City of Duluth, Georgia REAL ESTATE OFFERING AND REQUEST FOR PROPOSALS To Develop a Walkable Residential Community in Downtown Duluth

Transcription

1 City of Duluth, Georgia REAL ESTATE OFFERING AND REQUEST FOR PROPOSALS To Develop a Walkable Residential Community in Downtown Duluth Issued by: City of Duluth Downtown Development Authority 3167 Main Street Duluth, Georgia 30096

2 Table of Contents Table of Contents... i SECTION I: Instructions to Proposers... 1 SECTION II: Introduction... 4 SECTION III: Project Background and Site Information... 6 General Background... 6 Previous Studies Site Information Market Area Demographics Redevelopment Objectives City Development Incentives and Terms SECTION IV: Proposal Contents SECTION V: Attachments Page i.

3 March 31, 2015 To whom it may Concern: The Downtown Development Authority of Duluth (DDA) is pleased to offer the following residential development opportunity in Downtown Duluth. As described in this Offering and Request for Proposals, Duluth has been working diligently over the past several years to make our downtown area the cultural, civic and entertainment center of our community. As part of that effort, the City/DDA have spent several years assembling key development parcels and now have under ownership or control, more than 20 acres located within walking distance to City Hall and Downtown. The DDA s intent is to see these assembled parcels developed with quality for-sale housing that will appeal to a growing demographic of millennials and empty-nesters who value proximity to unique mixed-use environments and will patronize our downtown businesses and cultural attractions. We encourage you to take a few moments to review this RFP in order to better understand the real estate and the full scope of this opportunity. You will quickly learn that the DDA is not just seeking to sell vacant land to build new homes. We are offering a highly marketable site in a strong residential location, providing significant financial incentives and making several major public investments to ensure success of this important project for our City s future. The DDA is seeking to partner with an experienced developer who is equally excited by this vision and offers the City the best combination of (a) proven ability to execute the project, (b) delivering housing products that will complement the commercial success of Downtown Duluth, and (c) proposes reasonable compensation for the land under flexible terms. You are unlikely to find a comparably sized community anywhere in Metro Atlanta that has formulated a more thorough strategy, achieved stronger public consensus, completed more due diligence or is better prepared to partner with the private sector on a project of this type and scale. If you are interested in exploring this opportunity further, please do not hesitate to call or the primary contact person identified in the RFP. City staff will be prepared to answer your questions, share all relevant information and assist you in inspecting the development site. On behalf of the DDA and the City, thank you for your interest in Duluth. We look forward to the possibility of receiving your proposal. Enc.

4 SECTION I: Instructions to Proposers The Duluth Downtown Development Authority (DDA) has assembled and is pleased to offer 20+ acres located in Downtown Duluth for the development of for-sale housing. The DDA is seeking proposals from qualified firms that have the experience and capability to develop a forsale residential community, in a manner consistent with the City s objectives. Sections II and III of this RFP provide further details regarding the real estate being offered, including site and market information, a description of ongoing public improvements and private investments which are positively impacting Downtown Duluth, and financial incentives being offered by the City. The requested contents of proposals are outlined in Section IV. 1. Submission Deadline: Responses to this RFQ must be delivered to: City of Duluth - Downtown Development Authority 3167 Main Street Duluth, Georgia at the office of the City Clerk on or before 2:00 PM on Friday, May 22, Unless the Duluth DDA at its discretion chooses to extend this deadline for all interested parties, any submissions received after this specified day and time will be rejected. 2. Minimum Qualifications: Respondents must provide information outlined in Section IV in order to be considered qualified to participate with DDA in this Project. For purposes of this RFP, a respondent may include a single development firm or a team of two or more firms that will assume responsibility for implementing different project components. In cases involving team proposals, the combined qualifications and experience of all team members will be applied to determine minimum qualifications. Respondents who meet/exceed the minimum qualifications may be invited to meet with City/DDA representatives to present their submissions in more detail. Upon completion of the initial evaluation process, the DDA intends to either (a) select qualified developers to continue negotiations and invite best and final offers or (b) choose to enter into negotiations with the one preferred respondent. 3. Limited Offering: The DDA is distributing this offering directly to a pre-screened list of residential developers that we believe possess the experience, financial capacity and potential interest to undertake the project. Other interested parties who have not received this offering directly but believe that they are qualified are also invited to submit a proposal. 4. Acknowledgement of Interest and Submission of Questions to the DDA: Any party who directly or indirectly receives this RFP and is interested in responding is strongly encouraged to notify and send contact information to the City/DDA's primary contact person, Mr. Will Corbin, Economic Development Specialist, by at wcorbin@duluthga.net in order to be placed on a distribution list to receive attachments, subsequent correspondence and addenda related to this RFP. Questions should be submitted in writing to this same address. Questions can be submitted at any time prior to and until 12:00 noon on Friday, May 15, The Duluth DDA reserves the right not to respond to questions received after that date/time. Answers given by the DDA to substantive questions will be provided in writing to all parties who supply their contact information in the form of one or more addenda to this RFP. Only written replies to questions appearing in the Addenda should be relied upon as being official positions of the DDA and/or the City of Duluth and binding upon respondents. Page 1.

5 5. Availability of Electronic Documents: This document and all accompanying attachments and background information referenced herein will be distributed by electronic means. Any responding party accepts full responsibility to ensure that it is responding to the correct version, including any addenda issued by the DDA. The proposer acknowledges and agrees that in the event of a conflict between the RFP in the respondent's possession and the latest version maintained by the DDA, the version maintained by the DDA shall apply. This RFQ document and all attachments can also be obtained by contacting Mr. Corbin via using the above address. 6. Property Inspection: As a courtesy, any interested party who wishes to conduct a site inspection/visit is asked to contact Will Corbin by phone at (770) or by during normal business hours. City officials wish to be informed of any inspection of property that is included with this offering. Staff will be available by appointment to accompany proposers on site inspections conducted during normal business hours between and including the dates of April 20 to May 8, Requests to inspect the interior of the former Methodist Church building described in Section III may also be arranged using this process. Proposers requesting site visits are asked to coordinate their teams so that all needed information can be gathered in a single inspection. 7. Inappropriate Contact: All respondents and/or representatives of respondents are requested NOT to contact any elected or appointed City officials, employees, DDA members or any thirdparty representatives of the City on any matter pertaining to this RFQ, aside from the contact persons designated above. Attempts to make inappropriate contact and/or influence the evaluation of proposals may result in disqualification of your proposal. 8. Submission Requirements: Each proposer is responsible for the costs of preparing and submitting responses to this RFP. Requested contents of submissions are outlined in Section V and the failure to respond fully to those requirements may result in disqualification. Submissions must be signed by a principal of the respondent with the authority to enter into a development agreement or contract with the DDA or in the case of joint proposals, a single individual that is designated to speak for and serve as the primary point of contact for the joint venture/partnership. By submitting a proposal, each respondent acknowledges and agrees that their submission will become the property of the City of Duluth and the Duluth DDA for the DDA's use, without compensation. 9. Packaging of Submissions: Qualification Statements must be sealed and clearly marked identifying the following information on the front of the package: Duluth Downtown Residential Development RFP Response 10. Copies: Respondents are requested to submit one (1) unbound original, and four (4) paper copies of a written Proposal, plus one electronic copy in PDF file format either included with the submission package, or delivered separately via . The unbound original is requested to be submitted on 8.5 x 11" singlesided pages to facilitate reproduction. Respondents are also asked to include a table of contents/index and to organize their presentation into sections which correspond to the order of requirements indicated in this RFP. Only delivery of the sealed submission package by the specified date and time (not electronic copies submitted via ) will be considered responsive to the deadline. If there is any discrepancy in the contents of any submitted paper or electronic copies, the DDA shall rely upon the signed original when evaluating the Submission. Page 2.

6 11. Representations of the Proposer: By submitting a Qualification Statement to the Duluth DDA, the proposer acknowledges, represents and warrants that: (a) it has read the entire RFP and acknowledges and accepts its terms and conditions; (b) the signatory to the proposal is the respondent (or respondent's duly authorized agent or employee with authority to bind the respondent); (c) any information or disclosure provided in the response is an accurate representation as of the submission date; and (d) it agrees that it will voluntarily notify the DDA immediately if any information or disclosure provided to the DDA or City of Duluth during any part of the evaluation process changes, is no longer accurate or would be misleading. 12. Evaluation Process and Criteria: Upon receipt and review of the proposals, the DDA, at its sole discretion, shall determine which Respondents meet or exceed the minimum qualifications and rank respondents in order of qualifications. Submissions will be reviewed by an Evaluation Committee consisting of elected and/or appointed DDA/City officials and City professional staff with expertise in real estate development and related issues. The Committee will conduct an evaluation of the submissions using the following general criteria: a. Experience of the Developer/Development Team in successfully executing comparable residential communities in walkable, in-town settings and which possess characteristics described in the City s objectives for this property; b. Composition and qualifications of development team members, professional staff and consultants assembled to execute the development; c. The applicability of the proposed development vision and program; compliance with and achievement of the City s stated objectives and the usefulness of comments, insights, recommendations and approach to develop the site; d. Evidence of the financial capability of the developer/team to contribute equity and secure necessary debt financing to execute the project; e. The applicability of financial references provided and the input received from those references; and f. The attractiveness of proposed terms and/or framework for negotiating financial compensation. Upon completing its review of written submissions the Evaluation Committee will notify each respondent in writing with respect to whether their submission was complete, whether the submission satisfied minimum qualifications and whether the Committee will consider the proposal further. Before completing its review, the Evaluation Committee may at its discretion submit additional questions to or invite respondents to make oral presentations to the Committee before making a final determination. Proposers should expect that the Evaluation Committee will take a minimum of 30 days to complete its work depending on the number and quality of proposals received. 13. Insurance Requirements: Respondents are advised that the proposer selected to undertake the Project will be required to maintain in effect during the term of the Agreement, at their sole expense, usual and customary insurance coverage with appropriate coverage limits. In general, the DDA will require evidence of the following types of insurance: (a) Commercial General Liability, Bodily Injury and Property Damage, including Contractual Liability and Products/Completed Operations Liability; Page 3.

7 (b) Georgia Statutory Workers Compensation coverage and Employers Liability; (c) Automobile, Bodily Injury and Property damage Liability; (d) Professional Liability and (e) Builders Risk. The City of Duluth must be listed as an Additional Insured on all policies as applicable. These coverages must be secured from insurers and on forms of policies acceptable to the City and include provisions that such insurance cannot be canceled, nor limits reduced, without at least thirty days prior written notice to DULUTH DDA. The selected developer will be required to provide certificates of insurance as evidence that all such insurance is actually in effect prior to commencing work and while work is ongoing, provide like evidence of the extension, renewal, or replacement of expiring or lapsing policies at least 30 days prior to such occurrences, until all work has been completed. promote the revitalization and growth of the City s downtown area. Acting on behalf of the City of Duluth, the DDA has assembled and is pleased to offer approximately 22.3 acres located in Downtown Duluth for the development of for-sale housing. 14. Rejection of Submissions, Cancellation of RFQ or Waiver of Technicalities: The DDA reserves the right to reject any Proposal or all of the Proposals, to waive any technical defect in a Proposal or to cancel this RFP at any time. 15. Protests: Any protest or objection to this RFP or the solicitation process related to the RFP must be submitted, in a timely manner and in writing to James Riker, City Manager for review and response. The City will develop an appropriate response to resolve protests if/when such a protest occurs. SECTION II: Introduction The Duluth Downtown Development Authority (DDA) has been created and exists by virtue of the Development Authorities Law, activated by a resolution of the Duluth City Council. The DDA was established to Figure 1: Approximate Boundaries of Assembled Development Site The DDA s objective is to negotiate an agreement with a qualified developer who is experienced in developing walkable in-town communities. The DDA is distributing this offering directly to a targeted list of residential developers that we believe possess the experience, financial capacity and potential interest to undertake a project of the scale expected at this location. Other interested parties who have not received this offering directly but believe that they are qualified to undertake the project are also invited to submit a proposal. Page 4.

8 This area (the Project Site) has been previously site planned for a mix of more than 100 single family detached homes and attached townhomes, served by a stormwater detention facility to be constructed by the City. The value of the Project Site will also be enhanced by several ongoing and planned public and private improvements in Downtown Duluth. The City Council has given the DDA broad flexibility to negotiate the best combination of financial terms which (a) recapture a portion of the City s initial investment in the short-term, and (b) generate the greatest economic/fiscal benefits from redevelopment over the long-term. This Project Site being offered consists of 7 tax parcels which are under the DDA s ownership or control. Two parcels totaling 9.7 acres have been owned by the City for several years. One of these sites contains a relocated former Methodist Church building that is well-suited to serve as a clubhouse or community building for the development. Three parcels totaling 6.62 acres are under contract to be purchased by the City to construct a centralized stormwater detention facility. That facility will serve both this and other downtown redevelopment projects. A portion of this acreage which is not needed for stormwater detention and open space is available for development for additional housing. (The closing date for the City s purchase of this property is scheduled on or before April 12, 2015.) The remaining assembly consists of two parcels totaling 5.97 acres, which are owned by Capitol Materials, Inc. The DDA has obtained a 9-month assignable option to acquire this key property at a negotiated price of $875,000. As will be demonstrated in the following pages, the City has already completed substantial pre-planning, survey work and site analysis for these properties. Until recently the assembled acreage was under agreement to a development team which had nearly completed the process of rezoning acres for the construction of 68 single-family homes and 33 townhomes. In January of 2015 the developers option period expired and they decided to withdraw the rezoning request, which would have been approved by the City Planning Commission if not withdrawn. The due diligence, plans and exhibits developed as part of that rezoning application are public record. Extensive site information collected by the City is also provided as attachments to this offering. This already assembled information will enable interested parties to understand the Project sites market setting, physical characteristics, development suitability and constraints fairly quickly, saving significant time and cost to respond to this RFP. Acting on the City s behalf, the DDA has been charged with overseeing the disposition of the above-described site assembly to a qualified developer, consistent with Duluth s downtown redevelopment objectives. The DDA is not expecting to receive best and final offers at this time, but intends to continue negotiations with one or more proposers who offer the best combination of creativity in their development proposals, experience in executing similar projects, demonstrated capacity to raise project financing and equity, and a financial framework on which to determine appropriate compensation to the City of Duluth. Depending upon the number and quality of proposals received, the DDA reserves the right to request additional information from some or all respondents or to issue additional requests to advance the review process. This RFP does not obligate the Downtown Development Authority or the City of Duluth to select or negotiate with any development team(s) or to accept offers which the DDA determines, in its sole judgment, are not in the best interest of the Authority or the City. Page 5.

9 SECTION III: Project Background and Site Information General Background In 1997, Duluth began to consider a plan for improving its downtown area when the City Council determined that the existing City Hall could no longer serve the growing needs of the community. The Council s desire to keep the location of City Hall in the downtown led to the formulation of a Downtown Plan that reflected the desires of the public to create a sense of place. The plan called for preserving and reestablishing Downtown Duluth as a community focal point for social interaction. Over time that plan has evolved and today, the City s vision and goals are as follows: New Gwinnett County Public Library: Construction is expected to begin next year on a 20,000 SF public library. The facility will be located across Main Street from City Hall, a short walk from much of the Project Site. Main Street Improvements: The City has allocated $1.0 million in SPLOST funding and has begun construction of parking and streetscape improvements to both sides of Main Street. Promote its small town quality of life Promote a sustainable, walkable community with the creation of greenways and sidewalks Promote compatibility between businesses Ensure a strong positive image for the City Promote the Red Clay Theater and proprietor Eddie Owen Presents Promote Public Art and the Performing Arts through the creation of the Duluth Public Art Commission The City has and continues to invest in important infrastructure to enhance the desirability of its downtown and achieve the vision outlined above. Over the last several years the City has invested more than $15 million to complete a new City Hall, amphitheater, interactive fountain, town green, meeting facility, decorative street lights, landscaping, sidewalks and off-street parking areas. Other projects are currently underway and will continue to enhance both Downtown Duluth as a whole, and the value of the Project Site being offered. Several of these projects are summarized in the following pages. Davenport Road Extension: The City has allocated SPLOST funding to obtain ROW and build new roadway, curbing, gutter and drainage improvements to extend Davenport Rd. across Buford Highway to the Project Site. Construction will be coordinated with the development of the subject properties. Project Site Page 6.

10 Page 7. Duluth Downtown Development Authority

11 Stormwater Management Area/Detention Pond: The City will invest a total of $1.9 million to acquire a site and construct a stormwater detention facility to service new residential development and the new County Library. The City obviously encourages offers to proportionally share in the cost of this facility as part of a total compensation package for the Project Site. However the City has not set specific costs or fees to access this important and costly piece of site development infrastructure. Buford Highway Medians: GDOT and the City of Duluth have approved SPLOST funding for the construction of landscaped medians along Buford Highway from Davenport Road to SR 120. Construction is anticipated to commence in Red Clay Music Foundry: Duluth has invested approximately $3.14 million in acquisition costs and recent improvements to the Cityowned Red Clay Theatre. The DDA also recently renewed a 5-year contract with Eddie Owen Presents to operate a 250 seat theatre and the Gwinnett School of Music at this venue. The facility is averaging 15 live music shows per month and generates steady visitation to Downtown. A marquee sign is in process of being designed for the landmark venue. Figure 2: Section of property survey and detention pond design (See attachments for complete survey) Page 8.

12 Realignment of State Route (SR) 120 from Hill Street to Buford Highway: The City has allocated $1.97 million in SPLOST funds to construct intersection improvements, signals, curb, gutter and drainage improvements, sidewalks and landscaping along a section of Main, Abbotts Bridge and West Lawrenceville Streets. Construction is ongoing. The Block Parsons Alley - The Block: The Block is a proposed 35,000+/- SF, multi-tenanted commercial development which includes the former Duluth City Hall and adjacent commercial buildings that have been assembled by the DDA. The project is in design and the City has already committed to participate in project financing, including construction of a public plaza serving 8 commercial Page 9.

13 buildings, which are expected to be tenanted by multiple restaurants and retailers. The first occupant will be Dreamland BBQ, which has already reached agreement with the City and broken ground on the construction of a 6,500 SF restaurant. The remainder of the site is being planned as a collaboration between Fabric Developers and Vantage Realty Partners, which is well known for successful chef-driven restaurant design and development. Site. The development is expected to be anchored by a Sprouts Farmers Market and will include 330 luxury rental homes. Design and construction cost estimates are being prepared for the plaza and the remaining buildings, which have attracted strong tenant interest. Total development costs for all components are projected to be in the $7.5 to $8.5 million range including public improvements and construction should begin in Combined with the nearby Red Clay Music Foundry, the Block is expected to establish Downtown Duluth as a prominent dining and entertainment destination for the surrounding area. Sugarloaf Market: The City has recently issued permits to Fuqua Development, which is undertaking an approximate $90+ million mixed use development at the intersection of Sugarloaf Parkway Peachtree Industrial Boulevard, less than 2.5 miles from the Project Gwinnett Medical Center Expansion: In 2013 the Gwinnett Medical Center acquired a 9+ acre, 72,000 SF shopping center located adjacent to its existing 27-acre, 111-bed hospital campus. GMC-Duluth is located roughly 1.5 miles from the Project Site. As shown in the following Facility Master Plan, the acquired site will be developed as an outpatient park that will employ another 100 workers. The master development plan also calls for construction of additional hospital expansion space, outpatient services, medical offices and structured parking on the main campus. Page 10.

14 on the Community Development web page under the Plans and Studies section. Implementation Plan for the Revitalization of Downtown Duluth (completed in 2014); Downtown Duluth/Buford Highway Corridor Redevelopment Plan and Tax Allocation District #2 Downtown Duluth (completed 2013); Atlanta Regional Commission Livable Centers Initiative Study for Downtown(LCI) - (completed 2000 and updated 2011); Downtown Overlay Ordinance - (completed 2008); Atlanta Regional Commission Community Choice Program for Downtown Zoning (completed 2012); Sewer Master Plan Clark Patterson Lee completed a sewer master plan that identifies locations for extension of sanitary sewer service within the downtown area. Site Information Previous Studies Since 1997, the City has commissioned numerous studies and assembled documents that will be useful references for parties interested in responding to this RFP. This information addresses Downtown Duluth as a whole as well as the specific properties that are included in this offering. The following studies provide a useful perspective on past efforts and future City objectives for its downtown. Copies are available for viewing and download by visiting the City s website The tax parcels included in this offering are shown in the map on the next page. These properties were assembled in the order indicated and all site surveys, environmental reports and other documents were prepared at the time of the associated transactions. Also provided is a table summarizing relevant tax parcel data downloaded from the Gwinnett County GIS. Areas 1 and 2 are already owned by the City/DDA, Area 3 is under contract to be purchased by the City on or before April 12, 2015 and Area 4 is secured under an assignable option for purchase at a predetermined price, until December 31, In 2010, the City of Duluth purchased an 80-0 right of way through Area 4 for the future construction of Davenport Road, which would extend from the Public Page 11.

15 Safety building on Buford Highway. The extension also includes an atgrade railroad crossing and connection to Main Street and Hill Street. As part of the right-of-way purchase, the current property owner vacated the property in 2013, making it available for acquisition and redevelopment. It is anticipated that the exact limits and alignment of the Davenport Road right-of-way will be negotiated with the selected developer to correspond with future plans. Additional relevant available site information for each of these areas is highlighted in the following section: The assembled properties are largely undeveloped with the exception of a handful of industrial out-buildings/structures which will require demolition. The only building with reuse-potential is the historic Duluth Methodist Church. The church building, constructed in 1873, is one of the oldest in Duluth and was moved to the property in Given its age and importance, the City desires to have it incorporated into any future development plan for the property. However, there are no restrictions on making the building available for public use. The Site Plan prepared by TSW shows this structure being used as an association clubhouse with an adjacent outdoor event space and pool. Figure 3: Former Duluth Methodist Church Relocated to Hardy Industrial Blvd., A.K.A. Harris Street Page 12.

16 Area 1 Area 2 Area 3 ALTA Survey North Star Area 1.pdf - ALTA/ACSM Land Title Survey of acre and acre parcel, including locations of existing buildings and structures. APAC Environmental Site Assessment.pdf - Report of Phase I and Phase II Environmental Site Assessments: Couch Asphalt Plant, Duluth, Georgia June 21, 2000 prepared by Qore Property Sciences. Duluth Asphalt.pdf Release Notification Form and associated documentation submitted to the Georgia EPD and Agency Response; August, ALTA Survey Hill Street Area 2.pdf - ALTA/ACSM Land Title Survey of 3.46 acre parcel. Phase I Towne Park Place.pdf - Phase I and Phase II Environmental Site Assessment: Towne Park Place Hill Street at Ridgeway Road, Duluth, Georgia February 22, 2010 prepared by IVI Assessment Services, Inc. Duluth Stormwater Pond E ALTA Sheet pdf Duluth Stormwater Pond E ALTA Sheet pdf These files contain an ALTA/ACSM Land Title Survey of a 1.99 AC, 0.95 AC and 3.68 AC parcel, including a preliminary design of a stormwater detention pond. Area 4 ALTA Survey Capitol Materials Area 4.pdf - ALTA/ACSM Land Title Survey of a AC, AC parcel and AC ROW, including locations of existing buildings and structures. Option Agreement Copy of executed option agreement by and between Capitol Materials Corporation and the Duluth Downtown Development Authority dated March 23, Related Documents _DowntownDuluth_LotFitPlan.pdf _DowntownDuluth_SpotGradingPlan.pdf _DowntownDuluth_SitePlan.pdf Separate lot fit, topo/grading and site plans showing 101 total units and a clubhouse/pool structure, prepared by TSW in October of ALTA Survey Parcel pdf and ALTA Survey Parcel pdf ALTA /ACSM Land Title Surveys of two adjacent residential parcels (additional potential acquisition sites not under City control) located between North Star Blvd and the Southern RR. Duluth Library.pdf April 17, 2014 Letter from Glenn Stephens, County Administrator, confirming the allocation SPLOST funds for public library relocation projects and indicating the County s intent to jointly proceed with planning a one-story facility at the proposed Downtown Duluth location. Page 13.

17 Details / Owner Information Owner Address Assessment Neighborhood Parcel ID (PIN) PIN Address Owner Name 1 Owner City R RIDGEWAY RD DULUTH DOWNTOWN DEVELOPMENT AUTHORITY 3167 MAIN ST DULUTH R NORTH STAR BLVD NORTH STAR PROP 464 BISHOP ST NW ATLANTA R NORTH STAR BLVD CAPITOL MATERIALS INC 464 BISHOP ST NW ATLANTA R PEACHTREE (OFF) RD DULUTH DOWNTOWN DEVELOPMENT AUTHORITY 3167 MAIN ST DULUTH R NE OLD PEACHTREE (OFF) RD DKT MANAGEMENT LLLP 3221 HILL ST DULUTH R HILL ST DKT MANAGEMENT LLLP 3221 HILL ST DULUTH R HILL ST DKT MANAGEMENT LLLP 3221 HILL ST DULUTH 9045 Details / Property Information Parcel ID (PIN) Property Class Description Legal acres Dwelling Value (appraised) Land Value (appraised) Total Value (appraised) Dwelling (assessed) Land Value (assessed) Total Value (assessed) City of Duluth 3.46 $0 $625,500 $625,500 $0 $250,200 $250, Commercial Vacant Land 0.64 $0 $14,200 $14,200 $0 $5,680 $5, Warehouse 5.33 $230,000 $428,000 $658,000 $92,000 $171,200 $263, City of Duluth 6.22 $0 $154,500 $154,500 $0 $61,800 $61, C/I Auxiliary Improvement 3.68 $11,200 $143,300 $154,500 $4,480 $57,320 $61, Commercial Vacant Land 0.95 $0 $23,800 $23,800 $0 $9,520 $9, Commercial Vacant Land 1.99 $0 $236,800 $236,800 $0 $94,720 $94,720 TOTALS: $241,200 $1,626,100 $1,867,300 $96,480 $650,440 $746,920 Details / Sales Information Parcel ID (PIN) 1 - Sale Date Sale Amount Deed Book Page 2 - Sale Date Sale Amount Deed Book Page 3 - Sale Date Sale Amount Deed Book Page /12/2014 $ /12/2013 $500, /4/2010 $ 1,510, /28/2006 $1,350, /12/2014 $ /29/2000 $ /31/2000 $ /1/2004 $ /1/2004 $ /14/1994 $ 163, /1/2004 $ Details / Building Information Parcel ID (PIN) PIN Address Improvement type Building type Year built Stories Attic Main Floor(s) finished area NORTH STAR BLVD COMMERCIAL Storage Warehouse: None 13, NORTH STAR BLVD COMMERCIAL Storage Warehouse: None 8, NORTH STAR BLVD COMMERCIAL None 2, NE OLD PEACHTREE (OFF) RD OTHER TOTALS: 24,422 Source: Gwinnett County GIS Records and Bleakly Advisory Group, Inc. Summary Property Information Duluth Downtown Residential Development Offering Page 14.

18 Market Area Demographics In 2013 the City retained Tunnell-Spangler-Walsh & Associates and Morris & Fellows, Inc. to prepare an Implementation Plan for the Revitalization of Downtown Duluth. Pages 88 to 102 of that report contain 0-5, 0-10 and 0-15 minute drive time demographic market profiles for Downtown Duluth. The report also compared Duluth s demographic characteristics with similar drive time measurements for Downtown Woodstock, Smyrna and Suwanee, which were identified by the consultants as the most comparable examples of successful suburban revitalization. Demographic data for all areas were presented as 2017 forecasts. The comparison found that among the four 15-minute drive times measured, the market surrounding Downtown Duluth had: The largest 2017 total population: 447,150 The highest median home value: $199,930 The highest median household income: $82,415 The largest % of h holds earning >$100,000: 38.8% The youngest median age: 33.8 The analysis concluded that Duluth has even more potential than the other three cities used as comparison in key market demographics and that taken together these metrics add up to the conclusion that there are sufficient numbers of potential consumers with the affluence to support the transformative restaurant and retail elements [of the Plan], creating a critical mass of support. The summary table presented on page 90 of that report appears on this page. A CoStar Demographic Detail Report obtained by the City to support planning for The Block provides detailed demographic and housing information for one, three and five-mile rings of Downtown Duluth. The following points highlight characteristics of the three-mile ring, which covers a significantly smaller geography than the 15-minute drive-times. These findings reinforce the Esri data and show the presence of a comparatively affluent and well educated population concentrated within a close proximity to the project site: A total 2014 population of 59,700, including 5,800 persons aged 65 and older. Median age in 2014 was estimated at 37.9 years; More than 22,400 existing households, projected to increase by 10% over the next five years. Nearly 28% of these households earned incomes above $100,000 in 2014 and 62.5% are homeowners; Among persons aged 25 and older, 75.7% of the population has been educated beyond high school, including 43.4% attaining Bachelors or advanced degrees; More than 71% of the working-age population is in the labor force, with an unemployment rate below 4.8% in Local labor force participation is substantially above and unemployment substantially below the state and national averages; More than 122,200 jobs, double the resident population, are located within three miles of Downtown Duluth. Included within this total are more than 32,000 positions in finance, professional and management, services, information, education, health and related occupations; Page 15.

19 Of the estimated 14,000 owner-occupied housing units located within the 3-mile ring, more than 4,000 (28.9%) were valued above $300,000 in Only 674 total housing units (owner and renter) were estimated to have been constructed since 2010 (a 3% increase) and less than 1.4% of all housing was classified as vacant in SMARTNUMBERS PRICE RANGE SUMMARY: TOWNHOMES Finally, Bleakly Advisory Group, Inc. (BAG) obtained SmartNumbers price range summary and statistical reports for sales of new singlefamily homes and townhomes occurring within 5 miles of the project site. The data count sales of new construction only, dated from January 1, 2013 through January of this year. Home sales within the 5-mile ring have averaged 11 SF and 6 TH per month since January of 2013, with an average sale price of $394,000 and $267,100, respectively. Sales by price range are detailed on this page, followed by more detailed data by project. SMARTNUMBERS PRICE RANGE SUMMARY: SINGLE-FAMILY DETACHED As shown on the following table, most of these projects and sales are located 3 to 5 miles from Downtown and a significant portion are in Fulton County. Page 16.

20 Smart Numbers Summary Report: January 2013 though February, 2015 (25 Months) Five Mile Ring of Duluth City Hall Total Sales Records Sample Data Units Market Minimum Maximum Total Average Average Bsmt Slab Lot Size Rank Subdivision Name Sold Share Sale Price Sale Price Volume Sale Price SF Price/SF Price/SF (Acres) Single Family Detached 1 BENTWOOD AT SUGARLOAF % $275,000 $454,725 $28,017,616 $350,220 3,269 $ $ JOHNS CREEK STATION % $357,475 $494,191 $14,143,013 $428,576 3,478 NA $ BAXLEY RIDGE % $229,900 $318,056 $7,595,822 $271,279 2,635 $ $ CHELSEA FALLS % $240,990 $346,110 $6,469,156 $281,268 2,790 $ $ STONEGROVE OVERLOOK % $352,229 $523,650 $9,207,009 $418,500 3,452 $ $ VILLAS OF JOHNS CREEK SFD % $271,400 $357,755 $6,643,062 $316,336 2,591 NA $ BROOKHAVEN AT JOHNS CREEK SFD % $411,380 $563,484 $7,451,993 $465,750 8 LAKES AT SUGARLOAF % $278,500 $382,002 $4,884,882 $325,659 3,138 $92.07 $ PEARL AT ST IVES 9 3.2% $740,968 $923,414 $7,232,083 $803,565 4,124 $ NA TAVISTOCK 8 2.9% $490,000 $764,534 $5,035,574 $629,447 3,915 $ NA GATES AT JOHNS CREEK 6 2.2% $339,900 $359,900 $2,089,100 $348,183 2,902 NA $ RIVER DISTRICT AT BERKELEY LAKE 3 1.1% $500,000 $570,000 $1,590,000 $530,000 - NA NA WINTHROP PARK 3 1.1% $750,000 $779,365 $2,304,816 $768,272 4,678 $ NA HIGHLANDS AT DULUTH 2 0.7% $280,000 $315,000 $595,000 $297,500 2,819 NA $ JOHNS CREEK WALK 2 0.7% $376,000 $410,000 $786,000 $393,000 - NA NA SUGARLOAF COUNTRY CLUB 2 0.7% $899,900 $1,026,337 $1,926,237 $963,119 4,720 $ NA BECKTON HALL 1 0.4% $400,000 $400,000 $400,000 $400, ENCLAVE ON JOHNS CREEK 1 0.4% $514,400 $514,400 $514,400 $514,400 3,606 $ NA GREENWICH PARK 1 0.4% $1,155,976 $1,155,976 $1,155,976 $1,155, NOURS LANDING 1 0.4% $361,000 $361,000 $361,000 $361,000 2,951 $ NA OLD TAYLOR FARM 1 0.4% $1,000,000 $1,000,000 $1,000,000 $1,000,000 5,000 $ NA PEACHTREE RESERVE 1 0.4% $601,114 $601,114 $601,114 $601,114 TOTALS: % $229,900 $1,155,976 $110,003,853 $394,279 3,165 $ $ Townhomes 1 BROOKHAVEN AT JOHNS CREEK % $293,000 $386,744 $16,413,764 $341,953 2,446 NA $ NA 2 SUWANEE STATION % $176,000 $200,000 $6,237,430 $183,454 1,598 NA NA NA 3 BROOKHAVEN AT SUGARLOAF % $246,864 $308,184 $9,017,807 $281,806 - NA NA NA 4 ARLINGTON POINTE % $249,900 $307,300 $3,891,020 $277,930 2,580 NA NA NA 5 VILLAS OF JOHNS CREEK % $221,257 $259,584 $3,150,973 $242,383 1,651 NA NA NA 6 BERKELEY CHASE % $190,765 $206,500 $2,184,721 $198,611 1,989 NA NA NA 7 HAMPSHIRE PLACE 5 3.1% $230,000 $239,200 $1,165,893 $233,179 1,884 NA NA NA 8 TOWNE PARK PLACE 3 1.9% $219,975 $232,500 $672,450 $224,150 2,100 NA NA NA TOTALS: % $176,000 $386,744 $42,734,058 $267,088 1,944 NA $ NA Notes: [1] Total sales listed in this table are equivalent to the price range summary. Average unit SF, lot sizes and sales prices per SF are from a smaller sample for which data was available. [2] This table includes projects and sales located in both Fulton and Gwinnett Counties Source: SmartNumbers and Bleakly Advisory Group, Inc. A review of active new home developments surrounding Downtown Duluth show several projects selling single family detached and townhome products which are priced well above the potential cost of units which could be feasibly constructed on the site being offered in this RFP. Page 17.

21 Redevelopment Objectives The City s desired redevelopment is a mix of detached and attached for-sale units which should be designed and appointed to attract young professionals, empty nesters and retiring baby boomers. The project should be high quality and include design amenities intended to appeal to demographic groups which are attracted to in-town living and will patronize a vibrant downtown business district. The City Council has in the past considered marketing all or part of the Project Site for upscale multi-family rental housing targeting a similar demographic. But with the recent permitting of 330 apartments at Sugarloaf Market, multifamily housing is no longer a preferred option. However, the City Council would consider alternatives to include rental housing within the overall unit mix IF such a site plan is demonstrated to offer exceptional financial or community benefits. The City is in support of the creation of a vibrant neighborhood to complement current and future downtown businesses. The development should address the following objectives: Create a dynamic residential community with a minimum of 100 units, which seamlessly fits into the existing downtown area. Provide housing opportunities designed to attract young professionals and retiring baby boomers. Include amenities to attract the desired demographic groups that may include but not be limited to appropriate interior floor plans and finishes, a community building, pool, outdoor gathering areas, etc. Preserve and repurpose the existing Methodist Church structure on the property. City Development Incentives and Terms The City and DDA came very close to concluding an agreement with a development team in However, the previous applicant withdrew its rezoning application on December 15, 2014 due to issues regarding subsurface soil conditions found on a portion of the City s property (Area 1). Discussion of this agenda item appears in the Planning Commission s Meeting minutes which are posted on the City web site. Included in the December 15 meeting minutes is a paragraph in which the applicant notes that additional testing would be required and that the problem was too substantial to overcome, economically. However, a second representative of the applicant s team, which was brokering the site on the City s behalf, also stated that a solution could be reached with the soil issue, which may cause a slight revision of the site plan, although nothing in scope and spirit. This representative also indicated at the time that his firm was in conversations with another builder and would request an extension of its agreement with the City in order to secure an alternative developer for the assembled site. However, the Duluth City Council subsequently decided not to take action to grant a further extension of that agreement. The previous experience and discovery of unsuitable soil conditions on a portion of the development site has led the DDA/City to offer the following new incentives to a new potential developer partner: Ownership and Control: The DDA has now optioned Area 4 and will soon close on the purchase Area 3. These actions have enabled the City to acquire ownership or control of the entire assembly and convey the development site directly to qualified developers. Page 18.

22 Page 19. Duluth Downtown Development Authority

23 Availability of Suitable Fill: Any suitable fill made available from the City s construction of the adjacent stormwater detention pond will be offered to the selected developer to address soils issues found anywhere on the balance of the Project Site. City Grants for Sewer Infrastructure: The City of Duluth has set aside a prior year SPLOST fund for unspecified sanitary sewer system extensions and improvements. The City Council can determine that this project qualifies and can entertain an application to access those funds for the extension of sewer lines into the property. The total amount and City funding for sewer line extensions should equal or exceed the cost of correcting unsuitable soils. Access to Stormwater Detention: The City s investment of approximately $1.9 million to build a detention pond within Area 3 will substantially reduce the per lot cost to collect stormwater runoff. As previously noted, there is no requirement in this RFP for the selected developer to share in the construction cost of this major infrastructure item, which is being reimbursed through Tax Allocation District funds. Flexible Compensation Terms: The execution of a purchase contract for the assembled property must include execution of the assignable option agreement with Capitol Materials, Inc. parcel (Area 4). However, the amount, timing and terms of compensation for the remaining City-owned property is open to negotiation. The City would consider an up-front purchase of the entire assembly, a phased takedown, compensation on a lot-release basis or some combination thereof. The City/DDA will select a developer who offers the best combination of quality product and compensation terms which, in the City s sole judgment, best accomplishes longterm redevelopment objectives for Downtown Duluth. Tax Allocation District (TAD) Financing: The City has chosen to dedicate future TAD proceeds to construction of the stormwater detention pond. That investment, plus the offering of a potential sewer infrastructure grant should be sufficient to offset any perceived excessive site development cost or risk. The selected developer will be expected to absorb the cost of removing approximately 24,000 SF of outbuildings and non-building structures identified in property tax records. The City and its TAD Advisory Committee would be open to receiving an application for TAD funds from the selected developer, in accordance with established policies and procedures, IF the use of said funds is shown to produce exceptional benefits and/or produces sufficient tax increments to repay the public investment. SECTION IV: Proposal Contents This RFP is seeking responses from qualified developers who are interested and experienced in building sustainable, walkable in-town communities. In this context, the terms Developer and Developer Qualifications apply to the development entity itself and the proposer s professional team assembled to execute the project. The City is seeking a developer and supporting professional team that possesses the strongest combination of the following qualifications and experience. Experience in developing high-quality, innovatively designed market rate for sale housing in developments involving 100 units or more; Page 20.

24 Experience in developing projects within similar in-town settings throughout the Atlanta metro region, particularly in suburban locations which are comparable to Downtown Duluth. Evidence of a strong financial position, access to bank financing and a well-performing current project portfolio. 1. Section I Cover Letter: Responses should include a cover letter providing an introduction to the company, the respondent s professional team and the firm s areas of expertise. The letter should: a. Include the name, address and telephone number of the firm and the person who will serve as the DDA s primary point of contact during the evaluation phase; b. Identify the organizational structure of the firm or team, as well as the names and addresses of principals. List the composition of the development team; c. Outline the team s professional qualifications and experience in development, financing and marketing of comparable residential communities; d. Summarize why the firm is interested in this project; and e. Be signed by an authorized representative with the authority to negotiate with the City/DDA and commit the Proposer or the Proposer s team to a development agreement if selected. 2. Section II Proposed Development Vision and Program: Describe the overall vision and recommended development program for the assembled properties. This may be based on the site plan already prepared and provided with this RFP, or reflect the Proposers additional thoughts and analysis. At minimum this section should provide a description of the proposed project that includes: a. A conceptual site plan and unit counts for attached and detached products; b. Illustrations and estimated price ranges for proposed units to be offered including photographs, renderings or floor plans as applicable; c. A preliminary estimate of the total construction cost and end value of the development (for TAD financing purposes); d. Alternate plans if more than one concept is under consideration (i.e. a multi-family component); e. Estimate a phasing plan for the overall development. 3. Section III Development Team Experience: At a minimum, this section must contain sufficient information to enable the DDA to identify and understand the entity of the proposer. Provide the complete legal name, the location of the respondent and the names/locations of all legal entities that comprise the respondent if proposing as a team. Also provide brief history and describe the legal structure of the entity. In the case where the respondent is a partnership, joint venture or affiliation of two or more firms, please provide information for all participants and the nature of the relationship. This should include a brief description of the respective roles, rights and responsibilities of the parties. If applicable, the respondent should include a statement and/or organizational chart that clearly identifies the level of authority vested to each individual within the team s management structure to make decisions. In addition this section should address the following: Page 21.