Invitation Letter from Mayor Marc Garofalo

A. The Setting

A Neighborhood Redevelopment Opportunity

Brief History of Derby & the Zone

Market Potential

Site Description

Site Access

Related City Development Projects

Federal & State Development Incentives Available

Municipal Contacts

B. Selection Process

Outline of Selection Process

Acceptable Land Uses for the HALO Neighborhood Redevelopment Zone

Schedule for Selection Process

Submission Requirements

RFP Selection Criteria

Selection Committee for RFP

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March 2001

Dear Friends,

Thank you for your interest in Derby’s HALO Neighborhood Revitalization Zone. We invite you to participate in and profit by this unique opportunity that we have assembled for the development community.

Within Derby’s central district exists an extraordinary prospect to acquire and develop nineteen contiguous acres primarily for housing for the elderly. As the enclosed materials indicate, the City of Derby seeks a partnership with a qualified developer who will construct, own and manage this unique development.

Through our Redevelopment Agency, we are prepared to assist you in acquiring over 150 individual parcels to create an entirely new residential community and to assist you through our Housing Authority with securing qualified tenants and buyers as necessary. We are a City committed to capitalizing on the region’s unique market assets to make this project a success.

In recent years, the City has conducted a number of companion projects that will serve to accentuate and enhance your efforts in this neighborhood zone. Recently, we have entered into an exciting agreement with the Starwood Ceruzzi Corporation to redevelop a nearby area of the Central Business District into a vibrant and livable mixed-use district that includes new, riverfront, market-rate housing, professional offices, entertainment and retail uses all within walking distance of our HALO zone. Additionally, we are engaged in the restoration of Derby’s historic Sterling Opera House located one block from the HALO zone, which will establish our regional center for the performing arts. Recently we have also completed the restoration of our historic Town Green located two blocks from the zone.

In Derby, we are placing our professional and political reputations on the line. We are committed to bringing every resource possible to bear toward the success of this project.

We look forward to considering your ideas to make Derby the most vital and livable city center in Connecticut.

Very truly yours,

Marc J. Garofalo

Mayor

1. A NEIGHBORHOOD REDEVELOPMENT OPPORTUNITY

The City of Derby is offering a unique 19 acre development opportunity in Derby’s newly-formed Hawkins, Anson, Lafayette, & Oak (HALO) Redevelopment Zone. The City’s Request for Proposal (RFP) process has two objectives:

To solicit, select and ultimately work in partnership with a private developer or development team; and

To develop a plan for the mixed-use redevelopment of the site with a primary goal of creating rental units for the elderly.

In making this solicitation, it is recognized that the HALO Redevelopment Zone can provide much needed housing assistance for the region's large low to moderate income elderly population while enhancing the sense of community and quality of life of all residents. This Redevelopment Zone was created in recognition of the clear shortage and fundamental problem of providing quality affordable housing opportunities in a region where the elderly are consistently priced out of the marketplace. Further, it is anticipated that the shift of elderly from untenable homeownership situations will create opportunities for new families to purchase those homes, further reducing our regional housing shortage.

A well-developed public transportation system located immediately adjacent to the Zone serves as an important link to services and facilities regularly used by the elderly.

The State of Connecticut is likely to commit resources depending on the characteristics of the successful proposal. Meanwhile, the City is pursuing a program of site acquisition, relocation and demolition within the Zone.

2. Brief History of Derby & the HALO Redevelopment Zone

The City of Derby is a riverfront community located in the Lower Naugatuck Valley/New Haven County in Southwestern Connecticut. Derby is a prime business and residential location within close proximity to major urban centers including New York and Boston.

Led by trader John Wakefield, twelve families from the Milford Settlement created the Settlement of Derby in 1645. Initially a small trading post, the City expanded in the 18^th Century with the founding of the Hallock Shipyard and subsequent development of its docks by the Birmingham/West Indies Trading Company. In its time, Derby handled more tonnage between the Old and New Worlds than any other port in America.

In the 19^th Century, men such as John Howe, Edward Shelton, Anson Phelps and Sheldon Smith all but created this country’s Industrial Revolution on the banks of the Housatonic and Naugatuck Rivers, arguably the heart of this country’s industrial hub from the mid-nineteenth to the mid-twentieth centuries. Affluent, cultured and sophisticated, Derby prospered as a center for shipping, industry and entertainment.

The area of the HALO Neighborhood Redevelopment Zone was built up with tenement housing and small commercial establishments to house and serve the workers who provided the area's industrial labor base throughout the nineteenth and twentieth centuries. As those workers prospered, they migrated out into the more suburban neighborhoods that predominate Derby and the rest of the Lower Naugatuck Valley. With that exodus, the tenement housing in the HALO Zone deteriorated and suffered from a lack of investment, leading to higher levels of crime, blight and substandard housing.

3. MARKET POTENTIAL

Today, Derby is strategically situated in Connecticut, within 60 miles of New York City, Derby is an ideal market location in one of the world’s largest and richest consumer markets. New York City is within an hour’s drive of Derby; in addition, regular train service connects Derby with Bridgeport, Stamford and New York City. Boston, Philadelphia, Baltimore, and Washington, D.C. are also accessible by train and are all within a single day’s drive.

Boston’s rapidly expanding financial and consumer markets combined with New York, Connecticut and Rhode Island consumer markets total over $500 billion. Derby is within a comfortable driving distance of 35% of the U.S. effective buying income, 33% of U.S. retail sales and 68% of Canadian population and effective buying income.

Currently, Derby is experiencing conversion from a center of heavy industry and local commerce to a community that serves more and more as a bedroom community and center of commerce for surrounding urban employment centers. Derby offers many advantages to growing families that need to be centrally located for employment purposes, and Derby strives to attract young families by improving its public school system and enhancing recreational opportunities for City residents. What is needed to take full advantage of Derby’s potential, however, is a plan to provide our elderly with new housing options which allow them to move out of unaffordable homeownership situations, thus encouraging the demographic shift to younger families.

Following the initiative of Mayor Garofalo and the Derby Redevelopment Agency, the Office of Development & Administration researched and developed a general strategy to accomplish the goal of revitalizing these neighborhoods while creating new housing options for the region's elderly population. This Request For Proposal is the first step in implementing that strategy.

4. SITE DESCRIPTION

The development site is located within the Center Design District (CDD) Zone of Derby, Connecticut. The area is situated to the north and west of the Central Business District and to the south of a residential Zone comprised exclusively of one and two-family homes. It is close by to the City's City Hall, Post Office, Town Square and Community Center. It is conveniently located near the majority of Derby's places of worship.

Located within walking distance (less than 1 block) of the CT Transit bus line, the Zone is well-situated to provide the elderly with easy access to shopping, medical offices and the Griffin Hospital. The Zone also is serviced by the Valley Transit District which provides door-to-door service for the elderly and disabled at minimal expense. The Redevelopment Zone contains a number of municipally-owned properties along with other parcels. Currently, the Zone is predominated by substandard tenements, within which exist high rates of crime, abandonment and blight. The City of Derby anticipates that the successful proposal will completely eliminate these conditions while complying with all relevant statutes regarding residential relocation. There are minimal commercial uses within the site.

The successful proposal will address access and road infrastructure issues, create new green spaces for the enjoyment of the community and incorporate, where feasible, commercial and community recreation opportunities to serve the residents of the Zone.

5. Public Transportation

BUS SERVICE – CT Transit serves most major commercial areas between New Haven, Derby and Waterbury, operating on a ten-minute schedule in the area of the site.

The Greater Bridgeport Transit District serves the site with hourly service connecting Derby and Bridgeport and points between.

The Valley Transit District provides door to door service throughout the Town/Greater Naugatuck Valley Region.

6. RELATED CITY DEVELOPMENT PROJECTS

Proposed City Projects include public/private partnerships involving programmatic and development strategies for community & economic development.

Downtown Business Revitalization District – The Derby Redevelopment Agency is currently engaged in a companion redevelopment zone located 2 blocks south of the HALO Neighborhood Zone. This 44 acre project is the most significant redevelopment project in the history of the City. The project will incorporate new commercial development, revitalization of historic structures and the creation of 300 market-rate residential units. The Starwood Cerruzzi Corporation has been chosen to develop and own this estimated $50 million development.

Extensive neighborhood revitalization efforts such as housing improvement programs, façade and code improvement programs, and capacity-building support;

Upgrading and improvement of park, recreation, cultural, and arts and entertainment facilities;

Business assistance programs including small businesses, incubators and other targeted industries;

Extensive industrial revitalization activities (including urban site remediation)

 

7. FEDERAL, STATE AND CITY DEVELOPMENT INCENTIVES AVAILABLE

FEDERAL INCENTIVES AND INITIATIVES

Brownfields Pilot Site: The Derby Business Revitalization District is included in the City’s EPA Brownfields Pilot project. The successful developer will be eligible for 100% write-off of environmental remediation costs in the year in which they are incurred.

STATE INCENTIVES

CHFA Housing Subsidy & Tax Credit Program: It is anticipated that any proposal for elderly housing will be eligible to participate under these programs. The City stands ready to assist the successful candidate in gaining approval from CHFA (CT Housing Finance Authority) for the maximum benefit for your proposal.

Urban Site Remedial Action Program: The purpose of the Urban Sites Remediation program is to facilitate the transfer and redevelopment of polluted and under-utilized commercial/industrial property. Derby is eligible for assistance for all three types of projects covered by the program. In a Type I Project DEP will "fast track" the review, inspection and approval of the clean up, planning and implementation for willing owners with contaminated properties identified by the CT Department of Economic and Community Development (DECD) as significant to the State’s economy. In a Type 2 Project DEP will investigate and, if necessary, perform the remediation on the properties identified by DECD when the property owner is unidentified, unwilling or unable to perform remediation. In a Type 3 Project, the State can acquire polluted commercial or industrial property for lease for economic base purposes. Lease payments will refund the State’s expenditures for acquisition and remediation. The new business will take title to the property at the end of the lease period.

8. MUNICIPAL CONTACTS

The Honorable Marc J. Garofalo

Mayor (203) 736-1450

City Hall

35 Fifth Street

Derby, CT 06418

Richard Dunne, Director of Development & Administration (203) 736-1478

One Thompson Place

Derby, CT 06418

MAPS AVAILABLE –John R. Gilmore, P.E., Milone & MacBroom, 716 South Main Street, Route 10, Cheshire, CT 06410 – (203) 271-1773.

9. OUTLINE OF SELECTION PROCESS

The Derby Redevelopment Agency is soliciting proposals from prospective developers for the development of Derby’s HALO Neighborhood Zone. This solicitation initiates the process to select a developer to undertake a mixed-use, elderly rental and homeownership project that potentially could accommodate up to 300 dwelling units and associated improvements.

In order to select a preferred developer for HALO Neighborhood Zone, a process for soliciting qualifications and proposals from interested development entities or teams has been established. The process involves a Request for Proposals which will lead to the selection of a " Preferred Developer Candidate" demonstrating the highest credentials, appropriate experience, financial capacity and imaginative and feasible plan for undertaking development of the site. This Preferred Developer Candidate will then enter negotiations with the City on a "Development Agreement".

The Preferred Developer Candidate will be chosen based on the quality of the proposal submitted in response to this solicitation in terms of compatibility with the City’s land use goals for the site; marketability of the proposal; quality of financial structure; relationship and projected impact on the City’s CDD Zone and adjacent neighborhoods; and projected overall fiscal and economic impact of the proposal.

For the purpose of responding to this solicitation, you will find a detailed description of the following included:

Acceptable Land Uses for Revitalization Proposal

Timeline for Proposal Submission and Selection

Submission Requirements for Proposals

Description of Selection Criteria and Selection Committee

Development proposal approval requirements, to be required of the Developer Candidate subsequent to the completion of a Development Agreement

The City of Derby has designated the Derby Office of Development & Administration as agent to facilitate the RFP process. All correspondence, inquiries and submissions regarding the Request for Proposal should be directed to:

Richard T. Dunne, Executive Director

City of Derby Office of Development & Administration

One Thompson Place

Derby, Connecticut 06418

Phone: (203) 736-1478

Fax: (203) 736-1480

Email: derby.ec.dev@snet.net

All inquires must be in writing and directed exclusively to Mr. Dunne, Executive Director.

The City of Derby reserves the right to respond or not to respond to specific questions, clarifications or requests concerning the RFP process. The City acknowledges that information contained it the submissions may be subject to the Freedom of Information Act (FOIA). Although RFP submissions will be treated as confidential, they may be considered public information under the provisions of the FOIA. Each submitting developer candidate should indicate in its RFP response any specific information that it considers to be proprietary or highly confidential.

Developer candidates shall carefully examine the contents of this RFP and related documents. Any ambiguities or inconsistencies shall be brought to the attention of Mr. Dunne in writing by April 16, 2001. Failure to do so will constitute acceptance by the developer candidate of any subsequent interpretation or decision by the City. No interpretation of the meaning of the RFP will be made orally. In the event that the City provides any interpretation, only written interpretations will be binding upon the City. All questions, clarifications and other responses will be distributed to all candidates promptly.

It is the responsibility of each developer candidate to advise the City of Derby of the appropriate name and address for the mailing (or facsimile transmission) of any communication, interpretation or addendum.

The City of Derby reserves the right at its sole and absolute discretion to extend any of the actual or proposed dates in the time schedule applicable to all candidates, and further reserves the right to reject any and all submissions from any or all developer candidates and to republish the RFP. The City also reserves the right in its sole and absolute discretion to terminate the process at any time prior to actual execution of a land disposition agreement, or to terminate the relationship with the developer candidate and continue the process with any of the other original candidates.

10. ACCEPTABLE LAND USES FOR THE HALO NEIGHBORHOOD ZONE

The City of Derby will consider proposals to completely alter and/or demolish the existing infrastructure and replace it with elderly housing for both sale and rent, as well as market rate housing opportunities and associated uses necessary for such development. Appropriate associated uses shall be: (1) commercial retail uses that primarily service the Zone, (2) public spaces such as a community center, parks, etc. primarily for the recreation and enjoyment of the elderly residents, and (3) medical/professional offices.

Preference in the selection process shall be given to those concepts or plans providing a strong link to the downtown, which includes a transportation center, an historic office and arts district, institutional uses and retail. Infrastructure should be designed to provide easy and safe pedestrian access to public facilities, churches, public transportation and retail located outside the Zone.

11. SCHEDULE FOR SELECTION PROCESS

SELECTION PROCESS

All submissions (12 copies) in response to the RFP for the HALO Neighborhood Redevelopment Zone must be submitted to the Office of Development & Administration (ODA) and must be in the possession of ODA no later than 4:00 P.M. on May 1, 2001. No submissions will be accepted after this date and time. The following two weeks will be used by the Redevelopment Agency to develop a short list of Developer Candidates who will then be interviewed by the Redevelopment Agency. The Redevelopment Agency will forward its recommendations to the Board of Aldermen, who will select the Preferred Developer with assistance from the Redevelopment Agency.

TIME SCHEDULE

The following represents the proposed timeline for the final selection of a Preferred Developer and Development Plan for the HALO Neighborhood Redevelopment Zone:

RFP Formally Announced March 15, 2001

Questions and Clarifications thru April 16, 2001

Deadline for Receipt of Proposals May 1, 2001

Shortlist and Notification of Developers May 15, 2001

Interviews of Short List of Developer Candidates June 1, 2001

PROCESS AFTER SELECTION OF PREFERRED DEVELOPER

Upon designation as the Preferred Developer, an "Exclusive Negotiation Agreement" and a "Development Agreement" will be executed concerning roles and responsibilities of the developer and the Redevelopment Agency.

The Developer will meet on an informal basis with a number of public agencies and legislative bodies which may be required to sign off and approve the final negotiated agreement with the Preferred Developer. Such bodies include the Derby Board of Aldermen, which serves as the elected legislative body of the municipality.

The Preferred Developer will then be required to submit to the City a textual Redevelopment Plan (for contents see Appendix B – C.G.S. § 8-125(c)) for the District that will satisfy statutory requirements of the City of Derby and the State of Connecticut and enable the processing of approval documents.

12. SUBMISSION REQUIREMENTS

Twelve (12) copes including one in reproducible form (text and maps) of the complete RFP package must be submitted.

Each developer candidate or developer candidate team shall be asked to provide the information listed below as part of its submission to the Request for Proposal for the HALO Neighborhood Redevelopment Zone. All materials submitted will become the property of the City of Derby.

Each submission in response to the RFP should contain the following information and adhere to the following format:

A. Formal letter of interest on Principal Developer letterhead

Letter of Interest should be addressed to:

Marc J. Garofalo, Mayor

City of Derby

35 Fifth Street

Derby, Connecticut 06418

B. Identification of Proposed Development Entity

A full description of the principal firm (and its related development entities and subsidiaries) and team members making the submission is to be provided in a narrative form that is clear and comprehensive. At a minimum the following shall be submitted:

• Description of Firm Entity

• History of Firm/Entity/Previous Experience as a team including the types of developments undertaken by the company(s), description of its geographical market focus and length of time in business,

• Resumes and Credentials of Principals and Key Personnel of Submitting Developer (Please identify who the project manager would be for the HALO Neighborhood Redevelopment Zone)

• Structure of the Principal Organization submitting RFP

• Description, resumes and proposed roles of any team members

• Brochures and collateral material on the firm(s) can be included as appropriate, but should not be substituted for narrative description.

C. Description of Development Experience

Detailed information on projects completed or in process over the last 10 years shall be submitted by the principal developer making the submission. Given the importance of this component in the evaluation of the RFPs, it is recommended that any and all information that would be helpful in fully understanding the development experience of the developer be submitted, including any relevant visuals, graphics or pictures of past projects. At a minimum, the following information should be provided for each development project described:

• Location

• Type of Development/Uses

• Principal Developer role in development (i.e., developer, contractor, investor, property manager, etc.)

• Scale and complexity of development

• Public involvement in development, if any

• Pre-construction estimate of Development Cost

• Actual Development Cost (Please identify all sources and uses of funds)

• Year Proposed/Year Started/Year Completed

• Description and Assessment or Estimate of Public Benefit of Project

• Description of Overall Development Team and Team Personnel

• Local Contact Person(s)/Reference(s) for Project

D. Principal Developer Financial Capacity

A major criterion for selection of a developer in the RFP stage will be a determination of the financial condition and/or capacity of the Principal Developer to undertake a large-scale development of the HALO Neighborhood Redevelopment Zone. The Selection Committee will evaluate the developer’s financial qualifications based on documentation indicating both the current financial condition of the submitting developer and its past demonstrated ability to obtain debt and equity financing. Greatest weight will be given to information providing clear and well-documented disclosure of financial capacity. A list of suggested documentation is provided below:

• Consolidated financial statement of parent company of principal developer, whether publicly traded or privately held.

• Dun & Bradstreet report or ID number of parent company of principal submitting developer, whether publicly traded or privately held.

• A financial statement on a cumulative basis for one or more of the most recently completed projects referred to elsewhere in the RFP by the submitting developer.

• List of prior debts repaid including lender, original principal amount, organization debt, maturity date, terms and interest rate, and monthly or annual debt service.

• Personal financial statements of all individuals with 10% or more ownership interest in the principal developer entity. An alternative may be a list of the names of such individuals indicating percentage of ownership and total net worth figure to be supported by personal financial statements.

• Audited financial statements for the most recent accounting year should be completed and include a balance sheet, profit and loss statement, statement of cash flow and notes to the statements. Financial statements that are reviewed, compiled or prepared in-house will be accepted but not preferred. Financial documentation that covers the last two years is given greatest weight.

Please note: documents submitted under this section may be provided under separate cover to ensure confidentiality. If you chose to submit this information separately, please note it clearly in the appropriate location of the RFP submission.

E. Development Proposal for the HALO Neighborhood Redevelopment Zone

In order to gain an understanding of the project envisioned by the developer candidate or team for the HALO Neighborhood Redevelopment Zone, it is required that a narrative description be provided indicating the type and number of dwelling units, mixed use structures and any other siting and massing of buildings. The narrative should be presented in sufficient detail to outline the direction the developer will pursue with uses, as well as their relationship to each other, the downtown, and surrounding neighborhoods based on the developer’s preliminary understanding of the site and its translation into potential development opportunities.

The developer must provide information on scale or massing of development, financial data/market documentation, site plans, architectural renderings, elevation drawings, traffic and pedestrian circulation plans, public safety strategy, public services, underground utility plans and renderings of proposed streetscapes or other visuals in support of their "concept" for the Zone.

F. Disqualification Factors

A developer candidate, or member of the development team, may be disqualified by the Redevelopment Agency if a developer entity has been convicted of a crime chargeable as a felony within the past five (5) years; if the developer defaulted on a previous project and/or was removed as a participant in such project; has been the subject of a voluntary or involuntary bankruptcy or insolvency proceeding, in the last five (5) years that was not dismissed within 60 days of filing, or admitted in general its inability to meet it debts when they become due; has made misrepresentations of fact in its submission, and similar acts including a lack of qualifications for a public project of this type.

G. References

All submissions must include a minimum of seven references whom, in the opinion of the submitting developer, can best attest to the development experience of the submitting firm. Please note – two references must attest to the submitting firm’s financial capacity, including one financial reference that represents the principal bank or lender of the submitting developer.

13. RFP SELECTION CRITERIA

The following Selection Criteria shall be used as a guide to evaluate all submissions to the Request for Proposals.

Scale, Quality, Number and Type of Projects Completed/In Process 15%

Major emphasis in the selection criteria is given to the overall development experience/track record of the developer candidate/developer team. The Redevelopment Agency will be focusing on the type and number of projects undertaken in the past ten years by the candidate development entity and its team members; the complexity and scale of these projects; and the overall quality of these projects as determined from information provided by the submission documents and through interviews by the Redevelopment Agency with references and local contacts. Preference will be given to developer candidates with successful experience in residential and mixed-use developments for the elderly involving reuse of historic structures.

Financial Condition/Strength 15%

A major criterion for selection in the RFP stage will be a determination of the financial condition and/or capacity of the candidate developer to undertake a large-scale development of the HALO Neighborhood Redevelopment Zone. The Redevelopment Agency will evaluate developers financial qualifications based on both financial information of the candidate developer and its past-demonstrated ability to obtain debt and equity financing.

Quality of the Development Proposal 20%

The Redevelopment Agency will evaluate the Development Proposal Submission Documents for the HALO Neighborhood Redevelopment Zone and their relationship to the existing downtown, surrounding neighborhoods and transportation network.

Past Experience with Elderly Housing Developments 10%

Preference will be given to candidate developers demonstrating documented residential or mixed-use development experience with elderly housing developments on the scale and complexity envisioned for the HALO Neighborhood Redevelopment Zone. Emphasis is given to development experience and success with public/private partnerships.

Success In Project Completion 20%

Developer candidates will be evaluated on past success in completion of development projects, particularly involving public/private initiatives. Particular weight will be given to demonstration of public/community benefits of past projects undertaken by developer candidates.

Organizational Structure and Credentials of Key Personnel 10%

The present organizational structure of the developer candidate will be closely evaluated along with resumes, appropriate experience and qualifications of principals project managers and key personnel of candidate developers and team members. Evaluation will be based on an assessment of the candidate developer’s ability to commit necessary technical and staff resources to accomplish development of for the HALO Neighborhood Redevelopment Zone

Past Organizational or Team Approach to Development 10%

Based on information provided by the developer candidate on past or current projects which it has managed, an assessment will be made on the quality of the overall organizational or team approach to development. This would include an evaluation of the personnel/firms used in the project design, development, construction, operation and management of its past projects.

 

Summary of RFP Selection Criteria
Scale, Quality and Type of Projects Completed or In Process Financial Condition and/or Strength Quality of Development Proposal Past Experience with Elderly Housing Developments Success in Project Completion/Public Benefits of Projects Organizational Structure of Principal Developer Organizational Approach to Past Projects Total	15% 15% 20% 10% 20% 10% 10% 100%

14. SELECTION COMMITTEE FOR RFP

The HALO Neighborhood Redevelopment Zone Selection Committee will be comprised of the Derby Redevelopment Agency and other public officials as may be designated by the Agency.