An article in the Gazette describes the three proposals briefly. My representative in the City Council, Jimmy Tarlau, provided a detailed memo from the Council Liaisons for Development to his constituents, which I will paste below. I will try to make it look good. Please excuse any formatting issues.
The mayor and council will vote on the proposals after the hearing.
MEMORANDUM
TO: MAYOR AND COUNCIL & MOUNT
RAINIER RESIDENTS
FROM: Council
Liaisons for Development –
Ivy R.
Thompson, Ward 2
Brent C. Bolin, Ward 2
DATE: August 7, 2012
SUBJECT: Recommendation to Council for City Issued
RFP for Development of Rhode Island Avenue and Eastern Avenue
BACKGROUND
Council Liaisons for Development
After the 2011 elections,
committee assignments were revised and Ward 2 Councilmembers Ivy Thompson and Brent
Bolin were designated by colleagues to serve as the development committee of
the council. Mayor Miles and Councilmember Thompson previously served as the
leads for this committee.
Request for Proposals
The City Council voted to
reissue the Request for Proposals (RFP) and to hire the Holman Group to facilitate
the reissuance of the RFP for the development of the 3200 block of Rhode Island
Avenue. The criteria for submissions and the timelines for review were
established within the RFP, which required that the City respond to the
developers within a 45-day timeframe.
The City of Mount Rainier
received three (3) proposals in response to the RFP issued for the development
of the 3200 block of Rhode Island Avenue, Mount Rainier, Maryland 20712. All of the proposals were received (hand
delivered) prior to the 4:00pm deadline on May 30, 2012. The responders were as follows in order of
receipt:
·
STREETSENSE – BETHESDA, MARYLAND
·
DR. JAMAL FADUL MED-PED, LLC, COLLEGE PARK, MARYLAND
·
AHC, INC., BALTIMORE, MARYLAND
Per consultation with the
city’s development consultant, Mr. Kwasi Holman, on May 31, 2012, the following
schedule was proposed as a next step action schedule:
Ø May 31, 2012 – June 13, 2012, Proposals reviewed by council liaisons for development
Brent Bolin and Ivy Thompson, City Manager Jeannelle Wallace, Assistant City
Manager Michael Jackson and Development Consultant Kwasi Holman . Interview questions submitted for developers. . .
Ø June 14-15, 2012
– Council liaisons, staff and Mr.
Holman met with each responder on June 14, 2012 and June 15, 2012 (2 hour
interviews) allowing the responders to answer questions and clarify financing
options and scheduled payments to the city.
Ø June 18,
2012- Council liaisons, staff and Mr.
Holman met to discuss Assessment based on criteria provided in RFP announcement.
Ø June 19,
2012 – Special Executive Session of
the Mayor and Council to discuss/review recommendations of the council liaisons
for development. Liaisons make recommendation to council in closed executive
session. Council authorizes development liaisons to conduct further
conversations.
Ø July 10,
2012 – Special Executive Session of
the Mayor and Council to discuss short list recommendations of the council
liaisons for development; Additional financial info requested of all three
developers. Council decides to extend the deadline for the city to respond to
developers concerning proposal submission to August 15, 2012.
Ø August 8,
2012 – Public Hearing concerning
proposal submissions; council liaisons make recommendation to Mayor and Council
and residents for development; summary of proposals provided by council
liaisons for development.
Ø August 9,
2012 – Special Meeting of the Mayor
and Council concerning the RFP submissions for Rhode Island Avenue development.
Ø August 15,
2012 – Notify respondents of City
Council decision.
This process delineated was
an aggressive time frame due to the MML Conference scheduled June 24-27, 2012.
The Mayor and Council added an additional 30 days, after the July 10, 2012,
Executive Session Meeting, due to the complexity of the financing of the City
property. (The city purchased these properties with tax-exempt municipal bonds,
significantly complicating potential financing options. The city subsequently asked
each developer to consider purchasing the land up front to avoid legal
technicalities.)
EVALUATION:
The three proposals were reviewed
by council liaisons for development Ivy R. Thompson and Brent C. Bolin, City
Manager Jeannelle Wallace, Assistant City Manager Michael Jackson, and
Development Consultant Kwasi Holman and scored based upon the evaluation
criteria as cited in the RFP. The
proposals were evaluated using the following criteria:
v 40% Design: Strength of the Site Plan and Design based
on aesthetic appeal, perceived ability to promote additional quality
development
v 40% Ability to
Implement Project: This element of
consideration evaluates the developer’s ability to complete the project as
promised. It includes:
o
Strength
of the letter from a financial institution indicating willingness to finance
project
o
Proof
of equity by the developer.
o
Experience
of the developer in financing, implementing and constructing projects of
similar size and scope.
o
Marketing
plan
v 10% Land Price
v 10% Use of Sustainable
and/or Environmentally Responsible (Green) Construction Standards and Products
v Inclusion of Minority, Women and/or Local owned Businesses will be a
consideration in the evaluation process but it is not a requirement
Evaluation Criteria | Streetsense | Med-Ped | AHC |
Design | Contemporary look. Incorporates property not owned by city. No retail tenant commitments, Structured parking was a plus, though primarily dedicated to residential. | Has that medical office building look. Green elements are a plus. Major additional parking need a serious concern. Will project have spillover effects? | Design is central to their process. Strong plan to seek community input. Universal design concept. Strong LEED commitment. All parking on site, though variance needed. |
Ability to Implement | Good
financials, experienced team. Hyattsville retail project experience. Requested $7 million gap financing. |
Strong
financials, experienced team No previous projects completed. |
Very
strong financials, experienced team Dozens of similar projects financed and completed. |
Land Price | Proposed city donate land. | Offered $500,000 up front, the rest paid over time including from proposed EDI funds. | Offered 10% of the land value up front, the rest paid over time by AHC. |
Sustainability/Green | Yes at least LEED Silver | Yes, LEED Silver or Gold | Yes, LEED Gold or ideally Platinum |
Inclusion | Yes | Yes | Yes |
Each of the proposals referenced the Mixed Use Town Center Plan and included elements highlighting the site as a “gateway”.
RECOMMENDATION
Therefore, based upon the
evaluation criteria and additional financial information obtained from each of
the organizations the Development Committee recommends that the City Council
vote to contract with AHC, Inc. to purchase and develop the 3200 Block of Rhode
Island Avenue.
Proposal Highlights In Order Of Receipt:
STREETSENSE – BETHESDA, MARYLAND
Proposes a 5-story mixed-use
urban infill development. Ground floor retail space – proposes retail, restaurants, small café. Above the ground
level retail would be four levels of loft style residential apartments. This
project incorporates the entire block in development, including properties not
owned by the city and therefore outside the scope of the RFP.The proposal did
not include letters of commitment from adjoining property owners. The architecture will have a contemporary
styling that is reflective of the loft industrial look. The historic gas
station would be repurposed for a small neighborhood retail use.
210 Residential Units; market
rate rents:
21 efficiencies, 700 sf, $1300/month
105 1-bedroom, 850 sf, $1513/month
84 2-bedroom, 1000 sf, 1825/month
Parking: structured 2-3
levels, 210 spaces residential- fee based, limited retail and visitor parking
Retail: 18,225 s. f.
Open space: interior pocket
park and interior courtyard, public sidewalks
Green Elements/Sustainability:
green roofs, dark-sky lighting, recycled materials
Public Art: interior and
exterior public art
Target market: 20’s -30’s
with incomes of $50,000 - $100,000
Comments: Weak financial proposal to the city – asked for city
to donate the land, includes payment to L.S. adjacent property owner, and also
identified the need for $7 million of gap financing. The revised financial
offer indicates Street Sense is “prepared to retire the debt in full upon
closing on the property” A proposed date for closing was not given, but per the
proposal the estimate for closing to occur is in 2015. The proposal
contemplates developing the entire 3200 block, including land not owned by the
city and therefore outside the scope of the RFP. Street Sense indicated that
they have had discussions with the owner of Thrifty Truck Rental, but did not
supply a letter of commitment. Proposal also contemplates purchase and
demolition of owner occupied homes on Eastern Ave, again, without letters of commitment
or contact with the current property owners.
DR. JAMAL FADUL, MED-PED, LLC, COLLEGE PARK, MARYLAND
Proposes a four story, steel
frame, 44,000 s.f. Health Care Center, retail pharmacy and restaurant, office
and a 24 hour Urgent Care facility. Each floor will be about 11,000 s.f.. The
development proposal stayed within the scope of the RFP and included city owned
property only. The first level will be dedicated to retail uses with the second
and third floors comprising the medical center and the fourth floor dedicated
to general or doctor’s offices. The Proposed Health Center:
Specialty
Medical – 12,000
General storage & technology –
1,000
Multi-purpose
Office & other – 4,000
Urgent
Care – 4,000 s.f.
Retail
& Office – 23, 000 s.f.
Parking: 50 spaces on site,
will need to work with City to address significant additional parking need
Green
elements/Sustainability: LEED certified, solar generator and panels, rainwater
cistern
Public Arts: incorporates
artistic elements into design
Target Market: Services for
patients within 1- 5(average 3) mile radius and households with incomes of
$50,000 -$67,000
Comments: Offered $500,000 down payment to the city, with the
rest of the land price to be repaid over time or as county funds developed. Due
to the tax-exempt bond issue this proposal would not work. Med-Ped has requested
the city’s help to find several hundred additional parking spaces to meet their
customer volume; the city has serious doubts about its ability to find those
spaces and/or prevent negative effects on residential parking on the city.
AHC, INC., BALTIMORE, MARYLAND
Proposes a four story,
L-shaped building approximately 58,000 sf, residential development. The
proposal is limited to the RFP City owned property. The development proposes 62
residential units that are accessible or readily adaptable. 10 units are to be
fully equipped for use by the physically disables and 2 units will be equipped
for sight and hearing disabled residents. Offers traditional and opens space
floor plans, workforce housing:
42
1-bedroom, 672 sf, $1008/month
20 2-bedroom, 962 sf, 1210/month
Parking provided
(residential): 46 spaces, L-shaped parking loop in rear
Retail/Office: TBD – none
proposed
Green
Elements/Sustainability: LEED requirements, materials, construction and quality
requirements, green roof
Landscaping of public spaces,
incorporates green amenity roof, interior and exterior art, community spaces on
each floor
Target market: workforce
households with incomes $38,000-64,500 for 1-4 person households
Comments: Initial financial offer was for 10% down payment on
land with the rest paid back in installments over the 15-year life of the tax
credit financing arrangement. When presented with the tax-exempt bond issue and
the city’s need to divest the properties, AHC worked to meet the city’s needs .
AHC now proposes to pay 10% down in fall 2012 and complete purchase of the
properties by March 2013 for the full value of the city’s bonds. Other concerns
include making sure the marketing plan distinguishes this workforce housing
from the significant number of low-income housing units already existing in
Mount Rainier. AHC proposes to contain all parking on site, but will require a
parking reduction departure from the county.