September 18, 2019 Invitation for “Letters of Interest” for the 93.3-acre Verdemont/I-215 Project Interested Developers: The City of San Bernardino (“City”) invites Letters of Interest (“LOI”) from developers that are interested in purchasing and developing the City’s 93.3 acre Verdemont/I-215 Project (refer to Exhibit “A” for map). The 93.3 acre Verdemont/I-215 Project Site (the “Project Site”) is a significant development opportunity because it is: 1. Adjacent to and is visible from the Interstate 215 Freeway; 2. Immediately connectable to the greater Inland Empire area at the nearby Palm Avenue interchange; 3. Located in an area with higher end single family residential development; 4. To the northeast of and across the freeway from an 8-mile long 4.0-square mile North San Bernardino Industrial District (located along Historic Route 66); 5. In close proximity to California State University, San Bernardino (“CSUSB”); 6. Near the Glen Helen Amphitheater located within the Glen Helen Regional Park; 7. Near the Little League Western Region Headquarters; and 8. Currently vacant and available for development. Developer selection will involve a two-step process. This invitation to submit an LOI is the first step that will result in the identification of the most qualified developers. The second step will invite the most qualified developers to submit an in-depth proposal for consideration by the Mayor and City Council. It is anticipated that the City and the most qualified developer selected will enter into an Exclusive Right to Negotiate Agreement (“ENA”) for the Project Site and the negotiation of the sale and development of the property through a Disposition and Development Agreement (“DDA”). Background The Project Site (refer to Exhibit “B” for a list of the parcels) was previously acquired by the former San Bernardino Redevelopment Agency. Following the State’s decision to dissolve all California redevelopment agencies, the City has taken the necessary steps to enable the Project Site to be sold for future development. It is important to note that the ultimate disposition will require additional compliance with certain procedures 290 North D St, San Bernardino, CA 92401 | P: 909-384-5357 | F: 909-384-5155 | www.SBCity.org Invitation for Letters of Interest Verdemont/I-215 Project September 2019 related to the wind-down of former redevelopment agencies. The City will be responsible for managing that process. The Project Site is identified in the Successor Agency’s Long Range Property Management Plan (“LRPMP”) as Site No. 26. The LRPMP provides more detailed information on the Project Site. A copy of the LRPMP is available on the City’s website under the Successor Agency of the former Redevelopment Agency. There are three interchanges off of the I-215 that serve the greater North San Bernardino/Verdemont area (i.e., Glen Helen Parkway on the north, Palm Avenue in the center and University Parkway on the south), which makes the area well-connected to the greater Inland Empire. The Project Site is located just south of the Glen Helen Amphitheater, the largest outdoor music venue in the United States with a seating capacity of 65,000. The Amphitheater hosts internationally known top-tier performers that draw from the region. The immediate area is also home to California State University San Bernardino and the Little League Western Region Headquarters. Further, the Verdemont area, which is approximately 10 miles north of the Downtown area, is one of the City's most desirable neighborhoods with excellent socio-economics and quality housing. The Project Site is the only currently available large-size freeway adjacent vacant property under single ownership in San Bernardino. The Project Site is currently zoned for RL (Residential Low – 3.1 d.u. per acre), RL 3.5 (Residential Low – 3.5 d.u. per acre) and PFC (Publicly Owned Flood Control). It is possible that the City may consider alternate land uses for the Project Site, subject to compatibility with adjacent zoning and land uses. There are two important factors that may affect the use of the Project Site: 1. The Project Site has been designated by the U.S. Fish and Wildlife Service as a San Bernardino Merriam’s Kangaroo Rat habitat area. More information may be found at this link: https://ecos.fws.gov/ecp0/profile/speciesProfile?spcode=A0G8. Therefore, the Project Site may be subject to certain mitigation measures associated with the San Bernardino Merriam’s Kangaroo Rat (“K-Rat Mitigation Measures”); and 2. One parcel in its entirety, along with portions of 3 other parcels within the Project Site have been zoned by the City as Publicly Owned Flood Control (PFC). Therefore, portions of the Project Site may be subject to certain flood control requirements of the City and/or the San Bernardino County Flood Control District for flood control purposes (“Special Flood Control Requirements”). Based on the foregoing, the Project Site may be subject to certain K-Rat Mitigation Measures and/or Special Flood Control Requirements. Since these matters may affect the net area available for development and/or the cost of developing the Project Site City of San Bernardino Page 2 of 4 Invitation for Letters of Interest Verdemont/I-215 Project September 2019 (and thus the ultimate sales price for the Project Site), the City may provide a prospective buyer additional time to conduct an appropriate due diligence review with respect to assessing these matters in furtherance of supporting the successful implementation of the intended development scenario. This may involve providing an agreement for an exclusive negotiation period and a disposition and development agreement to confirm the desired development commitments. It is anticipated that the Project Site will generate significant interest for development that is compatible with the types of land uses prevalent in the general area. With that in mind, the City prefers that the Project Site be developed with uses that are complementary to, and will enhance the quality of development in the City of San Bernardino in general and the Verdemont area in particular. Non-Mandatory Meeting with City / Successor Agency There will be a non-mandatory meeting on Tuesday, October 1, 2019, at 2:00 PM to brief potential responders on the Verdemont/I-215 Project, the LOI and subsequent RFP processes, and to respond to any questions received prior to this meeting. This meeting will be held in the City Council Chambers located at 201 N. “E” Street, Suite 301, San Bernardino, CA. In addition to the briefing, City and Successor Agency representatives will be available to answer questions. While this meeting is non- mandatory, it is highly recommended that representatives of interested firms attend since answers to any questions will not be separately disseminated. How to Apply If your firm is interested in pursuing this tremendous opportunity of developing the Project Site, please submit your firm’s LOI to the City no later than Thursday, October 17, 2019 (“Submission Deadline”) at 5 p.m. The contents of the LOI should include the following components: 1. Cover letter; 2. Statement of Qualifications (for the firm [or firms, if co-ventured] and the key individuals that will be assigned to the project); 3. A concept plan and/or general vision for the Project Site, including a narrative and preliminary Project Site graphic; 4. Description of relevant experience with similar type projects (minimum of five projects), including a listing of end-users for each example site, as may be applicable; 5. Listing of references (including private, public, banking and equity) for projects completed within the last 10 years, including the example sites referenced in component No. 4; and 6. Any additional relevant information. City of San Bernardino Page 3 of 4 Invitation for Letters of Interest Verdemont/I-215 Project September 2019 It is requested that the LOI be submitted by the Submission Deadline in both hard copy and Portable Document Format (“PDF”). The PDF shall be submitted on a flash drive and included with six (6) hard copies of the LOI. Please submit your LOI packet to: Michael Huntley Director of Community and Economic Development Director City of San Bernardino Attn: Ms. Stephanie Sanchez, Executive Assistant 201 North “E” Street, Third Floor San Bernardino, California 92401 Estimated Time Line for Review of LOIs: Non-mandatory meeting: October 1, 2019 LOI Submittal deadline: October 17, 2019 City Review of LOI’s Received: by October 31, 2019 Interviews of Developers (if needed): by November 14, 2019 Notification of Finalists for Detailed RFP: by November 25, 2019 Submission deadline for RFP: by January 2020 (TBD) Exclusive Negotiating Agreement: by February 2020 (TBD) We look forward to receiving your LOI. For any questions or additional information, please contact the Community and Economic Development Department at 909/384- 5357. Sincerely, Michael Huntley Director of Community and Economic Development City of San Bernardino Exhibits Exhibit A – Site and Area Map Exhibit B – List of parcels City of San Bernardino Page 4 of 4 Exhibit A Exhibit B Site No. 26: N. Little League Drive at the 215 Freeway Accessor Parcel Numbers 0261-111-21 0261-451-29 0261-461-23 0261-111-23 0261-451-30 0261-461-24 0261-111-25 0261-451-31 0261-461-25 0261-111-29 0261-451-32 0261-461-26 0261-111-30 0261-451-33 0261-461-27 0261-111-33 0261-451-34 0261-461-28 0261-111-35 0261-451-35 0261-461-33 0261-111-37 0261-451-36 0261-461-34 0261-111-40 0261-451-37 0261-461-35 0261-121-01 0261-451-38