Proposed Covenant House Headquarters Facility

Presentation To:

Covenant House New York

Board of DirectorsMarch 11, 2015

Project Team

2

Building Committee  

Phil Andryc (CHI/CHNY), ChairDirector of Research and Partner, Berens Capital Management; CHNY Board Chair

Tom McGee (CHI), Exec. Committee Deputy CEO, Deloitte LLP; Finance Committee Chair, CHI

Strauss Zelnick (CHI), Exec. CommitteeFounder and CEO, Zelnick Media; Development and Marketing Committee Chair, CHI

Lou Rauchenberger (CHNY), Exec. Committee

Managing Director and Chief Compliance Officer, J.P. Morgan Chase

Mark Hennessy (CHI) Vice President for Global Strategy and Sales Transformation, IBM

Maureen Henegan (CHNY) Chairman and CEO, Henegan Construction Co., Inc.

Paul Ingrassia (CHI) Managing Director and Group Head of North American Real Estate, Citi

Peter Greatrex (CHNY) Managing Partner, BlueMountain Capital Management   

Project Executive Team   Kevin Ryan (CHI) President, Covenant House International

Creighton Drury (CHNY) Executive Director, Covenant House New York

Jim White (CHNJ) Executive Director, Covenant House New Jersey

Dan McCarthy (CHI) Chief Financial Officer and Treasurer, Covenant House International

Jill Rottmann (CHI) Senior Vice President of Development, Covenant House International   

Consultant/Professional Team   Denham Wolf Real Estate Services Project Manager, Transaction Consultant

Encher Consulting Strategic Advisor

FXFOWLE Architects Planning Architect

two9three Consulting Finance/New Markets Tax Credit Consultant Paul, Weiss, Rifkind, Wharton & Garrison LLP

Real Estate Counsel

Fried, Frank, Harris, Shriver & Jacobson LLP Land Use Counsel

The Wright Group Lobbyist

Berlin Rosen Public Relations/Strategic Communications Consultant

Guiding Principles/Development Goals

3

Build a State-of-the-Art Facility• Expand and improve the quality of CHNY programs• Expand CHNY bed capacity• Establish a new international headquarters for CHI

Ensure Financial Sustainability• Fully fund new facility with real estate proceeds and public funding

sources• Maximize excess proceeds to invest in the future of Covenant

House• Maximize operating efficiency to reduce costs• Leverage the building project to catalyze an international capital

campaign

Minimize Development Risk• Avoid debt• Identify a strong development partner to construct the new facility• Structure the transaction to protect against risk

Minimize Disruption• Maintain our presence near the Port Authority Bus Terminal/Times

Square• Never close CHNY operations• Ensure that any transaction eliminates the possibility that CHNY

becomes homeless

Covenant House MOU Review

4

CH Project Team Meetings September 25(weekly since)

CHI/CHNY Building Committee Review February

18

CHI Finance Committee Review February

19

CHI Legal Counsel Review February 23

CHI Board Authorization February

25

MOU Execution March 20

Decision Timeline

5

MOUAPPROVAL

2/25 – CHI Meeting

RFPAPPROVAL

5/13 – CHI Meeting

DEVELOPERSELECTION

October 2015

CONTRACTEXECUTION

February 2016

$500K

- MOU

- Prelim. Building Program

- Prelim. Schedule

- Prelim. Sources & Uses

$500K

- RFP and Draft Project Term Sheet

- Conceptual Design

- Updated Schedule

- Updated Sources & Uses

with Cost Estimate

- Letter of Support from

Community Board

$750K - $1.25 MM

- Final Project Term Sheet

- Schematic Design (75% complete)

- Updated Schedule from Developer

- Updated Sources & Uses and

Cost Estimate from Developer

- Draft Development Services

Agreement

- Capital Campaign Feasibility Study

$750K - $1.50 MM

- Final Transaction Documents

- Schematic Design (100% complete)

- Updated Schedule from Developer

- Updated Sources & Uses and

revised Cost Estimate from Developer

- Final Development Services

Agreement

- Capital Campaign Quiet Phase

$1.0MM Total $1.75MM - $2.25MM Total $2.5MM - $3.75MM Total

Community Engagement

6

Briefings to Elected Officials/Community:

• Councilmember Corey Johnson February 11

• Borough President Gale Brewer March 11

• Community Board 4 Leadership March 23

(week of)

• Community Board 4 Land Use Committee April or May

Media Strategy:

• Draft Rollout Strategy from Berlin Rosen March 2

• Board Talking Points/Media Prep Memo March 23

(week of)

• Media Rollout April or May

Conceptual Design

7

• Conceptual Design Commencement March

16

• Design Workshop with DYCD, True Colors March

30 (week of)

• Design Workshop with CHNY Board April 11

(tentative)

• Preliminary Cost Estimate May 4 (week

of)

• Complete Conceptual Design May 17

• RFP for Project Architect June-

July

Conceptual Design

8

Conceptual Design

9EXAMPLE

Conceptual Design

10EXAMPLE

Conceptual Design

11EXAMPLE

Conceptual Design

12EXAMPLE

Capital Campaign

13

Capital Campaign Consultant Selection:

• RFP Released March 11

• Responses Due March 27

• Interviews April 2-14

• Consultant Selected April 17

• Project Commencement April 27

Questions?

14

Site Overview

WESTERN SITE(FOR DEVELOPER 

BUILDING)EASTERN SITE

PARCEL A(FOR NEW CH FACILITY)

EASTERN SITEPARCEL B

(RETAINED BY CITY)

PORT AUTHORITY(PARTICIPATION 

TBD)

15

FY2015 Building Project Budget

16

16

FY2015

Building Project as of 2/28 thru 6/30 Total

Design $38,300 $223,000 $261,300

Legal Services* $153,800 $108,000 $261,800

Consultants $200,400 $152,000 $352,400

Capital Campaign $0 $25,000 $25,000

Other Project Costs $14,000 $45,000 $59,000

Subtotal $406,500 $558,000 $964,500

Surplus/(Deficit) $93,500 ($93,500) $0

Contingency $0 $35,500 $35,500

Total Building Project Budget $500,000 $500,000 $1,000,000

*Estimate for Legal Services provided in January and February. Billing is processed 30 days after end of billing month