Request for Proposals(RFP)

63B-2015

301 & 315 N Samish Way“Site”

The City seeks an experienced developer for a 1.51 acre parcel located west of Samish Way in the Samish Way Urban Village. The Site, formerly the Aloha Motel, is located at 301/315 N. Samish Way along a key arterial connection between Western Washington University and Downtown Bellingham. The Site is adjacent to the historic residential Sehome Neighborhood and a short distance from the 180 acre Sehome Arboretum, and presents a unique opportunity for large-scale mixed-use development.

Quick Facts:Address: 301 & 315 N Samish WayParcel Number: 380331 421256 and -425243Lot Size: 66,188 sq ft (~1.5 acres)Zoning: Commercial Transition (2.5 to 3.5 FAR)Land Sale Preferred

Timing:Release Date: November 3, 2015Responses Due: December 18, 2015, 11:00 AM

Contact:Darby Cowles, Senior Planner dkcowles@cob.org or (360) 778-8389

WASHINGTON

Dear Interested Party;

It is with great excitement that the City presents a property for development in the heart of the Samish Way Urban Village. This area is an emerging new neighborhood for living, working and playing as envisioned and supported by the community in the Samish Way Urban Village Plan. Proximity to Western Washington University and our thriving Downtown, Sehome Arboretum hiking trails, and a neighborhood eager to implement the Samish Way Urban Village Plan creates an environment of enormous possibility.

The City of Bellingham is committed to supporting and retaining its business community, and economic development is a top strategic priority. As we continue to invest in neighborhood improvements and implement incentives in this area, we offer this incredible opportunity to build in an unencumbered, high-density, fully-serviced location.

We encourage you to share your vision for Samish Way, and look forward to reviewing your proposal.

Sincerely,

Kelli LinvilleMayor of Bellingham

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I. Preferred Development

The City welcomes proposals that will activate the Site during the day and night; particularly housing, dining and/or retail opportunities. An active com-mercial use along Samish Way and maximization of the building height and allotted square footage are preferred. A variation in the size and type of residential units is desired. Applicants are encour-aged to read the Vision and Development Character chapters of the Samish Way Urban Village plan for more information about the community goals for the area.

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Artist’s interpretation of Samish Way from Samish Way Urban Village Plan

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II. Neighborhood Characteristics & Amenities

The Site is located in the Samish Way Urban Village, just south of Downtown and east of the Western Washington University campus. The Samish Way Urban Village is host to popular student hot spots, such as McKay's Tap House, Diego's Mexican Grill, and Boomers Drive-In.

The area also hosts a number of other restaurants, a new Walgreens pharmacy, and nearby access to Sehome Hill Arboretum, which provides over six miles of woodland trails and a scenic overlook to Bellingham Bay and the city below. The Site is also just blocks away from the Sehome Historic District, a lovely residential neighborhood that was listed on the National Register of Historic Places in 2001.

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Gateway to Western Washington UniversityThe nearby Samish Way freeway interchange is the main entryway to the WWU campus, which hosts over 15,000 undergraduate students. In addition, the university draws thousands of visitors annually, and offers amenities such as world-class musical and theater performances, guest speakers, a nation-ally-recognized outdoor sculpture collection, galler-ies, and libraries, all hosted on a beautiful forested campus. The Whatcom Transportation Authority provides transit service from the Site to campus.

Sehome Historic DistrictThe Sehome Neighborhood has a diverse collection of building types ranging from Victorian-era man-sions to middle-class Craftsman bungalows and cot-tages. Approximately 90% of the neighborhood is developed, one of the highest densities in the City.

Proximity to DowntownLocated approximately one mile away is Downtown Bellingham, a regional arts destination with numer-ous restaurants, entertainment, nightlife, cultural activities and an award-winning Farmers Market.

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III. Site Characteristics

A wide range of uses can take advantage of the Site's flexible zoning, good access and excellent visibility and frontage along Samish Way.

Upon acquisition of the Site, the City removed all materials contaminated with lead and asbestos and demolished the former motel structures, including an in-ground storage tank. The Site is in the process of being cleaned, cleared, and readied for development. There are no critical areas on or near the property.

There are several landscaping structures present in the open area, which may be removed by the City prior to final sale depending on the interest of the selected developer. The "Aloha Motel" sign is also remaining on the northwest corner of the property, and may be removed prior to development or integrated into the project, depending on the interest of the developer.

The Site is served by a full-standard abutting arterial street, complete with sidewalks. Secondary streets are minimum-standard and will require improvement at the cost of the developer. See the Circulation Chapter of the Samish Way Urban Village Plan and BMC 20.37.140 for more information. Water, sewer, and stormwater systems contain ample capacity to serve the envisioned develop-ment. The Site slopes slightly down towards the east, with a retaining wall on the western corner of the property.

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IV. Samish Way Urban Village Plan and Development Regulations

Samish Way Urban Village PlanThis document (part of the City's Comprehensive Plan) describes the community vision, goals and policies for the neighborhood.

Development RegulationsThe development regulations, which include design standards, define the specific land uses, density, building heights, Floor Area Ratios ("FAR"), and setbacks for buildings and sites. Requirements for public streets, pedestrian and bicycle facilities are also included in this document.

Zoning Commercial Transition IIPermitted Uses Retail, offices, housing, personal and business services, dining/drinking facili-

ties, art galleries and many more. Drive-thru and nightclub uses prohibited.Height Limit 55 feet, except for a 2-story/30-foot height limit within 30-feet of the Otis Street

property line (abutting the residential zone)Floor Area Ratio

2.5, with density bonus options for up to 3.5 FAR (Total square footage that may be built is ~164,750 to ~230,650)

DesignStandards

Urban Village Design Review

Parking Requirement

Commercial: 1 stall per 500 sq. ft. gross floor areaResidential: 1 stall per studio, 1-bedroom or 2-bedroomBike parking: 15% of required vehicle parking

Landscaping Green Factor of 0.20 to 0.30, depending on FARStreet Improvements

Improvement of E. Laurel and Otis Streets to ¾ standard, including sidewalk, on-street parking, curb and gutter. Improvement of Abbott Street to add a 5-foot wide sidewalk. See Chapter 4 of the Samish Way Urban Village Plan and BMC 20.37.140 for additional information.

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V. Development Incentives

Multi-family Tax ExemptionThe Site is within the Samish Way Multi-family Tax Exemption boundary, which provides a property tax exemption for a period of 8 to 12 years for multi-family housing.

Transportation Impact Fee ReductionsThe Site is located within the City's Urban Village TIF Reduction Program area. An automatic 15% reduction is provided, with opportunities for up to 50% TIF credit. An additional $32,016 in TIF credit for the previous use runs with the Site and will be transferred to the selected developer.

B&O Tax Credit (proposed, pending final City Council approval)Beginning in 2016, new businesses that locate in the Samish Way Urban Village will be eligible for a graduated credit on local B&O taxes.

Expedited PermittingQualifying projects within urban villages are eligible for permitting under a specialized Urban Vil-lage Review Team, which includes expedited land use permit review.

Credit for Public AmenityProjects which incorporate public amenities, such as an active and programmed public plaza, man-aged open space, artwork/sculpture, or sidewalk features may receive financial credit based on the cost of the amenity.

Impact Fee Reductions for Affordable HousingProjects which incorporate affordable low-income housing may receive up to an 80% reduction in Park, Transportation and School Impact Fees.

VI. Relevant Site information (available on the website and upon request)

Site AppraisalTopographical and Site SurveyPhase I Environmental Site Assessment Aloha Motel Demolition ContractSamish Way Urban Village Geotechnical Study

VII. Key Business Terms

As part of the RFP response, acknowledge acceptance of the minimum business terms stated below, or acknowledge areas of disagreement with any of these terms, with an explanation or sug-gestion of an alternative way of addressing the term in question. These minimum business terms will be incorporated into the transaction agreements negotiated during the Exclusive Negotiation Period immediately following selection of a preferred developer(s):

A. Vision The developer will commit to a design and use plan consistent with the Samish Way Urban Village plan and development regulations.

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B. Process1. The developer will be responsible for conducting all feasibility analyses necessary to under take redevelopment.2. The developer will provide a plan for the marketing and leasing of the development.3. The developer will meet all City, State, and Federal requirements for the permitting and

the environmental review of the development.4. The developer will commit to completion of the development, as mutually agreed upon

by the developer and the City.

C. Financing1. The developer will obtain adequate financing to assure completion of the development.2. The developer will pay the City market value per BMC 4.84.030 A and closing costs per 4.84.030 E for the site.

VIII. Proposal Requirements

Responses to this RFP must include the following elements at a sufficient level of detail to allow the City to evaluate proposals. Your proposal will not be legally binding on either you or the City; however, it must be signed by an authorized officer or principal of your firm.

An optional pre-submittal site visit with staff has been scheduled at the property on Novem-ber 19, 2015 from 10:00 to 11:00 AM.

A. Capability of the Development Team1. Provide background information on your company (history, management team,

expertise, etc.).2. List and provide a biography of the people in your organization that will be involved

with this project. Include any relevant background information.3. Provide a description of past and current development projects that demonstrate your

firm’s ability to manage projects of similar size and complexity from concept initiation to a successful outcome. Special emphasis should be placed on experience with multi-story buildings in urban areas.

4. Provide information about anticipated funding for the development concept including the level of co-investment, third party equity, and debt.

5. Describe any past or current litigation or other legal disputes that could impact your firm’s ability to perform on this project.

6. References: include at least three (3) project partner references that can speak to your firm’s track record, expertise, and capabilities.

B. Development Concept1. Proposed Use(s) – Include type of use(s), square footage(s), number of anticipated jobs

(if applicable), unit counts/bedroom counts, etc. Any proposed use of the existing sign and/or landscaping features should also be described if they are intended to be inte-grated into the development proposal.

2. Bulk, Massing, and Design – Density and scale, building height, lot coverage, parking

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areas, consistency with design standards, etc.

3. Sustainability and Design Quality – Describe the character and quality of design you fore-see for the site, including any sustainable building or low-impact development practices proposed.

4. Site Design - Describe solutions for how the development will relate and connect to the surrounding neighborhood. Explain how the building orientation, proposed driveways and parking access, and building location consider topography and site conditions.

C. Proposed Transaction Structure1. Form of Acquisition (whether by sale, lease, or other structures); land purchase preferred.2. Project Timing (note: the City is interested in ensuring development breaks ground within

18 months of closing).3. Purchase Price: The City must receive market value per BMC 4.84.030 A and closing costs

per BMC 4.84.030 E for any and all property sold or leased. 4. Earnest Money: Demonstration of your financial commitment to pursue the project (i.e., exclusive negotiating fee, earnest money deposit, etc.) per BMC 4.84.030 B(3).5. Transaction Commitment and Timing: Indicate your desired closing date, your required conditions of closing the transaction, including any required approvals and the timing

anticipated in obtaining such approvals.6. Other material terms and conditions required by you if you are selected for negotiations,

including what, if any, incentives, subsidies, or direct investments you are assuming in addition to those represented in this RFP and supporting materials.

IX. Evaluation Criteria

The following criteria will guide the selection of a preferred developer(s):

A. Capability of the Developer• Materials submitted demonstrate financial strength and ability.• Developer competence demonstrated through performance track record.• Capacity to take on this project, including appropriate involvement from executive leadership within the firm.• Overall strength and experience of the development team.

B. Development Concept• Compatibility with the community goals outlined in the Samish Way Urban Village Plan.• Consistency with the Samish Way development regulations.• Pedestrian orientation and enhanced connections between the property, existing historic neighborhood, and adjacent commercial area.

• Achieves a high level of sustainability and quality design.• Excellent site layout, taking topography and site conditions into consideration.

C. Preferred Transaction Structure• Defines plan and timing for investment and project build-out (including commencement of

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construction within an 18-month time period).• Clearly illustrates how preferred transaction structure best supports realization of a viable project that meets or exceeds the goals of the Samish Way Urban Village Plan.

• Offers market value and closing costs for the Site per BMC 4.84.030, with consideration for eligible credits provided.

• Minimizes closing contingencies.

X. Selection Process

The City will review responses to this RFP and determine whether to conduct interviews with the selected proponant(s). Following review of submittals and any interviews, City staff will make a rec-ommendation to the City Council. The City Council has final decision-making authority and reserves the right to reject any and all proposals, and/or to withdraw or subsequently modify or review the terms contained within this RFP.

Upon approval by the City Council, the preferred developer(s) and the City will enter into an Exclu-sive Negotiating Agreement (“ENA”) to negotiate a Purchase and Sale Agreement (PSA). If the par-ties cannot execute a PSA within the time period specified by the ENA, the City reserves the right to enter into negotiations with one or more alternate development teams.

The selection process for this RFP is outlined in the following tentative schedule. Dates are subject to change.

Issue RFP November 3, 2015 Optional Site Visit November 19, 2015, 10:00-11:00 AM RFP Responses Due December 18, 2015 , 11:00 AM

XI. Submittal Requirements

Respondents must submit: • One (1) original unbound copy of the RFP response• One (1) electronic PDF file of the RFP response

Please tab sections for easy reference. Original unbound copies must be mailed or hand-delivered to: City of Bellingham Purchasing Department 2221 Pacific Street Bellingham, WA 98229

Electronic submittal of the PDF file should be emailed to: bids@cob.org

Responses must be received by 11:00 AM on December 18th, 2015. The original unbound copy of the responses may be sent by mail or hand-delivered; however, if sent by mail, the responsibility of their timely delivery is wholly upon the respondent.

Please note that all proposals are public records and all responses to this RFP become the property of the City of Bellingham.