Former Charity Hospital Building Proposal Abstract Item 1532 Tulane Partners HRI Properties/Iris Development 1. Cover Letter 2. Table of Contents 3. Team Primary Team Members Lead Developer Present Present Firms in italics are DBE Present Present Firms in italics are DBE 1532 Tulane Partners, Inc. (Entity formed by El-Ad US Holdings and CCNO Development) HRI Properties Co-Developer Community Outreach Lead Architect Other Architect Construction Manager General Contractor Property Manager Legal Counsel Financial Partners/Advisers Bond Financing Financing Historic Tax Credits LIHTC NMTC Other Consultants/Advisers Affordable Housing Design Biomedical Facilities Planning Biomedical Architectural Design Civil Engineering Hawthorne Agency bnim John C. Williams Architects Iris Development Company DMM & Associates HCI Architecture HCI Construction J.C. Patin CAG The McDonnel Group Triumph Housing Management (housing only) 1532 Tulane Partners and Affiliates Woodward Tishman, A Joint Venture HRI Management Elkins, PLC Walker Dunlop Carlton Group Tax Credit Capital Hopkins Development Group Stonehenge Capital Company National Trust Community Investment Corporation RBC Capital Markets Capital One Volume Zero Facility Logix Ewing Cole Julien Engineering ILSI Engineering Item 1532 Tulane Partners HRI Properties/Iris Development Building Science Innovators Ice Energy Koch & Wilson Clio Associates Energy Consulting Historic Architecture Housing Consultant Innovation Hub Experience Designer Landscape MEP Engineering Key Realty Land as Art Dana Brown & Associates WDG Square Button Johnson Controls (Smart City component) W.I.S.E/WISP - LA (Smart City component) Cox Communication (Smart City component) Retail Developer Structural Engineering Traffic Planning Urban Planning Water Management 4. Diversity, Inclusion, Equity Community Outreach Plan Julien Engineering Overview: 1532 Tulane plans to meet or exceed the following City of New Orleans goals: ▪ 35% utilization of DBE ▪ 50% utilization of businesses that are locally owned and controlled ▪ DBE among project ownership group encouraged ▪ 40% of all work hours completed by Louisiana workers performed by local workers ▪ 20% of local workers DBE as part of HIRE NOLA ▪ 20% apprentices should be disadvantaged local workers (if using apprentices) Led by Hawthorne Agency. Includes: 1) Strategic communications effort through a) research, b) messaging, and c) core outreach tools. Outreach tools will include editorial board meetings, print media, electronic media, social media, graphic design, websites, community and stakeholder events, a persistent telephone information line, public Stirling Properties JCH Properties Creative Alliance of New Orleans Woodward Engineering Hall Planning and Engineering Baque Hoffman Studio Waggonner & Ball Architects Overview: The summary below has been inserted by JLL in what are the likely appropriate sections. HRI’s proposal notes affordable housing and community amenities as elements of its equity plan. While these are important aspects to equitable and accessible real estate and community development, these do not directly meet the requirements of the RFP and are ultimately present in both proposals. HRI and DMM Associates will lead: 1) Community Benefits Agreements tied to NMTC funding that will included standards and requirements for affordable housing, living wage job creation, DBE minimums, and also implement a first source hiring policy targeting low- and moderateincome residents. 2) Workforce development through partnerships with Delgado, YouthForce NOLA, Goodwill, the Foundation Item Project Ownership and Investment Construction Asset and Facility Management 5. Project Programming 1532 Tulane Partners open house sessions, pop-up information stations, and an advisory committee 2) Tracking outreach effectiveness through a) baseline telephone survey, b) mobile survey, and c) annual tracking surveys. Three-year period total 3) Measuring economic and other impacts of outreach and construction efforts ▪ Hopkins Development Group will have majority ownership of LIHTC equity component. ▪ Project will contain affordable for-sale housing units, and 1532 will retain a home ownership counseling firm to work with current tenants (not yet retained). The McDonnel Group will ensure compliance with DBE goals through the following: 1) Aggressive outreach through community meetings, advertisements, notification to organizations, etc. 2) Targeted bid solicitation, forwarding construction drawings to organizations and clearly outlining opportunities/scopes of work to aid to companies identifying opportunities to participate 3) Project labor agreements to ensure participation, and implementing a construction apprenticeship plan with guidance from GNO AFL-CIO 4) Cash flow assistance to firms that may not have financial capacity to acquire materials 5) Equal opportunity measures, including ensuring and equal working environment for all employees Hawthorne Agency will facilitate: 1) Aggressive outreach 2) Coordination with Small Business Exchange to identify qualified, local, DBE firms 3) General opportunities for education and workforce development Proposal includes use of Laundry as “Phase 1-B” to include an Innovation Center expansion as well as a HRI Properties/Iris Development for Louisiana, and many others (HRI provided commitment letters from many of these organizations) 3) Resource sharing for DBE capacity (likely more applicable for Construction below) 4) Global tourism initiatives that result in local economic development; however, unclear if there is a formal plan or partnership in place ▪ Notes that Iris Development is at the sponsorship level with HRI. Both firms will likely bring in fees. Woodward Tishman and DMM & Associates will ensure compliance with DBE goals through the following: 1) Adopting and adhering to the City’s goal of 35% DBE participation 2) An aggressive outreach plan, DBE certified firm listings, buyout process and schedule, and ongoing construction monitoring by Woodward Tishman 3) Weekly site visits by DMM & Associates 4) Technology-driven approach to monitoring that includes: a. Monthly status report b. Analytics such as contracting trends, goal achievements, payment history, etc. c. DBE Participation and DBE Utilization Reports d. Subcontractor profiles e. Certifying DBE’s In clarification questions, advises that ongoing partnerships during operations would be outlined in the CBA. HRI Provides three scenarios. The first scenario assumes the City is a tenant. The seconds scenario assumes that, if the City Item 1532 Tulane Partners future Tulane University research facility. Phase 1-B is not included in the development budget, pro forma, or financial offer. Also includes Butterworth as “Phase 1-C,” though this is not included in the program, development budget, schedule, pro forma, or financial offer. HRI Properties/Iris Development is not a tenant, Tulane or United Way will become a tenant. The third scenario assumes that, if both the City and Tulane/United Way fail to materialize, then Charity is 100% redeveloped as housing. In their clarification questions, HRI noted that City Hall may need between 300k-400k SF pending a full needs assessment. HRI’s proposal also relies on a ~400,000 square foot retailanchored development across the street from Charity to generated $40 million in TIF funding. More detail is provided below under “Non REFF- or State-Owned Property.” Development Program Scenario 1 City Hall Courts Other Office Tenant Housing 440,000 SF Housing (Market Rate) Housing (Worforce/Affordable) Housing (Subsidized) Housing (Total) Retail Parking Other Uses Innovation Education Community Tenant, Renter, Operator Commitments 175,000 SF Scenario 3 Present (no SF) 311,975 SF 50,325 SF 42,500 SF 119,580 SF 102,266 SF 22,108 SF 162,185 SF 128,770 SF 33,415 SF 269,870 SF 218,033 SF 45,937 SF 465,075 SF 46,175 SF 86,950 SF 243,954 SF 17,800 SF 40,000 SF 324,370 SF 62,000 SF 533,840 SF 66,425 SF 15,900 SF 81,000 SF Provided commitment letters for the following: ▪ Tulane (Office) ▪ Triumph Housing Management (Housing; manager only and not a “tenant”) ▪ Innovation (Land as Art LLC) ▪ Education (Tulane, Charter programs) Provided commitment letters for the following: ▪ Tulane (Office) ▪ United Way (Office) ▪ Historic New Orleans Foundation (Museum) ▪ Pythian Market (Grocery) ▪ Audubon Primary Academy (Education) Discusses the following: ▪ Will honor all easements, including Entergy Offered in-depth discussion about the market and how luxury apartments and hospitality would not be feasible. No commitments for community space, retail, or parking Other Elements Scenario 2 No commitments from City or other retail space Item Non REFF- or State-Controlled Property 6. Project Schedule and Phasing 7. Development Budget and Phasing Plan Development Budget Financing Plan and Uses Sources Permanent Loan GP Equity Deferred Developer Fee Tax Credits (All) Federal LIHTC Federal HTC State HTC NMTC Tax Credits (Total) Tax-Exempt Bonds (non-TIF) Tenant Prepaid Rent TIF Total Sources Uses (using ULI structure) Hard Costs and Contingency Soft Costs and Contingency Tenant Improvements Developer Fee 1532 Tulane Partners ▪ Provides consideration for public open space and connectivity through pedestrian circulation ▪ General comments about consideration for streetscapes elements ▪ Site grading will remain “as is” ▪ Parking will provided in lower level Proposal includes Laundry as Phase 1-B. Includes a number of other properties in later phases, but not part of formal proposal. Does not discuss contingencies specifically related to the Laundry. Project initiation October 2018. Occupancy begins February 2021. Does not provide discussion of risks and contingencies as requested, other than noting how limited public financing will mitigate risk. HRI Properties/Iris Development Also discusses innovation and consideration related to water management, traffic planning, “Smart Building”/”Smart City” energy efficiency solutions, an energy plan, parking, and connecting to the Enwave thermal chilled water loop. With the exception of the last item, these elements are discussed at the district level and are not specific to Charity itself. HRI’s proposal relies on TIF generating from sales taxes that result from developing 382,000 square feet of retail and 82 apartments directly across Tulane Avenue from Charity. Total: $245 million Total: $349 million to $380 million Scenario 2 Scenario 3 Project initiation October 2018. City Hall and Phase 1 residential occupancy in December 2021. Provides detail behind certain elements of construction, but does not provide discussion of risks and contingencies as requested. Scenario 1 $95,000,000 $29,622,340 $15,445,233 (in the form of a note @ 5.5% and 10 years) $34,700,000 $0 $2,220,853 $0 $79,932,701 $25,100,080 $0 $0 $245,100,354 $63,749,560 $68,786,440 $59,060,483 $19,422,000 $211,018,483 $0 $91,680,000 $40,000,000 $379,619,336 NA NA NA NA NA NA NA NA NA NA NA NA NA Not Disclosed Not Disclosed Not Disclosed $77,600,000 $0 $7,011,664 $95,624,340 $62,333,011 $53,525,938 $12,909,000 $224,392,289 $0 $0 $40,000,000 $349,003,953 $168,997,923 $15,547,696 $22,622,992 $25,488,744 $251,443,578 $47,489,436 $6,210,200 $36,849,074 NA NA NA NA $301,723,678 $40,140,987 $2,255,300 $33,278,518 Item Other Uses (“community benefit budget” in ULI study) Total Uses 8. Asset and Facility Management Operations 1532 Tulane Partners $12,443,000 $245,100,354 Provides discussion for lease-up and operations plan for each program component, including a discussion of managing disparate program components. Discussion includes retail, housing, office space used by Tulane, innovation hub, educational uses, and provides discussion about management of uses in Laundry. HRI Properties/Iris Development $7,011,664 $379,619,336 NA $2,220,853 NA $349,003,953 Provides discussions for operation of residential portions, particularly lease-up as it pertains to the affordable housing components and ensuring that tenancy aligns with expectations for LIHTC-funded housing. Notes that letters of support secured for retail spaces, including The Historic New Orleans Collection to curate a museum, and letters of support for grocery and other uses. Notes that in the event Phase 3 is used for biomedical research, will require significant work to secure tenants. Members of the team are in place to effect these activities should this program be pursued. In clarification questions, notes that the lease for City Hall would be coterminous with the ground sublease, or 99 years. No other discussion regarding operations of City Hall provided. Maintenance 9. Due Diligence 10. Documentation Provides some discussion of long term maintenance. Requests a 6-month due diligence period, extendable in 3-6-month periods based on findings. Offers detailed exploration of how that time will be used. Does not offer any hard or soft money deposits. Provided Does not directly address management of disparate program components. Provides in depth discussion of a Property Maintenance Plan that would be put in place for all aspects of the building. Requests a 12-month due diligence period. Offers detailed exploration of how that time will be used. Offers an earnest money deposit of $100,000. Provided