City of Cleveland Frank G. Jackson, Mayor

____________________________________________________________________________________________________________________________

REQUEST FOR PROPOSALS

SINGLE FAMILY NEW CONSTRUCTION

FOR

Site A and Site B in the Circle North Area

CLEVELAND, OHIO 44106

March 16, 2018

City of Cleveland

Department of Economic Development

601 Lakeside Avenue, Room 210

Cleveland, Ohio 44114

2

Request for Proposals

Single Family New Construction:

Site A and Site B in the Circle North Area

Mayor Frank G. Jackson’s

Neighborhood Transformation Initiative

Issued: March 16, 2018

By:

City of Cleveland Office of the Mayor

Edward W. Rybka, Chief of Regional Development

Susan Vincent, Special Assistant,

Chief of Regional Development

Department of Economic Development

David M. Ebersole, Interim Director

Briana Butler, Program Manager,

Mayor Jackson’s Neighborhood Transformation Initiative

Department of Community Development

Louise Jackson, Interim Director

City Planning Commission

Freddy L. Collier Jr., Director

Due

April 27, 2018, no later than 4:30 PM EST

All inquiries should be directed to: Briana Butler,

(216) 664-2202 or bbutler2@city.cleveland.oh.us

All proposals are to be mailed or hand-delivered directly to

the Issuing Department (Economic Development). Any

packet received after the date and time specified will not

be accepted.

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March 16, 2018

Dear Developers:

The City of Cleveland (“City”), through its Interim Director of Economic Development

(“Director”), is soliciting proposals for the redevelopment of two (2) clusters of residential

infill lots in the Circle North area of Glenville (“Development Site”). Your proposal should

indicate which cluster you would like to be considered for. If you would like to be considered

for either of the development areas, please indicate that you wish to apply for Circle North

Site A or Site B. These lots are located between Churchill and Ashbury Avenues and

between East 105th and East 118th Streets (“Development Site” or “Site”).

A Pre-Proposal Meeting will be offered on Thursday, April 5, 2018 at 10:00 AM EST at

Cleveland City Hall. During this meeting, City officials will be available to answer any

questions regarding this RFP and the Development Sites.

Firms wishing to be considered in the developer selection process must submit three (3)

print copies and one (1) electronic copy of their proposal no later than 4:30 PM EST,

Friday, April 27, 2018.

No proposals will be accepted after that date and time unless the City extends the deadline

by a written addendum.

Sealed proposals may be mailed or delivered to the address below and must be identified on

the outside of the envelope(s) as: Proposal for Site A in Circle North; Proposal for Site B in

Circle North; or Proposal for Site A or B in Circle North

Mr. David M. Ebersole

Interim Director of Economic Development

City of Cleveland

601 Lakeside, Room 210

Cleveland, Ohio 44114

The City reserves the right to reject any or all proposals or portions of them, to waive

irregularities, informalities, and technicalities, to re-issue or to proceed to obtain the

service(s) desired otherwise, at any time or in any manner considered in the City’s best

interests. The Director may, at his sole discretion, modify or amend any provision of this

notice or the RFP.

Should you have any questions regarding this solicitation, please contact Ms. Briana Butler

at 216-664-2202.

Sincerely,

David Ebersole

Interim Director

City of Cleveland

Department of Economic Development

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SITE BACKGROUND:

The City of Cleveland, Department of Economic Development is requesting proposals for single

family new construction infill homes on a series of vacant parcels between Churchill and

Ashbury Avenues and between East 105th and East 118th Streets, Cleveland, Ohio. See

attached Exhibit A-1 for a parcel map and Exhibit A-2 for a list of included parcels. The City is

in the process of transferring a lot from the Cuyahoga County Land Reutilization Corporation

(“CCLRC”) also known as the County Land Bank.

VISION STATEMENT:

The City of Cleveland has identified Target Zones that will act as catalysts for neighborhood

reinvestment. The proximity of the Glenville neighborhood to University Circle, and its rich

assets such as Rockefeller Park, the Wade Park Historic District, newly renovated housing along

Heritage Lane, the renovated Doan Classroom Apartments, and future Fisher House residential

development provide a strong foundation on which to build.

The East 105th

Street Corridor creates the western border for the Circle North neighborhood and

is one of several commercial corridors being targeted for strategic reinvestment as part of Mayor

Frank G. Jackson’s Neighborhood Transformation Initiative. The East 105th

Street Corridor

provides a critical link between University Circle and the Glenville Neighborhood of Cleveland.

It serves as a hub for medical, educational, and cultural activity in Northeast Ohio.

The Initiative’s goal of economic and racial inclusion is reached by continuing to support private

investment, stopping decline, stabilizing neighborhoods, and preparing for growth. The Initiative

includes mixed use development, single-family and multi-family residential development, retail,

and entrepreneur and workforce training opportunities to support neighborhoods heavily

impacted by the economic recession. The goal for this Development Site is to diversify the

housing options and increase residency in the area to support local retail and further contribute to

the community.

A focus on targeted investment both directly along commercial corridors and in the residential

areas which surround them in inherently disadvantaged communities will be critical to ensure

that reinvestment in the City of Cleveland is accomplished and that market confidence is restored

in communities such as Glenville.

New housing in the Circle North neighborhood – including this RFP, housing renovations along

Heritage Lane, the proposed Fisher House, and the renovated Doan Classroom Apartments –

increases the need for retail amenities in close proximity to residents. Creating a mix of local

retail and dense residential housing is critical for long term neighborhood stability.

The corridor along East 105th

from Wade Park Avenue to Superior Avenue is envisioned as the

hub for neighborhood retail activity, supported by the housing investment. The City has awarded

a mixed-use development, to include first-floor retail and three stories of mixed-income

apartment units, at a two acre site just north of Ashbury Avenue along East 105th Street. This

development will provide an opportunity to establish retail amenities close to the concentration

of new housing.

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Additionally, Famicos Foundation, the local community development corporation, has completed

the Glenville Arts campus as part of the FRONT International contemporary art exhibit, in the

former Medical Arts building just south of Ashbury Avenue on East 105th

Street. This

development will provide artist residency housing with ground floor commercial space.

Convenience retail and restaurants in close proximity to higher density residential development

promotes a walkable neighborhood and can impact the walkscore. Walkability is one of several

metrics used by prospective residents to determine the quality of life in a neighborhood. The

combination of single family housing, retail and apartment development will help spur new

investment beyond the Initiative.

The Development Site is also located within the Greater Circle Living program area. Greater

Circle Living is an employer assisted housing program created to encourage eligible employees

to live near their place of work. The program provides both rental assistance to new renters and

down payment assistance to new home buyers. New homes constructed under this program will

be marketed to eligible employees who currently are on a waiting list for new homes, due to a

lack of available product. Down payment assistance is up to $30,000 per household. Refer to

Exhibit B-1 for more information on the Greater Circle Living down payment assistance

program.

The City of Cleveland provides a 15 year, 100% tax abatement for new residential construction.

This is another incentive to potential homebuyers. Developer is responsible for submitting an

application for this incentive for each house, which can be found at the City of Cleveland

Department of Community Development’s webpage. Developers seeking tax abatement for

residential projects must meet the Cleveland Green Building Standards found in the Cleveland

Green Building Standard Handbook. The tax abatement requires green building criteria or LEED

certification.

SITE LOCATION AMENITIES:

The Development Site is included in multiple comprehensive planning efforts by both the City of

Cleveland Planning Commission and Famicos Foundation, making it attractive for

redevelopment purposes. Thrive 105-93 (adopted by the City of Cleveland in August 2017) and

the Glenville Master Plan (adopted by the City of Cleveland on July 7, 2017) identify this area as

a higher-density development zone. Additionally the site is located just north of the Veteran’s

Administration Hospital, several blocks north of a concentration of art and cultural museums, as

well as University Hospital’s and Cleveland Clinic’s main campuses, and northwest of the

University Circle District, all areas prospering from consistent development. The site is walkable

to the transit corridor along East 105th

providing residents with convenient transportation to jobs

in University Circle and with a single transfer at the Health Line for access to Downtown.

The area contains a variety of different zoning, all of which support single family homes. See

attached Exhibit B-2 for zoning of the area.

6

PROPOSAL GUIDANCE:

The City expects that there may be some gap between sales price and appraised values for the

first few homes constructed. The area has had few new homes sold in recent years. Many east

side neighborhoods have artificially low appraised values. If you put the exact same house in

another neighborhood the appraisal would be higher. With the requirement that appraisers

cannot legally include homes that have sold except those within a one-mile radius, areas that are

bordered by parks, institutions or non-housing commercial industrial areas have lost value during

the foreclosure crisis and have never recovered, causing those who still live there to have lost the

wealth associated with their home.

The Greater Circle Living down payment program will help address the appraisal gap. The City

of Cleveland can provide down payment assistance for homebuyers who are not part of that

program and who are eligible for additional assistance. In addition, various banks are willing to

provide first mortgages to homebuyers for amounts over 125% of appraised value (please refer to

Exhibit H). These programs provide solutions for any potential appraisal gap and provide

incentives to buyers looking for new homes in the Greater University Circle Area. Additionally,

these programs allow homes to be sold at their true value, which in turn will bring appraised

values in the area up to the true value. This will bring new investment to this neighborhood that

has so many amenities nearby.

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The City is looking for the following for houses to be constructed under this proposal:

Each home must be a single family, stand-alone home with no shared walls.

Architecture must fit with that of the neighborhood.

Selected developer must show an ability to obtain a construction loan or loans for the

amount needed for the construction timeline proposed. Failure to keep an active

construction timeline could result in land being redirected to other builders.

The Greater Circle Living program is not a City of Cleveland program and may be

available separate from the City’s new construction RFP. The City of Cleveland will

work with selected developers to create a marketing piece for individuals who are eligible

for the Greater Circle Living as well as other interested prospective homeowners and

work to pre-approve borrowers through participating banks. The City of Cleveland is not

responsible for the sale of houses.

Sales price for these lots is $200 for each lot.

This is a market rate project. At this time we are not seeking Low Income Housing Tax

Credit (LIHTC) Projects. All lots will be placed in escrow for the selected developer and

may be drawn when Draw Requirements are met (See Exhibit C).

Each developer will be provided with a choice of lots on which they must build at least

13 homes.

The homes must be completed in three (3) years or less from the development agreement.

This will result in at least 26 new homes in the Circle North Area. The City of Cleveland

encourages the construction of additional homes in the area and anticipates that appraised

values will increase after the first year, driving the market to invest without incentives.

The City is seeking homes at different price points and suggests homes between 1,200 SF

and 1,800 SF. Homes should include a garage. Larger homes may be constructed if

constructed for a pre-approved borrower in a build-to-suit situation.

Developers should describe and provide designs for at least two home models.

More than one lot may be used for a home with prior approval from the City of

Cleveland; otherwise, all homes should be constructed on a single lot. This includes

situations where a developer uses a city-owned lot and acquires a privately owned lot to

create a new lot consisting of two or more parcels.

Proposals for homes should meet the Minimum Design Standards for this RFP (See

Exhibit D).

The City will consider proposals without basements as an option to reduce costs, and

allow for a more affordable product, while still providing quality homes with quality

finishes.

The City will select two to three developers to move to a development agreement. If the

developer is unable to secure construction financing for the project, the City will select another

developer from those who responded to the RFP. Once funding and the construction timeline are

finalized, the City will deposit the land into escrow. The developer will then commence

construction as soon as weather conditions allow and all permits are issued.

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The City encourages developers to refer to Exhibit E for a summary of the key planning

initiatives for this area. Developers are to explain how their proposal is consistent with the

following plans and initiatives: Thrive 105-93 Plan, and the myGlenville Master Plan.

Preference will be given to proposals that provide the best sales price and best designs and higher

quality fixtures for the best quality home.

The project is to be completed expeditiously. The selected developer must execute a purchase

and development agreement within 30 days of receiving the documents from the City, unless

extended by mutual agreement.

The City requires the use of City-certified Minority Business Enterprise (MBE), Female

Business Enterprise (FBE) and/or Cleveland Small Business (CSB) firms in subcontracting if the

City provides more than $50,000 towards the homes constructed under this RFP. Cleveland

residents, and low-income Cleveland residents, must be used in on-site construction when more

than $100,000 of City funds are provided towards homes constructed under this RFP. The

current Community Benefits Agreement (CBA) includes 15% Minority subcontractors, 8%

Certified Small Business subcontractors, and 7% Female Business subcontractors, as well as

20% of construction hours to Cleveland residents including 4% of those hours for low income

Cleveland residents. Submitted proposals should clearly indicate how the developer will

incorporate Cleveland residents and MBE, FBE and CSB firms into the project. Additionally,

developers are to address employment opportunities for youth. A sample CBA is included in

Exhibit F.

Proposals with higher MBE, FBE and CSB participation and higher utilization of Cleveland

Residents, low income Cleveland residents, and youth will be given more points.

The City will provide the following:

1. Purchase Price: The City will provide lots at $200 per lot. After a purchase and

development agreement is executed, lots will be placed into escrow. The City and the

selected developer may negotiate a completion guaranty.

2. Environmental: The prior use of these lots was residential. City of Cleveland may assist

the selected developer with the cost of obtaining an environmental assessment via

USEPA funding, if needed and if funding is available.

3. Financing: The selected developer must propose a sales price for each design proposed.

The design should include a complete list of materials to be used throughout the home.

The City’s residential tax abatement program applies to this project (100% for 15 years).

Developer is responsible for submitting an application for this incentive of which can be

found at the City of Cleveland Department of Community Development webpage.

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REQUEST FOR PROPOSAL SUBMISSION REQUIREMENTS AND DEADLINE

The Request for Proposal (RFP) response shall include at a minimum:

Proposed designs and floor plans for homes between 1,200 and 1,800 SF and plans for a

garage that are appropriate for the architecture of the neighborhood.

Proposed sales price for each home design, as well as a complete list of materials used in

each design.

Any market information to support the sales price identified in Exhibit G.

Proposed source of construction financing, with Letter of Intent from a reputable lender.

An organizational chart illustrating the relationship of key personnel and project

manager.

Work assignment and experience of key personnel and project manager for the developer.

Include names, titles and relevant experience of all significant staff that will be involved

in the project.

Descriptions of no more than three (3) similar projects completed by the firm’s personnel

who will be involved in this project.

A list of components that meet the green standards for tax abatement for the City of

Cleveland.

Explanation of how the proposal is consistent with the following plans and initiatives:

myGlenville Master Plan, and the Thrive 105-93 Plan.

Identification of how local youth will be involved in the project.

Identification of opportunities for the use of MBE/FBE/CSB Subcontractors and City of

Cleveland Residents for the project. Developers should indicate past performance on

City of Cleveland projects (if applicable), efforts to identify and engage potential

subcontractors, and proposed outreach efforts to include Cleveland residents. List of

references.

Firms wishing to be considered in the selection process must submit two (2) print copies and one

(1) electronic copy of their proposal no later than 4:30 PM EST, Friday, April 27, 2018.

The complete proposal package shall be plainly marked as shown below:

Proposal for Circle North Scattered Sites Firm Name:

Submittal Date:

Attn: David Ebersole

Interim Director of Economic Development

City of Cleveland

601 Lakeside, Room 210

Cleveland, Ohio 44114

10

The developer’s proposal shall include a signature by a person authorized to submit and sign a

proposal, the firm name, address, telephone number, the name of the person authorized to

submit/sign the proposal, and his/her title, telephone number and e-mail address. If the firm’s

primary point of contact is different from the authorizing signatory, the primary point of

contact’s title, telephone number, and e-mail address should be included as well.

Proposals received after the designated date and time will not be considered in the selection

process.

The City reserves the right to accept or reject any or all proposals and to waive informalities or

irregularities in the selection process.

Should it become necessary to revise any part of the RFP or otherwise provide additional

information, an addendum will be issued by the City and furnished to all firms that are on record

as having received copies of the original Request for Proposal.

The City will not be liable for any costs incurred by the respondents in replying to this RFP. The

City is not liable for any costs for work or services performed by the selected developer prior to

executing a Development Agreement.

Unauthorized contact regarding this Request for Proposal with any City employee may result in

disqualification. Any oral communication will be considered unofficial and non-binding.

Developers shall rely only on written addenda issued by David Ebersole. Requests for further

information or questions regarding this Request for Proposals should be addressed only to Briana

Butler at the following address:

Ms. Briana Butler

Manager, Mayor’s Neighborhood Transformation Initiative

Department of Economic Dvelopment

City of Cleveland

601 Lakeside, Room 210

Cleveland, Ohio 44114

E-mail: bbutler2@city.cleveland.oh.us

SELECTION PROCESS AND TENTATIVE SCHEDULE:

The proposals considered in the selection process will be evaluated by a committee appointed by

the Department of Economic Development according to the criteria and point system presented

below. The City will not release the names of committee members and requires that developers

direct any written questions to Briana Butler. The committee appointed by the Department of

Economic Development will evaluate the proposals utilizing the proposal evaluation criteria and

report to the Department of Economic Development.

11

The Department of Economic Development will decide to either select based solely on the

proposals or to interview the highest rated developers. Following the developer’s selection, the

Department of Economic Development will initiate development agreements with the selected

developers. The sale of the land will be handled by the City of Cleveland Landbank, based on

their authorization by Mayor and City Council, and based on the proposed terms of the proposal.

It should be noted that the City of Cleveland Landbank is in the process of transferring a lot from

the Cuyahoga County Land Reutilization.

The following is the proposed schedule for this project. The schedule is subject to change at the

sole discretion of the City:

March 16, 2018 Distribute Request for Proposals

April 5, 2018 at 10:00 AM EST Pre-Proposal Meeting

April 27, 2018 by 4:30 PM EST Deadline for Receipt of Proposals

May 11, 2018 Internal Design Review and Selection by Committee

May 25, 2018 Complete Negotiation of Deal Terms

June 22, 2018 Execution of Development Agreement

PRE-PROPOSAL MEETING:

A Pre-Proposal Meeting will be offered on Thursday, April 5, 2018 at 10:00 AM EST.

Interested parties should RSVP to Briana Butler (216) 664-2202 or via email at

bbutler2@city.cleveland.oh.us.

PROPOSAL EVALUATION CRITERIA:

The following information should be included in each Proposal and will form the basis of the

evaluation (unless noted otherwise). The point number is the weight of each criterion. Interviews

may be conducted to obtain additional information regarding the proposal.

All proposals will be scored between 0 and the maximum points established for each criterion.

The points are not intended to reflect the relative qualifications of the developer for that

criterion; rather it is reflective of the developer’s ranking as compared to the other proposals. A

total point score of zero does not mean the firm is unqualified.

Overall Qualifications of Firm/Team (10 Points)

Provide a description of the overall qualifications of your firm and project team.

Provide examples (not more than three) of similar projects performed by your team within the

last five years. The examples should include the nature of your involvement in the project, any

special environmental or technical problems involved in the project, how the problems were

resolved, the name and phone number of the owner’s representative in charge of the project, the

total project cost, and when the project was performed.

Provide a list of references for work that has been completed in the last three years.

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Project Manager/Key Personnel (5 Points)

The proposal should include the name and qualifications of the Project Manager (PM) to be

assigned to this project. Include the Project Manager’s prior similar experiences on:

• Projects which best illustrate his/her expertise to perform the requested services.

• Track record in meeting schedules and budgets.

• Developing and implementing cost effective design processes.

For any projects listed, include the name and phone number of the owner’s representative in

charge of the project.

Provide the identity and qualifications of Key Personnel (including both prime and sub-

contractors) to work on this project, including the adequacy and appropriateness of their

credentials and capabilities, expected project assignments, the extent of their project

participation, and the relevance of their prior experience to this project (if any).

Provide a description of Key Personnel experience with public financing, and Federal, State and

local resources. The description should include a demonstrated ability to comply with applicable

government regulations.

Provide an organizational chart illustrating the relationship between the PM and Key Personnel.

Identify sub developers in the organizational chart by name and firm.

Proposed Design, Materials and Sales Price and Compliance with Existing Planning Efforts

(40 Points)

Identify at least 13 lots (in either Site A or B) for which you wish to be considered. If you wish

to be considered for either Site A or Site B, then your proposal should identify at least 13 lots in

each Site. Complete Exhibit A-2.

Identify the scope of work for the project. Provide the construction schedule and development

timeline for the project. The maximum time for completion of the homes is three (3) years from

execution of the development agreement.

Provide designs for at least two home models between 1,200 and 1,800 SF. Include renderings

and floor plans for each design of the proposed development. The design should fit the character

of the neighborhood. Provide a complete listing of materials to be used in each design, making

sure that the proposed house will meet or exceed the minimum design standards in Exhibit D.

Provide a sales price for each design of home and provide estimated appraised value. Provide an

explanation of why the estimated appraised value is applicable to the houses to be built in the

area. Complete the “Gap Chart” in Exhibit G to determine if additional down payment

assistance funds may be needed to sell the homes. Developers whose proposals provide the best

quality for the best price will be scored higher.

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The City of Cleveland is committed to supporting healthy, sustainable development that benefits

the residents of its neighborhoods. Proposals should be consistent with existing planning efforts

as adopted by the City of Cleveland’s Planning Commission. Please refer to Exhibit E.

Project Financing (30 Points)

Indicate the amount of construction funds needed throughout the project timeline and show the

ability to obtain those funds. A letter of intent from a reputable lending institution should be

shown. If any developer has their own funding, the City will need to review the availability of

cash for this use.

If any developer plans to provide potential homebuyers with their own financing, the information

on the type of loans provided should be included detailing interest rate, fixed or variable, term,

underwriting criteria, loan to value ratio allowed, collection policies, etc. The City will need to

review these terms and compare to other bank financing to determine if the financing is more or

less favorable than bank financing available. The program is designed for the mortgage gap to

be filled by a combination of 125% mortgages and down payment assistance. City down

payment assistance cannot take the place of the 125% mortgages contemplated in this RFP. If the

appraised values are increased to the point when conventional financing may be utilized, the City

may consider down payment assistance with conventional loans on a case by case basis.

Proposed Community Benefits Agreement (10 points)

The City of Cleveland is seeking developers who will strive to benefit Cleveland residents,

Cleveland students and Cleveland certified minority, female and small businesses for this

project. Exhibit F includes a sample Community Benefits Agreement.

Indicate any of your firm’s previous experience with projects funded by the City of Cleveland

and your track record of compliance with the City’s MBE/FBE/CSB and Cleveland Residents

regulations (Cleveland Codified Ordinances Chapters 187 & 188).

Clearly indicate how your firm will incorporate Cleveland-certified MBE, FBE and CSB

subcontractors into the construction aspects of this project. Developers should indicate the goals

they expect to make and reporting they will provide.

Developers without applicable experience will be eligible to receive full points and will be

evaluated entirely on the proposed use of certified subcontractors and residents.

There are several vacant lots not included in this RFP. Addressing these lots through clean-up

and/or landscaping efforts will benefit the community and make the Development Sites more

attractive. Developers who indicate plans for clean-up and landscaping of vacant lots that are not

included in this RFP will be scored higher.

Area Youth Involvement (5 points)

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The City of Cleveland is very interested in providing an opportunity to local youth to both learn

more about development in their community and to participate in the project. In the past,

developers have provided internships to John Hay Architecture students to participate in the

design process, as an example. In addition, the Famicos Foundation has a Youth Program to

provide landscaping in the area that could possibly benefit from assisting with landscaping on

this project. Donations to such a program could also be considered as helping with youth

involvement.

Developers who show a clear commitment to area youth via funding and/or involvement will be

scored higher.

GENERAL FORMAT:

All proposals shall contain concise written material and illustrations. Legibility, clarity, and

completeness are essential. All submittals must have the following tabbed headings:

Overall Qualifications of Firm/Team

Project Manager/Key Personnel

Proposed Design, Materials and Sales Price

Project Financing

Proposed Community Benefits Agreement

Area Youth Involvement

ATTACHMENT LIST:

Exhibit A-1: Development Site Location

Exhibit A-2: Development Parcel List

Exhibit B-1: Greater Circle Living Program Information

Exhibit B-2: Map of Zoning in Project area

Exhibit C: Escrow Draw Requirements

Exhibit D: Minimum Materials and Design Standards

Exhibit E: Summary of Key Planning Initiatives

Exhibit F: Sample Community Benefits Agreement

Exhibit G: Gap Chart

Exhibit H: High LTV

15

Exhibit A-1

Development Site Location

16

Exhibit A-2

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17

Exhibit B-1

Greater Circle Living Program Information

Greater Circle Living (GCL) is an employer assisted housing program created to encourage eligible

employees of institutions in the area to live near work. The program was started in 2008 to help

employees purchase, rent, or repair homes in the program service area. You can find more

information on Greater Circle Living here.

The GCL home purchase program is for employees of Case Western Reserve University,

Cleveland Clinic, University Hospitals, Cleveland Museum of Art, and Judson at University Circle. It

is a $20,000 forgivable loan (or $30,000 loan for working households)* that will be used for down

payment and/or closing costs associated with the purchase of an owner-occupied residential property

in the Greater University Circle Area. The GCL forgivable loan will be forgiven if the employee

continues to work for their employer and continues to occupy the residence for 60 months (five

years) after the GCL loan has closed. All GCL loans will be secured and will carry an interest rate of

0%.

*Judson at University Circle’s home purchase program is a $5,000 forgivable loan.

*Cleveland Museum of Art’s home purchase program is a $15,000 forgivable loan.

The GCL home purchase program for working households (households whose annual income is

$150,000 or less) is a $10,000 forgivable loan that can be used for down payment and/or closing

costs associated with the purchase of an owner-occupied residential property in the GCL Area. The

GCL loan will be forgiven if the employee (full time or part time with 2 years of service) continues

to work for their employer and continues to occupy the residence for 60 months (five years) after the

GCL loan has closed. All GCL loans will be secured and will carry an interest rate of 0%.

A full time employee or part time employee with 2 years of service at a qualified nonprofit in the

GCL area including Greater University Circle non-profit institutions and Louis Stokes Cleveland VA

Medical Center (does not include Cleveland Clinic, University Hospitals, Case Western Reserve

University, Cleveland Museum of Art, and Judson at University Circle) qualify. Please view

guidelines to determine nonprofits here.

The GCL home repair program provides up to $8,000 in matching funds for approved exterior

renovations. These renovations must be approved in advance. Funds will be released once

renovations have been completed. The program is open only to employees of Cleveland Clinic,

University Hospitals, Case Western Reserve University and Cleveland Museum of Art. Eligibility

guidelines for the home repair program can be found here.

The GCL Rental Program provides one month’s rental payment up to $1,400 for employees who

execute a one year lease to live in the GCL area in pre-approved rental units. This rental program is

open to employees of Cleveland Clinic, University Hospitals, Case Western Reserve University and

Cleveland Museum of Art. Eligibility guidelines for the rental assistance program can be found here.

18

Exhibit B-2

Zoning for Development Site

19

Exhibit C

Escrow Draw Requirements

To: ____________ Title Agency, Inc. ADDRESS 1

ADDRESS 2 Cleveland, Ohio _______ Attn: _______________ Ph: _________________

Date: ________________ Escrow No.: _____________ Dear ___________, This escrow instruction letter (the "Instructions") will implement the terms and conditions of a Project Agreement for Acquisition, Disposition and Private Redevelopment of Property dated ____________________ by and between the City of Cleveland (“City”) and _________________________ (“Developer”) (the "Project Agreement"). Your standard conditions of acceptance, that are to be attached to and made a part of these Instructions, will supplement these Instructions and the Project Agreement to the extent those conditions are consistent with those instruments.

Under the Project Agreement, the City is conveying to Developer fee simple title to certain real property, more particularly described in Exhibit A of the Project Agreement (the “Property”). I have enclosed a copy of the Project Agreement along with these Instructions.

The City and Developer are parties to the Project Agreement, under which

Developer has agreed to timely commence, prosecute, and complete or cause to be commenced, prosecuted, or completed the construction of certain improvements on the Property on or before the dates provided in the Project Agreement.

Developer has agreed to deposit with ___________ Title Agency, Inc. (the

"Escrow Agent"), upon conveyance of the Property from City to Developer, a limited warranty deed for its rights in the Property naming the City as grantee, to facilitate reconveyance of the Property to the City in the event Developer fails to timely commence, prosecute and/or complete the construction of the improvements as provided in the Project Agreement.

Escrow Agent has agreed to hold the limited warranty deed in escrow subject to

the terms and conditions in these Instructions.

20

SECTION 1 LIMITED WARRANTY DEED.

Escrow Agent acknowledges receipt of an executed limited warranty deed

for the Property from Developer and agrees to hold and release the deed upon the terms and conditions in these Instructions. SECTION 2 RELEASE OF DEEDS. Under the terms of the Project Agreement, Developer and the City irrevocably authorize the Escrow Agent to hold the deed deposited with the Escrow Agent in escrow until the earlier to occur of the events specified in this Section 2, when the Escrow Agent will take the action as is directed in this Section 2 with respect to the event. A. Developer’s Default Under the Project Agreement. In the event the City

provides written notice to Developer and the Escrow Agent of Developer’s default under the Project Agreement, the City may, at any time after the notice is provided, under Section 2 of the Project Agreement, revest title to the Property in the City. Under Section 2 of the Project Agreement the Escrow Agent will cause the limited warranty deed for the Property to be filed for record in the Cuyahoga County Recorder’s office and then to be delivered to the City.

B. Completion of Construction. Upon receipt by the Escrow Agent of the City’s Certificate of Completion issued under Section 2 of the Project Agreement, stating that construction has been completed for purposes of the Project Agreement, the Escrow Agent will release to Developer the deed for the Property.

SECTION 3 ESCROW AGENT’S OBLIGATIONS AND LIABILITY. The Escrow Agent will have no right or obligation to question the accuracy of any notice received by it under Section 2 and it will have no right or obligation to question the authenticity of the signatures on the notice or the incumbency of any person signing the notice on behalf of the City or Developer. The Escrow Agent will be free from liability to the City and Developer in acting under the terms contained in these Instructions, regardless of any protest, claim, or contrary demand made by the City or Developer, or any other person or entity, unless resulting from the willful acts or gross negligence of Escrow Agent.

21

SECTION 4 MISCELLANEOUS A. Definitions. Unless defined in these Instructions, all capitalized

terms used in these Instructions have the meanings ascribed to them in the Project Agreement.

B. Successors and Assigns. These Instructions will be binding upon

and inure to the benefit of the City and Developer, their respective successors and assigns.

C. No Recording. The City and Developer agree that these

Instructions will not be filed for record. D. Amendments. These Instructions may only be amended by a

written instrument signed by the City and Developer.

E. Notices. Any notice or communication required or permitted to be given under these Instructions by any party to the other will be deemed sufficiently given if delivered personally or mailed by U.S. Certified Mail, postage prepaid, addressed as follows: To the City: Director of Community Development City of Cleveland Room 320. City Hall 601 Lakeside Avenue Cleveland, Ohio 44114

(216) 664-4000

With a copy to: Director of Law City of Cleveland Room 106, City Hall 601 Lakeside Avenue Cleveland, Ohio 44114 (216) 664-2800

To Developer:

22

To Escrow Agent:

The City, Developer, and Escrow Agent may change their addresses for

notice purposes by written notice of the change to the others. F. Governing Law. These Instructions will be governed by and construed in

accordance with the laws of the State of Ohio. Very truly yours, __________________ Developer

Very truly yours, __________________ Assistant Director of Law City of Cleveland

These instructions are received and accepted by:

____________ TITLE AGENCY, INC. By: ____________________________ Title: ____________________________

23

Exhibit D

Minimum Materials and Design Standards

Plumbing

Flexible tubing water distribution with manifold

Water saving lavatory faucets

Waterline to icemaker

Stainless steel kitchen sink 8 inches deep

50 gallon water heater with pressure release valve

Exterior freeze-proof faucets front and back

Electrical

200 amp electric service

4 recessed lights in kitchen area

Coach light at front door

GFI electric outlet at front and back

Front door bell

Electric smoke detectors with battery back-up

Carbon monoxide detectors

Three phone or cable jacks

GFI electric outlet in garage

Dimmer switch on overhead fixture in dining area

Wire for space saver microwave

Exhaust fans in all bathrooms

Insulation

R-19 Wall

R-40 Ceilings blown in (unless attic is insulated)

House wrap with caulk and sealant

If no basement, insulated attic space to be provided with at least partial (minimum 50% of attic) floor and pull down ladder

Heating and Cooling

95% High Efficiency Gas furnace

14 SEER Air conditioner

Energy Saving programmable smart thermostat

Basement (if included)

8 inch solid concrete steel reinforced walls or 8 inch concrete masonry unit

30 year transferrable basement waterproof warranty with R-5 basement insulation

2 glass Block windows with vents

Interior and Exterior perimeter drain tile

Exterior

24

OSB roof sheathing with clips

30 year dimensional shingles

Shingle over type continuous ridge vent

Vinyl siding with lifetime warranty

Vinyl ventilated soffit with aluminum fascia

Seamless aluminum gutters and downspouts

Maintenance free vinyl shutters on front of home, if shutters are to be used

2 x 6 for all exterior walls; 16 in on center

Treated Sill Plate

Double top plate on all interior and exterior walls

3/4 in tongue and groove OSB subflooring nailed and glued to floor joists

2 x 10 header material on all bearing walls

2 x 6 fascia material

2 x 10 floor joists, 16 in on center

All OSB exterior sheathing (no foam boards)

House wrap on all exterior walls

Utility hookups for washer and dryer

Exterior vent for dryer

Interior

Ceilings maximum 24 in on center framing

All load bearing walls 16 in on center

2 x 4 for all interior and garage walls, 16 inch on center

Full 8 foot standard ceiling height

1/2 inch drywall screwed and glued on all walls

Low VOC paint throughout house

Hollow core interior doors throughout

Master bedroom with walk-in closet & master bath

Minimum 3 bedrooms; 1.5 bathrooms

First or second floor laundry desired

Door stops at all doors

Vinyl coated shelving in all closets, pantries and linen closets

Satin nickel finish hardware with privacy locks throughout

All interior doors are trimmed with painted casing and windows have drywall returns with window sills

painted trim throughout the home

Windows and Doors

Low E maintenance free double hung vinyl windows

Screens for all operable windows

Fiberglass insulated entrance doors (not steel)

All entrance doors are keyed alike

Deadbolts on all exterior doors

25

Flooring

Wall to Wall Quality carpet with padding

Vinyl Flooring with shoe moulding

1/4 inch underlayment beneath vinyl flooring

Garage

Fully dry walled

Walls painted

Insulated garage door

Garage door opener with two transmitters

Install concrete Driveway

Warranty

10 year insured structural warranty- transferrable

Other

Pre-move in cleaning

Removal of construction debris

Replace damaged sidewalks

Kitchen

Quality cabinets with hidden hinges and hardware

Toe kick under cabinets is wood

Laminate countertops with backsplash (if homeowner is pre-identified and pre-approved, may upgrade countertops for an additional cost)

Roll out shelves on lower cabinets

Bathrooms

One piece fiberglass tub/shower unit with grab bar

Quality vanities in all bathrooms- no pedestal sinks

Quartz vanity countertops with under mount china lavatory sinks

Mirrors above vanities- 36 in high

26

Exhibit E

Summary of Key Planning Initiatives

MyGlenville Neighborhood Masterplan

The myGlenville Neighborhood Masterplan has been adopted and will serve as the update to the

existing Superior Five Mixed Use development plan adopted by the Cleveland Planning Commission

in 2008. More information on the myGlenville plan can be found here.

Connecting Cleveland 2020:

The Proposed development should also be consistent with three key development pillars: Health,

Equity, and Sustainability. In addition, the development proposal should relate to the housing and

retail goals outlined in the City of Cleveland’s Comprehensive Plan Connecting Cleveland 2020.

More information on Connecting Cleveland 2020 can be found here.

Thrive 105-93:

The Cleveland City Planning Commission was awarded a Federal TIGER planning grant to examine

the East 93rd/East 105th Street Corridor. This effort is part of the Mayor’s larger Neighborhood

Transformation Initiative (NTI) which identifies target areas along several key commercial corridors.

The East 105th and Superior section is flanked to the east by the Circle North neighborhood. The

successful proposal will contain the appropriate density that will encourage increased transit use and

provide residents with mode choices in close proximity to where they live. The number 10 bus line is

a major north-south bus line and is one of the busiest routes in RTA's fleet. The intersections along

the corridor have significant transfer activity along the routes. The plan identifies ways in which

communities along route #10 can work together to attract new investment and foster a renewed spirit

of entrepreneurship all while emphasizing their neighborhood's unique citizens, attributes, and

history. More information on Thrive 105-93 can be found here.

27

Exhibit F

Sample Community Benefits Agreement

Project

Community Benefits Agreement

The project involves community stakeholders in the project design, planning, and construction

process. The project ownership entity, is Developer. The following actions are being taken by

Developer:

1. Cleveland Municipal School District Student Involvement-

Before the School Year ends, Developer shall interview and select at least two students for a

summer internship for each summer where the project is underway.

Developer will include Cleveland Municipal School District students that are interested in

development, architecture and engineering as project interns. This would provide students a

hands-on learning experience like no other. The students would be able to shadow personnel,

attend project meetings and be a part of the design process for a transformational project in

Glenville and the City of Cleveland. The developer’s office will provide internships to students.

Developer will also provide for internships at the project level and encourage subcontractors to

engage young students to participate in various construction trades. The students will have the

opportunities to shadow key management and construction personnel. At least two CMSD Max

Hayes students will be selected to shadow management and construction personnel.

2. Youth Employment-

Developer will work with the City, CMSD, Famicos Foundation and other organizations to make

employment opportunities available for Cleveland Youth (aged 16-25) for construction and other

employment opportunities on this project. Developer will attempt to employ youth in 10% of

construction jobs.

3. Chapter 187 of the City’s Codified Ordinances-

If more than $50,000 of City assistance is provided to a project, Developer shall meet the

conditions of Chapter 187. Developer will work with any uncertified MBE, FBE or CSB’s to get

them certified and will make sure that all information is entered into the City’s software tracking

system.

If no City assistance is awarded to project, Developer shall make best efforts to meet the City’s

goals of 15% minority subcontracting, 8% certified Small Business subcontracting, and 7%

Female Business subcontracting.

28

4. Chapter 188 of the City’s Codified Ordinances-

If City provides $100,000 or more to a project, Developer will meet the conditions of Chapter

188. Developer will make sure that all information is entered into the City’s software tracking

system.

If no City assistance is awarded to project, Developer shall make best efforts to meet the City’s

goals of hiring Cleveland residents and low-income Cleveland residents. Under Chapter 188,

City requires 20% of construction hours to be completed by City residents, of which 4% of those

hours to be completed by low-income residents. Note: Any resident hired under this provision

will be counted towards the Cleveland resident requirement for a 5 year period, regardless of

increases in income, per Codified Ordinance 188.01 (f), as long as they remain employed by the

same contractor and remain a City resident.

5. Sustainable Business Practices-

Developer will meet all the requirements of the Residential Tax Abatement, including following

the Cleveland Green Housing Handbook.

6. Hiring-

Developer will execute a Workforce Development Agreement with the City of Cleveland as part

of the Economic Development Agreement, if applicable. Ohio Means Jobs will be a valuable

resource for the project’s tenants to hire qualified employees.

Developer agrees to these Community Benefits as part of the project.

Developer

By: Authorized Signator, Title Date

29

Exhibit G

Gap Chart

To be considered for additional down payment assistance funding and as part of the evaluation for

selection, please enter the square footage for each model house, the price per square foot, whether

there is a basement and the expected appraised value for the home, based on your understanding of

the market. Assume the client will put down at least 3% of the sales price. We have indicated the

amounts of down payment assistance available through Greater Circle Living. The amount of

mortgage available for these homes is up to 125% of appraised value. Subtract the down payments

and available financing to determine if there may be a gap that would require additional City of

Cleveland down payment assistance. The City of Cleveland will weigh this information as part of

the evaluation of proposals.

Model Home 1

House Size in SF

Price Per Square Foot

Basement Yes ____ No ____

Expected Appraised Value (Market Conditions)

Expected Sales price

Less: Client Down payment at minimum 3% $ - $ - $ - $ -

Less: Down Payment

Assistance Level: Greater Circle

Living $ 5,000.00 $ 10,000.00 $ 20,000.00 $ 30,000.00

Total to be financed $ $ $ $

Less: Mortgage Loan at up to 125% of Appraised Value $ - $ - $ - $ -

Additional Down Payment Needed (if any)

30

Model Home 2

House Size in SF

Price Per Square Foot

Basement Yes ____ No ____

Expected Appraised Value (Market Conditions)

Expected Sales price

Less: Client Down payment at minimum 3% $ - $ - $ - $ -

Less: Down Payment

Assistance Level: Greater Circle

Living $ 5,000.00 $ 10,000.00 $ 20,000.00 $ 30,000.00

Total to be financed $ $ $ $

Less: Mortgage Loan at up to 125% of Appraised Value $ - $ - $ - $ -

Additional Down Payment Needed (if any)

Model Home

3

House Size in SF

Price Per Square Foot

Basement Yes ____ No ____

Expected Appraised Value (Market

31

Conditions)

Expected Sales price

Less: Client Down payment at minimum 3% $ - $ - $ - $ -

Less: Down Payment

Assistance Level: Greater Circle

Living $ 5,000.00 $ 10,000.00 $ 20,000.00 $ 30,000.00

Total to be financed $ $ $ $

Less: Mortgage Loan at up to 125% of Appraised Value $ - $ - $ - $ -

Additional Down Payment Needed (if any)

32

Exhibit H

High Loan to Value Mortgages Available for Homes in the Mayor’s Neighborhood

Transformation Initiative (MNTI) Area

Two banks, Huntington Bank and Key Bank, have agreed to provide High Loan to Value

Mortgages in a special program for homes developed under the MNTI. The first neighborhood

targeted through the program is the Circle North neighborhood. Developers who are selected

through the City’s RFP’s will provide information on their home models, and the City and other

non-profit partners will work to find and pre-approve buyers for the homes.

In the past, when appraised values were artificially low due to appraisal rules, developers and

home builders sought subsidies to “write down” the price of the home to the appraised values.

Unfortunately, this only perpetuated the problem. The new model that will be used here is that

strong buyers, seeking to live near the amenities of University Circle in the Glenville Circle

North neighborhood, will be able to get a home mortgage for up to 125% of the appraised value.

They will also be eligible for down payment assistance from a couple of available programs.

Demand is evident in the area. Recent homes that were built and sold at E. 83rd

Street and

Chester Avenue were appraised for $300,000 and sold for around $290,000. Although these

homes and many homes built and sold in University Circle are just outside of the 1 mile radius

for appraisers, the sale of these homes tells us that demand is there.

It is anticipated that once a few houses are sold in the target neighborhood, the appraised values

in the area will increase (that’s why 125% first mortgages are important to this initiative). We

believe this will drive additional investment in the area by contractors/developers who will buy

vacant homes and rehab them. These efforts will also help rebuild wealth for residents in the

area who saw their home values drop due to the foreclosure crisis and for whom there has been

little recovery. For most people, the purchase of a home is the best way to build wealth. This

program will help restore that wealth.

It is envisioned that the High LTV loans will work as illustrated in this example with some

sample price points:

Single Family New Construction RFP

House Price

Point #1

House Price

Point #2

House Price

Point #3

House Price

Point #4

Sales Price 165,000$ 200,000$ 250,000$ 300,000$

Appraised Value 115,500$ 140,000$ 175,000$ 210,000$

Sources 15$ 7$ 4$

First Mortgage (125% LTV) 144,375$ 175,000$ 218,750$ 262,500$

Client Downpayment (Minimum 5%) 8,250$ 10,000$ 12,500$ 15,000$

Greater Circle Living Downpayment* 6,188$ 7,500$ 9,375$ 11,250$

City of Cleveland Downpayment** 6,188$ 7,500$ 9,375$ 11,250$

165,000$ 200,000$ 250,000$ 300,000$