Renovating KeyArena into a World-Class Sports, Entertainment and Civic Asset: GLOBAL EXPERIENCE AND LOCAL PARTNERSHIPS MATTER FOR SEATTLE CENTER . - 5-5" Npuic air-II 5 Anal iv 44-- .. I 7" - $n?mM 7 -, . -. I If.? I SEATTLE PARTNERS AND OAK VIEW GROUP: A COMPARISON A I PROPERTIES Seattle Partners A Winning Team HUDSON NYGAARD PACIFIC SEATTLE . COMMUNICATIONS COLISEUM Seattle Partners and Oak View Group: A Comparison The Seattle Partners? proposal to renovate KeyArena is shovel-ready on day one, while providing the most benefits to the City with the least risk. All descriptions of Oak View Group's proposal contained here are based on the publicly available version of their proposal, which was heavily redacted. CREDENTIALS AEG Worldwide, standing shoulder-to-shoulder with Hudson Pacific Properties in the joint venture Seattle Partners, is the only bidder that has built professional sports and entertainment venues. SEATTLE PARTNERS AEG has over two decades? experience owning, operating and developing arenas and live entertainment venues OVG Two-year-old advisory/consulting firm with no experience owning or operating live entertainment or sports venues Owns, operates and books over 120 venues across five continents OVG owns no venues OVG operates no venues OVG books no venues 28,000 employees 107 employees Fully integrated team with operations. real estate, legal, human resources, design, sales and marketing expertise all in house; no need to outsource critical support needs No extended teams capable of handling integrated elements of arena development and/or management Decade of operational experience in Seattle with hundreds of employees on the ground and a local development team of experienced partners No operations in Seattle; one local employee prOprietary Security Processes and Procedures have been exhaustively reviewed by the US. Department of Homeland Security and designated for protection under the US. SAFETY Act. No stated security processes or procedures LOCAL ROOTS Seattle Partners is the local team with deep roots in Seattle. SEATTLE PARTNERS AEG has been in Seattle for over a decade, successfully servicing events at KeyArena and overseeing Bumbershoot, the Marymoor Park Concert Series and the ShowBox Theaters Hudson Pacific has invested over $750 million in Seattle to date and owns and operates over 1.5 million square feet in the city; local office run by a team that were born, raised. educated and now raising their own families in Seattle Extended Seattle Partners team includes companies that embody the best of Seattle?s values: Sellen Construction. Gensler, Nelson\Nygaard, Foster Pepper and Nyhus Communications Strong, existing relationships with community leaders. nonprofit organizations (including the Greater Seattle Business, Association and Plymouth Housing Group), arts and cultural institutions. and current tenants on the Seattle Center campus (including KEXP and the Seattle Storm) OVG No local presence in Seattle or track record of partnerships in this market NBA AND NHL AFFILIATIONS Seattle Partners knows how to attract NBA and NHL teams to Seattle. SEATTLE PARTNERS OVG AEG venues are home to 58 sports teams, including 8 NBA teams, 6 NHL teams and 4 WNBA teams Does not own or operate any professional sports or live entertainment venues AEG is the owner of the Los Angeles Kings and partial owner of the Los Angeles Lakers Does not own any professional Sports teams AEG owns all or part of 9 professional sports teams around the world Does not own any professional sports teams AEG CEO Dan Beckerman sits on the Board of Governors for the NHL and the LA Lakers Board of Directors Does not have a representative on the Board of Governors for either the NHL or NBA AEG recently built T-Mobile Arena in Las Vegas and successfully brought the Las Vegas Knights NHL team to Las Vegas Has never developed an arena and has no track record attracting a professional sports franchise to a venue FINANCIAL MODEL Seattle Partners has a superior financial model with a built-in revenue stream for the City. Seattle Partners model generates a surplus of over $140 million to the City, while OVG takes away up to $140 million in parking revenue. SEATTLE PARTNERS Commitment of over $270 million in equity directly from AEG and Hudson Pacific Properties OVG Composition of ownership group and sources of funding unclear No financing contingencies; not dependent on bank financing $5 million deposit. paid upfront $5 million annual rent payment with annual escalations Requires bank financing from Goldman Sachs that has contingencies; details of financing commitment not shared with the public $100,000 deposit, paid after obtaining all entitlements $1 million fixed annual rent payment. minus "Development incentive Credits" Seeking $250 million in bonding capacity from the City, which will be fully repaid by proceeds from the project and Seattle partners. Zero cost and zero risk to the City; any debt service shortfalls are 100% guaranteed by Seattle Partners. Estimated surplus to the City in excess of $144 million over the initial 35-year term ofthelease Seeking numerous tax credits that go directly to OVG, including admissions taxes. leasehold excise taxes, and parking taxes, with no financial benefit to the City. No estimated surplus for the City. Lost parking revenue and other revenue streams to the City estimated at up to $140 million. Results in a gap between the two proposals estimated at up to $284 million. City retains all revenue generated by City-owned parking garages outside of redevelopment site. No request for control of City-owned parking garages outside of development zone. Requires control of two City?owned parking garages not included in the RFP. The Mercer and 5th Ave garages account for more than two-thirds of the total Seattle Center parking garage capacity. Taxpayers will lose an estimated $140 million in revenue to the City over the 35-year lease (two-thirds of the $6 million generated by the three garages annually) 100% responsible for any cost overruns City of Seattle responsible for cost overruns deemed "outside of OVG's control? Responsible for all operations and maintenance costs Requesting City-supported operations and maintenance account SEATTLE PARTNERS AND OAK VIEW GROUP: A COMPARISON DESIGN AND NEIGHBORHOOD INTEGRATION While honoring the past, the Seattle Coliseum looks to the future with a no-compromise design that is transparent, light-filled, accessible, has better sightlines, includes the latest technologies and cutting-edge amenities, and is integrated into the surrounding neighborhood. SEATTLE PARTNERS Expanding the bowl to the south recoups underutilized space and results in better sight lines for events Expanded bowl design creates a more comfortable fan experience with a wider, more modem 34" tread (increased leg room) and wider 20" and 22" seats OVG Excavating down 15 feet creates steeply vertical seating angles and does not improve upon current sight lines Design does not indicate increased leg room, wider seats or improved fan expenence Expanding windows to the edge of the roofline creates roomier concourses with ample natural light and increased transparency with surrounding neighborhood 66 suites Center-hung scoreboard meets current NBA and NHL design standards No need to tunnel under Thomas Street for underground truck loading and unloading Design vetted by Seattle Structural and Sellen Construction to ensure timetable and cost estimates are accurate and achievable Estimated cost: $520 million Excavating down creates a subterranean experience with less natural light and inconvenient entry at upper concourse level, requiring patrons to traverse several floors to get to the lower concourses 40 suites, plus 16 ?bunker" suites without a direct sight line to playing surface Scoreboard as depicted may not be consistent with current NBA and NHL standards Tunneling under Thomas Street creates disruptive construction process and adds potential for complications, delays and cost overruns No clear partnership with structural engineer. Cost and timetable overruns associated with complications from excavation not factored into projections. Estimated cost: $565 million South development block used for construction phasing, keeping staging ?on-site? and minimizing impact to surrounding community Renderings show construction staging on portion of Thomas Street, requiring street shutdown and disrupting surrounding community Permeable urban design plan integrates Seattle Coliseum with the Uptown neighborhood and Seattle Center, including: a new, accessible west plaza; a south paseo for community and arena event activation; 3 pedestrianized Thomas Street in accordance with the Lake to Bay plan; new Arts, Culture and Wellness loop to enhance integration with Seattle Center; appropriately scaled infill development with office and residential uses; and activated street edges on ist Ave. with food, beverage and retail uses. Both indoor and outdoor existing art installations are retained and enhanced, including the legacy art paving on the West plaza of the Arena. Proposal does not include specific neighborhood integration measures or a larger master plan TRANSPORTATION SEATTLE PARTNERS AND OAK VIEW GROUP: A COMPARISON Seattle Partners? transportation strategy is forward-looking, not car-centric, and utilizes the latest technologies to better support the neighborhood. It also kickstarts high-priority projects in the City's existing transportation planning. SEATTLE PARTNERS OVG Robust multimodal transportation plan reduces single-occupancy vehicles traveling to events at the Coliseum by translating to 100,000 fewer cars per year. Under this forward-looking plan that takes advantage of all of the new ways people commute, 70% of people coming to events are traveling in ways other than driving by themselves Car-centric proposal requires direct public subsidy for 850-stall parking garage with total construction cost estimated to be at least $47 million; new garage will create an additional traffic pinch point without addressing any underlying transportation challenges. No contingency plan if public subsidy is not available to build garage. $5 million investment toward transportation vision that leverages City?s existing transportation planning No financial commitment to traffic mitigation; Requesting public subsidy to construct parking garage and revenue from existing City-owned garages Commitment to hire a Seattle Coliseum Transportation Director to build partnerships with key stakeholders, especially the Uptown, Queen Anne, South Lake Union, Belltown and Downtown neighborhoods. The Transportation Director will implement, monitor and adapt strategies in an evolving transportation landscape No commitment to ongoing transportation manager Development of City?s first full-service mobility hub to service Seattle Coliseum and the surrounding campus No mobility hub included in transportation strategy Leverage technology and existing parking infrastructure to mitigate the impact of vehicle traffic, especially single-occupancy vehicles, in and around Seattle Center. Relies on publicly financed parking garage in the most congested area of the Uptown neighborhood to service arena events. City retains all revenue generated by City-owned parking garages outside of redevelopment site. No request for control of City-owned parking garages outside of development zone. Requires control of two City-owned parking garages not included in the RFP. The Mercer and 5th Ave garages account for more than two-thirds of the total Seattle Center parking garage capacity. Taxpayers will lose an estimated $140 million in revenue to the City over the 35 year lease (two?thirds of the $6 million generated by the three garages annually) SEATTLE PARTNERS AND OAK VIEW cpoup /1 cor/1w. mam; SOCIAL Seattle Partners has unparalleled experience working with unions and advancing women and minorities through its businesses. SEATTLE PARTNERS AEG has a robust Diversity policy, publishes an annual Diversity Inclusion Report and issues Diversity Recruiting Processes Guidelines to all its businesses. AEG's Diversity Inclusion practices are both internal and external, and will be applied to the Seattle Coliseum project. OVG Proposal includes no stated Diversity policy and no regular reporting on Diversity Inclusion performance. Supplier Diversity program provides opportunities to qualified small and diverse businesses services; program focuses on attracting certified minority-owned companies, U.S. veteran-owned businesses. and women-owned companies to compete for our business. Seattle Partners is a member of the National Gay and Lesbian Chamber of Commerce to ensure that we include certified owned businesses in our sourcing processes. No stated supplier diversity program Regularly exceeded diversity recruitment targets; commitment to a robust level of 14% women- and minority- owned businesses for the Seattle Coliseum, and Seattle Partners intends to exceed that goal as we have in other markets, including Los Angeles, Kansas City and Brooklyn No stated commitment to a diverse hiring goal; no track record of meeting or exceeding diversity goals Strong, cooperative relationships with local unions; outstanding track record with organized labor in Kansas City, Bakersfield (CA), Las Vegas, Los Angeles, Brooklyn (NY), Louisville, Oakland, Pittsburgh, Carson (CA), Minneapolis and San Diego No stated relationships or track record working with labor unions