Fiscal Note
This resolution authorizes the issuance of a request for proposals for private development on Block 88 above the publicly-owned below-ground and above ground parking facilities. A total of $50.4 million has been appropriated from Parking Utility Reserves ($23.4 million), TID 25 incremental revenues ($24 million), City general obligation borrowing ($2.3 million), and remaining Federal TIGER grant funds ($0.7 million). It is anticipated that outside consulting services will be needed to manage a six month RFP process. Based on prior contracts, the cost is anticipated to be $18,000. This cost will be paid from the authorized Judge Doyle project budget. City staff time will be absorbed within current budgets. No further city appropriation is anticipated.
Title
AMENDED SECOND SUBSTITUTE - Authorizing the Issuance of a Request for Proposals to Seek a Developer to Complete the Private Portion of the Judge Doyle - Block 88 Project.
Body
WHEREAS, on January 8, 2019, the Common Council adopted RES-19-00038, amending the executed Development Agreement with Beitler Real Estate Service LLC for the development of the Judge Doyle project, subject to final language being drafted and approved by the City Attorney, to, among other things, transfer the development rights to, and ownership of, all elements of the Block 88 development to the City of Madison; and,
WHEREAS, construction of the Government East replacement parking on Block 88 is ongoing and bids for construction of the Podium are due January 31, 2019 with completion of the Podium scheduled for October 2019; and,
WHEREAS, collaboration with a future developer during construction of the Podium will offer efficiencies for both parties which could include refinement of the load transfer system to better suit future development, use of the existing tower crane for future development and exchange of a temporary Podium roof system for the permanent system in current plans; and,
WHEREAS, proceeds from the sale or lease of Block 88 air rights will be used to repay the Parking Utility’s investment in the Podium and by moving quickly with a Request for Proposals such payments would be received sooner; and,
WHEREAS, at the direction of the Mayor, the City’s Judge Doyle Negotiating Team has completed a set of recommendations for the Council’s consideration to issue a Request for Proposals to complete the private portion of the Judge Doyle- Block 88 project as soon as possible,
NOW, THEREFORE, BE IT RESOLVED that the Common Council does hereby direct the issuance of a Request for Proposals (RFP) to seek a developer to complete the private portion of the Judge Doyle - Block 88 Project as follows:
a. The RFP will be issued by the end of February 2019 with proposals due to the City from development teams in April 2019.
b. The City’s Judge Doyle Square Negotiating Team, with the assistance of appropriate City staff resources, will review the RFP responses and report its recommendations to the Finance Committee in May 2019. The Finance Committee will be responsible for considering those recommendations and recommending follow-up actions to the Common Council for consideration.
c. The RFP shall include the following requirements:
1. The RFP response should be for a development project on Block 88.
2. The project must be for a housing, commercial, or mixed use purpose (excluding hotel use) land use and include a workforce housing component with some units being subject to rent and income restrictions which make them affordable to low and moderate-income households.
a. If housing is proposed as a component, a high priority will be given to proposals that include a workforce housing component with some units being subject to rent and income restrictions which make them affordable to low and moderate-income households.
3. The development should be compatible with surrounding buildings, including the Madison Municipal Building, a National Register of Historic Places building.
4. A high priority for selection will be given to proposals that:
a. maximize the tax base to be added as a result of the project, and
b. have a straight-forward development framework that can be built in a timely manner.
c. utilize sustainability concepts for the design, construction and operation of the building as demonstrated through participation in sustainability programs for building (e.g. Focus on Energy) and/or building certification programs (e.g. LEED or WELL).
4. A high priority for selection will be given to proposals that:
a. maximize the tax base to be added as a result of the project, and
b. have a straight-forward development framework that can be built in a timely manner.
c. utilize sustainability concepts for the design, construction and operation of the building as demonstrated through participation in sustainability programs for building (e.g. Focus on Energy) and/or building certification programs (e.g. LEED or WELL).
5. The air-rights above the parking must be leased or purchased at fair market value.
6. The City of Madison intends to select a development team based on: (1) RFP proposals that are most responsive to the Project Goals found in Section 1 and Project Requirements found in Section 2 of this RFP, and (2) that contain the combination of features and attributes offering the best overall value to the City. The City will determine the potential best overall value by comparing differences in project features and feasibility, and development team attributes, striking the most advantageous balance for achieving the City’s goals for Judge Doyle Project.
The submissions must provide convincing evidence that all team members have sufficient understanding and experience with similar projects to be able to man- age the project in the initial stages and throughout the term of the relationship.
d. Additional Information:
1. The City of Madison is constructing and owns the 138 - cars of parking and 8,000 square feet retail spaces in the Podium. The parking was built to support housing development in the air-rights.
2. The City intends to enter into a lease or purchase agreement with the selected developer for the Podium.
3. There isn’t any capacity in the 560-car underground municipal garage on Block 88 for accessory parking for the housing project.
4. No tax incremental financing (TIF) shall be available for the development.
5. The developer may proceed with the apartment project that has received zoning approval from the City, subject to the clearance of the conditions of approval, recordation of the zoning documents and receipt of a building permit. The owner of those plans is Lothan Van Hook DeStefano Architecture (LVDA) of Chicago, IL.
6. The approved GDP and Phase II SIP may also be amended subject to the approval of a Major Alteration to the Planned Development Zoning, which shall be reviewed by the Landmarks Commission, Urban Design Commission, and Plan Commission and approved by the Common Council as required by ordinance.
BE IT FURTHER RESOLVED that the Common Council does hereby approve the following timeline for the Judge Doyle - Block 88 RFP process:
• Issue RFP: February 2019
• RFP Submissions Due: April 2019
• Finance Committee review and recommendations: May 2019
• Council Action on developer selection: June 2019
• Final deal negotiation: June - July 2019
• Council action on Development Agreement: July -Aug 2019
• Execution of Development Agreement: August 2019