Mainstreet Communities LLC (Mainstreet) is a large real estate developer and manager of multi-family apartment and mixed-use buildings. Due to environmental enterprise factors (EEFs) related to COVID-19, Mainstreet is considering changing its architectural plans for a development that was already in the city approval process. These changes are in response to what Mainstreet believes will meet the future needs of a growing population of renters who will permanently work remotely.

Because Mainstreet is a projectized organization that has been developing properties over the past 30 years, Mainstreet has developed its own project management methodologies and has OPAs that support that process. Mainstreet uses the predictive (waterfall) project life cycle for these types of projects. The Business Case used by Mainstreet is an approved template (OPA) that is to be used for all potential projects in the organization, whether the project is for a new real estate development, an internal investment or an improvement. Jordan Amari, owner and CEO of Mainstreet, has asked his Director of Real Estate Development, Mitchell Whitmer, to prepare a Business Case in order to consider changes to this new development.

The sections of Mainstreets Business Case include the following:

• Title and Header Information
• Business Case Summary
• Goals (tangible and intangible, cost-benefit analysis, value justification)
• Project Alignment (Concepts support of project owner and performing organization)
• Potential Project Impact (existing business scenarios)
• Identify Stakeholders
• Identify Risks of Pursuing
• Identify Risks of Not Pursuing
• Estimated Cost
• Estimated Total Time
• Estimated Project Oversight Required
• Estimated IT or Technical Resources Required
• Estimated Business Resources Required

1. 1. 1. Download and review completed Business Case for this project
         • Business Case
      2. Provide short responses to the following questions:
         1. What are Business Case outputs that are inputs for the other documents? What are these documents?
         2. Using in information provided in the Summary section of the Business Case answer the following questions:
            • What the project is?
            • Who it is for?
            • Who benefits from it?
            • What value it creates?
         3. What are the purpose to include of the following sections in the Business Case?
            • Project Alignment
            • Potential Project Impact
         4. What type of analysis would you recommend to identify and analyze stakeholders and their position (support or oppose) and impact on the project?
         5. Why is it important to identify the risks of Not pursuing the project in the Business Case?
         6. Do you think the estimations provided for the Cost, Schedule, Resources, and Project Management Oversight are sufficient at that stage of the Initiating phase? Explain.
         7. Who has to approve the Business case for the potential project to move to the next part of the Initiating phase?
         8. Why do you think the Project Manager is not included in the review and approval process at this stage in the project?
         9. If Business case is approved what will be the next step?

• Use a business professional format
  • Use traditional font such as 12-point Times New Roman.
  • Avoid using unusual fonts that distract from the content of your writing.
  • Use the same font throughout the entire document,
  • Left justified and single spaced except for a double space between paragraphs.
  • Each paragraph must include a topic sentence, supporting details, and a concluding sentence.
  • While the tone can be friendly, it must be written in a formal style.
  • Avoid clichs, contractions and slang.
  • Use proper grammar and spelling.
  • Include citations and references as needed
• Add your name to a page header
• Submit a properly shared link to Google Docs document by the begining of the class
• Be prepared to share your thoughts with classmate

BUSINESS CASE Mainstreet Communities, LLC Project Type: Real Estate Development Concept Name: WINGRA POINT | Live Work Submitted by: Mitchell Whitmer Date: March/15/2020 Residential Commerical Mixed Use Land Improvement BUSINESS CASE INFORMATION Creating Places Where People Live 1. Summary This mixed-use residential real estate development project proposes to build three buildings totaling 258,000 square feet and features 172 unit apartments, three commercial units, five live work units, common courtyard, and underground parking in downtown Ann Harbor is targeted at the work-from-home luxury rental market in order to respond to a change in market demand and to create an opportuntiyt to create more value for investors and renters. 2. Goals (tangible and intangible; cost-benefit; value justification) 1 Improve brand loyalty - building social capital among remote working professionals 2 Increase product differentiation and competitive advantage 3 Increase rents per square foot relative to cost per square foot 4 Improve vacancy rates by 1% 5 Reduce and repurpose retail space which is projected to be more dificult to lease in the future 6 Attain superior returns for investors with premium rents and lower vacancy rates =20% increase 7 Meet ROAl Criteria (Return On Asset Investment) 8 Meet investors expected rate of return requirements 9 Exceed pre-leasing norms with this new Live Work development concept as an indicator of value created 10 Increase Maintreet's brand awareness as being synonomous with luxury living 3. Project Alignment (Concept's Support of Project Owner and Performing Organization) Project Owner's Strategic Objective: Our mission is to provide luxury apartments and the highest quality living experience, services and amenities for our quality residents. Project Alignment with Project Owner*: By developing a new type of luxury apartment that caters to remote working professionals, Mainstreet will fulfill its commitment to delivering the highest quality living experienced and amenities to its quality residents. *Project owner and performing organization are the same and thus aligned. Project Type: Real Estate Development Concept Name: WINGRA POINT | Live Work Submitted by: Mitchell Whitmer Date: Residential Commerical Mixed Use Land Improvement 4. Potential Project Impact (on existing business scenarios) 1 Existing building plans to develop the land this new building project will occupy will have to be changed to adjust to changing market requirements. This will involve additional architectural expense, new city zoning and construction approvals and will likley and will increase scope, cost and schedule of the project. 2 Providing short-term rental services for its residents who wish to leverage their mobile working status by traveling and renting their apartment when gone will require research to determine legal, accounting, maintenance, technology and staffing impacts and plan to provide this amenity and realize premium rents for doing so. To date, short-term rentals are not allowed and sub-leasing is not allowed. This is a material cultural change as well as proceedural change. 3 Exiting development staff and architectual resources will need to reprioritize their schedules to work on this new project. 4 There are currently seven retail or office units on the first floor that will be reduced to three units. This reduction in retail space is a response to retail space projected to shrink by 2535% in the future due to permanent chnages caused by COVID. 5 The compay's current construction project manager has no more capacity and thus Mainstreet will need to aquire an outside project mangement proffessional to manage this project. \begin{tabular}{|c|c|c|c|c|c|c|} \hline Project Type: & \multicolumn{2}{|c|}{ Real Estate Development } & Concept Name: & \multicolumn{3}{|c|}{ WINGRA POINT | Live Work } \\ \hline Submitted by: & Mitchell Whitmer & Date: & March/15/2020 & Residential & Commerical & Mixed \\ \hline & & & & Land & Improvement & \\ \hline \end{tabular} 6. Risks of Pursuing This Project 1 To deliver the quality anticipated, it may cost too much to achieve Mainstreet's required internal rate of return (RRR). 2 The risk that once the COVID-19 pandemic passes, employees will return to work as they did pre-COVID and the need for work-at-home designed apartment units and amenties will not be desired. 3 The risk that renters will not want to pay a premium for at-home work accomodations that will add to Mainstreet's cost per square foot. 4 Risk that supply of building materials will be delayed and cost a premium due to high demand and low supply due to the current pandemic. 7. Risks of NOT Pursuing This Project 1 Risk of not adjusting to the changing needs and the increase number of renters who wish to work from home may result in renters going to developers who are making adjustemtns to meet the changing needs of renters. 2 Current building design has allocated the first floor of the building to retail space which is projected to continue to shrink in the coming years due to COVID-19 changing the buying and dining out habits of consumers. As such the existing design may never be able to rent the first floor retail units as planned to acheive proeject returns on investment. 3 Interest rates are currently at a historic low and not developing now may run the risk of high interest rates if groundbreaking is delayed. 8. Estimated Cost: High Briefly Explain Below: This project is anticipated to cost between $42 and $43 million. This is 2% more than the orginal development plan prior to COVID-19 modifications. 9. Estimated Length of Project (Start date, End date, \# of Days/Months) - Land Purchased October 2016. Break Ground is estimated for January 2021. Move in is estimated for May 2022. - Obtain occupancy permit by April 1, 2022 - Total Project Land to Move-in is 5.5 years ; Development to Move-in is 2.5 years; Construction is 16 months. 10. Estimated PM Oversight Required: High Briefly Explain Below: This building is a large construction project and of same or similar size as previous projects built by Mainstreet. Refer to previous sized and scoped project plans and lessons learned