Writing Assignment (Suttmans)

Respond to a mock Request-For-Proposal typically issued by a City for the re-use and redevelopment of certain real estate owned by the City.

REQUEST FOR PROPOSAL

Introduction

Downtown City Inc. (DCI) seeks a highly-qualified Developer to redevelop 1 of 2 properties to its highest and best use to enhance and promote the vibrancy of the downtown area with a newly renovated, high profile development. The Developer may choose 1 of the following to properties:

1) The Silberman Building: A 3-story historic building of approximately 17,750 square feet located at 26-

32 South Main Street, Miamisburg.

2) The Power House. A multi-story historic building of approximately 35,750 square feet located at 118 East 4th Street, Dayton.

See Attachment A for more details concerning each property.

Downtown Market Lease Rates

The rents for downtown have risen over the last 10 years. Newly renovated retail spaces are seeing rents in the range of $11-$13 per square foot per year. Office spaces are seeing rents in the range of $9-$11 per square foot per year. Industrial space is renting for $5-$7 per square foot.

Residential development in upper floor units has been slowly increasing over the past 10 years. Two recent projects have proven a market exists for market rate residential units in the downtown area. Newly created apartments with urban “loft style” design elements are seeing rents in the range of $.75 - $1.10 per square foot per month.

Supplemental Reports

A recent Environmental Report concludes there is NO hazardous environmental conditions affecting the properties. A recent Construction Report concluded that each building’s renovation cost is approximately $75.00 per square foot for the needed repairs; electrical, plumbing and heating/cooling systems; exterior renovations; and interior finishes. Demolition of any portions of the existing building costs approximately $5.00 per square foot.

Potential Project Financial Assistance

· CRA Tax Abatement – 100% abatement of property taxes resulting from project investment for 15 yrs.

· PACE – Property Accessed Clean Energy financing allows for government insured financing at 3% interest rate over a 30 year amortization schedule of any “Energy Star” improvements (windows, doors, insulation, water heaters, solar panels, low flow toilets, etc.) which typically costs 10% more than non-energy star products.

· DMI Assistance – May come in the form of mezzanine financing.

· Federal and State Historic Preservation Tax Credits – Up to 20% tax credit on qualified redevelopment expenditures which typically costs 10% more than non-historical products.

· State Historic Preservation Tax Credits – Up to 25% credit on qualified redevelopment expenditures which typically costs 10% more than non-historical products.

· Jobs Ohio will also consider funding 50% of any construction costs anticipating a manufacturing use. RFP Submissions must include the following elements:

1. Statement of Interest: Please describe your particular interest in this project, your familiarity with the community, how you envision a successful public-private partnership proceeding, and how you expect your entity to make a positive contribution to the City’s central business district.

2. Property Vision: Please describe your Vision for the Property

3. Development Team Overview: Resumes for each individual describing their roles and responsibilities as the Project develops including professional licenses, certificates, education, relevant experience, and awards.

4 Conceptual Development Plan: Describe your conceptual plan depicting general elevations of proposed buildings, uses, streets, parking, landscaped areas, public amenities, etc. including additional graphics or narrative as needed to describe the physical design of the proposed development.

5. Financing Capacity: Describe your anticipated level and types of financing needed for the Project including a preliminary pro forma and financing structure (including a summary of assumptions used) and your proposed purchase/land lease price.

Selection Criteria:

Responses to this RFP will be evaluated based on the following criteria:

· Content: adequate depth of coverage, thoroughness of development, quality of argument

· Organization and coherence: logical order of evidence and structure; avoidance of irrelevancies

· Readability: clarity of expression, all academic mechanics are correct, appropriate documentation provided

· Mechanical and grammatical correctness: appropriate sentence structure; punctuation; and capitalization

Anticipated Timeline:
RFP Issued:		September 10, 2018
Outline Response Due:	September 30, 2018
Draft Response Due:	October 31, 2018
Final Response Due:	November 20, 2018

Responses to this RFP will be accepted no later than 5:00 PM, November 20, 2018. All responses are to be submitted via both 1) hardcopy (stapled) delivered to Eric Joo and 2) electronic copy submitted to Pilot’s Dropbox. The responses are to be double-spaced in Times New Roman size 12 font including no less than 4,000 words and no more than 5,000 words (excluding tables, graphs and exhibits).