Request for Proposals

12th Street Remainder Parcel

December 20, 2012

Request for Proposals

12 Street Remainder Parcel
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TABLE OF CONTENTS

INTRODUCTION ---------------------------------------------------------------------------------- page 2

NOTICE, SELECTION PROCESS & SCHEDULE --------------------------------------- page 2

SUBMITTAL REQUIREMENTS --------------------------------------------------------------- page 3

EVALUATION CRITERIA ----------------------------------------------------------------------- page 5

CITY OF OAKLAND REQUIREMENTS ----------------------------------------------------- page 6

ATTACHMENTS ----------------------------------------------------------------------------------- page 7

1.
2.

Parcel Map: 12th Street Remainder Parcel----------------------------------------- page 8

Proposed Project Submittal Summary Form--------------------------------------- page 9

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A.

INTRODUCTION

The City is seeking a qualified and interested developer to purchase and develop the "12th Street
Remainder Parcel. After a review of Letters of Interests for the 12th Street Remainder Parcel at the
Closed Session meeting of the City Council on December 4th 2012, the City Council thought a couple
proposals showed merit and should be looked at in more detail. In order to be fair, the Council directed
staff issue a mini Request for Proposals (RFP) to all parties that have shown interest in the site.

B.

NOTICE, SELECTION PROCESS & SCHEDULE

The process begins with the issuance of this mini RFP to those parties who have shown interest in
development of the 12th Street Remainder Parcel. This solicitation has a fixed submission date, after
which all proposals are evaluated and ranked. Staff will return to Closed Session to get City Council
direction before selection of a developer to move through the exclusive negotiating process. It is
estimated that May 2013 would be the earliest that an Exclusive Negotiating Agreement (ENA) could be
approved.
Respondents to this solicitation should submit a specific purchase offer. The City does not intend to provide
monetary assistance. However, there may be public participation through land write-downs, demolition of
existing structures, and/or assistance with potential environmental remediation of the site. If the City
discounts the land price (i.e. sells the property for less than its Fair Market Value based on a MAI
appraisal), or provides any other direct or indirect subsidy, the project will be subject to the following City
of Oakland employment and contracting programs:

20% Local and Small Local For Profit and Not For Profit Business Enterprise Program
50% Local Employment Program
15% Oakland Apprenticeship Program
Payment of Prevailing Wages
City of Oakland Living Wage Ordinance
City of Oakland Equal Benefits Ordinance
Electronic Certified Payroll Submittals

The City is seeking to identify the most qualified developer with the capacity to plan, finance and
implement the project. Respondents to this RFP are asked to submit a detailed development proposal for
the selected property in keeping with the goals and design criteria described in this solicitation. From the
proposals submitted, the City will be interested in: the development teams previous development
experience; financial capacity to fund the project; general development approach; and design concept.
Respondents to this solicitation must be able to demonstrate the following minimum qualifications:
Knowledge and qualified experience in economic and market analysis, real estate development
for commercial and/or residential projects, community planning, urban design, and
environmental review;
A proven track record;
Evidence of un-leveraged resources to acquire either one or more parcels in one acquisition
takedown;
Experience in working with public agencies to obtain necessary entitlements; current capacity
and financial resources to construct the proposed development(s) within a reasonable timeframe
without City assistance;
Experience in operation and management of commercial development projects similar to the
one(s) proposed in response to this solicitation; and
Disclosure of applicants intent to hold or resale property once the project has been completed.

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C.

SUBMITTAL REQUIREMENTS

Responses to this RFP are due by 3:00 p.m. on Friday, February 15, 2013. All packages should
contain a transmittal letter and five (5) copies of the complete response. Packages should be directed to
the following address only:
City of Oakland
Office of Neighborhood Investment
250 Frank H. Ogawa Plaza, Suite 5313
Oakland, CA. 94612
Attention: Patrick Lane
During the evaluation period, City staff may request written clarifications of proposals and may, at their sole
discretion, hold discussions with all or any of the development teams under serious consideration.
The submission requirements are indicated below. Provide five (5) copies of the proposal . In order to
facilitate review by the City staff, please submit materials under clearly labeled tabs for each section and
subsection.
1. Introduction
a) A cover letter, executed by an authorized signatory of your firm or the individual developer
submitting the proposal.
b) Summary Form (See Attachment 2), identifying the development team members, including
all known joint venture or limited partners, architects, engineers, financial institutions and
contractors. The form should include the contact name, company, address, telephone
number, fax number, and e-mail address of a representative authorized to act on behalf of
the development entity. The form should also include the purchase offer, a brief description
of the project (number of units, square feet of commercial or other space, parking spaces,
total square feet of project, building height, construction type, etc.) and a checklist of
attachments.
2. Qualifications and Experience of Development Team
a) A brief description of each team members recent development experience. This
experience should include at least three (3) developments similar to the project proposed in
response to this RFP in which the developer took the lead. Be specific and indicate a
reference for each team member.
b) Previous relevant project experience for each participating team member. Identify projects
built or renovated for developer investment, for a fee, or under some other structure.
Specifically describe project experience that involved partnerships, joint ventures or
working structures with public agencies or government entities. Include photographs and
project profile (date, location, concept, land uses, size, construction cost, reference
contacts, etc.) For those where public assistance was required, please specify the amount
initially planned and requested and any subsequent requests detailing out the nature of any
subsequent requests and over-runs.
c) A list of judgments, past and present, and pending litigation regarding development projects
that any development team members are involved, and any other litigation with the
likelihood of a material adverse impact on developer's financial condition and ability to
complete the project.

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3. Project Financial Resources

a) Developer shall provide a signed letter on Company letterhead indicating that the
development team has the capacity and sufficient financial resources to undertake,
complete, operate and manage the proposed development. As a note: Developer
selected to move forward through the exclusive negotiation process will be asked to
provide Company financials which will be reviewed and evaluated by a third party
consultant to the Agency. The consultants findings of reasonableness will
become subject to public information.
b) Developer shall disclose information related to work with any other city or redevelopment
agency in California. If so, developer shall provide specific letters of reference from the city
or agency related to developers participation and performance.
c) Developer shall provide conceptual project pro forma for pre-development, construction
and operations.
i. Provide detailed construction and design cost estimates and detailed revenue
projections, and the basis for your market projections; e.g. market study, analysis of
comparables, etc.
ii. Provide ten-year sources and uses cash flow projection.
iii. If the project is to be phased, provide phased sources and uses of funds statements.
iv. Sources of funding statement should discuss the proposed amount of equity funding,
the amount of debt funding required, and source of debt service for any debt funding.
v. Funding gaps should be clearly identified (if any).
d) A development schedule, indicating time frame the development will be completed.
e) A property management plan or sales plan. Developers proposing workforce, market rate
or senior housing components should also include a tenant services plan.
4. Project Design
a) A project description and conceptual architectural plan, including floor plan and
elevations. Indicate the number of housing units and the location and layout of any
ground floor retail or other non-residential use, as well as parking.

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D.

EVALUATION CRITERIA

The nature of the proposed project and the proposed land purchase price will both be major selection
criteria; however, the selection process will also weigh additional City objectives such as how well the
project serves the public interest. The City will use the following criteria in assessing developer proposals.
1. Experience of Developer Team and Key Individuals
a)
b)
c)
d)

Success in projects of similar type, with particular emphasis on urban areas.

Record of completing a minimum of three (3) developments on budget and on schedule.
Project experience with local governments and other public agencies.
Demonstrated success in maintaining high quality, efficiently operated projects.

3. Financial Capacity
a) Evidence of development team capacity to either have or ability to raise sufficient
equity/debt capital to carry the project to completion.
b) Financial strength of developer(s) and other team members. Please be specific and
include financing references where appropriate.
c) Commitment and ability to fund pre-development activities.
4. Project Design
a) Project description and conceptual architectural plans, floor plan and elevations.
b) For commercial development programs: gross building square feet; number of stories
and the number of on-site parking (below, above or at grade).
c) For residential development programs: for workforce housing, market rate housing or
senior housing, please provide total building square feet, number of bedrooms,
bathrooms, common areas as well as the number of on-site parking (below, above or at
grade).
5. Project Financial Feasibility
a) Proposed purchase price.
b) Financial feasibility of proposed project, given development costs, financing structure,
pro-forma rents or sales prices, and market analysis.
c) Development schedule: Time frame the development will be completed.
d) Property management plan or sales plan as appropriate.
6. Community and Public Objectives
a) Demonstrated ability to work with the community to develop designs that are sensitive to
the architectural environment.
b) Developers are encouraged to incorporate green building and energy efficient
components in the design of their projects.
If a subsidy or land write-down is requested, the following criteria also apply:
c) Demonstrated success in complying with Local and Small Business participation
requirements. These programs are available from the Contract Compliance Office of the
City Administrators Office.
d) Evidence of initiative and creativity to cooperate with the City to achieve community
investment, to support Hire Oakland goals, and other public policy goals, as applicable by
law.
7. Other Factors as Appropriate (Other relevant considerations developer would like the City to
know)

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E.

CITY OF OAKLAND REQUIREMENTS

The following City requirements are APPLICABLE TO ALL PROPOSALS:

1. Environmental
Prior to execution of a DDA, projects must be assessed in accordance with the California
Environmental Quality Act (CEQA).
2. Nondiscrimination
All recipients of this RFP must agree not to discriminate on the basis of race, color, ancestry,
national origin, religion, sex, sexual preference, age, marital status, family status, source of
income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or
AIDS-related conditions (ARC), or any other arbitrary basis.
3. Conflict of Interest
No public official of the City who participates in the decision-making process concerning a
project may have or receive a direct or indirect economic interest in the developer or the
project.
RFP recipients are responsible for ensuring that such conflicts of interest do not occur.
4. Public Records
Applicants should understand that under the California Public Records Act and the Citys
Sunshine Ordinance, all documents that are submitted in response to this RFP including
financial information, are considered public records and will be made available to the public
upon request.
The following City Requirements are APPLICABLE IF ANY PUBLIC SUBSIDY IS PROVIDED,
including a land write-down:
1. Prevailing Wage
Projects will be subject to the Citys prevailing wage policy, which requires all workers
performing construction work on a project be paid prevailing wages as determined under the
California Labor Code and implementing regulations.
2. Contracting and Employment Requirements
All respondents to this RFP are required to comply with the City of Oaklands Local/Small
Local Business Enterprise Professional Services Program, Local/Small Local Business
Enterprise Construction Program, and Local Employment Program, including requiring that
contractors and subcontractors comply with these requirements.
3. Living Wage Ordinance
The Citys Living Wage Policy requires that, unless specific exemptions apply, all recipients of
$100,000 or more in any twelve-month period from the City (including recipients of land write
downs), shall pay employees a minimum of $10.83 per hour. That rate applies if health
benefits of at least $1.62 per hour are offered. If no health benefits are offered, a pay rate of
$12.45 per hour is required. Such rates shall be adjusted annually pursuant the terms of the
Citys Living Wage Ordinance. These requirements will also apply to service contractors
who receive service contracts of $25,000 or more.

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Under the provisions of this Policy, the City shall have the authority, under appropriate
circumstances, to terminate and seek remedies as set forth therein for violations of the
Policy.
Applicants are strongly encouraged to contact the Contract Compliance and
Employment Services Division at (510) 238-3970 for specific requirements of the Citys
contracting and employment programs.

F.

ATTACHMENTS
1. Parcel Map
2. Proposed Project Submittal Summary Form

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ATTACHMENT NO. 1
Parcel Map

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ATTACHMENT NO. 2
Proposed Project Submittal Summary Form

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PROPOSED PROJECT SUBMITTAL SUMMARY FORM

Instructions: In order to facilitate review, please fill out this first page to be used as a cover sheet. Additional materials
requested on Page 2 should be organized in keeping with the format outlined below: i.e. identifying each item by
number and letter. Tabs for each section and subsection are required, e.g. II, III, IV, V.A., VI.C.1., etc..

I.

PROJECT SITE: 12th Street Remainder Parcel, Oakland, CA

II.

PROPOSED PROJECT DESCRIPTION Include number of units, parking spaces, total square feet of
project, square feet of commercial or other space, building height, construction type, etc.. Please use
additional sheets if necessary:

III.

PURCHASE OFFER:

IV.

DEVELOPMENT TEAM Identify the development team members, including all known joint venture or limited
partners, architects, engineers, financial institutions and contractors:
Developer

Architect

Contact Name:

Contact Name:

Company:

Company:

Address:

Address:

Telephone:

Telephone:

Fax:

Fax:

E-mail:

E-mail:

Website:

Website:

Contractor

Other

Contact Name:

Contact Name:

Company:

Company:

Address:

Address:

Telephone:

Telephone:

Fax:

Fax:

E-mail:

E-mail:

Website:

Website:

Proposed Project Submittal Summary Form: 12th Street Remainder Parcel

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V.

QUALIFICATIONS AND EXPERIENCE OF DEVELOPMENT TEAM

TAB
NUMBER

A. Development Experience. A brief description of each team members recent

development experience. This experience should include at least three (3) developments
similar to the project proposed in which the developer took the lead. Be specific and
indicate a reference for each team member.
B. Previous Projects. Previous relevant project experience for each participating team
member. Identify projects built or renovated for developer investment, for a fee, or under
some other structure. Specifically describe project experience that involved partnerships,
joint ventures or working structures with public agencies or government entities. Include
photographs and project profile (date, location, concept, land uses, size, construction cost,
reference contacts, etc.) For those where public assistance was required, please specify
the amount initially planned and requested and any subsequent requests detailing out the
nature of any subsequent requests and over-runs.
C. List of Judgments/Litigation. A list of judgments, past and present, and pending
litigation regarding development projects that any development team members are
involved, and any other litigation with the likelihood of a material adverse impact on
developer's financial condition and ability to complete the project.
VI.

PROJECT FINANCIAL RESOURCES

A. Evidence of Financial Resources. Developer shall provide a signed letter on Company
letterhead indicating that the development team has the capacity and sufficient financial
resources to undertake, complete, operate and manage the proposed development. As a
note: Developers selected to move forward through the exclusive negotiation process will
be asked to provide Company financials which will be reviewed and evaluated by a third
party consultant to the Agency. The consultants findings of reasonableness will become
subject to public information.
B. City Participation. Developer shall disclose information related to work with any other
city or redevelopment agency in California. If so, developer shall provide specific letters
of reference from the city or agency related to developers participation and performance.
C. Conceptual Pro Forma. Developer shall provide conceptual project pro forma for predevelopment, construction and operations.
(1) Provide detailed construction and design cost estimates and detailed
revenue projections, and the basis for your market projections; e.g. market
study, analysis of comparables, etc.
(2) Provide ten-year sources and uses cash flow projection.
(3) If the project is to be phased, provide phased sources and uses of funds
statements.
(4) Sources of funding statement should discuss the proposed amount of equity
funding, the amount of debt funding required, and source of debt service for
any debt funding.
(5) Funding gaps should be clearly identified (if any).
D. Development Schedule. A development schedule, indicating time frame the
development will be completed.
E. Property Management/Sales Plan. A property management plan or sales plan.
Developers proposing workforce, market rate or senior housing components should also
include a tenant services plan.

VII.

PROJECT DESIGN
A. Description of Project.
B. Conceptual Architectural Plan. Include floor plan and elevations. Indicate the number
of housing units and the location and layout of any ground floor retail or other nonresidential use, as well as parking.

Proposed Project Submittal Summary Form: 12th Street Remainder Parcel

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End of RFP
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