CITY OF NORFOLK and the NORFOLK REDEVELOPMENT AND HOUSING AUTHORITY

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1 CITY OF NORFOLK and the NORFOLK REDEVELOPMENT AND HOUSING AUTHORITY CHOICE NEIGHBORHOODS IMPLEMENTATION LEAD HOUSING DEVELOPER REQUEST FOR PROPOSALS (RFP) SUBMISSIONS: ORIGINAL, SIX (6) COPIES & THUMB DRIVE, DUE 06/13/2018 I. OPPORTUNITY The City of Norfolk (City) and the Norfolk Redevelopment and Housing Authority (NRHA) seek to engage a lead housing developer (or development team) to lead an initial phase of what will be the comprehensive redevelopment of more than 250 acres of publicly-owned land in the St. Paul s area, adjacent to downtown Norfolk, Harbor Park Stadium, and the Waterside District. This RFP seeks a development partner for Norfolk s planned application for Federal funding through the Department of Housing and Urban Development s (HUD) Choice Neighborhood Initiative (CNI) program, which will be in the initial phase of the redevelopment. Ultimately, the revitalization of the St. Paul s area will also include a subsequent RFP for a development team to work with the City to carry out additional mixed-use and mixed-income development beyond the CNI activities. This RFP results from many years of focused and successful consideration of the existing conditions and long-term opportunity of the Saint Paul s area: There is an engaged local community, and a broadly-held set of planning principles in place. NRHA and the City have worked in consultation with the community since 2010 to develop a vision and plan for the neighborhood. This planning work has included extensive community outreach and has considered the neighborhood holistically from the perspective of residents, infrastructure, economy, and the City overall. NRHA and the City are working in close alignment to ensure a successful CNI Implementation application. In 2014, Norfolk completed a Transformative Plan for St. Paul s with funding support from a successful HUD Choice Neighborhood Initiative (CNI) Planning Grant (see supporting documents online). Since that time, Norfolk has also planned for necessary upgrades to local storm, flood, and other infrastructure. NRHA and the City have committed local funding to the redevelopment and are prepared to dedicate additional funds. In the 2018 City of Norfolk Capital Improvement Plan (CIP), City Council approved $14 million over five years for capital improvements in the St. Paul s area. On May 23, 2018 Norfolk City Council approved a budget providing additional funding to support redevelopment efforts, while also exploring other local public funding tools to make the necessary infrastructure improvements. NRHA will provide a combination of tenant-based, and project-based vouchers for deep-subsidy replacement units. NRHA may also draw on its capital funding for appropriate uses, and Demolition and Disposition Transition Funding (DDTF). A successful CNI Implementation Grant application will bring $30 million to support the Housing, People and Neighborhood (Critical Community Improvements) goals of the Transformation Plan.

2 This neighborhood-scale redevelopment opportunity has the potential for real and lasting economic impact for the City and a development partner(s). Within the total redevelopment area there are over 250 acres of publicly controlled land in close proximity to Downtown Norfolk, the NEON Arts District, and the Elizabeth River waterfront with easy access to The Tide light rail and interstate highways. Over the course of the redevelopment process, there is an opportunity to improve the lives of existing residents, to reduce the concentration of poverty, to redevelop all of this property, and to stimulate additional private investments. The Federal Tax Cuts and Jobs Act of 2017 included provisions for a new revitalization tool, the Opportunity Zone and Opportunity Fund. Broadly speaking, the Zones and Funds will allow investors to receive tax benefits on currently unrealized capital gains by investing those gains in qualified census tracts (Opportunity Zones). The census tracks in St. Paul s have been nominated as Opportunity Zones. The alignment of these efforts and opportunities suggests there is a powerful moment of opportunity for the City of Norfolk, one that can only be realized in partnership with a like-minded and thoughtful development team. II. OVERVIEW The City and NRHA s vision for the St. Paul s area is for it to be revitalized into one of Norfolk s most desirable neighborhoods where families and residents from all income levels, races, ages, and cultures can live, learn, work, play and thrive. This initiative will transform an area with high concentration of poverty into a mixed-income, mixed-use community of opportunity. The plan will leverage, connect and extend ongoing work in Norfolk s adjacent downtown district. A key asset in a redeveloped St. Paul s will be transformation of low-lying areas that are often impacted by flooding, into a water eco-center comprised of parks, green spaces, as well as a dynamic living laboratory to provide research, educational, and recreational opportunities for Norfolk residents, the region and beyond. Norfolk will no longer be on the water but rather will be of the water. The St. Paul s area revitalization will coordinate the physical transformation with a comprehensive approach to the needs of people, related to education, jobs, health, and wellness. It will offer first class mixed-income rental and for-sale housing, high performing neighborhood schools focused on science, technology, engineering, arts, mathematics, and project-based learning, as well as include high-quality retail, commercial, and medical uses, primarily along a revitalized Church Street. The use of science and technology to improve the way we live will also be used to create unique assets for people near water. The design of the open space will both protect the area from flooding and provide beautiful parks and gardens. It will be recognized nationally for its resilient incorporation of water, parks, recreation areas, which will make the area one of the most visited in the State of Virginia. These amenities will be a means of attracting innovative research and technology firms, thereby providing new employment opportunities for residents at all economic levels. Early in the planning process, residents and community stakeholders established the following principles for the physical plan (see accompanying 2014 Transformation Plan in supporting documents): 2

3 Resilient Park and Open Space Network: Create a park system to protect from flooding and provide recreation amenities. Cradle to Career and Lifelong Learning in a Community-Wide Campus: Create a community-wide campus with educational opportunity for all ages. Church Street as the Heart of the Community: Restore and realign Church Street as the heart of the community with shops, food stores, health, and medical facilities. Pedestrian Scale Streets to Connect the Community to the Opportunities of the City: Create pedestrian scale connections to opportunities in the larger community. Network of Neighborhood Streets and Blocks: Build a pattern of neighborhood streets and blocks to create the framework for a mixed-use, mixed-income community. Mixed-Income Community: Provide a diverse mix of residential development that provides lifestyle housing from single-family and townhomes to small- and large scale. New Employment Opportunities: Provide employment opportunities at the edges of the community for residents of the neighborhood and City-wide. A revitalized St. Paul s will provide a once-in-a-generation opportunity for people and place to create an economic engine that will benefit the whole City. It will be a walkable community in which all functions of daily life are available within close proximity; a vibrant, healthy community where people of all ages can live, work, learn, and play and take pride in their community. As part of this comprehensive revitalization, the City and NRHA will jointly submit an application for an implementation grant under the Choice Neighborhoods Initiatives (CNI) program of the U.S. Department of Housing and Urban Development (HUD) in Fiscal Year 2018 as Lead Applicant and Co-Applicant (together referred to as Co-Applicants ). NRHA is a unit of government and its functions are essential governmental functions. It operates and manages its housing developments to provide decent, safe, sanitary, and affordable housing to low income families, the elderly, and the disabled, and implements various programs designed and funded by HUD. The Co-Applicants are responsible for implementing the activities identified in the implementation grant application, which will update the City s Choice Neighborhood Transformation Plan, accepted by HUD in 2014 (see accompanying Transformation Plan, 2014). NRHA is requesting qualification statements from experienced housing partners who can demonstrate through their submittal that they possess the necessary qualifications to implement the comprehensive redevelopment of the St. Paul s area, or have experience forming a development team to undertake a redevelopment of this size and complexity. The Developer chosen for the CNI implementation effort will also be considered for development opportunities beyond the CNI phase of development and may be selected for some or all of the subsequent development activities. The Developer will be an integral partner with the City and the NRHA to implement the housing component of the Transformation Plan. The successful Developer should have the capacity to manage the housing and development process. The preferred arrangement is to engage a partner who is willing to handle all aspects of the housing development efforts. The Notice of Funding Availability (NOFA) for Choice Neighborhood Implementation grants was released on May 18, The CNI Implementation Grant application submission deadline is 120 3

4 days from the release of the NOFA September 17, It is expected that HUD will be awarding four or five grants at a maximum of $30,000,000 each from FY 2018 funds. No more than 15 percent of grant funds may be used for supportive services, as defined in the NOFA; no more than 15 percent of funds may be used for Critical Community Improvements, as defined in the NOFA. HUD will review the applications in three stages, with the first stage focused only on Capacity and Need. The second stage will focus only on the Strategy and Soundness of Approach rating factors, except for the Impact of the Transformation Plan rating sub-factor. The third stage will consist of site visits, anticipated to take place in January-February The NOFA indicates that awards are expected to be made in February Evolution of Plans for the St. Paul s Area. Planning for the CNI Transformation has evolved over time. The City and NRHA initially engaged a planning team, led by Goody Clancy, to develop plans for the area defined as St. Paul s Quadrant, which included the Tidewater Gardens community owned and managed by NRHA; the resulting plan was released in In December of 2010, NRHA and the City submitted a CNI planning grant application to HUD, and in 2011 received the planning grant. The CNI planning process resulted in substantially enlarging the target area geography, to include two other, adjacent, public housing communities (Calvert Square, with 310 units, and Young Terrace, with 746 units), as well as the residential City neighborhood of Huntersville. The public housing identified for redevelopment was limited to Tidewater Gardens. NRHA submitted the Expanded St. Paul s Area Transformation Plan in April, 2014, which plan was subsequently accepted by HUD. In 2013, the Rockefeller Foundation announced the 100 Resilient Cities Challenge, an initiative supporting 100 cities in their efforts to build resilience. Norfolk was among these cities. Norfolk is also one of eight cities selected for the Rockefeller national RE.Invest Initiative ( which helps cities attract private investment to be used along with public resources to more efficiently upgrade their infrastructure. This project focuses on improved drainage and reduced flooding to help prevent damage during future severe storm events. Nature-based infrastructure projects also beautify the City, make the City more resilient to extreme weather, more attractive to businesses and investors, and save taxpayer money. See Norfolk s Coastal Resilience Strategy: Both the Tidewater Gardens and Calvert Square public housing communities have large areas of their sites that are within the 100-year flood plain (see Flood Map, Attachment 4), leading to further adjustments to the plans for this area. NRHA and the City continued engaging residents of Tidewater Gardens, Calvert Square, and Young Terrace, as well as several offices within HUD, to refine plans for ultimately relocating all of the residents, demolishing all 1,674 units of public housing and redeveloping the Expanded St. Paul s Area, which abuts the City s Central Business District. In looking for successful community redevelopment models in other parts of the country, the City and NRHA became intrigued with the holistic, mixed-income model advocated by Purpose Built Communities. Purpose Built is a not-for-profit organization that consults with local leaders to 4

5 implement a holistic neighborhood redevelopment initiative. Purpose Built s model includes three strategic pillars: quality mixed-income housing, excellent cradle through college educational opportunities, and an array of community programs and services appropriate to the specific neighborhood. The model is galvanized under the leadership of a single-focused organization whose sole purpose is ensuring the success of the pillars and establishing strong private/public partnerships to provide the residents with excellent programs and services and creating a community where everyone can thrive. Purpose Built now has 18 Network Members that are implementing this model across the nation. Purpose Built s model closely mirrors the CNI program and the City and NRHA see a unique opportunity for Norfolk to utilize this holistic neighborhood transformation model to redevelop this area in a way that provides a service-rich environment within which residents of all ages and incomes thrive. Through this RFP, the City and NRHA are seeking a Developer who understands this approach. In 2018, the City and NRHA agreed to jointly pursue a Choice Neighborhoods Initiatives Implementation Grant from HUD, seeking a $30 million capital infusion to launch the first phase of redevelopment of this area, focused on Tidewater Gardens. The City engaged Ray Gindroz, Co-Founder of UDA, to help lead the visioning for the area, and the CNI application preparation includes a more granular planning effort to identify and design sites for near-off-site replacement housing, as well as locations on the Tidewater Gardens site. III. SUBMISSION REQUIREMENTS Responses to this RFP should be submitted to Norfolk Redevelopment and Housing Authority (NRHA). NRHA must be in receipt of an original and six (6) copies, and a thumb drive copy of the proposal complete with all attachments, on or before 4:30 PM, June 13, Applications that arrive after the deadline will not be accepted. Diskettes, facsimiles, and electronic mail documents will not be accepted. All proposals become the property of NRHA and the City of Norfolk. Hand or Courier Delivery: Mailing Address: John Kownack, Executive Director 555 E. Main Street PO Box 968 Norfolk, VA Summarized below are requirements for submission to this RFP. See section XI for additional detail. Initial Response to this RFP is limited to only the qualifications of the Respondent. See details in section XI of this document. The most qualified Respondents will then be shortlisted and invited to a meeting to discuss this opportunity in more detail. Short-listed Firms will be invited to make an oral presentation in Norfolk. This presentation is expected to focus on a successful example of the applicant s work on a neighborhood transformation in another market. Short-listed firms should be prepared to 5

6 discuss a prior project in detail, highlighting the role of the team, their work with local government, and key lessons learned. Short-listed firms may also be asked to submit a narrative and graphical representation of their vision and development program for buildout on the available sites (per St. Paul s Area Redevelopment Opportunities Map, Attachment 2), including unit counts and mix, to achieve at least the minimum requirements specified below in this RFP. If this is requested, additional time will be provided. The City and NRHA reserve the right to reject any or all responses, to waive or not waive informalities or irregularities in proposals or procedures, and to accept or further negotiate cost, terms, or conditions of any proposal determined by the City and NRHA to be in the best interests of the City and NRHA. The City and NRHA reserve the right to reject incomplete proposals. The City and NRHA reserve the right to extend the deadline time for submission. Neither Respondents nor any of their contractors may be debarred or suspended from participating in federal programs, have any outstanding federal debt or any unresolved Civil Rights matters. Minority-owned Business Enterprises (MBE): The City encourages Minority-owned Business Enterprises (MBE), and Women-owned Business Enterprises (WBE) to apply. Priority points will be given to Developers who include MBEs and WBEs as a part of their development team. The City and NRHA expect that the successful development team will reflect the diversity of Norfolk. Positive consideration will also be given to Developers who use local developers and contractors in the planning and development process. Questions: Questions and requests for additional information related to this RFP must be made in writing and directed to Steve Morales, Neighborhood Projects Director, at SMorales@NRHA.US. All questions received on or before June 01, 2018 will be answered in writing and made available through amendments to this RFP, and posted to NRHA s website. Amendments: Any amendments to this RFP, including any changes needed due to any modifications of the 2018 CNI Implementation Grant NOFA (Attachment 3), and responses to questions submitted, will be made available on the NRHA website and sent to all of those who registered as interested in the RFP. Supporting Documents: Attachments and other supporting documentation for this procurement are located at this website: IV. BACKGROUND INFORMATION Choice Neighborhoods is designed to address struggling neighborhoods with distressed public housing or HUD-assisted housing through a comprehensive approach to neighborhood transformation. In 2011, the U.S. Department of Housing and Urban Development awarded a Choice Neighborhood Planning Grant to the City and NRHA. The focus of the Expanded St. Paul s Area Transformation Plan, as submitted in 2014 (attachment 7), is Tidewater Gardens. The Expanded St. Paul s target area, including Tidewater Gardens, 6

7 stands in stark contrast to the adjacent Central Business District. St. Paul s Boulevard separates these areas with downtown on the West side and Tidewater Gardens on the East side. Tidewater Gardens was built in 1955 and consists of 618 severely distressed public housing units on 43 acres, in census tract 48, with a current poverty rate of 76.92%. The census tract just north of Tidewater Gardens has similarly high poverty rate 66.67% (CT 42). Although the CNI funding will target only Tidewater Gardens, the larger long-term transformation area also includes the nearby Calvert Square public housing community, with 310 units built in 1957 and the Young Terrace public housing community, with 752 units built in The Tidewater Gardens community is served by several nearby schools: Tidewater Elementary (adjacent to Tidewater Gardens); Ruffner Middle School (immediately east of Tidewater Gardens); P.B. Young Elementary (located on the Young Terrace site); and, Booker T. Washington High School (located within one mile). At the time of the CNI Planning, crime data for the target area indicated Violent Crimes per 1,000, versus 7.14 for the City nearly three times as high. The Downtown Plaza shopping center that served this community failed. In all, the area is home to 1,674 low-income public housing families in a deteriorating neighborhood. Norfolk anticipates that the aging elementary schools within the CNI project area will be replaced as part of the larger revitalization effort. Across St. Paul s Boulevard, the CBD poverty rate is currently a low 19% (CT 49). The Downtown area experienced the strongest growth of any city in the country in the 1990s. Restaurants, new hotels and high-rise office buildings have been developed, along with substantial waterfront revitalization. Innumerable assets in the downtown make it vibrant, including: Light Rail (opened in May 2011); Scope Arena and Chrysler Hall; six historic churches; Norfolk s Government Center; Nauticus; and the USS Wisconsin. The Expanded St. Paul s Area Transformation Plan, as submitted in 2014, may be found at the following website: Respondents should keep in mind that current plans vary from the 2014 Plan as submitted, primarily due to new information and strategies related to resilience, and the decision to also relocate residents from Young Terrace and Calvert Square and also redevelop those areas (although in later phases, following the CNI first phase). Current long-range plans entail redevelopment of the entire St. Paul s area of the City, which roughly stretches from Harbor Park to the South, Saint Paul s Boulevard to the West, Tidewater Drive to the East, and Virginia Beach Blvd. to the North. See area maps supporting RFP, available on-line. Numerous other changes also influence the current plans, such as the locating of an intermodal bus transfer station in the area, the securing of additional parcels by both the City and NRHA, the funding of a tax credit development with 120 units in the area, progress in discussions with the Postal Service to acquire their facilities in the heart of this area, indication from the City that the elementary schools will likely be demolished and replaced, and many other changes. Another important change is that HUD has indicated that although one-for-one replacement is required, up to half of those replacement units (309 of 618) may be satisfied by the issuance of vouchers, and therefore only approximately 309 hard replacement units will be required. 7

8 For the total revitalization area, including all three public housing communities, the goal is to provide for approximately 600 units of deep-subsidy project-based rental assistance in a viable mixed-income development that holistically addresses the needs of low-income residents by providing supportive services, education and economic development opportunities for all ages, health and wellness programs, transportation access, recreational opportunities and commercial investment. For CNI, subject to discussions with the selected Developer and the final planning prior to application submittal, the expectation is that about 200 hard replacement units would be located very near or on the Tidewater site. Another 110+/- hard replacement units would be placed in developments elsewhere within the CNI application area boundaries, or potentially outside the boundaries, if in non-racially-impacted (not more than 20% higher than the MSA); and non-poverty census tracts (under 40% poverty): Minority Concentration: Poverty: In order to achieve a mix of incomes in the replacement housing developments, the near-site and on-site developments are expected to include about 600 units, with 200 of these being deep-subsidy replacement units and at least 50% being non-assisted. An important goal of the overall redevelopment is the creation of a new, economically viable mixed-income development that includes residential, and, as feasible, non-residential uses. The development should include a mix of subsidized, affordable and market-rate rental and homeownership units as determined to be viable and advantageous. The different affordability types should be mixed across all building types with complete integration of low-income units across the entire site. V. CHOICE NEIGHBORHOODS GOALS The vision is to expand rental housing and homeownership opportunities throughout the neighborhood. This housing would serve residents across an income spectrum, including veterans. The overall plan is formed around three core goals: Housing: Transform distressed public and assisted housing into energy efficient, mixedincome housing that is physically and financially viable over the long-term: 1. Housing that is energy efficient, sustainable, accessible, and free from discrimination; 2. Housing that mixes incomes to de-concentrate poverty and create housing affordable to families and individuals with a broad range of incomes including, low income, moderate income, and market rate; and 3. Housing that is well-managed, financially-feasible, and sustainable over time. People (and Education): Support positive outcomes for families who live in the target development(s) and the surrounding neighborhood, particularly outcomes related to residents health, safety, employment, mobility, and education; and Neighborhood (and Critical Community Improvements): Transform neighborhoods of poverty into viable, mixed-income neighborhoods with access to well-functioning services, high quality public schools and education programs, high quality early learning programs and services, public assets, public transportation, and improved access to jobs. 8

9 Each area will have a Lead Implementation Entity: Housing Implementation (i.e., the Developer selected through this present procurement); People Implementation; Education Implementation, and Neighborhood Implementation. These Entities must work together in accordance with the Transformation Plan that is to be presented in the CNI Implementation Grant Application. Once selected, the Developer (Housing Lead) will have the opportunity to participate in the final stages of planning and in the preparation of the CNI Implementation Grant Application. V. REQUIREMENT AS LEAD HOUSING IMPLEMENTATION ENTITY Developers must have extensive experience and financial resources to develop comprehensive housing. The successful Developer must demonstrate the ability and experience to develop and implement a mixed-income, mixed-finance, mixed-use development, using various funding mechanisms such as Low Income Tax Credits, New Market Tax Credits, HOME, CDBG, FHLB, etc. Only Developers who have extensive experience in housing are eligible to be considered. Preference will be given to Developers who have successfully completed similar and other HUD-related housing and redevelopment projects. Developers must be able to demonstrate that they have implemented and operated housing in comparable scope, scale and complexity to the Housing component of the plan. Developers are encouraged to present the City and NRHA with a complete Development Team including the principal professional disciplines and trades required to initiate and coordinate the actions and events required to advance the proposal through various stages from conception to completion for the CNI. The City and NRHA require the identification of the Development Team including at least the intended architect, engineering firm, and property management firm. Other team members are allowed on a discretionary basis at the individual Development level and therefore are not required for initial disclosure. Finalists may be asked to provide a Pro Forma for their proposed first phase. The City requires the Developer to initiate and maintain processes, systems, procedures, records and methodologies that allow for effective lease enforcement and prevention of property loss, while simultaneously ensuring that all the PHA-Assisted Units are maintained and operated in compliance with all requirements of LIHTC, applicable law, HUD regulations, and policies approved by the City. Additionally, it will be critical for the management team to manage the property in accordance with the highest industry-leading standards. The selected Developer will be expected to coordinate with and support the CNI activities as part of the overall development effort including Section 3 employment opportunities and WBE/MBE participation throughout all aspects of the project. Developers must be willing to comply with procurement requirements, relevant regulations, and any other applicable provisions of federal, state and local laws. The Developer must not have any interest which would conflict with the performance of services required by this Request for Proposals (RFP). VI. NEW HOUSING DEVELOPMENT DESCRIPTION This CNI housing strategy calls for the creation of new housing opportunities across the range of housing types, incomes levels, and tenures. In order to achieve the de-concentration of poverty and 9

10 a mixed-income community, the CNI plan indicates that an estimated 600 to 900 new housing units will be built in phases, including 300+/- having deep subsidy to constitute the required hard replacement units for the demolished public housing community. Supporting documents to this RFP (see documents provided online) include maps that show the parcels under City and NRHA site control that are available at this time or during the CNI implementation period for redevelopment, and the timeframe when they are anticipated to be available ( near-term, and other ). For the on-site parcels, it is expected that a minimum of 20% of the units have deep subsidy (project-based Section 8 at 100% FMRs). No family projects should have more than 50% replacement units. See scoring criteria in 2018 CNI NOFA, excerpted below. To earn points for this rating factor, at least 50 percent of the new or rehabbed units must be nonreplacement housing. Points will be awarded in accordance with the table below based on the percentage of units that will be available to households earning above 60 percent of AMI. This can include units that have received financial assistance (including Choice Neighborhoods funding to build non-replacement affordable housing as defined in Section I.A.3) to develop the unit, but will not receive direct, ongoing operating subsidy. If the Housing Plan contains 50% or more of public and/or assisted units, the application will receive zero points. [Emphasis was added.] VII. GENERAL REQUIREMENTS A. Affirmative Marketing Strategies The City and NRHA require all applicants to certify that they will comply with all local, state and federal affirmative marketing requirements. It is required to adopt affirmative marketing procedures and requirements for rental and homebuyer projects. The Housing Plan strategy must meet the applicable Fair Housing and ADA accessibility requirements, including affirmative marketing, providing meaningful access to programs for persons with limited English proficiency, meeting applicable accessibility standards, and ensuring that program activities comply with applicable civil rights requirements. B. Labor Standards Contracts for the construction (rehabilitation or new construction) may be subject to the Davis Bacon Act, to all laborers and mechanics employed in the development of any part of the housing. C. Civil Rights Compliance The Developer agrees to comply with Titles VI and VII of the Civil Rights Act of 1964 as amended, and Title VIII of the Civil Rights Act of 1968 as amended; Section 104 (B) and Section 109 of Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive Order as amended by Executive Orders 11375, 11478, and D. Minority and Women-Owned Enterprises The Developer will use its best efforts to afford minority and women-owned business enterprises the maximum practicable opportunity to participate in the performance of the activities covered by this Contract. As used in this Contract, the term minority and women- owned business enterprise means a business at least fifty-one (51) percent owned and controlled by minority 10

11 group members or women. For the purpose of this definition, minority group members are African Americans, Spanish-speaking, Spanish surnamed or Spanish- heritage Americans, Asian Americans and American Indians. E. Employment Restrictions/Prohibited Activity Where employees of the Developer are engaged in activities not covered under the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous or dangerous to the participant s health or safety. The Developer is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities, sectarian, or religious activities, lobbying, political patronage, and nepotism activities. No employee, officer or agent of the City of Norfolk, NRHA, or the Developer shall participate directly or indirectly in the award of any contract if a conflict, real or apparent, would be involved. F. OSHA The Developer agrees to comply with any federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794) which prohibits discrimination against the handicapped in any federally assisted program. G. Section 504 The Developer must ensure that no otherwise qualified individual with a disability, as defined in section 7(20) shall, solely by reason of her or his disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance or under any program or activity under this program. H. Equal Employment Opportunity In all hiring or employment made possible by or resulting from this contract there (1) will not be any discrimination against any employee or applicant for employment because of race, color, religion, sex, national origin, handicap, age or veteran status; and (2) where applicable, affirmative action will be taken to ensure that Contractor's employees are treated fairly during employment without regard to race, color, religion, sex, national origin, handicap, age, or veteran status. I. Relocation The City and NRHA will be responsible for the relocation of the residents, supported through a newly-established People First program, and the demolition of the public housing units following relocation. J. Indemnification The City and NRHA, its officers, agents, and employees will be held harmless from liability from any claims, damages, and actions of any nature due to actions of Developers, provided that such liability is not attributable to negligence of the City or NRHA. K. Warranty Developer warrants that any service provided to the City and NRHA as a result of this RFP complies with all specifications and other terms and conditions set forth herein, and further 11

12 warrants and guarantees that said services will be performed in accordance with the defined standard of performance and other terms and conditions as herein specified, in addition to any and all remedies provided and further warrants and guarantees. L. Licenses, Permits, and Compliance During the term of the contract, the Developer will be responsible for obtaining and maintaining in good standing, all licenses (including professional licenses, if any), permits, inspections, and related fees for each. It will be the Developer s responsibility to comply with all codes, rules, ordinances, regulations, tariffs, and industry standards. M. Environmental The Developer shall determine the level of clearance required for all projects associated with CNI in accordance with 24 CFR Part 50 and 58. The Developer shall also conduct the environmental reviews and clearances for all program activities in conjunction with all eligible properties. N. Insurance During the term of the contract, evidence of all appropriate and applicable insurance coverage carried by the firm, including policy coverage periods will be required. Offerors shall furnish the City and NRHA with certificates of insurance showing that the following insurance is in force and will insure all operations under this RFP. Such insurance, at a minimum, must include the following coverages and limits of liability. (i). Commercial General Liability Insurance in an amount not less than a combined single limit of $1,000,000 per occurrence. This policy should be endorsed to name the City and NRHA as additional insureds. It is the intent of the City and NRHA that the policy coverage should not be limited by an annual aggregate limitation. If this policy is to be limited by an aggregate annual limitation, the aggregate limitation shall not be less than $2 Million otherwise the Coordinator must provide a $1,000,000 per project aggregate applicable for the project specified in this contract. (ii). Comprehensive Auto Liability Insurance, in an amount not less than $100,000 per person or $300,000 each occurrence or a combined single limit of $300,000 per occurrence. This policy should be endorsed to name the City and NRHA as additional insureds. (iii). Workers' compensation in accordance with the Commonwealth of Virginia rules and regulations. O. Requirements for Contractors secured under this RFP: (i). All contractors and subs must be licensed to do business in the Commonwealth of Virginia. (ii). Bonds are required and must be obtained from guarantee or surety companies acceptable to the U.S. Government and authorized to do business in the Commonwealth of Virginia. Individual sureties will not be considered. 12

13 (iii). The Developer must give a brief description of any lawsuits or criminal proceedings or criminal investigations involving the firm or any professionals in the firm who may be involved in providing the services. VIII. COMMUNITY ENGAGEMENT AND SERVICES The residents of Tidewater Gardens, Young Terrace and Calvert Square are crucial long-term partners in the St. Paul s area redevelopment planning and implementation process. The St. Paul s Advisory Committee, chaired by Council Members Riddick and Williams-Graves, is helping with outreach beyond the public housing communities. The planning to date and all additional planning prior to submittal of the CNI application has been and needs to continue to be resident-driven with all strategies based on the stated needs of the affected residents. The Developer must continue to engage the residents throughout the implementation process, including public and /or assisted housing residents and community and faith-based organizations, government, civic organizations and businesses. Any training sessions and meetings must be held in facilities that are physically accessible to persons with disabilities. Every effort must be made to ensure access to programs to persons with limited English proficiency. All notices and communications must be provided in a manner that is effective for persons with hearing, visual, and other related disabilities or provide reasonable accommodations. IX. ROLE AND RESPONSIBILITES OF THE CITY OF NORFOLK AND NRHA A. The Lead Applicant is the Entity primarily responsible for implementing the activities identified in the Transformation Plan. B. The Lead Applicant will sign any agreements on behalf of all Implementation Entities. C. The Lead Applicant will have ultimate responsibility for the expenditure of grant funds and oversight responsibility to assure the project is completed in accordance with all applicable laws, rules, and regulations. D. The Lead Applicant will ensure that all reports and activities are completed in accordance with regulations, guidelines, approved plans, schedules, and budgets. E. The Lead Applicant will review and approve all required documents and communications set forth in the development plans. F. The Lead Applicant will approve all plans and specifications. G. To support this initiative, the City and NRHA own, or have secured numerous tracts of land in the target area. The City and NRHA will convey sites under their control to the Developer, at negotiated terms. H. The Lead Applicant will also offer predevelopment loan funds and negotiate capital infusion funds upon successful receipt of the CNI Transformation Grant. X. ROLE AND RESPONSIBILITES OF THE DEVELOPER A. The Developer will serve as the Lead Housing Implementation Entity for the implementation of the Transformation Plan. B. The Developer, once selected, will join with the City and NRHA in the development of a conceptual master plan for submittal as part of the CNI implementation grant application. C. The Developer will prepare competitive LIHTC, Choice Neighborhoods or other application packages for submission to Virginia Housing Development Administration, 13

14 AHP, HUD and other funding sources. This includes being responsible for securing funding commitments to leverage with anticipated Choice Neighborhoods funds. D. The Developer will establish project budgets, prepare innovative/creative financing packages, and develop other financing applications. Secure private debt and equity financing and finalize terms of all public and private funding. Identify a guarantor or act as a guarantor to other business participants that may have cash flow shortages or be subject to the recapture of tax credits. E. The Developer will prepare architectural plans, obtain and make provisions for all approvals and permits; also, take the lead in obtaining all zoning and land use approvals. Local architectural and design elements and amenities should be incorporated into new or rehabilitated properties so that the developed sites and structures will blend into the broader community and appeal to the market segments for which they are intended. Housing, community facilities, and economic development space must be well integrated. Oversee design, construction and quality control of the development. F. The Developer will solicit development proposals, as needed, from private for-profit and non-profit developers for designated properties in the Transformation Plan, if applicable. Analyze various development proposals for feasibility. G. Develop a master schedule with milestones, including a construction phasing schedule and implementation schedule for all sites in their entirety, including identification of other specific sites suitable for development. H. The Developer will be responsible for management of all rental developments and will have overall responsibility for development and sales of any homeownership units specified in the CNI plans. I. As the build-out progresses, the Developer will be responsible for certain areas of land development, which will include demolition, land acquisition, subdivision and zoning approvals as needed, construction of public infrastructure, etc. The Developer must coordinate all site and infrastructure improvements. J. The Developer will be responsible for ensuring resident and community participation in all facets of the planning and development process. K. The Developer will be responsible for identifying and potentially implementing economic development opportunities, including coordinating the development of any nonresidential/community facilities, either already part of the Developer s overall team, or subsequently identified. L. The Developer will ensure training and employment opportunities to Section 3 individuals and participation by M/WBE and Section 3 firms throughout the development. ANTICIPATED SCHEDULE FOR PROCUREMENT (Subject to Change) RFP Available Deadline for Questions Q&A Issued RFP Responses Due Notification of Short Listed Firms 23-May June June June June-18 14

15 Interviews/Presentations July 9 July 13 Recommendation to Board(s) Board Meeting(s) Selection of Top-Ranked Firm XI. INITIAL AND SUBSEQUENT SUBMISSION REQUIREMENTS Each team must submit the following information relative to its composition, qualifications, and experience in the order listed. Each response must be paginated, tabbed and organized as listed below. Items A through G below are to be submitted as the Initial Submittal Respondent Qualifications. After the selection of Short-listed Firms, and the onsite tour and meetings, the Short-listed Firms will be invited to submit Item H. A. Letter of Interest and Corporate Information 1. A statement of your interest in the CNI role and your understanding of proposed scope of services and commitment to a quality design in an urban context; 2. The identification of the primary contact person and principal authorized to sign documents on behalf of the agency; and, 3. Provide a detailed description of the organizational structure and staffing of the Developer, including an organizational chart. The team should be described in detail, including roles and responsibilities. Resumes of key personnel and principals must be included in the submission. B. Development Team Experience and Qualifications 1. Identification, address, telephone number and fax number of each development team member (e.g. Developer, general contractor, architect, engineer, consultant, property manager, attorney, accountant, etc.), including a professional profile for each; 2. A description of your team s professional competence and experience in the areas of planning for mixed-income housing, master planning and grant application preparation, market analysis, community needs identification, physical redesign, and architecture that is compatible with comprehensive redevelopment in an urban environment; and, 3. The Developer and other team members must have extensive, recent and successful experience in planning, implementing, and managing physical development, financing, leveraging, and partnership activities that are comparable in character, scale and complexity to the scope planned in the mixed-income development plan. C. Housing Implementation Experience 1. A detailed description of two (2) housing projects that are comparable in scope and complexity that you have completed that are comparable to this RFP, where you have served in a lead or co-lead role. Provide the names, addresses, and telephone numbers of contact persons for these clients. The City and NRHA reserve the right to request information from any source so named; and, 15

16 2. Demonstrate that you have effectively developed, newly constructed, rehabilitated, and/or acquired, as well as operated high-quality, affordable, and workforce mixed housing. Provide a list and contact information for at least seven (7) projects that you have completed, including the target population and unit counts. D. Financing and Leveraging Capacity 1. A description of how you have effectively secured and leveraged significant funding streams from public and private sources. Describe the Developer s experience in assembling financing packages for low-income housing, commercial, and mixed-income developments. The description of experience should include varied financing instruments including Low Income Housing Tax Credits, bond financing, first and second mortgage financing, etc. Developers should submit clear information regarding their experience with multiple variety of financing methods. Financial reporting should be submitted timely and user friendly in a comprehensible structure; and, 2. A submittal of the most recent audit is required in addition to a certified financial statement prepared by the auditing firm. The balance sheet should show assets, liabilities, net worth of the firm and should include information on all General Partners or principal shareholders. E. Management of the Development Process 1. A detailed description of how the Developer will organize and manage the entire development process. In addressing this process, the Developer should include information regarding the approach to resident involvement, and methods for achieving long-term sustainability of the developed property; 2. Experience in structuring economic development teams that are experienced in mixedincome development projects that create long-term financial stability; 3. Identification of the marketing agent and provide a statement of the marketing agent s previous experience in marketing urban mixed-income rental housing units. Also provide information and documentation regarding the agent s experience in marketing and selling affordable housing in an urban area. Examples of how previous marketing and outreach activities targeted persons of different races and ethnic groups, families with or without children, persons with disabilities and able-bodied person and the elderly; 4. A description of the Developer s experience in managing residential, commercial, and mixed-income construction projects in a timely manner and within budgetary constraints. Developers should submit clear information regarding the number of construction sites they have managed at one time and the size of each. The narrative should indicate what type of construction and management methods used; and the portion of the projects completed on time and within budget. For projects not completed on time or within budget, please indicate the reason(s) why; 5. A description of the law firm experience and the key personnel you expect to use in structuring and negotiating complex real estate matters. Identify any experience in handling LIHTC transactions; and, 6. A description of the Developer s knowledge and experience with state and local building codes, regulations, sources of funding, and financing for low-income, mixed-income, and commercial development. 16