Real Estate Subcommittee of the Redevelopment Authority

Regular Meeting

Green Bay, WI · October 1, 2019

Minutes

MINUTES OF THE REAL ESTATE SUBCOMMITTEE OF THE REDEVELOPMENT AUTHORITY OF THE CITY OF GREEN BAY TUESDAY, OCTOBER 1, 2019, 1:30 PM CITY HALL, ROOM 604 -THE HARRY MAIER ROOM A. ROLL CALL. 1. Members: Matt Schueller, Kathy Hinkfuss, and Melanie Parma. Present: Gary J. Delveaux, Matt Schueller, Kathy Hinkfuss, Excused: Melanie Parma B. REGULAR BUSINESS. 1. Consideration with possible action on a Request for Proposals for redevelopment of the parking lot located on the 200 block of North Monroe Avenue. The Authority may convene in closed session pursuant to Sections 19.85(1)(e), Wis. Stats., for purposes of deliberating or negotiating the sale of public properties, investing of public funds or conducting other specified public business as necessary for competitive or bargaining reasons. The Authority may thereafter reconvene in open session pursuant to Section 19.85(2), Wis. Stats., to report the results of the closed session and consider the balance of the agenda. Moved by Gary J. Delveaux, seconded by Kathy Hinkfuss to open the floor for discussion. Motion carried. Yes- Kathy Hinkfuss, Matt Schueller, Gary J. Delveaux, No- None, Abstain- None Moved by Gary J. Delveaux, seconded by Kathy Hinkfuss to close the floor for discussion. Motion carried. Yes- Kathy Hinkfuss, Matt Schueller, Gary J. Delveaux, No- None, Abstain- None Moved by Matt Schueller, seconded by Gary J. Delveaux to go into closed session at 2:28 p.m. Motion carried. Matt Schueller read the closed session language. Yes- Kathy Hinkfuss, Matt Schueller, Gary J. Delveaux, No- None, Abstain- None Moved by Matt Schueller, seconded by Gary J. Delveaux to return to regular order of business. Motion carried. Moved by Kathy Hinkfuss, seconded by Gary J. Delveaux to recommend to the RDA to select the Gorman & Company proposal and that staff work to negotiate a Development Agreement. Motion carried. Yes- Kathy Hinkfuss, Matt Schueller, Gary J. Delveaux, No- None, Abstain- None C. ADJOURNMENT. Moved by Kathy Hinkfuss, seconded by Gary J. Delveaux to adjourn. Motion carried. Yes- Kathy Hinkfuss, Matt Schueller, Gary J. Delveaux, No- None, Abstain- None VERBATIM MINUTES - We ready to go? - Let's call the meeting to order. We'll do the role call here. Kathy Hinkfuss. - Here. - Melanie Parma, I understand, is excused. Gary Delveaux. - Here. - So Gary, our extinguished leader of the RDA. Distinguished. - Distinguished. - He was on fire until it rained. - Yeah. - Extinguished. - Our distinguished leader of the RDA is here. So, let's start off with regular order of business, unless Kevin, you've got something else that we need to interject. If not, we'll get started on the RPs. - [Kevin] No. I think, overall, Ken did a great job putting this together, getting out that RP in a very short timeframe. The impetus was on this as a development site for the short-term. We were out in a place where we were kinda of in a rock and a hard place in terms of moving forward with this acquisition last December. We felt, look, there was a short-term use, we had some parking needs in terms of our downtown portfolio, offices, our leasing out residents, they're having some spillover, and we just need that parking, so there's short- term use, but really, we bought that lot because it's a two point four acre site, very close to the heart of the central business district on a revamped corridor and really is a great opportunity for us to help shape future development of that site. - Absolutely. - [Kevin] And so, we quickly turned this around and put it out there, and I think two great proposals in terms of they're both from qualified firms, they're two very different proposals, but I think each of them works with the site in a new, unique way. - Yes. - [Kevin] And so, what I think we wanted to do today now is to put in front of you the proposals themselves, give each party representative an opportunity to talk a little bit more about the specific proposal and about their company, about their partnerships, and perhaps answer any questions that you may have. There is closed session language on here if you want to discuss, potentially, how we might negotiate an agreement moving forward. We'll look at what kind of option or other types of agreement we might have to do this moving forward, but then, basically, out of this, I think we would like a recommendation to go to the full RDA next Tuesday. Then, we can start the process of entering continuing negotiations in order to go crafting the planning option, or ultimately, a development agreement. - Perfect. - Yeah. - So, I think for today's meeting we've allotted 10 minutes of time for each developer to present their proposals, followed by 20 minutes for each developer for a question and answer session. We randomly picked, and actually, T. Wall will be presenting first here, so we'll give them 10 minutes, and then the followup 20 minutes for questions. - Sounds great. How about we take a motion then to open the floor. - So moved. - Second. - Okay, so we have a motion and a second to open the floor. Let's turn it over to you, Terrence, and you've got the floor. - All right, thank you very much. Let's see if there's a clock around. Okay. So, thank you for having us out. We've made a proposal here for owner occupied housing. So, I think that's a very important aspect of this. It's not rental. There'd be 33 units, approximately three stories on this side, the Monroe Street side, and two stories on this side. We've put a couple buildings on the end, so we can combine with a brick wall here, kinda create more of a building feel on these street, do you know what I mean? Instead of just a parking lot, instead of just seeing a parking lot, we'd have a nice, articulated wall with some landscaping in front of it, so it'd kinda give more of an urban feel on both streets, a very nice center courtyard with a lounge pool. So, this is a small pool, maybe a hot tub, fire pit, a pavilion for picnicking. We've kept, since the utilities are in the alleyway, we've kept the alleyway easement. For the utilities, we'd like to have the alley vacated so it can be private property, and we have a gated, this would be a gated community. I think that's very important for owner occupants to be down here, to have a gated and have a secure community. The three story buildings could also, internally, we've designed a concept that has the ability to have an internal, personal elevator, so if somebody is older and they wanna avoid the stairs, they can have a small, personal elevator inside the unit. There'd be parking inside, of course, the unit on the first floor. We were trying to stay out of the ground, so our garages are on the first floor at grade. We've tried to articulate this to be a nice courtyard feeling, so some nice patterned concrete there, lots of landscaping around it. The exterior will be approximately some bricks, some hearty plank, very nice, some gabled roofs, that sort of thing, and I can show you what we call a concept box. It's not an articulated, it's not showing the details of the architecture, but you kind of get the concept of we have a lot of different gables on the roofs. Each unit would have a direct entry to the street, to the sidewalk. I think that's important so you're really activating the street, you're making this very pedestrian friendly, somebody can walk home, walk to downtown, walk to City Deck, and then walk right back in their unit. You're not gonna see a bunch of garages facing the street. Those are hidden inside. And then, people will have nice balconies overlooking the courtyards, the courtyard area with the amenities. So, that's a nice amenity for them. Here's some more pictures. If we're selected with architect, we'll do the full architectural design and run that by you. This is our swimming pool. We'd probably have a glass wall here and not a solid wall. Gotta have a fence around the pool, so we'd probably do a glass fence around the pool. There's extra parking in here, about 180 parking space for 33 units, so there's tons of parking available for the families, the people who are here, and guests and visitors. I think there'd be a lot of people, whether empty nesters selling a home, would move here to be downtown, the urban environment and all the activities downtown. I think you'll see some young people, maybe before they have kids, they might have a unit here, might be their first home. We have, at City Deck, we have people in their 30s and 40s and 50s, either single individuals or couples, and there are working professionals, they're people at the local medical groups, the banking groups, all the different businesses downtown. So, I think you're gonna have a broad range of demographics. Probably half of them, according to our statistics for our units, probably half of them are in the 20s and 30s and half are in their 40s through 70s, so you're gonna get a broad range of demographics within these units. So, it's a town home design. I wanna show you something that I think very, very, very important, and this is absolutely key to making an owner- occupied development plan here work, that these are not condominiums. That's very important. We don't call them condominiums. They're not legally condominiums. We're not using condominium plat. We are using what's called a zero lot line attached single family lot. So, these are single family homes, and that's important for a couple reasons. One, for the buyers, they can get a single family home loan, in other words, a standard mortgage that's considered standard for Freddie Mac and Fannie Mae, who purchase the mortgages from the banks in pools, and so it's very important to comply with those Freddie and Fannie regulations. If we do condos, forget it. - Yep, yep. - It's impossible to get condos financed for buyers or for developers. The only way to do condos is to have all cash and all the buyers have to have all cash before you get a bank who's willing to hold the loan in house, and banks don't like to do that 'cause it ties up their capital, 'cause they like to recycle their capital. They sell the loan to Fannie and Freddie. So, the loan has to be standardized. So, we're making this single family lots, and so these will be single family homes. Shared maintenance. We're gonna have an easement for shared maintenance, and we'll have, the easement will have an association fee, basically, that would cover the cost, that snow removal, lawn care, landscaping, et cetera, anything on the exterior. I think we'd probably even offer, like we have in our town homes up in Fish Creek that I develop, we'd probably offer even change the furnace filter, anything that's common to all the units to minimize maintenance, 'cause some of the owners, maybe their older and they're spending six months down south, and then they're here in the summer for six months. So, they want everything taken care of. So, we're gonna offer that full service as a package, so you don't have to deal with outside maintenance, you don't have to deal with pool maintenance, you don't have to deal with lawn care, et cetera. That's a big deal. The other thing about the financing and having it single family homes is because it's easier for the developer to finance, for us to get the construction loan. It's not a condominium loan. And for the banks, because it's a standard loan, they want to finance us and they also want to finance buyers, and they earn their fees, and then they resell those loans to Fannie and Freddie. So, it's a win/win all around in terms of the financial structure, and that has to go back to the type of plat that we're doing and the type of setup that we're doing in terms of not having a condominium plat. So, that's also a much better value because you get a little lower interest rate in most cases, with single family home than you would on a condominium. Less risky for the bank. So, that's a lower cost for the buyers, too. So, I'll just open it up for questions if you have any. - I have several. Let's start with the alleyway. Does city still have access to that with the infrastructures underneath there? - So with the alleyway, there'd still be an easement in place for all the utilities. - Yep. - If the city needed that, they could be included in the easement for access. Yes. - Okay. Okay. - Yeah. And you notice, we can't put any improvements on that, so it's just concrete. You can't put a physical structure on those utilities, whatever's underneath there. - Market analysis. Can you tell us a little bit about your market analysis, how you know this is gonna go? - So, we've been looking at, and we've watched the whole state, we've watched the overall economy for the country. It's kind of a thing. I have an economics degree, so I do that. That's a side thing, but there's an incredible shortage of overall housing. A couple things have happened. Single family housing has become very scarce, one, initially because of the larger demographic pool of millennials coming into the market, so there's a shortage of apartments because that bulge is coming into the market, and then there's a shortage of single family housing because of the great recession. Half the builders, half the developers went out of business, so there's fewer. The developer, you take Viridian, Viridian in Madison used to do 650 homes a year, and it took them quite a few years to get back up to 450 homes a year. So, they're doing less. They're a developer that used to do 30 homes a year, is doing five or ten. The one that was going five is doing two. So, every builder, every developer is doing less than they used to. In the last 24 months, due to the labor and material shortage, the tariffs being put in place, and other factors, the cost of construction for housing has gone up by 30 to 36%. So, the house that used to cost 450,000, which would kinda be your middle income, it's kinda like your second home, your starter home might've been 250, your first home 250, your second home 450, now that 450, it's 600. It's ridiculous. It's outrageous how costs have skyrocketed, and your 250 is almost impossible to do. We're gonna try to keep these in that 350 to 450, 500 for maybe the larger corner units, try to keep them in that affordable range, but there's an incredible housing shortage, especially owner occupied housing, in addition to apartments, and you got the baby boomer demographic is also moving out of single family housing now into they wanna go to apartments or something smaller, less maintenance. So yeah, there's gonna be plenty of demand, we just gotta make sure that we can keep it within the right price point, right? - Kinda related, see, the occupancy. Is that? - It's always been 100%. Every week in the summer you'll have a turnover, maybe, of a few units, but we've had incredible stability there, a wide variety of demographics and age groups and incomes. It's really been a huge success. That project brought over 10 million dollars of disposable income to downtown, and that's important because when you bring this kind of disposable income into downtown, they support the downtown restaurants and the stores and the businesses, and that's really hugely important. It all has an effect through the whole downtown economy. That's why I think it's important to have owner occupied, I think it's important to have the high incomes to support the downtown. You do need affordable housing, but affordable housing isn't gonna have the disposable income that will support the restaurants and the businesses. So, there's not the multiplier effect that you would get. - From a tax base, eight million towards income? - Yeah, eight to 10 million is kinda what we estimated for a tax base, depending on their assessment. - I've got other question, but I'll let these guys ask some questions here. Sorry. - Sure. - From a square footage perspective, am I reading this correctly? One bedroom's about 600, 950 square foot two bedroom. - So, we'll run up to, depending on the unit, some of these are going up to 2200, once I get the final layout with the architect, so they'll vary depending on the unit and what we're gonna see for these two different building types. - Okay. - And you're also accounting, I just want you to understand the little misnomer, because you don't count the unfinished square footage, you're only counting the finished square footage, just so everyone understands what we're counting. So, you're not counting the garage, you're not counting something like that. - Right. - Have you thought through the mixed tariffs on this of one, two bedroom, three? I'm not sure what you're thinking about in there. - Yeah, I would think. Well these, for example, these three stories, we designed one in Middleton, Wisconsin, that we're calling them a two bedroom, two bath, but then there's a bonus room on the first floor in front of the garage, and so the bonus room could be used as a bedroom. So, somebody could use an office. Say, if you're a realtor, mortgage broker, insurance agent, you could be working in your home office here on the first floor, looking out on the street, put your little sign out in front. That has another advantage of the design. So, a lot of them are gonna be two bedrooms. Some of the corners may be able to get an official three bedroom. It'd be a smaller bedroom, den, or something like that. Sometimes we have to call it a den if it doesn't have windows or it doesn't have an access that a bedroom legally has to have. So, you might see some two bedrooms, two bath, a bonus room, or you might see some with a den, and you might see a couple three bedrooms, but most of all, they're gonna be two bedroom with something extra. - Okay. - Yeah. - And price point wise? - Well, we're hoping to keep it in that 350 to 450 range, is our goal, and I say hoping because, every week, things change. We saw the Canadian lumber jump up 30% overnight, and then it came down over time. So literally, every week, interest rates, the fed raised interest rates, and they're like, "oops, sorry. "Just kidding," and then they're lowering interest rates in a matter of two months later. So, literally costs change. The subs, they don't even wanna quote until you have the project ready to commit. They don't wanna commit to a number, or they might commit and they'll say, "I'll hold that for a week, "subject to if there's a notice coming through "from a supplier, like lumber, "that can increase the cost." So, that's our target range, subject to the costs of the project, what we can do in terms of keeping it reasonable. - On the parking, it's not all exterior parking, is it? - No, every unit has garages. - Okay. - So, every unit has a garage, two car garage. Now, if we did squeeze in a couple smaller units with a single car garage. We do have some units in Middleton where we designed about 1600 square feet with a single car garage, a little bit lower price point. So, just depends on what the architect can squeeze in here. - And you said they're all, or generally, two stall garages? - Well, yes. Right now, that's our plan, but if for some reason, if you wanted us to have a single car unit that's a smaller square footage with a lower price point, we could do that. We could take a couple of the two bedroom units and take two of those and turn that into three smaller units of 1600 square feet, single car garage, lower price point. So, we could do that, if that's something you want or are interested in. - Can I see the other picture again where you showed the rooftops? - Sure. - I know you haven't got the final design on here, but can you give us a clue, are they all gonna look different? They all gonna look the same? Can you give me the? - Oh, sure. So, what we'll do is we'll do some brick on the outside of the street side, it will be more hearty plank on the inside, some hearty plank accents. So, we try to give it an individual look, so we might do every two or three as a look, or you might have a certain brick there and we switch brick that's complementary, not radically different, but complementary, and then go down, like that. So, you're not having the same brick on the entire lane. So, you're breaking up the facade with the three dimensionality with the canopies, and then, by changing the siding colors and the masonry colors. I think it's important to break it up, and then gables, also, a couple little different accents so that the accents are slightly different, but you still wanna have something that ties it all together, which is like the overall design, and the window framing would be similar. - And the two smaller standalone buildings at the north and south ends, is there something unique or different about those? What are you thinking with those? - Well, those are basically, we just didn't wanna leave this all like an expanse of you're looking by a parking lot. So, we came up with basically two units and two units here with an attached wall here. So, there's one entrance point with a pedestrian gate and a drive in spot, and then from the outside here, when you're driving along, it looks like an urban, downtown community. It's not a sea of parking. So, this adds some real units with some walkouts here to the street, which I think is nice. The architect showed a driveway here. I think we should just have the driveways in the back to the garages here though, and have no garage door here. Personally, I think that would look better, to give it a more pedestrian level to walk out of the unit. I'd say half these people probably would have pets, dogs, and they'll wanna have a walkout unit so they can walk right out onto the sidewalk and walk their pet. - I read about the city's commitment, but let me hear it in your own words. - Thank you. I was gonna say, can you go through the financials. - The city's commitment in terms of? - TIF and whatever. - Okay, sure. Yeah, so we would need the land to be provided, a dollar, whatever, and then what call 100% of TIF increment. So, we'll sit down, Kevin and your finance director, your staff, and we'll work with them. We can make our own estimate. It's usually always higher than what the city's estimate is. - We're conservative. - I don't wanna throw out something to scare you. I'd rather sit down with your finance director and walk through the TIF calculation, 'cause as you know, it's depending on the TIF life, how much is left, what we think the estimated increment is, are we gonna have a certain base increment in the TIF agreement or not? What interest rate is being charged currently in the marketplace? All those factors go into a calculation. So, in order to keep this affordable, again, the costs of construction have gone up 30 to 36% in the last 24 months. I built the same building, the same apartment building right now in a location that I built two years ago, exact same building, 30% more cost. Unbelievable. And it's huge. So, trying to keep these within that affordable range. If we start getting too high a cost, then we start getting out of a price point that's affordable for people. You don't wanna get up above 550 or 600. That's too much. You need to be in that 350 to 450, maybe a couple units that are larger are a little bit more. Try to keep 'em reasonable. - And part of the TIF agreement would also be, if I read this correctly, no tax base until you sell 95%. - Right, yeah. So, what we're willing to do because we wanna get the loan and start construction, we're willing to build 'em. There's a carrying cost to that, right? And what can really kill you is you cross over that January first threshold and you just get killed with the property taxes, and you have no revenue, right? - Right. - So, if you can do that, if the city can do that, that's gonna be hugely helpful to keeping the cost down, and allow us to go ahead and build 'em all at once; otherwise, we'll have to come up with a phasing plan, like maybe build one of these, and then do a model unit, and then try to pre-sell some, et cetera, et cetera. - Sure. - We're trying to keep the carrying cost to be reasonable. If it was land, we could put corn on it or something. Keep the assessment down, but here, you can really get killed. 33 units, we don't know. We just don't know how quickly. They could all sell out quickly or you never know what happens. We had some town homes in Fish Creek and we launched, hit the market, and in the same week, they launched the war in Iraq and killed the market for six months. So, you just don't know what's gonna happen. In this world today, just so much uncertainty. You just don't know. We're gonna be trying to pre-sell some before start of construction, get contracts, then there'll be some sales during construction, and then there'll be buyers who wait to see a model and the final buyers will come in after that. - Absolutely. - Yeah. - Matt? Matt, do you have more questions? - No. Actually, I'm good, Gary. My biggest one was about the references to zero lot and the way you had stated a couple times. I'm like, that must mean something. I just don't know. - Yeah, zero lot line attached single family homes. Is that what you mean? - Yep. - Yeah. Very key to the whole thing. - Yeah. - Absolutely. - You had put a lot of detail on that. - Yeah, exactly. The only other wrap up is we have a home here, we have an office here, I'm here all the time, so we're here, we're local, we're ready to go. Any other questions? - That seemed to me all of the questions. - Yeah, that's it right now. - Anybody else? Kathy, you're good? - Yep, I'm good. - Okay. Okay, good. - Well, thank you. - Thank you very much. - That's a great option. - Yeah, very nice. Thank you very much. - Does anybody need this? - [Man] No. Appreciate it. - Okay, since we're in open, I think we can just stay open. - Yes. - And then Gorman and Associates come up and talk to us about their plans. - Thank you. So, thank you very much for this opportunity. My name is Ted Matkom. I'm the Wisconsin Market President for Gorman and Company. Unfortunately, my architect was supposed to be here. He's got two feet of water in his basement, so my boards aren't here, but I think I've got a PowerPoint and I think a plan there, 'cause what I wanna do is go over the plan first, which is why I wanted the board before I started my PowerPoint. Do you guys got a plan that we submitted with the full RFP response? - Yeah. - I can share. - And if not, if you go on the aerial, where you were before, where you were showing Monroe, I can walk you through it. - Why not just pull that page out. - [Man] Yeah. - Just go on, you know where you went on Google. - All right. - Yeah. Yeah. - We can share. - Yeah, go ahead. - So, Monroe Street here. So, we've been sniffing around downtown Green Bay for quite a long time trying to do something here. One of my first projects was working with the Gazette Publishing Building, which is on Monroe and Walnut, I think it's on there, and we tried to do a Coop grocer, we had new market tax credits line up. That didn't quite go, but we thought that was just such a perfect amenity to this part of what I would call downtown, and this part of downtown needs a little work, and when I went to actually see this site and saw the fully city block as a parking lot, I was just like, "oh, my God. "This is an amazing opportunity," and so, we thought that the best use of that site would be a grocery store, and we have grocer who we work with, Maurer's Market, who actually, she's unfortunately, Christie Maurer, she's the lead speaker in a conference in Wisconsin, Dallas today, so she couldn't be here, but she is an independent grocer, she owns three sites, one in Milwaukee, one in Janesville, and one in Wisconsin, Dallas. She actually started the Fresh Market on University and Madison, on University and Blake. I don't know if you know where that is, right downtown. Highest grossing grocery store in the state of Wisconsin per square foot. She sold that, which is why she's looking for opportunities. So luckily, we've glommed onto her and she loves this site. It's a little bit risky to her. Right now, it's a food desert, so the risk, really, to a grocer is bringing people to her as a point of destination where they're not used to shopping. It's just the basic, and what we tried to do here, and I have to emphasize that the site plan that you have in your packet and that we came up with, really is designed around the grocer, but it is not inflexible in terms of location. So in other words, we put the grocery here on Pine and Monroe, and then our apartment building is coming alongside Monroe. It could be on Cherry, as well. We are flexible for that, but the components of this, we have 85 surface stalls, we have 70 underground parking stalls for the residents, and 85 surface stalls with 80 apartments, with a WEDA finance structure. We would submit the WEDA finance structure. I've assumed this parcel is zoned. Is that correct? From what we submitted, based on the RFP, it seemed like we're conforming to the zone, right? - Right. - Correct. - So, that would be possible since it is zoned to submit an application this year, in December, if we were chosen, and what we had, and Terrence actually talked about it, the residential component that we think is, I'm not sure if it's 100% home ownership site, and I'll introduce Scott in a second, Scott with NeighborWorks, he's gonna be our partner here. We've been discussing that, going back and forth. Scott's bullish on the home ownership, but I'm like, "I'm not sure "it's a total home ownership site." It might be a market rate rental site, but what we'd like to do is buffer Quincy Street with some town homes that would be a market rate town home, and then the grocery store would be on this corner with the affordable apartments across on Monroe, and there would be a big parking lot here or there to service the grocery store, and I said we can flip that, as well. So primarily, what we're looking at is 56 affordable apartments and 24 market rate apartments. So, that would be, usually in a WEDA deal, you would have 15% of your units would be market rate, not income restricted. That's what market rate means in our world. This would be double that. It would be 30% would be market rate, 'cause we think this is a great housing site; however, the grocery store, I think, is the primary driver in terms of design and how the site's laid out, but I really believe that the 30% market rate would be great here, as well as the 70% affordable, and really add a book end to downtown and create that stop gap for downtown right there, 'cause right here would really be a gap filler, I think, in terms of where downtown begins and ends. What I wanna do is introduce Scott. Scott is the COO of NeighborWorks, and Noel and I have been talking about doing a deal together for a long time, and so we finally found this site as our opportunity, and Scott, I just wanted to have you introduce yourself a little bit as a stakeholder in the project. - Sure. Well, I think I've met everyone. We come here often. Thank you. NeighborWorks is very excited about this project. We're excited to be a stakeholder in it. In fact, I think we're actually giddy about it. I think we are beyond excited. It checks a lot of boxes. So, this site has three strong things happening. So, we often come to you and talk about affordable housing. Check. And I hope that no one ever gets sick of these pictures, but this mid-density type of housing, that's another need in the neighborhood and in Green Bay, so that checks another box. So, we've got some high-density, some mid-density, and I think the communities been talking about a grocery store for a while. It has come up before, right? - Yeah. - So, that checks another huge box. Now, that isn't necessarily within our wheelhouse, but if it enhances the neighborhood, how could that be a bad thing? It is a food desert. We've seen a lot of proposals come and go, but I think this is the one that's gonna stick. - So, I was just gonna go over our PowerPoint real quick. Gorman and Company, based out of Madison, we do projects all over the state. I'm the Market President. I think the key thing is that we're the developer, the architect, the general contractor, the property manager, so all compliments come to me, but all criticisms come to me, and there's a one-stop shop and we're kinda proud of that because we think we respond pretty well in those capacities. Once again, two components mixed use project, 80 units, 56 affordable, 24 market rate, apartments and town homes that would be on Quincy Street, the town homes, 70 underground parking stalls, 85 surface stalls. The grocery will be 24,000 square feet. Pretty good size grocery and operated by Maurer's Market. Total development cost of the entire thing would be 24 million. Annual tax increment would be about $160,000 a year, 'cause that'll be pertinent and we talked about it with TIF, and then the mixed use development with the grocer and housing, which we think is a great mix. Okay, sources and uses. The WEDA deal is, you guys have probably seen this before. First mortgage, a federal home loan bank is kind of no brainer gap financing, which is great for affordable deals, the Lihtc equity that comes in with the sales of the tax credit. As you know, in terms of the tax credit housing, what tax credits do is you sell them to a major bank or some other user for 10 years, they infuse that equity, and the way it works is you take that equity, this number, it gets paid within the first 24 months of the project, you apply it to your construction cost so it drives down your debt and that allows you to charge lower rent. That's how it works. What's great about that formula is it's market rate quality housing. It's not old 1960s rent subsidized housing. This is market rate housing that is then affordable to people, which is great. This is the one I wanted to talk about, which is the grocery. So, it's about a five point six million dollar total. Our first mortgage is at that level. Then, we came up with a scheme of the new market tax credits, 'cause it is a food desert. It is a new market tax credit eligible track. It is not highly distressed, which is challenging. However, with a TIF in place and with a food desert, you can bring that up a notch in terms of the eyes of the treasury to something that qualifies for many allocatees. We have two identified that this could go to. The only issue is do they place 'em before we get our tax credits from WEDA? Or else, we have to go to the next round. Right now, we actually have two allocatees in hand with new market tax credits that, if we get 'em, we could apply them to the deal; however, we're thinking that maybe they can't hold those that long and it would be the next one on the new market tax credits. We thought that leverage with the TIF was appropriate because we're bringing in a third party source, matching it with the TIF. What this is doing is really bringing down the construction cost of the grocery, so she can operate at 10 bucks a square foot because everything here is excess of the grocery store. She's doing a similar project in Madison. She's willing to go 15 bucks a square foot 'cause of the location and where it is. Here, she's like, "this is a $10 a square foot market," and so that's what we have to target that. So, the construction cost and everything is sized to have that $10 a square foot rent. The private equity would be six 83, which would be our skin in the game. We can go over that after you guys. I think it's in your packet, as well. Development team. Maurer's Market, she was supposed to present. She's not here, but Scott, also, at NeighborWorks is kind of our stakeholder. They'll get a percentage of the partnership and they'll be in there in the whole mixed use project. Maurer's, she's got this urban market in downtown Milwaukee, and then she's got two 25,000 square foot groceries in Wisconsin, Dallas, and Janesville. And, that's it. Here's the same plan. - Oh. There we go. - Oh, I didn't even know this was on there. Great. So, this is kinda where we are here where this is Pine Street, Monroe, this is the grocer, then the affordable housing. Apartments will come across here with the parking kinda shielded. This is what we thought would be best in terms of shielding this horrible parking lot, 'cause nobody likes that. Could we switch that around where you wanted town homes here or something? Yeah. We're not pledged to that, but this is the component she needs. This square footage, this amount of parking spaces, and everything else, she was kinda like, "you guys can do whatever you want, "but I need that." So, that was geared toward her success. Here's the massing model which we did, which shows the town homes that would be on Quincy, facing the neighborhood, Monroe up here, and then Pine Street here Okay. So once again, kind of accelerated timeline. When I looked at this, I was little surprised, but my first question was are we zoned? And I think we are zoned, because as I read the RFP, we conformed our plan to your zoning. So, if I can get a letter saying that the city, that we're able to build 80 units here, that's all we need, really, for our WEDA application. So, assuming all this goes towards us, which is yet to be determined, even for WEDA, you don't need to do this, finalize the development agreement, that is not 100%, but you would have to be site controlled. So, if development agreement meets site control, you would have to finalize that, or it could just be an optional land. WEDA has kinda been flexible on what that looks like. It doesn't have to be a full 26 page development agreement at this point, and then you'd submit the Lihtc application in December, you'd get an award announcement. We score very well here, so what we would do is we would go at risk in terms of design and then that would also, if we had the new market, if we were awarded the RFP, if we were gonna do this submission in December, we would line up and try to keep that new market tax credit allocatee at us, and say, because we're a pretty credible player in the market place, we would say, "stay with us. "Stay with us. "Let us be here "until the award here." Hopefully, we get it. We score very well, and then we would probably close in April. We possibly could close in November. That would be a stretch, 'cause we'd have to design and everything before that, but there is an outside chance we could do that, and then the construction completion would be about probably 12 to 14 months from when we close. - Could you go back to the site plan real quick? - Yep. Which one? That one? - The ground low. Right there. Okay, so where is our alleyway? - So, your alleyway, your Google, I'd have to see it again, but he did move this. This was in the middle, here, there was one in the middle and they moved it over. Now, that's just a question to you guys. What's in there? We could move it, but it's a parking lot, so I can't imagine there's a ton of stuff in there. - So, that's what we're going through right now, and that will be part of the consideration. We sent out the RFP with the estimation of it, right? We don't know everything that's under there, but with that, we're going through right now and finding out what exactly the infrastructure is under there and what it potentially would cost to move the utilities left or right. - Or can we be flexible in this so we don't have to do that? - Correct. - Right. - Yep, and I think there's a cost to everything, and that's where we talk about that cost. Would it be cheaper to shift the building, or is it cheaper to move the utilities. So, we should have our arms around that hopefully by the RDA meeting next week. - By Tuesday? And the city commitment is 800,000 hours on TIF and, I presume, the land. - And the land, I'm sorry. For now, correct. - Okay. - Which I know is a big - Oh, on that site plan, Ted, how do you access the underground parking? And is it intended that the underground parking is all dedicated to the affordable rate housing or attached to the grocery store? - [Ted] No, it would be all residential, and I'm going to not fake that I know where the underground parking comes in because I'm not sure I do. - It's off of Pine. - [Ted] Which one? - Off of Pine Street. - Oh, off of Pine. Sorry, I thought it was on Pine, but I didn't see it. Here's Quincy. Oh, over here? - Yep. - Okay. - [Scott] On the top right. There's an access, a curb cut right towards that building. - Right here? - [Scott] Yep. Up. - Up here. There, right there, right there. Right? Well, that's the grocery, so I think it might be right there, but I'm not exactly sure. It might be down there. You might be correct. It might come underneath the grocery. I'm not exactly sure, but it would service the residential only though. - Another little inquire, and maybe Scott can help with this, if it's apartments or if there's some home ownership. - No, it's apartments. - It's all apartments, Scott? - Yeah, so the high-density, the multi-level would be all apartments. - Okay. - And this is where Ted and I have been talking, that condos or the town houses. - On Quincy. - Quincy. That would be potential home ownership. - Yeah, what we've done, and just like the condominium thing, what we've done is if you have a pioneering housing development that you say is home ownership, very hard to get financing for. If you say that, and we've done this in Milwaukee, if you say that these are rentals, but as soon as they rent them, as part of their lease, they can buy this tomorrow for a strike price that is reasonable. Everybody knows what it is and it's reasonable, and these guys would facilitate that, and then you work with your tenant to get the home ownership piece in place and they can take it out at any time, but you gotta finance it as a rental that the bank is comfortable, and they're like, "okay, "if nobody buys it, we're good," but if somebody buys it, they take you out, great, you pay down a loan. So, that's kind the way we've been doing that, and you don't do that with 200 units, but you do that with 15 town homes. - Okay. - Can I ask a little bit about the grocery store? Because there's the town homes and the apartments and the grocery store so, when you talk about a 2021 date of breaking ground, is that same with the grocery? - Yeah, it would all be one thing. - And you have the commitment from Maurer's? - Yep. Before we put an application in, before we sign a development agreement with you or whatever, she would have a lease signed that would have all of that in it. We would fully expect that. We haven't done that yet 'cause I know her very well. We're very good friends, so her word's good, but we've kinda worked through the performer with her, but all that would be finalized, at least, before we even sign it. - And the tax base is 18 million - Well the $160,000 is the tax increment, the total development cost is 24 million; however, the assessment for an affordable deal is less than the total development cost because of the rental income is lower than what the construction cost would dictate. - Sure. - Yeah. - Okay. - [Man] So, we went through this with TDBG Rob A. Moss. They have all 22, 23 million dollar cost, but the assessment came out. What we're anticipating is probably gonna be somewhere between seven and a half and eight million because we project our assessments on the NOI, and when you're capping lease rates, it only assesses at a certain. - Sure. I understand. - And so, have you worked with them on what the tax increment would be or was that be completely your calculation? - This is our calculation. Yeah. We've actually had no interaction with staff on this at all. - [Kevin] Okay. So, we've let the developers propose. I've got some back there on the envelope spreadsheets, kinda word thing. It may come out based on how this body feels, we'll take the proposal and work more closely with our assessor to get our arms around what those numbers might exactly be. - Yeah, we take what we think is the Green Bay assessment policies and put a value on it and just kinda estimate what we think the assessment would be. - I can say that a ball park's been projected. So far, is pretty ball park. - Good thing is you have two diametrically opposed projects. You're not picking the developer. You're picking the project. - Yeah, and I have some questions on the scoring and all that, so I don't know if we - Anybody else have any other questions? Okay, I think we're good then, Ted. - Okay, thank you very much. - Appreciate it. Thank you, Scott. - Thank you very much. - Okay, I'll take a motion to go back to the regular order of business. - I make a motion to go back to regular. - I'll second. - Motion and a second to go back to regular business. All those in favor, say aye. - [All] Aye. - Okay, we're back to regular order of business. This is probably a time for us to go into closed session. - [Kevin] Yeah, I think maybe what might be appropriate to do is two things. One, we talk about this internally with our projects team here on the floor, and if Ken wants to provide a high level summary of just some things that we saw as we went through, some advantages or weaknesses of each project, kinda give us some context, and then I guess any questions for Ken, and then after that, I would recommend going into closed session, I think if we wanna talk a little bit about some of the numbers and potentially what's been requested in terms of TIF incentive and how me might approach negotiating agreement with each of these parties. That's something that we probably should do in closed session, but I think, first, if Ken wants to provide just an overview what the staff saw in terms of the project, I think that would help in terms of making deliberations. - [Ken] Yeah, certainly. So, we put together in our projects team, basically, an evaluation criteria that went through the scoring points that were laid out in the RFP, and basically just. - Thank you, sir. - [Ken] Looking through these here, we had the main points, the alignment with strategy, design and use investment, and capacity and experience. On the surface, both projects we thought they fit the site very well. As far as alignment with our strategy, the Gorman project basically checked all the boxes as far as alignment with strategy, as far as making the city safer and more productive, accessible, innovative. On the T. Wall Enterprises side, some of those factors weren't quite as clear. One of the issues we had on that side, the perception of safety as far as having the closed, gated community kinda gives that perception of less or not as safe of an area, and that kind of spilled over into the design and use of the project. Points on the Gorman side of the project that were positives, looking at the higher-density mixed used development, which is what we had asked for in the RFP. On the T. Wall side, more heavy on the residential, factors with the alley were an issue that I think T. Wall they did a really good job of incorporating that alley and leaving it as we requested, leaving it open. Now, with the presentations today, Gorman had talked about changing the site around if they needed to, but that was a concern that we had there on their side. I think, with the Gorman project, adding the grocer, mixed units, LMI, we thought that that scored pretty well for us. Back on the T. Wall side, as far as the design and use of the units, there was a strong massing on the residential side, no break in the units. They had talked today about breaking up those facades with some design changes with the materials. As far as the investment side, Gorman's were very well, as far as they're requesting the free lot and $80,000 of the - $800. - [Ken] I'm sorry, $800,000. Sorry. - Important zero. - Yes, that was a very important zero. Where on the T. Wall side, the 100% TIF, and looking at the balance of those finances with the allotted units that are provided, we felt that the Gorman project scored a little bit higher there. As far as the capacity and experience, we know both companies have shown strong projects in the past. We did score higher on T. Wall as a local company. Gorman does bring in a new mix. This would be their first development in the area, so we're adding another developer to our market if we go with their project. We also like that they added in another local developer with NeighborWorks, having that partnership. I think NeighborWorks is showing success in our community, and we know that their town home model has worked in the neighborhood close to here. So overall, at the staff level, we would be recommending the Gorman project for this. I guess, if you guys had any questions, I can answer those. We also have the rest of our staff here that helped with this scoring, as well. - I do have one, and it's under the investments section on the Gorman project, and it says, "not sure of Neighborwork's "design of financial ask," and I'm not sure what that means. - [Ken] Yeah, so with that, there was nothing in the proposal that discussed that, and I think that they touched on that a little bit today that in their structure, they're not sure if those are gonna be rentals or home owners. So, they kinda touched on that. - In the town homes. Okay. - In the town homes. - Got it. - [Ken] Correct. So, when we were grading these, that was a little uncertain, but I think they touched on that today, and I think they have a little bit of work left on their side to figure out what that structure looks like. - Was there actually a numerical value put on this here? Did we actually end up with a number, or is this it? - [Ken] This was it, right here. We did it as a consensus scoring. We basically looked at the pros and cons and then decided what staff would recommend here. - And then another question, Ken, on what's in the investment side under T. Wall's, and was about writing the request for tax abatement. I'm not sure if that's allowed or legal. Do we have any further insight on that, or can that insight be gained by next Tuesday? - We could have that by next Tuesday, I believe. - [Kevin] Correct. So, our attorney has been out, but I think that's one of the things we'd have to look at, just how to specifically deal with structure. We can't abate per state law, like current taxes, existing taxes, so we'd have to look in terms of how you would balance an occupancy permit with when it actually then would hit the tax role. So, there's a little bit of a challenge in terms of the developer wanting the occupancy permit so somebody can move in, but not doing so in a way that would necessarily trigger the assessment. So, I think we just have to talk through the legalities and mechanics of how that would particularly work in that instance, or what would have to be structured differently. The understanding is the developer's looking, basically, during that period, to not have to take that hit of having to make payments before revenues were coming in, and so whether that could be actually done the way proposed, or it would have to be, perhaps, up front TIF in order to provide that subsidy. That's something that we're still examining. - And is the 95% negotiable? - Everything's negotiable. I think that's one to talk through in terms of when that trigger would occur, and I think, again, those are details of a development agreement that would be worked on with whatever party is selected in terms of there's things, that's part of the closed session is negotiating. Where does this committee, and ultimately RDA, where do they feel comfortable, like we do in some of these agreements in terms of, all right, what are our sticky points, Or how would we like to approach this? - Do you have a good feel for how much TIF would be upfront as compared to TIF as we go? - [Kevin] Yeah, I can discuss a little bit. - Okay. - [Kevin] About that. I ran some numbers in a spreadsheet so I can kinda discuss where we might fall and, based on the increment, how it might play out. - So, is Gorman a pay as you go? - It's more of a closed session.- - Yes. - Yes. At this point, yes. - But Gorman is a pay as you go? - I read that as that was an upfront. That was an upfront request. - Okay. - Yep. - I don't have anymore questions on this. I wouldn't mind going into closed session. - Yeah, I think it's the right time to do that. - [Kevin] All right, then I just start reading the language. - The authority may convene in a closed session, pursuant to section 19 point eight five one B, as part of the statute, for purposes of delivery sale of the property, investing of public funds, or conducting other specified public business as necessary for competitive requirements. The authority may thereafter reconvene in open session pursuant to section 19 dot eight five two of the public statute to report the results of the closed session to consider a balance - [Kevin] All right, Matt Schueller. - Here. - [Kevin] Gary Delveaux. - Here. - Kathy Hinkfuss. - Here. - [Kevin] Okay. All right, so to go back in open session. Matt Schueller. - Here. - Gary Delveaux. - Yes, here. - Kathy Hinkfuss. - Here. - [Kevin] All right, so we're back in open session. If anybody wants to. - Anybody, except Grant. - Nobody's there. - We do this electronically? - [Kevin] Yeah, we're good. We're in open session. - Okay, we had a great chance to meet in closed session to talk about the two different proposals and what I'd just first say is we are very pleased with both, very, very appreciative of them, great work by staff, great work by both developers, as well, and thank you for the time that the developers put into them, and for being here today, as well, and with that, Kathy will lead with the motion. - So, this committee would like to make a motion to the RDA to accept the Gorman and Company LLC proposal and have the staff enter into agreement with them for finalizing of a development agreement. - I'll second that. - All those in favor? - All up? - Electronic. - So used to. - Right. Right. Right. - Just when you get it down, right? - You go and change the rules on me. - Passed unanimously. - yes. - Very good. - Excellent job. - Yeah, excellent job. - [Kevin] This will go to RDA next Tuesday then for this. - Yes. - It's exciting. Great. - Yeah, it's very exciting. - It's very exciting. - Very exciting. Thank you. - Congratulations to Gorman, but also, thank you for your proposal. - Thank you very much. - Appreciate it. - Come back. - Yeah. - There we go, right? That's awesome. - This is exciting. - Do we have a motion for adjournment? - I'll make a motion we adjourn. - I second. - And Gary in his extinguished role. So, we are therefore adjourned.

Agenda

Packet

AGENDA OF THE REAL ESTATE SUBCOMMITTEE OF THE REDEVELOPMENT AUTHORITY OF THE CITY OF GREEN BAY TUESDAY, OCTOBER 1, 2019, 1:30 PM CITY HALL, ROOM 604 -THE HARRY MAIER ROOM A. Roll Call. 1. Members: Matt Schueller, Kathy Hinkfuss, and Melanie Parma. B. Regular Business. 1. Consideration with possible action on a Request for Proposals for redevelopment of the parking lot located on the 200 block of North Monroe Avenue. The Authority may convene in closed session pursuant to Sections 19.85(1)(e), Wis. Stats., for purposes of deliberating or negotiating the sale of public properties, investing of public funds or conducting other specified public business as necessary for competitive or bargaining reasons. The Authority may thereafter reconvene in open session pursuant to Section 19.85(2), Wis. Stats., to report the results of the closed session and consider the balance of the agenda. C. Adjournment. 1) THIS MEETING IS RECORDED: THE VIDEO OF THIS MEETING AND MINUTES ARE AVAILABLE ONLINE AT www.greenbaywi.gov 2) ACCESSIBILITY: Any person wishing to attend who requires special accommodation because of a disability, should contact the City Safety Manager at 920-448-3125 at least 48 hours before the scheduled meeting time so that arrangements can be made. 3) QUORUM: Please take notice that a majority or quorum of the Common Council will attend this Real Estate Subcommittee of the Redevelopment Authority meeting and will constitute a meeting of the Common Council for purposes of discussion and information gathering relative to this agenda. 4) REPRESENTATION: The party requesting the communication, or their representative, should be present at this meeting. Agenda of the Real Estate Subcommittee of the Redevelopment Authority October 1, 2019 Page 1 Report to the Real Estate Subcommittee of the Redevelopment Authority of the City of Green Bay MEETING DATE PREPARED BY October 1, 2019 Ken Rovinski, Staff AGENDA ITEM # B.1. Consideration with possible action on a Request for Proposals for redevelopment of the parking lot located on the 200 block of North Monroe Avenue. The Authority may convene in closed session pursuant to Sections 19.85(1)(e), Wis. Stats., for purposes of deliberating or negotiating the sale of public properties, investing of public funds or conducting other specified public business as necessary for competitive or bargaining reasons. The Authority may thereafter reconvene in open session pursuant to Section 19.85(2), Wis. Stats., to report the results of the closed session and consider the balance of the agenda. BACKGROUND This site was recently purchased by the RDA and is currently used as a surface parking lot. Staff has drafted a Request for Proposals that coincides with the recommendations as provided by the City's 2014 AuthentiCity Plan. The plan recommends this site to be used for mixed use development with a requirement that the first floor be commercial. Staff received two proposals for the site by the September 13, 2019 deadline. The RDA real estate subcommittee has been gathered to interview each developer and to discuss the proposals submitted. A staff recommendation will be presented to the subcommittee upon the conclusion of the interviews and discussion. The recommendation, if approved, will then be presented at the October 8, 2019, RDA meeting. RECOMMENDATION A staff recommendation will be presented to the RDA real estate subcommittee upon the conclusion of the developer interviews and subsequent discussion for the parking lot located on the 200 block of North Monroe Avenue. FISCAL IMPACT ATTACHMENTS 1. 11-160_Request_for_Proposals 2. Gorman & Company 22 N. Monroe Street Response 3. T. WALL - 200 Block N. Monroe Ave Green Bay 100 North Jefferson Street, Green Bay, Wisconsin 54301-5026 greenbaywi.gov City of Green Bay Department of Community and Economic Development Request for Proposals 200 Block N. Monroe Ave. Redevelopment Authority of the City of Green Bay Released July 16, 2019 100 North Jefferson Street, Room 608, Green Bay, Wisconsin 54301-5026 (p) 920.448.3400 (f) 920.448.3426 greenbaywi.gov Request for Proposals: 200 Block N. Monroe Ave. I. Introduction A. Project Overview The Redevelopment Authority of the City of Green Bay (RDA) is seeking proposals for the purchase and redevelopment of the 200 block of N. Monroe Ave. (tax parcels 11-191, 11-160, 11-156, 11-157, 11-158, and 11-159). B. Project Goals The property is on the edge of the Downtown district, along a major corridor. This is a block of transition from Downtown density to the Whitney Park and Navarino neighborhoods. The RDA’s goals for this property include the following: 1. Positively utilize the site for economic growth by incorporating mixed-use development 2. Generate tax base 3. Work with the City of Green Bay and Downtown Green Bay, Inc. to positively promote the development during the design process. 4. Facilitate a development that corresponds with the City’s 2014 AuthentiCity Plan C. Property Summary Location: 200 Block of N. Monroe Ave. Property Ownership: RDA Parcel(s): 11-191, 11-160, 11-156, 11-157, 11-158, 11-159 Site Size: 2.42 acres (105,282 square feet) Type of Project: Preference will be given to a medium-high density housing development or a mixed-use development with an emphasis on housing creation. If the development is mixed-use, at least thirty (30) percent of the first story facing Monroe Ave. must have a commercial user(s). Land Value: $736,100 D. Property Background The site is currently a parking lot. Previously, the site was low to medium density residential and then automobile services on parcel 11-191. E. Environmental Condition The City will initiate a Phase I Environmental Site Assessment (ESA) and Phase II ESA if necessary. page 2 of 10 II. Proposal Requirements A. Content and Organization To achieve a uniform review process and a degree of comparability, the proposals should be organized in the following order and contain all of the following information: 1. Title Page Show the proposal title, the name of firm, address, telephone number(s), name and email address of contact person, the date, and other relevant company information. 2. Alignment with Strategy Please provide a narrative of the project that shows how it aligns with our community and economic development strategy to generate innovative ideas, cultivate ideas into businesses, and retain and attract skilled people. The City supports projects that make our community more: 1. safe; projects that 1.1. remove blighted and neglected properties with high complaint and/or police call volumes 1.2. remediate environmental contamination and/or enhance the physical (soil, water, air) landscape 1.3. strengthen and/or expand public water, sewer, stormwater, and other utility infrastructure 1.4. eliminate and/or reduce transportation hazards 2. productive; projects that 2.1. rehabilitate and/or build new structures with high-performance designs, systems, and finishes 2.2. create a significantly higher per acre property value than adjacent properties and the City average 2.3. generate property taxes greater than the cost of providing infrastructure and services 2.4. generate job opportunities for smart and skilled individuals 3. accessible; projects that 3.1. rehabilitate and/or build new structures for individuals of all ages and abilities 3.2. are located in places easy to reach on foot, bicycle, or transit 3.3. strengthen and/or expand non-motorized transportation networks 3.4. generate job opportunities for individuals of all ages, abilities, and incomes 4. innovative; projects that 4.1. expand our range of (residential, commercial, and industrial) real estate products 4.2. are designed and built with options for conversion to alternative uses in the future 4.3. create and/or enhance unique public spaces, amenities, and art 4.4. support disruptive startups and high-growth, second-stage companies 3. Design and Use Describe the project and provide a scope of work. Include a preliminary site plan with the proposed building footprint, parking, and circulation. Also submit massing diagrams or elevations showing how the proposed development relates to the surrounding buildings. Discuss the occupancy of the completed project. Provide a detailed explanation of the end user(s) for this property. Offer an idea of the target market for the proposed concept and how the property will be marketed. The Developer should provide a timeline for tenancy and include any challenges that may be perceived. page 3 of 10 Long-Range Planning. This site is in an area highlighted in Downtown district plans adopted by the City (see Appendix). It is along the Monroe corridor, which carries an annual average daily traffic count of 10,700 vehicles. The block is part of the area indicated as a catalytic development opportunity site, meaning it is a priority in new or redevelopment, and it should drive the momentum in Downtown growth. The plan recommendation for this site is residential development, with taller, high-density residential facing Monroe and medium-density residential or townhouses facing Quincy. Form. Parcels 11-160 and 11-191 are zoned Downtown One (D1). Parcels 11-159, 11-158, 11-156, and 11-157 are zoned Office Residential (OR). The building must be designed to comply with OR and D1 zoning requirements, with flexibility if shown necessary in the proposal. The north-south alley must remain in use without structures built above. The building must complement the established Downtown neighborhood character: Architectural Character Sensitivity to context. Identifiable and distinct. Articulation Emphasis on building corners at intersections. Buildings greater than thirty (30) feet wide are divided into smaller increments through variations in materials or through architectural elements. Alignment The front façade and main entrance may have slight variations to the zero (0) foot setback (if mixed-use) to enhance building entrances or streetscape elements; i.e. outdoor café seating, entrances. First story is distinct from upper stories, through change in building materials or textures or through sign bands, awnings, arcades, etc. Building Materials Brick and stone; other material for accent features only. Rear façade may have concrete masonry units with color treatment. Color Reflect the existing and desired context Fenestration Minimum of fifty percent (50%) of the first story (street-facing) façade is transparent (if mixed-use). Upper story windows: punched openings, reflective glass discouraged. Modulation No blank facades. Variation in treatments. Pedestrian scale. Modulation rhythm through setbacks, façade widths, heights, colors, materials, and architectural features Height This may vary between the east and west portions of the site. East: between two (2) and four (4) stories. West: between three (3) and four (4) stories. Mixed-Income Housing. While market-rate housing is suitable for this development, higher points will be attainable for a project that incorporates affordable residential units. Commercial Use. Preference for a mixed-use project is one that that incorporates a large commercial tenant, ideally grocery but would consider other users such as restaurant or retail. Parking. The project must provide sufficient parking to comply with the relevant requirements of City Code 13-1700. Parking must be in the rear yard, underground, or parking structure. *New parking requirements will be considered by the Common Council within the timeline of this RFP. page 4 of 10 Public Art. One percent (1%) of the overall project budget shall be dedicated toward public art in the City. This may be through incorporating new art on the project site, funding art around the site or Downtown area, holding a percentage of funds for art maintenance, donation to the Green Bay Public Arts Commission, or a combination. 4. Investment Provide an analysis of expected increase in tax base generated by this project. Discuss project costs, including acquisition cost. The value of the property is estimated to be $736,100. Proposals should identify planned sources of financing for the project. Attach proof of funding sources; i.e. loan approvals, financial statements, letters of credit etc. 5. Capacity and Experience Provide a timetable for construction, including start and completion dates, as well as a final goal for attaining occupancy of the property. Briefly discuss other projects (if any) that may limit the Developer’s ability to complete this project in a timely manner. Explain the Developer’s qualifications and related experience in development. Provide résumés of project team members, any examples of previous projects that may relate to this type of development, and a list of contractors/ subcontractors to be used for this project. B. Submittal Requirements Proposals must be received by the RDA by Friday, September 13, 2019, no later than 4:00 p.m. CDT. Submissions must include one (4) original copies, and one (1) electronic copy (CD, DVD, or flash drive). Please send proposals to: City of Green Bay Department of Community & Economic Development Attn: Ken Rovinski 100 N Jefferson St, Room 608 Green Bay, WI 54301 The staff recommendation along with developer interviews will be presented to the RDA Real Estate subcommittee on Tuesday, October 1, 2019. Final RDA approval will be made at the Tuesday, October 8, 2019 meeting. Both meetings will be held at 1:30 p.m. CDT in Room 604 of City Hall on their respective dates. III. Selection Process and Criteria A. Selection Criteria Proposals will be reviewed by an evaluation committee and scored against the stated criteria. The committee may review references. The RDA’s intention is to procure the most functionally complete and suitable solution to meet our desires for the site. The total price for the proposed purchase of the site will be considered in the final analysis, but this will not be used as the primary consideration in the selection of the “best” solution. Ultimately, the RDA will award the project to the responsive and responsible developer whose overall proposal offers the best value for the City, as evaluated pursuant to the evaluation criteria as set forth herein. The RDA reserves the right to award in part or whole. Selection will be based on the following criteria. A Vendor’s submission of a proposal constitutes their acceptance of the evaluation technique and their recognition and acceptance the evaluators will use their judgment in making a determination based on several criteria. page 5 of 10 Selection Criteria (Continued) FACTOR ALIGNMENT WITH STRATEGY makes the City safer makes the City more productive makes the City more accessible makes the City more innovative DESIGN AND USE overall form and character density and intensity of structure quality of use types mix of use types integration of mixed-income residential integration of public art INVESTMENT scope of work estimated property value at completion estimated hard construction costs total cash offer for all parcels amount of requested public funding proposed sources of financing CAPACITY AND EXPERIENCE project team qualifications proposed time to complete proposed time to attain occupancy demonstrated success on similar projects B. Questions and Comments All questions shall be submitted in written form to the contact information provided below by Friday, August 30, 2019. Answers will be provided, via the City website (www.greenbaywi.gov), as a part of addenda to the RFP as they become available. Multiple addenda may be released. Mail to: City of Green Bay Department of Community & Economic Development Attn: Ken Rovinski 100 N Jefferson St, Room 608 Green Bay, WI 54301 OR Email to: kennethro@greenbaywi.gov C. Selection Process The developer selection process will involve the following primary steps: 1. Proposal review 2. Staff Recommendation of selected developer 3. Developer interviews with RDA Real Estate subcommittee 4. Final RDA approval of selected developer 5. Finalize / execute Development Agreement page 6 of 10 D. Timeline Final questions due: Friday, August 30, 2019 Proposals due: Friday, September 13, 2019 RDA subcommittee: Tuesday, October 1, 2019 at 1:30 p.m. RDA selection: Tuesday, October 8, 2019 at 1:30 p.m. E. Rules Governing Competitive Evaluation 1. Examination of Request for Proposals Applicants should carefully examine the entire RFP, any addenda, and all related materials and data referenced in the RFP. Applicants should become fully aware of the nature of the work and the conditions while performing the work. 2. Contract Negotiations The highest-ranked Developer will enter into negotiations with the RDA. If an agreement cannot be met, the RDA will notify the Developer and stop negotiations. Then the second highest Developer will enter into negotiations. This process may continue until a successful negotiation(s) occurs. The RDA reserves the right to cease any negotiations with any Developer should it be in the RDA’s best interest. 3. Completeness, Addenda, Rejection, Cancellation, Preparation Cost This Request for Proposals (RFP) has been prepared by the RDA and does not purport to be all- inclusive or to contain all of the information a prospective purchaser or developer may desire. No legal liability is assumed or shall be implied with respect to the accuracy or completeness of this RFP. The RDA reserves the right to revise any part of this RFP by issuing an addendum at any time prior to the submittal deadline. The RDA reserves the right to accept or reject, in whole or part, all proposals submitted and/or to cancel this announcement if any such action is determined to be in the RDA’s or the City’s best interest. All materials submitted in response to this RFP become the property of the RDA. The RDA will not be responsible for costs associated with preparing proposals. By submitting a proposal, each Developer agrees to be bound in this respect and waives all claims regarding such costs and fees. page 7 of 10 IV. Appendix page 8 of 10 page 9 of 10 page 10 of 10 Redevelopment Authority of the City of Green Bay RESPONSE TO REQUESTS FOR PROPOSALS 200 Block N. Monroe Avenue SEPTEMBER 13, 2019 Contact: Ted Matkom tmatkom@gormanusa.com 414-617-9997 2. ALIGNMENT WITH STRATEGY THE PROPOSAL In response to this RFP, Gorman & Company is proposing a mixed-use, mixed-income development. The commercial component will front Monroe Avenue and is comprised of an approximately 24,000 square foot independent grocery store. The residential component features 80 apartment homes for mixed income individuals and families. For the grocery component, Gorman is partnering with Maurer’s Market, an independent grocer with experience in adapting to the specific needs of the community it serves. Maurer’s Market is Wisconsin- based with locations in Janesville, Wisconsin Dells, and Milwaukee. The family-owned company’s focus is on smaller, full-service grocery stores that meet the unique needs of residents, workers, and students, with fresh, nutritious and high-quality groceries that are competitively priced and geared toward a diverse clientele. Maurer’s Market is focused always on creating the best experience for the customer and surrounding community. This Proposal aligns with priorities for the downtown Green Bay community, identified in the RFP: SAFE The redevelopment of this property will replace the existing surface parking lot with a multi-use mixed income development. The 200 Block of North Monroe Avenue presents an opportunity to provide a catalytic development that will transform the area into one which is more pedestrian friendly. The addition of a grocery store and 80 housing units will activate the currently vacant site and encourage additional pedestrian traffic in the downtown. PRODUCTIVE Gorman & Company has 35 years of experience developing, designing, and building affordable housing that include high performance designs and finishes. Examples of our work are included in the Capacity and Experience tab. Our proposed development will have a total development cost of over $24 million and will generate a significant tax increment for the city. We anticipate that this tax increment, once stabilized, would be approximately $160,000 per year. In addition to creating construction jobs, we anticipate that our proposed mixed income housing and our partnership with Maurer’s Market will provide the area with 10-12 full-time and 30-40 part time permanent jobs once stabilized. Gorman & Company will act as general contractor for the project. Our standard practice is to use local subcontractors whenever possible since we do not self-perform any trades. ACCESSIBLE Our proposed development will incorporate the principles of universal design, ensuring that our building caters to the needs of individuals of all ages and abilities. By replacing a parking lot with a mixed use development we are in line with the 2014 AuthentiCity Plan’s goal of changing the impression of the Monroe Street Corridor from a place where people park their cars to walk to amenities within downtown Green Bay, to a part of downtown itself. With the addition of a full service independent grocery store to downtown Green Bay we believe our proposal will increase the walkability of downtown. A grocer in this location will attract patrons from both the downtown area and the neighboring Navarino and Whitney Park neighborhoods. The proposed building is designed to include extensive frontage on Monroe Avenue, which will support the transition of Monroe Avenue to a more pedestrian-oriented district. Our nonprofit partner for the residential component will be Neighborworks, who will provide resident services consistent with their core mission. INNOVATIVE A key community benefit of this proposal is the inclusion of Maurer’s Market, an independently owned and operated grocery store with an engaged owner that will be able to adapt to the community. Maurer’s understands that the grocery store needs to be an integral part of the community. To facilitate this, the northwest corner of our site plan includes an outdoor event space, providing a unique public amenity. This development will also help to address Green Bay’s demand for affordable high-quality housing and amenities for individuals and families in the community. Gorman & Company has extensive experience in designing, constructing, and managing mixed-use, mixed-income developments. Local plans call for a range of real estate types and variety of housing options to accommodate the needs of residents of all income levels and age groups. This proposal aims to accomplish this by providing 80 total housing units, 56 of which are affordable units reserved for individuals and families earning no more than 60% of the County Median Income. That income limit encompasses jobs with the school district, child care providers, restaurants, retailers, warehouses, bank tellers, customer service representatives, and more. A portion of the affordable units will be targeted to low-income veterans and individuals with a disability or special need. 3. DESIGN AND USE PROJECT DESCRIPTION & SCOPE This proposal envisions the following: • 24,000 square foot grocer on Monroe Street • 80 unit multi-family development with affordable and market rate apartment units, and townhomes on Quincy Street o 56 affordable and 24 market rate units  70 underground parking stalls for apartment residents  Surface parking – 85 stalls o Grocery customers and employees o Apartment guests, employees, and overflow The anchor of this proposal is an approximately 24,000 SF first floor grocery store, to be operated by Maurer’s Market. The overall design and site plan prioritizes the efficiency and long-term operational feasibility of the grocery store. Located alongside the grocery store and fronting Monroe Avenue will be approximately 80 multifamily apartment units including townhomes facing Quincy Street. OCCUPANCY The first floor grocery space will be occupied by Maurer’s Market, a Wisconsin-based grocery store with locations in Janesville, Wisconsin Dells, and Milwaukee. The family-owned company’s focus is on smaller, full-service grocery stores that meet the unique needs of residents, workers and students, with fresh, nutritious and high-quality groceries that are competitively priced and geared toward a diverse clientele. We envision the housing component being financed in part with WHEDA tax credits, and therefore a majority of the units will be reserved for residents who make sixty percent (60%) or less of the County Median Income (CMI); remaining units will be market rate. We believe this would be an excellent site for multi-family affordable housing; residents would be ideally located on the edge of the Downtown district with easy access to nearby amenities such as the library, parks, and schools. Gorman & Company aims to achieve lease up of all units within a 6-8 month timeframe. Our marketing strategy includes a proactive preleasing strategy alongside an interactive website featuring floors plans and photos; advertising via online rental platforms; and local market outreach to community organizations. With an estimated construction start of April 2021, we anticipate the project will be placed in service in July 2022. We will begin our preleasing activities January 2022. We project the development will be fully leased up by February of 2023. We foresee no challenges in attracting residents to this project due to the prime location and easy access to amenities, services, and integration with a new grocery store. 44' - 0" SITE & SITE SECTION 62' - 0" 18' - 0" Section 1 1 1" = 50'-0" OUTDOOR 80'-0" ALLEY SHIFT SUB-GRADE SEATING & EVENT PINE STREET PARKING SPACE ENTRY PUBLIC ART INSTALLATION & L'SCAPING MAURER'S MARKET 24,000 SF 5 (3.85 STALLS PER 1000 SF) TOWNHOMES 30' WIDE NORTH/SOUTH ACCESS ROAD TO REPLACE ALLEY (DESIGN TBD) TRASH MONROE AVENUE N QUINCY STREET STORE ENTRY APT ENTRY PEDESTRIAN PASS-THRU PUBLIC ART INSTALLATION & L'SCAPING 5 TOWNHOMES (DESIGN TBD) 20 20 20 70 UNIT APT BUILDING OVER STORE 13 WITH 70 SUB-GRADE STALLS 20 5' LANDSCAPE BUFFER CHERRY STREET 200 N. Monroe RFP | 09/12/19 | SHEET 2 SITE PLAN 2 1" = 50'-0" FLOOR PLANS ST RAMP UTIL 11 3 12 12 8 3 21 ST UNDERGROUND PARKING 1 1" = 50'-0" Level 1 Level 2 Level 3-5 2 3 4 1" = 50'-0" 1" = 50'-0" 1" = 50'-0" 200 N. Monroe RFP | 09/12/19 | SHEET 3 MASSING CONCEPT 200 N. Monroe RFP | 09/12/19 | SHEET 4 4. INVESTMENT Based on the included financial summary we expect a total project cost for the housing component of approximately $18.5 million, which would be financed by a mix of traditional mortgage debt , 9% Low Income Housing Tax Credit Equity, FHLB Chicago AHP funds and deferred developer fee. Our proposed grocery component is estimated to have a total project cost of $5.6 million financed through a mix of traditional debt, New Market Tax Credits and Tax Increment Financing. Combined, these two components would total over $24 million and generate approximately $160,000 in real estate taxes. SOURCES & USES – RESIDENTIAL COMPONENT Sources Uses First Mortgage $6,270,000 Acquisition $1 FHLB AHP $840,000 Hard Costs $14,000,052 LIHTC $10,904,115 Soft Costs $4,025,741 Deferred Developer Fee $467,440 Reserves $455,761 Total $18,481,555 Total $18,481,555 Please note that we have not requested any financial assistance from the City on the residential component, with the exception of a land cost of $1.00. We structured the residential component to be competitive within the WHEDA scoring matrix based on the scores of last round’s successful applicants. We have enclosed a letter from Walter Dunlop to confirm the First Mortgage amount and terms that are in the proposal. SOURCES & USES – COMMERCIAL COMPONENT Sources Uses First Mortgage $3,289,353 Land Acquisition $1 New Market Tax Credits $850,000 Core and Shell $3,792,000 TIF $800,000 Tenant Improvements $1,320,000 Private Equity $683,848 Soft Costs $511,200 Total $5,623,201 Total $5,623,201 Please note we have a TIF request within the grocery component of $800,000 which, along with the New Market Tax Credit Equity, will subsidize construction costs to enable Maurer’s Market to operate at a $10 per square foot rental rate to ensure its long term financial viability at the site. We have confirmed that this tract is New Market Tax Credit eligible. Public Art: We have reserved 1% of our total development budget to be allocated toward public art and spaces. 142 E. Capitol Drive, Suite 200 Hartland, WI 53029-2104 Direct Dial: 262-912-7075 Fax: (262) 436-2162 Thursday, September 12, 2019 Nicole Solheim Director of Development Gorman & Company, LLC 200 W. Main Street Oregon, WI 53575 Re: Freddie Mac 9% LIHTC Forward – Green Bay RFP Dear Nicole: Below is a summary outline of the Freddie Mac terms that Walker & Dunlop expects to provide for the permanent financing for the housing component of your proposed mixed-use development in Green Bay, Wisconsin. Please note that the terms below are as of the date of this proposal and are subject to change at any time with fluctuations in the capital markets. Loan Amount: $6,270,000 Fixed Rate Term: 15 years Amortization: 35 years Forward Term: 18 months Rate: 4.35%. Calculated with a 10-year US Treasury (currently 1.78%) and an estimated spread of 280 bps. Loan to Value: 85% DCR: 1.15x based on a 35-year amortization Required Escrows/Reserves: Tax and insurance escrows, and a monthly replacement reserve. Recourse: Non-recourse with standard industry carve-outs for fraud and environmental. Carve-Out Guarantor: Applicable Gorman & Company Entity Assumability: One (1) time for a fee of 1% Prepayment: Yield Maintenance Financing Fee: 1% of the Loan Amount Third Party Reports: Appraisal, Phase I, Property Condition, Survey, and Zoning Report Funding: On or about September 30, 2022 jnelson@walkerdunlop.com Gorman & Company Project & Feasibility Summary: Housing Project Name Downtown Green Bay Apartments Developer: Gorman & Company Date: 9/13/2019 Address 200 N. Monroe Development Stage: Initial Feasibility Model City Green Bay County Brown State Wisconsin Occupancy: Family Development Type New Construction Building Type: Multi‐story Elevator Project Type LIHTC only LIHTC Type 9% Located in QCT or otherwise eligible for basis boost: Yes Additional Project Information (assumption, description, notes, or version details) Unit Mix, Rent, & Building Summary Unit Mix Summary Building Area Summary Sq. Ft. Residential # Units % Sq. Ft. % Total Residential Living Area 80,875 LIHTC/Affordable 56 70.0% 55,875 69.1% Common Space (community room, offices, hallways) 13,749 Market Rate 24 30.0% 25,000 30.9% Net Residential Area 94,624 Total Residential 80 80,875 Structured Parking LIHTC Applicable Fraction 69.1% Gross Floor Area (SF): 94,624 Other Income Summary by AMI Type Monthly Annual AMI Units % Misc Fees ‐ Application, Pet, etc. $1,010 $12,120 30% 16 29% Parking $50 per space $4,000 $48,000 40% 50% 32 57% 60% 8 14% 56 100% LIHTC/Affordable Units # Bed Description Set # Area Utility Net Monthly Gross Sec 42 % of room(s) (optional) Aside Units (Sq. Ft.) Allowance Rent Rent Rent Limit Limit 1 30% 4 600 $88 $372 $1,488 $460 $460 100.0% 1 50% 5 600 $88 $640 $3,200 $728 $767 94.9% 1 60% 2 600 $88 $785 $1,570 $873 $921 94.8% 2 30% 8 950 $101 $451 $3,608 $552 $552 100.0% 2 50% 14 950 $101 $775 $10,850 $876 $921 95.1% 2 60% 2 950 $101 $950 $1,900 $1,051 $1,105 95.1% 3 30% 4 1,225 $115 $523 $2,092 $638 $638 100.0% Market Rate Units Monthly Rent 1 3 600 $1,095 $3,285 2 11 950 $1,245 $13,695 3 8 1,225 $1,395 $11,160 4 2 1,475 $1,595 $3,190 24 $31,330 DRAFT ‐ FOR DISCUSSION PURPOSES ONLY 9/12/2019 1 of 3 Gorman & Company Project & Feasibility Summary: Housing Net Operating Income, DCR, Cash Flow, & Operating Expenses Net Operating Income, DCR, Cash Flow Monthly Annual Operating Expenses Annual Per Unit Gross Rental Income $72,403 $868,836 Operating Expenses $354,000 $4,425 Other Income $5,010 $60,120 Real Estate Taxes $84,400 $1,055 Total Gross Income $77,413 $928,956 Subtotal $438,400 $5,480 Less Residential Vacancy 7.0% ($60,819) Replacement Reserves $24,000 $300 Less Other Vacancy 7.0% ($4,208) Total $462,400 $5,780 Effective Gross Income $863,929 Operating Expenses $462,400 Net Operating Income $401,529 Total Annual Hard Debt Service $349,121 Debt Service Coverage (DCR) ‐ Year 1 1.150 Cash Flow $52,408 LIHTC & PERMANENT DEBT DETAIL Tax Credit Equity Annual Owner Total Credit Type Credit Years Pricing % Equity LIHTC $1,225,304 X 10 X $0.890 X 99.99% = $10,904,115 Permanent Debt Information Source Amount Interest Term Amort Annual Pmt First Mortgage $6,270,000 4.35% 15 35 $349,121 AHP $840,000 15 40 Deferred Developer Fee $467,440 DRAFT ‐ FOR DISCUSSION PURPOSES ONLY 9/12/2019 2 of 3 Gorman & Company Project & Feasibility Summary: Housing SOURCES & USES SUMMARY SOURCES FINANCING PER UNIT % First Mortgage $6,270,000 $78,375 33.9% AHP $840,000 $10,500 4.5% Deferred Developer Fee $467,440 $5,843 2.5% LIHTC Equity $10,904,115 $136,301 59.0% Total $18,481,555 $231,019 100.0% USES COST PER UNIT % Acquisition (land + building) $1 $0 0.0% Hard Construction Costs $14,000,052 $175,001 75.8% Soft Costs $4,025,741 $50,322 21.8% Reserves $455,761 $5,697 2.5% Total $18,481,555 $231,019 100% Gap Analysis TOTAL Total Sources of Funds $18,481,555 Total Development Costs $18,481,555 Oversourced / (Undersourced) DRAFT ‐ FOR DISCUSSION PURPOSES ONLY 9/12/2019 3 of 3 Gorman & Company Grocery Component Green Bay, Wisconsin 9/13/2019 Grocery Assumptions Grocery Income & Expenses Total Square Feet 24,000 Commercial Rent Income Per mo. Net Leasable Square Feet 24,000 Commercial Space Rent $0 ‐ NNN ‐ Grocery $240,000 $20,000 Development Cost Assumptions (PSF) Assumed Retail Space $0 ‐ Core & Shell Construction $158 PSF Reserved $0 ‐ Tenant Improvements (TI) $55 PSF TOTAL $240,000 20,000 Soft Costs (25%) $21 PSF Rent (PSF) Commercial Vacancy 0% Other Commercial/Retail Space $0 PSF $0 Grocery NNN ($/SF) $10 PSF Effective Commercial Income $240,000 Sources & Uses Operating Expenses (52,000) Sources Management Fee 0 First Mortgage $3,289,353 Real Estate Taxes (80,000) New Market Tax Credit Equity $850,000 Total Operating Expenses ($132,000) TIF $800,000 Private Equity $683,848 Tenant Reimbursement $132,000 Total Sources $5,623,201 Net Commercial Income $240,000 Uses Core and Shell $3,792,000 Permanent Commercial Debt Tenant Improvements $1,320,000 Lender TBD Soft Costs $511,200 Amount $3,289,353 Other $0 Amortization 30 Reserves $0 Interest Rate 4.50% Land Acquisition $1 Monthly Debt Service $16,667 Total Uses $5,623,201 Annual Debt Service $200,000 DCR 1.200 Financing Gap/Surplus $0 DRAFT ‐ FOR DISCUSSION PURPOSES ONLY 9/12/2019 1 of 2 Gorman & Company Grocery Component Green Bay, Wisconsin 9/13/2019 Grocery 10‐Year Cash Flow Pro Forma Year 1 2 3 4 5 6 7 8 9 10 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Grocery Income ‐ Triple Net (NNN)* $10 $240,000 $240,000 $240,000 $240,000 $240,000 $264,000 $264,000 $264,000 $264,000 $264,000 Less Vacancies 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Effective Gross Income (EGI) $240,000 $240,000 $240,000 $240,000 $240,000 $264,000 $264,000 $264,000 $264,000 $264,000 Operating Expenses 3% ($52,000) ($53,560) ($55,167) ($56,822) ($58,527) ($60,283) ($62,091) ($63,954) ($65,873) ($67,849) Management Fee 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Real Estate Taxes ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($88,000) ($88,000) ($88,000) ($88,000) ($88,000) Total Operating Expenses ($132,000) ($133,560) ($135,167) ($136,822) ($138,527) ($148,283) ($150,091) ($151,954) ($153,873) ($155,849) Grocery Tenant Reimbursement $132,000 $133,560 $135,167 $136,822 $138,527 $148,283 $150,091 $151,954 $153,873 $155,849 Grocery Net Operating Income (NOI) $240,000 $240,000 $240,000 $240,000 $240,000 $264,000 $264,000 $264,000 $264,000 $264,000 First Mortgage Debt Service ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) Other Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total must‐pay debt ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) ($200,000) Debt Coverage Ratio ‐ (DCR) 1.20 1.20 1.20 1.20 1.20 1.32 1.32 1.32 1.32 1.32 Cash Flow $40,000 $40,000 $40,000 $40,000 $40,000 $64,000 $64,000 $64,000 $64,000 $64,000 *Rent is flat in years 1‐5, then increases by 10% in year 6 and held flat until year 10; however, this assumption is subject to lease negotiation with grocer. DRAFT ‐ FOR DISCUSSION PURPOSES ONLY 9/12/2019 2 of 2 5. CAPACITY AND EXPERIENCE PROCESS/TIMELINE Due to �ming of this RFP response, award of the RFP, and City approvals for zoning, we an�cipate the following �meline: Date Task September 13, 2019 RFP Response Submited October 1, 2019 Staﬀ Recommenda�on, Developer Interviews October 8, 2019 RDA Approval Fall/Winter 2019-2020 Finalize Development Agreement, building plans, ﬁnancing partners, commence due diligence December 2019 Submit 2019 WHEDA LIHTC Applica�on April 2020 LIHTC Award Announcement April 2021 Financial Closing and Construc�on Begins July 2022 Construc�on Comple�on February 2023 Lease Up DEVELOPMENT TEAM MAURER’S MARKET is a Wisconsin-based grocery store with loca�ons in Janesville, Wisconsin Dells, and Milwaukee. The family-owned company’s focus is on smaller, full-service grocery stores that meet the unique needs of residents, workers and students, with fresh, nutri�ous and high-quality groceries that are compe��vely priced and geared toward a diverse clientele. Kris�e Maurer serves as Vice President of Maurer’s Market. Kris�e understands that this cri�cal redevelopment can be a viable part of the community and the market study research she has done supports that no�on. The building site needs to be though�ul and the retailer needs to be prepared to take a mul�-step approach to retailing. The grocery store needs to be part of the community, and help solve the food needs of the community. A�er comple�ng her MBA in 2010, Kris�e moved to Madison to work at Fresh Madison Market. At Fresh Madison Market she had many diﬀerent roles and eventually became Store Director for several years. Under her supervision, Fresh Madison Market was involved in a number of community organiza�ons including: Family Business Center, DMI, Gilda’s Club, Boys & Girls Club, March of Dimes and Gio’s Garden. Fresh Madison Market was recently sold and is no longer a part of the Maurer’s Market por�olio. Maurer’s Market currently has three stores in Wisconsin Dells, Janesville and Milwaukee. The Wisconsin Dells and Janesville stores are 25,000 to 35,000 square feet and are posi�oned to be more tradi�onal. The consumer in this market is much more price conscious. The demand for fresh perishable items is high, yet the sensi�vity to price is at a premium. Maurer’s Market has to balance being a fresh food des�na�on as well as keeping the “center store” grocery items as low priced as possible. Kris�e also has extensive experience in owning and managing urban grocery stores. The newly opened Maurer’s Urban Market, located in downtown Milwaukee, as well as her �me at Fresh Madison Market, gives Kris�e the necessary experience in the urban food retailing market. Having a grocery store in a downtown market is diﬀerent than the suburbs or rural areas and a retailer has to be aware of factors like walking, biking, home bound trips, and bus routes. Maurer’s Market is focused always on crea�ng the best experience for the customer and surrounding community. It’s important to have an atmosphere that makes the store easy to shop. At Maurer’s, the “experience” of being in the store is a priority. Independent is best Independent Grocers have long held a strong presence in Wisconsin. At Maurer’s Market, we believe this site needs an independent grocer who is ac�vely involved in the business and community. An engaged owner will be able to easily adapt to the community needs and the constantly changing urban footprint. Each store needs to have its own autonomy and personality. The store in this market would have its own reﬂec�ons of the community and area it represents. This store needs a retailer that is willing to be crea�ve, challenge the preconceived no�ons and represent the community that it supports. MEHMERT STORE SERVICES specializes in architecture and design for supermarkets. The ﬁrm is based out of Pewaukee and will serve as architect for the grocery store component this proposal. NEIGHBORWORKS GREEN BAY (trade name of Neighborhood Housing Services of Green Bay, Inc.) is a nonprofit community development corporation serving the Greater Green Bay Area since 1982. The resident-led nonprofit has helped 3,332 families become homeowners and has built or renovated 406 homes and apartments. The agency has developed LIHTC Projects and is experienced with multiple forms of public and private project financing and related compliance. NeighborWorks Green Bay is an effective partner in addressing housing and community development challenges leveraging modest resources into $441.9 million of investment throughout the Greater Green Bay Area. NeighborWorks Green Bay’s leadership team has decades of construction and finance experience in for-profit and non- profit enterprises. GORMAN & COMPANY, LLC will serve as primary developer for the development. Gorman has been in business since 1984 and brings a fully integrated company that includes development, construction, architectural, and property/asset management experience. In our 35 years in business, Gorman has been awarded tax credits from the Wisconsin Housing and Economic Development Authority (WHEDA) for over 30 affordable housing projects within the state. This experience will be critical in this proposed mixed-use development. Gorman General Contractors, LLC will serve as General Contractor and Gorman & Company will also serve as Master Architect on both components of the development. The company believes that the best way to ensure high quality, sustainable developments is to build our projects with our own construction company and our own architects. With accountability of design, construction, and long term management within the Gorman umbrella, it provides a greater attention to detail and we are better able to support each phase of the development. GORMAN & COMPANY Edward (Ted) Matkom – Wisconsin Market President Ted Matkom has held the role of Wisconsin Market President over the past ten years with Gorman & Company and has also served as General Counsel. Ted has a wealth of experience in developing both residential and commercial real estate developments. Ted served five years on the board of directors for Menomonee Valley Partners, the non-profit development entity designated to revitalize Milwaukee’s Menomonee Valley industrial park. Ted has been President of The Corridor, Inc., a nonprofit organization that has been charged with helping to redevelop the "30th Street Corridor" in the heart of Milwaukee for the past seven years. He has also been appointed for the past five years to the Board of Directors for the Milwaukee Area Workforce Investment Board, Inc. Ted has a Bachelor of Arts in International Relations and Political Science from the University of Wisconsin-Madison, and a Doctorate of Law from Marquette University. During his time with Gorman Ted has directly developed over 1,300 apartments totaling more than $200M. In addition, Ted Matkom has secured more competitive low income housing tax credits in the State of Wisconsin than any other developer over the past seven years. He created the Milwaukee Builds training program with Northcott Neighborhood House that we use with our Northside Housing Initiative Project. As the Wisconsin Market President Ted leads a full team that includes development, design, construction, property management and asset management. He is responsible to a project from inception through the full compliance period. Brian Swanton – President/CEO Brian Swanton serves as President and Chief Execu�ve Oﬃcer for Gorman & Company, having previously served as Gorman & Company’s Arizona Market President. During his tenure as Arizona Market President, Mr. Swanton led a mul�-disciplinary team that developed, designed and constructed RAD redevelopments for both the Maricopa County Housing Authority and the City of Phoenix. Prior to joining Gorman, Mr. Swanton held various leadership posi�ons in the non-proﬁt sector, where he directed the preserva�on and construc�on of over 2,300 units of housing in 29 residen�al communi�es across Arizona and successfully reﬁnanced and/or reposi�oned 1,702 units of exis�ng aﬀordable housing. Mr. Swanton also spent eight years of his career in the public sector, having served as the Housing Development Manager for the City of Scotsdale, as well as other posi�ons in housing and community development with the City of Glendale, AZ, the Arizona Department of Housing, and the City of Quincy, MA. Mr. Swanton holds a Master of Public Administra�on and a Bachelor of Science in Urban Planning, both from Arizona State University where he has taught graduate and undergraduate courses in housing ﬁnance and neighborhood revitaliza�on. Brian is also cer�ﬁed as a Housing Development Finance Professional by the Na�onal Development Council. Brian is the past Chairman of the Board of Directors for the Arizona Housing Alliance, Arizona’s only statewide aﬀordable housing advocacy organiza�on, guiding that organiza�on through a merger with the Arizona Coali�on to End Homelessness in 2017. Brian con�nues to serve on the Board of the newly merged organiza�on, the Arizona Housing Coali�on. Tom Capp – Chief Strategy Oﬃcer Tom Capp has directed Gorman & Company's real estate development since 1994. Tom has led Gorman & Company’s focus on PHA Partnerships and championed RAD as a primary tool. Under his direc�on, the company has focused on urban revitaliza�on, mixed-income housing, historic preserva�on and the preserva�on of aﬀordable housing. Prior to joining Gorman & Company, Mr. Capp was a Senior Associate at Camiros, Inc., an urban planning ﬁrm based in Chicago. Mr. Capp is a former public oﬃcial having served as mayor of Fitchburg, Wisconsin, where he also served as chairman of the city's Planning Commission and chairman of its Economic Development Commission. As execu�ve assistant to Dane County Execu�ve Rick Phelps from 1993-1994, he directed land use and development policy for Dane County (Madison, Wisconsin and surrounding areas). Mr. Capp has a degree in Economics and Poli�cal Science from the University of Illinois at Champaign- Urbana. Tom has served on many industry boards and commissions. He currently serves on the Board of Directors of the Na�onal Housing and Rehabilita�on Associa�on. In 2007 he was appointed by the White House as a Panel Expert for the Preserve America Summit, an ini�a�ve created by execu�ve order to modernize our na�on’s approaches to historic preserva�on. He is a frequent speaker and presenter at conferences sponsored by state housing authori�es, planning associa�ons, and housing industry groups such as NCSHA, NH&RA, and IPED. Ron Swiggum – Director of Construc�on Ron has over 20 years of experience in project management, encompassing cross-func�onal projects, price/cost management, budgetary and compe��ve es�ma�ng, coordina�on of design professionals, space planning, life cycle cos�ng, contract administra�on, development and training of personnel, strategic business planning, risk management, proformas, staﬀ leadership, P&L oversight, and customer rela�ons. Ron recently directed construc�on for the largest “Green Communi�es” Public Housing Authority development to date east of the Mississippi River and is currently overseeing construc�on GC for an innova�ve “workforce housing” development in Monroe County, Florida (Florida Keys). Ron also served as Construc�on Project Manager for award winning Gorman & Company aﬀordable housing development in Glendale, AZ. Ron has led the construc�on eﬀorts and compliance for all of our past work with Housing Authori�es around the country. Nicole Solheim – Director of Development Nicole Solheim serves as Director of Development for Gorman & Company in the Wisconsin Market. Ms. Solheim works with the WI Market President to iden�fy poten�al projects, secure funding and en�tlements, coordinate real estate closings, and track projects from incep�on through comple�on. Previous to her employment with Gorman & Company, Ms. Solheim worked for a commercial real estate development ﬁrm and for an economic development nonproﬁt organiza�on in Madison, Wisconsin. Ms. Solheim has a BBA in Real Estate and Urban Land Economics and a Master’s Degree in Urban and Regional Planning from the University of Wisconsin-Madison. Jin Park-Higbee – Development Coordinator Jin Park-Higbee serves as Development Coordinator for Gorman & Company in the Illinois and Wisconsin Markets. Previous to her employment with Gorman & Company, Ms. Park-Higbee worked for a regional economic development organiza�on in Madison, Wisconsin. Ms. Park-Higbee has a BA in Interna�onal Rela�ons from Boston University, and a Master’s Degree in Urban Planning. Duane Buscher – Financial Analyst Duane Buscher serves as Financial Analyst for Gorman & Company, focusing primarily on underwri�ng Low-Income Housing Tax Credit projects. Mr. Buscher works closely with the Market Presidents and Construc�on Accoun�ng team at all stages of the development process to evaluate project feasibility and conduct proforma analysis. Mr. Buscher joined the team at Gorman & Company in September 2014, having most recently worked in a similar role as an Underwriter for the Missouri Housing Development Commission. Mr. Buscher has a BA in Psychology and a Master’s Degree in Urban Planning from the University of Kansas. FINANCIAL CAPACITY While Gorman & Company has earned a na�onal reputa�on as an innova�ve developer, perhaps our greatest value in a partnership comes from our ﬁnancial acumen, ﬁnancial strength, and our unique access to the capital markets. Gorman & Company typically serves as the sole guarantor in all of our development partnerships. While we are open to diﬀerent models and approaches, we are perfectly willing and able to oﬀer our full guarantee for any project we undertake. Gorman & Company closely monitors its net worth and liquidity to ensure that we meet all ﬁnancial performance benchmarks of our lenders and investors. Our ﬁnancials have been reviewed and approved by nearly all of the largest lenders and investors across the United States, including, but not limited to, BMO Harris, US Bank, Ci�Bank, Associated Bank, and Chase Bank. LEASING AND MANAGEMENT EXPERIENCE Gorman & Company’s property management division has earned high marks from local communi�es and state agencies for its professional criteria in resident selec�on, as well as its capacity to work with complicated compliance issues. In Wisconsin alone, Gorman manages over 30 LIHTC proper�es encompassing over 2,400 units. Controlling our management company within the Gorman & Company umbrella allows us to customize our tenant selec�on criteria to our speciﬁc target popula�on while conforming to investor and Sec�on 42 compliance regula�ons. It is par�cularly valuable to have our property management team involved in development of a property from the very beginning. They oﬀer insight on design and programming which helps to ensure the development operates eﬃciently for the long-term. Laura Narduzzi | Vice President of Opera�ons Laura received her degree in Hotel and Restaurant Management from the University of Wisconsin – Stout in 1989. She began her hotel career with The North Central Group, a hotel management and development company. She held various posi�ons in her 20-year tenure with that company including the Vice President of Opera�ons. In that role, she was responsible for a $90 million highly reputable hotel por�olio of Hilton and Marriot brands, which received several brand awards. She joined Gorman & Company in 2009 and now is the Director of Property Management. Laura directly oversees the opera�ons of Gorman & Company’s management division as well as supervises several corporate func�ons including Human Resources, Facili�es, Marke�ng, Training and Compliance. She works closely with the third party management companies insuring Gorman & Company’s standards are synonymous across all markets. Laura works closely with Development, Design and Construc�on in the development process to ensure strong viability and long-term sustainability. Dan Clark | Director of Property Management Dan Clark is responsible for Gorman’s management division. His primary focuses is on mee�ng opera�onal objec�ves to drive posi�ve business results of mul�family and commercial real estate within the company’s por�olio. In his role, working with external and internal partners, his responsibili�es include mul�-state oversight of in-house and third party management companies, ﬁnancial/ capital planning, and market strategies. Mr. Clark joined Gorman & Company in 2017, previously serving as Senior Regional Por�olio Manager at The ConAm Group of Companies where he was responsible for Southern California’s regional opera�ons and investment performance of aﬀordable and market-rate housing developments. He brings over 25 years of real estate asset management, property management and facili�es management experience on high density, mixed use and urban inﬁll projects. Kyle Culota| Director of Asset Management Kyle joined Gorman & Company in 2018 as the Director of Asset Management. In his role he is responsible for developing and maintaining strategic asset management, ﬁnancial management and risk management ac�vi�es for the company’s por�olio. In his role, he oversees por�olio performance, stakeholder repor�ng, and insurance administra�on. Working with external and internal partners, his responsibili�es include mul�-state oversight of third party management companies, capital planning, and reﬁnancing/disposi�on of assets. Prior to joining Gorman, Mr. Culota most recently worked at WHEDA, where he was responsible for overseeing the Authority’s Tax Exempt Bond Por�olio. He has over 10 years of experience in asset management, valua�on, development, acquisi�on/disposi�on and the aggrega�on and deployment of capital for high density mul�family, oﬃce, hotel and retail proper�es. Mr. Culota received his bachelor’s degree in Economics as well as his MBA with an emphasis in Commercial Real Estate Finance from the University of Colorado’s Leeds School of Business PROJECT EXAMPLES MAURER’S MARKET - WISCONSIN DELLS & JANESVILLE, WI Maurer’s Market opened a 20,000 SF store in 2016 in Wisconsin Dells, and in 2018 opened a new 28,000 SF loca�on in Janesville, in a former Sentry. Both loca�ons focus on catering to the local community’s needs and providing fresh, aﬀordable, products. MAURER’S URBAN MARKET - 777 N. VAN BUREN STREET MILWAUKEE, WI Maurer's Urban Market is a full-service supermarket emphasizing fresh, responsibly sourced products and serving residents, workers and businesses in downtown’s East Town neighborhood. It is located on the ground floor of Northwestern Mutual’s new 7SEVENTY7 apartment tower. The 10,500-square-foot supermarket, offers a full grocery selection, with the freshest produce, a wide selection of meats and seafood, an in-house bakery, a fresh deli and sushi bar, a large dairy and cheese assortment, frozen foods and other snacks and staples. Urban Market also features chef-prepared meals, including grab-and-go and ready-to-heat options. The store has in-store and outside patio seating, plentiful and convenient free parking, catering services and online ordering for pick-up and delivery. PROJECT EXAMPLES Developments closed by Gorman & Company from 2016-2018 in Wisconsin. For a review of our full por�olio please visit www.gormanusa.com. CARBON AT UNION CORNERS Address: 2418 & 2518 Winnebago St, Madison WI Type: 4-story new construc�on; Mixed-use; Family Unit Mix: 90 units: 76 aﬀordable, 14 market rate LIHTC: 2015 WHEDA 9% Award - $850,000 credit Construc�on Start: April 2016 Comple�on: Sept 2017 Carbon at Union Corners is an integral part of22 the overall Union Corners master development. Other phases on the site include a UW Health clinic, neighborhood retail, intergenera�onal housing targeted to grandfamilies, and market rate apartments. The 90-unit development is part of a mixed-use residen�al and neighborhood retail complex that includes two buildings connected by a pedestrian plaza, 19,000 SF of ground ﬂoor retail space, 76 aﬀordable and 14 market-rate units, and 93 underground parking stalls. First ﬂoor tenants include a brewpub and oﬃce user. Ameni�es at Carbon include a community room, ﬁtness room, on-site management, and a mee�ng room for neighborhood groups/mee�ngs. The master development planning and design process for Union Corners has included signiﬁcant input from the community, neighborhood associa�ons, and stakeholders. A large pedestrian plaza extends through the en�re site, designed for neighborhood gatherings, farmers markets, and pedestrian connec�vity. Several bike paths weave through the site and connect to Madison’s bicycle network. City of Green Bay RFP – 200 Block N. Monroe Avenue ELEVEN41 MAIN Address: 1141 W. Main St, Sun Prairie Type: New construc�on; family Unit Mix: 64 units, 55 aﬀordable (30-60% AMI), 9 market rate (21) One-BR, (31) Two-BR, (12) Three-BR LIHTC: 2018 WHEDA 9% Award - $804,454 credit Construc�on Start: Jan 2019 Comple�on: April 2020 Eleven41 Main is a new construction development consisting of a mix of affordable and market-rate units for families. The project will include 64 units total within a three- and four-story building. Amenities include underground parking, community room, and fitness center. The development is located within the Main Street Corridor of Sun Prairie, a community that has historically been one of the fastest growing communities in Dane County and the state. Sun Prairie has a strong record of economic development and growth, leading to increased demand for quality workforce housing for employees. Eleven41 Main is a partnership with the Dane County Housing Authority, who is a Co- Developer. The project includes units targeted to Veterans and residents with disabilities. City of Green Bay RFP – 200 Block N. Monroe Avenue GENERATIONS AT UNION CORNERS Address: 2507 Winnebago St, Madison WI Type: 3-story new construc�on; family and senior Unit Mix: 60 units: 56 aﬀordable, 4 market rate (37) Two-BR, (23) Three-BR LIHTC: 2017 & 2018 WHEDA 9% Award - $891,863 credit Construc�on Start: Sept 2018 Comple�on: Dec 2019 Generations at Union Corners is a new construction development consisting of a mix of affordable and market-rate units for families. Specifically, this development will target grandfamilies (grandparents raising grandchildren) and kinship families (family members raising other family members’ children). The project will include 60 units total between two buildings, both three stories in height. The buildings will have access to underground parking with apartments above as well as a community room, supportive service office and programming space, and fitness center. Outdoor space will include a large pedestrian plaza, playground, open green space, and community gardens. The project is the third phase on the Union Corners site; previous phases include the UW Health Clinic and Carbon, a 90-unit, multi- family, mixed-income development. Genera�ons at UC features a partnership with Lutheran Social Services (LSS) to provide on-site suppor�ve services. LSS also has an ownership interest in the development and is a long-term stakeholder. Space on the ﬁrst ﬂoor has been designed to accommodate their oﬃce and services on- site. Gorman and LSS are working with Dane County Kinship Care, among other service groups, to lease units to kinship families in the community. City of Green Bay RFP – 200 Block N. Monroe Avenue VALOR ON WASHINGTON Address: 1326 E. Washington Avenue, Madison, WI Type: Mul�-story new construc�on; veterans and family Unit Mix: 59 units: 50 aﬀordable, 9 market rate (35) Two-BR, (24) Three-BR LIHTC: 2019 WHEDA 9% Award - $1,023,714 Credit Construc�on Start: December 2019 Comple�on: Summer 2021 Valor on Washington project is a new construc�on development consis�ng of a mix of aﬀordable and market-rate units for families. Speciﬁcally, this development will target veteran families and includes a partnership with Dryhootch to provide Veteran services. Dryhootch is a nonproﬁt organiza�on, formed with the mission of crea�ng safe, comfortable places where Veterans can gather informally in a drug- and alcohol-free environment. Dryhootch will be located on the ﬁrst ﬂoor and will provide a variety of veteran services and support on-site for both residents and non-residents at Valor on Washington. Valor is located on an urban inﬁll site in downtown Madison and is in close proximity to schools, parks, grocery store, and bus service. Valor received a 2019 WHEDA 9% tax credit award and has secured gap ﬁnancing from Dane County, City of Madison, FHLB AHP, and the Dane Co Housing Authority. City of Green Bay RFP – 200 Block N. Monroe Avenue WASHINGTON PARK TOWNHOMES Address: 1542 N. 32nd Street, Milwaukee, WI Type: New construc�on townhomes; family Unit Mix: 40 units; (26) Two-BR, (14) Three-BR LIHTC: 2016 WHEDA 9% Award - $515,502 Credit Construc�on Start: October 2017 Comple�on: October 2018 Washington Park Townhomes (WPTH) represents an additional development in Gorman & Company, Inc.'s “Northside Housing Initiative”, which has proven to help stabilize and revitalize housing stock and neighborhoods on Milwaukee's Northside. WPTH will include 40 newly-constructed two- and three- bedroom townhome units with a centrally located community center on the site. WPTH will be a catalyst to the neighborhoods around the 30th Street Corridor. The site is within a priority investment area as designated by the City of Milwaukee and has also been a targeted investment area through the Transform Milwaukee Initiative by the State of Wisconsin. The WPTH project is a key component of the Washington Park Comprehensive Plan, Strong Neighborhood Investment Plan, and Transform Milwaukee. This project is clearly an integral part of an overall redevelopment strategy for the surrounding community. Amenities include a community room, leasing office, and green space. City of Green Bay RFP – 200 Block N. Monroe Avenue ADAMS STREET PARKING LOT 200 BLOCK N. MONROE AVENUE SEPTEMBER 13, 2019 September 13, 2019 City of Green Bay, Attn: Ken Rovinski Dept. of Community & Economic Development 100 N. Jefferson St. Room 608 Green Bay, WI 54301 Dear Selection Committee; T. Wall Enterprises, Mgt. LLC is pleased to provide the following response to your RFP for the 200 Block North Monroe Avenue parking lot to provide a high-quality, multi-family development. We understand the City of Green Bay desires a successful development that will create an appealing transition between Downtown and the Whitney Park and Navarino neighborhoods. We plan to achieve this by building two and three-story owner-occupied zero-lot line townhomes that will step down from three stories on N. Monroe St. to two stories on N. Quincy St. We believe that through our proposal we can provide a development that will generate economic growth in the near-Downtown area and bring in millions of dollars in disposable income that will help support existing and new retail and restaurants. This development will improve an underutilized piece of property in the near-Downtown and add additional vibrancy to the Whitney Park and Navarino neighborhoods. CONCEPT SUMMARY As you can see in the attached conceptual plans, we are proposing 33 owner-occupied zero-lot line townhomes (with the exact townhome count depending on the final layout) and 108 parking stalls provided via covered garage and surface level lot stalls. We are proposing a 3.2:1 parking stall / townhome ratio, which we feel is more than adequate, and feel that the urban setting of this site will lend itself to alternative forms of transportation too. There may come a time where some of the stalls can be used by visitors and guests. T. Wall Enterprises As part of this proposal, we will request 100% TIF increment and free land. This development, as proposed, could take two years to fully sell. Therefore, we’d request an agreement with the City to assess the property and physical real estate improvements and land, while under construction and during stabilization, at $1.00 until the townhomes are 95% sold. This agreement would give us the ability to apply the tax savings to the property’s operations and sales expenses during stabilization. We believe with confidence that our concept works and that this new product will result in lower price-points for those seeking real estate ownership. Sincerely, T. WALL ENTERPRISES, LLC Terrence R. Wall, President & CEO Office Address: 1818 Parmenter Street, Middleton, WI 53562 Mailing Address: P.O. Box 620037, Middleton, WI 53562 Direct: 608-444-5552 Authorized Agent: Terrence R. Wall, President Email: terrence@twallenterprises.com Website: twallenterprises.com T. Wall Enterprises COMPANY PROFILE With 35 years of experience, T.Wall would be responsible for the overall development of this project, including: overseeing project financing, equity, planning, architecture, engineering, construction, delivery and turnover, and property management. T.Wall Enterprises is a Wisconsin-based real estate development company specializing in multi-family and commercial development. HISTORY Terrence R. Wall began developing in 1989 (and real estate analysis, leasing, and marketing since 1979). The T. Wall team has developed over 1,200 multi-family units, five retail centers, 45 office buildings and an industrial park. Specifically, the T. Wall team developed retail centers included a Target, Verizon, Bed Bath & Beyond, and Ashley Furniture stores. T. Wall also has developed the largest office portfolio in the state, at 3.5 million square feet. T. Wall Enterprises ALIGNMENT WITH STRATEGY We understand the importance of developing communities that are visually appealing and desirable as a lifestyle decision since our buildings will become the resident’s home. We also believe in developing these communities in an environmentally sustainable and sensitive manner. We understand and have demonstrated our commitment with CityDeck Landing, that the City of Green Bay is looking for a developer who will create a new residential community that aligns with the greater downtown community and economic development strategy. SAFE T. Wall Enterprises Mgt. LLC has a history of strong compliance with all codes and regulations. We always implement strong security measures, including security cameras on the exterior and interior of the building and parking garage, secured fob access at pedestrian and garage entrances, well-lit parking garage and building corridors and common area, as well as well-lit building exteriors provide additional safety measures. PRODUCTIVE Environmental Sustainability T. Wall is a leader in environmentally sustainable development and the only developer to win the Governor’s Award for Energy Efficiency as well as Friend of the Environment Award. Terrence Wall founded and taught the first sustainable development university level course in the country at the University of Wisconsin – Madison. T. Wall partners with Focus on Energy to have an ‘Energy Usage Analysis’ completed at each of our properties. We incorporate energy efficient fixtures and appliances, such as low flow lavatories and faucets and LED lighting and motion detection systems which are more efficient than those required by code to further reduce our ‘footprint’. The exterior of the buildings we develop will be covered primarily with a combination of stone, bricks, smart-sidings T. Wall Enterprises and/or HardiPlank, all of which are long-lasting sustainable materials. ACCESSIBLE If selected to re-develop this underutilized site in the City’s near- downtown, our proposed redevelopment would transform this property into the highest and best use; providing varying price levels for community members at different stages in their lives, high quality amenities which promote social interaction for the use of the residents, and close proximity to the City’s downtown retail and restaurants which would be easily accessible by foot or bike. INNOVATIVE Renewable Energy We have contracted with SunPeak to complete four solar installations on four of our established multi-family properties for a total of 1,624 solar panels. T. Wall has put in place more solar capacity than any other multi-family developer in the state of Wisconsin. These solar installations mark a milestone for renewable energy in Wisconsin. Utilizing renewable energy through the incorporation of solar arrays at new and existing properties is yet another way T. Wall continues to be a leader in environmentally sustainable development. T. Wall Enterprises DESIGN & USE - Four separate 2-3 story buildings - 33 owner-occupied, zero lot-line townhomes - 108 parking stalls (covered and uncovered at grade) - Pool and grilling area OCCUPANCY We’ve had dozens of people call us over the last two years in regard to condo availability, i.e. the ability to have ownership without the hassle of maintenance and yard work. So, there is a lot of demand for exactly the owner-occupied zero lot-line unit we are proposing. The key factors are owner occupied in a downtown location. Zero lot-line townhomes offer the ability of ownership without the hassle of yard work and maintenance (taken care of through a homeowner’s association). Zero lot-line townhomes will allow buyers to avoid the difficult-to-navigate condominium financing regulations currently put in place by the federal government and townhomes are offered at a much more affordable price than a regular home. ARCHITECTURAL CHARACTER We believe that we can turn this parking lot into a beautiful owner- occupied housing development and create pedestrian connectivity and improve the pedestrian experience by incorporating walk-up units. Our buildings are designed and built to last, and should last, at least one hundred years. We believe that walk-up units are critical to the design for a downtown property. We want to make access as convenient as possible so our residents may easily walk out of their homes to grab coffee or dinner at local downtown businesses. These walk-up units add an important element of pedestrian connectivity to the sidewalk and street and allow more natural interaction between the building and the pedestrian experience at street level. The scope of work, preliminary site plan, building footprint exhibits as T. Wall Enterprises well as parking and circulation exhibits are attached. These were carefully designed by JLA Architects as led by Architect Joe Lee, an experienced multi-family architect. Massing diagrams are also included. The beautifully landscaped interior courtyard would include outdoor seating, maybe a lounge pool (if there is room), grilling areas, fire pit, and other amenities. See the Veritas Village courtyard as an example. This will be the place people want to live so they can simply walk out their door to enjoy all the downtown events Green Bay has to offer. Articulation: Our proposed redevelopment for this site would provide an appropriate transition between Downtown and the Whitney Park and Navarino neighborhoods. We plan to achieve this by building 2 and 3-story owner-occupied zero-lot line townhomes that will step down from 3 stories on N. Monroe St. to 2 stories on N. Quincy St. We are committed to a quality design using quality materials and appropriate detailing. The exteriors facing the public streets will be comprised of mostly brick and some accent stone, the interior facades facing the courtyards will be comprised of a combination of HardiPlank, brick and/or some stone or block. Building Materials: Our development will be designed and built to last because we use all sustainable materials that will last a hundred years or more. On the exterior we will feature some brick and stone accented with fiber cement board, as compared to other developers who may use smart siding, vinyl, or aluminum siding. We also like to avoid using metal panels because those don’t fit in with downtown and they tend to become dented and discolored over time. Most importantly, we never use EIFS or stucco, which will streak, become discolored and will also crack and bubble within five years. All materials we use will last virtually indefinitely. The roof will be a flat roof since that is the style of most downtown buildings, and a flat roof will enable us to install solar panels as well. Color: Will vary by facade and reflect the existing and desired context of the surrounding neighborhood. See our Middleton Center photos on our website. Likewise, look at CityDeck Landing and how the colors of the materials, in particular the brick, mimics or reflects other buildings in downtown. T. Wall Enterprises Fenestration: The arrangement of the windows and doors will vary, just like other buildings and storefronts in downtown vary. There will be no exterior reflective glass, which is particularly important for the retail storefronts; customers need to see inside to be attracted inside. The exterior will be mostly brick and stone as mentioned above, but the window and door treatments on the first floor will vary, while there will be similarity above, the mullions will be appropriate for downtown. Modulation: The overall building massing will be broken down into parts by: • Undulating the building profile with varying parapet heights; • Using architectural elements (balconies, punched openings, storefront arcades, etc.); • Establishing a palette of building material (brick, cast stone accents, composite panel, etc.) that will blend with the downtown’s traditional aesthetic. Overall, the goal is to both use the principles of composition in order to create a unique result that recognizes its context. Height: The townhome buildings will be two and three-stories in height. The height of the floors will typically be 11 feet, which is one foot higher than all other developers. We insist that the interior have that extra one foot of height to give a feeling of home, with wide hallways (six feet) and other condominium-like qualities. PARKING We will provide enough parking spaces to provide a 3.2:1 parking ratio for our tenants. When evaluating parking it is critically important to understand that providing just enough parking; not too little nor too much, is key to success. Too much parking stresses the financials of the project with too much cost and creates a lack of demand, whereas just the right amount means that the residents are anxious to lease the parking rather than take a chance that they won’t get a space. T. Wall Enterprises PUBLIC ART Unlike most developers, we are well known for purchasing and displaying art throughout the interior and exterior of our developments. We have purchased and display sculptures as well, so we support the idea of art at the property as required. T. Wall Enterprises INVESTMENT First, this development would require TIF. As we anticipated with the development of CityDeck Landing, there is a significant gap in the value versus the high construction costs in the marketplace versus rents needed to support a new development downtown, which has a significant number of unique challenges not found in a green field site. These challenges can include the need for: road shoring, removal of old foundations, de-watering, and building a ‘bathtub’ to prevent groundwater from flooding the site (both while under construction as well as during on- going operations). We also need to anticipate the following: the chances of finding buried structures and/or debris, just-in-time delivery of materials, off-site storage for materials, off-site parking for construction workers, and dozens of other unique challenges downtown projects present. Other developers are not used to these challenges and don’t plan for them. We witnessed that with the construction of the Metreau apartment building downtown when their site flooded with water. These challenges require TIF to help offset those additional extraordinary costs. Second, this market rent gap creates a problem with obtaining high enough appraised values for the intended development. Without high enough appraised values, there won’t be any construction loan, that’s why TIF is required. But understanding this appraised value issue is critically important as it is the key to everything. Unlike other developers, we were able to overcome this challenge at CityDeck Landing, and more importantly, we have the values at CityDeck Landing that we can disclose to the appraiser. Most other developers would not have this information, allowing us to once again overcome this challenge. The other important aspect to understand is that when a developer who is not experienced in developing downtown has difficulty, they frequently panic and discount their rents or selling prices. This panic of discounting undermines refinancing valuations (appraisals) and making new development a greater challenge because the appraisers will use the discounted rents or prices in T. Wall Enterprises their appraisals. This discounting also then erodes the values for the TID and the city assessments for all of downtown. Therefore, it’s so important that any TIF agreement prohibit the developer from discounting. Third, we also have been successful at securing more grants from the state for cleaning up brownfield sites than any other developer. We will pursue another grant from WEDC for this site. The overall investment in this site will also require the developer to have enough equity (we have over 600 equity investors who partner with us) and the ability to secure a large loan. Also, we’re currently in the unique situation of being able to buy-out our investor group in one of our Middleton, Wisconsin Developments. This means a large pool of our investors and capital will be available for re- investment into this new development. At CityDeck Landing we ran into a roadblock with local bank lenders, who were biased against the downtown and against the idea that we could obtain higher- than-market rents for a new development, which we did. Any lender for this new development, given its larger size and phasing, will require experience in development in downtowns and in downtown Green Bay in particular. In the case of CityDeck Landing, we were forced to go outside Green Bay to secure a lender. Fortunately, we have a large stable of lenders for the proposed development, with over a dozen lender choices and we have strong relationships with. As one lender put it, we are one of their top five customers. Assuming roughly 33 townhomes, the overall investment in this new development may exceed $8 million depending on the number of townhomes that we can obtain approval for from the city. T. Wall Enterprises CAPACITY This development will be built in back-to-back “rolling” phases, with approvals between now and spring 2020 with construction starting in either the spring or fall of 2020 and finally opening in the spring of 2022. The precise timing is dependent upon the city delivering on the approvals in time. We only work on three to five developments per year, and this would be one of those and would be considered a top priority development for us. One reason this would be a top priority is that presently at City Deck Landing we are forced to use an outside management company for on-site leasing and property management and maintenance (although all marketing, rent collections, accounting and other activities are conducted from our home office). With this new development, we would have the ability to hire a full-time property manager and later an assistant property manager as the last phases are completed. We would also hire a full-time shared maintenance person on site. It is very important to have on-site management for a property of this size, the townhomes will have shared management and maintenance that company will provide. with that management being directly managed by and overseen by the owner. Third party management always skimps in order to make a profit, whereas the owner-manager can invest the time and effort needed to provide top quality service for our high-end residents. Included in this proposal is our company overview including our team’s qualifications. We have developed over half a billion dollars in various properties, as well as the largest office portfolio in Wisconsin. Having retail experience is also critically important, having developed five retail centers with hundreds of retail tenants. Our philosophy is to stay lean and efficient, keeping bureaucracy out of our organization, with our top managers working closely on just a handful of developments at a time in order to provide outstanding customer service. T. Wall has developed and owned thousands of multi-family apartments over the last two decades. With his successful development experience in the greater Madison area, Middleton, T. Wall Enterprises Verona, and Green Bay, as well as our commitment to high-quality results, T. Wall is a partner who stays committed and has a proven track record of working with others to achieve a common goal. More importantly, T. Wall, his construction/owner’s representative, and his Development Manager all have family in Green Bay and are in the city on a regular basis. We’re not some out of town firm that won’t come back after the building is open. At CityDeck Landing, Terrence Wall always stops in and inspects the property each time he is staying in town as his home in Howard (Helen Wall grew up in Green Bay). The engineering firm we use is Vierbicher Associates and the architect is Joe Lee of JLA Architects, both of whom really understand what the client wants and work collaboratively to exceed the project’s goals. Lee is not out to win an award; he believes in having his designs fit in appropriately with their surroundings and providing the exact right floor plans and amenities as discussed with the developer. We have also been chosen as the development partner for several banks, the City of Middleton, the City of Madison (and that’s not easy!), along with receiving recognition from area organizations, alders, and from a prior Governor for our green initiatives. We are a proven and established development firm, with a proven track record of the largest and tallest buildings in greater Madison (east and west) including buildings ranging from in height from six to 11 stories. With the T.Wall team you won’t have a rookie on the job. And best of all, when all other developers shied away from towns smaller than Madison or Milwaukee, we made a specific commitment to build in smaller communities that need more housing but couldn’t overcome the challenges. With political risk on the line, it’s always better to go with a developer that has a proven track record in downtown Green Bay and has a strong personal interest in making sure that Green Bay and downtown remain a successful place to live, work, shop and play. T. Wall Enterprises PROJECT TEAM 1818 Parmenter Street Middleton, WI 53562 608-826-4000 terrence@twallenterprises.com www.twallenterprises.com 2418 Crossroads Drive, Suite 2300 Madison, WI 53718 608-241-9500 jlee@jla-ap.com www.jla-ap.com 999 Fourier Drive Suite 201 Madison, WI 53717 608-826-0532 www.Vierbicher.com T. Wall Enterprises PROJECT TEAM TERRENCE WALL CEO & PRESIDENT Terrence@TWallEnterprises.com P: 608.345.0701 Terrence has been involved with real estate analysis, leasing and marketing since 1979. He began developing in 1989. He has developed in a wide range of markets including: • Over 500 multi-family units Education • Five retail centers (including Target, Verizon, Bed Bath & BA in Economics Beyond, Michael’s Craft, Ashley Furniture, American TV, and UW-Madison many more) • A 160-acre industrial park with multiple buildings Masters in Real Estate Appraisal and Investment Analysis • Largest portfolio of office buildings in the state of Wisconsin UW-Madison with over 45 office buildings at 3.5 million square feet of space Completed coursework at: • Planned and developed five major mixed-use centers that Harvard University Executive included office space, hotels, retail, and residential Education Program, Loyola • Presently developing a master planned community which University, and Kellogg School includes seven neighborhoods and a town center, known as of Management (Chicago) The Community of Bishops Bay, in Middleton, Wisconsin Philanthropy • Terrence Wall has previously raised donations for and developed the Dane County Children’s Zoo Carousel Building, Boy Scout’s Glacier’s Edge Council Office and Store and the John Wall Family Pavilion at Tenney Park. • He has also been a major donor to Edgewood High School, American Family Children’s Hospital, James A. Graaskamp Real Estate Center, Congress Park, High Crossing Park, Madison Central Library, Madison Children’s Museum, Middleton’s Soccer Field, Asset Builders of America, and Domestic Abuse Intervention Services. T. Wall Enterprises PROJECT TEAM JON HEPNER Jon Hepner is a Development Manager performing project cost & feasibility modeling, development due diligence, and site planning. Jon coordinates and leads projects through entitlement approvals, financing, and beginning of construction while maintaining productive relationships with property owners, alders, and other members of municipal governments. Jon earned his BBA from Edgewood College where he double majored in Business Management and Business Marketing. During his collegiate career Jon gained substantial professional working experience interning with a residential mortgage broker, the United Way of Dane County, and at the Wisconsin State Capitol for the Governor. ERICA KOCH Erica Koch is the Director of Operations & Property Management for all multi-family communities. She has spent the last 20 years in the multi- family housing industry in Wisconsin with various roles and responsibilities including managing all aspects of the company’s operations, customers and properties. Erica earned her BBA at the University of Wisconsin-Whitewater with a major in Marketing. She is also a licensed real estate salesperson in Wisconsin. T. Wall Enterprises PROJECT TEAM SCOTT TEBON Scott Tebon is the Director of Construction responsible for management and coordination of construction activities within the portfolio. He has over 20 years experience in the construction industry and has overseen in excess of $200 million of projects encompassing over 2 million square feet of space and managed build-outs for over 250 commercial customers. Scott earned his BBA at the University of Wisconsin-Whitewater with majors in Economics and Finance with a Real Estate emphasis. TAYLOR BRENGEL Taylor Brengel joined T. Wall Enterprises in 2012. As general counsel, Taylor oversees the company’s legal activities, including real estate negotiation and purchases, development financing, project entitlement coordination, landlord tenant issues and commercial lease negotiation, lender relations, entity organizational structuring and corporate governance. Taylor earned his Juris Doctorate from Marquette University Law School and his Bachelor of Arts from Lawrence University. His prior experiences include working for the in-house legal department of a Fortune 100 company and working for the Honorable John Coffey of the U.S. Seventh Circuit Court of Appeals. T. Wall Enterprises PROJECT TEAM COMPANY OVERVIEW With offices in Madison and Milwaukee, JLA Architects provides a full range of planning & architectural services for various project types. With a focus on providing creative, real-world solutions to meet project goals they maintain client satisfaction as their highest priority. Founded in 2007 by Joseph Lee, JLA believes the firm’s success is dependent on the happiness of their clients and their success of each completed project. KEY TEAM MEMBERS JOSEPH LEE | President / Principal Joe’s role on this project will be to serve as general oversight throughout all phases of the project. Joe will collaborate on design concepts & lend his experience throughout the entitlement process. As the project progresses, Joe will maintain involvement & assist the project team as needed. He will help to ensure that the process is smooth & enjoyable. Throughout the process Joe will be a visible & ‘reachable’ member of the JLA Team. JOHN SCHMIED | Project Manager John would serve project manager. He has worked with T. Wall for several years as a project manager on several of their developments. He will be responsible for the daily management & coordination of the project throughout the entire process. He will be intimately involved at all phases ensuring consistency & continuity throughout the project & will serve as the primary daily contact for the development team, consultants & contractor. T. Wall Enterprises PROJECT TEAM JOSEPH LEE FOUNDER & PRESIDENT JLee@JLA-AP.com C: 608.215.1495 EDUCATION Joe is a Madison native and graduated with both a Masters of Architecture and a Masters of Urban Planning from the University of Masters of Architecture Wisconsin–Milwaukee (UWM). During his schooling and after UW-Milwaukee, May 1998 graduation, Joe resided in Milwaukee for 13 years, working in both Masters of Urban Planning the public and private sectors. UW-Milwaukee, May 1998 Prior to founding JLA Architects & Planners in February 2007, Joe was an associate at Eppstein Uhen Architects in Milwaukee where Bachelor of Science he was a lead designer on multi-family, mixed-use, & retail projects. Architectural Studies UW-Milwaukee, May 1995 Joe’s background in both architecture and urban planning has allowed him to develop a unique blend of skills & market knowledge Project Manager Bootcamp that brings distinct value to JLA clients. PSMJ, 2006 As the Owner and Managing Principal of JLA Architects, his main Strategies for the Construction goal is client satisfaction. He is involved at every phase of the process Administrator and truly believes that listening and collaborating with clients at UW-Extension Course, 2005 every step ensures a successful project. PROFESSIONAL AFFILIATIONS RELATED PROJECT EXPERIENCE Licensed Architect 22 Slate Apartments Madison, Wis. Wisconsin, 2003–present Yahara Commons (mixed-use development) Monona, Wis. American Institute Park & Drake (mixed-use development) Madison, Wis. of Architects, 2003–present Synergy at the District (mixed-use development) Wauwatosa, Wis. 50Twenty Apartments Madison, Wis. AWARDS & RECOGNITION Morgan District Oshkosh, Wis. Franciscan Health Care Center Market Square Apartments Somers, Wis. Finalist: New Construction Middleton Station Middleton, Wis. Nursing Homes Long Term Care Management, 2003 Bergamont Townhomes Oregon, Wis. Madison’s “40 Under 40” Ballpark Commons Apartments Franklin, Wis. In Business Magazine, 2006 Forte at 84 South Greenfield, Wis. “Design of the Times” Prairie Trail Apartments Sun Prairie, Wis. Madison Magazine, Feb. 2007 Veritas Village apartments Madison, Wis. Meadow Ridge apartments Middleton, Wis. T. Wall Enterprises PROJECT TEAM JOHN SCHMIED PROJECT MANAGER JSchmied@JLA-AP.com EDUCATION John has expert knowledge on all aspects of architecture: site concerns, complicated structural elements, and exterior relationships to all of the Associate Degree interior details needed in design projects. Architecture John connects with his clients to understand their desires and needs; then Madison Area Technical present designs that are practical, relevant and well-received. Although College 1995–1999 exposed to a wide variety of market sectors, he has an extensive background in multi-family projects. PROFESSIONAL ACCREDITATIONS REPRESENTATIVE PROJECT EXPERIENCE Licensed Architect – Wisconsin American Institute of Architects Merrill Apartments (Stonebridge) Merrill, Wis. (AIA) Park Place (adaptive re-use) Merrill, Wis. LEED AP Building Design + Veritas Village Madison, Wis. Construction Dayton Street Apartments Madison, Wis. City View Condominiums Sun Prairie, Wis. AWARDS Park & Drake Madison, Wis. Gold Award for Projects Prairie Trail (T. Wall) Sun Prairie, Wis. of Distinction, 2009 Hidden Creek, (T. Wall) Madison, Wis. Associated Builders & Lilly Preserve Brookfield, Wis. Contractors of Wisconsin Veritas Village (T. Wall) Madison, Wis. The Junction at White Stone Station Menomonee Falls, Wis. Prairie Lakes Retail Building ‘G’ Sun Prairie, Wis. Market Square Sun Prairie, Wis. T. Wall Enterprises PROJECT TEAM COMPANY OVERVIEW Vierbicher is a team of planners, engineers, landscape architects and surveyors committed to providing the highest level of skill and expertise to clients throughout Wisconsin and the Upper Midwest. Our multi-disciplined, team-based approach enables us to combine our strengths and bring unique perspective to a wide range of projects. Having this diverse in-house experience provides many benefits to our clients, including creative solutions, efficient project flow and cost-effective results. We have been delivering unmatched customer service to private and municipal clients for over 40 years, and it has been a cornerstone of our success in this highly competitive field. ROD ZUBELLA, PE | President & CEO Rod has over 28 years of experience providing civil engineering services for local government and real estate developers. As a practicing civil engineer, Rod blends his passion, experience and compassion to find sound solutions for his clients’ issues. MATT SCHREINER, PE | Engineering Manager Matt provides engineering services on municipal, commercial and residential projects. His responsibilities include stormwater & utility design, permitting, grading design, site layout, contract documents and construction inspection. T. Wall Enterprises PROJECT TEAM GENERAL CONTRACTOR If chosen, our team will work with a reputable Wisconsin-based general contractor. Based on our past succesful projects, we would choose one of the following companies to partner with: Immel-Builds.com 1820 Radisson Street Green Bay, WI 54302 Phone 920.468.8208 StevensConstruction.com Two Buttonwood Court Madison, WI 53718 Phone: 608.222.5100 Miron-Construction.com 1471 McMahon Drive Neenah, WI 54956 PH 920.969.7000 T. Wall Enterprises EXPERIENCE T. Wall has developed five retail centers, 45 office buildings, and a large portfolio of multi-family housing and a few condominiums. We also have developed in towns other than Madison and Milwaukee. And we have successfully developed multi-family during the Great Recession, when others wouldn’t. See the following examples of our most recent developments that are very similar in nature to the one being proposed. CityDeck Landing is one of Green Bay’s newest luxury apartments. This development is very similar in nature to the one proposed because of the following: • a tight urban site with adjacent roads and all the challenges that go with that underground parking; • some commercial space on first level; • and a large and colorful skydeck. In addition to the cameo included in this proposal, more information can be found at: twallenterprises.com/citydeck-landing/ T. Wall Enterprises EXPERIENCE SUSTAINABILITY T. Wall Enterprises has been awarded many sustainability and green development awards as follows: Clean Lakes Alliance: awarded for partnering with Dane County and the Alliance to preserve and improve storm water quality through environmentally conscience development practices and pioneering new stormwater practices. Wisconsin Manufacturers & Commerce: Received the Wisconsin Business Friend of the Environment Stewardship Award for landscape conservation, energy efficiency measures and recycling measures. Governor’s Award in Energy Efficiency: We were the first and only development company to receive this award, to recognize outstanding efforts towards being environmentally conscience and specifically energy efficient. Madison Gas & Electric: For becoming the beta test site for installing electric car charging stations in multi-family properties. Veritas Village LLC: For featuring the largest solar panel array on a multi- family building in the entire State of Wisconsin and for installing the largest solar panel array in downtown Madison. RENEW Wisconsin: For receiving the Renewable Energy Champion Award for their support of renewable energy. T. Wall has put in place more solar capacity than any other developer of multi-family dwellings active in Wisconsin. Focus on Energy: T. Wall was the only partner with Focus on Energy, teaching the team at Focus how to retrofit and install energy efficient equipment in older and new buildings. While other developers were taught by Focus how to install green components, we taught Focus how to do it. City of Madison Resolution: Ald. Ledell Zellers congratulated, Veritas Village, LLC, in Madison, Wisconsin, for completing the largest solar installation in downtown Madison for a multi-family property. T. Wall Enterprises MIXED-USE CITYDECK LANDING MIXED-USE LOCATION: Green Bay, Wis. PROGRAM: 115,000 s.f. Seven-story mixed-used building Partnered with City of Green Bay Amenities include: club room, community room, fitness center, and landscaped patio REFERENCE: Kim Flom, Director of Planning & Development - City of Green Bay Ph. (920) 448-3413 kimfl@greenbaywi.gov MIXED-USE MIDDLETON CENTER MIXED-USE DEVELOPMENT LOCATION: Middleton, Wis. PROGRAM: 157,100 s.f. Public Private Partnership (P3) Three phase redevelopment of the Old Middleton Center Phase One includes: 62 market-rate multi- family units, 11,388 s.f. of commercial space, and 21,483 s.f. of office space Amenities include: club room, community room, fitness center, and landscaped patio REFERENCE: Eileen Kelley, Director Planning / Zoning Administrator – City of Middleton Ph. (608) 821-8370 MULTI-FAMILY PELOTON RESIDENCES INFILL REDEVELOPMENT LOCATION: Madison, Wis. PROGRAM: 157 market-rate multi-family units and 12,000 s.f. of commercial space. 246,348 s.f. Amenities include: club room, community room, fitness center, and landscaped patio REFERENCE: Heather Stouder, Planning Division Director – City of Madison, Ph. (608) 266-5974 MULTI-FAMILY VERITAS VILLAGE MULTI-FAMILY DEVELOPMENT LOCATION: Madison, Wis. PROGRAM: 189 market-rate units Central courtyard & pool with green roof areas; over parking level Amenities include: fitness room, community room, concierge desk, clubroom, and game room REFERENCE: Heather Stouder, Planning Division Director – City of Madison | Ph. (608) 266-5974 MIXED-USE WATERMARK LOFTS INFILL MIXED-USE DEVELOPMENT LOCATION: Madison, Wis. PROGRAM: 80 market-rate units 18,922 s.f. commercial space Amenities include: club room, community room, fitness center, and landscaped patio REFERENCE: Heather Stouder, Planning Division Director – City of Madison Ph. (608) 266-5974 MULTI-FAMILY PRAIRIE TRAILS MULTI-FAMILY DEVELOPMENT LOCATION: Sun Prairie, Wis. PROGRAM: Three-story, 54 units 56,516 s.f. Amenities include: community room, club room, outdoor patio, library, event space with kitchenette/restroom, and landscaped patio Underground parking REFERENCE: Scott Kugler, Planning Director – City of Sun Prairie | Ph. (608) 825-1107 MIXED-USE BAY LOFTS MIXED-USE DEVELOPMENT LOCATION: Sturgeon Bay, Wis. PROGRAM: First level parking & retail 5,500 s.f. retail space 37 apartment units Amenities include: fitness center, fourth floor clubroom with adjacent roof deck MIXED-USE MONONA RIVERFRONT REDEVELOPMENT MIXED-USE DEVELOPMENT LOCATION: Monona, Wis. PROGRAM: 3–4 buildings 256 apartment units 65,000 s.f. apartment units Public park and indoor/ outdoor event space MULTI-FAMILY 22 SLATE MULTI-FAMILY DEVELOPMENT LOCATION: Madison, Wis. PROGRAM: Seven buildings 264 market-rate units Separate clubhouse building, pool and fitness center Buildings organized around central common green Pet-friendly amenities: dog walking areas, dog bag dispensers, dog washing room in underground parking area MULTI-FAMILY MIDDLETON STATION MULTI-FAMILY DEVELOPMENT LOCATION: Middleton, Wis. PROGRAM: 32 market-rate units Two levels of parking PUBLIC PROJECT EXPERIENCE Listed below are other representative public projects that T. Wall Enterprises has been involved with. GREENWAY CENTER CITY CENTER WEST Madison, WI Project Cost: $135,000,000 Project Value: $189,500,000 Completion: 2003 Size: 1,021,000 s.f. Reference: Kurt Sonnentag, Mayor The City Center West project included the City of Middleton development of two 8-story towers, Ph. (608) 335-0888 constructed in phases with connections at each floor, as well as a 1,532 stall, five-level Email: mayor@ci.middleton.wi.us parking ramp. The project features 440,000 s.f. of office, retail, and restaurant space. This mixed-use development located on Madison’s west side. Initially comprised of a office buildings and retail, restaurant, and HIGH CROSSING hotel components, additional buildings were later added as in-fill to create a mini ENVIRON town center. T.Wall served as overall MADISON, WI developer for the project. Project Value: $88,000,000 Size: 309,000 s.f. THE CENTER FOR Reference: Don Marx, Manager Office of Real Estate Services INDUSTRY & COMMERCE City of Madison MADISON, WI Ph. (608) 267-8717 Public Private Partnership (P3) Email: dmarx@cityofmadison.com Project Value: $37,000,000 Size: 160-acre site High Crossing is proud to be the first large- Reference: Don Marx, Manager scale, mixed-use development in Dane Office of Real Estate Services County. The site consists of office, retail, City of Madison restaurant, hotel, and residential properties. T.Wall served as overall developer for the Ph. (608) 267-8717 High Crossing project. Email: dmarx@cityofmadison.com The Center for Industry & Commerce, is a 160-acre mixed-use development on Madison’s east side. The development is the culmination of a 10 year partnership between T.Wall and the City of Madison. T.Wall served as master developer for this project. T. Wall Enterprises CONCLUSION The added advantage of selecting T. Wall Enterprises is that we have been through the entitlement (political) process before in downtown and with the city including elected officials and city staff. Overall, we have a good working relationship with the city. We know the process; we’re not newcomers who will have a large and risky learning curve. Given the size of the development, the safe play is to select a developer who has experience in downtown and is committed to getting results. We also have the experience in working on a parcel that probably has a high water table, near a river, in a tight urban site that will require off site storage and just in time delivery of materials, complicated phasing (so residents can live in the first phases while future phases are built), a team in place in Green Bay that is ready to go, and a developer with family in the city. This development will be a trans-formative opportunity and should be designed and built to the highest quality to last a hundred years or more. T. Wall Enterprises APPENDIX A: CONCEPTUAL PLANS