Property Owners Association Annual Meeting Notice July 26, 2016 5:00pm - 7:00pm Park City Marriott 1895 Sidewinder Drive Park City, Utah Annual Meeting Agenda Welcome Approval of Minutes Introduction of New Property Manager FY 2016 Financials FY 2017 Budget Appointment of Board Members Master Plan Update Vision Scope & Cost Necessities & Options Timeline & Phasing Solicit Member Feedback Explain Process and Timeline until a Master Plan Vote 1
Approval of Minutes See enclosed minutes. Destination Hotels Utah PSPOA s New Property Manager 10+ years operating history in Park City Expertise in mixed-use and resort operations, development and construction Association, Hospitality, Retail/Commercial, Meeting & Conferences, and Special Events Staff Leah Kolb Josh Mellor Chris Retzer www.dhutah.com 2
FY-2016 Financials See enclosed documents. FY-2017 Budget In April, the Board voted to increase dues to account for rising costs, new utility fees and continued reserve funding (goal is a $100,000 balance in reserve funds). In May, the Executive Committee agreed with the Board and supported a minimum 12% increase. A summary of cost increases are: $16,000 (100%) increase for new Storm Water Utility Fee $3,545 increase (9%) in water fees $300 increase (8%) in electricity costs See enclosed documents. 3
Appointment of Board Members Dean Berrett Scott Welling Marlene O Hara Bryn Carey Alison Child Rex Keeler Luis Olivas Nathan Sears Michael Stoker Jan Wilking Chuck Zuercher Prospector Square Master Plan Vision Provide and promote an inviting and vibrant residential and commercial community Encourage business development Maximize values and entice investment Attract guests to come, explore and stay Efficiently use resources to benefit tenants and property owners 4
Parking Lots Current Conditions Landscaping Current Conditions Signage Sewer Lighting 5
Prospector Square Market Conditions Prospector Square is an older community facing newer and forthcoming competition. If the Master Plan is not pursued to revitalize Prospector Square and achieve the construction, design and pedestrian standards offered by other communities, property owners will experience declining values. Lighting, landscape, hardscape, parking and pedestrian circulation are identified as the improvements most likely to add value and secure Prospector Square s position in the marketplace. Prospector Square Market Analysis Zions Bank Public Finance and The Becker Company completed a Market Analysis for Prospector Square in June 2016. Online access can be found at www.prospectorsquare.com/future. Highlights include: Reduce tenant turnover and create value. Neighborhoods with public gathering spaces is important in today s retail and lodging business. Rental rates are predicted to increase between three and seven percent. Residential portions of the area will likely see increased demand, which can be correlated to a higher valuation. Keep us competitive. Total projected costs (roughly $6.1 million) should be realized by projected valuation increases. 6
Neighboring Competition BoPa Redevelopment - Construction in 2017 for the area shown in blue. 5.27 acres with a potential 277,000 square footage of commercial, residential and office. Why now? 1. Maintenance and upkeep has been deferred too long. 2. Newer, competing communities are capturing more tenants and customers 3. Coordination with City s reconstruction of Prospector Avenue ($2M of improvements) 4. If Prospector Square works in conjunction with the City, we can save money, time and disruption in the Prospector Avenue area of the Master Plan 5. City Council is facilitating the emergence of outdoor industry campus in Prospector Square, but their motivation to continue will be predicated on our commitment to make improvements. Current outdoor industry businesses: Pret - Snow Helmets POC Snow and Bicycle Helmets and Gear Avatech Technology products for mountain safety SnoCru SnowSport App 6. SnowSports Industry America (SIA) is relocating to Park City and shopping for office space in Prospector Square 7. The Snyderville Basin Water Reclamation District has committed to taking over the sewer system if improved to current standards, which eliminates maintenance and liability for the organization. 7
Goals Parking lot resurfacing and striping Sidewalk and traffic reconfigurations (including traffic calming measures, crosswalks, signal improvements) Improve building signage and way-finding opportunities Improve streetscape parking Add more lighting in parking and exterior common areas Goals Significant upgrades to landscape and hardscape improvements, including new irrigation, paving, plants and trees, and enhanced plaza area arrangements Improvements to outdoor dining areas, planter boxes, trash enclosures, benches and bike racks. Upgrades to replace the existing sewer lines. 8
Necessities Parking Lot Resurfacing & Striping Irrigation Landscape Sewer Upgrades Replace sidewalks in corridor Parking Lot Lighting Trash enclosures Signs Site Furnishings: Trash Receptacles Bike Racks Benches Scope of Plan Options Improved Gathering areas Lighting String Lighting (atmosphere) Site Furnishings: Planter Pots Tables and Moveable Chairs Outdoor Sound system Accent Paving in Corridor Plaza Space Interactive Feature Cost Necessities - $4,713,082 Options - $1,395,304 Category Description Cost Demolition Hardscape Sewer Sidewalk removal, parking lot removal, clearing and grubbing of landscape Parking Lot resurfacing and striping, concrete sidewalk, trash receptacles, bike racks, benches and trash enclosures Replace existing lines with 8 lines and turn over responsibility to SBWRD $254,460 $1,469,900 $860,000 Wayfinding Signs $81,000 Landscape Lighting Soft Costs Shrubs, groundcover, trees and irrigation Pathway lighting, parking lot lighting and temporary power distribution Mobilization, architect and engineer costs, survey and project management $506,700 $237,000 $622,211 Contingency 20% $681,812 Category210 Description Cost Hardscape Interactive Features, accent pacing, planter boxes and pots, tables and chairs $516,800 Wayfinding Monument Signs $ 45,000 Gathering Areas $301,500 Lighting Soft Costs String lighting (atmosphere) and sound system Mobilization, architect and engineer costs, survey and project management $153,500 $175,144 Contingency 20% $203,360 9
Phase I - 2017 Work would include: Sewer replacement Utility upgrades Parking lot lighting Dumpster/recycle enclosure Relocation of fire hydrant New Asphalt Phase II - 2018 Work would include: Sewer replacement Utility upgrades Lighting Walkways Landscaping and Irrigation 10
Phase III - 2019 Work would include: Sewer replacement Utility upgrades Parking lot lighting Dumpster/recycle enclosure Relocation of fire hydrant New Asphalt Financing The Master Plan maximum cost = $6.1 million Improvements will be funded through assessments Loan Options are in exploration Determine Necessities vs. Options Public Funding options will be pursued, but plan will not be contingent upon receiving public funds 11
Master Plan Assessment Examples See enclosed documents. CC&Rs Update Prospector Square s governing documents will require amendments to support the Master Plan and long-term goals for defining responsibility and honoring standards of maintenance in parking areas, landscape, irrigation, hardscape, lighting, signage, etc. The Association may also amend other governing documents such as architectural guidelines, Board and Executive Committee operations, electronic communication and voting, as well as online meetings. 12
Feedback/Discussion Member feedback and discussion: Master Plan Necessities vs. Options Financing Feedback will be considered by the Board in formulating a final plan and cost for a membership vote. Due Diligence August 5 August 19 August 20 September 20 September 20 Survey sent to membership for feedback on Master Plan Survey Closes Revise plan to reflect annual meeting and survey feedback Open House to present revised plan and gather feedback September 30 Announce Final Plan, Cost, Finance Option and Scope of Vote October 16 Final Vote Deadline 13