QUALIFICATION OF DEVELOPMENT ENTITY SALEM REDEVELOPMENT AUTHORITY RFQ NO. 19-57-200 JUNE 28, 2019 SUBMITTED BY: BARNAT DEVELOPMENT ENTITY: ARCHITECT: DEVELOPMENT Barnat Development ICON Architecture, Inc. 100 Cambridge St 101 Summer Street 14th Floor 5th Floor Boston, MA 02114 Boston, MA 02110 PAGE LEFT BLANK INTENTIONALLY BARNAT DEVELOPMENT | ICON ARCHITECTURE 2 I. Executive Summary II. Development Team III. Concept Plan IV. Appendix with Team Member Resumes V. Non-Collusion + Tax Attestation Form BARNAT DEVELOPMENT PAGE LEFT BLANK INTENTIONALLY BARNAT DEVELOPMENT | ICON ARCHITECTURE 4 BARNAT DEVELOPMENT 100 Cambridge St Thomas P. Watkins 14th Floor Purchasing Agent Boston, MA 02114 Salem City Hall 93 Washington Street Salem, MA 01970 June 28, 2019 Dear Mr. Watkins: The Barnat Development team is thrilled to submit this response to the Salem Redevelopment Authority’s Request for Qualification for the reuse of the County Commissioners Building, the Superior Court and the lot at 252 Bridge Street. Our award-winning team seeks to partner with the City to develop a new center to Salem that will achieve three key goals: 1. Reviving the awesome historic buildings as community assets that are open to the public and provide vital mixed-use activity in the heart of Salem. 2. Enhancing the Salem Transit-Oriented Development (TOD) district with new construction housing to meet the demands of your growing city. 3. Bringing history to life through an integrated experience that appeals to residents, businesses, community members and tourists. Barnat Development is committed to developing the highest quality mixed-use projects located at high volume transit stations to enhance the urban fabric of communities. Our team recently completed the award-winning Holmes Beverly project, a boutique rental building featuring a grocer/restaurant concept by an Frank McClelland, iconic local chef, at the Beverly Depot Commuter Station. The success of Holmes Beverly is a product of the previous seventeen (17) years of this network of professionals developing thousands of mixed-income units and hundreds of thousands of square feet of retail/community assets in urban transit-rich locations. Our best-in-class team will work creatively to consider the context, physical assets and financial feasibility of the project while working in concert with public agencies, local businesses and community members to meet their needs. The priority will be to renovate the existing architecturally significant courthouse buildings into uses that attract the public. A true mix of retail, restaurants, art galleries, public space, governmental use, office, hotel and residential is possible with the right planning, design and management. The construction of up to 165 new housing units at the Crescent lot will provide much-needed new housing to support the growth in Salem as well as provide a strong financial foundation for the overall project. This renovation and construction project will require continued commitment from the City and State to be able to meet the expectations of the community. The large historic buildings have already been the beneficiaries of a significant moth-balling process, but the resources needed to restore the building while enhancing its magnificent features will require creative public and BARNAT DEVELOPMENT | ICON ARCHITECTURE 5 private financing in the form of historic tax credits, housing production programs and district improvement financing vehicles. Barnat Development is a proven partner to communities and public agencies. We will be laser- focused on moving this project forward quickly and effectively, much in the same way that we did in Beverly. Holmes Beverly began construction only ten months after designation, with the first new units opening sixteen months later. We achieved such great results in Beverly because we are transparent in the opportunities and challenges presented by these sites and we work to best accommodate the directives and guidelines established through previous years of local planning. We will undertake the same thoughtful, honest dialogue and execution with the Salem Redevelopment Authority to ensure that this critical heart of Salem is activated and enjoyed by its 400th anniversary. Our team has deep local roots and is well-represented by extraordinary women-owned businesses. We have a network of advisors to counsel the team and city partners on a variety of potential uses. This depth of team allows us to quickly evaluate and consider alternatives to ensure that a lively mixed-use redevelopment will be financially feasible and meet the needs of the community. Our concept will integrate a strong physical design and will be executed in a top-flight manner with creative uses that will tell a special story and propel a new generation of place-making in Salem. We appreciate the opportunity to share our team’s story and initial concepts in this RFQ response. We look forward to partnering with the Salem Redevelopment Authority and the community to develop a high-quality and achievable revitalization plan that fulfills our collective goals and expectations. Please contact me at 617-755-8289 or [email protected] with any questions or comments. Sincerely, Sarah Barnat President Barnat Development LLC BARNAT DEVELOPMENT | ICON ARCHITECTURE 6 REFERENCES FOR BARNAT DEVELOPMENT Public Agency Partner Reference Mayor Michael Cahill City of Beverly [email protected] 978.921.6000 Equity Partner Kathleen McGilvray Director of Investment, MHIC 21 Custom House Street, 8th Floor Boston, MA 02110 [email protected] 617.850.1008 Lender/Bank Reference Drew Garfinkle SVP, Commercial Real Estate Boston Private Bank [email protected] 617.912.1982 Additional References Available Upon Request BARNAT DEVELOPMENT | ICON ARCHITECTURE 7 PAGE LEFT BLANK INTENTIONALLY BARNAT DEVELOPMENT | ICON ARCHITECTURE 8 HOLMES BEVERLY | BEVERLY, MA DEVELOPED BY: BARNAT DEVELOPMENT II. DEVELOPMENT TEAM Sarah Barnat, President of Barnat Development, has reimagining a vacant parcel into a vibrant transit-oriented assembled a highly qualified and creative team to partner building with dynamic retail and homes accessible to with the Salem Redevelopment Authority. When selected households with a range of incomes”. as developer, a new entity, Barnat Salem LLC, will be established to acquire and redevelop the sites with Sarah The team has worked together extensively over the past Barnat serving as managing member. Sarah will maintain seventeen years on a web of projects that are models majority control and decision-making throughout the for Transit-Oriented Development, Historic Preservation, development process. Waterfront Activation and Sustainability with Sarah Barnat serving as Project Manager. Our collective vision and Barnat Development has re-convened the award-winning execution on projects beginning with Maverick Landing Holmes Beverly team to develop a comprehensive and in East Boston has delivered thousands of mixed-income feasible vision for the re-use of these sites in Salem. This residential units, vibrant retail and unparalleled public team was awarded both the local CREW and National space. We work closely with our public agency partners CREW 2018 Achievement Awards for Networking given to design and permit projects that respond to community the exceptional inclusion of women-owned businesses desires. We solve problems by seeking win-win solutions. in the development of Holmes Beverly. Like Holmes We deliver transformative projects where many others Beverly, it is anticipated that approximately 75% of all only see problems and challenges. This talented team soft cost expenditures will be paid to WBE-certified firms. is excited by the prospect of bringing new life to Salem’s Massachusetts Housing Investment Corporation, the historic treasures and helping it to grow responsibly by Equity Investor at Holmes Beverly, awarded Sarah Barnat adding housing near transit. with its 2018 Excellence in Community Development award for “her visionary plan and steadfast execution in BARNAT DEVELOPMENT | ICON ARCHITECTURE 9 DEVELOPED BY BARNAT DEVELOPMENT MULTI-FAMILY MIXED-USE WITH RETAIL HOLMES BEVERLY BEVERLY, MA Located in the heart of downtown Beverly, this transit-oriented development is connected to the Beverly Depot commuter rail station. Holmes Beverly is a 67-unit mixed use multi-family project developed by Sarah Barnat through Barnat Beverly LLC. The project started construction at 110-114 Rantoul Street in Beverly, MA just ten months after designation by the MBTA. The penthouse roofdeck offers long views and a cool breeze over the water. Tall ceilings and expansive windows encourage the ground floor commercial space to spill out to the public arcade and adjacent pocket park. Exceeding expectations, the Holmes Beverly progressed through permitting and completed construction in less than two year’s time. BARNAT DEVELOPMENT | ICON ARCHITECTURE 10 Holmes Beverly Highlights Include: • First transaction closed by Barnat Development LLC, a WBE/DBE Real Estate Development and Brokerage firm founded by Sarah Barnat in October 2015. • 75% of all Soft Cost Expenditures to WBE firms • MBTA Ground Lease – Transaction closed within 10 months of designation • Permitted within three months with the City of Beverly • Financed with $5 Million from MHIC’s Healthy Neighborhood Equity Fund • MassHousing’s Workforce Housing Funds of $2.2 million to support 22% of units as workforce housing • $16 million Construction Loan from Boston Private Bank and