PROPOSAL DEVELOPED FOR Redevelopment and Adaptive Reuse of the Former Charity Hospital JLL + LSU Real Estate and Facilities Foundation / Issued June 4, 2018 4127 S. CLAIBORNE AVE NEW ORLEANS LOUISIANA 70125 504 822 4811 AUGUST 20, 2018 Chris Roth, Managing Director JLL 200 E Randolph Drive Chicago, IL 60601 chris.roth@am.jll.com 312 228 2720 Dear Mr Roth and Members of the Selection Committee: On behalf of the 1532 Tulane Partners. team, thank you for the opportunity to submit our proposal for the redevelopment and adaptive reuse of the Charity Hospital Building. We are pleased to provide our response, and excited to partner with JLL and the LSU Real Estate and Facilities Foundation (REFF) on this transformative project for the City of New Orleans. We recognize that redeveloping this significant piece of New Orleans history provides an important opportunity to engage not only stakeholders within your organizations, but the New Orleans community at large. In addition to the physical nature of the redevelopment, our team believes it is paramount to create ways to help build equity in the community for all members, both through inclusive programming as well as creative financing, such as allocating a portion of the EDD/TIF funds to be used for grants available to co-working entrepreneurs and district-driven business start-ups. We also believe that building on the momentum from the Greater New Orleans Foundation’s public working sessions for the Spirit of Charity Innovation District is a key to the success of this project. Embedding a robust community engagement process to ensure equity and inclusion is vital as we move forward with finalizing our development plans. While we look to the future—at untapping the potential for catalytic economic revitalization that the Charity Hospital building holds—our team understands the importance of looking at the building’s past. Throughout its history, Charity Hospital has stood as a beacon of hope for the residents of the City of New Orleans. Countless lives have been affected by its existence, which goes far beyond the footprint of the building itself. A significant number of New Orleans residents were born in Charity Hospital. Even more were trained for healthcare careers that prepared them to care for community members, including the most vulnerable New Orleanians. And, as the only level 1 trauma center in southern Louisiana, its reach extended throughout the region. Charity Hospital is the physical embodiment of new life and restored health. It is the heart of the beloved Spirit of Charity that the City of New Orleans and its people embrace and call their own. Throughout the post-Katrina revival of New Orleans, many proposals have been made to renovate, reuse, or replace Charity Hospital and provide hope where it had been washed away. Still, the structure of Charity Hospital stands vacant. The 2017 Urban Land Institute’s Advisory Services Panel Report on the former Charity Hospital acknowledged that the notion of healing is a critical component of addressing the building’s future. Our team believes the historic structure can and should remain intact as a reminder of its enduring vitality for New Orleans. Through workforce development and job training programs, medical training programs, workforce housing, school internship programs, and entrepreneurial co-working endeavors, our team will bring the building of Charity Hospital back to its stature as a beacon of hope and provide a renewed Spirit of Charity to the City. In order achieve this vision, our team has assembled a wide mix of professional disciplines and experiences based on close working relationships, a consistent record of quality service, and a set of shared values. Members of our team have been involved in some of the most catalytic revitalization projects in the region. FORMER CHARITY HOSPITAL REDEVELOPMENT 2 We believe that renewing historic buildings attends to history while looking to the future, modeling the kind of regeneration that is at the heart of major civic revitalization efforts. Re-purposing the Charity Hospital, and creating a heart of the Spirit of Charity Innovation District, will bring renewed vitality, density, and connectivity to the adjacent neighborhoods and communities, New Orleans, the state of Louisiana at large, and the surrounding region. A primary component of our proposal is an innovation hub—for co-working and collaborating, inventing and making, apprenticeship and training and entrepreneurial efforts—sited within the Charity Hospital redevelopment as well as an adjacent building that we are calling out as phase 1B of a larger Spirit of Charity Innovation District implementation plan. These spaces will be designed for partners including Tulane University, Living School New Orleans, and the Orleans Parish School Board, among others. Within the Charity Hospital redevelopment’s commitment to knowledge and community service, the innovation hub is an amenity that showcases cutting-edge research, facilitates leisure, and trains future leaders, an integral catalyst for the larger Spirit of Charity Innovation District. Within this package, we have attempted to demonstrate that our team has thoroughly studied the context of Charity Hospital—including its connectivity to and potential synergies with adjacent properties, parishes, communities, and the city. We hope it is apparent that our approach is one that goes beyond simply renovating a building. We believe that our proposal provides an opportunity for renewed life and vitality not only to this iconic building and its deeply embedded historic significance, but to all residents of the City of New Orleans. We look forward to working with you on this important project. Sincerely, Yoel Sharigan, President 1532 Tulane Partners yshargian@eladgroup.com / 212 213 8833 Mark Heck, AIA, Designated Team Contact John Williams Associates mheck@williamsarchitects.com / 504 566 0888 PICTURED LEFT TO RIGHT: 1532 TULANE PARTNERS TEAM WITH MAYOR LATOYA CANTRELL; MAKE-IT-RIGHT COMMUNITY MEETING; CHARLES MCAFEE, MAKE-IT-RIGHT CONTRACTOR. Imagine: A future designed for equity and opportunity. This is New Orleans 2030. Our proposed redevelopment plan places the former Charity Hospital and the Spirit of Charity Innovation District (SCID) as keystones of catalytic transformation, providing opportunities for community driven private and public investments that create positive and lasting equity for all New Orleanians. Imagine: it is 2030. Charity is full of people from across the city. It is a hub of education; innovation; workforce development; market rate, faculty/student, and affordable housing; locally owned retail; and community activity, vibrant uses that serve the surrounding community. Residents find the new Claiborne Corridor providing safe, transit-oriented, and pedestrian friendly access to the SCID, City Park, and the lake via the Greenway. Affordable, quality housing choices are now available for families, seniors, and young professionals, attracted to the assets and vibrant energy emerging from Charity. In 2030, the Spirit of Charity has created hope, equity, and the rebirth of a vibrant community, the Spirit of Charity Innovation District. Entrepreneurialism has led to economic revitalization. The act of making—creation—is contagious, and one idea seeds yet another endeavor. The entrepreneurs and founders of these companies are the same people who were, long ago, born in Charity Hospital. They are community members, they are neighbors. People who were once employees are now employers. We believe our plan has the potential to be transformational on multiple scales. Starting with the redevelopment of Charity Hospital, we see opportunities for catalytic revitalization that span neighboring sites and can anchor a vibrant Spirit of Charity Innovation District. Once begun, impact will not stop there. Imagine: a place where academic researchers and students from Tulane University, LSU, and others in the industry collaborate in extension lab facilities and are widely recognized for new technologies, practices, and ideas. A place where medical students and medical service providers on 24-hour rotation can meet to discuss case studies over coffee and a sandwich at 3 a.m. A place where grade school students showcase their science fair projects and anxiously await the completion of their new charter school nearby. A place where a family visiting New Orleans learns about the cultural impact a city can have on innovation initiatives and the new technologies emerging from them. A place where community members can receive wellness and nutritional coaching. Through this program, the 1532 Tulane Partners team can establish a fund available to disadvantaged community members for residency within the innovation hub and opportunities for apprenticeship and entrepreneurial programs. The results would impact not only the Charity Hospital redevelopment, but the SCID, neighboring districts, and city as a whole. More buildings have been renovated, more businesses have been opened, more community members are working in their own neighborhoods. Is this not the Spirit of Charity? GREEN INFRASTRUCTURE/ ECO DISTRICT/SMART CITY FORMER CHARITY HOSPITAL REDEVELOPMENT 4 Section 2 TABLE OF CONTENTS ROUSES #46 / NEW ORLEANS, LA FORMER CHARITY HOSPITAL REDEVELOPMENT 5 Content SECTION 1: COVER LETTER 2 SECTION 2: TABLE OF CONTENTS 6 SECTION 3: TEAM Organizational Chart Evidence of Formal Relationships 7 8 9 SECTION 4: DIVERSITY, INCLUSION, EQUITY Community Outreach Plan Project Ownership and Investment Construction Asset and Facility Management 12 13 16 17 19 SECTION 5: PROJECT PROGRAMMING Development Program Tenant Commitments Other Elements Non-REFF or State-Controlled Properties 20 21 39 50 51 SECTION 6: PROJECT SCHEDULE + PHASING 53 SECTION 7: BUDGET + FINANCING PLAN Development Budget Financing Plan and Uses Proof of Financial Commitment 56 57 58 59 SECTION 7: ASSET AND FACILITY MANAGEMENT Operations Maintenance Operating Pro Forma 61 62 65 66 SECTION 9: DUE DILIGENCE 72 SECTION 10: DOCUMENTATION 75 SECTION 11: FINANCIAL OFFER 78 FORMER CHARITY HOSPITAL REDEVELOPMENT 6 . m??i Organizational Chart LEAD DEVELOPER Yoel Shargian President Hawthorne Agency Tax Credit Capital Joseph Stebbins CEO Walker Dunlop Carlton Group Key Realty COMMUNITY OUTREACH HISTORIC TAX CREDITS BOND FINANCING FINANCING HOUSING CONSULTANT Geneva W. Coleman Monica G. Pierre Dr. Silas H. Lee, III Karimah Stewart George Brower Jeff Lawrence Matt Baptiste Jerry Getant Howard Michaels John Murray bnim John C. Williams Architects Land as Art LEAD ARCHITECT LOCAL ARCHITECT INNOVATION HUB EXPERIENCE DESIGNERS Steve McDowell FAIA, LEED AP Design Principal John Williams AIA Design Principal Carey Nagle AIA, LEED AP BD+C Principal-in-Charge Mark Heck Project Manager Kayla Berkson Designer Daniel Winkert LEED AP Project Architect Hopkins Development Group LIHTC Brian Davis Othello Mahone Mark Dehner Randy White Joe Pine Volume Zero Koch & Wilson Julien Engineering WDG LANDSCAPE AFFORDABLE HOUSING DESIGN HISTORIC ARCHITECTURE STRUCTURAL ENGINEERING MEP ENGINEERING Dana Brown Michael Cajski Robert Cangelosi Kerwin Julian, Sr PE Kerwin Julian, Jr PE Brian Anderson PE Kent Poyser Clark Shaw Dana Brown & Associates The McDonnel Group GENERAL CONTRACTOR Alan McDonnel Reade Nossaman Grayson Bultman = MBE/WBE/DBE = LOCALLY OWNED / OPERATED FORMER CHARITY HOSPITAL REDEVELOPMENT 8 Evidence of Formal Relationships Given the scale of this transformative opportunity, we have formed a locally-based, nationally-recognized partnership of development professionals under the banner 1532 Tulane Partners., a collaborative partnership spearheaded by Yoel Sharigan and Joseph Stebbins. In addition to 1532 Tulane Partners., we have brought together a wide mix of professional disciplines and experiences—based on close working relationships and a consistent record of quality service—including: finance; real estate; architecture and design; affordable housing; community outreach; historic preservation; landscape and urban design; structural, civil, and MEP engineering; and construction management. This collaboration not only represents a financially strong, diverse group but one built on a set of shared values that leads to successful design processes and successful buildings. Values such as: a focus on people and social impact, transparency and openness in the process, the engagement and participation of all stakeholders, and a willingness to question the status quo and best-practices in a rigorous search for the best and most appropriate solutions for each project. Our team is committed to promoting diversity and full and equal opportunity in all aspects of this project proposal. We acknowledge the following City of New Orleans diversity and inclusion 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) We not only believe in complying with these goals, but plan to exceed them. We have established effective partnerships with minority team members and will employ strategies for training and workforce development that will contribute to the overall vision of Charity Hospital, proving that equity and inclusion will be key enablers in bringing to life the Spirit of Charity Innovation District and ensuring that as it thrives, all community members share in this prosperity. More about our plans for diversity and inclusion is included in Section 4. NOCCA GROUNDBREAKING / NEW ORLEANS, LA FORMER CHARITY HOSPITAL REDEVELOPMENT 9 Memorandum of Understanding On this date, August 20th, 2018, 1532 Tulane Partners and the undersigned team members have worked collaboratively in the preparation and agree to proceed with the unified vision of the attached proposal respectfully submitted in response to the RFP for the Adaptive Reuse of the Former Charity Hospital. All parties acknowledge that if awarded the right the redevelop the Former Charity Hospital, they will enter formal agreements with the 1532 Tulane Partners to bring the project to its completion. Joseph Stebbins, Partner 1532 Tulane Partners Othello Mahone, Managing Member Hopkins Development Group, LLC Kent Poyser, Principal WDG Engineering Geneva Coleman, President Hawthorne Agency Mark Dehner, Manager Land as Art, LLC Allan McDonnel, President The McDonnel Group Steve McDowell, Principal BNIM Kerwin Julien, Sr, Principal Julien Engineering John Williams, Principal John C. Williams Architects FORMER CHARITY HOSPITAL REDEVELOPMENT 10 State of Louisiana COMMERCIAL DIvlSioN R. Kyle Ardoin Secretary Of State 225.325.4704 SECRETARY OF STATE Administrative Services 225.932.5317 Fax ssnsizms 225.932.5314 Fax Uniform Commercial Code 1532 TULANE PARTNERS. INC. 225-932-5313 412? S. CLAIBORNE AVE. NEW ORLEANS. LA H1125 Dear Sir or Madam: Congratulations on starting your business! 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Once you've begun operating. business experts at your local Louisiana Small Business Development Center are available to provide you with confidential. one-on-one business consulting at no cost to you. Again. thank you for your entrepreneurial spirit and wish you all the best in your new endeavor. Sincerely. R. Kyle Ardoin 430620?20 Rev 1H1 Mailing Address: F. O. Box 94125. Baton Rouge. LA Office Location: 8535 Archives Ave. Baton Rouge. LA Web Site Address: m.sos.la.gov Section 4 DIVERSITY, INCLUSION, EQUITY MAKE IT RIGHT COMMUNITY MEETING / NEW ORLEANS, LA FORMER CHARITY HOSPITAL REDEVELOPMENT 12 Community Outreach Plan Embracing the Past and Investing in the Future The Hawthorne Agency, Inc. will guide our team in the formation of an outreach plan that evokes transparency and promotes diversity, inclusion, and equity. We recognize that the conceptualization of this plan must include an appreciation of the many New Orleanians who still embrace the spirit of their individual perception of what Charity Hospital represents to them, in a non-tangible context. Through them, the spirit of Charity lives and encompasses how they identify their legitimacy as bonified natives of this city. For many, it has been a birthplace, a healing place, and/or a place of departure for friends, neighbors, and “ya mama nem.” It is for these reasons, we are proposing that a balance be established between the physical design of the Charity Hospital redevelopment and the concepts and ideas of the community—building on local cultural assets, preventing displacement, and honoring the many communities that make up a diverse NOLA. The strategic communications efforts will include a combination of print, electronic, and social media, editorial board meetings, design charettes, coordination with elected officials, community organization and stakeholder events, assistance with content development for the existing website, and a designated telephone information line. Media relations tasks, directed by Monica G. Pierre, will assist in establishing/maintaining open communication with media representatives that facilitates the dissemination of factual project information to the community on a continual basis. Additionally, we will utilize the resources already available to us, such as the information on economic development outlined by Mayor Cantrell in her “Forward Together New Orleans” transition document, the “Spirit of Charity” master plan study, and the 2017 ULI Advisory Services Panel Report for the redevelopment of Charity Hospital to accomplish the goals of this project. Our resultsoriented strategy is designed to facilitate community support for this cultural landmark in the city’s history. To successfully accomplish the aforementioned approach, our community outreach plan of action will consist of the following components: Task 1 - Research To conduct a thorough review of prior outreach efforts and an assessment of the demographics within the project parameters. Understanding the dynamics of the population and documented stakeholder perceptions will yield a data-driven, inclusive communications process. A stakeholder contact list will be developed and maintained for future correspondence. Task 2 – Messaging Building on the project narrative that has been established, our team will craft key messages that promote consistency, continuity, and accuracy of information about the project. Tailored to reach and engage diverse stakeholders, the creation of memorable messaging will aid in clearly communicating the project’s objectives in easy to understand language, void of technical jargon. Task 3 – Core Outreach Tools Since by its very nature, adaptive reuse projects are contentious, the method of educating the community and acquiring their feedback must be ongoing, flexible, and transparent. Therefore, advantageous community outreach and engagement goes beyond minimal public meetings; it is constant and commences prior to any construction activity. The communications strategy will employ a mix of core outreach tools as described on the next page. EDITORIAL BOARD MEETINGS A critical aspect of transparency is the credibility of the fact provider. In telling the project’s story, editorial board meetings will serve as opportunities to formally present important project-related information directly to the media hierarchy in order to effectively achieve this objective. PRINT MEDIA Print media will be leveraged to provide current status information about the project via articles, ads, and/or feature stories that validate the teams’ commitment to total transparency and engagement. the community to garner their thoughts and ideas. Additionally, special events centered around project milestones will help to publicize the project’s progress and further community participation. TELEPHONE INFORMATION LINE A designated telephone line will provide residents easy access to verbally communicate inquiries or concerns and obtain approved responses from appropriate project team members. It will be in operation during regular business hours and include a voice mail system for receiving calls outside of those hours to be addressed the next business day. ELECTRONIC MEDIA PUBLIC OPEN HOUSE SESSIONS Personal interaction between the project team and the New Orleans community will be afforded through electronic media for the presentation of clear, concise information about varying phases of the project and its public inclusion efforts. In continuing with the outreach initiated during the strategic planning process, an inclusive method for communicating with the public will be maintained through conducting open house sessions. During these sessions, the community will be educated on the project’s status and able to provide their input in an informal, interactive setting. Attendees will be given the opportunity to speak one-on-one with members of the project team while they view displays, make comments, and meaningfully participate as this amazing project comes to fruition. SOCIAL MEDIA Use of social media will expand the oppotunity to engage a broader, more diverse audience. It will also aid in the promotion of events. GRAPHIC DESIGN Creating a protocol of accepted fonts, colors, and graphics will provide an aligned, recognizable, and uniformed visual look for the project. Compelling outreach materials will be developed for print, electronic, and social media utilizing a combination of dynamic graphics and text that result in pieces that are both visually appealing and reader-friendly. POP-UP INFORMATION STATIONS The utilization of pop-up information stations in the project area will allow our team to meet the public where they are, especially during project milestones, to obtain input and address specific concerns that may arise as the project progressively evolves. WEBSITE CONTENT DEVELOPMENT ADVISORY COMMITTEE To ensure accessibility to updated information about the project, outreach materials will be made available for use on the existing website, www.charityinnovationdistrict.com. An advisory committee comprised of individuals with expertise in the identified project sectors (i.e. housing/quality of life, transportation and mobility, parks, public spaces and green infrastructure, equitable economic growth, and the charity building, etc.) is suggested to make recommendations for the benefit of the community and/or provide key information that will aid in consensus building. COMMUNITY ORGANIZATION AND STAKEHOLDER EVENTS Presentations at community organization meetings are recommended as a means of listening to and interacting with FORMER CHARITY HOSPITAL REDEVELOPMENT 14 Providing mechanisms for measurable outreach results To accomplish the objectives envisioned by JLL and LSU REFF, we propose utilizing quantitative and qualitative research methodologies to effectively measure and explore the perceptions, expectations, and vision of residents for Charity Hospital, to ensure that our team’s proposed solution is respectful and supportive of the culture and history of the community. One of the primary objectives of our outreach efforts is to measure and evaluate the level of public awareness and expectations based on stakeholder understanding about the former Charity Hospital Redevelopment project. Our research will be led by Dr. Silas H. Lee III, who has conducted extensive research for previous developments with similar objectives. Our multi-year research initiative is customized to analyze the concerns, expectations, and priorities of residents bounded by Poydras St, S. Claiborne Ave., Iberville St., and Loyola Ave. As researchers and planners, we recognize the importance of including the opinions of the diverse residents in this emerging community and have incorporated a multi-modal strategy to measure their opinions. RESEARCH COMPONENT 1: BASELINE TELEPHONE SURVEY (YEAR ONE) The first component of our research initiative is to conduct an extensive baseline survey of 300 residents to not only measure the cumulative support, awareness and perceptions of residents about the development, but evaluate the results by key demographic groups such as age, race, gender, proximity to the project, and other demographics. Respondents from landline and cell phone households will be interviewed by trained interviewers calling from a centralized research company. RESEARCH COMPONENT 2: MOBILE ACCESSIBLE SURVEY (YEAR ONE) The second component of this research strategy is a mobile/web friendly version of the baseline survey accessible to residents. This survey will be available to respondents for a limited period of time to avoid response duplication. RESEARCH COMPONENT 3: ANNUAL TRACKING SURVEYS (YEARS TWO–THREE) An annual tracking survey is proposed to measure shifts in perceptions, expectations, and satisfaction of residents. The data from the annual tracking survey will allow planners an opportunity to proactively address issues before they evolve into major obstacles. Measurement of Impact Our team will measure the success of our diversity, inclusion, and equity methods through an economic impact calculator (EIC). By tracking our team’s progress, we will be able to ensure that we are on track with meeting and exceeding the diversity and inclusion goals set forth for this project. These efforts will be led by the team’s community outreach group, The Hawthorne Agency. The EIC will track*: • Total economic impacts, including both direct and indirect benefits • How much of the benefit stays in the local area • Number of jobs generated within the impact area including indirect jobs • Total local, state and federal tax benefits of the project *Reports by contract or aggregate FORMER CHARITY HOSPITAL REDEVELOPMENT 15 Project Ownership and Investment Ownership and investment opportunities represent a significant strategy in promoting diversity, inclusion, equity, and access opportunities in this development. Our team’s plan is to implement equity at the ownership and developer levels with Hopkins Development Group who will have the majority interest in ownership and development fees in the Low Income Housing Tax Credit portion of this the Charity Hospital redevelopment and have a consulting role in the workforce, faculty/student, and market rate housing portions of the project. Hopkins’ valuable insight will help shape the Spirit of Charity Innovation District and continue to provide housing opportunities for the low and very low income future residents of the area. Units in the project set aside for workforce housing or affordability will also be kept in those designations to provide opportunity for permanent ownership by disadvantaged families and persons. It is anticipated that any sale of units—the aforementioned tenants will have priority in ownership opportunity—would occur only after a Historic, Low Income or Opportunity Tax Credit hold period. 1532 Tulane Partners intends to procure a local HUD-approved home ownership counseling firm to work with current tenants and prospective disadvantaged buyers, allowing disadvantaged tenants to build resources and receive home ownership counseling aiding in home ownership qualification. This would also allow for permanent housing opportunities in these set aside units, beginning approximately 3 years prior to the end of the investment hold period. Employment and career opportunities for neighborhood stakeholders and disadvantaged persons and businesses will ensure equity and increase quality of life. The proposal for the creation of a Tax Increment Finance District in the Spirit of Charity boundaries is a chance to provide just such opportunities. Opposed to using these TIF funds to pay down debt on a single building, better use would be to have the funds administered by a district-wide non-profit (such as the Greater New Orleans Foundation or a Spirit of Charity Innovation District located non-profit) to provide grants and subsidies to disadvantaged residents or business tenants for direct career or business growth in the area. 1532 Tulane Partners will set aside space and offer stipends or reduced rates for time at coworking and maker spaces within the innovation hub to recipients’ of any such grants. MAKE IT RIGHT COMMUNITY MEETING / NEW ORLEANS, LA FORMER CHARITY HOSPITAL REDEVELOPMENT 16 Construction Opportunities to realize equity outcomes during the construction of the project include, but are not limited to, ensuring the participation of disadvantaged business enterprise contractors, working with and supporting pre-apprenticeship and training programs that expand the pipeline of qualified workers, local hiring commitments, and other initiatives. Subcontractors who may not otherwise have the benefit of performing work on associated projects will be given the opportunity to expand, grow, and become more proficient in every area of the trade (i.e. accounting, trade skills, management, etc.) through the Charity Hospital redevelopment. Furthermore, our team’s contractor, The McDonnel Group (TMG), is committed to establishing long-term relationships with those who effectively perform their respective scopes of work and render a quality product. Our team will promote equity and demonstrate accountability in the diversity and inclusion goals that have been set forth by JLL, LSU REFF, and the City of New Orleans during the construction phases of the project through employment of the following means: Aggressive Outreach Outreach and good faith efforts are needed to generate interest, identify recruitment sources and structure procurement to allow MBE/WBE/DBE contracting firms the opportunity for involvement. We shall accomplish this via the following methods: community outreach meetings, advertisements, notification to related organizations, project scope forms, time lines and particulars sent to prospective MBE/WBE/DBE by certified mail return receipt requested, follow up by telephone five days after mailing, pre-bid meetings, structuring of bid packages to allow for breakdown of work and comparable scope between similar trades, and matching MBE/WBE/DBE’s with prospective bidders on large packages where they may not be competitive. TMG shall begin outreach through advertisements to trade organizations, special interests group publications and large distribution publications. This shall make the contracting opportunities widely recognizable. TMG’s advertisements shall demonstrate sincerity and responsibility. Subcontractors who respond shall be maintained in a database for future contact when their appropriate scope of work is bid. Targeted Bid Solicitation In addition to advertisements, TMG shall notify organizations and special interest groups targeting the construction industry. Letters requesting initial interest and membership listings shall be for¬warded to these organizations. Organizations wishing to participate shall have their members added to the bid solicitation contact list. TMG shall also advertise contracting opportunities by speaking at organization meetings. During these presentations, scopes of work with approximate dollar amounts shall be made clear and known. To accommodate bidding, TMG shall forward construction drawings and documents to the organization. When a particular scope of work is published for bid solicitation, TMG shall host pre-bid meetings if any of the following conditions are met: TMG deems it to be in the best interest of the subcontractors, subcontractors request a meeting, or the complexity of scope requires clarification. During the meeting, bidders shall be issued a bid package defining the scope of work, submission requirements, availability, and access to construction documents. Bid packages shall be structured for simplicity with easy identification of scope split between various sub¬contractors. To accommodate MBE/WBE/DBE participation, bid bonds shall not be requested unless deemed necessary by TMG. A bid bond shall be requested only if said scope of work meets one of the following characteristics: scope is highly technical, work is critical to the project schedule, scope of work is comprised of a high dollar value, or if required by Owner. Once bids are received, TMG shall ensure that all subcontractors bid on comparable scopes of work. Project Labor Agreements Our team has consulted with Tiger Hammond, President of the Greater New Orleans AFL-CIO. If our team is awarded, Tiger shall be engaged to implement a construction apprenticeship plan following the guidelines of the North America’s Building Trades Unions. This major inclusive provision of our proposal with the GNO AFL-CIO shall offer priority training to displaced and nearby residents with the opportunity to participate in construction. Contract negotiations and design shall allow ample time to integrate these individuals into the team so they can be gainfully employed by the time construction starts. This skilled craft apprenticeship system program establishes an “earn while you learn” system with opportunities for college credit through many of its parts. National partners include the National Urban League, Wider Opportunities for Women, and Helmet to Hardhats. The program provides career training to disadvantaged individuals including low-income, minority, veteran, and female workers, and is widely referred to as “the other four-year degree.” Our team proposes the use of a Project Labor Agreement (PLA) with the mission to realize equity outcomes and ensure access to economic opportunity for area residents. PLA’s positively impact construction projects, and research by nationally recognized institutions such as Cornell University, UCLA, and Michigan State University supports their use. The program shall provide: • Workforce training and apprenticeship programs • Education and work programs targeted to displaced residents • Local hiring provisions • Minimum wage rates and benefits • Disadvantaged Business Enterprise participation • Union Labor participation • Cost Controls • Timely schedule delivery • Heightened level of safety Cash Flow Assistance To assist MBE/WBE/DBE subcontractors who have inadequate monetary resources to fulfill their portion of work, TMG offers cash flow assistance. Cash flow assistance can include any of the following: TMG will allow the subcontractors assign their subcontract agreements to financial institutions to accommodate lending requirements which affects cash flow distribution, TMG will also offer subcontractors assistance in accounting by monthly payroll draws, joint check arrangements to vendors, etc. Efforts by TMG to aid MBE/WBE/DBE contractors shall continue into and through the construction process. Equal Opportunity Measures TMG shall create an environment conducive to equality among all subcontractors and employees regardless of age, race, or gender. TMG expects subcontractors to participate in such a work environment and requires acknowledgment of the same through The McDonnel Group’s Equal Opportunity Policy. TMG shall refer minority, woman, and disadvantaged applicants to the proper union halls, trade organizations, subcontractors when TMG cannot properly accommodate them. During construction, TMG shall meet employment goals by following up on initial contacts whether initiated by TMG or on behalf of the applicant, by requesting lists of minority participants through the local unions and trade organizations and disseminating lists to respective subcontractors. TMG shall bind all subcontractors to the same terms and conditions of the MBE/WBE/DBE subcontracting and hiring plan. All subcontractors are also encouraged to comply with the spirit of Open Access through all the same phases of their contracting and employment opportunities. Subcontractors shall be required to forward a written plan on how they are to meet the goals of the Subcontracting Plan. READ MORE ABOUT NORTH AMERICA’S BUILDING TRADE UNION HERE FORMER CHARITY HOSPITAL REDEVELOPMENT 18 Asset and Facility Management Opportunities to promote equity during the ongoing operation of the Charity Hospital Redevelopment project include, but are not limited to, ensuring the participation of disadvantaged business enterprise contractors, working with and supporting workforce development programs that expand the pipeline of qualified workers, local hiring and wage commitments, and other initiatives. For the ongoing asset and facility management phase of the project, the Hawthorne Agency will assist with the outreach efforts on behalf of 1532 Tulane Partners. Our team will track and archive all responses, and make them available for review by development team members and project stakeholders to promote a transparent process to our teams approach to equity in asset and facility management. Our team will also employ the following methods to promote equity and demonstrate accountability in the diversity and inclusion goals that have been set forth by JLL, LSU REFF, and the City of New Orleans: Aggressive outreach Our team will develop an aggressive outreach plan, generating interest for local workforce development through advertising and a direct, targeted, multi-level approach that will include: • Newspaper • Contact by fax/email/telephone follow-up (certified and “certifiable” businesses). • Segment on local weekly radio/television Small Business Exchange DBE engagement for the hiring of skilled workers and management groups for asset and facility management will be led by Valerie Voorhies of the Small Business Exchange (SBE). SBE has a 34 year history of providing DBE’s owned by minorities, women, and veterans (especially disabled veterans) with access to information and resources that enable them to successfully enter and compete in both local and global economies. We will utilize the SBE and its extensive database and outreach tools for inclusion in both the construction and facilities management for this project. To ensure transparency and ease of response, our team will provide “open access” to the procurement process through SBE’s “Bid Opportunity Tracking” system. This includes: • Pre-bid stage • Out-to-bid stage with planholder/prospective bidder listing • Bid results with sub-to-low bidders at 1st, 2nd and 3rd tier levels Educational Opportunities + Workforce Development Through our proposed programming for internship and apprenticeship opportunities within the innovation hub and in partnership with Tulane University, the Gulf Coast Education and Training Consortium, and other local institutions, we have designed a longterm equity and community investment strategy for the Charity Hospital redevelopment. These opportunities will be managed by the institutions with which they are associated, and will each serve as gateways to lifelong careers in the medical industry. In turn, these programs will provide a pipeline of skilled workers, adding workforce and productivity to the area’s biomedical industry and entrepreneurial incubators. FORMER CHARITY HOSPITAL REDEVELOPMENT 19 I J?i ind-cg. a 33116515135: I g! for!? ?'33 $511333".- E. n?wm?uum A: I. Fu??naq nil-U 05ft 1r Development Program Vision In 1938, Charity Hospital was constructed to expand the public healthcare resources available to the City of New Orleans. Outside of the immediate impact within its walls, the hospital also served as the impetus for the birth of a medical district that slowly grew around it. For nearly 70 years, Charity Hospital was an economic catalyst, spurring the growth of a district built around the medical industry. After Hurricane Katrina, the severity of damage to Charity Hospital permanently shuttered its doors, and the district surrounding it abruptly died. Once a bustling area, it became a strictly vehicular thoroughfare for commuters heading for I-10 or Claiborne Avenue and into the CBD. Our team’s vision is one of resurrection. While a district solely focused on the medical economy is one that cannot be reproduced, we believe an adaptive approach that honors the heritage of the Charity Hospital building—that includes work force and temporary housing, medical training programs, an innovation hub, retail, restaurants, and Tulane University as an anchor tenant—will become an economic catalyst for the Spirit of Charity Innovation District, as well as support the now expanded and dispersed medical district. We believe this redevelopment is the key to unlocking a renewed Spirit of Charity. Implementing the Spirit of Charity Innovation District Innovation districts are natural drivers of civic revitalization. When envisioned effectively, they increase density, encourage the development of new ideas, technologies, and companies, facilitate collaboration, and emphasize diversity and inclusion. Our vision for this new district is one that is open to all citizens of New Orleans. We believe it is important to build upon the historical medical nature of the district while bringing in elements that will uplift the area to its former vibrancy and vitality. In order to achieve this vision, we propose Charity Hospital to be the main hub of redevelopment—phase 1—with growth moving out from there. The redevelopment of the old laundry and power plant facilities­—phase 1B—into a mixed-use development including expanded innovation center and research facility, creating a connection to the Superdome and CBD, will draw more foot traffic into the area. Redevelopment of the Dibert Building—phase 2A—into permanent low income housing with mental health support services will fill a need for immediate access to mental health care for the city’s most at risk population. Redevelopment of the L&M Building— phase 2B—will include mixed-income housing (very low, low, moderate, and market rate). Finally, incorporating a new YMCA community center—phase 3—offering programs for seniors and youth will fill a need for a downtown presence for the Y of Greater New Orleans. Implementing principles of transportation oriented developments along Tulane Avenue will create a point of entry to the district for city-wide residents. We see redevelopment opportunities that would continue up and fan out from Tulane Avenue toward Claiborne Avenue, creating a connection to the culturally rich Claiborne corridor. View our full proposed implementation strategy on page 52. Mitigating Risk Risk is a factor in any development project. One of the key aspects of a successful project is identification and mitigation of those risks. In reviewing the district framework and site context, physical former Charity Hospital building structure, and uses and financing options, as well as studying past proposals from area stakeholders, 1532 Tulane Partners has identified several potential areas which could have detrimental effects to the success of this redevelopment project and has developed an approach to mitigate the risks they potentially impose. Timing is critical to the success of any project and agreement. Physical, political, or financial issues can quickly produce delays in process or roadblocks to effectively completing each phase of a project. Difficult to resolve or overly complex systems greatly increase the chances of project failure. With these potential risks in mind, our team deemed programmatic uses such as moving New Orleans City Hall and the Courts as overly complicated. Out of multiple discussions had with the Mayor’s office, we became aware of the complications that would result from this move, some being issues that have plagued the current location for years: building program for appropriate security, access, and ownership; issues of traffic and parking; and ultimately, political approval. Additionally, it became clear from our conversations that the Cantrell administration was not amenable to relocation to the Charity Hospital redevelopment. Heavy use of public subsidies, Community Development Block Grant funds, and other public dollars and programs diverts these funds from current planned uses as well as creates problems and potential shortfalls with the existing financial plans of the government agencies controlling those programs and funds. Additionally, regulatory delays during the construction of a complex stack of capital can lead to significant problems, delays, and possible collapse of a transaction. 1532 Tulane Partners will rely FORMER CHARITY HOSPITAL REDEVELOPMENT 21 primarily on private equity and lending with historic tax credits and bond issuance for the financial structure. This will reduce the risk of a complex, highly public subsidy not materializing in a timely manner. A more traditional private equity development plan allows the project to get underway quickly and start delivering positive benefits to the district and City as soon as possible. Unnecessary holding periods (through long or complex approval processes) have the potential to drive up costs and increases risks. Charity Hospital Proposed Program Summary The catalyst to the larger Spirit of Charity Innovation District is the redevelopment of the Charity Hospital Building, and our teams focus remains on this transformative project while remaining alert to opportunities for growth outward from here. Our proposed program for the redevelopment for Charity Hospital consists of a diverse plan that is all revenue generating while still being community driven. It includes the following: SIZE LOCATION REVENUE PRODUCING Tulane University 175,000 SF levels 2-4 ✓ Housing Triumph Housing Management 465,075 SF levels 5-18 ✓ Innovation Land as Art, LLC 66,425 SF levels 1-3, 11-13 ✓ Education Tulane University, Charter programs 15,900 SF levels 12-13 ✓ Community TBD (Third-Party Management) 81,000 SF level 1 Retail TBD (Third-Party Management) 46,175 SF levels 1 + 3 ✓ Parking TBD (Third-Party Management) 86,950 SF basement/lower level ✓ PROGRAM MANAGED BY Office OFFICE Tulane University stands as an anchor tenant for the building utilizing the location for non-academic administrative offices. Tulane’s involvement provides the university the opportunity to strengthen their presence within downtown and the SCID. Their inclusion in the project provides a tenant that lowers the risk of the entire project as a long standing institution in the district and New Orleans. After phase 1A and the completion of the Charity Hospital redevelopment, we propose utilizing office space in the Butterworth and Hutchinson buildings across Tulane Avenue for traditional offices, providing small business owners and entrepreneurs access to and use of the innovation hub. This would also act as an income source to support the proposed non-profit hub. HOUSING The housing component will include work force housing, faculty/student housing for Tulane University, market-rate housing, and coliving units. This combination allows for a diverse population to inhabit the building in an equitable way. INNOVATION The innovation hub will allow for residents of the city to have affordable access to collaborative space and spur entrepreneurial growth within the Spirit of Charity Innovation District. Here, community members will have an opportunity to launch enterprises and businesses, expand existing operations without large capital expenditures, and grow entrepreneurial enterprises. Part of our financial proposition includes allocating a portion of the EDD/TIF funding to the creation of a grant program controlled by the Greater New Orleans Foundation that would be available to DBE individuals and organizations. Our team has begun discussions with area high schools (New Harmony High School and Living School New Orleans), universities (Tulane and UNO), and the Gulf Coast Education and Training Consortium about creating internship opportunities within the innovation hub for students. A portion of the innovation will be incorporated into lower floors of the Charity Hospital, allowing for a connection to the Tulane Avenue corridor, and conference and meeting space located on upper levels. We are also proposing that a more technologically oriented section to be located in the old Laundry Building (phase 1B). The use of these low rise buildings allow for a connection to the Perdido and Poydras Avenue corridors. This also allows this block to become the foothold for the expansion of the Spirit of Charity Innovation District out of the Charity Hospital redevelopment. Committed to knowledge development and serving as a community wide asset, the innovation hub will showcase cutting-edge research, facilitate learning activities in a fun environment, and train future entrepreneurs and innovators. It will be an integral party of the larger Spirit of Charity Innovation District. EDUCATION Our proposed program calls for several potential institutional uses: medical training programs, medical research facilities (phase 1B), and an Orleans Parish School Board (OPSB) Charter Launch. The medical training programs will be focused on bringing high school students from New Harmony High School and Living School New Orleans, placing them on track for successful careers in the medical industry and connecting them with working professionals surrounding the district. The medical research facilities will be placed in the Laundry Building in what we are proposing as phase 1B of the larger Spirit of Charity Innovation District implementation strategy. As New Orleans is almost exclusively now all charter schools who are responsible for finding their own facility placement, OPSB has proposed having space within Charity Hospital where newly launched charter schools could be located for 2-3 years prior to finding a permanent location in the city. COMMUNITY Within the community-based development space, our vision includes a daycare facility, community art galleries, public outdoor amenity space, and an area dedicated to the History of Charity Hospital. RETAIL The retail component of our redevelopment will focus on locally owned businesses with a focus on locally made products and local hiring, providing jobs to those living within or nearby the district. PARKING While the team believes that public transit should be the priority for moving the community to and from the building, we understand that parking is an important component for any large scale development in downtown New Orleans. Creating underground parking in the underutilized basement allows for positive parking counts for the district and project while not removing any prime usable square footage from the historic building. SPIRIT OF CHARITY INNOVATION DISTRICT FORMER CHARITY HOSPITAL REDEVELOPMENT 23 SAENGER THEATRE CLAIBORNE CORRIDOR JOY THEATRE PROPOSED SPIRIT OF CHARITY INNOVATION DISTRICT NEW ORLEANS PUBLIC LIBRARY NEW ORLEANS BUSINESS ALLIANCE NEW ORLEANS BIOINNOVATION CENTER TULANE MEDICAL CENTER DUNCAN PLAZA TULANE UNIVERSITY MEDICAL SCHOOL CITY HALL POYDRAS CORRIDOR LSU SCHOOL OF MEDICINE PUBLIC PLAZAS/PARKS EDUCATIONAL INSTITUTION BUSINESS CIVIC MEDICAL INSTITUTION SPORTS / ENTERTAINMENT URBAN CONTEXT DELGADO CHARITY SCHOOL OF NURSING LOUISIANA CANCER RESEARCH CENTER SUPERDOME & SMOOTHIE KING CENTER LSUHSC SCHOOL OF MEDICINE FORMER CHARITY HOSPITAL REDEVELOPMENT N 24 IBE CA AI BO E CO DO ILL ES T LS T R E LO YO AN LA SA LLE TUL LA AV E CL RN I RR NA RV PO YD RA SC O RR IDO R N SITE CONTEXT + CONNECTIVITY FORMER CHARITY HOSPITAL REDEVELOPMENT 25 PERDIDO ST PROPOSED TULANE RESEARCH FACILITY (FUTURE PHASE) PROPOSED NNOVATION HUB (FUTURE PHASE) VEHICULAR DROP-OFF FRER ET ST HEAL GARAGE ADDITIONAL PARKING GRAVIER ST T LLE S LASA BELOW GRADE PARKING ENTRY INTERIOR PUBLIC COURTYARDS PUBLIC PLAZA POCKET PARK PEDESTRIAN AMENITIES BUS STOP TULANE AVE 0’ SITE PLAN 25’ 50’ 100’ 200’ N FORMER CHARITY HOSPITAL REDEVELOPMENT 26 4 VIEW LOOKING WEST C6URTYARD 5 WEST INTO ATRIUM COMMUNITY / HIGH SCHOOL SPACE PUBLIC PLAZA: RETAIL RESTAURANTS INTERACTIVE WATER FEATURE LA SA L LE N ST VE NE A TULA NORTH VIEW COLLABORATIVE WORKING SPACE MEDICAL SCHOOL STUDENT HOUSING FLEX HOUSING UNITS GRAVIE R ST LASAL LE ST INNOVATION HUB CONFERENCE SPACE N SOUTH VIEW INNOVATION HOUSING COMMUNITY TULANE ADMINISTRATIVE OFFICES RETAIL PARKING PROGRAM DISTRIBUTION INTERIOR PUBLIC COURTYARD: RETAIL RESTAURANTS PUBLIC ROOF TERRACE FORMER CHARITY HOSPITAL REDEVELOPMENT 29 ST ST GRAVIER GRAVIER GRAVIER ST LLE LLE LASA LASA STL ST LE ASAL ST LEVEL LEVEL 1 1 LOWER LOWER LEVEL LEVEL LEVEL 1 LOWER LEVEL TULANE TULANE AVE AVE TULANE AVE LEVEL LEVEL 2 2 LEVEL 2 LEVELS LEVELS 5-6 5-6 MEDICAL MEDICAL SCHOOL SCHOOL STUDENT STUDENT HOUSING HOUSING LEVELS 5-6 MEDICAL SCHOOL STUDENT HOUSING LEVEL LEVEL 3 3 LEVEL LEVEL 4 4 LEVEL 4 LEVEL 3 INNOVATION INNOVATION INNOVATION INNOVATION HOUSING HOUSING HOUSINGHOUSING COMMUNITY COMMUNITY COMMUNITY COMMUNITY TULANE TULANE ADMINISTRATIVE ADMINISTRATIVE OFFICES OFFICES TULANE ADMINISTRATIVE OFFICES TULANE ADMINISTRATIVE OFFICES RETAIL RETAIL RETAIL RETAIL FLOORPLAN - FLOORS LOWER-10 LEVELS LEVELS 5-105-10 LEVELS 5-10 0’ 25’ 0’ 50’ 25’ 0’ 50’ 25’ 100’ 50’ 100’ 100’ 200’ 200’ N 200’ N N PARKING PARKING PARKINGPARKING FORMER CHARITY HOSPITAL REDEVELOPMENT 30 ST ST GRAVIER GRAVIER LLE LLE LASA LASA ST ST LEVEL LEVEL 1 1 12 LEVEL LOWER LOWER LEVEL LEVEL LEVEL 11 TULANE TULANE AVE AVE LEVEL LEVEL 2 LEVEL 132 LEVELS LEVELS 5-6 5-6 MEDICAL MEDICAL SCHOOL SCHOOL STUDENT STUDENT HOUSING HOUSING LEVEL LEVEL 3 3 LEVEL LEVEL 4 4 LEVEL 14 LEVELS 15-18 INNOVATION INNOVATION INNOVATION INNOVATION HOUSING HOUSING HOUSINGHOUSING COMMUNITY COMMUNITY COMMUNITY COMMUNITY TULANE ADMINISTRATIVE OFFICES TULANE TULANE ADMINISTRATIVE ADMINISTRATIVE OFFICES OFFICES TULANE ADMINISTRATIVE OFFICES RETAIL RETAIL RETAIL RETAIL FLOORPLAN - FLOORS 11-20 LEVELS LEVELS 5-105-10 LEVELS 19-20 0’ 25’ 0’ 50’ 25’ 0’ 50’ 25’ 100’ 50’ 100’ 100’ 200’ N 200’ N 200’ N PARKING PARKING PARKING PARKING FORMER CHARITY HOSPITAL REDEVELOPMENT 31 . . Ii i - 1 "lL??41?2? tic-bu) 51.131}35"? 4: "rt-334? . . a? . . VIEW LOOKING . ,ir *3 e4: AMENITIES The reimangining of Charity will feature a focus on exterior amenities and public space which will serve to better connect the building and its spaces to the community and its adjacent context. These features will serve to create visual and physical connections to invite the community in, creating vibrant social spaces that capture the spririt of the neighborhood and New Orleans. LA SA L LE N ST VE NE A TULA NORTH VIEW PUBLIC PLAZA RETAIL RESTAURANTS INTERACTIVE WATER FEATURE GREEN ROOFING PROVIDES AMENITY AND STORM WATER MANAGEMENT ROOFTOP AMENITIES INTERIOR AND SUPPORT SPACE POCKET PARK PEDSTRIAN AMENITIES LASAL LE ST SHARED TENANT AMENITIES GRAVIE R ST INTERIOR PUBLIC COURTYARD: RETAIL RESTAURANTS N SOUTH VIEW PUBLIC ROOF TERRACE SITE AMENITIES FORMER CHARITY HOSPITAL REDEVELOPMENT 33 CIRCULATION Many of Charity’s existing internal vertical circulation paths will be utilized. Non-original exterior stair additions will be removed and new internal stairs will be added to accomodate circulation and exiting needs. Throughout the building are opportunities to connect two floors together with the use of open stairs, encouraging connectivity and collaboration. LA SA L LE ST N VE NE A TULA NORTH VIEW NEW INTERIOR STAIR CIRCULATION TO REPLACE NON-ORIGINAL EXTERIOR STAIR ADDITIONS LASAL LE ST NEW INTERIOR STAIR CIRCULATION TO REPLACE NON-ORIGINAL EXTERIOR STAIR ADDITIONS GRAVIE R ST N SOUTH VIEW CIRCULATION FORMER CHARITY HOSPITAL REDEVELOPMENT 34 SUSTAINABLE STRATEGIES The reinvigoration of Charity will feature a multitude of integrated sustainable strategies. These strategies will serve to reduce the building’s carbon footprint, reduce negative impacts of stormwater runoff, and better connect its occupants to nature and the community. NATURAL VENTILATION LA SA L LE N ST NORTH VIEW VE NE A Charity’s narrow cross section provides an ideal configuration to facilitate natural ventilation with the ability to capture cross ventilation. The natural ventilation strategy serves to reduce the building’s energy footprint and connect its occupant to the outdoors. TULA DAYLIGHTING Charity’s narrow footprint also provides an ideal configuration to deliver excellent daylighting opportunities throughout. Reducing artificial lighting results in lower carbon footprint and allows occupants to connect to the outdoors and their circadian clock. LA SA L LE N ST VE NE A NORTH VIEW SUSTAINABLE STRATEGIES TULA FORMER CHARITY HOSPITAL REDEVELOPMENT 35 STORM WATER Stormwater will be captured at Charity’s many roof tops and held within the green roof structure and rooftop cisterns for treatment and reuse within the building, for uses like flushing toilets. The project seeks to be a positive contributor in helping New Orleans to manage stormwater in a sustainable manner. LA SA L LE N ST NORTH VIEW VE NE A TULA ENERGY / ENVELOPE Charity will feature several energy and high performance envelope strategies. The project will make use of the existing Enwave systems nearby. Exterior cladding is to be re-anchored across the entirety of the envelope to protect the histroric integrity of the building for generations to come. New continuous insulation will be provided across the envelope. Low energy systems are to be used throughout to implement loads efficiently and maximize reduction in energy and carbon footprint. LA SA L LE N ST VE NE A NORTH VIEW SUSTAINABLE STRATEGIES TULA FORMER CHARITY HOSPITAL REDEVELOPMENT 36 II I II II 1?gun-n I . - uunnl u! I'll nunul .- .- . VIEW LOOKING NORTHWEST ACROSS TULANE AV Tenant / Renter / Operator Commitments To date, 1532 Tulane Partners has identified and developed non-exclusive agreements with the following tenants, renters, and/or operators to complete the programming for the Charity Hospital redevelopment: • • • • • • • • • Tulane University - administrative offices, research, academic programs, and faculty/student housing Triumph Housing Management - housing management Land As Art, LLC - innovation hub New Harmony High School - apprenticeship training program/partnership with innovation hub Living School New Orleans - apprenticeship training program/partnership with innovation hub Gulf Coast Education and Training Consortium - apprenticeship training program/partnership with innovation hub (in coordination with the University of New Orleans and other local institutions) Core USA - apprenticeship training program/partnership with innovation hub Orleans Parish School Board - Charter school launch program YMCA of Greater New Orleans - new community center within phase 1B of the proposed SCID implementation strategy FORMER CHARITY HOSPITAL REDEVELOPMENT 39 Tulane University Office of the Chief Operating Officer 327 Gibson Hall 6823 St. Charles Avenue New Orleans, Louisiana 70118 August 9, 2018 Mr. Joseph A. Stebbins, II President 1532 Tulane Partners, Inc. 4127 S. Claiborne Ave. New Orleans, LA 70125 RE: Letter of Interest in Leasing Office Space and Research, Academic, Faculty/Student Housing in the Adaptive Reuse of the Former Charity Hospital Building. Dear Mr. Stebbins, Many thanks for the meeting on August 8th. We understand that 1532 Tulane Partners, Inc. is a Qualified Respondent to the Request for Proposals for the Adaptive Reuse of the former Charity Hospital building, and that on August 20, 2018, your company will be submitting its response to the Louisiana State University Real Estate and Facilities Foundation. Tulane University shares your enthusiasm in the redevelopment of the former Charity Hospital Building and is interested in exploring participation with you in the plans for restoring it to its rightful place as an iconic part of life in the city. As you are aware, Tulane has had a significant presence in this medical district and sees it as a priority for the university to maintain and enhance its presence in that area. As we discussed at our meeting on August 8th, Tulane’s particular interest is in potentially occupying a total of 300,000 square feet in the Charity Hospital building, which could be comprised of 175,000 square feet for administrative office space and 125,000 square feet for research, academic, and faculty/student housing. Our interest in this project is dictated by circumstances as a conditional one, and of course is not binding, nor is it exclusive. Please continue to advise us of your plans and status as events unfold. Regards, Patrick Norton Patrick Norton, Senior Vice President and Chief Operating Officer FORMER CHARITY HOSPITAL REDEVELOPMENT 40 August 15, 2018 Yoel Shargian, President 1532 Tulane Partners, Inc 4127 S. Claiborne AV New Orleans, LA 70125 Re: Property Management Firm for the Redeveloped Charity Hospital Building Dear Mr. Shargian: Please accept this letter as our commitment to work with your team as the Property Management firm in charge of property and facility management for the Redeveloped Charity Hospital Building. As you are aware, our company, Triumph Housing Management (“Triumph”), was established in early 2011 and is one of the nation's fastest growing and sucessful managers of Conventional, Low Income Housing Tax Credits and Project Based Section 8 apartment communities. Headquartered just north of Atlanta in Cumming, Georgia, Triumph currently manages approximately 10,000 multi-family units throughout the Southeast, Midwest and Northeast. Triumph offers a proven track record and invaluable experience in assisting our clients with leasing up newly developed communities; which includes 4 apartment communities or roughly 1,800 units throughout the Southeast and Midwest. As a third-party management firm, Triumph is keenly focused on customer service to our client owners to promote long-term value, asset preservation, and cost efficiency. Triumph offers a full suite of management services and solutions including superior property operations management, lease-up management, financial services and reporting, facilities maintenance and operation, acquisitions and due diligence services, professional development and training, and successful strategic business and marketing plan development and implementation. In addition, our success is the result of a diverse staff of well-trained and highly-skilled professionals including regional managers, community managers, leasing agents and maintenance personnel, as well as expert accounting, information systems, and compliance personnel; and we are proud to state that close to 50% of our portfolio is staffed with minority employees. All team members are empowered to use their local market knowledge, ingenuity, and resourcefulness to beat the competition. In addition, our employees work with a sense of urgency and are sensitive to evolving trends; possessing the ability to respond and adapt in order to maintain profitability at each community we manage. In addition, Triumph offers quality and efficient 5920 Odell Street ● Suite 201 ● Cumming, GA 30040 P: 678.256.3832 F: 678.389.7715 WWW.TRIUMPHMGT.COM FORMER CHARITY HOSPITAL REDEVELOPMENT 41 property management services - with the personnel, experience, training, and, above all, strong track record for handling challenging or troubled assets. Every owner and financial institution we have the privilege to serve is unique and our continued success is based upon our flexibility to work in a constantly changing environment. Triumph believes the most important aspect of providing global business and human capital solutions is by understanding the needs of our client, executing our duties as assigned within the management agreement, taking care of our residents, and being the best relationship managers in the business. Today’s dynamic real estate market poses many difficulties. Through discipline and focus, Triumph delivers the results our clients expect. Our references are strong and we are proud of the reputation Triumph has earned in the marketplace. We are very excited about the opportunity to work with you and your team on this historic initiative and look forward to your response. Sincerely, Triumph Housing Management, LLC Paul J. Ponte Chief Executive Officer Page 2 of 2 FORMER CHARITY HOSPITAL REDEVELOPMENT 42 Mr. Joseph A. Stebbins, II President 1532 Tulane Partners, Inc. 4127 S. Claiborne Ave. New Orleans, LA 70125 RE: Letter of Interest in Development of Innovation Hub at the Former Charity Hospital Building and Other Related Facilities Dear Mr. Stebbins: We understand that 1532 Tulane Partners, Inc. is a Qualified Respondent to the Request for Proposals for the Adaptive Reuse of the former Charity Hospital building, and that on August 20, 2018, your company will be submitting its response to the Louisiana State University Real Estate and Facilities Foundation. We wish you well in redeveloping this long-standing beacon of health care in New Orleans. As you are aware, our team has worked to help develop innovation-based developments in multiple cities around the country, and we want to be a part of your plans for restoring Charity Hospital to its rightful place as an iconic part of life in the city and for creating a vibrant Innovation District for New Orleans and the surrounding region. Thank you for inviting our team to work integrally with you to help curate what we are currently calling The Crossing. Given our team’s multidisciplinary demographic, we are particularly well-positioned for this project. Our role is to help in developing both the program of the innovation hub within the main building of Charity and the laundry and power facilities across Gravier St. Additionally, we are planning to oversee the tenants who inhabit the space. Our vision for The Crossing is the place for creativity and community well-being to blossom. The Crossing will aggregate and showcase the innovative strengths of the city of New Orleans. It will benefit and support local residents and the 24/7 workforce, and it will attract tourists. By providing spaces for new ideas to be fostered, shared, and experienced, The Crossing will be relevant and enriching to peoples’ daily lives. This is an inclusive place where real things happen, where new ideas are generated and shared, and where lives are changed. Our commitment to you is dictated by circumstances as a conditional one. Our interest in your efforts is unconditional. Please continue to advise us of your plans and status as events unfold. We look forward to working with you. Regards, Mark J. Dehner, Manager P.O. Box 411828 . Kansas City, MO 64141-1828 FORMER CHARITY HOSPITAL REDEVELOPMENT 43 August 8, 2018 Re: 1532 Tulane Partners Inc Charity Hospital Redevelopment Youth Medical/Innovation Training Center Dear Mr Stebbins, We are pleased to be able to work with you on the development of a center at the Former Charity Hospital Building for the training of High School aged students in the medical arena and other innovative professions. xposure of today’s youth to the skills needed to prepare them for careers that allow them to be on a path to quality employment and growth. We would be happy to work with you and help develop the curriculum for a center that allows for multiple schools to use the facility and to craft the kind of programs that can take the best advantage of the biomedical district, the innovation and maker space and the historically significant Charity Hospital Building. We look forward to the development of a program that will help launch the youth of New Orleans to challenging careers in Healthcare and Healthcare support and other innovative career paths. Providing exposure and trying on the myriad of career paths will allow for New Orleans youth to embark on a rewarding career path that will serve them their entire lives. We hope for your proposal for the building’s success and look forward to creating a great new opportunity for success for up and coming New Orleanians! Regards, Sunny Summers, School Leader www.newharmonyhigh.org 2539 Columbus, New Orleans, LA 70119 FORMER CHARITY HOSPITAL REDEVELOPMENT 44   July 17, 2018    Re: 1532 Tulane Partners Inc Charity Hospital Redevelopment Youth Innovation Internship  Program/Training Center    Dear Mr Stebbins,    Living School is pleased to be able to work with you on the development of a program at the Former  Charity Hospital Building for the training of high school aged students in new opportunity and  innovative professions. Exposure of today’s youth to the skills needed to prepare them for careers  that allow them to be on a path to quality employment and growth.    We would be happy to work with you and help develop the curriculum for a center that allows for  multiple schools to use the facility and to craft the kind of programs that can take the best  advantage of the biomedical district, the innovation and maker space and the historically significant  Charity Hospital Building.    We look forward to the development of a program that will help launch the youth of New Orleans to  challenging careers in innovative career paths. Providing exposure and trying on the myriad of career  paths will allow for New Orleans youth to embark on a rewarding career path that will serve them  their entire lives.    We hope your proposal for the building’s future is successful and look forward to creating a great  new opportunity for up and coming New Orleanians!    Regards,    Stefin Pasternak  CEO & School Leader    spasternak@livingschoolnola.org (504) 410-5736 LivingSchoolNOLA.org    FORMER CHARITY HOSPITAL REDEVELOPMENT 45 From: "Mark B. Stahl" Date: August 8, 2018 at 4:40:15 PM CDT To: 'Joseph Stebbins' , 'Mark Heck' Subject: Letter of support for CCNO Development Proposal Re: Charity Hospital Redevelopment Dear Joseph and Mark, I would like to share with you this letter of support for your response to the RFP for the redevelopment of the former Charity Hospital. As a business development consultant engaged in creating project partnerships among higher education, business, and government, I would especially interested in assisting your efforts to include and build an educational component that would provide training opportunities and build skills that would enable high school students to participate in successful bridge programs and educational experiences that will increase success in preparing for careers in (or related to) healthcare. I think the way in which I could be of the most assistance to this proposal is in using the higher education / economic development networking resources of the Gulf Coast Educational and Training Consortium to build partnerships that will produce effective results. By bringing together economic development resources that will help identify prospective students with higher education initiatives that create relevant educational/training programs, we can leverage community resources to build new opportunities for your redeveloped Charity Hospital concept. The Gulf Coast Education and Training Consortium looks forward to engaging its community partners with your project goals to provide high school students with education and training experiences during the school year as well as summer bridge and internship programs. I’m confident our community partners will be glad to engage in discussion of these and other educational initiatives you would like to have considered for the Charity redevelopment project. I have already reached out to two partners who are interested in participating in this project when it is funded. Best wishes with your excellent proposal. All the best, Mark Mark B. Stahl Gulfcoast Regional Education and Training Consortium 2000 Lakeshore Drive KH 305 New Orleans, LA, 70148 Cell: 504-439-2001 Email: mark.b.stahl@gmail.com Web: www.greatconsortium.org FORMER CHARITY HOSPITAL REDEVELOPMENT 46 ! CORE USA Sustainability Institute 8539 Willow Street New Orleans, LA 70118 To: Cc: Re: 16 August 2018 1532 Tulane Partners Inc Mark Heck John C. Williams Architects, LLC 824 Baronne Street, NOLA 70113 Charity Hospital Redevelopment CORE USA Sustainability Institute Dear Sir or Madam CORE USA is pleased to work with you to establish a relationship between ourselves and the greater community in redeveloping Charity Hospital. Our ten years of teaching live learning sessions on sustainability have allowed us to introduce thousands of highschoolers, hundreds of undergraduate, masters and PhD candidates in local and national and international colleges—as well as hundreds of contractors, realtors, homeowners, entrepreneurs, teachers, scientists, engineers and others—how to live a more balanced healthy life, personally, professionally, and publicly. Over years, many members of our network have learned how to be more efficient and effective on the job and have maintained a superior focus to pursuing professional goals. Our headquarters is a historic landmark, once a corner grocery, African Americans living in the Carrollton Area of New Orleans during the 1960s leased the building to engage in peaceful organizing and civic engagement—until they ran out of money in 1970. In April of that year, staff of the Carrollton Advocate, their self published newspaper, wrote “We will return”. Those words inspired us to create a community owned learning cooperative whereby the many young people who were educated then, who are now in their 40’s an 50’s and raising children and grandchildren of their own, could come together. We have learned much in that process, and believe our experience will benefit you and the people and businesses within Charity’s impact area(s). We look forward to partnering with you to ensure Charity Hospital reaches it’s greatest potential. Please feel free to contact me at 504-237-9556 (cell) should you have any further questions of me. TILMAN HARDY Founder/CEO, CORE USA FORMER CHARITY HOSPITAL REDEVELOPMENT 47 DocuSign Envelope ID: F97CE8C4-4640-4903-A8E7-908FDC37DE17 August 17, 2018 Mark Heck Architect, John C. Williams Architects, LLC RE: Charity Hospital Development Dear Mark: The Orleans Parish School Board is continually looking to identify and provide first-class facilities for the public school students of New Orleans. While roughly half of the students in our citywide portfolio go to school in a new or substantially renovated building, many others do not currently have that same opportunity. As we work to provide opportunities for schools yet known, we have a real need for additional classroom space for either career focused schools or incubator space for schools just launching. We would be very interested in working with your team to potentially use some of the designated space at the old Charity Hospital site. As we continue to strive to provide first-class facilities for all students of the city, we are excited about the potential of unlocking space in the downtown corridor of the city for students across New Orleans. I look forward to continuing this conversation with you and your team. Best, Eric Seling Chief Operating Officer, Orleans Parish School Board FORMER CHARITY HOSPITAL REDEVELOPMENT 48 v. s? the YMCA or GREATER New ORLEANS Board of Trustees Of?cers Ehair Richard Yancey Vice their Elder Ewin Past Chair George Wilson Treasurer Neel Fallis Secretary Karlin Fitzmorris Riles Natalie Barnes Jay Dumas Matt Faust Peter Freeman Mary Hassinger Schmidt Paul Kevanaugh Buster Lyons Paysse Claudia Medina Peter Menge Millard ?woody? Morrison Carlo Mulvenna inf. Shepard Pleasants, .lr. Rachel Rodi Kate Sanders Henry Martin Steih Tricia 1arise Meg Vitter Felton Win?eld EMERITUS MEMBERS Teddy Barkerding Robert Brown Karen DeBIieux C. Allen Favrot Amy Goodman Marlin Gasman Scott Hardie RohErt Hassinger OP. 'Eoots? Hoffman, Jr. Hans Jon assen Kelly Gray Parker Dick H. Finer Pratt Frovosty John K. Roberts, Jr Betty A. IIrifilsors Jeffrey YMCA. or GREATER New ORLEANS President E: EEO Gordon R. Wedge FDR YOUTH FOR HEALTHY LIVING FOR SOCIAL RESPONSIBILITY August 15, 2013 Mr. Joseph A. Stehbins, II President 1532 Tulane Partners, Inc. 412? S. Claiborne Ave. New Orleans, LA T0125 RE: Letter of Interest for the Possible Location of a Future YMCA Facility sited within the Spirit of Charity Innovation District Dear Mr. Stebbins: Thank you for reaching out to the YMCA of Greater New Orleans. We understand that 1532 Tulane Partners, Inc. is a Quali?ed Respondent to the Requ6st for Proposals for the Adaptive Reuse of the former Charity Hospital building, and that on August 2U, 2018, your company will be submitting its response to the Louisiana State University Real Estate and Facilities Foundation. We wish you well in redeveloping this long-standing beacon of health care in New Orleans, and want to be a part of your plans for restoring it to its rightful place as an iconic part of life in the city. We also work in close collaboration with the historic Dryades WCA. Together we can add tremendous value to the cornmunity through the Spirt of Charity Innovation District. Our desire is to develop a presence as more than a or place to shoot hoops? as the YMCA, we are centered with specialized programming for youth, families and senior citizens. We are aware that a public engagement process is underway. Please let us know how we can support your efforts in that public process. Please continue to advise us of your plans and status as events unfold. We look forward to working with you. Sincerely, a' :1 If} pj} . Gordon R. Wedge President and CEO cc: Mr. Doug Evans President and CEO Dryades YMCA YMCH OF ERERTER NEW ORLEANS 320 Metairie Hammond Hwy, Ste. 321 Metairie. La F0005 PHH [504] 563-9622 Fame (504] 533-0080 i?m?im FORMER CHARITY HOSPITAL REDEVELOPMENT 49 Other Elements Easements The project team acknowledges and intends to honor all existing easements on the property including but not limited to the Entergy steam and chilled water access beneath the Charity Hospital building property. Pedestrian and Vehicular Circulation Our proposal to redevelop Charity Hospital includes strong linkages to adjacent properties throughout the Spirit of Charity Innovation District, and a robust pedestrian experience that include amenities that will facilitate connectivity, create vibrancy, and deliver a walkable district. This network of pedestrian linkages will aid in the Charity’s catalytic impact on the district, spur additional development, and allow the true Spirit of Charity to be revealed. The north courtyard will be transformed into a vibrant public plaza with mixed uses to engage the community through events and programming. In concert with the activated low roof decks adjacent to the enclosed south courtyard, this area will activate the street and draw the public into Charity, making it a vibrant community hub. Circulation corridors around the perimeter of the property will be enhanced with landscaping and pocket parks to provide activation at a smaller scale. Vehicular circulation of the surrounding streets will be retained, and the existing drive on the south side of the building will be enhanced for site drop-off. We seek to build a strong connection to the Superdome and the Poydras Business Corridor by way of site enhancements to the south and the eventual inclusion of the Laundry Building / Power House to the south, that will in turn serve to further activate and strengthen the Spirit of Charity Innovation District. Streetscape Details We plan to provide a streetscape with a rhythm of street trees and smaller scale plantings around the perimeter of the Charity Hospital site. The streetscape will serve as an additional means to connect and provide continuity across the district while providing beautification and integration of pedestrian amenities such as seating areas. Please refer to the site plan on page 26 for additional detail. General Site Grading / Public and Private Green and Open Space Site grading at Charity Hospital will largely remain “as is.” The existing south drive will be retained and converted as a primary drop off for the building. The north courtyard and adjacent site, the low south roof terraces, and the internal southern courtyards will all be open for public use. The northwest corner will be terraced to create an activated exterior space immediately adjacent to Tulane Avenue where a passerby can sit an enjoy lunch or outdoor concerts. This space will serve as a direct connection to the street while the former check-in and café buildings at the north will be fitted with operable glazing to open the north courtyard and invite in the community. Please refer to the site plan on page 26 and spatial renderings on pages 27-28, 32, and 37-38 for additional detail regarding these areas. Stormwater detention will be supplied beneath the northern courtyard as a sustainable strategy to retain stormwater on site. Additionally, the high roof areas will serve as shared amenities for residents and students while integrating sustainable stormwater features for retainage on site and diversion from the city’s storm sewer system. Parking Solutions Parking will be provided in the lower level of the Charity Hospital building. Parking will be fitted with direct connections to the public interior space of the enclosed south courtyards. This connection will bring daylight into the sub-grade level and draw visitors up and into the activated public spaces at the core of the building. In addition, the team intends to engage in an agreement with the Heal garage to the southeast to further serve parking needs of the building. FORMER CHARITY HOSPITAL REDEVELOPMENT 50 Non REFF or State-Controlled Property Our vision for the Charity Hospital redevelopment and our larger proposed implementation strategy is to add to the larger Spirit of Charity Innovation District (SCID)—we envision this project adding education; workforce development; market-rate, faculty/ student, and affordable housing; retail; and community amenities such as greenspace and courtyards, vibrant uses that serve the surrounding community. Our team is committed to redeveloping Charity Hospital in a manner that will not only prevent the displacement of existing businesses and cultural institutions, but carefully consider and include them in an overall vision for the impact this project will have on the larger SCID. Thoughtfully integrating this site’s nuanced context—surrounded by numerous community members who consider themselves stakeholders for this project—has been a primary driver for our program selection. Our team’s goal is that the redevelopment will be a showcase for economic growth firmly planted in principles of equity and inclusion, as well as innovation and design excellence. Our proposal includes a phased implementation strategy has been designed to build on the momentum of the work put in by the LSU REFF, the “Foundation,” and City of New Orleans to date. Our community outreach program ensures that we are undertaking our proposed development in an inclusive and equitable manner, and reflects the true “Spirit of Charity.” The expansion beyond Charity Hospital includes adding an expansion to the innovation hub, research facilities, additional sustainable housing, mental healthcare facilities, a new YMCA location, and office space. For the seamless and successful development of this project, we have carefully considered utlizing properties that mitigate risk and impact the continued revitalization of the SCID. The properties that we have identified as prime opportunities for phases II-III are all operated through REFF or state-controlled ownership agreements. Additionally, beyond the phased implementation, we have identified a vision that could include the redevelopment of current city hall dependent on the city and mayor’s needs and desires, and the construction of another civic building to anchor Duncan Plaza. Our team has had discussions with Mayor Cantrell about the relocation plans for City Hall, and will continue to work with the Mayor and her staff as developments progress to aid in identifying potential properties within the SCID for the relocation. FORMER CHARITY HOSPITAL REDEVELOPMENT 51 1C 2B 2A 1A 3 1B 4 5 N SPIRIT OF CHARITY INNOVATION DISTRICT IMPLEMENTATION STRATEGY Our proposal includes an implementation plan for a phased request of control of multiple REFF or state-owned buildings that are currently vacant or being vacated in the near future. We also have included other notable buildings in this phased plan as well as our vision of their long term use. These buildings are clearly controlled by other entities and our involvement is contingent upon a separate procurement process. For state-controlled buildings currently occupied, our team will work with operating entities and the parameters of their needs as they prepare to relocate. Our proposed implementation plan is as follows: PHASE 1 1A Charity Hospital redevelopment 1B UMC General Services/Laundry Building/ Emergency Generator Building #1/Power House/Main Warehouse/Maintenance Shop: proposed expansion of innovation hub and a research facility for Tulane University 1C PHASE 2 2A Dibert Memorial Building: permanent supportive and low income housing with mental health support services PHASE 3 3 Student Nurses Residence: Future YMCA OTHER STRUCTURES 4 Proposed civic building 5 Potential city redevelopment 2B L&M Building: mixed-income (very low, low, moderate, and market rate) mixed finance housing Butterworth/Hutchinson Buildings: proposed construction offices; to be converted to revenue-generating office space to support start-up non profit program within innovation hub FORMER CHARITY HOSPITAL REDEVELOPMENT 52 Schedule Approach Scheduling of any multifaceted, multi-phased project is a complex endeavor. Coordination between planning, permitting, financing, environmental remediation and considerations, occupancy (temporary and permanent), and operations is difficult. Within our proposal, programmatic and tenant choices have been made to facilitate an efficient process, and timely progress and completion of the development. Removing complex financing vehicles from the critical path and avoiding politically volatile issues will ensure the success of the Charity Hospital redevelopment. FORMER CHARITY HOSPITAL REDEVELOPMENT 54 Timeline 2018 TASK FINANCIAL NEGOTIATIONS + LEGAL REVIEW Milestone: Notice to Proceed O 2019 N D 2020 J F M A M J J A O S N D J 2021 F M A M J J A S O N D J F M A M J J A S 1 PRE-DEVELOPMENT PROPERTY LEASE NEGOTIATIONS Milestone: lease finalized PROPERTY ENVIRONMENTAL INVESTIGATIONS Milestone: environmental investigation report AS NEEDED # SHPO, PART I + II Milestone: part II approval DEVELOPER DUE DILIGENCE Milestone: due diligence complete • LSU REFF STAKEHOLDER MEETING CE COMMUNITY ENGAGEMENT SESSION MILESTONE PERMIT ISSUED FINANCIAL CLOSING OCCUPANCY FINANCIAL DILIGENCE Milestone: due diligence complete DBE + LOCAL WORKFORCE RECRUITMENT Milestone: job fairs FINALIZE LEASE / TRANSFER DOCS Milestone: closing COMMUNITY OUTREACH 2 CE CE CE 3 CE • CE CE CE CE CE CE CE CE CE CE PROGRAMMING VALIDATION Milestone: visioning document CLOUD / REVIT MODEL Milestone: completed model DESIGN SCHEMATIC DESIGN DESIGN DEVELOPMENT CONSTRUCTION DOCUMENTS - CORE + SHELL Milestone: CD submittal, permit issued CONSTRUCTION DOCUMENTS - TENANTS Milestone: CD submittals, permits issued 50% CDS BIDDING 100% CDS PERMIT 100% CDS PERMIT INTEGRATED 3D CONSTRUCTION MODEL CONSTRUCTION CONSTRUCTION - DEMO / ABATEMENT CONSTRUCTION - CORE AND SHELL CONSTRUCTION - TENANT BUILDOUT CONSTRUCTION HIRING APPRENTICESHIP TRAINING OPERATIONS OPERATIONS HIRING + TRAINING WORKFORCE HOUSING LEASING TENANT OPENINGS Street level tenants, medical training school PHASE 1B LAUNDRY BUILDING - DEMO + ABATEMENT LAUNDRY BUILDING - SD/DD LAUNDRY BUILDING - CDs PERMIT LAUNDRY BUILDING - CONSTRUCTION 100% CDS FORMER CHARITY HOSPITAL REDEVELOPMENT 55 Section 7 DEVELOPMENT BUDGET + FINANCING PLAN RICHARD BOLLING FEDERAL BUILDING / KANSAS CITY, MO Development Budget SCHEDULE VI 1532 TULANE PARTNERS, INC SUPPLEMENTAL SCHEDULE OF FORECASTED CONSTRUCTION COSTS FOR THE PERIOD JUNE 1, 2019 THROUGH DECEMBER 31, 2026 (SEE ACCOUNTANT'S COMPILATION REPORT) FORECASTED CONSTRUCTION COSTS Land and Building Acquisition inc Leases Land and Building Personal Property Off-site Improvements Other Acquisition Costs Site 2 Costs $ Construction Costs Incurred 2016 2017 12.76 0.61 $ 11,875,000 568,000 12,443,000 26,933 $ 13.37 12,443,000 - 390,000 141,448,927.30 10,608,670 14,144,893 274,863 844 306,167 22,962 30,617 595 $ $ $ $ $ $ $ $ 0.42 152.00 11.40 15.20 0.30 179,256 59,009,499 4,950,712 6,600,950 128,269 210,744 82,439,428 5,657,958 7,543,943 146,594 0 (0) (0) - 166,867,353 361,185 $ 179.31 70,868,686 95,998,667 (0) Contractor and Developer Fees General Contractor Overhead General Contractor Profit Developer Profit 14,144,893 10,608,670 25,488,744 30,617 22,962 55,170 $ $ $ 15.20 11.40 27.39 6,600,950 4,950,712 11,894,747 7,543,943 5,657,957 13,593,997 (0) 1 (0) Total Contractor and Developer Fees 50,242,306 108,750 $ 53.99 23,446,409 26,795,897 0 60,000 968,750 58,810 4,480,000 85,000 7,072,446 1,414,489.27 500,000 25,000 20,000 50,000 15,000 17,500 7,500 75,000 15,000 12,000 46,200 125,000 500,000 130 2,097 127 9,697 184 15,308 3,062 1,082 54 43 108 32 38 16 162 32 26 100 271 - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 0.06 1.04 0.06 4.81 0.09 7.60 1.52 0.54 0.03 0.02 0.05 0.02 0.02 0.01 0.08 0.02 0.01 0.05 0.13 - 28,000 710,417 58,810 1,920,000 85,000 150,000 150,000 300,000 5,000 20,000 31,500 15,000 7,500 7,500 5,000 66,200 125,000 40,000 32,000 258,333 2,560,000 18,500 25,000 61,500 - 6,922,446 1,264,489 200,000 20,000 10,000 50,000 10,000 (54,200) (15,300) 460,000 15,547,696 32,571 $ 16.17 3,724,927 2,955,333 8,867,436 529,438 $ 262.85 $110,483,022 $125,749,897 Total Construction "Hard" Costs Soft Costs Construction Loan Fees Impact Fees and Permits Payment & Performance Bonds (Construction) Real Estate Taxes (during construction) Permanent Loan Fees Permanent Credit Enhancement Interest Expense Title & Recording Legal Fees - Permanent Loan Other Permanent Financing Fees Architectural Design Architectural Supervision Non A/E Engineering Soil Tests Land Survey / Topo Environmental Consultant Other Professional Fees Accounting / Cost Certification / Audit Organizational Fees - Legal Organization Costs (Partnership) Construction Services Fees Other Professional Fees Appraisal (Feasibility) Market Study Marketing / Sales Environmental Reports Tax Credit Fees Compliance Monitoring Fees Other Non-Qualifying Soft Costs Organizational Costs Syndication Costs Other Syndication Fees Other Developer Costs Selling Commissions Lease-Up Reserve Cash Reserves and Replacements Mortgage Reserve Escrows Operating Deficit Reserve Total Soft Costs TOTAL PROJECT COSTS $ 245,100,354 $ $ 2018 $ $ $ $ Construction "Hard" Costs On-Site Improvements Utility Connections Other Site Costs Building - Construction Rehabilitation General Requirements Contractor Contingency 8% Other Construction Costs $ Cost per SF 25,703 1,229 Total Land and Building Acquisition 11,875,000 568,000 Cost per Unit - $ - $ 8,867,435 FORMER CHARITY HOSPITAL REDEVELOPMENT 57 Financing Plan and Uses We have worked diligently to mitigate risk to the greatest extent prior to submitting this proposal. We have limited use of government funds outside of the historic tax credit program, and already securing funding agreements. Because of this, we believe our greatest risks are outside elements such as a large scale economic downturn and other uncontrollable, unforseen circumstances. Below, table A outlines our development team’s sources & uses. Table B outlines the supplemental schedule of forecasted sources of financing. Both are projections for the period of June 1, 2019 through December 31, 2026. USES OF FUNDS SOURCES OF FUNDS TABLE A: SOURCES AND USES AMOUNT First Mortgage $95,000,000 Deferred Dev Note* $15,445,233 GP Equity/ OZ investment $29,622,340 TOTAL Grants, Federally-Subsidized Loans, Bonds: Tax-Exempt Biodistrict Bonds used to finance costs in eligible basis $25,100,080 Return from Sale of Tax Credits ($79,932,701) Land and Building Acquisition inc Leases $12,443,000 Construction “Hard” Costs $166,867,353 Contractor and Developer Fees $50,242,306 Soft Costs $15,547,696 $245,100,354 $245,100,354 *refer to Table B TABLE B: SCHEDULE OF FORECASTED SOURCES OF FINANCING TYPE OF LOAN FIRST MORTGAGE DEFERRED DEV NOTE OZ INVEST RET CONSTRUCTION LOAN Principal $95,000,000 $15,445,233 $48,000,000 Annual interest rate 6.75% 5.50% 8.00% Term of loan 20.0 years cash flow 25.0 years 3.25 years Amortization period 30.0 years 10.0 years 25.0 years n/a Projected NOI $10,839,808 pct. to apply will vary n/a Debt service coverage 1.25 n/a pref rate n/a Beginning monthly payment $722,346 n/a -- $320,000 Annual debt service $8,668,150 will vary will vary $3,840,000 FORMER CHARITY HOSPITAL REDEVELOPMENT 58 Proof of Financial Commitment The Carlton Group ll. Ill ii; l?ttl August 16, 2018 Mr. Joseph Stebbins 1532 Tulane Partners, Inc. 412? S. Claiborne: Avenue New Orleans, LA 7"{1125 Re: Charity Hospital Redevelopment 1532 Tulane Avenue New Orleans, LA 7111 12 Dear Mr. Stehhins, As discussed, The Carlton Group Ltd. has been in business since and has completed over Sl?t} billion in transactions. We specialize in development ?nancing having closed over $3 billion in development transactions within the past 3D months. Per our various meeting and discussions, we are pleased to deliver the financing based on the below terms for you to net lease and renovate Charity Hosriital: Property: Charity Hospital, located at 1532 Tulane Avenue, New Orleans, LA Borrower: 1532 Tulane Partners, Inc. Guarantor: None Completion Guaranty: To be provided by Borrower andfor a ?bendable? general contractor Loan $150 million renovation ?nancing $40 million EB-S financing Interest Rate: 30 that],r Libor 60D Loan Fee: 1.0% of the total loan amount Amortization: ?Interest only? through the completion of'thc construction period Term all: Maturity: Five years, inclusive of a permanent loan takeout Collateral: Financeable long-term leasEIiold interest in the Properlyr {including appropriate subordination non-disturbance and other customary leasehold ?nancing provisions) FORMER CHARITY HOSPITAL REDEVELOPMENT 59 SEE OUR FULLY EXECUTED CONTRACT HERE The Carlton GIUEP ii. cl :1 ii..'lr Financial Statement Conditions: Borrower will provide lender with Federal Tax Returns and ?nancial statements annually as well as any other ?nancial inforn?tation deemed necessary. Closing Documents: The ?nal terms and conditions of this transaction will be contained in the definitive documentation with respect to the Loan(s) once Borrower is awarded the l-"roperty pursuant to the and the total ptoj eel costs with respect to the intended redevelopment are determined. if you are in agreement with these terms, please indicate yottr acceptance by executing this letter and return to the undersigned. We appreciate this opportunity and look forward to working with you. Sincerely, Howard L. Michaela Chairman BURRDWER: 1532 TULANE PARTNERS, INC. ?r If .r .4 - xi", .I "If; if frN31116: jt-rg??p?r Li"? Title: (-1 FORMER CHARITY HOSPITAL REDEVELOPMENT TAX CREDIT CAPITAL, LLC 152? THIRD New ORLEANS, LA ?0130 TCC George E. Brewer II 584.582.2833 Managing Member 880.598.2883 georgebfoltaxcreditcapita .com August 2818 Re: Charity Hospital Redevelopment Partners, Proposal To Whom It May Concern: Tax Credit Capital, LLC is excited to he a part ofthe 1532 Tulane Partners, Inc. proposal for the planned redevelopment of Charity Hospital- We have worked with this development team on other proj outs, to include the McDonogh lo rehabilitation which was placed in service in 28 14, with great success. Our 25+ year track record in working with historic tax credits, both federal and state, provides an additional layer of strength to a capable group. TCC will work with the development team to locate potential federal historic tax credit investors for the project. It will also work to locate taxpayers that will purchase the state historic tax credits associated with the Charity redevelopment. Please feel free to contact this of?ce should you have any questions. Sinner 6. bats?M3 George E. Brow?5', II Manag' ember FORMER CHARITY HOSPITAL REDEVELOPMENT (31 1.. TRAVE LE R5 August 15, EDIE Mr. Joseph A. Stebbins, Ii President 412? S. Claiborne Ave New Orleans, LA 70125 RE: 1532 Tulane Partners inc. To Whom it May Concern: It has been the privilege of Arthur J. Gallagher Risk Management Services, Inc. and Travelers Casualty and Surety Company of America to facilitate surety bonds on behalf of The McDonnel Group, LLC for ever 11 years. During this period of time, Arthur J. Gallaher and Travelers Casualty and Surety Company have worked with The McDonnel Group to attain a surety program in the range of$2ll? million. In the event that The McDonne] Group, LLC needs a bond(s) for a project that is in this range. Arthur J. Gallagher and Travelers Casualty and Surety Company of America would work to develop all necessary underwriting information needed at that time. it is important to note that the issuance of bonds is a matter between Travelers Casualty and Surety Company ofr?rmeriea and The McDonnei Group, LLC. We assume no liability to third parties or to you if for any reason we do not: execute any required bonds. In our opinion, The McDonnel Group, LLC is one of the finest, best managed construction ?rms in the country. The McDonnel Group, LLC has handled each of its projects in a professional manner and completed all work satisfactorily. 'l?ravelers Casualty and Surety Company of America is listed on the Treasury Department?s Listing of Approved Suretics {Department Cr'reuiar 510) and is rated AHXV by AM. Best?s Company. Very truly yours, Travelers Casualty a Sur t} at Icon L. Berni, Att rncy-in-Fae Company of FORMER CHARITY HOSPITAL REDEVELOPMENT (32 an?o: m. Operations Lease-Up And Marketing Plan RETAIL SERVICES While the first floor of Charity Hospital was designed to direct foot traffic to a single main entrance, it lends itself beautifully to a reworking that will give retailers highly desirable street exposure on both Tulane Avenue and LaSalle St. in a neighborhood with heavy foot traffic. The opening of the inner courtyard enhances the street appeal and takes advantage of the New Orleans delight in outdoor food and music events, while providing food and beverage vendors with desirable customer seating. The types of retail services for Charity will be selected to enhance the experience of both the residential tenants of the building and the day users working in the office and commercial spaces. The larger trade area has already established the success of the grocery, bar and restaurant, and drugstore retail segments as what was formerly a business district has been converted to a residential, entertainment, and hospitality neighborhood that is lively and desirable day and night. Accordingly, marketing of retail space should specifically target these established downtown businesses and their competition. All retail space marketing is a marvelous opportunity to fulfill the goal of 1532 Tulane Partners in supporting local businesses and entrepreneurs, especially those with MBE and DBE status. There is the potential to provide short term use of retail space in a wide variety of sizes and locations. New Orleans is blessed with restaurants acting as job training centers, as well as artists, musicians and other performers who are creative in establishing themselves in every public nook and cranny. The marketing plan must be based on information about the market, and to that end 1532 Tulane Partners will assemble and provide retailers with critical data on households, demographics, incomes, sales tax collections, and forecasts. The Data Center is a local non-profit providing such information, and other commercial vendors provide specified market data, which is especially important to grocery operators. The nature of the market – its proximately to the two large medical facilities of Tulane University and the Louisiana State Medical Center, the renovated Dixie Brewery coming on line, the effect of the proximity to two large sports venues and City Hall – generates customers for retailers serving each of these market sectors. Any marketing should stress the iconic nature of the Charity Hospital building itself and the instant name recognition and fondness its name engenders. To that end, 1532 Tulane Partners plans to use and repeat the name Charity in the facilities that it develops in the site. The following specific retailers have been identified based upon the above: • • • • • Rouses’ Langenstein’s Super Market Robert’s Markets Martin’s Wine Cellar Canseco’s Markets • • • • • CVS Rite-Aide Walgreens Castellons Drug Store Lil’ Dizzy’s • • • • • Melba’s Fried Chicken Liberto’s (dry cleaning) Gonzales Tailoring and Alterations Liberty’s Kitchen Café Reconcile HOUSING Triumph Housing Management (Triumph) will manage marketing and leasing for the housing program components of the Charity Hospital redevelopment. Triump’s focus wll be to maximize property revenue while at the same time preserving the asset. Triumph has extensive experience with property lease-ups. Upon hiring, Triumph will develop marketing plan that will include a detailed daily leasing timeline identifying specific marketing outreach tactics that will be managed by a regional manager and affordable housing marketing director. Weekly conference calls will be held to track leasing velocity, ensuring successful marketing efforts and adjusting strategies as needed. Marketing tactics include: • • • • • • • • • An interactive website with calendar of events and blog page Facebook and twitter ads Print ads with a QR codes Print advertisements and online banner in local weekly entertainment magazine Full-page color ad in new Rental Guide Outreach efforts at restaurants, shops, and bars Outreach efforts at downtown festivals Model apartment to be furnished & accessorized Online and feature ads with: • apartments.com • Rent.com • ApartmentFinder.com • Forrent.com • ApartmentGuide.com • Craigslist • • • yelp.com move.com mynewplace.com FORMER CHARITY HOSPITAL REDEVELOPMENT 64 Building Management for Disparate Program Components BUILDING ACCESS AND SECURITY Public spaces will be free movement areas with a limited security presence managed by a third-party entity. Each non-general programmatic element will have a full access security control system managed by the same third-party entity. SHARED AMENITIES Shared amenities will have electronic access control keyed to individual users and or actively monitored use for areas such as the health and fitness areas, pools, spa and rooftop amenities. BUILDING MECHANICALS (MANAGEMENT METHOD: DIRECT) 1532 Tulane Partners intends to enter into a long-term agreement with Enwave to provide chilled water, hot water, steam, and emergency power to the building – reducing the amount of equipment on site and allowing for the most efficient and modern systems to be installed throughout the facility. Building management and monitoring systems will be installed to monitor the overall building mechanical operation and health. TENANCY SEPARATION AND COORDINATION (MANAGEMENT METHOD: DIRECT) We anticipate using elevator systems with electronic key-card floor access to maintain separation between tenants. Separation will be achieved on each floor through similar key card access systems, as well as through CMU partitions and discreet exit stairs will be used as needed to maintain specific separation as required by each tenant. Program Management (Phase 1) Areas within the Charity Hospital redevelopment that are not anticipated to require a tenant agreement in place prior to the commencement of construction (core and shell) will have tenants identified during the construction period in order to ensure equity and inclusion - allowing the best opportunity for local and DBE participation. Such tenant infill opportunities will be advertised through a formal RFP process with additional weight being given to local and DBE applicants, preferably those already sited within the Spirit of Charity Innovation District. PARKING (MANAGEMENT METHOD: THIRD-PARTY MANAGER) We believe the existing basement of Charity Hospital will be best used for on-site parking. A total of +/- 87,000 SF of belowgrade parking will be configured for 24-hour valet parking service and will hold 147 spaces with an additional 78 spaces on lift racks, providing 225 spaces total. We intend to bid out valet/parking management 120 days prior to completion of major construction (core and shell) to avail a third-party time to install operational systems. Parking income will be approximately $75-$260/space which provides a net revenue of approximately $190,000 to the building per annum. RETAIL (MANAGEMENT METHOD: THIRD-PARTY MANAGER) The +/- 46,000 SF retail uses of the Charity Hospital redevelopment will serve as primary forces of street activation for this redevelopment. As with parking, retail management will be selected through a solicitation process which will begin at 120 days prior to completion of major construction (core and shell). The remaining construction time will allow for the selected third-party retail manager to identify prospective tenants and design/coordinate tenant build-out. RESIDENTIAL (MANAGEMENT METHOD: THIRD-PARTY) +/- 475,000 SF and approximately 462 residential units with a mixed income strategy allowing for workforce housing, market-rate housing, graduate student housing, and flexible unit housing to be managed in one structure. Triumph Housing Management will be responsible for managing the housing components of the Charity Hospital redevelopment. Tulane will oversee the selection of their residential tenants but Triumph will manage them with the general population. Proper oversight and management will ensure the quality of life expected in a prime residential development. ANCHOR OFFICE TENANCY (MANAGEMENT METHOD: AFFILIATE) With a single tenant occupying +/- 200,000 SF of office space—Tulane University—we anticipate that the manager of the residential space will have enough qualified employees to handle the maintenance needs of the anchor tenant as the building is anticipated to function off of Enwave’s 4-pipe system and require similar operation and upkeep. The lease will be a triple Net lease with CAM to cover all general costs and allowing for changes in energy and other costs which might impact the long term pro forma. FORMER CHARITY HOSPITAL REDEVELOPMENT 65 INNOVATION HUB (MANAGEMENT METHOD: THIRD-PARTY) +/- 67,000 SF of flexible space for office, meeting, maker, and co-working designed to interface with local research and teaching institutions such as the Gulf Coast Education and Training Consortium, New Harmony High School, Living School New Orleans, University of New Orleans, and others. Management by Land as Art, LLC will provide for a robust and trendsetting center that will serve the district and New Orleans for years to come. As outlined in the development budget in Section 7, we propose that in addition to the dedicated project funds, a local non-profit is engaged to provide a dedicated environment for local recipients of funds from the suggested TIF financing, providing these individuals with collaborative work space within the innovation hub. DAYCARE (MANAGEMENT METHOD: THIRD-PARTY) Rayne Early Childhood Program (RECP) will provide management services for +/- 12,000 SF of safe and nurturing space for child care, all sequestered on the lower level of the building with outdoor access. In order to allow the greatest opportunity for job growth and positive career paths for the tenants of the building and entrepreneurs in the innovation Hub, our plan provides a convenient, safe, and accessible child care option. Daycare will pay only CAM and NNN for an initial lease period of 2 to 4 years. After the initial lease period, adjustment to the lease that will not inhibit the function of the center will be negotiated. EDUCATIONAL PROGRAMMING (MANAGEMENT METHOD: THIRD-PARTY) Our redevelopment plan includes +/- 15,000 SF of educational programming that is designed to keep the teaching legacy of Charity Hospital alive. Tulane University will manage space for research and academic programming and for medical training classes. Areas of these floors will also be used as flexible school space and apprenticeship training for high school students. The Orleans Parish School Board will assist in placing newly launching charter school programs within the flexible school space, leased at a break-even rate so that these institutions can focus on educational programming rather than financial concerns. Program Management (Phase 1B-3) Asset management for the programs within future phases of our proposed implementation strategy will be developed after the completion of Phase 1, which includes the Charity Hospital redevelopment, our main focus. Program elements within these phases include but are not limited to the following: TULANE UNIVERSITY MEDICAL RESEARCH (MANAGEMENT METHOD: THIRD-PARTY) Additionally, Tulane University will occupy space within the Laundry Building for medical research programs. Spaces occupied by Tulane will be managed by University operational staff. YMCA (MANAGEMENT METHOD: THIRD-PARTY) The YMCA of Greater New Orleans has expressed enthusiastic interest in locating a new community center within the SCID that could include community spaces, a gymnasium, and programs for youth and seniors. SUSTAINABLE HOUSING AND RESOURCE CENTER (MANAGEMENT METHOD: TBD) We are proposing that a center for sustainable housing be located within the Dibert Building. This asset will be managed by Hopkins Development Group and will provide resources for community members in need of transitional housing facilities. MENTAL HEALTH AND WELLNESS CENTER (MANAGEMENT METHOD: TBD) As part of the medical offerings within Charity, the SCID, and neighborhing districts, we are proposing a facility housed in the L&M Building. This prorgam element will provide affordable access to mental health care and wellness services, including nutritional training and lifestyle coaching and could be managed by a qualified non-profit mental health care provider such as NAMI New Orleans that will be solicited through a public bid process. FORMER CHARITY HOSPITAL REDEVELOPMENT 66 Maintenance Careful planning and consultation within the design and construction team will result in the delivery of a redeveloped building that reduces impact on the environment and is maintainable. Material choices and building modifications will be made specifically for their reduced environmental impact, including: implementation of green roof systems; solar panels where feasible and acceptable to the State Historic Preservation Office; use of Enwave's plant and facilities for chilled water and steam as well as a possible source of emergency power. Major mechanical systems being fed by the Enwave plant will also feed plate exchangers to provide potable hot water increasing life span and reducing inefficiency and high maintenance costs associated with numerous small electric water heaters. Most large, high maintenance systems such as chiller plants usually needed in building such as Charity will be eliminated—along with their associated carrying costs—through the use of the adjacent Enwave facility. Residential unit maintenance will be handled by Triumph Housing personnel. These units will carry similar mechanical equipment as the rest of the building. Services for elevator maintenance and upkeep, trash removal, landscape care, and commercial cleaning, as well as other large routine tasks will be bid out through a public solicitation process. 1532 Tulane Partners will use these contracts as an additional opportunity for DBE/MBE and local participation, and anticipates crafting the solicitation with bonuses and goals to help achieve or exceed participation goals set forth by the City. These results will be monitored to assure continued improvement in this area. FORMER CHARITY HOSPITAL REDEVELOPMENT 67 Operating Pro Forma SCHEDULE I 1532 TULANE PARTNERS, INC FORECASTED SOURCES AND USES OF CASH FOR THE PERIOD JUNE 1, 2019 THROUGH DECEMBER 31, 2026 (SEE ACCOUNTANT'S COMPILATION REPORT) 2021 2022 2023 2024 2025 2028 2029 2030 2031 2033 2034 $ 10,081,265 20,397 20,611 $ 10,413,863 21,152 41,008 $ 10,767,724 21,935 62,161 $11,131,758 22,745 84,096 $ 11,506,258 $ 11,879,000 23,584 (815,090) 106,840 130,424 $ 12,235,370 166 130,424 $12,602,431 342 130,590 $ 12,980,504 529 130,933 $ 13,369,919 726 131,462 $ 13,771,017 935 132,188 $ 14,184,147 1,156 133,123 $ 14,609,672 1,389 134,279 $ 54,508 96,000,000 - $ 71,939,431 95,000,000 15,445,233 183,702 $ 9,551,106 19,142 5,062,500 169,084,034 135,669 29,622,340 79,932,701 120,100,080 15,445,233 48,000,000 (760,582) 96,000,000 6,614,343 $110,715,691 $ 182,569,835 $14,632,748 $ 10,122,273 $ 10,476,024 $ 10,851,819 $11,238,598 $ 10,821,592 $ 12,009,424 $ 12,365,960 $12,733,364 $ 13,111,966 $ 13,502,107 $ 13,904,140 $ 14,318,427 $ 14,745,340 $ 96,054,508 $ 564,173,817 $ 12,443,000 70,868,686 23,446,409 3,724,927 48,967 183,702 $ $ $ $ $ $ $ $ $ $ $ $ 250,000 220,500 3,678,664 4,989,486 4,765,490 $ $ $ 250,000 40,722,917 55,081,591 $ 16,443,000 166,867,353 SOURCES: Net Operating Rental Income Interest Income - Reserves GP Equity Contribution Limited Partner Contributions Permanent Financing Inc IDB Issue Deferred Developer Note Construction Loan Refinancing Proceeds Liquidation of Reserves Net Sale Proceeds Carryover Cash Reserve TOTAL SOURCES 2020 2019 $ 29,622,340 7,993,270 25,100,080 48,000,000 - $ 1,469 2026 2027 2032 2035 - 2118 TOTAL USES: Land and Building Acquisition inc Leases Construction "Hard" Costs Refinance Loan Fees Contractor and Developer Fees Soft Costs Funding of Replacement Reserves Permanent Loan - Interest Permanent Loan - Principal Refinancing Loan - Interest Refinancing Loan - Principal Payoff Construction Loan Available Funds 250,000 95,998,667 26,795,897 2,955,333 136,606 2,131,132 758,251 468,115 48,000,000 5,075,834 250,000 $ 250,000 (0) 0 159,294 164,073 6,288,595 6,122,912 2,379,554 2,545,238 468,115 468,115 5,087,190 571,936 250,000 168,995 5,945,692 2,722,458 468,115 920,764 250,000 174,065 5,756,133 2,912,017 468,115 1,291,490 250,000 179,287 5,553,375 3,114,774 468,115 1,673,047 250,000 184,666 5,336,500 3,331,650 468,115 1,250,662 250,000 190,206 5,104,524 3,563,626 468,115 2,432,954 250,000 195,912 4,856,396 3,811,754 468,115 2,783,784 250,000 201,789 4,590,992 4,077,158 3,613,425 250,000 207,843 4,307,107 4,361,042 3,985,973 250,000 214,078 4,003,457 4,664,693 4,369,880 250,000 227,115 3,331,257 5,336,893 5,173,162 250,000 233,929 2,959,660 5,708,490 5,593,262 50,242,306 6,680,260 2,907,324 69,966,396 95,000,000 4,213,035 48,000,000 103,854,144 Fee Income to GP Fee Income to LP Available Funds 183,702 10,000 3,333 5,062,500 46,200 10,000 5,030,990 47,124 10,000 514,812 48,066 10,000 862,698 49,028 10,000 1,232,462 50,008 10,000 1,613,038 51,009 10,000 1,189,654 52,029 10,000 2,370,925 53,069 10,000 2,720,715 54,131 3,559,294 55,213 3,930,760 56,318 4,313,562 57,444 4,708,046 58,593 5,114,569 59,765 5,533,497 55,081,591 747,996 83,333 103,022,814 Undistributed Interest Income-Reserves Available Funds 183,702 1,469 5,061,031 20,611 5,010,378 41,008 473,803 62,161 800,537 84,096 1,148,366 106,840 1,506,198 130,424 1,059,229 130,424 2,240,501 130,590 2,590,124 130,933 3,428,362 131,462 3,799,298 132,188 4,181,374 133,123 4,574,923 134,279 4,980,289 135,669 5,397,829 55,081,591 1,505,278 101,517,536 Payoff Deferred Dev Note Available Funds 183,702 5,061,031 2,505,189 2,505,189 236,902 236,902 400,268 400,268 574,183 574,183 753,099 753,099 529,615 529,615 1,120,251 1,120,251 1,295,062 1,295,062 1,714,181 1,714,181 1,899,649 1,899,649 2,090,687 2,090,687 2,287,461 2,287,461 2,490,145 2,490,145 2,698,914 2,698,914 12,618,328 42,463,262 33,213,935 68,303,602 Distributions to General Ptrs. Distributions to Limited Ptrs. Carryover Cash Reserve 183,702 5,061,031 1,252,595 1,252,595 - 118,451 118,451 - 200,134 200,134 - 287,092 287,092 - 376,549 376,549 - 264,807 264,807 - 560,125 560,125 - 647,531 647,531 - 857,090 857,090 - 949,825 949,825 - 1,045,343 1,045,343 - 1,143,731 1,143,731 - 1,245,072 1,245,072 - 1,349,457 1,349,457 - 21,231,631 21,231,631 0 31,529,434 31,529,434 5,244,733 $110,715,691 $ 182,569,835 $14,632,748 $ 10,122,273 $ 10,476,024 $ 10,851,819 $11,238,598 $ 10,821,592 $ 12,009,424 $ 12,365,960 $12,733,364 $ 13,111,966 $ 13,502,107 13,904,140 $ 14,318,427 $ 14,745,340 TOTAL USES $ $ 96,054,508 $ FORMER CHARITY HOSPITAL REDEVELOPMENT 564,173,817 68 1532 TULANE PARTNERS, INC SCHEDULE OF FORECASTED BASE-YEAR REVENUES AND EXPENSES FOR THE PERIOD JUNE 1, 2019 THROUGH DECEMBER 31, 2026 (SEE ACCOUNTANT'S COMPILATION REPORT) 2018 4-person AMI 2018 4-Person 80%-Low Income Limit $ $ Project Location Project County 65,600 52,500 New Orleans, LA Orleans Parish RENT CALCULATIONS - SECTION 42 Income Level Served Number of BRs Flex 2 Flex 3 Flex 4 Workforce Workforce Workforce Market Market Market Unit Size in SF 2 3 4 1 2 3 1 2 3 Number of Units 1,000 1,150 1,300 725.0 SF 1,000.0 SF 1,200.0 SF 725.0 SF 1,000.0 SF 1,200.0 SF Totals ** Gross Rent 14 18 6 17 32 5 115 225 30 2,400 3,300 4,400 848 1,018 1,176 1,400 1,800 2,900 Utility Allowance Market Rent - 1,100 1,300 1,500 1,400 1,800 2,900 Net Rent ** Monthly Rent 2,400 3,300 4,400 848 1,018 1,176 1,400 1,800 2,900 33,600 59,400 26,400 14,416 32,576 5,880 161,000 405,000 87,000 462 825,272 Lower of Gross Tax Credit Rent less Utility Allowance or Market Rent ANNUAL REVENUES Unit Rental Income Retail, Parking, Medical Training, Innovation CTR (NNN) $12/sf Anchor Tenant 1,786 Monthly Annual Annual Rents Rents Rents / Unit 825,272 153,682 222,733.72 $ 9,903,264 1,844,187 2,672,805 Gross Potential Income 1,201,688 14,420,256 31,213 Forecasted Vacancies Other Rental Concessions 84,118 - 1,009,418 - 2,185 - Total Vacancies & Reductions 84,118 1,009,418 2,185 $ 1,117,570 $ 13,410,838 Unit Operating Expenses Unit Replacement Reserves 201,740 12,513 2,420,880 150,150 5,240 325 Total Annual Operating Expenses & Reserves 214,253 2,571,030 5,565 903,317 $ 10,839,808 EFFECTIVE GROSS INCOME (EGI) NET OPERATING INCOME (LOSS) PRIOR TO DS $ Average Monthly Rent per Unit $ $ $ $ 21,436 3,992 5,785 29,028 23,463 FORMER CHARITY HOSPITAL REDEVELOPMENT 69 1532 TULANE PARTNERS, INC SCHEDULE OF FORECASTED OPERATING ACTIVITIES FOR YEAR 1 FOR THE PERIOD JUNE 1, 2019 THROUGH DECEMBER 31, 2026 (SEE ACCOUNTANT'S COMPILATION REPORT) FIRST YEAR LEASE-UP Total Units in Project Units Rented during Month Cum Total Units Tax Credit Units Rented Per Month Cum LI Units Applicable Fraction Jan Feb Mar 462 10 10 - 462 20 30 - 2.16% 6.49% Potential Rent Revenue $ 17,863 $ 53,589 Retail, Parking, Medical Training, Innovation153,682 CTR (NNN) $12/sf 9,979 Apr 462 40 70 15.15% May 462 25 95 20.56% Jun 462 20 115 24.89% Jul 462 20 135 29.22% Aug 462 20 155 33.55% Sep 462 34 189 40.91% Oct 462 33 222 - Nov 462 20 242 - 48.05% 52.38% Dec 462 20 262 56.71% Annual 462 21 283 61.26% 462.0 283.0 32.61% $ 125,041 23,285 $ 169,699 31,601 $ 205,425 38,254 $ 241,151 44,907 $ 276,877 51,560 $ 337,611 62,870 $ 396,559 73,847 $ 432,285 80,500 $ 468,011 87,153 $ 505,524 94,139 $ 3,229,636 751,779 Anchor Tenant 222,734 222,734 222,734 222,734 222,734 222,734 222,734 222,734 222,734 222,734 222,734 222,734 2,672,805 Projected Income 394,279 286,302 371,060 424,034 466,413 508,792 551,171 623,215 693,140 735,519 777,898 822,396 6,654,219 Forecasted Vacancies Other Rental Concessions - - - - - - - - - - - - - Total Vacancies & Reductions - - - - - - - - - - - - - 394,279 286,302 371,060 424,034 466,413 508,792 551,171 623,215 693,140 735,519 777,898 822,396 6,654,219 4,367 271 13,100 813 30,567 1,896 41,483 2,573 50,217 3,115 58,950 3,656 67,683 4,198 82,530 5,119 96,940 6,013 105,673 6,554 114,407 7,096 123,577 7,665 789,493 48,967 $ 389,641 $ 272,390 $ 338,598 $ 379,978 $ 413,082 $ 446,186 $ 479,289 $ 535,566 $ 590,188 $ 623,292 $ 656,396 $ 691,155 5,815,759 EFFECTIVE GROSS INCOME (EGI) Total Operating Expenses Replacement Reserves NET OPERATING INCOME (LOSS) FORMER CHARITY HOSPITAL REDEVELOPMENT 70 1532 TULANE PARTNERS, INC SCHEDULE OF FORECASTED OPERATING ACTIVITIES FOR YEAR 2 FOR THE PERIOD JUNE 1, 2019 THROUGH DECEMBER 31, 2026 (SEE ACCOUNTANT'S COMPILATION REPORT) SECOND YEAR LEASE-UP Feb Jan Total Units in Project Units Rented during Month Cum Total Units Tax Credit Units Rented Per Month Cum Units 462 10 293 - Applicable Fraction 0.634199134 Mar 462 20 313 0.6774892 Potential Rent Revenue $ 539,088 $ 575,886 Retail, Parking, Medical Training, Innovation CTR 100,389 (NNN) $12/sf107,242 Apr 462 40 353 0.7640693 May 462 25 378 0.8181818 Jun 462 20 398 0.8614719 Jul 462 20 418 0.9047619 462 20 438 0.9480519 Aug 462 20 458 0.991342 Sep Oct 462 4 462 4 4 1 Nov Dec Annual 462 462 462 462 4 462 4 462 4 179 1 1 4 1 1 $ 649,482 120,947 $ 695,479 129,512 $ 732,277 136,365 $ 769,075 143,217 $ 805,873 150,070 $ 842,671 156,922 $ 850,030 158,293 $ 850,030 158,293 $ 850,030 158,293 $ 850,030 158,293 88.33% $ 9,009,952 1,677,834 Anchor Tenant 145,495 155,427 175,290 187,704 197,635 207,567 217,498 227,429 229,416 229,416 229,416 229,416 634,407 Projected Income 784,973 838,555 945,718 1,012,695 1,066,277 1,119,859 1,173,440 1,227,022 1,237,739 1,237,739 1,237,739 1,237,739 13,119,493 Forecasted Vacancies Other Rental Concessions - - - - - - 82,141 - 85,892 - 86,642 - 86,642 - 86,642 - 86,642 - 514,599 - Total Vacancies & Reductions - - - - - - 82,141 85,892 86,642 86,642 86,642 86,642 514,599 784,973 838,555 945,718 1,012,695 1,066,277 1,119,859 1,091,300 1,141,131 1,151,097 1,151,097 1,151,097 1,151,097 12,604,894 131,782 8,173 140,777 8,731 158,768 9,847 170,012 10,545 179,007 11,103 188,002 11,660 196,998 12,218 205,993 12,776 207,792 12,888 207,792 12,888 207,792 12,888 207,792 12,888 2,202,507 136,606 645,018 $ 689,046 $ 777,103 $ 832,139 $ 876,167 $ 920,196 $ 882,083 $ 922,361 $ 930,417 $ 930,417 $ 930,417 $ 930,417 10,265,781 EFFECTIVE GROSS INCOME (EGI) Total Operating Expenses Replacement Reserves NET OPERATING INCOME (LOSS) $ FORMER CHARITY HOSPITAL REDEVELOPMENT 71 1532 TULANE PARTNERS, INC SCHEDULE OF FORECASTED OPERATING ACTIVITIES FOR YEAR 3 FOR THE PERIOD JUNE 1, 2019 THROUGH DECEMBER 31, 2026 (SEE ACCOUNTANT'S COMPILATION REPORT) THIRD YEAR LEASE-UP Total Tax Credit Units in Project Units Rented during Month Cum Total Units Tax Credit Units Rented Per Month Cum LI Units Applicable Fraction Jan 462 462 4 100.00% Feb 462 462 4 100.00% Potential Rent Revenue $ 875,531 $ 875,531 Retail, Parking, Medical Training, Innovation163,041 CTR (NNN)163,041 $12/sf Anchor Tenant Mar 462 462 4 100.00% Apr 462 462 4 100.00% May 462 462 4 100.00% Jun 462 462 4 100.00% Jul 462 462 4 100.00% Aug 462 462 4 100.00% Sep 462 462 4 100.00% Oct 462 462 4 100.00% Nov 462 462 4 100.00% Dec Annual 462 462 4 100.00% 4.0 100.00% $ 875,531 163,041 $ 875,531 163,041 $ 875,531 163,041 $ 875,531 163,041 $ 875,531 163,041 $ 875,531 163,041 $ 875,531 163,041 $ 875,531 163,041 $ 875,531 163,041 $ 875,531 163,041 $ 10,506,373 1,956,498 236,298 236,298 236,298 236,298 236,298 236,298 236,298 236,298 236,298 236,298 236,298 236,298 727,438 1,274,871 1,274,871 1,274,871 1,274,871 1,274,871 1,274,871 1,274,871 1,274,871 1,274,871 1,274,871 1,274,871 1,274,871 15,298,449 Forecasted Vacancies Other Rental Concessions 89,241 - 89,241 - 89,241 - 89,241 - 89,241 - 89,241 - 89,241 - 89,241 - 89,241 - 89,241 - 89,241 - 89,241 - 1,070,891 - Total Vacancies & Reductions 89,241 89,241 89,241 89,241 89,241 89,241 89,241 89,241 89,241 89,241 89,241 89,241 1,070,891 1,185,630 1,185,630 1,185,630 1,185,630 1,185,630 1,185,630 1,185,630 1,185,630 1,185,630 1,185,630 1,185,630 1,185,630 14,227,558 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 214,026 13,275 2,568,312 159,294 $ 958,329 $ 958,329 $ 958,329 $ 958,329 $ 958,329 $ 958,329 $ 958,329 $ 958,329 $ 958,329 $ 958,329 $ 958,329 $ 958,329 11,499,952 Projected Income EFFECTIVE GROSS INCOME (EGI) Total Operating Expenses Replacement Reserves NET OPERATING INCOME (LOSS) FORMER CHARITY HOSPITAL REDEVELOPMENT 72 Conflict of Interest Disclosure CHARITY HOSPITAL REDEVELOPMENT RESPONDENT CONFLICT OF INTEREST DISCLOSURE STATEMENT INSTRUCTIONS: List the entities- comprising your principal business and personal activities {for pro?t and non-pro?t) in which you are an employee. of?cer. director or owner. and an)r other signi?cant interests you have 1which ma},r relate to the Charityr Hospital Redevelopment Project Management Committee or Louisiana State University?s Real Estate and Facilities Foundation (REFE). I ENTITY NALIE I TYPE OF OF ACTIVITIES I YOUR POSITION l. 1532 Iulane Partners, Inc. is a single entity and theretore II has no COHIHCIS. 9. 10. INSTRUCTIONS: List immediate family members. employers- close personal friends or close business associates who are members of the REFF Project hianagement Corrunittee or are otherwise involved in representing the REFF in the Charity Hospital redevelopment. I PERSON I YOUR RELATIONSHIP AFFILIATED ENTITY NATURE OF BUSINESS 1. 2. 3. 4. Signafiu'e' .Jn??ph CFO Printed Name August 20, 2018 Date FORMER CHARITY HOSPITAL REDEVELOPMENT 73 Due Diligence Requirements The following is a list of due diligence requirements for the Charity Sublease Transaction, dated August 20, 2018. It is the intent of 1532 Tulane Partners, Inc, upon selection, to move as quickly and as practicable as possible to closing and start of construction. Many factors play into a successful closing and development, and given the high profile, social, and historical importance of the property, it would be imprudent to move to closing before an adequate public discourse and receipt of input. Aadditionally, those tasks necessary and customary to the transfer of commercial real estate also need to be addressed. Financial considerations are listed in our financial offer in section 11 of this proposal. Upon receipt of award, 1532 Tulane Partners anticipates beginning a 180-day period of investigation, formal inspection, and measurement of the building and property. Full phase 1 environmental inspection by a licensed inspection company will commence during this period. A more thorough inspection including survey of hazardous materials (which may include limited destructive testing for ACM, lead, radiological, and biological materials) may be necessary and called for in a phase 2 environmental inspection. Simultaneously, ALTA Surveys, soil surveys, borings, and geotechnical investigations will be preformed. Full, 3D architectural scanning of the interior and exterior of the building will also occur at that time. 1532 Tulane Partners is amenable to extending it’s offer in 90- or 180-day increments should additional environmental or investigative work be required. Legal and professional research for title will also commence, as well as preparation of partnership documents, transfer documents, financing documents, leases, and other required documents of the financial closing. The preparation of these documents may bring to light land and title issues developed prior to LSU’s acquisition of the building, which may require additional time and work to resolve. In other similar transactions errors in older transfers, differences in meets and bounds, existence of underlying right of ways, or older servitudes that need to be removed or resolved have occurred causing delays in the closing. 1532 Tulane Partners is amenable to extending it’s offer in 90- or 180-day increments should additional title work be required. Prior to closing 1532 Tulane Partners will have prepared documents for public meetings and permits including preliminary plans and specifications, schematic design, 3D modeling and renderings, and other materials necessary for the appropriate public discourse about the project. This includes, but is not limited to: meetings with the Greater New Orleans Foundation and the Spirit of Charity; neighborhood and public stakeholder meetings; meetings with political bodies and boards; and meetings with LSUMC to refine the vision of the building and the district at large in order to obtain all required approvals and permits necessary for construction and operation of the facility. 1532 Tulane Partners is amenable to extending it’s offer in 90- or 180-day increments should additional public meetings be required by the authorities having jurisdiction. Designs and plans as well as applications for Part I and Part II approval by the State Historic Preservation Office will be developed and other required documentation and budgets necessary will be prepared and submitted. 1532 Tulane Partners is amenable to extending it’s offer in 90- or 180-day increments should additional time be required to receive the appropriate State and Federal approval. FORMER CHARITY HOSPITAL REDEVELOPMENT 75 “Exhibit A” LEAD DEVELOPER Yoel Shargian President Hawthorne Agency Tax Credit Capital Joseph Stebbins CEO Walker Dunlop Carlton Group Key Realty COMMUNITY OUTREACH HISTORIC TAX CREDITS BOND FINANCING FINANCING HOUSING CONSULTANT Geneva W. Coleman Geneva Coleman Monica G. Pierre Dr. Silas H. Lee, III Karimah Stewart Karimah Stewart George Brower Jeff Lawrence Matt Baptiste Jerry Getant Howard Michaels John Murray bnim John C. Williams Architects Land as Art LEAD ARCHITECT LOCAL ARCHITECT INNOVATION HUB EXPERIENCE DESIGNERS Steve McDowell FAIA, LEED AP Design Principal John Williams AIA Design Principal Carey Nagle AIA, LEED AP BD+C Principal-in-Charge Mark Heck Project Manager Kayla Berkson Designer Daniel Winkert LEED AP Project Architect Hopkins Development Group LHITC Brian Davis Othello Mahone Mark Dehner Randy White Joe Pine Volume Zero Koch & Wilson Julien Engineering WDG LANDSCAPE AFFORDABLE HOUSING DESIGN HISTORIC ARCHITECTURE STRUCTURAL ENGINEERING MEP ENGINEERING Dana Brown Michael Cajski Robert Cangelosi Kerwin Julian, Sr PE Kerwin Julian, Jr PE Brian Anderson PE Kent Poyser Clark Shaw Dana Brown & Associates The McDonnel Group GENERAL CONTRACTOR Alan McDonnel Reade Nossaman Grayson Bultman = MBE/WBE/DBE = LOCALLY OWNED / OPERATED FORMER CHARITY HOSPITAL REDEVELOPMENT 76 Section 10 DOCUMENTATION SEATON HALL RENOVATION + EXPANSION, KANSAS STATE UNIVERSITY / MANHATTAN, KS Documentation Requirements The following is a list of documentation requirements for the Charity Sublease Transaction, dated August 20, 2018. PER THE RFP: “Respondents shall provide an outline of the legal documentation necessary to secure a contractual relationship among the Project Team and with the REFF. This outline should list all legal instruments and agreements (in addition to the ground sublease) required to advance the Project through execution of the ground sublease, construction and asset and facilities management.“ I. Entity Documents of Qualified Respondent (“QR”) and Affiliates See Organization Chart for information on the type, roles, and number of entities. • • • • • • Organizational Documents Operating Agreement(s) or Bylaws Certificate of Good Standing Consent of Members or Resolutions Opinion of Counsel (the usual) Certifications (by duly authorized representative certifying authenticity and accuracy of all the above, and the EIN, statement of entity purposes, UCC lien and litigation results, other requirements of lenders and financial partners, if any). II. Other Entity Documents HTC INVESTOR (LOUISIANA STATE HISTORIC TAX CREDIT ACQUISITION FUND, L.L.C.) Authorizations to Act, Certifications, Opinion of Counsel, Agreement for Transfer of HTC’s REFF • Authorization to act o/b/o and as fully as if the fee simple property owner • Certifications of authority now and at closing • Opinion of counsel that the REFF is properly formed, duly existing, capable of contracting and performing, etc. III. Property Description Certification by REFF of correct and complete property description to be accepted and verified by QR’s title company IV. Property Documents • • • • • • • • • • • • • • • • Ground Sublease Notice of Ground Sublease (for recordation purposes) ALTA survey acceptable to QR Clear Title as established by an ALTA Title Policy (Owner’s and Lender’s) of Insurance Master Subleases if any, by Tenants or other users Clear environmental reports and reliance letters acceptable to QR and lender(s) Easements, servitudes, use and access agreements – delivery of copies of all existing plus all to-be-created for QR’s needs Appraisal prepared for Lender and/or QR Certified inventory of personal property included in sublease, if any Zoning reports, letters, variances and approvals Elevator inspections and reports – existing and by QR Any existing governmental permits or licenses including O&M’s for asbestos, LBP, lead in water supply, mold All governmental permits, licenses, and/or waivers – includes building permit(s) Agreement with Entergy for use of and access to its chilled water loop and facilities for delivering steam and chilled water. Agreement with fee owner/lessor for land use restrictions, if any Approval of all Phases of HTC applications; State (SHPO) and Federal (NPS) V. Financing Documents • • • • • • Loan Agreement(s) Mortgage and/or Security Agreements Bond Documents, Credit Wrappers and enhancements, application and other required documents Promissory Notes(s) SNDA among the lender(s), QR, Sublessor, easement holder(s) Indemnity Agreements, including environmentals VI. Development and Construction Documents • • • • Contracts for project architect(s), prime construction contractor(s), construction manager, with appropriate due diligence for licenses, insurance, bonds. See also: I. Entity Documents. Completion of subcontracts by prime contractors Any additional documents required by lender or equity investor Development Services Agreement FORMER CHARITY HOSPITAL REDEVELOPMENT 78 • • Insurance policies Construction close out inspections, certificates, VII. Financial and Transaction Closings • • • • Settlement Statement Documents as determined by closing attorney: Sher, Garner, Cahill, Richter, Kline and Hilbert, LLC Closing of Initial and Permanent Financing Close-out of HTC equity investment VIII. Leasing, Asset Management and Facilities Management • • • Broker and other contracts for lease up. Property Management contract Asset Management Contracts as required by State, City, Lender or Equity Investor IX. Respondent’s Statement and Comment “All legal instruments and agreements . . . through . . . construction and asset and facilities management.” The QR’s last private transaction had a pre-construction financial closing for which the list of such documents exceeded 48 pages. That did not include any documents generated in meeting the NPP and other concerned stakeholder requirements, City and State approvals of non-building permit submittals, or miscellaneous letters, notices and certifications meeting lender/investor requirements. The subsequent construction close-out and placement of permanent financing with final equity pay-ins generated twice again the legal documentation and agreements as the start of project closing. The list submitted here is intended to indicate the QR’s knowledge and experience in delivering what will be needed to shepherd the Charity Redevelopment through the entire process. FORMER CHARITY HOSPITAL REDEVELOPMENT 79 Section?11_ Financial Offer The principals of 1532 Tulane Partners requested a market appraisal of the former Charity Hospital property prior to this solicitation process. We received an appraised value of $16,000,000.00 for a transfer of the property. The solicitation requests a land lease option with or without a lump sum payment. Given the large upfront payment and the NPV of the annual lease payments, 1532 Tulane Partners believes it has presented a fair and reasonable offer that has exceeded the appraised value of the property. THIS SECTION INTENTIONALLY LEFT BLANK -OFFER LETTER PROCEEDS ON NEXT PAGE FORMER CHARITY HOSPITAL REDEVELOPMENT 81 OFFER AND AGREEMENT TO ENTER INTO A GROUND SUBLEASE FOR THE REDEVELOPMENT OF CHARITY HOSPITAL NEW ORLEANS, LOUISIANA AUGUST 20, 2018 PARTIES This Offer and Agreement to enter into a Ground Sublease for the Redevelopment of Charity Hospital in New Orleans, Louisiana (the “Offer”) is made by 1532 Tulane Partners, Inc., a Louisiana closely held corporation and Qualified Respondent ( or “QR”) under that certain Request for Qualifications (the “RFQ”) issued in April, 2018 by the Louisiana State University Real Estate and Facilities Foundation (the “REFF”), the QR being herein represented by its duly authorized Chief Executive Officer, Joseph A. Stebbins, II (“CEO” or “Stebbins”), which Offer is now submitted as part of the Qualified Respondent’s proposal submitted under that Certain Request for Proposal No. 0604 (the “RFP”) and is made to the REFF on the date first written above. DEFINITIONS The following capitalized terms shall have the meanings given to them in this Section. Capitalized terms not defined herein shall have their ordinary and usual meanings unless otherwise defined in the text where they appear. 1. 2. 3. 4. 5. 6. 7. 8. Agreement shall mean this document after delivery of Notice to the Qualified Respondent of its acceptance and execution by the REFF. Agreement Effective Date shall mean the date upon which this document becomes an Agreement. Notice shall be as defined in Section 4. Offer shall mean this document. Offer Effective Date shall mean the date first written above. Owner shall mean the State in any capacity which shall specifically include without limitation its capacity as the fee simple owner of the real estate, including the ground and all improvements thereon, which is the subject of this Offer and Agreement REFF shall be as defined in the RFQ of April 2018, and the RFP including its Addenda and Supplemental Materials. State shall mean the State of Louisiana. RECITALS WHEREAS 1532 Tulane Partners, Inc. (“Offeror”) was chosen as a Qualified Respondent (“QR”) after submitting its qualifications under that request to developers issued by the REFF in April, 2018, and is now acting as a QR responding to that certain Requested for Proposals 0604 (the “RFP”) submitting its Proposal to deliver a large-scale adaptive reuse of the former Charity Hospital building, and other State owned property and improvements as listed in the RFP, its Addenda and Supplemental Materials; and WHEREAS the phrase “former Charity Hospital building” as used herein shall be as defined in the RFP, and shall specifically include without limitation or exclusion that certain piece of ground (the “Premises”) together with all improvements thereon, and all rights thereto located in the State 1532 Tulane Partners Offer and Agreement Page 1 of 4 FORMER CHARITY HOSPITAL REDEVELOPMENT 82 of Louisiana, Parish of Orleans, City of New Orleans, First Municipal District, on Squares 367, 402 and 405, bounded by Tulane Avenue, Gravier St., LaSalle St., and N. Claiborne. Ave., improvements thereon consisting of a twenty story building comprised of approximately 1,015,942 square feet, more commonly known by the municipal address 1532 Tulane Ave., New Orleans, LA 70112, the redevelopment of said improvements is the “Project,” and other State owned property and improvements as listed in the RFP, its Addenda and Supplemental Materials; and WHEREAS the REFF, acting as Lessee as described in the RFP, desires and intends to enter into a ground lease for the Premises and Project with the Board of Supervisors of LSU (the “Board”), said Board acting therein as Lessor on behalf of the Owner, and, simultaneously, the REFF, as Sublessor, intends to enter into a ground sublease for the Premises and the Project with a single Qualified Respondent; and WHEREAS the QR, acting as Sublessee desires and intends to enter into a ground lease with the Sublessor for the Project and Premises, and acting in furtherance of same, now hereby submits this Offer and Agreement for Sublease under the following terms and conditions: FINANCIAL OFFER 1532 Tulane Partners, Inc. hereby offers to enter into a Sublease under which it proposes to make the following cash payments of rent to Sublessor: A. and B. 1. 2. Lump sum payment of $11,850,000.00 conditioned upon: 1. full execution and delivery of the documentation described in the Proposal and RFP Section 10, including the ground sublease, and 2. completion of the due diligence activities and periods described in this Proposal and RFP Section 9 which shall include satisfaction of all conditions precedent, and cure or provide other resolution for conditions uncovered in conducting due diligence. Rent of $250,000.00 paid annually commencing on the first anniversary of the issuance of the final certificates of occupancy by the authority having jurisdiction. OTHER TERMS AND CONDITIONS Term and Option. The Sublease shall be for a term of years commencing with the payment of the Rent as set forth above as Financial Offer, item A, and shall end on the date that is ninety-nine (99) years later, unless otherwise terminated or extended by the Parties. At the end of the Term provided for herein or any earlier termination agreed to by the Parties, Sublessee shall have the option to purchase the fee simple ownership of the Project and Premises for One Dollar ($1.00), US, to be paid to Owner at an Act of Sale conducted at Sublessee’s expense by Sublessee’s closing attorney. Title to and Alterations of Improvements. At all times during the Term of the Ground Sublease, including any extensions or renewals thereof, the Project, sometimes called Improvements, shall be owned by Sublessee and Sublessee alone shall be entitled to all of the tax attributes of ownership, including, without limitation, the right to claim depreciation 1532 Tulane Partners Offer and Agreement Page 2 of 4 FORMER CHARITY HOSPITAL REDEVELOPMENT 83 or cost recovery deductions, and the right to claim all tax credits, specifically including without limitation all historic tax credits and all low-income housing tax credits. The transfer of Project ownership rights hereunder shall be confirmed to meet the requirements of all applicable tax credit, depreciation and cost recovery laws in conducting the due diligence provided for in the QR”s Proposal and the RFP at Section 9. In the event that said due diligence does not confirm that the rights hereunder meet said requirements, the Parties hereby commit themselves to changing the Ground Sublease to the extent needed to confirm such rights. At all times during the Term of the Ground Sublease, including any extensions or renewals thereof, the Sublessee shall have control over and shall make such alterations to the Project as shall carry out the adaptive reuse described in the Proposal. Upon issuance of the final Certificates of Occupancy for the adaptive reuse by an authority having jurisdiction, and thereafter during the term the Ground Sublease, Sublessee may in its sole discretion conduct such alterations as it finds necessary or convenient, provided any such alterations shall be in accordance with all applicable codes, laws, permits and any other requirements of an authority having jurisdiction. Nothing herein shall be construed as creating in Sublessee the right to demolish, destroy, or remove the Improvements or any part thereof. 3. Transfers, Assignments, and Subleases under or of this Offer and Agreement. This Offer and Agreement is made by the Qualified Respondent, 1532 Tulane Partners, Inc., which intends to be and is bound by the terms and conditions hereof. In the event the Offer becomes an Agreement the Qualified Respondent must be in a position to create such interests in or obligations under the Agreement as are necessary to carry out its Proposal. Accordingly it is hereby agreed by the Parties that in the event the Offer becomes an Agreement, the Qualified Respondent shall have the right to enter into such necessary transfers, assignments, and contingent subleases, provided that any such transfer, assignment or contingent subleases shall be made (a) only with a party whose identity and role in the Project has been disclosed in the Proposal, and (b) the necessity for which has also been disclosed in the Proposal. 4. Notices. Any Notices required hereunder shall be made in accordance with the RFP communication protocol and shall be exchanged by and between the point(s) of contact identified in the RFP or the Proposal by the QR, which are as follows: If to the REFF: Chris Roth Managing Director JLL 200 E Randolph Drive Chicago, IL 60601 chris.roth@am.jll.com 312-228-2720 and 1532 Tulane Partners Offer and Agreement Page 3 of 4 FORMER CHARITY HOSPITAL REDEVELOPMENT 84 If to the Qualified Respondent: Mark Heck John C. Williams Architects, LLC 824 Baronne Street New Orleans, LA 70113 mheck@williamsarchitects.com 504-566-0888 Any notice, communication or document to be provided hereunder: (a) shall be in writing, and (b) shall be deemed to have been provided on the earlier of (i) (1) forty-eight (48) hours after being sent as certified or registered mail in the United States mails, properly addressed, postage prepaid, return receipt requested, or (2) the next business day after having been timely deposited with Federal Express or another equally recognized courier service, or (3) if such party's receipt thereof is acknowledged in writing, upon having been sent by means of electronic communication to the respective Point of Contact. 5. Severability. This Offer and Agreement is intended to fully conform with the requirements of the RFP in all aspects, however, in the event that, after submittal but prior to acceptance hereof, the Qualified Respondent discovers an error or invalidity of a nonmaterial or inconsequential nature, in any section, then QR shall, by written notice to the Point of Contact for the RFP, give Notice of the error or invalidity and request that it be severed, which request the REFF may accept or deny in its sole discretion. 6. Term. This Offer and Agreement shall remain effective, valid and binding for 180 days from August 20, 2018 unless Qualified Respondent, in its sole discretion, extends it for such term of days that it finds necessary or convenient. Respectfully offered, 1532 Tulane Partners, Inc. By: ____________________________ Joseph A. Stebbins, II, CEO Accepted: State of Louisiana Louisiana State University Real Estate and Facilities Foundation By: __________________________________ Title: ________________________________ Date: ________________________________ 1532 Tulane Partners Offer and Agreement Page 4 of 4 FORMER CHARITY HOSPITAL REDEVELOPMENT 85 4127 S. CLAIBORNE AVE NEW ORLEANS LOUISIANA 70125 504 822 4811 86 FORMER CHARITY HOSPITAL REDEVELOPMENT 86