HomeMy WebLinkAbout11 SHORT-LIST LEGACY 09-02-03AGENDA REPORT
Agenda Item
Reviewed:
City Manager
Finance Director
MEETING DATE:
SEPTEMBER 2, 2003
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
REDEVELOPMENT AGENCY STAFF
SHORT-LISTING OF DEVELOPERS AS PART OF THE TUSTIN LEGACY
MASTER DEVELOPER SELECTION PROCESS
SUMMARY
City Council confirmation of a short-list of developers to proceed to the interview stage in
the Tustin Legacy Master Developer selection process is requested, as recommended by
the Technical Evaluation Committee, an Ad-hoc Committee of Mayor Worley and
Councilmember Thomas.
RECOMMENDATION
It is recommended that the Tustin City Council confirm the recommendation of the
Technical Evaluation Committee to short-list the following development teams as qualified
to proceed to the interview phase of the Master Developer Selection Process for Tustin
Legacy: Tustin Legacy Community Partners, LLC (a partnership of Centex Homes, Shea
Homes, Shea Properties and Industrial Realty Group); Lennar MS Legacy, LLC (a
partnership of Lennar Corporation, Lennar Partners, and Morgan Stanley Real Estate
Fund); Forest City, Tustin Field Partners, LLC (a partnership of Lowe Enterprises Real
Estate Group and WL Homes, LLC which does business as John Laing Homes); and
Trammel Crow Company.
BACKGROUND
Agency staff in February 2003 solicited a Request for Qualifications (RFQ) for a highly
qualified Master Developer for over 700 acres of land at Tustin Legacy.
Notification of the RFQ process was mailed in to an extensive interest list of
development entities. Press releases were issued, a web site established, and special
advertising placements were published in specialty real estate publications such as the
California Real Estate Journal and the Urban Land Institute magazine to advertise the
release of the RFQ package. Approximately 110 copies of the RFQ materials were
requested and mailed out on this opportunity and another 177 parties downloaded copies
William A. Huston
Short-Listing of Developers as Part of the Tustin Legacy Master Developer Selection Process
September 2, 2003
Page 2
of the RFQ from the Tustin Legacy web site. Nine responses to the RFQ were received by
the May 1, 2003 submittal deadline.
Agency staff conducted an initial screening of the nine responses to the RFQ and
eliminated one response for failure to respond to or meet the minimum deposit criteria
specifically called for in the RFQ. The remaining eight submittals were reviewed. An initial
review and preliminary evaluation of the submittals was conducted by a support team of
key City and Agency staff and management representatives as well as consultants
retained by the City, including Economic and Planning Systems, Inc. (EPS), Barnes &
Company, Gilchrist & Rutter and the Roma Design Group and the Ad-hoc Council
Committee consisting of Mayor Worley and Councilmember Thomas (the "Technical
Evaluation Team"). Consistent with the process described in the RFQ, the information
gathered by the support team was presented to the Ad-hoc City Council Committee for
their review and analysis in making a recommendation to the full City Council.
The technical review process rated each developer based upon specific criteria described
in the RFQ with individual criterion making up a percentage of the maximum score as
described below:
· Development Entity (20 Percent);
· Development Team Experience (20 Percent);
· Financial Capacity (25 Percent);
· Approach to Development (15 Percent);
· Approach to business and Investment Structure (15 Percent), and
· Proposed Timeline for Planning and Negotiations (5 Percent).
The Technical Evaluation Team reviewed their consolidated evaluations and discussed
the conclusions and ratings; and the Ad-hoc City Council Committee defined a short-list of
the most qualified developer team candidates that would be recommended to the full City
Council to proceed to the next step which would be a formal interview. The five developer
teams that the Ad-hoc City Council Committee recommends be short-listed to proceed to
the interview stage in the developer selection process are as follows (there is no order of
ranking importance at this stage in the process):
· Tustin Legacy Community Partners, LLC ( a partnership of Centex Homes,
Shea Homes, Shea Properties, and the Industrial Realty Group);
· Lennar MS Legacy, LLC (a partnership of Lennar Corporation, Lennar Partners,
and the Morgan Stanley Real Estate Fund);
· Forest City;
William A. Huston
Short-Listing of Developers as Part of the Tustin Legacy Master Developer Selection Process
September 2, 2003
Page 3
· Tustin Field Partners, LLC (a partnership of Lowe Enterprises Real Estate
Group and WL Homes, LLC which does business as John Laing Homes);
· Trammel Crow Company.
These developers were selected as most qualified based upon the criteria identified
above. The differentiation between those recommended for short-listing and others were
clearly the combination of financial capacity, demonstrated experience in quality master
development projects and their project management track records, knowledge of the real
estate market, understanding of the goals for the site as defined in the MCAS Tustin
Reuse Plan/Specific Plan, and their realistic assessment of the significant financial and
time commitment the project will involve.
The approved short-list of developers will be notified of their selection and advised as to
the date of their interview. As a condition to participation in the interview, each of the
shod-listed developers will be asked to respond in writing to certain interview questions
prior to the interview and will also be required to sign an Exclusive Agreement to Negotiate
in order to assure concurrence of the developer with the terms and conditions established
by the City in the RFQ. The City would then not execute the Agreement until, and only if,
the City Council selects a developer as the proposed Master Developer. Staff is currently
working with other members of the Technical Evaluation Team to finalize the interview
process and questions. It is anticipated that the interviews would be held on
September 10 and 11.
Agency staff will be available at the September 2 meeting to respond to any questions
from the City Council on the RFQ process.
FISCAL IMPACT:
There is no specific cost associated with the City Council's affirmation of a shod-list of
developers. Costs for the Master Developer solicitation process, interviews, and
subsequent selection and developer negotiations have been accommodated in the
MCAS Tustin Enterprise budget. Any future City Council selected developer will also be
reimbursing the City for all planning and negotiations expenses during negotiations.
Christine A. Shi&gleton//
Assistant City Managerc/