Center City Development Corporation Board Meeting

Transcription

1 Center City Development Corporation Board Meeting To: Center City Development Corporation (CCDC) From: DMC Staff Date: April 18, 2018 RE: Exterior Improvement Grant (EIG) Application 22 N. BB King Blvd. The enclosed Exterior Improvement Grant has been submitted for consideration at the April 18, 2018, CCDC Board of Directors Meeting. Project: Applicant/Owner: 22 N. BB King Blvd (Hotel Indigo) 22 North Third, LLC Matt White, representative 255 Village Parkway NE suite 235 Marietta, GA Applicant s Request: Exterior Improvement Grant in an amount up to $80,000. Project Description: The applicant is renovating the former Econo Lodge hotel as a Hotel Indigo. This new boutique hotel will have a construction budget of approximately $6M including the full renovation of the existing building and its attached parking structure. The 118 guest rooms will be located on the upper three floors, atop six levels of parking. A pool with outdoor deck will be found on the eight floor. The ground floor will feature a restaurant and renovated lobby. The basement will include over 3,000 sf of space that could have a commercial or restaurant use. The building, constructed circa 1963, was recently added to the National Register of Historic Places. Historically significant characteristics of the building include its innovative structural system and unique building configuration of hotel rooms above a parking garage. The hotel developer plans to use federal historic tax credits as part of the project financing. Utilizing these tax credits generally means that major modifications to the exterior of the building are limited due to the architectural or historic features of the building. Scope of Work: The scope of work to be completed using the EIG funding is limited to the purchase and installation costs associated with new exterior architectural lighting. If approved by the CCDC, the installation of exterior lighting will begin around July 16, 2018 and likely be completed by August 24, Page 1 of 2

2 Eligibility & Budget: The Exterior Improvement Grant is for exterior work only and requires minimum leverage of 1 to 1. The following budget estimate summarizes the proposed scope of work: Sources: Owner Funding $100,000 CCDC Funding (EIG) $80,000 Total Sources $180,000 Uses: Exterior lighting equipment $150,000 Exterior lighting installation $30,000 Total Uses $180,000 Design Review: EBO Program: Staff Evaluation: This project will be submitted for review and approval at the May meeting of the Design Review Board (DRB). Any project that is awarded financial incentives from the Downtown Memphis Commission shall include a best faith effort to reach no less than 20% participation by minority and/or women owned businesses (M/WBE) in the project's development cost (design and construction hard costs). Compliance with this Equal Business Opportunity (EBO) Program is a closing requirement. If the requirements of the EBO Program are not met, the CCDC will cancel the incentive. 20% M/WBE inclusion for the above listed scope of work is approximately $36,000. The Exterior Improvement Grant program is designed to help Downtown commercial property owners and businesses make high-quality improvements to the exterior of their property. An important secondary goal of the grant is to help new and existing businesses succeed by enhancing their curb appeal. In this case, approving an EIG will ensure that the project includes enhanced exterior and architectural lighting. Staff believes that this additional lighting will significantly improve both the appearance of the building and the pedestrian experience along BB King Blvd. Staff Recommendation: Staff recommends approval of an Exterior Improvement Grant (EIG) in an amount up to $80,000, based on approved receipts and subject to all standard closing requirements. Page 2 of 2

3 April 4, 2018 Commission No.: Brett Roler, AICP: Director of Planning and Development Downtown Memphis Commission 114 N. Main St. Memphis, TN Re: Exterior Improvement Grant Application Hotel Indigo Dear Mr. Roler: Please accept the attached application for an Exterior Improvement Grant for the property located at 22 N. BB king Boulevard. The property is the former Econo Lodge hotel and is being renovated to operate as a Hotel Indigo. The scope of the project is a complete renovation of the hotel and associated parking garage. We applied for the building to be placed on the National Register of Historic Places and recently received news that it was listed. Some of the historically significant items that the Tennessee Historic Commission and the National Park Service noted were its unique structural system (one of the first uses of a single tee beam structural beam that would be known as the Lin-Tee. ) and its unique combination of a hotel on top of a large parking garage that served the adjacent Sterick Building. It is also distinctive as being one of the original Holiday Inn s in Memphis. The current scope and budget include a complete interior renovation as well as repairing, cleaning and painting the exterior façade. There is no current exterior lighting except functional garage and minimal signage lighting. We believe that the proposed dynamic accent lighting concept would greatly improve the projects impact on the surrounding area and enhance the pedestrian experience, however, the construction budget does not allow for the additional lighting. The funds requested would be used to include the lighting in the project. Thank you in advance for your consideration and we would be happy to answer any question you may have. Sincerely, 22 North Third, LLC Matt White Member

4 I. Executive Summary: Contact information of applicant: Matt White 22 North Third, LLC 255 Village Parkway NE suite 235 Marietta GA Property address: 22 North BB King Boulevard property owner is same as applicant II. Required Drawings & Exhibits: See attached: Renderings showing lighting and street level views Current photo(s) of the subject property III. Estimated Costs & Bids: See attached Sources and Uses Statement (Attachment B). IV. Project Timeline: The exterior lighting installation will begin approximately July 16 th, 2018 and be completed by August 24 th, V. Equal Business Opportunity (EBO) Program See Attachment D & E below. VI. References. Blake Snyder Senior Vice President - Commercial Real Estate State Bank and Trust 3399 Peachtree Road NE Atlanta, GA Blake.Snyder@statebt.com Larry Spelts expotel hospitality 401 Veterans Memorial Blvd, Suite 102 New Orleans, LA lspelts@expotelhospitality.com Stuart Gurr One Path SGurr@1path.com

5 VII. Legal Disclosure. We are not aware of any applicant, guarantor, or any other person involved with the project that is currently engaged in any civil or criminal proceeding. We are not aware of any individual involved with the project has ever been charged or convicted of any felony or currently is under indictment. 22 North Third, LLC has never filed for bankruptcy. VIII. Disclaimer: The CCDC, DMC, and its affiliates are not responsible for business consulting, planning, design, or construction of improvements to property that is owned by the applicant or any other entity. No warranties or guarantees are expressed or implied by the description of, application for, or participation in the Exterior Improvement Grant. The applicant is advised to consult with licensed architects, engineers, and/or building contractors before proceeding with final plans or construction. IX. Applicant Signature The following statement must be included with the dated signature of the applicant or an applicant s representative: This application is made in order to induce the CCDC to grant financial incentives to the applicant. The applicant hereby represents that all statements contained herein are true and correct. All information materially significant to the CCDC in its consideration of the application is included. The applicant acknowledges that it has reviewed the descriptions of the CCDC financial program for which it is applying and agrees to comply with those policies. The applicant shall also be required to show best faith efforts with regard to the employment of minority contractors. The applicant specifically agrees to pay all reasonable costs, fees and expenses incurred by the CCDC whether or not the incentive is granted or project completed. Applicant Signature: Date: 4/4/2018

6

7

8

9

10 Attachment B Hotel Indigo Sources and Uses Statement Sources: Amount Exterior Improvement Grant - Downtown Core $80,000 Owner Provided $100,000 Total Sources $180,000 Uses: Cost ilight Technologies - Plexineon White Series - 8' LED strip fixtures $150,000 Installation of light fixtures $30,000 Total Uses: $180,000

11 Attachment C Explanation of Equal Business Opportunity (EBO) Program and Best-Faith Effort to Attain Minority-Owned Business Participation As further detailed in the Downtown Memphis Commission Affiliated Boards Equal Business Opportunity (EBO) Program, Section 10, the applicant must give women and / or minorityowned businesses (W/MBEs) an equal and fair opportunity to receive notice, to bid on, and be considered for selection for all contracting opportunities associated with the professional and construction services in the design and renovation/construction of the project. Applicants are required to take affirmative steps to ensure an open and fair contracting process. While there are no mandated quotas, results achieved may evidence whether a fair process was employed. Applicants shall make a best-faith effort to allot, as a goal, no less than 20% of the professional and construction services to W/MBEs in the design and renovation/construction of the project. Commensurate with the size and scope of the project, specific steps that may be indicative of a best-faith effort to identify and contract with W/MBEs include but are not limited to the following: notice to W/MBEs, soliciting bids/quotes directly from W/MBEs, providing constructive notice, utilizing plan rooms, utilizing the DMC for assistance (W/MBE lists and Project Alerts), and working with applicable minority-owned business support organizations (e.g., Mid-South Minority Business Council, Memphis Area Minority Contractors Association, Memphis Hispanic Chamber of Commerce, National Association of Women Business Owners, etc.) To ensure that the EBO requirements are clearly understood, and antecedent to meeting the goals set forth in the EBO Program, all utilization plans must be coordinated with the DMC staff and submitted with the application. In accordance with the EBO Program, once the incentive application is approved and design/construction commences, the applicant shall provide written documentation of the status of the utilization plan (which shall include any and all changes or modifications) and the applicable amounts spent (or value of the work completed), on a monthly basis. If the requirements of the EBO Program are not met, the CCDC reserves the right to revoke and cancel the incentive.

12 Attachment D Equal Business Opportunity (EBO) Program Requirements All projects that are awarded an incentive from the Downtown Memphis Commission shall include best faith efforts to reach no less than a 20% participation by women and /or minority-owned businesses (W/MBE) in the project s development cost (design and construction hard cost) and shall be compliant with the Downtown Memphis Commission Equal Business Opportunity (EBO) Program. If the landlord is responsible for the improvements it is the applicant s responsibility to ensure the landlord understands and complies with the CCDC s EBO policies. According to the estimates provided in the application, 20% of the total project cost would be approximately $ 36,000. Documentation of compliance with the EBO Program is a closing requirement. If the requirements of the EBO Program are not met, the CCDC reserves the right to cancel the incentive. Utilization: retailers are required to utilize minority-owned businesses that are certified in order to receive credit for the utilization of a minority-owned business. Retailers must document all minority-owned businesses to be utilized, their percentage of utilization, and their intended use of funds. Such information should be submitted with the application on EBO Form A - Proposed Utilization Plan. After an application is approved, the retailer shall be required to attend a conference with the DMC prior to executing their plan. The primary purpose of this conference is to finalize the minority-owned business participation as outlined in EBO Form B Business Utilization Plan. Post-Award Change: Any retailer who determines that a minority-owned business identified on EBO Form B Business Utilization Plan cannot perform shall request approval from the DMC to contract with an alternate by submitting EBO Form C Explanation of Changes to Original Utilization Plan. Such request will be reviewed and approved only after adequate documentation for the proposed change is presented. Monthly Certification: Each month the retailer shall submit EBO Form D Monthly Business Utilization Record of Payments Report, certifying all payments made to minority-owned businesses. Unavailability: If retailer efforts to obtain minority-owned business participation are unsuccessful due to the unavailability of the minority-owned business, the retailer will submit a statement of unavailability on EBO Form E - Solicitation Certification Form. Credit for Minority Participation in Joint Venture: A joint venture consisting of a minority owned entity and non-minority-owned entity will be credited with the minority-owned entity s participation on the basis of the percentage of the dollar amount of the work to be performed by the minority-owned entity. The DMC will maintain a database of minority-owned businesses. The database will be made available to assist developers in identifying minority-owned businesses with capabilities relevant to contracting requirements, joint venture and partnering opportunities. If the retailer utilizes a minority-owned business that is not listed on the DMC database, the retailer is responsible for assuring the certification of the minority owned business. Applicant Signature: Date: 4/4/2018