The National Park Service Department of the Interior

The National Park Service Department of the Interior Adaptive Re-use and Redevelopment through Public-Private Partnership Golden Gate National Recreation Area Aaron Roth, Acting Deputy Superintendent

Partnering “Mission Statement” The National Park Service Department of the Interior To enable the National Park Service mission by utilizing sound business and community engagement practices in developing and managing public-private partnerships. Concessioners Lessees Cooperators Permittees Agencies + Other --------------= PARK PARTNERS

The National Park Service Department of the Interior Trends in NPS Partnering • Demand drivers Ø Ø Demand Ø Greater reliance on partners to achieve mission – leveraging scarce resources Seeking relevancy, NPS is more inclusive resulting in more partner opportunities movement from protection to engagement Increased development and capability of the non-profit and private sectors • Complexity drivers Ø Ø Complexity Ø More authorities available for use More detailed, and often more restrictive policy frameworks, with increased internal scrutiny Increased development and sophistication of the non-profit sector

Partner portfolio The National Park Service Department of the Interior

Business Management Scope Total Number of Facility Based Partners: ~40 ~$85 M in Services and Programs The National Park Service Department of the Interior

NPS Leasing Law, Regulation, Policy Background The National Park Service Department of the Interior Ø Elements of Forts Mason, Baker, Presidio, Cronkhite, Barry transitioned from Army to NPS throughout the 1970’s all the way through 2005 Ø First adaptive re-use under Cooperative Agreements, Special Use Permits Ø NPS leasing authority for historic property provided by Section 207 of the National Historic Preservation Act Amendments of 1980 (16 U. S. C. § 470 h-3) Ø Section 802 of the National Parks Omnibus Management Act of 1998, Public Law 105 -391 (Nov. 13, 1998), General Leasing Authority The implementing regulations, 36 Code of Federal Regulations (“CFR”) Part 18 issued in 2002 Ø ü Requires competition for opportunities, unless non-profit organization will contribute to park purposes/programs ü Requires Fair Market Value rent paid, taking into account the use, and requires investment to justify the term Ø Ø DO-38 issued in 2006 giving the applicable Regional Director delegated authority part 17 and part 18 leases Reference Manual part 18 released in 2008 to guide NPS in planning and leasing real property

The National Park Service Department of the Interior Authorization Summary CONCESSION CONTRACT LEASE COOPERATIVE AGREEMENT SPECIAL USE PERMIT Director’s Order 48 38 20 53 Use or Program Necessary and Appropriate Commercial Visitor Services Appropriate Non-profit with public purpose, substantial involvement, and within legislated authority. Appropriate Maximum length (yrs. ) 20 60 with 1 year ext. ~25 with up to 5, 5 yr ext. 5 with 5 year ext. Compensation to NPS Fair Market - Probable Value of Opportunity. In Kind Fair Market Appraised Rent, In Kind Financial Assistance, In Kind Cost Recovery, In Kind No To non-profit in support of mission Yes, with rationale Yes Concessions Residences and non-concessions commercial operations Longer term non-profit partnerships or adjacent state agency (Cooperative Management Agreement) Shorter term nonprofit partnerships and miscellaneous Alcatraz Cruises Ferry Muir Woods Trading Company Surfer’s Grill Hostelling International The Cliff House GGNPC Fort Mason Center Fort Baker Lodge (Cavallo Point) Fort Mason Officer’s Club Louis Restaurant 4 Office Leases 24 Residences Marine Mammal Center Bay Area Discovery Museum Headlands Institute YMCA Point Bonita Headlands Arts Center Antenna Theatre Slide Ranch San Francisco Conv. Corp Home Away Homelessness San Francisco Unified Aim High Community Garden Coast Guard NOAA Exploratorium Miwok Stables Fellow Feathers Others… Ability to Sole Source Use at GGNRA to enable facility based partnerships Organizations Authorized

The National Park Service Department of the Interior Authorization Selection Flow Chart • For GGNRA Facility-Based Partnerships – which mean buildings and/or lands within the park are assigned for use. • Selection criteria shown are indicative only. Each authorization must meet additional criteria. For example, cooperative agreements require: legislative authority, substantial involvement, transfer of value, public purpose, etc. • NOT comprehensive. For example, Rights of Way, Easements, CUAs, CMAs, Cooperating Association Agreements, Interagency, and other authorizations that may be in use at the GGNRA are not shown due to limited applicability. Necessary Primarily Commercial Activity Visitor Services Not necessary / not for Visitors Appropriate Park Use and Supports Mission *concession contract not recommended if occupant investment is desired due to restrictive compensable interest provisions. Primarily noncommercial, nonprofit programoriented activity Other activity Longer-term, public purpose, involvement Shorter-term, group benefit Concession Contract* Lease Cooperative Agreement Special Use Permit or Other

The National Park Service Department of the Interior Golden Gate National Recreation Area Major Adaptively Reused Installations Fort Baker Forts Chronkhite and Barry Lower Fort Mason Presidio Upper Fort Mason

Fort Mason Center Port of Embarkation (1977 -Present) Property 11 Buildings, 300 K sq footage, large scale, NHL, warehouse, fill/pier Unifying Concept Use Waterfront Destination, experience the bay, Cultural exhibits, Performing Arts, and Event Center for San Francisco non-profits and its constituents Primary Objectives Site use, maintenance and rehabilitation, community destination Redevelopment Process 1977 to present. 2003 -5 effort to convert non-profit manager from operator to operator and developer. Lease Structure Complex Commercial Lease and Lease Disposition and Development Agreement (LDDA) with robust sub -tenant authority and flexible mixed use and event parameters. Operation and Maintenance Non-profit entity and subtenants. NPS responsible for seawall and pier substructures. Capital Improvements ~$20 M Complete, $20 M in progress, $100 M still needed. By Non Profit with NPS Oversight and $~12 M Direct Investment by NPS with $~30 M still needed. Interesting Elements Non profit sole source. “Phased Improvement Milestones” – means longer lease when ready to proceed with capital improvements. Rent not paid to NPS but submitted to capital improvement set-aside. Financing Earned Income, Debt, Tax Credits Return to NPS In-Kind Maintenance and Operation with modest base rent. The National Park Service Department of the Interior

Fort Mason Center Innovation Special-purpose not for profit organization. The National Park Service Department of the Interior

Fort Mason Center Innovation – Phased Leasing The National Park Service Department of the Interior • The FMC LDDA issues a series of smaller leases (phases) in the form of a master lease. • Achievement of each new lease phase is on FMF performance towards a scope of work. • There is a trade-off between rent vs. real property capital investment. • At the start of each new lease phase, the financial terms are recalculated and the trade-off re-determined.

The National Park Service Department of the Interior Fort Mason Center Innovation Rent Converted to Future Capital Improvements. Step Description Annual $(000) 1 Fair Market Value (FMV) Rent Projected $ 750 2 Amortized Capital Investment by FMF $ (280) 3 FMV Rent Base Rent Indicated $ 350 4 Phased Capital Improvement Account $ (320) 5 Token Rent due NPS $ 30 Notes Considering approved use, with entrepreneurial incentive $1 M over 5 years, plus interest, deducted 75% of the projected amounts For use towards future phases Escalates as projections increase

Forts Barry and Cronkhite (1980 -Present) Property 70 Buildings, 300 K square footage, rural location, proximate to resources. Unifying Concept Use NPS partnership programming, environmental education, affordable accommodations and conferencing. Primary Objectives Building maintenance and NPS education and outreach program goals. Redevelopment Process Incremental. Individual redevelopment with available buildings or campus. Joint Environmental Assessment and Cooperative Agreement processes for larger expansion efforts. Mostly sole source Lease Structure Individually negotiated Cooperative Agreements, Special Use Permits and Concession Contracts. Operation and Maintenance Non profit tenants. Capital Improvements ~$Varied investments by non Profits with NPS Oversight and Varied Investment by NPS in infrastructure and priority program expansions. Interesting Elements High profile partnerships (Marine Mammal Center, Headlands Center for Arts, YMCA Point Bonita, Headlands Institute, Home Away from Homelessness) Financing Philanthropy. , Earned Income Return to NPS Programming The National Park Service Department of the Interior

The National Park Service Department of the Interior Forts Barry/Cronkhite Innovation Cooperative Agreement Frameworks like a lease. Cooperative Agreement (for facility based partnership) Fundraising Construction Facility Programmatic Agreement Management Agreement (Optional) Program Definition, Objectives, and Delivery parameters Maintenance Planning and Execution Procedures and Standards Fundraising Requirements and Procedures >$1 M per DO-21 Construction Project Procedures >$1 M per DO-21 Scope and services Financial Assistance Term and Termination Reporting Indemnification and Insurance Non-discrimination Occupancy Provisions • Assignment • Sub-agreements • Utilities • Health and Safety • Env. Management • SDC • Minor Alterations • Hazmat

Upper Fort Mason Residential Program (1998 -Present) Property 24 Buildings, 80 K square footage, located in an urban park area, popular housing district with high rents. Unifying Concept Use A quiet community of housing for private citizens in excess park property. Primary Objectives Building maintenance and rehabilitation and Fort selfsustaining. Redevelopment Process Incremental build “roll-over” strategy, from 11 to 30 units. Lease Structure Simple residential leases Operation and Maintenance NPS responsible for all operations and maintenance. Procurement contract with a property management company to handle management issues and rehabilitation. Capital Improvements ~Varied Direct Investment by NPS as needed. Interesting Elements IDIQ property management procurement Financing Collected Rents Return to NPS Net Income – see statement. The National Park Service Department of the Interior

The National Park Service Department of the Interior Residential Leasing Innovation Self Funded Preservation and Growth Units 1998 99 00 01 02 03 04 05 06 07 08 09 10 11 12 11 14 20 20 24 24 28 28 28 29 30 32 35

The National Park Service Department of the Interior Fort Mason Residential Leasing Innovation Profitability Item Amount Percent Notes Operations Revenue $1750 Direct Expenses ($400) 23% Program Manager, Property Management, Repairs, Indirect Expenses ($500) 29% Project Management, Historic Architect, Compliance, Grounds Maintenance Administrative ($50) 3% Budget and Contracting Investment Component Renewal ($250) 14% New Units ($80) 5% Campus and Landscape ($40) 2% Free Cash Flow to Other Park Infrastructure: $430, or 25%

The National Park Service Department of the Interior Residential Leasing Innovation - Management Structure PWR and DOI SOL Form Lease Approval Lease Execution Lease Modification Business Management Budget Contracting Task Orders Leasing Matters • RFB • Rent Increase/Decrease • Eviction Rent Collection Property Management Contractor Property Matters • Repair needs • Improvements • Parking Resident Lessees (Tenants)

Presidio (1994 -Present) The National Park Service Department of the Interior

Presidio (1994 -Present) Property 5 Million Square Feet! Several main posts and developments, residential, commercial, historic forests, etc. Primary Objectives Financially self-sustaining mixed use and rehabilitation. Redevelopme nt Process Close coordination with Army in property transfer. Several Large scale Planning effort culminating in several GMPs/Environmental Impact Statement s, followed by a series of Request for Proposals and large construction programs. Special legislation separating into two portions, Area A (coastline) and Area B (redevelopment area). Special government corporation reporting to congress with redevelop authorities beyond NPS capabilities in the areas of fund retention, leasing, and other mechanisms. Separate entity, Presidio Trust manages the Presidio Area B. NPS assets transferred to Presidio Trust for redevelopment. Appropriation for Area B cease in 2013 (15 years), at which point Presidio Area B to be self sustaining through fair market value rentals. NPS role limited to Interpretation and some resource management oversight. The National Park Service Department of the Interior

Presidio Innovation Special Purpose Government Organization The National Park Service Department of the Interior

Fort Baker Redevelopment (2005 -Present) Property Characteristics ~60 Buildings, 400 K square foot, possible new development, spectacular location, historic Unifying Concept Use Sustainable Destination Lodge, Restaurant and Spa Primary Objectives Site rehabilitation with environmental message and program Redevelopment Process Close coordination with Army in property transfer. Formal Large scale Planning effort culminating in an Environmental Impact Statement , lawsuit settlement, and FONSI, followed by an Request for Proposals and large construction program. Lease Structure Complex Commercial Lease and Lease Disposition and Development Agreement (LDDA) and Cooperative Agreement with Institute non-profit component. Operation and Maintenance For -profit entity and in cooperation with special purpose non-profit. NPS responsible for certain utilities and Parade Ground. Some privatization to utility companies. Capital Improvements ~$100 M For Profit with NPS Oversight and $~20 M Direct Investment by NPS Interesting Elements A non-profit set-aside - 10% of room nights at the Government Per Diem - “Golden Gate Institute”, special legislation enabling room tax authority. DOD appropriations to enable NPS investment. Financing Commercial Equity, Debt, Tax Credits Return to NPS Improvements plus Base Rent plus Percent Rent The National Park Service Department of the Interior

Fort Baker Lease Innovation – LDDA and Lease The National Park Service Department of the Interior Lease Disposition and Development Agreement (LDDA) Programmatic Agreement (Optional) Program Definition, Objectives, and Delivery parameters Facility Fundraising Construction Management Agreement (Maintenance) (Optional) Agreement Maintenance Planning and Execution Procedures and Standards Fundraising Requirements and Procedures Construction Project Procedures and Investment Milestones

Fort Baker Innovations The National Park Service Department of the Interior A Commercial Operation with a portion dedicated to a broader purpose.

The National Park Service Department of the Interior Organizational Capabilities Revenue and Cost Sharing Management MANAGEMENT DEVELOPMENT • Visitor and Program Experience (Program, Rates, Marketing) • Shared vision and goals • Strategy and planning (Cultural, Natural, Safety, Public Health Accessibility) • Asset Management • Invoicing and Receivables • Writing and execution (Environmental, Fire, Maintenance) • Rent and Fee Analysis • Coordination and Relationship • Financial Reporting Communications, operational integration, issue resolution) • Expenditure Planning • Branding and Marketing • Negotiation and Term agreement • Follow-up and Implementation • Operations Compliance • Project Tracking (Physical, press, web) EFFECTIVE Partnering ORGANIZATION Incentives, Culture, Communications and Teamwork , Information Systems and Records.

The National Park Service Department of the Interior Target Organization Chief, Business Management Supervisory Business Manager GS-14 (Perm) Revenue Management Revenue Manager Financial Analyst -1160 GS-11 (Term) Management Partner Manager Concessions Specialist - 1101 ONPS GS-9 (Perm) Partner Manager Business Analyst - 1101 CFF GS-11 (Term) Partner/Permit Manager Concessions Specialist - 1101 CFF GS-7 (Perm STF) Public Health Officer Environmental Health Specialist CFF GS-9 Development Realty and Lands Partner Developer Business Analyst-1101 ONPS GS-12 (Perm) Realty Manager Realty Specialist - 1170 ONPS GS-12 (Perm) Partner Developer Business Analyst -1101 CFF GS-12 (Perm) Leasing Specialist Realty Specialist - 1170 Leasing GS-11 (Term) Real Estate Project Manager Realty Specialist - 1170 Leasing GS-12 (Term)

Redevelopment Implementation Teams Legal and Financial Historical Architect Real Estate Project Manager Construction / Engineering Planning The National Park Service Department of the Interior

Accomplishments and Successes The National Park Service Department of the Interior • Adaptively reused vacant buildings with no other NPS use, preventing rapid deterioration or vandalism • Rehabilitated and maintained culturally significant historic structures, landscape and infrastructure, reducing reliance on appropriations • Support the Park’s general operations of Fort Mason, Baker and other park areas with effective and cohesive use concepts • Provide unique experiences available to Park visitors but also engaging the local community • More effectively achieved NPS mission, providing for enjoyment while protecting resources

Leveraging Appropriated Dollars • Approximately onethird of the total services, programs and activity within Golden Gate National Recreation Area is supported by appropriated. • Two thirds are leveraged. The National Park Service Department of the Interior

Brian’s 21 Partnering Success Factors The National Park Service Department of the Interior • ADOPT A SHARED VISION • LEAVE YOUR EGO AND CONTROL AT THE DOOR • UNDERSTAND EACH PARTNER’S MISSION AND ORGANIZATIONAL CULTURE • FIND WAYS THROUGH THE RED TAPE • BUILD STEP BY STEP • HONOR YOUR COMMITMENTS • PUT MECHANISMS IN PLACE TO RE-ENFORCE THE PARTNERSHIP It all boils down to how deliberate and strategic you and your partners are in building a “partnership culture” that incorporates these success factors and the commitments you are willing to make. Understand adapt success behaviors, develop competencies for these behaviors to be regularly practiced, and align your partnership to succeed.