AGENDA #11a
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Consideration of Issuance of Request for Qualifications for Parking Lot 5 and the Wallace Parking Deck Sites
DATE: December 6, 2004
The attached resolution would authorize the distribution of the draft Request for Qualifications document (please see Attachment 1) to solicit statements of qualifications from development teams interested in submitting proposals for development of Town Parking Lot #5, and the Wallace Parking Deck and adjacent property.
BACKGROUND
The Downtown Small Area Plan adopted in 2000 identifies key “opportunity areas” for development downtown, including Town Parking Lot #2 at East Rosemary and South Columbia Streets, and Town Parking Lot #5, bound by West Franklin, Church and West Rosemary Streets.
Since November 2003, the Council and the Council Committee on Lots 2 and 5 have been working on a process to potentially develop the two Town-owned sites, as well as the Wallace Parking Deck and the adjacent property at Henderson and Rosemary Streets, and the RBC-Centura bank property at South Columbia and East Franklin Streets.
The Town’s consultant, Stainback Public/Private Real Estate of Houston, Texas, developed a financial feasibility analysis with input from the Council, the Council Committee and the public. The Council held public forums on the draft report on September 13, and 27, 2004.
On October 27, 2004, the Council held a forum to receive public comment, including whether to proceed with the developer solicitation process, the next phase of the project.
On November 8, 2004, the Council authorized Stainback Public/Private Real Estate to draft the Request for Qualifications and an initial draft Request for Proposals for the Council’s consideration tonight. Town Parking Lot #5, and the Wallace Deck and adjacent property are included in the Request for Qualifications. Town Parking Lot #2 and the RBC-Centura property are in the project schedule as part of a second developer solicitation phase that would start in 2007.
On November 8, the Council Committee authorized Stainback Public/Private Real Estate to hire a structural engineer to determine the structural capacity of the Wallace Parking Deck to handle additional development on top of the deck. The conceptual master plan for the site calls for adding a four-story residential building and public spaces on top of the deck, replacing the public plaza. The Committee requested the structural analysis report prior to tonight’s meeting so that the Council can determine whether the conceptual plan for the Wallace deck is financially feasible before including the project in the Request for Qualifications. The engineer’s findings are discussed below.
On November 22, 2004, the Council Committee reviewed the Request for Qualifications draft and provided feedback to the consultant.
Please see Attachment 2 for background history of the project to date.
KEY ISSUES
Wallace Parking Deck
The conceptual master plans contemplate adding four stories on top of the deck, and extending the deck to Henderson Street. In addition a four-story building would be built on the Town property behind the Old Post Office. The architect who designed the deck has told Town staff that the structure can handle at least one additional level and possibly two, depending on the results of a structural analysis. In addition, extending the deck through the alley would require the relocation of major utility lines. (There also are issues with providing services to the Franklin Street businesses, including deliveries and trash and recycling collection, during construction and beyond.)
Stainback Public/Private Real Estate contracted with Stewart Engineering of Morrisville to determine the capacity of the deck to handle additional development on top. The detailed engineering report from Stewart Engineering is to be completed by December 8, 2004.
On Friday, December 3, Stewart Engineering submitted a brief memorandum summarizing the preliminary findings of their analysis (see Attachment 3) which determined that the deck can support a three-story multi-family residential building. The memo states:
“Our evaluation concluded that 3 levels of light residential framing plus a roof could be constructed on top of the plaza. (Wood or light gage steel structures). Care will need to be taken in positioning the bearing walls as to distribute the new loads evenly over the existing structure.”
In addition the memo states that the firm will be conducting a “lateral analysis to evaluate how the additional horizontal loads from wind and seismic effect the entire structure.” The findings will be in the final report.
Comment: Based on the findings Stewart Engineering communicated to Stainback Public/Private Real Estate, it appears that the deck should be able to support the construction of a three-story residential building on top, one level less than illustrated in the conceptual master plan for the property. The portion of the development that would be behind the Old Post Office would not be affected.
Participation of RBC-Centura
The conceptual master plans for Lots 2 and 5 include the concept of building a parking garage at RBC-Centura’s property at East Rosemary and North Columbia Streets. In exchange for acquisition of the RBC property, the bank would be provided building space in the proposed development of Town Parking Lot 5.
The deck at the RBC site could contain as many as 360 parking spaces. The consultant’s finance model assumes the RBC deck would meet the parking demand for the development of Parking Lot 2, freeing up room for the construction of an under-grade transit transfer center at Lot 2. In addition, a deck at the RBC site would provide 92 spaces to offset public spaces lost at the Wallace Parking Deck as a result of the new construction at the parking deck and adjacent property. The project schedule anticipates acquisition of the RBC property and demolition of the building in 2010, with construction of the deck following.
The participation of RBC-Centura affects the scope of the project because of the question of whether space would be needed at Lot #5 for the bank, and whether a parking deck at the RBC site could be built to help replace public parking lost as a result of the development of the Wallace Deck sites. An expression of interest from RBC is needed before moving forward with the Request for Qualifications/Request for Proposals process with the bank property included.
Comment: RBC-Centura has written the Town authorizing inclusion in the Request for Qualifications the concept involving RBC’s property (see Attachment 4). We believe this is sufficient to proceed with the RBC site in the Request for Qualifications process.
We recommend that the selected developer, should the project reach that stage, be asked to negotiate with RBC on acquisition of the RBC site. The success of negotiations with RBC will affect the potential scale of the Wallace Parking Deck project. Without the RBC site, development of the Wallace site would need to be of a scale that avoids a net loss of public parking spaces.
Design Guidelines
On November 22, 2004, the Council Committee on Lots 2 and 5 asked the consultant to minimize references to project design in the Request for Qualifications document so that the experience of architects on development teams would serve as the focus of the evaluation. Committee members requested that most of the conceptual master plan images, such as building elevations and renderings, be provided as supplementary materials and not be included in the Request for Qualifications document.
The Committee also reviewed a set of design guidelines drafted by the Planning Department. The guidelines related specifically to the design of public space at Lot 5. Committee members said they wanted to avoid including detailed and prescriptive design guidelines in the Request for Qualifications.
Comment: The Planning Director drafted general Design Principles for the Council’s consideration (see Attachment 5). A statement on the Council’s design preferences could be included in the Request for Qualifications document to reinforce the importance of high quality design in the project.
Public Art
On November 22, the Council Committee reached consensus on requiring one percent of the total development budget to be set aside for public art.
Comment: Funding for public art should be addressed in the Request for Proposals document.
REQUEST FOR QUALIFICATIONS
The consultant’s draft Request for Qualifications was transmitted to the Town on Friday afternoon, December 3, 2004, too late for staff review and comment. We will have comments for the Council on Monday.
The Request for Qualifications provides development teams – developers, architects, landscape architects, engineers, lenders and others – an opportunity to submit a package of information describing each team member’s background and experience in similar development projects.
The Request for Qualifications process would allow the Council to narrow down the field to three to five development teams based on an evaluation of past experience, quality of work and other criteria.
The short-list of three to five development teams would then be invited to respond to the Town’s Request for Proposals and submit detailed technical proposals.
Council Committee Comments on First Draft
On November 22, 2004, the Council Committee requested the deletion of language in the draft Request for Qualifications document which asked development teams to submit a narrative description of their vision of the project with the option of also providing conceptual design plans and sketches. Committee members said they wanted the evaluation of responses to focus on the architects’ past work and demonstrated performance.
The Committee also asked that only the conceptual site plans showing the potential arrangement of buildings be included in the main Request for Qualifications documents. Building elevation illustrations developed by HKS during the conceptual master plan stage are included with the supplemental materials.
The attached version (Attachment 1) reflects edits made by Stainback Public/Private Real Estate since the November 22 meeting, incorporated in response to the Council Committee and citizen comments.
Submission Requirements
Section 7 describes the submission requirements and process. Developers are asked to submit, at a minimum, information on financial capacity to implement development projects of a similar scale, a list of firms on the development team, including the name of the architect, description of past experience in mixed-use and public-private projects, and the developer’s assessment of the market demand for office, retail, housing and arts and entertainment uses.
Distribution of Request for Qualifications
Stainback Public/Private Real Estate will mail CD-ROMs containing the Request for Qualifications document and supporting information, including reports and studies related to the project and downtown, to a list of developers, architects and engineers provided by the consultant and others who have expressed an interest in the project or who may be interested.
The Town also will post the Request for Qualifications documents on the project website so those who are interested can download the information at no charge.
Publicity
We are working with Stainback Public/Private Real Estate on a publicity plan for announcing the Request for Qualifications. The announcement will be posted on the web, including the Urban Land Institute’s website and those of other organizations related to the development field. These other sites could include Planetizen.com, the American Planning Association website, and bizjournals.com. We also are exploring options for print advertisements.
Deadline
Responses must be received no later than 11 a.m. Monday, January 31, 2005.
NEXT STEPS
A draft revised project schedule is included as Attachment 6. The schedule proposes distribution of the final Request for Qualifications document on Monday, December 16, after any changes requested by the Council are incorporated. Developers would have until Monday, January 31, 2005, to submit a response.
If the Council approves distribution, Stainback Public/Private Real Estate will make any final edits made by the Council by Friday, December 10. On Monday, December 16, the Request for Qualifications package will mailed to the distribution list and be posted on the project website. The Request for Qualifications also will be announced on the Urban Land website and other websites we identify no later than December 16. We also will continue evaluating potential options for print advertisements.
A pre-proposal conference is scheduled for January 11, 2005, to provide interested developers, architects and others an opportunity to meet with Council members, see a presentation on the project and visit the project sites.
Statements of qualifications from development teams would be due by Monday, January 31. On February 23, the Council Committee would consider Stainback Public/Private Real Estate’s recommended short-list of developers; the Committee’s recommendation would be presented to the Council on February 28. Council consideration of the short-list and the final draft of the Request for Proposals is proposed to take place on March 7.
RECOMMENDATION
We believe it would be reasonable for the Council to authorize proceeding with issuance of the attached Request for Qualifications.
ATTACHMENTS
1. Draft Request for Qualifications (p. 1-1). Part 1, Part 2
2. Project Background (p. 2-1).
3. Memorandum from Steven G. Olejar of Stewart Engineering to John Stainback, December 3, 2004 (p. 3-1).
5. Draft Design Principles for Lots 2 and 5 and Wallace Deck (p. 5-1).
6. Draft Project Schedule (p. 6-1).
7. November 1, 2004 Memorandum from Janet Kagan: Public Art in Private Development (p. 7-1).
A RESOLUTION AUTHORIZING ISSUANCE OF REQUEST FOR QUALIFICATIONS DOCUMENT FOR Potential DEVELOPMENT OF TOWN PARKING Lot 5 AND THE WALLACE PARKING DECK SITES (2004-12-06/R-14)
WHEREAS, on June 14, 2004, the Council adopted a resolution outlining recommended development options to use as a conceptual guide by consultant John Stainback and the Council in determining the financial feasibility of the building program for Town Parking Lots 2 and 5 and the Wallace Parking Deck; and
WHEREAS, on June 14, 2004, the Council authorized proceeding with the financial feasibility analysis phase; and
WHEREAS, on August 25, 2004, the Council Committee on Lots 2 and 5 received the consultant’s initial report on financial feasibility and discussed potential scenarios for developing the sites; and
WHEREAS, on September 13, September 27, and October 27, 2004, the Council held public forums on the Financial Feasibility Report and other project-related information, including review by the Downtown Economic Development Corporation, the Downtown Commission, the Chamber of Commerce, and the University; and
WHEREAS, the Council has solicited additional public comment and review through public information meetings on November 4, and 5, 2004;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes issuance of the attached Request for Qualifications as part of a process to select a developer to develop Town Parking Lot #5 and the Wallace Parking Deck and adjacent property.
This the 6th day of December, 2004.