REQUEST FOR PROPOSAL. Issued by: The Department of Housing & Community Development, Land Resources Division. Catherine E.
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2 City of Baltimore 2017 REQUEST FOR PROPOSAL Release Date: Thursday April 6, 2017 Proposal Submission Deadline: Tuesday September 12, 2017 at 3 pm Issued by: The Department of Housing & Community Development, Land Resources Division Catherine E. Pugh Mayor Michael Braverman Acting Housing Commissioner Wendi Redfern-Curtis Acting Deputy Commissioner, Land Resources Call or V2V@Baltimorecity.gov
3 vacants to Vacants to Value is an innovative and award winning blight elimination initiative. While Baltimore s vacant and abandoned building stock is often viewed as a problem, it is also an opportunity. Redeveloping these properties can help raise property values, create community amenities, increase local tax revenue, and attract new residents and businesses. The purpose of this Request for Proposals is to identify qualified developers, review proposals and award specific properties for redevelopment throughout Baltimore City. Proposals and applicants determined to be qualified will be eligible to negotiate with the City of Baltimore to purchase city-owned properties for their specific proposed uses. Applicants can include individuals, not-for-profit organizations, for-profit organizations, or a partnership between any of these entities. In addition, applicants will be asked to provide management, financial, and community engagement plans, as well as other relevant information. Please read this document thoroughly. If you have further questions, call TABLE OF CONTENTS I. Introduction (page 3) 1.1 Request for Proposals 1.2 Goals 1.3 Eligibility 1.4 Review Process II. Application Contents (page 6) 2.1 Developer Capacity 2.2 Project Concept 2.3 Cost Estimate and Economic Feasibility 2.4 MBE/WBE Participation III. Application Evaluation (page 9) 3.1 Applicant Capacity and Experience 3.2 Quality of Proposed Development Concept 3.3 Economic Feasibility 3.4 Benefits to the City 3.5 Opportunities for MBE/WBE Participation IV. Standards and Controls (page 11) 4.1 Site Conditions and Terms 4.2 Community Development Clusters 4.3 Easements 4.4 Community Participation 4.5 MBE/WBE Participation 4.6 Additional Applicant Responsibilities 4.7 Financing Assumptions 4.8 Exclusive Negotiating Privilege & Approval 4.9 Environmental Disclaimer V. Administrative Information (page 15) 5.1 Issuance Information 5.2 Rights Reserved by DHCD 5.3 Compliance with the Law VI. Required Forms (page 16) 6.1 Applicant Information 6.2 Applicant Disclosures 6.3 Certification Form V2V@baltimorecity.gov
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6 1.3 Eligibility vacants to Threshold criteria that an applicant MUST meet in order to be considered include the following items: - No forfeitures or liens filed within the last three years with the exception of mechanic s liens, in which case the applicant must provide a list showing who filed judgment, the date of the filing, the amount and the date the judgment was resolved. - Any outstanding code violations on property(ies) owned by the applicant(s) should be identified along with an explanation of why the violation was received and the schedule for abatement. An applicant may be rejected at any time during the application process if unabated Building Code Violations are found, or if the applicant has a long record of receiving Violation Notices. - No loans that have been defaulted on within the last five (5) years. - No declarations of bankruptcy within the last three (3) years. - Legal entities must be in good standing with the State Department of Assessments and Taxation. 1.4 Review Process DHCD will screen applications to ensure that they meet the threshold criteria as described above. Applications meeting the threshold criteria will be reviewed by representatives from DHCD, and other team members as selected by the Land Resources Division of DHCD, based on a set of ranked criteria as described in Section III: Application Evaluation below. DHCD may approve or deny applications at its discretion. Applicants meeting the criteria will not necessarily be awarded properties through this initiative. Applicants may be asked to make a presentation to a team of reviewers, and/or to submit follow-up information. 5
7 II. APPLICATION CONTENTS vacants to Applications should provide a clear and concise description of the proposal and demonstrate the applicant s ability and capacity to complete the proposal. Applicants are required to submit the following information in the format described below and in sufficient detail to enable the reviewers to give ample consideration to the application. Applications must include, at a minimum, the information requested below in its entirety and the forms listed in Section VII, and may also include any background or other supporting information that the applicant feels necessary. Applications need not and should not be elaborate or costly to prepare. Applications should, however, be prepared in a professional manner and in the format described. Completed applications shall be in the format described herein. Please submit one (1) original with signatures plus ten (10) copies totaling eleven (11) submissions of each application. In addition, please include one electronic version. All proposals must be delivered to the Land Resources Division, Baltimore City Department of Housing and Community Development, Attention: 2017 Surplus Sale, 417 East Fayette Street, 10th Fl., Baltimore, Maryland by Tuesday, September 12, 2017 at 3 pm Eastern Standard Time. Proposals will be dated and time-stamped upon submission and a receipt will be provided. All applications must have a table of contents and each section clearly labeled/tabbed. Failure to submit the application in the manner described above may result in the application being rejected. 2.1 Developer Capacity a. Provide a narrative statement describing the applicant s relevant education and development experience, as well as that of any major partners. Provide specific information on projects that are similar in scale and character to the proposed development, including the nature and dollar value of each project, the project manager s name and contact information from at least one participating lending institution. If a partnership is planned, describe the nature of the partnership. Suggested length is one page, maximum length is two pages. b. Provide resumes for the project team, including, if applicable: architect, engineers of all appropriate disciplines, contractor and/or construction manager, and marketing agent and property management firm. Resumes should include a description of experience and completed projects that the reviewers may visit V2V@baltimorecity.gov
8 vacants to c. Respondents must provide sufficient financial information to establish the approximate net worth and liquid assets available to the development team to complete the project. Provide supporting documentation for the above financial information. Be advised that the analysis of this statement will include a comparison of stated available assets and the estimated equity required for the development. All financial information will be treated with the strictest confidence within the agency. d. Applicants that are companies or entities not publicly traded must submit accountant prepared financial statements for the most recent fiscal year. e. Not-for-profit entities must provide a summary of funding sources and confirmation of their 501c(3) designation. f. Complete the Owned Property Disclosure form (VI. 6.4). Include all properties owned or managed by the development entity and any principal with at least a 10 percent interest in the development entity. 2.2 Project Concept a. Provide a cover letter signed by an officer authorized to make a binding contractual commitment for the firms or organizations on the development team. b. Provide a completed Respondent Information form (see Section VI). List one reliable and easy-toreach contact for the development team. c. Provide a detailed and clear concept of the proposed project indicating the scope of work, scale and character of the project, incorporation and utilization of unique features, proposed purchase price, and any and all conditions thereon. d. Provide a visual representation of the proposed development and provide schematic plans that include typical floor plan(s) and elevations of front, side and rear views. Such visual representation need not be elaborate or costly, but should offer DHCD and the Review Panel a clear picture of the proposed end result. 7
9 vacants to e. Provide a proposed project timeline for the design construction and occupancy periods. f. Provide a description of the construction quality, green building techniques utilized, any energy efficiency gains produced, and the quality of the internal aesthetics. The design proposal must meet or exceed the requirements of the RFP. g. Provide a description of the marketing strategy for the proposed project. h. All construction must be completed within twelve (12) months of settlement date. 2.3 Cost Estimate and Economic Feasibility a. Provide a narrative statement explaining the economic feasibility of the proposed development and a rationale for the proposed project s market feasibility. The statement should clearly explain the connection between the concept and the feasibility. A full market study is not required, but the statement should demonstrate the respondents understanding of the larger market issues and how the project will be successful within that context. If possible, provide supporting documentation for the market assumptions. b. Provide a development budget indicating the estimated costs of rehabilitation of the Site. This budget should include the purchase price that will be offered to the City as well as the estimated capital (i.e. infrastructure), operating (i.e. labor, fees, etc.), and anticipated revenues. Provide a Sources and Uses statement of the assumptions on which these estimates are based, such as previous comparable projects or estimates provided by contractors. A commitment letter from a lending institution may be required. If the project anticipates such sources of funding as foundation grants, corporate gifts or governmental program funds, provide a summary of the source funds that includes a timetable of when applications are available and when awards are made. In addition, describe the applicability of the project to the goals of the funding source. Please note: Baltimore City is not likely to provide cash subsidies. c. Provide a project timeline. Be sure to indicate any revisions to existing governing regulations for the Site, such as zoning, that would be required to carry out the proposed development. Please include the time required to seek such amendments in the design portion of the timeline V2V@baltimorecity.gov
10 vacants to 2.4 Community Benefits a. Indicate how this project will provide long and short term benefits to the city and residents. Benefits can include economic, social and physical impacts. Include statistics or data if necessary. 2.5 MBE/WBE Participation a. Indicate the minority- and-women-owned business participation in the proposed site development, if applicable. b. Provide a list of minority-and-women-owned businesses, consultants, financial institutions, and employees who will be asked to participate in this work, if applicable. c. Indicate any additional steps that will be taken to maximize minority and women participation in the development and operations of the development site. III. Application Evaluation Listed below are the criteria upon which the application will be evaluated. 3.1 Applicant Capacity and Experience - 25 points a. The applicant has a satisfactory record of past performance as demonstrated by their experience in planning, financing, development, marketing, and managing projects, similar in size and scope to the proposed site. b. The applicant has sufficient education and/or experience in real estate development to develop and manage a successful redeveloped site, and/or has a strong partnership with an entity that does. c. The applicant has a track record of successful relations with government entities and/or community members. d. The applicant has the ability to obtain and maintain sufficient financial resources to successfully start, manage and complete the proposed development in the allotted time. 3.2 Quality of Development Concept - 25 points a. Meeting or exceeding the requirements of the application. b. Quality of business/management plan proposed. c. Contributions to the economic, social, physical and environmental well-being of the City and its residents. 9
11 vacants to 3.3 Economic Feasibility - 25 points a. Development is economically sound and based on an established model which is supported by market assumptions. b. Ability to leverage funds from a variety of sources. 3.4 Benefits to the City -15 points a. Direct financial benefits to the City of Baltimore that include but are not limited to: payment for purchase of site, tax revenues and financial impacts. Proposals that limit the costs and subsidies from the City will be viewed more favorably. b. Contributions to the economic growth of the City that include but are not limited to: increased jobs for City residents, meeting the demand for quality housing, and other positive contributions to long-term economic growth of the City. 3.5 Opportunities for MBE/WBE Participation -10 points a. Demonstration of MBE and WBE participation in the project. b. Applications that have significant MBE and WBE participation will be viewed more favorably. c. An application that has an MBE or WBE as an equity partner will receive additional favorable consideration V2V@baltimorecity.gov
12 IV. STANDARDS AND CONTROLS 4.1 Site Conditions and Terms vacants to a. It is the intention of DHCD to award properties to an applicant. However, DHCD reserves the right to require further documentation or training before doing so, and to discontinue negotiations with any qualified applicant at any time. b. Sites are offered in as is condition: i. Any site may contain environmental hazards. Neither the City of Baltimore nor DHCD makes any representation, guaranty, or warranty concerning any of the site s conditions, including the possible presence of hazardous materials. DHCD and the City of Baltimore will not bear any responsibility for or expense in the removal or treatment of asbestos, lead, or other hazardous materials. The selected applicant(s) shall indemnify and hold the City and DHCD harmless from claims or damages arising out of or in connection with the presence of or removal of such materials. 4.2 Community Development Clusters If the advertised properties are located on a block that includes privately-owned vacant buildings in addition to the city-owned properties included in the offered bundle, the entire block will be considered a Vacants to Value (V2V) Community Development Cluster. The V2V Community Development Cluster works as follows: a. The advertised city-owned vacant properties within the borders of the cluster will be conveyed to the selected applicant; b. DHCD s Code Enforcement Division will file receivership cases on any privately-owned vacant buildings within the borders of the cluster. The receivership process compels the owners of these vacants to sell or rehab their properties within a designated time period. If they do not, the properties are auctioned. The selected applicant is expected to participate at the auction. All bidders at the public auction must be pre-qualified to participate. 11
13 4.3 Easements vacants to Properties included in the advertisement may be subject to historic or utility easements. Terms of any easement may be subject to negotiations. 4.4 Community Participation It is the goal of DHCD that any new development ventures in the City of Baltimore, whether for-profit or non-profit, integrate well with the communities around them. Respondents are encouraged to contact the the community during the RFP process. DHCD requires formal community participation in the development and governance of its real estate investments to ensure long-term accountability. This participation is not expected to be fiduciary in nature and is expected to be inclusionary. Once the project is underway, DHCD will continue to require regular communication with residents, neighborhood organizations, elected officials and other government agencies during the planning, construction and, if appropriate, the operation of the project. Applicants are encouraged to meet with local community members to discuss the site management strategy and address community concerns or questions. 4.5 MBE/WBE Participation It is the policy of the City that minority and women-owned business enterprises should have maximum opportunity to participate in any and all components of the redeveloped site, including, but not limited to ownership, financing, design, construction, management, operations, and employment after site is operational. This project is subject to Article 5, Subtitle 28 of the Baltimore City Code requiring MBE and WBE participation. The City s Minority and Women s Business Opportunity Office (MWBOO) is designated to monitor MBE and WBE participation on this project. Developer shall comply with the rules and regulations of the MWBOO in meeting the MBE and WBE requirements V2V@baltimorecity.gov
14 vacants to For more details on meeting MBE and WBE requirements or for information regarding enterprises certified by the City, visit or contact: The Equal Opportunity Compliance Office City Law Department Baltimore City Hall, 100 North Holliday Street Baltimore, Maryland (410) EMPLOY BALTIMORE Employ Baltimore is designed to create opportunities that receive municipal contracts to access qualified City residents to meet their workforce needs. The initiative will also ensure that City dollars contribute to the local economy and improve the lives of employable Baltimoreans. All vendors responding to this solicitation shall complete the Certification Statement that is included as an attachment of this RFP. The selected contractor must contact the Mayor s Office of Employment Development (OED) within two (2) weeks of receiving the award and shall be expected to comply with the reporting requirements. For additional information, please contact OED (443) Additional Applicant Responsibilities a. The applicant shall be responsible for obtaining, at its sole cost, all permits, standard regulatory approvals, as well as any required engineering and applicable environmental studies. b. All acquisition costs shall be borne by the applicant including but not limited to, ordering of lien sheets, any applicable recordation taxes, or other charges. c. Any costs of appraisals, surveys, legal descriptions and any other typical development soft costs shall be borne by the applicant. * Applicants may be asked to respond to follow-up questions from DHCD or the Review Panel. 13
15 4.7 Financing Assumptions vacants to DHCD anticipates conveying each property at a price determined in accordance with the City s appraisal policy. DHCD will obtain an appraisal for any property with a projected value, greater than $20,000. The selected applicant is expected to obtain private construction and permanent financing. Requests for City financing and subsidy are strongly discouraged unless the request is part of a proposal to provide 15 percent of the rental units for non-elderly persons with disabilities. 4.8 Exclusive Negotiating Privilege and Approval Upon selection, DHCD may issue an Exclusive Negotiating Priviledge (ENP) for a period of thirty (30) days to the selected applicant setting out specific requirements and deadlines for fulfilling the requirements of the applications. The selected applicant will have seven (7) days in which to return the signed ENP. Qualified applicants will have the opportunity to negotiate with DHCD for the vacant building or city-owned land. Decisions regarding award of the site and terms of award are at the discretion of DHCD. The final award of any property is subject to the approval of the City s Board of Estimates. 4.9 Environmental Disclaimer The Department of Housing and Community Development for Baltimore City (DHCD) does not warrant any of the properties described or mentioned on this request for proposal, and do not warrant that any such properties shall be free from defects of any kind. Any mention or comments about the properties on the website or any marketing materials are merely the opinion of the DHCD and are not intended, and may not be relied upon as an endorsement or warranty of any kind, express or implied, concerning such properties. IN NO EVENT SHALL THE DHCD, ITS AGENTS, OFFICERS, MEMBERS OR EMPLOYEES, OR ANY THIRD PARTIES ASSOCIATED THEREWITH, BE LIABLE FOR ANY DAMAGES WHATSOEVER RESULTING FROM ANY REPRESENTATION, THE USE OR INABILITY TO USE THE INFORMATION, OR MATERIAL CONTAINED, WHETHER BASED ON NEGLIGENCE, STRICT LIABILITY, PRODUCT LIABILITY, WARRANTY, CONTRACT, TORT, OR ANY OTHER LEGAL THEORY, AND WHETHER THE DHCD IS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES V2V@baltimorecity.gov
16 vacants to V. Administrative Information 5.1 Issuance Information a. This application deadline is Tuesday, September 12, 2017, 3 pm Eastern Standard Time. All proposals must be delivered with the accompanying cashier s check or money order for Two Hundred Fifty Dollars ($250*) made payable to the Director of Finance to: Baltimore Housing s Land Resources Division ATTN: 2017 Surplus Sale 417 E. Fayette St., 10th floor, Baltimore, MD *Each property requires a separate application. Each application is $250. b. The City of Baltimore shall not be responsible for, nor in fact will pay, any cost incurred by any applicant in preparing and submitting an application or requested supplemental information. 5.2 Rights Reserved by DHCD DHCD reserves the right to: Accept or reject any and all applications, at its sole discretion, to waive minor irregularities, and to conduct discussions with all responsible applicants, in any manner necessary, to serve the best interest of the City of Baltimore. Request additional information from any or all applicants if necessary to clarify statements or data contained in the proposals. Reject any proposal as a result of misrepresentation of any information contained in the proposal. The Baltimore City Housing Commissioner makes the final decision regarding the award of the project and thereby retains the right to accept, reject or revise all recommendations. Additional information may be requested from the staff or any or all respondents. 5.3 Compliance with the Law By submitting an application, applicants agree to comply with all Federal, State, and City laws, rules, and regulations, and ordinances applicable to their activities and obligations if awarded a lease. 15
17 VI. Required Forms vacants to All forms below must be included with the applicant s application along with all information requested in Section II. 6.1 Applicant Information Form Please fill out this form for the primary applicant, whether an organization or individual. This information will be used by DHCD to communicate with applicants about the status of their application. Applicant Name: Type (check one, if applicable): For-profit entity Non-profit entity Legal Address Line 1: Legal Address Line 2: City: Zip Code: State: Phone 1: Phone 2: Fax number: Website: Year of birth or establishment: SSN or Tax ID #: If applicant is a non-profit entity, and is registered with the IRS, what designation was provided (i.e. 501c3, 501c4, etc.)? Does the applicant have a parent company? Yes No If yes, provide an additional copy of this form with information about the parent company. Is the applicant part of a joint venture? Yes No If yes, provide an additional copy or copies of this form with information about the partners in the venture V2V@baltimorecity.gov
18 6.2 Applicant Disclosures vacants to a. Please identify any business entity or organization in which the applicant is, or was formerly, a principal partner, managing member, or otherwise owned or controlled more than 50% of the shares or assets of such entity/organization. 1. Party in a pending lawsuit. Yes No 2. Conviction or pending case for fraud, bribery or grand larceny. Yes No 3. Conviction or pending case for arson. Yes No 4. Indicted for or convicted of any felony within the past 10 years. Yes No 5. Adjudged bankrupt, either voluntary or involuntary, within the past 10 years. Yes No 6. Unpaid delinquent taxes, municipal liens, and/or outstanding judgments. Yes No 7. Declared in default of a loan or failed to complete a development project. Yes No 8. Failed to complete or currently in violation of a Land Disposition Agreement or other agreement involving the City of Baltimore. Yes No 9. Own a property which currently has a Vacant House Notice or other housing code violation in Baltimore City or elsewhere. Yes No 10 Failed to obtain required building permit for work performed. Yes No 11 Failed to register a currently owned, non-owner occupied dwelling unit in Baltimore City as required by Baltimore City Code Art Yes No 12. Failed to comply with inspection and/or registration requirements under the Maryland Lead Law. (Maryland Code: Environment ; Article 48A ; Real Property ) Yes No Applicant Development Information Proposed Use: (Please briefly describe your intended use for this development site) Development Timeline: (Please briefly share your estimated development timeline for completion of this project) Acquisition Cost: (Sale price offered for this property) Estimated Development Costs: (Rehab costs for the redevelopment of this property) Sources & Uses: (Please attach the budget details for private and public debt, equity and financial assets.) Estimated Re or Rental Details: (Please attached annual revenue, income and rental expenses and/or estimated s price.) 17
19 vacants to Business Entity Name Applicant s Role or Position (i.e. Architect, Engineer, General Contractor, Marketing Agent, Legal, etc.) b. Is the company Minority Owned? Yes No If yes, name of Certification Agency: Certification No: Term Start Date: Term End Date: c. Is the company Woman Owned? Yes No If yes, name of Certification Agency: Certification No: Term Start Date: Term End Date: d. If the answer to any of the questions below is yes, please provide a full explanation including as appropriate for each case (1) date, (2) charge, (3) place, (4) court, (5) action taken and (6) current disposition. Attach documentation, as necessary V2V@baltimorecity.gov
20 6.3 Certification Form vacants to If the applicant is part of a joint venture, please submit an additional copy or copies of this form on behalf of the partner entity or entities. I,, am the applicant, or am an officer authorized to make a binding contractual commitment for the applicant. I have received, read and understand the provisions of this application. I acknowledge that failure to disclose a material fact or to misrepresent a fact can result in disqualification of the application from further consideration. I certify that all information contained in this application, including but not limited to the disclosure information above, is true and correct to the best of my knowledge and belief. I understand that by signing this form in conjunction with submitting an application, the City may, at its choosing, conduct a check with credit verification or similar agencies. I understand that the City is not obligated to pay, nor will it in fact pay, any costs or losses incurred by the applicant at any time, including, but not limited to, the cost of: (1) any prior actions by the applicant order to respond to the RFQ, and/or (2) any future actions by applicant in connection with any negotiations between the applicant and the City of Baltimore, including, but not limited to, actions to comply with requirements of the Department of Planning, the Department of Housing and Community Development, the City of Baltimore, or any applicable laws. I agree that I will not enter into, execute or be a party to any Covenant, Agreement, Lease, Deed, Assignment or Conveyance, or any other written instrument which restricts the, lease, use or occupancy of the property or any part thereof, upon the basis of race, color, religion, sex, gender identification, sexual orientation, or national origin and will comply with all Federal, State, and local laws, in effect from time to time, prohibiting discrimination or segregation and will not discriminate by reason of race, color, religion, sex, gender identification, sexual orientation, or national origin in the, lease, use, or occupancy of the property. Signature: Date: 19
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