REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
REQUEST FOR PROPOSALS FOR REDEVELOPMENT OF CITY-OWNED PROPERTY PIN #29-24-200-067
RFP ISSUED: August 13, 2020 PROPOSALS DUE: August 28, 2020 – 3:00pm
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
Section 1. Project Summary
The City of Calumet City (“City”) is seeking development proposals (“Proposals”) from qualified firms (“Developers”) for the opportunity to purchase and re-develop commercial property located at 1747 E. West Road in Calumet City (PIN# 29-24-200-067).
Because of its proximal location to Interstate 94 and River Oaks Mall and other commercial businesses, the City Council considers this property (“Site”) an important site that offers unique commercial development opportunities. Currently, the property is zoned Special Use (Commercial). The Site, however, is currently neighbored by a 136,000 square foot former Target building which will be occupied by an indoor farming hydroponic development.
DEVELOPMENT VISION
The vision for the property’s development is still emerging and the City will look at Developer proposals and prioritize them according to job creation, market demand, and highest economic and financial benefits to the City.
Section 2. PROJECT INTRODUCTION
COMMUNITY OVERVIEW
Situated in the Southland Region of Chicago near one of the busiest interstates only minutes from Chicago, Illinois. The location makes it simple to access transportation routes and resources including the regional PACE bus services.
Calumet City is the largest “city” in the South Suburbs of Chicago with a population of 37,000 and over 2.3 million people living within a 20 mile area forming a strong workforce.
Commercial partners within the River Oaks West area include, Sam’s Club, Bob’s Furniture, Men’s Warehouse, Shoe Carnival, Big Lots, Party City, Petco, Marshals and Ross Dress for Less. Additionally, there is a Lincoln, Cadillac, Toyota, Kia and Hyundai several boutique shops and national food chains including Panda Express, Buffalo Wild Wings, White Castle, and Taco Bell. The River Oaks West is adjacent to the River Oaks Center Mall anchored by Macys.
Calumet City has been a regional destination for retail and automobile sales for several decades providing ample shopping opportunities within the River Oaks West and River Oak Center Mall.
There are several colleges and universities within the region including Purdue University, South Suburban College, Governor’s State University, and University of Illinois at Chicago, University of Chicago, Chicago State University, Calumet College of St. Joseph and University of Indiana. All of these universities and community colleges are within an easy commute to Calumet City.
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
SITE OVERVIEW
The City-owned property consists of one lot that offers 3.54 acres at 1747 E. West Road in Calumet City, Illinois (PIN 29-24-200-067). The Site was previously developed for a Circuit City. The City acquired the property through the Cook County No Cash Bid process
. 3.54 acres, see Appendix A for Property Profile . Large Box Retail Building constructed in 1993 32,845sq ft. +/- . Near Regional Shopping Center and Mall, car dealerships and more . Connection to River Oaks Drive and Interstate 94 . Substantial traffic county: 24,700 on River Oaks Drive and 22,100 on Torrence Avenue . Property is owned by Calumet City and had been vacant since November, 2008 . Subject to Operation and Easement Agreement-requires retail element
AVAILABLE ANALYSIS
The City completed an appraisal of the building and property. The information is provided as a reference only. The City does not warrant or represent the accuracy or relevance of the study to the developer’s proposed project. The selected developer may need to amend and/or pursue any studies that they deem necessary.
. Appraisal Report –March 20, 2019 “as-is” unimproved valuation was $500,000 at that time. Original sales price of the building was $4.45 million in 1993.
GENERAL PROJECT COMMENTS/STANDARD CONDITIONS OF APPROVAL
The intended outcome of this Request for Proposals (“RFP”) process is the development of a Redevelopment Agreement (“RDA”) that will establish terms and conditions, and further define the scope, design, overall use and development of the Project upon which the selected Developer can purchase acquire and develop the preferred project on the City Property.
During the RFP period, Developers and their employees, agents or representatives, shall have the right of reasonable access to the City Property during normal business hours for the purposes of inspecting
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois the Property, undertaking any necessary evaluations, measurements, tests and otherwise conducting due diligence to ensure that the City Property is suitable for Developer’s intended use. Notwithstanding anything else in this Request for Proposals, Developer shall defend, indemnify and hold the City, its employees, officers and agents, harmless from any injury, property damage or liability arising out of the exercise by Developer of this right of access, other than injury, property damage or liability relating to the gross negligence or willful misconduct of the City or its officers, agents or employees.
The City also wants to share Site Development Goals that Developers should be mindful of as proposals are prepared. Please refer to Appendix B.
Section 3. PROPOSAL QUESTIONS
To evaluate the alternatives and select the appropriate Developer, the City is requesting development proposals that will help the City finalize its vision and move ahead with property disposition and development. Proposals must respond to the following questions and provide:
1. Letter of Intent: Included a letter stating the developer’s interest in the project, including the amount of the offer for the purchase of the property and an identified and specific use (or user). Purchase offer should include the price, the assumptions made to justify the price and the time needed for due diligence and closing.
2. Description of the Developer’s proposed project: a. Type of use(s) planned (e.g. commercial type) b. Conceptual design, sketch plan or other design concepts
3. Project Summary and Timeline- Provide a written description of the proposed development. Additional graphics, such as initial site plans, may be included as visual aids. The project summary should describe in sufficient detail the concept of the ideal development for the site, overall scope of the project, timeframe within which the proposed project would be started and completed, and any other relevant information. The timeframe should demonstrate the developer’s readiness and ability to proceed on the project with time schedules reasonably described.
4. Description of the Developer’s experience developing the proposed type of project elsewhere: a. Name and location of project(s) b. Description of project(s) c. Completion date of project(s) d. Experience in dealing with other City projects and/or have experience in purchasing government property for private development
5. Explanation of the role the Developer’s organization will play in the proposed project and a list of other partners and their roles (if any).
6. The proposed general timeframe for the development of the Developer’s proposed project. If multiple components or phases are planned, a list of all.
7. Description of the benefit(s) your proposed project brings to the City including:
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
a. Property sales price of at least ten dollars ($10.00) or greater offer to purchase the property. b. Projected property and sales tax revenue projections for the proposed use c. Projected sales tax and other revenues from the project (if applicable) d. Projected number of direct jobs e. Other benefits to the City
Section 4: SELECTION PROCESS
Proposals for the purchase and redevelopment of the property will be evaluated according to the following criteria:
. The extent to which the proposed development satisfies a desired or unique niche in the marketplace and helps diversity the economy of the city; . The increase in tax/fee revenues that may result from the development; . The contribution that the development will make toward increased employment and earnings within the City, including but not limited to the number and quality of jobs created; . The degree to which the development may potentially stimulate other desirable economic development and/or redevelopment activity; . The beneficial economic impact the development may have on the area immediately surrounding the project; . The demonstrated capacity of the developer to finance, market, manage and complete similar previous projects, including the ability to secure successful tenants; . The developer’s experience with initiating and completing projects of a similar scale and scope; . The developer’s demonstrated readiness and ability to proceed on the project including reasonable time schedules and attainable benchmarks.
While the amount paid by the developer to the city for the purchase of the property may be considered, it will not be the deciding factor. The city views this project as a long-term investment in our community, not as a real estate transaction designed to generate the highest sale price possible.
Section 5: INCENTIVES
The subject property is eligible for Cook County Property Tax Classification “Class 8” Program, The program was developed as an inventive to revitalize vacant commercial and industrial properties. Details on the incentive program and potential costs savings can be provided by contacting the City with your inquiries (see “Inquiries” below).
The property is not currently within a tax increment financing (TIF) district, however, as part of a negotiated redevelopment agreement the City would consider establishing this property as a TIF to assist with redevelopment costs.
Any other incentives not specified herein would also require negotiation within the developer’s redevelopment agreement with the City.
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
The property is also within the Calumet Region Enterprise Zone, a State of Illinois designated zone that allows developers to save on development costs and permitting. As part of a redevelopment agreement the city would support the application to the Calumet Regional Enterprise Zone.
Section 6: TIMELINE
Release Request for Proposals ...... August 13, 2020 Deadline for Submittal of Proposals ...... 12:00 p.m., October 9, 2020 Evaluation of Submission by City ...... October 9 to October 23, 2020 Preliminary presentations to City Council Finance Committee...... October 29, 2020 City Council Considers Redevelopment Agreement...... November 12, 2020
Section 7: INQUIRIES & SUBMISSIONS
Please direct all inquiries concerning this RFP to:
City of Calumet City Attn: Joseph Wiszowaty, Community & Economic Development 204 Pulaski Road Calumet City, IL 60409 Telephone: 708.891.8138 Email: [email protected] reference: RFP
Please direct submission for this RFP to: City of Calumet City Attn: CITY CLERK- RFP 1747 E. West Rd 204 Pulaski Road Calumet City, IL 60409
Section 8: DEVELOPER’S RESPONSIBILITIES
Following Developer selection and execution of a Redevelopment Agreement, Developer shall proceed with detailed due diligence, pre-development, and entitlement activities while working with City to negotiate a Purchase and Sale Agreement for the property.
The City anticipates that the general scope of the successful Developer team’s responsibilities would include, but not be limited to:
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
Entitlements
The Developer shall be responsible for all aspects of the Project including predevelopment planning, environmental review and design. The selected Developer shall be responsible, at its sole expense, for obtaining all land use entitlements and other government approvals required for its proposed Project.
During the time specified in the redevelopment agreement, the selected Developer shall prepare and perform all due diligence at Developer's cost. In addition the Developer may, during the due diligence period, without any guaranty of approval therefor, seek City approval for variances, special uses, etc. that may be required for the development of the Project.
Pre-development & Due Diligence Costs
The selected Developer shall bear all pre-development and due diligence costs relating to this project. All fees or expenses of engineers, architects, financial consultants, attorneys, planning or other consultants or contractors retained by Developer for any studies, analysis, evaluation, report, schedule, estimate, environmental review, surveys, planning and/or design activities, drawings, specifications or other activity or matter relating to the Project shall be the sole responsibility of and undertaken at the sole cost and expense of Developer and no such activity or matter shall be deemed to be undertaken for the benefit of, at the expense of, or in reliance upon the City. Developer should review covenants, operation & easement agreement as development should conform to said agreement.
Deposit
Upon selection, the developer shall deposit with the City the sum of Twenty Thousand Dollars ($20,000.00) (“Deposit Funds”). The Deposit Funds shall be used and applied to the purchase price of the property.
Legislative Action
City and Developer acknowledge that the City must exercise its independent legislative authority in making any and all findings and determinations required of it by law concerning the sale and conveyance of City property. Developer selection does not restrict the legislative authority of the City in any manner whatsoever and does not obligate the City to enter into the Redevelopment Agreement or to take any course of action with respect to the Project.
Financing The Developer shall be responsible for providing funding for the Project, whether it be in the form of debt financing, equity, tax credits or a combination of these methods. If debt financing is used, no financial risk or credit risk shall be imposed upon or borne by the City.
Construction
The Developer shall be responsible for all demolition, construction and commissioning of the Project including obtaining all permits, fees, and approvals necessary for construction of the Project as necessary.
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
Section 9: PROPOSAL INSTRUCTIONS
A complete, concise and professional response to this RFP will enable the City to identify the Developer who will provide the highest benefit to the City and will be indicative of the level of the Developer’s experience and commitment to the proposed project. Proposals must demonstrate that the approach, design, and financing plan for the proposed project will allow the project’s successful development and delivery.
The following minimum information should be provided in each proposal and will be utilized in evaluating each proposal submitted. To expedite the evaluation of proposals, submittals should be no more than thirty pages. Proposals should include the following items:
. Request for Proposal Submittal Cover Sheet (see template – Appendix C). . Complete Letter of Intent . Detailed completion of all questions in Section 3 “Scope of Development” which shall include the following: o The firm / team’s statement of qualifications. o A narrative description that expresses the firm / team’s understanding of the project and vision for development. The narrative should reflect the respondent’s development design intent, strategy and implementation expertise, and understanding of the scope of work. o Resumes with related expertise of the specific Developer and any other consultant or subcontractor resumes with relevant expertise and experience. o Descriptions of the firm’s / team’s last three completed projects that demonstrate the Developer's: . Experience in working with municipalities and/or other public agencies to develop either industrial, business park, commercial, or a mixed-use combination. . Ability to complete projects of a similar size, scope, and purpose in a timely manner. . Description of any other completed projects (representative examples) of similar types of projects. Include current addresses, telephone numbers, and the names of reference contacts for each project. Similar project descriptions should be submitted for all subcontractors. o Proposed offer price to purchase the Property in an amount equal to or to exceed an amount greater than Ten and No/100 Dollars ($10.00- minimum price). o Analysis of the proposed job creation potential, market demand, and the economic and financial benefits of various potential uses proposed for the Property. o A proposed approach for undertaking this redevelopment, including . Detailed scope of work and . Schedule for predevelopment analysis, entitlement review, construction, etc. o Firm/Team to provide documentation to show that they have the ability to complete the purchase and redevelopment of the proposed project. A letter of credit from a bank would be adequate to show proof of funds.
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
o Standard statements: . A statement that this RFP shall be incorporated in its entirety as a part of the Developer's proposal. . A statement that this RFP and the Developer's proposal will jointly become part of the Redevelopment Agreement for this project when the Redevelopment Agreement is fully executed by the Developer and the City, . A single and separate section "EXCEPTIONS TO THE CITY'S REQUEST FOR PROPOSAL" containing a complete and detailed description of any/all of the exceptions to the provisions and conditions of this Request for Proposal upon which the Developer’s proposal is contingent and which shall take precedent over this RFP, . A statement that the Developer will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin.
The City will not be liable for any expenses incurred by Developers responding to this solicitation. All material submitted will be kept by the City.
Section 10. STANDARD TERMS AND CONDITIONS
The City has the sole authority to select a Developer for this project and reserves the right to reject any and all proposals and to waive any informality or minor defects in proposals received.
The City reserves the right to retain all proposals submitted and to use any ideas in a proposal, regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the proposing Developer of the conditions contained in this Request for Proposals, unless clearly and specifically noted.
The City will not pay for any information requested, nor is it liable for any costs incurred by the Developers in preparing and submitting proposals.
CONTRACTOR INDEMNIFICATION
Developer shall indemnify, defend and hold the City, their officers, agents and employees harmless from any and all claims, damages, losses, causes of action and demands, including, without limitation, the payment of all consequential damages, expert witness fees, reasonable attorney’s fees and other related costs and expenses, incurred in connection with or in any manner arising out of Developer’s performance of the work contemplated by this RFP. Submitting a response to this RFP signifies that the Developer is not covered under the City’s general liability insurance, employee benefits, or worker’s compensation. It further establishes that the Developer shall be fully responsible for such coverage. Developer’s obligation to indemnify shall survive expiration or termination of this RFP and shall not be restricted to insurance proceeds, if any, received by the City, and their officers, agents and employees.
ADDITIONAL INDEMNITY OBLIGATIONS
Developer shall defend, with counsel of City’s choosing and at Developer’s own cost, expense and risk, any and all claims, suits, actions or other proceedings of every kind that may be brought or instituted against City, and their officers, agents and employees as a result of this RFP. Developer shall pay and satisfy any judgment, award or decree that may be rendered against City, and their officers, agents and
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois employees as part of any such claim, suit, action or other proceeding. Developer shall also reimburse City for the cost of any settlement paid by City and their officers, agents and employees as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Developer shall reimburse City and their officers, agents and employees for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.
INTELLECTUAL PROPERTY
Any system or documents developed, produced or provided in response to this RFP, including any intellectual property discovered or developed by Developer in the course of performing or otherwise as a result of its work, shall become the sole property of the City unless explicitly stated otherwise in the RFP response. The Developer may retain copies of any and all material, including drawings, documents, and specifications, produced by the Developer in performance of this proposal. The City and the Developer agree that to the extent permitted by law, until final approval by the City, all data shall be treated as confidential and will not be released to third parties without the prior written consent of both parties.
PUBLIC RECORD
Proposals received will become the property of the City. All proposals, evaluation documents, and any subsequent contracts will be subject to public disclosure per the “Illinois Freedom of Information Act,” ILCS 140/5 et seq. All documents related to this solicitation will become public records once discussions and negotiations with proposers have been fully completed and an award has been announced.
Appropriately identified trade secrets will be kept confidential to the extent permitted by law. Any proposal section alleged to contain proprietary information will be identified by the proposer in boldface text at the top and bottom as “PROPRIETARY.” Designating the entire proposal as proprietary is not acceptable and will not be honored. Submission of a proposal will constitute an agreement to this provision for public records. Pricing information is not considered proprietary information.
ASSIGNMENT Developer selection includes consideration of the merits of the firm / team. Assignment of the proposal is discouraged and the City reserves the right to cancel the contract if the contract is assigned without City’s written consent.
RFP ADDENDA The City may determine it is necessary to revise any part of this solicitation. Revisions will be made by written addenda and it is the Developer’s responsibility to understand and comply with any addenda to this solicitation. Addenda may be submitted to:
City of Calumet City Attn: Joseph Wiszowaty, Community & Economic Development 204 Pulaski Rd Calumet City, IL 60409 Telephone: 708.891.8138 Email: [email protected] Page | 10 City-Owned Property Redevelopment RFP July, 2020
REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
APPENDIX A
PROPERTY PROFILE
The property is located at 1747 East-West Road in Calumet City (PIN# 29-24-200-067). In total the site occupies 3.54 acres+/-, or 154,202 square feet +/-. The structure is a single story former retail big box site occupying 32,854 sq ft. +/- square feet; the remaining square feet is adjacent parking.
. Near Regional Shopping Center and Mall, car dealerships and more . Connection to River Oaks Drive and Interstate 94 . Substantial traffic county: 24,700 on River Oaks Drive and 22,100 on Torrence Avenue . Property is owned by Calumet City and had been vacant since November, 2008 . Subject to Operation and Easement Agreement - requires retail element. Developer should review covenants, operations and easement agreement
The site is located in the high-traffic River Oaks Drive corridor near a Regional Shopping Center and Mall, several new car dealerships and boutique shops and national chain restaurants. The site is approximately 600 feet south of River Oaks Drive, approximately one-half mile from Interstate 94 (Bishop Ford Freeway), and approximately one-quarter mile from Illinois Route 83 (Torrence Avenue). Average daily traffic (ADT) counts for the major roads adjacent to the site are as follows:
. Interstate 94: 132,000 daily . River Oaks Drive: 26,500 daily . Torrence Avenue: 25,400 daily
The subject property is part of a larger community shopping center initially developed in the late 1980’s early 1990s. The entire site included 225,000 square feet of retail space on an 18.6 acre site. The subject property is a former Circuit City store. The City of Calumet City acquired the site in 2017. The subject property is designated as Special Use zoning, very similar to Planned Unit Development (PUD) in the Calumet City Zoning Ordinance. Proposers are encouraged to contact the city’s Economic Development Department at (708) 891-8138 or email [email protected] for further information regarding the applicable zoning regulations.
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
Near Entrance Open Retail Area– East
RETAIL AREA looking toward entrance
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
APPENDEX B
SITE DEVELOPMENT GOALS
Development of this property shall accomplish the following City goals:
Enhance the Tax Base - Enhancing the tax base of the City of Calumet City will help grow and sustain a more vibrant commercial corridor in the community.
Ensure Design Quality and Compatibility - The site occupies a prominent location in Calumet City, and its subsequent use and appearance should serve as a catalyst for future redevelopment. Appropriate design techniques and materials should be employed to ensure that the development produces a high- quality, attractive building that further enhances the appearance of the area.
Fill a niche in the Calumet City Business Profile – Projects that bring a new or enhanced business type or model to the city are encouraged. Proposers are also encouraged to review the Calumet City Comprehensive Plan, completed in 2014, or contact the city’s Economic Development Department, for information on local market trends.
A range of development types is preferred by the City, but anticipated development is not limited to these types. The range includes the following:
. Retail uses complimentary to existing businesses and a good fit for the surrounding community; . Entertainment-related businesses or activities; . Recreation-related businesses or activities; . Arts or culturally-related businesses or activities; . Offices, including research and development activities; . Full-service restaurants and/or breweries. . Grocery Store
The City of Calumet City reserves the right to select other uses not included in the above list, if the selected developer makes a strong and persuasive argument that another use will fulfill the City’s development goals for the site.
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REQUEST FOR PROPOSALS City-Owned Property- 1747 E. West Rd., Calumet City, Illinois
APPENDIX C RFP Submittal Cover Sheet Appendix C- THIS IS A REQUIRED FORM Developer To Verify these are included CITY STAFF TO COMPLETE Bidder to verify Description Staff Evaluation Points Max point Included
Does the LOI clearly define the intended 5 Completed signed use? Y or N and dated Letter of Does the LOI clearly state incentives Intent 5 requested? How strong is the intended business use? 12 Firm/Teams Y or N Statement of 10 Qualifications Does the firm/team have the experience Narrative. Does the narrative clearly express the Narrative clear intent expressed 5 firm/team's intent, Y or N strategy and
implementation and is the scope of work Scope of work defined 5 clearly defined?
10 Do they list experience with other Firm/Teams municipalities or agencies on development? Y or N Experience in development Did they complete their projects timely? 10
10 Did they list examples and specific projects?
How would you rate the overall offer price 6 for the project? Proposed Offer Price Y or N & Funding Capacity Financial Ability to complete project. Did 4 the firm/team provide copies of their ability to purchase and complete redevelopment?
Does the firm/team provide the number of full-time and part-time jobs created? Rate 5 the overall impact for the City based on the Economic Impact on numbers provided Y or N City Rate the projects impact on the City? Will 5 this be a positive economic impact?
Will this be financially beneficial to the 6 surrounding businesses?
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