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HomeMy WebLinkAbout1993/07/20-PA RM CITY OF ROSEMOUNT ' EXECUTIVE STTN�iARY FOR ACTION PORT AUTHORITY COMMISSION MEETING DATE: JULY 20, 1993 AGENDA ITEM: REVIEW OF DRAFT REQUEST FOR AGENDA SECTION: PROPOSAL ON MOTEL/RESTAURA.NT OLD BUSINESS PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4 . D. ATTACHMENTS: DRAFT RFP APPROVED BY• At the July 6 meeting the port authority rejected the two proposals the commissioners had received from the first RFP. I was directed to draft a second RFP. Attached please find a copy of that draft (without maps) . You wi11 find the draft is not site specific on our part but requires the proposer to select a specific site. The draft also states that "economy motels" will not be considered for port authority assistance. A twenty-five percent cash equity is also required. Interviews and finalist selection would occur on September 21. At this point I've identified three interested motel developers - all experienced. RECOb�lENDED ACTION: Motion to direct the port authority staff to distribute the request for proposal . PORT AUTHORITY ACTION: MOTEL OR MOTEL/RESTAURANT DEVELOPMENT PROJECT REQUEST FOR PROPOSAL ROSEMOUNT PORT AUTHORITY I. Introduction The Rosemount Port Authority has completed a motel market study through its consultant Chase Brackett, Inc. A copy of that study is attached to and is part of this request for proposal. The market study indicates a favorable climate for motel development in the city. At this time, the Rosemount Port Authority wishes to receive written proposals far the development of a motel or motel and restaurant. This request is not site specif'ic on the part of the Port Authority. The interested individual should select a site and his proposal should indicate whether he or the Port Authority would be responsible for site acquisition. In this regard, the submitted proposal must be site specific on the part of the proposer. The Rosemount Port Authority is not interested in participating in the development of an economy moteL To ensure consideration by the Port Authority, any proposal shall include all requested information outlined in this request far proposaL Attached to and considered part of this proposal are two maps showing 1) the boundaries of the city's pre-1979 T� Increment Finance District and 2) possible sites for the location of the project. II. Final Development The fmal development of this property shall be a 50 unit (minimum) motel or 50 unit (minimum) motel and restaurant. Other retail or service businesses may also be part of the proposed project. III. General Provisions A. The development must meet the City of Rosemount zoning and building code requirements. The usual and customary development review procedures used by the City of Rosemount and the Rosemount Port Authority shall govern the review process of this project. B. A cash escrow of one percent of the above-ground improvements (build'mgs, landscaping, and parking lot) shall be submitted with the proposal. Upon acceptance of the proposal by the city council, the escrow shall be deposited in a non-interest paying account. If the Port Authority later determines for any reason that sufficient progress on the proposal is not being completed and the approval of the proposal is rescinded, the Port Authority will be entitled to keep the full amount of the escrow. Upon issuance of a certificate of occupancy for the project, the escrow shall be refunded in full but without interest. C. A development agreement will be drafted by the Port Authority's legal counsel binding the proposer to complete the project as finally agreed to by the proposer and by the Port Authority. D. The Rosemount Port Authority will consider financial assistance in completing the project. Depending on the project's location, the Port Authority may offer any of the following terms of assistance: l. Tax Increment Financin�. A map attached to and part of this request for proposal shows the boundaries of the "pre-1979" TIF district that includes most of the city's established downtown area. The TIF district expires in 1999 with the last t� payment being for the "first-half" of 2000. Motels and restaurants would both be eligible for this funding source. 2. Port Authorit,y Financing. The Rosemount Port Authority has the ability with city council approval to issue t�able general obligation bonds that may be used to finance a part of the project's development cost. 3. Assessment of Utility Costs. Utility and infrastructure costs may be assessed over a period of ten years. The interest would be at appro�mately two percent above the city's cost. 4. Land Write-Down. If the proposer's site is located on city owned property, the Port Authority may write-down land costs or subordinate its position to permit the proposer to use the land equity to secure private financing. In any event, if public assistance in financing is requested, the proposer shall show a minunum of twenty-five percent cash equity in the project. 2 E. The awarded developer should expect to work closely with the Port Authority and city development staff for the entire duration of this project. F. Upon award of the project, the developer has six months to demonstrate signif'icant progress toward completion of the project satisfactory to the Port Authority. A possible s� month extension is possible at the discretion of the Port Authority. If after s� months the Port Authority deems for whatever reason that insufficient progress has been made, it may, at its volition, rescind the project's approval. This solicitation provides broad outlines for the development in order to allow each developer maximum latitude for creativity and innovation in each proposal. The Port Authority's intent is that this process will heighten the competition and yield the best possible development for the city. IV. Presentation and Award A. Timeline: The Request for Proposals will be Appro�mately mailed and advertised July 22, 1993 Deadline for accepting proposals September 16, 1993 12:01 p.m. Interviews for proposals September 21, 1993 and conditional project selection B. Selection Criteria: The awarded proposal will be based upon: (1) The compatibility of development plans with the Port Authority's wishes for the downtown, the recommendations of the city's Downtown Scoping Committee and the city's comprehensive plan. (2) Developer qualifications to develop the proposed project and especially experience in operating similar projects. (3) Financial backing and strength to develop the proposed project. If proprietary or conf'idential personal information is involved, it may be submitted to the city's financial consultant: David Drown Springsted, Inc. 85 East Seventh Place Suite 100 3 St. Paul, MN 55101 The proprietary and confidential financial information should be received by Springsted Inc. befare 12:01 p.m., September 16, 1993. Springsted will review the information and report to the commissioners, assuring the proper confidentiality of specif'ics. Springsted should be permitted to verify the information provided. (4) Quality of construction, exterior building material selection, and aesthetic treatment of parking and green areas. (5) Project detail provided to the Port Authority in the proposal packet, i.e. the more detail, the better chance the project has of selection. (6) The size and scope of the project. The Port Authority reserves the right to reject any and a11 proposals for any reasons. C. Instructions to Proposers: (1) Ten (10) copies of the development proposal must be received by the Port Authority by September 16, 1993, 12:01 p.m. Proposals received after this date will be returned unopened. (2) Proposals must be addressed to: Mr. Stephan Jilk Executive Director Port Authority City of Rosemount 2875 - 145th Street West Rosemount, MN 55068 Proposals should be clearly marked "Motel - MoteURestaurant Project.° (3) Questions about this RFP may be directed to Mr. John Miller, Economic Development Coordinator, by calling 322-2004 during regular business hours. Questions will be taken until 4:00 p.m., September 15, 1993. (4) Contents of the proposal should include: a. The names and qualif'ications of individuals or companies to be involved in the project. 4 b. General description and narrative of the proposed project. c. Preliminary site lay-out (concept plan) showing the entire site including building location, ingress and egress, and parking lots. d. Preliminary sketch plans of all buildings, including elevations of all sides. e. Statements to the extent possible of the impact the project will have on the community. l. New jobs to be created. 2. Valuation to be added to the city's tax base. 3. Other benefits to the community. f. Breakdown of project space utilization, i.e. bank, office, retail, multiple-family, etc. List all prospective business tenants in the project. Include any letter of intent received from the prospective tenants. g. Timetable for construction including beginning and completion. A project completion flow chart is required. h. Estimated cost for the proposed project. 1. Land 2. Site improvements and fees 3. General construction 4. Leasehold improvements 5. Other soft costs. i. Detailed breakdown of public assistance requested and/or necessary for the project to proceed. j. Financial pro forma for the project. 5