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Q7-Howard_UniversityOffering.pdf
Solicitation No. RFQ HU-BB-01
RFQ Issue Date: 9/29/2017
Due Date: 11/21/2017
REQUEST FOR QUALIFICATIONS
BOND BREAD FACTORY &
WRECO GARAGE REDEVELOPMENT
Letter from the President Page 4
Background Page 5
Opportunity Page 6
Site Description Page 8
DC Market Page 13
Submission Requirements Page 17
Selection Process Page 22
Schedule Page 23
Terms & Conditions Page 24
Appendices Page 26
Table of Contents
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Letter from the President
Dr. Wayne A. I. Frederick
Dear Potential Development Partners, I am excited to offer the most transformative redevelopment opportunity in the Shaw neighborhood, Howard University’s Bond Bread Factory and Washington Railway and Electric Company (WRECO) Garage site for redevelopment. These parcels represent the latest strategic monetization of Howard’s underutilized real estate portfolio to support reinvestment in the University’s mission. The rebirth of these historic structures also presents a unique opportunity to create a vibrant mixed-use development in the center of the District’s booming Shaw neighborhood. In 2017, Howard University celebrated its sesquicentennial as a higher education institution. Through both academic and facility enhancements, Howard is undergoing a transformation as it prepares for its next 150 years of distinction. Howard’s dedication to revitalizing its academic and physical structures requires substantial, sustainable resources. Meeting this challenge requires developing and utilizing innovative and non-traditional solutions, including imaginative repositioning and leveraging of Howard’s underutilized real estate assets. I have spearheaded a strategy to diversify and improve University revenue streams, in part by leveraging Howard’s large portfolio of real estate assets. I envision the Bond Bread and WRECO site resulting in an innovative transaction that will deliver capital needed to fund other campus modernization initiatives, while transforming the neighborhood. The Bond Bread and WRECO site has long been envisioned as playing a key role in the future of the Mid- City community. Howard is dedicated to revitalizing the Georgia Avenue corridor, as demonstrated by the recently constructed Interdisciplinary Research Building as well as planned projects to its north and south. The Bond Bread and WRECO project will serve as the gateway to Howard’s campus, and I envision it offering a new, mixed-use, urban lifestyle destination in the Shaw neighborhood, which will attract visitors from around the region and a variety of businesses. The site’s prime location on the rapidly growing Georgia Avenue corridor allows this project to serve as a center of activity, serving faculty, staff, students, and neighbors alike through the addition of commercial space as well as quality residential development. Howard has established an outstanding real estate development team supported by the industry's top advisors to realize this vision. I join our Real Estate Development & Capital Asset Management team, led by Mr. Anthony Freeman and Mr. Derrek Niec-Wiliams, in inviting your firm to submit your qualifications and proposed plans to develop this site. The University looks forward to your creativity, innovative design, and strategic development and marketing to transform this site. Dr. Wayne A. I. Frederick President
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Founded in 1867, Howard University is a private, historically
black research university comprised of 13 schools and colleges.
Students pursue studies in more than 120 areas leading to
undergraduate, graduate and professional degrees. To date,
Howard has awarded more than 120,000 degrees in the arts,
the sciences, and the humanities. The historic main campus
sits on a hilltop in Northwest Washington, blocks from U Street
and the storied Howard Theatre.
The University remains committed to further enhancing its
strategic position as one of the top research universities in the
nation. As we celebrate our sesquicentennial in 2017, we are
uniquely positioned to have the next 150 years as glorious as
the past.
To accommodate this growth, transform the University’s
aging facilities, and remain competitive with high-caliber
universities nationally, the University crafted a participatory
and collaborative Campus Master Plan, published in 2011. To
help fund the execution of this vision, the University is
seeking to generate revenue by monetizing underutilized
edge and non-core real estate assets owned by the University
— facilities geographically or philosophically peripheral to the
institution’s mission.
Background
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Opportunity Howard University (“the University” or “Howard”) is pleased to present this Request for Qualifications (“RFQ”) to solicit Statements of
Qualification (“SOQs”) from highly-qualified developers (“Respondents”)
to design, build, finance, operate, and maintain a mixed use
development at 2112-2146 Georgia Avenue, N.W., in the heart of the
booming Shaw neighborhood (“Project”).
This premier development offering includes a uniquely large, 2.2 acre
site (“Bond Bread Site” or “Site”) to serve as a gateway between the
vibrant U Street Corridor and Howard University. Situated adjacent to
Shaw’s latest major mixed-use developments, the Site offers an
opportunity to build on the neighborhood’s revitalization momentum.
Also located at the edge of Howard’s campus, this development will
greatly improve the vitality and visual quality of the area while
supporting expanded campus amenities.
The Site was previously envisioned as the Howard Town Center, a
grocery store-anchored mixed-use development. The University recently
prevailed in a legal dispute over the project, freeing the valuable sites
for a new, innovative redevelopment vision.*
The Site contains two existing structures, both of which are listed on the
National Register of Historic Places, offering intricately designed brick
industrial buildings, which are often coveted for their character. Howard
envisions a creative ground floor destination that will leverage and
honor the historic facades of each building.
The University intends to identify and select the most qualified
Respondent to this RFQ, who demonstrates experience and expertise in
adaptive reuse; historic preservation; partnerships with institutions; and
residential and commercial development. With this partner, Howard will
negotiate an exclusive rights agreement, work collaboratively through
due diligence and the development planning process, and sign a
ground lease or similar agreement that maximizes value to the
University.
* For more information about the legal status of the Site, please visit
BondBread.datarooms.com.
BROOKLAND
NOMA
CAPITOL
RIVERFRONT
DUPONT
SHAW / U STREET
Bond Bread Site
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Redevelopment Objectives Howard University will serve as the Project sponsor and will select a
development partner (“Selected Developer”) to design, construct,
and operate a newly constructed project that preserves and
adaptively reuses relevant portions of the existing structures.
Howard seeks a development which contributes to the economic and
social well-being of the University as well as the surrounding
community. Howard hopes to achieve the highest and best use for
the Site, but also envisions an energetic, vibrant attraction as a
ground floor use, that creates a 24-hour work, shop, eat, live, play
destination. Examples of such spaces include Reading Terminal
Market in Philadelphia, Foodhallen Food Market in Amsterdam West,
East Village in Houston, and Fulton Market in Chicago.
Preserve and adaptively reuse historic features
Adopt world class design that extends the edge of HU campus
Mitigate environmental challenges at the Site
Revitalize the Georgia Avenue Corridor and economy
Project
Develop to its highest & best use
Create an innovative trendsetting ground floor destination
Optimize local, minority and HU Alum participation
throughout the process – specifically through equity
ownership and contracting
Employ design that accentuates HU’s brand and statement
Revitalization
Incorporate neighborhood / HU servicing retail businesses
Create jobs opportunities
Adhere to the Duke Land Area Development Framework*
Involve community in planning process
Create innovative solutions to address price-sensitive residents
Value
Obtain maximum land value distributed upfront and through
long term revenue streams
Minimize risk to the University
Retain long-term ownership of parcels
Include the option for Howard University as a partial investor/
financier for the development
Community Attributes
*“Duke: Development Framework for a Cultural Destination for Greater Shaw/U Street” (the “Duke Plan”) can be found in Dataroom.
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Site Description
The Bond Bread Site is located adjacent to Howard
University’s main campus in the heart of DC. Situated on two
parcels, these properties represent the entire block between
8th Street and Georgia Avenue, and V Street and W Street.
The Site is surrounded by several newly completed, under
development, and planned projects that are complementary
to the proposed Project as illustrated in the figure on the next
page. Nearby developments have added over 600 residential
units, with more than 400 under construction, each
commanding some of the highest rents in the District.
In additional to surrounding commercial developments,
numerous University buildings are situated on Georgia
Avenue, including: the Interdisciplinary Research Building,
Howard Center, and Howard University Hospital, generating
significant foot traffic.
Location
Neighborhood Located in Mid-City neighborhood, in close proximity to many
other neighborhoods in the District, the Site is accessible to
shopping and dining options, adjacent to the U Street corridor,
and walking distance to several entertainment venues,
including the historic Howard Theatre and the iconic 9:30
Club. The Site sits at the nexus of multiple communities
including Shaw, Pleasant Plains, and LeDroit Park. For a
detailed description of the surrounding neighborhoods, please
refer to the Washington DC Economic Partnership
Neighborhood Profiles in this Project’s Dataroom.
Bond Bread also benefits from being in Ward 1, the most
densely-populated area in the District. Limited large scale
development parcels in Ward 1 and the Shaw neighborhood
make the Bond Bread Site a rare opportunity for a truly unique
redevelopment in a highly-sought neighborhood.
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U Street Metro
Carver Hall Redevelopment
Slowe Hall Redevelopment
Multi-family New/ Planned Developments : Mixed Use Student Housing
Sherman Avenue Apartments
Plaza Towers Renovation
965 Florida
Florida Avenue NW
9 th
S t N
W
Atlantic Plubming
The Shay
13 / U
Planned by HU
Lot 3
Bond Bread
Howard Center
G e
o rg
ia A
ve n
u e
N W
CVS/ HURB-1
Barry Place Phase 2
Effingham
Manor
4 th
S t N
W
1 3
th St N
W
0 .8
M ile
1.2 Miles Shaw Metro
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The General Baking Company Bakery
(Bond Bread Factory) building is a
three story Art Deco Industrial Bakery
designed by Corry B. Comstock which
features Art Deco styling and
decorative details rare for DC’s
industrial building stock.
The Bond Bread Factory building is
built on 39,072 square feet (0.9
acres) at the corner of Georgia Avenue
and W Street directly across from
Howard University Hospital.
The WRECO garage, designed by
noted architect and Washingtonian
Arthur B. Heaton, is considered to
be the first purpose-built bus
garage.
The WRECO garage is built on
58,607 square feet (1.3 acres) at the
corner of Georgia Avenue and V
street, directly adjacent to the new
Atlantic Plumbing development.
Existing Structures The Site is home to two (2) existing structures:
The 1929 Art Deco Bond Bread Factory (2146
Georgia Ave)
The 1930 Washington Railway and Electric
Company (WRECO) Garage (2112 Georgia
Ave)
Historic Designation Both buildings have been entered into the National
Register for Historic Places at the request of the D.C.
Preservation League. The Bond Bread Factory is
recognized for its significance to the Art Deco
architectural movement and its connection to DC’s
early baking community. The WRECO Garage is
recognized on the basis of its significance in relation
to early railcar transit in Washington DC, and its
architectural significance as the first known purpose
built garage for WRECO’s fleet of buses.
The National Historic Preservation Act of 1966
requires proposed construction plans for buildings
designated as historic to be reviewed and approved
by the Historic Preservation Review Board (HPRB).
The Selected Developer alone will be responsible for
meeting all historic preservation requirements under
Federal and District Laws and Regulations.
Entitlement The Site is currently in Howard’s Campus Master Plan. Parcel 1, shown on Page 8, was conveyed to Howard through a land swap with the
District of Columbia in 2008, establishing a number of covenants, several of which are worth noting: 1) Development Covenants—development
on the parcel must be consistent with the DUKE Plan. The design and development plans are required to be approved by the District to ensure
conformity to the Plan; 2) Grocery Store Covenant—the Covenant currently requires the development on the Site to include a grocery store, but
this may be modified once the planned development of Whole Foods at 965 Florida Avenue is complete; and 3) CBE and First Source
Agreement—20% of the equity and development participation of the Selected Developer must be comprised of CBEs, and the Selected
Developer must enter into a First Source Employment Agreement with the District of Columbia for the construction.
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Original Uses & Environmental Challenges
Six Underground Storage Tanks (UST) were known to exist beneath the two buildings, four of which were removed. The remaining USTs were closed in place and remain unmitigated. The University submitted a corrective action plan to the District Department of Energy and Environment, which was approved after review and comment, but not fully implemented. Full reports can be found in Dataroom.
The Site will be conveyed to the Selected Developer in an “as is, conveyed” condition. During the due diligence period set forth in the anticipated Exclusive Rights Agreement, the Selected Developer will be required to conduct environmental site assessments, including, but not limited to, sampling and testing of the soil, sediments and ground water (if any).
The Selected Developer will be responsible for the removal or remediation of any hazardous materials that are required by law.
Additionally, the Selected Developer will be responsible for securing all necessary approvals, with support, as appropriate, from University staff. If the University is required to serve in the lead role in processing any additional environmental regulatory compliance, the Selected Developer shall reimburse the University for costs associated with such compliance.
Both the Bond Bread Bakery and the WRECO Garage served in-
dustrial purposes over the course of 50+ years beginning around
1930.
The WRECO Central Garage was build to house and maintain a
bus and streetcar fleet for the Washington Railway and Electric
Company, and continued in that use under the Capital Transit
Company and later DC Transit Company until 1949. From 1958
until 1970 the WRECO Bus Garage building was used as a vehicle
maintenance facility and fueling station for the United States
Post Office. The Facility was later used to house Howard’s
Maintenance Facility.
The Bond Bread Factory operated as a commercial bakery under
several owners from 1929 until 1971, and was later used by the
District of Columbia and non-profit groups to offer services to the
impoverished until 2001.
The original uses of each property may pose challenges to the development and adaptive re-use of this Site.
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The Bond Bread Site is conveniently located and has a variety of
transit and nearby public transportation options. Both the Shaw-
Howard Univ. Metro Station and U Street/African-Amer. Civil War
Memorial/Cardozo Metro Station are located less than half a mile
south and west of the Site, respectively. Both of these metro stops
are serviced by the Green and Yellow lines. Four bus lines (G2, 63,
70, 79) offer stops located less than 0.3 miles away.
The Site is fortunate to front Georgia Avenue NW, one of Ward 1’s
major thoroughfares. Market Planning Solutions, Inc. estimated in
2015 an average daily traffic count at the intersection of Georgia
Avenue NW and W Street NW of approximately 20,130 cars.
The Site is easily accessible in one of the more walkable
neighborhoods in Washington D.C., receiving a Walk Score of 97
(Walker’s Paradise) and a Transit Score of 90 (Excellent Transit).
Transportation & Access
Zoning & Land Uses The Site is zoned MU-10 (Mixed Use), which permits a broad range of high density commercial, institutional, and multi-family residential development. The Site is currently included in Howard’s Campus Master Plan, and must proceed through further processing with the Office of Zoning prior to construction. Respondents are required to independently review verify, and comply with the underlying zoning requirements applicable to the Site.
Floor Area Ratio (FAR) - Maximum
Height (ft.) Penthouse Height (ft.)/
Stories Lot Occupancy Rear Yard (ft.) Side Yard (ft.) Green Area Ratio
Zoning Regula- tion Reference
MU-10
6.0 90 20 75%
A minimum rear
yard of 2.5 in. per 1
ft. of vertical dis-
tance from the
mean finished
grade at the middle
of the rear of the
structure to the
highest point of the
main roof or para-
pet wall, but not
less than 12 ft.
No side setback is
required; however,
if a side setback is
provided it shall be
at least 2 in. wide
from each 1 ft. of
height of building
but no less than 5
ft.
0.20 Subtitle D.
Chapter 3
7.2 (IZ) 100 (IZ) 1 plus mezza-
nine; Second
story permit-
ted for pent-
house me-
chanical
space
100% (IZ) 3.0 (Non-
residential) N/A
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DC Market With construction booming, the residential real estate market
remains a bright spot in DC. Growth in Class A property rental rates is
a promising sign of the overall market’s strength. The growth in
young professionals has been the primary driver behind the strong
demand for apartments in DC. Millennials are increasingly renting
apartments rather than owning homes.
As of Q4 2016, the Site’s submarket consists of 30,778 multifamily
units, with an occupancy rate of 96.7%, and an average effective
rent of $2,001 per month. While the submarket is the second-largest
multifamily submarket in the District, based on unit count, it also
performs the best, with a reported occupancy rate of 96.7%.
The table below identifies specific market data for the area
surrounding the Bond Bread Site.
The District of Columbia has experienced consistent growth in
construction of retail, residential, leisure, and hospitality uses
over the last five years, embodied primarily in mixed-use
developments. The District continues to appeal to and attract
prestigious global firms and international investors, while also
showcasing a thriving urban retail and restaurant scene. This
progress is likely to continue according to the current
development pipeline for the District. There are four primary
residential projects recently constructed or under construction
with proximity to the Project and valued well over $1B.
Development Growth
0-1/2mi 0-1mi 0-3mi
Population + Workforce
Total Population 17,473 81,639 388,152
2016 - 2021 Population Growth/Yr 1.76% 2.17% 1.94%
Employed Civilian Population 16+ 10,963 55,243 244,428
Unemployment Rate 5.8% 5.3% 5.5%
2010 Median Age 28.3 31.6 33.2
Education
Bachelor's Degree 3,695 18,432 79,893
Grad/Professional Degree 3,767 20,061 101,586
Income
Median Household Income $77,476 $81,731 $80,844
Median Disposable Income $55,924 $58,535 $58,641
With residential construction surging, it’s not surprising that
Washington D.C.’s retail market has performed extremely well
over the past few years. According to CoStar, demand has
outpaced supply, and the region’s average vacancy has declined
steadily since peaking in 2010. Furthermore, supply growth, as a
percentage of inventory, is about half of the region’s historical
average. Because of this, rents have risen approximately 5%
over the past four quarters. It is projected that because of the
region’s continued population growth and the immense buying
power of the District’s high-earning individuals, the overall retail
market should continue to remain stable.
With respect to the Bond Bread Site being developed for retail
use, the Site is situated in the Uptown Retail submarket. As of
Q4 2016, this submarket exhibited a vacancy rate of 4.4%,
which is consistent with the vacancy rate reported for the entire
Washington—NOVA—MD Retail Market of 4.5%. Additionally,
the Uptown Retail submarket is the third largest retail market
(out 78 submarkets) and ranks fifth in highest asking rental
rates.
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The Shay, located one block away from the
Bond Bread Site features a mix of high-end
dining and retail and luxury apartments. The
development features 245 residential units,
from Studio to Penthouse. The building’s retail
space has become a hub for fashion and
features an independent organic market and
local coffee chain.
The Shay
The Atlantic Plumbing Project, directly adjacent
to the Bond Bread Site is a Two Building, mixed
use development featuring Class A residential
homes, several casual and fine dining
restaurants, and a six screen movie theatre and
Bar.
The apartment development includes a resort
style pool deck and patio lounge, fitness center
and other resort-style amenities. The
development also includes many smaller retail
units which serve as workspaces and shops for
DC artists and small businesses.
Atlantic Plumbing
Top
Residential
Development
Projects
Near
Bond
Bread
Site
Unit Count: 372 Unit Count: 245
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Just two blocks west of the Bond Bread Site,
construction is underway on a large new multi-
use commercial and residential development
anchored by Whole Food Market.
The development group plans on 51,000
square feet retail marketplace, and 350,000
square feet of housing, including 30%
affordable units.
965 Florida 13/U
Centrally located on the U street corridor, less
than one half mile west of the Bond Bread Site.
Eight-story mixed-use building with 130
residential units above ground-floor retail and
48 underground parking spaces.
16,000 square feet fully leased in advance of
project completion.
Unit Count: 428 Unit Count: 130
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Planned
Howard
Projects Near
Bond
Bread
Site
Located just north of the
Bond Bread site, Lot 3 is
currently a parking lot is
envisioned to become a
mixed-use development
containing commercial,
residential, and Howard
uses. The site is zoned
MU-10, intended to be
medium to high-density
mixed-used
development.
Lot 3 Barry Place Phase 1 Effingham Apartments Howard Manor
Located west of 10th Street and
south of Barry Place NW on
Howard’s Campus, the renovated
Howard Towers will provide 1,780
beds for undergraduate and
graduate students.
The West Tower, containing 825
beds, reopened in August 2017
after 6 months of renovation. The
East Tower will open in fall 2018.
Howard Plaza Towers Carver Hall
One block from LeDroit Park
Slowe Hall is a former Howard
University student residence hall
planned for redevelopment in a
93-unit apartment building
featuring a large secluded
outdoor courtyard.
Howard entered into a 99 year
ground lease with development
partners in August, 2017.
Slowe Hall
Howard Center
The first phase of Barry
Place, called the Sherman
Avenue Apartments is
near completion. Planned
uses include ground floor
retail and 319 residential
units, 10% of which are
set aside for 80% Area
Median Income residents,
and additional units set
aside for HU faculty and
staff. Future phases are
currently being planned.
Potential uses for the
Howard Center, with a
large retail front on
Georgia Avenue directly
across from Lot 3, are
retail, residential and
institutional uses,
including a conferencing
center. The current
zoning allows for
University uses as a
matter of right.
Located conveniently on
Georgia Avenue at the
north end of Howard’s
campus, Effingham is
envisioned as a multi-
family residential project
with retail on the
ground floor. The
buildings are currently
vacant and are zoned
MU-4, which allows
moderate-density
mixed-use development.
Adjacent to Effingham
Apartments and facing
Girard Street NW to the
north, Howard Manor will
likely be a modernized
residential development.
The site is currently
zoned MU-4, which
permits moderate-
density mixed-use
development.
Once a residence hall for Howard
students, Carver Hall, located at
2nd and Elm Street NW, is being
converted into a 59-unit
apartment building, featuring 15
loft apartments with 16-foot
ceilings, a fitness center, resident
lounge and outdoor spaces.
Howard entered into a 99 year
ground lease with development
partners in August, 2017.
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Submission Requirements
Respondents interested in the Bond Bread Site should provide straightforward, concise information that satisfies the requirements noted below.
EACH SOQ SHOULD ADDRESS THE FOLLOWING ITEMS, IN THE ORDER LISTED.
A. Cover letter Respondents should sign and submit the cover letter in Appendix A, which acknowledges that the Respondent has read and understands all contents of the RFQ and addenda and takes no exception to the materials provided. The cover letter should be signed by a person that has full authority to bind the Respondent to all terms and conditions of the SOQ.
B. Team Qualifications
Respondents should provide information that will enable the University to evaluate the qualifications, experience and past performance in the design, construction, financing, operations and maintenance of a project of comparable size and scope as this Project. At a minimum, the following items should be addressed in this section:
Entity name, type of entity, street and mailing address as well as a brief summary of the Respondent’s organizational history and background.
Identification and qualifications of each member of the development team for all persons or entities that will engage in the Project and role of each partner/participant with an organization chart of the partners describing the function of each entity.
Primary contact name, title, phone number, e-mail address .
For each Firm, provide at least three (3), and no more than five (5), examples of projects completed within the last five years that demonstrate relevant development experience. In particular, provide any projects that were executed with a public or university partner and required the Respondent to conduct due diligence, plan, finance, design, construct, operate, and maintain properties in an urban area through any and all applicable financing structures. Additionally, projects that demonstrate the Respondent's success with historic buildings and in receiving approvals and other zoning and regulatory entitlements in the District of Columbia will be highly regarded. For each example include: date and location of work; role of the entity; client; relevance to this solicitation; development size by use, financing, and capital structure; and a description of how the project met schedule and budget expectations.
Howard may be interested in participating as a partial investor/financier for the development. Describe experience with similar arrangements, including establishing a joint venture with a public institution.
Team experience with Project-specific issues such as zoning and historic preservation methodologies in the District of Columbia.
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Provide three (3) business references familiar with the submitting firms and their work on projects described in this section of your SOQ. For each reference include a contact name, company, phone, email, and the types of services provided.
The University expects the Selected Developer to reflect diversity in both its management and ownership structures. Respondents should describe plans to achieve diversity in their team’s management and ownership, as well as diversity among its Subcontracting Entities (including Certified Business Enterprises) in each phase of the design, development, construction and operation of the Project consistent with Howard’s social mission. Opportunities for Howard students to be involved in the development, construction, and post-construction management of the Selected Developer are highly encouraged. Additionally, Respondents are encouraged to identify and include qualified graduates of Howard on the team.
C. Financial Capability
This information is requested to evaluate the Respondent’s financial strength and ability to obtain debt and
equity financing.
Financial Stability
Respondents should provide information that will enable the University to evaluate the Respondent’s financial capability and approach to the Selected Developer. Respondents should provide:
Audited financial statements prepared in accordance with GAAP for the years 2014-2016, if applicable, or corporate or individual financial statements certified by an officer of the company;
If the entities are publicly owned, provide a copy of the most recent 10K report; and,
Credit Report and, if available, financial rating reports and other documents indicating the financial condition of the contracting and financially responsible entities and any controlling entities.
Financial Risks
The University will evaluate the financial risks posed by each Respondent that may impact the Respondent’s ability to successfully execute the development. SOQs should include the following information related to financial risks for each Firm:
Bankruptcy Information: provide a statement indicating whether the contracting and financially
responsible entities, any controlling entities, any principal personnel or key development team members or
other proposed equity investors have declared bankruptcy during the past five (5) years, and briefly
describe the bankruptcies.
Pending Litigation: provide a statement indicating whether the contracting and financially responsible
19
entities, any controlling entities, any principal personnel or key development team members or other
proposed equity investors are involved in any business-related litigation, liens or legal claims, and briefly
describe such matters.
Judgments: provide a statement indicating whether the contracting and financially responsible entities,
any controlling entities, any principal personnel or key development team members or other proposed
equity investors have had a business-related, judgment against it/them during the past five (5) years, and
briefly describe each instance.
Financing Plan
Respondents should provide high-level information that will enable the University to evaluate a Respondent’s
ability to obtain debt and equity financing for the Project and it’s relative cost to Howard:
A description that demonstrates the soundness of the Respondent’s strategy for financing the Project,
including discussion of the risks and benefits of the financing structure, the Respondent’s expectation of
return on equity, and why this strategy is the most advantageous to the University.
The University’s strong preference is that the Project is 100 % privately financed. Identify potential sources
of debt and equity for the Project. For each source, provide entity name, contact name, prior and existing
relationships with Respondents, and letter with a preliminary commitment to provide the required equity
funding.
A description of development fees and expected investment returns.
D. Project Approach
The Respondent approach should include a narrative describing how the Respondent will plan and develop the
Bond Bread Site. The description should include:
A summary of the vision and conceptual development for the Project. Concepts should describe an
innovative commercial space on ground floor that serves as a destination and comment on the potential for
a marketplace with eclectic foods and a wide variety of retail to achieve that goal.
Description of the Site’s highest and best use.
Description of methodology to collaboratively create a Development Plan with Howard.
The mix, size (in gross and net square feet), and location of uses at the Project that maximizes value to the
University and the mix of units in residential components of the Project.
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Concept for including key historical and aesthetic elements of existing Bond Bread and WRECO garage
buildings as required by Federal and District Laws and Regulations.
Respondent must outline a clear approach to working within the historical, planning and zoning, and
environmental constraints of the Bond Bread Site. Responses should include:
Approach to assessing and mitigating environmental hazards and meeting legal and regulatory
requirements related to cleanup
Approach to conforming to all relevant DC zoning, historical designation, and the Duke Plan.
Approach to entitlement, including a response to Howard’s plan to seek further processing of the Campus
Master Plan to allow for an updated development at the Site and preferred paths to addressing the
covenants applied to the parcel conveyed by the District.
Howard has a commitment to providing affordable units in its development projects. Provide an approach to
meeting or exceeding District requirements for affordable housing and making units available to members of
the Howard community.
Howard may be interested in participating as a partial investor in the project. Provide an approach to
collaborating with Howard to create an innovative joint venture entity.
Howard is wiling to enter into a 99 year ground lease , but strongly prefer shorter terms. Describe an
approach to ground leases and your willingness to enter into a shorter term agreement.
Responses shall include conceptual site plan drawings which demonstrate the integration of historic features
with the highest and best use of the existing building (8.5” x11” conceptual drawings)
For teams with multiple firms, include a description of how the Project will be managed and which firm will
serve as Howard’s primary point of contact.
E. Community Relations Plan
Respondents should identify their plan to maintain good relations with all involved parties (including the
University, ANCs, District of Columbia Government, and surrounding community) throughout the duration of
the Project. The Selected Developer will be required to coordinate with various University stakeholders
including, but not limited to, the Office of External Affairs. Respondents should identify local market
knowledge and a community relations strategy applicable to the District of Columbia.
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PAGE LIMIT
Cover Letter One (1) page
Team Qualifications Ten (10) pages
Financial Capability Five (5) pages
Project Approach Fifteen (15) pages
Community Relations Plan Four (4) pages
Appendices (Resumes and relevant information not required in the sections above) No page limitation
Previous community relations experience should be identified, including any relationships with governmental
entities or community organizations on similar projects. In particular, discuss any projects that were executed
on public or university land, and focus on those located in DC.
F. General Requirements
Respondents interested in the Project should provide straightforward, concise information that satisfies the requirements noted below. Brevity is appreciated and all SOQs should conform to the following requirements:
Four hard copies and one electronic copy must be submitted. Hard copies should be prepared on 8.5 x 11- inch paper, though oversized drawings may be folded into an 8.5 x 11 size;
Text portions of the electronic copy of the SOQ must be in a searchable format;
All financial information (including budgets) included within a SOQ must be submitted in Microsoft Excel with fully functional formulas;
Any submitted SOQ shall remain a valid SOQ for 6 months after the SOQ due date;
All documentation submitted with the SOQ should be contained in a single volume;
Typeface shall be no smaller than 11 point and margins shall be no less than one inch; and,
Expensive bindings, color displays and the like are not necessary.
Extraneous marketing materials are discouraged.
SOQ should follow the format below and should not exceed the following page limitations:
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Selection
A. Selection Process
The Selected Developer will be chosen by the University, as advised by a committee of experts established by the University. SOQs will be evaluated based on their technical merit and associated risk ratings, based on the factors below. Once the University has completed the review of the SOQs, at Howard’s sole discretion, it may:
I. Identify a short-list of Respondents that will be required to make an oral presentation to the University
II. Select one Respondent for the exclusive negotiation;
III. Issue an RFP to a short list of qualified Respondents requesting notional price and program proposals; and/or
IV. Disregard all SOQs.
The University does not intend to meet with Respondents
regarding revisions to their SOQs but may contact Respondents
to clarify certain aspects of their SOQs or to correct clerical errors.
The relative strengths, deficiencies, weaknesses, and risks of
each SOQ will be evaluated.
The Respondent to be selected for exclusive negotiation will be
that Respondent whose SOQ, or subsequent notional proposal
should the University issue an RFP, provides the best overall
value to the University and is determined to be most
advantageous to the University; provided, however, that Howard
may at its option, and without any liability, choose to reject any
and all SOQs and/or proposals or cancel solicitation or award
completely without a requirement for justification
In the event the Selected Developer and the University are
unable to come to an agreement on development, Howard
reserves the right to award the project to the next most-qualified
bidder.
B. Evaluation Factors
Respondents will be evaluated based upon the evaluation factors listed below. The evaluation factors are listed in
descending order of importance with the first having the most weight and each of the following evaluation factors having equal or lesser weight than the one preceding it.
C. Presentations
Respondents may be required to make oral presentations after
submittal of written SOQs to exhibit their understanding of the
solicitation requirements. During the SOQ evaluation process, the
University may submit written questions to the Respondents. The
University will retain responses in its official file as a historical record of
the presentation slides and responses to University questions.
D. Post-Selection
The Selected Developer and University will negotiate an Exclusive
Rights Agreements (ERA) detailing the leasing and development of the
Project.
The Selected Developer will be required to work with Howard to craft a
detailed development plan reflecting the development concept that
incorporates developer-obtained community feedback and reflects the
University’s goals. Howard and the Selected Developer will negotiate a
Ground Lease or similar transaction document. This transaction
document shall include relevant characteristics of the development,
and define all terms and conditions, schedules, and financial
arrangements between the parties.
Factor 1 Qualifications, Experience, and Past Performance
Factor 2 Project Approach
Factor 3 Financial Capability and Approach
Factor 4 Community Relations
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RFQ Schedule
Bond Bread Site Redevelopment Process and Schedule
Release of RFQ September 29, 2017
Pre-Response Conference
A non-mandatory Pre-Response
Conference will be held via WebEx.
October 17, 2017 10:00am
-11:00am EDT
Site Visit
Grounds are accessible to public. Building
tours will be available between 10am and
6pm. Visitors will enter the buildings at
their own risk.
October 17~19, 2017
10:00am-11:00am EDT
Deadline for Written Questions
Questions may be submitted at any time
through this deadline
November 7, 2017
3:00pm EST
University Reponses to Written Questions
Questions and responses will be available
to all Respondents via https://
BondBread.datarooms.com
November 14, 2017
SOQ Due Date
Four hard copies and one electronic copy of
SOQs must be submitted.
November 21, 2017
3:00pm EST
Post—RFQ Process
Selection / Board Approval
Review SOQs, obtain Board approval of
Selected Developer
Negotiate ERA
Negotiate Exclusive Rights Agreement
Craft Development Plan
Collaborate with Howard Staff and
community to create a development plan
Obtain Board Approval
Obtain Board approval of development plan
Execute Ground Lease
Negotiate and execute Ground Lease
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Terms & Conditions
Disclaimer
Notwithstanding anything contained in this RFQ, neither Howard nor any of its
trustees, officers, employees, attorneys or consultants (collectively its “Agents”) shall
be deemed to make or have made any representation or warranties, express or
implied, regarding the accuracy or completeness of any statements or other
information contained in or attached to this RFQ (including, without limitation, any
representation or warranties as to the condition of the Site or the suitability of the Site
for any purpose). Respondents to this RFQ may not rely on any statements or
information provided by Howard or its Agents, and shall be responsible for satisfying
themselves as to the reliability, accuracy and/or completeness of each such statement
and information and ascertaining all conditions that affect or might affect its
proposed Project.
University Property Rights
The University requires that programmatic and standard-based requirements will be
defined in the planning phase. All designs and plans that are produced by the
Respondent as part of the Project will become the property of the University whether
or not the Respondent is retained to continue beyond the submission stage of the
Project.
Amendments to this RFQ
This RFQ may be amended by formal amendment, document, letter, or email. If this
RFQ is amended, then all terms and conditions that are not amended remain
unchanged.
As-Is Condition
Howard makes no representations, warranties or guarantees concerning any
conditions at the Site (including, without limitation, the presence or possible presence
of hazardous materials or substances). The Site is being offered in an “as-is, where-is”
condition, and the Master Developer will be solely responsible for obtaining, at its sole
cost, all appraisals, surveys, legal descriptions, permits, zoning appeals and approvals,
engineering and environmental studies and the like, as may be necessary for the
design, development, construction and operation of the Project.
Authorizations by Submission of SOQ
Any and all information provided by a Respondent may be used by the University to
conduct credit and background checks. The University is authorized to contact the
individuals listed by the Respondent in the project examples for purposes of
discussing the Respondent’s performance.
Disclosure of Respondent’s Response
This Request for Qualifications specifies the format, required information, and general
content of SOQs submitted in response to this RFQ. The University will not disclose
any portions of the SOQs prior to contract award to anyone outside the University
other than the University’s administrative staff and counsel, representatives of the
State or Federal Government, if required, and the members of the committee
evaluating the SOQs and its advisors. After a contract is awarded in whole or in part, the
University shall have the right to duplicate, use, or disclose all SOQ data submitted by
Respondents in response to this RFQ as a matter of public record.
Restrictions on Communications with University Staff
From the issue date of this RFQ until a Master Developer is chosen and a contract award
is made, Respondents are not allowed to communicate about the subject of the RFQ with
any University administrators, faculty, staff, or members of the Board of Trustees or
advisors except the Designated Point of Contact. If violation of this provision occurs, the
University reserves the right to reject the Respondent’s SOQ.
Teaming Arrangements and Special Purpose Entities
Multiple Team Members may form a joint venture for the purpose of submitting a SOQ in
response to this RFQ. A special purpose entity may be created for the purpose of
submitting a SOQ. The University may require that financial and performance
guarantees be provided by Team Members. Team members of one Respondent may
participate as Team Members of another Respondent (so long as each affected
Respondent gives its consent).
Team Composition
A Respondent may not change the composition of its proposed development team
unless it has given Howard prior written notice of the proposed change. In addition, a
Respondent must provide any financial or other materials requested by Howard to
evaluate the newly proposed composition of the Respondent. Howard reserves the right,
in its sole discretion, to reevaluate the proposed change in composition and to eliminate
the team from further consideration (or to revoke the selection of the Respondent). The
Master Developer must receive Howard’s written approval before changing its team’s
composition; otherwise the Master Developer will be disqualified.
Hold Harmless
By participating in this RFQ process, each Respondent agrees to indemnify and hold
harmless the University and its officers, employees, contractors, trustees and advisors
from and against any and all real estate and other brokerage fees or commissions,
finder’s fees, and any other forms of compensation related in any way to activities
undertaken by any person as a result of such person’s efforts towards and/or
participation in this RFQ process or the submission by such person of a SOQ, and
liabilities, losses, costs, and expenses (including reasonable attorney’s fees and
expenses) incurred by any indemnified party as a result of, or in connection with, any
claim asserted or arising as a result of, or in connection, with this RFQ process. This
includes any and all activities related to the University’s exclusive negotiations with the
Master Developer.
Organizational Conflicts of Interest
When submitting and signing a SOQ, a Respondent is certifying that no actual, apparent
or potential conflict of interest exists between the interests of the University and the
interests of the Respondent. A conflict of interest (whether contractual, financial,
25
organizational or otherwise) exists when any individual, contractor, or
subcontractor has a direct or indirect interest because of a financial or pecuniary
interest, gift, legal proceeding for or against the University, or other activities or
relationships with other persons (including business, familial or household
relationships) and is thus unable to render or is impeded from rendering impartial
assistance or advice, has impaired objectivity in performing the proposed work, or
has an unfair competitive advantage.
Cost of Preparing SOQ
Costs for developing the SOQs and any subsequent activities prior to contract
award are solely the responsibility of the Respondents. The University will provide
no reimbursement for such costs.
Attorney’s Fees
In the event that either party deems it necessary to take legal action in connection
with the transaction contemplated by this RFQ, and in the event that the
University prevails, the Master Developer agrees to pay all expenses of such action,
including attorneys' fees and costs at all stages of litigation.
Code of Ethics and Conduct
It is the policy of the University to conduct itself with the highest degree of
integrity and honesty in all of its dealings. To further this process, its Board of
Trustees has adopted a Code of Ethics and Conduct (the “Code”) that contains a
set of guiding principles and responsibilities governing all members of the Howard
Community. Members of the Howard community (“Howard Community”) include
all Howard employees, corporate officers, and trustees, and the immediate families
and close personal acquaintances of the foregoing. Certain provisions of the Code
deal with the relationship of the Howard Community with those seeking to do
business with the University. In general, the Code prohibits any member of the
Howard Community from receiving or soliciting anything of value in return for
influencing or exercising his or her discretion in a particular way. In addition, no
member of the Howard Community may receive or solicit anything of value
because of any official act performed or to be performed by such an individual.
If a Respondent or the Master Developer violates or facilitates a violation of this
policy, it will not be considered an appropriate party to undertake the Project and
may also be disqualified from doing business with the University in the future.
Such a decision will rest within the University’s sole discretion and may be made on
any basis that the University deems appropriate under the circumstances.
Civil Rights
It is the policy of the University to provide an environment for its students, faculty
and administrative employees that is free from illegal discrimination, intrusion,
intimidation, or exploitation. Therefore, the University will not tolerate any illegal
treatment of a member of Howard Community that is based on race, color, religion,
national origin, sex (including sexual harassment), age, marital status, personal
appearance, sexual orientation, family responsibilities, disability, matriculation, political
affiliation, or on any other classification that is prohibited by law.
All individuals who come onto the property of the University, or who enter property where
the University conducts its business (“University Property”) are expected to conform to this
policy. Respondents will be held responsible for the actions of their employees, officers,
principals, consultants, and agents while on University Property. The University reserves
the right to take all appropriate remedial measures to impose sanctions and to mitigate
against the recurrence of any violation of this policy. In such an event, the University may
bar culpable individuals from University Property. In addition, in lieu of taking such action,
the University may conclude that the Respondent is not an appropriate party to undertake
the Project and may disqualify the Respondent from doing business with the University in
the future. Such decisions will rest within the University’s sole discretion and may be made
on any basis that the University deems appropriate under the circumstances.
Representations and Warranties of Respondents
By submitting a SOQ in response to this RFQ, the Respondent warrants and represents that
(i) if awarded the contract, it will not engage in illegal discrimination in any employment
action on the basis of race, religion, color, gender, sexual orientation, age, national origin,
or on any other basis proscribed by Federal law or the law of the District and (ii) that it has
not offered or given anything of value to any member of the Howard Community in return
for such party’s influencing or exercising his or her discretion in a particular way or
performing any official act.
SOQ Addenda and Rules for Withdrawal
Prior to the date specified for receipt of offers, a submitted SOQ may be withdrawn by
submitting a written request for its withdrawal to the Designated Point of Contact, signed
by the Respondent. Unless requested by the University, the University will not accept
revisions, or alterations to SOQs after the SOQ due date. The University reserves the right
to reject all submittals for any reason. Each firm responding will be notified whether its
submittal is to be shortlisted.
General Conditions
Howard reserves the following specific rights, without limitation, with respect to SOQs:
The right to waive any irregularities or technical difficulties in the SOQ process.
The right to reject any SOQ that the University deems incomplete or unresponsive and the right to remove the Site from the market and reject all SOQs.
The right to afford unsuccessful Respondents an opportunity to enter into backup contracts in an order of priority determined by the University in its sole discretion.
The right to re-offer the Site if the University elects not to accept any SOQ.
The right to select a developer whose response may or may not result in the highest return to the University.
The right to withdraw the RFQ and instead solicit a broader group of developers.
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Appendix A. Cover Letter
SOQ SUBMITTED IN RESPONSE TO Howard University Bond Bread Site Redevelopment Project Response to RFQ HU-BB-01 Mr. Anthony Freeman
c/o Ms. Michelle Lockley Real Estate and Asset Management Howard University 2244 10th Street, N.W. Suite 402 Washington, D.C. 20059 In accordance with your request for qualifications (RFQ) Number #HU-BB-01, the undersigned, having due authority to submit
the following SOQ with four hard copies and one electronic copy, hereby acknowledges that the terms and conditions under
which Howard University seeks to contract services have been fully read and understood. The firm, its employees and agents,
can and do agree to meet all requirements contained in this RFQ (unless stipulated in the response) and confirm that the
proposed work contained in this response meets the conditions set out in the RFQ.
We hereby certify that in preparing this response we have not been assisted by any current or former employee or agent of
Howard University whose duties relate to this SOQ, other than providing information in response to written requests. No such
individual or his/her immediate family has any financial interest in the outcome of this SOQ.
The University is hereby authorized to request from any individual any pertinent information deemed necessary to verify
information regarding capacity of the firm for purposes of determining responsiveness of the SOQ, or responsibility of the firm
as a prospective contractor.
Corporate Name: __________________________________________________ Corporate Address: __________________________________________________
__________________________________________________ __________________________________________________
Phone ( ) – Fax ( ) – Email: Corporate Entity Type, State Registered _____________________________________ Employer Identification Number _____________________________________
27
Howard University is transforming its administrative, academic,
financial structures to address the needs of its students in the 21st
century. A key pillar of the universities planned improvements rely
on diverse, predictable revenue stream, in part funded by Howard’s
significant, valuable real estate holdings. The University is currently
executing a real estate strategy to capture value from its assets,
largely by partnering with private sector parties. To protect
university interests and set expectations with potential partners
Howard developed the guiding principles below for negotiating
with real estate development entities.
Planning and development approach
- Parties jointly recognize and promote that this effort builds upon
the University’s new and evolving model for University
Development
- Planning/Development Partner commits to delivering on HU’s
vision represented in the Campus Master Plan as well as any
emerging HU vision, objectives, and strategy for the subject area
and corridor
- Planning/Development Partner to present options and
opportunities for consideration by HU. HU has final approval over
the final development plan for the subject area
- A cohesive approach to optimize value -- HU branding and
programmatic integration to be prominent throughout the subject
area and corridor
- Dedicated Pre Development team consisting of Planning/
Development Partner and HU representatives to collaborate on the
development plan prior to HU approval
Timing and risk sharing
- HU prefers to receive fair market value (FMV) upfront and require
Planning/Development Partner to assume all market and
development risk
- HU wants to simplify the requirements for managing, monitoring,
Appendix B. Howard’s Development Guidelines
and administering its economic interest over the life of the
ground lease, therefore overly complex deal structures,
ownership structures, and participation are discouraged
Economic value to Howard
- HU must obtain FMV for the ground lease supporting all
development
- HU must receive additional value/benefits in exchange for any
sole-sourced/non-competitive transaction (e.g., premium pricing,
ancillary profit opportunities, etc.)
- HU must safeguard the integrity of any sole source transaction
by protecting against windfall profits through gross revenue
participation and participation in liquidity events
- HU provides NO direct or indirect economic subsidy towards the
construction and operation of any commercial development
components
Link to Howard mission and values
- Planning/Development Partner must demonstrate diversity on
the development team
- Planning/Development Partner must demonstrate a
commitment to coordinated community engagement in
conjunction with HU
- Planning/Development Partner must demonstrate a
commitment to Inclusionary Zoning and/or other HU oriented
housing programs that promote affordability
- Planning/Development Partner to collaborate with HU on
potential acquisition and development opportunities that are
strategic and economically feasible
- Development proposals must have a linkage to and create
sustainable value to HU’s academic mission (e.g., enhances
opportunities and quality of life for HU students, faculty, staff,
and brand)
Additional information is available at
Anthony Freeman
Real Estate Executive, Senior Advisor to the President
AVP, Real Estate Development and Capital Asset Management
Derrek Niec-Williams
Executive Director
Campus Planning, Architecture and Development
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