CITY OF TRENTON DEPARTMENT OF HOUSING & ECONOMIC DEVELOPMENT

Transcription

1 CITY OF TRENTON DEPARTMENT OF HOUSING & ECONOMIC DEVELOPMENT REQUEST FOR PROPOSALS FOR THE REDEVELOPMENT OF THE FORMER IMANI CHURCH LOCATED AT 350 SPRING STREET (BLOCK 2502, Lot 1) AND PARKING LOT LOCATED AT 347 SPRING STREET (BLOCK 2503, Lot 1) Request for Proposal Issued: March 18, 2016 Proposals Due: April 18,

2 I. Purpose of RFP The City of Trenton (the City ) is seeking qualified proposals for the redevelopment of both the City-owned vacant lot located at 347 Spring Street, Trenton, New Jersey and designated as Block 2503 Lot 1 on the City of Trenton Tax Map (the Parking Lot ), and the land and improvements located at 350 Spring Street, Trenton, New Jersey and designated as Block 2502 Lot 1 (the Building and collectively, the Property ). The City will entertain viable redevelopment options to redevelop the Property that adhere to the goals and vision of the existing redevelopment plan for that area. II. Site Description The Building is 22,872 square feet. In most recent history, the Building was used as a church facility and the land upon which it sits is 1.04 acres. The Parking Lot is.59 acres. In April 2015, the City acquired the Property through in rem tax foreclosure. The Property has been vacant for a substantial amount of time and has not been maintained. As a consequence of years of vacancy and neglect, the Property in a state of disrepair and will require a significant amount of rehabilitation. The Property is situated in the City s Central West Redevelopment Area (the Redevelopment Area ) pursuant to which the City adopted the Central West Redevelopment Area Plan (the Redevelopment Plan ) in September 1988, which was subsequently amended in October 1988, June 1989, January 1994, September 1998 and May 2009 (see Attachment A). III. Surrounding Area The Property is nestled in the heart of a residential area in the City s West Ward. The City has been engaged with developers to construct new housing opportunities in an effort to revitalize this area. Less than a minute away is the City s Statehouse District and Thomas Edison State College s brand new multi-million nursing education facility, which is currently under construction. Other area and regional attractions include: Arm & Hammer Park, home to Trenton Thunder Baseball team (Double A Affiliate of the New York Yankees). 5 minute drive Sun National Bank Center, 5 minute drive Princeton, New Jersey, 15 minute drive Lambertville, New Jersey, quaint riverside town, minute drive New Hope, Pennsylvania, quaint riverside town, minute drive U.S. Route 1 shopping and employment centers, 10 minute drive Quick access to major highways (U.S. Route 1, I-295, I-105, Route 29) 2

3 IV. Relevant Documents Central West Redevelopment Area Plan: Attachment A Respondents to the RFP are encouraged to familiarize themselves with the vision and guiding themes of the Central West Redevelopment Area Plan as any future redevelopment of the Property must further the City s vision and goals as set forth in the Redevelopment Plan. V. Environmental Condition The City acquired the Property through in rem foreclosure in April The City has no knowledge or information as it pertains to the past or present environmental condition of the Property. Consequently, the Property will be sold in As-Is condition. VI. Background Information (City Demographics) Trenton, New Jersey is a 7.5 square miles with a history that dates back more than 300 years. The City is located in Central New Jersey on the Delaware River, and serves as the State Capital and the Mercer County Seat. Trenton is located in one of the most affluent counties in New Jersey. Trenton s population is 85,044 (American Community Survey (ACS), U.S. Census Bureau ). Approximately 53% (44,756) of Trenton s population is African American, 34% (29,156) is Caucasian and 13% (11,132) is other. Breaking down the population even further by ethnic mix, approximately 33% (27,985) of the population identifies as Hispanic while 67% (57,059) identifies as Non-Hispanic. Additionally, in recent years the City has witnessed a marked increase in the numbers of immigrants who have selected Trenton as a place of residence. The recent ACS shows a small increase in population since the 2010 decennial census totals which is likely indicative of a stabilization of the City s population. Still these figures reflect a decline in population from a peak of over 128,000 in the 1950 s. According to the ACS, the median family income in the City was $43,029 and the median household income was $37,219. In contrast, the median family income in Mercer County was $92,817 and the median household income was $73,883. The major employers in Trenton today include the State of New Jersey (20,000), Mercer County (1,600), the City (1,100), the Trenton Public School District (2,400), Capital Health Medical Center (1,500), St. Francis Medical Center (1,045), the Hibbert Group (480), and Hutchinson Industries (350). Currently, the City has two industrial parks (Hill Industrial and Route 1 Commerce) with over 145 workers. The City has a workforce with varying levels of skills, educational and technical experience. Based upon the current economic climate, the City recognized the need to adjust its economic development focus and address City-wide needs for job creation, tax revenue generation, workforce development, and business retention, expansion and attraction. To that end, City leaders, residents, property owners and stakeholders share a collective vision of the City s 3

4 revitalization that builds upon the City s many assets and opportunities. This revitalization includes a developed waterfront, a diverse workforce and residential population, quality housing stock, a vibrant downtown, high quality industries and a range of employment options and options for retail, dining, arts, culture and entertainment. Additionally, the State of New Jersey, recognizing the challenges faced by the Capital City, has provided extra incentives in its new legislation (The Economic Opportunity Act of 2013) aimed at spurring development and private sector growth for developers and businesses which choose the City as a place to relocate, expand and develop. As a result of its designation as a Garden State Growth Zone under the Economic Opportunity Act of 2013, projects locating in Trenton will have significantly lower eligibility thresholds and higher incentive levels for development and business development and expansion. VII. RFP SUBMISSION REQUIREMENTS Each proposal submitted in response to this RFP must be formatted as a single bound volume and must be submitted at or before the date set forth in this RFP. The City, in its sole discretion, may reject any submissions made after this time. An original and three (3) copies of each proposal must be provided. Each Respondent must submit the information requested in standard letter size format for their proposal to be complete (fold out documents will be accepted). The outside of the package containing a proposal should be clearly marked with 347 and 350 Spring Street Proposal and mailed or hand-delivered on or before the date set forth in this RFP to: City of Trenton, Department of Housing & Economic Development, Division of Real Estate, 3 rd Floor City Hall, Trenton, New Jersey All submittals must include a minimum of the elements as described below in A through H. Although the City is not obligated to evaluate incomplete submittals or to accept additional and supplemental materials, it may choose to do so if it determined that such acceptance will not give a competitive advantage to any Respondent. All submittals should be concise and address the City s goals and objectives as listed in this RFP and relevant supporting documents. A. Cover Letter and Executive Summary The submittal must include a cover letter with a statement that the individual signing the letter is authorized to obligate the entity to proceed with negotiation of a Redevelopment Agreement should the entity be designated as developer for the project. The proposal must also include an executive summary of the principal elements of the submittal, including a project description and development timetable, as well as the team s approach to the development, proposed uses, financing, as well as offering price and terms. PLEASE NOTE: The City is not offering a minimum price for this project. For informational purposes, the assessed value of the Building is $2,710,000 and the Parking Lot is $76,300. The offer amount should be based upon factors including but not limited to, assessed value, appraised value, if any, project financing, and estimated rehabilitation or construction costs. The offering price is not considered the sole deciding factor as the City evaluates proposals. The City reserves the right to negotiate the final price with the selected redeveloper as part of the disposition agreement process. 4

5 B. Development Entity and References The City is seeking sufficient information about the Respondent s development team to evaluate the team s competence and experience to undertake the proposed project. Respondents are free to present this information in a format and to a degree of detail that in their judgment is adequate for these purposes. The following is a suggested format for consideration: A description of the type of legal entity (i.e., corporation, joint-venture, LLC) that would serve as the Designated Developer of the proposed project and would be party to the Redevelopment Agreement with the City. If the entity is a subsidiary of, or otherwise affiliated with, another organization, the Respondent shall indicate such a relationship. The description shall include any participating development entities that are deemed important to meeting the City s goals and objectives for the redevelopment of this site. A description of all participants in the Respondent s development team including those members responsible for the building design, rehabilitation, landscape and site design, land use planning, engineering, permitting, legal and financial analysis, environmental compliance and community relations, as well as investors and proposed lending institutions. This information should include, but not be limited to, company profiles of firms on the proposed team and individual resumes of key personnel who would be assigned to the project. Brochures detailing the individual team members qualifications may be included as a separate appendix. Submit an organizational chart showing all team members, the responsibility of each team member, and the proposed interrelationships of the team with the City during the design, development and operation of the project. For each company/individual involved in the proposed project, identify the company or individual involved, including the name, address, telephones and fax numbers and primary contact person for each listing. The list of companies and individuals shall include at least the following: Developer Architect(s) (site, buildings, landscape) Land Use/Environmental Planner (if known) Engineer(s) (geo-technical, traffic, structural, etc., if known) Attorney(s) (if known) Lender(s) (if known) General Contractor (if known) Other 5

6 For each member of the Respondent s team noted above, identify the names of all principals who will be responsible for the development, rehabilitation, construction or operation of the project and provide professional resumes for each such principal. The proposal shall identify the persons responsible for each activity related to the permitting, design, financing and construction or rehabilitation of the project. The proposal shall identify one or more individuals who have full power and authority on behalf of the Respondent to negotiate and execute the Redevelopment Agreement. Three (3) references are required that can specifically address the capability of the Respondent to undertake similar redevelopment projects. References should include name, title, addresses, telephone numbers, fax numbers, and addresses and a brief description of the relationship to the development entity in regard to previous experience. In addition, the proposal should identify any potential conflicts that the individual team members or firms may have because of current or prior relations with the City, City-related boards and individuals, or its consultants. The City reserves the right, in its sole discretion, to request additional information on potential conflicts of interest and to limit or prohibit the part the participation of any team member or firm due to any such conflict of interest. To the extent that public disclosure laws may be applicable, participants in the development team shall be responsible for complying with all applicable requirements. C. Project Experience The City is seeking sufficient information on the Respondent s project experience. To that end, the Respondent shall provide at least two (2) projects of similar scope and complexity where the development team and consultants played a substantial role. The respondent shall include a narrative or outline that provides sufficient detail to describe the development team s considerable past experience in the development and management of the projects. All individuals listed as contacts on existing projects may be contacted and should be available to assess the Respondent s record relating to the project(s). In addition, the City may consult references familiar with the Respondent or members of the Respondent s team regarding past experience, qualifications, performance, or other matters, regardless of whether the specific individuals are identified in the proposal. The proposal should demonstrate that all of the team members have experience in the redevelopment of similar size and scope projects in a comparable urban setting. D. Understanding of the Redevelopment Process The proposal should clearly demonstrate an understanding of the scope and tasks required for the design, financing, construction or rehabilitation of the proposed project and the challenges to 6

7 successful completion of such a project in accordance with the project schedule. The Respondent should demonstrate an understanding of the challenges of undertaking and completing the project in the City of Trenton, New Jersey by including in its proposal, among other things, a detailed plan schedule for meetings with all relevant constituencies. With respect to project financing, each Respondent should demonstrate its approach to the financing, the risks and issues involved and how the Respondent will mitigate these financial risks and address the issues. E. Proposed Project and Schedule The Respondent shall include a statement of the proposed project. This statement must list the types of uses (i.e., retail, residential, office, restaurant, church, etc.) by approximate square footage. Residential, retail, office, restaurant or other uses shall be identified by the approximate size of each use. For any residential use proposed, the Respondent shall state the type of units, whether rental or ownership, proposed rent levels or price points and proposed number of bedrooms. The inclusion of accessory retail space and amenities available to the public is encouraged. Each proposal should include a program description reflecting the contemplated building design. Submissions of conceptual site plans with representative building elevations are encouraged. The program description should include, at a minimum, the following: Estimate building size, stories, (for new construction) Proposed exterior building materials (new or rehabilitation) Building orientation (for new construction) Estimate gross square footage for each use Estimate of number of onsite parking how parking needs will be addressed. Each proposal should also provide information on employment generation (construction and permanent jobs), secondary spending on and off-site, as well as property taxes to be generated. The Respondent shall describe the proposed project schedule including key steps in permitting, financing, design, construction or rehabilitation (including start and completion), and leasing/sale and occupancy, if applicable. It is preferable that the schedule be submitted in CPM (Critical Path Method) schedule format or in large chart format. F. Proposed Project Cost and Capital Structure; Financial Capacity Describe with sufficient detail the key financial components of the Respondent s proposal, including rental terms, price point projections, revenue projections, and the Respondent s financing strategy. At a minimum, the Statement of Proposed Financial Terms and Assumptions should include the following (draft development pro formas are encouraged): 1. Respondents should describe their plans for funding all required improvements, including identifying sources of funds. Such description should include the proportion of equity to 7

8 debt financing, and identify any special restrictions or conditions associated with the financing plan. Respondents should also include evidence of financing resources and their concurrence with the proposed development program; 2. Identify any local, state or federal financial assistance that will be required, or is being considered, to implement the project. PLEASE NOTE: Although it is recognized that public funds may be sought to bring this project to completion, the greater the reliance on public subsidies the less favorably the proposal will be evaluated. To the extent the Respondent intends to utilize grant or other public funds, describe the source of such funds and the status of any commitments from the granting agency, and the Respondent s experience in obtaining such funds; and 3. Respondents are expected to conduct their own market research/study to identify potential demand, along with any other research necessary to justify any assumptions and projections that they may make. G. Other Factors Although there is no obligation to do so, each Respondent should feel free to provide a description of other factors not accounted for in the RFP that the Respondent believes underscore the Respondent s qualifications to undertake the project and what is unique about their redevelopment concept. VIII. SELECTION PROCESS OVERVIEW AND SELECTION CRITERIA A. Process Overview On or before the time specified in this RFP, the Respondents shall submit a proposal in response to this RFP. The City will form an evaluation committee to evaluate the merits of each proposal based upon the quality and responsiveness to items listed in Part VII of this RFP. The City may develop a short list from the RFP s evaluated and may conduct interviews with those Respondents. Respondents selected to appear for an interview will be notified in writing, by mail, facsimile transmission, or otherwise, of the time and place of the interview. Respondents may be asked to answer written questions based on their proposals until the City has made a final selection. In addition, further information and detail about proposals may be requested. Such information may include pre-schematic architectural drawings, a more comprehensive project financing package, a final list of team members and further explanation of the development program. Once a successful entity is selected after the evaluation period, the City will negotiate with the successful entity that will ultimately result in a developer s designation by the Trenton City Council and the execution of a disposition agreement and redevelopment agreement. If the City believes that an agreement cannot be reached with the selected entity, the City at its sole option may terminate negotiations. The City may, at that time, choose to entertain proposals from another entity that may be on the City s short list. 8

9 The City will evaluate all proposals in accordance with the criteria and procedures identified in this RFP. The City reserves the right in its discretion to make a selection based directly on the proposals submitted or to negotiate further with one or more of the Respondents. The Respondent selected under this RFP will be chosen on the basis of ability to best meet the overall objectives of the City, as determined by the City in its sole and absolute discretion. Proposals will be evaluated on a scale of up to 100 points. The criteria described below will be employed in assessing the merits of each qualified proposal received by the City: 1. Experience and Qualifications of Respondent (30 Points) Whether the Respondent has sufficient and proven experience and capabilities to perform all aspects of the project as outlined in this RFP and the development teams demonstrated capabilities in executing projects of this type and magnitude. Experience and qualifications of Respondent and key personnel related to consistent quality management, maintenance, and operation of the type of project and uses proposed. Relevant factors will include experience and qualifications specifically related to (i) ability to implement complex development projects effectively, (ii) demonstrated success working cooperatively with public agencies, (iii) developer s team operational approach, including the proposed timeline for development, (iv) other special qualifications that may be relevant to the successful implementation of the project; Financial capacity of the Respondent to cover initial capital expenditures and operating cost: (i) ability to raise capital for the project, either through equity capital and unsubordinated debt financing, and/ or private charitable funds and governmental grant funds; (ii) strength of current relationships with funding sources, including financial institutions; (iii) overall financial track record. 2. Quality of Proposal (30 Points) Assessment will include the following: Quality and feasibility of Respondents' proposed project, and the extent to which the proposed project meets the objectives and guiding themes of the Central West Redevelopment Area Plan; The extent to which the proposed project demonstrates Respondent s best efforts to create or retain jobs for Trenton residents, especially economically disadvantaged persons, and to provide minority and women-owned business enterprises with an equal opportunity to compete for and participate in project development and operations; and Potential social and economic contributions to the City. 3. Cost and Time Effectiveness (20 Points) 9

10 Assessment will include the following: Feasibility of Respondent s proposal. Proposals with definite funding sources will be rated more favorably than those with indefinite funding sources. Proposals that have no or minimal reliance on direct City funding will be more favorably rated; The degree to which there is reliance on public subsidies; Reasonableness of Respondent s underlying assumptions; and Other factors as appropriate. 4. Project innovation sustainable design (20 Points) The developer must provide a narrative, along with samples or a model outlining the use of innovative techniques that are significantly superior to what is typical in such development. Demonstrated capability in project design and sensitivity to environmental issues and adjacent land uses, including architectural design, landscape design, building massing, sustainable development strategies, creative design and construction. The extent to which the proposal contains environmental performance, energy efficiency, and quality living spaces as well as innovative green design and building technologies, the City has created guiding principles for sustainable development and are available on line at esign% 20guidelines%20and%20rating%20system.doc VIII. Zoning 350 Spring Street is located in both the Residential Business (RB) and Mixed Used (MU) Zones. The vacant parcel located at 347 Spring Street is located in the Residential Business (RB) Zone as set forth in the Central West Redevelopment Area Plan. IX. Walk-through Request The City strongly recommends that any interested parties conduct a walk-through of the Property to evaluate the site conditions to fully understand the amount of rehabilitation work that will be required for the proposed use. If any respondent wishes to conduct a walk-through of the Property, please contact Daniel Roach, Real Estate Manager, at (609) Please be advised that respondents will need to give at least 3 days lead time to schedule the walkthrough. X. Inquiries If any respondent has questions regarding this RFP, please contact Walter D. Denson, Esq., Director of Real Estate, via at wdenson@trentonnj.org. 10

11 ATTACHMENT A 11