Roundhouse Development Developer Solicitation Committee

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Roundhouse DevelopmentDeveloper Solicitation
Committee

• City Commission Recommendation
• November 26, 2007

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Developer Solicitation Committee

• City Commission appointed a nine-member committee
  on
• May 29, 2007
• Charged with leading a solicitation process
  resulting in a final recommendation identifying a
  developer for the Roundhouse Development
• Representatives were appointed from specific
  professional disciplines and memberships
  throughout the community

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Timelines and Process

• April 30, 2007
• Staff directed to solicit formal bids on
  Roundhouse Property
• May 8, 2007
• Developer Solicitation document approved
• May 29, 2007
• Committee appointed
• June / September 2007
• Published Request for Proposals
• - www.mqtcty.org

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Timelines and Process

• September 7, 2007
• Received preliminary proposals
• September 12, 2007
• Evaluated preliminary proposals
• September 17, 2007
• Approved short-list and developed additional
  questions
• Notified development groups of continuation of
  process and future selection criteria

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Timelines and Process

• September 28, 2007
• Final presentation by developers
• October 1, 2007
• Committee developed additional questions
• October 2, 2007
• Requested additional project information
• October 10, 2007
• Developer information received and distributed

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Timeline and Process

• October 19, 2007
• Reviewed developers information
• November 2, 2007
• Determined City Commission recommendation
• November 26, 2007
• Final recommendation to City Commission

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Evaluation Criteria

• Site Development
• Land Purchase
• Funding Plan
• Phasing Plan
• Organizational Structure
• Seventh Street Extension Partnership

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Recommendation

• In doing its due diligence, the Developer
  Solicitation Committee recommends proceeding with
  the fully taxable portion of the Roundhouse
  Development Group, LLC project as it promotes
  economic development, extension of Seventh Street
  and substantially complies with the Community
  Land Use Master Plan.

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SEVENTH STREET STATION
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Roundhouse Development Group, LLC.

• Seventh Street Development L.L.C.
• Seventh Street Station
• Mixed Use development including
  commercial/residential
• West Rail Townhouses
• Residential approximately 18 units
• Marquette Crossing L.D.H.A.L.L.C.
• (The Hovey Company and Marquette Affordable
  Housing Program Inc.)
• Marquette Crossings
• 128 1, 2 and 3 bedroom rental units (not
  recommending)

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WEST RAIL TOWNHOUSES
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Recommendation Support

• Site Plan
• 7th Street Development/Loft/ Live-work 4 unit
  blocks
• Brick and aluminum storefronts
• Historic look to include some stone accents
• 800 sq./ft. 1 bedroom lofts
• 14 residential units two- and three-story
  townhouse units
• New housing options and creative use of the
  property Seventh and Spring Street extensions
• West Rail Townhouses - 18 units
• 1800 sq./ft. two- and three-story townhouses with
  garages
• Steep gable roofs
• Brick and traditional lap siding (cement board)
• Developer to incorporate LEED ND principles of
  smart growth into the overall project design.

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Recommendation Support

• Land Purchase
• Split property with intent to sell only the
  acreage needed for Seventh Street Station and
  West Rail Townhouse development plan
• Have property appraised with proposed usage
  including extending Seventh Street
• Negotiate sales price with new appraisal

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Recommendation Support

• Funding Plan
• Capitalized local team
• 14 Million dollars of private investment
• Local banking institutions and private investors
• Range Bank, Negaunee Michigan

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Recommendation Support

• Phasing Plan
• Purchase Agreement (December January 2008)
• Design and Marketing Preparation (December
  April 2008)
• PUD Process (April - September 2008)
• Possibly start construction 7th Street
  Development (September 2008)
• 7th Street and Spring Street extension Spring
  2009
• Begin townhouse construction April 2009
• Complete for-profit build out December 2011
• (Schedule may change with proposed
  recommendation)

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Recommendation Support

• Organizational Structure
• Seventh Street Development L.L.C.
• WRV LLC (Tom Vear)
• Barry J. Polzin, Architect
• OBoyle Company, General Contractor

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Recommendation Support

• Why NOT recommending Marquette Crossing
  Development?
• May draw clients from existing housing options
• May decrease value of existing similar type
  housing options due to vacancies
• Market study was not conclusive of the need
  within community
• Was not fully taxable, suggesting 6 PILT
  resulting in a taxable loss of approximately
  75,000 annually upon full build out
• Did not support home ownership
• City Commission may consider alternative
  locations for this portion of the project
  proposal, i.e. Orphanage

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Questions