The Cathedral is in the middle of a multi-year campus redevelopment plan, known as the CCRP: the Cathedral Campus Redevelopment Plan. Check this page often for the latest updates on the status of this exciting project that will beautify our campus, provide needed ministry space, and fund future ministry for the cathedral.
The CCRP project began in order to discern how to best steward the use of several cathedral properties. The two largest of those were the property located at Nutmeg and 5th, across from the Cathedral nave; and the property on Olive Street between 5th and 6th avenue, currently home to apartments and the Cathedral's administrative building and parking lot.
The Nutmeg parcel was sold in 2014 and the buyer is nearing completion of a condo development on that property.
The timeline for development of the Olive parcel is below.
The CCRP project also used funds from the sale of the Nutmeg property to develop much needed new bathrooms on both floors of the Great Hall in 2016. The plans for those bathrooms can be found here.
Updates on the CCRP are made periodically on the St. Paul's Blog. The latest updates are:
- November 27, 2017 from the Dean's Warden, Mark Lester
- September 6, 2017 from the Dean's Warden, Mark Lester
Watch this update, which took place during the Sunday morning Forum on October 12, 2017.
Timeline for Olive Parcel
St. Paul's Cathedral is abbreviated as SPC. An LLC is a Limited Liability Company; the Cathedral transferred the parcels of land sold to a separate LLC as described below.
1) 6/10/16 - Has the Purchase and Sale Agreement (PSA) between the LLC and Greystar been appropriately reviewed prior to signature?
Nutmeg and Olive LLC has worked with attorney Bob Frances, a specialist in real estate transactions, for many years on various phases of the CCRP. He successfully guided us on the agreement with ColRich for sale of the Nutmeg Parcel. He has been involved in the crafting and negotiation of the PSA with Greystar from its inception. In addition, Andrew Brooks, the Cathedral’s Chancellor, has reviewed the PSA in terms of specific sections that relate to SPC.
2) 6/10/16 - During Greystar’s development process period, what pitfalls might occur?
This is somewhat hard to envision short of a collapse of Greystar or a total collapse of the economy. The PSA is structured in such a way that makes withdrawing financially unattractive to Greystar; should they default, the LLC would be compensated.
3) 6/10/16 - It appears that transfer of ownership would not occur until the development process is concluded between Greystar and the city. Is this correct?
Yes. The PSA is a binding agreement to work together towards a mutually beneficial outcome, but does not transfer title of the properties. That happens only at closing (18-24 months after PSA signed).
4) 6/10/16 - If the City doesn’t approve some aspect of Greystar’s proposal for the project, what will happen, and how would that affect the agreement?
The LLC already has entitlements from the City for developing the property. These will be transferred to Greystar. Greystar, rather than the LLC, is responsible for obtaining City approvals for the specific design and density modifications it will make to the original plans. These will be subject to negotiation between the City and Greystar; however, the Cathedral retains the right to reject any plans that are deemed incompatible to it.
5) 6/10/16 - Will SPC receive the full amount of the purchase price upon close of escrow?
The LLC, as the legal seller, will receive the agreed purchase price upon close of escrow.
6) 6/10/16 - What space will the cathedral receive in the new building?
The LLC will receive 14,209 square feet of net useable space in the new structure (the current SPC Administration Building has about 5,000 sq. ft.) The LLC will also have 70 dedicated parking spaces for SPC use in the underground parking.
7) 6/10/16 - If something unforeseen occurs after transfer of ownership but prior to completion of the project, and Greystar decides to sell its interest in the property, what control would SPC/LLC have over a buyer, other uses of the land, etc.?
There are safeguards in the PSA for this sort of contingency, both monetary and in terms of the dedicated Cathedral space in the project.
8) 6/10/16 - What about the period between closing and the beginning of construction? Will SPC be required to pay rent for the Administration Building and parking lot?
Because title will have transferred, a lease agreement will be necessary. The PSA speaks to the terms of that lease: SPC will be responsible for maintenance and utilities, but there is no monthly rent.
9) 6/10/16 - Will the Cathedral lease or own the space in the new building?
The 14,209 square feet of space in the new structure will be owned as an office condominium by the LLC.
10) 6/10/16 - Will there be HOA or maintenance fees associated with the new space?
Yes. The PSA caps the monthly maintenance fee in perpetuity at no more than $3500.
11) 6/10/16 - How much input will the Cathedral have in the design for meeting and other group use areas in the new space?
The configuration of the new space is at the discretion of SPC/LLC; Greystar will configure the space according to our plan. However, should the cost of the improvements exceed the $710K earmarked for this purpose in the PSA, there would be an additional cost to the LLC.
12) 9/2/16 - We have in the Vision for Mission plan a good start on defining our needs from the new space. When will we be able to work on specifically defining how those objective translate into floor plans, square footage, furniture needs, plumbing requirements, and data needs for the new space?
Thank you for your question. It's good to know that ministry leaders are thinking ahead about how we will use our new and much expanded ministry space. As of early September 2016, the sale of the Olive parcel is very much a work in progress. The LLC is still negotiating final terms of the sale with our development partner. We expect to close out the due diligence period at the end of September, at which time the terms will be fixed and the earnest money locked in. At that point we will have a firm idea of the overall size and shape of the space we will occupy in the new building. Once we have that information we can start dreaming about how best to configure the space for mission and ministry. Early in 2017 we will be working out how to fit our current ministries into interim spaces during the construction phase, which we anticipate will begin in the last quarter of 2017. There will necessarily be a time when we will have less space than we do now, and we will temporarily have to make do in less than optimal circumstances. We anticipate that construction will take approximately two years, from late 2017 to early 2020. Thus, we will have ample time to discern and construct the internal configuration of the new space, as well as making plans for the best use of the existing space, once our staff have moved into the new building, freeing up the older space for renovation and repurposing in 2020.
13) 3/30/17 - How do the two LLCs support the ministries of the Cathedral?
Nutmeg and Olive LLC continues to transfer the net rental income from the Park Chateau apartment complex to the Cathedral’s operating budget. In addition, Nutmeg & Olive annually transfers 5% of the LLC funds that are invested with the Episcopal Church Foundation to the Cathedral. This 5% transfer of invested funds mirrors the draw the Cathedral makes on its enduring and reserve funds, also invested via ECF. In 2016, these transfers of rental and interest income from Nutmeg & Olive in support of Cathedral operations totaled $157,000.
14) 3/30/17 - How did Nutmeg & Olive LLC support the Great Hall Restroom Project?
In addition to the transfer of $157,000 in rents and investment income to St. Paul’s, Nutmeg & Olive also transferred $318,800 to the Cathedral in 2016 for the Great Hall Restroom Project. It is unlikely that the Cathedral would have been able to complete this project without impinging on operational expenses or launching a campaign had it not been for the LLC’s support.
15) 3/30/17 - Why did we do the Great Hall Restroom Project, and why did it cost so much?
The convergence of several factors led both Nutmeg & Olive and the Chapter to the conclusion that 2016 was the right time for remodeling the basement restrooms and for adding two new accessible, unisex facilities on the main floor of the Great Hall. First, there was a concern about our preparedness for the loss of four restrooms in the Administration building at the point it is demolished for construction of the Olive parcel project. Second, once the Administration building is gone, we would not have any handicapped-accessible restrooms at the Cathedral. And finally, we had received negative comments from a number of couples who were considering the Cathedral for their weddings, or other special events, about the outdated and inadequate facilities in the basement, especially the restrooms.
Several people have asked about the cost of this project, and this is a fair question. This was not a simple “home bathroom renovation” type of project. In addition to the complete renovation of the two basement restrooms, the project involved construction of two new unisex, fully accessible restrooms in a location that had not been considered for this purpose by the original architects of the Great Hall. Major demolition and structural work needed to be done; a new floor, as well as plumbing and electrical service, needed to be created. Given the age of the structure no one was surprised when we found we would need to do asbestos abatement. Two competitive bids were received, and based on these bids, a budget of $300,000 for the project was adopted by Nutmeg & Olive. The final cost overrun was 6%, and occurred in part because of an upgrade to the quality of tile used and several additions to the project scope. In addition, architectural fees were slightly underestimated.
16) 3/30/17 - Why did the Fifth & Laurel LLC sell its remaining condominium?
Mindful of the Vision for Mission report, the Chapter adopted a 2016 operating budget to increase the Cathedral’s investment in clergy and lay staff support for our vital ministries. Living into God’s abundance required a “leap of faith” on Chapter’s part to budget beyond the 2016 expectation for pledge, plate and investment income. $125,000 of Chapter reserves were drawn to balance the 2016 budget, with the anticipation that additional draws would be necessary for two more years.
In mid-2016, Cathedral treasurer Betsey Monsell approached Fifth & Laurel about selling the remaining LLC-held condo at Laurel Bay. This property was bequeathed to us with the understanding that it was to be used in support of the Cathedral’s operating budget. Due to its low yield, operating the condo as a rental property was not a good investment strategy for the LLC. Following discussion, the LLC agreed to the Cathedral’s request, and the condo was sold in Fall 2016. Approximately $370K was distributed to the Cathedral in early 2017 from this sale. The distribution of these proceeds from the LLC makes it possible for the Cathedral to preserve the Chapter reserve funds that might have been required during the remaining two years of the planned budget shortfall.
17) 3/30/17- Where does the development of the Olive Street parcel stand?
The process of developing this parcel, which will include new office, program space, and parking for the Cathedral, is complex, with various contractual thresholds and benchmarks. There have been delays and extensions to the originally negotiated timeline; the purchase and sale agreement has been amended five times. The LLC, with outstanding guidance and support from our consultant, Tom Delaney, has been able to increase our benefit from the sale agreement while simultaneously granting developer Greystar the timeline extensions it needs. Due to Greystar’s evolving design for the structure and the requisite amendments to the entitlements that Greystar must obtain from the City, it is unlikely that demolition/construction will begin before mid-2018, and possibly later, and will take about two years from start to completion.
18) 3/30/17- When will the St. Paul’s community be able to see design concepts for the project?
It is safe to say that the structure to be built on the Olive parcel will look different from the artist’s conception of the project which congregants saw when we supported the entitlement process at Uptown Planners and the City Council. The LLC, along with representatives of Chapter, have reviewed revised drawings of the project, and holds a contractual right of approval over general design elements. But the design continues to be fluid as Greystar explores ways to increase the square footage of the structure. Architectural drawings will be shared with the community when there is a more definitive version available, hopefully within the next few months.
The Cathedral Campus Redevelopment Project we are now seeing take shape is the culmination of years of planning and thoughtful work. The two newer LLC managers, Dean Penny Bridges and I (Mark Lester), are fortunate that three original managers of the LLC, Jack Lentz, Kendall Squires and Ken Tranbarger, continue their work today, almost 13 years after the formation of Nutmeg & Olive LLC. These three lions of our community have collectively devoted about 40 years of service to this project, which will benefit St. Paul’s Cathedral for generations.
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