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19-079 - Purchase & Redevelop Oak Street Fire Station

End date: Wednesday January 16, 2019 at 2 p.m.

The City of Springfield (hereafter "City") is requesting proposals for the redevelopment of E S Oak Street, Indian Orchard formerly known as the Oak Street Fire Station in the Indian Orchard Section of Springfield, MA. This is a City owned property enhanced by a two story brick building including a basement. The Oak Street Station is the parcel that sits on the corner of Oak Street and Berkshire Street Indian Orchard. The parcel # is 09182 – 0219 and it is a 13,500 Square foot lot zoned as Residential B. The total area of the building is approximately 11,732 square feet and assessed at $238,300.

IMPORTANT: The City commissioned a reuse study of fire stations in 2014, including this property, which examines each fire station and possible reuse scenarios. The city encourages all proposers to examine the report, available online:

http://www3.springfield-ma.gov/planning/fileadmin/Planning_files/Economic_Development/New_Use_for_Fire_Stations.pdf

The property, E S Oak Street, is a highly visible property that sits on a main intersection in Springfield. The property is located in the north side of Springfield’s Indian Orchard neighborhood which is the fifth largest neighborhoods in the City. The neighborhood contains 1251 acres of land plus rights of way and bodies of water.

Principal boundaries are the Chicopee River to the north, the Boston & Albany Railroad to the south, the Town of Wilbraham to the east, and portions of Brookdale Drive, the Athol rail line and Worcester Street to the west. There are over 100 acres of parks and other open areas in Indian Orchard. Over half of this amount is located in Hubbard Park.

Among the signature features of the neighborhood are the so-called “kettle hole lakes,” water holes formed from natural glacial deposits which are unconnected to other bodies of water. The neighborhood has also been known as a hub for artists, including many located at the Indian Orchard Mills at 34 Front Street.

The property is approximately one mile to the entrance of the Mass Pike, Interstate 90, in Ludlow and three and a half miles to the Intrastate 291 on ramp in Springfield.

The property is being sold “as is” and the City makes no representations regarding the environmental and/or physical condition of the properties and will require the buyer to assume responsibility for these conditions. Prospective developers should undertake their own reviews and reach their own conclusions concerning zoning, title and survey matters, required approvals, physical conditions, environmental conditions, reuse potential, utility services and

development, leasehold, legal and other considerations. Proposers are responsible for making their own determinations of existing conditions.

SITE AND SYSTEMS INFORMATION, STREET ADDRESS

This is a City owned property enhanced by a two story brick building that once was home to the Indian Orchard fire station. The Oak Street Station parcel sits on the corner of Oak Street and Berkshire Street in Indian Orchard Neighborhood. The parcel # is 09182 – 0219 and it is a 13,500 Square foot lot zoned as Residential B. The total area of the building is approximately 11,732 square feet and assessed at $233,600.

DEVELOPMENT CONCEPT

The City is seeking to select a developer who submits the most advantageous proposal consistent with the selection criteria and proposal requirements set forth in this RFP, and who demonstrates the ability to perform as proposed in a timely fashion.

While the financial benefits (i.e., price paid for the property) of a proposal are important to the selection of a developer, coupled with all selection criteria, the City will also consider the broader fiscal and economic benefits to be realized from the redevelopment project. The City
Will not be obligated to select the proposer offering the highest purchase price if another proposal better satisfies the selection criteria and other requirements of this RFP as a whole.

The City is most interested in proposals that creatively integrate the site with the surrounding area, respecting zoning that creates a viable redevelopment opportunity and enhance the aesthetic appeal of the streetscape. Proposers should be familiar with abutting uses and mindful of such when developing a redevelopment project and program to ensure the project is respectful of existing neighbors. As noted, the parcel is zoned as residential B; any other use will require a zone change.

The City envisions a development that incorporates any reasonable proposals which could include some or all of the following elements:

• Featuring and preserving historic features and attributes of the property
• Creating positive street level activity and improved landscape appearance on Oak and Berkshire Street.
• Creating jobs, live/work studio space or new market rate housing opportunities

DEVELOPMENT INCENTIVE

The City is providing a development incentive of up to $50,000 via CDBG funds are being made available to qualified developers that demonstrate capacity to comply with the requirements of federal funding. All projects must meet the HUD Elimination of Slums and Blight, on a Spot Basis National Objective, therefore only exterior repairs that address code enforcement violations and/or public health and safety concerns will be eligible for funding under this program. For more information on HUD National Objective requirements you may visit the following website http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_16472.pdf

There are no income restrictions applied to these funds. Exterior improvements will need to be approved by the Springfield Historical Commission, as the property will be transferred with an exterior preservation restriction.

The CDBG funds will be an interest free, forgivable loan not to exceed $50,000 for approved exterior improvements such as roof repair, masonry repair, window repair, etc.

The loan will be paid out as reimbursement of expenditures. Grantees will need to submit detailed invoices, photographs showing completed work and receipts and proof of all payments to the City for review and approval. The City will review all payment requests and backup documentation and approve or deny payment within thirty (30) days. The City reserves the right to hold-back up to 5% of the development incentive until completion of the entire project. Half of the loan will be forgiven upon issuance of a Certificate of Occupancy by the Springfield Building Commissioner. Once the Certificate of Occupancy has been obtained, 20% of the remaining loan will be forgiven each year the property is maintained in compliance with code enforcement over the next five year period.

Utilizing federal incentive funding for a housing redevelopment would require the property to be de-leaded and to meet federal housing quality standards for residential projects and prevailing wage requirements when applicable.

Proposers should also be aware of other potential incentives including the federal and state 20% tax credit for historic rehabilitation as well as the Community Preservation Act of which Springfield is now a participant which makes limited funding available on annual basis for impactful preservation projects.

*****To assist bidders, a workshop on the historic preservation incentive will be held on Thursday, December 20, 2018 at 2:00 PM at the Office of Planning & Economic Development at 70 Tapley Street.

F. DEVELOPMENT CONDITIONS

• An exterior preservation restriction shall be set on the property in perpetuity. As such, any exterior building alterations doors will require approval of the Springfield Historical Commission. The selected developer will be responsible for completing and recording said restriction upon transfer of property as a condition of transfer.

• The property is being sold in as-is condition, and the designated developer will take responsibility for any and all environmental and hazardous conditions upon transfer.

• If there is a residential component to the project the developer will be required to abate all lead paint in the structure in compliance with local, state and federal lead paint regulations. Developer will be required to submit a lead compliance certificate to the City at the completion of renovation and may be required prior to final payout of federal funding.

• If the project includes a commercial and/or mixed use component the developer will be required to comply with Federal Davis Bacon Laws and state and federal prevailing wages.

• The City will require a certificate of occupancy within 18 months of the transfer of property to the designated developer or the property will revert back to the City.

• Prior to property transfer, the designated developer will produce financial commitment documentation for the value of the project from its lenders and/or funding sources.

• Prior to closing, the designated developer will produce a detailed project schedule and final floor plans for the building.

• The Office of Planning & Economic Development will maintain a Site Plan approval of final landscaping/parking on-site plans. No tree removal or other landscaping or site plan alterations should be made prior to this approval.

• Non-profit/tax-exempt proposers will be expected to enter into an agreement with the City of Springfield for an agreed upon Payment in Lieu of Taxes (PILOT) to be negotiated through the proposer and City of Springfield Board of Assessors.

F. Restrictions and Requirements
• The property will be conveyed with a reverter clause which will require completion of development within eighteen (18) months of conveyance of the deed and which will require to be occupied within eighteen (18) months.

• Automotive related uses will not be permitted (i.e. used or new car sales, auto repair, etc.).

Section 3 Requirements

The work to be performed with CDBG-DR funding is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

Grantees must agree to sign a contract requiring compliance with HUD's regulations in 24 CFR 135, which implement section 3. The contract will require a certification that the grantee is under no contractual or other impediment that would prevent them from complying with the part 135 regulations.

The grantee's contractor must agree to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this section 3 clause, and will post copies of the notice in

conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.
The grantee's contractor must agree to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135.

The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135.

The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR part 135.

Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.
With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b).

PRICE PROPOSAL

The City will entertain all competitive bids for the property. Price will not be the only factor in selection, but proposers are encouraged to make the best financial benefit case possible to the City and selection committee. The property is currently assessed at $238,300.

The site is on a major public throughway and can be viewed from the public sidewalks at anytime. Interested parties are asked not to enter the private property at any time, other than the designated site walks. Attachments include further information on the property.

Questions regarding the RFP should be submitted in writing to the Procurement Department. In order to provide prompt answers to questions, the City requests that all proposers submit written questions to the City of Springfield’s Procurement Department by January 7, 2019. Questions should be faxed or emailed. The Procurement Department’s fax number is (413) 787-6295 or email Lauren Stabilo at lstabilo@springfieldcityhall.com .

The City will compile written answers which will be mailed to all Proposers who requested a copy of the RFP, no later than January 9, 2019.

To maintain a fair and impartial competitive process, the City will only answer written questions submitted to the Procurement office. Private communication is not allowed with any RFP Review Committee Member or member of the Office of Planning and Economic Development or other City staff during the proposal preparation and evaluation period. Proposers who initiate private communication or attempt to violate the process outlined herein will be disqualified.