Town Center Core
Morrisville, NC
Town Center Core Development Partner Submissions
Meeting Agenda • Developer Outreach Process • Developer Submissions – Armada Hoffler – Castle Development Partners – Greystar • Proposal Comparisons • Next Steps
Developer Outreach Process
Request for Proposal Timeline RFP Approved
RFP’s Due
Town Council Review of Proposals
Development Agreement
RFP Approved Developer Outreach Developer Proposal Review Developer Selection Memorandum of Understanding/Negotiation Development Agreement
August 2017
Fall 2017
November 30th
January 2018
Summer 2018
DFI RFP Outreach• 55 Development Firms contacted to gauge interest in project – Firms identified for regional experience, expertise in mixed-use development and quality of work – Outreach conducted through emails, phone conversations and conferences – 30 firms expressed interest in learning more about project
• 4 Site Visits conducted with interested development firms – Site walks, tour of project area, discussion of future phases of Town Center Core
• 3 Proposals submitted by qualified development teams
Developer Submissions
RFP Evaluation Criteria • Qualifications and Experience of Development Team • Quality of the Proposed Design Concept –
Ability to incorporate Required Design Elements
–
Ability to incorporate Preferred Design Elements
• Quality of the Concept to Align with Public Interests • Financial Benefits to the Town • Capacity of Development Team to execute project • Quality of proposals to align with stated public participation terms –
Sell land at Fair Market Value
–
Master lease the ground floor of parking in deck
• Submission of all elements asked within the RFP Disclaimer: Received proposals are non-binding and do not represent the final design or development program. Those items would be finalized during development agreement.
Armada Hoffler Properties
Armada Hoffler- Development Team Team Member
Mixed-Use Experience
PPP Partnered w/ Experience Developer
Developer- Armada Hoffler Properties
N/A
Architect- Built Form Architecture
General Contractor- Armada Hoffler Construction
Relevant Project
Description
Virginia Beach, VA Town Center
PPP Town Center with over 3M SF of development
4525 Main St.- Virginia Beach, VA
286 Residential Units/ 23k SF retail/ 950 space parking deck
Whetstone- Durham, NC
204 Residential Unit project/ Structured Parking
Armada Hoffler- Design Concept Program Elements Residential Units
172 Units
Commercial Space
20,000SF
Structured Parking
358 Spaces
Surface Parking
51 Spaces
Site
3.5 Acres
Library in SW corner
Library Parking needs for met
Multi-Family anchors private use
Foxglove Dr. Ext. in current align.
Commercial use along Carolina St.
Visual Screening of Parking Deck
Required Design Elements Preferred Design Elements
10
Armada Hoffler- Public Interests Public Interests
Does Concept Achieve this Interest?
Does Concept Plan fit into larger Town Center Core Vision?
Yes
Does Plan create a vibrant, walkable downtown environment?
Yes
Does plan preserve Morrisville’s historic core?
Yes
Does proposal minimize public investment?
(next slide)
Notes
Armada Hoffler- Financial Analysis Investment
Amount
Total Project
$37,000,000
Site Acquisition
$760,000
Parking Strategy
Notes $190,000/Acre Town assumes cost recovery lease of portion of parking deck from AH*
* Number of spaces and length of lease to be determined with more analysis if selected. DFI estimates the cost recovery rate for the parking structure at approximately $140/space/month.
Armada Hoffler- Developer Capacity Capacity Financial Capacity
Ability
Notes
Defaults
None
Disclosures
None
Begin Construction (Date)
Mid 2019
Armada Hoffler- Other Y/N Original Submission Package include all required elements?
Yes
Submission package arranged in cohesive manner?
Yes
Does development team ask for options for future phases?
Yes
Notes
Right of first refusal on future development tracts.
Armada Hoffler- Rendering
Castle Development Partners
Castle Development Partners- Development Team Team Member
Mixed-Use Experience
Developer- Castle Development Partners Architect- Fugleberg Koch, PLLC
PPP Experience
Partnered w/ Developer
None stated in proposal
Low-Income Housing Tax Credit (LIHTC) Deals Only
N/A
General Contractor- Summit Contractors
Relevant Projects
Description
Arden Place- Charlottesville, VA
212 residential unit project
Beacon on 5th- Charlottesville, VA
241 residential unit project
Adams Crossing- Waldorf, MD
213 residential unit project
Castle Development Partners- Design Concept Program Elements Residential Units
283 Units
Commercial Space
35,000 SF
Structured Parking
351 Spaces
Surface Parking
164 Spaces
Site
6 Acres
Library in SW corner
Library Parking needs for met
Multi-Family anchors private use
Foxglove Dr. Ext. in current align.
Commercial use along Carolina St.
Visual Screening of Parking Deck
Required Design Elements Preferred Design Elements
18
Castle Development Partners- Public Interests Public Interests
Does Concept Achieve this Interest?
Does Concept Plan fit into larger Town Center Core Vision?
Yes
Does Plan create a vibrant, walkable downtown environment?
Yes
Does plan preserve Morrisville’s historic core?
Yes
Does proposal minimize public investment?
(next slide)
Notes
Plan includes a clubhouse along Carolina Street that could be flex retail space
Castle Development Partners- Financial Analysis Investment
Amount
Total Project
$42,300,000
Site Acquisition
$685,000
Parking Strategy
Notes $114,000/Acre Town lease parking spaces in the deck for $50/space/month*
* Castle willing to negotiate with Town on number of spaces and length of lease. ** DFI estimates a cost recovery rate for the parking deck of approximately $140/space/month
Castle Development Partners- Developer Capacity Capacity Financial Capacity
Ability
Notes
Defaults
None
Disclosures
None
Begin Construction (Date)
Q1 2019
18-20 month construction period
Castle Development Partners- Other Y/N
Notes
Original Submission Package include all required elements?
No
Missing renderings, team structure, financial capacity and had several discrepancies in package
Submission package arranged in cohesive manner?
No
Missing elements and plan was illegible
Does development team ask for options for future phases?
Yes
Right of first refusal on future residential sites
Castle Development Partners- Rendering
Greystar Development Group
Greystar- Development Team Team Member
Mixed-Use Experience
PPP Partnered w/ Experience Developer
Developer- Greystar Development Group
N/A
Architect- Cline Design
General Contractor- Greystar Dev. Construction
Relevant Projects
Description
Elan City Center- Raleigh, NC
213 Residential Unit project/ Structured Parking
Overture Crabtree- Raleigh, NC
203 Residential Unit project/ Structured Parking
Elan Midtown- Charleston, SC
200 Res. Units/ 7,000 SF retail project/ Structured parking
Elan Station R- Atlanta, GA
285 Res. Units/ 16,000 SF retail/ Structured Parking
Greystar- Design Concept Program Elements Residential Units
305 Units
Commercial Space
-
Structured Parking
348 Spaces
Surface Parking
194 Spaces
Site
5.4 Acres
Library in SW corner
Library Parking needs for met
Multi-Family anchors private use
Foxglove Dr. Ext. in current align.
Commercial use along Carolina St.
-
Visual Screening of Parking Deck
Required Design Elements Preferred Design Elements
26
Greystar- Public Interests Public Interests
Does Concept Achieve this interest?
Notes
Does Concept Plan fit into larger Town Center Core Vision?
Yes
Plan doesn’t incorporate commercial space but identifies future commercial development pad.
Does Plan create a vibrant, walkable downtown environment?
No
The plan does not incorporate commercial space into the program
Does plan preserve Morrisville’s historic core?
Yes
Does proposal minimize public investment?
(next slide)
Greystar- Financial Analysis Investment
Amount
Total Project
$48.5M
Site Acquisition
$1,228,537
Parking Strategy
Notes $225,000/Acre Town reimburses Greystar for full cost of deck during construction estimated by Greystar at $7.5M.* Town gets access to 70 spaces in deck**
* This is an infeasible deal structure ** With $7.5M loan, 3% Interest, 20 year amortization, the Town would pay approx. $600 per public space/month in debt service.
Greystar- Developer Capacity Capacity Financial Capacity
Ability
Notes
Defaults
None
Disclosures
None
Begin Construction (Date)
3/2019
Units delivered in Q3 2020
Greystar- Other Y/N
Notes
Original Submission Package include all required elements?
No
Missing renderings
Submission package arranged in cohesive manner?
Yes
Does development team ask for options for future phases?
Yes
Option to purchase future blocks after completion of Phase I
Greystar
Proposal Comparison
Proposal Comparison- Team Experience Armada Hoffler
Castle DP
Greystar
Mixed-Use Experience
No mixed-use development experience
Public Private Partnership Experience
LIHTC deals only
Team Structure Experience
Proposal Comparison- Program Metrics Armada Hoffler
Castle DP
Greystar
Site
3.5 Acres
6 Acres
5.4 Acres
Residential Units
172 Units
283 Units
305 Units
Commercial Space
20k SF
35k SF
-**
Structured Parking
358*
351
348
51
164
199
Surface Parking (within site)
*Armada Hoffler stated they may decrease the size of the deck based on shared parking opportunities. AH would complete this study during due diligence period if selected. ** Greystar did not include any commercial space in the development program but identified a commercial pad along Carolina St. as a future phase.
Proposal Comparison- Public Interests Armada Hoffler
Castle DP
Greystar
Does Concept fit into Larger town Center Core vision?
Does Plan create a vibrant, walkable downtown environment?
No commercial space
Does Plan preserve Morrisville’s historic core?
Town enters into cost recovery lease for set # of spaces
Town leases parking at $50/space/month
Town assumes full cost of deck
Does proposal minimize public investment?
Proposal Comparison- Financials Armada Hoffler Total Project Cost Acquisition Price per Acre Parking Strategy
Castle DP
Greystar
$37M
$42.3M
$48.5M
$190k/acre
$114k/acre
$225k/acre
Town lease a set number of spaces in parking deck for $50/space/month
Town reimburses Greystar for full parking deck costs estimated by Greystar at $7.5M
Town lease a portion of parking deck at cost-recovery rate*
* Number of spaces and length of lease to be determined with more analysis if selected. DFI estimates the cost recovery rate for the parking structure at approximately $140/space/month.
Proposal Summary Matrix Developer
Team Experience
Design Public Minimize Concept Interests Public Costs
Armada Hoffler
Mixed Use and PPP Experience
6/6 Required and preferred design elements
3/3 Public Interests
TBD with lease terms for parking deck
Ability to secure financing and begin project in timely manner
Castle
No Mixed Use and only LIHTC PPP experience
6/6 Required and Preferred design elements
3/3 Public Interests
TBD with lease terms for parking deck
Ability to secure financing and begin project in timely manner
Greystar
Mixed Use and PPP Experience
5/6 Required and Preferred design elements*
2/3 Public Interests*
Town assumes full cost of deck upfront
Ability to secure financing and begin project in timely manner
* Due to lack of commercial space in proposed program.
Developer Capacity
Next Steps • Town Council review proposals on January 9th • Town Council work session on January 16th • Town Council resolution for preferred developer on January 23rd
Town Center Core Development Partner Submissions
Meeting Agenda • Developer Outreach Process • Developer Submissions – Armada Hoffler – Castle Development Partners – Greystar • Proposal Comparisons • Next Steps
Developer Outreach Process
Request for Proposal Timeline RFP Approved
RFP’s Due
Town Council Review of Proposals
Development Agreement
RFP Approved Developer Outreach Developer Proposal Review Developer Selection Memorandum of Understanding/Negotiation Development Agreement
August 2017
Fall 2017
November 30th
January 2018
Summer 2018
DFI RFP Outreach• 55 Development Firms contacted to gauge interest in project – Firms identified for regional experience, expertise in mixed-use development and quality of work – Outreach conducted through emails, phone conversations and conferences – 30 firms expressed interest in learning more about project
• 4 Site Visits conducted with interested development firms – Site walks, tour of project area, discussion of future phases of Town Center Core
• 3 Proposals submitted by qualified development teams
Developer Submissions
RFP Evaluation Criteria • Qualifications and Experience of Development Team • Quality of the Proposed Design Concept –
Ability to incorporate Required Design Elements
–
Ability to incorporate Preferred Design Elements
• Quality of the Concept to Align with Public Interests • Financial Benefits to the Town • Capacity of Development Team to execute project • Quality of proposals to align with stated public participation terms –
Sell land at Fair Market Value
–
Master lease the ground floor of parking in deck
• Submission of all elements asked within the RFP Disclaimer: Received proposals are non-binding and do not represent the final design or development program. Those items would be finalized during development agreement.
Armada Hoffler Properties
Armada Hoffler- Development Team Team Member
Mixed-Use Experience
PPP Partnered w/ Experience Developer
Developer- Armada Hoffler Properties
N/A
Architect- Built Form Architecture
General Contractor- Armada Hoffler Construction
Relevant Project
Description
Virginia Beach, VA Town Center
PPP Town Center with over 3M SF of development
4525 Main St.- Virginia Beach, VA
286 Residential Units/ 23k SF retail/ 950 space parking deck
Whetstone- Durham, NC
204 Residential Unit project/ Structured Parking
Armada Hoffler- Design Concept Program Elements Residential Units
172 Units
Commercial Space
20,000SF
Structured Parking
358 Spaces
Surface Parking
51 Spaces
Site
3.5 Acres
Library in SW corner
Library Parking needs for met
Multi-Family anchors private use
Foxglove Dr. Ext. in current align.
Commercial use along Carolina St.
Visual Screening of Parking Deck
Required Design Elements Preferred Design Elements
10
Armada Hoffler- Public Interests Public Interests
Does Concept Achieve this Interest?
Does Concept Plan fit into larger Town Center Core Vision?
Yes
Does Plan create a vibrant, walkable downtown environment?
Yes
Does plan preserve Morrisville’s historic core?
Yes
Does proposal minimize public investment?
(next slide)
Notes
Armada Hoffler- Financial Analysis Investment
Amount
Total Project
$37,000,000
Site Acquisition
$760,000
Parking Strategy
Notes $190,000/Acre Town assumes cost recovery lease of portion of parking deck from AH*
* Number of spaces and length of lease to be determined with more analysis if selected. DFI estimates the cost recovery rate for the parking structure at approximately $140/space/month.
Armada Hoffler- Developer Capacity Capacity Financial Capacity
Ability
Notes
Defaults
None
Disclosures
None
Begin Construction (Date)
Mid 2019
Armada Hoffler- Other Y/N Original Submission Package include all required elements?
Yes
Submission package arranged in cohesive manner?
Yes
Does development team ask for options for future phases?
Yes
Notes
Right of first refusal on future development tracts.
Armada Hoffler- Rendering
Castle Development Partners
Castle Development Partners- Development Team Team Member
Mixed-Use Experience
Developer- Castle Development Partners Architect- Fugleberg Koch, PLLC
PPP Experience
Partnered w/ Developer
None stated in proposal
Low-Income Housing Tax Credit (LIHTC) Deals Only
N/A
General Contractor- Summit Contractors
Relevant Projects
Description
Arden Place- Charlottesville, VA
212 residential unit project
Beacon on 5th- Charlottesville, VA
241 residential unit project
Adams Crossing- Waldorf, MD
213 residential unit project
Castle Development Partners- Design Concept Program Elements Residential Units
283 Units
Commercial Space
35,000 SF
Structured Parking
351 Spaces
Surface Parking
164 Spaces
Site
6 Acres
Library in SW corner
Library Parking needs for met
Multi-Family anchors private use
Foxglove Dr. Ext. in current align.
Commercial use along Carolina St.
Visual Screening of Parking Deck
Required Design Elements Preferred Design Elements
18
Castle Development Partners- Public Interests Public Interests
Does Concept Achieve this Interest?
Does Concept Plan fit into larger Town Center Core Vision?
Yes
Does Plan create a vibrant, walkable downtown environment?
Yes
Does plan preserve Morrisville’s historic core?
Yes
Does proposal minimize public investment?
(next slide)
Notes
Plan includes a clubhouse along Carolina Street that could be flex retail space
Castle Development Partners- Financial Analysis Investment
Amount
Total Project
$42,300,000
Site Acquisition
$685,000
Parking Strategy
Notes $114,000/Acre Town lease parking spaces in the deck for $50/space/month*
* Castle willing to negotiate with Town on number of spaces and length of lease. ** DFI estimates a cost recovery rate for the parking deck of approximately $140/space/month
Castle Development Partners- Developer Capacity Capacity Financial Capacity
Ability
Notes
Defaults
None
Disclosures
None
Begin Construction (Date)
Q1 2019
18-20 month construction period
Castle Development Partners- Other Y/N
Notes
Original Submission Package include all required elements?
No
Missing renderings, team structure, financial capacity and had several discrepancies in package
Submission package arranged in cohesive manner?
No
Missing elements and plan was illegible
Does development team ask for options for future phases?
Yes
Right of first refusal on future residential sites
Castle Development Partners- Rendering
Greystar Development Group
Greystar- Development Team Team Member
Mixed-Use Experience
PPP Partnered w/ Experience Developer
Developer- Greystar Development Group
N/A
Architect- Cline Design
General Contractor- Greystar Dev. Construction
Relevant Projects
Description
Elan City Center- Raleigh, NC
213 Residential Unit project/ Structured Parking
Overture Crabtree- Raleigh, NC
203 Residential Unit project/ Structured Parking
Elan Midtown- Charleston, SC
200 Res. Units/ 7,000 SF retail project/ Structured parking
Elan Station R- Atlanta, GA
285 Res. Units/ 16,000 SF retail/ Structured Parking
Greystar- Design Concept Program Elements Residential Units
305 Units
Commercial Space
-
Structured Parking
348 Spaces
Surface Parking
194 Spaces
Site
5.4 Acres
Library in SW corner
Library Parking needs for met
Multi-Family anchors private use
Foxglove Dr. Ext. in current align.
Commercial use along Carolina St.
-
Visual Screening of Parking Deck
Required Design Elements Preferred Design Elements
26
Greystar- Public Interests Public Interests
Does Concept Achieve this interest?
Notes
Does Concept Plan fit into larger Town Center Core Vision?
Yes
Plan doesn’t incorporate commercial space but identifies future commercial development pad.
Does Plan create a vibrant, walkable downtown environment?
No
The plan does not incorporate commercial space into the program
Does plan preserve Morrisville’s historic core?
Yes
Does proposal minimize public investment?
(next slide)
Greystar- Financial Analysis Investment
Amount
Total Project
$48.5M
Site Acquisition
$1,228,537
Parking Strategy
Notes $225,000/Acre Town reimburses Greystar for full cost of deck during construction estimated by Greystar at $7.5M.* Town gets access to 70 spaces in deck**
* This is an infeasible deal structure ** With $7.5M loan, 3% Interest, 20 year amortization, the Town would pay approx. $600 per public space/month in debt service.
Greystar- Developer Capacity Capacity Financial Capacity
Ability
Notes
Defaults
None
Disclosures
None
Begin Construction (Date)
3/2019
Units delivered in Q3 2020
Greystar- Other Y/N
Notes
Original Submission Package include all required elements?
No
Missing renderings
Submission package arranged in cohesive manner?
Yes
Does development team ask for options for future phases?
Yes
Option to purchase future blocks after completion of Phase I
Greystar
Proposal Comparison
Proposal Comparison- Team Experience Armada Hoffler
Castle DP
Greystar
Mixed-Use Experience
No mixed-use development experience
Public Private Partnership Experience
LIHTC deals only
Team Structure Experience
Proposal Comparison- Program Metrics Armada Hoffler
Castle DP
Greystar
Site
3.5 Acres
6 Acres
5.4 Acres
Residential Units
172 Units
283 Units
305 Units
Commercial Space
20k SF
35k SF
-**
Structured Parking
358*
351
348
51
164
199
Surface Parking (within site)
*Armada Hoffler stated they may decrease the size of the deck based on shared parking opportunities. AH would complete this study during due diligence period if selected. ** Greystar did not include any commercial space in the development program but identified a commercial pad along Carolina St. as a future phase.
Proposal Comparison- Public Interests Armada Hoffler
Castle DP
Greystar
Does Concept fit into Larger town Center Core vision?
Does Plan create a vibrant, walkable downtown environment?
No commercial space
Does Plan preserve Morrisville’s historic core?
Town enters into cost recovery lease for set # of spaces
Town leases parking at $50/space/month
Town assumes full cost of deck
Does proposal minimize public investment?
Proposal Comparison- Financials Armada Hoffler Total Project Cost Acquisition Price per Acre Parking Strategy
Castle DP
Greystar
$37M
$42.3M
$48.5M
$190k/acre
$114k/acre
$225k/acre
Town lease a set number of spaces in parking deck for $50/space/month
Town reimburses Greystar for full parking deck costs estimated by Greystar at $7.5M
Town lease a portion of parking deck at cost-recovery rate*
* Number of spaces and length of lease to be determined with more analysis if selected. DFI estimates the cost recovery rate for the parking structure at approximately $140/space/month.
Proposal Summary Matrix Developer
Team Experience
Design Public Minimize Concept Interests Public Costs
Armada Hoffler
Mixed Use and PPP Experience
6/6 Required and preferred design elements
3/3 Public Interests
TBD with lease terms for parking deck
Ability to secure financing and begin project in timely manner
Castle
No Mixed Use and only LIHTC PPP experience
6/6 Required and Preferred design elements
3/3 Public Interests
TBD with lease terms for parking deck
Ability to secure financing and begin project in timely manner
Greystar
Mixed Use and PPP Experience
5/6 Required and Preferred design elements*
2/3 Public Interests*
Town assumes full cost of deck upfront
Ability to secure financing and begin project in timely manner
* Due to lack of commercial space in proposed program.
Developer Capacity
Next Steps • Town Council review proposals on January 9th • Town Council work session on January 16th • Town Council resolution for preferred developer on January 23rd
