REQUEST FOR QUALIFICATIONS AND PROPOSALS FOR DEVELOPMENT AND OPERATION OF HOTEL 70-T & 70-U ESTATE LINDBERGH BAY ST. THOMAS, U.S.

Transcription

1 REQUEST FOR QUALIFICATIONS AND PROPOSALS FOR DEVELOPMENT AND OPERATION OF HOTEL AT 70-T & 70-U ESTATE LINDBERGH BAY ST. THOMAS, U.S. VIRGIN ISLANDS VIRGIN ISLANDS PORT AUTHORITY P. O. BOX ST. THOMAS, VI ISSUE DATE: FEBRUARY 6, 2012 PRE-SUBMITTAL MEETING: THURSDAY, MARCH 15, 2012 at 10:00 A.M. (AST) BID DUE DATE: THURSDAY, MAY 3, 2012 at 2:00 P.M. (AST)

2 TABLE OF CONTENTS I. THE OPPORTUNITIES... 1 II. THE SITE... 2 III. PROPOSAL DESCRIPTION... 2 IV. GENERAL INFORMATION AND IMPORTANT DATES... 3 V. PROPOSAL SUBMITTAL INSTRUCTIONS... 5 VI. PROPOSER S RESPONSIBILITIES... 6 VII. PROJECT GOALS and OBJECTIVES... 7 VIII. GENERAL TERMS AND CONDITIONS... 8 IX. QUALIFICATIONS A. Developer/Operator Entity B. Developer/Operator Experience C. Financial Capacity and Capability D. References E. Acceptance of Conditions X. PROPOSAL A. Project Concept B. Facility Design and Quality of Improvements C. Financial Proposal D. Business Terms E. Management and Operation Plan of the Hotel F. Project Schedule G. Understanding of Site H. Vision Statement XI. CRITERIA A. SELECTION CRITERIA FOR STATEMENTS OF QUALIFICATIONS B. SELECTION CRITIERIA FOR PROPOSALS IX. EXCLUSIVE NEGOTATIONS... 24

3 A - Affidavit /Addenda Acknowledgment Form B - Company Name and Address Form C - Business Organization Forms Request for Qualifications and Proposals Parcels 70-T & 70-U, Estate Lindbergh Bay ATTACHMENTS D - Proposed Project Build-Out Investment Form E - Proposed Cost Analysis Form 1A - Site Map 1B - Site Map 2 - Appraisal - Statement of Salient Facts EXHIBITS 3 - Observation Report: Structural Evaluation - Existing Conditions - Beachcomber Hotel, St. Thomas, VI 4 - USVI Hotel Development Act No. 7301

4 Parcels 70-T & 70-U, Estate Lindbergh Bay SUMMARY Potential Development Summary Development/Renovation and operation of hotel at 70- T & 70-U Lindbergh Bay, St. Thomas, VI Acreage +/ US Acres Lease Term Dependent on level of investment Developer s Selection Process A single stage process will be employed for statements of qualifications/proposals. Proposal Guarantee An earnest money deposit of Ten Thousand Dollars ($10, USD) is required along with the submittal of statements of qualifications/proposals which will be refunded to developers not selected for inclusive negotiations. Pre-submittal Meeting and Site Visit 10:00 AM (AST) Thursday, March 15, 2012 Statement of Qualifications/Proposals Due 2:00 PM (AST) Thursday, May 3, 2012 One (1) Original, Four (4) Printed Copies and One (1) Copy on CD Rom in pdf format of the Proposal shall be submitted and labeled as required Executive Director Virgin Islands Port Authority Administrative Building 8074 Lindbergh Bay St. Thomas, VI P.O. Box St. Thomas, VI Information Contact Denise M. Mills, CPM Director of Property Management Virgin Islands Port Authority P.O. Box St. Thomas, VI T: (340) F: (340) E: dmills@viport.com

5 REQUEST FOR QUALIFICATIONS AND PROPOSALS FOR THE REDEVELOPMENT AND OPERATION OF A HOTEL The Port Authority is soliciting proposals from interested and qualified parties with extensive experience in renovating existing structures to or developing and managing a 3-Star hotel or better that meet the minimum qualifications set forth in this RFQ/P. Proposers must have demonstrated superior financial capability and management expertise in the renovation and/or development and management of a hotel of this type. The term RFP/Q means this document, all attachments and exhibits and any written addenda or responses provided by Virgin Islands Port Authority. One original, four (4) printed copies of numbered sets, along with one (1) complete copy on compact disk in pdf format of the complete information must be enclosed in sealed envelope or packages, addressed and received by the Port Authority by the date set forth on page 1 of this RFP/Q. There will be an opening of the proposals submitted at the date and time such responses are due to the Virgin Islands Port Authority. The opening will take place at the Virgin Islands Port Authority, Administrative Building, Estate Lindbergh Bay, St. Thomas, VI on Thursday, May 3, 2012 at 2:00 p.m. (AST). The only information available at the opening of the proposals will be the name of each proposer responding to this RFP/Q which the Virgin Islands Port Authority shall provide to all proposers. Results of the selection process will be announced to proposers at a day and time to be determined by the Virgin Islands Port Authority. CAUTION: LATE PROPOSALS - Proposers are responsible for delivery of proposals before the due date and time to the location designated for receipt of responses. If delivery is delayed beyond the date and hour set for the receipt, proposals thus delayed may not be considered and may be returned unopened. No agreement shall be binding upon the Virgin Islands Port Authority until authorization is received from the Virgin Islands Port Authority Governing Board and the agreement is fully executed and delivered. Any false statement(s) made by proposer will void the proposal and eliminate proposer from further consideration. Verbal responses to inquiries shall not be binding; only written addenda to this RFP/Q will modify its terms. I. THE OPPORTUNITIES The Virgin Islands Port Authority is offering a unique opportunity to renovate existing structures or develop and manage a 3-Star hotel at Parcels 70-T & 70-U, Estate Lindbergh Bay, Southside Quarter, (see Exhibit A ). The opportunity to take advantage of

6 recently passed Hotel Development Act No through the Virgin Islands Economic Development Authority ( may also exist. II. THE SITE The subject property is located at 70-T & 70-U Estate Lindbergh Bay (of Parcel No. 70 Estate Lindbergh Bay), Southside Quarter, St. Thomas, Virgin Islands. The property consists of US Acres as shown and described on PWD Drawing #: C9-102-T69, D3-375-T82 & B T72, dated September 9, The site is located directly on Lindbergh Bay. It is adjacent to and only a five-minute walk from the Cyril E. King Airport. In addition to taxi service, it is located on a city bus line. Prior to releasing this package, the Virgin Islands Port Authority commissioned an appraisal, along with an structural evaluation of the site. The Salient Facts of the Appraisal and the structural evaluation can be found attached as Exhibits 2 and 3, respectively. III. PROPOSAL DESCRIPTION The Virgin Islands Port Authority is seeking proposals from qualified person(s) or firm(s) interested in renovate or redeveloping and managing a 3-Star hotel or better. Only entities that meet the experience requirements will be considered. The proposal shall include a clear description of the proposer s concept, including a concept drawing. A 3-Star Hotel for the purposes of this RFP/Q, is defined as one with rooms having cable television, telephone, wireless internet access and a mini-bar, along with restaurant and any other service that may be incidental to the operation of a 3-Star Hotel. The Port Authority seeks to contract with the selected Proposer through a development agreement and a long-term lease, the terms of which will be established during an exclusive negotiations period. The selection process will consist of the following steps: 1. Statements of Qualifications and Proposals: submittal of candidate qualifications and proposals, as set forth in response to the Request For Qualifications and Proposals (RFQ/P), and; 2. Evaluation: a staff committee will perform evaluation of the qualifications and proposals which may include an oral presentation; 3. Exclusive Negotiations: selection of a Developer/Operator by the Governing Board of the Port Authority to negotiate a development agreement and ground lease. The most important criteria considered will be based on experience in the development and operation of a 3-Star Hotel and the financial capability of the responding Developer/operator, including in particular the ability to access equity and/or subordinate

7 financing. The quality of the proposed design of the project and its compatibility with the surrounding neighborhood will be very important criteria in selecting the preferred proposal. The financial proposal and business terms also will be very important criteria in the proposal selection. The project is a part of the Cyril E. King Airport system. The Port Authority is obligated by federal grants received for the development and operation of the Airport. The Federal Aviation Administration ( FAA ) also limits the height of structures around the Airport. Virgin Islands Port Authority and developer will undertake the necessary studies to determine the maximum height permitted for the Project, if needed. The minimum annual guarantee rent to be provided in the Agreement will be no less than Fair Market Value that has been determined by an appraisal of the site provided by an independent appraiser hired by the Virgin Islands Port Authority. site. All utilities (i.e., electric, water & sewer, telephone and fiber optics) are available at the IV. GENERAL INFORMATION AND IMPORTANT DATES a) Proposal Information. The enclosed documents provide instructions, background information and the required proposal forms from which Proposers are to develop their proposals to the Virgin Islands Port Authority ( Port Authority ). The RFP/Q document and all addenda including the Virgin Islands Port Authority s responses to questions and clarifications will be posted on the Port Authority s website at The term Proposer means proposer, respondent or the officers of proposer s firm and/or team. b) Pre-Submittal Meeting. A non-mandatory Pre-Submittal Meeting ( Meeting ) for all firms interested in submitting proposals will be held on Thursday, March 15, 2012 at 10:00 a.m. (AST) in the Conference Room of the Virgin Islands Port Authority Administration Building, 8074 Estate Lindbergh Bay, St. Thomas, VI. A tour of the hotel site will be conducted immediately following the Pre-Submittal Meeting. A further question and answer meeting will be held after the tour, if prospective Proposers desire. The purpose of the Meeting will be to discuss the RFP/Q requirements and the objectives of the RFP/Q. Modification of or clarifications to the RFP/Q resulting from the Meeting will be posted on the Port Authority's website (see Section IV.a). Attendance at the Meeting is not mandatory. However, all potential proposers are encouraged to submit their contact information to the Port Authority in order to be included on any important announcements concerning this proposal process. c) Time Zone. All time references in this RFP/Q are Atlantic Standard Time Zone. d) Questions / Contact Person. To ensure fair consideration for all proposers, the Virgin Islands Port Authority prohibits communication by the proposer to or with any Virgin Islands

8 Port Authority member, department or employee during the submission process, except as provided below. All questions concerning the RFP/Q shall be made in writing to: Denise M. Mills, CPM Director of Property Management Virgin Islands Port Authority P. O. Box ; St. Thomas, VI E: T: (340) F: (340) Such written questions will be responded to either orally at the Pre-Submittal Meeting Conference or in writing. Written responses will be sent to all potential responders who registered at the Pre-Submittal Meeting or who obtained a RFQ/P package. Oral inquires will not be accepted except at the Pre-Submittal Meeting Conference. Responses to the questions will be posted as RFP/Q addenda on the Port Authority s website. All inquiries shall be limited to this RFQ/P package. Questions related to clarification of the contents of this Proposal package should be in writing and received no later than April 6, at 2:00 p.m. (AST). Proposers shall not seek nor be entitled to rely upon any oral instructions, statements or interpretations by representatives of the Virgin Islands Port Authority. It is the intention of the Virgin Islands Port Authority, through this process to provide adequate information and clarity through the steps outlined in the Proposal Schedule that follows. All addenda sent to Proposers will become a part of the RFP/Q documents. It will be the responsibility of the Proposer to contact the Virgin Islands Port Authority prior to submitting a response to ascertain if any addenda have been issued and to obtain all such addenda. Additionally, the Virgin Islands Port Authority prohibits communications initiated by a Proposer to the Virgin Islands Port Authority Official or employee evaluating or considering the responses prior to the time an award decision has been made. Any communication between Proposer and the Virgin Islands Port Authority will be initiated by the appropriate Virgin Islands Port Authority Official or employee in order to obtain information or clarification needed to develop a proper, accurate evaluation of the response. Such communications initiated by a Proposer may be grounds for disqualifying the offending responder from consideration for award of the proposal and/or any future proposal. e) Proposal Schedule. The following is the proposal schedule. All times are in the Atlantic Time Zone.

9 Action Date Release Request for Qualifications/Proposals Monday, February 6, 2012 Pre-Submittal Conference (not mandatory) Thursday, March 15, 10:00 a.m. Deadline for Submitting Questions Friday, April 6, 2:00 p.m. Issue addendum for clarification of questions/issues Thursday, April 12, 2012 PROPOSALS DUE Thursday, May 3, 2012, 2:00 p.m. (AST) Proposals will be opened Thursday, May 3, 2012, 2:00 p.m. (AST) Evaluation of Proposals May 2012 Interviews (Optional at Virgin Islands Port May 2012 Authority s sole discretion) Approval of Selection June 2012 Execution of Agreements / Leases June/July 2012 The Virgin Islands Port Authority reserves the right to modify this proposal calendar at any point if it determines that such a modification is in its best interest. V. PROPOSAL SUBMITTAL INSTRUCTIONS One original, four (4) printed copies of numbered sets, along with one (1) complete copy on compact disk in pdf format of the complete information requested below shall be submitted to the Port Authority. The Financial Capacity materials, of which two copies are required, shall be submitted under separate cover. In accordance to the Virgin Islands Code, responses and other communications from interested parties shall be open to inspection by the public upon request immediately after a contract is awarded. Financial Capacity materials submitted by a Proposer will be kept confidential until and unless that Proposer is awarded the development opportunity. The Proposals must be submitted by Thursday, May 3, 2012, to the Office of the Executive Director located in the Administrative Building of the Virgin Islands Port Authority adjacent to the Cyril E. King Airport, Proposals that are not received at the designated address before the specified deadline will not accepted. Facsimile reproductions or electronic transmissions of Proposals will not be accepted. Form of Proposal and Submission. Proposals shall be prepared on standard 8 ½ x 11 letter size paper. One (1) original and four (4) copies of the Proposal shall be submitted in a sealed envelope or package along with a proposal guarantee of Ten Thousand Dollars ($10,000.00) no later than the time, date and place specified on page 1 of this RFP/Q. The proposal guarantee shall be returned to all unsuccessful Proposers upon execution of an Agreement with successful Proposer. No Proposals will be reviewed unless accompanied by a Proposal Guarantee. Proposals shall be submitted in a sealed envelope showing Proposer's name and address and addressed to:

10 Executive Director Virgin Islands Port Authority P. O. Box ; St. Thomas, VI Estate Lindbergh Bay; St. Thomas, VI MARK ON LOWER LEFT HAND CORNER OF ENVELOPE: RFP/Q FOR REDEVELOPMENT AND OPERATION OF HOTEL LINDBERGH BAY, ST. THOMAS, VI DUE DATE: MAY 3, 2012 VI. PROPOSER S RESPONSIBILITIES Proposals must be organized and tabbed to identify the location of information supporting the proposer s compliance with all requirements of the RFP/Q. Proposals that do not present information in this manner may be rejected as non-responsive. In order to be considered qualified to be selected, a proposer must also provide the information requested in the Attachments to this RFP/Q. a) The Proposer shall be totally responsible for all terms, conditions, promises, data, representations and all information included in its proposal. Failure on the part of any Proposer to take any and all actions necessary to comply with the terms and conditions herein, shall not constitute grounds for declaration of not understanding the conditions with respect to making its proposal. Each Proposer is responsible for reading and understanding this RFP/Q, including, but not limited to, the instructions for submitting proposals. A Proposer shall have no claim for relief based upon a lack of knowledge of the content or legal effect of any such requirement; b) Each proposer may only submit one proposal; c) Each proposer shall have carefully inspected the site, and all information included in this solicitation package, all inclusive, and judge for themselves all circumstances and conditions that affect the proposal; d) Proposal submissions shall be at the time and place designated on the cover sheet of this proposal document; e) Proposals must be complete and free from ambiguity, without alterations or erasures, and properly signed by the Proposer s legally authorized officer or agent to constitute a legitimate response; f) Submission of supplemental materials are the responsibility and within the discretion of the proposer;

11 g) The Virgin Islands Port Authority shall not be liable for any expense incurred in the preparation of a proposal; and It is desired that the information requested herein be prepared and submitted in an organized and efficient manner. It is very important that responses regarding qualifications be limited to the information requested, and not include materials which have not been requested. Proposals shall not be longer than 40 pages. The Proposer, by submitting a response to this solicitation, waivers all rights to protest or seek any legal remedies whatsoever regarding any aspect of this RFQ/P, including the Port Authority s selection of any Proposer. VII. PROJECT GOALS and OBJECTIVES The Port Authority s goal is to select a developer/operator who will lease the property at 70-T and 70-U Estate Lindbergh Bay, St. Thomas, VI to renovate the existing structures or develop, then operate a 3-Star Hotel on the site. The development of the Hotel must address the following objectives: A. Planning Objectives 1. Maximize the Port Authority s revenue from the site in order to help the Port Authority achieve its objectives, to support the traveling public and to provide public-oriented activities and open space improvements. 2. Create a landmark development that highlights the positive attributes of the area and create an orientation point along the main road to the extent feasible. 3. Respect and compliment the natural and other assets in the surrounding area. B. Financial Objectives 1. Invest substantial capital in the site. 2. Guarantee a minimum annual base rent, payable monthly and pay (%) of gross revenues to the Virgin Islands Port Authority. Proposers may, and are encouraged to propose a percentage rent. The percentage rents will be offset by the base rents. Thus, if the total sum of the percentage rents does not exceed the monthly base rent, only the base rent is payable to the Port Authority for that month.

12 3. The Port Authority will not require rental payments during the permitting stage of the Project. 4. Provide for adjustments in the base rent for cost of living and/or other participation in future increased revenues. VIII. GENERAL TERMS AND CONDITIONS 1. This RFQ/P is only an invitation to submit qualifications and proposals and does not commit the Port Authority in any way to enter into an agreement or to proceed with the proposed project. The issuance of the RFQ/P does not obligate the Port Authority to pay any costs whatsoever incurred by any Proposer in connection with: a. The preparation or presentation of qualifications or a proposal; b. Any supplements or modifications of this RFQ/P; or c. Negotiations with the Port Authority or any party arising out of or relating to this RFQ/P or the subject matter of this RFQ/P. The determination by the Port Authority to select a particular proposal shall not imply acceptance of the Proposer s business offer which may be subject to further negotiation prior to approval of a development agreement, ground lease or other agreements with the Port Authority. The lease will be subject to approval by the Port Authority s Governing Board and the Governor of the Virgin Islands in their respective sole discretion. 2. The Port Authority will convey a leasehold interest in the site to the Proposer in an As Is" condition. It shall be the sole responsibility of the selected Proposer to investigate and determine conditions of the site, including but not limited to utility connections for the improvements and alterations to be provided by the Developer/operator. 3. The information presented in this RFQ/P and in report or other information provided by the Port Authority to Proposers is provided solely for the convenience of the interested parties. It is the responsibility of interested parties to assure themselves that the information contained in this RFQ/P or other documents is accurate and complete. No representations, assurances or warranties, pertaining to the accuracy of such information, are or will be provided by the Port Authority or its advisors. 4. Except as specifically provide in an Exclusive Right to Negotiate Agreement, to be executed by the Port Authority and the successful Proposer, the Port Authority

13 expressly reserves the right at any time and for its own convenience, or sole discretion, to do the following: a. Waive or correct any defect or technical error as to form or content of this request or in any response, proposal procedure, as part of the RFQ/P or any subsequent negotiation process; b. Reject any and all proposals, without indicating any reason for such rejection; c. Reissue a Request For Qualifications/Proposals; d. Modify or suspend any and all aspects of the proposed project or the required responses, modify the minimum components in the development concept, or modify the process indicated in this solicitation; e. Request that proposers clarify, supplement or modify the information submitted; f. Extend deadlines for accepting responses, request amendments to responses after expiration of deadlines, or negotiate or approve final agreements; g. Negotiate with any, all or none of the proposers to the RFQ/P; h. Make a selection based directly on the proposals or negotiate further with one or more of the responders; i. Cancel its award to any proposer at any time before a final agreement has been fully executed and delivered; j. Reserve the right to cancel its award to any proposer without any liability to such proposer; k. During negotiations, expand or contract the scope of the project, including adding or subtracting land parcels to or from the project, or otherwise alter the project concept from that which was initially proposed in order to respond to new information, community or environmental issues, or opportunities to improve the financial return of the project; l. If negotiations with the successful Proposer fail to proceed to the reasonable satisfaction of the Port Authority, the Port Authority reserves the right to negotiate with and enter into a final agreement with another Proposer, or to begin the selection process anew.

14 5. Selection of a Proposer and granting of an Exclusive Right to Negotiate should not be construed as an approval of the proposed uses, configuration or design of the project. No final approval will occur unless and until the Port Authority s Governing Board has approved a agreement and lease and the required documentation thereto, and the Governor of the Virgin Islands has approved the lease. 6. By submitting a proposal, the Proposer certifies to the Port Authority that the Proposer has not paid nor agreed to pay, and will not pay or agree to pay any fee or commission, or any other thing of value contingent on the award of a lease or other agreement with the Port Authority related to this project, to any VI Government or Port Authority employee or official, or to any contracting consultant hired by the VI Government or the Port Authority for purposes of this project. 7. Responses to all inquiries about this RFQ/P shall be subject to the VI Open Sunshine Law. Information will be made available to the public upon written requests after a lease has been awarded. Proprietary information submitted in response to this RFQ/P will not be disclosed until and unless that person or entity is awarded the lease. Neither the Government nor the Port Authority shall be responsible under any circumstances for any damages or loss incurred by a Proposer or any other person or entity because of release of such financial information. Any information deemed to be confidential by Proposer should be clearly noted on the pages where confidential information is contained; however, the Virgin Islands Port Authority cannot guarantee that it will not be compelled to disclose all or part of any public record under the Law, since information deemed to be confidential by Responder may not be considered confidential under VI law, or pursuant to a Court order. Prior to releasing any information provided by Proposer, Virgin Islands Port Authority shall notify Proposer of the request. 8. All proposals become the property of the Virgin Islands Port Authority upon receipt and will not be returned. The Port Authority will not return submittals or any information submitted in connection with a submittal. 9. The Port Authority reserves the right to disqualify any proposers to this RFQ/P on the basis of any real or apparent conflict of interest that is disclosed by the responses submitted, or on the basis of other data available to the Port Authority. This disqualification is at the sole discretion of the Port Authority. Any false, incomplete, or otherwise unresponsive statements made in connection with a proposal may be cause for its disqualification at the Port Authority s discretion. Any judgment as to the significance of any falsity, incompleteness or unresponsiveness associated with a proposal shall be the prerogative of the Port Authority and its judgment shall be final.

15 10. The Port Authority will terminate all tenancies at the project site and convey a leasehold interest in the site to the Proposer without tenants in place. 11. The Developer/Operator shall be responsible for obtaining all governmental approval required for the development project, and the Developer/Operator will be expected to pay all permit and processing fees related to the development. Approvals for the project are required from governmental agencies other than the Port Authority, including but not limited to the Department of Planning and Natural Resources. In issuing this RFQ/P, the Port Authority makes no representation or warranties that the necessary governmental approvals that will allow the development of the site in accordance with guidelines set forth hereinabove can be obtained. Proposers should understand that the Port Authority is issuing this RFQ/P in its capacity as a landowner with a proprietary interest in the site and not as a regulatory agency of the VI Government with certain police powers. 12. The Developer/Operator will be required to ensure that the project is done in compliance with local building code. 13. The Developer/Operator will be required to comply with all government requirements in effect including with limitation, Non-Discrimination in Contracts and Property Contracts. 14. The Port Authority retains absolute control over the leases, operations and all services related to such operations for adjoining properties within its jurisdiction. 15. The Port Authority will not pay a Finder s or Broker s Fee in connection with the RFQ/P. Responders shall be solely responsible for the payment of all fees to any real estate broker(s) with whom such party has contracted. 16. All facts and opinions stated in this document (Including any attachments or exhibits) and in the additional reports and information are based upon available information, and no representation or warranty is made with respect thereto IX. QUALIFICATIONS SUBMITTAL FORMAT The Virgin Islands Port Authority is seeking RFQ/P submissions that address the following issues. Careful consideration will be given to the response to each issue. Overly elaborate submissions are specifically discouraged. Prospective Proposers are asked to submit only materials germane directly to the solicitation. As part of the RFQ/P, Proposers are asked to present information indentifying each item by letter and number:

16 A. Developer/Operator Entity Request for Qualifications and Proposals It is recognized that the Proposers responding to this RFQ/P may be defined in different ways depending upon the experience and capabilities of the individual firms involved. Some hotel operators are also experienced developers; others are not. The Port Authority wishes that the developer, architecture and hotelier firms be indentified in this phase of the selection process. Hence the following information is requested: 1. Identify the legal entity, its ownership and organizational structure that will accomplish the development and implement the project and identify the legal entity, if different, that will contract with the Port Authority for a lease. Explain the roles which the individual firms will have in the accomplishment of the project. 2. Identify the entity that will operate the Hotel, if different from the above, including all joint ventures/limited partners, joint venture interests and respective percentages of interest and capital/equity committed to the project. 3. Identify the intended role of each development partner and major consultants in the implantation of the development and the responsible entity in the organizational structure for ongoing project management. The development partners and consultants should include but not be limited to, architects, engineers, contractors, environmental and regulatory advisors, hotelier and legal counsel. 4. Identify the roles of all entity member firms in the operation of the project following its completion, and provide the structure of the operation and management business. 5. Identify the roles and submit resumes for the project manager and key individuals who will be involved in the development, implantation and operation of the project. If any of these entities have ever been in a legal or arbitration proceeding or debarred from working for a public agency as a result of professional actions or omissions, details of such proceedings or debarment must be provided. 6. Provide description ( numbers of employees, dollar volume per year, office locations, etc.) and describe relevant experience including but not limited to financial, marketing, architecture and engineering experience, including experience on (a) hotel development projects (b) commercial/retail projects, and (d) other development projects with public entities, for the following participants: a. The developer; b. The hotel operator; c. The architect and engineer; d. Environmental and regulatory consultants;

17 e. The general contractor; f. Legal counsel; g. Any other key consultant or participants. 7. Description of the lead negotiator and identification of any limitations on his/her authority to contractually bind the entity in negotiations. B. Developer/Operator Experience The Port Authority is interested in learning of the relevant development experience of the responding teams with respect to hotel development, hotel renovation, operation and management. For each project indentified, include information regarding: 1. Type of project(s) and development(s) and scope of involvement describing role 2. Descriptive information and characteristics of the development(s) location, size, number of rooms, 3. Development timeline (from developer selection/site control to completion of construction, indicating any phasing if relevant) 4. Project cost, capital and financing sources used and economic performances; 5. Unique challenges of project occupancy, innovative approaches and techniques utilized; 6. Current management owner contracts; 7. Whether or not development was undertaken in conjunction with public entities, with references/contact information; 8. Identification of development entity and explanation if different from the Proposer for the project; 9. Identification of operator/manager for the hotel and explanation if different from the Proposer. C. Financial Capacity and Capability The Port Authority is seeking assurance that the responding teams have the financial capability to develop and operate the hotel, the ability to provide performance guarantee and insurance requirements and access to equity capital and financing resources to complete the

18 proposed project. In order to evidence these capabilities, Proposers responding to this RFQ/P are requested to provide in a separate submittal, the following information: Private Equity: the amounts, sources and timing of private equity to be secured for the Hotel Project. Determine the required rate of return for equity investors in this deal. a. The most recent available credit report, the most recent annual report and audited financial statements (including explanatory material and audit reports) for the previous four (4) fiscal years of each principal partner and joint venture participant, including state of changes in financial position and statements of any parent organizations and any materially relevant subsidiary units, identifying any projects with negative cash flows, amount of Proposer's resource debt, any nonperforming loans and the amount of Proposer's recourse debt, any non-performing loans, and the amount of guarantees and/or contingent liabilities. b. A complete presentation of the current real estate portfolio, inclusive of ownerships and/or operations, providing descriptions of commercial enterprises and rental rates of the Developer/operator, manager, etc.), ownership interest and occupancy rate. c. Recent history (preferably within the last two (2) to three (3) years) in obtaining financial commitments, detailing type of project, financing source, amounts committed, etc. d. Examples of development projects completed with one hundred percent (100%) equity or subordinate debt financing. e. A list and description of all Proposer's projects currently underway but not yet completed and opened, including status, development schedules(s), the financial commitment required of Proposer, a detailed description of the project financing methods, sources and amounts, and working relationship (on other projects) with members of the proposed team on this project. f. Identification of financing sources of equity and debt capital and description of relationship (including contact information) between the Proposer and the financing sources. g. A written statement from each financing source that the equity and/or subordinate mortgage capital is available or will be made available for funding the proposed hotel project, and that the project outlined by the Port Authority is consistent with the source s investments criteria for a project of this size. In lieu of a letter of commitment, Proposer may be submit written statements from their financing sources describing past hotel projects which said source has financed for said Proposer, detailing the amount of capital, the size of the project and any other

19 pertinent information which will assist the Port Authority in determining the availability of equity or subordinate mortgage capital to fund the project. h. Address whether the Proposer or any participant team members have been involved in any litigation or other legal disputes regarding a real estate venture during the past five (5) years. In explanations, include information regarding the outcome of any materials litigation or dispute. Also, indicate if the Proposer or any participating team members have ever filed for bankruptcy, or have owned or controlled projects that have been foreclosed, or have had fines levied by governmental agencies. Include the date of the occurrence, contact person, telephone number and address. D. References Provide a listing of at least five current references that have relevant knowledge concerning the development team's ability to manage such projects. References should be able to speak on project management experience, community outreach and planning, marketing, management of historic and natural resources, ability to deliver projects on time and within budget. Names, affiliations, addresses, and current telephone numbers of all references must be provided as well as a brief description of the relationship between the development team and the reference. References may be contacted by the Virgin Islands Port Authority to discuss the Proposer and its team's qualifications and history. E. Acceptance of Conditions All Qualifications Statements shall specifically indicate acceptance of the following conditions and shall specifically state the Proposer's position (where the Proposer is defined as the firm or entity which will actually contract with the Virgin Islands Port Authority ) on the following: 1. Evidence of Financial Status - The Virgin Islands Port Authority may require the submittal of whatever evidence it deems necessary relative to the Proposer's financial status. 2. Further Information - The Virgin Islands Port Authority reserves the right to ask for further information from the Proposer, either in writing or orally, and requests will be addressed to that person (or those persons) authorized by the Proposer to represent same. 3. Virgin Islands Port Authority's Right to Judge - The Virgin Islands Port Authority reserves the sole right to judge the Proposer 's representations, either written or oral, as to their veracity, substance and relation to this particular project scope. 4. Exceptions - Any specific exceptions to the conditions or requirements as presented in these RFQ/P instructions shall be written in this section. Alternate conditions and/or proposed modifications should also be presented in this section of the Qualification Statement.

20 X. PROPOSAL SUBMITTAL FORMAT Information must be submitted in the following format, identifying each item by letter and number: A. Project Concept Proposers are requested to provide, in a narrative, a description of their project for a hotel. This project plan should be based upon the Development Program set forth in the RFQ/P and should be sufficiently developed and refined to allow detailing of the following project elements: Project footprint, number of floors, height of structures, and any other consideration related to the height and bulk of the project. This presentation should include a discussion of all elements of the proposed plan. The project should represent what the development team believes to be an appropriately defined project for the site, recognizing the Port Authority s objective of maximizing revenues from the site. Description of the project concept, market orientation, brand affiliation (if any), the proposed amenities, approximate square footage, number of parking spaces. It is understood that the description proposed in the Project Concept are preliminary in nature, i.e. represent the initial thinking of the development team about the scope of the project. Such descriptions are not absolutely binding upon the team selected, since the project undoubtedly will be refined and modified in the development phase. However, it is hoped that this project Concept description will provide an opportunity for teams to display creativity, market and industry knowledge and a response that is site specific. B. Facility Design and Quality of Improvements Proposers are requested to provide a description of their thinking on the architecture and urban design considerations of the project and to provide the following to facilitate evaluation of the quality and design of the Hotel proposed: 1. Conceptual drawings, perspective renderings to show the appearance and character of the development with dimensions, exterior elevations, floor plans and sections showing key elements of the project drawn in sufficient detail to show guest rooms, commercial space(s), if any, lobbies, corridors, restaurant, meeting spaces, elevator and/or stairs, loading space, pedestrian and vehicle entry points, parking, proposed uses and their locations and other features of the project.

21 2. A description and discussion of the architectural approach to the project structure, including thinking regarding general style, furniture, fixtures, colors, setbacks, signage and other design elements. These should support the requirements of a 3- Star or above Hotel. 3. A description and discussion of the design relationship between the project and neighboring areas particularly the hotel next door and beach. A list of local comparable hotels for verification of a 3-Star Hotel. C. Financial Proposal In order to address the Port Authority s objectives of establishing reliable, long-term revenue stream from the hotel project, Proposers are requested to provide considerable detail in written form on the financial aspects of their proposed project. It is important to address each of the items set forth below. If an item is not addressed, and explanation of why this is the case should be provided. Failure to address or otherwise provide an explanation may result in the Port Authority s determining the proposal to be non-responsive. Project Development Cost: provide a breakdown of construction and development costs, including hard and soft costs. Funding: provide a complete explanation of the financial arrangements, including how the development will be financed and the proportion of the equity cash and subordinate debt. Specifically identify the source(s) of all needed funds. Submit a written statement from each financing source that the equity and/or subordinate mortgage capital is available for funding the proposed hotel project and that the project outlined by the Port Authority is consistent with the source s investment criteria for a project of this size. Document the source of availability of funds with current audited financial statements, financing agreements, letters of commitments or similar supporting documents from all sources. Indicate whether any funding sources or financial institutions have taken any adverse action against any member of the proposed development team, such as terminating or restricting the use of funds any time during the past five (5) years. If so, describe those circumstances, including the measures that have been taken to correct the situation and the current funding from those sources. Income Projections: Set forth the income the Port Authority can expect to receive under the ground lease during the first ten (10) years of operation through guaranteed minimum monthly base rent adjustments, percentage rent on gross receipts and construction periods. Pro-Forma: Provide an estimate of the revenues and expenses of the proposed project in the form of a pro forma State of Cash Flow for each year during the first ten (10) years of the ground lease. Clearly state assumptions regarding rate,

22 operating revenues (by source), detailed operating expenses, development costs, inflation rates and financing assumptions. The cash flow should reflect the impact of any proposed business terms on the overall project and the timing of impact of any proposed business terms on the overall project and the timing of payments to the Port Authority. Indicate the first year of stabilized operations. The cash flow should include: Project occupancy %, Average rate and RevPAR. A detailed forecast of revenues and expenses concluding in a net income available for debt service. The forecast shall set forth each operating department s revenues concluding in a total revenue line, each operating department s expenses, concluding in a total departmental expense line, undistributed operating expenses and fixed expenses (including ground lease rental payments to the Port Authority). Debt Service (principle and interest) Non-Operating Outlays New Financing or Replacement Financing Participation Payments Capital Additions (capital improvements and replacements, tenant improvements for retail tenants) Reserves Cash flow before tax D. Business Terms Provide a detailed presentation of the proposed business terms include the following: Minimum guaranteed annual base rent, payable monthly to the Port Authority under each year of the ground lease. Percentage rent on gross income to be paid to the Port Authority. Note: The percentage rents will be offset by the base rent. This, if the total sum of the percentage rents does not exceed the monthly base rent, only base rent will be payable to the Port Authority. Construction Period Rent: Propose the monthly amount and length of time.

23 Adjustments to Rent: Propose annual adjustments in the base rent in the form of cost of living and/or other participation in future increased revenues. Length of the term of the lease. Completion guarantees: Describe bonding and insurance agreements to ensure timely completion of the project. All other business terms so that the Port Authority fully understands the intent and basis of the proposal. E. Management and Operation Plan of the Hotel Describe the relationship between the owner and the hotel manager and if applicable, the form of management agreement between these parties. Please address the following issues: Term and Structure - State what term (duration) of the agreement will be: the nature of the agency relationship; whether there will be a franchise license for any Brand Name or Flag, the extent to which the manager will be involved in operating non-retail space, such as retail areas, parking and other facilities, the owner s termination rights and ownership of personal property. Financial Obligations - Describe the fee structure, how reserves will be handled; budgeting and reporting procedures and record keeping systems. Operational Issues - Describe responsibilities for maintenance of the facility and the standard of operation for management of the hotel; explain who will be the employer of record for the employees; who has the responsibility for labor union negotiations and for selecting, hiring, training and firing employees, including key positions. F. Project Schedule Provide a project timeline; setting forth anticipated dates to complete the following components of the project: Completion of negotiations Securing entitlements Conveyance of ground lease Commencement of construction

24 Stabilized operations G. Understanding of Site Request for Qualifications and Proposals The Port Authority is seeking Responders should provide evidence of an understanding of the site with respect to the opportunities and constraints presented by the physical characteristics of the site and the relationship to the surrounding areas. H. Vision Statement The vision statement provides the Offeror with the opportunity to articulate the overall development and management concept; demonstrate the extent, character and quality of the project envisioned; discuss the business entity; generally describe the intent to work within the stated design principles; and, provide initial thoughts on the feasibility of the Project Vision of the Virgin Islands Port Authority. XI. CRITERIA A. SELECTION CRITERIA FOR STATEMENTS OF QUALIFICATIONS The Port Authority intends to enter into exclusive negotiations with a Developer/operator who has the capacity to deliver a program that meets the Port Authority s objectives for the project. Experience in the development and operation of a Hotel and the financial capacity of responding Proposers, including in particular the ability to access equity and/or subordinate financing, will be the most important criteria considered y the Port Authority. A selection committee for review of the RFQ/P will be established. The Port Authority will use the following criteria in evaluating the responses to the Statement of Qualifications portion of the RFQ/P. 1. Experience of the Proposer and the Proposer's team to successfully develop and operate a hotel. 2. Experience, qualification and local presence of the Proposer s technical advisors and consultant team, as demonstrated by comparable projects. 3. Financial strength of the Proposer. 4. Ability of the Proposer to attract, raise and commit debt and equity capital for a project of this size without requiring the Port Authority to subordinate its lease income debt. 5. Prior success of the Proposer with respect to economic performance, architectural and urban design quality, quality of public amenities and quality of ongoing operations and management.

25 6. Ability of the Proposer's team to implement complex development projects effectively. 7. A commitment to meet the Port Authority s financial and design objectives. 8. A general concept for development that addresses the Port Authority s objectives set forth in this RFQ/P. 9. Within the Proposer s organization, clear lines of responsibilities upon which the Port Authority can rely during negotiations and implantation of the project. 10. Understanding of the local market and community issues. 11. Understanding of the regulatory approval processes, as reflected in the project schedule and general project concept. 12. Other factors as appropriate. B. SELECTION CRITIERIA FOR PROPOSALS In the Proposals Section of the selection process, the focus will include the criteria used in evaluating the response in the Statement of Qualifications section and the additional criteria set forth below: A. The project concept and design including: The type, scale and amenities of the proposed hotel; The quality of the design and overall physical plan; The design s compatibility with the surrounding neighborhood; The achievement of the Port Authority s objective for the project; B. The financial propel and business terms, including maximizing: Lease annual rent Percentage rents Construction period rent Rent adjustments Length of lease term C. Demonstrating the feasibility of the project, including: The project economics Timetable for development