The City of Cedar Park contracted IPG to deliver a development program and financing feasibility study to Cedar Park Texas’ Economic Development Corporation for a 250,000 square- foot research park on a 13-acre property, an initiative that would put them at the leading edge of technology and innovation.
IPG Services Provided
- Development Feasibility Study
- Development Services
The IPG development team analyzed the project’s preliminary construction cost, established a future marketing program, and conducted preliminary site analytics and initial schematic design concepts for the research park.
Per the client’s request, IPG also drafted a business plan for a proposed Science, Technology, Engineering, and Mathematics (STEM)-based Educational Center.
Assignment & Process
- Cedar Park requested the preliminary development feasibility analysis with the intention of gaining market share in the economically powerful industries of life sciences and energy innovation.
- Knowing that a modern global society must FUEL (bio-fuels, alternative energy), FEED (agricultural research), and HEAL (biotechnology and pharmaceuticals) the world’s population, Cedar Park would, with the establishment of an innovation center, be on the forefront of emergent need and production in those areas.
- We started with an assessment of the project’s competitive strengths, opportunities, and challenges facing Cedar Park, and a characterization of the external environment (changing economic conditions, funding trajectories, technology developments, and so on) that would affect existing businesses and generate new opportunities.
- The overall development program and feasibility study were deemed necessary for the establishment of a viable research park in Cedar Park. The consulting phase was designed to lead the team from vision to a realistic plan that would be ready for financing and development.
With these objectives in mind, IPG delivered the following to the client:
- Pre-Development and Development Concepts
- Market Assessment
- Creative Construction Estimates
- Financing And Overall Capitalization Ideas/Strategies
- Development Plan (Typography, Core Components, Phases)
- Architectural Plan (Site Plan, Massing Studies, Final Schematics)
- Marketing Program
- Financial and subsidy modeling, comprising:
- Traditional debt and equity financing
- Tax increment financing (TIF) with redevelopment agencies
- PILOT (payment in lieu of taxes) programs
- New Markets Tax Credits and EB-5 Assessment
- Environmental tax credits for energy efficiency and other “green” programs
- Cross-subsidy projects (revenues from one to partially subsidize another)
By the end of the study, it was clear Cedar Park had the opportunity to deliver a 200,000-to- 250,000-square-foot, centrally located, affordable innovation hub that would build new bridges between world-class Central Texas research universities and the private sector.
The research park would also fortify efforts to attract interest from major companies and organizations to Cedar Park.
Development costs needed to be subsidized to support rental rates that would be attractive for users. The recommended first step was to deliver an affordable expansion package to the anchor tenant, locally-based Mystic Pharmaceuticals, from their existing antiquated manufacturing space. Securing this anchor tenancy allowed Cedar Park to achieve early success in the development of its research park, positioning Cedar Park as a true innovation-based community with a high quality of life for future Cedar Park researchers and their families.