Get Down Memphis

Prime Main Street Development Opportunity.

Location: 18 S. Main St.

INTRODUCTION
Founded in 1977, the Downtown Memphis Commission (DMC) is the public-private partnership charged with advancing Memphis and Shelby County by making Downtown Memphis a better place to live, work, learn, invest, and visit.

As part of its strategic focus on fighting blight, adding vibrancy, and improving property values in the Downtown Core, the DMC has secured an option contract to purchase the property at 18 S. Main Street. The subject property is a 3-story brick building with mezzanine and basement totaling approximately 29,000 sq. ft. The property is located on the Main Street Mall, a pedestrian and transit street that runs through the heart of Downtown Memphis. While one ground-floor tenant currently occupies a portion of the space, the remainder of the building is vacant and in need of renovation. The existing ground- floor tenant is not expected to remain in the building after the renovation is complete.

The DMC, and its affiliate the Center City Development Corporation (CCDC), is calling for proposals from developers with experience in adaptive reuse and renovation projects. The selected developer will propose a plan that accomplishes the following project goals:

  1. Full renovation of the existing building for mixed-use with retail/commercial space on the ground floor and residential apartments and/or office space above
  2. Create significant improvement to the Main Street façade of the building
  3. Encourage commercial activity at the street level to bring new vibrancy to Main Street
  4. Create a proposal that is financially feasible and be able to begin construction within 120 days of selection

Subject to an approved development agreement, the selected developer will own the property and be responsible for all costs associated with the improvements of the property.

Download RFP  
Download Site Drawing I, circa 1938 (provided by current owner)  
Download Site Drawing II, circa 1973 (provided by current owner)

SUBMISSION DEADLINE

All proposals must be received no later than Wednesday, January 3, 2018, at 12:00 PM.
Proposals received after that time shall not be considered.

An optional pre-submittal conference will be held on Friday, October 27, 2017, from 1:00 PM - 2:30 PM.
This meeting will include a walk-through of the property. Please RSVP to Christine Taylor at (901) 575-0563.

DEVELOPMENT TERMS & CONDITIONS

  • The selected development team will pay a development fee in the amount of $500,000, due to the CCDC, at the closing date. The CCDC will fund the difference between the amount of the development fee and the purchase price necessary to acquire the property from its current owner.
  • The DMC expects the selected proposal to be an adaptive reuse project. Demolition of the existing building is not the preference of the DMC or CCDC at this time.
  • Subject to an approved development agreement, the selected developer will own the property and be responsible for all costs associated with the improvements of the property.
  • The selected development team must comply with the DMC’s Equal Business Opportunity (EBO) Program. The EBO program requires that a fair and open process is used to select the general contractor and any subcontractors. Additionally, the DMC expects a minimum of 20% minority and women business enterprise (M/WBE) participation in the project’s total hard and soft costs.
  • The project’s design plans will require approval from the Design Review Board (DRB).
  • The selected developer will enter into a development agreement with the CCDC that outlines the terms of the project and the expectations of both parties.
  • The selected development team will be required to post a performance bond for the full amount of the project cost, so that in the event the developer defaults on the project, it may be completed in a timely manner by the CCDC or its assignees.
  • Following the execution of the development agreement, the project must begin construction within 120 days.
  • The development team must indicate in their RFP response if their financing plan requires a PILOT tax incentive or any other public incentive. While a Development Loan from the CCDC may be considered per the standard program policy, an Exterior Improvement Grant (EIG) will not be available for this property.
  • While not required, the development team may choose to incorporate adjacent properties into the development proposal if desired. As a general rule, a larger, more comprehensive development proposal is typically preferable to a smaller, less impactful project.
  • Selected developer should have financing ready and be prepared to close prior to the end of March, 2018.

SELECTION PROCESS & CRITERIA

  • The CCDC, being the decision-maker regarding this RFP, reserves the right to reject any or all proposals. An earnest money deposit of $5,000 is required with the submittal of all proposals. These funds will be held in escrow until a decision has been made and a final development agreement is approved. Deposits will be refunded to developers   not selected.
  • The CCDC Selection Committee reserves the right to request clarification or additional information from individual respondents as well as to request that some or all respondents make presentations.
  • Based on the written proposals and results of any requested presentations, the Selection Committee will recommend a developer or development team to the CCDC Board of Directors for final approval. Other candidates will be notified of such selection via mail.

SELECTION CRITERIA

The following rating criteria will be used by the CCDC Selection Committee to assist in the comparison of proposals. Final recommendations will be predominantly based on the rating criteria but will consider other pertinent factors, as appropriate.

OUTLINE FOR SUBMITTAL OF PROPOSALS

In addition to a cover letter describing your interest in this project, please include all of the following information in the RFP submission.

 

I.      Project Team

a)   List all members of the development team and include their current resumes.

b)  Disclose if any member of the development team has any previous or ongoing relationship with any Board member of the DMC or its affiliate Boards. If such a relationship exists, please describe in detail.

c)   List any architects, engineers, or other professionals involved with the project.

 

II.        Relevant Experience

a)   List and describe successful examples of similar development projects undertaken by the development team, especially in Downtown contexts. Include information about total development cost and pertinent details for each project.

b)  Provide a list of the institutions that have provided major financing for these projects and a description of the form and terms of this financing.

 

III.          Development Concept

a)   Describe the proposed project, including the following:

  1. The proposed use(s) of the property
  2. Total  estimated  project  costs
  3. Approximate gross and rentable square footage of all proposed uses
  4. Conceptual or schematic floorplans of the proposed project
  5. Narrative description of the proposed scope of interior and exterior work.
  6. Include a rendering of the design concept for the Main Street façade.
  7. Provide a letter from a certified engineer, licensed in the State of Tennessee, as to the structural integrity of the building for its intended usage, if applicable.

 

IV.       Financial Details

a)   Include a Sources & Uses Statement including estimated project costs broken down by component (e.g. land, construction costs, equipment, soft costs, etc.).

b)  Include a 10-year pro forma for the proposed project.

c)   Describe the proposed capital stack. Include information about possible financing for the project (e.g.  loan amount, interest rate, term, amortization, etc.).

d)  Indicate whether you propose to apply for a PILOT or any other public incentive in conjunction with the development project.

e)   Provide a minimum of three (3) credit references

f)    Include current financial statement of the development entity proposing the project, if applicable, or include financial statements for all project partners.

 

V.     Project Timeline

State the proposed schedule for the project include the dates anticipated for the following:

  • Closing of the loan or other financing availability
  • Start of construction
  • Project completion


VI.        Equal Business Opportunity (EBO) Program

The DMC and CCDC requires at least 20% M/WBE participation in the development cost of this project. Please describe your plan for employing a fair and open bidding process and affirm your commitment to meet or exceed 20% M/WBE participation in the combined hard and soft costs for the project.

 

VII.         Disclosures

The following disclosures, along with detailed information as applicable, must be made:

a)   If the applicant, guarantor, or any other principals involved with the project are currently engaged in any civil or criminal proceeding.

b)  If the applicant, guarantor, or any members of the development team involved with the project have ever been charged or convicted of any felony or currently is under indictment.

c)   If the applicant or any member of the development team has ever filed for bankruptcy.

 

VIII.           Earnest Money Deposit

An earnest money deposit of $5,000 is required along with the submittal of all proposals. Please include a check made payable to Center City Development Corporation. This deposit will be refunded to all developers not selected. These funds will be held in escrow until a decision has been made and approved.

SCHEDULE AND CONTACT INFORMATION

RFP Published: Wednesday, October 18, 2017

Pre-Submittal Conference and Building Tour (Optional) Friday, October 27, 2017, from 1:00 PM - 2:30 PM.

Representatives from the DMC will be present and available to answer questions. A building tour will also be provided. This meeting is not mandatory, but is highly encouraged. Please RSVP with Christine Taylor at 901-575-0563.

 

Proposals Due: Wednesday, January 3, 2018, at 12:00 PM

Please submit twenty (20) printed and bound copies of the proposal no later than 12:00 PM on Wednesday, January 3, 2018, in order to be considered for this RFP. Include a cover letter and use the submittal outline described on pages 4-5.

 

Please submit proposals to the following address:
Mr. Brett Roler, AICP
Downtown Memphis Commission
114 N. Main Street, Memphis, TN 38103

 

Additionally, please email one digital copy of the complete proposal (as a PDF) by the deadline to: Brett Roler atroler [at] downtownmemphis [dot] com

 

Questions regarding this RFP should be directed to Brett Roler at 901-575-0574 or roler [at] downtownmemphis [dot] com

 

Proposal Selected: Jan.–Feb. 2018  
Selected developer secures financing and is ready to close: Prior to end of March, 2018