Town Square Investing in the City and its Citizens
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1 Town Square Investing in the City and its Citizens Date: July 18, 2016
2 Current Status Public Design Workshops Completed Community Input incorporated into conceptual ideas Meetings with Developers concerning unsolicited proposals for redevelopment One proposal received without keeping the high school. Rejected based on current direction Added as a top priority in Strategic Plan
3 Public Design Workshop
4 Community Input Create an active, lively center Maintain some form of the Historic High School Create a Civic Campus Relocate activities from other civic bldgs. Increase/consolidate programming Relocate Police Department Relocate City Hall Relocate Fire Department Connect to Ocean Avenue Announce arrival Consolidate land for private/public partnership to incorporate mixed use development Maintain tree canopy improving visibility and access. Expand outdoor activity areas Transition appropriately into the neighborhood Improve walkability
5 What is a Public-Private Partnership (P3)? Public-private partnership projects are contractual agreements formed between public and private-sector entities that allow for greater private sector participation in both the delivery and financing of public projects. P3s can provide much needed capital to finance government projects, thus freeing critical public funds for core services and programs A proposal may be either requested by a public entity or submitted by a private entity on an unsolicited basis.
6 Challenges for Unsolicited P3 Proposals The City has been promoting unsolicited P3 proposals for over a year with one submittal that was returned based on Commission input Public exposure to financial information Some of the teams that have expressed interest are concerned about the direction of the old High School Prior to the Strategic Plan, potential proposers may not have been comfortable with the City s ability to fund the project Other challenges include adoption of consolidated CRA plan, building height discussions and market requirements
7 Next Step to Solicit Formal Proposals Publish a Request for Qualifications (RFQ) What is an RFQ? Procurement requirements under CCNA Advertisement for Private Developers to submit their past projects, team makeup and potential financial offerings Submitted proposals are shortlisted to three who are invited to submit conceptual plans and financing options Proposals are reviewed and the number one ranked team enters into a contract to start the development process The City Commission will have multiple points of input and approvals throughout the process
8 What is included in a technical RFQ? General City conditions for a contract Directions for preparing a proposal Scoring methodology that will be used to shortlist teams and to rank the final proposals Project Requirements: City building needs Open space requirements Architectural styles Financing methods
9 How to solicit the best proposals The more flexibility that a team has to provide a concept plan that fits their financial requirements, the better plan the City will receive Maximizing private uses within the project minimizes City investment and provides additional financing options Less restriction in the RFQ will provide greater creativity in the proposals Allow the market to drive the type and density of the project while meeting the City s needs
10 Required RFQ Policy Decisions
11 The High School RFQ Requirements Keep the Old High School in its current location and rehabilitate it to house civic functions as the only option allowed in the concept plans Keep the Old High School and re-model for Civic Functions as the base concept plan and allow teams to propose alternatives such as: Keep the façade and footprint with new building Recreate the historical portions of the school The second option will allow more creative and possible better value while keeping the building in every proposal
12 Off-site Police Stations / Fire Station #1 Possible sites Construct Police Station at High Ridge Road Site - $28M Find offsite land for Fire Station #1 construction - $5M Utilize Ocean Breeze East site for combined PD/FD - $30M All sites could be included in the RFQ to provide flexibility for the proposer to find the most economical solution.
13 Town Center City Owned Land Is the excess land available for the proposer to use for private development? Children's Museum must stay within Town Center boundary Can stay in current location or physically moved? City Hall should be located away from Boynton Beach Blvd. Remaining Civic Buildings can be removed and functionality replaced in the project
14 Town Center Desirable Elements Consolidate civic uses into one building (Possible in Old High School or new building) Adaptive reuse of the Old High School (in whole or in part) Build a new city hall (Approximately 50,000 SF) Activate Ocean Avenue by providing mixed-use/retail opportunities within public buildings Create and expand green space/event areas and create place making elements (Interactive water feature/play area) while preserving tree canopy Create/enhance on-street parking along all City streets and Seacrest Boulevard Improve visibility and access to new Cultural District and buildings Improve access to the Library by adding pedestrian access from Seacrest Boulevard Improve access and circulation to Library s parking lot Build entrance/gateway features Create a safe, walkable, mixed-use environment Enhance pedestrian connectivity between City Hall, Library, and public spaces. Relocate Police Station off campus Relocate Fire Station #1 off campus
15 Town Center City Needs Civic uses with auditorium and playground (Approximately 15,000 to 20,000 SF) - accomplished by either adaptive reuse of the Old High School (in whole or in part) or new building New City Hall (Approximately 50,000 SF) Public event lawn, amphitheater, and public gathering space. Interactive water feature/play area and other open space amenities Entrance/gateway features at Ocean & Seacrest Streetscape enhancements along Ocean Avenue and Seacrest Boulevard including on-street parking
16 Financing Options
17 City Investment for Required Buildings $50 - $60 M in total infrastructure investment for the City City Hall / $15M - $18M Police Building / $25M - $30M Fire Station #1 / $3M - $5M Civic Space / $7M-$10M High level estimates based on past work on projects The current City Hall/PD building will require $13-$15M in rehabilitation within the next 1-5 years
18 Standard Financing Method for Public Buildings Fully fund total investment with a bond of $60M $58M of cash available for infrastructure costs 25 year bond Assuming interest rate around %, annual debt service would be approximately $3.3M. The $3.3M payment would require a 0.85 of a mill ad valorum tax increase. A General Obligation Bond Referendum would add 0.85 debt service millage on property tax bill A Revenue Bond approved by the Commission would increase the current operating millage of to
19 Public Private Partnership Financing Options that may be offered in an RFQ The City could own the underlying land and buildings leased to the P3 team with a lease-back option. $50M investment could be reduced to annual lease payments of $2-2.5M per year. Private equity funding with lease-back options which provide the City s funding through annual appropriations. Multiple sources of revenue could be included in the model including: Tax Incremental Funding Land lease / sales Energy savings contracts New Market Tax Credits
20 Staff Recommendation Release an RFQ which includes all required elements providing availability of the Town Center Acreage, High Ridge Acreage and Ocean Bridge East Acreage The Proposals must include a concept plan and financing options for a new City Hall, New PD Building, New Fire Station #1 and new Civic Space The primary concept plan must include utilization of the old high school but alternatives can be offered Authorize the City Manager to issue an RFQ
21 Questions
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