UPMC High Point Lookout
21
1 UPMC High Point Lookout Tirzah DeCaria Jose Frech Sakshi Ganesh Melissa Lee Bhushan Suryavanshi Huimin
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UPMC High Point Lookout. Tirzah DeCaria Jose Frech Sakshi Ganesh Melissa Lee Bhushan Suryavanshi Huimin Tan. Table of Contents. Business Model Design Environmental Sustainability Financial Sustainability Benefits for Pittsburgh Summary. UPMC High Point Lookout. - PowerPoint PPT Presentation
Transcript of UPMC High Point Lookout
1
UPMC High Point Lookout
Tirzah DeCaria Jose FrechSakshi Ganesh Melissa Lee Bhushan SuryavanshiHuimin Tan
Table of Contents Business Model Design Environmental Sustainability Financial Sustainability Benefits for Pittsburgh Summary
A place for greener perspectives
Mission To provide a way to experience the downtown skyline in
Pittsburgh that is environmentally sustainable.
Vision The UPMC High Point Lookout is a focal point for
welcoming and economic prosperity for Pittsburgh.
Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
UPMC High Point Lookout
Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Business Concept
Lookout Point for
the public
Conference
Center
UPMC High Point
Lookout
Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
3.9 Million Pittsburgh
Tourists
96 conference
s
Expected 150,000 visitors
Annually
10 Special Events
Who are the customers?
Event Space
• Phipps Conservatory
• The August Wilson Center
• Heinz Field
Corporate Meeting Space
• Marriot Ballroom
• Doubletree hotel
• The down town Convention Center
Tourist Attractions
• Duquesne Incline
• Mt. Washington Lookout
• The Carnegie Museums
Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Competition
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Potential Partnerships
UPMC High Point
Lookout
Winthrop Managem
ent
UPMC Executive Managem
entCity of
Pittsburgh
Design Concept
Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Architects: Mitsu Matsuura, Jiwon Hur, Melissa Goh, Josh Johnson, Matthew Alder, Looly Lee, and Yifan Xu.
Design Concept - Outdoor/Indoor Space
Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Architects: Mitsu Matsuura, Jiwon Hur, Melissa Goh, Josh Johnson, Matthew Alder, Looly Lee, and Yifan Xu.
Benefits of the Design
Simplistic Design
Real estate
appreciation
Self sustaining
Serves the communit
yTourist
Attraction
Promotes Green
technology
Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
$16.6 Million in capital costs Materials & Construction ($15.9 million) Permitting & Licensing ( $50,000) Marketing Campaign ($ 1 million)
1 year to complete construction
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Costs
Non-profitUPMCUPMC + Private
InvestmentPartners
hip For Profit3rd Party Investm
ent
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Funding Structure
• UPMC will fund the project• Revenue potential and brand equity• Possible 501 c (3) status
• Joint Venture between UPMC and Private Investors• Naming rights for UPMC with possible ROI on investment
•Project will be funded by private investors• Naming rights revenue potential in addition to typical project cash flows
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Financial Projections – Option 1
(15,000,000)
(10,000,000)
(5,000,000)
-
5,000,000
10,000,000
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$000
Cash Analysis: Net Revenue to NPV
Capital Expenditures Operating Expenses Taxes After-Tax Cash NPV Cumulative NPV
• 15 YR NPV @ 18% Discount Rate = $ 6.9 MM• Break Even = 5 Years
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Financial Projections – Option 3
• 15 YR NPV @ 18% Discount Rate = $ 4.6 MM• Break Even = 5 Years
(15,000,000)
(10,000,000)
(5,000,000)
-
5,000,000
10,000,000
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$000
Cash Analysis: Net Revenue to NPV
Capital Expenditures Operating Expenses Taxes After-Tax Cash NPV Cumulative NPV
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Financial Projections – Option 2
• 15 YR NPV @ 18% = $ 4.6 MM• Break Even = 2.5 Years
(15,000,000)
(10,000,000)
(5,000,000)
-
5,000,000
10,000,000
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$000
Cash Analysis: Net Revenue to NPV
Capital Expenditures Operating Expenses Taxes After-Tax Cash NPV Cumulative NPV
• 15 YR NPV @ 18% = $ 0.7 MM• Break Even = 8 Years
Investors UPMC
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Revenue Projections
Visitor Revenue - $ 3,900,000
Conference Room Revenue - $ 816,000
Special Event Revenue - $ 190,000
Install rooftop thin film solar panels (81KW)-105,948 KWh electricity generated each year-Provide 0.16% of energy needed by steel tower
Enhance Energy Efficiency• Install LED light bulbs -save up to 80% energy • Employ Energy-Star electronic appliances -save up to 40% energy• Employ natural lighting and ventilation • Skin walls to retain the temperature
Conservation-Rainwater collection system-Recycling
Plant Saplings-Carbon sink-GHG absorption
Minimize carbon footprint
Open regularly for Non-profit organizations
Café and maintenance will hire Milestone Centers Inc. employees
Providing a green space for downtown visitors
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Benefits to the society
Enhances Pittsburgh’s image as an innovator in a “green” way
Enhances the experience for the community of Pittsburgh
Financially sustainable business
Financially, socially, and environmentally optimal use of the US Steel Towers rooftop.
Design Concept Market Strategy
Capital Investmen
tFinancial
ModelSustainabi
litySocial Impact
Conclusion
Conclusion
Q & A
Appendix- solar panel power generation
Assumptions Value Unit
Average daylight hours per year 1308 hours
Benchmark per squared foot power generation 0.0055102 KW/sq ft
Annual power generation by solar panel 105,948 KWh
Average office building energy intensity 97.2thousand btu/square feet
Squared footage of steel tower 2,300,000 Sq ft
Annual power needed by Steel tower 65,502 MWh
Percentage of power provided for the building 0.16% %
