Request for Proposal (RFP) Development and Economic Advisory Services. December 18, 2015

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1 Request for Proposal (RFP) Development and Economic Advisory Services December 18, 2015

2 Section 1: Overview The (the Agency ) was established in 1974 to assist in the enhancement and diversity of the economy of the City of Albany (the City ), by acting in support of projects within the City that create and/or retain jobs and/or promote private sector investment. The Agency is authorized to, among other things, provide real property tax exemptions to qualifying projects for the purpose of promoting, developing, encouraging and assisting in the acquisition, construction, reconstruction, improvement, maintenance, equipping and/or furnishing of commercial facilities - among others. More information can be found on the Agency s website at In 2015, the Agency undertook a strategic transition plan with the purpose, among other things, to make policy and administrative enhancements. This included working to enhance the project review process to make it more predictable and user-friendly, all while maintaining the Agency s existing in-depth financial and economic review. As a result, the Agency commenced work on the research and development of a project scoring mechanism along with corresponding potential real property tax abatement scenarios which has been come to be known as the Project Evaluation and Assistance Matrix. The Project Evaluation and Assistance Matrix will add standardization to the process by which the Agency evaluates applications for assistance and approves real property tax assistance. This new tool will make sure that: decisions are consistent with defined Agency priorities and goals; evaluations are completed using the same set of criteria; and approvals, if warranted, are based on the measured merits of the project and financial need. Implementation of the Project Evaluation and Assistance Matrix will enhance the Agency s already robust project evaluation process by increasing transparency, accountability and predictability, supporting responsible planning and management of future tax dollars while growing the tax base and attracting and/or retaining investment, residents, businesses, and jobs. In order to complete the development of the Project Evaluation and Assistance Matrix, and potential implementation, the Agency is requesting proposals from qualified Respondents that specialize in real estate and/or economic development advisory services, such as market and financial feasibility analysis, public/private development deal structuring, innovative public financing strategies (specifically tax assistance such as real property tax abatements), and/or urban revitalization. The scope of work will entail two major deliverables that include: providing recommendations on the appropriate level of real property tax abatement for residential, hospitality and commercial development projects in Albany, New York and providing recommendations on refinements of the Project Evaluation and Assistance Matrix. The Respondent will provide for one kick-off conference call with staff, a minimum of three progress conference calls, a draft report and a final report. Section 2: Background/Proposed Scoring Tool The Agency has completed several tasks in the development of the preliminary Project Evaluation & Assistance Matrix scoring mechanism: A. The Agency has defined the criteria to be used in evaluating proposed projects; a. In the project evaluation and assistance matrix model, the application review process and the decision to award real property tax benefits is based on how the project measures up to a set of defined criteria. The following is the set of the strategic criteria that have been identified for evaluating the merits of a project: 1

3 i. Strategic Value: Distressed Census Tract, Neighborhood Plan/Neighborhood Commercial, Downtown, BID District, Downtown Residential, Tax Exempt/Vacant, Identified Catalyst Site, Historic Preservation, Manufacturing/ Distribution, Technology, Hospitality, Existing Economic Cluster ii. Financial Need/Community Benefit: Project Return, Economic Impact iii. Job Creation: Permanent New Jobs, Permanent Retained Jobs, Construction Jobs iv. Community Priorities: Minority and Woman-Owned Business Enterprise, Committed Local Labor, Inclusionary Housing B. The Agency has assigned point values to each of the above criteria so that the project score represents a measure of the project s strategic value, economic characteristics and job creation. C. The Agency has defined a tiered structure that divides projects into a basic or enhanced category based on the project s total project score resulting from the above criteria. a. Basic projects that meet the Agency s strategic priorities and are in need of gap financing to be economically viable in the City of Albany real estate market. b. Enhanced projects that meet the Agency s strategic priorities and are in need of gap financing to be economically viable in the City of Albany real estate market and are considered high impact due to the significant level of investment, job creation and economic impact. D. The Agency has determined the minimum project score that would be necessary to be identified as a basic project or an enhanced project. Section 3: Scope of Work The components outlined below should serve as a guide to the development of proposed services and deliverables. The Respondent s proposal shall define specific services and deliverables according to the Respondent s approach. This scope of work is made up of two core services (A and B below) and each one may be associated with several tasks labeled as optional tasks. The Respondent must provide a tiered pricing structure where each section (A and B and the associated optional tasks) are priced independently. A. Payment in Lieu of Taxes Schedule Determination (Approximately 85% of project scope) 1. The Respondent will analyze a variety of PILOTs (Payment in Lieu of Tax) schedules and test alternatives for both basic and enhanced projects. 2. The Respondent will develop eight prototype project development budgets and pro formas two each for 1) new residential, 2) adaptive reuse residential, 3) limited service hotel and 4) commercial office. Agency staff may be responsible for providing reasonable ranges for each of the basic economic assumptions underlying each prototype project (land cost, development cost per square foot, assessed value, rent, capitalization rate, etc.). 2

4 3. The Respondent will complete scenario analyses in which various potential PILOT schedules can be tested for effectiveness given reasonable variations in real estate performance. 4. The Respondent will apply proposed abatement schedules to staff developed development prototypes and test investment return within a reasonable range of assessed values and different economic assumptions (i.e. development cost, rent, cap rate, rent appreciation rate). 5. The Respondent will recommend PILOT schedules for residential, hospitality and commercial land uses that ensure project feasibility and protect the taxing jurisdictions. 6. While completing tasks #1-5, the Respondent may identify modifications to the Project Evaluation and Assistance Matrix scoring mechanism and will recommend any modifications as needed. Optional Tasks: a. The Respondent will identify the development program for each prototype project (i.e. defining typical projects based on square feet, number of units, average unit size, land area, height, etc.). b. The Respondent will provide reasonable ranges for each of the basic economic assumptions underlying each prototype project (land cost, development cost per square foot, assessed value, rent, capitalization rate, etc.). c. The Respondent will describe and demonstrate other reasons for why assistance is necessary in the City of Albany. This shall entail a summary of the surrounding communities as it pertains to, but is not limited to tax rates, assessment values, development costs, etc. Agency staff may be responsible for providing the data needed to inform this task. B. Project Evaluation and Assistance Matrix Refinements (Approximately 15% of project scope) The Respondent will expand on Task A6 above by providing a more in-depth review of the Project Evaluation and Assistance Matrix that the Agency is developing. As a part of this review, the Respondent will take a closer look at the evaluation criteria and scoring mechanism and recommend modifications that may be needed along with the reasoning behind all proposed changes. Section 4: Minimum Requirements The minimum qualifications of the Respondent shall include, but not be limited to: 1. Specializes in real estate and/or economic development advisory services such as market and financial feasibility analysis, public/private development deal structuring, innovative public financing strategies (specifically tax assistance such as real property tax abatement), and/or urban revitalization. 2. Have a minimum of five (5) years of experience performing or providing services of this type. 3. Have experience with Industrial Development Agencies or similar economic development and/or public financing organizations. 4. Located and authorized to do business in the United States. Section 5: Response Requirements A. Letter of Submittal The Respondent s proposal shall contain a letter of submittal acknowledging the Respondent s 3

5 understanding of, and the requirements set forth by, this Request for Proposal (RFP). The letter must be signed and dated by a person authorized to legally bind the Respondent to a contractual relationship. The letter should also contain the name and complete contact information for the principal. B. Project Approach, Scope of Work and Deliverables The proposal shall address the scope of services referenced in Section 3 above, including a complete description of the Respondent s proposed approach, deliverables, fees, methodology and schedule. As described above, the cost proposed must provide for a tiered pricing approach. The Respondent should include a timeline and work plan, including all project requirements, proposed tasks, services and activities necessary to accomplish the scope of work outlined above. The Respondent will provide at a minimum the following: a kick-off conference call, three progress conference calls, a draft report and a final report. The Respondent should provide a detailed description of each of the Respondent s proposed deliverables such as those outlined in Section 3 of this RFP to be submitted under the proposed contract. C. Team Profile, Qualifications and Experience The Respondent shall include: 1. Information on the Respondent, including the name, year established, and a brief description of the company. 2. Names and contact information for specific staff members who are anticipated to be assigned to the project, their role in the project, and a detailed resume listing their individual work experience in this role on similar projects. 3. Overview of the Respondent s client history. 4. Description of similar work conducted specifically in the area of real estate and/or economic advisory services as discussed in Section 2, but specifically economic analysis of tax assistance such as real property tax abatement for development projects. 5. Description of the firm s knowledge, understanding and experience in the City of Albany real estate development or similar market. D. References and Quality of Performance History The Respondent shall provide a minimum of three (3) professional references for which they have provided work similar to the work proposed for this project within the past three (3) years. E. MWBE (certified Minority and Women-owned Business Enterprises) MWBW Respondents are encouraged to submit proposals. The Respondent shall indicate if they are a MWBE certified firm. Section 6: Additional Submittal Requirements A. Principal Contact and Information Requests The principal point of contact for all matters relating to this RFP, including any inquiries, is: Sarah Reginelli Chief Executive Officer 21 Lodge Street Albany, New York x22 4

6 An information session is scheduled for Friday, January 8, 2016 at 2 p.m. EST. In order to participate in the information session, an request must be submitted by Monday, January 4, 2016 at 5p.m. EST. The request must indicate how the Respondent meets the minimum qualifications described in Section 4 of this RFP. Only Respondents that meet the minimum qualifications will be admitted to the information session. All inquiries regarding the RFP must be submitted in writing on or before 5:00 p.m. EST, Thursday, January 7, No response to inquiries after this date will be given. Responses to inquiries will be posted to the IDA website at B. Submission of Proposals Respondents shall submit one (1) printed original and seven (7) printed copies of their proposal by 5:00 p.m. EST, Friday, January 15, 2016 to: Sarah Reginelli Chief Executive Officer 21 Lodge Street Albany, New York x22 The proposal must be submitted in a sealed envelope, the outside of which must be marked as follows: Proposal Enclosed Development and Economic Advisory Services Additionally, in accordance with New York State Public Authority Law Section 287, each Respondent is required to complete and submit a Non-Collusive Bidding Certification with their proposal. Please find the required form attached to this RFP (see Schedule A ). All submitted proposals will be held, unopened, until 5:00 p.m. EST, Friday, January 15, C. Rejection of Proposals The Agency reserves the right at its sole discretion to accept or reject any and all proposals in whole or in part, to waive any and all informalities, and to disregard all non-conforming, non-responsive or conditional proposals without penalty. D. Costs to Propose All costs incurred in the preparation of the submittal and participation in the selection process is the sole responsibility of the Respondent. E. Other Reserved Rights All information submitted becomes property of the. The Agency reserves the right to issue supplemental information or guidelines relating to the RFP as well as make modifications to the RFP during the proposal preparation period. Once the RFP is submitted, specific staff of the Respondent may not be changed without written notice to and consent of the Agency. Respondents should note that the Agency is a public benefit corporation subject to New York State s Freedom of Information Law (FOIL) Respondents should conspicuously mark any sections of their proposal which they consider propriety. The Agency makes no warranty to Respondents about whether such marked information is not releasable in accordance with FOIL. 5

7 F. Insurance and Indemnification To the fullest extent permitted by law, the Respondent, its agents and assigns, shall defend, indemnify, and save harmless the Agency as well as the Agency s officers, employees and agents, from and against all claims, actions, causes of action, injuries, damages, losses, liabilities, and expenses (including, without limitation, reasonable attorney s fees and court costs) or other liabilities of any kind and character which arise out of or result from work under this engagement, other than claims for the Agency s own gross negligence. The indemnification shall survive the expiration or earlier termination of this engagement. Upon selection, the successful consultant will be required to procure and maintain at its own expense insurance coverage including at minimum: workers compensation and employer s liability insurance; general liability insurance with limits not less than $1,000,000; professional malpractice insurance and/or errors and omissions insurance with limits not less than $1,000,000 issued by an insurer licensed to do business in the State of New York; and automobile liability insurance, all naming the Agency as additionally insured. No work shall commence under the contract(s) until the selected consultant has delivered to the Agency or its designee proof of issuance of all policies of insurance required by the contract. If at any time, any of said policies shall be or become unsatisfactory to the Agency, the selected consultant shall promptly obtain a new policy and submit proof of insurance of the same to the Agency for approval. Upon failure of the selected proposer to furnish, deliver and maintain such insurance as above provided and detailed in contract negotiations the contract may, at the election of the Agency, be declared suspended, discontinued or terminated. Failure of the selected consultant to procure and maintain any required insurance shall not relieve the selected consultant from any liability under the contract, nor shall the insurance requirements be constructed to conflict with the obligations of the selected consultant concerning indemnification. G. Conditions of Submittal Respondents are responsible for reviewing and certifying compliance with the Agency conditions of submittal. The will make no allowance or concession to any bidder for any alleged misunderstanding of this RFP. Section 7: Evaluation and Selection Process A. Evaluation of Proposal Proposals will be evaluated upon the following eight criteria by the City of Albany Industrial Development staff and presented to the Board of Directors: 1. Qualifications and experience of the Respondent with similar projects, including experience with development economics, pro forma analysis and real estate development; 2. Qualifications and experience of the specific staff assigned to the project; 3. Demonstrated capacity through previous work analyzing and providing recommendations regarding the viability of public financing, including real estate tax abatement proposals; 4. Demonstrated understanding of the project and awareness of real estate market conditions in the City of Albany, New York; 5. Demonstrated capacity to communicate complex information creatively, efficiently and effectively with diverse stakeholders; 6. Demonstrated ability of the Respondent to meet the project timetable; 7. Quality and completeness of the recommended approach, strategies and processes for the 6

8 third party review of the project scoring mechanism and abatement schedules; 8. Cost effectiveness of the proposal, including the fees to be charged by the Respondent; and, 9. Quality of references. The selection of a proposal will not be based solely on the amount of fees to be charged by the Respondent. Considerable weight will be given to each of the criteria listed above. B. Clarification of Proposal Contents The Chief Executive Officer of the Agency may contact the Respondent for clarification of any portion of the Respondent s proposal. C. Selection The selection of the Respondent will be by the Board of Directors of the City of Albany Industrial Development Agency. D. Notification All Respondents will be notified in writing as to the whether they were selected or not selected to provide services to the. E. Professional Services Agreement The selected Respondent and the Agency will negotiate a professional services agreement including, but not limited to final scope, work plan, deliverables, and cost. Final agreement approval is tentatively scheduled for January The final agreement may include all or an appropriate sub-set of services outlined in the RFP. The agreement may also include additional services identified and agreed upon by both parties during the negotiation period. If, after negotiation, an agreement cannot be agreed upon, the Agency may select the next highest ranked Respondent until a selection is made and an agreement is issued. The agreement shall be governed by and construed according to the Laws of the State of New York and any disputes arising from the agreement shall be heard in a court of competent jurisdiction in the State of New York. For more information on the Agency s professional services procurement policies, please see the Agency s policy manual ( F: Non-Collusive Proposal Certificate and Acknowledgement Each Respondent shall complete and submit with his or her proposal the Non-Collusive Proposal Certificate. Please find the required form attached to this RFP (see Schedule A ). 7

9 SCHEDULE A NON-COLLUSIVE PROPOSAL CERTIFICATE PURSUANT TO NEW YORK STATE GENERAL MUNICIPAL LAW SECTION 103-D 8

10 NON-COLLUSIVE PROPOSAL CERTIFICATE PURSUANT TO NEW YORK STATE GENERAL MUNICIPAL LAW SECTION 103-D By submission of this proposal, each proposer and each person signing on behalf of any proposer certifies, and in the case of a joint proposal each party thereto, certifies as to its own organization, under penalty of perjury, that to the best of knowledge and belief: (1) The prices in the proposal have been arrived at independently, without collusion, consultation, communication or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any other proposer or with any competitor; (2) Unless otherwise required by law, the prices which have been quoted in this proposal have not been knowingly disclosed by the proposer and will not knowingly be disclosed by the proposer prior to the opening, directly or indirectly, to any other proposer or to any competitor; and (3) No attempt has been made or will be made by the proposer to induce any other person, partnership or corporation to submit or not to submit a proposal for the purpose of restricting competition. (Signature) (Print Name and Title) (Name of Partnership or Corporation) (Date) 21 LODGE STREET ALBANY, NEW YORK (T) (F)

11 ACKNOWLEDGMENT BY PROPOSER If Individual or Individuals: STATE OF ) COUNTY OF ) SS.: On this day of, 20, before me personally appeared to me known and known to me to be the same person(s) described in and who executed the within instrument, and he/she/they severally acknowledged to me that he/she/they severally executed the same. If Corporation: STATE OF ) COUNTY OF ) SS.: Notary Public, State of Qualified in Commission Expires On this day of, 20, before me personally appeared to me known, who, being by me sworn, did say that he/she resides at (give address) ; that he/she is the (give title) of the (name of corporation), the corporation described in and which executed the above instrument; that he knows the seal of the corporation, and that the seal affixed to the instrument is such corporate seal; that it was so affixed by order of the board of directors of the corporation, and that he signed his name thereto by like order. If Partnership: STATE OF ) COUNTY OF ) SS.: Notary Public, State of Qualified in Commission Expires On this day of, 20, before me personally came, to me known to be the individual who executed the foregoing, and who, being duly sworn, did depose and say that he/she is a partner of the firm of and that he/she has the authority to sign the same, and acknowledged that he/she executed the same as the act and deed of said partnership. Notary Public, State of Qualified in Commission Expires 21 LODGE STREET ALBANY, NEW YORK (T) (F)

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