Atlantic Village by Jones New Urban Delray by West Atlantic Redevelopment Coalition

DELRAY CRA PROJECT NO.: CRA2013-06 REQUEST FOR PROPOSALS WEST ATLANTIC AVENUE PROPERTIES

Atlantic Village Jones New Urban Delray August 13, 2013

1. Identify what portion or portions of the redevelopment site they are seeking to acquire and develop (i.e., entire site, west portion, east portion). The Respondent intends to lease, develop and eventually acquire all land offered in the RFP.

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2. State the anticipated uses within the redevelopment project. The uses must be currently permissible under the City of Delray Beach Land Development Regulations. Specify the total square footage of the project and the breakdown of each proposed use. Proposer may submit letters of intent from committed and/or potential tenants if possible. The following table lists the anticipated uses within the redevelopment project: Block 2 Retail Residential Restaurant

Use

Units 0 0 0

SF 19,200 0 0

Retail Office Residential Restaurant Residential Amenities and Common Areas

0 0 92 0 0

1,000 8,650 87,750 1,500 10,250

Retail Office Residential Restaurant Residential Amenities and Common Areas

0 0 92 0 0

1,000 8,650 87,750 1,500 10,250

184

237,500

Total

All uses are permissible under the City of Delray Beach Land Development Regulations in the CBD and RM zoning districts, as applicable. Respondent has a history of working with national, regional and local tenants. Respondent has participated in a workshop by WARC and this response addresses the retail types consistent with the West Atlantic Area Needs Assessment (October, 2012). Respondent has included in the proposal 17,300 sf of Class A office space in the mixed use buildings located between SW 6th and SW 8th Avenues. Per the RFP, this space is proposed to be leased or sold to the CRA and then subleased to various subtenants.

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3. Submit a conceptual site plan and one or two conceptual elevations on a sheet or sheets measuring 24” by 36” at a scale of one inch equals twenty feet (1” = 20’). The site plan should include, at a minimum, the location of proposed building(s) and the public streets surrounding the site. The plans must indicate the height(s) of all proposed buildings. Parking, sidewalks, and major landscaping features should be illustrated. In addition the Proposer should reduce the site plan to a format measuring 8 ½” by 11” or 11” by 17” for ease of distribution, and an electronic version of the same on .PDF format. The conceptual site plan and conceptual building elevations are provided.

4. Submit basic floor plans of the proposed buildings on a sheet or sheets measuring 24” by 36”, primarily for the purpose of indicating the square footage of each use. The Proposer may choose an architectural scale appropriate to communicate the concept of the proposed project. In addition the Proposer should reduce the floor plans to a format measuring 8 ½” by 11” or 11” by 17” for ease of distribution, and an electronic version of the same on PDF format. Diagrammatic floor plans for the proposed buildings are provided. Actual unit floor plans are still under development.

5. State the offering price or lease amount for the property. The offering should state the terms of payment, the anticipated closing date if applicable, and any conditions, contingencies, and additional requirements that affect the purchase. PLEASE NOTE: Any offers for less than appraised market value or current lease rates for the area must compensate for the reduced value in the form of benefits to the public or the local community (i.e., a program for providing jobs to local residents, etc.). In addition, the sale or lease of the property by the CRA for less than the market value may require approval of the City Commission, depending upon a determination of the value of any alternative benefits provided. Proposers seeking to lease the property through the Land Value Investment (LVI) Program must submit a completed LVI Program Application form. Proposer will ground lease the property for a forty year term, with an ability to extend for an additional twenty years at Market Rate. Lease term will commence upon Respondent receiving all approvals and permits necessary for the development of the project, including building permits. Consistent with the LVI Program, Proposer will lease the property as follows: • •

• • • • • •

First five years: $1 per year. Second five years: Not to exceed 4% of the appraised value of the property four months prior to the end of the first five year term, based on an analysis of the market value of the property and pre-tax profit and loss operating statement of the project and further based on a benchmark agreed to by Respondent and the CRA. Third five years: Not to exceed 6% of the appraised value of the property four months prior to the end of the second five year term. Subsequent years: Not to exceed 8% of the appraised value of the property four months prior to the end of the previous year of the lease term. Thereafter, the Lease Rate shall increase by 2.5% per year, beginning in year 16. Lease rate(s) shall be triple net. Payments shall be made monthly. The Proposer shall have an option to purchase the property from the CRA at any time during the lease term in accordance with the program guidelines.

Identify the proposed CRA incentive programs, amount of funding requested, details of the costs and financial benefits to the CRA as well as details of how the proposed incentive is consistent with the objectives of the Community Redevelopment Plan and the applicable plans adopted by the City of Delray Beach. If a joint venture with the CRA is contemplated, the terms of such an arrangement must be specified, including the proposed financing arrangements, ownership structure, the responsibilities of each entity, and other pertinent information. Proposers intending to utilize one or more CRA incentive or grant programs must complete the appropriate program application and include it with their response. The proposal contemplates the use of two CRA incentive programs, the Land Value Investment (LVI) program and the Development Infrastructure Assistance (DIA) program and a public private partnership on the commercial space in the mixed use buildings located on Blocks 5 and 13. The use of the LVI program is consistent with the following objectives of the Community Redevelopment Plan and the West Atlantic Redevelopment Plan: • • • • • • • • •

Design is based on traditional neighborhood planning principles and contains a combination of residential and commercial uses (WARP p. 8) Plan includes apartments over office space as well as freestanding apartments (WARP, p. 50) Mixed use redevelopment project with office, residential retail, and restaurant space (WARP, p. 58) Buildings pulled to the street (WARP, p. 61) Utilization of shared parking (WARP, p. 112) Development of alleys and sidewalks to create a safe, walkable pedestrian environment (WARP, p. 114) Grocery/drug store Parking located to the rear of structures along Atlantic Avenue (WARP, p. 123) Sidewalks provided along all public streets and also internally

Per Section E of the RFP guidelines, Respondent proposes to lease 22,300 sf of commercial space in the mixed use building proposed on the blocks 5 and 13 between SW 6th and SW 8th Avenues to the CRA for $15 per square foot NNN. Respondent has allocated a $30 per square foot tenant improvement allowance for the benefit of the subtenant. The CRA will be responsible for leasing to all subtenants and will receive all rent they obtain. Alternatively, the Respondent is willing to sell the 22,300 square feet of commercial space to the CRA at Respondent’s documented construction cost, including construction supervision and overhead. Respondent also requests that the CRA waive program guidelines that require 50% of the project’s net floor area, exclusive of hotel/conference uses, be dedicated to Class

A office space and 75% of the project’s net floor area be dedicated to non-residential use. The rationale for these waivers is as follows: •

•

The financing climate remains challenging. Respondent does not believe it can obtain financing for the amount of Class A office space or nonresidential space required. Respondent believes its chances of obtaining financing are significantly enhanced by its proposed mix of retail, restaurant office and residential uses. The neighborhood will be well served by the proposed mix of uses. Needed retail, as identified in the West Atlantic Redevelopment Plan, is being provided, as well as a significant residential base to help support those uses. The proposal will result in the creation of an estimated 350 construction jobs and 74 permanent jobs.

The use of the DIA program is consistent with the following objectives of the Community Redevelopment Plan and the West Atlantic Redevelopment Plan: • • • • • • • • •

Design is based on traditional neighborhood planning principles and contains a combination of residential and commercial uses (WARP p. 8) Plan includes apartments over office space as well as freestanding apartments (WARP, p. 50) Mixed use redevelopment project with office, residential, retail and restaurant space (WARP, p. 58) Buildings pulled to the street (WARP, p. 61) Utilization of shared parking (WARP, p. 112) Development of alleys and sidewalks to create a safe, walkable pedestrian environment (WARP, p. 114) Grocery/drug store Parking located to the rear of structures along Atlantic Avenue (WARP, p. 123) Sidewalks provided along all public streets and also internally

If additional property/properties are to be incorporated into the development, the RFP response must include proof of ownership of that property, or a valid, signed sales contract indicating the owner’s agreement to sell the property to the proposer. If additional property is to be used to meet the minimum requirements for off-site parking, a valid, signed agreement for the use of the property in compliance with the Land Development Regulations must be included in the RFP response. In the absence of such documentation the additional property(ies) or parking will not be considered in evaluating the proposal. Contact information for certain adjacent property owners can be obtained by written request to the CRA via the City’s Purchasing Division. All land offered in the RFP has been included in our proposal. We are able to meet the LDR parking requirements through the use of the shared parking provisions of Section 4.6.9 (C) (8) (a). We will be requesting a waiver of the provision that requires 1 space per residential unit to be reserved at all times. Justification for the waivers include but are not limited to the following factors: • • • • •

Urban infill location Site served by transit Small size of units Large amount of office use, which is the perfect complement to residential. Strict application of this provision would require needless reduction in commercial square footage, residential units or both, and vast expanses of open parking spaces during much of the day and night.

Submit a time schedule for the completion of the project including the building, parking, and off-site improvements. The CRA’s preference is single-phase development. Phased projects will be evaluated less favorably. However if the project is proposed to be developed in phases, then the time schedule should reflectthe phases based upon realistic development time frames. Projected Start Date December 2013

Projected Completion Date May 2014

Government Approvals

February 2014

October 2014

Site Design and Land Development Permitting

October 2014

March 2015

Architectural Design and Vertical Construction Permitting

October 2014

May 2015

April 2015

December 2015

January 2016

April 2017

September 2015

April 2016

May 2016

August 2017

February 2016

August 2016

September 2016

August 2017

Activity Negotiate Ground Lease and Development Agreement

Land Development Block 13 (land between SW 6th and SW 7th Avenues) Vertical Construction Block 13 (land between SW 6th and SW 7th Avenues) Land Development Block 5 (land between SW 7th and SW 8th Avenues) Vertical Construction Block 5 (land between SW 7th and SW 8th Avenues) Land Development Block 2 (land between SW 8th and SW 9th Avenues) Vertical Construction Block 2 (land between SW 8th and SW 9th Avenues)

The project is planned to be developed in one continuous phase.

Submit a total project cost analysis stating, by category, the major elements of the project. The major cost items shall include, at a minimum, land costs, site development costs (including but not limited to paving, grading, drainage, landscaping, site lighting, right-of-way improvement, and surface parking) building construction costs (including parking garages, if applicable), permit and impact fees, tenant improvement allowances, architectural and engineering costs, marketing costs, financing costs, and any other significant costs. The intent of this preliminary development budget is to assist in evaluating the financial feasibility of the project at this conceptual stage and it should be realistic given the proposer’s experience. See attached development budget.

Atlantic Village Land Development Budget Delray Beach, Florida

Line Item

Account Description

Blocks 5 & 13 Acres: Blocks 2 Acres: Total Acres:

Detailed Description

4.63 1.60 6.23

Residential Lots: Commercial SF:

Unit Price

Extension

184 41,500

Quantity

Units

Boundary Survey Topo Survey Tree Survey Site Plan Landscape/Hardscp. Design

1 1 1 1 1

LS LS LS LS LS

7500 7500 3500 40000 25000

7,500 7,500 3,500 40,000 25,000

0.23% 0.23% 0.11% 1.21% 0.75%

Engineering Platting/Horiz. Control Irrigation Progress Photos Landscape Inspections

1 1 1 24 1

LS LS LS Months LS

40000 20000 8000 150 8000

40,000 20,000 8,000 3,600 8,000

1.21% 0.60% 0.24% 0.11% 0.24%

Eng. Inspections/Certification Staking/As-Builts Misc. Surveying (Plots, Esmts.)

1 1 1

LS LS LS

15000 15000 10000

15,000 15,000 10,000

0.45% 0.45% 0.30%

3200 6 6 10000 1 1 1 1 1 1 1 1 1 16,034 30220 85 1 2388788 6.23 1 1 1 1 1 1 1 1 2388788 1 6.23 184 184 5520000

LF LS LS SF LS LS LS LS LS LS LS LS LS SY SF LS LS $ Acres LS LS LS LS LS LS LS LS $ LS Acres Lots Lots $

25 8000 12500 4.00 15000 10000 125000 1580 85000 130000 325000 150000 65000 25 3.50 4000 75000 0.025 1000 150000 50000 60000 15000 15000 175000 20000 20000 0.02 10000 10000 200 200 0.010

80,000 48,000 75,000 40,000 15,000 10,000 125,000 1,580 85,000 130,000 325,000 150,000 65,000 400,855 105,770 340,000 75,000 59,720 6,230 150,000 50,000 60,000 15,000 15,000 175,000 20,000 20,000 47,776 10,000 62,300 36,800 36,800 55,200

2.41% 1.45% 2.26% 1.21% 0.45% 0.30% 3.77% 0.05% 2.56% 3.92% 9.81% 4.53% 1.96% 12.10% 3.19% 10.26% 2.26% 1.80% 0.19% 4.53% 1.51% 1.81% 0.45% 0.45% 5.28% 0.60% 0.60% 1.44% 0.30% 1.88% 1.11% 1.11% 1.67%

1 6.23 10

LS Acres Trees

200000 2000 750

200,000 12,460 7,500

6.03% 0.38% 0.23%

1420 Preliminary Surveying

Site Planning Landscape Architecture Engineering/Platting

Date: ######### Scenario: Preliminary

Account Total

Blocks 5 & 13 74%

Block 2 26%

Blocks 5 & 13 DIA

Block 2 DIA

203,100

150,294

52,806

75,147

26,403

393,000

345,420

47,580

105,210

23,790

1,580 85,000 130,000 325,000 150,000 65,000 400,855 105,770 415,000

1,169 85,000 96,200 240,500 111,000 48,100 296,633 78,270 307,100

411 0 33,800 84,500 39,000 16,900 104,222 27,500 107,900

48,100 120,250 55,500 24,050 148,316 39,135 153,550

16,900 42,250 19,500 8,450 52,111 13,750 53,950

59,720 6,230 150,000 50,000 60,000 15,000 15,000 175,000 20,000 77,776

44,193 4,610 111,000 37,000 44,400 11,100 11,100 129,500 14,800 57,554

15,527 1,620 39,000 13,000 15,600 3,900 3,900 45,500 5,200 20,222

55,500 18,500 22,200 5,550 5,550 64,750 7,400

19,500 6,500 7,800 1,950 1,950 22,750 2,600

62,300 36,800 36,800 55,200 212,460

46,102 27,232 27,232 40,848 157,220

16,198 9,568 9,568 14,352 55,240

78,610

27,620

7,500

5,550

1,950

2,775

975

2,911,195 402,895

2,230,984 298,143

680,211 104,753

954,946 75,147

322,346 26,403

3,314,090

2,529,127

784,964

1,030,093

348,749

1,447,459

508,567

Construction Eng./Surveying

1425 Amenities

1426 1437 1427 1428 1429 1430 1431 1432 1433 1435 1436 1439 1440 1441 1442 1443 1444 1445 1448

1449 1453 1446 1454 1461

Clearing & Brushing Demolition Sanitary Sewer Storm Sewer Water Mains Special Structures Paving Sidewalks Off Site Paving Off Site - Other Letters of Credit/Bonds Temporary Roads & Utilities Earth Bal. & Retention Electric Distribution Irrigation Phone Distribution Cable TV Distribution Street & Lot Lighting Street Signs Rezoning Fees Municipal Inspection Fees Plan Check Fees Compaction/Construction Testing Expected Repairs/Maintenance Unexpected Costs Land Warranty Reserve Landscaping

Sediment Control 1480 Environmental Issues

Aluminum Perimeter Fence Monument Signage Automatic Gates Pavers Benches, Trash Cans, Bike Racks Mailboxes/Slabs Pool Vegetation Removal Contract Contract Contract Fire Sprinklers (Land Portion) Includes Parking bays Parking Spaces and Islands Misc Offsite Expenses Subdivision Improvements See Detail Underground Differential Sleeving Sleeving Ornamental Lighting Commercial Area Signage/Marking Application Fees Land Development Construction Engineering/Plat Review Soil Testing

Repairs & Warr. Res. Contract Soil Erosion Tree Relocation

Hard Soft TOTAL DIA Limit Based Upon 50% of Ten Years of Tax Increment

3,314,090 100.00%

1,956,025

Atlantic Village (Block 2) Grocery/Drug Store & Bank Assumptions and Sources & Uses Delray Beach, Florida

ASSUMPTIONS: Grocer/Drug Store Total Square Feet Bank Total Square Feet Grocer/Drug Store Rent per Square Foot (years 1 - 3) Grocer/Drug Store Rent per Square Foot (years 4 - 8) Grocer/Drug Store Rent per Square Foot (years 9 - 13) Bank Rent per Square Foot Vacancy Loss Bank Annual Rent Escalations Management Fee Replacement Reserves Total Square Footage Cost Per Square Foot Commercial Land Value (market value according to PAPA) Construction Interest Rate Permanent Financing Interest Rate (10 Year Treas + 350bps) Permanent Financing LTV Amortization Period (years) Land Lease Rate (years 6 - 10) Land Lease Rate (years 11 - 15) Land Lease Annual Escalation

16,000 3,200 $9.00 $10.00 $12.50 $35.00 10.0% 3.0% 5.0% 3.0% 19,200 $105.00 $517,113 7.0% 5.5% 70.0% 25 4.0% 6.0% 2.5%

Estimate of FMV at Completion Tax Appraisal - % of FMV Mils

$3,664,611 85.0% 22.8869

SOURCES: Debt Financing Equity

$2,203,248 $944,249

TOTAL SOURCES

$3,147,498

USES: Vertical Hard Cost of Construction Land Development Costs Net of DIA (see land development budget) GC Overhead & Supervision (9.0%) Construction Contingency (3.0%) Impact Fees Architecture Financing Costs (including doc stamps, title insurance and legal) Construction Interest (based on total investment and 12 month build out) Property Taxes during Development Other Soft Costs

$2,016,000 $436,214 $220,699 $73,566 $188,646 $67,200 $78,000 $92,536 $11,835 $30,000

TOTAL USES

$3,147,498

Atlantic Village (Blocks 5 & 13) Residential Rental & Commercial Assumptions and Sources & Uses Delray Beach, Florida

ASSUMPTIONS: Unit Type Studios 1 Bedroom Flats 2 Bedroom Flats Artist Studios

# of Units 18 60 90 16

Total Residential Units Average Unit Size Average Monthly Rent per Residential Unit Monthly Rent per Square Foot Total Commercial Square Feet (5,000 SF of which is retail/restaurant) Commercial Rent per Square Foot (from CRA partnership) Annual Rent Escalations Annual Expense Escalations Total Residential Square Footage Square Footage of Residential Ammenities Square Footage of Residential Common Areas Cost Per Square Foot Residential Cost Per Square Foot Commercial Commercial Tenant Allowance per Square Foot Land Value (market value according to PAPA) Construction Interest Rate Permanent Financing Interest Rate (10 Year Treas + 300bps) Permanent Financing LTV Amortization Period (years) Land Lease Rate (years 6 - 10) Land Lease Rate (years 11 - 15) Land Lease Annual Escalation

Garage Spaces 0 0 0 0

Sqft. 600 850 1050 1200 184 954 $1,199 $1.26 22,300 $15.00 3.0% 3.0% 175,500 4,500 16,000 $95.94 $120.00 $30.00 $1,243,829 7.0% 5.0% 70.0% 25 4.0% 6.0% 2.5%

Estimate of FMV at Completion Tax Appraisal - % of FMV Mils

$31,089,002 85.0% 22.8869

SOURCES: Debt Financing Equity

$20,891,621 $8,953,552

TOTAL SOURCES

$29,845,173

USES: Vertical Hard Cost of Construction Land Development Costs Net of DIA (see land development budget) GC Overhead & Supervision (9.0%) Construction Contingency (3.0%) Impact Fees Architecture Clubhouse Fixtures & Furnishings Financing Costs (including doc stamps, title insurance and legal) Construction Interest (based on total investment and 15 month build out) Property Taxes during Development Other Soft Costs

$22,149,106 $1,499,033 $2,128,333 $709,444 $1,154,543 $112,500 $300,000 $373,820 $1,096,810 $35,584 $286,000

TOTAL USES

$29,845,173

Average Rent $895 $1,095 $1,295 $1,395

Rent Per SF $1.49 $1.29 $1.23 $1.16

Cost $/SF $99.50 $96.25 $92.00 $112.50

10.

Submit a preliminary operating pro forma estimating the development’s operating income and expenses for a period of time (minimum 10 years) after completion to demonstrate financial feasibility, and should include the following: Projections of sales and/or leases over time. This should also provide information on anticipated sale/lease rates for the commercial and residential uses, including vacancy contingency through time. Estimates of project operating expenses (including property taxes, insurance and maintenance costs), annual debt service, and marketing and sales costs. Gross Income, Net Operating Income, Developer Cash-Flow before taxes, and Return on Investment to project partners and investors. See attached operating pro formas.

10.

Atlantic Village (Block 2) Grocery/Drug Store & Bank Rental Cash Flow Pro Forma Delray Beach, Florida Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Year 11

COMMERCIAL RENTAL INCOME: Grocery/Drugstore Bank Vacancy Loss (10%)

144,000 112,000 (25,600)

144,000 115,360 (25,936)

144,000 118,821 (26,282)

160,000 122,385 (28,239)

160,000 126,057 (28,606)

160,000 129,839 (28,984)

160,000 133,734 (29,373)

160,000 137,746 (29,775)

200,000 141,878 (34,188)

200,000 146,135 (34,613)

$230,400

$233,424

$236,539

$254,147

$257,451

$260,855

$264,360

$267,971

$307,690

$311,521

Management @ 5% Replacement Reserves

11,520 6,912

11,671 7,003

11,827 7,096

12,707 7,624

12,873 7,724

13,043 7,826

13,218 7,931

13,399 8,039

15,385 9,231

15,576 9,346

Total Operating Expenses

18,432

18,674

18,923

20,332

20,596

20,868

21,149

21,438

24,615

24,922

$211,968 6.7%

$214,750 6.8%

$217,616 6.9%

$233,815 7.4%

$236,855 7.5%

$239,986 7.6%

$243,212 7.7%

$246,534 7.8%

$283,075 9.0%

$286,599 9.1%

120,226 42,132

117,850 44,509

115,339 47,019

112,687 49,672

109,885 52,474

106,925 55,434

103,798 58,560

100,495 61,864

97,005 65,353

93,319 69,040

$162,358 1.31x

$162,358 1.32x

$162,358 1.34x

$162,358 1.44x

$162,358 1.46x

$162,358 1.48x

$162,358 1.50x

$162,358 1.52x

$162,358 1.74x

$162,358 1.77x

1 6.7%

1 6.8%

1 6.9%

1 7.4%

23,403 6.8%

23,403 6.9%

23,403 7.0%

23,403 7.1%

23,403 8.3%

39,717 7.8%

Total Effective Rental Income OPERATING EXPENSES:

Net Operating Income Return on Total Assets DEBT SERVICE: Interest on Debt Financing Principal Pmt on Debt Financing

Total Debt Service Debt Service Coverage Ratio CRA Land Lease Payments (4% yrs 6-10, 6% yrs 11-15) Return on Total Assets (net of lease payments)

Net Cash Flow Equity Investment Cash on Cash Return Return on Equity

($1)

$49,609

$52,391

$55,256

$71,456

$51,094

$54,225

$57,451

$60,772

$97,314

$84,524

($944,250)

$49,609

$52,391

$55,256

$71,456

$51,094

$54,225

$57,451

$60,772

$97,314

$84,524

5.3% 9.7%

5.5% 10.3%

5.9% 10.8%

7.6% 12.8%

5.4% 11.0%

5.7% 11.6%

6.1% 12.3%

6.4% 13.0%

10.3% 17.2%

9.0% 16.3%

Atlantic Village (Blocks 5 & 13) Residential Rental & Commercial Rental Cash Flow Pro Forma Delray Beach, Florida Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Year 11

RESIDENTIAL RENTAL INCOME: Gross Potential Rent Vacancy % Vacancy Loss Concession % Concessions

2,653,560 20.0% (530,712) 0.0% 0

2,733,167 10.0% (273,317) 0.0% 0

2,815,162 7.0% (197,061) 0.0% 0

2,899,617 7.0% (202,973) 0.0% 0

2,986,605 7.0% (209,062) 0.0% 0

3,076,203 7.0% (215,334) 0.0% 0

3,168,489 7.0% (221,794) 0.0% 0

3,263,544 7.0% (228,448) 0.0% 0

3,361,450 7.0% (235,302) 0.0% 0

3,462,294 7.0% (242,361) 0.0% 0

Rent - Residential

2,122,848

2,459,850

2,618,100

2,696,643

2,777,543

2,860,869

2,946,695

3,035,096

3,126,149

3,219,933

334,500

344,535

354,871

365,517

376,483

387,777

399,410

411,393

423,735

436,447

$2,457,348

$2,804,385

$2,972,972

$3,062,161

$3,154,025

$3,248,646

$3,346,106

$3,446,489

$3,549,883

$3,656,380

11,040 7,360 4,600 74,249

11,371 7,581 4,738 76,477

11,712 7,808 4,880 78,771

12,064 8,042 5,027 81,134

12,426 8,284 5,177 83,568

12,798 8,532 5,333 86,075

13,182 8,788 5,493 88,657

13,578 9,052 5,657 91,317

13,985 9,323 5,827 94,057

14,405 9,603 6,002 96,878

Rent NNN - Commercial (CRA partnership) Total Rental Income OTHER INCOME: Application & Admin Fees Pet/Damage Fees Late Fees Commercial CAM Reimb. (insurance & taxes) Total Other Income

$97,249

$100,167

$103,172

$106,267

$109,455

$112,738

$116,120

$119,604

$123,192

$126,888

$2,554,597

$2,904,552

$3,076,143

$3,168,427

$3,263,480

$3,361,385

$3,462,226

$3,566,093

$3,673,076

$3,783,268

108,703 580,609 75,105 55,200 20,000 9,000 40,000 55,200 64,400 18,400 55,200

111,964 598,027 86,924 56,856 20,600 9,270 41,200 56,856 66,332 18,952 56,856

115,323 615,968 92,488 58,562 21,218 9,548 42,436 58,562 68,322 19,521 58,562

118,783 634,447 95,262 60,319 21,855 9,835 43,709 60,319 70,372 20,106 60,319

122,346 653,481 98,120 62,128 22,510 10,130 45,020 62,128 72,483 20,709 62,128

126,017 673,085 101,064 63,992 23,185 10,433 46,371 63,992 74,657 21,331 63,992

129,797 693,278 104,096 65,912 23,881 10,746 47,762 65,912 76,897 21,971 65,912

133,691 714,076 107,218 67,889 24,597 11,069 49,195 67,889 79,204 22,630 67,889

137,702 735,498 110,435 69,926 25,335 11,401 50,671 69,926 81,580 23,309 69,926

141,833 757,563 113,748 72,023 26,095 11,743 52,191 72,023 84,027 24,008 72,023

Total Operating Expenses Expense Ratio

$1,081,817 42.3%

$1,123,837 38.7%

$1,160,509 37.7%

$1,195,324 37.7%

$1,231,183 37.7%

$1,268,119 37.7%

$1,306,163 37.7%

$1,345,347 37.7%

$1,385,708 37.7%

$1,427,279 37.7%

Net Operating Income Return on Total Assets

$1,472,780 4.9%

$1,780,714 6.0%

$1,915,635 6.4%

$1,973,104 6.6%

$2,032,297 6.8%

$2,093,266 7.0%

$2,156,064 7.2%

$2,220,745 7.4%

$2,287,368 7.7%

$2,355,989 7.9%

1,035,737 429,827

1,013,746 451,818

990,631 474,933

966,332 499,232

940,790 524,774

913,942 551,622

885,720 579,844

856,054 609,510

824,870 640,694

792,091 673,473

$1,465,564 1.00x

$1,465,564 1.22x

$1,465,564 1.31x

$1,465,564 1.35x

$1,465,564 1.39x

$1,465,564 1.43x

$1,465,564 1.47x

$1,465,564 1.52x

$1,465,564 1.56x

$1,465,564 1.61x

1 4.9%

1 6.0%

1 6.4%

1 6.6%

56,291 6.6%

56,291 6.8%

56,291 7.0%

56,291 7.3%

56,291 7.5%

95,532 7.6%

Total Revenue OPERATING EXPENSES: Insurance Property Taxes Management @ 3.5% Repairs & Maintenance Landscaping Pool Payroll & Related Expenses General & Administrative Utilities Marketing & Advertising Reserves

DEBT SERVICE: Interest on Debt Financing Principal Pmt on Debt Financing Total Debt Service Debt Service Coverage Ratio CRA Land Lease Payments (4% yrs 6-10, 6% yrs 11-15) Return on Total Assets (net of lease payments) Net Cash Flow Equity Investment Cash on Cash Return Return on Equity

1 ($1)

$7,215

$315,149

$450,070

$507,539

$510,442

$571,410

$634,208

$698,890

$765,513

$794,892

($8,953,553)

$7,215

$315,149

$450,070

$507,539

$510,442

$571,410

$634,208

$698,890

$765,513

$794,892

0.1% 4.9%

3.5% 8.6%

5.0% 10.3%

5.7% 11.2%

5.7% 11.6%

6.4% 12.5%

7.1% 13.6%

7.8% 14.6%

8.5% 15.7%

8.9% 16.4%

11.

Submit a financing plan which includes a proposal for securing construction and permanent financing for the project. The financing plan should account for all debt and equity investment required to fund the project as well as an analysis of the projectâ&#x20AC;&#x2122;s return on investment, debt service coverage ratio and other financial information that will indicate the financial strength of the proposed development. Third party evidence of an ability to secure financing such as a preliminary financing commitment letter or letter of interest from a lending institution or other primary source of investment financing must accompany the RFP response. A firm financing commitment from a lending institution or other source of investment financing will be required prior to the closing of the sale of the land, or as otherwise stipulated in negotiated agreements between the proposer and the CRA. The required debt and equity financing, return on investment, debt service coverage ratio and other financial information is found in the information provided in sections 9 and 10. The letters of interest from lending institutions follow.

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12.

Submit information that permits an understanding of the Proposer’s organizational structure, its members, qualifications and financial strength. The CRA reserves the right to research the background of each principal with respect to both credit and police records. The Proposer must submit a signed consent form, attached herein, as part of the proposal. The following information isrequiredin the submission for this paragraph. a. Description of the legal organizational structure of the Proposer (and its parent entity, if it is a subsidiary). If the Proposer intends to create a separate entity solely for the purpose of developing the proposed project, then each partner or stockholder or member should describe their respective legal organizational structure. Although the property will be entitled as one project, for financing purposes, two entities will be formed to develop the property. Jones New Urban Delray Commercial, LLC will develop the block between SW 8th and 9th Avenues. Jones New Urban Delray Residential, LLC will develop the two blocks between SW 6th and 8th Avenues. Both entities are joint ventures between Milton Jones Development Corporation, Sean Jones Corporation and New Urban Communities Corporation. b. Identification of the Proposer’s principals, partners, officers, or co-venturers including names, addresses, telephone and fax numbers and federal business identification numbers. The principals of Milton Jones Development Corporation are Milton Jones and Barbara Jones. Milton Jones Development Corporation 540 NW 4th Avenue Fort Lauderdale, FL 33311 Tel. 954-467-1800 Fax. 954-467-4044 Tax ID: 65-0050744 The principal of Sean Jones Corporation is Sean F. Jones. Sean Jones Corporation 540 NW 4th Avenue Fort Lauderdale, FL 33311 Tel. 954-467-1800 Fax. 954-467-4044 Tax ID: 20-3347003 The principals of New Urban Communities are Kevin Rickard and Tim Hernandez. New Urban Communities Corporation

398 NE 6th Avenue Delray Beach, FL 33483 Tel. 561-279-8706 Fax. 561-272-3951 Tax ID: 65-0840042 c. Information concerning the relevant experience of the Proposer and key project personnel, including a listing and description of past projects. The Proposers collectively have a great deal of experience in Delray Beach and with commercial and residential projects within community redevelopment areas. Each one of these developments had a major impact on the neighborhoods or corridors in which they were built. Following is a list of relevant projects:

Developer

Project

City

Description

Jones Jones New Urban New Urban

Shoppes on Arts Avenue Regal Trace Courtyards of Delray Atlantic Grove

Fort Lauderdale Fort Lauderdale Delray Beach Delray Beach

New Urban

Old Palm Grove

Delray Beach

New Urban New Urban New Urban New Urban New Urban New Urban

Coda East Village Osceola Woods Belle Isle Botanica Greenwich

Delray Beach Fort Lauderdale Jupiter Wilton Manors Jupiter Jupiter

New Urban New Urban

Mirabella Lyman Village

Miramar Lantana

35,191 sf retail (CRA) 408 apartments (CRA) 32 townhomes (CRA) 48,000 sf office/retail, 55 townhomes, 20 lofts (CRA) 11 townhomes, 33 single family homes (CRA) 36 townhomes (CRA) 32 townhomes (CRA) 146 townhomes (CRA) 51 townhomes, 9 live work units 123 single family homes 105 townhomes, 18,000 sf office/retail, 21 apartments 10 live work units and 147 townhomes 43 townhomes and 16 single family homes

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Key project personnel:

Key Project Personnel Name

Company

Education

Licensing / Professional Certification

Area of Expertise

Milton Jones

Milton Jones Development Corporation

BS Political Science, Florida A& M University

FL Certified General Contractor, FL Licensed Real Estate Broker, FL Licensed Mortgage Borker

Builder/developer focused on infill and redevelopment (commercial and residential).

Sean Jones

Milton Jones Development Corporation

BBA Accounting, Baylor University JD University of Florida

Certified General Contractor, Member of FL Bar, FL Licensed Real Estate Broker, FL Licensed Mortgage Broker

Commercial and residential real estate negotiations, real estate lending, review of title and contractual review of various types of real estate and construction contracts.

Kevin Rickard

New Urban Communities Corporation

BS Business Administration, Western Michigan FL Certified General Contractor University

Tim Hernandez

New Urban Communities Corporation

BS Urban Planning, Michigan State University

Urban Planner (AICP)

MM Kellogg School, Northwestern University

Brian Grossberg

New Urban Communities Corporation

BS Accounting, University of Florida Master of Accounting, University of Florida MBA Duke University

Certified Public Accountant

Professional Affiliations

Builder/developer focused on infill, redevelopment and National Association of Home Builders traditional neighborhood development. Florida Home Builders Association Urban Land Institute Congress for the New Urbanism BOD Goldcoast Builders Association Builder/developer focused on infill, redevelopment and Urban Land Institute traditional neighborhood development. Congress for the New Urbanism American Planning Association City of Ft. Lauderdale CRA Advisory Board Abacoa Partnership for Community Palm Beach County Transportation Performance Standards Committee Finance, transaction execution, accounting, and tax.

d. A minimum of three (3) professional references. As to Milton Jones Development Corporation and Sean Jones Corporation, below are the references which are as follows: Bank of America/US Trust 401 East Las Boulevard, 21st Floor Fort Lauderdale, FL 33394 Attn.: Frederick F. Perry, Senior V. P. (954) 765-2192 Facsimile (954) 765-2199 Cellular: (954) 873-1544 Paradise Bank 540 North Federal Highway Fort Lauderdale, FL 33304 Attn.: Philip G. McNally, Executive Vice President (954) 764-8778 John Barranco, A.I.A. Barranco Gonzalez 1915 Southeast 4th Avenue Fort Lauderdale, Florida 33316 Office: (954) 961-7675 Facsimile: (954) 961-7685 Stuart Cohen, A.I.A. Cohen Freedman Encinosa 8085 NW 155th Street Miami Lakes, Florida 33016 Office: (305) 826-3999 Facsimile: (305) 826-4155 As to New Urban Communities, below are the references which are as follows: Michael Busha, Executive Director Treasure Coast Regional Planning Council 421 SW Camden Ave, #1 Stuart, Florida 33494 Office (561) 221-4060 Facsimile (561) 221-4067 Joseph Erwin, Senior Vice President/Team Leader

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Regions Bank 525 Okeechobee Boulevard, Suite 700 West Palm Beach, FL 33401 Office (561) 837-8224 Fax (561) 837-8260 Drew Gaines, President Pro Frame Contracting, Inc. Office (954) 979-9998 Facsimile (561) 979-9919 Donaldson Hearing, ASLA Cotleur and Hearing 1934 Commerce Lane, Suite 1 Jupiter, Florida, 33458 Office (561) 747-6336 Fax (561) 747-1377

e. In addition, the proposer must make available for inspection at his or her place of business, a current (audited, if available) financial statement of the proposing entity which includes a balance sheet, a three-year statement of past income, and a projected one-year income statement for the current fiscal year for the proposer (and its parent entity if it is a subsidiary). If the proposing entity is to be created specifically for the intended project or if the proposing entity is less than three years old, then each partner or stockholder must submit its own financial statement as described above. The requested financial information is available for inspection at the offices of Milton Jones Development, Sean Jones Corporation and New Urban Communities. f. Information regarding any legal or administrative actions, past or pending, that might impact the capacity of the proposer (or its principals or affiliates) to complete the project must be disclosed. Disclosure of any bankruptcies, foreclosures and other legal actions past or pending by any of the above or related entities during the past ten years must be made with the RFP. Milton Jones Development Corporation has no bankruptcies, foreclosures and other legal actions past or pending during the past ten years. Sean Jones Corporation has no bankruptcies, foreclosures and other legal actions past or pending during the past ten years.

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Affiliated entities of New Urban Communities have been involved in several legal actions stemming from the housing crash. Cases with City National Bank and SunTrust Bank in Florida have been settled and are therefore immaterial. Cases with Bank of America and Harris Bank are pending in Illinois. Both of these cases are considered immaterial from a financial exposure perspective.

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