King Edward Hotel - Status Report

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King Edward Hotel Redevelopment And Standard
Life Building Renovation
King Edward Hotel Revitalization Company LLC
September 23, 2008
Status Report
CONFIDENTIAL
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David Watkins

• President, Watkins Development LLC
• Principal, Watkins Young PLLC

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PARTIES INVOLVED IN THE PROJECT

• Development Partners
• HRI Properties (New Orleans)
• David Watkins (Jackson)
• Deuce McAllister (Jackson)
• Leroy Walker (Jackson) (Standard Life only)

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PROJECT COSTS

• Total Development 123 million
• King Edward 89 million
• Standard Life 34 million
• King Edward Project contractor is Clayco, Inc., a
  nationally-known, design-build construction firm
  using local subcontractors for all work on
  project
• Standard Life contractor is White Construction

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PROPOSED USES OF THE PROPERTY

• Mixed-use Residential, Hotel and Retail with
  associated parking
• Residential
• Top 4 floors of the King Edward Hotel building
• Approximately 56 Units 1 BR and 2 BR
• Floors 3-18 of Standard Life Building
• Approximately 64 units 1 BR and 2 BR
• Potential of 12 additional units as alternate use
  of Annex buildings
• Hotel King Edward
• Hilton Gardens Inn flag with 186 rooms on floors
  3 through 8
• Conference facilities located on the second floor
• Hilton Evolution (luxury) FFE package for
  urban hotels (plasma TVs, etc)
• Signature Bar and Restaurant
• 2 swimming pools (one in basement one on rooftop)

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PROPOSED USES OF THE PROPERTY

• Retail
• Approximately 3,000 square feet in KE and 3,400
  in Standard Life
• Coffee shop and gift shop currently proposed in
  King Edward
• Signature restaurant and bar in lobby of KE
• Parking
• renovation of existing garage use of Standard
  Life parking lot with possible expansion for low
  level parking garage
• Greenspace
• Interior courtyard with connected
  terraced/landscaped valet entrance from Capitol
  Street, additional exits at Roach and Pearl
  Streets

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Economic Impact of Developments

• Creates large number of new jobs
• Generates substantial new school taxes, income
  taxes and sales taxes
• Provides badly needed downtown living for new
  Jacksonians

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Economic Impact of Developments

• Key to removal of blight and stagnation in
  downtown Jackson area
• Redevelopment of Standard Life is a vital
  component to assuring success of King Edward
  project
• Overall development is important to create the
  critical mass needed to make the downtown
  development in the block viable and sustainable

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King Edward Standard Life Direct 10-Year Fiscal
and Economic Impact
Private Investment 114.7 million
Economic Impact 343.9 million
Increased Personal Income 146.8 million
New Full Time Jobs created 293
Increased School Taxes 4.7 million
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King EdwardHotel
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Why the King Edward?

• Symbolic of revitalization of downtown Jackson
• Strategic importance to master development plan
  for City
• Historic significance gives market value for
  restoration which a new structure on site would
  not have

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King Edward Hotel
Capitol Street View
Summer, 2009
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PHYSICAL REDEVELOPMENT PLAN
Site Plan
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PHYSICAL REDEVELOPMENT PLAN

• First Floor
• Lobby
• Registration
• Restaurant
• Bar
• Coffee shop
• Gift shop

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PHYSICAL REDEVELOPMENT PLAN

• Second Floor
• Meeting rooms
• Grand Ballroom
• mezzanine/balcony . reopened

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PHYSICAL REDEVELOPMENT PLAN
Typical Hotel Floor Plan Floors 3-8
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PHYSICAL REDEVELOPMENT PLAN
Typical Apartment Floor Plan Floors 9-12
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PHYSICAL REDEVELOPMENT PLAN

• Rooftop Patio
• Pool
• Fitness Center
• Entertainment . Area

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Mill Street Farmers Market, Art Galleries and
Sidewalk Coffee Shop
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MILL STREET VIADUCT IMPROVEMENT MARKET
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Farmers Market Cafe
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Standard Life
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Action by City Council

• This was NOT a loan by the City to Developers
• JRA approved a deferral of 900,000 of the of the
  1,000,000 purchase price
• Generally routine and minor deal point
• However, JRA had given loan on property from
  Trustmark and the bank required City to back the
  loan
• Thus, JRA, Trustmark and City all had to approve
  the simple deferral of the payment

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Standard Life Apartments Master Site Plan
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Standard Life Apartments Typical Floor Plan
(Floors 3 12)
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Standard Life Apartments 17th Floor Plan
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Project Vision and Development Concept
Standard Life Annex Buildings (Roach
Street) Retail/Restaurant or conversion to double
apartments (12)
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Standard Life Apartments Rendering of
Apartment Interior 1
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Standard Life Apartments Rendering of
Apartment Interior 2
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Standard Life Redevelopment Status 9/23/2008

• Work has begun on the Standard Life the
  interior demolition will begin in October with
  reconstruction shortly thereafter.
• The project will be completed in December, 2009.
• Plans have been refined to create 76 apartments
  unit including 50 1-bedroom units, 26 2-bedroom
  units and 2,600 square feet of ground floor
  retail.

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Development Timetable

• November, 2007 Phase II redevelopment
  construction of King Edward commenced
• March 11 King Edward financial closing
• Jan-May
• Standard Life design work
• Part 2 application,
• selection of contractor
• financial closing

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Development Timetable

• September, 2008 Standard Life to be begin
• September, 2009 King Edward construction
  completion project grand opening
• December, 2009 Standard Life completion

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Capital Street Retail Development
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Capital Street Retail Development

• Development of properties near King Edward to
  enhance 24-7 living at King Edward and to augment
  the Farish Street entertainment development

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Capitol Street Buildings
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Capital Street Development Options

• General commercial development
• Retail space
• Restaurants, coffee shops
• Clubs, bars, pubs
• Boutiques
• Specialty shops
• Business Incubator Project (Downtown Partners)

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Farish Street Entertainment District
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Farish Street Plan
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Farish Street
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Farish Street Plan
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Farish Street

• Entertainment, historic, tourist, cultural venue
• Vision and Scope of project expanded
• Emphasis on Culture, Music, Food and
• TELLING THE STORY OF JACKSON MISSISSIPPI!
• Note Beale Street in Memphis took twenty years
  to develop

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PROJECT SUMMARY

• Total Development Costs 52.5 million
• New Jobs Created 680
• Ten Year Revenue Impact 200 million
• Projected Timetable
• Commence Construction 90 days
• Complete Construction of first block 12-16
  months
• Complete Construction of second block 2010