Book 1 - City of St. Petersburg

OPERATING EXPENSE AND
MAINTENANCE ESTIMATES
This section is intended to provide insight into the anticipated
operating costs, revenue potential, and resulting subsidies
required to operate the new Pier. Based on the escalation of
operating costs and compression of revenues at the current
Pier over the last 10 years, the new Pier’s operating costs and
beneficial design efficiencies have been carefully considered.
While full estimates are included in Appendix N, It is important
to note that the information provided in this section as well as in
the Appendix is intended to provide a rough order of magnitude
in terms of anticipated costs. Major considerations for the
project and estimate presented here include:
• The opportunity for sustainable design and conservation
measures to inform the design and reduce energy use.
• A forty percent reduction in overwater footprint
between the existing and new Piers, thereby reducing
operating expenses
• Reduced tenant and common area square footage
means less unrecovered maintenance and operating
costs.
• Encased utilities assure safer, lower maintenance
operations for all common utilities.
• While the new Pier is fully ADA compliant and trolley
capable, visitor vehicles will not be allowed, resulting
in lower maintenance and substantial improvement to
environmental conditions, both above the surface of
the water as well as in the bay, where toxic runoff will no
longer have an impact. The new Pier provides activities
and engagement for pedestrians, cyclists and all other
patrons along its journey, looking to the future while
simultaneously taking a cue from our pedestrian pier
past.
• A larger restaurant space is to be land-based, reducing
both short term construction costs and long term
operating costs (for both tenant based and common
area-unrecoverable based).
• The new Pier will still require a certain level of security
and a trolley service, both of which are existing
expenses.
Future revenues from the new Pier have great positive potential.
Baseline revenues from typical leasing opportunities include
restaurant and retail spaces. These revenues are supplemented
by very conservative estimates from special event revenues and
fees at the iconic Lens structure, such as wedding receptions,
special events and parties. While these revenues, along with
standard commercial revenues, have been conservatively
estimated, it is important to recognize the upside potential to
grow these figures.
MICHAEL MALTZAN ARCHITECTURE, INC. 7 - 1