REQUEST FOR DEVELOPER PROPOSALS (RFP)

Transcription

1 REQUEST FOR DEVELOPER PROPOSALS (RFP) SEEKING A MARKET RATE MIXED USE TRANSIT ORIENTED DEVELOPMENT STATEMENTS DUE TO TACOMA COMMUNITY REDEVELOPMENT AUTHORITY SEPTEMBER 15, 2017 NO LATER THAN 5:00 PM TOD SITE ALONG MLK BUSINESS CORRIDOR CENTRALLY LOCATED HILLTOP BUSNESS DISTRICT MIXED USE MARKET RATE MULTIFAMILY RESIDENTIAL SITE ALONG FUTURE LINK LIGHT RAIL ROUTE; COMING 2020 PIERCE TRANSIT LOCAL/REGIONAL BUS ACROSS THE STREET FROM PEOPLES PARK THE TACOMA COMMUNITY REDEVELOPMENT AUTHORITY AND WITHIN BLOCKS OF A MAJOR GROCERY (TCRA) IS SEEKING HIGH DENSITY MIDRISE MARKET RATE MULTIFAMILY INFILL PROJECT FOR THIS PROPERTY LOCATED STORE, RESTAURANTS AND HOSPITALS. NEAR MAJOR EMPLOYERS, EDUCATIONAL INSTITUTIONS AND CENTRALLY LOCATED NEAR MAJOR CULTURAL AMENITIES. EMPLOYERS LIGHT RAIL COMING IN 2020 EASY ACCESS TO DOME TRANSIT FACILITIES FOR SOUNDER AND BUS SERVICE TO SEATTLE FEASIBILITY STUDY AVAILABLE (SEE ATTACHMENT) LETTERS OF INTEREST MUST INCLUDE: 9th Street MLK Jr Way SHANNON JOHNSON Project specialist sjohnson3@ci.tacoma.wa.us SITE PLAN, COLOR RENDERING & DESCRIPTION, INCLUDING NUMBER/TYPE OF UNITS; DEVELOPMENT TEAM S QUALIFICATIONS INCLUDING 3 EXAMPLES OF RECENT PROJECTS; PROPOSED CAPITAL INVESTMENT, SOURCES AND USES AND FINANCING PLAN; LETTER FROM A BANK TO SUPPORT FINANCING THE PROJECT; ANTICIPATED SCHEDULE INCLUDING DESIGN, PERMITS, AND CONSTRUCTION. Tacoma community redevelopment authority City of Tacoma CED department / housing division 747 market street room 900 Tacoma, WA

2 SITE HIGHLIGHTS APN: (EXISTING BUILDING PARCEL), , , LAND: 29,245 SF WITH 130 DEPTH ON 9TH ST AND 210 FRONTAGE ON MLK IMPROVEMENT: 18,240 SF COMMERCIAL BUILDING CONSTRUCTED IN DESIG- NATED AS NON HISTORIC ASSESSED VALUE: $1 MILLION ZONING: : (NCX) NEIGHBORHOOD COM- MERCIAL MIXED-USE. CENTER: HILLTOP NEIGHBORHOOD, HEIGHT: 65 FT MAX W/ BONUS LEVEL 1 HEIGHT LIMIT NO IMPACT FEES STATE ENVIRONMENTAL POLICY ACT ( SEPA ) PREAPPROVED NO RECOGNIZED ENVIRONMENTAL CONDI- TIONS MAIN STREET-TYPE RETAIL FRONTAGE ALONG MLK RESIDENTIAL FRONTAGE ALONG REAR ALLEY ANTICIPATED TERMS DEVELOPMENT SCHEDULE DEPOSIT AGAINST PURCHASE PRICE DUE WITHIN 30 DAYS OF DEVELOPER SELECTION. $100K REFUNDABLE AND APPLIED TO ESCROW PURCHASE PRICE, AT FAIR MARKET VALUE, LESS DEMOLITION OF EXISTING STRUCTURE (BASED ON AN UPDATED APPRAISAL) SCOPING MTG W/IN 90 DAYS OF SELECTION CONSTRUCTION PLANS SUBMITTED W/IN 1 YEAR OF SELECTION TITLE TRANSFER UPON ISSUANCE OF THE BUILDING PERMIT BREAK GROUND W/IN 90 DAYS OF RECEIVING PERMITS 12 YEAR MFPTE REQUIRED; 20% OF UNITS TO BE AT 80% AREA MEDIAN INCOME (AMI) DEMONSTRATED BANK FINANCING W/IN 120 DAYS OF SELEC- TION BUILDING DESIGN MAX 114 RESIDENTIAL UNITS (PARKING BASED ON MARKET DEMAND) MUST REMAIN WITHIN 80% OF AVAILABLE SPACE MIN. 3-5 ALLEY FACING UNITS GROUND FLOOR WORK/LIVE MIN. 7K SF GROUND FLOOR RETAIL / RESTAURANT PREFERRED AT 9TH & MLK ROOF DECK MUST ACTIVATE ALLEY (LIGHT,ING, PATIO FACING ALLEY) Tacoma, WA, population 202,000, is located on Puget Sound in a metropolitan area of 3.4 million. 54-percent of working Tacomans commute to jobs outside the city, including Joint Base Lewis McChord (66,000 employees) and Seattle, both accessible by transit at the project site. Major downtown Tacoma employers served by transit include MultiCare and Franciscan health systems (11,000), University of Washington Tacoma (2,500) and State Farm Insurance (1,300). Tacomans enjoy an outstanding quality of life due to a mild climate, access to quality medical care and education resources and a human-scaled built environment. The City s vibrant arts sector includes world class museums, live theater and dozens of galleries, art studios and shops accessible by Tacoma Link. A vast network of bicycle and walking paths connects unique coffee shops, boutiques, eateries and pubs as well as natural and recreation areas. Recreation options include kayaking on the Thea Foss Waterway, golf at Chambers Bay, hiking or the zoo at Point Defiance Park, fishing, major concerts at the Tacoma Dome, and Mt Rainier National Park (59 miles). Tacoma is 34 miles from Seattle and 25 miles from Olympia.

3 WHY BUILD HERE? HILLTOP BUSINESS DISTRICT MORE THAN 11,000 EMPLOYEES WORK AT REGIONAL HOSPITALS AND MEDICAL FACILITIES WITHIN 7 BLOCKS OF THE PROJECT SITE. ST JOSEPH S $21.6 MILLION EXPANSION AND RENOVATION PROJECT COMPLETED IN 2017 AND PLANS TO EX- PAND FURTHER IN THE NEXT 4 YEARS. LINK LIGHT RAIL EXTENSION IS PLANNED FROM DOWNTOWN ALONG MARTIN LUTHER KING JR WAY WITH TWO STATIONS WITHIN 4 BLOCKS OF THE PROJECT SITE. NEARBY MAJOR EMPLOYERS: MULTICARE, COMMUNITY HEALTHCARE, ST JOSEPH S HOSPI- TAL, TACOMA SCHOOL DISTRICT, PIERCE COUNTY, CITY OF TACOMA, AND BATES TECHNICAL COLLEGE. MAJOR MIXED USE DEVELOPMENT AT 11TH AND MLK BREAKING GROUND IN SUMMER 2018 W/ 247 MULTIFAMILY UNITS, AND 18,000 SQ FT OF COMMERCIAL SPACE AMENITIES OF THE HILLTOP BUSI- NESS DISTRICT INCLUDE PROXIMITY TO AND VIEWS OF MT. RAINIER, PU- GET SOUND/THEA FOSS WATER- WAY, AND ACCESS TO A VARIETY OF SHOPS, BREWPUBS, RESTAU- RANTS, MUSEUMS AND MUSIC WITHIN WALKING DISTANCE. TACOMA IS A LOCATION OF HOUS- ING CHOICE FOR EMPLOYEES IN THE REGION DUE TO AN ENHANCED QUALITY OF LIFE AND LOWER RELA- TIVE COSTS. RENTAL RATES IN THE HILLTOP NEIGHBORHOOD AVERAGE MORE THAN $1.50/SQUARE FOOT AND THE OCCUPANCY RATE EXCEEDS 99%. IN 2016, TACOMA REALIZED A RENT INCREASE THAT RANKED FOURTH IN THE STATE AND WAS RANKED BY TRULIA AS ONE OF THE TOP TEN U.S. HOUSING MARKETS TO WATCH. TACOMA WAS RANKED AS 10TH MARKET NATIONWIDE FOR MULTIFAMILY INVESTMENT IN 2017 by FREDDIE MAC.

4 HILLTOP BUSINESS DISTRICT IS FAVORABLE FOR DEVELOPERS HIGH DEMAND. MULTIFAMILY VACANCIES IN THE DOWNTOWN AREA ARE AT 1% SEPA PRE-APPROVAL. TACOMA CITY COUNCIL HAS APPROVED THE HILLTOP SUBAREA PLAN MEANING THAT DEVELOPMENTS CONSISTENT WITH THE PLAN REQUIRE NO SEPA REVIEW, EXCEPT FOR TRAFFIC CONCURRENCY. MULTIFAMILY PROPERTY TAX EXEMPTION. A MULTIFAMILY PROJECT AT THIS LOCATION WILL RECEIVE AN EXEMPTION ON 100% OF RESIDENTIAL IMPROVEMENT VALUE, INCLUDING THE VALUE OF PARKING RE- STRICTED TO RESIDENTS. ONLY CONSIDERING 12-YEAR EXEMPTION FOR PROJECTS WITH 20-PERCENT OF UNITS AFFORDABLE AT 80% OR LESS OF AREA MEDIAN INCOME. NO IMPACT FEES. NO IMPACT FEES ARE IMPOSED FOR PARKS, TRAFFIC, SCHOOLS OR OTHER AMENITIES IN TACOMA. EASY ACCESS TO PACIFIC TRANSIT FREE COMMUTER TRAIN EASE OF PERMITTING. TACOMA IS BIG ENOUGH TO HANDLE COMPLEX PROJECTS BUT SMALL ENOUGH TO HAVE A CUSTOMER-FRIENDLY APPROACH. TACOMA USES THE ONLINE PROGRAM, ACCELA, TO MANAGE PERMITTING AND ALSO ASSIGNS A PERMIT COORDINATOR TO ASSIST DEVELOPERS WITH PERMIT SYN- CHRONIZATION. RECENT AND PLANNED DEVELOPMENT IN AREA Valhalla Hall New Construction Estimated Completion Winter Residential Units to include 2 street facing work/live units Brownstar Grill Building Restoration Completed Spring Residential Units & 4 Retail Spaces Commerce Transit Oriented Development 11th and MLK Ground Breaking Summer Residential Units and 18k Sq/ft of Ground Floor Retail

5 STATEMENT OF QUALIFICATIONS Competitive Criteria The City of Tacoma will select the Developer(s) by using the following Competitive Criteria to evaluate proposals that comply with the Development Requirements. Up to 100 points may be awarded according to how well each proposal meets these criteria. Criteria Maximum Score Developer Experience 25 Proposed Development 30 Developer Management Capacity 15 Developer Financial Capacity 30 A 3-person Selection Advisory Committee (SAC) comprised of two (2) TCRA staff and one (1) outside person will review and evaluate written Proposals. After conducting their review, the SAC may interview the highest evaluated respondents before award recommendation and before seeking authorization from the TCRA Board to negotiate and execute a contract. Proposal Content Respondents to this RFP must provide complete and detailed responses to any and all sections described below. Incomplete proposals or those which are considered not in conformity with the law may be considered as nonresponsive. TCRA will use the information below to evaluate Proposals. DEVELOPER EXPERIENCE 1. Provide resumes of the key principals of the Developer s project team who will manage, design, engineer, construct and/or market the development. 2. Describe three (3) similar market rate mixed use projects to the proposed development conducted within the last 10 years. Provide project description, financing and schedule to develop from Plan submittal to build out. PROPOSED DEVELOPMENT 1. Submit a Project Description of the proposed development. 2. Provide a Site Plan and Building Elevations depicting the overall architectural and site design features, quality of building materials and types of improvements/systems to be installed. 3. Explain how the proposed development is consistent with and will help to achieve the vision for this area as outlined in the Hilltop Subarea Plan found at : Hilltop%20Subarea%20Plan%20(adopted% ).pdf DEVELOPER MANAGEMENT CAPACITY 1. Identify the Schedule to obtain all permits/approvals and to construct and complete the project. DEVELOPER FINANCIAL CAPACITY 1. Submit a Project Financing Plan, including key milestones and a timeline for securing project equity and debt, as appropriate. Include letters from two(2) financial references regarding the Developer s financial ability to complete the proposed project.

6 STATEMENT OF QUALIFICATIONS (CONTINUED) Proposal Content (continued) DEVELOPER FINANCIAL CAPACITY (CONTINUED) 2. Provide a Sources and Uses of Funds Statement for the proposed project. Offered Purchase Price Identify your Offered Purchase Price that meets or exceeds the Fair Market Value of the parcel proposed to be developed, taking into consideration the need to demolish the existing structure. RFP Schedule The RFP schedule is as follows: DATE ACTION 7/14/17 City issues and publishes RFP on City website 8/11/17 Developer deadline for submitting written questions to Shannon Johnson at sjohnson3@ci.tacoma.wa.us by 5 pm Pacific Standard Time. 8/18/17 City posts written response to questions at: portalid=169&pageid= /15/17 Developer Hardcopy Proposal submittal date - no later than 5:00 pm Pacific Standard Time. 9/29/17 Selection Advisory Committee reviews and preliminarily ranks proposals 10/13/17 Selection Advisory Committee interviews Developers about proposals (optional) 10/27/17 Developers notified and staff proceeds with making their recommendation to TCRA Board 11/16/17 TCRA Board authorizes staff to enter into contract negotiations with Developer(s) TCRA reserves the right to modify the schedule after the Proposal deadline RFP Revisions An addendum may be published and posted to the City s website at portalid=169&pageid=47194 if it becomes necessary to revise the RFP. Proposal Submittal Hardcopy proposals must be delivered as described in this Request for Proposals. Hard copies must include one (1) original and three (3) copies of the proposal and should be submitted to 747 Market Street, RM 808 Tacoma WA 98402, Attn.: Shannon Johnson. Hand delivered Proposals may be made to the Tacoma Municipal Building 2nd Floor Customer Care Department. ELECTRONIC COPIES WILL NOT BE ACCEPTED