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Bill Block, Chair

Neal Erickson

Seattle Center Fun Forest South RFP Review Panel Seattle Center 305 Harrison Street Room 109 Seattle, Washington 98109 August 9, 2010

Dear Bill and Neal,

Thank you for your thoughtful questions and the opportunity to answer them. Our responses are enclosed.

This additional information will demonstrate the financial integrity of our proposal. In just the few short months since we first received the South Fun Forest Site RFP, our team has detailed a powerful plan for this unique space.

Our vision is for the long term and demonstrates a clear economic benefit to both Seattle Center and our city. KEXP at Seattle Center will attract not only visitors from around the world, but also residents of Seattle who will return to the Center again and again for new and engaging programming. We have an opportunity to make KEXP at Seattle Center what Austin City Limits and Prairie Home Companion have been for Austin and St. Paul—to build on the strengths of the Center, our station, and this great city of music to create a dynamic new presence that will invigorate our community for many years to come. Please do not hesitate to contact me if you have any additional questions. We look forward to the next steps of this process.

Sincerely,

Tom Mara

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Initial Questions for All Proposers

A. Unless you believe that your proposal has already met this criterion, please provide data to demonstrate that your project will be revenue neutral in construction and in operation. If you are relying on projected new ancillary revenue to Seattle Center, can you provide empirical data, such as your organization’s history in obtaining funding, comparable sites or other market studies showing the amount of such ancillary revenue that will be created? Please include all

assumptions used in revenue creation and data that supports these assumptions as achievable.

KEXP will finance the planning, design and construction for the renovation of the Arcade Pavilion, the removal of the asphalt paving and the construction of new landscaped grounds adjacent to the Arcade Pavilion. This is achieved without any reliance whatsoever from Seattle Center or City of Seattle funding. Backed by 38 years of successful operations, and on going support from the University of Washington, we are confident in our ability to raise the necessary funds to complete this project. In fact we have already received verbal commitments from major donors to financially support KEXP’s new home initiative. All signs indicate that our large listener/donor base also supports this initiative. KEXP enjoys a growing donor base of more than 13,850 individuals, foundations, government entities and corporations.

In order to quickly complete our move to Seattle Center, we plan to obtain initial funding by borrowing which will be repaid as our capital campaign pledges are received. This financing plan, to be in place within a short time of project approval by Seattle Center, will provide KEXP all required funds for planning, design, construction, equipment purchase and operations start up costs, including moving into KEXP’s new home. We have already begun to explore funding options with a financing consultant experienced in securing financing for nonprofit institutions. KEXP may fund the project with the sale of tax exempt bonds issued by the Washington State Housing Finance Commission. Bond financing allows for repayment over the life of the lease with low interest rates and on terms designed to match the cash receipts from our capital campaign.

Our annual operating budget is supported by corporate donations and sponsorships; private, corporate and government grants; and donations from individual donors. This will not change. We have been listener supported for nearly 30 years. In 2009, KEXP raised over $4 million covering all of our expenses and allowing the building of a reserve fund that now approaches $2 million. KEXP has never needed to borrow and manages its cash flow prudently. Our listener base continues to grow with more than 200,000 people weekly, over 32 million podcasts downloaded to date (19 million in 2009 alone) and over 4.5 million visits to KEXP.ORG in the last year. In 2009 over 500,000 KEXP blog visits were made by KEXP community members. With a growing donor base, our annual operations will not rely upon or assume any participation or contribution from Seattle Center or the City of Seattle. KEXP began as a grass-roots organization and continues to enjoy the growing support and enthusiasm of a worldwide community of music lovers.

B. Unless you believe that your proposal has already met this criterion, please provide

information such as prior history, firm commitments or similar evidence to demonstrate that your project will be able to raise necessary capital financing and design, construct and open the project to the public by April, 2012, in time for the 50th Anniversary of the 1962 World’s Fair. If your proposal includes or relies on phased implementation, please define the portion of your project that you realistically see as completed to meet this deadline.

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KEXP has a demonstrated history of growing programs and services, revenue and public support.

Between 2001 and 2009, KEXP’s donor base grew from 2,800 individual and foundation donors to 13,650, an increase of 386%. In 2001, KEXP received gifts totaling $204,000 and in 2009 that number was $2.6 Milion – or more than twelve-and-a-half times greater in just eight years. Today 3,783 of KEXP’s donors have been giving for at least three years, and 1,548 have been giving for at least five years. Growth in donor participation is due to investments the station made in serving our community on-air, online and through events, and to critical investments in a more sophisticated fundraising strategy. Major gifts have played a key role in the growth of our services and infrastructure. Importantly, our new and innovative initiatives were supported from venture philanthropy “start up” gifts from Paul G. Allen, who made gifts of approximately $1 Million in 2003, $750,000 in 2004, and $100,000 in 2005. By 2006, our Seattle audience who listen to 90.3FM and our international audience who use KEXP.ORG, plus an ongoing $50,000 grant from the Allen Foundation to support the KEXP Documentaries radio program, provided enough operating capital to cover all costs plus start a cash reserves fund of $725,000. Even during the economic downturn, KEXP has continued to increase revenue and our cash reserves; we project more than $1.75 Million in cash reserves by the end of 2010 – or 5.8 months of operating expenses.

Between 2003 and 2010, major donors and foundations have played an increasingly important role in the station, making gifts of $5,000 and larger to purchase equipment, support specific radio shows, increase business system efficiencies, offices, and offer matching challenge funds to encourage donations from annual donors, in addition to making unrestricted gifts for areas of most need.

Some of the city’s prominent philanthropists are associated with the station as leadership volunteers and donors, and all leadership volunteers make one or more gifts in support of KEXP, annually. Because a New Home is one of two primary initiatives of KEXP’s current strategic plan, KEXP’s closest donors have been briefed and provided feedback on building plans for more than one year. Private commitments to support the capital campaign have been made by nine donors, including board and advisory council members. Because the Seattle Center’s RFP process for the Arcade Pavillion has a compressed timeline, and came up unexpectedly, we have not had the time to discuss specific gift amounts with the 20

prospective donors most likely to make early gifts to the capital campaign, but approximately half of these donors have the financial ability to make 6 or 7 figure gifts. Combined, projected gifts from this group of donors is more than $5 million. The remaining ten donors have the financial ability to commit at least $500,000 combined. Together, the 20 donors likely to make early gifts will account for up to 40% of the projected campaign goal of approximately $15 Million. Based on standard campaign donor pyramids, this is an appropriate ratio of donors to campaign goal.

As indicated in a prior submission, our development timeline has been carefully planned by a team of real estate development professionals to include all aspects of project planning, construction and occupancy. These plans anticipate completion of financing, construction and start of operations by April 2012.

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Questions for KEXP

RFP Criteria:

Below are the evaluation criteria listed in the RFP. Please note that the additional questions relate to specific criteria, as identified.

A. Compatibility with and contribution to the Seattle Center vision, existing facilities, and the unique mix of programs, attractions and open spaces at Seattle Center.

B. Compatibility with the Century 21 Master Plan.

C. The proposer’s ability to create and operate a high quality experience for patrons D. Proposer’s financial condition

E. Proposed financial return to the City F. Anticipated benefit to the public

G. Proposer’s initial and ongoing investment in the site and future services

H. The Proposal’s impact on future Seattle Center capital expenditures or increased net operating costs

I. How the proposer expects to partner with Seattle Center to achieve the Seattle Center vision

Criteria C, D, E, G, H: Financial information/Organization structure and capacity:

1. Your schedule includes a very short time frame to raise what has been quoted in the media as “10 – 12 million dollars” for capital costs. Describe your capital campaign goal and the basis for your projections. What organization history can you cite that substantiates the level of funding you project from your donor base?

Friends of KEXP is a 501(c)(3) affiliated with the University of Washington with a formal operating agreement, as the UW Board of Regents holds the station’s FCC license. As such, KEXP’s fundraising staff are considered members of the UW’s Advancement (fundraising) unit, although funded by Friends of KEXP’s revenue sources. For instance, KEXP’s donors and revenue were included in the numbers reported in the UW’s recently completed $2.6 billion campaign. Our Director of Development was

recruited from the UW’s Arts & Sciences major giving staff in part because of her experience working with Seattle’s generous arts patrons. As per the attached letter from the University of Washington, the UW has committed to continuing their support for all of KEXP’s fundraising activities, with added support for the station’s New Home initiative and capital campaign. In addition, a new major giving and grants director will be hired to increase the station’s capacity to cultivate, solicit and steward major support for our New Home initiative. Based on internal assessment of needs, we also plan to hire support staff for our capital campaign.

As noted above in response to question A, KEXP expects to use proceeds from tax exempt bond sales to finance the immediate costs of planning, design, construction and equipment purchases, as these funds are expected to be available only a few short months after Seattle Center/City of Seattle approval of our proposal. Repayment of the bond financing begins following completion of the new facility and start up operations with annual payments. Our early donor proceeds are projected to cover the first 2 years of bond payments beginning in 2012 and ending 2014, providing ample time to complete our capital campaign for the new facility.

To repay the bond funds over the term of the lease, KEXP is exploring several options, including low or no-interest bridge financing through charitable foundations’ program-related investments, capital

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supports planning phases of capital projects in the arts) and the Kresge Foundation (which offers

challenge grants in the middle of campaigns), and through Washington State’s Building for the Arts grants which are administered through ArtsFund. An initial conversation with ArtsFund representatives indicated that KEXP is a good candidate for the Building for the Arts program. Capital campaign fundraising will include gifts from individuals, foundations, and government agencies. Some capital funds will also come from investments made in technology infrastructure from the University of Washington. KEXP’s capital campaign goal is based on construction, soft costs, equipment and technology costs, and perhaps an operating endowment as a couple of donors have shown interest in supporting the station with gifts in support of building an operations endowment.

Some of the city’s prominent philanthropists are associated with the station as leadership volunteers and donors, and all leadership volunteers make one or more gifts in support of KEXP, annually. Because a New Home is one of two primary initiatives of KEXP’s current strategic plan, KEXP’s closest donors have been briefed and provided feedback on building plans for over one year. Private commitments to support the capital campaign have been made by nine donors, including board and advisory council members. Because the Seattle Center’s RFP process for the Arcade Pavillion has a compressed timeline, and came up unexpectedly, we have not had the time to discuss specific gift amounts with the 20 prospective donors most likely to make early gifts to the capital campaign, but approximately half of these donors have the financial ability to make 6 or 7 figure gifts. Combined, projected gifts from this group of donors is more than $5 million. The remaining ten donors have the financial ability to commit at least $500,000 combined. Together, the 20 donors likely to make early gifts will account for up to 40% of the projected campaign goal of approximately $15 Million.

2. What is your average donation amount currently? What is the number of major donors you have currently at the level of $5,000 or more? To what extent will these numbers need to increase in order for you to achieve your capital campaign goals?

KEXP’s average gift is projected to be $165 by year end. It is $160 as of July 31, 2010. Cumulatively, since 2008, KEXP has inspired major philanthropic gifts or grants of $5,000 or more from 56 individual, corporate, government and foundation donors, with an average gift of $18,000. In addition corporate underwriters have numbered approximate 70 each year since 2008, with contracts that average $13,750. Some of the city’s prominent philanthropists are associated with the station as leadership volunteers and donors, and all leadership volunteers make one or more gifts in support of KEXP, annually. Because a New Home is one of two primary initiatives of KEXP’s current strategic plan, KEXP’s closest donors have been briefed and provided feedback on building plans for over one year. Private commitments to support the capital campaign have been made by nine donors, including board and advisory council members. Because the Seattle Center’s RFP process for the Arcade Pavillion has a compressed timeline, and came up unexpectedly, we have not had the time to discuss specific gift amounts with the 20 prospective donors most likely to make early gifts to the capital campaign, but approximately half of these donors have the financial ability to make 6 or 7 figure gifts. Combined, projected gifts from this group of donors is more than $5 million. The remaining ten donors have the financial ability to commit at least $500,000 combined. Together, the 20 donors likely to make early gifts will account for up to 40% of the projected campaign goal of approximately $15 Million. To reach the campaign goal, KEXP will inspire gifts of at least $5,000 from 375 additional supporters.

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3. Can you quantify with data, citing organization history, comparable sites and/or relevant market studies how you arrived at your revenue and expense projections?

KEXP relocated to a new home 10 years ago from a small basement suite on the University of

Washington campus to our current location on Dexter Avenue. That project was funded by Paul G. Allen and included the renovation of an existing building with new interior walls, heating and cooling system, interior finishes, broadcasting, IT and office equipment, new electrical and plumbing system modifications. To prepare our projections of the expenses for the Arcade Pavilion, KEXP engaged a team of trusted professionals with experience in the planning and implementation of major real estate development projects. SkB Architects, Falkin Associates and Sellen Construction Company were engaged to prepare preliminary plans, project management services and provide a cost estimate for the required construction modifications for the existing Arcade Pavilion building and the site improvements surrounding the

building. These professionals established the new work scope, project timeline, the construction cost estimate and the soft cost budgets to create the total project cost estimate. Revenue projections are based upon economic studies cited by Berk & Associates, our economic consultant for this project. Please see the answer to question six below for specific reference to relevant market studies forming the basis of these revenue projections.

4. In your proposal, you state that you anticipate paying “current market rent, consistent with what existing non-profits public interest organizations are paying… [including credit for the]… contribution of the capital costs of the improvements that revert to Seattle Center upon

completion of the lease term”. Do you have any data or calculations you can share to help define your rent expectations? Please provide data on your organizational capacity to pay rent in this range and if the addition of rent expense to your budget affects your ability to provide the programming you specify.

Rent being paid by current Seattle Center tenants who are non-profit organizations serving the public interest ranges from $0.27 to $6.10 per square foot building area per year, with an average rent of $4.08 per square foot building area. This includes the rent paid by Seattle Childrens Museum, Seattle Repertory Theater, Experience Music Project, Intiman Theater, Pacific Northwest Ballet, Pottery Northwest, Seattle International Film Festival, Seattle Public Schools, Theater Puget Sound and VERA project. The floor area of the Arcade Pavilion is 19,810 square feet. Applying the average rent rate of $4.08 per SF means annual rent value for the space of $80,825, or $6,735.42 per month.

Seattle Center has in the past been a purchaser of media promotions from KEXP radio and in recent time, has exchanged services for on-air sponsorship. KEXP is prepared and willing to pay rent after consideration by Seattle Center of the value of on-air and online sponsorship. Our proposal includes provision of $248,000 worth of annual advertising at no cost to Seattle Center consisting of five 20-second spot advertisements each day with a market value of $85 per spot, five top-of-the-hour spot advertisements each day, market value $40 per spot, and web site banner advertisements with market value of $20,000 annually. This provides a major backbone for the Seattle Center promotion campaign, LIVE AT! Seattle Center, at no cost to the Center. KEXP can be a source of constant reminder

broadcasts of the events at Seattle Center to the local, regional and worldwide audience of more than 200,000 listeners per week, enhancing the Center’s outreach with constant reminders that exciting events occur here year round. We believe that Seattle Center needs this exposure to remain viable and grow its revenue stream, and we provide this service at no cost. Combined with programming that excites listeners this is an outstanding method to ensure visitors return again and again to Seattle Center.

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KEXP will contribute more than three times the value of rental income each year to promote repeat business for Seattle Center. We are prepared to negotiate a true rent payment in addition to free on air and on line marketing assets.

5. Your proposal states $248,000 in public benefit to Seattle Center in the form of on-air

announcements and online advertising, also $343,000 worth of free KEXP-produced events. These contributions can be listed at full market value only if Seattle Center would ordinarily be

purchasing these and can offset current expense as a result. Assuming that Seattle Center would not ordinarily be purchasing these, please explain how you would value them and what would be that value.

Public Benefit

Public Benefit, as defined by KEXP’s proposal, is the financial “benefit” to event attendees who are seeing music performances for free. In this case KEXP used conservative estimates of ticket value to show benefit to attendees. Mural attendance was valued at $17 per attendee per show, and in-studio performance was valued at $5 per person per show, for a total of $343,000. This means that KEXP and thus Seattle Center is providing a free public service to approximately 42,500 (10,000 Mural Concert attendees and 32,500 in-studio session attendees) people who attend our performances, at no cost to them.

Benefits to Seattle Center and Its Tenants In-Studio Performances and Concerts at the Mural

From the Seattle Center Public Programming Strategic Plan: “Sustaining and building public programs is critical to the future of Seattle Center and the community. An investment in them must meet or exceed the commitment to redeveloping Seattle Center’s facilities and open space because while the Seattle Center Century 21 Master Plan provides an important skeleton, events and programming are its life-blood.” Approximately 33,500 new annual visitors will also benefit Seattle Center in a number of ways (as per question seven, below: of the 42,500 attendees listed in the previous paragraph, 33,500 are new visitors to the center because they are attending in-studio sessions, rather than the Mural Concerts).

KEXP is proposing to deliver to Seattle Center 33,500 new visitors each year via 700 in-studio sessions. The financial value that these vistors bring to the Campus and its tenants will amount to $558,000 annually, using conservative spending estimates of $14.75 per person for in-studio performance attendees and $19 for Mural Concert attendees. Hard costs to KEXP to produce 700 in-studio performances are approximately $175,000 – or $250 per performance, a cost level that other

organizations would be hard-pressed to match. KEXP’s approach to music event production is extremely cost-effective due to the nature of the organization, our experience and expertise, and the role we play in the music community. It would likely be cost-prohibitive for Seattle Center to self-produce or contract for event production services by a third party, effectively making these performances an impossibility for the Center otherwise.

If KEXP’s proposal is selected for the Arcade Pavilion, the value of these new visitors to the Seattle Center would, indeed, need to be comparable to “market rates,” as these are visitors who would not otherwise be on the campus.

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On-Air and Online Promotions

From the Seattle Center Public Programming Strategic Plan: “Marketing and communications are integral to the success of Seattle Center Productions… ‘If we don’t know about it we can’t come.’”

KEXP is in a unique position to provide Seattle Center these kinds of marketing and communications assets. Seattle Center and 15 organizations or event producers located on the campus have purchased on-air and online promotional inventory totaling $323,200, over the past five years. This includes on-air sponsorship announcements (twenty-second spots a la NPR) and online banner advertisements. These promotional assets were used to encourage attendance at Seattle Center’s public events.

Regardless of the cost to Seattle Center, a new annual infusion of $248,000 in media promotions from KEXP should be valued at open market rates. Announcements on KEXP will generate additional visits to the Center, and those visits will generate financial impact on the Seattle Center and its tenants. It is precisely because these organizations do not have access to these kinds of regular, far-reaching media assets that the media trade partnership KEXP is offering is so valuable to the Seattle Center.

KEXP at Seattle Center will allow the station to champion the good works happening on the Campus, bringing a new public voice to Seattle’s arts hub, while also attracted thousands and thousand more visitors to the campus, each year.

6. What data, organization history, or market studies formed your basis for your anticipated average per person expenditure for parking and food at Seattle Center and the application of this amount to 100% of your visitors?

The components of the revenue and expense projections BERK was responsible for included the following:

● Direct spending on parking and concessions at Seattle Center by visitors to KEXP activities; ● Free on-air and online advertising;

● Tax revenue to the City of Seattle from visitor spending generated by KEXP activities; and Additional documentation on how the value estimates for each of these components was calculated is included below.

Direct Spending at Seattle Center Exhibit 2

Parking and Food Expenditures by New Visitors

Note: Spending estimates are in 2012 dollars, the first year of possible operations at the new location. Source: Average spending per visit values based on Seattle Center Economic Impact Assessment study, Beyers and GMA Research Corporation, 2006; BERK, 2010

Key Assumptions and Methodology

The event counts and attendance averages are based on detailed projections and estimates by KEXP staff. The other major set of assumptions in this analysis is the average spending per visit values, which were derived from the 2006 Seattle Center Economic Impact Assessment study by respected University of Washington professor William Beyers and GMA Research Corporation.[1]

The Beyers study estimated average expenditures of Seattle Center visitors by conducting an intercept survey between April 2005 and December 2006 of 2,837 groups of patrons (9,975 individuals). Visitors

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were surveyed at a variety of events and attractions at Seattle Center and asked to report spending related to their trip by specific spending categories.

● The attractions/events categories used in the survey include: Arts, Attractions and Museums, Major festivals, Public Programs, Sports, and Dining and Shopping.

● The spending categories tracked in the Beyers study included a wide range of categories from lodging and airfare to parking fees and food/beverages.

For the purposes of the KEXP Proposal, we only considered spending on two categories – parking fees and food/beverages since the Seattle Center operates the parking facilities and many of the concessions at the site. There are likely additional spending categories that would result in revenue to the Center but at the time of this analysis not enough information was available about Seattle Center operations and revenue streams to quantify these revenue streams.

For each of the KEXP activities listed in Exhibit 2 above, BERK assigned average spending assumptions for the most similar activity category in the Beyers study. For example, the KEXP-organized lunchtime performances were assigned the average spending of “Public Performances” visitors and the in-studio performances were assigned the average spending of the “Attractions and Museums” visitors.

The only average spending per visit assumption that did not come from the Beyers study is the average daily spending for KEXP employees. For this assumption, we used recent research by the International Council of Shopping Centers on office worker daytime spending patterns to estimate a reasonable assumption of average spending on food and parking.

Finally, the 2005 Beyers study spending amounts were adjusted for inflation to reflect the likely spending in 2012, the assumed first year of operations.

The average spending per visit calculations in the Beyers study are based on total spending divided by total visitors so the values represent an average of all visitors surveyed – those that spent a lot and those that reported no spending. For this reason, in Exhibit 2 (located on p. 41 of Proposal), it is appropriate to multiply the average spending per visit value by total visits to arrive at an estimate of total spending. [1] The full study can be viewed online at:

http://www.seattlecenter.com/images/media/pdf/seattlecenterEconomicImpactAssessment.pdf

7. Your proposal states $190,000 in revenue generated by Concerts at the Mural. Is this

incremental revenue beyond that which is generated currently from KEXP produced concerts or is it duplicative in whole or in part?

We are projecting 1,000 additional attendees at the Concerts at the Mural in our proposal, representing an additional $19,000 in new revenue based on our conservative model of $19 spent per person. (Source: BERK, 2010). It is worth noting that the Seattle Center Public Programming Strategic Plan includes a very similar analysis to demonstrate the public value of the Seattle Center. In the Seattle Center analysis, the Concerts at the Mural were compared to a Concert at Marymoor and assigned a value of $35 per attendee. For our analysis we chose to use a more conservative per person value of $19. If a $35 per person value were used, $35,000 in additional funds would be spent at Seattle Center, rather than an additional $19,000.

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Locating KEXP at the Center represents an ongoing commitment and partnership between KEXP and the Center, ensuring that great events like Concerts at the Mural (and others like it) will continue long into the future. This long-term commitment can only be enhanced when KEXP relocates to Seattle Center.

8. Similarly your proposal states $53,000 in annual direct benefits (revenue) to the City of Seattle. Given that you are currently doing business in the City of Seattle, does this figure represent an incremental addition to the tax revenue generated from your programs or is it a displacement from one location to another also in the City?

There are more opportunities to capture ancillary spending by visitors at Seattle Center than are available from visiting KEXPs current location along Dexter Avenue. The new location will allow more visitors to participate in Seattle Center activities and generate economic activity. This will allow KEXP to host new events and larger events, with a higher likelihood of drawing out-of-city or out-of-region visitors. These visitors represent net new spending and tax revenues.

Many Seattle residents may be spending their entertainment/music budgets going to concerts outside Seattle or outside the region. By creating more opportunities for these residents to spend their

entertainment dollars in Seattle, we can decrease the spending leakage and increase City of Seattle tax revenues.

Our proposal Exhibit 1 on page 40 describes an incremental addition in revenue generated by KEXP being located at Seattle Center, with a minor amount of overlap with current expenditures by our volunteers who park near our current station. Prepared by economic consultants Berk & Associates, the $53,000 figure includes the tax revenue generated by spending of KEXP visitors and volunteers coming to Seattle Center, parking and consuming concession products and services while at Seattle Center. This revenue includes city taxes on sales, parking, lodging and admissions tax. The new location for KEXP will draw visitors who currently are not able to visit KEXP. Our current location precludes our ability to host more than the large handful who can fit into our current very limited space for in-studio performances. KEXP’s current location at Dexter and Denny offers visitors few opportunities for incidental purchases (or impulse buys) that are abundantly available at Seattle Center, and parking in our neighborhood is

typically considerable less costly than parking available at and adjacent to Seattle Center. Moving our operations to Seattle Center ensures increased revenue for Seattle Center and sales tax revenue for the city.

In addition to the taxes cited above, the City will receive one-time sales tax revenues on the value of construction needed to improve the facility for KEXP’s use. On an on-going basis, KEXP will also pay utility taxes on its consumption of utilities at Seattle Center. It is important to note that while the

discussion of tax impacts are focused on the benefits the City of Seattle receives, the spending outlined above will also benefit other taxing jurisdictions. For example, sales tax revenues also accrue to King County and the State of Washington.

9. Did your proposal anticipate any subsidy from Seattle Center for operational expenses (e.g. utilities, security, maintenance, open space). If so, what level did you anticipate? How would you cover these expenses without subsidy? Please provide financial data supported by organization history, comparable conditions or market study.

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KEXPs proposal assumes two minor subsidy items provided by Seattle Center. After KEXP completes and pays for construction of the new open space landscaped area adjacent to the Arcade Pavilion, we suggest that Seattle Center provides landscape maintenance for this area with its existing grounds crew. Creation of, and payment for, this landscape area is a KEXP donation to Seattle Center, while providing a no-admission fee, and expanded green space for public enjoyment at no cost to the city.

Because KEXP is a 24 hour operation, at least one staff member is in the building at all times. Our second request is to participate in Seattle Center’s existing security program escorting staff to and from their vehicles during late night hours.

10. What are the organizational milestones you are prepared to meet to assure that your project is complete by April, 2012? For construction, please outline a strategy to meet the target opening if the site has to be shared with the Fun Forest move-out in Sept. 2011.

In order to be operational by the opening of the Seattle World’s Fair 50th Anniversary Celebration on April 21, 2012 the KEXP relocation team has prepared two schedule options that take into account the

potential one year extension of the Fun Forest operations. The first option considers that the site becomes available starting on October 1, 2010; and the second option considers that the site becomes available on October 1, 2011. In both options Area B (the publicly accessible open green space) is scheduled for completion, along with all building related site work, improvements to the Horiuchi Mural, all exterior improvements to the Arcade Pavilion including the outdoor performance stage, and one interior live broadcast studio, prior to the celebration. The major impact that an extension of the Fun Forest operations will have on the completion of KEXP at the Seattle Center will occur at the interior of the building. Based on a shortened timeframe available for construction, we are proposing two solutions that will ensure a building that is complete and available for in-studio performances, remote broadcasts, and public participation.

Option A (site available 10/1/10): Provided that the site is available on October 1, 2010 we are scheduled to deliver a site and building that is completed inside and out with all elements of in-studio performances, in-studio broadcasts, and public interaction as follows:

Milestone Start Finish

1. Approval from Seattle Center 9/15/10

2. Design 9/29/10 2/15/11

3. Permitting 2/16/10 7/5/11

4. Construction 7/6/11 3/13/12

5. Equipment & Furniture Install 2/1/12 4/10/12 6. Seattle World’s Fair 50th Anniversary 4/21/12 6/21/12

Option B (site available 10/1/11): Provided that the site is available on October 1, 2011, we are scheduled to deliver a site that is complete and a building that has a completed exterior including the outdoor

performance stage by April, 2012. The building interior will consist of one completed broadcast studio for in-studio performances and live in-studio broadcasts. The remainder of the building will be completed with painted drywall and lighting and would be available for joint programming between the Seattle Center and KEXP and could be a great interior space for Anniversary specific programming and public interaction. Completed interior construction and full station operations would commence following the Seattle World’s Fair 50th Anniversary event. Specific project milestones follow:

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Milestone Start Finish

1. Approval from Seattle Center 9/15/10

2. Design 9/29/10 2/15/11

3. Permitting 2/16/10 7/5/11

4. Construction (site & building shell) 10/3/11 3/16/12 5. Studio A Interior & Exhibitory Construction 2/27/12 4/20/12 6. Seattle World’s Fair 50th Anniversary 4/21/12 6/21/12 7. Complete Interior Construction 10/22/12 1/11/13 8. Operational Station Switch-Over 12/17/12 2/22/13

Given the expedited construction schedule and the fixed completion date of 4/21/12, KEXP would like to request help from the City of Seattle in providing an internal construction permit expeditor to assist us in being successful within the Department of Planning and Development to ensure that the above

milestones can be satisfied. Seattle Center’s consideration on this matter is greatly appreciated.

Criteria A, F I: Adding to the unique mix of Seattle Center/Program

11. Please clarify the times of day and week, as well as location, of your 500 “Live in-studio performances”. Please provide current information as well as any anticipated changes in scheduling.

We feature performances throughout the week and weekend (Monday-Sunday). The scheduling of these performances depends in part on the availability and travel schedules of the artists with the majority of the performances occurring during weekday business hours. We do not anticipate a significant change to that approach. All performances will be in our new facility adjacent to the Mural, bringing more visitors, and repeat visitors, to Seattle Center to see and listen to these artists as they perform. This offers the opportunity for visitors to witness performances of popular and emerging musicians that they cannot get anywhere else. Seattle Center then becomes the “go to” spot to experience the latest in musical

creativity.

12. Please clarify the portion of the arcade pavilion that will be used for programming for public access and use vs. that portion that is office or technical support space?

As we do today, the general public will be invited to tour our full facility in operation, led by volunteer guides. In essence, our entire facility will be open for public access. Our early design concepts allocate 1,825 internal SF exclusively to fully dedicated organized public activities, like in-studio performances, as will the outdoor stage at the building’s NE corner. This represents more than 20% of the gross floor area of the building.

13. Your proposal mentions new users will be brought to Seattle Center. How many people do you anticipate? Are these net new visitors who would not otherwise have visited Seattle Center? What data supports this assertion? Can you quantify who these users will be: local vs. tourist;

reduced/free admission vs. full payment; age and income demographic? How does this affect or improve the current demographic make-up of visitors to Seattle Center?

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KEXP is expected to draw over 100,000 visits to Seattle Center. We anticipate 90,000 would be net new visitors attracted by our programming. Ten thousand would already be visitors to the Concerts at the Mural series. We assert these conclusions based on the attendance to current KEXP activities, expanded to the new programming possibilities at the Arcade Pavilion site and surrounding grounds. Our primary audience will be locals, but we certainly expect to draw tourists based on our worldwide reach and visitors. All of our events and tours are free. The average age of a KEXP listener is 38 years old. Ninety-two percent of KEXP listeners are between the ages of 25 and 64. Fifty-four percent (54%) of KEXP listeners have an annual individual income of more than $50,000.

14. What is your vision of your proposal’s compatibility with existing Seattle Center events and organizations?

Our proposal’s vision includes compatibility, and more importantly, synergy, with a large number of Seattle Center organizations and events.

Promotion

We see KEXP upholding these organizations’ goals to connect their services and events to new patrons. KEXP reaches more than 1 million persons each year, locally and around the world. Our commitment includes supporting the central mission of Seattle Center along with the individual missions of its non-profit resident organizations. We envision alerting our listeners to the offerings of Book-It, Center House Theater, Seattle Repertory, Theatre Intiman, Pacific Northwest Ballet, Seattle Children’s Theatre, Seattle Children’s Museum, Pacific Science Center, Seattle Opera, The Vera Project, and SIFF, among others. The approach is to provide a “bank” of on-air and online promotional assets to Seattle Center for disbursal throughout each year.

Programmatic

We see programmatic collaborations with many organizations, too. We see podcasting classes with the youth at Vera Project. We see interviews with curators and filmmakers showcased at SIFF. We see introducing opera to our listeners with the help of Seattle Opera. We see special broadcasts with Folklife, Bumbershoot and Key Arena. We see joint events with EMP. We see collaborations with the staff at Pacific Science Center. Our audience is insatiably curious. Together, we can enable them – and the patrons of the important organizations on campus -- to discover new and enriching experiences.

15. How do you anticipate mitigating any noise impacts from amplified music in your indoor or outdoor spaces? Can you adjust sound levels as non-KEXP constituents are using adjacent spaces? Is the interior and/or exterior volume level such that it does not affect programming of adjacent spaces or the quiet enjoyment of open space at Seattle Center?

We anticipate mitigating sound impacts. Currently, our indoor activities in no way impact the external area, as our rooms are substantially soundproofed. We will meet or exceed these standards in our new home.

Our external activities will range from solo acoustic to fully amplified concerts. We will design and build activity schedules to fit the ebb and flow of the Seattle Center, with the Seattle Center.

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16. Have you considered the regular load in/out requirements of multiple music programs relative to the limited capacity for truck access to the site as outlined in Section 4 (page 3) of the RFP? We have built up confidence in executing a multitude of music programs at this site from a handful of conversations regarding relocating to Seattle Center over the past few years as well as our experience partnering with the Seattle Center on the Concerts at the Mural series.

17. Given that your proposal includes the arcade pavilion, how does your design provide visual access to Seattle Center landmarks such as Center House from the south and the Pacific Science Center from the north?

The design concept provides improved visual access to the Center House and the Science Center using large window walls at the northeast and southeast corners to allow views through the building. This maintains visual access ‘around the corner’ vs. a solid wall. Redesigned landscaping is planned, which will open up the Mural green much more than the current landscape.

The design concept provides improved circulation from the Space Needle base / southeast corner of the site to the north and around to the Center House as well as along the south to the Pacific Science Center and the Mural area. A water element running from the base of the Space Needle to the west side of the Pavilion, adjacent to the Horiuchi Mural reinforces this major pedestrian path and helps to reduce the current isolation experienced in the southeast area of the center (southwest of Space Needle, northeast of Science Center).

The building function spills out to the Mural side on both the north and south with seating for Center House dining and a DJ booth, further enhancing the connection between the Space Needle and the Mural area.

As the conceptual design develops, we will explore additional opportunities to provide more transparency / connection from the Space Needle through to the Mural and Center House.

18. While not specific to this RFP, have you considered any other sites in Seattle Center? Do you believe that another redevelopment site, if available, would also fit your program, and if so, what is that site?"

Over the last two years, we have considered other locations at Seattle Center. We have been asked to consider the Northwest Rooms and the area in the northern part of Arcade Pavilion. In truth, we have challenged ourselves to identify a stronger location anywhere else on campus, or elsewhere in the city: could KEXP have a greater impact on our community‘s vitality in at any other location? We cannot. The Arcade Pavilion has a unique combination of four attributes. First, it exists in the most trafficked area of Seattle Center, enabling as many people as possible to experience KEXP’s services. Secondly, it enables visitors to benefit from KEXP’s programming and performances around the periphery of the entire building; all four sides will be of service, a 360 degree approach. As stated in the Century 21 Master Plan, this location connects Seattle Center patrons to vibrant programming appealing to the next generation of users, facilitating artistic expression and invigorating the current campus. Thirdly, its adjacency to the Mural Amphitheater enables even more powerful activation. Lastly, it is an existing building.

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To be clear, our proposal is for the Arcade Pavilion.

That being said, if KEXP is not chosen to redevelop the Arcade Pavilion, our strategic initiative to find and create a new home for KEXP will remain. We would begin conversation about best options on or off of Seattle Center.

Potential for Joint Solution

Over the past six weeks, KEXP connected with some of the proposing organizations to explore economically viable and synergistic partnerships which would deliver the Seattle Center even greater impact. The greatest promise for a joint solution, we believe, is with Open Platform, the most receptive to collaboration and partnership-building in our experience.

Our organizations met several times and specifically explored whether there is sufficient comfort to a) develop the property and b) operate it. We discussed the notion of Open Platform effectively “taking over” the open space (Area B) in KEXP’s proposal. The idea is for Open Platform to add much more value to that space while providing access to KEXP to present in-studio performances and other activities at all four corners of the Arcade Pavilion.

While the RFP process does not give sufficient time to forge an actual agreement, the dialog these past six weeks has generated keen interest in:

1. Approach architecture and landscape design of the building (Area A) and the open space (Area B) in a holistic fashion

2. Create relationships between the sustainable systems of the building and open space 3. Realize economies of scale with a single contractor

4. Optimize the open space culturally by coordinating KEXP live music performances & activities with the art and activities of Open Platform

5. Regularly confer, plan and develop joint strategies to deliver cultural impact for the community and Seattle Center

Our organizations are laser-focused on presenting a wide and deep array of art and artists. Indeed, the very nature of our missions requires us to enable as many people as possible to discover as many artists as possible. By combining Open Platform’s vision with that of KEXP’s, the Arcade Pavilion area

becomes an amazing place for art and music in Seattle, an area accessible at no charge to all. Lastly, please know KEXP is interested in exploring any joint solution between the proposing organizations.

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UNIVERSITY OF WASHINGTON

OFFICE OF THE PRESIDENT

Mark A. Emmert, President

July 1, 2010

Mr. Neal Erickson

Seattle Center Redevelopment

305 Harrison Street, #109

Seattle, WA 98109

Dear Mr. Erickson:

I am writing in strong support for KEXP’s proposal to develop the Arcade pavilion

next to Seattle Center’s Mural Amphitheater.

The University of Washington (UW) and KEXP share the same discovery-based

mission. As holder of the FCC license, the UW supports the notion of positioning KEXP as a

cultural force for the benefit of Seattle Center and the city. Indeed, moving its studios, its

operations, and its hundreds of live-studio performances next to the Mural Amphitheater would

enable KEXP to play an even greater civic role in the city of Seattle by connecting more

people with more artists.

KEXP is in a unique and strong position to uphold the Seattle Center and its resident

non-profits. With listeners on every continent, KEXP reaches hundreds of thousands of people

every month, providing Seattle Center, and thus the city, a stronger, farther-reaching voice.

The UW enthusiastically supports the KEXP proposal to develop the location next to

Seattle Center’s Mural Amphitheater. Thank you for your consideration.

Sincerely yours,

Mark A. Emmert

President

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Box 351232 214 Gerberding Hall Seattle, WA 98195-1232 tel 206.616-8965 fax 206.616.1784 washington.edu/externalaffairs

 

    August 5, 2010        Seattle Center Review Panel  Attn: Mr. Neal Erickson   Seattle Center Redevelopment   305 Harrison Street, #109   Seattle, WA 98109      Dear Mr. Erickson and Seattle Center Review Panel:      To expand on President Emmert's letter to you on July 1, 2010 declaring support  of KEXP's proposal to Seattle Center, I write to further describe the nature of the University  of Washington’s commitment.      The KEXP proposal upholds the University's mission and extends the University's  reach to KEXP's important audience locally and around the world.  As an affiliate of the  University, KEXP represents the University's interest in advancing the discovery,  understanding and appreciation of contemporary music and culture.      To support the success of this initiative, the University commits to supporting the  fund raising required to successfully build the facility:    1.  We will team with KEXP's fund raising staff and collaborate on stewarding gifts  from among individuals in both organizations' constituencies.    2.  We will provide a variety of fund raising resources including market and donor  research.    3.  We will provide expertise, capital campaign management and planning services.      In short, the University of Washington will provide KEXP's staff and donors access  to all of the resources and benefits provided normally to University units.      As President Emmert remarked, we are strongly supportive of this project and  encourage you to advance this important initiative to Seattle Center Director Robert  Nellams.              Sincerely yours,                    Randy Hodgins            Vice President 

 

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Seattle Center Review Panel 305 Harrison Street

Seattle, WA 98109

Dear Seattle Center Review Panel Members and Officials:

NPR enthusiastically endorses KEXP's proposal to develop Seattle Center's Fun Forest area next to the Mural Amphitheater into a vibrant and

community-focused hub for music discovery and exploration. As a city with an international reputation for its vibrant and prolific music community, your support for this project would enable KEXP and NPR to bring a new level of connection

between musicians and the Seattle public, one that is open to all, regardless of their financial resources. It would also signal Seattle's support for public media and its role in preserving and celebrating the arts and culture.

KEXP is among the vanguard of all music stations in the nation - both public and commercial. Offering a rich and dynamic range of eclectic, contemporary music and music-makers on the air and online has brought it legions of local fans and supporters, as well as one of the largest online audiences among public radio stations nationwide. KEXP is perhaps the country's most prolific radio producer of in-studio music performances. In 2009, KEXP produced 500 live sessions with artists.

We may call it a "local" station, but KEXP plays a significant role in NPR's national programming. That can be seen most easily in the leadership role the station played in the founding and evolution of NPR Music at npr.org/music, an online music destination that has reinvented the public radio music experience. Given its national reputation as a "taste-making" music station and its

extraordinary capacity to produce live in-studio-performances, we invited KEXP to join the small group of founding, producing stations for npr.org/music. KEXP's insights about web design, intellectual property strategies, curation, and listener needs helped inform the direction of the overall site.

Today, KEXP is one of five eclectic music stations providing in-studio

performances, music reviews and recommendations monthly to NPR's online audience via NPR Music. Through NPR, KEXP's inventive music coverage is available to a worldwide audience across multiple platforms - from web, to radio, to podcast, to mobile, to social media, to live events.

NPR stands behind KEXP's mission, and its role in preserving and growing Seattle's civic and cultural life. Their new location in the Seattle Center would add a new dimension to their local service as well as to NPR's national offerings.

Best regards, Vivian Schiller President and CEO NPR

NPR®  Telephone: 202.513.2000

635 Massachusetts Ave, NW Facsimile: 202.513.3045

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SEATTLE| PORTLAND | SAN FRANCISCO

VISIT 1932 FIRST AVENUE, SUITE 507, SEATTLE, WA 98101

CALL 206.374.7788 FAX 206.374.7798 PYRAMIDCOM.COM

For Immediate Release – August 10, 2010

High-profile and local support mounts for KEXP’s proposed move to Seattle Center

Dave Matthews, Pearl Jam’s Eddie Vedder and Mike McCready and Ann and Nancy Wilson of Heart join growing movement extolling benefits of KEXP proposal

Seattle, Wash. – Grammy award-winning, multi-platinum singer/songwriter Dave Matthews is lending his

support to KEXP radio’s proposed move to Seattle Center. Pearl Jam’s Eddie Vedder and Mike

McCready and Ann and Nancy Wilson of Heart have also joined 26 other arts and community leaders in signing a letter of support for KEXP’s planned move.

“My family and I chose to settle in Seattle in part because of its vibrant music community, of which KEXP is an integral component,” said Matthews in his own personal letter advocating for KEXP’s proposed move.

KEXP’s move would bring more members of the community into the studio for free live, intimate

performances, and more bands out of the studio for free sets at a gorgeous outdoor park that’s planned. It includes a respite area where touring artists can stop in to clean up and take a break from the road. It also creates new arts education opportunities through apprenticeships, recording classes and more. KEXP’s proposal to move to Seattle Center is on a short list of finalist bids for reconfiguring the current Fun Forest space, and has a large base of community support. The station has outgrown its current headquarters on Dexter Avenue, where it broadcasts to 200,000 listeners from seven continents each week and hosts 500 in-studio performances annually.

The letter to the Century 21 Committee selection panel highlights KEXP as a “unique innovator” that is an “ideal fit for Seattle Center.” It follows letters of support from NPR President and CEO Vivian Schiller, and Mark A. Emmert, president of the University of Washington. Collectively, they call on the panel, Mayor and City Council to “invite one of Seattle’s celebrated arts organizations to join its cultural center.” Supporters also tout the economic advantages of the move.

“The arts and culture benefits that will come free to our community with KEXP at Seattle Center are many – but there will be important financial benefits as well,” said Kelly Curtis, manager of Seattle’s Pearl Jam. “Directly and indirectly, the music industry in Seattle supports 22,000 jobs and generates $2.6 billion in sales. KEXP at Seattle Center will be an asset that only makes that industry more robust by enhancing our stellar reputation as a community that through-and-through supports music and musicians.” Letters of support from the community, Matthews, Schiller and Emmert are attached.

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About KEXP Public Radio

KEXP is an influential, non-commercial radio station based in Seattle and supported through financial contributions from listeners and businesses worldwide. Over the last three decades, KEXP has built a reputation as a champion of new and emerging artists and musical forms. Today, KEXP programs a rare mix of music spanning multiple genres and the station brings listeners more than 500 live, in-studio performances each year.

KEXP has a mission to enrich people’s lives by providing a wide array of music and by exploring,

developing and applying relevant technology to deepen and extend musical experiences. Listeners enjoy KEXP at 90.3 FM in Seattle and around the world at KEXP.org.

The station is governed by the Friends of KEXP, a nonprofit organization that operates the station on behalf of the University of Washington, which holds the FCC license. The University of Washington’s information technology group provides KEXP with the development and application of streaming services, technical expertise and other relevant technology to extend the music experience.

### Contact:

Chris Nelson 206-940-1605 (cell)

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