High Point Park Case Challenge
The Vertical Crawl
where Pittsburgh’s contemporary meets
culture..
Steven Meersman
Lavanya Shaji
Daniel Brackley
Jess Martin
Abhay Doshi
Current Situation
One acre of unused outdoor space looms 840ft above
Pittsburgh making the top of the US Steel Tower the
tallest point in the city. In a city known for its spectacular
evening views and green initiatives, this space poses an
excellent place for the development of an environmentally
friendly, self sustaining, and publicly accessible
observation point.
Proposal
• Development of a contemporary designed facility that
includes indoor and outdoor space that showcases
Pittsburgh.
– Indoor structure allows flexibility for weather
conditions and year round accessibility
– External elevators minimize hindrance to building
tenants and local residents
Vision
• Development of a contemporary designed facility that
includes indoor and outdoor space that showcases
Pittsburgh.
– Indoor structure allows flexibility for weather
conditions and year round accessibility
– External elevators minimize hindrance to building
tenants and local residents
Mission
• Our mission is to host a centralized point for Pittsburgh
tourists to start their visit and locals with an everyday
indoor and outdoor space. Our center provides an
interactive experience through outdoor gardens, local
art and food while also providing a wealth of
information about Pittsburgh.
 External Elevators
 Educational
& Events
 The Award
Winning View
 Pittsburgh
Cuisine
 Adaptable
 Pittsburgh Art
& Culture
Features
Activities
The Vertical Crawl
Stained Glass from
Pittsburgh Glass
center
Peregrine Falcon
Hydroponics
Café/Restaurant
Elevator Gallery
Interactive Windows
Central
Space/Gallery
Market Analysis
• Strategy : Partner and Prosper
• Key Partnerships:
– Restaurants: Pamela’s Primati
Brothers
– Tour guides: Molly’s Trolleys,
Ducky tours
– Galleries and Museums
– Décor: Pittsburgh Glass Center
The Competition
• Places with a view in the city:
– Mt. Washington :
Nighttime view from Mount
Washington in Pittsburgh was
voted 2nd most beautiful place in
America by USA WEEKEND's
Annual Travel Report
• Airport
– Free activities around the city
such as Schenley Park, Museums
etc.
Green Technologies
• Pollution Technology
• Rainwater Harvesting
– Grey Water
• Bio Degradable Materials
• Indoor Fresh Air
• Electricity
– Wind Turbines
– Translucent PV Panels
– Thermo Energy
Services – Revenue Source
1. Main Services




Visitors Center
Observation
Deck
Museum
Garden
2. Secondary
Services



Event Center
Restaurant/Café
Lounge
Financial Analysis
32
%
59
%
8%
Tickets
Segmentation
strategy to
extract surplus
observation deck,
total package,
club, commission
Advertising
& Rent
Sponsored
spaces by local
companies,
museums etc
Restaurants
Utility
Savings
Depend on level
of technology @
implementatio
n
10% of utility
bills
Events
1%
Merchandise
$7M Revenue
after 5 years
Funding
• The Heinz Endowments
• The Richard King Mellon
Foundation
•
The Pittsburgh Foundation
• Alcoa Foundation
• Pennsylvania Department of
Conservation and Natural
Resources (DCNR)
“In addition to the $2.5 billion already invested in downtown riverfront development
over the past five years, some $400 million in new commercial development is
scheduled. Add to that an already major influx of more than 3,200 new Downtown residents.
They will all need outdoor space where they can spend their time and money.”
– Economic Development, www.pointstatepark.com
Benefits to the Pittsburgh Community
– Attracts tourists to
Pittsburgh
• Central point for all attractions
• Interactive experience
• Showcases the art
– Educational
• Case competitions
• Robotic exhibitions
• Monumental History
highlights of Pittsburgh
– Role model
• Green innovation
• Utilizing empty spaces
• Propagates local businesses
Recovery of Urban Peregrine Falcons
• The peregrine falcons in Pittsburgh
used to be the only peregrines known to
breed in the western part of
Pennsylvania.
• Groups :
– The National Aviary
– Western Pennsylvania Conservancy
– The Pennsylvania Game Commission
• Live streaming from web cam of the
peregrine falcon nest to wide
screens in the observatory
Proposed Benefits
Our Plan
– External Green Elevators
• Outside of building
• Unique
• Green Role Model
– Green Park Area
• Location and view
• All-weather
• Attractive outdoors area
– Gallery
• Advertising/Information
• Art community
• Flexible space for private
parties, events, etc.
Potential Risks& Mitigation
Risks
General decrease in tourist
sector
Mitigation
•Diversification
•Growing Economy
•Adapt to local residents
Residents disrupted
•Financial incentives
•Access Perks
•Business tabs/discounts
Permit Issues
•Studies and Research in
oLegal
oSafety
oEnvironmental
oPublic
oPolitical support
“Places become what people dream”
- Teresa Heinz
Appendix
Financial Sustainability
Funding
– Green
– Educational
– Pittsburgh Landmark
– Historical
– Innovative
Business Partners
– VisitPittsburgh.pa
– CMU and PITT cooperation
– Gallery Crawl/Cultural Trust
Revenue streams
– Restaurant/Bar
– Entrance Fees
– Event Access
– Advertising
– Leasing
– Merchandise
Incentives for building
owners
– Tab for Restaurant, Bar
– Business Meetings/Events
– Advertising Space
Appendix 1: Financial Forecast
growth
%revenue
0
revenue
#tickets
-tickets
----elevator
----total package
----club
----commission
-merchandise
-advertising
-utility savings
-rent
----restaurant
----events
----club
breakup
40%
50%
10%
2%
32.68%
9.61%
20.02%
2.40%
0.64%
0.20%
0.60%
58.67%
1
$ 4,994,376.00
80000
$ 1,632,000.00
$ 480,000.00
$ 1,000,000.00
$ 120,000.00
$ 32,000.00
$ 10,000.00
$ 30,000.00
$ 392,376.00
$ 2,930,000.00
$ 1,600,000.00
$ 665,000.00
$ 665,000.00
20%
2
$ 5,538,776.00
96000
$ 1,958,400.00
$ 576,000.00
$ 1,200,000.00
$ 144,000.00
$ 38,400.00
$ 12,000.00
$ 33,000.00
$ 392,376.00
5%
$ 3,143,000.00
$ 1,680,000.00
10.0%
$ 731,500.00
$ 731,500.00
15%
3
$ 5,993,136.00
110400
$ 2,252,160.00
$ 662,400.00
$ 1,380,000.00
$ 165,600.00
$
44,160.00
$
13,800.00
$
34,650.00
$ 392,376.00
5%
$ 3,300,150.00
$ 1,764,000.00
5.0%
$ 768,075.00
$ 768,075.00
10%
4
$ 6,386,472.00
121440
$ 2,477,376.00
$ 728,640.00
$ 1,518,000.00
$ 182,160.00
$ 48,576.00
$ 15,180.00
$ 36,382.50
$ 392,376.00
5%
$ 3,465,157.50
$ 1,852,200.00
5.0%
$ 806,478.75
$ 806,478.75
10%
5
$ 6,810,804.60
133584
$ 2,725,113.60
$ 801,504.00
$ 1,669,800.00
$ 200,376.00
$
53,433.60
$
16,698.00
$
38,201.63
$ 392,376.00
5%
$ 3,638,415.38
$ 1,944,810.00
5.0%
$ 846,802.69
$ 846,802.69
10%
6
$ 7,268,816.61
146942.4
$ 2,997,624.96
$ 881,654.40
$ 1,836,780.00
$ 220,413.60
$ 58,776.96
$ 18,367.80
$ 40,111.71
$ 392,376.00
5%
$ 3,820,336.14
$ 2,042,050.50
5.0%
$ 889,142.82
$ 889,142.82
Appendix 1: Space Utilization
total space [sq ft]
44000
equilateral triangle
1.7320508080.25
subtract safety distance from edge
side [ft]
318.7689561
30000%
38971.14317
70%
27279.80022
90%
24551.8202
75%
18413.86515
42965.68535
inside space
usable space 1st floor
usable space 2nd floor
market size for tickets
locals
students
tourists
2.4M
0.15M
3.9M
6.45M
space utilization
main hall
gallery 1
gallery 2
gallery 3
bar
souvenir shop
restaurant
observatory deck
walkways, etc
floor
1,2
1
1
1
2
2
floor 1
4000
9000
4000
4000
1700
1700
floor 2
3000
1200
8000
6000
151.8201973 213.87
Financial Analysis
32
%
59
%
8%
Tickets
Segmentation
strategy to
extract surplus
observation deck,
total package, club,
commission
Advertising
& Rent
Sponsored spaces
by local
companies,
musea, etc
Restaurants
Utility
Savings
Depend on level
of technology @
implementation
10% of utility
bills
Events
1%
Merchandise
$7M Revenue
after 5 years
Revenue Mix
growth
%revenue 0
revenue
#tickets
-tickets
breakup
----elevator
40%
----total package
50%
----club
10%
----commission
2%
-merchandise
-advertising
-utility savings
-rent
----restaurant
----events
----club
32.68%
9.61%
20.02%
2.40%
0.64%
0.20%
0.60%
7.86%
58.67%
1
$ 4,994,376.00
80000
$ 1,632,000.00
$ 480,000.00
$ 1,000,000.00
$ 120,000.00
$ 32,000.00
$ 10,000.00
$ 30,000.00
$ 392,376.00
$ 2,930,000.00
$ 1,600,000.00
$ 665,000.00
$ 665,000.00
20%
2
$ 5,506,776.00
96000
$ 1,958,400.00
$ 576,000.00
$ 1,200,000.00
$ 144,000.00
$ 38,400.00
$ 12,000.00
$ 33,000.00
$ 392,376.00
3%
$ 3,111,000.00
$ 1,648,000.00
10.0%
$ 731,500.00
$ 731,500.00
15%
3
$ 5,926,576.00
110400
$ 2,252,160.00
$ 662,400.00
$ 1,380,000.00
$ 165,600.00
$ 44,160.00
$ 13,800.00
$ 34,650.00
$ 392,376.00
3%
$ 3,233,590.00
$ 1,697,440.00
5.0%
$ 768,075.00
$ 768,075.00
10%
4
$ 6,282,635.20
121440
$ 2,477,376.00
$ 728,640.00
$ 1,518,000.00
$ 182,160.00
$ 48,576.00
$ 15,180.00
$ 36,382.50
$ 392,376.00
3%
$ 3,361,320.70
$ 1,748,363.20
5.0%
$ 806,478.75
$ 806,478.75
10%
5
$ 6,666,808.70
133584
$ 2,725,113.60
$ 801,504.00
$ 1,669,800.00
$ 200,376.00
$ 53,433.60
$ 16,698.00
$ 38,201.63
$ 392,376.00
3%
$ 3,494,419.47
$ 1,800,814.10
5.0%
$ 846,802.69
$ 846,802.69
Income statement
0
1
2
3
4
5
6
7
8
$ 5.51
$ 5.93
$ 6.28
$ 6.67
$ 7.08
-Revenues
$
-
$
-
$
-
$ 4.99
-Costs
$
-
$
-
$
-
$(2.38) $(2.45) $(2.53) $(2.60) $(2.68) $(2.76)
--rent
$
-
$
-
$
-
$(1.30) $(1.34) $(1.38) $(1.42) $(1.46) $(1.51)
--maintenance
$
-
$
-
$
-
$(0.13) $(0.13) $(0.14) $(0.14) $(0.15) $(0.15)
--labour
$
-
$
-
$
-
$(0.95) $(0.98) $(1.01) $(1.04) $(1.07) $(1.10)
--investment
$(20.00) $(20.00) $(6.00)
-Income w/ rent
$(20.00) $(20.00) $(6.00) $ 2.61
$ 3.05
$ 3.40
$ 3.68
$ 3.99
$ 4.32
-Income w/o rent
$(20.00) $(20.00) $(6.00) $ 3.91
$ 4.39
$ 4.78
$ 5.10
$ 5.45
$ 5.83
-NPV w/0 inv
$ 15.73
-NPV w/ inv
$(23.49)
@ inflation = 3%, discount = 10%
$
-
$
-
$
-
$
-
$
-
$
-
Appendix III: space utilization
space utilization
floor
floor 1
floor 2
main hall
1,2
4000
3000
gallery 1
1
9000
gallery 2
1
4000
gallery 3
1
4000
bar
1700
souvenir shop
1700
1200
restaurant
2
8000
observatory deck
2
6000
walkways, etc
rent
$/sq ft
in building
top building
event
151.8202 213.87
occupancy
total space [sq
ft];
44000
equilateral triangle
side [ft]
1.7320508080.25
318.7689561
subtract safety distance from edge
30000%
inside space
70%
usable space 1st floor
90%
usable space 2nd floor
75%
sq ft
annual rent
30
42965.68535 $ 1,288,970.56
200
8000 $ 1,600,000.00
avg p/meal
40
# meals
$
40,000.00
days/year
280
meals/day
142.8571429
38971.14317
27279.80022
24551.8202
18413.86515
42965.68535
total
#
nights/week
weeks
%rent
total rent
$
$
4000sq ft
8sq ft / person
500# people
10cover charge
0.7
3,500.00
13,300.00
2
50
$ 1,330,000.00
50%
$ 665,000.00
7$/drink
4drinks/person
$
9,800.00
Foundations/Organizations who sponsor
off-site exhibitions
•
National Arts Program
http://www.nationalartsprogram.org/
-sponsors a ton of exhibitions in airports throughout the country
Pennsylvania Council on the Arts Partners in the Arts Grant
http://pacouncilonthearts.org/pca.cfm?id=6&level=Third
-Goal is to expand access and visibility of the arts in PA
GPAC Artist Opportunity Grant
http://www.pittsburghartscouncil.org/artistoppgrant.htm
-Artist has to apply directly, but designed to increase new opportunities to display (like your project)
Sprout Fund
http://www.sproutfund.org/publicart/
-Focus on the Pittsburgh region, new opportunities for the public to experience art. They do small
projects and grants, but also a good option for individuals and small organizations to get funding for a
public project
Visit Pittsburgh
http://www.visitpittsburgh.com/essentials/visual-arts/
-They were really involved with the art program at the airport, might be a good overall sponsor for your
project.