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Home My WebLink AboutItem A: Review of Draft Request for Proposals for 10th and Charnelton Development Site EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY th Work Session: Review of Draft Request for Proposals for 10 and Charnelton Development Site Meeting Date: May 24, 2006 Agenda Item Number: A Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT On April 12, 2006, the City Council directed staff to bring back a draft Request for Proposals (RFP) for th the sale and development of the 10 and Charnelton (Sears) development site, following input from the Planning Commission. The draft RFP being considered for the site is included in Attachment A. BACKGROUND th The 10 and Charnelton development site includes the 1/4-block former Sears building property, along th with the 1/8-block surface parking lot on the northwest corner of 10 and Olive. (The other half of the th surface parking on 10 and Olive is owned by an adjacent private party.) The Urban Renewal Agency (URA) purchased the Sears property in 1993. The acquisition cost of approximately $900,000 (approx. $12/sq.ft.) included the Sears building property and the half-block on which the new library was constructed. The URA contributed the half-block to the library project in 2004, which represented a land contribution in excess of $1 million at that time. th A new appraisal of the 10 and Charnelton development site, completed on May 10, 2006, indicated a market vale of $970,000 ($25/sq.ft.). In 2005, the former Sears building structure was demolished for a total cost of approximately $202,000. th The first RFP for sale and development of the 10 and Charnelton site was issued in 1999, and included planning and design criteria that was approved by the Planning Commission and City Council (see Attachment B). Responses to this RFP were limited, and the URA deferred review of the responses given pending discussion regarding sites for the Federal Courthouse and new City Hall options. In December 2002, a second abbreviated RFP was issued (see Attachment C). In May 2003, the URA reviewed four responses to the RFP and selected the Oregon Research Insitute (ORI) project. Following ORI’s decision to not pursue the purchase and development of the site, there have been inquiries from parties interested in the site. On April 24, 2006, the Planning Commission reviewed the 1999 and 2002 versions of the RFP, and provided input regarding the issuance of a new RFP for the site. Generally, it encouraged use of the policies and strategies in the Downtown Plan as the primary source for gauging desirable projects for the site. It also favored a less-prescriptive RFP approach (in comparison to the 1999 criteria) in order to attract a broad mix of possible uses, encourage creativity in the development of the site, and inspire investor confidence. Although the Planning Commission favored a less prescriptive approach, it L:\CMO\2006 Council Agendas\M060524\S060524A.doc stressed the importance of requiring detailed, highly descriptive responses to the RFP. The Planning Commission also discussed the possibility of identifying the site as an “opportunity site,” but did not make a specific recommendation. Consistent with the Planning Commission’s recommendation, the draft RFP has been designed to stress the importance of project proposals that will advance the policies and strategies in the Downtown Plan and inspire investor confidence. Encouragement of proposals that are consistent with current opportunity site concepts is included in the draft RFP. The Eugene Redevelopment Advisory Committee also reviewed the prior RFPs for the site, and provided input that was consistent with the Planning Commission input. The committee encouraged a comprehensive review of how each project proposal advances the Downtown Plan and contributes to this area of downtown. State statutes, the Downtown Urban Renewal Plan, and adopted URA procedures govern the disposition of real property held by the URA. URA procedures provide for the City Manager, as the business agent for the URA, to publicly or privately solicit proposals and negotiate with any party for the disposal of real property consistent with the Urban Renewal Plan. Any proposal which is acceptable to the City Manager must then be presented to the council (acting as the URA) for its approval. RELATED CITY POLICIES th Future development of the 10 and Charnelton development site is consistent with the policies and implementation strategies included in the Eugene Downtown Plan, including: Downtown development shall support the urban qualities of density, vitality, livability and diversity ? to create a downtown, urban environment. Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety of ? income levels and ownership opportunities. Help employers locate, remain and expand downtown by targeted use of economic tools and ? incentives. Actively pursue public/private development opportunities to achieve the vision for an active, vital, ? growing downtown. Use downtown development tools and incentives to encourage development that provides character ? and density downtown. Promote multi-story, mixed-use structures downtown through financial incentives or code ? amendments. In addition, the proposed future development of the Sears site is responsive to the following Growth Management objectives: Policy 1: Support the existing Eugene Urban Growth Boundary by taking actions to increase density and use existing vacant and under-used land within the boundary more efficiently. Policy 2: Encourage in-fill, mixed-use, redevelopment, and higher density development. Policy 3: Encourage a mix of business and residential uses downtown using incentives and zoning. Policy 10: Encourage the creation of transportation-efficient land use patterns and implementation of nodal development concepts. Policy 16: Focus efforts to diversify the local economy and provide family-wage jobs principally by supporting local and environmentally-sensitive businesses. Direct available financial and regulatory incentives to support these efforts. L:\CMO\2006 Council Agendas\M060524\S060524A.doc Policy 14: Development shall be required to pay the full cost of extending infrastructure and services, except that the City will examine ways to subsidize the costs of providing infrastructure or offer other incentives that support higher-density infill, mixed use, and redevelopment. COUNCIL OPTIONS 1. Approve the draft RFP, and direct the City Manger to issue a new request for proposals for sale and th development of the 10 and Charnelton development site. 2. Amend the draft RFP, and direct the City Manger to issue a new request for proposals for sale and th development of the 10 and Charnelton development site. th 3. Consider options for the 10 and Charnelton development site at a specific future date. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the draft RFP, and recommends that the RFP for the sale th and development of the 10 and Charnelton development site be issued consistent with the preliminary schedule included in the draft RFP, with final review of the RFP responses and approval of a project for the site provided by the Urban Renewal Agency. SUGGESTED MOTION th Move to approve the RFP for the sale and development of the 10 and Charnelton development site, and direct the City Manger to issue a request for proposals consistent with the preliminary schedule included in the draft RFP, with final review of the RFP responses and approval of a project for the site provided by the Urban Renewal Agency. ATTACHMENTS th A. Draft RFP for the 10 and Charnelton Development Site th B. 1999 RFP Criteria for Proposal Evaluation for the 10 and Charnelton Development Site th C. 2002 Updated RFP Response Criteria for the 10 and Charnelton Development Site FOR MORE INFORMATION Staff Contact: Denny Braud Telephone: 682-5536 Staff E-Mail: denny.braud@ci.eugene.or.us L:\CMO\2006 Council Agendas\M060524\S060524A.doc 10th & Charnelton Downtown Develo ment Site Request for Proposals . ..~ OVERVIEW The Urban Renewal Agency of the City of Eugene is pleased to announce the availability of a downtown development site at 10th A venue and Charnelton Street. Through this Request for Proposals (RFP), the Urban Renewal Agency is seeking proposals that will complement a mix of uses in the project area including the new downtown Eugene Public Library, the Lane Transit District Downtown Station, the soon-to-be completed EmX bus rapid transit system, and the Broadway Place mixed-use development that includes residential, public parking, and retail! commercial. Development of the 10th & Charnelton site is a key step in the implementation of the Downtown Plan and the long-term vision for downtown Eugene. Because this highly visible site is located in an increasingly vital area of downtown, the Urban Renewal Agency expects that the project will: · Include a development team with a proven track record of successfully completing mixed-use developments in urban, downtown settings; · Incorporate high-quality urban design and architecture; . Include active ground-floor uses; · Complement the existing and planned public and private investments in the area; and · Serve as a catalyst in revitalizing the downtown area. BACKGROUND Located in the fertile Willamette Valley between the rugged Oregon Coast Range and the breathtaking Cascade Mountains, the Eugene/Springfield metropolitan area is the Pacific Northwest's sixth most populous metro area. Downtown Eugene is a dynamic regional destination where a wide-range of people come for work, commerce, entertainment, and living. Downtown has the largest concentration of employment in the region, with municipal, county, state, federal, and other professional offices patronized by citizens from throughout the metro area. The University of Oregon, a comprehensive research university, is immediately adjacent to Downtown. The recently completed Vision for Greater Downtown Eugene is currently being implemented. The forward-thinking Vision seeks to capitalize on development opportunities; strengthen Downtown's role as a regional center; expand housing, cultural, and recreational opportunities; create great streets and special places; and transition Downtown into a more vibrant city on the river. ..........--------~ ----~ -----------:-/~ --...........,.--/'-"""""'" ~. ------- Request for Proposals 10th & Chamelton Development Site 1 Commercial Office. Downtown is the premier location for commercial office and government office development. With major commercial office space in the core area, along with major city, county, and federal government office facilities, Downtown is emerging as a dense employment center. Recent additions to Downtown include the 100,000 square foot u.s. Bank Center, the 38,000 square foot Heron Building, and the 64,000 square foot 10th and Mill Building. Retail. The downtown retail environment has evolved into a mix of small specialty retail shops catering to the population of people that work, live, and visit Downtown. The 5th Street Public Market and East Broadway retail shops have maintained an attractive mix of retail tenants. With the reopening of Broadway, Willamette Street, and Olive Street (formerly the pedestrian mall), signs of retail revitalization are emerging along these streets, and consistent nightlife offerings can be found throughout downtown. Whole Foods, a national natural foods grocer, has plans for a 50,000 square foot store on the east end of Broadway. Arts and Entertainment. The Hult Center for the Performing Arts, one of the finest performing arts facilities in the Northwest, is the site of the annual Oregon Bach Festival and the place where eight resident companies perform. Other performing arts venues are also located Downtown, including the historic McDonald Theatre, the WOW Hall, Lord Leebrick Theater, Actor's Cabaret, and The Shedd Institute for the Arts, home of the Oregon Festival of American Music. Downtown also shares many galleries, fine restaurants, small music venues, and the Saturdav Market and Farmer's Market which , " feature local artisans, growers, and international food. Housing. Demand for downtown housing units is growing rapidly. Downtown residents can walk, bike, ride or take public transit to work, entertainment, or recreation. A variety of housing densities and types exist Downtown. Approximately 300 new downtown residential units constructed recently, including High Street Terrace, Broadway Place, and the Aurora Building apartments. The downtown Tate Condominiums project, which includes 47 housing units, is nearing completion. WestTown on 8th, an 111-unit mixed- income housing project is scheduled to begin construction in September 2006. ,-, --,.-- ~ ~ -------~ ,.-----=--- ------------ ---.~~ -----'~. Request for Proposals 10th 8{ Chamelton Development Site 2 SITE LOCATION The 10th & Charnelton development site is located in the southwest section of the area commonly referred to as the downtown core, and considered to be the central business district of Eugene. A mix of uses surrounds the site, including the new Eugene Public Library, Lane Transit District downtown station, Broadway Place apartments, government offices, and specialty retaiL Two adjoinii1g parcels are included in the 10th & Charnelton development site: one-quarter block (approximately 25,600 square feet) located on the northeast comer of 10th Avenue and Chamelton Street (Tax Lot 6600, Assessor's Map 17-03-31-13), and one-eighth block (approximately 12,800 square feet) located on the northwest corner of 10th Avenue and Olive Street (Tax Lot 5300, Assessor's Map 17-03-31-13). The site is located within the Downtown Urban Renewal District and parking exempt zone. See Appendix B and Appendix C for the area map and site map. The site has a number of advantages, including: · It is one of the largest cleared development sites in the downtown core area; · Adjacent private property owners on this block have expressed an interest in parh1ering, collaboratively redeveloping, or selling their properties; therefore, there are multiple redevelopment opportunities on the subject block; · It is adjacent to the 740-space City-owned Broadway Place parking structure; · It is adjacent to the Eugene Public Library, an architectural landmark and a destination for over 1 million visitors each year; · It is adjacent to the Lane Transit District's Downtown Station, a significant generator of foot traffic, and the soon-to-be western end of the EmX bus rapid transit system that will provide service from downtown Eugene to the University of Oregon and eastward to downtown Springfield. · It is within walking distance of numerous cultural, entertainment, retail and recreational venues. ~ Request for Proposals 10th & Charnelton Development Site ,., .) PRICE AND TERMS Fair market value of $970,000 has been determined by an appraisal completed on May 10, 2006. Purchase proposals which reflect at least fair market value are preferred but not required. The Urban Renewal Agency is willing to negotiate based on the overall public benefit provided by the project. A fee simple sale is preferred. A good faith deposit equal to ten percent of the sale price is required upon the signing of the development agreement. Broker fees will not be paid by the Urban Renewal Agency. Copies of the appraisal are available upon request. SUBMITTING PROPOSALS The Urban Renewal Agency invites proposals from prospective purchasers setting forth details regarding the development concept, offer to purchase, and other issues identified in this RFP. The format for submitting proposals and the details of the selection process are included in this RFP. The deadline for submitting proposals is 5:00 p.m (PST) on August 1, 2006. Please submit one original proposal, plus one copy that can be easily disassembled for reproduction. Proposals should be addressed to: Urban Renewal Agency of the City of Eugene 99 W. 10th Avenue Eugene, OR 97401 Attn: DESIGNATED CONTACTS The following City of Eugene staff are the designated contacts for information or questions related to this RFP: City of Eugene Community Development Division 99 W. 10th Eugene, OR 97401 Fax: (541) 682-5572 ------- Request for Proposals 10th & Chamelton Development Site 4 DEVELOPMENT POLICY Downtown Plan: 'The general policy for the development of this site comes from the 2004 Eugene Downtown Plan. There are two central themes in the Plan: 1) reinforce downtown Eugene as a strong regional center, and 2) strengthen downtown as a cultural center and the center of community life. The Plan calls for development of downtown as an urban center with unique qualities, character, vitality, intensity, and diversity of uses. The Urban Renewal Agency encourages proposals that are consistent with the policies and strategies identified in the Plan. Copies of the Downtown Plan are available upon request. A Vision for Greater Downtown Eugene: The 2000 Vision for Greater Downtown Eugene created the framework for the Downtown Plan. The Vision seeks to expand housing, entertainment, recreational and cultural activities downtown and seeks to strengthen downtown's role as a dense regional center for employment, government, and education. The creation of specific redevelopment concepts for the 1()th & Charnelton site that achieve diverse, high-density development is a key next step identified in the Vision. Copies of the Vision for Greater Downtown Eugene are available upon request. Urban Renewal Plan: The 2004 Urban Renewal Plan for Central Eugene Project (Downtown Urban Renewal Plan) contains goals and objectives for projects within the Downtown Urban Renewal District. A primary goal of the Urban Renewal Plan is to 1) strengthen the economic conditions of the plan area and to improve the downtown's importance in the region by strengthening its economic base, and 2) to enhance its role as a central location for public and private development and investment. Copies of the Urban Renewal Plan are available upon request. Opportunity Site: The Eugene Planning Commission and City Council have had ongoing discussions regarding development of II opportunity sites." An opportunity site is generally expected to have a significant residential component to compliment development consistent with underlying zoning. Although the 10th & Charnelton site has not been designated as an opportunity site! projects that propose development consistent with the opportunity site concepts are encouraged. SITE INFORMATION The subject property is currently offered as is. The former Sears department store building, which occupied the quarter- block tax lot 6600, was demolished in 2005. The building basement walls and floor structure remain. The one-eighth- block (tax lot 5300) is currently a paved surface parking lot. Utilities are available to the development site, including water, _/~ .--~,.--" . .....-.....--...... - . ----' ~ ,- ~ / -~ ~,.;/.-- Request for f'roposals 10th & Charnelton Development Site 5 sewer, gas, electricity, steam heat cable television, and a fiber optic core line on 10th Avenue. Developers should review utility information to determine availability and capacity for their proposed projects. Site Context. The two parcels that comprise the site contain approximately 38,400 total square feet. The site contains approximately 320 feet of street frontage on the south boundary (10th Avenue), 160 feet of street frontage on the west boundary (CharneIton Street), and 80 feet of street frontage on the east boundary (Olive Street), The new $36 million, four- story, 90,000 square feet Eugene Public Library faces the property to the south, across 10th Avenue. The Library ath'acts approximately 3,000 visitors per day. The one-quarter block parcel formerly occupied by the Sears building has a 14' alleyway on the north boundary. North of the one-eighth block parcel is privately owned surface parking. There is a 14' alleyway which trends north-south between tax lot 6600 and tax lot 5300, that could potentially be vacated to create a continuous development footprint. The City-owned Atrium building houses City of Eugene offices to the east of the property across Olive Street. Office and retail face the property to the west across Chamelton. The site is adjacent to the Lane Transit District Downtown Station and Broadway Place mixed-use development. Approximately 10,000 persons per day use the Downtown Station. Broadway Place includes a parking structure with 740 public parking spaces, 170 apartment units, and ground-floor retail. Demand for the Broadway Place apartments is very high. ZONING The site is zoned C-3, Major Commercial District, which allows a broad range of uses. The Major Commercial regulations are intended to accommodate office and retail uses, government and educational opportunities, culture and entertainment facilities, multi-family housing, hotels, and services that attract people from the entire metropolitan area. The building height limit is 150 feet. The site is located within the parking exempt zone; therefore, on-site parking is not required. If any land use application is required, fees for that application are waived for projects within downtown. The site is located within the Transit Oriented Development Overlay Subdistrict (TOO). The TOO is intended to promote the creation and retention of mixed land uses in areas with high potential for enhanced h'ansit and pedestrian activity. The development standards for this district provide for intensification of development and require a minimum density of 2.0 floor to area ratio (FAR). These standards are designed to encourage compact urban growth, opportunities for increased choice of transportation mode, reduced reliance on the automobile, and a safe and pleasant pedestrian environment --~ ..--' -. - . ~ ,---- . -~ --------"~ /------- .~~~ -----.- Request for Proposals 10th & Charnelton Development Site 6 DEVELOPMENT OBJECTIVES The sale of the 10th & Charnelton development site presents an opportunity for new development at a prominent location in an increasingly vital area of downtown. The block is surrounded by a wide variety of uses, including civic, residentiat retait and office. There is an existing strong pattern of pedestrian activity on 10th Avenue, Broadway, and Olive Street, with active first floor uses on surrounding blocks. Proposals will be considered that include assembly or joint-development of other adjacent privately-owned parcels. The overall concept for this block is a mixed-use, urban block development, designed to encourage a lively, active pedestrian realm. The design of the first floor on this block is critical; use of quality materials and architectural details that provide elements of scale and visual interest is essential. The site is adjacent to an area of significant public investment, including the Eugene Public Library, the Lane Transit District Downtown Station, Broadway Place, and the City-owned Atrium building. Any development on this block must reflect and support these investments with a high level of architectural quality on all street sides. The new Eugene Public Library is a very special place for the community. It includes both indoor and outdoor public plazas, a children's activity area, public meeting rooms, and a cafe. Public art is located throughout the building and exterior spaces. The relationship of the proposed development to the Eugene Public Library should be carefully considered. The Urban Renewal Agency encourages creativity in design of the project and intends to allow flexibility in the development of the site, provided that the proposal is consistent with the Eugene Downtown Plan, Land Use Code, and the objectives provided in this RFP. The following development objectives will be used to evaluate proposals: Development T earn Experience The Urban Renewal Agency seeks proposals from development teams capable of completing a dynamic project for the 10th & Charnel ton site. Preferred development teams will possess the following: 1. Experience with successful developments in urban areas. 2. Track record of superior architectural design. 3. Strong relationships with key tenants. 4. Access to financial resources consistent with project requirements. 5. Experience with public/private development. Request for Proposals 10th & Charnelton Development Site 7 Urban Design The 10th & Charnelton development site is located in the core of downtown Eugene. The design of the project should create an inviting urban experience and strengthen the overall desirability of downtown in the regional marketplace. Preferred projects will include design elements that provide an interesting and inviting pedestrian realm such as the following: 1. Use of high quality materials, particularly on the first floor. 2. Provide prominent entries facing public streets. 3. Place buildings close to the sidewalk. 4. Provide details and ornamentation, such as tall first floor; multiple windows, openings, and entries; awnings and overhangs. 5. Respect and compliment the character of adjacent buildings. 6. Provide special treatment of structured parking (if proposed), including embedded or underground with no sloping of the parking structure visible from the street. 7. Incorporate works of public art. Active Uses The Vision for downtown Eugene includes a diverse mix of retail, office, entertainment, civic and residential uses that energize and enliven the streets. Preferred projects will include uses such as: 1. Active ground floors, such as retail and active office. 2. Dense residential, particularly ownership housing. 3. Major employment center for high~quality jobs. Sustainable Development Eugene seeks to meet its present environmental, economic, and social needs without compromising the ability of future generations to meet their own needs. Preferred projects will include the following sustainable development components: 1. Multi~story, efficient use of the development site. 2. Energy conservation features such as Leadership in Energy and Environmental Design (LEED) standards and green building features. 3. If housing is proposed, inclusion of affordable units. Timeliness Key public investments have been made in the area immediately adjacent to the 10th & Charnel ton development site. For the Urban Renewal Agency to maximize these major public investments, preferred projects will include: _/~ -_.,--' .~ ~ -----~ /--- .~ ---~--- ----- Request for Proposals 10th & Cbamelton Development Site 8 1. A commitment to a reasonable, specific time line for development of the site. 2. Demonstration of financial capacity, tenant commitments and other project details that assure development of the site in a timely manner. Financial Feasibility The Urban Renewal Agency is seeking a well-conceived, financially feasible project. Preferred projects will include the following: 1. Evidence of market feasibility. 2.' Accurate and reliable cost estimate for the project development and operation. 3. Evidence of financing commitments for the project. 4. Demonstated track record of completing similar projects within budget. Net Financial CostjBenefit The Urban Renewal Agency will consider the overall public benefit provided by a project, including the financial impact that the project will have in the Downtown Urban Renewal District. Preferred projects will include the following: 1. Purchase price reflecting the fair market value of the site. 2. Increased assessed value within the district. 3. Positive financial return to the district, net of any public costs for the project -,------,---~ --------- -------....-----...;. ...------ ~.~/-- _.-------~ -------.--- Request for Proposals 10th &. Chamelton Development Site 9 SUBMISSION REQUIREMENTS A. Development Team Identification and Experience 1. Provide the name, address, telephone numbers, and e-mail addresses of the development team. Identify the principal person(s) within the development team authorized to negotiate on its behalf. 2. Identify and describe any relationship the development team may have with subsidiaries, joint venture partners, or others who are significant to the project. 3. Provide documentation demonstrating that the development team is qualified to undertake the proposed project including: a. Resumes of key development team members; b. Experience with projects similar to the proposed project; c. Experience with developments in urban areas; d. Experience with public/private development; e. Examples, including images, of prior projects that demonstrate high-quality architectural design and urban design; and f. Access to financial resources consistent with the project requirements. B. Development Proposal 1. Provide a detailed description of the proposed project including identification of the proposed mix of uses and how they meet the urban design, active uses, and sustainable development objectives for the site. 2. Provide graphic information including site plans, elevations and floor plans containing sufficient detail to show the scale, scope, size, and mix of project elements at a scale and level of detail necessary to demonstrate conformance with the development objectives for the site. 3. Provide a preliminary schedule for development of the proposed project which addresses, at a minimum, property acquisition, design and preparation of plans, commencement of construction, and completion of construction. The schedule should provide for development in a logical and expeditious manner. 4. If the project requires acquisition of other properties or agreements with other property owners, provide evidence that these properties can be acquired or that relevant agreements have been initiated. "-_.-'-~-- --_..~ ...'----- ""--------- ~-- Request for Proposals 10th & Chamelton Development Site 10 C. Financing Plan and Financial Capability 1. Provide a proposed financing plan for the project based on and including development and operating pro forma budgets. Include assumptions used in preparing the financing plan. 2. Provide evidence of prior ability to finance and complete similar project,> and evidence of private financing commitments for the proposed project. 3. Provide a statement indicating willingness to submit corporate financial statements or other documents indicating the financial condition of the development team. D. Purchase Offer 1. Provide the amount and terms of the offer to purchase the 10th & Charnelton development site. 2. Describe any public assistance that is being requested for the proposed project. --.---....-.-' ~ .. ""...~ --..;..;..:---":~. ,.~..........--~ ~~ ~ ---- Request for Proposals 10tb Be Cbamelton Development Site 11 SELECTION PROCESS AND SCHEDULE The Urban Renewal Agency will conduct a fair and impartial process for the selection of a purchaser/developer based upon satisfaction ofthe development objectives in this RFP. The Urban Renewal Agency may utilize a combination of City of Eugene staff and professional third parties in the review process. Following the review of the proposals, some or all of the respondents may be interviewed or contacted to provide clarification or amplification of the material submitted. Eugene City Council, acting as the Urban Renewal Agency, will select a purchaser/developer for the loth & Charnelton development site who will be expected to enter into exclusive negotiations with the Urban Renewal Agency for purposes of negotiating a definitive disposition and development agreement. The Urban Renewal Agency may elect to reject all proposals. Preliminary Schedule The project selection process is expected to be completed in the early-Fall of 2006. This time period does not include negotiation of the disposition and development agreement. The preliminary schedule for the selection is as follows: Urban Renewal Agency issues Request for Proposals Responses to RFP due Staff review of proposals complete Interviews/supplemental information requests due City Council (URA) review of proposals Selection of project by URA May 31, 2006 August 1, 2006 August 15, 2006 August 30, 2006 September 2006 September-October 2006 OTHER INFORMATION The development objectives listed in this RFP will be used for evaluation of the proposal. All or part of the objectives mayor may not be implemented in the final agreement with the chosen purchaser! developer. The Urban Renewal Agency reserves the right to negotiate details within the objectives after acceptance of the proposal and prior to the final agreement. The Urban Renewal Agency also reserves the right to modify the selection process or other aspects of this development offering, at its sole discretion. The Urban Renewal Agency reserves the right to accept proposals, even if the respondent has not submitted all information in referenced in this RFP. The Urban Renewal Agency reserves the right to reject all submittals in response to this RFP, without cause. -_.-/~ ------.--~'- ,----~ -----.~ -----~...-- -------- ----- Request for Proposals 10th 8t Cbamelton Development Site 12 In the interest of a fair and equitable selection process, the Urban Renewal Agency retains the sole responsibility to determine the timing, arrangement, and method of proposal presentations throughout the selection process. Respondents are cautioned not to undertake any activities or actions to promote or advertise their proposal except in the course of authorized presentations. All facts and opinions stated in this RFP and all supporting documents and data are based upon information available from a variety of sources. No representation or warranty is made with respect thereto. ,----'~ --... -,--'- .~..-- -----~ /- .~..----- ~-- ~ .--- Request for Proposals 10th & Cbamelton Development Site 13 APPENDICES A. Downtown Tools and Incentives B. Area Map C. Site Map D. Site Aerial E. Plat Map F. Area Profile ---~,-_.-~ ~~ Request for Proposals 10th & Cbamelton Development Site 14 Appendix A DOWNTOWN TOOLS AND INCENTIVES Vertical Housing Development Zone The 10th & Charnelton development site is located within the Downtown Eugene Vertical Housing Development Zone. Established under state law, Vertical Housing Development Zones encourage mixed-use projects that provide dense urban-style development or redevelopment. Specifically, an eligible project consists of ground-level commercial with one or more upper floors of residential housing that has been newly constructed, reconstructed or rehabilitated. The program offers a la-year property tax exemption on the new structure, or incremental change in the property value of the building that comprises the project. The program grants a tax exemption of 20% for each floor of housing that is incorporated above ground floor commercial, with a maximum tax exemption of 80% for any single project. Tax exemption requests are reviewed and approved by the State of Oregon. The exemption is effective upon initial occupancy or re-occupancy. Multi-Unit Property Tax Exemption The 10th & Chamelton development site is located within the Multi-Unit Property Tax Exemption (MUPTE) boundary. The MUPTE program is enabled under state law to stimulate the construction of multi-unit housing in the core area and to ensure use of the core area as a place where citizens have the opportunity to live as well as work. Projects eligible for the tax exemption include construction, addition, or conversion of rental or ownership multi-unit housing. The MUPTE program offers a property tax exemption on the new structure or incremental change in the property value of the building that results from the project, for a maximum of 10 years. Projects are required to address specific quality standards established in the program. Tax exemption requests are reviewed and approved by the Eugene Gty CounciL Brownfield Economic Development Initiative/HUD Section 108 The City of Eugene has been awarded a $2 million Brownfield Economic Development Initiative (BEDI) grantto assist with redevelopment of abandoned, idled and underused properties within the Downtown and Riverfront urban renewal districts. BEDI funds must be used in conjunction with, and for projects financed with, a new HUD Section 108 guaranteed loan commitment. Section 108 provides communities with a sotlrce of financing --,_/...~~ ~--,--~ /- .~ .----.- -'" Request for Proposals 10th & Cbamelton Development Site 15 to support large-scale economic development, housing rehabilitation, and public facility projects. The City of Eugene is in the process of finalizing a Section 108 borrowing that will be combined with BEDI grant funds to create a loan pool that will be available to assist downtown redevelopment projects. Downtown Urban Renewal District The l(}th & Charnelton development site is located within the Downtown Urban Renewal District. The district utilizes tax increment financing resources to stimulate private investment within the district Urban renewal projects include property acquisition, public infrastructure, public amenities, and other improvement projects that enhance the form and function of downtown. Parking The 10th & Charnel ton development site is located within a parking exempt zone; therefore, on-site parking is not required. There are three large public structured parking facilities located within less than two blocks of the site, including the 740-space Broadway Place structure at Broadway and Charnelton Street, the 596-space Overpark at 10th A venue and Oak Street, and the 438-space Parcade at 8th Avenue and Willamette Street. The City of Eugene offers monthly parking permit discounts up to 30% for bulk purchases. Downtown Revitalization Loan Program The Downtown Revitalization Loan Program is a flexible financing program designed to encourage investments within the Downtown Urban Renewal District that contribute to the economic vibrancy and density goals for downtown. The program is also designed to be responsive to unique redevelopment opportunities, specific downtown redevelopment challenges, and specific individual project financing needs. Downtown Service District The 10th & Chamelton development site is located within the Downtown Service District The Service District provides an enhanced level of maintenance and security services. Property owners within the Service District are assessed a service fee of approximately $0.01 per square foot per month of occupied floor space. Housing is exempt from the service fee. -----~ .-..../,,-- ...... . .~ _---..~/- ..---- ~..-- ~ ---------------- Request for Proposals 10th Be Cbarnelton Development Site 16 C) rw-c- .....+ ~~ j ~ (f) i . .... . c::~ (lj f': Ei o ~ (lj o r:::: o .... .... (lj E (!j ..c:: U ~ .fi o rl $4 ~"'Mlt"t*rw" g " "" '" ,~ ". <- t: ., >.. ,~ t" @ " % frJ Is;' h, i t l~ : ... ! ~~ i ~ t::: : ~l... rf ~ .!i t ., ~ '" e? "'" '. ....~ ;< ~@ ~ ..s 00 '$ M lS UO.JfY.lU.ll?'lD p..! ml ~t ~t <::l)l lo-t < = .?S -.,j ~ t. ~ < ____.____________m_..m______________mmm___ L______________________ m "<<' m: .->>. W Qj .... .,... f.Jj ~ (l) E o ~ Q.I o '* @. 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" I .08 N I I" .l- j) ""....;s-l~'->:.; n ,~~.< ; ~ w!;\! ~ t - * j ~ ~] ~ gl E C.'... .J · ~~ : ~i.O.'i~ . ;09" i=-' 1 ",0 ~ .%;.... .~ -.-......-----------,.....-------.. ......... \..:< t-... .v ,.... ~ P1hn- '<t" ~J 2:, Wi ~, ~l ~l o ,...0 '(jU') N c.O go V N ..- ..!:;11< e :E . o~ o IOv <O~ --<,;;~'------::-7r-l . ./ . <::.-." i r""""""]>'::\) /J ,: e,: / L'~ I~ I~ '~; ii.9 8iiO t..........................,:O ", ('\I ,09 ~ .,"~ Q:" ~',", ....;t J ,,-, "i! tnnn_________.____u_____________________u______________u_u____u________________________n_____nn_____nnn___n_____________.._.~_n___.__ Appendix F AREA PROFILE RECENT DOWNTOWN DEVELOPMENT PROJECTS Broadway Place The Broadway Place mixed-use project includes 170 units of residential apartments constructed over a 740 stall publicly- owned parking garage. The active ground floor includes 14,000 square-feet of commercial space occupied by a mix of retail, restaurant, and office uses. The market-rate apartments range in size from studio lofts to twcrbedroom units. This unique publicI private partnership is a major anchor for the downtown core area. Downtown Public Library The new Eugene Public Library is an architectural showpiece and civic landmark for Downtown. The 94,000 square-foot, $36 million library opened in December 2002. With an estimated 3,000 visitors per day, the new library has become a magnet for activity in the downtown. ---~. -~ ~ ~ ~- ~~.- ----- /'.. .~ ....-.-,..;....~_.- b Request for Proposals 10th & Charnelton Development Site 17 Broadway Street Reopening In the early 1970s, several blocks of Downtown streets were closed to automobile traffic and converted to a pedestrian mall. Like many other communities that experimented with downtown pedestrian malls, Eugene experienced a steady decline in commercial activity within the mall. In September 2002, the remaining three block.c; of the former pedestrian mall on Broadway were reopened to automobile traffic. Landscaping, street furniture, art, surface treatments, narrow travel lanes, and other design elements have been used to transform Broadway into one of Downtown's IIGreat Streets." Aurora Building Apartments In 2003, St. Vincent dePaul Society of Lane County completed a $7.5 million mixed-use development that includes 54 apartments with ground floor commercial retail. The Aurora Building, located at 11th Avenue and Oak Street, provides affordable housing in a downtown setting close to urban services and transportation. The Aurora features a unique geothermal heating and cooling system. ,--'--~ .~ ______..----C" <~- ~--/~--..... ~-~- RequestforPro~s IOtlt & Chamelton Development Site 18 DO"\tVNTOWN DEVELOPMENT PROJECTS UNDERWAY Wayne Morse Federal Courthouse The General Services Administration is nearing completion of the new 250,000 square-foot, $80 million federal courthouse. The City of Eugene assembled approximately nine acres near the Willamette River to accommodate the new courthouse and adjacent development. The courthouse will be a landmark development for Downtown and is the catalyst for the vision to reconnect Downtown to the Willamette River. Construction of the new courthouse is scheduled to be completed in October 2006. Tate Condominiums The Tate Condominiums, a pioneering 47-unit downtown housing development is currently under construction. The City of Eugene sold a 0.8 acre surface parking lot for development of a mid-rise condominium project at the southern edge of Downtown. The market-rate residential condominiums are expected to sell in the $250 - $400,000 range. Construction is scheduled for completion in Fall 2006. --'~ ------.- ~ ,...----... -~~' ..?~-"-_:-=--.....-:' ------------ ~ ---- Request for Proposals 10th & Charnelton Development Site 19 LTD EmXj Bus Rapid Transit Eugene is implementing one of the most ambitious Bus Rapid Transit (ERT) systems in the country called the Emerald Express, or EmX. The first segment is underway and will provide a four-mile link from Downtown Eugene past the University of Oregon campus to Downtown Springfield. Named one of the Federal Transit Administration's ten national BRT demonstration projects, Eugene's first BRT segment is scheduled for completion in 2006. _.-./---~ --------- ---------:::' ...------ -""'-- Request for Proposals 10UJ &. Chamelton Development Site 20 PLANNED DOWNTOWN DEVELOPMENT PROJECTS Whole Foods Market Whole Foods Market has plans to locate a 52,000 square foot store in Downtown as part of a full-block development on East Broadway. Whole Foods will incorporate twQ levels of parking above the store. This $25 million public/private partnership will also include an adjacent public parking garage with ground floor commercial space. Whole Foods is anticipated to become a major anchor for future development in the East Broadway district and to playa critical role in the enhancement of Downtown's connection to the Willamette River. WestTown on 8th The City of Eugene recently transferred ownership of a downtown development site to Metropolitan Affordable Housing Corporation to construct 111 apartment units in a six story building. The site is located on 8th A venue, between Charnelton Street and Lincoln Street, adjacent to the WOW Hall performing arts venue. The $15.8 million project will also include nine live-work units along 8th Avenue and seventy-four embedded parking spaces. The mixed-income housing project will begin construction in Fall 2006. _.r-'~_"-~ ________ ~- ~- _.~.......... ...... ---------------.-......-...-.~ ~ ;, ) Request for Froposals 10th & ChameIton Development Site 21 Criteria for Proposal Evaluation (1999 RFP) ATTACHMENTB The sale of the Sears site presents an opportunity for new development at a prominent location in an increasingly vital area of dov,ntown. TIle block is surrounded by a \vide vari- ety of uses, including civic, residential, retail and office. There is an existing strong pattem of pedestrian activity, particularly on Broadway and Olive, v.rith active first floor uses on sur- rounding blocks. The overall concept for this block is a mixed-use, urban block development, designed to encourage a lively, active pedes- trian realm. With this goal in mind, new development should include retail or residential on the ground floor to generate pedestrian activity compatible v'lith the dovvnto\:vn environ- ment. Parking is encouraged but not required. Ifit is pro- vided for new construction, it must not be visible along the ground floor. The design of the first floor of any new struc- tures on tins block is critical; use of quality materials and ar- chitectural details that provide elements of scale and visual interest is essential. The Sears site is adjacent to an area of significant public in- vestment, including the future site of the new public library, the recently completed Lane Transit District transit station, Broadway Place, and the city-ovmed AtriLIDlbuilding. Any development on this block must reflect and support these in- vestments, v,ith ahigh level of architectural quality on all street sides. The relationship of the new development to the planned new Eugene public library should be carefully considered. Proposals will be considered for portions of the block or the entire block, and for new construction or rehabilitation. The Urban Renewal Agency acknowledges the barriers to devel- oping aftordable housing while recognizing its importance. If housing is proposed, efforts to incorporate a mix of home ownership and income types is encouraged. For all projects, incorporation of energy conservation measures beyond re- quired code provisions is similarly encouraged. The Urban Renewal Agency encourages creativity in design of the project and intends to allo\\' flexibility in the develop- ment of the site, provided that the proposal is consistent with the criteria provided in this RFP. Ground floor retail; active pedestrian realm New Eugene public library (preliminary design) Display windows 11 Tall first floor The following criteria will he used to evaluate proposals: 1. Planning and Design Criteria These elements are preferred in any proposal: o More than 2/3 ground floor retail frontage or residential frontage. o Residential use (ground floor or upper levels) Mixed income type and ownership is encouraged. o Structured (embedded) parking. o Uses which allow nighttime activities, such as a restaurant or theater, particularly on Broadway (if full block development is proposed) or Olive. o Incorporation of energy conservation measures. These elements are required in any proposal: o Minimum 2/3 ground floor retail frontage or residential frontage for new construction. o High quality pedestrian environment, including elements such as: . Multiple openings, including windows or entries; . Prominent entries; . Use of high quality materials; . Pedestrian-scaled details and ornamentation; . Display \'\-indows, either projecting or flush \vith the building face; . Awnings/overhangs; . Tall first floor: . Special comer treatment, such as architectural features or prominent comer entry at Olive Street and 10th Avenue. . Inclusion of outdoor public space, such as a plaza, courtyard or informal performance area. o Elements of scale and articulation; maximum length of 1/3-block face as an unarticulated streetwall \vithout architectural elements such as bays, recesses, pilasters, etc. o Multi-story building for ne\v construction. 12 D Solar access; 1/3 of Broadway to receive sunlight at noon on the vernal equinox. D Service/loading access located interior to the site (visibility minimized from sidewalk). o Build to line for new construction; 3/4 of the structure must be on or near the property line. D If provided for new construction, parking must be underground or embedded; multi~level parking permitted; no sloping of parking structure visible from the street. o Access to parking from Charnelton Street or Olive Street. o If existing surface parking lot continues to be used for parking, the lot must be landscaped and screened on the perimeter. Expansion of surface parking not permitted. These elements are discouraged in any proposal: o Surfac.e Parking. 2. Scale of the project o Total private investment. a Density - total square feet of new construction! redevelopment. o Project area - project could include Urban Renewal Agency parcels only, assemblage of adjacent property, redevelopment of entire block, or multiple blocks. o Larger scale of project preferred. 3. Net Public Benefit/Cost o Competitiveness of purchase price, net of any public costs such as housing tax exemption or parking. o Purchase could include cash or equivalent value (for example; land swap). Elements of scale and articulation 13 4. Timeliness Q Willingness to commit to a specific time Hne for redevelopment a Shorter time frame is preferred. 5. Developer Strengths a Developer experience, demonstrated track record for similar projects. Q Market and financing feasibility of the project. 14 Required Components of Proposal 1. Development Concept . Purchase price and proposed terms . Written description of project . Explain how project responds to the planning and design criteria. . Evidence of market feasibility . Timetable for development . Parking needs/plans . Any public participation requested 2. Development Plan . Area figure/ground diagram for 9 blocks (See Appendix B for base map) . Site plan with adjacent buildings represented (1"=30') . Elevations (1"::::::: 30')\vithadjacent buildings represented and sufficient detail or additional drawings to demonstrate compatibility \\-1th planning and design criteria 3. Financial . Sources and uses of financing . Corporate and individual financial statements (confidential) . Operating pro fonna (10 years) . Bank or other reference letter( s) 4. Developer Experience . Resumes of principals . Identification of developmentteam including resumes and relevant background . Descriptions/pictures of other similar projects 15 ATTACHMENT C Updated RFP Response Criteria (2002) loth and Chamelton (Sears Building) Downtown Development Site Submission Due Date: January 3, 2003 . It is the intent of the Urban Renewal Agency of the City of Eugene to enter into a purchase and sale agreement with a developer or development team that would undertake all components (Le., financial, construction, operation, etc.) of a development proposal for the 10th and Chamelton (Sears Building) downtown development site. The Agency is seeking proposals from qualified developers or development teams with the experience and resources required to purchase and develop the site, with the goal of maximizing the site's potential through exemplary design and high density. The 10th and Chamelton site is adjacent to an area of significant public investment, including the new $30 million Eugene Public Library, the Lane Transit District transit station, Broadway Place, and the Broadway street reopening. Any development on this block must reflect and support these investments. The relationship of the new development to the new Eugene Public Library should be carefully considered. Proposals may include assemblage and redevelopment of other adjacent properties, and may include new construction or rehabilitation. The Urban Renewal Agency encourages creativity in design of the project and intends to allow flexibility in the development of the site The Urban Renewal Agency will conduct the purchaser/developer selection process. The Agency is the sole and final decision~maker regarding this selection, and reserves the right to reject any or all responses. The Agency will evaluate the responses to this RFP as submitted. The Agency reserves the right to investigate the reputation, financial capacity, skill, and experience of each respondent to this RFP. In order for the City of Eugene to efficiently evaluate the responses to this RFP, respondents should provide complete and concise responses to the following criteria in the order listed (clearly label your response with the corresponding number/letter for each criteria listed below): 1. Developer or Development Team Identification and Management Approach A. Describe the make-up of the team that would be involved in the development of the site, (Le., developer, architect, etc.). Include background and qualifications and the role that each will play. 2. Relevant Project Experience A. Describe your relevant experience and involvement in real estate development projects. B. Provide specific examples of relevant projects, including name and address of project and project contact, proj~ct photos, brief project description, and the respondent's role in the project. 3. Planning and Design A. Describe your approach to development of the site, including the type and scale of the development. (Site plans and conceptual images are encouraged) B. Provide a statement outlining the developer's or development team's readiness to proceed with the purchase and development of the site. The statement should include a preliminary timetable for the project. 4. Financial Capacity A. Identify the estimated project cost and potential sources of equity and debt financing for the purchase and development of the site. 5. Purchase Price A. Provide your proposed purchase price (cash or equivalent value) for the 10th and Charnelton development site. (The City of Eugene is under no obligation to accept the highest offer.) B. Identify any special terms or conditions that you would be seeking for the purchase and development of the site. :':=