HomeMy WebLinkAbout15 BUSINESS DEV PLAN 04-01-96inter-Com
NO. 15
4-1-96
DATE:
APRIL 1, 1996
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
CHRISTINE A. SHINGLETON, ASSISTANT CITY MANAGER
AUTHORIZATION FOR CONSULTANT SERVICES FOR
PREPARATION OF A BUSINESS AND DEVELOPMENT PLAN
Recommendation
it is recommended that the City Council authorize the City Manager to execute a
Consultant Services Agreement with the Sedway Kotin Mouchly Group for preparation of a
Business and Development Plan.
Fiscal Impact
The anticipated costs for the preparation of the Business and Development Plan would be
$99,300. Partial funding for the work has been secured in the amount of $50,000 from
a Department of Defense Office of Economic Adjustment grant. The balance of the
anticipated costs for the project are recommended to be funded with 1996-97 Community
Development Block Grant funds.
Back~;round and Discussion
On July 20, 1995, the Department of Defense published the final rules for implementing
portions of the National Defense Authorization Act for FY 1994. The rules provide the
City of Tustin an opportunity to obtain title to surplus military properties at or below fair
market value through an Economic Development Conveyance (EDC). The purpose of an
EDC is to foster economic development and the creation of jobs, enhancing economic
recovery of areas negatively impacted by base closure. Approval of an EDC requires the
submission of an application and number of items of information which explain why an
EDC is being requested. One of the items to be submitted is a Business and Development
Plan which must include the following:
· A development timetable, phasing plan and cash flow analysis;
· A market and financial feasibility analysis describing the economic viability of the
project, including an estimate of net proceeds over a' fifteen-year period, the proposed
consideration or payment to the Department of Defense, and the estimated fair market
value of the property;
· A cost estimate and justification for infrastructure and other investments needed for the
development of the EDC parcel;
· Local investment and proposed financing strategies for. the development.
City Council Report
April 1, 1996
Page Two
The preparation of a Business and Development Plan is a prerequisite to the City of Tustin
making an application for an EDC. Based on the economic and financial analysis provided
in the Business and Development Plan, the City would decide whether to seek one or more
economic conveyances of portions or all of the base. if the City decides to seek and
EDC(s), the Business. and Development Plan will become an integral part of that
application, in addition, the document will be a critical resource document for planning
and administration purposes as well as for securing much needed loans, financing and bonds
necessary to offset the significant infrastructure improvement costs which must be
accommodated for economic development to occur at the base. The City is interested in
rapidly transferring the base for reuse by the private sector. Regardless of whether an EDC
application is submitted or whether the Department of the Navy approves an EDC request
by the LRA, a Business 'and Development Plan is desired to assist in making the application
decision and in making further business decisions relative to property disposal at the base.
Due to limited personnel resources, the City solicited a Request for Proposal (RFP) to
develop the required Business and Development Plan. An RFP was sent to :]1 firms in late
summer of 1995. Responses were received from nine lead firms (,k, ttachment A). After a
lengthy 'ranking process and reference review, interviews were held with the following firms:
· Williams Kuebelbeck ~ Associates
· Gruen, Gruen 6t Associates
· Economic Research Associates
-· Sedway Kotin ["louchly Group
The following representatives were members of the City's interview panel and ranking
process: Assistant City Manager, Redevelopment Program Manager, Senior Planner,
Chairman of the City's Economic Development Council (Chuck Noble from Lea and
Associates), and John Lynch, a representative from Kutak Rock and one of the City's
consultants on base closure legal issues in Washington, D.C. Based on the interviews and
reference checks, the Sedway Kotin Mouchly Group (SKM) was selected as the most
qualified firm to undertake the project. SKM is currently working; with Fort Ord and
Treasure Island in Northern California on developing Business Development Plans. The
interview panel also established some parameters for their choice of SKM which required
additional contract negotiation and an increase of the originally prepared contract price,
including additional principal involvement and sub-consultant work. Significant work is not
anticipated to begin on the project until resolution of the Coast Guard issue.
The attached contract has been approved by the City Attorney's office. The proposed
project has been partially funded by a $50,000 grant from the Department of Defense
Office of Economic Development. The remaining portion of the funding is recommended
to be funded by the City's 1996-97 Community Block Grant application.
Attachment
CONSULTANT SERVICES AGREEMENT
This Agreement for Contract Services (herein "Agreement"), is
made and entered into by. and between the CITY OF TUSTIN, a
municipal corporation ("city"), and Sedway Kotin Mouchly Group,
( "Consultant" ) .
WHEREAS, Consultant is qualified to provide the necessary
services and has agreed to provide such services; and
WHEREAS, Consultant has submitted to City a proposal, dated
November 8, 1995, a copy of which is attached hereto as Exhibit
"A" and is.by this reference incorporated herein as though set
forth in full hereat (the "Proposal").
NOW, THEREFORE, in consideration of the premises and mutual
agreements contained herein, City agrees to employ and does hereby'
employ Consultant and Consultant-agrees to provide consulting
services as follows:
1.0 'SERVICES OF CONSULTANT
1.1 Scope of Services. In 'compliance with all terms
and conditions of this Agreement., the Consultant shall provide
those, services specified in the "City's Request for Proposal Scope
of Services" attached hereto as Exhibit "B" and-incorporated herein
by this reference, (the "services" or the "work") and in the
Consultant's proposal, "Exhibit A." Consultant warrants that all
services will be performed in a competent, professional and
satisfactory manner in accordance with all standards prevalent in
the industry.
In the event of any inconsistency between the terms of such
proposals and/or the text of this Agreement, the text of this
Agreement and Exhibits B, C, D, and E shall, govern.'
· ' 1.2 Compliance with Law. Ail' services rendered
.hereunder shall be provided in accordance with all Federal, State
of California laws, and the ordinances, resolutions, statutes,
rules, and regulations of the City of Tustin and the Tustin
Community Redevelopment Agency.
1.3 Familiarity with Scope of Services. By executing
this Contract, Consultant warrants that Consultant (a) has.
thoroughly investigated and considered the work to be performed,
(b) has generally acquainted itself~with the site of the work and
conditions there existing and (c) has carefully considered the
means and methods for performance (d) fully understands 'the
facilities, difficulties, restrictions attending performance of the
work under this Agreement. Should the Consultant discover any
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latent or previously unknown conditions materially differing from
those inherent in the work or as repreSented by the City,
Consultant shall immediately inform City of such fact and shall not
proceed with any work except at Consultant,s risk until written
instructions are received from the Contract Officer.
1.4 Care of Work. The Consultant shall adopt
reasonable methods during the life of the Agreement to prevent loss
or damage to materials, papers and other components thereof to
minimize losses of damages and shall be responsible for all such
damages until acceptance of work by'City, except such losses or
damages as may be caused by City's own negligence.
1.5 Additional Services. In accordance with the terms
and conditions of this Agreement, the Consultant shall perform
services in addition to those specified in the Scope of Services
when directed to do so in writing by the Contract Officer, provided
that Consultant shall not be required to perform any additional
services without additional, reasonable compensation. Any
additional compensation not exceeding ten percent (10%) of the
original contract sum.may be approved in writing by the Contract
Officer. Any greater increase must be approved by the City
Manager. -Other'applicable provisions for additional services are
found in Sections '2.3 and 2.4.
1.6 Special Requirements. Additional terms and
conditions of this Agreement which are made a part hereof are set
forth in Exhibit "C", "D" and "E" and are incorporated herein by
this reference. In the event of a conflict between the provisions
of Exhibit "C" and "D" and any other provision of this Agreement,
including Exhibits "A" and "B", the provisions of Exhibit "C", "D"
and "E" shall govern.
2.0 COMPENSATION
2.1 For the services rendered pursuant to this
Agreement, the Consultant shall be compensated in an amount not to
exceed $99,930 (herein "Original Contract Sum") in accordance with
Exhibit C (attached).
2.2 Method of Payment. In any month in which
Consultant wishes to receive payment, Consultant shall, no later
than the first (lst) working day of such month, submit to the City
in a form approved by City, an invoice for services rendered prior
to the date of the invoice. City will pay Consultant for all
expenses stated thereon.which are approved by city pursuant to this
Agreement no later than the last working day of said month.
2.3 Chanqes. In the event of any change or changes in
the' scope of work requested by City, the parties hereto shall
execute an addendum to this Agreement, setting forth with
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particularity all terms of the Addendum, including but not limited
to any additional compensation to Consultant.
2.4 payment for Chanqes. Changes approved pursuant to
an Addendum shall be compensated in amounts not in excess of
personnel hourly rates shown in Consultant's Proposal (Exhibit A).
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the
performance of this Agreement.
3.2 Schedule of Performance. Ail services rendered
pursuant to this Agreement shall be performed within any time
periods prescribed in any schedule of Performance attached hereto
marked Exhibit "E". The extension of any time period specified in
the Exhibit "E" must be approved in writing by the Contract
Officer.
3.3 Force Majeure.. The time for performance of
services to be rendered pursuant to this Agreement may be extended
because of any delays due to~ unforeseeable causes beyond the
control and without the fault, or negligence of the Consultant,
including, but notrestricted to, aCts of God or of a public enemy,
acts of the government, fires, earthquakes, floods, epidemic,
quarantine restrictions, riots, strikes, freight embargoes, and
unusually Severe'weather if the COnsultant shall within ten (10)
days of the commencement of such condition notify the Contract
Officer who shall thereupon ascertain the facts and the extent of
any necessary delay, and extend the time for performing the
services for the period of the enforced delay when and if in the
Contract Officer's judgment such delay is justified, and the
Contract Officer's determination shall be final and conclusive upon
the parties to this Agreement.
3.4 Term. Unless earlier terminated in accordance
with Section 7.7 of this Agreement, this Agreement shall continue
in full force and effect until satisfactory completion of the
services.
4.0 COORDINATION OF WORK
4.1 Representative of Consultant. The following
Principals of the Consultant are hereby designated as being the
principals and representatives of Consultant authorized to act in
its behalf with respect to the work specified herein and make all
decisions in connection therewith: Allan Kotin,'Senior Principal
and Thomas R. Jirovsky, Managing Principal.
It is expressly understood that the experience,
knowledge, capability and reputation of the foregoing Principal is
a substantial inducement for City to enter into this Agreement.
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Therefore, the foregoing Principal shall be responsible during the
term of this Agreement for directing'all activities of Consultant
and devoting.sufficient time to personally supervise the services
hereunder. The foregoing Principal may not be changed by
Consultant without the express written approval of City.
4.2 Contract Officer. The Contract Officer shall be
the Assistant City Manager of City unless otherwise designated in
writing by the City Manager of City. It shall be the Consultant's
responsibility to keep the Contract Officer fully informed of the
progress of the performance of the Services and'Consultant shall
refer any decisions which must be made by City to the Contract
Officer.. Unless otherwise specified herein, any approval of City
required hereunder shall mean the approvalof the Contract Officer.
4.3 -Prohibition Aqainst Subcontractinq or Assiqnment.
The experience, knowledge, capability and reputation of Consultant,
its principals and employees were a substantial inducement for the
City to enter into this Agreement. Therefore, Consultant shall not
contract with any other entity to perform in whole or in part the
services required hereunder withOut the express written approval of
the Cit~. In addition, neither this Agreement nor any interest
herein may be assigned or transferred, voluntarily or by operation
of law, without the prior written approval of City.t
4.4 Independent Consul{ant. Neither the City nor any
of its employees shall have any control over the manner, mode or
means by which Consultant, its agents or employees perform the
services required herein, except as otherwise set forth herein.
Consultant shall perform all services required herein as an
independent Consultant of City and shall remain at all times as to
City a wholly independent Consultant with only such obligations as
are consistent with that role. Consultant shall nOt at any time or
in any manner represent that it or any of its agents or employees
are agents or employees of City.
5.0 INSURANCE, INDEMNIFICATION AND BONDS
5.1 Insurance. Consultant shall procure and maintain,
at its cost, and submit concurrently with its execution of this
Agreement, public liability and property damage insurance against
all claims for injuries against persons or damages to property
resulting from Consultant's performance under, this Agreement.
Consultant shall also carry workers' compensation insurance in
accordance with California worker's compensation laws. Such
insurance shall be kept in effect during the term of this Agreement
and shall not be cancelable without thirty (30) days written notice
to City' of any proposed cancellation. The City's certificate
evidencing the foregoing and designating City as an additional
named insured shall be delivered to and approved by the City prior
to commencement of the services hereunder. The procuring of such
insurance and the delivery of policies or certificates evidencing
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the same shall not be construed as a limitation of Consultant's
obligation to indemnify the City, its Consultants, officers, and
employees. The amount of insurance required hereunder shall
include comprehensive general liability, personal injury ~and
automobile liability with limits of at least One Million Dollars
($1,000,000) combined single limit per occurrence and professional
liability coverage with limits of at least Five Hundred Thousand
Dollars ($500,000). Coverage shall be provided by Admitted
Insurer's with an A.M. Best's Key Rating of at least A VII. If
Consultant provides claims made professional liability insurance,
Consultant shall also agree in writin~ either (1)-to purchase tail
insurance in the amount required by this agreement to cover claims
made within five years of the'completion of Consultant's services
under this agreement, or (2) to maintain professional liability
insurance coverage with the same carrier in the amount required by
this agreement for at least five years after completion of
Consultant's services' under this agreement. The Consultant shall
also be required periodically to provide evidence to City of the
purchase of the required tail insurance' or continuation of the
professional liability policy.
5,2 IndemnificatiOn. The Consultant shall defend,
indemnify'and h01d harmless the City, its officers and employees,
from and against any and all actions, suits, proceedings, claims,
demands, losses, costs, and expenses, including legal costs and
attorneys' fees, for injury to or death of person or persons, for
damage to property, including property owned by City, and for
errors and omissions committed by Consultant, its. officers,
employees and agents, arising out of or related to Consultant's
performance under this Agreement, except for such loss as may be
caused by. City's own negligence or that of its officers or
employees.
6.0 RECORDS AND REPORTS
6.1 Reports. Consultant shall periodically prepare
and submit to the Contract officer such reports concerning the
p~rformance of the services required by this Agreement as the
Contract Officer shall require.
6.2 Records. Consultant shall keep such books and
records as shall be necessary to properly perform the services
required by this Agreement and enable the Contract Officer to
evaluate the performance of such services. The Contract officer
shall have full and free access to such books and records at all
reasonable times, including the right to inspect, copy, audit and
make records and transcripts from such records.
6.3 Ownership of Documents. Ail drawings,
specifications, reports, records, documents and other materials
prepared by Consultant.in the performance of this. Agreement shall
be the property of City and shall be delivered to City upon request
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of the Contract Officer or upon the termination of this.Agreement,
and Consultant shall have no claim for further employment or
additional compensation as a result of the exercise by City of its
full rights or ownership of the documents and materials hereunder.
Consultant may retain copies of such documents for its own use.
Consultant shall have an unrestricted right to use the concepts
embodied therein.
6.4 Release of Documents. Ail drawings,
specifications, reports, records, documents and other materials
prepared by Consultant in the performance of'-services under this
Agreement shall not be released publicly without the prior written
approval of the Contract Officer.
7.0 ENFORCEMENT OF AGREEMENT
7.1 California Law, This Agreement shall be construed
and interpreted both as to validity and to performance of the
parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim or matter arising out
of or in relation to· this Agreement shall~be instituted in the
SuperiortCourt of the County of.Orange, State of California, or any
other appropriate court in such county, and Consultant covenants
and agrees tO submit to the personal jurisdiction of such court in
the event of such action. ·
7.2 Disputes. In the event of any dispute arising
under this Agreement, the injured party shall notify the injuring
party in writing of its contentions by submitting a claim therefor.
The injured party shall continue performing its obligations
hereunder so long as the injuring party cures any default within
ninety (90) days after service of the notice, or if the cure of the
default is commenced within thirty.(30) days after Service of said
notice and is cured within a reasonable time after commencement;
provided that if the default is an immediate danger to the health,
safety and general welfare, the City may~take immediate action
under Section 7.6 of this Agreement. Compliance with the
provisions of this Section shall be a condition precedent to any
legal action, and such ~compliance shall not'be a waiver of any
party's right to take legal action in the event that the dispute is
not cured.
7.3 Waiver. No delay or omission in the exercise of
any right or remedy of a non-defaulting party on any default shall
impair such right or remedy or be construed as a· waiver. No
consent or approval of City shall be deemed to waive or render
unnecessary City's consent to or approval of any subsequent act of
Consultant. Any waiver by either party of any default must be in
writing and shall not be a waiver of any other default concerning
the same or any other provision of this Agreement.
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7.4 Rights and Remedies are Cumulative. Except with
~espect to rights and remedies expressly declared to be exclusive
in this Agreement, the rights and remedies of the part~es are
cumulative and the exercise by either party of one or more of such
rights or remedies shall not preclude the exercise by it, at the
same or different times,, of any other rights or remedies for the
same default or any other default by the other party.
'7.5 Legal Action. In addition to any other rights or
remedies, either party may take legal.action, in law or in equity,
to cure, correct or remedy any default, to recover damages for any
default, to compel specific performance of this Agreement, to
obtain injunctive relief, a declaratory judgment or any other
remedy consistent with the purposes of this Agreement.
7.6 Termination Prior to Expiration of Term'. The City
reserves the right to terminate this Agreement at any time, with or
without cause, upon thirty (30) days written notice to Consultant,
except that where termination is'due to the fault of the Consultant
and constitutes an immediate, danger to health, 'safety and general
welfare, the period of notice shall be such shorter time as may be
appropriate. Upon receipt of the notice of termination,· Consultant
shall immediately cease all services hereunder except such as may
be specifically approved by the Contract Officer. Consultant shall
be entitled to compensation for all services rendered prior to
receipt of the notice of termination and for any services
authorized by the Contract Officer thereafter.
7.7 Termination for Default of Consultant. If
termination is due to the failure of the Consultant to fulfill its
obligations under this Agreement, city may take Over the work and
prosecute the same to completion by contract or otherwise, and the
Consultant shall be. liable to the extent that the total cost for
completion of the services' required hereunder exceeds the
compensation herein stipulated, provided that the City shall use
reasonable efforts to mitigate damages, and City may withhold any
payments to the Consultant for the purpose. Of set-off or partial
payment of the amounts owed to City.
7.8 Attorneys Fees. If either party commences an
action against the other party arising Out of or in connection with
this Agreement or it Subject matter, the prevailing party shall be
entitled to recover reasonable attorneys' fees and costs of suit
from the losing party..
8.0 CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION
8.1 Non-Liability of City Officers and Employees. No
officer or employee of City shall be personally liable to the
Consultant, or any successor-in-interest, in the event of any
default or breach by the City or for any amount which may become
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due to the Consultant or its successor, or for breach of any
obligation of the terms of this Agreement.
8.2 Covenant Aqainst Discrimination. Consultant
covenants that, by and for itself, its heirs, executors, assigns,
and all persons claiming under or through them, that there shall be
no discrimination or segregation in the performance of or in
connection with this Agreement regarding any person or group of
persons on account of race, color, creed, religion, sex, marital
status, national origin, or ancestry. Consultant shall take
affirmative action to insure that applicants and employees are
treated without regard to their race, color, creed, religion, sex,
marital status, national origin, or ancestry.
9~.0 MISCELLANEOUS PROVISIONS
9.1 Notice. Any notice, demand, request, consent,
approval, or communication either party desires or is required to
give to the other party or any other person shall be in writing and
either served personally or sent by pre-paid, first-class mail to
the address set forth below. Either party may change its address
by notifying the other party of the change of address in writing.
Notice shall be deemed communicated forty-eight (48) hours from the
time of mailing if mailed as provided in this Section.
To City:
CITY OF TUSTIN
300 Centennial Way
Tustin, CA 92680
Attention: Christine Shingleton
Assistant City Manager
(Contract Officer)
To Consultant:
Allan D. Kotin
Senior Principal
12100 Wilshire Blvd..
Suite 1050
Los Angeles, CA 90025
Thomas R. Jirovsky
Managing Principal
12100·Wilshire Blvd.
Suite 1050
Los Angeles, CA 90025
9.2 Inteqrated Agreement. This Agreement contains all
of the agreements of the parties and cannot be amended or modified
except by written agreement.
9.3 Amendment. This Agreement may be amended at any
time by the mutual consent of the parties by an instrument in
writing.
9.4 Severability. In the event that any one or more
of the phrases, sentences, clauses, paragraphs, or sections
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contained in this Agreement shall be declared invalid or
unenforceable by valid judgment or decree of a court of competent
jurisdiction, such invalidity or unenforceability shall not affect
any of the remaining phrases, sentences, clauses, paragraphs, or
sections of this Agreement, which shall be interpreted to carry out
the intent of the parties hereunder.
9.5 Corporate Authority. The persons executing this
Agreement on behalf of the parties hereto warrant that· they are
duly authorized to execute this Agreement on behalf of said parties
and that by so executihg this Agreement the parties hereto are
formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement
as of the'dates stated below.
Dated:
APPROVED AS TO FORM:
"City"
CITY OF TUSTIN, a municipal
corporation
By:
William Huston
City Manager
Lois Jeffrey
City Attorney
"Consultant"
Sedway Kotin Mouchly-Group
By:
Allan D. Kotin
Senior Principal,
Sedway Kotin Mouchly Group
By:
Thomas R. Jirovsk¥
Managing Principal,
Sedwa¥ Kotin Mouchly GroUp
CAS: kd\CONSULT S\sedwaykm. con
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EXHIBIT "A"
Consultant' s Proposal
SEDWAY KOTIN MOUCHLY GROUP
Real Estate and Urban Economics
March 7, 1996
Christine Shingleton
Assistant City Manager
City of Tustin
Tustin Civic Center
300 Centennial Way
Tustin, CA 92680
Dear Ms. Shingleton:
Sedway Kotin Mouchly Group (SKMG), in collaboration with Public Financial Management
(PFM) and CCL Construction Consultants (CCL), is pleased to submit this revised proposal
to the City of Tustin for the MCAS Tustin Reuse Business and Development Plan.
SKMG is a nationally recognized real estate economics consulting firm which has extensive
experience in developing business plans for large-scale residential, commercial, industrial
and mixed-use projects -- including military base-reuse. We understand the challenges
facing local reuse authorities in seeking economic development conveyances and are
knowledgeable about local market conditions. We are aware of the importance of this
project to the people of Tustin and Orange County.
PFM is a leading financial advisory firm with whom SKMG has worked on reuse plans for
Fort Ord. PFM is also currently working for the City of Tustin as a financial advisor.
The following package is organized according to your Request for Proposal. We appreciate
your consideration and look forward to discussing our qualifications in more detail with the
selection committee.
Respectfully submitted,
Allan D. Kotin
Senior Principal
Thomas R. ~ovskY
Managing Prlnci--Pal
C:~FILES\TUS56195XWP~PROPST3.TRJ:bb
Los Angeles
San Francisco
12100 Wilshire Boulevard, Suite 1050
Los Angeles, California 90025
Tel 310 820-0900
F~ 310 820-1703
SEDWAY KOTIN MOUCHLY GROUP
Real Estate and Urban Economics
Statement of Proposal
MCAS Tustin Reuse Plan
BUSINESS .AND DEVELOPMENT PLAN
Submitted to'
Christine Shingleton
Assistant City Manager
City of Tustin
Tustin Civic Center
300 Centennial Way
Tustin, CA 92680
Submitted by:
Sedway Kotin Mouchly Group
12100 Wilshire Boulevard, Suite 1050
Los Angeles, CA 90025
(310) 820-0900
March 7, 1996
Los Angeles
San Francisco
12100 Wilshire Boulevard, Suite 1050
Los Angeles, California 9('1025
Tel 310 820-0900
Fax 310 820-1703
PROPOSAL FOR MCAS TUSTIN
BUSINESS AND DEVELOPMENT PLAN
Table of Contents
I. EXPERIENCE AND QUALIFICATIONS ........................................ 1
Sedway Kotin Mouchly Group ............................................. 1
Public Financial Management ................ . ....................... ~. ......3
CCL Construction Consultants .... · ......................................... 4
Project Staffing ........................................................... 4
Statement of Understanding ................................... o ............ 5
Recent Representative Work ............................................... 6
II. PROJECT TIMETABLE ...................................................... 10
III. SCHEDULE OF DELIVE1LABLES ..................... ' ........................ 11
IV. PROPOSED WORK PLAN .................................................. 12
1. Review of Existing and In-Progress Reports .............................. 12
2. Anticipated Property Disposal Process .................................. 13
3. Prototype Development Scenarios ...................................... 13
4. Comprehensive Development and Operating Pro Forma .................. 14
5. Market and Financial Feasibility ........................................ 15.
6. Business and Development Plan ............ : ............................ 18
7. Implementation Strategy .............................................. 19
V. COST PROPOSAL .......................................................... 21
Rate Schedules .......................................................... 21
Proposed Contract Terms ................................................. 22
Proposal for MCAS Tustin Business and Development Plan
March 7, 1996
I. EXPERIENCE AND QUALIFICATIONS
SEDWAY KOTIN MOUCHLY GROUP
Sedway Kotin Mouchly Group (SKMG), a women business enterprise (WBE), was formed
in November 1994 as a merger of San Francisco-based Sedway & Associates, Inc. (S&A) and
Los Angeles-based Kotin, Regan & Mouchly, Inc. (KRM). S&A and KRM bring seasoned and
successful market research, financial feasibility and economic development practices together
to form one of the largest independent real estate consulting firms in California. SKMG has
a large and experienced staff of real estate professionals who provide a full range of
specialized real estate and economic development services.
SKMG provides practical solutions to complex problems on projects ranging from small,
single-use properties to large-scale, mixed-use developments and diversified portfolios.
More than merely furnishing numbers in a report, our analyses enable our clients to look
beyond raw market and financial data in order to make informed decisions.
SKMG advises government and public agencies in many areas, including redevelopment
efforts, fiscal impact analysis, economic development strategies, public/private partnerships,
ground lease negotiations, military base reuse and other forms of asset management.
SKMG offers clients extensive national experience in market and financial feasibility analysis
for large-scale land development, residential, retail, office, hotel, industrial and mixed-use
projects.
Services
· Market Research and Analysis
· Financial Feasibility
· Economic and Fiscal Impact
· Economic Development and
Redevelopment
· Asset Management
· Public/Private Joint Ventures
· Affordable Housing Strategies
· Litigation Support
· Training and Seminars
Military Base Reuse Experience
SKMG is currently working on military base reuse studies for Ft. Ord, Hunter's Point Naval
Shipyard and Treasure Island. In late 1994, SKMG performed an economic and financial
reuse analysis of MCAS El Toro for the South County Cities Working Group.
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
Business Plan Experience
SKMG's principals have been involved in strategic business plans for large-scale
development projects for many years as both developers and consultants. For example, we
have developed financial plans and providing management advisory services at various
stages of a project's life to:
· The Campbell Estate for the Kapolei new town on Oahu, HI;
· Haseko (Hawaii) for the Ewa Marina project, Oahu, HI;
· Leisure Technology for their master-planned retirement communities in
California, Illinois, New Jersey and Florida;
· The Housing Group (the Pritzker Family) for the Lang Ranch in Thousand
Oaks, CA;
· E1 Dorado Hills Communities for their master-planned community east of
Sacramento;
· The S. H. Cowell Foundation for the Cowell Ranch in Contra Costa County
and Marble Valley in El Dorado County, CA;
· American Nevada for Green Valley, Las Vegas, NV;
· Summa Corporation for Summerlin, Las Vegas, NV;
· Dev-Con Associates (Toronto) for the Starr Pass master-planned community
in Tucson;
· The RF&P Railroad for Alexandria 20/20 in Alexandria, VA;' and
· LEXA Holdings and Fininvest for Port Bougainville in Key Largo, FL.
Approach
We envision a business plan that would be used for internal decision making, including
determination of ability to lease, sell, develop or finance acreage that the LRA may control
or which will be offered for sale by the Department of the Navy. This plan will consist of a
consolidation of the various profit centers' cash flow; address issues of plan implementation,
overhead, debt and equity infusion; simulate the consolidated income statement and balance
sheet; and present key performance criteria and value indices.
As part of this process, we typically create a computerized Financial Planning System that
would incorporate all quantifiable elements of entitlements, development, holding and
disposition plans for alternative scenarios. We would analyze various scenarios on a
preliminary basis with a cash flow analysis of the project. We would then rank options by
relatiVe risk and by the indicated magnitude of financial commitment.
This System would simulate land development and improved sites' Sales or leasing on both
phase-by-phase and consolidated bases. The System could also address issues of fiscal
impact and other non-financial benefits of the project, if desired. We anticipate that the
System could remain "on line" and serve the LRA as a dynamic performance monitoring and
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
planning system. This would allow the LRA to model dynamically each proposed program
change or transaction under various scenarios.
PUBLIC FINANCIAL MANAGEMENT
Public Financial Management, Inc. (PFM) is a wholly-owned financial advisory subsidiary
of Marine Midland Bank, N.A. (New York) with over 15 offices and over 170 employees
throughout the nation providing financial and investment advisory services to state and local
governments. Since its inception in 1975 asa regional debt management consulting firm,
PFM has.expanded to include client relationships across the nation, including involvement
in financing and other capital raising programs totaling more than $65 billion for public
agency clients.
PFM is also one of the few financial advisory firms that has developed a derivative/new
products group. PFM is committed to remaining on the cutting edge of innovative financing
products for our clients. PFM has evaluated many of the products offered in the municipal
market. In particular, the firm has experience with inverse floaters, forward refundings,
swaps, detachable calls, caps, collars and swap hedging strategies, among others.
A cornerstone of PFM's public finance practice is the development of long-term planning
studies and financing plans. Generally, PFM offers a set of services that includes the
development of a framework for policy-making which, in turn, requires careful analysis of
financing needs and financing alternatives, the establishment of clear objectives and the
implementation of those objectives through the most appropriate and cost-effective means
for capital formation. Through examining the variety of funding alternatives available to
different public entities, PFM 'has developed great experience in the identification of
alternative funding mechanisms for capital and operating programs.
PFM is firmly committed to its advisory practice in the Western United States market. PFM's
Western United States Group is made up of 31 professionals located in its San Francisco,
Portland and Orange County offices, making it the largest public finance practice in the
Western United States. These offices work closely together to provide clients with a full
range of financial advisory services, including capital planning and financial analysis, debt
issue structuring and bond sale services, and money management services. Together, PFM's
Western United States professionals have unrivaled experience in all facets of public finance
and, combined with the overall institutional resources of PFM, provide the firm's clients with
financial advice that is unsurpassed in its quality, timeliness and objectivity.
The firm's experience in advising public agency clients includes the financial structuring and
issuance of a wide variety of debt instruments.under numerous institutional structures.
These include, among others, the issuance of Certificates of Participation (either through
lease or installment purchase agreement), Sales Tax Revenue Bonds, 'Utility Enterprise
Proposal for MCAS Tustin Business and Development Plan March 7,1996
Revenue Bonds, Tax Allocation Bonds, Lease Revenue Bonds, 1915 Act Special Assessment
Bonds, Community Facilities District (Mello-Roos) Special Tax Bonds, Multi-Family Housing
Revenue Bonds and General Obligation Bonds.
CCL CONSTRUCTION CONSULTANTS
CCL provides facilities consulting Services to facility owners, developers, property managers,
banks, government loan agencies, mortgage finance companies and investors. CCL's
analysis can focus on specific building systems or comprehensive reviews of the condition
of a property.
CCL provides evaluations of existing properties with specific emphasis on the condition of
the physical plant, requ!red repairs, deferred maintenance, reserve calculations, and
preparation of estimates of the probable costs for replacement and repair work.
CCL provides comprehensive consulting services to property investors, facility owners and
financial insttufions. These services include assessment of maintenance needs, property
deficiencies and improvement requirements; determination of probable cost of repairs and
improvements; identification of local building authority and regulatory agency
requirements; scheduling of required capital improvements and tenant requirements; and.
analysis of requirements for property conversion.
PROJECT STAFFING
SKMG will manage this assignment from its Los Angeles office. PFM will utilize senior
consultants from both its San Francisco and Newport Beach offices.
Thomas R. Jirovsky, Principal, will be the principal in charge of this assignment. Allan D.
Kotin and Ehud G. Mouchly, Principals, will be called upon for technical expertise. Ross S.
Selvidge, Manager, will be the day-to-day project manager. Additional support will be
provided from Naomi Porat, a Principal in our San Francisco office who has managed
business plans for the Ft. Ord and Hunter's Point military base reuse plans. Peter W. Miller
and Samuel L. Smalls, Senior Managing Consultants of PFM, will coordinate the financing
plan. Michael Caggiano, Vice President of CCL, will prepare the reuse cost analysis of
existing facilities. His resume is attached.
SKMG recognizes the importance of this project and commits to the following level of
availability by its Los Angeles professional staff over the anticipated five-month contract.
MCAS TUSTIN REUSE PLAN
Business and Development Plan
Project Team Organization and Management
Allan D. Kotin
Senior' Principal
Technical Advisor
(SKMG)
Local Reuse
.Authority.
Thomas R. Jirovsky
Principal in Charge
(SKMG)
Ehud G. Mouchly
Senior Principal
Technical Advisor
(SKMG)
Ross S. Selvidge
Manager
(SKMG)
I
Principal
(PFM)
I
Michael Caggiano
Vice 'President
(CCL)
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
Thomas R. Jirovsky Principal 10-15%
Allan D. Kotin Principal 10-15%
Ehud G. Mouchly Principal 0-5%
Naomi E. Porat Principal 5-10%
'Ross S. Selvidge Manager 25-30%
Chris Bergren Associate 50-60%
Thomas R. Jirovsky, Managing Principal of SKMG, has extensive experience in the
development of financial models for large residential, commercial and industrial financial .
plans for such projects as the new town of Kapolei, the 25,000-acre Summerlin community,
and the Cowell Ranch and Green Valley residential communities. He managed the MCAS
El Toro reuse analysis assignment and is a long-time resident of Orange County.
Ehud G. Mouchly, a founding principal of SKMG, specializes in financial planning for large-
scale real estate projects across the United States. He is a former manager and director of
Leisure Technology, a major home builder, and is the Vice Chairman of the' Urban Land
Institute (ULI) Community Development Council. He has written several articles on mixed-
use projects in Real Estate Review and Urban Land magazine (see copies attached in Section 6)
and has been an instructor since 1984 at the ULI Real Estate Development School.
Allan D. Kotin, a founding principal of SKMG, specializes in economic development and
public/private joint ventures. He is vice president of the National Council of Urban
Economic Development and is an adjunct professor at the University of Southern California
School of Urban and Regional 'Planning.
STATEMENT OF UNDERSTANDING
MCAS-Tustin represents a potentially valuable resource of the City of Tustin and
surrounding communities. The magnitude of development impacts require careful
planning. The financial feasibility of the proposed reuse plan is critical in developing a
successful project.
There exists an impressive list of studies that either have been completed or are in process
which address market demand, fiscal impact, infrastructure, traffic, and base cleanup issues.
'This work should provide a strong foundation for the Business and Development Plan. We
intend to Work closely with local, state and federal agencies to ensure the maximum
efficiency of our work effort. We understand the importance of completing this assignment
in a timely manner and we pride ourselves in providing our clients with prompt service and
quality work. We are accustomed to meeting tight deadlines in our due diligence work for
large institutional investors who typically have 60-day closing requirements.
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
RECENT REPRESENTATIVE WORK
San Francisco RedeVelopment Agency/Hunter's Point Naval Shipyard. SKMG, as part
of a multi-disciplinary consulting team, is currently engaged in the development of
a financial business plan for the 500-acre Hunter's Point Naval Shipyard reuse plan.
SKMG has previously completed the market analysis which recommends a 30-year ·
development schedule incOrporating demand for 4 million square feet of industrial,
commercial and cultural/educational uses.
Contact: Alan Loving, San Francisco Redevelopment Agency, (415) 479-2494
City ofMarina/Ft. Ord Housing Plan. SKMG recently completed a financial plan for
the transfer of 1,200 former Ft. Ord Army housing units to the City of Marina in
anticipation of an economic development conveyance request. SKMG has
recommended a financial structure to the Army that eliminates up-front cash
payments, but which includes a participation in net property sales.
Contact: Dick Goblirsch, Director of Community Development, (408) 384-3715 x7700
Monterey County/Fort Ord East Garrison. SKMG is currently assessing the market
opportunities and financial feasibility of a conference center, retreat or resort
development at the 200-acre Fort Ord East Garrison area. The analysis of the
conference center includes an assessment of the spin-off opportunities that may be
generated by the University of California, Santa Cruz proposed Monterey Bay
Environmental Studies and Technology Center which will be adjacent to the East
Garrison area.
Contact: Jim Cook, Project Manager, (408) 755-5065
General Services Administration/Mather Air Force Base/Sacramento. conducted
comprehensive highest and best use study of a 5,700-acre military base scheduled for
closure. Assessed regulatory environment at federal, state, and local levels. Evaluated
public sector demand for air field, schools, parks, and other uses. Evaluated private
sector demand for office, residential (single-family, multifamily, and senior
apartments), industrial, retail, golf course, and hospital uses. Developed preliminary
master plan for reuse of the base, incorporating highest and best use conclusions by
parcel for the entire site. ·
Contact: N/A
Berg-Revoir/Hamilton Field Air FOrce Base/Marin County. Conducted a market study
for this 400-acre multi-use project in Novato that included apartment and owner-
occupied residential, office, light industrial, and retail uses. Analyzed demand,
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
supply, absorption, rents, selling prices, and market profiles for each portion of the
development. Assessed the potential for synergy generated by the project's
complementary uses and high profile. The study was used for project planning and
for presentation to potential joint venture partners.
Contact: Skip Berg, Principal, (415) 381-6843
City of Laguna Niguel/El Toro MCAS Economic Analysis of Reuse Alternatives. In 1994
SKMG headed a team of consulting firms that was retained by the City of Laguna
Niguel on behalf of the South County Cities Working Group to examine alternative
reuse options for the 4,700-acre El Toro Marine Corps Air Station facility that is
scheduled to close in 1999. The team also evaluated market and financial feasibility
of a proposed commercial airport.
Contact: Tim Casey, City Manager, (714) 362-4300
American Nevada Corp./Green Valley Financial Feasibility. SKMG developed an
integrated life-of-project model for development of a mixed-use but primarily
residential community in southern Las Vegas. Financial projections integrated and
allocated infrastructure costs, market inputs, period expenses and sales costs to derive
long-term projection of revenues, financing requirements, cash flow and profitability.
These projections were also used in support of a $30 million bond offering related to
the formation of a local improvement district.
Contact: Eric A. Traub, President and CEO, (702) 458-8855
Ford Motor Land Corporation/Koll Company. SKMG performed a market and
financial feasibility study pertinent to the redevelopment of Ford's 157-acre Ford auto
assembly plant site in Milpitas. The market analysis component of the assignment
focused on the property's suitability for multifamily housing and R&D development
and included recommendations regarding the amount of land required for each use
in order to maximize the site's assets. Ford ultimately seeks to dispose of the
property, so SKMG's analysis focused on a land development scenario, with parcel
sales to housing developers and industrial end-users. Accordingly, SKMG developed
absorption and land valuation estimates and performed a discounted cash flow
analysis of the land disposition program.
Contact: N/A
City of Kapolei / Feasibility Analysis and Financial Systems. SKMG services included
business planning, financial analysis, life-of-project modeling and projections for
Phase 1 of a 5,000-acre mixed-use project which has been designated by the State and
County Government as "The Second City" of Oahu. The site, on the Ewa Plain west
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
of Honolulu, will eventually consist of a 270-acre town center and regional mall, a
1,000-acre business park and 3,000 acres of residential uses. SKMG's work has been
used for internal management decision-making, trust beneficiaries' analysis, lease vs.
sale and asset valuation for disposition purposes.
Contact: Michael Warren, Land Development Manager, (808) 674-3290
Northridge / Proposed North Campus University Park Neighborhood Shopping Center.
SKMG, as part of a multi-disciplinary team, evaluated the feasibility of development
of a 65-acre parcel owned by the non-profit development corporation and adjoins Cal
State Northridge. Currently occupied by a stadium, a large parking and a unused
dormitory, this parcel has substantial potential for a wide range of commercial
development. Most specifically, the northern 16 acres along Devonshire Boulevard
represent an .attractive retail site currently under negotiation with Smith's Foods at
the same time as the balance of the site is being planned and analyzed by the
consulting team. The SKMG role involves the integration of market research and
financial considerations into an overall financial model indicating potential
profitability to the developer and supportable land rent revenue payable to the
University's non-profit corporation. Again, much of the analysis focuses on those
elements which are financeable and the key elements of balancing feasibility with
University needs for ground rent revenue. SKMG's services in this context specifically
focused on the determination of residual land value, its sensitivity to considerations
of lease terms, tenant mix and debt financing.
Contact: William Chatham, VP Facilities Planning, (818) 885-2561
Catellus Development Corporation/Santa Fe Railyard Fiscal Impact and Benefits
Sharing Analysis. The former Santa Fe Railroad Railyard occupies a 35-acre site
adjoining the key downtown area of Santa Fe. Catellus Development, successor to
Santa Fe Railway Real Property Division, was seeking to develop this property as the
largest mixed-use project in the city and the first to take advantage of its new
redevelopment plan. SKMG was retained to develop an overall financial plan for the
project, undertake a detailed fiscal impact analysis, and suggest methods by which
some of the substantial benefits the project could create could be captured by Catellus
to reduce development'costs. SKMG developed a detailed financial plan considering
all the proposed uses such as' housing, retail, parks, public and private offices, and
hospitality uses. The analysis was carefully integrated with a new fiscal impact fee
program that the City had just designed. The financial analysis and fiscal impact
analysis were modeled in an integrated fashion to determine what level of assistance
was required to achieve specified levels of return and the extent to which these levels
of assistance might erode the benefits that the Project would create for the City.
Contact: Bryan Marsh, Project Manager, (505) 986-1609
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
Chevron Land and Development Co./The Ontario Center Financial Feasibility Analysis.
Financial services consulting on this 590-acre mixed-use project (8,000,000 square feet
of commercial uses and 3,000 residential and hotel units) resulted in a financial model
of the project and advice on market absorption, product mix, parcel sale strategy and
financial strategies designed to maximize financial performance.
Contact: N/A
Xerox Realty/Financial Modeling System for Lansdowne. SKMG's services included
business planning, financial analysis, life-of-project modeling and projections for a
2,700-acre mixed use project adjacent to Dulles International Airport. In addition to
a 170-acre Xerox training facility, the project consists of 1,700 residential units, two
golf courses, a conference center, 7 million square feet of office and business park
space and a retail center. SKMG's work was used to test alternative development
scenarios prior .to final zoning application, to support internal capital budgeting and
external.debt financing requests, and to establish disposition values to third parties.
Contact: N/A
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
II. PROJECT TIMETABLE
SKMG recognizes the importance of completing this assignment in a timely manner. The
attached schedule outlines our anticipated work schedule by week over ~he five-month
maximum time period desired.
10
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
III. SCHEDULE OF DELIVERABLES
Progress Report #1
Progress Report #2
Progress Report #3
Progress Report #4
Screen Check Draft Plan (7 copies)
Second Draft Plan (7 copies)
Final Business Plan (40 copies and 1 duplication master)
Background Research Material and Analysis Handoff
Implementation Strategy Memorandum
Due Date*
30 days
60 days
90 days
120 days
130 days or less
140 days or less
150 days or less
150 days or less
150 days or less
From date of contract start, defined as contract signing and delivery of existing
reports for review.
11
Proposal for MCAS Tustin Business and Development Plan March 7,1996
IV. PROPOSED WORK PLAN
Based on its extensive experience in examining proposals for large-scale, multi-phase, mixed-
use real estate development projects, SKMG has found the inherent uncertainty of future
conditions is one of the biggest challenges to producing a meaningful analysis~ This is
expected to be the case with the creation of a Business Development Plan for MCAS Tustin.
Another complicating factor specific to MCAS Tustin is the timing of the availability of land
from the Station. In order to deal with these key issues, SKMG will place particular emphasis
on the specification of alternative development scenarios which acknowledge those factors.
Special attention to these issues, combined with SKMG's exceptional skill in modeling the
financial aspects of complex real estate development programs, will assure that the City
receives a Business and Development Plan which is both useful as a guide for public policy
decisions for the actual implementation of the reuse program for the Station.
1. REVIEW OF EXISTING AND IN-PROGRESS REPORTS
Whatever development plan is eventually undertaken,, it will succeed or fall short of
expectations based largely on the extent to which it is responsive to market factors.
Consequently, the Market Analysis and Demand Forecast report which has already been
completed will be the most important source of data on which projections of different land
uses over time will depend. The Draft Specific/Reuse Plan will provide the context within
which the demand for various types of land uses can be accommodated on the Station. Of
course, SKMG will review all existing reports outlined in Attachment C of the RFP.
SKMG will work closely with the LRA staff, various state and federal agencies, and local
economic development groups to utilize all existing studies and work products to mOst
efficiently understand the underlying factors which will affect the Business Plan. If in our
review of other prior studies we determine that substantive information is lacking, we will
notify the LRA immediately and propose an additional scope of work to be performed if no
immediate solutions are available.
The reports on the condition of existing military housing, other general purpose buildings
and the blimp hangers will make it possible to tailor the Plan to take maximum advantage
of the value of the Station's existing facilities. Because the allocation of the costs of
infrastructure to the development is essential, the Community Facility and Infrastructure
report will provide critical input.
12
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
As input to Task ~, 4 and 5, the LRA has already identified the need for the Consultant to
review, refine and/or update market and financial absorption forecasts contained in "Market
Demand Forecasts" prepared by ERA in November 1993.
Deliverables:
SKMG will submit seven copies of a written report outlining any questions or open issues
that may need further analysis, as well as providing a technical memorandum on review and
refinement of market absorption forecasts.
2. ANTICIPATED PROPERTY DISPOSAL PROCESS
Drawing on our experience in prior reuse analyses, SKMG will consult with the LRA staff in
identifying the particular parcels which are candidates for public uses and conveyance to
public agencies. Where there are constraints'to a sponsoring agency meeting LRA conditions
for transfer to a public agency, certain public use parcels will be examined as possible
economic development conveyances. Of the remaining parcels, those which are particularly
suited as potential sites for economic development conveyances will be identified and
various means of conveyance explored. Those parcels will then be examined to determine
which would be more suitable for private sale rather than a conveyance to the LRA.
SKMG and City staff will also evaluate the existing personal property that could be useful
to the redevelopment plan and any additional equipment required for maintaining the
existing facilities that are deemed to be reusable.
The 1995 Recommended Disposal Plan contains 41 separate parcels. The City RFP presents
a division of 22 planning areas for various land uses. SKMG will correlate this information
and format it in a manner to allow for appropriately sized development parcels for sale to
builders. Our analysis will consolidate those parcel locations that are within the city limits
of Tustin and Irvine.
Deliverables:
SKMG will submit seven copies of a written report and exhibits as needed summarizing the
results of this task.
3. PROTOTYPE DEVELOPMENT SCENARIOS
The prototype development scenarios will be based on the combined influences of the factors
in the market and demand analysis (as refined and updated), the anticipated availability of
land, and the need for supporting infrastructure. The vagaries of the real estate market, the
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
need for toxic and hazardous materials clean-up and other elements inject varying amounts
of uncertainty into this process. Drawing on its extensive background and experience in
dealing with similar types of contingencies in analyzing long-term development programs,
SKMG will weigh the uncertainties involved in arriving at a specification of a representative
set of possible scenarios.
Particular care will be taken in defining each scenario because they will greatly influence the
financial projections and relative benefit to the City of alternative plans. To the extent
existing plans or studies already include explicit or implied schedules of development,
SKMG will review the assumptions on which they are based. Where SKMG considers it
advisable, adjustments will be recommended and incorporated into the new scenarios.
Deliverables:.
!
SKMG will submit seven copies of a written report summarizing the results of this task.
4. COMPREHENSIVE DEVELOPMENT AND OPERATING PRO FORMA
The usefulness of any pro forma analysis of a real estate development program depends on
the extent to which the complicated relationships between the various cost and revenue
elements are correctly specified. SKMG has successfully modeled many large development
programs. These have ranged from entire new planned communities with multiple land
uses requiring a full complement of new supporting infrastructure'to redevelopment projects
needing to fit into tightly defined pre-existing constraints. These analyses have dealt with
long and short lead times and the different impact they have on the many pre-development
costs, for which provision must be made. Other complicating factors Which SKMG has
modeled include intricate phasing scenarios contingent on a variety of market factors and
alternative debt structures ranging from conventional mortgages to a variety of bond
programs.
SKMG will prepare detailed pro forma cost and revenue estimates for each development
land use identified for the project. SKMG utilizes Marshall & Swift Valuation Services,
BOMA and IREM Income/Expense reports, as well as its own in-house expertise to derive the
input Values for variables such as construction costs, eXpense ratios and soft costs.
/
Preliminary Review of Projects and Costs
PFM will assist SKMG in a review of the proposed reuse plan projects, including their tax,
legal and credit implications, which will establish the parameters for moving forward. In the
event that there are any proposed tenant lease agreements with the City, as well as other
operations and management agreements, PFM will review and evaluate the financial
sufficiency of these revenue streams. Finally, the projects, the cost estimates, and their
14
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
construction schedules will be reviewed. We will evaluate the estimates and schedules for
reasonableness and thoroughness. Each of these items may raise issues which will affect the
appropriate financing options available. PFM will also assist SKMG in designing a flexible
financial model so that the City can evaluate different scenarios of revenue and cost
estimates, inflation rates, and financing alternatives.
Evaluate Reuse Potential of Existing Facilities
SKMG and CCL will evaluate all existing buildings for their reuse potential. For those
buildings deemed to be economically reusable, CCL will prepare rehabilitation cost
estimates.
Residual Land Value
Utilizing the above cost and revenue estimates, SKMG will use its in-house residual land
models to determine the price at which the private sector could reasonably afford to pay for
each land use site. SKMG will then illustrate the resulting return on investment to the
developer assuming the land acquisition price as calculated above to validate the financial
feasibility of development.
Cost Allocation
Based on a review of the. City's Community Facilities Report, SKMG will determine a fair
share cost allocation to all marketing parcels with particular attention to the Tustin and
Irvine jurisdictions. The cost burden established for each parcel will incorporate an
evaluation of its impact on the parcels' competitive marketability.
Deliverables:
SKMG will submit seven copies of a written report summarizing the results of this task.
5. MARKET AND FINANCIAL FEASIBILITY
SKMG will develop a financial model to examine individual sites in detail in the event that
the LRA decodes to seek various economic development conveyances from the Navy. The
model will include the following components:
1,
Development timetable and phasing plan;
,
Cash flow analysis for a 20-year time period;
3. Infrastructure cost estimates and justification;
15
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
4. Local investment and financing strategies; and
Be
Market and financial'feasibility analysis to determine fair market value and
proposed consideration to the Department of Defense.
6. Preliminary market appraisal information will be
assumptions.
used to validate
Alternative Financing Options
PFM will use the financial model developed by SKMG as a basis for conducting certain
alternative financing scenarios. Some of those alternatives include redevelopment, Mello-
Roos special benefit assessment and COP/lease financing structures.
PFM has been called upon to develop Comprehensive financial plans for the nation's largest
cities, transportation programs, and public utilities programs as well as for smaller cities,
local transportation improvement plans and small utility systems. This experience has given
PFM crucial insight into the "real world" requirements of today's municipal entities. This
experience has also given the firm the knowledge and the ability to evaluate.all available
financial, legal, engineering and economic data, such as funding plans and
economic/demographic projects, in the light of experience from other parts of the country.
Moreover, this experience has given us insight into the political implications of different
scenarios and the sensitivity necessary to accomplish the ultimate goal of any improvement
program.
The finance plan is designed to be a flexible guide, providing a "road map' for the most
effective completion of an expenditure plan. Because construction schedules, project costs,
and local project priorities may change during the course of the reuse program, the Plan of
Finance is designed to adapt to these changes to reflect these new circumstances.
In addition, the plan is designed to provide a framework, wherein these changes in project
scheduling, interest rates, revenues and project costs may be tested to determine their effect
on the overall program. The goal of the plan is to identify the most efficient and effective
project funding plan for each of our clients. Typically) PFM evaluates seVeral alternatives
for project delivery in its financing plans. The two primary alternatives are a pay~as-you-go
scenario and a scenario utilizing debt financing.
If, after mating the timing of construction schedules and receipt of revenues on a pay-as-you-
go basis, there are still capital funding deficits, PFM will determine which alternative
financing options may be available to spread out construction costs over time. PFM will
evaluate the benefits and costs of each option and make a recommendation for utilizing one
or more financing strategies. The key to the success of these financing options will be the
creativity of leveraging different revenue streams.
16
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
PFM's involvement in this critical area of urban development has included traditional
financings involving the use of tax-exempt bonds as well as the merging to global funding
techniques such as tax benefit transfers, vendor financings, export credits, leveraged leasing,
joint development and privatization. Some innovative financing options related to base
reuse plans include but are not limited to redevelopment financing, 501(c)(3) project
financing, economic development/industrial development financing, joint development
(public-private financing), multijurisdictional development, and private financing (such as
bank or insurance loans).
Federal, State and Local Funding Sources
There are a significant number of government assistance programs that are targeted at
individuals, communities and industries in transition due to military base closure and
realignment. These programs were. specifically designed to assist in the transition from
defense to civilian use of former military property. PFM has researched this issue and has
compiled relevant information to assist communities struggling to ease the defense
conversion process.
While there are a variety of federal, state and local programs, it is important to determine
how each source can be best used to achieve the community goals. The following
description identifies the types of assistance each level of government provides in funding
and administering transition programs:
Fede,ral Funding
This typically describes large programs that provide training and economic development
assistance. Many federal programs are intended to serve as a "safety net'.for individuals.
In many cases, those programs provide the primary source of funding and structure for
service delivery. Federal assistance programs for industry are intended to promote
technology transfer and development.
State Funding
These programs include specific state-level initiatives for defense conversion planning along
with more general state programs promoting industrial development and worker training.
In many cases; the state programs work in conjunction with federal programs to provide
service delivery and to distribute federal funds.
Local Funding
This includes local programs that focus on economic development and employment. Many
local programs work in conjunction with state and federal programs to provide services
specifically tailored to meet the needs of the local community. Also included under this
17
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
category are the variety of financing mechanisms that could be. used to finance construction
or capital improvements of facilities on former base property.
PFM and SKMG will work with the City to determine which federal, state and local funding
sources are appropriate and available for the potential reuse options being considered.
Economic Conveyance
Based on the financial model created for the previous tasks, SKMG will determine the
financial feasibility of the Plan under a number of different assumptions about the allocation
of infrastructure costs. Incorporating market-based development parameters, the residual
value of the land will also be computed. The residual value having been computed, a
schedule will be proposed by which the City would pay the Department of Defense for the
land requested under any Economic Conveyance Application.
Deliverables:
SKMG will submit seven copies of pro formas illustrating the financial feasibility of each
component and the consolidated project.
6. BUSINESS AND DEVELOPMENT PLAN
The Business and Development Plan will draw from the existing studies where necessary
and the final document will include the following elements:
1. Purpose and scope of study;
2. Executive summary;
3. Location and context of study areas (on-base and off-base);
4. Inventory of all data collected and analyzed;
Be
Development timetable, phasing plan and cash flow analysis over a 20-year
period;
6,
Cost estimate and justification for infrastructure and other investments needed
for development;
7. Market and financial feasibility analysis;
8,
Fiscal impact of the development plan on the community;
,
18
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
e
Analysis and recommended consideration to the Department of Defense for
any Economic Development Conveyances; and
10.
Local investment required and proposed financing strategies.
Deliverables:
SKMG will submit seven copies each of a screen check draft plan .and a second draft plan,
and 40 copies of the final business plan.
7. IMPLEMENTATION STRATEGY
The implementation of the Development Plan will require ongoing asset management effort
by the City. It can range from a relatively passive involvement--whereby the City utilizes
a master developer to oversee all development activities--to a very active role in which the
City creates the internal staffing necessary to coordinate the orderly disposition of individual
parcels to private developers.
SKMG has had extensive experience in this area assisting counties, cities and other
governmental agencies in the transfer of real estate or its conversion to other uses. This
experience includes creating disposition schedules, drafting requests for development
proposals for land being sold or put up for long term leases, establishing evaluation criteria
for. responses, performing due diligence on prospective developers and other tasks related
to helping government entities accomplish variouS objectives when dealing with their real
estate assets. These activities are similar to what will be required to implement any
Development Plan for the reuse of the Station. SKMG will draw upon its experience in this
area to assist the LRA by recommending an approach which would maximize the benefits
of the reuse process.
SKMG's specific work elements will include:
Meeting with staff and reviewing all prior considerations on organizational
structures to implement the reuse plan, including the role of the
Redevelopment Agency regarding a redevelopment project area for the base;
Conducting a review of organizational structures used for comparable base
closure and reuse programs, nationally and in California such as joint powers
agreements, non-profit corporations and special development authorities;
Considering the feasibility of the following options for reuse of MCAS Tustin:
19
Proposal for MCAS Tustin Business and Development Plan March 7, 1'996
Utilization of a primary developer to oversee and take responsibility for
the development of the site(s), either as an active developer or though
the hiring of subdevelopers or subcontractors to complete the
specialized phases of the project;
Creation of an internal development solicitation and implementation
process, including issues of staffing and skill requirements;
Utilization of a development advisor who would be responsible for
contracting out the development and construction management of the
entire parcel to one or more developers; and
· Other alternatives that may be deemed appropriate.
Based on the above, SKMG will recommend the appropriate role for the LRA
or private developer in the MCAS Tustin reuse implementation process.
Deliverable:
SKMG will deliver seven copies ora written report'summarizing our analysis and
recommendations.
20
Proposal for MCAS Tustin Business and Development Plan March 7, 1996
V. COST PROPOSAL
SKMG, CCL and PFM have prepared a proposed fee schedule by task that includes hours
by category; hourly rates which include overhead and profit; and all other costs.
This budget estimate, as shown in detail in Exhibit 1, totals $99,930 for the professional fees
and reimbursable expenses related to the scope of work outlined in Section 4. Additional
tasks that are requested will be charged based on our standard public agency billing rates,
which are illustrated below for the individuals assigned to this project.
Reimbursable expenses include data acquisition, travel (airfare, car rental, hotel and other
related costs), telephone calls, fax machine usage, postage, delivery and other incidentals, all
at cost with no mark-up.
RATE SCHEDULES
Sedway Kotin Mouchly Group
Thomas R. Jirovsky
Allan D. Kotin
Ehud G. Mouchly
Naomi E. Porat
Ross S. Selvidge
Chris Bergren
Public Financial Management, Inc.
$150 per hour
$160 per hour'
$160 per hour
$140 per hour
$120 per hour
$75 per hour
Peter W. Miller
Samuel L. Smalls
CCL Construction Consultants
$175 per hour
$175 per hour
Michael A. Caggiano
$150 per hour
21
Proposal for MCAS Tustin Business and Development Plan . March 7, 1996
PROPOSED CONTRACT TERMS
Billings will be sent monthly and are due within 30 days. Any unpaid balance is due upon
delivery of the final report. SKMG reserves the right to charge interest on bills not paid
within 30 days at the rate of 18% per annum. In the event of a legal dispute, attorneys' fees
will be paid by the non-prevailing party.
During the course of this assignment, if progress is stopped or delayed due to reasons
beyond our control, it will be necessary to bill for any excess work at our current hourly rates.
Such excess work could result from inefficiencies such as assessing changes in market
conditions, updating research, and other factors. SKMG will notify you immediately upon
learning of such a situation, and will not proceed without your specific written
authorization.
You may terminate the services of SKMG at any time by written notice to SKMG. SKMG
may withdraw with cause from the assignment by giving written notice to you. In either
such event, you will pay SKMG on a prorated basis, and you will reimburse SKMG for
reimbursable expenses advanced by SKMG on your behalf.
You agree that all information and data received from SKMG and its subcontractor(s),
whether oral or written, shall be solely for your use and is not to be relied upon by any third
party or parties without the prior written approval of SKMG. SKMG disclaims any and all
responsibility to third parties deriving from the use of such information or data.
C:~FILES\TUS5619~WI~PROPST3.TRJ:bb
22
CLIENT:
DESCRIPTION:
TASK DESCRIPTION
REVIEW OF EXISTING REPORTS
EXHIBIT 1
COST ESTIMATE
MCAS TUSTIN
BUSINESS AND DEVELOPMENT PLAN
< ............... HOURS ................ >
PRIN. MGR. ASSOC. OTHER
$160 $120 $70 $45
TOTAL
HOURS
SKMG
FEE
BUDGET
PFM & CCL
BUDGET
OTHER
COSTS
07-Mar-96
TOTAL
BUDGET
1.0 KICKOFF MEETING 4 4 0 0 8 $1,120 $1,000 50 $2,170
1.1 REVIEW EXISTING REPORTS 4 4 12 0 20 1,960 0 0 1,960
1.2 UPDATE MARKET RESEARCH 4 12 28 0 44 4,040 0 0 4,040
1.3 PROGRESS REPORT 2 4 8 4 18 1,680 0 50 1,730
SUBTOTAL TASK 1 14 24 48 4 90 $8,800 $1,000 $100 $9,900
PROPERTY DISPOSAL PROCESS 2.0 IDENTIFY AVAILABLE SITES
2.1 EVALUATE PERSONAL PROPERTY REQ.
2.2 PROGRESS REPORT
SUBTOTAL TASK 2
0 2 8 0 10 $800 0 50 $850
0 4 16 0 20 1,600 0 0 1,600
2 4 0 4 10 1,120 0 50 1,170
2 10 24 4 40 $3,520 $0 $100 $3,620
PROTOTYPE DEVELOPMENT SCENARIOS
3.0 PREPARE DEVELOPMENT TIMETABLE 2 8 0 0 10' $1,280 0 0 $1,280
3.1 INFRASTRUCTURE ANALYSIS & ALLOC. 2 6 8 0 16 1,600 0 0 1,600
3.2 REFINE DEVELOPMENT SCHEDULE 2 4 8 0 14 1,360 0 0 1,360
SUBTOTAL TASK 3 6 18 16 0 40 $4,240 $0 $0 $4,240
COMPREHENSIVE DEVELOPMENT PRO FORMA
4.0 DEVELOPMENT ASSUMPTIONS FOR SITES 4 8 24 0 36 $3,280 0 0 $3,280
4.1 EVALUATE BLDG REUSE POTENTIAL 4 8 0 0 12 $1,600 15,000 0 $16,600
4.2 OPERATING ASSUMPTIONS FOR SITES 4 8 24 0 36 3,280 0 0 3,280
4.3 DETERMINE RESIDUAL LAND VALUES 8 16 24 0 48 4,880 0 0 4,880
4.4 PROGRESS REPORT 2 4 8 4 18 1,680 0 50 1,730
SUBTOTAL TASK 4 22 44 80 4 150 $14,720 $15,000 $50 $29,770
MARKET & FINANCIAL FEASIBILITY
5.0 DEVELOP FINANCIAL MODEL 12 24 80 0 116 $10,400 0 0 $10,400
5.1 PROJECT CASH FLOW ANALYSIS 8 16 64 0 88 7,680 0 0 7,680
5.2 TAX BURDEN ASSESSMENT 4 12 0 0 16 2,080 0 0 2,080
5.3 FINANCING STRATEGIES 2 4 0 0 6 800 12,000 0 12,800
5.4 PROPOSED CONVEYANCE TERMS TO DoD ' 4 12 0 0 16 2,080 0 0 2,080
.. SUBTOTAL TASK 5 30 68 144 0 242 $23,040 $12,000 $0 $35,040
BUSINESS AND DEVELOPMENT PLAN
6.0 WRITE 1 ST DRAFT REPORT 6 8 20 8 42 $3,960 1,000 100 $5,060
6.1 WRITE 2ND DRAFT REPORT 4 8 0 4 16 1,920 0 100 2,020
6.2 PREPARE FINAL REPORT 3 6 0 4 13 1,520 0 600 2,120
SUBTOTAL TASK 6 13 22 20 16 29 $7,400 $1,000 $800 $9,200
8
8 8 0 0 16
4 8 8 4 24
8
0
340
32
16
647
OTHER TASKS 7.0 ANALYZE DEV. STRATEGY OPTIONS
7.1 WRITE REPORT
7.2 ATTEND TASK FORCE OR
CiTY COUNCIL MEETINGS (2)
$2,240
2,480
2,240
$6,960
$68,680
......
SUBTOTAL TASK 7
1,000
$1,000
$30,000
JOB TOTAL
0
100
100
$200
$1,250
210
107
$2,240
2,580
3,340
$8,160
$99,930
FILE: TUS..MCAS.WQ1
EXHIBIT "B"
City's Request For Proposal
REQUEST FOR PROPOSAL
BUSINESS AND DEVELOPMENT PLAN
FOR
THE PROPOSED MCAS, TUSTIN REUSE PLAN
CITY OF TUSTIN
300 Centennial Way
Tustin,. California 92680'
II.
REQUEST FoR PROPOSALS
The City of Tustin is requesting proposals from qualified firms or individuals to develop
a Business and De. velopment Plan for the proposed Reuse Plan for Marine Corps Air
Station (MCAS), Tustin which is scheduled to close as early as July 1, 1997 but no later
than July 1, 1999.
BACKGROUND
,A.
General Background
MCAS - Tustin was originally recommended for closure and disposal by the U.S.
Secretary of Defense's Commission on Base Realignment and Closure (BP, AC)
in 1991. The U.S. Congress and President endorsed this recommendation. With
the 1991 BRAC action MCAS - Tustin was anticipated to close by July, 1997.
However, in 1993 the BRAC reconsideration of the MCAS - Tustin closure and
redefinition of realignment receiving bases for the closure, may result in portions
of the base not being disposed of until July 1999 (existing housing areas).
MCAS, Tustin is located Primarily within the City of Tustin, with approximately
80 acres at the southwestern portion of the base in the. City of Irvine. The
Department of Defense has recognized the City of Tustin as the local
Redevelopment Authority (LRA) for the reuse planning for MCAS, Tustin.
The City of Tustin, with assistance from a multi-jurisdictional Base Closure Task
Force, is currently finalizing the development of a Reuse/Specific Plan for
MCAS, Tustin which will guide future conversiOn and economic development of
the base and encourage the revitalization of the surrounding communities which
continue to be negatively impacted by the pending closure of MCAS; Tustin. A
copy of the Proposed R~use Plan and a statistical summary of proposed land uses
is included as Attachment A.
The National Defense Authorization Act for Fiscal Year 1994 provides the LRA
with the option of requesting title to surplus military property. Current,
Department of Defense Interim Rules issue~ on October 26, 1994 (Attachment B)
provide the LRA with the option of asking for property at or below fair market
value through an Economic Development Conveyance (EDC). The purpose of
an EDC is to foster economic development and the' creation of jobs and to
enhance economic recovery of areas negatively impacted by base clOsure. One
part of the application is the requirement for preparation of a Business and
Development Plan. Department of Defense interim rules require the Plan to
include the following:
A development timetable, phasing plan and cash flow analYsis.
1
Be
A market and financial feasibility analysis describing the economic
viability of the project, including an estimate of net proceeds over a
fifteen year period, the proposed consideration or "payment to the
Department of Defense, and the estimated fair market value of the
property.
A cost estimate and justification for infrastructure and other investments
needed for the development of the EDC parcel.
Local investment and proposed financing strategies for the development.
Purpose of Business and,Development Plan
Based on the economic and financial analysis provided in the Business and
Development Plan, the LRA will decide whether to seek one or mOre economic.
conveyances of portions or all of the Base. If the LRA decides to seek an
EDC(s), the Business and Development Plan will become an integral part of that
application. In addition, the document will be a critical resource document for
planning and administration purp6ses as well as for securing much needed loans,
financing and bonds necessary to offset the significant infrastructure improvement
costs which must be accommodated for economic developm6nt to occur at the
Base.
The LRA is also interested in rapidly transferring .the Base for reuse by the
private sector. Regardless of whether an EDC application is submitted or
whether the Department of the Navy approves an EDC request by the LRA, a
Business and Development Plan is desired to assist in making the application
decision and in making further business decisions relative to property disposal at
the Base.
Due to its limited personnel resources, the LRA is seeking professional consultant
assistance in developing the required Business and Development Plan.
The Business and DevelOpment Plan shall examine, all factors affecting the sites
which the City may request under an application for an EDC as required by the
regulations of the Department of Defense. By analyzing each of these sites and
aggregating the f'mdings, an overall Business and Development Plan which
complies with the requirements for an EDC application would be developed.
The Business and Development Plan shall include all of the requirements
identified by the DoD for the Business and Development Plan (described above)
and additional information identified in the Scope of Work. It is also anticipated
that the Business and Development Plan would need to analyze and report .on the
following anticipated and proposed development types:
2
Residential Development
1. Short term and permanent use of existing military residential units.
2. New residential development proposed by the Land Use Plan.
.
Reuse will also include units allocated for transitional housing and
affordable housing purposes. The consultant should understand and
evaluate the limit this will place on the economic development potential
of some of the existing dwelling units.
Golf Course Development Golf course and hotel resort development proposed
by the Land Use Plan.
III.
Commercial/Industrial Business Development:
le
Short term and permanent use of existing military hangars, warehouses
and other buildings currently on site with reuse potential.
2. New construction proposed by the Land Use Plan.
Other Development Opportunities:
1. Anticipated public uses proposed by the Land Use Plan.
The 6ontractor selected to develop the Business and Development Plan will use existing
documentation akeady prepared by and/or for the Re-Use effort. It may be necessary
for cbnsultant to supplement this information with their own research and studies. The
Consultant will be expected to work closely with LRA staff in the production of the
Business and Development Plan. In addition, the Consultant must also be able to work
with State and Federal agencies, including conSUltants employed by the Department of
Navy and/or Department of Defense; and must be aware of local economic and
community development activities to avoid duplication of work and take advantage of '
work products of these various agencies/groups.
SCOPE OF WORK
A proposed Scope of Work for the proposed project has been prepared and is included
as (Attachment C). The scope of work outlines an approach for development of a
Business and Development Plan and determining re-use value for the base property.
Firms submitting proposals may use this model or may outline their own recommended
approach or model to achieve the same result.
IV.
SCOPE OF PROPOSALS
A. Request for Proposals Process
The City, at its sole discretion, may reject any and or all proposals submitted in
response to this RFP. The City shall not be liable for any cost incurred in
connection with the preparation and submittal of any proposal.
In the event the City accepts a proposal, an agreement may be entered into with
the proposer who has submitted the proposal deemed to be in the best interest of
the City. Selection of the best proposal(s) will be made on the basis of the
criteria set forth in this RFP. The City reserves the right to negotiate the final
terms of any agreement(s) with one or more of the highest rated, responsible
proposers. Proposers are cautioned that any response to their RFP shall not be
considered a "bid" pursuant to the Public Contracts Code of the State of
California.
Subsequent to advertisement and solicitation of proposals by the City, proposals
shall be received and evaluated. Thereafter, a f'mal contract may be
recommended to the City Council for its approval.
B. Notice to Proposers Regarding the Public Records Act
Documents submitted in response to this RFP are sUbject to public disclosure as
permitted by the California Public Records Act. Specifically, responses to this
RFP become the exclUsive property of the City of Tustin. At such time as the
City Manager recommends approval of an agreement to the City Council, and'
such recommendation appears on the Council's agenda, all proposals submitted
in response to this RFP become a matter of public records and shall be regarded
as such. Exceptigns will be thoSe elements in each proposal which are trade
secrets as that term is def'med in California Government Code Section 6254.7 and
which are so marked as "Trade Secret", "Confidential", or "Proprietary".. The
City'shaH not in any way be liable or responsible for the disclosure of any such
records including, without limitation, those so marked if disclosure is deemed to
be required by law or by order of the Court. Proposers. who indiscriminately and
without-justification identify all or most of their proposal as exempt from
disclosure may be deemed unresponsive.
C. Representations
le
The "City will not be bound by any representations that are not set forth
in the RFP, and any final agreement.
IIe
.
The Proposer is responsible for making all necessary investigations and
examinations of documents, operations and premises affecting
performance. Failure to do so will not act to relieve any condition of the
above documents. It is mutually agreed that the submission of a proposal
shall be considered conclusive evidence that the proposer has made such
investigations and examinations.
.
Any reasonable inquiry to determine the qualifications of a propoSer may
be conducted. The submission of a proposal shall constitute permission
by the proposer for the Civ./to verify all information contained therein.
If the City deems it necessary, additional informatiOn may be requested
from the proposer. The failure of a proposer to promptly supply
information in connection with such inquiry, including but not limited to,
information regarding past performance, and ability to perform on
schedule, may be disqualification from further consideration.
.
The proposer may withdraw its proposal at any time prior to the date and '
time which is set forth herein as the deadline for receipt of proposals,
upon written request for same.
.
The City reserves the right to consider a late proposal. However, shoul'd
that happen, all timely responsive respondents shall be given an additional
period of time equivalent to the late submittal with which to supplement
and/or modify the proposals that were submitted on time..
INSTRUCTIONS TO PROPOSERS
A. Proposals Deemed Responsive to this RFP
The Proposer's response to the RFP must be made according to the specifications set
forth.in this section, both for content and sequence.
Any proposal failing to comply with said specifications and therefore deemed to
be non-responsive shall be subject to rejection by the City.
B. Submittal Requirements/Proposal Contents
.
Proposer's Business Experience and Qualifications
ao
The proposer shall provide a list of the firms and professionals
proposed to be assigned to this project, their academic background
and their experience on other similar projects. The list will
include the percentage of each person's time the proposer is
willing to commit to this project.
bo
Co
The proposer shall provide a list of studies similar to this one
completed by the proposer during the past 5 years, along with a
reference for each of these projects, including current addresses
and .telephone numbers. Project descriptions will clearly explain
what role the proposer and team members performed on the
project.
The City will be selecting a proposer with the specialized
experience and technical competence necessary to complete the
services required ina manner consistent with the complexity of the
project. Consideration for proposer selection will also be given to:
1)
team members' records of successful performance on
contracts with other jurisdictions, agencies and/or other
clients including factors such as cost control, work quality,
and demonstrated ability to meet deadlines; experience in
the Orange County/Los Angeles real estate market, as Well
as national and/or international experience in providing
development advisory assistance for large scale projects is
desired;
2)
team members' current and planned workloads and the
commitment of the project manager and key team members
to dedicate significant time to the project;
3) location of team members;
4) utilization of MBE/WBE finns and/or personnel;
5)
ability of the assigned project manager and key personnel
to make effective public presentations; and
6)
ability of team members to work with the LRA and City
staff.
6
.
.
.
Project Timetable.
The proposer shall provide a project timetable, in weeks, for the project. All
work products shall be completed and submitted no later than 5 months after
contract start.
Deliverables Summary and Schedule
A summary action should list all the deliverable items in sequential order.
Precise due dates for each deliverable should be included here. All daies should
be expressed as commencing on the date of contract award and thereafter based
on lapsed time days.
Proposal for Professional Service/Work Plan
Each Proposer shall submit a work plan that will serve as a 'proposal for duty
~signments and which describe the general approach and strategy to accomplish
the project. Proposer should indicate the professional services they would
provide for a complete and acceptable project. Proposer should also provide a
list of activities they propose to be carded out by or in conjunction with the
City's staff. Proposer responses should include at a minimum.
ao
a work schedule in chart form and the time schedule for completion of
each task and the project.
b.
identification of the firms that will be involved in the project, and key
proposer personnel who will participate in the' project; and
Co
budget in person-hours with specific task completion'dates for each
activity.
The proposer response should contain each task with an explanation of how the
proposer plans to approach the task and-the steps that will be taken to complete
the task. Proposers should be cautioned that a mere.repetition of the tasks taken
from the'scope of work section will not be considered responsive to the RFP.
Proposers must demonstrate that they understand both the magnitude and the
importance of each individual task and make a convincing proposal. If an
analysis model other than the one contained in the scope of work is proposed to
be used, a description of the recommended model shall be'provided.
A cost estimate for the project.
following information:
The cost proposal should contain at least the
7
a)
b)
c)
The cost for the entire project broken down by the activities or steps
shown on the project schedule.
Estimated periodic billing to the City based upon the cost of certain tasks
and/or product deliverables.
Cost or pricing totals must be shown by task. This will include:
Hours by category, hourly rates and total labor broken out by
professional and other labor. Rates are to include all overhead and
profit.
Travel, lodging, materials and other direct expenses.
Subcontract costs.
d)
The City reserves the right to negotiate a fee arrangement with the..
consultant following the selection process
5. RepoSing
The proposer shall submit Progress Reports to the City's Project Director at the end of
each month reporting period of the contract. The reports will begin at the end of the
first month following the start of the project. The reports must be in writing and will
include:
a. a brief description of the work accomplished during the period;
b.
a description of any unusual problems or conditions encountered and any unusual
methods, materials or techniques employed;
Co
notation of any adjustments to the project work schedule; and
de
any other comments the proposer may deem appropriate.
The proPoser will be required to meet with the Project Director, as needed, to comPlete
project. The proposer will provide a representative to be available at meetings of the
Base Closure Task Force to present and discuss the Progress Reports. or f'mal report
conclusions. No more than attendance at two task force meetings .would be anticipated.
6. Turnover of Data and Analysis to City
Originals or copies of all research materials, data inventories and analyses that are
collected and prepared as part of this study will become property of the City upon
completion of the project. This will include any computer files produced as part of the
__ 8
project, and any computer software purchased in connection with the project. All such
materials, inventories, analysis, files and software must be turned over to the City's
Project Director prior to the final 10% payment of the contract.
Selection Process.
Various factors will be taken into account in evaluating and selecting a successful
proposer.
a. Experience of Team Proposed
b. Proposal Quality
c. Price
Proposals should be complete and responsive to all elements contained in this ,Request
for Proposal. The City will review and consider all proposals submitted and may
schedule interviews with a select number Of proposers. The selection committee will
likely be comprised of city and LRA project team members, MCAS - Tustin Market'.rog
Committee representatives, and Navy or Marine Corps representatives. Following
Completion of interviews, the City will engage in negotiations and complete a
Professional Services Agreement which will require approval of the Tustin City Council.
Since a portion of funding for the project is anticipated to be provided by the Department
of Defense Office of Economic Adjustment (OEA), OEA approval may be needed prior
to contract execution.
Do
E.
Preparation of Proposals
.
The proposal must be submitted typewritten on 81/2" x 11" paper and must be
'bound in a secure manner.
o
If the'proposer wishes to submit material and data which is not specifically
requested, do not include the same with the Proposal. This material should be
included in an "Additional Data" section of the submittal. The following are
examples of Additional Data:
Standard sales brochures and pictures/photographs;
Promotional material with minimal technical content;
Generalized narrative of supplementary information;
Supplementary graphic materials;
Submission of Proposals
1. The original proposal and four (4) additional copies shall be submitted..
.
.
It is the sole responsibility of the Proposer to see that the proposal is received
before the submission deadline. A proposer shall bear all risks associated with
delays in the United States Mail.
The City reserves the right to consider a late proposal. However, should that
happen, all timely responsive respondents shall be given an additional period of
time equivalent to the late submittal with which to supplement and/or modify the
proposals that were submitted on time.
F.
Deadline for Submission of Proposals
,
1. The City will receive proposals at the location indicated below:
Attn: Christine Shingleton,
Assistant City Manager
Tustin Civic Center
300 Centennial Way
Tustin, CA 92680
.
The time and date 'set.for receipt of proposals is on or before July 14, 1995 prior
to 5:00 p.m. local time.
All questions concerning the meaning or intent of this Request for Proposal or the proposed
Scope of Work should be directed in writing to Ms. Christine Shingleton, Assistant City
Manager, Community Development Department, 300 Centennial Way, Tustin, California,
92680.
CAS: kb m\mcas\b&dplan, rfp
10
ATTACHMENT A
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0121
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ATTACHMENT B
THE DEPUTY SECRETARY OF DEFENSE
WASHINGTON, D.C.'ZO$O 1
MEMORANDUM FOR SECRETARlES OF THE MILITARY DEPARTMENTS
'" RECEIVED.
CHAIRMAN OF THE JOINT CHIEFS OF STAFF [31~T 2/f l§.q/t
UNDER SECRETARIES OF DEFENSE. C0MMUNI~ DEVl. EOFI
DIRECTOR, DEFENSE RESEARCH AND ENGINEERING
ASSISTANT SECRETARIES OF DEFENSE
GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE
INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE
DIRECTOR, OPERATIONAL TEST AND EVALUATION
ASSISTANTS TO THE SECRETARY OF DEFENSE
DIRECTOR, ADMINISTRATION AND MANAGEMENT
DIRECTORS OF DEFENSE AGENCIES
SUBJECT: Pryor Amendment Implementation
The attached is an amendment to the Department of Defense Directive axed the
Department of Defense lnstrUctlon, both of which were published in the Feder;q
Register on April 6, 1994, implementing the revised base closure property disposal
processes authorized by 'l-rtle XXlX of the National Defense Authodzatlon Act for Fiscal
Year 1994, Public Law 103-160, also known as' the Pryor Amendment. Although thls -
~mendment is being distributed in a format unlike those normally used for
Departmental Directives and instructions, this document is nevertheless binding on the
Department. The attached amendment to the directive and Instruction will become
effective upon publication in the Federal Register.
This issuance is not subject to the requirement con .tained in DoD 5025~1-M, DoD
Directives System Procedures, that a. directive-type memorandum be converted into a
Department of Defense Directive °r Department of Defense Instruction within 90 days..
Attachment
DEPART1VIENT OF DEFENSE
Offic~ of the Secretary
32 CFR Parts 90 and 91
[RINs 0790-AF61 and 0790-AF62]
Revitalizing Base Closure Communities and Community ~ce
AGENCY: Department of Defeasc, DoD
ACI~ON: Interim final role; Amendments
SGMMARY: The interim final rule amendmeat ~gates guidance requited by Section 2903
of the National Defense Authorization Aa for Fiscal Year 1994. Tiffs guidance clarifie~ the
application process and the criteria that will be used to evaluate au application for property uader
this section.
· .
DATES: This documcnt is effective [insert date of publication]. Any pending written request for
economic development conveyances, pm-suaat to the ~g section 91.7(¢)(5) of the interim
final rule (59 FR. 16123), will be subject to the terms and conditions of thi.~ rul~ ameadment.
Commeats on this amendment must be re~ved by [60 days from the publication].
ADD~: Comments should be forwarded to the Offic~ of thc Assistant Secretary of
Defense for Eeono~c Security, Room 31)814, The Peatagoa, Washington, DC 20301.
FOR FURTHER INFORMATION CONTACT: Robert Hextzfefld, telephone (703) 604-5690.
SUPPLEMENTARY INFORMATION:
A. Summat~ of Amendment
In response to public commeats regarding the interim final rule implementing Title XXIX
of the National Defense Authorization Act for FY 1994 publisheM in the Federal Register on April
6, 1994 (59 FR 16123), the Department of Defense is amencl_i_ng the Rule to:
1. De. lexe section 91.7 (d) and the accompanying '2vlarkc~ Test
:2. Establish the requixenmnts for an Economic Development Conveyance (EDC)
application for real prow. xW in a revised section 91.7 (e).
3. Establish criteria that will be usexl to evaluate EDC applications in a revised section
9~.? (e).
4. Provide guidance for greatex flexibility on the compensation to thc Fedcxal
Govemmcnt'for propexty conveyed unde~ an.EDC in a revisecl section,91-7 (e).
The scope of the fotlowing amendment is limited to thc real property conveyance aex~on
of the rule, sections 91.7 (d). (e), and (0, and not the entire April 6, 1994, intmSm final rule. A
final rule addressing all of the dements of thc interim final rule will be published in e~rly 1995.
The Department of Defen-~ will also publish a gui~k describing the base conve~'ioa process.
-,..
B. Back~ound
On July 2, 1993, ~deat Clinton ana~ a major new policy to ~ the economic.
recove~ of commanities affected by base elosu~ or t~lil0umat~- The PrUdent xaxlue~ted that
Congress provide additional authority to expedita the reuse of dosing milita~ baser,. Congre~
agreed, and passed this new authority, ~tte XXIX of the National Defense Authorization Act for
FY 1994.
Section 2903 of Tale XXIX gave the Secretaxy of Defense the authority to
property to local redevelopment authorities at or below fair market value. The De .Pamnem of
Defense implemented this authority by cre~,fing an additional tool for local communities to help
foster economic development through the creation of a new form of conveya~c, reft.to as
the "Economic Development Conveyan~" (EI2K3. Under an EDC, the DetmHxneat. may transfex
property to a Local Redevelopment Authority CI2~")at or below estimat~ fair matt~ value for
purposes of economic development. (Pt~eay may also be txanr, ferred under a series of othe~
~g public benefit conveyances.)
· On April 6, 1994, (59 FR. 16123), the Department of Defense published aa interim final
rule that provided base closure co~ with guidan~ on how to use the new authority.
During the public'comment process, the Depaztmeat of Defense learned that some'of the
procedures contained in the interim final rule may be impractical and not assist in reaching the
· rapid economic reclevelopmeat goals. As a result, they are being revised by this amen~t.
Specifically, the interim final rule establistxxl a 'market test' or ~ma-q,e.t sun0ey" as a
precondition to any EDC. This apprcme~ was desitgaed to help detennix~ whethea' immediate
private development of a protm'tY was posrdble by ~vmxi.4ng its availabili~ and soliciting private
intern, st. Many comments suggeated that private developen; would not spend the amc and money
necessary t~ prepare a de~_!led extnession of inten:st until after a community tedevelotnn~t plan
was approve~ ff at all. Additionally, the interim final role was ~ved to encourage
developers to "cherry-pick" valuable parcels for private sector sales and l~ve thc less amactive
parcels for the community retlevelopmeat. This effort Was said to be inconsiamnt with proper
planning methods and not in the long4erm intexest of, enhancing local economic recovery.
With the assistance of comments received during the public comment pe4.od of the interim
t-real rule, the Department of Defense has been persuaded that such solicitation is unlikely to be
f/-uifful unless and until the local community provide, the necessary investm~t and infrastmctu~
for development: zoning, public utilities, etc. As a result, the Department ia eliminating the
$
'mm-kct test' and creating with this Amendment a new process for an EDC that will consider such
information, as addressed by thelocal redevelopment plan.
" Thc interim final rule also prcscri~ procedun~ and.guidclincs for rccoupme, nt of value
by the Federal Government if and when act proceeds were reaUr.~ by development. Based upon
ex~encc since its publication and public COmment, thc Department of Dele, nsc is persuaded that
grcatex flexibility is needed in this area.
C. Discussion
The interim final rule zmcndment being pub~ today addresses some of tl~ concerns
raised by aff~ communkics and othrm This ~ eliminat~ the *markel test"
requirements, includ~ a new application a~d ~4cw process for anED~ and establishes c, dt~
to cvaluatc thc applications as a substit~ for tim 'market test.' Cw:ata' flem'bBity is given to tlm
1V~tary Departments and thc commtmitics to negotiate thc terms and conditions of ~ EDC. A
detailed application, including thc approved community redev~~t p!_~n, will now Ix: the basis
for a det~on of whether or not an LRA wa31 be eligible for an EDC...Tho application and
review process will aho be use~t to help de, texmi~ fix: terms and conditions of such a conveyance.
.
~ Amendment is an intermedhte step before tlm April 6, 1994, interim final nde is
reissued as a final rule.
o What is an Economic Development Conveyance (F, DC)?
An EDC is a new proce__-_~ for trandmg real propaXy to a Local Redevelop~nt -
Authority (LRA) to help spur local economic d6-wflopnrmt and job. creation- An EI~ may be
with or without initial payment or wkh only partial paym~ at time of mmder, may be at or
below the estimated fair mm-ket value of th~ ~, and allows for negotiated terms and
conditio~ of payment (consideration) to the Depamm~t of Defeazse. These negotiations must be.
fair and reasonable to both partiea and sm'kc a bal~cc between compensation to tho ~
taxpayer and the need for thc EDC to spur redmtelopment- The F. DC offers LRAs an additional
tool to use in the acquisition of forma' military base property.
When should ~n EDC be used?
The'FeStal Prow--trY and A~ Services Aa (FPASA) of 1949 (40 U.S.C. 484)
and airport public benefit authorities (49 U.S.C. 4715147153) allow for public benefit transfers
to units of government or non-profit institutions tim _maintain the use of property for a public
purpose including, but not Limited w, pates, public health, education, aviation, historic,
monuments, and prisons, Transfers of proIzaxY under public benefit transfers must be in
accordance with the sponsoring Federal agency regulations. The FPASA :dso allows for
negotiated sales at fair market value to p~blic entities for public purposes or direct sales through a
public bid process.
The EDC should bc used when the LRA wants to obtain prolx~cty for job generating
purposes and it is r~ot practicable to pay fair market value at the time of transfer. However, the
EDc is not intended to supper othcr Fcderal property disposal authorities and c~n~ot be
if thc intcndexl land us~ c. an b~ accomplished throu~ aa~ authority unless unusual
circumsta~nccs are prcsemcd that de. mortstrate ~at the needed cconomic development and job
ge, aeration caxmot ocoxr under the other thc allowable federal traasf~ authority.
~ Fe~c~..,:u~ Pnoe re:nY T~..~,-s:r~ ~ Av~,u,m.E TO LEAs
I0~C,
·
41 ~ 101-47.306~
IOC~
.1GU.~ S S6'7~d
Ftlr ~
i~b~:x.,d DeCenc, e ~ A~ Ic~ ~,,csl Ym lgg4, P J- 1G3'160
Convcyanec. An LILA should have broad-based mcm:tbcaxhip, including, but not limited to,
represc~ from thoscjm-i~cfi~ns with zoning authority over thc pmtz~. Thc Secrctary of
Defca~ shall officially rccogtfiz~ an LRA for planning and/or implementation through the Office
of Economic Adjustme. nt. Conscqu~fly. ~oms submitted by cafitie~ other than LRAs will
not bo cond~
Who Can Re&ave an Economic Development Conveyance?
An LRA is the only entity cligible to receiw protmW under an Economic Development
When should an application for an Economic Development Conveyance be made?
Fast. an LRA must bc organized and a ~ofmacnt plan created. Tlx: Depamnent of
Dea%.~'s Offic~ of Economic Adjmtmcm can pro~ guidance and techni~ and financial
can then submit an EDC application m fl~ Mililary Deparm~t rcspon.~'ble for the prolm~. Thc
application should b~ submitted by thc LRA after co--on with th~ Military Department
which shall cztablish a rcasoaablc ~ period for subm!s_~on of thr. application.
The LRA always has the option of acquiring ~ under the FPASA and thus it may
not be nec, essa~ to complete an aPPlication for an EDC within the stated timetables. LRAs can
'How much property should be Included In an Economic Development Conveyance -
application?
The EDC should be used by LRAs to obtain large parcels of thc base rather thaa rnc:r, ly
individual buildings. Thc incomc received from some of tim Mghcr valu~ protz:'ty should bc uscd
to offset thc nminte:~anc~ and maxtaing costs of the 1~ deMrable paw. els: In ord~ for this
coaveyancc to spur redcv, elcsmae~ large ~ __rm,~ be used to provid~ an income stream to
assist the long-tm~ development of the ~.
· Why is an application n~?
This Amen~ to the interim fi~_~! rule ~'bes th~ an application be prepared. by an
LRA as thc formal request for profza~, to ~ assist tlm 1Walitary DepaCanent in-eonsidefing
requests for prop~ under thc Economic Developmem COnveyance (El)C). Ti~ information
also will pro.~de the Nrsis for the Mili~ Department to respond to its obligations under Title
XXIX. taking into account the best community-based information on the proposed conveyan~
action. A gxr, at &al of infommtion necessary for an application is readily available to the LRA
through the community planning process and $uppotleA through existing DoD technical and
Beyond thc standard planning information collected to date. IAZAs should incorporate a
business and devclopment component into their overall base reuse planning process as a basis for
receiving and managing the real p~. This supplemental effort will assist LRAs in identifying
necessary implementation resources and Cstabli~h a community-based p~posal for the Milkay
Department's consideration.-The Military Departments and the Office of Economic Adjustment
~iLl continue to work closely with the.,affected IRA to ensure that an adequate planning effort is
undertaken.
o What must an application contain.'?
The applicatiOn should explain why an EDC is n~ for economic redcvelopmcnt and
job creatkm. Thc application should contain the following ~.
1. A copy of the adopt~ Redevelopment P~-
2.
.
A project narrative including the following:.
- A general description of protmtl~ requested.
- A description of the intended uses.
-- A dera:fiption of thc economic impact of closure on thc local communitics.
- A description of thc.financial condition of the community and the pt~'pecls.for
re.~velopment of the property. '
- A statement of how the HDC is consistent with the overall Redevelopment Plan.
A description of how the EDC will contn'bute to short- and long-term.job creation and
economic redevelop~t of the base and eommtmity, including projected n~,'and
type. of new jobs it w~l ass~ in amfing.
' 4. A business and development plan for the EIX: parcel.' including such clements as:
.- A development timetable, phasing platt and cash flow analysis.
- A market and finandal fca.ffoility anatysh describing thc cconomlc viability of the
project, including an estimate of n~ proceeds over a f~ycar period, the
proposed consideration or payment to the Dcpattme~ of Dcfensc, and th~'
e.sfimat~ fair market value of the property.
- A cost estimate and justif~mlion for ir, frastm~ and other investments needed
for the development of the EIX2 parcel
- Loc~ investment and proposed finan~g strategies for th~ development.
A statement describing why other authorities -- such as negotiated sale and public'
benefit transfers for education, pates,' public health' aviation, historic monuments,
prisons, and wildlife conSerVation --cannot be used to accomplish the economic
dcvclopmcnt and job cre~on goals_
6.' If a transfer is req~ted for less than thc estimat~ fair market value -- with or
without initial payment at the ti~ of transfer - thea'a statement shoald be provided
jt~sti~g a ~ Tae statement should include the amount and form of the
proposed conside~ioa, a payment schedule., thc geac. ral terms and conditions for
conveyancc, and 'projected date of conveyance-
7. A ~t of the LRA'a legal authority to acqui~ and dispos~ of tl~ pmpeay.
.
evaluation of the application- LRAs are eacom'agco to use sate mx~o-
· What critez'ia will be used to make a determination on the application?
ARer receipt of an application for aa EDC., ~ ~ of the Military D~partmeat Will
d~tezmin~ whether an EDC_is appear-e- to spux economic development and job creation and
De--at may also consi~ inf~6~ in,dent of the application, such as views of otlacz
~ agencies, appraisals, cart~ cos~ and other re. levant irdozmation.
The followiag critexia and factozs will b~ use. d, as appropriate, to ~ whether a
including price, ting of payagat and ~ relevam me. th~ of compensation to tl~ Fedezal
C, ov~at.
· Adverse economic im,r~:t of closure oa th~ region and p0teatial for economic
· Extent of short- and long-tam job geaexadom
Consistency with the ovexall Re~velopmcat Plato .---
l:taancial feasatn~Y of tl~ ~t. iaduding ~ analys~s aad th~ ne~d aad
extent of ~ ~ iavesm~at.
· Extcat of State and local inve~aeat and level of risk inctm'cd.
· Cut, at local and regional ~al estate marke~ conditions.
Incorporation of other ~ agcacy iatercsts and concerns, and applicability of. and
conflicts with, othea' Fcx~exal property disposal, authorities.
Relations.hip to the overall Military Depm-tme~t disposal plan for the hastallarion-
Economic benefit to thc Federal Gov~L including protection and main~c~
cost savings and anticipaed consid~on from thc tro_ nsfer.
Compliance with at~licab~ Fe. AeraL State, and local laws and regulations-
· What are the guldelin~ for determlning the terms and condlfi~ of consideration7
type ofe0hsidcrafioa may ~ frum base to base. ~is amendment gives greater
discr~oa and flexafility to the lVn~it~ Deimtmeats to negofia~ with the LRA to anive
at aa a~riate axrangcmextt. Due to tt~ cir~umtanee, s of a parfi~ rite., th~ base's
value may be high or Iow, and tl~ range of th~ estimated ~t fair market value may
broad or narrow. Wlxc~ ttxxe is value,, ttg Deinmmeat of D~fea~ has an obligation tmdex
Title XXIX of th~ National Dcfex~s¢ Authorization Act for FY 1994 to obtain
consideration within th~ ~ range of present fair market value, or to justify why
such c0usidexafion was not
· T~k. hag into accotmt all information provided in thc EDC application and :my additional
information comsidzxed re, levant, th~
estima~ of th~ fair ~ value of the property, which may be expresseA as a raag~ of
values. The Military I:~mtm~t ~ consult with thc IRA'on valuation assumptions,
guidelixgs and oa ixLsmXCfiOaS givea to tl~ tmsoa(, s) making tl~ estimadoa of value..
· As stated above, thc EDC atyPlkatioa must c. oatain a statemeat that proposes geze. ral
tezm =d C°nditioas of th~ conveyance, as w~ll as tl~ amount and type of the '
c. oasidcratioa, a paymcat w. hedule., and projected date of coav~ance.. After r~vioning the
application, the 1VfiIi~ Dcpartmeat has th~ ~oa and fleySbility to eater ixtto one of
two types of agrccmcaats:
1. ~.onside~tion within the estimated ~_n~ of. pre~¢nt fair market V~lu¢. as
~ ' :i~e Military ~~t
can be flexible about the terms and conditions of payment, and caa provide
£mancing on dx: txoWa~. The payme~ can be in Cash or in-lchad, and can be paid
at time of tnm~er or at a time in the fum~ The Military Departmems will have
the diso~on and flexib~ity to enIer imo agreements that spex:ify the form and
amount of coasiflerarion ~d cn.stm:s tha consideration is within the estima~
range of fair market value at flae ~ of applicatio~. Such m~thods of payment
could include: participation in the gross or na cash flow, defen'ed payments, .
moa~ages or other financing arrang¢~.
2. ~r~ below ~:h¢ cgimaled range of f~ir markel value., where pm.ocr
~n is _m'ovided~_ If a discount is found by the Secrctaqr of thc Military
?
Deparun~nt to Ix: necessa~ to fostex ~al economic rede~clopmcat and job
~o~ ~c ~unt of ~mid~fion ~ ~' ~low ~ ~fi~ ~ge of f~
(a). ~- ~r jus~fion for a ~~t ~
~ ~ of ~v~ ~ m o~ ~g wo~d not ~ a
~ ~ ~ a ~n ~~~ of why ~ ~~~
~ ~ of ~t f~ ~~
D. Executive Order ~
It has been deta-mined that these amendmemts ar~ a ~gnificaat regulato~ .action- Thc
amen~ts to thc rdl¢ raise novel policy issues aH~g out of thc Pr~cknt's priorities.
This rule amendme~ is not m~jc~, to thc ~or~ Flr~u'bility Act (5 U.S.C. 601 et
seq.,) beaaa~ thc ameadm~t will not have a sig~if'~ant o:onomic impact on a substantial numbez
of.~'rn~ ~tifies. TI~ primary effec: of this am~adm~nt will b(= to reduc~ th~ burden on local
commu~ties of the Govemnr, nt's ~ disposal process at dosing military immllations and to
ac. celerat~ the economic recovc~ of tl~ rdativ¢ly sm_~! nnmber of communities that will b¢
affeated by the closure of nearby mili~ installatioas.
F. Paperwork Redu~n Act ---
'I~ Rul~ =n~mdment is not subject to the Paper Rextuction Act becausc ii imposcs no
obligatory information r~ beyond internal DoD usa.-
List of Subjects in 32 CFR Parts 90 and 91
co~m~ity development, Oovc~ ~,~_ t e~ployccS, ~r~lit~ pe~nncl, Surplus
Government propexty.
-10
·
Thc authority citation for 32 CFR pans 90 and 9 ! continues to read as follows:
Authority:
10 U.S.C-;2687 note.
PART 9fl_REVITALIZING BASE CLOSURE COMMUN1TIF~[~EDI
2. seaion 9O.4 (aXD('ai) is ~.movea aha reseavca-
:3. Secti°n 90.A (b) is revised to read as follows:
Sectiou 90.4 - [AMENDED}
(b) In implem~atiag Title XXIX of Public Law 105-160, it is DoD policy to
coav~ ~ to a Local R~lopmeat Au~ ~) to help foste~
dav~op~t ~d job c~on-wh~ othez f~leml pn~ disposal optioas cannot
such obje, cfiv~ Couveyan<~s__ to th~ IRA will be u~ undo' terms and coudifious
&:signed to facilRatc local econo~c rekl~vclo~t and job ~ou, aUd may be. ~ at
less than fair mark~ value, with propes ju~c~tiom
PART 91.-REVITAIZZING BASE CLOSURE CO~ - BASE CLOSUtlE
COMMUNYrY ASSISTANCF~ [.AMENDED]
4. Scction 91.4 is rCviscd to r~ad as follows:
Section 91.4 Policy.
h is DoD policy to convey property to a Local Redcwelopmeat Authority (IRA.) to help foster
o:onomic d~vclopmeat and job creation whea oth~ federal ~ dispos~ options caxmot
achieve such objectives. Conveyances to thc LRA w~ bc mad~ under texms and conditions
dcsigued to facilitate local economic redevelopment and job creation, and may be mad~ at l_ess
than fair msrkc~ valu~ With prot~ ju.qific~om This regulation does not create any rights and
remedies and may not bc relied uwn by any perso~ ox'gan/z~o~ or other e~tity to allege a denial
of any fights or remedies othc~ than those provided by Pub. L. 103-160. Title XXIX.
5. Section 91.7 (d) is rcmov~l and ~~
6. Sections 91.7 (e) and (f) are revised to read as follows:
Section 91.7 - [AMENDED l
11
'(I) $~-tion 2903 of PubHcLaw 103-160 '~ ' ' '
Wazafc-r pro to I gI ~'thc .
. . . pca7 ocalrcdcvcI mca .. ~ of D~casctJ~ -
wi~ot~ u~rial - . op t authonue.s t; . ._ . . auchon~ ~o '
payn~z~t or ',vim orgy --,-~-,~
fair mar~t vaMe of the pmpe,~. This auaod~ crca~ an addMonaI tool for local cOmmuniZes
.
c~gn~I for ~.oaomi¢ c~','dopmaz~t, ~r. fca-~ to as tl~ "r:co~omi¢ D~vclopm~ Coav~--a~c~,,
·
(2) Thc EDC should only b= ~ whca o~cr
intcz~cd land use canno~'I~ used to acUomplishProtmny cI~~ authorities for th=
the n~ ecozxanic rcdevclopmcnt.
fair maz~ ~lu~ of r~ Propcny, which may be ctprcs~ as a range of raluc.s. ~ Mili~
gui~ a~d o~ instm~o~ giv~ to tb~ ~s) nzaking thc cstimaliVa~o~°'' assumption,
fully rcspon.~Ic for complctior, of the vah~azion, of value., but shall bc
..
(4) A ~ Rcdc,.,clopm~ ~rity (LR~) is thc only cafO, abI~ to receive pro~
inc~ding, but not liai~ to ~taiv~ from tho~.furisdi~ons z~-mbership,
. - Withzo~ug
th~ pro.~n~ ~ ~ ot'~ ~ o.~cia~~ anthorit7 over
m~PlanenaIion through tt~ ~ of Econo~c ,a.:lju.vm~t.an LRA -for planning and/or
(5) A ~y compZe~d ~oa ~ be th~ basis for '
b~ eligfbl~ for a ~ F~nomic D~velopme= ,---- a ~c~ on whah~r an LRA will
~ ,~" ~ ca,ma ~'pee~ m Paragraph (e)CO of this s~ction.
paragraph (0(3) of this section, no consideration if they
.
(6) The ai0plicmt~on should exp~ why an EDC is n~ for economic r=dcveIoprr~_ .nt and
.fob creation. Addi~ionalIy, th~ appIicaion should cozuain th~ foIiowing c!e.m~t~
(i) A copy of th= aClOlXed rc~k~Iopm~at plan. -
(~) A probc~ nara~v¢ including ~e following:.
(A) A g=u=~l ~on ofpropeny ~
/
(13) A dascrip~o~ of the intended uses.
I2
(C) A.description of the economic impact of closure on the local cpmmunides.
(D.) A description of the financial conditic~n of the community and the pro~ects for
redevelopment of the property.
OS) A statement of how the EDC is consistent wi~ the overall Redevelopment Plan.
('fii) A description of how the EDC will contn'bme to short- and loag-termjob creation and
ecoaomic redevelopment of the base and commu.u~, iaelud~ projected number, and type of
new jobs it will assist in erea~g.
(iv) A business and d~dopmemt plm for tho EIX2 parcel, including ~a~ elem~ts 'as:
flow a~~..
03) A market and financial feasibility analyds descaqfing rtz: economic vhb~ty of the
project, including an ~te ofnet proceeds over a ~year period, the proposed
consideration or paym~t to the Depertmeat of Defense, and the estimated fair market value of
the protz~.
(C) A ~ ¢$timat~ and jmtific~ion for ~nCvastm~uro a~d other iav~tments needed for
the dcv¢Iopm~t of th~ ED(2 p~
· (D) Local investment mci pro~ fmanehag ~trategies for the development.
,
(v) A smtemeat de~'bigg why c~ther attthofifies -- ~ a~ nego~ ~ale and public benefit
trm~er~, for eclueatiou, pa~ public health, aviatiom l~ofic mouum~ts, pdsou.% md wiI~ife
~o~oa - ~uuot b~ us~ to ~ tt~ eeou~ &velOlmaem and ~b or--ion goals.
(vi) If a transfe~ is rcqucstod for less than~the estimated fair ~ value ("FMV'9, with or
without Mida] paym~t at tl~ ~_mc_ of tran~cr, thcn a st~~ should b~ provided justifying the
discounI. The statement should include the amo~ ami form cfi the prolao~ Consideration, a
payment schedule, the general terms aud coadifioas for the coaveyan~ and projected date of
conveyance.
(vii) A ~t of the IRA's legal authofi~ to acqu~ and ff.u~pese of the property.
addition to the elements previously meatio~ after M~ilitary Depa~ent review of the
appliealioa, additional iaformafioa may be xequestefl to allow for a be__n_er evaluation of the
appticatio, m .
(7) 'After r~ccipt of an appli .c~tion for an EDC. the Sec:v. tary of the Military Departn~t will
determine whether an EDC is needed to spur economic development and job creation and
examine whether thc terms and conditions proposed are fair and. reaso~le. The Military
De~¢nt may also consider information indqaendent of the application, such as views of othe~
Federal agencies, appraisals, caretaker costs mad other relevant mateaqaL Thc ~ffiitary
o
· o
13
Dcp~t may propose and ncgotht¢ any altm-nativc ~¢rms or cond/tion-~ that it cons/dc~
.
·
(8) Thc following factors w,21 ~ cor~sidcred, as ~ hi evaluating'iix: application and
the t~lTnS and conditions of th~ pwposed mmxfcr, including price~ time of payment and other
relevant me. th~ of compensation to the Federal Govel~_ menL
(i) Advea'se economic impact of cloaur¢ on the wgion and POtential for eCOnomic rccovc~
Exte.~ of short- and long~ iob gena-afion.
('u]) Cousist~uc~ with over-all ~opmmt ~--
('tv) ~mmcial fea~'bili~ of the &-veIopm~.t, ~§ ~ analyr~ and need and exL,~__~ of
pro. seal ~nfi-~structm~ and other inve~menm
Ext~t of State and local in~ and Icvd of risk incmx~
Current local and r~gional real estate mafl~ conditions.
(vn~ incorporation of other ~ agency/ntar, au and con~, ~ud applicability of, and
connms with, other Fcdr. ral protmty disposal anthodtie~
(vih')Relationship to ti~ overall Military ~ disposal pl~ for thc installation.
('~) Economic be.u~fil to th~ ~ ~ includ~g protcction and m~,hmt_~",ancc coat
(x) Compliance with appHcable Federal, Sta~ aud local laws and rugul~o~.
(f) Consideratiom
· (I) For conveyanccs made put, ant to sectiou 91.7 (~), _Econo _mic Dcvclopmcnt
_Covv~-y_ anc~$, the So:rclary of th~ bfilita~ Detxumm~t will rcvi~w the application for an HDC
'and negotiat~ thc terms and conditions of ew.h transaction with the 12LA. The Milita~ '
Deparumms will have the ~on and fle~'bility t0 cuter into a~ts that stzeify the
amount, and ~t schedule. 'The conxideration m~y b~ ~t or below tl~ cstim~cd fair maxket
value, w/th'or without initial payment, in cash or in-kind and paid over qme.. An EDC must
onc of the two following types of agreemenm
(i) Consideration within the estimat~ nmg¢ of present fak maxket value, as determined by the
Sec~ of the Military Dcpamnent. Paymcats must be madc to ensure consideration is within
14
thc es~ range of fair market value at the thne of application.
(ti) Co~idewafi0n carl be below the estimated range of fair market value, when prope~
justification is provided. The amount of consideration can be below the estimated range of fair
manet value, if the Secretm~ of the ~Kflitary Deparmaem detennine~ that a discount is necessary
for economic redevelopment and job creation.
(2) The amount of consideration paid ha the fuam: shall equal the ~t va~ of the
· agreed-upon fair mafl~t value or diseoumed fair ~ value. Additional provisions may
be ineotlxa'med in the conveyance docaxments to pro, et the I)ep~tmaen~s intere~ ia
obtaining the agreext upon consideration. Also, the smadant GSA exe~ profits ~
(3) Ia a rural area, as defined by this rule, any EDC approved by the Secx'eta~ of the Milita~
~t shall be made without consideration when tlae base closure will have a ~b~mfial
~verse impact on the economy of the eommmfifie~ in the vicinity of the ~atioa and on the
~ for ttadr economic recover. The Secretary of the lVlili~ Dep~mx~tt eoneemexl will
detem~e ff these two conditions m'e met basexl on all the information considered in the.
application for an Economic Development Conveyance. Specific attention ~ be plaeexl on the
business and development plan submitted as part of the EDC application and the criteria listecl in
section 91.~(e)(8) will be used.
(4) In those im.~anees in which an EIX2 is made for consideration belov~ the ~ of the
esfimatecl present fair market value of the property - or if tl~e estimated fair~ value is
~ as a range of values, below the lowest value in tl~ ratage - the Military l~partm~t
shall ~ a written explanation why the estimated fair. ~ value was not obtained.
Adff~onally, the ~filita~ Depaztme~s must prepare a writ~a statement explaining why other
Fexteral property transfer authorities could not be usext to generate economic redcoat and
job creafiom
15
u~= ~a .Q~ raalaltl(ItlaiLth,,
-r-r- tu..l.._.
.o
\
o
o
o o·
o
o.
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-.
o.
~,~u ua ~ to the te~z~
.'
AC..RONYMS
FMV 'Faia' Mad~ Value
~ g4 Nafx:e~~ Ate",o('b.s~ Ac~ forr-ecatYe~u' I~ P~ I~1~
u.~o. u~_~~ . . ·
U~~A ~R~~~~~~~~I~ ·
.
· ,edev~~t plm~ ~ The
~d ad~ ~ ~ ~ ~ ~t
app~ LRA~ are ezmaam~l to use
site inionz~on available fram the
the uiaz~ mul '
Redevelopment Plan. indepeadenI ofthe applic~on~ such
property.
EDC,
S. A s~a~ describtn~ why other
autho~-such as u~:~m~t.~ and
parks, public~ ~~ ~c
~t-~ ofcompensatton to
· Adverse' ~ lin--rt~-'- of
· ~ etoth~r Fsdemt
· Economic benefit to theI%dm~ ...........
Gove~__ m_~t, htclu~ protectic~ tnd
nmintennn~ cost savin~ and
J~-~um'~lg~on~° tez~gs, and con.d/tia~. 6f'
· The individual c/~'o=~anc~ of
rna: u~ ~mou~t and type or.
or net c~sh flow, deferred l~X~nei. '
~ or othernn~nctng
tlm es~-n~tio~ of valne, but
~d,~_~ but n~
~ ~
.
("~ ~ ~'~ ~
~I~ ~~ ~t --
it ~d~ ~. '
~g ~e ~~~ ~ ~e t~s
to ~ F~
(v) ExtenI uf~ aM local
(v~ ~ Iocal and ~o~mt real
(viii tn=~t:~ ~ oth~ Federal
o~h= F'edsml.~ disposal
(viii) l~la~mr,~p t6.the over~
·
~ rata r~:uoa or
P~t $2
r~
·
40 ~ Part ~'~
'~d~ t~~ coam~. Ss~oaat parks.
o
Farts azand ~ of;hatg, er I, titte ~
ATTACHMENT C
ANTICIPATED SCOPE OF WORK
BUSINESS AND DEVELOPMENT PLAN
FOR PROPOSED REUSE PLAN MCAS, TUSTIN
1.0
REVIEW OF EXISTING AND IN-PROGRESS REPORTS
The Consultant shall review and utilize information from the reports noted below which
are completed or under preparation. For tasks and work effort required by Consultant,
the Consultant may need to supplement this information with other research and studies.
1.1
1.2
Market Analysis and Demand Forecast
This report provides information concerning the market for potential private
sector uses on the Base.
Fiscal Impact/Financial Analysis Repor[.
This report identifies the potential costs and revenues the City can anticipate from
development of the Base.
This report is in preparation and may not be comPleted prior to initiation and
completion 'of the Business and Development Plan.
1.3
CommUnity Facility and Infrastructure Repor[.
This report, identifies the major community facilities and public infrastructure
needed to develop the Base and, the required phasing for the infrast~cture and
the potential cost of the infrastructure.
This report is in draft form and may not be f'maled prior to initiation and
completion of the Business and Development Plan.
1.4
Traffic Study
This report identifies needed Short and long-range on-base and off-base traffic
improvements necessary for the Proposed Reuse Plan.
This report is in draft form and may not be f'maled prior to initiation and
completion of the Business and Development Plan.
1.5
MCAS, Tustin Historical Resources Survey
This report identifies information on the'historical and arckitectural significance
of certain buildings on the base.
1.6
MCAS, Tustin Family and Bachelor Housing Report
This report is a very preliminary assessment of the current compliance of existing
housing on the Base with building codes, the American Disabilities Act and the
1
2'.0
Fair Housing Act. The report does not include costs associated with asbestos or
lead sampling and abatement, utility metering modifications, provision of
independent utility services or major needed utility upgrades which are identified
in the Community Facility and Infrastructure report.
1.7
MCAS, Tustin Building Conditions Survey
This is an inventory of buildings on the Base completed by the Marine Corps with
their assessment of building condition.
1.8
Base Realignment and Closure Clean-up Plan
Prepared for the Marine Corps, this report describes the status management of
and response strategies for and action items related to environmental restoration
and compliance programs at MCAS, Tustin.
1.9
'Historic Blimp Hangar Analysis -.
This report is an assessment study of the present condition of the two lighter than
air blimp hangars at MCAS, Tustin, including recommendations and cost
estimates for normal maintenance and rehabilitation.
1.10
Draft Specific/Re-use Plan
This report is the basic proposal for the land uses to be provided on the Base.
It will also serve as the General Plan and Zoning Regulatio ,ns for the Base. This
Plan also identifies the expecting phasing of development of the Base on the
Market Demand Forecast Plan, the Specific/Re-use Plan and the expected toxic
remediation schedule.
The report will be in preparation and may not be completed prior to initiation and
completion of the Business and Development Plan.
1oll
Preliminary_ Environmental I, mpact Statement/Environmental Impact Report
This joint document provides the environmental documentation needed to comply
with both Federal and State environmental requirements.
This report will be in preparation and may not be completed prior to initiation
and completion of the Business and Development Plan.
IDENTIFY ANTICIPATED PROPERTY DISPOSAL PROCESS FOR DEFINED
PARCELS AT MCAS, TUSTIN IN CONSULTATION WITH LRA STAFF
2.1
Identify public conveyance sites to State and local agencies, and to accommodate
needs of homeless
2.2
Identify possible sites for economic development conveyances
__2
3.0
2.3
Identify sites for possible negotiated or public bid sale
2.4 Identify Personal Property Conveyances
Utilizing the reports above and input from City Staff, the consultant shall:
a.
Identify the personal property located at MCAS Tustin which may be
useful to the redevelopment of existing real property.
bo
Identify the availability and potential utilization of existing personal .
property
Co
Identify any additional major equipment required for operations and
maintenance of the existing facilities.
..
DEVELOP PROTOTYPE DEVELOPMENT SCENARIOS BASED ON THE
PROPOSED SPECIFIC PLAN, KNOWN DEVELOPMENT INTERESTS IN
CERTAIN PROPERTY, KNOWLEDGE OF THE REGIONAL REAL ESTATE
MARKET BASED ON REPORTS IDENTIFIED ABOVE AND INPUT FROM LRA
STAFF.
3.1
Initially identify a development timetable/project phasing alternatives based on
timing constraints associated with environmental remediation' by the Navy. The
need for installation of infrastructure, the staged release of existing housing areas
on the base, and actual, development absorption flexibility. A staged release of
development parcels in the best financial interest of the LRA is contemplated and
it is anticipated that' consultant will review the development timetable and phasing
issues identified in the proposed reuse plan and suggest the best strategy for
releasing parcels. It is estimated that phasing may need to be refined once a
detailed financial feasibility analysis is completed as well as a complete cash flow
analysis.
3.2
Based on the Community Facility and Infrastructure Report and Consultant's
evaluation, summarize on-base and off-base infrastructure improvements needed
for development of each parcel, including the potential cost of that infrastructure.
This analysis needs tO be presented for both the City of Irvine and Tustin with a
preliminary assignment to parcels of fair-share costs needed for deVelopment in
each jurisdictiqn.
3
4.0
PROVIDE A COMPREHENSIVE DEVELOPMENT'AND OPERATING
PROFORMA FOR OVERALL DEVELOPMENT OF THE SITE WHICH SHOULD
BE BASED ON THE FOLLOWING:
4.1 Development costs
Utilizing industry standards, identify development costs for development of the
sites and development scenarios prepared in Task 3.0. Costs should be defined
with a projected construction and occupancy schedule. Development costs would
include information items such as the following:
a.
Hard Costs
- Demolition
- Building Construction
- Site preparation and construction costs, including p.arking and
landscaping
- A pro-rated share of the off-base infrastructure construction
- A pro-rated share of the on-base backbone infrastructure
- Local~ public infrastructure construction to be developed on the
site (i.e. park development, etc.)
- A possible estimate of tenant improvements (i.e. existing'
buildings)
b,
Soft Costs
- Architectural/Engineering
- Survey Work
- Soils Analysis
- Title Services
- Legal Services
- Testing and Inspections
- Government Permit Fees
- Insurance
- Project Management
- Overhead
- Developer Fee (if applicable)
- Leasing/Sales Commissions
- Contingency
Co
Financing Costs
- 'Construction Loan Points
- Construction Loan Fees
- Construction Period Interest
- Permanent Loan Points
- Permanent Loan Fees
4
4.2
4.3
4.4
Operating Costs
Utilizing industry standards, identify operating costs for development of the sites
and development scenarios prepared in task 3.0. Operating costs are the annual
costs of operating and managing the project including Administration, Marketing
and Maintenance.
·
Expenses would include vacancy costs (based on projected vacancy rates), utility
costs, maintenance costs, marketing costs, common area maintenance costs,
management fees, appropriate reserves and other potential costs. The costs to be
included shail be dependent on whether any expected lease terms are full service
gross or triple net leases.
Operating Revenues
The development program 'will result in revenues from the sale or lease of
buildings and land. The proposer shall conservatively estimate annual building
sale and lease revenues, estimate the average value of land and buildings, and
'project future revenues based on the expected absorption or other factors.
The cost analysis should include, with assumptions: - The method for determining sales or lease prices
- The estimated sales or lease prices in terms of cost per square foot
or building as applicable.
- The estimated sales or leasing schedules
- The distribution of the sales or leasing proceeds to expenses,
commissions, and developer profit.
Operating/Sales Proforma
Utilizing industry standards, consultant shall develop a sales proforma or 15 year
operating proformas, as applicable, for each of the sites and options. The
proforma would-include items such.as, with assumptions:
- Annual Gross Income
- Annual or other increases in lease rates
- Vacancy rates
- Expenses
- Net Income Before Debt Service
- Potential Loan Amount, based on debt coverage
ratio and an industry standard capitalization rate.
- Debt Service, including refinancing expectations
- Net Cash Flow
- Return on Investment
5.0
MARKET AND FINANCIAL FEASIBILITY ANALYSIS DESCRIBING THE
ECONOMIC VIABILITY OF THE PROJECT, ESTIMATE OF NET PROCEEDS
OVER A F1FrEEN YEAR PERIOD, THE PROPOSED CONSIDERATION OR
PAYMENT TO THE DEPARTMENT OF DEFENSE, ESTIMATED FAIR
MARKET VALUE OF THE PROPERTY.
5.1 Cash Flow Analysis
Based on the previous tasks the proposer will prepare £mal development and
operating proformas projected on an annual basis for a minimum fifteen year time
period. The model shall evaluate alternatiVe financial scenarios including
proposal consideration or payment for property, to the Department Defense.
5.2
Based on the development and operating proformas,'the' level of tax burden
and/or bond assessment burden which can be placed on the sites to cover the cost
of Base-wide and localized infrastructure and still maintain a financially viable
investment for the private sector shall be determined.
This analysis will also include a review of the Market Demand Forecast Report
to determine the level of both direct and indirect tax and bond assessment burden
on those properties expected to compete with the Base for similar development
and/or users. Direct burden shall be those paid directly as taxes and/or
assessments by property owners and/or users. Indirect burdens shall be those that
are paid through private financing, sales prices and/or lease rates.
Based on the above, the proposer shall identify proposed investment'and financing
strategies for development of MCAS, Tustin Reuse Plan properties. Proposer
shall run a series of proformas to test the affects of additional revenues from
alternative sources such as Assessment District' financing (i.e. Public
Improvement Act of 1913, 1915 or Community Facility District), Redevelopment
Agency tax-increment f'mancing or other public financing methods.
Utilizing the reports and work done above and other.resources as appropriate, the
consultant shall also analyze 'and proPose both public and private financing
techniques to determine the appropriate method of financing both the private
sector and public sector obligations for the development of the sites.
5.3
Determination of Re-use/Residual Land Value
Based on all of the foregoing, the Consultant shall determine a re-use or residual
market value for each site which the private sector .can pay for the property to
realize a reasonable return on its investment. This may also need to be compared
with actual preliminary market appraisal information to validate assumptions.
6.0
5.4
7.0
The consultant shall then test its determination by modifying the development and
operating proformas to include the land acquisition price.
Proposed Consideration of Payment to the Department of Defense
Based on the potential.re-me or residual value of the sites .being requested under
the Economic Development Conveyance Application, the consultant shall
recommend the schedule, terms and conditions the City will offer to the
Department of Defense in any proposed Economic Conveyance Application.
BUSINESS AND DEVELOPMENT PLAN
The Business and Development Plan must include the following elements at a minimum:
· Purpose and scope of study
Executive .summary
· Ix)cation and context of study areas (on-base and off-base)
Inventory of all data collected and analyzed, as noted above.
Development timetable, phasing plan & cash .flow analysis
Cost estimate and justification for infrastructure and other investments needed for
development.
Market & fmancial feasibility analysis, net proceeds over 15 years, appraised fair
market value
Analysis and recommended consideration or payment to the Department of
Defense
· Cost estimate of development to community
· Local investment & proposed financing strategies for development
The City shall expect to receive as product deliverables seven (7) screen check copies,
Seven (7) draft copies and forty (40) final copies, and one (1) reproducible.
OTHER WORK TASKS
In a technical memorandum separate from the Business and Development Plan, Proposer
shall be asked to recommend an implementation strategy by which the property shou. ld
e
·
·
·
·
·
·
EXHIBIT "C"
· Special Requirements
The Contract officer shall be the Assistant City Manager.
The Contract officer shall be responsible for certifying
payment applications, administering change orders, and shall
be the primary liaison with the Consultant. All items listed
will require approval by the C°n~ract officer.
Consultant shall not release to the public or~ the press
information on this project without prior authorization by
Contract officer.
A no-'fee business license shall be provided by the City to
Consultant.
·
Consultant' shall present to ~he Agency certificates of
insurance and endorsement forms verifying that the Consultant
'has .the. insurance as required by this agreement. Said forms
shal~ be.reviewed and approved.by theAgency Attorney. On the
· Certificate of Insurance attached as Exhibit C--i, designate
City of Tustin as additional insured party.
If Contract Officer determines that a product deliverable is
unacceptable, either before or after a draft or final draft is
issued, because it does not conform~to the requirements of
this agreement, the Consultant shall submit a .revised report
or product at Consultant's expense.
Consultant shall utilize those, professional and sub-
contractors to perform services as identified in Consultant's
proposal. No substitution shall be made without the advance
written approval of the Contract Officer, after review of the
proposed substitute Consultant's experience and qualifications
with a written .explanation of necessity .for the change. No
increase in compensation or reimbursable salary rates will be
allowed when personnel or firm substitutions are authorized.
The Consultant Shall review and replace project or sub-
Consultant's personnel assigned to project who do not perform
assigned duties in a manner satisfactory to Contract officer.
The Consultant shall be required to meet with Contract officer
as required.to discuss progress on'scope of work at Contract
Officer's direction and to discuss assumptions developed
during task levels with Department of Defense, Marine Corps or
Navy personnel.
The City anticipates that the scope of work will not be a
static process with merely a report produced. It is
anticipated that the Consultant will 'need to be involved in
assisting the City in reaching agreement with the Navy and
Marine Corps on realistic valuation assumptions in preparing
the Business and Development Plan. This will necessitate a.
number of model illustrations so that the product evolves over
time prior to final approval, necessitating adequate
sensitivity testing and adjustments and input from parties
involved in the process.
10. Consultant shall comply with all applicable terms'of the Grant
Agreement for the Marine Corps Air Station, Tustin grant
contract between the City of Tustin and the Department of
Defense Office of Economic Adjustment (OEA) (Contract).
11. Consultant shall comply with all appligable federal, state and
local ~ laws and guidelines applicable to its ~ activities'~
including but not limited to 32 CFR 278 - "Administrative
Requirements for Assistance to Stat~ and Local Governments",
Office of Management and Budget (OMB) Circulars: A-87 - "Cost
· Principles for State and Local Governments" , A-128 "Audit
'Requirements for State and Local Governments," and "Drug-Free
Workplac~ Requirements; Notice and Final Rule"; 32 CFR Port 96
and 97, issued July 20, 1995 ("Revitalizing Base Closure
Communities and community~ Assistance") and Chapter 7 of the
Base Reuse Implementation manual (July 1995). entitled Economic
Development conveyances.
12. Senior Principal involvement by Allan Kotin is an important
element of the selection of the Consultant to perform the
requested scope of work particularly in meetings with
Department of Defense, Marine COrps and Navy personnel.
13. Field Investigations maybe necessary. The Consultant shall
obtain all necessary field data and make site investigations
and studies necessary, to the property .accomplishment of the
work required under this contract.
EXHIBIT "C-l"
Certificate of Insurance
'TO:
CITY OF TusTIN
CERTIFICATE OF INSURANCE AND DESIGNATION OF NAMED ADDITIONAL INSURED
NO MODIFICATIONS OR ADDITIONS MAY BE MADE TO THIS FORM
CITY OF TUSTIN
P.O. Box 3539
TusiJn. CA 92681-3539
NAME AND ADDRESS OF INSURED CONTRACTOR:
NAME AND ADDRESS OF INsuRANcE AGENCY:
PROJECT:
COMPANIES AFFOi~DING COVERAGE
(MUST HAVE BEST'S RATING OF AT LEAST A, Vii)
Company Letter A:
'Company Letter B:
Company Letter C:
Company Letter D:
Company Letter E:
Company Letter F:
This certifies that the policies of insurance listed below have been issued to the Insured name above, are in force at this time, that the City of
Tustin is named as an additional insured thereonas respects claims arising in connection with the Project named above and that Such insurance
shall be pdmary with respect to any other insurance in force procured by City.
Type of Insurance
GENERAL LIABILITY
[ ] Commercial '
General Lial~]ity
[ ] Occurrence Basis
[ ] Owner's & Contractors'
Protective
[ ] Broad Form Prop. Damage
[ ] Explosioh, Collapse,.
Underground Hazards
AUTOMOBILE LIABIUTY
[ ] AnyAuto
[ ] All Owned Autos
[ ] Scheduled Autos
[ ] Hired Autos
[ ] Non-Owned Autos
[ ] Garage Uab~ity
EXCESS LIABILITY
[ ] Umbrella Form
[ ] Other than Umbrella Form
WoRKERs' COMPENSATION
AND EMPLOYER'S LIABILITY
OTHER
Policy Number
Description of Operations/Locati0nsNehicles/Special Items:
Policy
Effective Date
Policy
Expira~on Date
All Umits in Thousands
General .Aggregate
Prods-Comp/Ops Agg.
Pers. & Advg. Injury
Each Occurrence
Fire D~mage
(Any One Fire)
Meciical ~xpense
(Any One Person)
CSL
Bodily Injury
(Per Person)
Bodily Injury
(Per Occurrence)
Property
EACH OCCURRENCE
$
S.
AGGREGATE
$
STATUTORY
$ ,
$
Each Accident
.Disease-Polic~ Umit
Disease-Each Employee
It is certified that a waiver of. subrogation is hereby issued to the City of Tustin as pertains to the terms of all Workers Compensation insurance.
The issuing company will give thirty (30) days written notice to the City of Tustin pdor to modification or cancellation.
DATE ISSUED:
Authorized Representative of the above-named insurance company(les)
EXHIBIT "D"
Compensation
EXHIBIT "D"
Compensation
·
·
Compensation shall be for the actual time of work performed
and material costs expended by Consultant and may not exceed
an original contract sum of $99,930.00. In addition, the City
shall reimburse for any Consultant expenses need for
Consultant to accompany City at necessary meetings outside of
the State of California.
Progress payments will be made monthly based on services
provided and actual costs incurred. All requests for payment
shall be. based on actual time and materials specifically
related to identified tasks in the Scope of Work.
ae
The Consultant shall indicate on all monthly invoices the
tasks being billed against, the original budget amount
for that task, the amount billed to date and percentage
of completion.
bo
Ce
'The Consultant may bill up to the maximum projected
budget through the tasks completed less 10%. The
retention amount will be paid to Consultant after the
Contract Officer has evaluated the Consultant's
performance and made a determination that requirements of
the Scope of Work have been satisfactorily fulfilled.
Each invoice shall also indicate the actual hours worked,
the billing rate, personnel classification, hourly
billable rate and the amount of fees being billed for all
Consultant personnel.
de
Ail hours charged to the project shall be supported at
Consultant's office by detailed time sheets.
e·
Ail invoicing shall be based on'actual hoUrs worked by an'
individual times the fixed hourly rate for that
individual and their corresponding firms, as specified.by
the Consultants' Proposal. Actual hours shall be hours
spent on assigned project tasks. Travel time to and from
the City's offices and to and from the Consultants'
offices shall not be billable.
Records for all billings, payroll, Consultant fees and direct
reimbursable expenses pertaining to the project shall be
maintained' on the baSis of generally accepted .accounting
principles and shall be available for inspection by the City
or the City's representative at mutually convenient times.
·
5.
Any special costs for necessary services such as field surveys
and investigations, excavation, special reproduction, computer
data preparation and computing shall be included in the
maximum contract price of $99,930.00.
Approved change orders shall be compensated based on the
hourly rates shown in Consultant's Proposal and a maximum
amount which shall be previously agreed to in writing by
Consultant and Contract officer.
EXHIBIT "E"
Schedule of Performance
EXHIBIT "E"
Schedule of Performance
The Schedule of Performance shall be as shown in the
Consultant's Proposal with the following special circumstance:
A decision on federal request for property at MCAS,
Tustin has not yet been issued by.the Navy. Consultant,
therefore, acknowledges that '~City shall' not be
responsible if additional progress is stopped or delayed
pending a decision' on federal property requests.
Consultant will agree to hold fee structure and hourly
rates proposed in Schedule of Compensation until'end of.
the 1996 calendar year. Consultant may proceed With
review of existing and in-progress re~orts, at -their
risk, but should not complete this task until a decision
on federal requests for property has been reached. , .