Chandler Cove Developer Request for Proposal
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1 Chandler Cove Developer Request for Proposal Request for Proposal Chandler Cove Mixed Use - Condominium Development Decatur Park District Decatur, Illinois CHANDLER COVE DEVELOPER RFP i
2 Request for Proposal ISSUED FOR: Chandler Cove, Decatur, Illinois ISSUED BY: Decatur Park District Decatur Park Board of Commissioners 620 East Riverside Avenue Decatur, Illinois SUBMISSION DEADLINE: September 20, 2013, 4pm CONTACT: Bill Clevenger, Executive Director Rodney Buhr, CFO PHONE: CHANDLER COVE DEVELOPER RFP ii
3 Chandler Cove Request for Proposal Table of Contents Page No. I. Purpose 1 II. Project Overview 2 A. Location 2 B. Nelson Park Master Plan Context 4 C. Chandler Cove Vision 4 III. Private Development Opportunity 5 A. Project Area and Phasing 5 B. Entitlements to Date 6 C. Park District and City Responsibilities 6 D. Evaluation Process and Developer Responsibilities 7 E. Restriction on Communication 7 F. RFP Coordinator: Issuing Office 8 G. Rights Reserved 8 H. Developer Submission Process 8 I. Selection Process Schedule 13 IV. Offer to Negotiate 13 Attachments 1. Nelson Park Master Plan 2. Nelson Park Overlay District Zoning 3. St Mary s Hospital Impacts CHANDLER COVE DEVELOPER RFP iii
4 CHANDLER COVE DEVELOPER RFP iv
5 I. PURPOSE The Decatur Park District is prepared to award development rights for selected Park District-owned property in the area currently known as Chandler Park. With significant public investment envisioned for Decatur s lakefront, unprecedented opportunities exist for waterfront development by the private sector. The Decatur Park District is moving forward with implementation of the Nelson Park Master Plan, which includes extensive improvements to the shoreline of Lake Decatur, transformation of the existing boat dock facilities to a modern marina system, lakefront promenade pedestrian amenities, construction of an exciting new waterfront restaurant district, expanded recreational amenities, a new regional performance amphitheater, water park, mini-golf courses, and additional regional destination attractions. The private investment will include a mixed-use development as approved in the Overlay Zone, to be built in phases. A maximum of 300 residential units or a combination of up to 80,000sf of commercial and a lesser number of residential units are planned for the entire site. Incidental retail and office uses are also permissible within the overlay zoning district approved for the site. The residential component must be a for sale owner-occupied condominium product. Temporary rental of for sale units for a limited period of time will be considered, but is not desired. The Park District will provide access to some of the marina slips to be linked to some of the condominiums. The enhanced development of the lakefront is a high priority for the Decatur Park District and City of Decatur. The development is being guided by years of extensive planning and community input as reflected in the Nelson Park Master Plan. The plan includes recommendations to transform our extensive and unique waterfront resources into a regional tourism destination attraction that maximizes economic, environmental and recreational benefits for the entire community. It is the Park District s and City of Decatur s desire to develop Nelson Park as a significant Central Illinois regional destination by achieving the following goals: Enhancing the waterfront of Lake Decatur with improved public amenities and a lakefront promenade that will remain public for all time Maximizing housing and tourism-related opportunities as outlined in the Nelson Park Master Plan Providing high-quality accommodations, entertainment, and dining venues Developing an efficient and effective infrastructure system that supports waterfront-related activity and increases public access Maintaining a sustainable park area that supports the highest quality of life standards for new residents, visitors, and the local community Consistent with the above-mentioned project goals, the Decatur Park District is seeking a qualified Developer to undertake the private development of a portion of the property located in Chandler Park. CHANDLER COVE DEVELOPER RFP 1
6 II. PROJECT OVERVIEW A. LOCATION Chandler Cove Chandler Cove is located in the area currently known as Chandler Park, bounded by Lake Decatur, Lost Bridge Road, and Lake Shore Drive in the City of Decatur. Figures 1 and 2 show the location of the property. Figure 1 - Overview CHANDLER COVE DEVELOPER RFP 2
7 Figure 2 - Enlargement CHANDLER COVE DEVELOPER RFP 3
8 B. NELSON PARK MASTER PLAN CONTEXT The Nelson Park Lakefront Plan is designed to enrich and expand upon the ideals of the community leaders who built Nelson Park and Lake Decatur 100 years ago. Living up to this vision requires clear goals: To create a park that is an important, integral component of Decatur s future recreation, leisure, and open space opportunity To create an economic catalyst that draws visitors to Decatur to enjoy cultural and recreational resources and activities To make Decatur a place to which young people want to return, to live, work, play, and call home To create a destination with outstanding amenities, parks, housing, restaurants and attractions that businesses proudly display to recruits and visitors To create energy and momentum that encourages private and corporate philanthropy to complement public investments C. CHANDLER COVE VISION The goal of the Nelson Park Master Plan is to create year-round local activity in the park and increase Decatur s competitiveness in employee recruitment and retention, as well as retain existing businesses and attract new ones. The guiding principles state that the plan must reflect economic reality, be accessible to everyone, and that the water s edge must remain public. The activation of Chandler Park and the adjacent lakefront with a significant mixed-use residential project addresses the fundamental economic reality facing the City of Decatur and Decatur Park District, and will create significant lease income and property tax value that will be used to make other major improvements described in the master plan. The residential components proposed for Chandler Park include two distinct project types. Chandler Park Area One is generally located in the upland areas across the street from St. Mary s Hospital and bound by Lakeshore Drive and Lost Bridge Road. The master plan proposed construction of 168 units of 1500 sf on average for planning purposes. These units would be accommodated in seven three-story structures. Surface parking will be provided by the Developer, and all public spaces will remain open to the public. No type of gated community will be considered, and the edges of the project will include significant buffering and landscape. Chandler Park Area Two is located between Area One and the waterfront. The master plan suggests two taller structures up to eight floors on small 75 by 140 footprints. The plan proposed between fifty-six and seventy units per building in a range of unit sizes. Parking would be a mix of surface and structured parking. All public spaces would remain open to the public, and no type of gated community will be considered. The waterfront will remain open to the public, and a public boardwalk promenade will be constructed along with a new public fishing pier with shade structure. The Loop CHANDLER COVE DEVELOPER RFP 4
9 Trail links these waterfront park spaces to the rest of the park and around Basin 2. Two additional docks providing slips for up to fifty boats are proposed, to be constructed by the Park District. The existing Commodore Yacht Club and adjacent public sailing facilities are proposed to be reconfigured and reconstructed to the new dock standards and ADA requirements near their current location. Landside facilities will include the existing hardstand area, and the existing public shade structure will be relocated and reconstructed to make way for an expanded parking area. NOTE: The residential elements proposed in the master plan vision indicate the type of structures likely to be well received by the Park District. Potential developers are encouraged to follow the spirit and intent of the master plan, while employing creativity to create a highly desirable development. The Overlay Zoning District approved for the site by the City of Decatur outlines explicit restrictions and requirements that must be met, including height restrictions. Note also within this document are additional project site and building height requirements related to maintaining clearance within the flight path of St. Mary s Hospital helipad. III. PRIVATE DEVELOPMENT OPPORTUNITY A. PROJECT AREA AND PHASING The Chandler Cove and Nelson Park areas consist of a total of approximately 177 acres adjacent to Lake Decatur. This property is a prime waterfront property which is unique, not only to Decatur, but also to the surrounding regional communities. The area available for private investment within Chandler Cove is approximately 20 acres as shown below. The developable area is being offered on 50 year lease. The plans shown herein describe one potential vision for the site that is compatible with the goals of the Nelson Park Master Plan and the Decatur Park District. However, the Park District is encouraging developers to read and understand the master plan and use creativity in planning highly marketable products that achieve the vision and goals of the plan. We are looking for a single developer or team with the ability to design and implement a complete plan for the entire Chandler Cove site; however, we expect the actual development to be completed in phases. This information is presented as an example of what could work on the property. The Developer is to conduct his/her own market/feasibility studies to determine a final proposal. The proposal shall outline a vision for the entire site and clearly indicate the proposed first phase, and identify anticipated sequencing of subsequent phases. The property will be released to the developer on a phase-by-phase basis, with only one parcel released at a time. If the developer produces a successful financial plan for Phase One, then the lease will be issued for that phase with payments made to the Park District per the structured pay schedule as outlined in the proposal. Once successful performance of Phase One has been completed, it is the Park District s intent to release Phase Two and subsequent phases to the same developer as a continuation of the Phase One development. CHANDLER COVE DEVELOPER RFP 5
10 B. ENTITLEMENTS TO DATE The Park District has been working with the City of Decatur for the past several years on the Master Plan and has secured local project planning approvals through the recent adoption of the Overlay Zoning District. The Overlay District establishes allowable uses, maximum building heights, numbers of buildings, and allowable gross square footage, but is not intended to be considered a design. All relevant building codes will apply. Deviations from the approved Overlay District are not desired and will require subsequent zoning review by the City of Decatur and approval by the Decatur Park Board of Commissioners. Impacts to the shoreline of Lake Decatur will require permit approval from the U.S. Army Corps of Engineers, and the Decatur Park District and City of Decatur have initiated an individual permit approval process for the entire master plan. The Park District will work with the developer to incorporate their proposed edge conditions into their permit approval process. The approved Overlay District Zoning code is Attachment 2 to this RFP. General impacts of FAA flight path requirements from St. Mary s Hospital helipad are shown in Attachment 3. Developer is required to review flight path requirements to confirm compliance with FAA regulations. Receipt of final City permits and approvals will be the responsibility of the Developer. Bidders are advised that Illinois has a Prevailing Wage Act. The Decatur Park District has a Project Labor Agreement with the Decatur Building & Construction Trades Council, AFL-CIO. C. PARK DISTRICT and CITY RESPONSIBILITIES The Park District and City will be responsible for the following land development items: 1. The Park District and City will make available the site in a shovel ready condition. The overall definition of shovel ready specifies that all utilities will be provided up to the site, including gas, electric, CATV/communications, sewer service with a lateral minimum of 4 below existing grades surrounding the site and water service with a minimum water pressure of 45 psi. 2. A Phase One Environmental Site Assessment is underway, and the Park District will provide the results of that study to the Developer when complete. No significant environmental concerns are anticipated based on past and current use of the land. 3. Soil Conditions Developer is advised to perform soil borings and identify soil characteristics as necessary in order to respond to this proposal and develop the site. 4. The Park District and City will be responsible for construction of the adjacent marina and infrastructure related to the site. It is intended that the marina will be a public marina; however, some of the boat slips may be linked to the adjoining residential development in Phase I for use by the Developer s condominium purchasers. Linking means the slips will be committed to the Developer, but the Developer/Buyers will still need to pay the appropriate lease payments for slip rental. This simply means the Developer committed slips will CHANDLER COVE DEVELOPER RFP 6
11 be managed under a separate priority waiting list, and condominium buyers will be on this list. CHANDLER COVE DEVELOPER RFP 7
12 D. EVALUATION PROCESS AND DEVELOPER RESPONSIBILITIES The criteria listed below will be used to evaluate the proposals. 1. Project Financing Certainty of project funding/financing (i.e., commitment of funds already in place) Level of developer cash equity into project Economic feasibility of the proposal Please note: Preference will be given to proposals showing the highest economic and community benefit 2. Experience Developer s experience and success with similar projects Please note: Preference may be given to RFP respondents with real estate development knowledge and experience in the local/regional market in urban waterfront settings. 3. Quality of the Development Plan Design and key features of the proposal Proposed use(s) for the site Use of sustainable and/or environmentally sensitive construction methods and materials 4. Understanding of the Project Consistency with the goals of the Nelson Park Master Plan and vision for the site Identification of relevant issues 5. Project Schedule The Developer s ability to complete projects in a timely manner Upon initial review of the submitted proposals, the evaluation team may choose to establish a short list for subsequent interviews. All respondents will be notified if and when a short list is established. The Park District reserves the right to accept or reject any and all submissions. If a proposal is selected by the evaluation committee, a recommendation will be submitted to the Decatur Park Board for final review and approval. E. RESTRICTION ON COMMUNICATION News releases pertaining to this RFP or the services to which it is related will not be issued by the proposer without the prior written approval of the Park District. In the event a proposer issues a news release pertaining to this RFP or the purposes to which it relates without the prior written approval of the Park District, the proposer may be excluded from consideration. CHANDLER COVE DEVELOPER RFP 8
13 F. RFP COORDINATOR: ISSUING OFFICE The Managers of this RFP, Bill Clevenger and Rodney Buhr, will serve as the coordinators and point persons of contact during the proposal evaluation process. All correspondences, questions, submissions, etc., related to this RFP should be addressed to: Bill Clevenger Rodney Buhr Executive Director Chief Financial Officer Decatur Park District Decatur Park District 620 East Riverside Avenue 620 East Riverside Avenue Decatur, Illinois Decatur, Illinois G. RIGHTS RESERVED Only proposals that comply with all the objectives, provisions and requirements of this RFP will be considered for review. All determinations of completeness of any submission and compliance with the objectives, provisions and requirements of this RFP, and the eligibility or qualification of any respondent shall be at the sole and absolute discretion of the Decatur Park District. All materials submitted in response to this RFP become property of the Decatur Park District, without obligation of the Park District to return such materials. The Park District reserves the right to request additional information from any or all RFP respondents, if necessary, to clarify that which is contained in the proposals. Should it become necessary to review any part of this RFP, provide additional information necessary to adequately interpret provisions and requirements of this RFP, or respond to written inquiries concerning this RFP, the Park District reserves the right to issue an Addendum to the RFP to all respondents who received the initial RFP. The Park District reserves the right to extend the Submission Deadline by a reasonable time. The Park District reserves the right at its sole discretion to accept or reject any and all proposals received as a result of this RFP, to waive any irregularities, to withdraw from the lease of the property, to elect not to proceed with the process set forth in this RFP, and to conduct discussions with all responsible respondents, in any manner necessary, to serve the best interest of the Decatur Park District and City of Decatur. No brokerage fees, finder s fees, commissions or other compensation will be payable by the Decatur Park District or City of Decatur in connection with selection of a Developer. H. DEVELOPER SUBMISSION PROCESS The proposal submission process shall be completed in two phases. The Qualifications Phase will assess the qualifications of the prospective Developer and include an overview of the proposed Project Vision. The result of Qualifications Phase will be the selection of a short list of Developers invited to participate in Proposal Phase. The Proposal Phase will require greater detail and will result in the selection of the Developer. CHANDLER COVE DEVELOPER RFP 9
14 Qualifications Phase Developer Qualifications submittal shall include the following: 1. Developer Qualifications The Developer shall provide a description of the proposed Development Team, including resumes, company information, and a list of relevant successful development projects that communicate the Developer s ability to design, fund, market, and complete a successful project that achieves the goals of the Nelson Park Master Plan. 2. Project Vision The Developer shall clearly describe in both narrative form and graphics as appropriate, a clear understanding of what the developer wishes to construct for the entire Chandler Cove area, with phasing identified and an emphasis on development of the first phase of that parcel. This vision statement shall describe the character of the work, exterior materials, and overall design intent. Detailed architectural drawings are not necessary in the qualification process; however, images of similar projects the developer has built and ones that are intended to depict curb appeal and function of the site upon completion of the initial phases is desirable. Proposal Phase If invited to participate in the Proposal Phase, the Developer s proposal shall include the following: 1. Proof of Financing The developer shall identify a detailed history of successful projects that have been completed with an emphasis on similar waterfront projects, if applicable. A developer shall also identify intended funding sources for the projects, along with term sheets as may be appropriate. We are not looking for final commitments at this point, but they would be helpful if available. A developer shall also identify an overall timetable for the project, taking it from initial award of development rights through implementation. 2. Developer s Payments to Park District It is the intent of the Park District to enter into an agreement to provide the Developer exclusive rights to develop the entire property contemplated in the project area. However, lease-hold interest rights to the land shall be released in phases following successful performance of each phase of development, and as approved by the Decatur Park Board of Commissioners). For example, if the initial development area is 20 acres and the first phase on which the Developer plans to immediately construct buildings is 2 acres, the Developer would receive exclusive rights to develop the entire 20-acre parcel (subject to appropriate ongoing performance criteria), but will only receive the title to the 50-year leasehold interest of the initial 2 acres after financing has been secured and before construction has begun. CHANDLER COVE DEVELOPER RFP 10
15 The Developer shall identify in his/her proposal an initial upfront payment for the rights to the lease-hold interest in the project, and a subsequent payment based on a percentage of the sale of the lease-hold interest in a condominium unit to third-party buyers. The initial upfront payment shall be made prior to commencement of construction and the subsequent payment shall be made at the closing of sale to a third-party buyer (i.e., customer of the Developer). 3. Detailed Submission Requirements/Project Information The proposals being submitted must demonstrate a well-planned and detailed development program, high-quality and appropriate design concept, and financial strength to undertake the project. The minimum items that must be submitted for consideration for the purchase and development of the project are listed below. The Park District reserves the right to reject any proposal submissions without the minimum items indicated below. a. Summary of Overall Proposal (1) Narrative and vision statement summarizing the overall project, including the need/demand for the proposed uses, key benefits (public and private) of the proposal and project development costs (2) Development team (3) Ability to undertake the project (4) Marketing plan. Please include a marketing plan that includes, at a minimum, the following items: Identification of target market Presale/rent/lease marketing plan Promotion schedule/phasing Marketing team b. Project Proposal Development Plan (1) Design concept drawings minimum concept drawings to include: Site plan (to scale and legible) showing building elements, landscaping, parking and access (vehicular and pedestrian) Elevations (to scale and legible) Please note: Perspectives, renderings, 3D modeling and electronic presentations are not required; however, they may enhance understanding of the proposal. Digital presentation material on CD may be submitted to supplement the proposal hard copies. (2) Development program including square footage by proposed use(s) for sale with breakdown for each floor. Project schedule including: Closing on property lease Design Anticipated zoning and permit approvals CHANDLER COVE DEVELOPER RFP 11
16 Funding commitments based on the proposed funding sources Construction start/completion Occupancy c. Project Proposal Funding (1) Cost estimates detailing all land assembly, hard costs and soft costs. Include all assumptions. (2) Table showing the source of all funds to undertake development (including bank participation, owner equity, and any other sources that may be pursued). The proposed financing arrangements must be verified by a letter from the financial source/institution indicating the project has been reviewed and the source/institution is willing to favorably consider a loan application to finance the project. (3) Expected terms for the project financing by source, including loan amounts, interest rates, term length and any special loan covenants/requirements. (4) Include a standardized format for summarizing the sources of funds for construction financing, permanent financing and uses of funds. The standardized format will assist the selection committee in comparing the proposals during the evaluation process. d. Sustainable and Environmentally Sensitive Construction Methods and Materials The Decatur Park District and City of Decatur are committed to encouraging efforts to increase and enhance building methods that promote sustainability, increase energy efficiency and reduce adverse impacts on the environment. Therefore, preference will be given to proposal designs that incorporate sustainable and environmentally sensitive construction methods and materials. Proposal submissions should indicate how the project will utilize green building methods to address the aspects of development listed below: Integrated Design: An integrated design process incorporates sustainability upfront, uses a holistic and total-systems approach to the development process, and promotes good health and livability through the building s life cycle. Examples include utilizing a developer, an architect, an engineer, a landscape architect and a contractor who are all experienced with green building. The team must be committed to environmentally responsive, resource conserving and healthy building principles and practices. Site, Location and Neighborhood Fabric: The site provides unique opportunities to create a more walkable, livable community, while helping restore, invigorate and sustain livable development patterns. Examples include making the site safer and more inviting for walkers and bicyclists and making connections to surrounding amenities. Site Improvements: Sustainable design and site planning integrate design and construction strategies to: minimize environmental site impacts; enhance human health; reduce construction costs; maximize energy, water, and natural resource conservation; improve operational efficiencies, and promote environmentally sensitive transporta- CHANDLER COVE DEVELOPER RFP 12
17 tion. Examples include appropriate surface water (run-off) management and use of vegetation to reduce energy use. Water Conservation: Water efficiency conserves the finite water resources and reduces utility bills. Examples include specifying and installing water-efficient appliances and plumbing fixtures, implementing low-water landscape and irrigation strategies, and taking advantage of rainwater catchment. Energy Efficiency: Energy efficiency helps to maximize resident comfort and health, and reduces utility bills. Examples include the installation of high-efficiency mechanical and electrical systems. Materials Beneficial to the Environment: Reducing, reusing and recycling building materials conserve natural resources and reduce emissions associated with manufacturing and transporting raw materials. Examples include the use of recycled building materials and recycling and reuse of construction debris. Healthy Living Environment: Creating a healthy living environment involves the use of materials that do not cause negative health impacts for residents or workers, especially for more sensitive groups such as children, seniors and individuals with existing respiratory problems and compromised immune systems. Examples include limiting the use of hazardous materials on the jobsite and reducing the use of volatile organic compounds (VOC) paints and primers. The criteria above were inspired by the work of Enterprise Community Partners through the Green Communities Initiative. Additional information on this initiative is available at This RFP does not establish green community standards for the development. However, the proposals will be evaluated according to the extent that the projects will address the above criteria. This will be included as a consideration during proposal review. e. Issues and Concerns The proposal should identify any issues or concerns in relation to the project. f. Project Team (1) Provide an organization chart for the development of the project, including the Developer, project manager, architects/engineers and marketing personnel. (2) Provide resumes of the principal participants involved in the project. (3) The proposals should include a summary of the experience of the project team, similar projects that the development team has been involved with and how that experience will be useful in undertaking the proposed project. I. SELECTION PROCESS SCHEDULE The following is the current planned schedule for the developer selection process. This schedule may change at any time as determined by the Park District: CHANDLER COVE DEVELOPER RFP 13
18 1. Overall Project Timetable for Developer Selection a. RFP presented to Developers/publicized 8/16/13 b. Qualification Phase RFP due date 9/20/13 c. Initial selection of shortlisted Developers 10/02/13 d. Shortlist Proposal Phase due date 1/03/14 e. Selection of Developer 1/15/14 f. Developer to prepare final project plans & specifications, secure financing commitments 4/2/14 g. Final approval by Park District Board / closing option Phase One 5/21/14 h. Developer prepares final designs of vertical construction and receives city permit to build 8/1/14 i. Construction of initial phase of Developer on Phase One Fall 2015 IV. OFFER TO NEGOTIATE The Developer selected for consideration under this RFP will enter into a period of exclusive negotiations with the Decatur Park District for up to six months. During the exclusive negotiation period, the Developer will undertake predevelopment activities outlined below. If the Park District and the Developer are able to reach an agreement on the development terms (development programs, financing plan, and development schedule), the Park District will move forward with the public and legal processes to lease Phase I of Parcel 1. If the Park District and Developer are unable to reach an agreement, either party may withdraw from the project without liability. The Park District may open discussion with a second Developer at that time. All Developers shall pay for their costs to respond to the RFP and subsequent submissions of prepared materials, etc. A. DEVELOPER S RESPONSIBILITIES 1. During the exclusive negotiation period, the selected Developer will complete predevelopment activities based on the scope of work suggested herein, for both development scenarios. The Park District, at its discretion, may request additional information from the Developer, as it determines necessary to make a selection and further award the Developer s rights. The Park District may request any additional information as it determines appropriate to select a Developer that is in the best interest of the Park District. All Developers are responsible for the cost of preparing all information in response to this RFP and any additional information as requested by the Park District. CHANDLER COVE DEVELOPER RFP 14
19 EXAMPLE DEVELOPER BID SHEET CHANDLER COVE MIXED-USE DEVELOPMENT PHASE I DECATUR PARK DISTRICT DECATUR, ILLINOIS I. Land Payment for Phase One A. Initial Deposit Payment/Down payment by Developer $ Payment made at closing of Phase I lease of Parcel 1. B. For Sale Residential Condominium Units % of selling price per unit To be paid at closing of sale to third-party buyers (attach schedule if desired varying the percentage per varying condominium values). C. Commercial/Retail/Restaurant Uses $ /s.f. for the total square footage of these uses To be paid once commercial construction units are occupied by a tenant. D. Linked Marina Slips $ /slip To be paid once Phase I of the marina is open/ available and a linkage/lease document is presented. Developer to state how many slips are desired (maximum of 25 slips for Parcel 1). A 25-year priority Timetable for slip lease/linkage is anticipated. CHANDLER COVE DEVELOPER RFP 15
20 Chandler Cove Developer Request for Proposal Attachment One Nelson Park Master Plan CHANDLER COVE DEVELOPER RFP 16
21 Chandler Cove Developer Request for Proposal Attachment Two Nelson Park Overlay District Zoning CHANDLER COVE DEVELOPER RFP 17
22 Chandler Cove Developer Request for Proposal Attachment Three St. Mary s Hospital Impacts CHANDLER COVE DEVELOPER RFP 18
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