philadelphia navy yard request for qualifications · map: overview existing parks historic core...

PHILADELPHIA NAVY YARD REQUEST FOR QUALIFICATIONS

September 27, 2019

REQUEST FOR QUALIFICATIONS (RFQ) 2

CONTENTS

EXECUTIVE SUMMARY 3

THE OPPORTUNITY 8

SUBMISSION PROCESS 23

APPENDICES 32


1.EXECUTIVE SUMMARY


1. Executive Summary

PIDC, Philadelphia’s public-private economic development corporation and master developer of the Philadelphia Navy Yard, is seeking qualifications and expressions of interest from experienced commercial and mixed-use developers interested in planning, delivering, and managing extraordinary office, R&D, and mixed-use residential buildings while shaping a community where companies and their employees thrive. We are seeking qualifications from prospective partners—developers or end-users—interested in developing within two distinct districts of the Navy Yard. Since acquiring the 1,200-acre site from the federal government in 2000, PIDC has been the master developer and site operator of the Navy Yard on behalf of the Philadelphia Authority for Industrial Development (PAID). PIDC’s mission—to spur investment, support business growth, and facilitate

developments that create jobs, revitalize neighborhoods, and drive growth to every corner of Philadelphia—informs our strategy for the Navy Yard, where we are focused on building a cohesive community that fosters employment, innovation, and production. POLITICO has called the Navy Yard “the coolest shipyard in America” and many industry observers, including the Urban Land Institute, have recognized the community as a leading model for repurposing military assets for a diversified modern economy. Home to reimagined historic facilities as

well as new high-performance and energy-efficient construction, the Navy Yard has a variety of flexible buildings with different heights, vintages, and floorplates, powered by a nationally-recognized microgrid and oriented around iconic parks, complete streets, and a riverfront greenway.

“the coolest shipyard in America”POLITICO Magazine



Today, the Navy Yard is a growing community of nearly 15,000 employees and 170 employers who occupy 7.5 million square feet across a mix of property types, including office, retail, industrial, hospitality, R&D, and institutional. These employers include the Urban Outfitters headquarters; GSK’s North American headquarters; Jefferson Health; life science and technology startups; manufacturers; corporate R&D, including Axalta’s Global Innovation Center; critical U.S. Navy engineering centers; and a graduate engineering, business, and research campus for Penn State University. In recent years, the Navy Yard’s total employment has steadily expanded by approximately 1,000 new employees per year.

The Navy Yard’s resurgence tracks Philadelphia’s citywide resurgence. Simply put, people, jobs, and investment are increasingly moving to Philadelphia. Philadelphia has experienced 12 years of consecutive population growth, 30-year record levels of employment, and a job growth rate in excess of the national average and that of peer cities. Much of the city’s and region’s recent economic growth has been driven by

a strong base of over 100 colleges, universities, trade, and specialty schools, and the ability to attract and retain highly-educated millennial residents since the Recession. The life sciences sector has traditionally been an important local driver, but in recent years, the city and region have emerged more specifically as a

global hub for gene and cell therapy, with local hospitals and research institutions spinning out startups (including the recipients of the first-ever FDA-approved cell and gene therapies) as well as attracting established names in the burgeoning industry. Roche’s planned $5 billion acquisition of Spark Therapeutics and Amicus’s decision to locate their R&D Center of Excellence to Philadelphia are validations of this strength. In June, publicly-traded Iovance Biotherapeutics, based in San Carlos, California, broke ground on a $125 million, 136,000-square-foot office and cell therapy production facility at the Navy Yard after conducting an extensive national search. Iovance chose the Navy Yard for its access to talent, their ability to build a customized space, and Philadelphia’s unmatched immunotherapy R&D ecosystem.

Philadelphia has experienced 12 years of consecutive population growth, 30-year record levels of employment, and a job growth rate in excess of the national average.



The Navy Yard has a clear market advantage for employers seeking access to a strong talent base; a central location in the region with great highway, transit, and airport access; a historic, walkable riverfront community; and customizable buildings that can support office, research, laboratories, and production.

PIDC is seeking new partners that will sustain the Navy Yard’s growth and momentum as a place where R&D and life sciences facilities thrive and where dense multifamily development helps support street-level activity and commercial amenities. We will consider submissions from real estate developers and from end-users; we have previously executed both types of transactions at the Navy Yard. From these submissions, we will create a shortlist of highly-attractive prospective partners who we will invite to submit more detailed proposals in an RFP stage.

We are offering exclusive development rights within two distinct districts totaling approximately 109 acres. We will consider a single developer relationship or multiple relationships.

• First, the Historic Core District, in the heart of the Navy Yard, totals 12 acres and includes both historic multi-story loft warehouses ripe for adaptive reuse and clear sites for new development; this area is intended to be the Navy Yard’s “downtown” and is expected to include multifamily rental buildings with ground-floor commercial amenities, restaurants, and street activity.

• The second is the Mustin District, 97 contiguous acres of land that will allow the Navy Yard to sustain its growth as a premier hub for R&D, life sciences, and other commercial facilities, building upon the momentum of the Navy Yard’s Corporate Center, which was successful developed in partnership with Liberty Property Trust and Synterra Partners. This district also includes a quarter-mile stretch of riverfront ideal for mixed-use development.

Thank you for your interest. We are proud of all that we and our partners have accomplished at the Navy Yard, including its strong momentum, and we are thrilled for the Navy Yard’s next chapter of talent, innovation, and community.

MUSTIN DISTRICT

HISTORIC CORE DISTRICT



SCHEDULE FOR RFQ

Task Date

Release RFQ Friday, September 27, 2019

Navy Yard tours (voluntary) Week of October 14, 2019

Questions from respondents due Friday, October 25, 2019

Answers from PIDC posted Up to Wednesday, November 6, 2019

Qualifications submissions due (electronic and hard copies) Friday, November 22, 2019

More submission information is included in Section 3. Submission Process, pages 23-31


OPPORTUNITY2.


2. Opportunity

STRATEGIC VISIONPIDC’s mission—to spur investment, support business growth, and foster developments that create jobs, revitalize neighborhoods, and drive growth to every corner of Philadelphia—steers our strategy at the Navy Yard. The Navy Yard is intended to be, first and foremost, a cohesive community where companies and their employees thrive. In addition, the following priorities guide our work and serve as goals for future development partnerships at the Navy Yard:

• Increase employment at the Navy Yard through steady and recurrent new development;

• Grow the Navy Yard’s commercial, R&D, and life sciences base through strategic business development and the creation of high-quality facilities, expanding upon the successes of the Navy Yard Corporate Center, developed by Liberty Property Trust and Synterra Partners;

• Increase taxes and economic growth within the City of Philadelphia;

• Expand the Navy Yard’s portfolio of exceptional, high-performance buildings that constitute a collection of some of Philadelphia’s best new architecture;

• Honor the Navy Yard’s history, historic building stock, and heritage trees;

A rendering depicting PIDC’s vision for an active, appealing riverfront at the Navy Yard


2. Opportunity

• Create a system of streets, parks, plazas, and open spaces that encourage people to spend more time outdoors, together;

• Build “third places” that include food & beverage operations and services useful for employees, residents, and visitors, fostering collaboration and community;

• Develop adaptable infrastructure and buildings that anticipate and can adapt to future changes in transportation, workstyles, and climate;

• Contribute to a managed public realm that will attract, develop, and retain talent;

• Orient workplaces for multimodal commuting by considering current and future bus stops, bike infrastructure, pedestrian safety, parking demand management solutions;

• Contribute to the adaptation and integration of smart-city systems and technology;

• Include diverse and inclusive development teams and diverse equity participation;

• Maximize private investment, optimize public investment, and minimize public risk; and

• Update the existing master plan to guide the Navy Yard’s next era of growth in collaboration with multiple partners.

A rendering depicting PIDC’s vision for the Historic Core that integrates historic buildings and new construction to create a welcoming and walkable “downtown” at the Navy Yard


2. Opportunity

MAP: OVERVIEW

EXISTING PARKS HISTORIC CORE(DEVELOPMENT DISTRICT)

MUSTIN(DEVELOPMENT DISTRICT)

STADIUM AREAFDR PARK

DELAWARE RIVER

BR

OA

D STR

EET

95

95

US NAVY R&D

PHILLY SHIPYARD

URBAN OUTFITTERS

US NAVY R&D

CORPORATE CENTER R&D AND LIFE

SCIENCES CLUSTER

CORPORATE CENTER OFFICE CLUSTER


2. Opportunity

THE NAVY YARD ADVANTAGE: LOCATION, TALENT, CUSTOM WORKPLACES, & COMMUNITY

Location and AccessibilityThe Navy Yard is centrally located, with easy highway, airport, and mass transit connectivity for people and products.

• At the center of the Greater Philadelphia region, home to 6.1 million residents and 2.9 million jobs, and the edge of the city with easy access to Interstates 95 and 76.

• Less than two hours from Washington, D.C., and New York City on Amtrak.

• Directly adjacent to Philadelphia’s international airport and port.

• Less than 15 minutes from Center City, University City, and 30th Street Station.

• PIDC operates a growing employer-funded rapid shuttle service with two routes, connecting directly into the regional transit system – to the terminus of the Broad Street Line subway, half a mile from the Navy Yard, and to Center City at Jefferson Station. The service provides 1,700 daily rides.

Located 3.5 miles south of City Hall at the foot of the historic Broad Street axis, the Navy Yard is situated at the center of the region, at the southwestern tip of Philadelphia, minutes away from downtown Philadelphia and adjacent to I-95 and I-76

CENTER CITY

BR

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2. Opportunity

76

95

NRG STATION

MAP: TRANSIT AND ACCESS

7 MIN TOPHILADELPHIA

INTERNATIONAL AIRPORT

SEPTA BROAD STREET LINE (SUBWAY)

INDEGO BIKE STATIONNAVY YARD NRG STATION LOOP SHUTTLE (BUS)

NAVY YARD CENTER CITY SHUTTLE (BUS)

10 MIN TOCENTER CITY

PHILADELPHIAREGIONAL RAIL

12 MIN TO30TH STREET

STATIONAMTRAK AND

REGIONAL RAIL


2. Opportunity

TalentThe Navy Yard provides companies with access to a large, growing, and dynamic workforce.

• Three million people live within 15 miles of the Navy Yard.

• Philadelphia has seen the largest percentage gain in highly-educated people since the Recession of any top-25 city in the U.S.: since 2008, the population of city residents with a bachelor’s degree or greater rose 56 percent. In real terms, this is an increase of more than 108,000 highly-educated people.

• Philadelphia is first among large U.S. cities in its growth of persons aged 20-34: this segment has grown more than 40 percent since the Recession. This is due both to growing in-migration to Philadelphia from other knowledge centers and a higher retention rate of graduates from local colleges and universities.

• Campus Philly’s latest survey reveals that two-thirds of local college students want to stay in the city, and with more than 100,000 degrees awarded annually within the region, this ensures a robust pipeline of potential workers, even in this sustained economic cycle where talent shortages in some parts of the country are forcing companies to slow or pause expansion plans as they struggle to find talent.

• The city’s affordable cost of living—significantly less than New York City, Washington D.C., San Francisco, or Boston—ensures that companies have access to a diverse workforce and can attract and retain both PhDs and lab technicians.

Philadelphia’s Millennial population spiked coming out of the recession, increasing by 135,000 over the past decade This age group has fueled Center City’s booming population: in the core, 20-34 year-olds make up 45 percent of the population, and 37 percent of the extended Center City population

Source: JLL Research, U.S. Census Bureau

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Philadelphia’s Millennial population spiked coming out of the recession, increasing by 135,000 over the past decade

This age group has fueled Center City’s booming population: in the core, 20-34 year-olds make up 45 percent of the population, and 37 percent of the extended Center City population


Philadelphia has grown its highly educated population at the fastest rate among cities in the 25 largest metro areas (55.9%) On a count basis, Philly had the 5th largest gain (108,539), far outpacing competitor markets

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On a count basis, Philly has had the fifth largest gain (108,539), far outpacing competitor markets



2. Opportunity

Custom WorkplacesCompanies at the Navy Yard can create customizable workplaces, often with larger footprints, reflecting company culture and values or facilitating a specific production process for users in R&D, life sciences, and engineering, that might not fit within an existing urban street grid.

AxaltaTo create highly flexible environments that facilitate team interaction, Axalta, a leading global supplier of liquid and powder coatings, opened its Global Innovation Center at the Navy Yard. Its 175,000-square foot building includes specialty labs, production space, and office space; its large floorplate allows these uses to blend into a central hub for Axalta’s global research, product development, and technology initiatives to create and deliver the most innovative coatings while attracting and retaining talent.

Axalta

R&D AT THE NAVY YARD

Engineering-based R&DMuch of the Navy Yard’s success has been with a strong core of R&D facilities. For example, Axalta, a leading global supplier of liquid and powder coatings, runs the largest coatings R&D center in the world at the Navy Yard. The U.S. Navy’s R&D facilities support thousands of jobs, as well. The Naval Surface Warfare Center provides the Navy’s primary technical expertise and facilities for both naval machinery R&D and naval machinery lifecycle engineering. The Naval Foundry and Propeller Center provides design, engineering, manufacturing, and repair of propellers for all types of surface and sub-surface craft of the U.S. Navy and its customers. The U.S. Navy has further contributed to a rich ecosystem by bringing dozens of defense contractors to the Navy Yard, where they are valued tenants and community members.

Life Sciences R&D and ProductionWhile the Navy Yard supports a diverse ecosystem of companies across all industry classifications, it has emerged as one of the region’s premier life sciences hubs. WuXi AppTec, a Chinese pharmaceutical and biotechnology company, was an early believer in the Navy Yard’s locational, talent, and tax advantages, occupying its first building in 2004. In the 15 years since, WuXi has expanded across four buildings as other major companies have set up shop as its neighbors: GSK developed its North American headquarters at 5 Crescent Drive in 2013, and Adaptimmune, a leader in T-cell therapy and part of Greater Philadelphia’s gene and cell therapy ecosystem, opened its U.S. headquarters and clinical operations in 2017. A year later, its Navy Yard facility manufactured the first SPEAR (Specific Peptide Enhance Affinity Receptor) T-cells intended to target and destroy cancers. Clinical trials are underway. In 2021, Iovance will open its cutting-edge manufacturing facility right across the street, which will produce cancer immunotherapies based on tumor-infiltrating lymphocyte (TIL) technology.

These larger companies have created a rich life sciences ecosystem by attracting smaller, growing firms as well as incubator and venture capital firms. Coriell Life Sciences (CLS), a commercial venture of the world-renowned non-profit Coriell Institute for Medical Research, offers genetic interpretation and reporting services. In an adjacent building, Ben Franklin Technology Partners, a funder, incubator, and technical assistance program provider, operates its Southeastern Pennsylvania office. In addition, several clinical operations have flourished at the Navy Yard, including Jefferson Health’s multidisciplinary adult health and wellness center and surgical center and Vincera Institute’s surgical and rehab center.

WuXi AppTecWuXi AppTec, a contract pharmaceutical, biotechnology, and medical device technology company, employs 600 people in three buildings totaling 225,000 square feet (with a fourth, 95,000-square-foot facility currently under construction) with the ability to be a single-source for process development, clinical and commercial cGMP manufacturing, and analytical testing to support the rapidly growing cell and gene therapy industry’s unique requirements.


2. Opportunity

Urban OutfittersUrban Outfitters, Inc., the parent company of brands such as Urban Outfitters, Anthropologie, and Free People, operates its headquarters across 550,000 square feet of rehabilitated shipbuilding facilities as an expression of the company’s brand identity, aesthetic sensibility, and corporate culture—and to compete for talent with Paris, London, New York, and Los Angeles.

GSKGSK’s expansive light-filled 208,000-square-foot headquarters is an agile workplace where workers do not have assigned seats; they have many different choices about working where they are comfortable—in a small room, at a shared table, in the atrium, on the green rooftop, or at the coffee bar.

FS Investments FS Investments created a workplace that reflects their corporate commitment to wellness; they chose to locate their 80,000-square-foot headquarters adjacent to Central Green so that the areas where their employees gather, work, and exercise are both indoors and outdoors.

The flexibility of the Navy Yard has allowed many employers to create appealing, efficient workplaces that reinforce company values and culture.

Urban Outfitters

GSK

FS Investments


2. Opportunity

MAP: SELECT NAVY YARD FIRMS


2. Opportunity

CommunityThe Navy Yard is a diverse, collaborative community with activities and establishments that foster engagement and enjoyment, including restaurants, parks, wellness activities, and a growing corporate social responsibility program.

• A network of new and historic public parks including Central Green—designed by James Corner Field Operations of High Line and Race Street Pier fame—a five-acre interactive park intended to be a playground for adults that features a 1/5 mile running track, restrooms, sun lawn/outdoor amphitheater, hammock grove, bocce courts, table tennis, and a TRX fitness pod; Admiral Peary Way Riverfront Greenway, a one-mile path along the Delaware River; and the Marine Parade Grounds, an eight-acre field with mature trees used for a variety of regional destination events. In 2018, the Navy Yard became a certified arboretum, complementing and enhancing the preservation and protection of trees and plant life.

• Dining options including Bar Amis, a trendy Italian bar and restaurant originated by local James Beard award-winning chef Marc Vetri; Mercer Café, a family-owned sandwich and pizza restaurant; and Shop 543, the gourmet cafeteria operated by Urban Outfitters, featuring eight different food stations that offer a rotating spread of soups, salads, sandwiches, grilled items, sushi, pizza, desserts, and a view of the USS John F. Kennedy on the Delaware River. During the spring, summer, and fall, PIDC curates Lunch Truck Lineup , a rotating schedule of Philly’s best food trucks at various locations around the Navy Yard.

• Community programming including free twice-a-week outdoor yoga classes, a weekly running club, and a professional development and lecture series.


2. Opportunity

• Events like the Navy Yard 5k, a chip-timed lunchtime 5k and health and wellness expo exclusively for employees; Navy Yard Al Fresco, a summertime food truck, live music, and artisan market; and Summer Sampling, an evening preview for one of Philly’s best beer festivals.

• A variety of large regional events, such as the finish line of the Broad Street Run, the largest 10-mile road race in the United States.

• Temporary public art installations by local and international artists.

• The Navy Yard Engagement Committee, a quarterly gathering of company representatives focused on engaging employees through unique programming and corporate social responsibility initiatives, including the adoption of local Philadelphia public school Bregy Elementary.


2. Opportunity

Current Employer CommunityOver 170 companies in a diversity of industries thrive at the Navy Yard, from cell therapy to shipbuilding, e-commerce to naval engineering, fashion to commercial baking. The largest employers include:

1. U.S. Navy – 3,500 employees

2. Urban Outfitters, Inc. – 2,500 employees

3. GSK – 1,300 employees

4. Tasty Baking Company – 800 employees

5. WuXi AppTec – 600 employees

6. RevZilla – 300 employees

7. FS Investments – 250 employees

8. Unique Industries – 250 employees

9. Rhoads Industries – 200 employees

10. Axalta – 200 employees

11. Adaptimmune – 200 employees

12. McKean Defense – 200 employees

The Navy remains an active and growing presence at the Navy Yard; their facilities include the Philadelphia Division of the Naval Surface Warfare Center, the Propeller Shop and Foundry, and the Naval Inactive Ship Maintenance Facility, which maintains the ships and aircraft carrier that are a distinctive and imposing presence along Broad Street and a key part of the Navy Yard’s visual identity. The Navy will expand its employment by 2,000 jobs over the next few years because of access to talent and strategic infrastructure. The defense industry is well-represented within the Navy Yard’s tenant base.


2. Opportunity

RIVERFRONT GREENWAYB

RO

AD

STREET

URBAN OUTFITTERS

CORPORATE CENTER OFFICE

CLUSTER

CORPORATE CENTER R&D

AND LIFE SCIENCES CLUSTER

US NAVY R&D

US NAVY R&D

Future Development

Additional site information is available in Appendix B

Historic Core District

• Amenities, residential, office in mixed-use buildings

• Adaptive reuse and new construction

• Walkable downtown

• ±12 acres

Mustin District

• Could be developed as one district or multiple districts

• Commercial, including large-footprint production facilities, R&D, and office

• Possible residential mixed-use to take advantage of riverfront and drive quality of life amenities

• New construction

• ±97 acres (1,300 LF waterfront)


2. Opportunity

Historic Core DistrictThe centrally-located Historic Core is evolving into the Navy Yard’s walkable, people-centric “downtown.” It includes several large warehouse buildings that are suitable for conversion to multifamily rental buildings with ground-floor retail as well as sites for new construction. Because the district is located in the middle of the Navy Yard, it is suitable for a concentration of retail and services that can be accessed by the entire community as well as visitors.

The opportunity to develop multifamily housing at the Navy Yard is new; PIDC recently codified a process with the Navy by which the deed restriction that has historically precluded residential development can be selectively lifted. This process can only be initiated by PIDC and its selected partners.

While the Navy Yard will always remain primarily a regional employment hub, PIDC believes that the establishment of a residential program is important in order to accelerate the establishment of restaurants, cafes, and street life. To that end, multifamily residential development must proceed in tandem with retail development, so that residents, workers, and visitors will have choices about restaurants and services, such as a convenience store, a fitness center, dry cleaning, childcare, and other appropriate commercial amenities to promote quality of life. We expect a mix of market-rate rental products with workforce housing to serve the diversity of households that Navy Yard employers support.

Mustin DistrictThe Mustin District, with its 97 acres of developable land, positions the Navy Yard to continue its growth as an R&D and life sciences hub, with the unique ability to accommodate large-format commercial build-to-suit projects. This is an opportunity to expand the Navy Yard’s Corporate Center, which is centered around Central Green Park and was developed by Liberty Property Trust and Synterra Partners. Mustin will require significant infrastructure investment but will yield fully customizable sites.

Buildings 83 and 624, both of which are available for redevelopment. More information on these properties is available in Appendix B

Mustin District includes a quarter-mile stretch of riverfront development sites, which also present the potential to create a mixed-use neighborhood along the water’s edge.


3.SUBMISSION PROCESS


3. Submission Process

SUBMISSION PROCESS

Solicitation StructureThis RFQ is the first stage of a two-part solicitation process. Responses to this RFQ should focus on the items enumerated below. Detailed descriptions of the project team consultants will not be reviewed at this stage and should be saved for the RFP submission, if applicable.

1. Stage 1 – Request for Qualifications (RFQ)

A. RFP Release: PIDC will ask shortlisted respondents to respond to a request for proposal, which is likely to require additional materials such as a preliminary development schedule, a pro forma, and a financing plan. The shortlisted respondents will be provided with a list of all required documents and the timeline for submission.

B. Selection: PIDC will negotiate a development agreement with one or more selected respondents. Each development agreement will provide exclusive development rights to a defined geography and/or product type within the Navy Yard and reflect specific land uses.

A. Submissions: Qualifications are due.

B. Interviews: Selected respondents will be asked to interview with PIDC.

C. Shortlist: PIDC will short-list respondents according to the evaluation criteria contained below.

2. Stage 2 - Request for Proposal (RFP)

SCHEDULE FOR RFQ

PIDC reserves the right to make changes to this schedule at any time at its sole discretion.

Task Date

Release RFQ Friday, September 27, 2019

Navy Yard tours (voluntary) Week of October 14, 2019

Questions from respondents due Friday, October 25, 2019

Answers from PIDC posted Up to Wednesday, November 6, 2019

Qualifications submissions due (electronic and hard copies) Friday, November 22, 2019



QUESTIONS FROM RESPONDENTSQuestions from respondents regarding this RFQ must be submitted in writing via email to [email protected] by Friday, October 25, 2019 at 12:00 pm EST.

Questions will be answered in batches, with the last batch of answers posted no later than Wednesday, November 6, 2019. The answers will be forwarded via email to all parties who registered to download the RFQ.

QUALIFICATIONS SUBMISSION

Submission DeadlineSubmissions to this RFQ must be submitted electronically at rfq.navyyard.org on or before 4:00 pm EST on Friday, November 22, 2019. In addition, five hard copies should be delivered to PIDC’s Navy Yard office by 4:00 pm.

ATTN: Navy Yard RFQ PIDC 4747 South Broad Street Building 101, Suite 120 Philadelphia, PA 19112

NO RESPONSES WILL BE ACCEPTED AFTER THE TIME AND DATE SPECIFIED ABOVE.

ModificationsPrior to the deadline, a respondent may correct, modify, or withdraw the submission. A respondent who wishes to withdraw a submission must make the request in writing to the contacts specified in “Section 2, Page 30: Contact Information” before the deadline. Any correction or modification must be submitted in writing to the contacts specified in “Section 2, Page 30: Contact Information” before the deadline.

EVALUATIONPIDC will use the following criteria (not in order of priority) in evaluating each submission:

• Qualifications, skills, and applicable experience of the principals

• Experience working in similar settings, with comparable scale, quality, and phasing, with public sector partners

• Demonstrated commitment to diversity in ownership, development, consultant, and operations teams

• Demonstration of financial capacity to complete projects of a similar size and scope

• Strength of project and financial references

mailto:[email protected]

http://rfq.navyyard.org



RFQ STRUCTURE AND FORMATThe RFQ submissions should include the information below and conform to the content and format requirements. Failure to provide all the requested information or to provide it in the requested format may result in PIDC determining that the submission is non-responsive to the requirements of the RFQ.

Each submission should be complete. The information submitted should include all information specifically requested by this RFQ, and any information not requested by this RFQ, but which may have a bearing on PIDC’s evaluation.

All submissions should be referenced and organized as set forth below.

Section Task Page Limit

1 Cover Letter 1

2 Table of Contents 1

3 Narrative Response 1 page per prompt

4 Development Team Information 3

5 Past Performance 20

6 Financial Qualifications 1 (with attachments)

7 Defaults, Bankruptcy, and Criminal Background 1

8 Conflicts of Interest 1

Respondents should write in a concise manner and select qualifications that are relevant. Respondents may provide links to websites if they believe the page limitation cannot adequately show their expertise; however, PIDC does not guarantee that the websites will be reviewed.

Section 1: Cover LetterRespondents must clearly indicate the geography in which they are interested (i.e., both districts; one of the districts (Mustin or Historic Core); or specific sites within one of the districts) as well as a point of contact for the submission.



Section 2: Table of Contents

Section 3: Narrative ResponseOpen-ended responses to each of the following prompts:

1. Describe your overall development strategy, including how you would market space and recruit users.

2. Describe your relevant experience (leaving specific project details to the Past Performance section that follows).

3. Describe your approach to achieving diverse and inclusive participation (including certified minority, women, and disabled-owned businesses) within your team.

4. Mustin District will require significant infrastructure investments but will yield fully customizable sites. Infill development in the Historic Core will benefit from existing infrastructure, but will require greater density, public realm considerations, shared parking solutions, and mixed-use programs that provide substantial commercial amenities. Describe what specific experience on past projects would inform your approach to phasing and providing the required improvements.

5. PIDC seeks partners that can create an environment that will support the Navy Yard’s continued development into a cohesive community that attracts talent, employers, residents, and visitors. Describe the land uses and quality and nature of development that you would bring to the Navy Yard. Also describe your team’s experiences in placemaking and the public realm, including how you designed, marketed, and implemented these places; if you do not have these experiences, describe how you will build a team to accomplish this core objective.

6. PIDC is seeking partners with whom to jointly create and then execute on an updated master plan. Describe your master planning experience, including any instances in which you collaborated with a public entity. Indicate whether such master plans identified opportunities for increasing the marketability and competitive positioning of the project and describe how.

Section 4: Development Team InformationA. Respondent Information

This section should introduce the respondent, including the organizational structure, firm history, key leadership, address(es) of headquarters, and any local offices within the market. Describe any joint venture, partnership, or other organizational structure, if any, which may have been developed in order to respond to this RFQ. Indicate the prime proposer entity and any secondary proposers that comprise the respondent.

PIDC and its agents intend to conduct financial and reputational background checks on respondents and service providers responding to this RFQ. Willingness to provide a release for these background checks is a prerequisite to be eligible for engagement by PIDC.

B. Organizational Chart

Provide an organizational chart and narrative description that identifies the proposed development team structure.

C. Project Staff

Summarize the qualifications of key real estate development staff that will be dedicated to this project, as well as a description of their role on this project and relevant experience. Do not submit information on external consultants, including attorneys, planners, or designers.



Section 5: Past Performance In this section, the respondent should demonstrate expertise, financial capacity, and experience in the development of relevant projects consistent with your proposed uses. Respondents should also demonstrate relevant experience in partnering with public entities.

Provide illustrative materials on three (3) projects of comparable scope initiated or completed over the past 10 years.

For each of the three past performance projects, include the following information, at a minimum:

• Name, address, location of project

• Development team members including lead developer, project architect, general contractor, lender(s), and equity provider(s)

• A reference (name, company, title, telephone number, and email address) and statement authorizing PIDC or its agents to contact the reference to respond to inquiries regarding the design, financing, and development of the project.

• Development scope

» Land area (square feet)

» Square footage of buildings (broken down by product type)

» Parking spaces and orientation (above-grade structured, surface, below grade)

» Construction type (high-rise, mid-rise, low-rise)

» Development costs (excluding land costs)

• Photographs and project renderings

• The sources and amounts of project funding

• Project timeline from initial planning to land acquisition to construction completion and lease up / sale as well as current project status

• Challenges associated with the project

• Approach in diverse and inclusive development

• Any environmental remediation or environmental conditions encountered and dealt with in the project

• A statement of how the project compares to the Philadelphia Navy Yard

If the project was a public-private partnership, provide the following information:

• Whether the project was in response to an open solicitation

• Total consideration to the government including but not limited to:

» Land value (initial proposal and final negotiated agreement): amount, methodology for establishing amount (if applicable), timing of payments

» Other public benefits: list and identify the cost of each (i.e. public parking, public facilities, etc.)



• If the project received public financial assistance, provide the following information:

» Form and structure of public financial assistance (i.e. tax-exempt bonds, below market debt, guarantees and other types of credit enhancement, grants, tax increment financing, payments in lieu of taxes, etc.)

» Amount of assistance / subsidy

» Timing of assistance—when were the funds contributed (as applicable)

» Initial proposed amount, timing, and terms

» Final negotiated amount, timing, and terms

• Satisfaction of public entity partner (where applicable, demonstrate through past performance review)

Depending upon the nature and proximity, PIDC representatives or its agents may decide to visit the referenced projects. PIDC also reserves the right to contact any other representative or professional with whom the respondent has recently conducted business in order to seek feedback on the respondent’s performance.

Section 6: Financial QualificationsThe respondent’s financial information will be kept confidential to the extent permitted by law except as may be required to defend PIDC against any legal action pertaining to this RFQ or arising out of or related to the subject agreement.

A. Historical Financials

The respondent shall submit its last three (3) annual CPA-audited financial statements (balance sheet, profit/loss statement, cash-flow statement), including all contingent liabilities. The respondent is encouraged to mark financial information “Proprietary and confidential” on each applicable page of the submission.

B. Financial References

Statements regarding the respondent’s financial creditworthiness and past development experience which can be verified, including the contact name, with title, organization, telephone, and email address of at least three (3) commercial or institutional credit references and a statement authorizing PIDC or its agent to contact each credit reference to respond to inquiries.

Section 7: Litigation, Defaults, Bankruptcy, and Criminal BackgroundList all current litigation, outstanding judgments and liens, and pending disciplinary proceedings, if any, against the firm or any member of the development team. Also include current or past litigation, if any, involving the firm and PIDC or any affiliated entity.

Provide a list of any projects on which any member of the development team or a parent company has defaulted or declared bankruptcy, and an explanation of each default or bankruptcy.

Provide detailed information regarding any criminal indictments or felony convictions of any principal, officer, director, partner, member, manager, or equivalent of any person or entity constituting a member of the development team.



Section 8: Conflicts of InterestIt is in the best interest of PIDC to select a qualified respondent with no actual or perceived conflicts of interest. Respondents are required to disclose any potential conflicts:

1. List all former, existing, or pending contractual relationships with PIDC or any of its affiliated entities, including PAID.

2. List all clients whose continued representation might be perceived to create a conflict of interest with the respondent’s engagement by PIDC and describe how the respondent would propose addressing any such conflict of interest.

3. List all employees and/or principals who are members of, or sit on, any board or committee of PIDC or any of its affiliated entities, including PAID.

4. List all professional, financial, or personal interests that create or could create the perception of a conflict of interest in connection with this engagement.

5. List all properties in the Navy Yard in which the respondent, its principals, or affiliated entities have an association (i.e., participated in design, development, financing, construction, leasing, property management, or ownership).

Please note that PIDC reserves to make the sole determination as to whether any conflicts or appearances of conflicts are present.

CONTACT INFORMATIONAll correspondence regarding this RFQ must be directed only in writing via email to [email protected]. Include “The Navy Yard - Question” in the subject line. Improperly addressed emails may not receive proper and timely attention. No phone calls, please.

CONFIDENTIALITYRespondents and any of the respondent’s agents or consultants may not make any public announcements, statements to the media, interviews, or news releases regarding this RFQ, the respondent’s submission, or any subsequent award or an agreement without the prior written approval of PIDC.

PIDC will protect the confidentiality of these submissions throughout the selection process and to the extent the law permits following the selection of partners. If the respondent believes that any particular information in the submission should be kept confidential, respondent should specifically indicate by marking any such information “Proprietary and confidential” on each applicable page of the submission. PIDC welcomes respondents to submit their historical financial statements separately; PIDC will review these separately and return them to the respondent or destroy them following review.

mailto:[email protected]



LEGAL NOTICEThis Request for Qualifications (“RFQ”) is distributed and managed by the Philadelphia Industrial Development Corporation (“PIDC”) on behalf of the Philadelphia Authority for Industrial Development (“PAID”). This RFQ invites respondents to respond and submit expressions of interest for the development of districts totaling approximately 109 acres at the Navy Yard in Philadelphia, Pennsylvania (“Property”).

The information in this RFQ is provided for background purposes only. While every effort has been made to ensure the accuracy of the information contained in this RFQ, it is not, and shall not be construed to be or constitute, a representation, warranty, or guaranty by PIDC or PAID regarding the content, completeness, or accuracy of such information, or the qualifications or expertise of the individual(s) or firm(s) providing or preparing such information.

This RFQ is not a legally binding document, but an invitation to submit expressions of interest on the terms and conditions described in this RFQ. In no event shall PIDC or PAID be responsible for any costs, expenses, or fees incurred by, or on behalf, of the respondent in connection with this RFQ. The respondent shall be solely responsible for all such costs, expenses, and fees. Neither PIDC nor PAID will pay any fees or commissions to parties acting as agents, brokers, consultants, or contractors as part of this transaction. Payments to any agents or brokers will be the responsibility of the respondent.

Acting on behalf of PAID, PIDC reserves the right, at any time, to modify the schedule and scope of this solicitation process, to terminate the RFQ process, and to reject or not consider all or any part of any submission to this RFQ for any reason or no reason. Further, after review of the submissions, PIDC reserves the right to request additional or clarifying information from any or all of the parties that respond to this RFQ.


APPENDICES4.

Appendix A: Development Framework 33

Appendix B: District Information 34

Mustin District 34

Historic Core 35

Environmental Conditions 35

Appendix C: Development Incentives 37

Appendix D: General History – The Navy Yard from 1868 to Present Day 39

History of the Philadelphia Naval Shipyard, 1868-1996 39

Prior Uses of the Development Districts 40

PIDC’s Master Development Since 2000 41


4. Appendices

APPENDIX A: DEVELOPMENT FRAMEWORKPIDC, on behalf of PAID (pidcphila.com/paid), will remain the master developer for the Navy Yard. In this role, PIDC will continue to make the fundamental decisions about land use, business marketing objectives, incentives, and development standards. PIDC will continue to collect Common Area Maintenance (CAM) from all commercial property owners at the Navy Yard and the CAM revenues will be used for the maintenance of the common infrastructure within each district, including common roads, sidewalks, access, security, and utilities.

Each development partner will play the primary role in overseeing the planning, design, financing, construction, marketing, leasing, and building management for the districts or sites for which they are selected, including site infrastructure where it does not currently exist, in close coordination with PIDC. Partners will assume operations and maintenance responsibilities for all the property developed within the districts.

PIDC expects to negotiate and execute a development agreement with each selected partner to memorialize the relationship and establish a process which will allow the partner to deliver new projects in a flexible, phased timeline by acquiring land for each district as it is developed.

Properties at the Navy Yard are subject to a set of easements, restrictions, covenants, and conditions that protect the value of each property by, among other things, defining the rights and responsibilities of PAID and each property owner, dictating permitted uses, and describing CAM. In addition, PIDC will execute and record reciprocal easement agreements with each selected partner setting forth easements for pedestrian and vehicular access and for the construction and maintenance of utilities across and through the districts.

The precise legal relationship between PIDC and any partners will be finalized during development agreement negotiations. PIDC is willing to consider both fee conveyances and land leases. The relationship is expected to provide each partner with enough flexibility to design, construct, and market each property in accordance with an overall plan approved by PIDC.

http://pidcphila.com/paid


4. Appendices

APPENDIX B: DISTRICT INFORMATION

Mustin DistrictOpportunity for new construction on 97 acres at the terminus of Rouse Boulevard and to the south and east of the Corporate Center. This district has more than 1,300 feet of frontage on the Delaware River and includes a riverfront greenway that connects this district to the Historic Core and the Urban Outfitters campus. The district will require basic infrastructure development, including demolition, site preparation, utility service, and street networks.

Any proposed residential development must be approved by PIDC and will be subject to Pennsylvania’s Voluntary Cleanup Program (known as Act 2) for potential brownfields sites, a process which PIDC may begin ahead of developer selection to decrease the risk to its future development partners.

Zoning: This district has two separate zonings. The southern portion is zoned CMX-3, a mixed-use designation that allows larger-scale commercial, retail, and residential uses with gross floor areas up to 500% of the area of a lot. The northern portion is zoned I-1, a designation intended to accommodate low-impact uses including light industrial, fabrication, offices, and research and development, with gross floor areas up to 500% of the area of a lot. The Navy Yard is subject to the Airport Hazard Control Overlay District, which applies the FAA’s requirements for Philadelphia International Airport to the City zoning code. In the Mustin District, buildings can be up to 300 feet tall or approximately 21 stories.

Existing Improvements: The Mustin District is largely a blank canvas for redevelopment. It has a few vacant buildings with little practical or aesthetic value that the developer must demolish when the area is redeveloped, including former Navy barracks buildings and a former Navy Lodge. In addition, runways and an athletic track , remnants of the defunct Henry C. Mustin Naval Air Facility, must also be removed.

CMX-3Commercial/Commercial Mixed-Use

I-IIndustrial/Industrial Mixed-Use


4. Appendices

Historic Core

Opportunity for mixed-use adaptive reuse and new construction on 12 acres spanning several existing blocks. Residential development will be subject to Pennsylvania’s Voluntary Cleanup Program (known as Act 2) for potential brownfields sites, a process which PIDC may begin ahead of developer selection to decrease the risk to its future development partners.

All residential development will be required to include active and engaging ground floor retail tenants so that the Historic Core feels like the Navy Yard’s “downtown,” serving workers, new residents, and visitors. If PIDC chooses more than one developer for this district, it will require that developers jointly create and pursue a master retail strategy to ensure the development of certain types of retail establishments and services.

Zoning: The Historic Core is zoned CMX-3, a mixed-use designation that allows larger-scale commercial, retail, and residential uses with gross floor areas up to 500% of the area of a lot. The Navy Yard is subject to the Airport Hazard Control Overlay District, which applies the FAA’s requirements for Philadelphia International Airport to the City zoning code. In the Historic Core, buildings can be up to 177 feet tall or approximately 12 stories.

Existing Improvements: The Historic Core has a fully built-out streetscape, with new utility infrastructure, bicycle lanes, and sidewalks. This district includes sites suitable for new construction as well as several existing buildings:

• Building 83 – an eight-story, 520,000-square-foot loft building built in 1919 for material storage. The dense column grids, relatively low floor to floor height, and deep floorplates present development challenges, though the character, views, and structural capacity of the floors (as high as 600 pounds per square foot), as well as recent reuse precedents across other Navy Yards and industrial areas provide the opportunity to create something iconic.

• Building 624 – an eight-story, 880,000-square-foot warehouse built in 1941, presenting similar opportunities to Building 83.

Environmental ConditionsThe Navy Yard started its life as a U.S. Navy facility in the late 1800s. The process to close the Philadelphia Naval Shipyard begin with a recommendation in 1991 by the Base Realignment and Closure Commission (BRAC) and led to the transfer of the Navy Yard from the United States of America to PAID on March 30, 2000.

Prior to the transfer of the Navy Yard, the Navy undertook a detailed process to review the environmental condition of the property that culminated in strategies to address specific areas or concerns where needed and, as is described more fully below, the United States provided an environmental warranty and

CMX-3Commercial/Commercial Mixed-Use


4. Appendices

environmental indemnity to all future owners, occupiers, and redevelopers of the transferred site. Notably, the deeds transferring the entire property from the United States to PAID includes a warranty stating that “all remedial action necessary to protect human health or the environment with respect to any such [hazardous] substances remaining on the property has been taken” before the date of transfer.

The following actions were undertaken by the Navy in advance of the transfer of the property to PAID and prior to the creation of the indemnification and warranty of the deed:

• Addressed and identified environmental concerns and documented the identification and remediation process through a series of reports which were provided to the U.S. Environmental Protection Agency (EPA), the Pennsylvania Department of Environmental Protection (PADEP), and PAID.

• Performed a records review and visual inspection to identify areas of concern. The records review also included an identification of the former and present uses of each building or area, along with any information noting whether there had been a past discharge or release of a hazardous substance at that location. During this process, the Navy also reviewed an aerial photography report prepared by the EPA’s Environmental Photographic Interpretation Center, which identified feature signatures such as stains, spills, and drum storage.

• In areas where the Navy identified a discharge or release, the Navy thereafter generally conducted sampling to determine the presence or absence of constituents of concern above screening levels, and addressed that area through active remediation (e.g., soil removal or closure of above or underground storage tanks) or a deed restriction.

Typical environmental concerns identified through this process were the locations of spills or releases and the existence of above or underground storage tanks. The remediation conducted by the Navy concluded with a formal written determination by the Navy that the property was environmentally suitable for reuse for commercial and industrial purposes. The deeds also set forth an environmental warranty and an environmental indemnity—both of which are provided by the United States—which benefit current and future property owners, occupiers, and redevelopers.

Act 2 is Pennsylvania’s voluntary remediation statute and provides redevelopers of contaminated property with limited state law environmental liability protection for pre-existing conditions. A Special Industrial Area (SIA) Agreement is one of the several procedures set forth in Act 2 by which a redeveloper can obtain this state environmental law liability protection. In 2001, PADEP agreed that PAID could enroll the entire Navy Yard into the Act 2 program, then take individual areas/parcels through the Act 2 process with a phased approach. The SIA Agreement was completed in 2002 and subsequently amended several times for the benefit of the continued development.

The most recent amendment to the SIA Agreement (Amendment #6, dated May 1, 2015) contains a streamlined process for redevelopers to secure the protections afforded by Act 2 at the Navy Yard. As part of the amendment to streamline the development process, a Development Plan and Baseline Environmental Report dated November 10, 2016 was prepared. The primary objective was to assess whether any activities have occurred at the site since the transfer from the U.S. Navy to PAID which would require further investigation to complete a Baseline Environmental Assessment. The report concluded that no new areas of concern were identified and recommended that no further investigation work was needed to ensure that the standards set forth in Act 2 are met.

Additional information will be available in the second stage of this solicitation.


4. Appendices

APPENDIX C: DEVELOPMENT INCENTIVES The entirety of the Mustin District and a portion of the Historic Core are in Keystone Opportunity Zones, which significantly reduces the tax burden on businesses through credits, waivers, and broad-based abatements of most state and local taxes for up to 10 years, through the year 2030.

In addition, PIDC, as Philadelphia’s economic development corporation, helps companies and projects in the Navy Yard access a variety of local, state, and federal financing tools, including loans and other performance-based incentives.

Keystone Opportunity Zone (KOZ): The Commonwealth of Pennsylvania created the Keystone Opportunity Zone Program in 1999 to spur investment in areas where little or no development has taken place. Since its inception, Pennsylvania and Philadelphia amended the program to designate new sites throughout the city. Keystone Opportunity Zones (KOZ) are defined, parcel-specific areas where a KOZ property owner and/or business located in a KOZ receives greatly reduced or tax-free status for qualifying companies and projects for up to 10 years.

The KOZ Program offers credits, deductions, abatements, and exemption of the following taxes for qualifying businesses and projects, which can reduce tax burden to zero:

• State Taxes: Corporate net income, capital stock & foreign franchise tax, personal income tax (partnerships & sole proprietors), sales & use tax, mutual thrift institutions tax, and insurance premiums tax.

• City Taxes: Business privilege tax, net profits tax, real estate tax, and sales and use tax including during construction.

Respondents are encouraged to consult certified public accountants to better understand how KOZ benefits will apply to any project, both in terms of the future tenants as well as tax savings during the construction period.

Navy Yard KOZ Map

Key

2024 KOZ EXPIRATION

2025 KOZ EXPIRATION


4. Appendices

10-Year Real Estate Tax Abatement: The City of Philadelphia offers several abatement and exemption programs that may reduce a property’s real estate tax bill. Abatements reduce taxes by applying credits to the amount of tax due. Currently, a 10-year abatement from real estate taxes on improvements due to rehabilitation or new construction of commercial, industrial, and any other business properties, including rental and condo residential properties is available for all non-KOZ properties or to be utilized for the remainder of the term following the KOZ expiration. For example, should new construction be completed on a parcel in 2015 which has a KOZ expiring in 2020, the 10-year tax abatement may pick up in 2020 for five years until 2025.

Keystone Innovation Zone (KIZ): The entire Navy Yard is a Keystone Innovation Zone (KIZ). The KIZ is a state-funded program with substantial economic incentives for startups located within the zone. The KIZ Tax Credit program is a key component of the Keystone Innovation Zone program and offers up to $100,000 in tradable tax credits annually to eligible companies. Eligible companies must be for-profit and in operation for less than eight years. The companies must be in the following technology sectors: Power and Energy, Nanotechnology, Advanced Materials & Manufacturing, Communications and IT, Homeland Security, Life Science.

Historic Tax Credits: All the existing buildings in the Historic Core are contributing structures in the Philadelphia Naval Shipyard Historic District, a National Register district, and thus potentially eligible for historic rehabilitation tax credits. The tax credit allows developers that rehabilitate these certified historic buildings to claim 20 percent of eligible improvement expenses against their federal tax liability. These credits may also be sold to third parties to raise equity funding for a project. In addition, these rehabilitation projects may also qualify for the Pennsylvania Historic Preservation Tax Credit which can provide state tax credits equal to 25 percent of eligible improvements.

Redevelopment Assistance Capital Project (RACP): A Commonwealth grant program administered by the Office of the Budget for the acquisition and construction of regional economic, cultural, civic, recreational, and historical improvement projects, RACP projects have a regional or multi-jurisdictional impact, and generate substantial increases or maintain current levels of employment, tax revenues, or other measures of economic activity. RACP projects are state-funded projects that cannot obtain primary funding under other state programs. PAID, as a public authority, is an eligible grantee.

Business In Our Sites (BIOS): A Commonwealth program that provides grants and loans to fund the acquisition and development of key sites for future use by businesses, private developers, and others. The program is intended to provide financial assistance to municipalities and others to plan and prepare sites—both previously utilized sites and undeveloped sites—for future use. There is no limit to the amount of loan financing that may be provided to an application. An eligible applicant that is not a private developer may require a grant and loan combination; the amount of any grant may not exceed $4 million or 40 percent of the total combined award, whichever is less.

Project-specific Financing: PIDC offers a wide range of financing tools, including capital project loans of up to $750,000 to businesses to fund acquisition, renovation, leasehold improvements, or equipment purchases; subordinate term loans; EB-5 loans of $10 million or greater; and new markets tax credits.


4. Appendices

APPENDIX D: GENERAL HISTORY – THE NAVY YARD FROM 1868 TO PRESENT DAY

History of the Philadelphia Naval Shipyard, 1868-1996Philadelphia, birthplace to American democracy, was also the first home of the U.S. Navy. In 1776, the Continental Congress leased land along Philadelphia’s Front Street docks to establish a naval shipbuilding program. The first American ships, commissioned by President George Washington, were launched from a private shipyard in Philadelphia’s Southwark neighborhood in 1797. The Navy eventually outgrew the Southwark Yard and in 1868, the City of Philadelphia conveyed League Island – now known as the Navy Yard – to the federal government for $1. By 1876 the Navy had transferred all its shipbuilding to the new Philadelphia Naval Shipyard. The Henry C. Mustin Naval Air Facility was established in 1917 at the eastern end of the district, where runways, a catapult testing facility, housing, and athletic facilities were built.

The Navy Yard boomed in the 20th century, employing nearly 50,000 people during its peak production period. During that time, 53 warships were constructed at the Navy Yard – including tank-landing ships, destroyer escorts, and the battleships New Jersey and Wisconsin – and an additional 1,218 warships were repaired. In 1970, the final ship to be fully built at the yard, the Blue Ridge, launched into the Delaware.

Left: Aerial view of the Reserve Basin of the U.S. Navy Philadelphia Naval Shipyard, 1955. Source: Naval History & Heritage Command. Right top: A 1936 pamphlet showing the layout of the Navy Yard at the time. Source: Library of Congress. Right middle: “Quarters A” or the Commandant’s Quarters, built 1874-1875. Source: Library of Congress. Right bottom: Ships at the Philadelphia Naval Shipyard, 1923. Source: Naval History & Heritage Command.


4. Appendices

Due to military resizing, the Base Realignment and Closure Commission made the decision in 1991 to cease operations. Before fully closing, the USS John F. Kennedy, which now sits outside the Urban Outfitters headquarters, received a two-year overhaul at the Navy Yard. The Philadelphia Naval Shipyard closed in September 1996.

Prior Uses of the Development Sites• 2000-2010: Obsolete buildings were demolished in anticipation of future development.

• 2000: Base Realignment and Closure (BRAC) process completed; PIDC took control of the majority of the Navy Yard.

• 1996: Philadelphia Naval Shipyard ceased to operate as a base.

• 1958: The Mustin Naval Air Facility was shuttered.

• 1945-1999: Declining productivity at the Philadelphia Naval Shipyard; accordingly, no significant construction.

• 1940-1945: During the war, masonry warehouse buildings were constructed to support shipbuilding activities on western side of the Shipyard.

• 1918-1945: Infill in this area was constructed, with the former wooden Marine barracks replaced by masonry two and three-story office and warehouse buildings to support shipbuilding activities on western side of the Shipyard.

• 1917-1945: The Henry C. Mustin Naval Air Facility was established at the eastern end of the district. Runways, a catapult testing facility, housing and athletic fields were built.

• 1875-1918: U.S. Navy began constructing masonry one to three story buildings and wooden structures in the block immediately east of Broad Street. On the northern edge, the wooden structures were barracks for Marines. Further south in this section, smaller wooden warehouses were constructed.

• 1875 and prior: Fishing island. Acquired by federal government to be new home of Philadelphia Naval Shipyard.

Left: Guns from battleships being scrapped in Philadelphia Navy Yard, 1923. Source: U.S. Naval Historical Center. Right top: Marine barracks, League Island Navy Yard, est. 1900-1910. Source: Library of Congress. Right bottom: 1891 topographic map showing League Island still separated by the back channel. Source: USGS.


4. Appendices

PIDC’s Role as Master Developer Since 2000Since 2000, PIDC has been the master developer and site manager of the Navy Yard. That year, the Philadelphia Authority for Industrial Development (PAID) acquired approximately 1,200 acres of the former Philadelphia Naval Shipyard. PAID, a public authority, is managed by PIDC, Philadelphia’s public-private economic development corporation. A non-profit founded jointly by the City of Philadelphia and the Greater Philadelphia Chamber of Commerce in 1958, PIDC’s mission is to spur investment, support business growth, and foster developments that create jobs, revitalize neighborhoods, and drive growth to every corner of Philadelphia.

As master developer for the Navy Yard, PIDC manages master planning, leasing, and maintenance of a limited portfolio of historic buildings, site management, infrastructure development and operation, utilities operation, community event planning, and structuring development transactions—in order to create a community where companies and their employees thrive.

PIDC operates a tenant-funded, publicly-accessible transit system that currently has two bus routes with direct connections to the subway station at NRG Station (half a mile from the Navy Yard) and Jefferson Station in Center City. Six buses currently operate these routes and because of shifting commuting preferences and job growth at the Navy Yard, PIDC has added one bus per year to the system to meet demand. In addition, PIDC runs the Navy Yard microgrid, one of the largest unregulated electric distribution systems in the United States.

In 2003, PIDC selected a partnership of Liberty Property Trust and Synterra Partners as commercial development partner for a limited geography within the Navy Yard through a competitive RFP process because of the significant market credibility, capital, and expertise Liberty brought to PIDC’s then-nascent redevelopment efforts. Liberty/Synterra and PIDC subsequently hired Robert A.M. Stern Architects to develop a new master plan for the Navy Yard. The 2004 master plan envisioned a mix of light industrial development, historic renovations, an office park, a research campus, and a marina district, all connected though parks reinforced by strong pedestrian connections. PIDC began by building new streets and sidewalks, updating utilities, and renovating historic buildings; Liberty/Synterra began construction of the office park and the area designated for flex and industrial buildings. In 2013, PIDC again engaged Robert A.M. Stern Architects to create an updated master plan, which more clearly defined the development of the eastern districts and the Historic Core, given the momentum created in the previous decade. The plan emphasizes sustainable design, with programs for mass transit, stormwater retention and filtering, and sustainable design standards for new construction.

Liberty/Synterra has been an outstanding partner, playing a significant role along with Urban Outfitters and others in establishing and executing on a vision that has resulted in the emergence of the Navy Yard as a thriving urban campus that has garnered national attention for design and sustainability. The partnership established the Navy Yard as a viable office submarket and resulted in the development of 1.6 million square feet of LEED certified office, flex, and industrial buildings adjacent to high-quality parks, streets, and public space, representing more than $800 million of total investment. Liberty/Synterra’s development portfolio at the Navy Yard includes companies such as FS Investments, WuXi AppTec, Adaptimmune, and Axalta. The partnership was also valuable for Liberty/Synterra; in 2018, the first sale of a Liberty/Synterra-developed building, 5 Crescent Drive, occupied by GSK, set a new per-square-foot threshold for office sales in Philadelphia according to Philadelphia Business Journal.

In 2018, Liberty Property Trust announced a new nationwide investment strategy focused solely on industrial real estate. PIDC and Liberty/Synterra are working closely on an orderly transition process as Liberty/Synterra completes its final building and sells most of its Navy Yard properties and PIDC moves forward with the selection of new development partners.

philadelphia navy yard request for qualifications · map: overview existing parks historic core...

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