FACT SHEET

HANGAR 2 REDEVELOPMENT

(Updated as of:  July 3, 2008)

Wings Over the Rockies wishes to keep its members, volunteers, visitors and community informed about plans for the Hangar 2 property immediately west of the Museum.  The following information has been provided in response to questions about the redevelopment process over the past 18 months.  Wings will continue to periodically update information to this fact sheet.

When was the Museum established, and what is its mission?

Wings Over the Rockies was established in 1994.  Its mission is “to educate and inspire people of all ages about aviation and space endeavors of the past, present and future.”   Wings Over the Rockies has been designated by the State Legislature as Colorado’s Official Air and Space Museum. 

What is the history of redevelopment planning for the Hangar 2 site?

1994-2004
Since 1994, the Wings Board of Directors, successive managements and hundreds of dedicated volunteers have sought to develop a viable museum within the pre-World War II structures known as Hangar 1 and Hangar 2.  Hangar 1 and its western addition houses the Museum, while virtually no work has ever been done on Hangar 2.  Around 2000, a plan was considered that called for Hangar 1 and 2 to be joined, with an atrium between the structures.  Preliminary fundraising efforts fell woefully short of the magnitude of upgrade costs for both hangars.  Meanwhile, aging infrastructure issues were multiplying with Hangar 1.  In 2001, the Board committed approximately $160,000 in an attempt to fix a leaking roof.  That attempt was unsuccessful.  In 2004, Wings sought the assistance of the Colorado Historical Society for a professional, historic assessment of Hangar 1.  The assessment identified infrastructure needs and led to subsequent professional analysis of Hangar 1’s upgrade priorities, estimated today at $7 million.

2005-2006
Facing increasingly critical infrastructure issues, and determined to develop long-term museum viability; Wings and the Lowry Redevelopment Authority (LRA) began to investigate adaptive re-use plans for Hangar 2.  A conceptual plan was reviewed to build condominium units into the perimeter of Hangar 2.  Initial redevelopment projections forecast significant economic potential to apply to Hangar 1 requirements.  After a full year of planning and financial analysis, however, the financial partner in the project withdrew due to costs and uncertainties associated with Hangar 2.  Following an extension of time in which many other financial partners were solicited, the Wings Board determined the final proposal was not acceptable. 

April-November 2006
Wings’ Board of Directors decided to seek other options for Hangar 2 through a request for proposal (RFP) process.  Working with LRA, informational materials were assembled, and 16 development firms were contacted who had experience with historic properties, a track record in Denver and/or Lowry, and a strong financial background. 

Based upon the seven-month RFP process, as well as the previous year of unsuccessful adaptive re-use planning, the Wings Board of Directors signed a letter of intent with the International Risk Group (IRG) to proceed with the public hearings and entitlement process.

December 2006-August 2007
A series of concepts from demolition to adaptive re-use were prepared by the developers and successively shared through the entitlement process with the Lowry community and the Denver Landmark Commission.  Working with LRA, a Lowry Community Task Force was established, comprised of 16 members, representing neighborhoods, the Town Center, other Lowry organizations and community members at large.  Wings is represented by a Board member and its President.  Opposition groups were invited to provide members, and several were accepted.  The Task Force met in public session several times and other times in private work sessions.  A professional facilitator was hired to moderate several Task Force meetings.  Task Force members listed guiding principles which would govern their work as a group, and they contributed ideas and energy into several scenarios in an attempt to find a solution acceptable to all parties.       

Following extensive review of several concepts with architects Buchanon Yonushewski Group through the Spring and Summer of 2007, IRG proposed a new plan to adaptively re-use Hangar 2 in late summer of 2007.  This plan called for constructing approximately 230 residential units within the hangar structure and opening some roof sections to provide sunlight through exposed steel.  In addition, alterations were proposed for the south side building to accommodate approximately 6,000 square feet of retail space.  Parking was planned on the surface surrounding the hangar, and in structured spaces below the residential units.  The Lowry Task Force and Historic Denver were among widespread supporters of this conceptual plan. 

BYG presented the re-designed plan to the Denver LPC on August 21st.  The concept received favorable recommendations from Historic Denver, the Lowry Task Force (all except one member) and the Landmarks Preservation Commission staff.

Commission members expressed reservations about the concept’s innovative treatment of the hangar doors, openings in the roof and alteration of some of the hangar’s side buildings.  The Commission favored adaptive re-use for Hangar 2, however.

September 2007-February 2008
Overcoming disappointment from the LPC review of months of hard work through a public process, the IRG/BYG development team continued to study redevelopment options for Hangar 2.  Changes suggested by Commission members, essentially enclosing everything inside the hangar, made residential units impractical in further redevelopment designs.  However, a new mixed use scenario emerged with additional partners which appeared feasible as a means to avoid alteration of the original structure.  It also held the advantage of reducing traffic and density concerns associated with residential units. 

In December, another letter of intent was signed by IRG, LRA and Wings to develop these concepts further.  LRA continues active involvement to insure compliance with Lowry standards.  In early February, following a proposal review, a contract was signed to develop the concept.  In addition to meeting timely LRA expectations for new plans, a proposal was necessary for the developers to initiate discussions to secure funding for the plan.  On February 21, the Lowry Task Force was briefed on the new plans.  Following a review and several questions, the Task Force reaction was very favorable.

February 2008-July 2008
IRG was joined by Rite Place Management and Larimer Square Partners in development of the new adaptive re-use plan.  This plan was designed to meet virtually all concerns expressed in public feedback from previous designs, as well as concerns from the Landmarks Commission.   The concept called for a mixed use plan which did  not alter the roof line, hangar doors or side buildings.  Only the loading dock (non-original) would be removed.  South side buildings would be preserved and enhanced with approximately 22,000 square feet of attractive, commercial space extending back into the hangar.  On the north side of the hangar, space would be made available to office tenants.  Within the main hangar space, a multi-tiered storage facility would be constructed.  Access to the self-storage units and deliveries to commercial tenants would be via a two lane drive through the hangar.  The plan appeared to meet four major goals for Wings:  saving Hangar 2’s structure, developing a key Lowry asset, enhancing museum activities and funding key capital improvements and assuring longterm viability for Wings Over the Rockies.

What is the current status of re-development plans for Hangar 2?

Unfortunately, terms of the agreement signed in February between Wings and IRG fell victim to unprecedented difficulty in the financial and real estate markets.  In the face of these challenges, both Wings and IRG worked extremely hard to work out new terms for the project.  After four months’ work with revised terms and timelines, on June 25th the Wings Board of Directors decided to open the process to other potential developers.  The Board respects the work efforts of IRG and its partners, but felt a fiduciary responsibility after 18 months to investigate options with other parties. 

Wings likes very much the latest adaptive re-use scenario which has emerged from the extended redevelopment planning process.  The Lowry Community Task Force and other community members have also welcomed the concept.  Wings will strive to achieve a plan which closely resembles this type of adaptive re-use.  We recognize an urgency to address the continuing deterioration of Hangar 2, and also to continue the estimated $7 million in capital improvements to fulfill the potential of Hangar 1.  We have learned a lot from our planning process, including valuable information from the Task Force and from many meetings with our Lowry and Denver neighbors.  We will continue on the path of progress and growth upon which we have embarked.

What is the new landscaping plan for Hangar 1?

As evidence of Wings’ commitment to continuing improvements for the Museum, a new landscaping plan is being installed in July 2008 around the east and south sides of Hangar 1 (east of the B-52).  These plans advance the 2007 improvements already made to the Hangar 1 roof as well as interior improvements which removed a drop ceiling and enhanced fire protection measures.  The landscaping plan has been approved by the Lowry Design and Review Committee and City of Denver to meet design requirements and meet long overdue parking surface and landscape needs.  The plan will improve and increase parking for Museum and special events, enhance traffic circulation, repair sprinklers, eliminate the blocked drains which cause water after heavy rains to back up all over the Museum floor, improve handicapped access and improve plantings around the facility (to be installed in September).  Some trees will be removed, others saved and/or re-located, while an additional 16 trees will be added along the building and on parking area islands.  Additional exterior improvements, such as elevating the B-52 and entry drives, will await funding availability from Hangar 2 proceeds. 

What happens during the entitlement process, and how is the public involved?

Wings Over the Rockies and its development partners have carefully considered community feedback over numerous meetings during the past year.  As with any urban redevelopment, especially one with historic properties, plans embrace an extensive public process.  In addition to the Lowry Task Force process, public feedback is welcomed through multiple committees that are part of the approval process with LRA.  Zoning changes and traffic impacts require review and approval by the City of Denver.  As Hangar 2 is a contributing structure within a designated landmark district, the Denver Landmarks Preservation Commission’s approval also is required. 

What is the condition of Hangar 2?

Hangar 2 is in extremely poor condition.  Although Wings has paid assessments, fees and insurance on Hangar 2, it has been unoccupied for decades.  Heat, electricity and plumbing have not been utilized.  The roof leaks much worse than Hangar 1 did before its recent new roof.  It is estimated that Hangar 2 would require a minimum of $4.9 million to stabilize its condition, before renovations to suit any future purpose are even considered.

What makes up the $7 million in Wings’ upgrade plans for the Museum?

Several architects and engineers have collaborated with Museum staff to develop estimates for work in and around Hangar 1.  Also contributing to the planning process were three matching grants from the State Historical Fund totaling $235,000, which provided for an historic assessment (2004), engineering study (2005) and roof repair (2006). 

The capital budget for Hangar 1 improvements is devoted to providing for life safety, code compliance and long overdue facility maintenance, as well as efficiencies and improvements in the visitor experience.  Following are some breakouts of these capital improvement estimates:

What are the financial goals for Wings’ long-term stability?

Capital improvements address the most urgent needs of the museum, resulting in a site that will be worthy of our aerospace heritage and potential.  Long-term stability will also depend on financial soundness for sustained operating requirements.  Wings redevelopment needs also include:

$450,000 operating reserves to offset lost income during construction over the next three years and provide contingencies for other unforeseen developments.

$1,500,000 endowment to provide perpetual operating support.  This amount is slightly less than the average museum endowment in the U.S.  (even though Wings is a larger museum than average).

Operating reserves and endowment will be dedicated to museum operations at Lowry.

What is guiding Wings’ plans for the Museum at Lowry?

Wings’ plans are based upon a desire to become a showcase asset representing the aerospace heritage at Lowry, and the distinguished aerospace leadership of Colorado.  The Board of Directors represents extraordinary community leadership, including veterans, educators and business people.  Professional management is augmenting dedicated volunteers, applying best practices from museums around the country to develop facility enhancements, grow educational outreach and serve members, neighbors and the general public. 

What assurances are in place that Wings Over the Rockies will remain at Lowry?

It has always been Wings’ intention to remain at Lowry.  With proper investment for its
future, several Museum commitments exist with regard to Hangar 1’s future:

--Written and oral assurances with LRA that all funds from redevelopment proceeds will remain at Lowry;

--A deed restriction on Hangar 1 requiring it to be used for educational purposes for 30 years, starting in 2001;

--A 50 year covenant on Hangar 1 requiring Colorado Historical Society approval for major exterior changes, beginning in 2006.

How do the Museum’s plans for a second site at Centennial Airport relate to Lowry?

Lowry improvement plans will precede development of a second facility at Centennial.
Virtually all successful major aerospace museums enjoy proximity to an active airport, and Lowry’s full potential as a facility focused on heritage and education will be significantly enhanced by flight activities.    The two sites will complement each other.  Following are benefits that Lowry operations will receive from a Centennial site:

--Expanded museum outreach programming

--Enriched education activities

--Increased storage for collections

--Joint marketing, membership and fundraising programs

--Increased opportunities for rotating exhibits and displays

--Increased historic restoration activities

What is the operating budget of Wings Over the Rockies?

Wings Over the Rockies experienced its third successive year of finishing “in the black” in 2007.  Following are major operating income and expense categories:

What are the qualifications of the Board and management at Wings?

Augmenting dedicated volunteers who provided over 32,000 hours of time to Wings in 2007, the Board of Directors and staff are committed to a successful future at Lowry.  The Board is made up of 28 individuals who work in five standing committees.  15 directors are current or retired business CEO’s; 21 are current or former pilots; 11 are veterans, spanning conflicts from World War II to Operation Iraqi Freedom; 5 are attorneys; 5 have careers in marketing and/or finance; 12 have management careers in aerospace companies; 6 have extensive public service from professional education to State elected office; 3 are women.

Following a period of ten years in which 8 CEOs led Wings, both volunteer and paid, the current Wings staff includes:  CEO with 25 years’ museum experience; Curator with 17 years’ museum experience; Director of Education with 12 years in aviation and education; Director of Marketing & Development with 16 years’ marketing experience; Controller with 39 years’ financial management experience; Director of Corporate Events with 23 years’ experience in sales and marketing; and Museum Store Manager with 7 years’ store experience.

What will happen if a Hangar 2 redevelopment plan does not occur?

After several years of exploring other options, Wings Over the Rockies believes an adaptive re-use concept similar to the latest plan is the best way to fulfill the potential of its historic site and contribute to the Lowry community, Denver and all of Colorado.  A vibrant museum facility with rotating exhibitions, enriching educational programs and exciting events will also honor the dedication of veterans, volunteers, members, staff and generous Board members who have worked for 14 years to develop the best Museum possible in current facilities.  If this plan or something similar does not occur, the long-term viability of Wings Over the Rockies cannot be assured.  More important, the rich aerospace heritage of Lowry and Colorado will fall short of its promise to future generations.