ABQ> Interested Developers and Development Team Partners. FROM: Innovate ABQ, Inc. Board of Directors

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1 I NNOVATE April 17, 25 ABQ> UNM Science & Technology Park 8 University Blvd. SE, Suite 1 Albuquerque, New Mexico info@innovateabq.com TO: Interested Developers and Development Team Partners FROM: Innovate ABQ, Inc. Board of Directors RE: Request for Proposals - Initial Phase of Development for Innovate ABQ / Former First Baptist Church Site at 1 Broadway Boulevard NE, Albuquerque, NM Innovate ABQ, Inc. (the Owner ) is soliciting formal proposals from qualified parties to undertake the initial phase of development of an approximately seven-acre urban site located within a dynamic, university-related research, innovation, and entrepreneurial district in downtown Albuquerque, New Mexico. The City of Albuquerque, Bernalillo County, and the University of New Mexico are partnering with the private sector to advance the region s significant innovation and entrepreneurial ecosystem by establishing a hub for this district. The subject of this Request for Proposals is the district s Core Site, named Innovate ABQ, also known locally as the former First Baptist Church site. The accompanying Request for Proposals (RFP) describes the project for which the Owner is seeking a Developer/Team; the selection process that will be used; and submission requirements for expressions of interest to undertake the project. Information obtained from responses to this RFP may result in the selection of a Development Company or Developer Team that would partner with the Owner to implement the initial phase of development of Innovate ABQ/Former First Baptist Church Site. Innovate ABQ s intent is to select a Preferred Developer as its strategic partner in undertaking the next stages of project planning and development. Based on submission of a sufficiently detailed Site Development Plan acceptable to Innovate ABQ, and a mutual determination of project feasibility, the Preferred Developer would subsequently implement the initial project(s), on a phased basis, consistent with the recently adopted Innovate ABQ Development Framework. A non-mandatory Pre-submittal Conference will be held on Tuesday, May 5th at 2:00 p.m. local time at UNM Science & Technology Park, Executive Board Room, 2nd Floor, Room 2, 851 University Blvd SE, Park Center, Albuquerque, NM Firms wishing to attend the Pre-submittal Conference in person are requested to register in advance by contacting Kyung Salazar at info@innovateabq.com. Arrangements to participate in the Pre-submittal conference electronically may be considered, based on individual requests. Prior to the Pre-submittal Conference, questions may be submitted in writing only; questions should be addressed by to the attention of 1

2 Kyung Salazar at Responses will be made available to all parties at the Conference, and subsequently will be posted on the Innovate ABQ website, along with questions raised during the Pre-submittal Conference. Proposals will be received until 4:00 p.m. local time on Monday, June 1, 25 at the office of Innovate ABQ, Inc. 8 University Blvd. SE, Suite 1 Albuquerque, NM 87106, attention Kyung Salazar. Any submission received after this date and time will not be considered. Submissions will be treated as confidential and will be retained by the Owner. The Owner reserves the right to reject any or all submissions and to select interested developers from among the submitted proposals for additional qualification and negotiation deemed in its best interest. Any and all submissions become the property of the Owner and may be used in development of the project. We look forward to your proposal and appreciate your interest. From the Innovate ABQ Development Framework: potential development of the Innovate ABQ Core Site along Central Avenue including potential adaptive re-use of the former First Baptist Church. 2

3 ABQ> I NNOVATEABQ> Request for PROPOSALS > Initial Phase of Development (Including Pre-development Feasibility & Design) Innovate ABQ / Former First Baptist Church Site 1 Broadway Boulevard NE, Albuquerque, NM

4 PROJECT GOALS + CONTEXT Objective of RFP To identify and select a Preferred Developer to team with the Owner to plan and complete the first phase of development for Innovate ABQ/the former First Baptist Church site, in accordance with the recently completed and adopted Development Framework. Interested parties are invited to submit and substantiate their qualifications to design, build, finance, operate, and maintain one or more buildings located at the Core Site of Innovate ABQ. Description 1. Status & CONTEXT OF THE PROJECT Innovate ABQ and the Development Framework Plan The Owner, in partnership with the University of New Mexico (UNM), the City of Albuquerque and Bernalillo County, has recently completed and adopted a Development Framework for Innovate ABQ: a Core Site within the City s urban innovation district named Innovation Central. The district-based initiative is designed to focus and support the University s and City s research, technology commercialization, and entrepreneurship programs. The District ties downtown Albuquerque to the University of New Mexico campus via the Central Avenue Corridor -- the original Route 66 of media fame and legend. The Corridor is a +/-20 block, developing area east of the Central Business District that provides immediate access to many small businesses, eating and drinking establishments, various multi-family residential developments, and notable landmark locations such as the old Albuquerque High School (now The Lofts at Albuquerque High ) and Hotel Parc Central. It also connects geographically and virtually to Albuquerque s other major research and development assets and to its significant technology commercialization organizations. The initiative will reinforce the many innovation activities on-going throughout the district, which already is active with established incubators, private capital firms, and entrepreneurial networking. The plan for Innovate ABQ a Development Framework is aimed at promoting flexibility to the greatest extent possible. Rather than prescribe a specific, absolute end result, it puts into place a vision and clear, flexible framework for the Core Site as well as the entire Central Avenue Corridor. In this framework opportunities for both innovation and development can emerge organically, respond to change over time, capitalize on the resources of the region, and ultimately become a place where innovation will thrive. The Innovate ABQ Development Framework, created with the professional support of Perkins+Will, provides specific but flexible guidance for the location, uses, and character of future physical development of Innovate ABQ s Core Site (the former First Baptist Church site). The Framework includes a preliminary development study of the Innovate ABQ Core Site, which reflects the surrounding urban context of the evolving innovation district. The complete document can be accessed from the Innovate ABQ website, innovateabq.com/developmentframework/. 1 The term Core Site is used throughout this document for convenience to represent the approximate 7-acre property known as the former First Baptist Church Site, and as an interim designation for the proposed development project being undertaken by the Owner. A definitive brand, project name or multiple names for project elements may be established at a later time by a selected development partner, in collaboration with the Innovate ABQ organization. 4

5 Innovate ABQ Core Site Development Opportunity The Innovate ABQ Core Site is the subject of this RFP. The site, formerly known as the First Baptist Church site, is comprised of the city block bounded by Central Ave, Broadway Blvd, Tijeras Ave, and the BNSF railroad. Within this block, the Owner currently owns approximately +/- 305,000 sq. ft. (+/- 7.0 acres) of land and all structures and site improvements. The site consists of an existing church and attached five-story office/ administration tower and a two-story classroom building addition. It also includes a detached two-story building that was recently renovated to serve as the Epicenter at Innovate ABQ: a facility intended to augment the community s existing incubators, provide collaborative work environments, organize events, and programs that assist entrepreneurs and small businesses. The site is located in the middle of the City s innovation district, Innovation Central: a larger, collaborative undertaking to innovation and entrepreneurship in downtown Albuquerque. The Innovate ABQ Development Framework proposes that this block be further subdivided by extending Copper Ave (east-west connection) and Union Square Street (north-south connection) in order to maximize the overall potential for the site which, at full build-out, has been projected to support approximately 600,000 sq. ft. of laboratory, high-performance business, retail, institutional, and limited residential uses. The framework proposes that the existing church and office tower be adaptively re-used to serve the program of the Core Site, while the classroom addition and Epicenter building are maintained for interim purposes. The Development Framework includes a potential scenario in which the site may develop. In this scenario, the site is developed incrementally in a series of flexible phases to allow the Owner and its prospective development partner[s] to re-evaluate and assess both site and building needs at each subsequent phase. The Core Site has immediate access to the Albuquerque Alvarado Transportation Center: a transit hub that serves ABQRide, Amtrak, Greyhoud Lines, and the New Mexico Rail Runner Express which provides commuter rail service between Albuquerque and the rest of the region including Santa Fe. Additionally, the City of Albuquerque has recently solicited proposals for the development of an entertainment hub on the site located immediately to the west of the Core Site. UNM Strategic Intent & Competitive Positioning for Research Commercialization The University of New Mexico (UNM) is a major research university with a commitment to support economic development activities in the City of Albuquerque and throughout Bernalillo County. One way it is accomplishing this is through the new partnership established to help create a research and innovation district in Albuquerque. To this end, the University has facilitated several key phases of activity that preceded this RFP. During these phases UNM: 5

6 ALBUQUERQUE CONVENTION CENTER COMMERCIAL ST tijeras ave COPPER AVE RAIL RUNNER EXPRESS, AMTRAK & FREIGHT RAIL INNOVATE ABQ (7 ACRES) PROPOSED ENTERTAINMENT HUB SITE EPICENTER BUILDING CLASSROOM ADDITION CHURCH & OFFICE TOWER BROADWAY BLVD THE LOFTS AT ALBUQUERQUE HIGH ARNO STREET 1st STREET ALVARADO TRANSPORTATION CENTER UNION SQUARE ST CENTRAL AVE From the Innovate ABQ Development Framework: the Innovate ABQ Core Site at the intersection of Central Avenue and Broadway Boulevard as it exists today. 6

7 retained the international planning and urban design firm of Perkins+Will to identify and rank potential sites for a prospective core for an urban innovation district; coordinated efforts to secure funding to purchase the recommended Core Site (the former First Baptist Church site) for the innovation district; partnered with the City of Albuquerque in a further, in-depth planning process guided by Perkins+Will to set the overarching strategy for the innovation district and a plan for physical redevelopment of the Core Site, resulting in the Innovate ABQ Development Framework; established an independent non-profit corporation to act on behalf of the project s investment partners and community stakeholders, to provide governance for and drive implementation of the Core Site s redevelopment program. UNM has a proven track record of commercializing its research and inventions, in particular working through its technology transfer and commercialization arm, STC.UNM, now in its 20th year of operation. Data collected by STM.UNM since 1996 demonstrates the momentum and solid foundations on which the strategy for Innovate ABQ rests: Over 1,600 inventions disclosed by UNM Researchers U.S. Patents received: 446 License and Option Agreements signed: 459 Start-up companies spun off from UNM technologies: 87 License and other income received: approximately $22,500,000 Additional information about this key innovation resource can be found at: In addition to UNM, New Mexico is home to three national laboratories: Sandia National Laboratories (SNL), Air Force Research Laboratories (AFRL) in Albuquerque, and the Los Alamos National Laboratory (LANL) in Los Alamos. Leveraging these unique research resources, the University through STC.UNM has a history of collaboration with the National Labs including: 206 jointly owned inventions 28 option / license agreements executed 6 start-up companies spun off from jointed owned technologies UNM s accomplishments to date speak to its competitive positioning for the future as an engine helping to drive activity to Innovate ABQ and the full innovation district. Among its 16 peer institutions, for every $2 million in research dollars spent, UNM is ranked 1st in 7

8 number of invention disclosures, 1st in number of licenses and option agreement signed, 11th in licensing income, and 2nd in number of start-up companies created. Now, by focusing its energy in partnership with the City, County and other organizations through the innovation district, the University is aiming to help ignite a more vigorous local economy. The district will help retain students and researchers in Albuquerque well after their tenure at UNM, facilitating the creation of new businesses and jobs. In turn, a flourishing city with improved research-related employment opportunities will help attract a new generation of high caliber students, faculty, and other professionals. Innovate ABQ s Core Site will be a catalyst for transformation of the entire innovation district. Related Development & Initiatives In Albuquerque University President Robert Frank and the Regents of the University of New Mexico are committed to realizing a productive and symbiotic relationship between the University, the City of Albuquerque, Bernalillo County, and the private sector. Likewise, Albuquerque Mayor Richard Berry is equally committed to making smart investments that result in a stronger and more aggressive private sector. Across the City of Albuquerque, major destinations like the National Hispanic Cultural Center, the ABQ BioPark, museums and athletic facilities are distributed, limiting the City s ability to build social and economic energy between them. However, momentum surrounding Innovate ABQ is already building. On the site located immediately to the west of the Core Site, the City of Albuquerque has already solicited developers for proposals to create an entertainment hub that would provide a complement to the activities and programs at Innovate ABQ. Additionally the City has also been developing concepts for an urban trail that would connect the Rail Yards Redevelopment Site to the south with the Albuquerque Convention Center located to the north of the entertainment hub site. The trail is conceived as a signature public space that would catalyze development along the rail corridor. In one conceptual alignment, the trail provides a direct link between both the Innovate ABQ and entertainment hub sites. Beyond these newly proposed development projects located immediately adjacent to the site, many other programs and facilities already are in place providing a foundation for Albuquerque s innovation district, including the following: The Epicenter at Innovate ABQ is located in a renovated building that until recently was the home of Noon Day Ministries. It is Albuquerque s newest launching point for business ideas and risk takers. The space augments the community s existing incubators, collaborative work environments, events, and programs that assist entrepreneurs and small businesses. Hautepreneurs is opening its headquarters in the Epicenter in mid-25 to provide office hours, workshops, speaker series, entrepreneurial and leadership skills for women entrepreneurs and innovators. 8

9 The Lofts at Albuquerque High, a renovation of the former Albuquerque High School, provides over 230 condos and courtyard homes as well as street level commercial retail space directly across the street from the Innovate ABQ Core Site. FatPipe ABQ, a 10,000 square-foot privately developed, co-working and incubator collaboration space located in The Lofts at Albuquerque High adjacent to Innovate ABQ, provides leasable spaces to small startups. These spaces, as small as a single work station and rentable by the day, week, month or year, come pre-loaded with furniture, multi-media equipment and IT infrastructure that includes a 300 MB internet connection. The Verge Building is a hub for technology startups and entrepreneurs. It serves as headquarters for venture capital group Verge Fund, ABQid, and numerous startup tech companies. It also provides creative, dynamic work environments for early-stage, high-tech entrepreneurs. The STEMulus Center, operated by Central New Mexico Community College (CNM) and located downtown, includes programs such as the Deep Dive Coding Bootcamp, Fast Track Business Administration Degree, FUSE Makerspace, and IGNITE Community Accelerator. WESST Enterprise Center is an organization aimed at small business development that is helping to create jobs and build a stronger economy throughout the state of New Mexico. WESST has a network of offices in Rio Rancho, Santa Fe, Las Cruces, Roswell, and Farmington. Its headquarters, opened in downtown Albuquerque in 2009, is located in the 37,000 square foot Enterprise Center four blocks north of the Innovate ABQ Core Site. The BioScience Center is a privately developed, life science-focused business incubator/accelerator located in a 19,500 square foot building in Albuquerque s Uptown Area. It provides offices, eight wet (chemistry and microbiology) laboratories, and shared facilities that include reception, IT infrastructure, group purchasing, and conference space. It was founded and is managed by entrepreneurs who have experience creating, developing, and existing successful businesses. Additionally, well-attended networking and entrepreneurial activities are located in several of the businesses listed above: ABQ ID: a non-profit business accelerator located at the Verge Building, identifies entrepreneurs, validates the market for their ideas, and helps them fast-track the growth of their business; FatPipe ABQ hosts 1 Million Cups a networking event that brings together investors, startup companies, and professional service providers in a collaborative environment 9

10 In 2007, the City of Albuquerque purchased the Rail Yards site located south of downtown. The City has partnered with Samitaur Constructs and created a Master Development Plan that aims to transform the 27-acre site into a focal point for social and commercial activity in Albuquerque. The plan includes workforce house, historic preservation, and arts and cultural components. The WHEELS Museum, a non-profit organization focused on providing an understanding of the impact of transportations on New Mexico and the West, has already moved into the site and has plans to develop a 46,000 square foot facility. This list represents just a small sample of the many development projects that are located near the Core Site and have included private sector involvement. For a more comprehensive list of research, innovation and entrepreneurial resources available throughout Albuquerque, proposers are encouraged to refer to Section A1.3 of the Innovate ABQ Development Framework. Regulatory Context The Innovate ABQ Core Site is not necessarily subject to the regulations that would otherwise be imposed upon it by the City of Albuquerque. However, the Owner has an expressed desire and interest to develop the Core Site in response to City regulations and the surrounding context. The Core Site is currently located within the boundary of the Downtown 20 Sector Development Plan: a policy and implementation plan that has guided new development in Downtown since The Design Guidelines found within the Innovate ABQ Development Framework were created upon an exhaustive review of the Downtown 20 Plan and carry forward many of its recommendations. In 25, the City of Albuquerque began the process of developing a new Unified Development Ordinance (UDO) intended to ultimately replace all sector development plans within the City. The Development Guidelines for Innovate ABQ are intended to be flexible enough to interface with the new ordinance. However, it will be the responsibility of the Preferred Developer to work with both The Owner and The City to ensure the Core Site is physically designed and developed in a way that supports the goals and objectives of the larger innovation district. 2. PROJECT GOVERNANCE & MISSION Innovate ABQ, Inc. Organizational Background & Role Innovate ABQ, Inc. (the Owner ) was established by the Board of Regents of UNM in late 24 as a non-profit, 5 (c) 3 corporation under the aegis of the New Mexico University Research Park and Economic Development Act. The corporation is currently governed by an 11-person Board of Directors, and has assumed ownership of the Core Site that initially was purchased with funding provided by UNM, the City of Albuquerque, Bernalillo County, 10

11 Nusenda Credit Union and the U.S. Economic Development Administration through STC. UNM. The Owner s Board is responsible for decision-making concerning the real estate development process and the programming of the Core Site. As Owner, the Corporation, through its designated personnel, will provide day-to-day management of activities taking place at the Site and will serve as a single point of contact for interface with the Preferred Developer. Innovate ABQ Vision & Mission Innovate ABQ s vision is to create an integrated work, live, play community that is multi-dimensional. Research and commercial labs, science and technology companies, educational programs, business services, support services, and commercial and retail businesses share space with a business incubator in a way that allows people to work together as they wish and be an essential part of the community that is connected to UNM and the City. The idea is to create a one-stop-shop approach for companies, entrepreneurs and investors seeking to evaluate new technology and create new business opportunities. The integrated community would also include residential living space and amenities for the workers who benefit from the new jobs created by this synergy. The mission of the initiative is to the strengthen the economic base in the mid Rio Grande region and throughout the state of New Mexico by creating more knowledge-worker jobs for graduates from our educational institutions and experienced workers in our communities. The mission is achieved by commercializing new technologies developed at New Mexico s research universities, by public/private partnering with our national labs, business organizations, civic leaders, non-profit sector, national and global corporations, and public schools, and by providing entrepreneurial education and support. Financial Goals of Innovate ABQ, Inc. As a not-for-profit organization with an economic development mission, the Owner seeks to use revenues from its real estate investments to cover the cost of pre-development activities and of operations to the greatest extent possible, making this a self-sustaining venture. The Innovate ABQ founders and partners have demonstrated their ability to bring significant financial resources and expertise together to acquire the site, carry out initial planning for the site s development and for the organization s launch. Innovate ABQ views its organizational momentum, advance planning and financial commitments to-date as assets that can be leveraged in moving development of the Core Site forward. 11

12 With an organizational mission focused on research, innovation, and entrepreneurship, and a vision reflecting mixed-use, multi-disciplinary dynamism, Innovate ABQ and its partners are creating a long-term market opportunity that did not previously exist in Albuquerque. Innovate ABQ has thus paved the way for private real estate developers to bring their financial resources and expertise to bear, so that the community s aspirations for economic growth through technology commercialization may be achieved. Therefore, in seeking a Preferred Developer for the Core Site, Innovate ABQ is looking to balance the Developer s need to secure a reasonable return with the ability over time for Innovate ABQ itself to realize an upside both financially and through community development from the project as a whole. In order to accomplish this, Innovate ABQ requires a Partner who can help assess Innovate ABQ s real estate assets as they exist today and provide strategic guidance as well as financial resources and development expertise to advance Innovate ABQ toward its goal of creating a dynamic innovation district, while providing financial underpinnings for the organization to operate sustainably for the long-term. Proposals that demonstrate a commitment to address this issue will receive favorable consideration by Innovate ABQ in making the selection of a Preferred Developer/Team. Note On Land Leasing In part because of existing government grant awards, the Owner anticipates that property already acquired by the Owner will be leased rather than sold to the Developer/Team. While the Owner s policy is to maintain long-term control over the Core Site and its uses over time, ownership of all land and buildings is not per se a goal. The Owner is eager to work with the Developer/Team to identify creative and flexible mechanisms/deal structures that meet the mutual needs of the parties, within this constraint. UNM Commitments To The Project The formal mission of the University of New Mexico is to serve as New Mexico s flagship institution of higher learning through demonstrated and growing excellence in teaching, research, patient care, and community service. As one of Innovate ABQ s founders, UNM seeks to advance its mission in ways that are mutually beneficial to University needs, Innovate ABQ goals and community opportunities -- notably by locating selected activities at the Innovate ABQ Core Site. At the present time, UNM s plans include the following: STC.UNM STC.UNM is a non-profit corporation wholly-owned by the University of New Mexico Board of Regents, whose mission is to foster a Rainforest in the Desert -- promoting innovation and economic development for the UNM community by: 12

13 protecting technologies developed at UNM and transferring these technologies to the marketplace, via starting new companies and transferring technologies to established companies; connecting the business community to UNM for access to expertise, facilities, and research activities; and facilitating UNM s role as a contributor to New Mexico s economic development. STC.UNM nurtures many of its start-up companies on-site, and facilitates the development of others at facilities through the region. STC.UNM played a pivotal role in the conception and early planning for Innovate ABQ, and will centralize its future activities at the Core Site as facilities there are developed and brought on line. Anderson School of Management, Small Business Institute Established in 1978, the UNM Small Business Institute (SBI) at Anderson provides consulting services to local businesses by linking them with graduate and undergraduate students who are guided by members of the faculty. These mutually beneficial partnerships simultaneously offer students the opportunity to experience real life challenges while providing businesses with management assistance, expertise and guidance at an affordable rate. Over 600 clients have been served to date, including startups, expanding businesses, non-profit organizations and family businesses in the service, retail, and wholesale sectors. These services are complementary to the vision for Innovate ABQ and the Anderson School is planning to relocate them to the Core Site. Innovation Academy Laboratory Innovation Academy is UNM s new academic program to provide entrepreneurial training to students campus wide who are interested in starting companies. Operated by the Office of the Provost as a university-wide enterprise, Innovation Academy is viewed by UNM as the academic component for Innovate ABQ. It is multi-disciplinary and focused on providing students with experiences that help build higher order skills for creativity, problem-solving, and critical thinking that are sought by the business community. The laboratory component of Innovation Academy will be located at Innovate ABQ s Core Site. Innovate ABQ Together, the three UNM entities and programs will form a nucleus for the UNM presence on-site, operating functionally as part of a technology incubator that has tentatively been branded as the Innovate ABQ. UNM will work with the selected developer to formalize the programming of space needed to accommodate 13

14 these functions, to determine an optimal footprint and location on the site, and a mutually agreeable rent structure. It is estimated at the outset that the three UNM functions may require between 14,000 and 18,000 square feet of space. Owner s Preliminary Outreach & Market Research On behalf of the Owner, the STC.UNM staff recently conducted a focused outreach effort to some 90 business entities in the Albuquerque region to determine potential needs for space, to gauge interest in locating at the Innovate ABQ Core Site, and to obtain information about key requirements. Businesses contacted included former UNM spin-outs, start-ups and young technology companies in the Albuquerque region, and entrepreneurial-focused organizations including law and accounting firms and other service providers. Results of this market research suggest a growing awareness within the Albuquerque entrepreneurial community of the opportunities that may be available at the Innovate ABQ Core Site, and an emerging picture of the demand represented by this sample of entities. The work-in-progress represents a valuable database of market information that will be made available to a Preferred Developer, as part of a more definitive market assessment that would be conducted along with detailed planning for an initial phase of development at the Core Site. 3. ROLE OF DEVELOPER/TEAM TO BE SELECTED The Owner is seeking a Developer/Team with the expertise, commitment and business philosophy needed to function as a strategic partner in helping the Owner to rapidly and effectively advance its goal for development of the Innovate ABQ Core Site. The selected firm will be designated as the Preferred Developer. Preferred Developer / Development Teams The Owner is seeking firms / teams that can propose creative and innovative approaches to developing the former First Baptist Church site, to ensure it delivers on the vision as the catalyst for an emerging Innovation District in Albuquerque that is effectively integrated with the surrounding downtown area, capitalizes on the adjacent Central Avenue Corridor, and that provides links to the innovation assets of wider region. Qualified firms/teams will be able to deliver strong architectural, engineering, planning, development, marketing and operational services within the broad range of professional disciplines needed to ensure successful development of the Innovate ABQ Core Site. The Owner is interested in working with firms/teams that have a history of successfully implementing and completing major development projects of this type. 14

15 The relationship between the Preferred Developer or development team and the Innovate ABQ organization is envisioned as a Public-Private Partnership (PPP) Innovate ABQ wishes to establish a long-term working relationship with the selected Company(s). At the same time, the development project itself is to be operated independently by the selected developer. Innovate ABQ s selection criteria will give favorable consideration to developers or development teams that are able to articulate how they will address this PPP interface. A proven track record in successfully implementing large-scale projects within a public-private organizational context is essential in order to be designated as the Developer/Team. The Preferred Developer/Team must exhibit the ability to: assess the feasibility of the Owner s adopted Development Framework and its recommendations for the Innovate ABQ Core Site in light of market conditions/ opportunities; and of financial, land acquisition or local governmental policy factors that will shape the feasibility and nature of development on the Core Site; if warranted, recommend alternatives to the current Innovate ABQ Core Site plan in terms of uses and functions (including scale and configuration of development); recommend how the components of the Innovate ABQ Core Site should be phased, with special focus on identification of fast track elements for initial implementation; prepare a budget and financial model showing how the Innovate ABQ Core Site elements will be funded and generate revenues, and how the financial goals can be met; recommend a partnership development structure and roles of the various entities needed to drive the development forward (UNM, City and Developer/Team and/or other parties); recommend strategies and guide or implement additional land acquisition efforts needed to optimally redevelop the Innovate ABQ Core Site, in the context of the overall Development Framework; recommend and implement marketing strategies that will successfully attract tenants to the Innovate ABQ Core Site; assemble financing needed to implement individual Core Site projects within the Development Framework; demonstrate an ability to recruit the appropriate companies to locate within the first phase of development on the Core Site; 15

16 understand and be able to comply with EDA grant requirements applicable to the Core Site; oversee the entire development implementation process, including any potential property acquisition beyond the land already owned, design, construction management, leasing, project coordination and ongoing property management roles. The Developer/Team must demonstrate that it can operate effectively in a partnership relationship to the Owner s Board of Directors, its professional staff, and representatives of the Owner s partner organizations. In order to select such a Developer/Team, respondents are requested to submit their background and qualifications in accordance with Section Three of this RFP, and specifically to address what role they would play and how they would implement the above stated tasks. Designation of Preferred Developer - Priority Activities / Output After selecting the Preferred Developer/Team and finalizing its initial working agreement, the Owner anticipates a 90 day period during which the Preferred Developer/Team will conduct a detailed assessment and evaluation of the current Development Framework, focused specifically on the Innovate ABQ Core Site. Recommendations will be provided to the Owner consistent with the activities outlined in the prior section. During this time the Preferred Developer also would assess the space needs of one or more potential anchor tenants, in order to test the feasibility and define the financial parameters for a first building to be developed on the Core Site. Successful packaging of this first development project within the context of the overall Development Framework that makes economic sense to the Preferred Developer and to the Owner will be viewed as the litmus test for success of the overall endeavor. These two parallel efforts assessing the Development Framework s recommendations for the Core Site and packaging an initial development project - represent the primary deliverables expected from the Preferred Developer / Team. Under terms of this initial agreement, the work product[s] submitted from the 90 day effort will become Innovate ABQ, Inc s property. During this period, The Owner agrees it will not entertain any other proposals nor engage in any competitive development activities that would conflict with the designated effort. Materials, once submitted to the Owner, will be considered public domain documents, unless items are specifically stamped or otherwise indicated as 16

17 confidential. The Owner will make a good faith effort to respect and protect the confidentiality of items/documents so indicated. Required documentation will include a proposed Site Development Plan, a Budget, and a preliminary (but detailed) Financial Proforma for the project, illustrating all costs of design, construction and development and how the project will be funded and developed in phases. Included will be any planned concepts for financial incentives, grants or portions of the project to be paid for by alternative funding sources. More specific information regarding these requirements will be made available in the form of a Project Brief provided to the Preferred Developer upon selection. Interim progress reviews and deliverables should be expected at the 30, 60, and 75-day milestones. Based on successful completion of these two tasks/steps, the Owner anticipates negotiating and executing a second, more definitive agreement with the Preferred Developer setting forth specific terms and conditions for implementing the development of one or more specific buildings on the Core Site, and incorporating as appropriate the Developer Partnership business structure recommended through the Development Framework assessment process. As currently envisioned, the commitment of the Owner to the Preferred Developer / Team to proceed with an initial building will not represent or imply any a priori commitment to develop subsequent buildings, unless this is included through negotiation as part of the initial Developer Agreement, based on a mutually agreeable business model. From the Innovate ABQ Development Framework: a rendering of potential development and proposed public open spaces along Copper Avenue. 17

18 02 SUBMISSION & REVIEW PROCESS Overview A multi-step process has been adopted as the basis for selecting a developer to undertake the Innovate ABQ initial project. Description Phase I: Request for Interest and Qualifications (RFI/Q) A preliminary RFI/Q was issued in January 25, to determine the extent of interest from qualified private sectors developers in teaming with the Owner to plan and complete the first phase of development for Innovate ABQ s Core Site (former First Baptist Church site). Submissions from interested parties were received by the closing date of February 20, 25 and have been reviewed by the Innovate ABQ Board of Directors. The confidential information obtained from a variety of submissions has provided guidance to the Owner in clarifying and elaborating on certain aspects of this Request for Proposals (RFP) document, and confirming the steps to be used for the remainder of the developer selection process. As noted in the RFI/Q document, the Owner reserved the right to proceed to this second step of issuing a Request for Proposals, at its sole discretion; and / or to reject any submissions it determined were not qualified. At this time, all firms that made submissions in response to the RFI/Q are being invited to also respond to the RFP, in order to amplify and confirm their qualifications and interest. Firms that have made a prior RFI/Q submission may indicate through a simple letter the nature of any amendments or supplemental information they wish to include with their original proposal; or if they wish their original document to stand as the Request for Proposals (RFP) version, as submitted. Phase II: Request for Proposals (RFP) Based on the review of submissions for Phase I, those previously qualified companies will be invited to respond to this definitive RFP. Companies that have not previously submitted during the RFI/Q phase now also are invited to make submissions, including their statements of interest and qualifications, as outlined further in Section 03 of this document. During this phase, respondents will have the opportunity to submit a proposal detailing their approach, either a) to developing the entire Innovate ABQ Core Site; or b) developing one or more of buildings identified by the Innovate ABQ Development Framework. As part of Phase II, the Owner reserves the right, but is not under any obligation, to establish a Short List, and to request that one or more proposers provide a formal on-site presentation / interview at a date and time to be determined. No company will be entitled to attend, or otherwise receive any information, regarding any presentation made by other companies. Following a review of Phase II submissions, the Owner reserves the right to designate a single Preferred Developer that would be asked to provide an in-depth proposal and that would be invited to negotiate terms for project implementation with the Owner. Further detail regarding a possible Preferred Developer designation has been provided in an earlier section of the RFP. The Owner also reserves the right not to move forward with any or all of the components of the development. 18

19 02 SUBMISSION & REVIEW PROCESS (cont.) Each Developer/Team responding to this RFP must supply a complete and detailed submittal, which will allow the Owner to make an informed evaluation. Companies should carefully read all sections of the RFP and any attachments or appendices, providing all requested information and complying with the submission instructions. Pre-Submittal Conference In order to assist interested firms in learning more about the Innovate ABQ development opportunity and its context within the Innovate ABQ Development Framework, a nonmandatory Pre-submittal Conference will be hosted by the Owner: Date: Tuesday, May 5, 25 Time: 2:00PM local time Location: UNM Science & Technology Park Executive Board Room 2nd Floor, Room University Blvd SE, Park Center Albuquerque, NM The session will include a comprehensive briefing on the Innovate ABQ initiative, including: the adopted Development Framework that was prepared in conjunction with Perkins+Will; details regarding the Core Site and its disposition; the submittal process and requirements; opportunity for questions and answers; and a tour of the Core Site. Attendance is not mandatory. However, participants planning to attend must register in advance with Innovate ABQ. Please indicate your interest in attending to Kyung Salazar at info@innovateabq.com no later than Tuesday, April 28, 4:00 p.m. local time. Proposed Schedule RFP released by Innovate ABQ, Inc. Pre-Submission Conference Deadline for RFP Submissions Owner initial review of RFP Submissions completed Target date for On-site Interviews with selected firms (OPTIONAL) Target for notification of Finalist Firm(s); Negotiation and Contractual Process Friday, April 17, 25 Tuesday, May 5, 25 Monday, June 1, 25 Monday, June 15, 25 Week of June 22, 25 Week of June 30, 25 19

20 02 SUBMISSION & REVIEW PROCESS (cont.) RFP Questions & Clarifications Prior to the Pre-Submission Conference on May 5, 25 members of the Innovate ABQ Board of Directors, its staff or its consultants will not be available to meet with or to discuss the RFP or the Core Site development project individually with prospective firms. Questions regarding this RFP may be submitted only in writing, directed to: Kyung Salazar Innovate ABQ, Inc. P.O. Box Albuquerque, NM Responses to questions including any modifications to the RFP as a result of relevant questions submitted in writing or based on Questions & Answers discussed at the Pre- Submittal Conference shall be made by written addendum and shall be posted at the Innovate ABQ website at Format & Date For Submissions Submissions must be returned in a sealed parcel marked on the outside with the Project Identification and Company Name. One unbound original and twelve (12) copies are required. Additionally, one electronic copy in PDF form must be submitted via USB flash drive, to be included with the parcel. RFP submittals will be received by the Owner until Monday, June 1, 25 at 4:00 p.m. local time. Firms shall deliver submittals to: Kyung Salazar Innovate ABQ, Inc. UNM Science & Technology Park 8 University Blvd. SE, Suite 1 Albuquerque, NM Any submission not submitted prior to the closing date and time will be deemed late and will not be considered regardless of the means of delivery or extenuating circumstances. Review & Assessment Of Submissions The Owner may elect to use one or more committees to review and evaluate the information requested in Section 03, and other criteria that such committees may deem pertinent to the decision. Recommendations reached by such committees will be forwarded 20

21 02 SUBMISSION & REVIEW PROCESS (cont.) to the Owner s Board of Directors, which will retain final authority for making the selection and authorizing negotiations leading to a contract. Objective criteria will be established to guide the comparison of Developer / Team submissions. The evaluation process will focus on the following dimensions: Team composition Financial capacity and financing strategies Opportunity for Owner to participate in financial upside of future development projects Demonstrated track record with similar projects Proven ability to attract tenants from a variety of technology fields Responsiveness and completeness of Developer s submissions relative to this RFP Proposals will be evaluated in order to select the firm or team which most strongly meets the criteria described above. Evaluations and rankings of Developers / Development Teams are subject to the sole discretion of the Owner. The Owner will make the final determinations related to Developer submittals, as it deems appropriate and to be in the best interests of the Owner. Based upon the results of the proposals, references, and the interviews (if held), the Owner will negotiate with the firm submitting the strongest proposal in an attempt to reach an agreement. If negotiations with the highest ranked firm are unsuccessful, the Owner may negotiate with the second ranked firm, and so on, until a satisfactory agreement has been reached. In the event that an ultimate selection cannot be made, the Owner reserves the right to terminate the process. The inability of any Company to meet the requirements of this RFP may be cause for rejection of a submittal. The Owner reserves the right to reject any or all submittals, or any part of a submittal, and make selections that, in the opinion of the Owner best meets the needs of the organization and its development program for the Core Site. This RFP process does not commit the Owner or any of its founding organizations or its Board of Directors to issue an award, enter into any agreement or contract, pay any costs incurred in the preparation of any submittal, procure or contract for the goods or services submitted for Phase I consideration, or to proceed with Phase II. 21

22 03 SUBMISSION REQUIREMENTS Overview Interested Developer/Teams must provide the following items as part of their submission: 1. Letter of Interest 2. Statement of Experience and Qualifications A. Identification of Development Team (with proposed Roles & Responsibilities) B. Identification of Financial Capacity C. Experience and Examples of Similar Work D. References 3. Statement of Approach to Project A. Market Assessment / Validation B. Financial Strategy C. Building Design Approach D. Leasing/Marketing Strategy 4. Special Conditions / Requirements (Optional see explanation below) Interested firms are specifically requested not to submit schematics for proposed development of the Core Site at this time, as these are premature and will not be considered as part of the evaluation criteria. General corporate information may be included, but should be relevant to the services requested, and may include examples of prior work, brochures, photographs, maps, drawings, etc. Description The following detailed elements are to be included in each section of the response: 1. Letter of Interest A transmittal letter must accompany the submission, signed by a principal of the proposed development team. Documentation should also be provided listing the officers in the firm who are authorized to negotiate and execute agreements on behalf of the company. The transmittal letter should indicate if the proposing Developer / Development Team wishes potentially to undertake development of the Innovate ABQ Core Site as a whole, or whether their interest is in undertaking only a single project on the Core Site. If indicating an interest in developing only a single project / building, please indicate the functions or market segments that facility would be intended to serve (e.g. office, laboratory, commercial / retail, housing, etc.) 2. Statement of Experience and Qualifications A. Identification of Development Team (with proposed Roles & Responsibilities) Name address and telephone number of the principal on the Developer/Team assigned by the developer to negotiate on its behalf. 22

23 03 SUBMISSION REQUIREMENTS (cont.) Provide a Project Team Organization Chart describing all partnering firms and key personnel of each. Describe the anticipated management structure for development of the project, including the identification and role of the day-to- day Project Manager, the principal architect and other key firms or individuals who are to be involved in the implementation of the project, their background, experience and potential role. Include resumes for all key personnel. Identify the type of legal entity with whom the Owner would potentially contract and the date of the organization s formation. If the legal entity is different from the parent corporation, please indicate the relationship to the parent corporation. B. Identification of Financial Capacity Provide a statement describing the Developer s/team s bonding capacity, along with prior experience in successfully securing financing for similarly sized, mixeduse projects. Provide evidence of Available Capacity to the extent to convince the Owner that the Respondent has the resources to commit to the project. List ongoing projects, value, current funds committed and overall status of completion. Illustrate financial capacity to complete and carry the project, including what funding sources will be committed to the project and assurances that sources are solid and reliable to protect the Owner and ensure a timely and successful development. Describe the status and nature of any bankruptcy and/or major lawsuit ($500,000 or greater) or settlement that the development entity or parent corporation has been involved in within the past 10 years. C. Experience and Examples of Similar Work Provide a description of the Developer s/team s previous relevant experience in the design and implementation of projects similar in size and character over the past 10 years. Describe the Developer s/team s experience with research districts and mixed-use science and technology projects in particular. Identify the location, completion date and type of project, as well as construction cost and detailed description of the financial structure of each project. Include a current project status and the role performed by your development entity and/ or officers. 23

24 03 SUBMISSION REQUIREMENTS (cont.) D. References Provide at least (3) references for work similar to this project, including any experience with the development of speculative buildings for science and technology uses. List names, titles, addresses, phone numbers and identify the relevant project(s) for each reference. 3. Statement of Approach to Project (6 pages maximum, exclusive of graphics) In preparing this statement, Developer/Teams should respond as directly as possible to sections of this Request for Proposal dealing with: Role of the Developer/Team Developer Priority Activities/Outputs Market Assessment/Validation Financial Strategy (including potential Developer Partnership Structure[s]) Building Design Approach Leasing/Marketing Strategy to Potential Tenants As part of their Approach, proposers are encouraged to describe their approach to creating a environment of innovation and collaboration at the Innovate ABQ Core Site. Show how your strategy for developing facilities, and for marketing and programming of the site will help to attract users in each category. From the Innovate ABQ Development Framework: a view of the Innovate ABQ Core Site looking towards UNM s main campus. 24