CITY OF TRENTON DEPARTMENT OF HOUSING & ECONOMIC DEVELOPMENT

REQUEST FOR PROPOSALS FOR THE REDEVELOPMENT OF THE FORMER BELL TELEPHONE BUILDING LOCATED AT 216 EAST STATE STREET (BLOCK 607, Lot 14)

Request for Proposal Issued: October 27, 2014 Proposals Due: November 26, 2014 1

I.

Purpose of RFP

The City of Trenton (the “City”) is seeking qualified proposals for the redevelopment of a vacant, city-owned property located at 216 East State Street, Trenton, New Jersey (Block 607, Lot 14), formerly the Bell Telephone Building. The City will entertain viable development options to redevelop the Property that adhere to the goals and vision of the existing redevelopment plan and other planning documents. II.

Site Description

The Building was constructed in 1913 and was specifically designed for use as a telephone exchange building. The Building was expanded in the 1940s and operated as a telephone exchange company until it ceased operations and relocated in the 1980s. The building has been vacant for over 30 years and has suffered damage due to weather and vandalism. The property consists of approximately 0.39 acres of land, and is improved with a nine-story masonry and steel building having a total area of approximately 91,670 square feet. The property is entirely covered by the building footprint and asphalt pavement. The building’s basic design is “U”-shaped, with a large, open courtyard at the rear of the property. The property is located in the City’s Canal Banks Redevelopment Area (the “Redevelopment Area”) pursuant to which the City adopted the Canal Banks Area Redevelopment Plan (the “Redevelopment Plan”) in 1994 and subsequently amended in 1996, 1998, 2000 and 2005. Within the Redevelopment Area, the Property is situated in the Business A (BA) zone. One of the stated objectives of the Redevelopment Plan, in particular, the area that encompasses the Property, is to develop a mixed-use complex. The property is situated in the heart of downtown Trenton and located on one of the main arteries that lead to and from downtown Trenton. Downtown Trenton is comprised of a variety of commercial businesses, residential areas and educational institutions. The City’s largest employer is the government sector, which yields over 20,000 state workers each day coming into the downtown. III.

Relevant Documents     

Canal Banks Redevelopment Area Map: Attachment A Canal Banks Redevelopment Area Plan: Attachment B Canal Banks Redevelopment Area Zoning Map: Attachment C Bell Building Floor Plans: Attachment D Living Trenton: The Downtown Capital District Master Plan: Available for download at http://www.trentonnj.org/Cit-e-Access/webpage.cfm?TID=55&TPID=9125

Respondents to the RFP are encouraged to familiarize themselves with the vision and guiding themes of the City’s planning documents. Redevelopment of the Property must further the City’s

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vision as set forth in these plans, in particular, the Downtown Capital District Master Plan and the Canal Banks Redevelopment Area Plan. IV.

Environmental Condition

In 2002, the City retained a consultant to perform a Preliminary Assessment/Phase I for the Property which resulted in a report entitled Preliminary Assessment/Phase I Environmental Site Assessment of the Former NJ Bell Telephone Building, 216 East State Street, Trenton, NJ (November 2002). The relevant documents are listed below and can be accessed by clicking on the link provided:  Preliminary Assessment Report, minus appendices (ENSR; 2002). Full report available for review on request. The ACM and Lead-in-Paint surveys were completed as part of the PA. The survey reports are two of the Appendices in the PA report.  Asbestos-containing material survey, minus data (ENSR; 2002). Data available for review on request.  Lead-in-Paint Survey (ENSR; 2002). Documents Link: ftp://208.64.144.76 Port 21  User name: HOUSING-PUB

 Password: 049hzp& V.

Background Information (City Demographics)

Trenton, New Jersey is a 7.5 square mile city with a history that dates back more than 300 years. The City is located in Central New Jersey on the Delaware River, and serves as the State Capital and the Mercer County Seat. Trenton is located in one of the most affluent counties in New Jersey. The City was once the epicenter of business, retail, and cultural activity in the region and one of the nations’ leading industrial cities. Trenton began experiencing decline following World War II when manufacturing companies began closing and moving to other locations. During the 1960’s, Trenton experienced an exodus of middle-income residents and its housing stock deteriorated. Additionally, with the advent of suburban shopping malls, the City’s retail sector declined. Trenton’s population is 85,044 (American Community Survey (ACS), U.S. Census Bureau 20072011). Approximately 53% (44,756) of Trenton’s population is African American, 34% (29,156) is Caucasian and 13% (11,132) is other. Breaking down the population even further by ethnic mix, approximately 33% (27,985) of the population identifies as Hispanic while 67% (57,059) identifies as Non-Hispanic. Additionally, in recent years the City has witnessed a marked increase in the numbers of immigrants who have selected Trenton as a place of residence. The recent ACS shows a small increase in population since the 2010 decennial census totals which is likely indicative of a stabilization of the City’s population. Still these figures reflect a decline in population from a peak of over 128,000 in the 1950’s. 3

According to the 2007-2011 ACS, the median family income in the City was $43,029 and the median household income was $37,219. In contrast, the median family income in Mercer County was $92,817 and the median household income was $73,883. The City’s manufacturing base dwindled from a high in the 1950’s of 50,000 plus jobs to 1,609 in 2007 (2007 Economic Census). The major employers in Trenton today include the State of New Jersey (20,000), Mercer County (1,600), the City of Trenton (1,100), the Trenton Public School District (2,400), Capital Health Medical Center (1,500), St. Francis Medical Center (1,045), the Hibbert Group (480), and Hutchinson Industries (350). Currently, the City has two industrial parks (Hill Industrial and Route 1 Commerce) with over 145 workers. Trenton, and the local area, have ready workforce with varying levels of skills, educational and technical experience. As the Capital of New Jersey and the County seat, the City supports a variety of government offices and non-profit organizations in the downtown Central Business District. As a result, a disproportionately large amount of property in the downtown is tax-exempt and does not generate revenue. In addition to the government offices, many of the City’s historic assets – all associated with George Washington and the American Revolution – and State amenities are located in the downtown. While these assets/amenities and Trenton’s growing arts and culture scene draw visitors to the downtown at various times during each calendar year, the City has not been able to realize its long-term goal of establishing a viable, thriving tourist destination. As economic conditions remain tenuous at best, the City recognizes the need to adjust its economic development focus and address City-wide needs for job creation, tax revenue generation, workforce development, and business retention, expansion and attraction. Despite the economic challenges facing Trenton, City leaders, residents, property owners and stakeholders share a collective vision of Trenton’s revitalization that builds upon the City’s many assets and opportunities. This revitalization includes a developed waterfront, a diverse workforce and residential population, quality housing stock, a vibrant downtown, high quality industries and a range of employment options and options for retail, dining, arts, culture and entertainment. Additionally, the State of New Jersey, recognizing the challenges faced by the Capital City, has provided extra incentives in its new legislation (The Economic Opportunity Act of 2013) aimed at spurring development and private sector growth for developers and businesses which choose Trenton as a place to relocate, expand and develop. As a result of its designation as a Garden State Growth Zone under the Economic Opportunity Act of 2013, projects locating in Trenton will have significantly lower eligibility thresholds and higher incentive levels for development and business development and expansion. VI.

Surrounding Area

The Property is located along the East State Street corridor, which is one of the City’s main arteries that flow to and from the Downtown District. This area abuts the Old Trenton Neighborhood, which is one of the City’s Historic Districts. Just blocks away is Mercer County Community College (James Kerney Campus), which has plans for a major expansion of the College along South Broad Street, as well as the Wyndham Garden Hotel which is currently undergoing major renovations. 4

There are several large, vacant commercial properties along the East State Street corridor, which the City has engaged in various discussions surrounding their complete redevelopment/rehabilitation to restore these properties to productive use. The City’s future goals are to completely rehabilitate/renovate this corridor to establish this area as one of the City’s major mixed use corridors to compliment the goals of the Downtown Master Plan to establish a vibrant Downtown District in which individuals can live, work, learn and play. Other area and regional attractions include:  Arm & Hammer Park, home to Trenton Thunder Baseball team (Double A Affiliate of the New York Yankees). 5-10 minute drive  Sun National Bank Center, 5 minute drive  Princeton, New Jersey, 15 minute drive  Lambertville, New Jersey, quaint riverside town, 20 minute drive  New Hope, Pennsylvania, quaint riverside town, 20 minute drive  U.S. Route 1 shopping and employment centers, 10 minute drive  Quick access to major highways (U.S. Route 1, I-295, I-105, Route 29) The Property is also approximately 1,200 feet from the Trenton Transit Center which has recently undergone an $80 million renovation. The Transit Center offers rail service on Amtrak, New Jersey Transit, and SEPTA. Riders using the Trenton Transit Center’s rail services can arrive in New York in just over one hour and Philadelphia in about 40 minutes. Directly across the street to the Transit Center is the convenient and affordable New Jersey Transit Light Rail that provides access to destinations in South Jersey. VII.

RFP SUBMISSION REQUIREMENTS

Each proposal in response to this RFP must be formatted as a single bound volume and must be submitted at or before the time and date set forth in this RFP. The City of Trenton, in its sole discretion, may reject any submission made after this time. An original and three (3) copies of each proposal must be provided. Each Respondent must submit the information requested in standard letter size format for their proposal to be complete (fold out documents will be accepted). The outside of the package containing a proposal should be clearly marked with “Former Bell Telephone Building Proposal”. All submittals must include a minimum of the elements as described below in A through H. Although the City is not obligated to evaluate incomplete submittals or to accept additional and supplemental materials, it may choose to do so. All submittals should be concise and address the City’s goals and objectives as listed in this RFP and relevant support documents. A.

Cover Letter and Executive Summary

The submittal must include a cover letter with a statement that the individual signing the letter is authorized to obligate the entity to proceed with negotiation of a Redevelopment Agreement should the entity be tentatively designated as developer for the project. The proposal must also 5

include an executive summary of the principal elements of the submittal, including a project description and development timetable, as well as the team’s approach to the development, mix of uses, financing, as well as offering price and terms. PLEASE NOTE: The City is not offering a minimum price for this project. The offer amount must be included in the context of the project financing and what the Respondent believes this project can carry. Offering price is not considered the sole deciding factor as the city evaluates proposals. The City reserves the right to negotiate the final price with the selected redeveloper as part of the disposition agreement process. B.

Development Team, Relationships and References

The City is seeking sufficient information on the development team to make a judgment as to how well the team can perform in the role of Designated Redeveloper of the proposed plan and to compare the qualifications of the redevelopment teams associated with the proposals submitted. Respondents are free to present this information in a format and a degree of detail that in their judgment is adequate for these purposes. The following is a suggested format for consideration: 

The redevelopment team description shall include the corporation, joint venture or other entity that would serve as the Designated Redeveloper of the proposed development and would be party to the Redevelopment Agreement between the Designated Redeveloper and the City. If the entity is a subsidiary of, or otherwise affiliated with, another organization, the Respondent shall indicate such a relationship. The description shall include any participating development entities that are deemed important to meeting the City’s goals and objectives for the redevelopment of this site.



Identify all participants in the Respondent’s development team including those members responsible for the building design, landscape and site design, land use planning, engineering, permitting, legal and financial analysis, environmental compliance and community relations, as well as investors and proposed lending institutions. This information should include, but not be limited to, company profiles of firms on the proposed team and individual resumes of key personnel who would be assigned to the project. Brochures detailing the individual team members’ qualifications may be included as a separate appendix.



Submit an organizational chart showing all team members, the responsibility of each team member, and the proposed interrelationships of the team with the City during the design, development and operation of the project.



For each company/individual involved in the development, construction or operation of the redevelopment, identify the company or individual involved, including the name, address, telephones and fax numbers and primary contact person for each listing. The list of companies and individuals shall include at least the following:

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       

Developer Architect(s) (site, buildings, landscape) Land Use/Environmental Planner (if known) Engineer(s) (geo-technical, traffic, structural, etc., if known) Attorney(s) (if known) Lender(s) (if known) General Contractor (if known) Other



For each member of the Respondent’s team noted above, identify the names of all principals who will be responsible for the redevelopment, construction and operation of the proposed redevelopment and provide professional resumes for each such principal.



The proposal shall identify the persons responsible for each activity related to the permitting, design, financing and construction of the project. The proposal shall identify one or more individuals who have full power and authority on behalf of the Respondent’s team to negotiate and execute the Redevelopment Agreement, if the Respondent is chosen for negotiation of the Redevelopment Agreement.



Three (3) references are required that can specifically address the capability of the Respondent to undertake similar redevelopment projects. References should include name, title, addresses, telephone numbers, fax numbers, and email addresses and a brief description of the relationship to the development entity in regard to previous experience.

In addition, the proposal should identify any potential conflicts that the individual team members or firms may have because of current or prior relations with the City, City-related boards and individuals, or its consultants. The City reserves the right, in its sole discretion, to request additional information on potential conflicts of interest and to limit or prohibit the part the participation of any team member or firm due to any such conflict of interest. To the extent that public disclosure laws may be applicable, participants in the development team shall be responsible for complying with all applicable requirements. C.

Project Experience

The City is seeking sufficient information on the Respondent’s project experience to make a judgment as to how well the team can perform in the role of redeveloper of the project site, and to compare with the experience of other redevelopment teams. To that end, the respondent shall provide at least two (2) mixed use projects of similar scope and complexity where the development team and consultants played a substantial role. The respondent shall include a narrative or outline that provides sufficient detail to describe the development team’s considerable past experience in the development and management of the projects. All individuals listed as contacts on existing projects may be contacted and should be available to assess the Respondent’s record relating to the project(s). In addition, the City may consult references familiar with the Respondent or members of the Respondent’s team regarding past 7

experience, qualifications, performance, or other matters, regardless of whether the specific individuals are identified in the proposal. The proposal should demonstrate that all of the team members have experience in the redevelopment of similar size and scope projects in a comparable urban setting. D.

Understanding of the Redevelopment Process

The proposal should clearly demonstrate an understanding of the scope and tasks required for the design, financing, construction and leasing/sale of the proposed redevelopment and the challenges to successful completion of such a project in accordance with the project schedule. The Respondent should demonstrate an understanding of the challenges of undertaking and completing the project in the City of Trenton, New Jersey by including in its proposal, among other things, a detailed plan schedule for meetings and dealing with all relevant constituencies. With respect to project financing, each Respondent should demonstrate its approach to the financing, the risks and issues involved and how the Respondent will mitigate these financial risks and address the issues. E.

Project Schedule

The Respondent shall describe the proposed project schedule including key steps in, permitting, financing, design, construction (including start and completion), and leasing/sale and occupancy. The schedule should be submitted in CPM (Critical Path Method) schedule format or in large chart format. F.

Proposed Redevelopment Program

The Respondent shall include a statement of the proposed redevelopment program. This statement must list the types of uses by approximate square footage. Residential, retail, office, restaurant or other uses shall be identified by the approximate size of each use. For any residential use proposed, the Respondent shall state the type of units, whether rental or ownership, proposed rent levels or price points and proposed number of bedrooms. The inclusion of accessory retail space and amenities available to the public is encouraged. Each proposal should include a program description reflecting the contemplated building design. Submissions of conceptual site plans with representative building elevations are encouraged. The program description should include, at a minimum, the following:     

Estimate building size, stories, (for new construction) Proposed exterior building materials (new or rehabilitation) Building orientation (for new construction) Estimate gross square footage for each use Estimate of number of onsite parking – how parking needs will be addressed.

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Each proposal should also provide information on employment generation (construction and permanent jobs), secondary spending on and off-site, as well as property taxes to be generated. G.

Proposed Project Cost and Capital Structure; Financial Capacity

Describe with sufficient detail the key financial components of the Respondent’s proposal, including rental terms, price point projections, revenue projections, and the Respondent’s financing strategy. At a minimum, the Statement of Proposed Financial Terms and Assumptions should include the following (draft development proformas are encouraged): 1. Respondents should describe their plans for funding all required improvements, including identifying sources of funds. Such description should include the proportion of equity to debt financing, and identify any special restrictions or conditions associated with the financing plan. Respondents should also include evidence of financing resources and their concurrence with the proposed development program; 2. Identify any local, state or federal financial assistance that will be required, or is being considered, to implement the project. PLEASE NOTE: Although it is recognized that public monies may be sought to bring this project to completion, the greater the reliance on public subsidies the less favorably the proposal will be evaluated. To the extent the Respondent intends to utilize grant or other public funds, describe the source of such funds and the status of any commitments from the granting agency, and the Respondent’s experience in obtaining such funds; and 3.

H.

Respondents are expected to conduct their own market research/study to identify potential demand, along with any other research necessary to justify any assumptions and projections that they may make.

Other Factors

Although there is no obligation to do so, each Respondent should feel free to provide a description of other factors not accounted for in the RFP that the Respondent believes underscore the Respondent’s qualifications to undertake the project and what is “unique” about their redevelopment concept.

VIII. SELECTION PROCESS OVERVIEW AND SELECTION CRITERIA A.

Process Overview

On or before the time specified in this RFP, the Respondents will submit a proposal in response to this RFP. The City may form a steering committee to evaluate the merits of each proposal. If a steering committee is formed, the proposals will be reviewed by the Steering Committee and the committee will evaluate the proposals based upon responsiveness to items listed in Part VI of 9

this RFP. The City may develop a short list from the RFP’s reviewed. If so, the City will conduct interviews with Respondents. Respondents selected to appear for an interview will be notified in writing, by mail, facsimile transmission, or otherwise, of the time and place of the interview. Respondents may be asked to answer written questions based on their proposals until the City has made a final selection. In addition, further information and detail about proposals may be requested. Such information may include pre-schematic architectural drawings, a more comprehensive project financing package, a final list of team members and further explanation of the development program.

Once a team is selected, the City will begin negotiations with the selected team that will ultimately result in a developer’s designation by the Trenton City Council and the execution of a redevelopment agreement. If the City believes that an agreement cannot be reached with the selected team, the City at its sole option may terminate negotiations. The City may, at this time, choose to entertain proposals from another team that may be on a short list. The City will evaluate all proposals in accordance with the criteria and procedures identified in this RFP. The City reserves the right in its discretion to make a selection based directly on the proposals submitted or to negotiate further with one or more of the Respondents. The Respondent selected under this RFP will be chosen on the basis of ability to best meet the overall objectives of the City, as determined by the City in its sole and absolute discretion. Proposals will be evaluated on a scale of up to 100 points. The criteria described below will be employed in assessing the merits of each qualified proposal received by the City: 1. Experience and Qualifications of Respondent  



(30 Points)

Whether the Respondent has sufficient and proven experience and capabilities to perform all aspects of the project as outlined in this RFP and the development teams demonstrated capabilities in executing projects of this type and magnitude. Experience and qualifications of Respondent and key personnel related to consistent quality management, maintenance, and operation of the type of project and uses proposed. Relevant factors will include experience and qualifications specifically related to (i) ability to implement complex development projects effectively, (ii) demonstrated success working cooperatively with public agencies, (iii) developer’s team operational approach, including the proposed timeline for development, (iv) other special qualifications that may be relevant to the successful implementation of the project; Financial capacity of the Respondent to cover initial capital expenditures and operating cost: (i) ability to raise capital for the project, either through equity capital and unsubordinated debt financing, and/ or private charitable funds and governmental grant funds; (ii) strength of current relationships with funding sources, including financial institutions; (iii) overall financial track record. 10

2. Quality of Proposal

(30 Points)

Assessment will include the following:  





Quality of Developers' approach to the project, the extent to which the project meets the City’s objectives to create a high quality mix use development with quality living spaces; Compliance with the requirements of the Canal Banks Redevelopment Area Plan and the City of Trenton's Downtown Master plan. The controls set forth in the Redevelopment Plan shall be adhered to, with that said, if the redeveloper presents compelling reasons to allow exemptions to the plan requirements, the City will entertain amendments to the Plan, in an effort to move this project forward; The extent to which the Plan demonstrates Respondent’s best efforts to create or retain jobs for Trenton residents, especially economically disadvantaged persons, and to provide minority and women-owned business enterprises with an equal opportunity to compete for and participate in project development and operations; and Potential social and economic contributions to the City.

3. Cost and Time Effectiveness

(20 Points)

Assessment will include the following: 

  

Feasibility of Respondent’s proposal. Proposals with definite funding sources will be rated more favorably than those with indefinite funding sources; Proposals that have no or minimal reliance on direct City funding will be more favorably rated; The degree to which there is reliance on public subsidies; Reasonableness of Respondent’s underlying assumptions, including proposed terms of rent or sale; and Other factors as appropriate.

4. Project innovation – sustainable design 

(20 Points)

The developer must provide a narrative, along with samples or a model outlining the use of innovative techniques that are significantly superior to what is typical in such development. Demonstrated capability in project design and sensitivity to environmental issues and adjacent land uses, including architectural design, landscape design, building massing, sustainable development strategies, creative design and construction.

The extent to which the proposal contains environmental performance, energy efficiency, and quality living spaces as well as innovative green design and building technologies, the City has created guiding principles for sustainable development and are available on line at http://www.trentonnj.org/documents/housingeconomic/city_master_plan/sustainable%20d esign% 20guidelines%20and%20rating%20system.doc

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VIII. Zoning The Site is zoned for Business BA as set forth in the Canal Banks Redevelopment Area Plan.

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