Pelshaw Group Inc dba THE HUB BUSINESS & TRAINING CENTER: The Hub Business & Training Center

ID

177

OrgName

Pelshaw Group Inc dba THE HUB BUSINESS & TRAINING CENTER

PhysicalAddress

1301 Nicholas Street Suite 205, Omaha NE 68102

MailingAddress

8001 Wildewood Drive, Omaha NE 68127

Website

www.thehubcenter.org

SocialMediaAccounts

Name

Bob Pelshaw

Title

Project Manager and Developer

EmailAddress

bob@pelshawgroup.com

Phone

+1 (402) 401-9523

Team

Yes

TeamExplanation

Project Architect – Steven Shogrin AIA Project Manager & Developer – Pelshaw Group Inc. has 30 years’ experience as a commercial real estate developer Spencer Management LLC is a successful regional minority owned general contractor located in a QCT Lawrence Butler PE is a minority civil engineer located in a QCT LaVon Stennis Williams of Reconnect Inc. has operated a successful job training program for years and will provide Job Training through the proposed Industrial Training Center in this Project

OrganizationalChart

OtherCompletedProjects

Steven L. Shogrin, AIA is a respected architect with over 30 years successful experience in industrial, commercial, multi-family, historic, medical, and institutional projects. Developer – Bob Pelshaw 30 years’ experience as a commercial real estate developer 2001 Acquired and did a historic renovation of the South Omaha City Hall received Historic Tax Credits 2001-05 Acquired and redeveloped the former Sutherlands Lumber into Sutherlands Plaza , received over $2.1mm in TIF 2001-05 Did site acquisitions for (14) new Walgreens stores in Nebraska & Iowa 2001-2009 Developed, owned, and sold (6) new construction Dollar General Stores (9800 SF each) using over $600k in TIF 2001-2009 Acquired property & redeveloped into (7) Dollar General Stores I owned and sold using $300k in TIF 2005 – 2009 Developed, owned, and sold (4) new construction Orscheln Farm & Home Stores (35k SF each) using $750k in TIF 2007 – 2010 Developed, owned, and sold (17) new construction Pamida Stores (35k SF each) using $1mm in TIF 2005 - 2012 Worked as fee-based developer for the $18mm HyVee anchored development Plattsmouth Plaza and received $2.3mm in TIF 2014 Obtained $380,000 in TIF for Dan Williams Tighton Distribution Center, Carter Lake IA 2014 – 2015 Obtained $460k in TIF for new apartments at 35th & Dodge for John Caniglia 2020 Helped secure TIF and CDBG funds for Ames Industrial Park LLC Spencer Management LLC is a successful regional general contractor with successful experience with hundreds of millions of dollars in regional construction and economic development projects. Lawrence Butler PE has successfully performed over a billion dollars of complex civil engineering projects ranging from new construction to neighborhood renewal. LaVon Stennis Williams of Reconnect Inc. through their construction job training program has successfully trained hundreds of disadvantaged people living in QCTs to be able to work new jobs in the construction field

ProposalTitle

The Hub Business & Training Center

TotalBudget

13205768.0

LB1024GrantFundingRequest

10386017.0

ProposalType

Combination of capital project and service/program

BriefProposalSummary

THE HUB is a proposed small business hub and training center serving covid-impacted and disadvantaged individuals and businesses; specifically supporting and training subcontractors, construction trades, consultants, makers, artists, and self-employed people to grow their businesses and create jobs. Using the successful model of the Hot Shops THE HUB proposes to redevelop 1920 Dorcas into at least 100 separate rental bays used by member subcontractors, businesses, makers, and artists. Bays will range from 100-5,000 SF +/- with flexibility to upsize or downsize space. There is ample parking and outdoor storage space. THE HUB will provide: - Administrative support (mail & logistical support, bookkeeping, operations support, social media support, graphic design). - Industrial Training Center - Tools and equipment to loan/rent: trailers, ladders, scaffolding, lift, concrete tools, metalworking and woodworking tools, welders, stone and tile tools, 3-D printer, plan plotters and printers, and more. - Staging space - Wood and metal workshops - Flex storage inside - Meeting rooms - Photo/video/audio studio - Printing and shipping center - Breakroom - Gallery to sell member’s wares - Mentoring - Estimating Services - Advertising and promotion - Monthly breakfast networking and training events. - One-on-one business coaching and mentoring. - On site U-haul truck rental service - COMMUNITY. THE HUB has partnered with Reconnect Success Inc to provide construction job training. Unions and private companies can use the training facility to aid in recruiting and training workers for new construction jobs. Those trained can then be hired by companies in THE HUB, or by private companies we partner with such as McCarthy & Weitz. The Hub Gallery supports job creation and will sell wares of HUB members. THE HUB will be an ongoing source of new jobs, projected to be a minimum of 350 new jobs within the 5-year program period, and operational within 18 months of the grant allocation. Job creation will be tracked through the Training Center attendees, and annual reporting required by businesses operating out of the shops and/or offices of the HUB.

Timeline

Land Acquisition - after grant funding, complete by March-23 Soil & Concrete Testing complete by March-23 Preliminary design complete by March-23 Site Survey complete by March-23 Soil Borings complete by March-23 Architectural & Engineering Design complete by June-23 Review Construction Documents complete by Jul-23 Public Bidding of Construction Costs (GC & Subcontractors) complete by Jul-23 review & award bids complete by Aug-23 Construction of Project start in September-23 complete by April-24 Order specialty equipment, finishes, and furnishings September-23 Site Preparation complete by October-23 Utility work complete by October-23 Sidewalks and paving complete by November-23 Interior Finishes complete by April-24 Furnishings & Equipment complete by April-24 Signage complete by May-24 Punchlist items complete by May-24 Final Occupancy Inspection May 24 Launch THE HUB MAY 2024!

PercentageCompletedByJuly2025

1.0

FundingGoals

Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)

Community Needs

Other Infrastructure (i.e., develop or improve broadband, business districts, roadways, sewer, etc.) Quality of Life (i.e., create or enhance natural spaces, mixed uses, parks, safety, etc.) Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)

OtherExplanation

ProposalDescriptionAndNeedsAlignment

The Hub Business and Training Center Project addresses community needs by providing modern industrial, commercial, and office space for South Omaha’s entrepreneurs to locate, operate, and grow their businesses from. It transforms and underutilized industrial asset and will help support economic growth and spur redevelopment in South Omaha. Moving small businesses from garages and yards to The Hub improves the aesthetic and the community’s overall quality of life. It’s not just about real estate, The Hub will provide members that want it full logistical, administrative, bookkeeping, marketing, image, and social media support, as well as secure outdoor storage, staging space, flex storage space, a printing and shipping center, tools and equipment, and fully equipped woodworking metal working shops.

VisioningWorkshopFindingsAlignment

Because of a lack of modern commercial and industrial buildings serving small businesses many of these business owners make do and try to run their businesses from their garage, yard, or storage shed. This will strongly impact and diversify the South Omaha economy by allowing existing small businesses the room to grow their business, increase revenues and quality of life, and hire more staff, while improving their home neighborhoods by not operating shops and construction companies from their garages and overstuffed yards. The site is an underutilized industrial building and yard closely located to South Omaha’s strong workforce and entrepreneurs. Using the successful model of the Hot Shops, the Applicant seeks to improve the site and transform what was an underutilized facility into a beautiful, modern business hub and training center providing opportunity for South Omaha entrepreneurs to move from their garages and yards into space that will accelerate their revenue and employment growth. South Omaha has a long history of a strong work force and hard-working business owners. This project also supports investment in the community by creating desperately needed affordable commercial and industrial space and outside storage for South Omaha small businesses to operate and grow, creates at least 3 new Latina owned business to start, an Industrial Training Center, plus over 350 projected jobs over the Program Period.

PrioritiesAlignment

The Hub Business & Training Center transforms and fundamentally change an underutilized industrial building and site. Due to the high demand and scarcity of commercial and industrial space in South Omaha the Project will be sustainable and will create long-lasting economic growth by supporting the businesses that will be members of The Hub. The Project will transform, fundamentally change, and have long-lasting economic impact in the lives of the 250 Industrial Training Center participants we expect to train over the 5-year program.

EconomicImpact

What is the anticipated job creation and wages associated with your proposal (temporary and permanent)? create 60 temporary jobs, 350 permanent jobs, 250 of them coming from graduates of the Industrial Training Program.

EconomicImpactPermanentJobsCreated

350

EconomicImpactTemporaryJobsCreated

60

EconomicImpactWageLevels

Of the 350 jobs created, 342 are in the construction trades which are high-paying in demand jobs. Of the other 8 jobs created, the pay ranges from $35,000/year to $70,000/year.

EconomicImpactAlignProposedJobs

Our bilingual staff will actively work to connect graduates from our Jobs Training Program with members who might need to hire new employees. We've established partnerships with McCarthy Building Group and Weitz Construction to refer training program graduates to them for hire, and to let our members know about bidding opportunities with them. We will maintain subscriptions to all plan rooms and bid boards in the Metro and notify our members or bidding opportunities. We will partner with many non-profits in all QCTs to recruit candidates for the job training program, and to connect our members with projects and new business.

CommunityBenefit

The Project will not only transform an underutilized industrial property, it will transform and fundamentally change the trajectories of the covid-impacted small businesses from QCTs that will benefit from the facilities, programs, and amenities of the HUB. The Hub is located across the street from Lynch Park, and users of the park and surrounding neighbors will benefit from the improvements and use of the Project site. The surround QCTs will be positively impacted from the vibrancy this Project will create in the economy and business activity in South Omaha and the Near Downtown neighborhoods which are QCTs.

CommunityBenefitSustainability

This Project will ignite the spark of business growth for covid-impacted South Omaha businesses operating from inadequate or substandard space, causing significant economic impact and sustainability in South Omaha from the 60 temporary and 350 new jobs this Project creates and the increased business revenues this Project supports. This Project will provide sustainable services and economic impact in an underserved and depressed area highly impacted from covid.

BestPracticesInnovation

Omaha lacks a modern business and training center serving small businesses and small contractors with cutting edge amenities and support that usually only big companies can afford. The co-warehousing concept, and tool sharing concepts, are used nationally but relatively new to Omaha, and should have dynamic reception and impact for the members of the Hub.

OutcomeMeasurement

Improved job training, increased revenues of members, and creation of new high-wage jobs.

OutcomeMeasurementHow

We could measure the high-wage job opportunities with required annual reporting from our members documenting their new hires with their 941 reports and tax returns, and Reconnect Inc can document and track jobs created for their Training Program graduates.

OutcomeMeasurementCoinvestment

An improvement of this magnitude is bound to build momentum and create additional redevelopment in the surrounding neighborhood. Graduates of our training program could eventually open their own businesses, hiring more employees. We expect our member businesses will be able to expand their businesses and reinvest in their businesses based on the increased revenues our Project will create for them.

Partnerships

Yes

PartnershipsOrgs

Reconnect Inc. will be our job training partner; RISE! and Compassion in Action Inc. have committed to refer program participants for the job training, and/or to be members of The HUB. Once launched we will seek to partner with the Salvation Army, Stephen Center, Goodwill Industries, Teen Challenge, Boys & Girls Clubs, area High Schools, Metro Community College, and other groups to help recruit job training candidates and/or small businesses to be members of the HUB.

PartnershipsMOU

Reconnect Inc and Compassion in Action Inc.

Displacement

No

DisplacementExplanation

PhysicalLocation

1920 Dorcas which contains about 47,000 SF of underutilized warehouse and office improvements on an industrially zoned site containing around 1.6 acres. It enjoys easy access to I-480 and I-80, and well as the Downtown and South Omaha.

QualifiedCensusTract

Within one or more QCTs

AdditionalLocationDocuments

The property is in a designated brownfield area, please see attached.

PropertyZoning

Yes

ConnectedToUtilities

ConnectedToUtilitiesConnected

Yes

ConnectedToUtilitiesUpgradesNeeded

Yes

DesignEstimatingBidding

No

DesignEstimatingBiddingPackageDeveloped

No

DesignEstimatingBiddingCostsDetermined

Cost per square foot estimated agreed upon with the Project Architect and General Contractor

GeneralContractor

Yes

GeneralContractorPublicCompetitiveBid

No

GeneralContractorPublicCompetitiveBidWhyNot

To facilitate making the Project operational as soon as possible, the General Contractor is being retained on a cost-plus basis, which allows us to have maximum say in directing use of community businesses and subcontractors.

RequestRationale

The list price of the Property (attached) and the construction cost per square foot estimate provided by my architect and by my general contractor.

GrantFundsUsage

Without the grant this Project cannot come to fruition.

ProposalFinancialSustainability

Yes

ProposalFinancialSustainabilityOperations

As the attached 5-Year Proforma shows, while the Project operates at a loss in Year 1, it is projected to be profitable in Year 2, and all net income after tax will be used to fund and sustain the Project

FundingSources

none

FundingSourcesPendingDecisions

FundingSourcesCannotContinue

A minimum of $9.75 mm is needed for this Project to continue.

Scalability

it s scalable to b replicated in multiple locations, funded from operations proceeds, but the Project must be initially completed as proposed to build the synergy, momentum and impact this Project is capable of.

ScalabilityComponents

FinancialCommitment

Applicant has committed to invest projected profits (pre-tax) estimated to be $2,819,752 into the Project

ARPAComplianceAcknowledgment

1.0

ARPAReportingMonitoringProcessAck

1.0

LB1024FundingSourcesAck

1.0

PublicInformation

1.0

FileUploads

Additional Location Documents (see application for list) Data table of uses (breakdown of how the requested funds will be used for your proposal) Documentation of site control (proof of ownership, option, purchase contract, or long-term lease agreement) Environmental assessment of subject site. Is the property a brownfield site? Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Pro Forma Proposal Budget/Sources and Uses Request Rationale Documentation Schedule