Pavilion Mercato LLC - BIRDSEYE

MY VIEW

9/7/10 - Walking the Profit Line

I see the BirdsEye project as one of the great opportunities in my lifetime. "Opportunity" has a lot to do with time, a lot to do with place. I see this opportunity as the culmination of five generations of my family here in Gloucester in this location. But opportunity also has a lot to do with profit.

I’m proud to say that my father, now 98 years of age, former president of Mighty-Mac, the Gloucester manufacturer of coats - not the richest guy or the biggest company in the community, but a steady source of employment for local people for three generations - and my mother, a Mississippi farm girl, brought me up with the perspective that I should always follow my heart, try my best, and that ...

"Profit is the residual benefit of a job well done."

Because of their love and teaching I can say I’m not afraid of the word "profit". In fact in my lifetime - in the effort of trying to support my family, pay my taxes, run a business, provide employment - I can tell you honestly that I’ve fallen on both sides of the profit line, win and lose. Even in losing I’ve felt incredibly fortunate and blessed to be living in this beautiful, quality community.

But, having experienced both sides of that line, I can also tell you that I have no interest in falling on the wrong side of the profit line on this project or any other project ever again in this life. Been there, done that. No thanks!

This is not just from a "me" perspective, either. What happens when Varian doesn’t make a profit? People get laid off. Everyone suffers.

"Profit is the residual benefit of a job well done."

The emphasis is on the "well done" part. "Profit" is just the "residual benefit". So we’re going to do this job as well as we can. If we do it well enough, the profit will take care of itself.

While we’re on the subject of profit, here’s a different slant on the whole idea. I was amazed when our world class architect, Richard Griffin, broke these numbers down for me. Maybe they’ll surprise you, too.

Including Pavilion Beach, which will have guaranteed public access 24/7/365, the public areas of the BirdsEye development - view corridors, walkways, retail areas, the Mercato (public function space), and the Piazza (public access to Pavilion Beach) - make up 66% of the development’s total area. We’ll be paying for 100% of the project with 33% of the space.

And that’s why the residential component of this project is so important. On this island, in this market, commercial space won’t pay for itself. The cost of building a commercial structure is greater than we can sell or rent it for. So why not do all residential, as it would conceivably be the
most secure and profitable option?

Because our commitment is to do the job well and we believe industrial/commercial/residential diversity spawns sustainability. BirdsEye has the potential to be a multi-purpose facility that synergistically contributes increased employment and tax base. We see BirdsEye to be a balancing of combined energies where people will want to live, work, and play - truly a living community!

Mac Bell & the BirdsEye Team