Request for Developer Qualifications

SANTA BARBARA PLAZA 8.3 Acre Commercial/Retail Opportunity Site

June 25, 2010

Pre-submittal Conference: July 14, 2010

RFQ Submittal Due Date: August 4, 2010

Santa Barbara Plaza RFQ No. NP-12947

1. EXECUTIVE SUMMARY

1.1 Development Opportunity The CRA/LA is seeking statements of qualifications for the development of the 8.3 acre Santa Barbara Plaza Commercial/Retail Development Opportunity Site (“Site”). The CRA/LA is seeking a Developer to analyze the potential for the development of a commercial/retail project on the Site. Residential uses will not be considered as a part of the Site’s development.

1.2 Area Context The Site is located within the larger 21.7 acre Santa Barbara Plaza /area (commonly referred to as Marlton Square), which includes properties that are currently owned by the CRA/LA, Marlton Square Acquisition, LLC (former Marlton Square Developer), and some parcels which are privately owned with businesses that are currently in operation. In addition, the larger area includes properties that contain the Santa Barbara Plaza’s centralized common parking area.

The Santa Barbara Plaza center/area is bordered by Martin Luther King, Jr. Boulevard to the north, Santa Rosalia Drive to the south, Marlton Avenue to the east and Buckingham Road to the west. Directly to the east within walking distance is the Baldwin Hills Crenshaw Plaza shopping center with approximately 900,000 square feet of retail stores, including Sears, Macy’s and Wal-Mart, numerous retail and specialty shops, mall-oriented retail kiosks, an interior food court, the Magic Johnson theater complex, and an Albertson’s grocery market. To the north of Santa Barbara Plaza is a predominately single-family residential neighborhood and to the immediate west and south are predominately multiple family residences.

1.3 Site Location Within the larger 21.7 acre Santa Barbara Plaza shopping center/area, is the 8.3 acre Site, which consists of eight (8) separate properties. The Site is located at the southwest corner of Martin Luther King, Jr. Boulevard and Marlton Avenue and includes 7 contiguous properties facing King Boulevard, in addition to another contiguous property on Marlton Avenue. Two additional contiguous properties which contain common parking areas are also included in the Site. Please see Exhibit G & H for reference.

1.4 Site Size The Site is approximately 8.3 acres and consists of eight (8) separate properties (3.75 acres), in addition to part of the adjacent common parking area which include two (2) properties (4.54 acres).

1.5 Site Status Of the Site’s eight (8) individual properties and two (2) parking area properties, five (5) properties are owned by CRA/LA, located at 3800 Martin Luther King, Jr. Boulevard (MLK), 3760-72 MLK, 3750 MLK, 3700 MLK & 4013 Marlton Ave., and 4023 Marlton

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Ave. The remaining three (3) properties are privately owned and located at 3742 MLK, 3724-32 MLK, and 3710-18 MLK. CRA/LA does have a purchase option on one of these privately owned properties. Three (3) of the CRA/LA owned properties front Martin Luther King, Jr. Boulevard, a fourth (4) property is on the corner of Martin Luther King, Jr. Boulevard and Marlton Avenue, and the fifth (5) property is located on Marlton Avenue, adjacent to the corner property. Please refer to Exhibit I, 8.3 Acre Opportunity Site – Ownership Table.

It is desired that all eight (8) commercial/retail area properties become part of the Project on the Site. Therefore, for the purpose of this RFQ, respondents should anticipate that the combination of these eight (8) properties, as well as the two (2) adjacent parking properties, will be defined as the Site. However, it must also be anticipated that the three (3) privately owned properties (or a combination thereof) may remain in separate ownership and separate from the Project. The CRA/LA does not currently have any eminent domain powers with regard to Santa Barbara Plaza properties.

1.6 Development Team To be considered qualified, a development team should have members with successful experience in the following:

a. Development, ownership, and management of retail properties; b. Public/Private partnerships experienced in commercial developments; c. Real estate acquisition; and d. Development of mixed use urban infill projects.

Inclusion of Entities on More Than One Development Team: Entities are permitted to be included on more than one development team submitting Statements of Qualifications under this RFQ.

1.7 Non-Mandatory Pre-Submittal Conference A non-mandatory pre-submittal conference to discuss the RFQ is scheduled on July 14, 2010, at 10:00 A.M. located at CRA/LA’s Central Office, 354 South Spring Street, 6th Floor, CRA/LA Board Room, , CA 90013. CRA/LA will not validate any parking tickets for the conference. All date/time/changes to this meeting will be posted on the CRA/LA website at www.cra.la.org. and the Los Angeles Business Area Virtual Network at www.labavn.org All interested parties are highly encouraged to attend this meeting. Please RSVP to attend this meeting by contacting Ms. Donna Yep, Contract Office at [email protected]

1.8 Schedule Issuance of RFQ June 28, 2010 Pre-submittal Conference July 14, 2010 Questions/Inquiries Due Date July 21, 2010 RFQ Due Date August 4, 2010

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1.9 General Requirements Prior to award of any contracts, the selected developer(s) must comply with the insurance requirements, and as applicable, the CRA/LA’s Living Wage (LWP), Equal Benefits (EBP), Service Contractor Retention (SCRP), and Contractor’s Responsibility (CRP) Policies, and other CRA/LA, City, and/or Federal Terms and Conditions, as applicable. The CRA/LA’s Policies for LWP, EBP, SCRP, and CRP are also available on the CRA/LA’s website at www.crala.org.

1.10 Deadline Date To Submit Statements of Qualifications The postmark deadline for submitting your response to this RFQ is not later than 2:00 P.M. (Pacific Standard Time) on August 4, 2010.

All Statements of Qualifications shall be marked "Statement of Qualifications (SOQs) for the SANTA BARBARA PLAZA 8.3 ACRE COMMERCIAL/RETAIL OPPORTUNITY SITE (RFQ NO. NP-12947)" and shall be submitted in an Original (unbound and marked as "Original") and twelve bound copies (total of thirteen sets), plus one (1) complete copy of your SOQ on a CD (PDF format), to:

The Community Redevelopment Agency of the City of Los Angeles Attn: Records Department – RFQ No. NP-12947 354 South Spring Street, Suite 500 Los Angeles, CA 90013

1.11 Registration: If your firm is interested in being placed on the List of Registered Firms for this RFQ, please FAX (213) 626-0090 or submit your request via E-MAIL to Ms. Donna Yep, Contracts Officer, at [email protected] . Include: Name of the RFQ (RFQ No. NP-12947 Santa Barbara Plaza), Company Name, Address, Phone Number, Fax Number, and Email Address. Development Teams are welcome to submit more than one contact from their team to be included in email notifications regarding this RFQ.

The RFQ, related attachments and any addenda will be available for download directly from the CRA/LA website at www.crala.org and the Los Angeles Business Area Virtual Network at www.labavn.org. Prospective Development Teams are solely responsible for checking the website(s) for any updates and /or additional information.

2. SANTA BARBARA PLAZA COMMERCIAL/RETAIL OPPORTUNITY SITE

2.1 THE OPPORTUNITY

The Community Redevelopment Agency of the City of Los Angeles (CRA/LA) is soliciting “Statements of Qualifications” (SOQ) from interested and qualified development teams with relevant and successful development experience,

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management expertise, and financial capacity to implement the 8.3 acre Santa Barbara Plaza Commercial/Retail Development Opportunity Site (“Project”). The Project is located within the Amended Crenshaw Redevelopment Project Area (“Project Area”).

The Site has become a key and vital Crenshaw area priority, with a focus on bringing badly needed revitalization and improvement to this now deteriorated shopping center. Built in 1955, Santa Barbara Plaza, then called Fashion Village, was a thriving and viable community asset in the late 50’s and 60’s. It was built shortly after the 1950 completion of the adjacent Crenshaw Shopping Center. Over the next 50 years, both centers slowly outgrew their vitality and showed obvious signs of deterioration. During this same time period, the Crenshaw Redevelopment Project Area was founded.

The Crenshaw Redevelopment Plan was adopted in 1984 for the purpose of the redevelopment of the Crenshaw Shopping Center, which resulted in the completion of the re-named Baldwin Hills Crenshaw Plaza in 1988. The Amended Crenshaw Redevelopment Plan was adopted in 1994, which included the Santa Barbara Plaza area with the intention of facilitating the redevelopment of this adjacent and declining shopping area.

The larger Santa Barbara Plaza is located in an evolving neighborhood. Revitalization is aimed at promoting the creation of a pedestrian-friendly community with a mix of activities including an active shopping venue and thriving neighborhood-serving businesses. It is the goal that the Site’s redevelopment focus on these commercial and retail use objectives and other uses that promote job creation.

The Santa Barbara Plaza Commercial/Retail Development Opportunity Site’s development proposes to provide not only viable and needed commercial and retail uses for the Crenshaw community, but also to take a major positive step forward in revitalizing the larger Santa Barbara Plaza area, as well as complementing the existing adjacent Baldwin Hills Crenshaw Plaza and Magic Johnson Theater development.

2.2 DEVELOPER SELECTION PROCESS - 2 PHASES

This Request for Qualifications (RFQ) is Phase 1 of a two-phase developer selection process. In this phase, qualified development teams are asked to submit Statements of Qualifications (SOQ) for consideration. Qualified development teams must be capable of developing the Project on the Site. Previous experience and the financial capability to successfully design, develop, and manage the Site are critical. Phase 2 will be a subsequent Request for Proposals (RFP).

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2.3 THE SITE

2.3.1 Site Description The Site is approximately 8.3 acres (361,550 square feet) and consists of eight (8) individual properties, in addition to two (2) adjacent properties containing the common parking area. The Site consists of five (5) properties owned by CRA/LA and three (3) privately owned properties. CRA/LA has a purchase option on one of the privately owned properties. Four (4) of the CRA/LA owned properties front Martin Luther King, Jr. Boulevard, starting from the southwest corner of King Boulevard and Marlton Avenue, and the fifth (5) property is located on Marlton Avenue, adjacent to the corner property.

The Site consists of properties with vacant buildings, parking lots, buildings with operating businesses, as well as a centralized parking area. Adjacent land uses include vacant properties, abandoned buildings, and additional centralized parking areas. In addition, there is an existing affordable housing development building for seniors (Buckingham Place) which is currently incomplete and undergoing completion with a separate housing developer.

As stated earlier, it is the intention that all eight (8) properties become part of the Project on the Site. Therefore, for the purpose of this RFQ, respondents should anticipate these eight (8) properties, as well as the two (2) adjacent parking properties, are defined as the Site. However, it must also be anticipated that the three (3) privately owned properties (or a combination thereof) may remain in separate ownership and separate

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from the Project. The CRA/LA does not currently have any eminent domain powers with regard to Santa Barbara Plaza properties. Please refer to Exhibits G, H, and I for further detail.

2.3.2 Neighborhood Context The Site is within the Amended Crenshaw Redevelopment Project area, combined with the original Project area, the 206-acre Crenshaw Redevelopment Project area consists of Baldwin Hills Crenshaw Plaza, Santa Barbara Plaza, portions of Crenshaw and Martin Luther King, Jr. boulevards, and Leimert Park Village. The project area is 8 miles south of downtown, midway between the San Diego and Harbor freeways, and south of the Santa Monica Freeway.

The Site is across the street from the Baldwin Hills Crenshaw Plaza with over 900,000 square feet of retail shops and major store anchors, including Sears, Wal-Mart, Macy’s and Albertsons. The Plaza also includes the Magic Johnson Theater Complex and has regular community events and exhibits. The the Baldwin Hills Crenshaw Plaza is also planning for a major renovation and phased redevelopment of its site to commence by 2011. The Site’s location is especially meaningful due to the rich cultural history found in this area. For example, Leimert Park Village is considered the hub of the African-American arts scene in Los Angeles, with blues and jazz clubs, venues for Hip Hop, numerous dramatic performances, poetry readings, art exhibits and the recently completed Sankofa Passage sidewalk plaques installation. The famed Vision Theater is also located in Leimert Park. Formerly known as the Leimert Theater, the City of LA is in the process of renovating and expanding this theater facility.

The Site is also in a prime location because it presents a Transit Oriented Development (TOD) opportunity. Just last year, a new light-rail system that will pass through was approved by the Metropolitan Transit Authority (MTA). The line is proposed to run from Exposition Boulevard to Imperial Highway, following Crenshaw Boulevard and passing through Leimert Park and Southwest L.A. before heading southwest through Inglewood and south to Aviation Boulevard near Los Angeles International Airport. The Crenshaw line is significant because it will provide commuter rail service to an area that is currently only served by buses. Moreover, the Crenshaw Boulevard corridor is undergoing capital improvements to the bus hub centered at the Stocker and Martin Luther King, Jr. intersections. Served by the Metro Rapid, regular MTA and DASH lines, these high volume intersections converge at the regional Baldwin Hills Crenshaw Plaza mall on Crenshaw Boulevard and serve as a regional access point for travel to Downtown, LAX and the South Bay. The Site is adjacent to the Baldwin Hills Crenshaw Plaza mall and is anticipated to be designed in a manner to better connect with it and allow pedestrian flow to Crenshaw Boulevard along King Boulevard and through the mall development. The improvements will provide clean and attractive transit patron facilities to better serve regional passengers transferring between lines, as well as attract a much larger share of the potential users from the adjacent residential communities of View Park, Baldwin Hills and Leimert Park.

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Specifically, the Crenshaw bus hub project between Stocker and Martin Luther King Boulevard will organize the bus stops in this lineal zone in a comprehensive manner, provide shelters and benches for transit patrons, incorporate additional streetscape and sidewalk lighting enhancing safety, provide additional shade trees, and introduce identity and directional signage that will enhance ridership experience and use by facilitating transfers, providing more information about accessible destinations in the area and beyond, and creating visibility for the light rail stop just north of the hub. The synergy and use of the bus hub in relationship to existing and anticipated transit oriented uses will be effectively served by organizing, improving, and enhancing the interface of land and transit uses in this lineal zone.

Historical context of the Santa Barbara Plaza Site

Santa Barbara Plaza became part of the Amended Crenshaw Project in 1994. CRA/LA initially identified a developer in 1996 to redevelop the Santa Barbara Plaza Shopping Center, which become dated and in need of redevelopment. When initial development negotiations did not result in an agreement, the negotiations were terminated in 2000 and a new developer (Capital Vision Equities) was selected in 2001. In 2004, a development agreement was approved for the Marlton Square Mixed-Use Development phases. The developer then proceeded with site acquisitions and relocations, as well as construction on the first phase of the development with the senior housing component. Shortly thereafter, the developer’s legal and financial problems brought work to a standstill in early 2008. The CRA/LA now owns the Buckingham Place project, has indentified a new affordable housing developer and it is expected that construction on the Buckingham Place 70-unit building will resume later this year. 2.3.3 Property Ownership There are eight (8) properties and two (2) common parking area properties comprising the Site. Of the 8 properties, five (5) are owned by CRA/LA, and the remaining three (3) are privately owned. CRA/LA also has a purchase option on one (1) of the privately owned properties. Four (4) of the CRA/LA owned properties front Martin Luther King, Jr. Boulevard and the other one (1) is located on Marlton Avenue adjacent to the corner property at King Boulevard and Marlton Avenue. Please refer to Exhibit I, 8.3 Acre Opportunity Site Ownership Table.

2.3.4 Current Zoning The Santa Barbara Plaza Site is zoned [Q] C2-2D, which allows for commercial, office, retail, medical, legal, accounting, professional, general business offices, banks, theatres, hotels, and parking. Other uses that promote job creation and a strong pedestrian orientation are being targeted for the site. Although residential uses are allowed by the Site’s zoning, residential uses will not be allowed or considered as a part of this Site’s development.

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2.4 BACKGROUND INFORMATION

The CRA/LA is a public body, corporate and politic, organized and existing under and pursuant to the Constitution of the State of and the California Community Redevelopment Law. The CRA/LA was activated in 1948 by the City Council of the City of Los Angeles. The CRA/LA’s primary responsibilities include the elimination of slums and blight, revitalization of older neighborhoods, facilitation of affordable housing, encouragement of economic development, job retention and creation of new employment opportunities.

To accomplish these objectives, the CRA/LA has a variety of powers. The CRA/LA is authorized to prepare redevelopment project plans; acquire property; install streets and sidewalks and make other public improvements; market land for a variety of purposes; develop or assist in the development of new and rehabilitated housing; facilitate the development of commercial and industrial properties; issue notes and bonds to finance activities; and impose environmental, open space and urban design controls.

For more information about the CRA/LA, please visit our website at www.crala.org

2.5 PROJECT GOALS AND OBJECTIVES

The City Council adopted the Crenshaw Recovery Redevelopment Plan on May 9, 1984, followed by the Amended Crenshaw Redevelopment Plan on December 6, 1994 to promote the economic well being of Crenshaw, increase job creation, provide housing for households at all income levels, and improve the quality of the environment. This RFQ reflects the concerted efforts of the City and the community to meet these major redevelopment goals with a project that integrates the local identity with a sense of place through appropriate scale, density, land uses, and sensitive urban design.

The prominent location of this Site in the Amended Crenshaw Redevelopment Plan provides a unique setting to implement these design principles.

The objectives for the Site include:

a. Provide additional commercial, office and/or retail development in the area.

b. Creation of exciting public spaces to enhance the pedestrian experience by providing an inviting place to stop, gather, rest, and people watch. Attractive landscaping is essential.

c. Designing Green Buildings that capture the attention of residents and visitors while incorporating the historical, cultural, and social elements of Santa Barbara Plaza;

d. Providing sufficient parking to meet the needs of all Project components.

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2.6 DEVELOPER REQUIREMENTS

2.6.1 Labor Requirements for Development This RFQ includes the information on laws that affect development projects. This section highlights requirements relating to prevailing wage, which will apply to a project that could develop as a result of this RFQ. All Developers considering submittal to this RFQ shall also carefully review the CRA/LA specific policies and requirements in the Appendix for consideration and inclusion in your development and financial assumptions.

2.6.2 Prevailing Wages The California Labor Code requires that prevailing wages must be paid to all workers performing on-site on a public project. A project such as the one anticipated as a result of the RFQ is considered a public project and triggers prevailing wage requirements set forth in the California Labor Code, Section 1771, et. Seq. All selected Development Teams must abide by CRA/LA's Prevailing Wage and Equal Opportunity standards. Effective January 1, 2002, pursuant to SB 975 Prevailing Wages, the Development Team or Owner shall pay or cause to be paid to all workers employed in connection with the development of the Site, not less than the prevailing rates of wages, as provided in the statutes applicable to CRA/LA's public works contracts, including without limitation Sections 33423-33426 of the California Health and Safety Code and Sections 1770- 1780 of the California Labor Code, and in accordance with CRA/LA's "Policy on Payment of Prevailing Wages By Private Developers or Owner-Participants" dated February 1986. CRA/LA’s Prevailing Wages Policy is available on the website at www.crala.org.

The prime contractor is responsible for the compliance of all subcontractors, including lower tier subcontractors, with prevailing wage provisions. The contractor and all subcontractors are required to file labor compliance documents with supporting documentation, including certified payrolls. Written documentation must be filed within 10 days of issuance of a Notice to Proceed. Certificates of Completion are not issued until all required documents are filed.

The General Prevailing Wage Determination made by the California Director of Industrial Relations is available via the internet at www.dir.ca.gov/DLRS/PDW.

2.6.3 Construction Careers and Project Stabilization Policy The Construction Careers and Project Stabilization Policy is a local hiring program to be undertaken with the Los Angeles/Orange County Building Trades Council and applied to all CRA/LA Board-approved projects that meet certain thresholds. It seeks to ensure that CRA/LA-created job opportunities benefit local residents, particularly those living in or adjacent to CRA/LA project areas, and that residents with barriers to employment and new entrants have access to job opportunities, training and support to advance in construction careers.

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Under the policy, developers and contractors would work with the community and construction unions to ensure that project area and local residents perform 30% of total project work. Further, 10% of all construction work hours would be performed by local residents with barriers to employment, and 50% of apprentice work hours by local residents. Their hours could be counted toward the overall, 30% requirement.

Projects subject to the requirement include:

o CRA/LA-generated public improvement contracts valued at $500,000 or more. o Private projects on land that is owned by the CRA/LA. o Private developments that have seen CRA/LA invest $1 million or more to make the project feasible.

The program exempts developments with fewer than 75 housing units and less than 50,000 square feet of non-residential floor area.

The Construction Careers Policy also requires that project developers hire an organization to act as a “Jobs Coordinator.” Organizations will be selected on a project- by-project basis from the CRA/LA’s pre-qualified list. The Jobs Coordinator will assist the employer in meeting the local hiring requirement through outreach and work- readiness programs.

The Developer shall be required to comply with a Local Hire Program as attached in Appendix 4.1.6.

2.7 CRA/LA AND CITY INVOLVEMENT

The overall scope of the anticipated future development of the Site is in conformance with the Amended Crenshaw Redevelopment Plan. The ultimate development of the site will still be subject to CRA/LA and the City of Los Angeles Department of City Planning’s zoning, development and design guidelines.

2.7.1 Respondent’s Due Diligence: The respondent must conduct their own due diligence before submitting a response and are strongly encouraged to review the following documents related to the planning, zoning, and entitlements of this area:

1. Los Angeles City General Plan Framework 2. Fast Food Ordinance 3. Auto Related Use Ordinance No. 178382 4. Crenshaw Corridor Specific Plan Ordinance No. 176,230 5. Amended Crenshaw Redevelopment Plan Ordinance No. 170169 6. Community Plan Land Use designation: Regional Commercial

The respondent acknowledges that receipt of this RFQ does not constitute approval by CRA/LA or the City of any required permits, applications, or allocations, and in no way

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limits the discretion of the CRA/LA or the City in the permit review and approval process.

2.7.2 CRA/LA Financial Assistance: CRA/LA financial assistance for permissible costs (e.g., predevelopment costs, acquisition, relocation, public improvements, affordable housing construction, and theater renovation) is possible based upon the responses submitted (SOQ) through this RFQ and subsequent negotiations with the respondent(s) selected through the subsequent Request for Proposals (RFP) process.

2.7.3 Land Assembly: CRA/LA will encourage the eventually selected development team to pursue and negotiate private assembly of sites wherever possible. CRA/LA does not currently have eminent domain authority in the Amended Crenshaw Project area. CRA/LA in its sole discretion may use its authority to acquire property through negotiated sale or by eminent domain, should such eminent domain authority be granted in the future.

2.7.4 Other Financial Assistance: The City offers several incentive programs to businesses locating within the City. These include:

1. Enterprise Zone: The Site is in a State Enterprise Zone and businesses locating in this zone are entitled to various incentives including:

a. Hiring tax credits; b. Sales and use tax credits for machinery purchased to support the business; c. Tax deductions for business expenses and net interest expenses; d. Fee waivers for site plan review; e. Exemption from sewer utility fees; and f. City Department of Water and Power rate reduction for five years

For more information on the Enterprise Zone and related incentives, please visit: www.lacity.org/CDD/bus_index.html.

2. Department of Water and Power Economic Development Incentives: The Department of Water and Power (“DWP”) is offering various incentives for new businesses and development, including:

a) DWP will pay for up to 50% of the cost if a new development undergrounds at least 600 feet of power lines.

b) DWP will pay for up to 20% of the cost of exterior lighting on buildings that are new construction or undergoing rehabilitation;

c) DWP offers over 40 species of street trees at no cost to the Development Team; and

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d) Low interest infrastructure loans of up to $1.2 million.

For the updated information on all DWP economic development programs, please call 800.864.4409 or visit: www.ladwp.com/ladwp/cms/ladwp004976.jsp

3. SUBMITTALS

3.1 SUBMISSION REQUIREMENTS

The CRA/LA desires succinct submittals addressing the specific information requested herein. All submittals shall be in the format described herein. In order to ensure that each submittal is reviewed and evaluated properly, it is important that each submittal follow the format with care. The SOQ shall address all requirements in this RFQ.

a) Respondents to the RFQ shall limit their submissions to no more than twenty (20) 8½” x 11” pages. All oversized exhibits or materials explaining developer ability and experience shall be reduced to 8½” x 11” format or folded 11” x 17” format and included with the submittals.

b) Statements shall be organized in the order presented in Section 3.2 and shall have tabs keyed to the requirements outlined in this Section. Statements shall be a straightforward delineation of the Respondent’s capability to satisfy the intent and requirements of this RFQ, and shall not contain redundancies and conflicting statements.

c) All proprietary information shall be identified as such by the respondent. (Refer to Section 3.8.3. Confidentiality)

3.2 STATEMENT OF QUALIFICATIONS

The SOQ submission is Phase 1of the selection process, and is to consist of the following elements, which shall be provided as completely as possible and in the outlined organizational order. Please submit information in appropriate detail on each of the items described below to allow adequate review and evaluation of your submittal:

o Cover Letter o Identification of Development Team and Associates o Development Team Qualifications o Financing capacity o Anticipated development parameters o Experience with community involvement in other projects’ design, community benefits offered with previous projects and community references (residents,

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business/property owners, and/or other community stakeholders, including contact information) o Business Profile o Credit Report Form

Phase 2 will be a subsequent Request for Proposals.

3.2.1 Cover Letter Two (2) single-spaced pages maximum, signed by an authorized officer of the lead firm, summarizing the major points contained in the Statement of Qualifications, and providing the name, address, email address, telephone number and fax number of the key contact person.

3.2.2 Identification of Development Team and Associates For each of the principal parties comprising the proposed Development Team, provide the following information:

a) Name, address, telephone number, and e-mail address of Development Team and Project Manager (if appropriate).

b) Identification and organization of Development Team (individual, company, corporation, partnership, joint venture, other).

c) Identification of principals of development organization and project manager (corporate officers, principal stockholders, general and limited partners), and manger to be responsible for proposed project.

d) Indication of any relationship the development organization may have with a parent corporation, subsidiaries, joint ventures or other entities. If a joint venture is proposed, percentage of ownership of each entity shall be specified. Describe the financial, liability-related, and other decision- making relationships.

e) Identification of all key project team members including resumes of assigned personnel, describing relevant project experience as related to the subject submittal, and specific technical skills. The minimum information to be included in the resumes shall include the person’s education, showing related certificates, degrees, schools and dates; work experience, showing previous employers, job titles and functions by calendar date (month/year) and by duration in months and years; and other information as relevant to the specific assignment.

3.2.3 Development Team Qualifications The Development Team’s ability to see a project through from concept to fruition is especially important to CRA/LA. Strong weight in the evaluation process will be given to a Development Team that has experience and track record in each of following areas. Keep project descriptions and pictures limited to two pages. Please provide:

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a) A list of similar mixed use/commercial/retail development projects in which the Development Team and proposed associates have participated, describing the relationships to these projects (i.e., developed, owned, operated and/or managed) and a general description of the project(s) including any unique challenges. Identify the location, total project costs, land uses, length of time to complete and actual completion dates. b) For projects including retail uses, please provide a list of tenants and level of pre-lease/sales at opening. Projects requiring extensive site acquisition and relocation shall be included in your package. Identify which of the listed similar projects have been successfully completed, and which have been completed over and under budget.

c) Descriptions (no illustrations) of the proposed architect’s or architects’ work on development projects that have been built or are under construction. These projects shall be of a similar magnitude to the proposed development of the Site and shall include experience with mixed use commercial/retail developments.

d) For each project or relevant experience, a name and phone number of a contact person familiar with this project who can act as a reference.

3.2.4 Financing Capacity Please indicate how the Development Team proposes to finance the project by providing a description of how the Developer(s) financed projects of similar type and scope, including total project costs, sources and uses for similar projects. Describe any public subsidies included in similar projects.Describe a specific project and how you have handled unexpected budget increases during project implementation and how budget gaps were filled.

3.2.5 Community Experience Describe, in detail, the development team’s experience in working with and developing in ethnically diverse communities. Did you engage the community and, if so, how? Have you experienced community opposition to your development proposals in the past? If so, how did you work toward a resolution with the community? Please provide the following: a) Examples of community benefits provided by past and current projects you have developed; and

b) Community references (residents, business/property owners, community- based organizations, and/or other community stakeholders).

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3.2.6 References Provide a list of at least three (3) references including contact, title, address, email address and telephone number for the agency/business which your firm provided similar services. Also indicate the year in which your firm provided the services for the agency/business.

3.2.7 Business Profile (Exhibit C) The prospective developer shall complete a Business Profile Form (Exhibit C). (Note: Business Profile Form shall include information regarding the developer’s local/regional office that will be performing the proposed contract services).

3.2.8 Credit Report Forms (Exhibit D) The CRA/LA also requires updated information for all prospective borrowers (i.e., Development Team). The development team shall submit the credit report authorization forms. A partnership or proprietorship shall complete both the individual and business application forms.

3.3 AFFIRMATIVE ACTION PLAN

It is the policy of the CRA/LA to provide minorities, women, and other business enterprises (M/W/OBE's) with the opportunity to compete for and participate in the performance of all CRA/LA contracts. Any firm who is awarded a contract will be required to make its best efforts to recruit M/W/OBE's and enhance employment opportunities for minorities, women, and other business enterprises (M/W/OBE’s) for subcontract opportunities created by any contract. This policy is available on the CRA/LA website at www.crala.org

3.4 INSURANCE REQUIREMENTS

Any development agreement with CRA/LA will require the Development Team, or Development Team's contractors, to carry workers' compensation, general liability, and as applicable, professional liability (errors and omissions) and automobile liability insurance coverage in limits to be determined at a later time.

3.4.1 Workers' Compensation In accordance with State Workers' Compensation laws, the Development Team shall carry workers' compensation in statutory limits of not less than one million dollars covering illness, injury, and disease for all persons employed in the performance of services under this contract.

3.4.2 General Liability (Bodily Injury and Property Damage) Development Team shall carry commercial general liability insurance (bodily injury and property damage) in an amount to be determined prior to the awarding of any contract. Such policy shall name CRA/LA and the City as additional insured

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followed by endorsement and requires a thirty- (30) day notice to CRA/LA in writing prior to cancellation, termination or expiration of any kind.

3.4.3 Automobile Liability Development Team may be required to carry automobile liability insurance in an amount to be determined prior to the awarding of any contract. Such policy shall require a thirty- (30) days notice to CRA/LA in writing prior to cancellation, termination or expiration of any kind. Development Team will be required to provide CRA/LA with a certificate verifying such coverage.

3.4.4 Self Insurance If self-insured, the Development Team will be required to provide CRA/LA with a letter certifying their self-insured status along with a financial statement certified by a CPA documenting the Development Team's reserve account established for the specific insurance program. Such insurance and/or retention programs must provide CRA/LA with at least the same amount of protection from liability and defense of suits as would be afforded by first dollar insurance. CRA/LA’s Risk Management Unit shall approve all self-insurance programs in advance.

3.4.5 Professional Liability (Errors and Omissions) Development Team shall cause architects and engineers providing services to the project to carry Professional Liability Insurance covering the Errors and Omissions exposure in an amount not less than One Million Dollars ($1,000,000). Prior to the commencement of construction on the Site, the Development Team shall furnish or cause to be furnished to CRA/LA duplicate originals or appropriate certificates of such coverage.

3.4.6 Evidence of Insurance The Development Team will be required to provide CRA/LA with a certificate verifying such coverage and endorsements acceptable to CRA/LA before commencing services under any contract awarded by CRA/LA.

Please submit with your SOQ, a copy of your firm's current insurance certificate(s) as proof of current insurance coverage even though such coverage may not yet comply with the insurance requirements for the proposed contract as set forth in this RFQ.

If your current insurance coverage does not meet the insurance requirements indicated for the proposed contract, compliance with these requirements must be met prior to the award of any contract.

3.4.7 Modifications to Insurance Coverage CRA/LA reserves the right throughout the term of any contract awarded by CRA/LA to change the amounts and types of insurance required hereunder by giving the Development Team thirty- (30) days written advance notice of such change. If such change(s) shall result in substantial additional cost to the

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Development Team, CRA/LA agrees to negotiate additional compensation proportional to the increased benefit to CRA/LA and City of Los Angeles. Any increase to the compensation to be paid under the contract shall be accomplished by amendment to the contract which may require approval by the Board of Commissioners.

3.5 STANDARD TERMS AND CONDITIONS

3.5.1 Any contract awarded will incorporate the CRA/LA’s Standard Terms and Conditions (Rev. 1/08). (Exhibit A)

3.5.2 Please review the CRA/LA's Standard Terms and Conditions (Rev. 1/08) (Exhibit A). If your firm accepts the provisions therein, provide a statement in your SOQ similar to the following:

“We ______(enter the name of your firm) have reviewed the CRA/LA’s Standard Terms and Conditions (Rev. 1/08), (Exhibit A) as specified in this RFQ No. NP-12947, and accept the provisions as outlined therein.”

3.5.3 Please submit with your Statement of Qualifications, a detailed explanation in writing, for any and all exceptions and/or deviations to the CRA/LA’s Standard Terms and Conditions.

3.5.4 Developer awarded a contract must have or obtain a Business Tax Registration Certificate (BTRC No.) or a Vendor Registration Number (VRN) for the City of Los Angeles. Developers are not required to obtain a BTRC number at the time of submittals for this RFQ.

3.5.5 Any Contract awarded may be subject to the applicable provisions of the City of Los Angeles Slavery Disclosure Ordinance (SDO), as amended from time to time. The City’s Slavery Disclosure Ordinance can be viewed at www.lacity.org.

3.6 EVALUATION CRITERIA

All statements submitted in response to this RFQ will be reviewed for their relative strengths and weaknesses based on the submission requirements described herein. Selections through this Phase 1 process will be based on the completeness and quality of responses to this solicitation.

Upon receipt of the statements of qualifications (SOQ), a panel of professionals will review the submittals and will recommend a short list of Development Teams. All Teams will be notified of the decision. The CRA/LA will then issue an RFP to the short- listed development team(s) to begin Phase 2 of the developer solicitation process. The CRA/LA prefers that the short-listed development team(s) composition remain the same during this second phase. If the composition of the development team(s) changes

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during the second phase, the developer will be required to notify the CRA/LA of these changes. Finalists will be required to participate in a public presentation of their respective submittals. At its discretion, CRA/LA staff may contact references and industry sources, investigate previous projects and current commitments, interview some or all of the Team members, and take any other information into account in its evaluation of the responses. CRA/LA reserves the right to request clarification or additional information from Development Teams and to request that Teams make presentations to the CRA/LA Board of Commissioners, community groups or others.

In this second phase of the selection process, emphasis will be placed on the directly relevant qualifications and financial capacity of the respondent. Submittals will be evaluated based upon the following:

Identification of Developer and Associates (10 points) Development Team Qualifications (45 points) Financing Capacity (30 points) Community Experience/Benefits Provided (15 Points) T0TAL MAXIMUM POINTS (100 POINTS)

3.6.1 Identification of Developer and Associates Developer has put together a complete team to take the project from concept to completion. The identified individuals who will be working on this specific project have worked on similar projects and have the capacity to fulfill their responsibilities. A clear delineation of roles within the Development Team. [10 Maximum Points]

3.6.2 Development Team Qualifications Demonstrated experience of the Development Team in successful financing, redevelopment, operation and economic performance of projects on time. Experience working with the public sector in public/private real estate development projects. Quality of rehabilitation, architecture and urban design aspects of completed projects. Strong references from previous projects completed. Indication that the entities within this Development Team have worked together successfully on previous projects. [45 Maximum Points]

3.6.3 Financial Capacity Demonstrated ability to finance similar projects. Ability to forecast budgets and complete a project within budget. Ability to navigate changes in projected budgets and find ways to fill budget gaps. Experience with the New Markets Tax Credit Program would be useful. [30 Maximum Points]

3.6.4 Community Involvement Experience/Community Benefits Experience Demonstrated positive experience in working with community groups regarding prior or existing projects of the Development Team. Knowledge of and

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experience with public sector expectations for community benefits packages. [15 Maximum Points]

Other related factors, as appropriate, will be considered under each of these categories.

3.7 CITY AND CRA/LA NON-LIABILITY AND RELATED MATTERS

The RFQ and the selection process shall in no way be deemed to create a binding contract, agreement or offer of any kind between the City and CRA/LA and the respondents. If the City and CRA/LA select a Development Team pursuant to the RFQ, any legal rights and obligations between the successful team, if any, and the City and CRA/LA will come into existence only when an agreement is fully executed by all parties, and the legal rights and obligations of each party shall at the time be only those rights and obligations which are set forth in the agreement and any other documents specifically referred to in that agreement.

Each Development Team submitting a SOQ in response to this RFQ agrees that the preparation of all material for submittal to the City and CRA/LA and all presentations are at the Development Team’s sole cost and expense. In addition, each Development Team agrees that all documentation and materials submitted in response to this RFQ shall remain the property of the City and CRA/LA. Subject to the California law relating to access to public records, the City and CRA/LA may be required to publicly disclose all submitted information and materials to third parties requesting such information. Additional information on confidentiality may be obtained from Section 3.8.3, Confidentiality in this RFQ.

The City and CRA/LA reserve the right to alter the selection process in any way, to postpone the selection process for its own convenience at any time, to waive any defects in any submission, to issue a new RFQ any time, or to hire any Development Team it deems appropriate at its sole and absolute discretion within a RFQ evaluation process.

3.8 CRA/LA POLICIES FOR RFQ PROCESS

3.8.1 Amendments to the RFQ Any amendments to this RFQ shall be effected in writing and issued by CRA/LA's Contracts and Purchasing Department. If this RFQ is amended, then all terms and conditions, which are not modified, remain unchanged.

All interested respondents shall acknowledge receipt of any amendment to this solicitation by including a statement in its submittal that it has received the amendment (the amendment number, if any, shall be identified).

3.8.2 Right to Reject All Statements of Qualifications This RFQ is not a contract offer, a request for technical services or an agreement to construct any project that may be proposed or otherwise submitted and does

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not commit CRA/LA to enter into any ENA, OPA, DDA, Ground Lease, or any other agreement, or to accept any part of any submittal, including, without limitation, a selected submittal, or to pay any costs incurred in submission of any submittal. Should this process result in an ENA, the execution of such agreement does not constitute a contract, agreement or promise that such agreement will lead to a DDA, OPA, or Ground Lease, or that CRA/LA will agree to build or have built any proposed project.

3.8.3 Confidentiality All documents submitted to CRA/LA are generally subject to the California Public Records Act, and unless exempt from disclosure, must be made available to members of the public upon request. However, upon specific written request by a respondent, specific documents submitted in response to this RFQ may be kept confidential until CRA/LA makes a final determination to proceed with Development Team selection by marking the documents "Confidential", "Trade Secret" or "Proprietary".

At that time, confidential records may be returned to the successful respondent, if so requested. In the event CRA/LA is required to defend an action under the California Public Records Act with regard to a request for disclosure of any of the SOQ documents marked "Confidential", "Trade Secret" or "Proprietary", the applicant who submitted and so marked such document agrees to defend and indemnify CRA/LA from all costs and expenses of such defense, including reasonable attorneys fees of CRA/LA or attorneys fees awarded by a court arising out of such action.

3.8.4 Restriction on Disclosure of Data Non-Disclosure Markings and Restrictive Legends. Prospective development teams who include data or information in their submissions that they do not want disclosed to the public for any purpose or used by CRA/LA except for evaluation purposes, shall: a) Mark the title page with the following legend: "This submission includes data that shall not be disclosed outside CRA/LA and shall not be duplicated, used, or disclosed – in whole or part – for any purpose other than to evaluate this submission, subject to the California Public Records Act. If, however, a contract is awarded to this prospective firm as a result of, or in connection with, the submission of this data, CRA/LA shall have the right to duplicate, use or disclose the data to the extent provided in the resulting contract. This restriction does not limit CRA/LA's right to use information contained in this data if it is obtained from another source without restriction. The data subject to this restriction are contained in sheets ______.” b) Mark each sheet of data it wishes to restrict with the following legend: "Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this SOQ."

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3.9 QUESTIONS/CONTACT INFORMATION

Please refer all questions, inquiries and requests for clarification regarding this RFQ in writing to Ms. Donna Yep, Contracts Officer, by email to [email protected]. For full consideration, all questions, interpretations, or clarifications, either administrative or technical, must be received in writing via email not later than July 21, 2010.

3.10 CONTACT WITH CRA/LA, CITY AND COUNCIL OFFICE STAFF DURING QUALIFICATION PROCESS

During the period immediately following the deadline to submit Qualifications and continuing until the pre-qualified short-list has been established, proposers are not to contact CRA/LA, City, or Council Office staff, other than Ms. Donna Yep, Contracts Officer at [email protected] regarding this RFQ. Any such contact may result in the immediate disqualification of any proposer from consideration.

Issuance of this RFQ and receipt of Statements of Qualifications does not commit the CRA/LA to select any consultant for the pre-qualified list or to enter into any contract. The CRA/LA reserves the right to accept or reject any and all responses received for its convenience or it is in the best interest of the CRA/LA. We look forward to receiving a response from your firm. Thank you.

Sincerely,

Dushant Ahuja Contracts & Purchasing Manager

LIST OF EXHIBITS

Exhibit A – CRA/LA’s Standard Terms and Conditions (Rev. 01/08) Exhibit B – Map of Redevelopment Project Area Exhibit C – Business Profile Form Exhibit D – Business Credit Report Form Exhibit E - Equal Benefits Compliance Form Exhibit F - Contractor Responsibility Questionnaire Exhibit G 8.3 Acre Opportunity Site Parcel Map Exhibit H 8.3 Acre Opportunity Site Aerial Map Exhibit I 8.3 Acre Opportunity Site Ownership Table Appendices

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4. APPENDICES

The appendices provide detailed development guidelines and additional information regarding CRA/LA policies. The appendices are organized as follows:

4.1 CRA/LA DEVELOPMENT POLICIES AND REQUIREMENTS

4.1.1 Relocation of Site Occupants 4.1.3 Public Art Policy 4.1.4 CEQA Clearance 4.1.5 Opportunities for Owner Participation 4.1.6 Local Hire Program 4.1.7 Healthy Neighborhoods Policy

4.1.1 Relocation of Site Occupants The proposed development will require relocation of businesses. CRA/LA is obligated by law to assure that all site occupants receive relocation assistance pursuant to Government Code Sections 7260 et Seq. If Federal funds are used in the project, Federal requirements will also apply. If appropriate, businesses shall be accommodated within the newly proposed project or attempted to be relocated within the Project Area boundaries.

4.1.3 Public Art Policy The proposed development will be required to conform to the CRA/LA Art Policy, which requires that one percent (1%) of development costs (excluding the cost of land and affordable housing) be budgeted for public art. Up to sixty percent (60%) of the Public Art Budget maybe applied to on-site art, with a minimum of forty percent (40%) of the Public Art Budget contributed in cash to the Cultural Trust Fund. CRA/LA Art Policy can be found on the CRA/LA website at www.crala.org/. Click on “Other Programs/Art Program”.

4.1.4 CEQA Clearance The selected submittal will be subject to CEQA analysis. It will be the Development Team’s responsibility to retain an environmental consultant to complete the CEQA review process at the earliest stage of the project’s development. CRA/LA has a list of qualified environmental planning consultants that will be made available. CRA/LA will serve as the lead agency for the CEQA clearance.

4.1.5 Opportunities for Owner Participation The Amended Crenshaw Redevelopment Plan provides participation to owners and preferences to tenants within the Project Area. Owners are encouraged to respond to the RFQ with a project and will be judged similarly to all other applicants.

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4.1.6 Local Hire Program

Utilization of Project Area Residents: Construction Jobs Local Hire Program

One of the purposes of this agreement and the assistance provided by CRA/LA is to provide employment opportunities for the local population.

The Developer agrees to implement and to require all its contractors to implement, for the duration of construction on the project, a Local Hire Program as defined below:

A. LOCAL HIRING REQUIREMENTS

1. The following percentages shall be achieved for the project:

a. 30% of all construction work hours shall be performed by:

i. Community Area Residents, which means individuals whose primary place of residence is within the City of Los Angeles and within three miles of the Project Area’s border; or

ii. Local Residents, which means individuals whose primary place of residence is within the City of Los Angeles and is within a zip code containing at least part of one census tract with a rate of unemployment in excess of 150% of the Los Angeles County unemployment rate, as reported by the State of California Employment Development Department; or

iii. Priority shall be given to Community Area Residents. The zip codes in which a Community Area Resident and Local Resident may live shall be provided by the Community Redevelopment Agency of the City of Los Angeles (CRA/LA).

b. 10% of all construction work hours shall be performed by Disadvantaged Workers. The Disadvantaged Worker hours may count towards the 30% Community Area and Local Resident requirement, and/or the 50% Community Area and Local Resident Apprentice requirement. A Disadvantaged Worker means an individual whose primary place of residence is within the City of Los Angeles, and who, prior to commencing work on the project either:

i. Has a household income of less than 50% of the Area Median Income (AMI), or

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ii. Faces at least one of the following barriers to employment: being homeless; being a custodial single parent; receiving public assistance; lacking a GED or high school diploma; having a criminal record or other involvement with the criminal justice system; or suffering from chronic unemployment.

c. A minimum of 50% of all hours worked by construction Apprentices shall be performed by Community Area Residents and Local Residents. Priority shall be given to Community Area Residents. An Apprentice means any worker indentured in a bona fide construction apprenticeship program registered and approved by the State of California, Division of Apprenticeship Standards.

2. The status of a Disadvantaged Worker shall be certified by a Jobs Coordinator, described in Section B. 5.

3. The construction employer retains authority in making individual hiring decisions.

4. Hours worked by permanent residents of states other than California do not count towards total work hours when calculating the Local Hire Requirements.

B. REQUIREMENTS

1. Local Hire Schedule. The Developer shall develop a Local Hire Schedule that establishes the hiring process and approximate timetable to be followed by the Developer and all contractors for construction hiring to achieve the overall requirements of the Local Hire Program. The Local Hire Schedule shall provide the basis for the CRA/LA’s monitoring of the project and for the Jobs Coordinator’s preparation of local worker candidates. The Local Hire Schedule must be submitted to the CRA/LA Compliance Supervisor no less than thirty (30) days before construction begins, and shall be approved or disapproved by the CRA/LA Chief Executive Officer (CEO) or designee within two weeks of submittal by the Developer. The Developer shall not start construction without an approved Local Hire Schedule.

2. Local Hire Orientation. Before construction begins, the Developer shall contact the CRA/LA to schedule a Local Hire Orientation with its contractors. The purpose of this orientation is to help all contractors on the project understand the Local Hire Program, Local Hire Requirements, reporting requirements, role of the Jobs Coordinator, and answer questions. The Local Hire Orientation may take place concurrently with the pre-construction meeting, if applicable. To arrange for the Local Hire Orientation, the Developer shall contact: Mr. Jim Larkin, Compliance Supervisor, CRA/LA, 354 S. Spring Street, Suite 600, Los Angeles, CA 90013, (213) 977-1600 or [email protected].

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3. Maximizing Apprentices. The Developer’s contractors shall use the maximum number of Apprentices allowed by law.

4. Coordination with unions (if applicable). The Developer’s contractors that have an agreement with a construction union shall use the following procedures and shall inform each relevant union of these requirements:

a. The Developer’s contractors shall give priority to Local Residents, Community Residents, and Disadvantaged Workers, and shall promptly notify the CRA/LA Compliance Supervisor of any union that fails or refuses to refer Local Residents, Community Residents, and Disadvantaged Workers for jobs on projects receiving CRA/LA financial assistance.

b. The Developer’s contractors shall sponsor any qualified entry-level Disadvantaged Worker as a first period apprentice and shall indicate this by sending a letter or form, as appropriate, to the relevant union or apprenticeship program expressing a commitment to sponsor the Disadvantaged Worker in question (e.g. hiring the individual to enable his/her entry into an apprenticeship program).

c. The Developer’s contractors shall use a Craft Request Form provided by the CRA/LA, a document through which contractors shall request workers from unions. The Developer’s contractors shall send copies of all Craft Request Forms to the Jobs Coordinator at the same time as they are submitted to the unions. All copies of all Craft Request Forms submitted and/or received, including transmission verification documents that are date/time imprinted or a log of related faxes sent and received regarding Local Hire Requirements shall be maintained and submitted to the CRA/LA when requested.

5. Jobs Coordinator. The Developer shall hire a Jobs Coordinator from the CRA/LA list of pre-qualified firms in order to meet the requirements of the Local Hire Program. A Jobs Coordinator means an independent third-party entity with whom the Developer’s contractors work to facilitate implementation of the Local Hire Requirements. Notwithstanding the availability of the Jobs Coordinator to assist, the Developer is solely responsible for achieving the Local Hire Requirements.

a. Each of the Developer’s contractors shall use a Craft Request Form provided by the CRA/LA, a document through which contractors shall request workers from the Jobs Coordinator.

b. The Jobs Coordinator shall provide services in support of the Developer’s Local Hire Requirements including:

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i. Establish a point of contact to provide information about available job opportunities; ii. Certify the status of Disadvantaged Workers; iii. Reach out to targeted populations; iv. Conduct or coordinate programs that prepare interested residents for entry into construction jobs; v. Develop and maintain an up-to-date list of qualified City residents; vi. Facilitate relationships among approved apprenticeship programs and contractors to enable prompt referrals; vii. Educate contractors regarding tax deductions, tax credits and other benefits for which they may be eligible based on their implementation of the Local Hire Requirements; and viii. Assist contractors with reporting by working with contractors and the CRA/LA or authorized representatives where appropriate.

6. Local Hire Report. The Developer shall report quarterly to the CRA/LA on the progress of the Local Hire Program in a format to be determined by the CRA/LA. The report shall detail the number of (i) Community Area Residents, (ii) Local Residents, (iii) Disadvantaged Workers, (iv) Community Area and Local Resident Apprentices, (v) total Apprentices, and (vi) all other City residents and/or non- residents that have been hired by all contractors; the number and percentage of work hours that have been performed by each category of worker for that specific reporting period; and in aggregate since the inception of the project. If requested by the CRA/LA, the Developer shall require any contractor to provide copies of payroll records to verify the Local Hire Report. All Local Hire Reports, the Local Hire Schedule, and payroll records shall be sent to: Jim Larkin, Compliance Supervisor, CRA/LA, 354 S. Spring Street, Suite 600, Los Angeles, CA 90013 or [email protected].

C. DEMONSTRATION OF COMPLIANCE

1. If the Developer has met or exceeded all Local Hire Program targets, the Developer is in compliance.

2. If the Developer has not met or exceeded all Local Hire Program targets but has satisfied each element of the list of activities below, the Developer or contractor is in compliance: 1) Develop and submit a CRA/LA-approved Local Hire Schedule 30-days prior to construction start; 2) Convene a pre-bid meeting, if applicable, and a Local Hire Orientation prior to construction start; 3) Ensure that all contractors contractually agree to comply with terms of Local Hire Program and obtain letters of assent from each contractor; 4) Hire a Jobs Coordinator from the CRA/LA’s pre-qualified list of firms and regularly contact and document contact with a Jobs Coordinator;

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5) Use and document use of CRA/LA-approved Craft Request Forms sent to construction unions, if applicable, and Jobs Coordinator; 6) Document waiting period for requested referrals and any lack of responses from unions, if applicable, and Jobs Coordinator; 7) Document reasons for not hiring referred candidates from target populations, if applicable; 8) Submit quarterly Local Hire Reports in a timely manner; and 9) Allow CRA/LA monitor prompt and willing access to documentation of above activities.

D. NON-COMPLIANCE

1. The Developer shall monitor and enforce the Local Hire Program requirements imposed on all of its contractors, including withholding payments to those contractors who violate these requirements.

2. (a) In the event that the Developer is out of compliance and fails to monitor or enforce the requirements of this program against any contractor, the Developer shall be liable for the full amount of any liquidated damages, assessed at the average project wage for each hour that the project was short of the goal.

(b) The CRA/LA and the Developer agree that injury to the CRA/LA and the public caused by non-compliance to this Local Hire Program will be difficult or impossible to accurately estimate; and that the liquidated damages specified in this Section D.2 are a reasonable estimate of the probable loss.

3. The CRA/LA may withhold monies owed to the Developer, may impose liquidated damages on the Developer in the amounts specified herein, and/or may declare the Developer and or any of its contractors non-responsible and be debarred from further contracts for a period of two years in conformance with the CRA/LA’s Policy on Contractor Responsibility.

4. In the event the Developer disputes either the determination of non-compliance, the calculation of liquidated damages, or a declaration of non-responsibility, the Developer may appeal to a panel appointed by the CRA/LA CEO, with final appeal to the CRA/LA Board of Commissioners.

E. The CRA/LA CEO shall have the authority to amend or modify provisions of this program as reasonably necessary to carry out the purpose of this Agreement and carry out the objectives of the parties.

4.1.7 Healthy Neighborhoods Policy Development Teams are encouraged to comply with the City’s Sustainable Building Initiative and the CRA/LA’s Healthy Neighborhoods Policy. This may include use of active and passive energy conservation techniques, use of recycled materials and “green” materials, and use of water conservation

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techniques including xeriscaping and other conservation methods as may be recommended by relevant agencies. Provision of storage areas for recycling, solid waste management techniques, and incorporation of design features allowing flexibility to use reclaimed gray water are encouraged. The City’s Sustainable Building Initiative can be found at: http://eng.lacity.org/projects/sdip/. The CRA/LA Healthy Neighborhood Policy can be found at: www.crala.org.

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