Solicitation Detail - City of Springfield, MA

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17-047 - Fund Administrator for the Downtown Dining District Fund

End date: Tuesday October 4, 2016 at 2 p.m.

In an effort to strengthen the Downtown Springfield economy, the City of Springfield has invested heavily to improve the quality of the physical environment. The City has made and will continue to make significant downtown infrastructure improvements including the installation of new decorative light poles, repairing streets and sidewalks, hanging flower baskets. The City plans to continue maintaining its physical improvements in the coming years in order to provide a physical environment attractive to residents, workers, students, and visitors.

The City takes pride in the ability to provide a live-work-play environment for people of all ages. Currently, nearly $3 billion in economic activity of all types is occurring in Springfield including the $950 million MGM Springfield project, the redevelopment of historic Union Station, and the construction of a new railcar assembly plant by a Chinese company, CRRC.

Construction of MGM Springfield is designed to attract thousands to Downtown Springfield each day, to attend sporting events, concerts, and conventions. The City plans to couple this investment with a strong regional marketing campaign that aims to attract visitors to Springfield, its museums and its entertainment venues and thereby stimulate investment and business opportunities in the Downtown Dining District.

Despite Springfield’s past successes, more work needs to done to achieve the quality, density and variety of the restaurants needed in the Downtown Dining District that meets the needs of local residents and has the potential to attract new visitors. A core of quality restaurants has succeeded, and a sustained effort is underway to continue to attract new and exciting restaurants to add to that core in Downtown Springfield.

The need identified for this program is for a financing mechanism that can provide an incentive for experienced restaurateurs to upgrade or locate a quality establishment in Downtown Dining District.

As such, the city is pursuing approval from the United States Department of Housing & Urban Development (HUD) to operate a $1.5 million fund to attract restaurants into a targeted district focused on Springfield’s “Transformative Development Initiative” district, outlined in the attached information.

Downtown Dining District Fund Program Overview

Concept: With many exciting projects on the horizon in downtown Springfield including MGM Springfield, Union Station, and the Dr. Seuss Museum, the goal of this program is to re-establish a restaurant district in the core of Springfield’s downtown, focused on the Worthington and Bridge Street areas. This area is also known as the Transformative Development Initiative (TDI District).

Program: The program would target established, independent restauranteurs in a goal to add value and diversity to the restaurant climate of downtown Springfield. The fund will not target chains, fast-food, or start-up concepts. The program would provide access to capital of up to $200,000 in low-interest loan funding for restaurant fit-out and equipment. The program will target projects that will reoccupy vacant spaces in the district.

Funding Source: The City of Springfield is currently preparing to submit an application for $1.5 million in HUD Section 108 funds. This would allow a minimum of 7 new restaurant projects.

Process: An investment committee of the funders and stakeholders would be established to review and recommend projects.

SCOPE OF WORK

The responsibilities of the DDD Fund Administrator include:

I. Technical Assistance: The DDD Fund Administrator shall provide technical assistance to borrowers or applicants, as approved by the City for project planning and related issues. Upon the request, the DDD Fund Administrator shall provide underwriting, implementation of standard commercial banking practices, credit review, project feasibility analysis and any other financial analysis, which may assist in decision-making.

II. Loan Application Package: The DDD Fund Administrator working with the City of Springfield will develop a comprehensive loan application package.

III. Loan Approval Process: The DDD Fund Administrator will notify the City of Springfield when an application is received. The City of Springfield will verify that the applicant is an eligible recipient of the loan based on HUD CDBG regulations (24 CFR 570.203). Upon completion of underwriting, the DDD Fund Administrator’s staff will submit a Loan Summary for review by the DDD Fund Advisory Board. The DDD Fund Committee will make recommendations to the City to approve or deny the loan. Upon approval by the DDD Fund Administrator and the City, the DDD Fund Administrator shall carry out all necessary services to complete the loan closing, including, but not limited to: contracting for a closing attorney, preparation of tender documents, execution of appropriate documents, and filing of liens or mortgages. Loan documents will include the borrower\'s responsibility for environmental and financial compliance and documentation.

IV. Loan Administration: The DDD Fund Administrator shall administer all closed Loan Funds until fully repaid. Loan administration shall include, but not be limited to: collecting loan payments, accurate record keeping, deposit loan repayments in a designated Downtown Dining District Fund account, determination of loan defaults, serving as (or providing a contractor) the city’s HUD required document custodian, and initiate workout or foreclosure actions.

The DDD Fund Administrator will contract an outside auditor to perform periodic audits in accordance with GAO. The DDD Fund Administrator will provide all necessary legal services towards the issuance and administration of the loan.

The City of Springfield supports the goal of twenty percent minority and women participation in all contracts. No questions will be answered unless received by the Chief Procurement Officer at least 7 days prior to the expiration of the time set for submitting bids or proposals. The Chief Procurement Officer reserves the right to waive any informality in and to reject any or all bids if it is in the public interest to do so.