELOPMENT THAN
AS FAR AS ANY DEVELOPER IN THE UNITED STATES WHERE SOME PUBLIC ENTITY HAS A RFP LIKE THIS. WE’RE USE ALE PEOPLE SIMPLY CALL US BUT SOMETIMES
IT ISFP. THAT IS A PROCESS YOU NEED TO BE USED TO DEALING
WITH AND IT’S A PROCESS WHERE YOU HAVE TO BE OPEN TO THE INTERCHANGE AND THE INNER PLAY
THAT GOES ON IN A PUBLIC-PRIVATE PARTNERSHIP. IT’S DIFFERENT THAN SIMPLY DOING A PRIVATE
DEVELOPMENT. WE HAVE DOZEN OF PROJECT JUST PRIVATE, WE
BUY LAB, BUILD THE BUILDING OR WHATEVER WE ARE BUILDING. THE PUBLIC-PRIVATE PROCESS IS DIFFERENT BECAUSE
IT’S EXTREMELY DIE NAM IB. IT WOULD BE — DYNAMIC. IT WOULD BE VERY FOOLISH OF US AND DUMB TO
THINK WE CAN GO INTO JURISDICTIONS AROUND THE UNITED STATES AND SIMPLY TELL US WE KNOW
BEST, THIS IS EXACTLY WHAT IT SHOULD BE BECAUSE OBVIOUSLY THERE WILL BE PEOPLE EITHER IN THE
COUNCIL OR MAYOR OR OUT IN THE PUBLIC HERE TODAY OR OTHER GOVERNMENT AGENCIES THAT WILL
HAVE IDEAS THAT KNOW THIS COMMUNITY BETTER THAN WE CAN EVER KNOW IT THAT WILL INTERPLAY
WITH US AS WE GO FORWARD, AND THAT IS A PROCESS THAT YOU HAVE EITHER DONE COUNTLESS TIMES
OR YOU HAVEN’T AND WE HAVE DONE IT OVER AND OVER AGAIN. I LOVE IT. IT IS NOT THE EASIEST WAY IN THE WORLD TO
MAKE A BUCK, PUBLIC-PRIVATE, IT’S EASIER TO JUST GO BUILD A BUILDING. BUT WE FINE IT REWARDING. I’VE BEEN ON THE PUBLIC SIDE IN BOTH PRESIDENTIAL
YEARS AND IN NONPROFIT THAT HAS TO DO WITH REVITALIZATION OF OUR DOWNTOWN AND HARBOR. OUR CORPORATE HEADQUARTERS AND IS LOCATED
IN ONE OF THE PROMINENT BUILDINGS IN THE BALTIMORE INNER HARBOR. IF YOU ARE IN THE AUDIENCE, ON THE STAGE OR
PLATFORM THAT YOU ARE COMING UP TO BALTIMORE, IT’S CALLED THE POWER PLAN, RIGHT IN FRONT
OF THE AQUARIUM. AND IT IS SHOWN, WE HAVEN’T YET MADE THIS
THING WORK COMPLETELY, THIS SLIDE THING BUT WE HAVE THAT ONE UP THERE AND THAT IS THE
POWER PLANT ON MY LEFT, AND YOU WILL SEE PHILIP SEAFOOD, THE HARD ROCK CAFE AND OUR HEADQUARTERS
AND THE WHOLE BIDDING ABOVE IT. BUT PUBLIC PRIVATE IS SPECIAL, AND WE THINK
WE DO IT WELL, WE’VE BEEN DOING IT FOR MANY, MANY DECADES, AND IT ROTATES ON, REVOLVES
AROUND INPUT FROM THE LOCAL COMMUNITY BECAUSE IT’S A PUBLIC-PRIVATE PARTNERSHIP. A COUPLE OTHER THINGS AND I WILL TURN IT OVER
TO REID. JUST ONE FINAL THING ON PUBLIC-PRIVATE, WHEN
YOU HAVE A PROJECT LIKE THIS THAT NEEDS A REWORKING, IT NEEDS A RENAISSANCE, WHAT WE
HAVE FOUND WHEN WE HAVE BEEN BROUGHT INTO CITIES AND PROJECT LIKE THIS IS YOU NEED A
FRESH BROOM. IT ONE OF THE REASONS WE’VE BEEN ABLE TO SUCCEED
IS WE COME IN FRESH AND HAVE NEW IDEAS, AND I THINK PARTLY THE PROBLEM HERE HAS BEEN,
AND YOU’VE HAD A VERY REPUTABLE LOCAL FIRM THAT HAD THE MANAGEMENT AND LEASING ALMOST
THROUGHOUT THE WHOLE 10 YEARS TO 2000, IT’S TIME FOR FRESH IDEAS AND A DIFFERENT APPROACH. SOME THINGS WE ARE GOING TO KEEP AND THE BUILDING
WE’RE GOING TO KEEP AND CHANGE, BUT THE WAY YOU ARE GOING TO TENANT IT AND THE WAY YOU
WILL EXPOSE IT TO THE PUBLIC, THE WAY THE FREE SPACES WILL BE ORCHESTRATED HAS TO BE
A DIFFERENT APPROACH. WE WERE ASKED TO COMMENT ON OUR FINANCIAL
PROPOSAL AND I HAVE SORT OF ALLUDED TO IT ALREADY, IT FAIRLY SIMPLE. RIGHT NOW IT IS A PROJECT THAT IS BARELY IF
IT IS BREAKING EVEN FOR THE CITY. IT HAS GOT ABOUT 2.5 MILLION REVENUE COMING
IN AND ABOUT — OF EXPENSES AND IF YOU TAKE ALL THE TAXES YOU ARE COLLECTING, IT HAS HISTORICALLY
IN 2010 BALANCED OUT. THE PROBLEM IS THAT IT IS IN DECLINE FROM
A REVENUE STANDPOINT, FROM THE CITY’S PERSPECTIVE, SO IT IS FORECAST IF IT ISN’T ALREADY TO BE
A NET DRAIN ON THE CITY TREASURY. OUR PROPOSAL IS WHEN WE TAKE IT OVER, FROM
THAT MOMENT FORWARD THERE IS NO MORE DRAIN ON THE CITY, IT’S UP TO US TO CARRY THE PROJECT,
NOT ONLY UP TO US TO REBUILD IT BUT UP TO US TO CARRY IT. WHAT THAT WILL RESULT IN IS THE HUNDREDS OF
THOUSANDS OF DOLLARS OF TAXES NOW THAT YOU COLLECT FROM VARIOUS SOURCES RELATED THIS
BUILDING NOW USED TO CARRY IT FOR YOU WILL NOW JUST TWO TO THE CITY TREASURY. AND THAT IS OUR PROPOSAL. IT ISN’T COMPLICATED. AS I SAID, THERE IS NO REQUEST OF THE CITY
OF MONEY. JUST THE OPPOSITE. THERE WAS AN ADVISORY PANEL AND I WAS READING
THIS ON A PLANE COMING DOWN OF FIVE PEOPLE THAT RECOMMENDED TO YOU ALL HOW TO PUT TOGETHER
THE RFP AND WHAT SHOULD BE DONE WITH THIS BIDDING AND IN READING THESE FIVE, I’M ONLY
MENTIONING TWO BECAUSE YOU MAY WANT TO GO BACK TO IT, THESE ARE INDEPENDENT CONSULTANTS
THE CITY HIRED, YOU WILL FIND ALMOST ALL OF THE RECOMMENDATIONS TO YOU OUR PROPOSAL HIT
OP THE POINTS THAT THEY TOUCH ON, ADAPTIVE REUSE, ET CETERA, ET CETERA. LET ME CLOSE BY SAYING WE’VE HAD OUR EYE ON
THIS BUILDING FOR A LONG TIME, WE’RE FAMILIAR WITH THIS AREA, WE’VE DEVELOPED IN THE AREA,
NOT IN NORFOLK. IT EXCITING SPACE AND EXTREMELY IMPORTANT
TO THE CITY WHERE IT IS LOCATED. THE CITY IS ALSO ONE OF YOUR — YOU HAVE DONE
TERRIFIC PUBLIC-PRIVATE WORK DOWN HERE. WE ARE VERY FAMILIAR WITH THE DEVELOPER, THE
TALMAN COMPANY THAT HAS DONE YOUR SUCCESSFUL MALL WHICH WAS AN INCREDIBLE PUBLIC-PRIVATE
TRANSACTION THAT VERY FEW CITIES IN ANY OF 20 TIMES YOUR SIZE COULD HAVE PULLED OFF.
AND WHEN WE GO, WE ARE ASKED IN TO MANY, MANY MORE PROJECT THAN WE CAN DO, THERE ARE ONLY
SO MANY WE CAN DO. WHEN WE PICK A COUPLE EVERY FEW YEARS. WE LOOK FOR A CITY THAT WORKS. AND THE TALMAN COMPANY THAT HAS DONE YOUR
MALL ARE PROBABLY THE BEST MALL DEVELOPER IN THE UNITED STATES IF NOT THE WORLD, THEY
ARE PARTNERS OF OURS. WE DID A MAJOR PROJECT IN CHARLESTON, SOUTH
CAROLINA, YEARSING A, IT’S CALLED CHARLESTON PLACE, IT DID A LOT TO BRING BACK ALL OF CHARLESTON. WE DID THAT TOGETHER IN 1983. AND, SO, WE TALK ALL THE TIME, AND THEY HAVE
DESCRIBED TO US HOW THE PUBLIC-PRIVATE PROCESS HAS WORKED HERE SUCCESSFULLY, THAT IS ONE
EXAMPLE. I KNOW OTHERS BUT THAT IS THE PEOPLE WE HAVE
PARTNERED WITH. SO, THIS PROJECT HAS THE INGREDIENTS WE ARE
LOOKING FOR, IT’S GREAT DIRT, GREAT LOCATION AND GREAT BUILDING WHICH NEEDS TO BE REWORKED
WITH A CITY THAT KNOWS HOW TO DO PUBLIC, PRIVATE, WE LOOK FORWARD TO HOPEFULLY WORKING WITH
ALL OF YOU. I WILL TURN IT OVER TO REID WHO WILL GET SPECIFIC. [APPLAUSE]
>>THANK YOU. I WANTED TO ALSO INTRODUCE ANOTHER EXECUTIVE
WITH THE CORDISH COMPANY WITH US, HIS NAME IS RICH BURNS, HE’S OUR DIRECTOR OF ARCHITECTURE
AND DESIGN. ONE THING THAT IS OF NOTE IS THAT THE CORDISH
COMPANY IS FULLY INTEGRATED, WE HAVE EVERY DISCIPLINE WITHIN OUR EXECUTIVE RANKS TO PULL
OFF EVERY PHASE OF A DEVELOPMENT PROCESS, BE IT DESIGN, BE IT ENGINEERING, BE IT CONSTRUCTION,
BE IT LEASING, MARKETING AND ULTIMATELY OPERATIONS WHICH IS SO INTEGRAL TO A PROJECT OF THIS
NATURE, YOU CAN’T JUST DEVELOP IT AND THEN COLLECT RENT, IT AN ONGOING, LIVING, BREATHING
THING THAT HAS TO BE TAKEN CARE OF, MARKETED AND OPERATED TO THE HIGHEST POSSIBLE STANDARD,
THAT’S WHAT WE DO AS A COMPANY. ALTHOUGH WE HAVE EVERY DISCIPLINE INTERNALLY
WITHIN THE DEVELOPMENT PROCESS, THAT DOES NOT MEAN THAT WE DON’T HIRE TERRIFIC COMPANIES
AND CONSULTANTS TO HELP US ON EACH INDIVIDUAL PROJECT, AND THEY TEND TO BE DIFFERENT FOR
DIFFERENT PROJECTS BECAUSE THEY TEND TO BE LOCAL, THEY TEND TO BE FROM THAT AREA. WE CAN PROVIDE THEM THE GUIDANCE AND LEADERSHIP
AND EXPERIENCE THAT WE BRING TO BEAR FROM OUR PROJECT WE DEVELOPED AROUND THE COUNTRY
AND THEY BRING TO US THE SENSE ABILITY OF WHAT WORKS BOTH FROM A FIELD STANDPOINT, A
LOOK STANDPOINT AND STYLE STANDPOINT IN THE PARTICULAR MARKET THAT WE ARE DEVELOPING,
SO WE WOULD BE BRINGING ONTO OUR TEAM THE BEST LOCAL CONSULTANTS THAT WE COULD POSSIBLY
FIND WITHIN THE DESIGN COMMUNITY AS WELL AS CONSTRUCTION COMMUNITY. AS WE MOVE INTO CONSTRUCTION PROCESS, ONE
OF THE COMMITMENTS WE MAKE AS A COMPANY AND IT VERY IMPORTANT TO US. IN SOME CITIES IT A REQUIREMENT AND IN SOME
IT’S NOT BUT THAT WE REACH AND EXCEED MINORITY PARTICIPATION GOALS IN THE DEVELOPMENT PROCESS. THAT IS AN EXTREMELY IMPORTANT PART, WE THINK,
OF A PUBLIC-PRIVATE PROCESS OF WORKING WITH A CITY AND SOMETHING THAT WE WOULD ABSOLUTELY
COMMIT TO IN NORFOLK LIKE WE DO ACROSS THE COUNTRY. MY FATHER REFERENCED THE BUILDING IN FRONT
OF YOU ON THIS SLIDE WHERE OUR CORPORATE HEADQUARTERS ARE, IT RESIDES IN BALTIMORE’S INNER HARBOR. IT WAS ORIGINALLY A POWER PLANT THAT SERVICED
ALL OF DOWNTOWN BALTIMORE, IT A COAL-BURNING POWER PLAN, IT STOPPED BEING FUNCTIONAL AND
SAT FOR 30 YEARS BEFORE SIX FLAGS CAME IN AND MADE AN INDOOR AMUSEMENT ATTRACTION, DID
NOT WORK, WENT OUT VACANT ANOTHER 10 YEARS. WE CAME IN, WERE ACTIVE IN THE DEVELOPMENT
OF THE INNER HARBOR IN GENERAL, AND AT THE REQUEST OF THE CITY AND CREATED WHAT YOU SEE
IN THE SLIDE, THE POWER PLANT PROJECT WHICH REALLY HELPED CONTINUED THE REVITALIZATION
OF THE INNER HARBOR, BROUGHT IT FURTHER EAST THAN IT HAD EVER BEEN BEFORE. WE THEN SUBSEQUENT LIT BROUGHT IT FARTHER
NORTH THAN IT HAD BEEN WITH POWER PLANT LIVE, RETAIL AND ENTERTAINMENT DISTRICT, ONE OF
THE TRUE COMMERCIAL SUCCESS TWO BLOCKS NORTH OF THE HARBOR. THOSE TWO PROJECT POWER PLANT AND POWER PLANT
LIVE ARE 15 YEARS OLD. THEY ARE MORE SUCCESSFUL THAN THEY WERE 15
YEARSING A. LAST YEAR THEY WERE NUMBER 2 AND 3 RESPECTIVELY
THE MOST VISITED ATTRACTIONS IN THE STATE OF MARYLAND. THAT’S SOMETHING WE ARE PROUD OF, BOTH THEIR
SUCCESS BUT ALSO THEIR LONGEVITY. WE CAN POINT TO ATE CROSS THE COUNTRY, WHETHER
BALL I MORE NICE IN OUR HOMETOWN WHERE HEADQUARTERS ARE BUT WE CAN POINT TO IT IN HOUSTON WHERE
WE TOOK THEIR OLD CONVENTION CENTER AND CONVERTED TO A THRIVING ENTERTAINMENT AND RETAIL PROJECT. IN LOUISVILLE, KENTUCKY, 10 YEARS OLD, A FAILED
INDOOR MALL AND CONVERTED IT INTO FOURTH STREET LIVE, OR IN KANSAS CITY, MISSOURI, WHERE WE
CREATED THE POWER AND LIGHT DISTRICT, A 8-BLOCK REVITALIZATION OF THEIR TOWN TOWN. AS YOU LOOK ACROSS THE COUNTRY AT THESE DIFFERENT
PROJECTS, YOU START TO ALMOST BE TAKEN BY THE FACT OF HOW DISSIMILAR THEY ARE FROM ONE
DEVELOPMENT TO THE OTHER. THEY DON’T LOOK THE SAME EAST NEAR ARCHITECTURE,
MATERIALS, LAYOUT OR DESIGN. THEY HAVE VERY DIFFERENT TENANT MIXES. AND THEY OPERATE IN DIFFERENT MANNERS. THEY ARE ABOUT THE OPPOSITE THAT YOU COULD
GET FROM A COOKIE CUTTER APPROACH. THERE IS, THOUGH, SOME COMMON SIMILARITIES
THAT I THINK ARE UP CREDIBLE I IMPORTANT AND INCREDIBLY MEANINGFUL AS WE TALK ABOUT OUR
WATERSIDE PROPOSAL. AND THAT IS AT THEIR CORE THEY CREATE CENTRAL
GATHERING SPOTS FOR THEIR COMMUNITIES THAT THEY RESIDE IN. THE PUBLIC SPACES, IF YOU WILL, ARE AS IMPORTANT
AS THE TENANT SPACES THAT COMPRISE THE PROJECT, AND WE SPEND MORE INVESTMENT UP FRONT AND
MORE TIME ONGOING IN THOSE PUBLIC SPACES THAN I THINK JUST ABOUT ANY OTHER DEVELOPMENT COMPANY
THAT I HAVE SEEN. THE REASON BEING IS THAT FOR THESE PROJECTS
TO BE WHAT THEY SHOULD BE, TO BE WHAT WATERSIDE I BELIEVE ONCE WAS IS THEY DO BECOME THE GATHERING
SPOT FOR THE COMMUNITY AT LARGE, A PLACE THEY COME TO CELEBRATE SPECIAL EVENT OR JUST ON
A SATURDAY OR SUNDAY WITH THEIR FAMILY, PLACES THEY ARE PROUD OF, THAT IS THE ROLE OUR PROJECT
PLAY. IN DOING SO THEY BECOME NOT ONLY IMPORTANT,
A VITAL PART OF THAT COMMUNITY, IMPORTANT PART OF THAT COMMUNITY BUT A REGIONAL DRAW
AS WELL. BECAUSE OUR PROJECT ARE UNIQUE, BECAUSE THEY
INCORPORATE EXPERIENCE AND ENTERTAINMENT, THEY TEND TO DRAW FROM AN EXTREMELY WIDE RADIUS. IT NOT UNCOMMON TO SEE PEOPLE COMING IN FROM
HOURS AND HOURS AWAY AND THAT IS A REAL CALLING CARTED OF OUR DEVELOPMENT AND SOMETHING I
CAN POINT TO AND CITY OF AS CAN SPEAK TO IN ALL THE CITIES WE HAVE DEVELOPED. THE OTHER ASPECT THAT I THINK IS A SIMILARITY
OF THIS, AS I MENTION, WE BRING IN LOCAL CONSULTANTS, WE THINK AN ANSWER THAT WORKS IN BALTIMORE
MAY NOT BE THE ANSWER THAT WORKS IN KANSAS CITY AND MAY NOT BE THE ANSWER THAT WORKS
IN NORFOLK. OFTEN TIMES IT’S VERY DIFFERENT, BUT THE ELEMENTS
THAT ARE THE SAME, THE CENTRAL GATHERING SPOTS, THE LIVING ROOM, IF YOU WILL, OF THAT CITY,
AND THEN THE COMMITMENT TO QUALITY. QUALITY OF DESIGN WHICH RICH BURNS AND HIS
TEAM HEADS UP, QUALITY OF TENANT MIX IS OBVIOUSLY VITAL. THE IMPORTANCE OF CREATE WILLING THE COMMON
AREAS — CREATING THE COMMON AREAS WHICH I REFERENCED EARLIER AND THE QUALITY OF HOW
YOU MARKET THE COMMON AREAS AND YOUR LONG TERM COMMITMENT TO OPERATIONS, QUALITY OF
OPERATIONS, WHETHER IT’S HOW THE PLACE IS KEPT SECURE AND SAFE FOR ITS MILLIONS OF VISITORS,
TO YOUR WILLINGNESS TO REINVEST ON A YEARLY BASIS, IF NOT A 10 YEAR BASIS, ANNUAL BASIS. TO, AS MY FATHER REFERENCED, AN UNWAIVERRING
RULE THAT YOU WILL ONLY LEASE TO THE BEST POSSIBLE TENANTS THAT WILL MEAN SOMETHING
ADDITIVE TO BOTH THE PROJECT AND CITY IN GENERAL. I’M GOING TO SHOW NOW SOME SLIDES OF WATERSIDE
LIVE IN PARTICULAR, AND THEN I’M GOING TO FOLLOW THAT UP WITH SLIDES OF SOME OF OUR
EXISTING PROJECTS BECAUSE THERE ARE THINGS THAT WE CAN GARNER FROM THEM. AND I WILL TRY TO GET INASMUCH DETAIL AS I
CAN. THAT BEING SAID, AND I WANT TO REITERATE WHAT
MY FATHER SAID, I’VE BEEN THE DEVELOPMENT DIRECTOR ON MANY OF OUR LARGE SCALE DEVELOPMENT
PROJECTS, DISTRICTS AROUND THE COUNTRY, IT BEEN MY HONOR TO SERVE THAT ROLE. I WOULD BE SO WITH THIS PROJECT, I WOULD BE
WITH IT FROM NOW UNTIL AS LONG AS I’M WORKING FOR THE CORDISH COMPANY, THAT’S WELL PAST
OPENING. THAT DOESN’T FALTER, THAT TIME COMMITMENT
DOESN’T CHANGE BUT I WANT TO GET INTO THE SPECIFICS AND THAT WILL HELP ILLUSTRATE. THE FIRST IMAGE, AND THERE ARE THREE OF WATERSIDE
IN PARTICULAR, NOW I REMEMBER WHAT I WAS GOING TO SAY, I APOLOGIZE, I WANTED TO REITERATE
WHAT MY FATHER SAID WHICH IS ALTHOUGH I WILL BE THERE FROM BEGINNING TO END WHICH IS WHY
I CAN SPEAK TO IT SO WELL IT IS A PROCESS BASED ON CONVERSATION AND DIALOGUE. WE HAVE A LOT OF EXPERIENCE, AND I BELIEVE
AS MUCH EXPERTISE IN THIS TYPE DEVELOPMENT AS ANYONE, WITH THAT SAID IT’S A PROCESS THAT
WILL EVOLVE AND ONE THING I CAN PROMISE THERE WILL BE CONSIST ENDS, WE WILL CREATE GREAT
GATHERING SPOTS, THERE WILL BE AN ENERGY OF THIS PROJECT THAT WILL BE PALPABLE BUT WILL
EVOLVE AS TIME GOES ON. THIS FIRST RENDERING, WE HAVE THREE OF WATERSIDE
IN PARTICULAR, THREE IMAGES, ONE RENDERING AND TWO SITE PLANS. THIS IS A RENDERING OBVIOUSLY FROM THE WATER,
WHAT YOU START TO GET A SENSE OF IS WHEN WE TALK ABOUT QUALITY OF DESIGN, WE USE GREAT
MATERIALS, QUALITY MATERIALS THAT ARE IN KEEPING WITH THE CITY FABRIC, WE LOOK WHAT EXISTS
AROUND US, WHAT MATERIALS ARE BEING USED IN THE CITY AND AROUND US, TRY TO INCORPORATE
THAT IN, THEN WE ANIMATE IT AND HE’LL ELECTRIFY IT WITH INCREDIBLE SIGNING, LANDSCAPING, AUDIO-VISUAL
TECHNIQUES TO MAKE IT AN ANIMATED VIBRANT. THE MATERIALS SPEAK TO THE DAYTIME, WHEN YOU
WALK THROUGH IT IS A WARM AND INVITING MIX. WHEN I SPEAK OF THE TENANTS, IT HAS GREAT
USES TO DRAW FAMILIES WITH FAMILY ACTIVITIES. AT NIGHT IT TAKES ON A DIFFERENT LEVEL OF
EXCITEMENT, STARTS TO ANIMATE AND ENERGIZE IN A QUALITY, SUBSTANTIAL WAY. YOU GET SOME SENSE OF IT IN THIS RENDERING
BUT ONLY A RENDERING WHEN WE GET TO PICTURES OF THE OTHER PROJECTS THAT ARE IN PLACE AND
EXISTING YOU WILL GET A STRONGER SENSE OF THAT. I THINK MAYBE YOU DID IN THE PICTURE OF THE
POWER PLANT ITSELF. ONE OF THE THINGS YOU MIGHT BE ABLE TO NOTICE
ON THIS RENDERING IS THAT WE ARE PROPOSING TO TRULY OPEN UP THE BUILDING. AND THAT MEANS SEVERAL DIFFERENT THINGS. I’LL START WITH AN EASY ONE. WE WILL TAKE THE EXISTING BALCONY STRUCTURE
WHICH WE LIKE AND GREATLY EXPAND UP ON IT. SO THAT YOU WILL HAVE LARGE BALCONIES ON THE
FIRST AND SECOND LEVEL THAT WRAP AROUND THE BUILDING BECAUSE WE THINK THIS SHOULD BE A
TRULY INDOOR-OUTDOOR EXPERIENCE WITH GREAT GATHERING SPOTS THROUGHOUT, GREAT OUTDOOR
SEATING THROUGHOUT WATERSIDE LIVE. THE SECOND WAY, AND MORE SUBSTANTIAL WAY THAT
WE ARE GOING TO TRULY OPEN UP THE BUILDING, IS BY LITERALLY REMOVING PART OF THIS WALL,
ON BOTH SIDES, THE CITY SIDE AND THE WATERSIDE. SO THAT WHEN YOU ARE IN DOWNTOWN AREA AND
LOOKING IN, YOU WILL BE ABLE TO SEE THROUGH AND SEE THE ENERGIZED CENTRAL GATHERING SPOTS
AND SEE THROUGH TO THE WATER AND WHEN YOU ARE ON THE WATER YOU WILL BE ABLE TO LOOK
INTO PROJECT, IF YOU HAVE COME OVER FROM A GREAT FESTIVAL, WALKED OVER FROM THE BALLPARK,
YOU WILL BE ABLE TO ENGAGE WITH THE BUILDING. IT WAS ONE OF THE MAIN THINGS WE DID AT THE
POWER PLANT, HELP ANIMATE THAT, THAT WAS A WHOLE BRICK WALL WE OPENED UP AND MADE IT
AN INDOOR-OUTDOOR EXPERIENCE. WE WANT TO OPEN UP THIS BUILDING TO THE CITY
AND TO THE WATER. THEN WE WANT TO OPEN IT UP WHEN YOU ARE INSIDE. WET ARE SITTING UNDERNEATH A PRETTY LOW CEILING
ABOVE US THAT OUR AUDIENCE IS SITTING, IT WON’T BE THERE SHOULD WE BE LUCKY ENOUGH TO
BE SELL TOACTD DEVELOP IT. WE WANT TO CREATE ATE CENTRAL GATHERING SPOT,
THEN WE WILL TAKE THE ROOF, MUCH LIKE WE DID AT FOURTH STREET LOUISVILLE AND MAKE IT A
GREAT GLASS ROOF. SO, YOU WILL HAVE AN OPEN — WIDE OPEN GLASS
AND OPEN STORE FRONT ON BOTH SIDES. YOU WILL HAVE AN OPEN SOARING
SPOT WITH GREAT LANDSCAPING, FURNITURE, WATER FEATURES AND OTHER ELEMENTS AND THEN A GLASS
ROOF ABOVE. IT WILL BE A DYNAMIC GATHERING SPOT DAY AND
NIGHT FOR VISITORS. THIS IS A BIRD’S EYE VIEW, IF YOU WILL, AND
IT HELPS ME ILLUSTRATE THE OPENINGS THAT I WAS JUST REFERRING TO AND HOW IT NOW CONNECTS
AND THE CONNECTIVITY OF DOWNTOWN BOTH TO THE OTHER AREAS. PEOPLE HAVE GREAT MEMORIES OF COMING HERE
FOR GREAT EVENT, WE WANT TO CAPTURE THOSE BUT IN A NEW AND VIBRANT WAY. THE WATER IS A PUBLIC AMENDITY, SHOULD ALWAYS
BE TREATED AS A PUBLIC AMENDITY AND WE THINK OUR PROPOSAL TAKES CARE OF THAT. THE MARINA IS TO SOME DEGREE AN UNDER UTILIZED
ASSET, WE’D LIKE TO TALK ABOUT THAT AND HOW IT CAN BE A BIGGER ASSET TO THE CITY. YOU CAN SEE THE CENTRAL GATHERING SPOT IN
THE MIDDLE OF THE LAYOUT AND OUR DIFFERENT USES CIRCLE THAT GATHERING SPOT ON THE FIRST
AND SECOND LEVEL. HERE IS A CLOSE UP OF THE PLAN TO GIVE A BETTER
ITERATION. YOU CAN SEE IF IT’S A RESTAURANT USE, CAFE,
BISTRO, THE WALLS OPEN UP THEMSELVES WITH INDEAR-OUTDOOR SEATING WITH CENTRAL GATHERING
SPOTS OUT TO THE WATER. WOULDN’T OF THE ASPECT I WANTED TO TOUCH ON
IS THE AREA AT THE TOP OF THE PLAN WHICH IS HIGHLIGHTED YELLOW, WE ENVISION AS A TRUE
MARKETPLACE AND THAT IS A WORD THAT HAS A LOT OF HISTORY WITH THIS PROJECT, THE WORD
“MARKETPLACE.” SOME GOOD, MAYBE SOME NOT AS GOOD, BUT WE
THINK WHEN DONE THE RIGHT WAY IT CAN BE A TERRIFIC ATTRACTION DAYTIME, NIGHTTIME, AFTER
WORK AND ON THE WEEKENDS, SO, THE — SO THE AREA IN YELLOW REPRESENTS THE MARKETPLACE
IDEA. THAT IS THE ENTRANCE OF THE PROJECT ON THE
CITY SIDE. MY FATHER WHISPERED IN OUR EAR, I THINK MORE
FOR MARKETING PURPOSES WAS TO INVITE EVERYBODY HERE, WE HAVE A GRAND OPENING OF ONE OF OUR
LATEST PROJECT AND THAT IS PHILLY LODGE, THE REASON I’M SAYING THIS, I’LL GET TO IT, IT’S
AT THE STADIUM COMPLEX IN DOWNTOWN PHILADELPHIA. IT’S THE ONLY PLACE WHERE ALL FOUR SPORTS
TEAMS EXIST. THE EAGLES, PHILLIES AND FLIERS BROUGHT US
IN TO TRY TO GIVE THEM A SENSE OF PLACE. THEY HAD THESE STADIUMS, EXPANSIVE PARKING,
THEM CAME AND LEFT, IT DIDN’T HAVE A FEEL TO IT, GATHERING SPOT. THEY BROUGHT US IN, PUBLIC PRIVATE PARTNERSHIP
WITH THE TEAMS THEMSELVES, IT WILL BE COMPLETED AND GRAND OPENING IS LATER THIS MONTH ON MARCH
30TH. WE HAVE GREAT NATIONAL BRAND NAMES AND GREAT
CONCEPTS COMING INTO IT, BUT IN THE HEART OF PHILLIE LIVE IS WHAT WE ARE CALLING THE
MARKETPLACE. WE HAVE GONE OUT AND GOTTEN SOME OF THE ICONIC
PHILADELPHIA NAMES TO OPERATE WITHIN A MARKETPLACE VERY SIMILAR TO WHAT WE ARE SHOWING HERE,
SO, WHETHER IT’S NICK’S ORIGINAL CORNED BEEF, THIS IS THE FIRST TIME THEY HAVE EXPANDED
TO CHICKIE AND PETE IS THE LOCAL LEADING SPORTS CONCEPT, IT HAS THIS INCREDIBLE FEEL OF A
BEST OF PHILLIE MARKETPLACE. I WOULD INVITE THE ENTIRE COUNCIL TO COME
SEE WHAT IT IS WE HAVE IN MIND WHEN I TALK ABOUT A MARKETPLACE FOR WATERSIDE LIVE. THIS IS THE SECOND LEVEL OF OUR PROPOSED WATERSIDE
LIVE. AND YOU CAN SEE THAT AS I REFERENCED A LOT
OF THE SECOND LEVEL IN THE MIDDLE AREA HAS BEEN REMOVED TO CREATE THE SENSE OF DRAMA
AND SENSE OF PLACE ON THE FIRST LEVEL BE KNEED THAT IS OUR CENTRAL GATHERING SPOT AND THEN
WE HAVE THESE GREAT BALCONIES AND WALKWAYS THAT CIRCLE IT. IT CREATES A GREAT PLACE TO BE SEEN AND GREAT
DRAMA IN THE PLAN. IN PURPLE, ONE OF THE RECOMMENDATIONS BY THE
CONSULTANT GROUP THAT WE REALLY THINK IS A GOOD ONE IS A PRIVATE EVENT SPACE THAT CAN
HELP COMPLIMENT DOWNTOWN AND THAT IS IN PURPLE AND WE HAVE DUBBED THE WATERSIDE ROOM FOR
PURPOSES OF THIS PROPOSAL. AND SOME OF THE USES THAT WE HAVE IN MIND
WOULD ACTUALLY BE TWO LEVELS AND WOULD OPERATE ON BOTH THE FIRST AND SECOND LEVEL. ONE OF THE THINGS THAT I SPOKE TO — I’M SORRY,
LET ME GO BACK TO THAT. ONE OF THE THINGS I REFERENCED EARLIER IN
MY REMARKS IS COMMITMENT TO QUALITY AND ONE OF THE KEY PRINCIPLES OF THAT IS QUALITY OF
THE TENANTS, QUALITY OF THE CONCEPTS THAT MAKE UP THE DEVELOPMENT. IN OUR PEER RESPONSE YOU SAW COMMITMENT LETTERS
FROM A VARIETY OF TOP NOTCH CONCEPTS. MOST IMPORTANTLY WHAT I WANTED TO REITERATE
IS TO SHOW THE TYPE OF QUALITY WE DO ACROSS THE COUNTRY. IN THE COMING SIX MONTHS, I WANT TO SPEAK
TO SOME OF THE TENANTS, SOME OF THE CONCEPTS THAT WILL BE OPENING IN A VARIETY OF OUR PROJECTS. THE CHEESECAKE FACTORY. BOBBY FLAY WITH SIGNATURE RESTAURANT. PHILIP’S SEAFOOD WHO OPENED OUR POWER PLANT
AND IS NOW DOING A SECOND CONCEPT. THE MOWHOUSEER FAMILY, THEY ARE A LOCAL FAMILY
GOT NAMED AS ONE OF THE TOP LIVE MUSIC PRODUCERS AND VENUE OPERATORS IN THE COUNTRY HAS AGREED
TO DO A LIVE MUSIC VENUE WITH US. PRIME RIB HIGH END STEAK HOUSE CONSIDERED
THE BEST RESTAURANT IN MARYLAND, D.C., PHILADELPHIA HAS SIGNED TO US, IT’S THEIR FIRST EXPANSION
IN FOUR YEARS, WE ARE WORKING OUT A DEAL TO EXPAND THEM POTENTIALLY NATIONALLY INTO SOME
OF OUR OTHER PROJECTS AS WELL. THE NBC SPORTS ARENA WHICH IS A FIRST EVER
OF ITS KIND WILL BE OPENING IN OUR PHILLIE LIVE PROJECT, I THINK IT WILL BE THE FIRST
PREMIERE SPORTS RESTAURANT IN THE COUNTRY, THE HIGHLIGHT OF IT IS A 37 FOOT IN DIAGONAL
6 MILIMETER HIGH DEFINITION SCREEN AND THEY ARE BRINGING ALL THE POWER OF NBC SPORTS BEHIND
IT, PERSONALITIES AND PROGRAMMING THAT COMES WITH THAT. AND YOU TEAM THAT IN A PROJECT LIKE PHILADELPHIA
WITH THE LOCAL OPERATORS, NICK’S ORIGINAL ROAST BEEF, ALL THE LOCAL OPERATORS YOU GET
THE GREAT COMBINATION. WE THINK THAT’S HOW A PROJECT GETS MAXIMIZED. THOSE ARE THE TYPE QUALITY TENANTS YOU CAN
EXPECT AT WATERSIDE LIVE AND TYPES OF USES YOU CAN EXPECT FROM WATERSIDE LIVE AS WELL
AS THE TYPE OF MIXTURE OF NATIONAL, REGIONAL AND LOCAL, WE THINK THAT IS WHAT DOES IT BEST. I’M NOW GOING TO TRANSITION A LITTLE BIT AS
I TALK ABOUT SOME OF THE OTHER DEVELOPMENTS AND REITERATE HOW THEY RELATE TO WATERSIDE
LIVE AND SOME IMAGES OF THOSE IMAGES WILL FLASH AS I SPEAK. AND AT THE CONCLUSION OF THAT, I WILL WRAP
UP AND BE AVAILABLE IF THERE ARE ANY QUESTIONS. WE TALKED A LOT ABOUT COMMITMENT TO QUALITY,
QUALITY TENANTS, QUALITY DESIGN, QUALITY OPERATIONS. WE OWN AND OPERATE ALL OF OUR PROJECTS AND
WE HAVE INCREDIBLE DEDICATION TO HOW THOSE ARE OPERATED. I BELIEVE IT IS WHY THE PROJECTS I REFERENCED
THAT ARE 15 YEARS OLD, 18 YEARS OLD CONTINUE TO THRIVE AND BE SUCCESSFUL AND I THINK IT’S
A REASON WHY WE HAVE BEEN SUCCESSFUL IN AREAS OTHER PROJECTS HAVEN’T NECESSARILY WORKED. WE ABSOLUTELY HAVE A FIRM COMMITMENT FOR REINVESTMENT
IN THE PROJECT AND WE MANDATE THROUGH OUR LEASES THAT THE TENANTS DO AS WELL, SO THE
PROJECTS STAY FRESH, STAY VIBRANT, AND THEY CONTINUE TO PLAY AN IMPORTANT ROLE WITHIN
THE CITY THEY ARE LOCATED. THERE’S NO QUESTION THAT WE VIEW URBAN DEVELOPMENT
I THINK IN A SIMILAR WAY THE CITY OF NORFOLK DOES, THERE ARE NO SILVER BULLETS, IT TAKES
A LOT OF GREAT DEVELOPMENTS, GREAT ATTRACTIONS TO CREATE A TRULY VIBRANT GROWING CITY, AND
NORFOLK HAS DONE A GREAT JOB OF PUTTING IN SO MANY OF THOSE BUILDING BLOCKS. A LIVE DISTRICT, ONE OF OUR TYPE DEVELOPMENTS,
PLAYS A TREMENDOUS ROLE IN HELPING IT ALONG AND BRINGING IT TO ANOTHER LEVEL. THERE’S NO QUESTION PEOPLE LOVE TO LIVE AND
WORK NEAR WHERE THEY CAN BE ENTERTAINED. THERE IS NO QUESTION THAT PROJECTS SUCH AS
WHAT WE ARE TALKING ABOUT HAVE GREAT SYNERGIES WITH THE BALLPARK YOU HAVE DOWN THE ROAD,
WITH THE FESTIVAL SITE YOU HAVE NEXT DOOR AND WITH THE THRIVING TOWN TOWN IN GENERAL. OUR PROJECTS HAVE BEEN CATALYSTS IN THE CITIES
IN WHICH THEY HAVE LOCATED AND I THINK THIS IS A VERY IMPORTANT POINT I SPEAK TO A LITTLE
BIT BECAUSE WHEN WE COME TO TOWN THERE CAN BE SOME TREPITATION FROM LOCAL BUSINESS OWNERS
IS THIS A COMPETITOR THAT WILL TAKE WHAT WE HAVE. I CAN ASSURE THEM BY POINTING TO HISTORICAL
FACTS THAT THAT IS NOT THE CASE AND, IN FACT, IT QUITE THE OPPOSITE. IF YOU LOOK AT THE NEIGHBORHOODS AND THE BUSINESS
DISTRICTS THAT SURROUND US IN BALTIMORE, THOSE WOULD BE FEDERAL HILL AND THEY REMEMBER WHAT A GREAT PLACE NORFOLK
IS, THEY CHECK THOSE AREAS OUT ON THEIR NEXT VISIT. IT’S A VERY SYMBIONIC RELATIONSHIP. YOU HAVE GREAT DEVELOPMENT IN THIS CITY. WE ARE AN INCREDIBLE ASSET TO AREAS AND WORKING
GREAT SYNERGY TO THOSE AREAS AND TO THE ATTRACTION LIKE THE BALLPARK AND OTHER ATTRACTIONS DOWNTOWN. WE ARE A CATALYST FROM PHILLIE PROJECT, IT
IS HALF THE SIZE OF WHAT WATERSIDE LIVE WILL BE. MY FATHER REVEREND WE BUILT OUT OF EQUITY. YOU ARE LOOKING AT THE PERSON WHO WOULD BE
DAY AND NIGHT, THROUGH COMPLETION AND STAY INVOLVED AFTER THAT, WHEN WE SAY WE ARE GOING
TO ACCOMPLISH SOMETHING WE ROLL UP OUR SLEEVES AND WORK WITH THE CITY AND COMMUNITY, WE LOVE
TO DO IT HERE. THANK YOU FOR YOUR TIME TODAY. [APPLAUSE]
>>>ALL RIGHT, THANK YOU, MR. CORDISH, WHY DON’T WE TAKE 60 SECOND AND LET
THE LINDSAY GROUP COME UP AND THEY CAN MAKE THEIR PRESENTATION. DO YOU HAVE QUESTIONS? MR. CORDISH, WILL YOU TAKE A QUESTION.>>FIRST OF ALL, I THINK YOU MADE A WONDERFUL
PRESENTATION.>>THOUGHT, SIR. COUPLE QUESTIONS I HAD, ONE HAD TO DO WITH
MINORITY PARTICIPATION WHICH IS IMPORTANT. THE OTHER QUESTION I HAD, WHERE DO YOU STAND
AS FAR AS UNION LABOR IS CONCERNED, MAYBE WAGES WHEN YOU DO DEVELOPMENT. WE LOOK AT IT ON A COMMUNITY BY COMMUNITY
BASIS. WE ARE FINISHING MARYLAND WHICH IS 100% UNION
PROJECT. WE JUST FINISHED PHILLIE LIVE WITH 100% UNION
PARTICIPATION. THAT’S NOT TRUE IN EVERY PROJECT BUT IT IS
IN A LARGE NUMBER, WE WOULD LOOK AT IT WITH COUNCIL AND IN REGARDS WHAT THE TRADITIONS
ARE IN.>>I GUESS THE OTHER QUESTIONS, I IMAGINE
THE CITY PAN GEAR AND ADMINISTRATION, I WOULD IMAGINE IT HAD TO DO WITH THE MARINA. THERE HAS BEEN A CONCERN THAT THE MARINA WOULD
STILL, BOATERS WOULD STILL HAVE ACCESS TO THE MARINA. I DON’T KNOW IF YOUR DEVELOPMENT WOULD GIVE
YOU AUTHORITY OVER THE MARINA, WHETHER THE CITY MANAGER WOULD MAINTAIN IT, THAT IS ONE
THING WE TALK ABOUT.>>IF WE DID HAVE RIGHTS TO IT, IT WOULD BE
UNDER THE US A HISSES OF — AUSPICES, I THINK IT’S AN UNDER UTILIZED ASSET.>>THANK YOU SO MUCH.>>I WANTED TO ASK QUICKLY IS THIS ENTIRELY
ENTERTAINMENT, THERE IS NO RETAIL?>>THERE CAN BE RETAIL. I BELIEVE THERE COULD BE SOME RETAIL WITHIN
THE MARKETPLACE AND POSSIBLE FOR SOME OTHER RETAIL WITHIN THE DEVELOPMENT. THE CITY IS BRINGING IN URBAN OUTFITTERS ON
GRANDBY STREET. THEY HAVE A SISTER ANTHROPOLOGY, THERE IS
A ROLE FOR RETAIL. HOWEVER YOU HAVE A TERRIFIC MALL DOWNTOWN. THIS WOULD BE MORE RESTAURANT, CAFE, BISTRO
AND ENTERTAINMENT FOCUSED.>>I’M CURREY EYES HOW YOU CAN GET THESE PEOPLE
TO COME AND BE HERE.>>THAT’S A GREAT QUESTION. WE’VE BEEN SUCCESSFUL CREATING THESE DEVELOPMENTS,
WE HAVE THESE NATIONAL COMPANIES THAT SAY TO US WHERE YOU GO WE WANT TO GO. WE KNOW THEYAL CHIEF THOSE SALES PER SQUARE
FEET. IT’S UP TO US TO DO THE LEG WORK TO COMBINE
THEM IN THE BEST LOCAL AND REGIONAL OPERATORS. WE HAVE THE BASE OF NATIONAL CONCEPTS WE CAN
CALL ONTO HELP ANCHOR THE PROJECT.>>>FIRST I THOUGHT THAT WAS A GREAT PRESENTATION
BUT MORE IMPORTANTLY AS IT RELATES TO FINANCIAL COMMITMENT, CAN YOU TELL ME A LITTLE BIT ABOUT
THE FINANCIAL COMMITMENT YOU ARE TALKING ABOUT MAKING WITHIN THIS PROJECT AT WATERSIDE LIVE?>>VERY GOOD QUESTION. AND I WILL ANSWER WITH A CAVEAT THAT IT WILL
BE A MOVING TARGET TO SOME DEGREE AS THE PLANS DEVELOP AND EVOLVE. ONE THING I’VE LEARNED AND WE HAVE LEARNED
IS THAT THAT MOVING TARGET NEVER GOES DOWN, IT ALWAYS GOES UP BECAUSE YOU ARE ALWAYS EXPANDING
ON IT. OH, WE HAVE TO DO THIS AND THE NEXT IDEA AND
THEY ARE ALL GREAT IDEAS AND ALL COST MONEY. WHATEVER THAT TARGET ENDS UP BEING, THAT IS
WHAT WE ARE COMMITTED TO SPEND. WHATEVER IT TAKES WE ARE GOING TO SPEND. RFP RESPONSE TALKED ABOUT AN INITIAL INVESTMENTS
OF $26 MILLION OF PRIVATE EQUITY TO DEVELOP WATERSIDE LIVE AND THEN THE TENANTS THAT WE
BRING IN ALSO THEN LAYER IN A SIGNIFICANT LEVEL OF INVESTMENT ON TOP OF THAT, BUT THE
26 MILLION WILL MOST LIKELY RISE, I KNOW IT WON’T FALL, BUT THAT IS OUR COMMITMENT TO
GET IT DONE, WHATEVER IT TAKES.>>THE PUBLIC PART — THE OTHER PART OF IT
IS SINCE IT IS A PUBLIC-PRIVATE PARTNERSHIP, DO YOU INTEND TO PAY IN YOUR RESPONSE TO THE
PROPOSAL, I HAVEN’T SEEN IT, DO YOU ANTICIPATE IN THAT PUBLIC-PRIVATE PARTNERSHIP ONING WATERSIDE?>>WE HAVE TWO OPTIONS. BOTH THAT WOULD BE PERFECTLY ACCEPTABLE TO
US, ONE IS TAKE OVER FEE OWNERSHIP, BUT THE OTHER IS TO BE — ENTER INTO A LONG TERM LEASE
WHERE IN ESSENCE THE CITY MAINTAINS OWNERSHIP AND WE STEP INTO A LONG TERM LEASE. THE ADVANTAGE — LOOK, FEE OWNERSHIP IS GREAT. THE ADVANTAGE OF A LONG TERM LEASE VIS-A-VIS
THE CITY, THEN THE CITY CAN PUT IN CONDITIONS AND REALLY REGARDLESS OF WHETHER IT IS FEE
TITLE OR LONG TERM LEASE, WE DON’T HAVE A PROBLEM WITH THAT. WHEN WE STAND UP HERE AND TALK ABOUT COMMITMENT
TO QUALITY, QUALITY OF DESIGN, QUALITY OF TENANT MIX AND EXECUTION, THOSE ARE NOT JUST
WORD, WE ARE ABLE TO PUT THOSE INTO DOCUMENTS AS WELL.>>THE LAST PART, AS PART OF THE EQUATION,
THAT INCLUDE PERFORMANCE GRANTS OR — THAT’S ONE PART OF IT. THE SECOND TERM IN TERMS OF TAX REVENUE, I
KNOW THAT DEALS LIKE THIS, YOU KNOW, YOU ANTICIPATE, WELL, 7 YEARS, EIGHT YEARS PERFORMING AS TERM
OF OUT YEARS, WHEN YOU WOULD GET UP TO THAT LEVEL OR SCALE OF PAYING TAXES, DO YOU ANTICIPATE
A SCALE OF PAYING TAXES OR SOME TYPE OF REBATE?>>YES, SIR. SO, AGAIN, WE ARE NOT ASKING FOR ANY CASH
SUBSIDY, WE WOULD BE PUTTING IN 100% OF EQUITY NECESSARY, WE ARE ASKING FOR A — AND THE
CITY WOULD GO IMMEDIATELY FROM A NEGATIVE SITUATION TO A POSITIVE BECAUSE THE PROJECT
WOULD PAY TAXES FROM DAY 1, BUT WE ARE ASKING FOR TAX HELP IN TERMS OF INCREMENTAL TAXES
WE ARE CREATING AND IT IS A SLIDING SCALE DOWNWARD ACTUALLY, STARTS HIGHER AND IT SLIDES
DOWNWARD OVER TIME.>>MY LAST QUESTION, PURELY FROM AN ARCHITECTURAL
STANDPOINT, I NOTICE YOU TOOK THAT DOWN BUT ON THE SECOND FLOOR, THAT IS BALCONIES?>>IT IS BECAUSE WE’RE REMOVING THE — WE
ARE REMOVING THE WALL TO OPEN IT UP AND CREATE BALCONY.>>AND CREATING ANOTHER CROSS OVER.>>CORRECT.>>THAT WOULD CONNECT TO THE GARAGE?>>WE ARE NOT CREATING A SECOND CROSS OVER
TO THE GARAGE, THAT’S THE EXISTING CROSS OVER.>>THAT’S EXISTING.>>YES.>>JUST TO CLARIFY WE WOULD BE PAYING FULL
REAL ESTATE TAXES FROM DAY 1.>>ONE QUICK QUESTION. IF YOU WERE AWARDED OR CHOSEN, GIVE ME A TIME
FRAME FOR WHEN YOU WOULD START CONSTRUCTION AND HOW LONG IT WOULD TAKE AND WHEN YOU WOULD
OPEN, ROUGHLY.>>THE ONLY QUESTION THAT WE WOULD — I HAVE
TO ASK YOU FIRST IS YOU HAVE TO SIGN THE DEVELOPMENT AGREEMENT, SO IF WE WERE CHOSEN —
>>I’M SAYING FROM THE TIME YOU SIGNED THAT DEVELOPMENT AGREEMENT. THAT’S THE ONLY QUESTION.>>BECAUSE IT’S A PUBLIC-PRIVATE PROCESS,
AS YOU KNOW, THERE IS NO EXACT BLUE PRINT TO IT BECAUSE THE PROCESS INVOLVES BRINGING
IN THE COMMUNITY TO PARTICIPATE. THAT BEING SAID, WE HAVE ZERO OBSTACLES TO
PREVENT US FROM MOVING AT THE MOST EFFICIENT WAY AND MANNER. WE HAVE NO FINANCING OBSTACLES, EVERY DISCIPLINE
IN HOUSE NEEDED TO WORK WITH THE LOCAL CONSULTANTS WE HIRE TO GET THE WORK DONE. WE HAVE PEOPLE INCLUDING MYSELF READY TO FOCUS
ON IT, AND WE HAVE, AS I REFERENCED EARLIER TO THE VERY GOOD QUESTION EARLIER, WE HAVE
COMMITMENT FROM TENANTS RIGHT NOW TODAY, SO WE HAVE ZERO OBSTACLES TO GETTING IT DONE. HOW LONG DOES IT TAKE FROM SIGNING THE DEVELOPMENT
AGREEMENT? SIX MONTHS TO EIGHT MONTHS TO DO THE DRAWING,
WORKING WITH THE COMMUNITY GROUP AND COULD COMMENCE CONSTRUCTION RIGHT AWAY. OUR PROPOSALS HAVE A FLEXIBLE PLAN THAT HAVE
LEASES IN SPACE, OPERATING AT THAT TIME. I THINK THAT IS IMPORTANT. ONE OF THE REASONS IS THERE ARE LAWS, THE
SECOND IS WE DIDN’T WANT ANY OBSTACLES TO BEING READY TO START. WE THINK WITHIN BEING SELECTED WE COULD COMMENCE
WORK WITHIN SIX TO EIGHT MONTHS AND HAVE CONSTRUCTION JOBS ON THE GROUND.>>THAT WOULD TAKE — THE CONSTRUCTION JOB
WOULD TAKE HOW LONG?>>IN PHILADELPHIA IT TOOK US 11 MONTHS TO
GO FROM STARTING CONSTRUCTION TO OPENING. WE STARTED A LITTLE LESS THAN A YEARING AAND
OPENED MARCH 30TH. EIGHT PLUS — SIX TO EIGHT MONTHS PLUS 11
MONTHS FOR COMPLETION, BUT YOU CAN OPEN THINGS ALONG THE WAY TOO.>>THE PHILADELPHIA PLANT, WAS THAT A RENOVATION
–>>IT WAS BIDDING FROM THE GROUND UP, POWER
PLAN AND POWER PLANT LIVE, HOUSTON WERE RENOVATION, SO IT’S A MIXTURE.>>THE CASINO WILL OPEN THE FIRST WEEK IN
JUNE WHICH IS A MAMMOTH PROJECT, 2 MILLION 300 DREAD THOUSAND FEET WE DID IN ONE YEAR. THREE SHIFTS A DAY, 24 HOURS A DAY, SEVEN
DAYS A WEEK AND WE DID IT IN A YEAR.>>HAVE YOU EVER HEARD OF THE TERM CREATIVE
CLASS?>>CREATIVE CLASS? THIS COUNCIL HAS TALKED ABOUT WAYS WE COULD
ATTRACT THE CREATIVE CLASS TO OUR DOWNTOWN.>>RECRUITMENT AND RETENTION.>>I’M WONDERING IN YOUR PROPOSAL OR OTHER
PROJECT YOU’VE HAD SUCCESS YOU’VE HAD CONCEPTS THAT HAVE ATTRACTED THE CREATIVE CLASS.>>I’LL GIVE AN EXAMPLE. ERNST AND YOUNG IS — ERNST AND YOUNG WAS
IN A BATTLE ACROSS THE COUNTRY TO RECRUIT BEST AND BRIGHTEST YOUNG PEOPLE, THEY WEREN’T
GOING INTO THAT FIELD FOR WHATEVER REASONS, IT WASN’T SEEN AS HOT IN THE TECH BOOM SO
THEY CHOSE TO LOCATE THEIR CORPORATE HEAD QUART NERS ONE OF OUR DEVELOPMENTS. H AND R BLOCK DID THE EXACT SAME THING IN
DOWNTOWN KANSAS CITY. WE SEE OFFICE DEVELOPMENTS SPROUT UP AROUND
US IN EVERY SINGLE INSTANCE. IN HOUSTON WE’VE DONE A LOT OF THEM OURSELVES,
BUT REGARDLESS WHETHER WE DO IT OR SOMEONE ELSE HAS, WE’VE SEEN THEM COME UP AROUND. IN ADDITION I MENTIONED PEOPLE LOVE TO WORK
WHERE THESE TYPE PROJECT, THEY ALSO LOVE TO LIVE NEAR THESE TYPE PROJECTS, WE’VE SEEN
RESIDENTIAL GROWTH IN THE DOWNTOWNS AS WELL.>>THAT IS A FABULOUS QUESTION THAT WE REALLY
SHOULD INCORPORATE IN OUR PRESENTATIONS AND SHAME ON US, BECAUSE IT THE STRENGTH OF THE
PROJECT. THESE ARE AN AMENDITY THAT DON’T REALLY CALCULATE,
IN OTHER WORDS IT’S A COUPLE HUNDRED SQUARE FEET, IT SHOULD NOT HAVE THE IMPACT THAT IT
DOES ON AN ENTIRE CITY BUT IT DOES. AND IT IS ALMOST MAGICAL, AND WE CAN GO RIGHT
ACROSS — IN SAN FRANCISCO, WE ARE PARTNERS WITH THE SAN FRANCISCO GIANTS, THE BASEBALL
TEAM. WE ARE NOW, THE PROJECT WE ARE DOING IS SIMILAR
TO THIS AND WE HAVE ATTRACTED A CORPORATE CAMPUS, ONE OF THE GREAT NEW HIGH TECH COMPANIES
IN THE COUNTRY THAT IF I TOLL YOU EVERYBODY WOULD KNOW THE GAMES THEY PRODUCE, ON THE
INTERNET, THEY ARE GOING TO BUILD THEIR CORPORATE CAMPUS. I CAN GO RIGHT ACROSS — I MEAN, IT’S ALMOST
INCOMPREHENSIBLE HOW A COUPLE HUNDRED THOUSAND FEET CAN BE THE AMENITY IT WILL BE FOR YOUR
EXISTING OFFICE BIDDING, NEW OFFICE BUILDING FOR ATTRACTING RESIDENTIAL DOWNTOWN, IT BECOMES
THE LIVING ROOM. MANY OF THE NEWSPAPERS AROUND THE COUNTRY
REFER TO THE COMMON AREA OPEN TO THE PUBLIC AS THE LIVING ROOM OF THE CITY. WE ARE NOW CREATING CYBER SECURITY CAMPUS
ON THE POWER PLANT PIER AND IT BECAUSE THAT’S WHERE THE KIDS WANT TO BE, THEY WANT TO BE
NEXT TO THESE KIND OF ATTRACTIONS SO THEY CAN DO WHATEVER THEY DO.
AND IT IS A GREAT –>>WHEN YOU ARE 70, EVERY ONE IN THE 40s ARE
KIDS.>>OKAY. THAT CONCLUDES THE QUESTIONS, THANK YOU FOR
AN EXCELLENT PRESENTATION. WE’LL TAKE A COUPLE MINUTE BREAK. [APPLAUSE]
WE’RE GOING TO TAKE A SHORT BREAK, A COUPLE MINUTES AND THEN WE WILL HEAR FROM THE LINDSAY
PROPOSAL.

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