For Sale and - Detroit Economic Growth Corporation

REQUEST FOR QUALIFICATIONS AND PROPOSALS FOR REDEVELOPMENT OF
CHENE NORTH DEVELOPMENT SITE
IN THE EAST RIVERFRONT DISTRICT
DETROIT, MICHIGAN
July 20, 2015
OFFERED BY:
THE ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF DETROIT
INTRODUCTION
In the midst of unprecedented change, Detroit finds there is unmet demand for new residential development, with prime retail, and commercial opportunities in and around Detroit’s
downtown.
A significant opportunity resides at Detroit’s prime riverfront real estate in the East Riverfront District, converting past industrial uses to a pedestrian friendly urban environment with
residential/ mixed use developments, parks and public access to the Detroit River, with its proximity to major thoroughfares, and the adjacent Central Business District.
Located on the eastern edge of downtown Detroit, the East Riverfront District is nestled against the Detroit River, with the General Motors Global Headquarters forming its western
border and established luxury lofts and Belle Isle Park defining its eastern border. Given its strategic location adjacent to waterfront public spaces, the available vacant parcels and the
unoccupied buildings available for adaptive reuse form some of the most exciting opportunities for urban waterfront development in North America.
The City of Detroit completed a comprehensive district plan in September 2004 for the East Riverfront District. The District Plan is a Blueprint for area redevelopment for public and
private investments. Public space investments have already made, including the establishment and operation of the comprehensive greenway network known as the RiverWalk. The
RiverWalk provides public access to the waterfront through pedestrian and bike paths, includes interpretive signage and interactive displays, and is intended to complement and
connect District cafes, destinations, residences, businesses and amenities. The RiverWalk will extend across Detroit’s entire eastern riverfront, from Joe Louis Arena to Gabriel
Richard Park at the entrance Belle Isle Park. Further, the State of Michigan has completed construction of the first three phases of the Milliken State Park, Michigan’s only urban state
park, including a newly renovated transient marina and Outdoor Adventure Center, in the heart of the East Riverfront District. In the Dequindre Greenway, a new bike and pedestrian
pathway is complete and connects the East Riverfront District with Eastern Market, a weekly outdoor farmers market set in a retail district featuring dozens of unique food retailers and
shops.
The Economic Development Corporation has completed the reconstruction of 1 mile of new roads and infrastructure in the west end of the District, and is planning for additional
infrastructure improvements in the District.
Several recent and new private developments are already underway in the District. Orleans Landing, a mixed use, market rate development with 285 rental dwelling units is breaking
ground on five development blocks in the western part of the District. Watersedge at Harbortown, is under construction. When complete in 2015, it will feature 143 rental market rate
dwelling units on the waterfront, and is part of the larger Harbortown community.
Significant private development in the district, and adjacent public investments makes the case for redevelopment of the Chene North site rather compelling.
Purpose of the RFQP
The Economic Development Corporation of the City of Detroit (the “EDC”) and the City of Detroit (“City”) are soliciting statements of qualification and preliminary
redevelopment proposals for ONE vacant parcel in Detroit’s East Riverfront District. EDC intends to retain an experienced and qualified Developer, at the end of the
selection process. Interested parties are invited to submit preliminary development proposals for the offer parcels.
Economic Development Corporation of the
City of Detroit
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Chene North
SITE CONTEXT
New
Center
Greater
Indian
Village
Midtown
Eastern
Market
Woodbridge
Lafayette Park
East Riverfront
District
The East Riverfront District is located just east
of Detroit’s Central Business District and
encompasses approximately 350 acres. It
measures 400 feet from the Detroit River on
the south to Jefferson Avenue on the north.
Jefferson Avenue is a major thoroughfare
connecting Detroit to its eastern suburbs, and
is lined with commercial uses and retail. North
of Jefferson Avenue lays Lafayette Park, a
renowned master planned residential
neighborhood featuring one of the largest
groupings of Mies Van der Rohe buildings in
the United States. To the west of the district is
the General Motors Global Headquarters at the
Renaissance Center, and to the east is highrise luxury development. The district is
bounded to the east by the MacArthur Bridge,
which in turn leads to Belle Isle, a 1,000-acre
island city park designed by Frederick Law
Olmstead.
Belle Isle
Park
Central
Business
District
Corktown
Economic Development Corporation of the
City of Detroit
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Chene North
EAST RIVERFRONT DISTRICT PLAN AND DESIGN GUIDELINES
The City of Detroit retained Cooper Robertson Associates, whose past waterfront planning experience includes the master planning of Battery Park in New York City, to conduct a multidisciplinary district planning process for the East Riverfront District. The District Plan establishes a variety of parameters for future development, ranging from land use to traffic and
circulation, from design standards to development phasing. The District Plan envisions a low-moderate rise, pedestrian-friendly district with mixed residential, retail, office, and public
space uses. Specific design principles such as greenway linkages, pedestrian pathways, and view corridors are incorporated into the plan and are reflected in the conditions of this and
future offering packages.
The District Plan establishes a recommended building height not to exceed 55 feet to remain compatible with the existing low scale of buildings, to encourage filling of blocks at street
level, and to reinforce access to the public open space system. The District Plan also establishes a maximum FAR of 4.5, with initial densities estimated around 40 to 50 dwelling units
per acre. These parameters are established to encourage a pedestrian scaled, walkable urban village environment while encouraging development of multiple parcels at a reasonable
pace. Development proposals will be most favorably considered if they maximize density, and maintain the goals of a walkable urban village with high quality design.
Building character and typologies are not prescribed by the District Plan, but innovative and attractive designs are encouraged. The diversity of design achieved by not prescribing style,
materials, or colors will reflect the existing diversity of design and typologies throughout the District. The District Plan does require that the relationships of buildings and uses on the
development parcels offered in this document reinforce the quality of streets and public space they adjoin. The goal is to locate active occupied and inhabited uses directly along
frontages to streets and open spaces. Accordingly, designs should locate parking, service areas, windowless functions and other “nuisance” uses away from these frontages and
preferably out of public view.
The District is primarily zoned SD4, for riverfront high intensity, residential and commercial mixed use developments. Certain light industrial facilities and businesses still operate in the
area, but heavy industrial uses are inappropriate.
Economic Development Corporation of the
City of Detroit
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Chene North
EAST RIVERFRONT DISTRICT ASSETS
1
2
7
6
4
3
5
The District Plan builds upon a number of existing and planned assets throughout the District that serve as anchors for future development. These include:
1. General Motors World Headquarters at the Renaissance Center, along with River East, a five-block office and mixed-use development that will anchor the western end of the
East Riverfront District
2. Orleans Landing, a mixed use, primarily residential development on five blocks . Includes 290 dwelling units, some retail, and a local activity center.
3. Milliken State Park, the first urban state park in Michigan, and the Detroit RiverWalk
4. Stroh River Place, the Talon Center, and the Roberts Riverwalk Hotel – upscale residential loft, office, restaurant, and hotel developments in historic buildings
5. The GM-UAW Human Resources Center, a joint-venture office building that draws worldwide visitors to Detroit’s Waterfront
6. Harbortown, a mixed high-rise and townhouse development centered on a marina and an established retail complex, which includes a grocery store, a national pharmacy
chain, banks, restaurants, and other amenity retail
7. The former Uniroyal Site, a 43-acre parcel immediately west of the Macarthur Bridge to Belle Isle, which will be redeveloped into a mixed-use community starting in 2016-17
GM-UAW Human Resources Center
Economic Development Corporation of the
City of Detroit
Talon Center and Roberts Hotel
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Harbortown
Chene North
EAST RIVERFRONT DISTRICT RIVERWALK
The Detroit RiverWalk extends nearly three miles from the Central Business District through the East Riverfront District and connecting to the MacArthur Bridge to Belle Isle. This
RiverWalk will provide pedestrian and bicycle pathways with landscaping, wayfinding signage, cafes, seating, and interpretive signage. The City has coordinated with property owners to
secure easements in order to maximize the linear footage directly abutting the Detroit River. The RiverWalk will feature a variety of interactions with the Detroit River, including riprap,
boat-docking capabilities, and extensions over the River in some locations. Significant portions of the RiverWalk are already completed, with full completion expected by late-2015 and
ongoing programming provided by the Conservancy. All of the offer parcels in this package either adjoin or are adjacent to the RiverWalk .
Photos attributable to Detroit Riverfront Conservancy
Economic Development Corporation of the
City of Detroit
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MILLIKEN STATE PARK AND DEQUINDRE GREENWAY
The East Riverfront District will enjoy significant green space amenities as well as greenway connectors to Detroit’s Eastern Market, a bustling food specialty market with dozens of
shops and hundreds of weekend fresh produce vendors.
The District is home to Michigan’s first and only urban state park, operated by the Michigan Department of Natural Resources. Phases One through Three of Milliken State Park are
complete. Phase One includes a fully operational transient marina and is marked by a replica of the lighthouse at Tawas City. Phase Two is a wetland re-creation which wraps a
segment of the RiverWalk around a naturalized storm water mitigation area. Phase Three is the Dequindre Trail. Subsequent phases will include the creation of natural habitats,
landscaped amenities, and educational opportunities. The Outdoor Adventure Center will be open in 2015, and will feature outdoor education and experiences.
Through the generous support of local foundations, a former below-grade railway known as the Dequindre Cut and Trail has been converted in to a bicycle and pedestrian pathway that
connects the Milliken State Park and Harbor (and the East Riverfront District at large) to Eastern Market and beyond, taking users under main arterial roads and through the heart of
Lafayette Park. The second phase of the Greenway is under construction, and will be complete in 2015. It will extend the Greenway north through Eastern Market to Mack Avenue,
where it will connect to other Greenways.
Economic Development Corporation of the
City of Detroit
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DEVELOPMENT PARCEL– CHENE NORTH
Parcel Description
Chene North is located across the street from Milliken State
Park Marina, and Chene Park. It features unobstructed
views to the Detroit River. The common addresses of the
parcels include 2155 Dubois, 2135 E Atwater, 2111 E
Atwater.
The 1.86 -acre parcel is defined by Atwater Street on the
south, Dubois Street to the east, the south edge of the
vacated Guoin Street right-of-way on the north, and St Aubin
Street on the west.
The parcel has been cleared of above-grade structures and
improvements. Phase 1 environmental reports are available.
Atwater Street and utilities were reconstructed in early
2000’s.
Chene North
Development Parameters
As Atwater Street is the district’s primary east-west
thoroughfare, retail, residential and other active uses are
encouraged to locate along this frontage to encourage a
pedestrian friendly environment. Building typology should
reflect the district architecture and materials. Buildings
heights are limited to 55 feet, consistent with the SD4
zoning. Any required Parking is intended to be provided
within the development footprint, and access to parking and
service areas are encouraged from St. Aubin or Dubois
Streets. Vacated Guoin is not included in the development
area, but could be developed as an access roadway, or City
Street by the developer. Development proposals that
maximize density will be considered more favorably.
Proposals with housing shall include no less than a 20%
affordable component.
Economic Development Corporation of the
City of Detroit
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SALE, AGENT AND REGULATORY INFORMATION
Interest Offered:
Fee simple interest in the properties listed and described in this document.
Terms:
Cash due at transaction closing.
Submittal:
Development proposals must be submitted no later than 3:00 PM, August 31 2015. Proposals received after this deadline will not be
considered. Please refer to Page 12-13 of this document for additional information on submission requirements.
Condition:
The properties are to be sold ‘as-is, where-is’, without any representation or warranty of any kind.
Agent Representation:
The Economic Development Corporation of the City of Detroit (the “EDC”) is acting as its own agent for sale of the property. All sales and
development agreements for EDC parcels will require the approval of the EDC Board of Directors prior to transaction execution. All sales
and development agreements for City land will require the approval of the Detroit City Council prior to transaction execution.
Owner:
The EDC owns the properties offered as the subject of this RFQP.
Environmental
Conditions:
Several environmental reports including some materials surveys and Phase II evaluations, have been produced related to the
development site. As these reports are voluminous, the reports will only be made available as reference documents to the respondents
finally selected by the EDC as the most responsive and qualified. A brief index of EDC retained documents for Chene East and Chene
North is found in Exhibit A to this RFQP.
Zoning:
The development parcels (as well as the majority of the East Riverfront District at large) are zoned SD4 – Special Development District,
Riverfront Mixed Use. This zoning classification has been developed specifically to facilitate the redevelopment of Detroit’s riverfront
areas and focuses on high intensity residential and commercial mixed-use development with regional significance and unique attributes
and amenities of location. No rezoning is contemplated for the mixed-use development contemplated in this RFP.
Additional details of the SD4 zoning classification may be found in the City of Detroit Zoning Ordinance (Article XI, Division 12,).
Economic Development Corporation of the
City of Detroit
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SALE, AGENT AND REGULATORY INFORMATION (CONT.)
City Requirements:
As a public authority, the EDC requires developers to comply with the goals of City of Detroit Executive Orders Number 2014-4 and 20145. Executive Order Number 2014-4 directs City departments and authorities to impose a requirement on construction contracts that 51%
of the workforce must be Detroit residents, and that 51% of the actual work hours are performed by Detroit residents. Executive Order
2014-5 directs City Departments and authorities to require its contractors and developers to provide at least 30% of the contract or project
value through Detroit Based businesses.
As new development projects are likely to utilize some form of government subsidy or contribution, the City has a general goal of making
some percentage of new housing units available as affordable. The developer shall consider this as part of its overall proposal.
Disclaimer:
No warranty or representation, expressed or implied, is made as to the accuracy of the information contained in this offering package. The
information may be subject to unintentional errors, omissions, changes of price or other conditions, withdrawal without notice, and to any
special listing conditions from the Owner. The Property is being offered “AS-IS, WHERE-IS”.
Confidentiality:
Qualifications/ Proposal responses will not be opened in a public opening. Reasonable precautions will be taken to avoid disclosure of
contents and proprietary or confidential information to competing developers or the public, up to the time of issuance of a development
agreement. However, proposing developers are advised that, after the issuance of a Development Agreement or a determination not to
award a development agreement, the qualifications responses may become a public record and may be subject to the terms of the
Freedom of Information Act.
The EDC reserves the right to reject all qualifications responses or to negotiate with any sources whatsoever, in any responsible manner
necessary, to serve the best interests of the EDC. The EDC reserves the right, as a precondition for any developer to be considered for
selection, to provide any additional information as the EDC may require related to the developer submission, to verify any information from
third parties, or the developer’s directors, officers, shareholders/owners and any other individual associated with a submission.
Any information received by the proposing developer relating to the submission, gained through the RFQ/P process, or otherwise, is to be
treated in strict confidence. A developer must not disclose any details pertaining to its submission and the selection process in whole or in
part to anyone not specifically involved in its submission, unless written consent is secured from the EDC prior to such disclosure. In
particular, proposing developers shall not issue a news release or other public announcement pertaining to details of their submission or
the selection process without the prior written approval of the EDC. Issuance of any news release or release of information may result in
the EDC immediately disqualifying that developer.
Economic Development Corporation of the
City of Detroit
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SALE, AGENT AND REGULATORY INFORMATION (CONT.)
Developers’ Costs:
The proposing developer agrees and understands that submission of a qualifications response is a voluntary action on the part of the
developer. The EDC will not reimburse any costs incurred by a proposing developer or any of the developer’s associated team members
(“subdevelopers”) in the preparation of any qualifications response.
Financial Incentives
Available:
The Parcels subject to this Request may be eligible for a number of State and City economic development tools including state tax credits
and reimbursement for brownfield remediation, obsolete property remediation and potential residential property tax abatement. Eligibility
for specific incentive programs is dependent upon the specifics of the individual Respondent’s proposed plans. Respondents are
encouraged to make full and judicious use of these various tools, however, the EDC cannot warrant or represent guarantees of statutory
approvals of these various tools. Such approvals are subject to local and state authorities and the Developers adherence to the
parameters of the various programs.
Mandatory Pre-Bid
Meeting and Property
Viewing:
The EDC will hold a pre-bid meeting for all interested parties. The purpose of the meeting is to publicly receive and answer any questions
regarding the properties and the Request process. Conference call dial in will be available to any non-Michigan resident developers.
The pre-bid meeting shall take place at 11:00 AM on, August 6, 2015.
The meeting will be held at the offices of the
Detroit Economic Growth Corporation
500 Griswold Street
Suite 2200
Detroit, MI 48226
Economic Development Corporation of the
City of Detroit
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SUBMISSION OF QUALIFICATIONS AND DEVELOPMENT PROPOSAL
Developers wishing to submit a proposal must submit ten (10) bound copies of a Statement of Qualifications and the Development Proposal as described below to Will Tamminga, c/o
The Economic Development Corporation of the City of Detroit, 500 Griswold Street, Suite 2200, Detroit, MI 48226 by no later than 3:00 p.m. on August 31, 2015
The Qualifications and Development Proposal submittal must contain the following elements in the order specified. Please be sure to clearly mark each section for ease of
reference. Incomplete proposals or proposals that do not adhere to the following format will not be considered.
1.
A letter of introduction stating the name of the proposing development team and designating one (1) authorized representative as the official point of contact for the team along
with the contact’s address and telephone number.
2.
A description of the development team and its organizational structure, inclusion of Detroit based members, and designated lead personnel in each team member organization.
3.
A conceptual description of the proposed development, including but not limited to:
 Description of which parcels are being included in the proposal.
 Description of the proposed new development uses, or adaptive reuse of the historic structures.
 Description of the number of dwelling units, and commercial, retail space
 Preliminary site plan renderings of the proposed development, including circulation, parking
 Preliminary renderings of the relevant elevations of the proposed development.
 User targets: retailers, office , residential market rate or % affordable housing.
4.
Documentation of the development team’s equity capacity and other evidence of financing capacity required to complete the project. Inclusion of any expected government
contributions. A preliminary financial sources and uses statement for the proposed development that shows all sources of funds to be used for project and a line item budget
that shows their disbursement. This shall include estimated square footages of the proposed development, estimated unit counts for the proposed development, estimated
construction costs, and estimated sale / lease revenue.
5.
Preliminary schedule with major milestones
6.
Completed Statement of Qualifications, including examples of Developer’s portfolio of similar projects, and governmental or other contact information which have the most
significant experience with the Developer and project. Developers may attach additional marketing material as they feel appropriate.
7.
Proposed purchase price and conditions.
8.
Copies of the financial statements of the previous three years of the proposing developer. If a new entity has been created for this project, all entity partners must submit their
financial statements for the previous three years.
Economic Development Corporation of the
City of Detroit
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SELECTION OF DEVELOPMENT TEAM
EDC and City staff will develop a small proposal review team, which shall review the proposals and recommend a qualified developer of the property. Several finalist candidates may be
selected. Finalists will likely be required to interview with the review team. If a preferred developer is determined, a recommendation will be made and approvals must be secured from
the Board of Directors of the EDC. Such recommendation shall be based on the development proposal that best meets the interests of the City of Detroit and the EDC. The EDC
reserves the right to reject any or all proposals or waive any informalities or conditions for any or all proposals. Specifically, the EDC will score the following elements from page 12 with
the following weightings to the development proposal:
Criteria
Development Team and organizational structure
Strength of development concept
Developer’s financial strength
Developer’s schedule with milestones
Developer’s Qualifications
Bid price
Weighting
10%
25%
25%
15%
15%
10%
EDC Staff will exercise due care and diligence to select qualified developers within 60 days of close of submissions.
Upon confirmation of the selected developer by the EDC Board of Directors, the selected developer will be provided a Memorandum of Understanding permitting the Developer to
complete its diligence review of the properties. After the diligence review, EDC staff and the qualified developer will negotiate a Development Agreement to purchase and develop the
property. Failure to execute the Development Agreement will result all in the termination of any of the obligations contemplated under the RFQP or Development Agreement.
Development must commence according to the terms of the Development Agreement or the property will revert back to the EDC and the qualified developer will forfeit its investment.
EDC will furnish title insurance commitment and transfer ownership of the Property upon payment in full of purchase price at the time of transaction closing.
RFQP Schedule
RFQP published
Pre Bid Meeting
Proposal Due Date
EDC Review team
Interviews
Final Selection
EDC Board presentation
Notification of Winning Developer
Date
July 20 , 2015
August 6, 2015, at 11 am at the offices of the DEGC, Suite 2200
August 31, 2015 at 3 pm
Sept 1 - 10, 2015
Sept 15 - 17, 2015 Times to be determined
Sept 24, 2015
October 13, 2015.
October 15, 2015.
Economic Development Corporation of the
City of Detroit
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EXHIBIT A
DOCUMENT INDEX
For Chene North
A. Phase 1 Environmental Site Assessment
B. Phase 2 Environmental Site Assessment
C. Baseline Environmental Assessment
Economic Development Corporation of the
City of Detroit
EnviroMatrix
Enviro Matrix
EnviroMatrix
May 2005
June 2005
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