681 Florida St Considerations for multitenant arts use What is - PowerPoint PPT Presentation

681 Florida St Considerations for multitenant arts use

What is Nonprofit Shared Space?

2+ organizations at a physical site Reduced cost Often Sometimes to Below market and/or higher distinguished centralize a set or stabilized quality shared by intentional of human rents services & collaboration services amenities

Co-location Intentional clustering of organizations. Composed of multiple (2+) primarily nonprofit tenant organizations, can be mixed with retail, housing, offices. Service Theme Center Center Community Hubs 23% 32% Includes community programming and services, not just for building tenants. Typically includes accessible / public community space or common areas for formal & unstructured programming. Multi- Sector Coworking 45% Sharing of workspace among freelancers and independent workers and small organizations. Membership based, charged by the hour, hot desking/hotelling Data from the Nonprofit Centers Network

Benefits of Nonprofit Centers In 2011, the Nonprofit Centers Network conducted an assessment of organizations sharing facilities in the US and Canada. The study found a very broad range of benefits associated with centers including: Organizational Organizational Community Efficiencies Effectiveness Infrastructure Reduced New Increased and/or community organizational stabilized spaces/ capacity rents services Reduced costs by Increased IT Better sharing capacity location services Recruit and Capacity Increased Retain top building knowledge talent assets

Common Shared Amenities Conference Rooms/ Common Copy/ Phone Booths Kitchen Mail room Common Shower/Locker Bike Lounge Facilities Parking

Shared Amenities Considerations Reservations/ Cleaning/ Bookings Maintenance Billing/ Stocking/ Usage Management

Common Shared Services Internet Phone Reception IT Services Bookkeeping Human Resources

Shared Services Considerations Policies & Additional procedures to administration manage staff & expertise Billing/ Technical Usage Support Issues

Tides Thoreau Center

Ninth Street Center for Independent Media

Ed Roberts Campus

How is Nonprofit Shared Space developed?

Engaged Board Development Funding Who in your Partners Partners network would want to see this Mission project succeed? Driven Space Map your potential Potential Community co-owners Stakeholders partners. Potential Government Tenants Nonprofit Centers Network

Project Management Feasibility & Real Estate Facility Site Pre- Build Out Readiness Strategic Identification Development Planning Before Space is Assemble After Space is Secure Team Secure

Who Helps + When Construction Real Estate Facility Strategic Feasibility + Pre- Readiness Planning Acquisition Development Build Out Real Estate Committee Financial Consultant Real Estate Consultant Project Manager Broker Architect Capital Campaign Consultant Lawyer(s) Engineer General Contractor Environmental Consultant

Partner Roles Co- Board Tenants Co-owners founders members Low Control & Risk High Nonprofit Centers Network

Real Estate Readiness Organizational Staff & Board Financial Capacity Capacity Capacity Stable & Has a clear experienced Debt capacity Mission & Vision leadership team Solid Board Fundraising/ commitment to strategic/business capital campaign plan real estate project capacity Not in a period of Staff capacity to Reserves/ oversee/manage a organizational Assets rethink real estate project

Real Estate Readiness Financial Capacity Surplus Net Operating Income (NOI) for 3 Years Budget by program & quarter • Debt capacity Revenue leverage & risk • Donor Capacity • Fundraising enhances capital campaign Fundraising/ Capital campaign stresses fundraising capital campaign • capacity A Strong Balance Sheet = Choices • Reserves Reserves/ • Current ratio 3:1 Assets Liquidity • Net Assets •

Some Model of Master Shared Risk Lease A A A org org B C Owner: Owner: Public, Nonprofit Public, Nonprofit Sub- Sub- B B D or Commercial or Commercial Leases Leases org org org Master: C C E ABC Org [NEW] A org org org Master Lessor org Nonprofit Centers Network

Hard Costs Soft Costs Uses Staffing Marketing & Leasing Start-up FF&E Operations Sources Debt Reserves/Cash Grants Bonds Capital Campaign Tax credits

How is Nonprofit Shared Space operated?

Revenue/Expense  Rent  Rent  Leasing/Marketing  Common Area Maintenance Expense  Other charges: phone,  Facility Management internet, other fees  Utilities  Membership, co-working $ $ fees  Maintenance & Repair  Events, conference room  Security rentals  T axes & Insurance  Storage  Administrative Expense  Reserves  Program Staff  Depreciation

Some Model of Master Shared Risk Lease A A A org org B C Owner: Owner: Public, Nonprofit Public, Nonprofit Sub- Sub- B B D or Commercial or Commercial Leases Leases org org org Master: C C E ABC Org [NEW] A org org org Master Lessor org Master (A) takes on new operating program (building) A, B and C output one-time resources to form ABC org, then no change with associated revenues, expenses, risks & gains ABC org takes on new operating program No change to B or C (building) with associated revenues, Nonprofit Centers Network expenses, risks & gains

Management Considerations  Who staffs?  Who programs?  Who operates facility?  Who leases?  Internal or external property management? Nonprofit Centers Network

Nonprofit Center Governance Budget Tenant Selection Directors/ Tenant Community Advisory Board Tenant Co-owners Surveys Meetings Committee Members Council Operations Programming Low Control & Risk High Nonprofit Centers Network

Q & A