Bid Detail

22-002 - Purchase and Redevelopment of 195 State St., Former Fire and Marine Insurance Building

The City of Springfield hereby requests proposals from qualified parties for the purchase and redevelopment of the properties identified below. The redevelopment site is located on the Southeast corner of State Street and Maple Street in downtown Springfield. The properties included in this Request for Proposals development opportunity are:

• 195 State Street, parcel 11110-0623, with a land area of 18,124 square feet, and a total building square footage of 53,024
• ES Maple Street, parcel 08218-0204, with a land area of 4,438 square feet with no structures on the property (historically the property had a building, photograph included in this RFP)

This redevelopment opportunity is a rare opportunity to have a significant and lasting impact on the State Street Corridor, one of the most historic and significant transportation corridors in Western Massachusetts.

The 3.2-mile-long State Street Corridor underwent an $18 million restoration in 2009, including roadway reconstruction, intersection improvements, new sidewalks and median strips and many new pedestrian and vehicle amenities.

Downtown residential reuse is supported by the September, 2019 Zimmerman/Volk study that indicated the downtown area of Springfield can absorb between 770 and 1,200 new units over a five-year time frame. This type of reuse has also in the past been supported by the Urban Land Institute (ULI) national panel, and the Boston Chapter of the ULI, both of which indicated a need for additional housing in downtown Springfield.

A recent 60-unit market rate rental project, Overland Lofts (pictured at right), recently completed in 2021 and is currently leasing up to strong demand.

The successful redeveloper should have well documented experience in redeveloping historic buildings in urban centers, and will be strong in the concepts of urban design.

The City will appoint a Review Committee that will evaluate submissions, expected to be comprised of community representatives which may include but not limited to the City of Springfield Office of Planning & Economic Development, Springfield Preservation Trust, Springfield Museums, Classical Condominiums and the Armory Quadrangle Civic Association. This committee will make a recommendation to the City for approval of the selected developer.

Factors that the Review Committee will use in evaluating and ranking the proposals include, but are not limited to, the proposer’s experience and financing capabilities, the quality of planning, urban design and architecture experience in past projects, experience in developing successful projects in weak market urban areas, projects highlighting historic preservation, and proposed price. The Review Committee will make a recommendation to the Mayor, and the Springfield City Council will also be required to approve any developer agreement and property transfer.

Upon receipt of an accepted proposal and negotiation of a land disposition agreement with a successful proposer, as well as the applicant’s compliance with conditions precedent to closing, the City will close on the property as described in the RFP, or as agreed to pursuant to the contract negotiated between the proposer and the City.

SITE HISTORY & ARCHITECTURE

The selected redeveloper will work with the City to develop a site design, schedule and detailed financial plan that will help to realize the needs of the developer while meeting the project goals to establish a project consistent with the goals outlined in this RFP. The selected redeveloper, potentially engaging with the Armory Quadrangle Civic Association, should conduct a public process to engage stakeholders in the community and address the design and development issues of the site.

The City will work with the redeveloper to assist in bringing the project through the appropriate regulatory channels as needed (Springfield City Council, Springfield Planning Board, Springfield Historical Commission, Springfield Conservation Commission).

The property is currently zoned Business C, which requires 1 parking space for each proposed unit. Commercial uses in Business C do not require designated parking spaces.

195 State Street is adjacent to the parking lot at 207 State Street, currently owned by the Springfield Museum Association. Historically, 207 State Street had been home to renowned architect H.H. Richardson’s first ever commission – Church of the Unity (pictured at left). The church was demolished in 1961. There are two Richardson buildings that still remain in downtown Springfield.

195 State Street was built in 1905 and designed by Peabody and Stearns, one of the few buildings in the Springfield region designed by the well known firm that also designed the Boston Custom House property. The building was added to the National Register of Historic Properties in 1983.

The book, Springfield Present and Perspective, has several historic photos of the property. They can also be found on the Exploring Western Massachusetts blog: http://explorewmass.blogspot.com/2008/08/195-state-street-sweatin-in-oldie.html

The City is seeking proposals to revitalize and restore and reactivate this historic property, which is prominently situated in downtown Springfield. This Redevelopment Project will help solidify downtown Springfield while strategically advancing revitalization of the State Street Corridor.

As such, the project is envisioned to achieve the following:

• Restore the property to a productive, tax-producing use
• Create a development that brings significant investment to the site while being historically sensitive to one of the few Peabody and Stearns designed buildings in the region.
• Produce a development that provides a positive influence to the Quadrangle museums, Dr. Seuss Sculpture garden and Springfield Central Library all located directly across the street
• Provide a development that provides a positive influence and is not detrimental to nearby residential properties
• Create a development that will help support existing retail, restaurants, and attractions such as MGM Springfield, MassMutual Center, Symphony Hall, Armory National Park, and the Springfield Museums/Quadrangle
• Create more activity, causing more “eyes on the street” to add to the feeling of comfort and security in downtown Springfield.
• Promoting, restoring, highlighting, and utilizing historic aspects of the building including windows, all exterior elements, and significant interior elements to the greatest extent possible
• While the city will consider any use conducive to zoning that meets these goals, proposals that do not create additional speculative commercial space will be preferred

PRICE PROPOSAL & REQUIRED DEPOSIT

The current assessed value of 195 State Street is $1,159,600. The current assessed value of ES Maple Street is $8,900. Proposers should provide a competitive financial offer with their proposal including how the price proposal was arrived at, if different from current assessed value. The city will only accept bids that incorporate both properties.

Proposers are required to submit a deposit of 5% of the proposed purchase price in the form of a bank/certified check to the “City of Springfield”. Proposers not selected will have all funds returned.

SELECTION PROCESS

Through this solicitation, the City is seeking a developer to purchase and redevelop the site. Subsequent sections of this document outline the criteria and process that will be used to select the redeveloper. The City will appoint a Review Committee to evaluate these proposals as per the criteria located in this RFP, the committee will make a recommendation to the Mayor. That committee may include representatives from the City of Springfield as well as community representatives.

The selected redeveloper and the City will enter into a land disposition agreement (LDA) which commits the redeveloper to the design, execution and marketing of the project consistent with the goals identified within this solicitation and local, state and federal laws, and regulations. The agreement and property transfer will require approval from the Springfield City Council.


TAX CREDITS/INCENTIVES

The subject property may be able to utilize Federal and State tax credits. Developers should note in their financing package/project budget if they plan to utilize these, or other, tax credits/incentives.

Opportunity Zone
The subject property is located in a federally designated Opportunity Zone. The U.S. Tax Cut and Jobs Act of 2017 created the Opportunity Zone Program to provide incentives for investment in low income communities throughout the country. An Opportunity Zone is a designated geographic area, in which individuals can gain favorable tax treatment on their capital gains, by investing those funds (through a privately-created Opportunity Fund) into economic activities in the area.

Historic Building Rehabilitation Tax Credits
In addition to existing federal historic tax credits, the Commonwealth of Massachusetts also offers an historic building rehabilitation tax credit program. Under this program a certified rehabilitation project on an income-producing property is eligible to receive up to 20 percent of the cost of certified rehabilitation expenditures in state tax credits. The program has an annual cap, so there are selection criteria that ensure the funds are distributed to the projects that provide the most public benefit. The Massachusetts Historical Commission certifies the projects and allocates available credits.

Federal New Markets Tax Credits
Western Massachusetts Enterprise Fund controls a pool of New Markets Tax Credits. They have identified Springfield as one of the target communities for the use of these credits. The Western Massachusetts Enterprise Fund, MassDevelopment, and National Development Council are all active in New Markets Tax Credits.

Housing Development Incentive Program (HDIP)
The Housing Development Incentive Program (HDIP), established by M.G.L., Chapter 40V, provides Gateway cities with a tool to develop market rate housing while increasing residential growth, expanding diversity of housing stock, supporting economic development, and promoting neighborhood stabilization in designated areas.

The program provides two tax incentives to developers to undertake new construction or substantial rehabilitation of properties for lease or sale as multi-unit market rate residential housing. A local-option real estate tax exemption on all or part of the increased property value resulting from improvements (the increment), and state tax credits for Qualified Project Expenditures (QPEs) that are awarded through a rolling application process.

RFP AVAILABILITY

Copies of the RFP are available beginning June 2, 2021 through the City of Springfield Office of Procurement. Information can be found on the City procurement website at www.springfield-ma.gov.

The City is not responsible for providing amendments or other updates to this RFP to those that have not provided correct contact information to the Office of Procurement, or have received the RFP through other venues other than the City.

QUESTIONS & ANSWERS

Questions must be submitted in writing to the Office of Procurement via mail, fax, or email no later than July 14, 2021 at 2:00 PM local time. All answers and questions will be provided to all parties who have obtained copies of this RFP by July 16, 2021 at 4:00 PM. Proposers should not contact other City employees or departments directly during this process, all questions must be in writing to the Office of Procurement.

SITE VISITS

The building will be open and available for viewing on Wednesday, June 16, 2021 at 10:00 AM and July 13, 2021 at 2:00 PM. All interested parties are encouraged to attend as these will be the only opportunities to view the building. No individual requests to enter the building at other times will be accepted.

The properties will only remain open if attendees are present, interested parties are encouraged to arrive on time. Those who enter the property will be required to sign a liability waiver.

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.

Available Solicitations

As of 7:04 pm Tuesday, April 23, 2024

24-222 - For Sale: Redevelopment Boston & Albany Railroad at Factory Road/Hendee Street
End date: Monday May 13, 2024 at 2 p.m.

24-221 - Mary O. Pottenger School Parking Lot Improvement Project
End date: Thursday May 2, 2024 at 2 p.m.

24-220 - Frank H Freedman School Parking Lot Improvement Project
End date: Thursday May 2, 2024 at 2 p.m.

24-219 - Daniel B. Brunton School Parking Lot Improvement Project
End date: Thursday May 2, 2024 at 2 p.m.

24-180 - Roadway & Sidewalk Improvements - Arterial and Residential Streets including Sidewalks
End date: Wednesday May 1, 2024 at 2 p.m.

24-205 - Request for Proposals for Springfield's 2024 Public Mural Program
End date: Monday April 29, 2024 at 2 p.m.

24-226 - Flooring Installation at Mary O. Pottenger Elementary School
End date: Friday April 26, 2024 at 2 p.m.

24-225 - Abatement at Mary O. Pottenger Elementary School
End date: Thursday April 25, 2024 at 2 p.m.

24-224 - Abatement at Samuel Bowles Elementary School
End date: Thursday April 25, 2024 at 2 p.m.

24-223 - Abatement at Springfield Public Day Middle School
End date: Thursday April 25, 2024 at 2 p.m.

24-203 - RFP: Review and Update of Historical District Guidelines, Policies and Procedures
End date: Wednesday April 24, 2024 at 2 p.m.

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