esc-0456-13 gorman and company bid submission

7/27/2019 ESC-0456-13 Gorman and Company Bid Submission

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Response to Request for Proposals

Redevelopment of City-Owned Property

LaVilla District Jacksonville, FL

Bid No: ESC-0456-13

Gorman & Company, Inc.Hana Eskra, Florida Market President

9100 S. Dadeland Blvd, Suite 1500 Miami, Florida 33156

(305)668.5810

May 1, 2013

COPY


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REAL ESTATE DEVELOPMENT AND MANAGEMENT

200 N. Main Street Oregon, WI 53575 phone 608.835.3900 fax: 608.835.3922 www.GormanUSA.com

May1,2013

DeidraBaines,CPPB

PurchasingAnalyst

214N.HoganStreet,Suite800

Jacksonville,FL32202

RE: RequestforProposalsforRedevelopmentofCityOwnedPropertyLaVillaDistrict

BidNo:ESC045613

DearMs.Baines,

Gorman&CompanyisproudtosubmittotheCityofJacksonvilletheattachedresponsetotheabove

referencedRequestforProposals. Gorman&Company,Inc.hasover27yearsofexperiencein

developingsomeofthenationshighestqualityworkforcehousingandneighborhoodrevitalization

projects.Gormanregularlyreceiveslocalandnationalrecognitionforitsdevelopmentsincludinga

recentnationalawardfortheBestMixedUse/MasterPlannedDevelopmentforVillardSquarein

Milwaukee,Wisconsin. Thispastfall,wereceivedanawardfromtheAmericanPlanningAssociationfor

excellencein

affordable

housing

for

the

development

of

the

Glendale

Enterprise

Lofts

in

Glendale,

Arizona.

GormanhasdevelopedareputationinFloridaandourothercoremarketsforbeingastrongpartner

withnonprofitorganizationsandlocalgovernmentagencies. Wehaveareputationforbeingan

innovativeproblemsolverthatgetsthingsdoneacrosstheUnitedStates. YouwillfindGorman&

Companytobeextremelyflexible,cooperativeandcreativeinstructuringauniquepartnershipmodel

thatwillservetobenefittheobjectivesofboththeCityofJacksonvilleandGorman. Wehaveaccessto

significantshorttermpredevelopmentcapital,constructionandpermanentfinancing,aswellasastellar

trackrecordwithallofourequitypartners. Wehavestructuredmanycomplextransactionsinvolvinga

multitudeoflayersofpublicandprivatefinancing,andhaveaccesstosomeofthenationsmost

experiencedattorneys,CPAsandconsultantstosupplementourcollectivecapacitiestotakeany

feasibleprojectacrossthefinishline.

OurresponsetothisRFPincludestwoseparateproposals;bothincludemarketraterentalapartments

withlive/workloftsandcommercial/retailspace:


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StatementofQualifications

1.DevelopmentPlan,EconomicImpact,Design

ConceptandVisionGorman&Company,Inc.sresponsetothisRFPincludestwoseparateproposalsforthesites.

ProposalAencompassesDevelopmentSite2only,asdescribedbelow.ProposalBincludesthesame

plansforDevelopmentSite2asProposalA,butalsohasanoptionofincludingDevelopmentSite1.

Detailsofeachproposalarebelow.Westronglybelievethatbothproposalscontainthevision,

design,andfeaturesofacatalyticprojectthatwillfurthertheCityseffortstoadvancethe

investmentandeconomicopportunitiesintheneighborhood. Ourproposalsprovideforhousing,

retailspace

and

an

inviting,

walkable

neighborhood

that

is

reminiscent

of

the

historic

LaVilla

community.

ProposalA(DevelopmentSite2)Gorman&Company,Inc.sProposalAincludesDevelopmentSite2only. Itencompassesreopening

ArthurStreetbetweenW.UnionStreetandW.BeaverStreetandincludesthree,threestory

buildings,openspace,andparking.TwoofthebuildingslineeithersideofArthurStreet,eachwith

3,000squarefeetofcornerretailspaceattheintersectionwithW.UnionStreetandresidential

unitsalongArthurStreet.ThethirdbuildingrunsalongN.JeffersonStreetandincludesapartments

andretailspacefrontingthecorneratW.UnionStreet.Streetlevelapartmentswillbedesignedas

livework

lofts

for

neighborhood

entrepreneurs

and

housing

for

local

families.

This

design

offers

economicopportunitiesforlocalresidentsandispedestrianorientedwithparkinglocatedonthe

streetorbehindthebuildings.

LaVillaEnterpriseLoftsincludes105apartmentunitstotal,24ofwhichareliveworkunits,giving

localentrepreneurstheabilitytoliveandworkintheirneighborhood. Theremainingunitsare

availableforfamiliesandseniorsfromthecommunity.Theproposedunitmixincludes(39)one

bedroomunits,(51)twobedroomunits,and(15)threebedroomunitsdistributedwithinthethree

mixedusebuildings.Theplansalsofeature9,000SFofcommercialspace(3,000SFperbuilding)and

115parkingspaces.

ReopeningArthurStreet,addingretailspacealongW.UnionStreet,andbuildinglive/worklofts

frontingArthurStreetandW.JeffersonStreetbringbackthehistoryoftheLaVillaneighborhood. It

allowstheresidentstoavailthemselvesofhousingandeconomicdevelopmentopportunitiesin

theirownneighborhood.OpengreenspacewouldbuffertheparkingareafromW.UnionStreet.

ProposalB(DevelopmentSites1&2)ProposalBincludesallelementsofProposalAasoutlinedabove,butwouldalsoaddanoptionto

includeDevelopmentSite1,witha6,000SFRestaurantandanadditionalthreestorybuildingwith


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35apartments,including8liveworkunits.TheproposedunitmixforbothDevelopmentSite1and

2includes(52)onebedroomunits,(68)twobedroomunits,and(20)threebedroomunits

distributed

within

the

four

mixed

use

buildings.

The

total

unit

count

for

Proposal

B

is

therefore

140

apartmentunits,including32liveworkunits,9,000SFofretailspace,andthe6,000SFrestaurant.

Thecurrentrestaurantbuildingwouldbedemolished,withthenewspacedlocatedatthecornerof

N.DavisStreetandW.UnionStreet. Outdoorseatingisavailablefortherestaurantaswellasan

additionalentrancetotheparkingfromW.UnionStreet.

SiteplansandpreliminaryrenderingsforbothProposalsAandBareenclosedwiththisresponse.

EconomicImpact

AtGorman

&

Company,

we

recognize

that

the

projects

we

build

not

only

bring

quality

housing

and

actacatalyticdriversforurbanrenewalneighborhoods,buttheyarealsoimportanteconomicand

jobgenerators. Newconstructionanddevelopmentofprojectsofthismagnitudebringsignificant

jobopportunitiestolocalcommunitiessuchastheCityofJacksonville.Inourexperience,our100+

unitmultifamilyprojectscreate70100jobsduringtheconstructionphaseoftheproject. This

experienceisborneoutbya2009studybytheNationalAssociationofHomeBuilderswhichstates

thatevery100unitsofnewconstructionmultifamilyhousingcreates80directjobsandananother

42indirectjobs(throughthebuyingofmaterials,etc.). Accordingtoarecentanalysisofthe

economicimpactofrentalhousingconstructioncompletedbyFloridaHousingFinanceCorporation,

newconstructionprojectscreateapproximately350newjobsperproperty1.Thisincludesdirect,

indirect,andinducedjobscreatedbytheconstructionofthedevelopment. Newconstructionalso

createsadditionalpermanentjobs,particularlyformanagementandmaintenanceofthenew

development.It

is

anticipated

that

this

development

will

experience

similar

job

opportunities

for

Jacksonvilleandwillcreateaminimumof80directjobsand30indirectjobsduringconstruction. All

constructionjobswillprovidefamilysupportingwages.

BothProposalsA&Bincludecommercial/retailspacewithinthebuilding. ProposalAhas9,000

squarefeetofcommercialspaceandProposalBincludesthat9,000squarefeetandaddsan

additional6,000squarefeetforarestaurant. Successfulbusinessesinthesecommercial/retail

spaceswillcreateadditionaleconomicopportunitiesandadditionalpermanentjobsfordowntown

Jacksonville. Thetypeofbusinessesthatoccupythesespaceswilldeterminethenumberofjobs

createdbutweestimatearangeof1050permanentjobswillbecreatedbythisdevelopment(the

higherendoftherangeincludesemployeesoftherestaurant).

Inaddition,ProposalsA&Bhaveatotalof30streetlevellive/workunits,whichwouldbeavailable

forneighborhoodentrepreneurs.Thisdesignfeaturewillprovideadditionaleconomicopportunities

forresidents,givingthemtheopportunitytorunsmallbusinessesintheseunits.

Lastly,constructionoftheproposeddevelopmentwillresultinanincreasedtaxbasefortheCityof

Jacksonville.Currently,thepropertiesaremostlyvacantandareownedbytheCity,whichmeans

1FinancingAffordableRentalDevelopment:JobsCreatedbyNewConstructionandPreservationMarch

2011,FloridaHousingFinanceCorporation


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theyarepropertytaxexempt.Thedevelopmentandtransferofthesiteswouldleadtoincreased

propertytaxes. Weestimate,basedonsimilarresidentialpropertiesdowntown,thatthevalueof

LaVillaEnterpriseLoftsunderProposalAwouldgenerateanadditional$189,000inannualproperty

taxesfor

the

City

of

Jacksonville

and

for

Proposal

B,

that

amount

would

increase

to

$252,000.

Design&CompatibilityGorman&Companysproposalsareconsistentwiththelocalplansanddistrictsreferencedinthis

RequestsforProposal:

DowntownJacksonvilleMasterPlan,2000o Ourproposalsincludeamixtureofcommercialandresidential,maximizedlot

coverage,neighborhoodretailandincubatorbusinesses,andworkforceurbanlive

workhousingtoservedowntownemployees,asoutlinedinthePlan.

ZoningOverlayDistrictLaVillaNeighborhood,2003o

Consistent

elements

include

zero

building

set

back

at

lot

line,

maximized

lot

coverage,invitingfacadeswithawningsandoverhangs,avarietyofmaterials,close

proximityofuses,landscapinginandaroundparkingareas,wroughtironfencing

andshrubsaroundparking,andtransparentmaterialsatstreetfrontage.

CityofJacksonvilleDowntownActionPlan,2007o Ashighlightedinthisplan,ourproposals:encouragewalkability;aredestinationsfor

uniqueretail;createaneighborhoodfeel;provideworkforcehousing;include

streetscapingwithtrees,benches,andlighting;andhelptoslowdowntraffic.

JEDCStrategicPlanDowntownWorkforceHousingStrategyo Ourproposalsincludeanarrayofworkforcehousingoptionsforfamiliesand

residentsintheneighborhood,includingliveworkloftsforentrepreneurs.

DowntownTransportationConcurrencyExceptionAreaImplementationPlan,2005o BothProposalsA&Bencouragesharedparkingwhereappropriate,particularlywith

theliveworkunits.

2.QualificationsandExperienceofProposer

ResumesofKeyIndividualsatGorman&Company,Inc.GARYJ.GORMAN

PRESIDENT

AftercompletinghisB.A.inEconomicsandLawDegreesfromthe

UniversityofWisconsinatMadison,Mr.Gormanbeganhiscareerasa

practicingattorneyfocusingonrepresentationofdevelopersandrealestatesyndicators.

In1984Mr.Gormanformedafirmforthepurposeofdevelopingand

syndicatingmultifamilyrealestateprojects.AfterthepassageoftheTax

ReformActof1986,Mr.Gormanspecializedinthedevelopmentof

affordablemultifamilyrentalcommunitiesutilizingthetaxcreditcreated

bySection42ofthe1986TaxReformAct.


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Gorman&Company,Inc.isnowamajordeveloperofaffordablerentalhousingaswellashistoric

renovations.ThefirmhasofficesinWisconsin,Illinois,Arizona,andFlorida,aswellasprojectsinsix

states.Gorman&Company,Inc.hasinhousedesignandconstructiondivisionsthathave

successfullycompleted

over

$350

million

of

new

construction

and

major

renovations.

Its

affiliated

propertymanagementfirmmanagesoverthreethousandunits.

Mr.GormanservesasaboardmemberforCatholicCharitiesandNorthernBankshares,Inc. Mr.

GormanalsoservesasamemberoftheSteeringCommitteefortheHousingCreditGroupof

NationalAssociationofHomebuilders(NAHB)andontheAdvisoryBoardfortheFederalHomeLoan

BankofChicago. Inaddition,Mr.GormanpreviouslyservedontheBoardofDirectorsforthe

MadisonAreaApartmentAssociation,CreditBureauofMadison,SouthMadisonCommunity

DevelopmentCorporation,andBusinessEducationPartnership.

TOMCAPP

CHIEFOPERATING

OFFICER

TomCapphasdirectedGorman&Company'srealestatedevelopmentsince

1994.Underhisdirection,thecompanyhasfocusedonurbanrevitalization,

mixedincomehousing,historicpreservationandthepreservationof

affordablehousing.

PriortojoiningGorman&Company,Mr.CappwasaSeniorAssociateat

Camiros,Inc.,anurbanplanningfirmbasedinChicago.Mr.Cappisaformer

publicofficialhavingservedasmayorofFitchburg,Wisconsin,wherehealso

servedaschairmanofthecity'sPlanningCommissionandchairmanofitsEconomicDevelopment

Commission.AsexecutiveassistanttoDaneCountyExecutiveRickPhelpsfrom19931994,he

directedlanduseanddevelopmentpolicyforDaneCounty(Madison,Wisconsinandsurrounding

areas).

Mr.CapphasadegreeinEconomicsandPoliticalSciencefromtheUniversityofIllinoisat

ChampaignUrbana.Tomhasservedonmanyindustryboardsandcommissions.Hecurrentlyserves

ontheBoardofDirectorsoftheNationalHousingandRehabilitationAssociation.In2007hewas

appointedbytheWhiteHouseasaPanelExpertforthePreserveAmericaSummit,aninitiative

createdbyexecutiveordertomodernizeournationsapproachestohistoricpreservation.Heisa

frequentspeakerandpresenteratconferencessponsoredbystatehousingauthorities,planning

associations,andhousingindustrygroupssuchasNCSHA,NH&RA,andIPED.

HANAESKRA

FLORIDAMARKET

PRESIDENT

HanaEskraservesasFloridaMarketPresidentforGormanandCompany.

Herexperienceincludesmorethan18yearsofaffordablehousing

developmentconsultationandfinancialfeasibilityandprojectmanagement

services,aswellashousingpolicyanalysisandimplementation.Ms.Eskra

hasworkedforlocalgovernmentsandbothnonprofitandforprofit

housingdevelopmentorganizations.Shehasanoperationalknowledgeof

nearlyallaspectsofaffordablehousing.


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Ms.Eskrahasbeendirectlyinvolvedinthedevelopmentofover$140millionofaffordable

multifamilyandsinglefamilyhousingunitsandhasworkedwithlocalofficialstocreatehousing

policiesthatencouragethedevelopmentofaffordablehousingintheircommunities.Inherprevious

positions,Ms.

Eskra

worked

for

anational

non

profit

to

acquire,

recapitalize

and

rehabilitate

a

failinglowincomehousingtaxcreditportfolioandwasActingDirectorofMiamiDadeCountys

OfficeofCommunityandEconomicDevelopment.Inthatcapacity,shemanaged120employeesand

oversawa$400millionoperatingandcapitalbudgetthatincorporatedfederal,stateandlocal

fundingforaffordablehousing.Ms.EskrahasalsoworkedasatechnicaladvisorforaFlorida

statewideaffordablehousingorganization,providingtechnicalassistanceandtrainingtononprofits

andlocalgovernments.ShealsowastheDirectorofRealEstatefortheGreystonFoundation,a

nonprofitcommunitydevelopmentcorporationlocatedinYonkers,NewYork.

Ms.EskrahasaMasterofPublicAdministrationfromtheUniversityofNorthCarolinaatChapelHill

andwroteherMastersthesisonthelowincomehousingtaxcredit.SheresidesinMiami,Florida.

PATRICKPATRELLO

LEADARCHITECT,FLORIDA

PatrickPatrellohasmore than10 yearsofexperience in commercial and residential architectural

design. He isaregisteredArchitectinWisconsin,Illinois,Florida,Michiganand isNCARBcertified.

Hisexperience includesawiderangeofconstructiontypesandoccupancyclassifications including

adaptive reuse.Prior to joining Gorman & Company, Patrick worked for the City of Detroit.

Previously,hewaswithanawardwinningChicagoarchitecture firm recognizedasa leader in the

designofmidtohighriseresidentialandmixedusedevelopments. PatrickreceivedhisBachelors

andMastersofArchitecturedegreesfromtheUniversityofMichigan.Heispassionateabouturban

redevelopment.

FirmExpertiseGorman&Company,Inc.hasdevelopedaportfolioofover50multifamilyrentalproperties,

representingover3,000unitsofhousingin6states,includingFlorida,Arizona,Wisconsin,Illinois,

Mississippi,andLouisiana. GaryJ.GormanstartedGorman&Companyin1984todevelop,

syndicate,andmanagemultifamilyhousingproperties.Ourmissionistocreatehighqualityhousing

opportunitiesforavarietyofincomelevels.Gorman&Company,Inc.islistedasthe26thlargest

developeroflowandmoderateincomehousingintheMay2013issueofAffordableHousing

FinanceMagazine. Gorman&Companysabilitytoassembletheresourcesnecessarytotackle

toughdevelopmentshasmadeitanindustryleaderinpartneringwithcommunitiestoaddress

housingneeds.Thecompanyhasextensiveexperienceindevelopingawidevarietyoflow,

moderate,andmixedincomehousingforentrepreneurs,youngprofessionals,specialneeds

populations,families,andtheelderly.

Gorman&Companyworkscloselywithlocalgovernmentsandcommunitygroupstohelp

communitiesmeettheirdevelopment,planning,economicandsocialgoals. Gormansstaffbringsa

broadrangeofdevelopment,constructionandreallifeexperiencetothedevelopmentprocessand

appliesthoseskillstosolveproblemsandhelpcommunitiesbringtheirplanstoreality.Our

developmentsrangefromupscalecondominiumcommunitiestomixedusedevelopmentsin

downtownredevelopmentareas.Gormansuniqueaffordablehousingcommunitiesofferhigh

qualityamenitiesthatservethecreativeclass,seniors,accessibilitychallenged,entrepreneurs,

families,andindividuals.


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Oftheover50projectsthatGorman&Companyhasdevelopedinthepast27years,thecompany

hasneverhadaforeclosure,neverdefaulted,andneverhashadthegeneralpartnerreplacedbythe

investor.

WsGandPartnersLLC

WightGreger,PresidentandCEOofWsGandPartnersLLC,openedherownpracticeasa

RedevelopmentConsultantwithafocusonrealestatedevelopmentandpublicfinance.Wights

expertisecomesfromover20yearsofexperienceinthecommunitydevelopmentarenainFlorida,

andshehasworkedinmanycommunitiesthroughoutFloridaleveragingpublicfinancingprograms

withprivatecapital.WightcurrentlyservesontheJacksonvilleHousingFinanceAuthorityBoard,the

FloridaHousingCoalitionBoardExecutiveCommittee,andisamemberoftheJacksonvilleChamber

ofCommerce

and

Northeast

Florida

Builders

Association.

Untilrecently,WightservedastheDirectoroftheCityofJacksonvillesHousingandNeighborhoods

Department.AsDirectoroftheHousingandNeighborhoodsDepartment,WightwastheExecutive

DirectoroftheJacksonvilleHousingFinanceAuthority(JHFA). Wightsprimaryresponsibilities

includedmanagingthedepartments46memberstaffand$20+millionbudget,creatingand

structuringprogramstorespondtocommunityneeds;andrecommendingpolicyoptionstothe

MayorandCityCouncil. PriortoheremploymentwiththeCity,WightservedfortenyearsasSenior

TechnicalAdvisorfortheFloridaHousingCoalition.

Ms.Gregerwillhaveaconsultantroleontheproject.Shewillserveasaliasonwiththelocal

government,assisting

with

the

entitlement

process

and

lending

her

local

expertise

to

the

project.


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ProjectExperiencePARKEASTENTERPRISELOFTS

MILWAUKEE,WI

These stylish urban lofts provide entrepreneuriallyminded residents with creative space in their

unitsandalsounitandprojectamenitiesthatgive them theopportunity tostartbusinesses from

their homes. Community amenities include multiple conference rooms, office spaces, copy and

media/presentation center, and a

library. Thedevelopmentalsohasa

community kitchen, fourthfloor

community roomwith rooftoppatio

andfireplace,andhealthfacility.This

property has helped spur

redevelopment of the Park East

corridorin

Milwaukee

and

is

across

the street from Manpower

Internationals new world

headquarters. In 2007, Park East

received an award of excellence in

urban design from Milwaukee Mayor Tom Barrett, received a 2007 WCREW award, was a large

projectfinalistinthe2007MANDIawards,andwasanAffordableHousingFinancesreaderschoice

finalist.

VILLARDSQUAREGRANDFAMILY

MILWAUKEE,WI

VillardSquareGrandFamilyMilwaukeeisamixedusedevelopmentthataddressestwostrongneeds

ofNorthwestMilwaukeerelocationofaneighborhood librarythatwashoused inabuildingthat

was failing, and housing for families

where grandparents are the primary

caregiversfortheirchildrenskids. Villard

Square was recently awarded a national

award from Affordable Housing Finance

for Best MasterPlanned/MixedUse

Development, The Milwaukee Mayors

Design Award, Public Policy Forums

ProjectoftheYearforBestPublicPrivate

Cooperation,and

the

2012

MANDI

LISC

State Farm Insurance Building Blocks

Award for a real estate project that

contributed significantly to the

enhancementofthecommunity.


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STATEATMAIN

RACINE,WI

State at Main is the northern anchor of Racines downtown redevelopment. This mixeduse

communityprovides16,800square feetofretail,84activeadultaffordableapartmenthomesand

23 marketrate condominiums. This multifaceted development brings a vibrant urban feel to

Racines reemerging downtown.

Located across the street from Belle

Harbor,StateatMain ishelpingRacine

meet its goals of bringing and keeping

more people and employment back to

downtown Racine. State at Main

received a recognition award from

SustainableRacine.

GRANDRIVERSTATION

LACROSSE,WI

GrandRiverStationApartments iscomprisedofanumberofcomponentswhich includea transit

center, retail, rental housing, and a parking deck. The rental housing component of this

developmentincludes72unitsandistargetedtowardartistsandentrepreneurs. Thedesignofthe

units includes live/workspaceandprojectamenitiessuchasabusinesscenter,artistsworkspace,

and an art gallery to

cater toward these

populations. The first

floor transit center

servesasahubforpublic

transportation in

downtown La Crosse

consisting of 10,000

square feet and also

located at ground level.

The third floor of the

building

has

a

parking

deck available to all

residents.


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BLUEWATER

TAVERNIER,FL

BlueWater

is

a36

unit

development

on

a2.7

acre

site

on

Tavernier

Key

in

Monroe

County.

Gorman

&CompanyteamedwithDuanyPlaterZyberk(DPZ),aninternationallyrenownedarchitecturaland

planning firm to focus

on creating innovative

design approach to

housing.Theteamwas

competitively selected

by the Florida Keys

(Monroe County, FL)

to develop viable

workforce housing.

The

County

contributed land, fees

and entitlements to

theproject.

GLENDALEENTERPRISELIVEWORKLOFTS

GLENDALE,AZ

GlendaleEnterpriseLiveWorkLoftsisa28unit,mixedincomedevelopmentspecificallydesignedto

serve the citys downtown workforce as a livenearwork development. Gorman & Company,

along with ABIL, worked closely with

Glendales largest employers to

understand their workforce housing

needs. The idea, in part, is to offer

Glendale Enterprise LiveWork Lofts as

anassettocompanies intheireffortsto

recruit and retain employees. In

addition, some of the unit designs, and

most of the common amenities, are

designed to allow entrepreneurial

peopleto

further

their

work

and

small

businesses.


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MOLINELIVEWORKLOFTS

MOLINE,IL

IntheQuadCities,Gorman&Companycreatedamixeduse,mixedincome,69unit"livework"

development.Itisdesignedtoserveupandcomingentrepreneursandothermembersofthe

regionsevolving"creativeclass."Thedevelopmentistheresultofaninnovativepartnershipthat

includes:thecity;thelocalHousing

Authority;abusinessfocused

nonprofitorganization;andthree

oftheregionslargestemployers.

Thedevelopmentfeatureslive

workunitsthathavecommercial

streetentrances,activatingthe

streetand

allowing

small

business

ownerstocombinetheiroffice,

studio,andresidenceinoneplace.

THELOFTSATMCKINLEY

PHOENIX,AZ

TheLoftsatMcKinleyisa60unit,mixeduse,affordabledevelopmentspecificallydesignedtoserve

independentseniors55yearsandbetterinthecitysdowntowncore. Thedevelopmentisa3story,

urbanloftbuilding. ItfrontsW.McKinleySt.andN.5thAvenueindowntownPhoenixshistoric

RooseveltNeighborhood. LoftsatMcKinleyinvolvesasubterranean,podiumparkingstructurewith

threestoriesof

residentialunits

constructedontopof

thepodium.Amenities

aretargetedtowards

thecreativeclass,witha

computergraphicslab,a

claypottersroom,anda

paintingstudio.

This

offersuniquesynergies

betweenthecreative

classofferingsinthe

RooseveltHistoric

Neighborhood.


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References:(Descriptionsofprojectsarelistedabove) WisconsinHousingandEconomicDevelopmentAuthority(WHEDA)

o 201W.WashingtonAve.Ste.700Madison,WI 53703o BillBoerigter,Manager,MultifamilyHousingo (608)2671450;[email protected] Projects: VillardSquare,GrandRiver,ParkEastEnterpriseLofts

CityofMolineo 61916thSt.Moline,IL 61265o RayForsythe,EconomicDevelopmentDirector (309)7970708

[email protected]

o Project:MolineEnterpriseLiveWorkLofts CityofMilwaukee

o 200E.WellsSt.CityHallRm.201Milwaukee,WI 53202o MayorTomBarrett (414)2862200o MariaPrioletta,HousingandNeighborhoodDevelopmentManagero (414)2865903;[email protected] Projects: VillardSquare,ParkEast

MonroeCountyCommissioners(Florida)o 102050O/SHighway,Suite234KeyLargo,FL33037o SylviaMurphy,Commissionero (305)4538787;[email protected] Projects:BlueWater

3.FinancialCapabilityandCapacity

Withaportfolioofover50propertiescurrentlyinourportfolio,Gorman&Companyhasextensive

multifamilyexperienceandstrongrelationshipswithsyndicatorsanddirectplacementinvestors. In

addition,wehavestronglendingpartners(USBank,JPMorganChase,andBankofAmericatoname

afew)andhavefinancednumerouspropertiesusingFHAprograms.

Gorman&Companyalsoemploysawiderangeoflocal,stateandnationalfundingsourcestargeted

tostimulateinfillrentalhousingtorevitalizeurbanneighborhoods.ExamplesrangefromFederal

HomeLoan

Bank

AHP

Grants,

HOME

and

CDBG

funding,

local

general

funds

and

general

obligation

bondsandmunicipalTaxIncrementalFinancing. Weareskilledinthelayeringoffundingsourcesto

ensurethataprojectisfinanciallysuccessful. Inour27yearsinbusiness,Gorman&Companyhas

neverhadadefaultorforeclosureonanyproperty.

Gorman&CompanyhasthefinancialcapacityandexperiencetodeveloptheLaVillasites. As

developersofresidentialpropertieswearefinanciallyresponsibleto:fundpredevelopmentcosts;

financegapsinprojectfinancing;payforprojectoverruns;financiallyguaranteeleaseup;andfund

anyoperatingdeficitsforseveralyears.Oftheover50projectsthatGorman&Companyhas


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developedinthepast27years,thecompanyhasneverhadaforeclosure,neverdefaulted,and

neverhashadthegeneralpartnerreplacedbytheinvestor. Thecurrentstockholderequityfor

Gorman

&

Company

and

its

affiliate,

Gorman

General

Contractors,

is

valued

at

$42,000,000.

Inaddition,wereducethefinancialriskofourprojectsbyreducingourriskofcostoverruns. We

investheavilyinduediligencefromtheearlystagesofthedevelopmentprocess,haveanarchitect

onstaff,andemployourinhousegeneralcontractingdivisiontoproducedetailedcostestimates

fromearlydesigndrawings.

Wereduceouroperatingriskbyincorporatingfeaturesandamenitiesthatarecuttingedgeforthe

marketinwhichwearebuilding. Inaddition,ourpropertymanagementaffiliateworksveryearlyin

theprocesstoidentifyourtargetmarketandcreatedemandpriortothecompletionofthe

construction.

Auditedfinancial

statements

were

not

included

due

to

the

page

limit

requirements

of

this

RFP.

Proforma,Sources&Uses,financingcommitment,evidenceofabilitytofundAsurveyofmarketraterentalunitsindowntownJacksonvilleindicatethataveragesquarefoot

rentsare$1.35indowntownJacksonville. Thissquarefootagerentwasusedtodeterminetherents

forLaVillaEnterpriseLofts.

ProformasforbothProposalsAandBareenclosedforreference,includingasources&usesanalysis

foreachscenario.AlsoattachedisafinancingcommitmentforeachProposal,forthePermanent

Mortgagefinancing.

Equitycommitmentandtiming/disbursementAsistypicalinurbanrevitalizationareas,marketrentsindowntownJacksonvilledonotsupportthe

costofthedevelopment. Gorman&Companywillcontribute$3,467,151and$4,611,489in

developerequityforProposalsAandB,respectively,toprovideneededfinancingfortheproject. As

partofourcommitmenttotheLaVillaEnterpriseLoftsandtoourpartnershipwiththeCityof

Jacksonville,Gormanwillreinvestdeveloperfeesandgeneralcontractorfeesbackintotheproject

toensureitsfinancialfeasibility. ThisinvestmentofthefeesthatarenormallyearnedbyGormanto

offsetconstructionanddevelopmentriskwillbeusedinsteadtofundprojectcosts. Feeswillbere

investedasearnedthroughoutthedevelopmentoftheLaVillaEnterpriseLofts.

BankreferencesJPMorganChaseBank,N.A.

10S.DearbornMailcode: IL10953

Chicago,IL 60670

RhondaMcFarland,VicePresident,CommunityDevelopmentBanking(312)3255075

[email protected]


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BMOHarrisBank

111W.MonroeStreet/2East

Chicago,Il.60603

KatherineB.Mazzocco,SeniorVicePresidentofCommunityDevelopmentLending(312)4612797

[email protected]

ProjectedfinancialstructureofprojectGorman&Companyspecializesinurbaninfillandurbanrenewalprojectsthatactascatalytic

developmentsforthesurroundingneighborhood. Gormansprojectshavespurredprivate

investment,revitalizedcommunitiesandencouragedsurroundingdevelopmentbytheprivate

sector. Wehavebuiltandoperatedover50multifamilyandmixeduseproperties,primarilyin

partnershipwithlocalgovernments,andhavealwaysbeenaskedbacktodevelopadditional

projectsinthecommunitiesinwhichwehaveserved.

Becauseofourextensiveexperiencedevelopingurbanrenewalproperties,weunderstandthe

financingstructureneededtoensurethattheseprojectsaresuccessfulandthattheybecomethe

catalyticdriverforthesurroundingarea. Currentmarketdemand(i.e.rentandpropertyvalues)in

LaVilllaisnothighenoughtospurprivateinvestment,yetdevelopmentisneededinthisareato

attractthatadditionalprivateinvestment. OurexperienceshowsthatpropertiesliketheLaVilla

propertyneedatrueprivate/publicpartnershiptobesuccessfuland,assuch,weareproposingthe

followingfinancingstructure:

ProposalA(DevelopmentSite2)

o PermanentMortgage(FHA221(d)(4)program) $14,190,000o DeveloperEquity(Gorman&Company)$3,467,151o CityofJacksonville$1,819,840

ProposalB(DevelopmentSite1&2)

o PermanentMortgage(FHA221(d)(4)program) $18,915,000o DeveloperEquity(Gorman&Company)$4,611,489o CityofJacksonville$2,287,940

Thisfinancingstructureallowsustomaximizethedebtavailabletotheproject(FHAproducts

currentlyhavethelowestinterestrateavailableonthemarketwithanextendedamortization

period)andcreatesatruepartnershipbetweentheCityofJacksonvilleandGorman&Company.

BoththeCityandGormanwillbenefitfromthesuccessofLaVillaEnterpriseLofts. TheCitywill

increaseitstaxbasebothbythedevelopmentofthisprojectandbysurroundingdevelopment

spurredbyLaVillaEnterpriseLofts. Gorman&Companywillbenefitbyreceivingareturnonits


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equityinvestmentintotheprojectintheformofcashflowfromoperations. Thisfinancialstructure

hasbeenverysuccessfulwithnumerousurbanrenewalprojectswehavedevelopedinpartnership

with

local

governments.

4.DevelopmentSchedule(seeSection4ofRFP)

Thedevelopmentscheduleforbothproposalsisoutlinedbelow:

ProposalA(DevelopmentSite2)

ForProposalA,thedevelopmentschedulewillmirrorthePerformanceSchedulerequestedinthe

RFP:

Within15monthsoftheeffectivedateofthepurchaseandsale,Gorman&CompanywillhaveappliedforallpermitsfortheconstructionofLaVillaEnterpriseLoftsforDevelopment

Site2.

o EffectivedateofthePurchaseandSaleSeptember,2013o CompletionofarchitecturalplansDecember,2013o SubmittaltotheDowntownDevelopmentReviewBoardJanuary,2014o PreApplicationtoFHAforthe221(d)(4)financingJanuary,2014o FullapplicationforFHAfor221(d)(4)financingMarch,2014o SubmittalforsiteplanapprovalJune,2014o CompletionofconstructiondrawingsOctober,2014o ApplicationforallbuildingpermitsNovember,2014

Within

60

days

of

the

issuance

of

the

permits,

Gorman

&

Company

will

have

broken

ground

andbeinmaterial,ongoingphysicalconstructionoftheimprovements

o PermitsissuedJanuary,2015o Groundbreaking/commencementofconstructionFebruary,2015

Withinoneyearofthatdate,Gorman&Companywillhavecompletedconstructionandreceivedcertificatesofoccupancy.

o Completionofconstruction/certificatesofoccupanciesFebruary,2016ProposalB(DevelopmentSite1&2)

ThedevelopmentscheduleforProposalBwillbethesameasthescheduleforProposalA.

Within15monthsoftheeffectivedateoftheleaseagreement,Gorman&CompanywillhaveappliedforallpermitsfortheconstructionofLaVillaEnterpriseLoftsforDevelopment

Site2.

o EffectivedateofthePurchaseandSaleSeptember,2013o CompletionofarchitecturalplansDecember,2013o SubmittaltotheDowntownDevelopmentReviewBoardJanuary,2014o PreApplicationtoFHAforthe221(d)(4)financingJanuary,2014o FullapplicationforFHAfor221(d)(4)financingMarch,2014o SubmittalforsiteplanapprovalJune,2014


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o CompletionofconstructiondrawingsOctober,2014o ApplicationforallbuildingpermitsNovember,2014

Within

60

days

of

the

issuance

of

the

permits,

Gorman

&

Company

will

have

broken

ground

andbeinmaterial,ongoingphysicalconstructionoftheimprovements

o PermitsissuedJanuary,2015o Groundbreaking/commencementofconstructionFebruary,2015

Withinoneyearofthatdate,Gorman&Companywillhavecompletedconstructionandreceivedcertificatesofoccupancy.

o Completionofconstruction/certificatesofoccupanciesFebruary,20165.PurchasePriceorLeaseTerms

Asis

typical

in

urban

renewal

areas,

current

market

rents

in

downtown

Jacksonville

remain

below

whatisneededtoenabletheprivatesectortopurchaselandanddevelopnewhousingunitsinthe

downtownarea. Tofinancethisproject,Gorman&Companyisreinvestingitsnormallyearned

developerandgeneralcontractorfeesbackintoprojectcostsaswellasrequestingadditionalcapital

fundingfromtheCityofJacksonville.Becausemarketconditionsrequireadditionalfundingforthe

constructionofLaVillaEnterpriseLofts,Gorman&CompanyisproposingtoacquireDevelopment

Site1andDevelopmentSite2for$100,utilizingaPurchaseandSaleContract. Whenconstructed,

weestimatethatourproposalswillgeneratesignificantpropertytaxesfortheCityofJacksonvilleon

propertythatisnowtaxexempt. WeestimatethatthevalueofLaVillaEnterpriseLoftsunder

ProposalAwouldgenerateanadditional$189,000inannualpropertytaxesfortheCityof

Jacksonvilleand

for

Proposal

B,

that

amount

would

increase

to

$252,000.


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ProposalAProforma,Sources&UsesKeyAssumptionsIncomeincrease 1%

Expenseincrease 1%

Vacancyrate 7%

Otherrevenue/unit/month 0

Interestrateseniorloan 4.50%

Amortizationsenior

loan

40

Stabilizeddebtcoverageratio 1.20

Investorservicesfee $

1 2 3 4 5

Tenantpaidrent 1,687,635 1,704,511 1,721,556 1,738,772 1,756,160

Otherrevenue 0 0 0 0 0

Potentialincome 1,687,635 1,704,511 1,721,556 1,738,772 1,756,160

Vacancyloss (118,134) (119,316) (120,509) (121,714) (122,931)

Netincome 1,569,501 1,585,196 1,601,048 1,617,058 1,633,229

Operatingexpense 598,500 604,485 610,530 616,635 622,802

Replacementreserve

52,500

53,025

53,555

54,091

54,632

Netoperatingincome 918,501 927,686 936,962 946,332 955,7951stloandebtservicePrincipal 129,617 135,572 141,800 148,314 155,128

Interest 635,898 629,944 623,716 617,201 610,388

Newloanbalance 14,060,383 13,924,811 13,783,011 13,634,697 13,479,569

Cashflowafter1stloan 152,985 162,170 171,447 180,816 190,280

Debtcoverageratio 1.200 1.212 1.224 1.236 1.249

Investorservicesfee 0 0 0 0 0

Cashflowafter

fee

152,985

162,170

171,447

180,816

190,280

DeferreddevfeedebtservicePrincipal 0 0 0 0 0

Interest 0 0 0 0 0

Newloanbalance 0 0 0 0 0

CashflowafterdeferredfeeDS 152,985 162,170 171,447 180,816 190,280


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ProposalBProforma,Sources&UsesKeyAssumptionsIncomeincrease 1%

Expenseincrease 1%

Vacancyrate 7%

Otherrevenue/unit/month 0

Interestrateseniorloan 4.50%

Amortizationseniorloan 40

Stabilizeddebt

coverage

ratio

1.20

Investorservicesfee $

1 2 3 4 5

Tenantpaidrent 2,250,180 2,272,682 2,295,409 2,318,363 2,341,546

Otherrevenue 0 0 0 0 0

Potentialincome 2,250,180 2,272,682 2,295,409 2,318,363 2,341,546

Vacancyloss (157,513) (159,088) (160,679) (162,285) (163,908)

Netincome 2,092,667 2,113,594 2,134,730 2,156,077 2,177,638

Operatingexpense 798,000 805,980 814,040 822,180 830,402

Replacement

reserve

70,000

70,700

71,407

72,121

72,842

Netoperatingincome 1,224,667 1,236,914 1,249,283 1,261,776 1,274,3941stloandebtservicePrincipal 172,777 180,715 189,017 197,700 206,782

Interest 847,640 839,703 831,401 822,718 813,635

Newloanbalance 18,742,223 18,561,508 18,372,491 18,174,791 17,968,009

Cashflowafter1stloan 204,250 216,496 228,865 241,358 253,976

Debtcoverageratio 1.200 1.212 1.224 1.237 1.249

Investorservicesfee 0 0 0 0 0

Cashflow

after

fee

204,250

216,496

228,865

241,358

253,976

DeferreddevfeedebtservicePrincipal 0 0 0 0 0

Interest 0 0 0 0 0

Newloanbalance 0 0 0 0 0

CashflowafterdeferredfeeDS 204,250 216,496 228,865 241,358 253,976


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(Proposal A)


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esc-0456-13 gorman and company bid submission

Documents