HomeMy WebLinkAboutReg 2008-05-19 Item 6F - Motion - Authorization for Request for Proposals for Tukwila Village COUNCIL AGENDA SYNOPSIS
Initials ITEM NO.
0 P1 4% 1 AVIeeting Date 1 Prepared by Mayor's review 1 Council review
t� 0 1 05/12/08 1 DCS 1
I 05/19/08 1 DCS 1 c
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ITEM INFORMATION
CAS NUMBER: 08-058 I ORIGINAL AGENDA DX1 E. MAY 12, 2008
AGENDA ITEM TITLE Tukwila Village: Authorization to issue a Request for Proposals (RFP)
CATEGORY Discussion Motion Resolution Ordinance Bu Award Public Hearing Other
Mtg Date 05/12/08 Aitg Date 05/19/08 Mtg Date Mtg Date titg Date Altg Date Mtg Date
'SPONSOR Counezl Mayor Adm Svcs DCD Finance Fire Legal P&R Police PW
SPONSOR'S The City has selected three developers to respond to a Request for Proposals (RFP) to
SUMMARY develop Tukwila Village., City Administration seeks Council authorization to issue an RFP.
R1•: \'II•\C BY COW Mtg. CA &P Cmte F &S Cmte 1 1 Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DA'Z'E:
RECOMMENDATIONS:
SPONSOR /ADMIN. Authorize the Mayor to issue a Request for Proposals (RFP)
COMMITTEE
COST IMPACT /FUND SOURCE
EXPENDITURI3 REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
S S
Fund Source: N/A
Comments
MTG. DATE 1 RECORD OF COUNCIL ACTION
4/28/08 J Update to Council on the Request for Qualifications (RFQ) process.
5/12/08 1 Discussion on the Request for Proposals (RFP) process and issues; Forward to Regular Meeting
1 MTG. DATE 1 ATTACHMENTS
05/12/08 Informational memorandum dated 5/8/08
Example RFP (Federal Way)
05/19/08 Informational memorandum dated 5/14/08
Draft Tukwila Village RFP
k wg s y C o f Tukwila gg
Jim Ha erton Mayor
:1-
w fiti ,41 Office of the Mayor
N 1 4 01 i 6200 Southcenter Boulevard
Nik 0 Tukwila, WA 98188
7908 www ci.tulwila.wa.us
Date: May 14, 2008
To: Council
Copy: Mayor
City Administrator
Council Legislative Analyst n
4 ,1L---
From: Economic Development Administrato
Re: Tukwila Village RFP
Issue
The City is in the process of selecting a developer for Tukwila Village. The next step is to
issue a request for proposals (RFP). The Council has requested to approve the RFP before it
is issued.
Backiround
This item was discussed at the City Council meeting on 5/12/08. The staff memo for that
agenda item contains additional background information.
Discussion
It is not practical for the RFP to state all City policies and requirements for this development
because many policy issues will need to be addressed once a developer has been selected and
we are in negotiations. At this stage, however, it is helpful to indicate where we have
consensus around some policy issues to make it easier for comparing the three developer
proposals. Even if we have consensus now on certain policy issues, we can still change that at
a later time.
Based on the Council discussion on 5/12/08 and staff recommendations, the draft RFP
addresseses some policy questions in the following manner:
(1) Location of Plaza and Library: The RFP requires the library, outdoor plaza, police
neighborhood resource center, and a coffee shop to be located on the north parcels.
(2) Entitlements (zoning, units /acre, and height): The RFP indicates the City is willing to
consider changes in certain entitlements such as building height or allowable uses but
we are not willing to change certain other entitlements such as required open space.
(3) "Activating the Space The RFP requires the proposals to include an outdoor plaza
and stronely encourages some indoor public meeting/gathering space and states that
we are willing to consider a partnership with the developer in terms of leasing and
scheduling the space.
(4) Workforce Housing: The RFP strongly encourages the proposals, if they include a
residential component, to ensure a portion of the housing will be affordable to the
workforce earning a mixed range of incomes but not below 50% of the County's area
median income (AMI).
Next steps:
If the Council approves issuance an RFP, we could receive the developer proposals in mid
June with a community meeting in late June (tentatively June 25th or 26th) and Council
selection of one developer in July.
Recommendation
Authorize the City Adminstration to issue a request for proposals (RFP).
Attachment: Draft Tukwila Village RFP
TUKWILA VILLAGE
D
IL J
REQUEST FOR PROPOSAL
I. PURPOSE OF REQUEST.
On May 1, 2008, the City of Tukwila "City completed a Request for Qualifications
(RFQ) process and selected the following three developers as the most qualified to
develop Tukwila Village "Project Legacy Partners, Opus Northwest, and Tarragon.
The City now requests proposals from those three finalists "Proposers This Request
for Proposals (RFP) document outlines the requirements for the proposals.
II. SCOPE OF SERVICES
Finalists are requested to submit proposals to purchase and develop the Tukwila Village
property consistent with this RFP and the City's vision statement and details, attached as
Appendix A.
III. TIME SCHEDULE.
The City's intended schedule is below. This is a preliminary estimate and subject to
change.
Issue RFP 5/23/08
Deadline for Submittal of Letter of Intent 5/29/08
Deadline for Submitting Written Questions 6/16/08
Deadline for Submittal of Proposals 6/23/08
Presentation of Proposals to Community 6/25/08
Preliminary Selection of Firm 7/14/08
Notify Selected Firm 7/16/08
Execute Exclusive Right to Negotiate Agreement 7/31/08
Purchase Sale and Development Agreements Finalized 12/15/08
IV. INSTRUCTIONS TO PROPOSERS.
A. Questions regarding the Project or this RFP process must be directed via email to
the contact stated below. The City will respond to all questions via email to
representatives of all three finalist teams. The deadline for submitting questions
to the City shall be 6/16/08 at 5:OOpm, PST.
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B. All proposals should be sent to:
Derek Speck, Economic Development Administrator
City of Tukwila
6200 Southcenter Boulevard L J
Tukwila, WA 98188
206 433 -1832
dspeck @ci.tukwila.wa.us J
J
C All proposals must be received by 4:00 p.m. on 6/23/08. Fifteen (15) hard copies of
the proposal must be provided, together with one electronic copy on CD. No faxed
or telephone proposals will be accepted.
D. Proposals shall include a fully completed "Proposal Submittal Form" and "Statement
of Financial Capability" Form, attached hereto as Appendix C and Appendix D,
respectively.
E. All proposals must include the following infoiniation:
1. A concise narrative describing the development proposal for the site,
including:
a. Project vision with potential user /tenant profile,
b. Project components and phasing;
c. Description of the design concept for the project, addressing:
i. Overall project image statement
ii. Quality and character of the exterior and public realm
iii. Approximate gross building square footage by type
iv. Gross square feet of land area by land use type
v. Approximate building heights
vi. Approximate amount of surface parking
vii. Special amenities
d. Describe approach to project and operations management.
e. Whether you anticipate purchasing the approximately 1.1 acre property on
which the Foster Library is currently situated.
f. How you would ensure quality construction and materials
g. How you would ensure quality operations including an explanation of your
tenant selection process, typical CC &Rs, management incentives, past
experience, ownership structure, etc.
h. Your plans to use green, sustainable, or low impact development
principles.
i. How your approach will "activate the space" (see Appendix A).
j. Your plans to include artist, senior, or workforce housing.
k. Anticipate pre -sales or pre leasing requirements.
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2. Schematic plans (not to exceed 11" x 17 "format) should be submitted to
illustrate the development proposal, including site plans, principal elevations
and illustrative sketches. I 1
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3. Strategy for gaining community and area input ai Ld s i>✓1` o�f n
development, including identification of team men b r 3 a t i l te 'c le
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working relationship with community groups.
4. Completed development summary and financing data, including:
a. Development budget and pro forma. Provide a development budget for the
proposed development program including an explanation of methodology
for arriving at the estimates (e.g., feasibility study, standard construction
cost estimating, typical project revenues, etc
b. Provide a ten -year cash flow for the development showing sources and
uses. Sources should include earned revenues, grants, financing, equity,
proceeds from sale, etc. Uses should include expenses (land acquisition,
development and construction, operations, and financing costs) but not
depreciation or income taxes.
For the development budget, pro forma, and cash flow, please use the
electronic spreadsheet templates that will be provided by the City, or
facsimile that provides reasonably similar or greater detail. Be sure
to apply State and local sales taxes, where applicable.
5. Business Deal
Provide an estimated property acquisition price per square foot and describe
timing and other terms based on:
a. A "plain vanilla" package per the standard assumptions listed in
Appendix B "Business Deal Assumptions"
b. The "developer's package" per the developer's pie fcrrcci assumptions
and proposed business terms such as:
1. Public capital improvement projects
2. Changes in entitlements
3. Approval of tax exempt financing, low income tax credits, New
Markets Tax credits, and other government programs
4. Multi family property tax exemption
5. City participation as an equity partner
6. City and developer execute a ground lease instead of sale
7. City carries the land until commencement of construction
8. Developer pre -sales and pre- leasing requirements
9. Other
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Note: The business deal is non binding and not an offer to purchase. It is an
estimate that should be based on the development budget, pro forma, and cash
flow and will be used during the selection and ne�oti n-pNce s. L
6. Project Schedule. Provide a project schedule or tirieli a L
7. Estimated financial impact of the project to the City Te r \e y 1(1 od
showing land sale proceeds, real estate excise tax, const uctton rela ec. ax,
sales tax, property tax and other significant taxes or revenues. Note: This does
not need to include effects on other properties, jobs, and indirect economic
benefits.
8. Proposer Experience. For each equity partner, provide the following:
a. Proposer (development entity)
i. Full legal name
ii. Entity type (e.g., corporation, LLC, partnership, etc.)
iii. Formation date
iv. Principals, members and/or owners
v. Primary contact regarding submitted propos
b. Proposer. Identify and provide a brief resume of the qualifications for
key members of the Proposer, including:
i. Principals, members and/or owners of the development entity.
ii. Project manager
iii. Financial partners
iv. Other
c. Ownership entity. If different from Proposer, i ndlicate whether existing
or proposed. Please include:
i. Type (e.g., corporation, LLC, partnership,
ii. Formation date or formation state
iii. If partnership, identify:
1. General partner,
2. Managing partner
d. Development experience
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List all related development projects in which the Proposer or
principal(s) has (have) been involved over the past three (3) years,
indicating for each:
1. Project summary descripti' ipc 411' 1 do
size, cost, etc.) J
2. Construction lender and at ac unt
3. Role of the Proposer /princ:prl's i h t
4. Role of the public develops -Hemp e i ,1 c. tble
5. Status of project (completed, in c )nstruc ion, e
6. References
ii. For the one project from the previous list that is the most similar in
type, size, scale or complexity to the develorment project being
proposed to the City, describe in detail the:
1. Role of public agencies, if any
2. Total development cost
3. Time between project milestones
a. Property acquisition
b. Construction financing obtained
c. Start of construction
d. Opening/first tenant
4. Marketing and sales perfoimance
a. Level of prelease /sales at opening
b. Length of time from opening until lease /sales
equaled 90% occupancy.
5. Contact references for:
a. Construction lencicr
b. General contractor
c. Sales /leasing broker
6. Role of current development entity and/or principal(s)
in the project.
7. Architectural quality and urban design characteristics.
8. Explanation of any regulatory or land use issues that
required resolution.
iii. List any current projects in the predevelopment, design or
construction phase that draw or would draw 1 pon the Proposers
financial and staffing capacity, including:
1. Project description and status (including location, size,
cost, etc.)
2. Construction lender and amount (if known)
3. Permanent financing (if known)
4. Role of the development entity in the project.
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V. SELECTION CRITERIA.
The developer will be selected by vote of the City Council. 1io- Celknciwill takere-
account a number of criteria including but not limited to J
1. Developer financial capacity
2. Developer ability and history of successfully coinplyt g 'rc ':cts o :h'
delivering projects on time and budget
3. Responsiveness of the proposal to the purpose and scope oft e ity %ision for
the project
4. Financial package including purchase price, financial impact to City, etc.
VI. TERMS AND CONDITIONS.
A. Proposers must submit a Letter of Intent, stating intention to submit a proposal
in response to this RFP, by 5:00 p.m., 5/29/08.
B. The City reserves the right to reject any and all proposals, and to waive minor
irregularities in any proposal.
C. The City reserves the right to request clarification of infoiination submitted, and to
request additional information from any proposer
D. Proposals are non binding and not offers to purchase the property.
E. The City reserves the right to reject any proposed agreement or contract that does not
conform to the terms contained in this RFP, and which is not approved by the City
Attorney's office.
F. The City reserves the right to award any contract to the next most qualified
developer, if Proposer and City are unable to execute an excl usive right to negotiate
agreement within sixty (60) days after the award of the proposal.
G. The City is willing to consider changes to certain entitlements such as maximum
building height or allowable uses but may not be willing to change certain other
entitlements such as minimum required open space. This willingness to consider
changes in entitlements is no guarantee of such.
H. The Proposer selected by the City shall enter into a Memorandum of Understanding
"MOU for an exclusive negotiation process. The Iv1OU shall describe the mutually
agreed -upon schedule and process for arriving at a Disposition and Development
Agreement "DDA The DDA shall serve as a purchase and sale agreement for the
subject property, as well as a development and design agreement for the development
project.
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I. Upon completion of successful negotiation, the City and the development team will
enter into a DDA, outlining in detail the terms and conditions of the real property
conveyance, as well as details of the proposed proje is '.n a ;e
design objectives, including architectural concept -0;', i e cp a1.t'- d
amenities, building materials, etc., may also be inclu lc d in 116-116-11) 6- 1 1
J. The City shall not be responsible for any costs incu _i d t 1e n rt. .arin 7,
submitting or presenting its response to the RFP. Proposers wt 1 no se compensate
for their submission. The proposals will not be returned to the Proposers. The
proposals, including design schematics and plans, remain the property of the
Proposers, however, the City retains the right to share and display non confidential
content for public discussion and marketing the project.
K. [Add section on confidentiality here]
VII. APPENDICES
Please see the following attached Appendices:
Appendix A Tukwila Village Vision Statement
Appendix B Business Deal Terms and Assumptions
Appendix C Proposal Submittal Form
Appendix D Statement of Financial Capability
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Tukwila Village Vision Statement
"Tukwila Village will be a welcoming place where all residents a3 g r d c o J
with each other. This mixed -use development will draw upon r't kv TiW s' 31 L d
include a library, a neighborhood police resource center, reta 1, rys i a I t., u i
meeting space, and an outdoor plaza. The Village may also irclu ci 1'rk,
and residential space. This active, vibrant place will set high standards for quality and
foster additional neighborhood revitalization and civic pride."
Approved by City Council September 17, 2007
Tukwila Village Vision Details
The City offers the following details that further refine the vis statement:
1. Proposals are required to include the library, outdoor }'laza, police neighborhood
resource center, and a coffee shop on the north parcels in an effort to focus the
center of the project and community gathering place
2. Proposals are required to include an outdoor plaza, the outdoor plaza may be
designed in a way to accommodate multiple uses such as parking.
3. The City strongly encourages proposals to "activate the space which means a
combination of physical design, types of commercial tenants and operating
practices that attracts people to the project for both organized events and casual
purposes.
4. Proposals are strongly encouraged to include some indoor meeting and /or
gathering space. The City is willing to consider a par with the developer
and tenants in terms of leasing and scheduling the mee: ing or gathering space.
5. If the proposals include a residential component, they re strongly encouraged
to:
a. Include some ownership housing
b. Design apartments to condominium quality standards and plat as
condominiums
c. Design and structure residential units to attract residents earning a mix of
incomes.
d. Ensure a portion of the units will be affordable to the workforce earning
50% or higher of King County's area median income (AMI).
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Business Deal Terms and Assumptions
The "plain vanilla" business deal should be based on the following terms a id as)u Tipp s A I IL J
J
(1) Property totals exactly 6 acres
(2) All land is sold fee simple and at the same time
(3) City will carry the land until 12/15/09
(4) Land sale price excludes taxes and transfer costs and broker fees
(5) $100,000 earnest money deposit on 7/1/08 with no interest accrual
(6) City will execute a 20 -year lease of 2,000 square feet for a police neighborhood resource center at
$24.00 per square foot full service with a $10 per square foot tenant improvement allowance.
(7) Library will execute a 20 -year lease of 10,000 square feet for a library at $24.00 per square foot
full service with a $10 per square foot tenant improvement allowance.
(8) No City provided multi family property tax exemption
(9) Developer pays all standard development fees, impact fees, and cff site infrastructure costs. City
does not waive fees.
(10) No changes to existing entitlements
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Proposal Submittal Form (Must be returned with propo
The owner or an officer of the firm must sign this document. A Corporate s r a le t'er Df ahl .Jr z n i.
needed for any other signer.
I have submitted this proposal on behalf of my firm this day of
2008.
Firm Name:
Address:
Authorized Signature:
Title:
Telephone Number: Fax Number:
Email Address:
Alternate Contact:
TO BE COMPLETED BY THE NOTARY:
State of
SS.
County of
rState and county where notarized must be written in for proposal to be considered.]
Signed and sworn to before me on this day of by
(Printed name of individual who signed above.)
My Commission Expires:
Signature of Notary Public
My Commission Number
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Confidential Statement of Financial Capability
IL J
A. Proposer /Development Entity Information
1. Official Company /Entity Name:
2. Mailing Address:
State /Zip:
3. If at this address less than 1 year, prior address:
4. Primary contact regarding this information:
5. Telephone Number:
B. Development Entity. The Development Entity named above is:
sole proprietorship Soc. Sec.
corporation —FID
nonprofit or charitable institution or corporation FID
partnership FID
business association or a joint venture FID
limited liability company FID
Federal, State, or local government or instrumentality thereof
Other explain:
D. Date and State of Organization. If the Proposer /Development Entity is not an
individual or a government agency or instrumentality:
1. Date of organization:
2. State of organization
E. Proposer /Development Entity Principals. Names of owners, officers, directors,
trustees, and principal representatives of the Proposer /Development Entity:
Name, Address, ZIP Description of of Ownership
code Interest /Reiationshiq Interest
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F. Proposer /Development Entity Affiliations. Is the Proposer /Development Entity
a subsidiary of, or affiliated with, any other corporation or o ns pc a Ler_
firm or firms? Yes No If Yes, provide the following it r o� ctify.
Corporation /Firm Relationship to Cominb V L\ Proposer/ Office. r
Development Entity I
Name
Address
Name
Address
Name
Address
I I I 1
G. Bankruptcy. Has the Proposer /Development Entity or the parent corporation (if
any), or any subsidiary or affiliated corporation of the Propose 'Development Entity or
said parent corporation, or any of the Proposer's /Develop 1 nt Entity's officers or
principal members, shareholders or investors filed for bankrLiptcy, either voluntary or
involuntary, within the past 10 years? Yes No If Ycs, provide the following
information:
I Name I Court I Date 1 Status 1
I 1 I I I
I I I I
H. Loan Defaults. Has the Proposer /Development Entity or 'he parent corporation (if
any), or any subsidiary or affiliated corporation of the Propos ]r'Dovelopment Entity or
said parent corporation, or any of the Proposer's /Devoiop r nt Entity's officers or
principal members, shareholders or investors defaulted on oan or other financial
obligation? Yes No If Yes, explain:
I. Litigation. Is the Proposer /Development Entity or the parent corporation (if any), or
any subsidiary or affiliated corporation of the Proposer /Development Entity or said
parent corporation, or any of the Proposer's /Development Entity's officers or
principal members, shareholders or investors party to any pending criminal or civil
litigation that could potentially impact the financial capa:Aity of the Development
Entity to complete the proposed development? Yes No
If Yes, provide the following information, and attach any additional information or
explanation deemed necessary:
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Date Filed 1 Court 1 Current Status
1 1
J. Financial Condition. Attach to this statement a three c- if dd in cial
statement showing the assets and the liabilities, includinVcdnt g: 'a ies, of
the Proposer /Development Entity fully itemized in acor'd h, rc th epte4
accounting standards. To be certified, the statement must contain an auditor's
opinion, or be compiled /prepared by a certified public accountant (CPA) or public
accountant (PA). If the date of this certified financial stP`_ement precedes the date of
this submission by more than six months, also attach an interim balance sheet not
more than 60 days old.
K. Conflict of Interest. Does the Proposer /Development Ent ity currently have or plan
to have as an officer, member, employee, shareholder, im'estor or financing partner
of the Entity any person who is currently an officer, agen`, o, employee of the City
of Federal Way? Yes No
1. If Yes, identify and explain:
2. If Yes, does anyone identified above (K -1) have direct ci indirect pecuniary
interest in the Proposer /Development Entity or in the ,!development or
rehabilitation of the property being proposed by the Prop' ser /Devdopment Entity to
the City? Yes No
3. If Yes, describe and explain:
L. Additional Information. Attach any additional evidence deemed helpful to
demonstrate the Proposer's /Development Entity's financia' capacity and capability to
complete the proposed development.
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CERTIFICATIO N
I1 certify under p alty erg u
laws of the State of Washington that I am authorized to a 't in o on
behalf of the Proposer /Development Entity and that the s_?t mt� a th's
Statement of Financial Capability are true and correct.
I further authorize the City of Federal Way, or any employer or c e� tJ ui behalf
of the City of Federal Way, to undertake any investigation deemed appropriate to verify
the information contained herein.
Printed Name Title
Signature Dpte
If the Proposer /Development Entity is an individual, this statement should be signed by such in vidual; if a partnership, by one of the
partners; if a corporation or other entity, by one of its chief officers having knowledge c: tl_ f Is {wired by th s statement.
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