Feasibility Report: Development of the Convention Center Property in South Boston
Executive Summary:
The development of the Convention Center Property in South Boston is a significant investment
opportunity that has the potential to generate considerable economic and social benefits. This
feasibility report aims to assess the feasibility of the proposed development by addressing some
critical questions regarding the project. The key issues evaluated in this report include the impact
of achieving preferred height and density, the importance of starting the project quickly, parking
standards, underground parking, and community acceptance. The report concludes that the
development of the Convention Center Property in South Boston is feasible, but certain
considerations must be taken into account to ensure its success.
Problem Statement:
The Convention Center Property in South Boston has been proposed for development. The
property is a significant investment opportunity with the potential to generate considerable
economic and social benefits. However, the feasibility of the development must be assessed to
ensure its success.
Project Business Requirement:
The proposed development must adhere to relevant policy and legislation. The development
must also consider the findings of an environmental scan to ensure that it is in line with similar
business problems or opportunities. The key parameters/constraints from relevant policy and
legislation, key references to the conceptual version of the Architecture Solution document, and
key points arising from the initial Concept of Operations document must be taken into account.
Assessment options:
The assessment of options involves the evaluation of the feasibility of various alternatives to
meet the project requirements. The following information w help in assessing the options for the
proposed development project:
1. Impact of Achieving Preferred Height and Density: The feasibility of the development
project depends on achieving the preferred height and density. If the preferred number of
stories and density cannot be achieved, adjustments would need to be made to the project
plan. Therefore, it is important to evaluate the feasibility of achieving the preferred height
and density and to assess the potential impact of any adjustments on the project's viability
and profitability.
2. Importance of Starting the Project Quickly: Starting the project quickly is important to
take advantage of market conditions and secure financing before interest rates rise or
market conditions change. However, it is also important to ensure that the necessary
permits and approvals are obtained before starting the project to avoid delays and
potential legal issues. Therefore, it is important to evaluate the market conditions and
competition and to ensure that the proposed development offers unique features or
advantages that set it apart from other developments in the area.
3. Parking Standards: Building half of the parking standard in the height and density
guidance could potentially make the proposal better. However, it is important to evaluate
the parking needs of the development and the surrounding area before making any
decisions about reducing the parking standard. Insufficient parking could lead to
decreased demand for the development and lower occupancy rates, which could impact
its profitability.
4. Underground Parking: Adding one level of underground parking to each building could
potentially make the proposal better. However, it is important to conduct a thorough cost-
benefit analysis to determine whether the benefits outweigh the costs. Adding
underground parking could increase the cost of the project, which could impact its
financial performance and make it less attractive to investors.
5. Community Acceptance: It is important to evaluate the local community's acceptance of
the proposed development project, particularly regarding the city planners' desire for
more affordable housing. Conducting a thorough community engagement plan can help
address community concerns and incorporate their input into the project plan, increasing
the development's chances of success.
The most significant factor considered in the development process is the location, and it is
important to consider the surrounding transit and neighborhood makeup. Three options are being
considered for the development process - shopping plazas, high-tech industries project combined
with the mall, and labs and office space.
To assess these options, land residual analysis can be used, which measures the value lost or
gained through various activities, such as development. The three cases should be integrated in-
between in order to maximize profits. It is essential to consider that building development is a
long-term activity that requires a well-laid-out plan, and early planning is a critical issue that
should be considered for the future management of the project.
For the project proposal of the convention center area's development, the focus will majorly be
on the height and density of the property, which will consist of shopping plazas, high-tech
industries project combined with the mall, and laboratories and office spaces. The proposed land
for this project is approximately 250,000 square feet and roughly 6 acres in total, and the
buildings should occupy 80% of the land, and the remaining 20% should be parking space. The
focus should be placed on the financial products the property aims to bring about, and developers
must create a structure with the optimal mix of height, density, and amenities.
Site A, which will consist of shopping plazas, will have a total floor space of 2.07 Acres, and the
building will consist of 3 stories, each 12 feet tall, with approximately 50 stalls. Site B, which
will serve as high-tech industries inclusive of the mall, should cover 1.15 Acres of land space in
the middle of the plot. The building here should consist of 3 stories, each 12 feet tall, and the
flying taxi landing pads project should be located on the top roof of the part of the B mall. Site C
should consist of labs and office space, and the office building should be about 10-20 floors and
open for rent to local companies. The first floor of the office building will be a large, well-
decorated hall with coffee or fast food commercials.
To assess the scale of these options, it is important to adhere to the local municipality's zoning
laws, and the size should be high enough to optimize rental income potential and allow for
adequate green space and public facilities. Developers must also consider the possibility of
additional income from retail and commercial tenants and the infrastructure and utility costs
required to complete the project.
Findings of the assessment:
1. Impact of Achieving Preferred Height and Density
The feasibility of the development would be affected if the preferred number of stories and
density cannot be achieved. If approvals for only 80% of the planned square footage are
obtained, adjustments would need to be made to the project plan. This could include reducing the
size of the building or changing the layout to accommodate the reduced square footage. The
number of blocks and their sizes may also need to be adjusted to fit within the approved square
footage. Additionally, the profitability of the project may be impacted, and the financial
projections would need to be revised accordingly. Overall, the success of the development would
depend on the ability to adapt to the changes and still deliver a viable project within the approved
parameters.
2. Importance of Starting the Project Quickly
Starting a project quickly is important as it allows the developer to take advantage of market
conditions and secure financing before interest rates rise or market conditions change. However,
it is also important to ensure that the necessary permits and approvals are obtained before
starting the project to avoid delays and potential legal issues. If other people started proposing or
building similar developments on nearby properties, it could have both positive and negative
impacts on the proposal. On the one hand, it could indicate that there is a demand for such
developments in the area, which could attract more investors and increase the value of the
property. On the other hand, it could also increase competition and potentially lead to
oversupply, which could negatively impact the profitability of the project. Therefore, it is
important to carefully consider the market conditions and competition before starting a project
and to ensure that the proposal offers unique features or advantages that set it apart from other
developments in the area.
3. Parking Standards
Building half of the parking standard in the height and density guidance could potentially make
the development proposal better, as it would reduce the amount of space dedicated to parking
and allow for more space to be used for revenue-generating purposes. However, it is important to
consider the potential impact on the project's feasibility and profitability. If the reduced parking
standard results in insufficient parking for tenants and visitors, it could lead to decreased demand
for the development and lower occupancy rates. Therefore, before making any decisions about
reducing the parking standard, it is important to conduct a thorough analysis of the parking needs
of the development and the surrounding area.
4. Underground Parking
If one level of parking could be added under each building without much premium cost, it could
potentially make the proposal better. This would allow for more parking to be provided without
taking up additional space on the site, which could increase the attractiveness of the development
to potential tenants and visitors. However, it is important to consider the potential impact on the
project's feasibility and profitability. Adding underground parking could increase the cost of the
project, which could impact the financial performance and make it less attractive to investors.
Therefore, before making any decisions about adding underground parking, it is important to
conduct a thorough cost-benefit analysis to determine whether the benefits outweigh the costs.
5. Community Acceptance
The proposed development may not align with the city planners' desire for more affordable
housing. There may be differences between what the city planners want and what the local
neighborhood wants. It is important to evaluate what parts of the proposal are liked and disliked
by the local community. A thorough community engagement plan should be in place to engage
local stakeholders in the project's planning and implementation process. This could involve
hosting community meetings, conducting surveys, and inviting feedback and suggestions from
local residents and business owners. Addressing community concerns and incorporating their
input into the project plan can help build support for the development and increase its chances of
success.
Risk Assessment of Viable Options:
When considering the viable options for the Convention Center property development, several
risks need to be assessed to ensure the success and sustainability of the project.
One of the primary risks to consider is the location of the property. While the Convention
Center's location in south Boston is convenient for travelers and business people, it may also
pose risks related to traffic congestion, limited access to public transportation, and high property
taxes. Developers should, therefore, conduct a thorough analysis of the location's potential risks
and develop strategies to mitigate them, such as investing in transportation infrastructure,
partnering with local government agencies, and exploring tax incentives and exemptions.
Another risk to consider is the financial viability of the project. Building a large-scale
commercial property such as a shopping plaza, high-tech industries project, and office and
laboratory spaces is a significant investment that requires substantial capital. Developers should,
therefore, conduct a feasibility study to assess the project's profitability and potential return on
investment, taking into account the market demand for the various amenities, rental rates, and
other operating costs.
Environmental risks also need to be assessed, especially for a large-scale development project.
The construction process and operation of the buildings can have a significant impact on the
environment, including air pollution, noise pollution, and waste disposal. Developers should,
therefore, take measures to minimize these impacts by adopting sustainable building practices,
investing in renewable energy sources, and implementing waste reduction and recycling
programs.
Lastly, there are risks related to project management, such as delays in construction, cost
overruns, and conflicts with contractors and subcontractors. Developers should, therefore,
develop a comprehensive project management plan that includes a timeline, budget, and risk
mitigation strategies. The plan should also include regular monitoring and reporting to ensure
that the project is progressing according to plan and any risks are identified and addressed
promptly.
In conclusion, assessing the risks associated with viable options is crucial to the success and
sustainability of the Convention Center property development project. By identifying potential
risks, analyzing their impact and likelihood, and developing mitigation strategies, developers can
minimize the project's risks and maximize its potential for success.
Recommended Options for Further Analysis:
The key findings of the option assessment indicate that achieving the preferred height and
density, starting the project quickly, and assessing community acceptance should be carried
forward into the analysis phase and the business case. These options are feasible and have the
potential to generate considerable economic and social benefits. However, they also carry certain
risks that must be mitigated to ensure the success of the development.
Based on the key findings of the option assessment, the recommended options for further
analysis are:
1. Preferred height and density: The option to achieve the preferred height and density of
the development should be further analyzed as it has the potential to maximize land use
efficiency and generate higher economic returns. However, this option also carries risks
such as increased traffic congestion, reduced privacy, and a potential negative impact on
the local community's aesthetic values. Mitigation measures could include optimizing
traffic flow, designing buildings to minimize overlooking, and engaging with the
community to address their concerns.
2. Quick project start: The option to begin the project quickly should also be further
analyzed as it has the potential to minimize delays and reduce project costs. However,
this option also carries risks such as reduced planning and stakeholder engagement time,
which could result in poor project outcomes. To mitigate these risks, it is recommended
to prioritize critical planning activities such as stakeholder engagement, risk assessment,
and mitigation planning, to ensure that the project is set up for success.
3. Community acceptance: The option to assess community acceptance should be further
analyzed as it has the potential to address community concerns and improve the project's
social acceptability. However, this option also carries risks such as potential delays if
community concerns are not addressed, or if the community opposes the development. To
mitigate these risks, it is recommended to engage with the community early and often,
actively listen to their concerns, and incorporate their feedback into project planning and
design.
Overall, these recommended options have the potential to create a successful and sustainable
development that balances economic and social benefits with potential risks. Careful analysis
and mitigation of the risks associated with each option will be crucial to ensuring project success.
