Town Center Core
Morrisville, NC
Town Center Core Development Partner Submissions
January 9, 2018
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’s Due
RFP Approved
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- 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
9
Castle Development Partners
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
11
Greystar Development Group
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
13
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?
*Vibrancy and walkability was based on the establishment of a retail corridor and incorporation of ground floor retail along that corridor.
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 work session on January 16th • Town Council resolution for preferred developer on January 23rd • MOU spring 2018 • Development Agreement summer 2018
Questions
21
Town Center Core Development Partner Submissions
January 9, 2018
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’s Due
RFP Approved
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- 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
9
Castle Development Partners
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
11
Greystar Development Group
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
13
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?
*Vibrancy and walkability was based on the establishment of a retail corridor and incorporation of ground floor retail along that corridor.
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 work session on January 16th • Town Council resolution for preferred developer on January 23rd • MOU spring 2018 • Development Agreement summer 2018
Questions
21
