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Council PKT 05-03-2016 Special 4446" CITY OF ,'�..... Federal Way CITY COUNCIL SPECIAL MEETING AGENDA Council Chambers - City Hall May 3, 2016 — 5:30 p.m. www.cityoffederalwa y.corn 1. CALL MEETING TO ORDER 2. PLEDGE OF ALLEGIANCE 3. STUDY SESSION — Town Center Hotel Request for Proposal (RFP) Response • Introduction- Economic Development Director Tim Johnson • Development Proposal—Cadius Partners • Council Questions/Discussion 4. CITIZEN COMMENT PLEASE COMPLETE A PINK SLIP AND TURN IT IN TO THE CITY CLERK PRIOR TO SPEAKING. When recognized by the Mayor, come forward to the podium and state your name for the record. Please limit your comments to three minutes. The Mayor may interrupt comments that exceed three minutes, relate negatively to other individuals, or are otherwise inappropriate. 5. EXECUTIVE SESSION a. Sale or Lease of Property pursuant to RCW 42.30.110(1)(c) b. Potential Litigation pursuant to RCW 42.30.110(1)(i) 6. ADJOURNMENT City Council Meetings are wheelchair accessible; and assisted listening devices for use in the Council Chambers are available upon request to the City Clerk. Regular Meetings are recorded and televised live on Government Access Channel 21. To view Council Meetings online please visit www.cityoffederalway.com. 1 CITY STAFF REPORT DATE: April 27, 2016 TO: Mayor and City Council SUBMITTED BY: Tim Johnson, Director, Economic Development POLICY QUESTION: Did the Submission of the Response to the Request For Proposal Fulfill the Requirements? RECOMMENDATION: Accept and File BACKGROUND: The City began the process to solicit interest for the Town Center Hotel in January 2016. The effort began with a Request for Interest, (RFI). This took place through a direct letter campaign from the mayor to owners, operators and developers of hotels. Nearly 70 individuals and/or organizations across the country (15 were from the Pacific Northwest) that have built, owned or operate “Upper Mid-Scale” hotels in communities the size of Federal Way were identified and sent a RFI package. The purpose of the RFI was to determine the amount of interest and to ascertain any questions before publishing the Request for Proposal, (RFP). Key to this was to ascertain any concerns with a timeline to respond to the RFP along with the elimination of the extensive amount of work to provide development pro-forma. This action bore success as a dozen interested parties requested to receive the RFP. In addition to this action, during this period of time Brian Wilson, Ch ief of Staff attended in January a daylong event on hotel development in Portland. He provided information to multiple parties at the event to illustrate our interests. Additionally, Tim Johnson attended an event in March on hotel development in Seattle. Again, providing information to multiple parties. While attention was given to ensure the necessary market information was available, such as the hotel study, staff also responded to questions in a timely manner to support interested parties. During this time, it was learned that the marketplace for hotel development is very busy. While the RFI/RFP process aided the City, to help get the word out to potential developers, owners and operators, the question remained - how many would respond? City staff met Mr. Greg Allen of Cadius Partners in August 2015. Mr. Allen was exploring other development options in Federal Way at that time. However, economic development staff presented the option of the Town Center. The opportunity perked his interest. Key to his interest was the city’s investment in the Performing Arts and Event Center (PAEC) and the proximity to the proposed location for a hotel and place making center. Mr. Allen and his team asked a variety of questions. They included excavation of the property and the type of soil(s); height of buildings ; background on type of building materials to be used on the Performing Arts and Event Center and the range of the sale price. Additionally, he asked if they could submit their development vision as it pertains to the rest of the Town Center. While, Cadius Partners, Gustin Property Group and Mosaic Architecture, Planning and Design submitted the only proposal for a hotel, their proposal certainly illustrates a commitment to fulfilling the vision of not only the hotel but the rest of the Town Center. See Attachment A 2 DISCUSSION: The following enumerates the submission and its fulfilling of the requirements of the RFP.  All proposals must be received by mail or hand delivered to Tim Johnson. It was received via Federal Express on the morning of Friday 15th  Package must be clearly marked and properly identified. The package was marked and properly identified.  Respondents to this RFP must submit the following in a sealed package identified as the “Town Center Hotel Proposal”: The Proposal shall be submitted with one (1) bound copy as the original and one (1) unbound and one (1) copy in a digital format on either a thumb drive or CD and shall include: All of the items requested were received as instructed by the City of Federal Way. The proposal fulfilled the requirement of completeness and clarity.  Proposal must be organized and identified with Sections consistent with submittal requirements identified in the RFP. The proposal is organized and identified with Sections consistent with submittal requirements identified in the RFP  Requested sources of project financing. It was identified that they would take a mini permanent loan until the hotel stabilizes then refinanced to long term loan. They identified that they would use either Wells Fargo or US Bank. Additionally they identified that they would provide equity to $6 to $7 million through their investors which would equate to 30% to 40% of the total. Collateral was not identified. See background information provided on page 12.  Estimated job information The response identified that construction is estimated to create 75-125 Full-Time Equivalent (FTE) jobs. Hotel operations are estimated 25-30 FTE or equivalent jobs. The restaurant and lounge is estimated to provide another 15 to 30 jobs. There may be more if another restaurant/lounge is added to the hotel. See background information on provided on page 12.  Requested project descriptions 1. Executive Summary of Proposal A. Provide a summary letter that introduces your firm, or team, stating your specific interest in the Town Center Hotel project, outlining your firm or team’s experience and qualifications, summarizing the hotel development and operations proposed. Included – See information that covers all of the requested materials provided on pages 1 & 2. 2. Table of Contents Included – See information provided on page 3. 3 3. Company and Team Member Information including: A. Descriptions of each component partner of the proposing entity, including history, size of hotel portfolio, locations of hotels, markets or communities served and executive leadership. Information and background on the principals and their firms can be found on pages 4-9. B. Previous experience working with local governments on hotel development including background and project references. Information and background on hotel development and ownership can be found on pages 4-9. C. Name, address, contact information and all relevant background information including experience on similar projects of the project team members. Information and background information can be found on pages 4-9. D. The roles and responsibilities for each team member including architects, engineers, contractors, potential equity and debt partners, and others as appropriate. The background information on each of the principals can be found on pages 4-9. E. The primary point of contact who can answer any questions posed by the City regarding aspects of the proposal. The contact information can be found on page 3. 4. Provide conceptual plans relating to your firm’s proposed development concept to include: A. Project site plan, exterior elevations, dimension of site and building(s) and dimensions. The plan illustrates the location on site, however does not identify dimension (length and width) of the building other than total square footage and as proposed, it would be six stories with a penthouse/lounge. B. Identification of footprint (square footage and acreage of property required). The footprint of the hotel is identified in multiple renderings included in the proposal. C. Presentation of proposed major building material, finishes, and colors. The proposal identifies that the building materials for the hotel will be concrete, glass, wood and stucco. D. A rendering(s) of hotel on site. There are 14 architectural renderings of the hotel in relation to the PAEC and surrounding area. 4 E. A description of how the hotel will physically connect to the Performing Arts and Community Events Center. Please map. The site plan for the hotel is illustrated in architectural renderings. It illustrates the sidewalk connection and vehicular movement. F. A landscaping plan and designation of public and semi-public areas including addressing a city concept of a 60-foot wide promenade across the southern portion of the property and pedestrian connectivity from the hotel to a City proposed “Grand Staircase” on the southern portion of the property. The response provides information on the promenade and “Grand Staircase.” It can be found on page 11. G. Identify parking requirements for hotel and how you plan to address them either through a reciprocal agreement or through on site design or other means. Details are illustrated in the narrative and through the architectural renderings. However, further documentation will need to be formulated. H. Provide vehicular and pedestrian circulation patterns, including parking lay- outs. The vehicular and pedestrian circulation patterns are identified in the proposal through the architectural renderings. Further documentation will need to be developed, to understand traffic patterns to and from the PAEC through proposed site development I. Provide timeline(s) for project development. Describe any expected development phasing. e.g., preconstruction, construction and post construction. The timeline for “Best Case” is identified in the proposal on page 11. It illustrates that hotel construction begins in March 2017 with completion scheduled for May 2018. J. Provide references from other communities related to your previous projects. Provide contact information, address, phone and e-mail. The proposal provides a variety of references, from hotels in Arizona, California, Colorado, Illinois, Montana, Texas and Washington to development projects, including one similar project, the Great Northern Town Center project in Helena. 5. Provide conceptual plans relating to your firms proposed operational concepts to include: A. Identify amenities to be provided, for example; pool, fitness center, business center, conference rooms - number and size, bar, restaurant and lobby size. The response provides information on amenities found on page 11 but further details will need to be provided. B. Provide thoughts on synergies with the Performing Arts and Event Center and hotel on such items as food and beverage, room block arrangements and event coordination. The response provides information on amenities found on page 11 but further details will need to be provided. 5 C. Describe the type of brand(s) e.g., dual brand to meet pricing and product segmentation (if any) and its corresponding rate structure. Identified in the proposal are proposed hotel chains as Hilton, Hyatt and Marriott and their brands for an Upper-Midscale product. D. Describe the breakdown of hotel room mix by category and types of room e.g., king or queen suites, conference suites, one and two bedroom, extended stay. The proposal illustrates 120-140 room facility. King bed rooms will comprise 45-65%; double queen rooms will comprise 30-40% one bedroom size will comprise 1-3%; studio suites will comprise 1-3%; and the hotel will have and meet all the required ADA units. See page 12. 6. Sources of Financing and Economic Information. A. Identify Funding Sources to be utilized for the development and operations The proposal illustrates financing to be mini permanent financing providing 35 to 40 percent in equity to the tune of $6 to $7 million. Then, after the hotel stabilizes, they will look to permanent financing. The proposal did not request incentives. The proposal illustrated an estimated $18 to $21 million hotel, excluding contribution to the staircase. B. Estimates of construction and hotel part-time, temporary and full time permanent jobs. As previously illustrated, Construction is estimated to create 75-125 FTE jobs. Hotel operations are estimated at 25-30 FTE’s. The restaurant and lounge is estimated to provide another 15 to 30 jobs. 7. Provide examples of how your firm has help promote tourism in the communities where your hotels are located. The proposal identifies their history of working to promote tourism in communities. See page 13. 8. Pricing for the property will be negotiated at $30 to $34 per square foot. Identify your interest in this range. In discussion of what they thought fair value would be, a submission of $27 per sq. ft was illustrated. The city paid $25 per sq. ft. for the property. See page 13. POLICY CONSIDERATIONS: Does the response to the RFP fulfill the requirements to accept it? As identified above, the response provided to the RFP does fulfill the requirements. FISCAL CONSIDERATIONS: Does the respondent team have the capacity to fulfill the development of the hotel project? Staff is working to procure this information as the RFP process did not include a request for company financials until a selection occurred. Respectfully submitted, Tim Jo nson Economic Development Director Attachment A: RFP response by Cadius Partners, Gustin Property Group and Mosaic Architecture 6 Federal Way Town Center Hotel Proposal 1 Executive Summary Cadius Partners Limited and Gustin Property Group in conjunction with Mosaic Architecture submit this proposal in response to the City of Federal Way Town Center Hotel Request for Proposal (“RFP”). This proposal expresses our interest in and vision for developing the Town Center Hotel as well as balance of the Town Center III parcel. Our proposal includes the development of an approximate 130 room upper-midscale to upper scale select service or lifestyle hotel adjacent to the Performing Arts and Events Center, development of the “Grand Staircase” and a cohesive assortment of retail, dining, housing, office, and public facilities on the balance of the Town Center III parcel. Development Team Cadius Partners Limited (“CP”) is a privately held real estate development company based in Bozeman, Montana. Since inception in 2004, Cadius Partners have been involved in a wide variety of development and construction including subdivision, residential, office, retail, mixed-use and hospitality development. CP Founding Principal, Greg Allen, is a 25-year veteran of the real estate development and construction industry; he brings the experience of involvement in more than $200 Million worth of development and construction to the team. Mr. Allen will serve as the primary point of contact for this proposal. Gustin Property Group, LLC (“GPG”) is a real estate development company based in Albuquerque, New Mexico. GPG has been involved in the hospitality business since 1978; having served in many capacities of the development process including, site selection, design, construction, and financing. In addition, GPG Managing Member, Robert Gustin, has extensive knowledge of hotel operations from his years managing a variety of properties. His comprehensive experience in the hospitality industry is vital to the development team. Mosaic Architecture, P.C. is an architecture firm based in Helena, Montana. Since their inception in 1994, Mosaic has compiled a portfolio of impressive quality and breadth. Mosaic brings a core philosophy of collaborative design, superior function, and cultural awareness to the design process; combined these traits results in inspired spaces with unique character and relevant design. Jeff Downhour, AIA, LEED, is the Principal Architect behind the proposed design concepts. He brings more than 20 years of commercial and residential design experience to the team. Mosaic, which previously has an office in Seattle is does not presently have an architect that is licensed in Washington. Upon the selection of our proposal Mosaic will review their licensing there. Hotel and Site Concept Our desired site is directly adjacent to a “drop-off loop” for the PAEC, the “Grand Staircase” and promenades extending north into the envisioned Town Center III development and northwest towards the PAEC. The “Grand Staircase” and the proposed promenades will create a vital linkage to the Town Square Park, the surrounding business, retail and dining establishments and the transit center. The hotel footprint we have proposed is a 14,000 square foot “L/V” shape providing maximum views toward Mount Rainer and overlooking the promenade. The total site required for the hotel and 50% of the required parking for the hotel extends north towards 314th Street providing room for 72 parking spaces and circulation encompassing 56,000 square feet. Our proposed hotel is estimated to be approximately 75,000 square feet. Structurally it will be a wood framed tower on a concrete podium. The podium allows for maximum flexibility for the first floor which will exclusively house public spaces and back of house operations of the hotel. The tower is expected to be four stories and if possible it will be topped with a penthouse that would contain the lounge. The exterior finishes of the hotel are proposed to be a mixture of stucco, wood, metal and glass applied to create a modern aesthetic. The 2 building height without the penthouse will be approximately 59 feet at the parapet and if we are able to add the penthouse the top of it would 68-70 feet. In the best case scenario, we would project commencing design in August 2016 and completing construction and opening of the hotel and “Grand Staircase” in late Spring 2018. Hotel Amenities and Operations Our concept is for a 120-140 room hotel. A brand has not been selected for the hotel but it will be a Hilton, Marriott or Hyatt product. We anticipate having a third party operator for the restaurant and lounge. We believe this is best to maximize the profitability and profile of the restaurant. Independent operation will give it a feel of a local restaurant located within a hotel rather than a hotel restaurant. The hotel will have standard amenities such as a small to medium sized meeting room, board and/or media rooms, fitness center, restaurant, lounge and an ample lobby area. Depending on the brand and the typical guest profile identified through our further feasibility work we may or may not have a swimming pool. In the case we do not have a poll we will further enhance the fitness center and other public spaces. The room mix will be determined according to brand requirements and our feasibility study; we anticipate having standard king making up 45-65% of the rooms, one-bedroom suites making up 1-3% of the rooms, studio suites making up 1-3% of the rooms and double queen rooms making up 30-40% of the rooms. We anticipate working with the PAEC on use of the meeting space for hotel meetings and coordinating rooms for events and performances at the PAEC. Close coordinate between the hotel and PAEC will be important for maximizing each’s benefit to and from the other. Financing, Labor and Land Price We work with several national and regional lenders but we have done the most business with Wells Fargo Bank and US Bank. Obviously the hotel construction will be financed. Typically, the construction finance will carry into a mini-perm loan of two or three years giving the hotel time to stabilize before refinancing. We usually provide 35-40% of the project cost as equity which for this project will be between $6,000,000 and $7,000,000. We have a group of regular investors that we work with but we also seek and accept new investors on a project by project basis. We expect to provide 75-125 full-time equivalent jobs through the design and construction process. Once completed we expect the operation of the hotel to generate 25-30 and the restaurant and lounge to generate 15-30 full-time equivalent jobs. Tim Johnson stated in an email that a price of $27 per square foot for the land was acceptable. We believe this to be a reasonable price for the land. That being said we fully expect to participate in the cost of the “Grand Staircase” and in the event a parking garage is eventually built we would agree to some sort of long-term use agreement to defray the cost. Closing We believe this to be an outstanding opportunity to be part of creating a town center for Federal Way. Our experience with all product types and facets of development makes us uniquely qualified to develop the hotel and the balance of the Town Center III parcel. Thank you for considering our proposal. 3 Contact Information Primary Contact Cadius Partners Limited Principal-Greg Allen 8401 Wagon Boss Road Bozeman, MT 59715 Phone: 406.599.0516 Developer Gustin Property Group Principal-Robert Gustin 2655 Pan American NE Albuquerque, NM 87190 Phone: 505.341.0515 Architect Mosaic Architects Principal-Jeff Downhour 428 N Last Chance Gulch Helena, MT 59601 Phone: 406.449.2013 Table of Contents Development Team………………4 Hotel and Site Concepts………....10 Project Timeline…………………......11 Hotel Amenities and Operations.…..11 Financing and Job Creation…….........12 Tourism Promotion………………...….....13 Land Pricing………………………………..13 Parking Calculation Chart…………………..14 Conceptual Design Package………….….....15 4 About Cadius Partners Limited Cadius Partners is a privately held real estate development company based in Bozeman, Montana. Since our inception in 2004, we have been involved in a wide variety of project types including hospitality, residential, office, land, subdivision and retail development. W e believe that consistency and integrity are key to successful business relationships and superior outcomes. Our network of outstanding business partners and philosophy of putting the communities we serve first combine to provide the collaboration needed to produce consistent and exceptional developments. Relevant Development Portfolio HAMPTON INN AND SUITES | SALINAS, CA | 105 ROOMS HAMPTON INN AND SUITES | SPOKANE VALLEY, WA | 106 ROOMS BAXTER MEADOWS | BOZEMAN, MT| MIXED USE SUBDIVISION MEADOW CREEK | BOZEMAN, MT | RESIDENTIAL SUBDIVISION 1001 OAK | BOZEMAN, MT | MIXED USE RETAIL FACILITY STARBUCKS COFFEE | SALINAS, CA | FOOD/BEVERAGE FACILTY LOT 19 CONDOS | BOZEMAN, MT | CONDOMINIUMS TALBACH HOUSE | BOZEMAN, MT | ATTACHED CONDOMINIUMS PLATINUM RIDGE | BOZEMAN, MT | CONDOMINIUMS Greg Allen co-founded Cadius Partners in 2004. He oversees all consulting and real estate development projects for the company. He has over 25 years of experience in the construction and real estate development industry and has been instrumental in the development of over $200 million worth of property. Mr. Allen previously worked for Engle Homes in Colorado and both Martel and Edsall Construction Companies as a project manager before founding his own company 15 years ago He has a Master's Degree in Real Estate and Construction Management from the University of Denver and a B.S. in Finance from Washington Adventist University. Developer 5 1001 OAK | BOZEMAN, MONTANA An award-winning, commercial, mixed-use development. The project is to have a total of five buildings consisting of over 75,000 square feet. Mosaic Architecture was the design architect for this facility, which fronts a major arterial street and contains office and retail space. The design theme was new western urbanism clustering the buildings to create defined outdoor plazas and pedestrian areas highlighting the stream corridor which bisects the property. Prior to the development of this project the City of Bozeman only allowed buildings outside of downtown to have pitched roofs. Mr. Allen pushed to allow flat roofs and building up to 3 stories for this project through the PUD process. HAMPTON INN AND SUITES | SALINAS, CALIFORNIA A 105-Room property located just of US 101 near Downtown Salinas. The hotel is atypical and built on a podium, this allowed us to build on a difficult site adjacent to a reclamation ditch administered by four government agencies. All back of house services and 30 parking spaces are on the lower level. Our compact design also allowed us to create an extra pad on which we built a fee-standing Starbucks. HAMPTON INN AND SUITES | SPOKANE VALLEY, WASHINGTON A 106-Room property located near the Spokane Valley Mall and adjacent to Interstate 90. This hotel is in a mixed development center with office, medical, hospitality, and dining facilities adjacent to the Spokane Valley Mall. It is a great performer and consistently receives outstanding reviews from guests. This property was developed with Gustin Property Group. 1001 Oak and Bozeman Reference City of Bozeman Chris Saunders Assistant Director-Planning 406.582.2260 Hampton Inn and Suites Reference City of Salinas Courtney Grossman Community Development 831.758.7206 Developer Selected Works 6 About Gustin Property Group Gustin Property Group LLC (GPG) is a real estate development company based in Albuquerque, New Mexico. Robert Gustin, the Managing Member of Gustin Property Group LLC has overseen all aspects of the development process including site selection, financing, design and construction. Mr. Gustin has in-depth knowledge of the hospitality industry as a result of his personal experience in hotel management, as well as his family’s involvement in hotel development which began in 1978. Prior to joining his family business, Mr. Gustin worked as a Senior Tax Manager with KPMG Peat Marwick where he specialized in corporate taxation. While at KPMG, Mr. Gustin was selected to be a member of the KPMG National Technical Peer Review Team. Mr. Gustin graduated with honors from the University of Montana in 1986 with a degree in Business Administration – Accounting Emphasis. Recent Hospitality Development Portfolio HOMEWOOD SUITES BY HILTON | LAKEWOOD, CO | 110 ROOMS HOTEL INDIGO | HOUSTON, TX | 131 ROOMS RIVER TERRACE INN | NAPA, CA | 106 ROOMS SHERATON CHICAGO NORTHBROOK | NORTHBROOK, IL | 161 ROOMS HOME2 SUITES BY HILTON | LAKEWOOD, CO | 107 ROOMS HAMPTON INN & SUITES | SPOKANE, WA | 105 ROOMS DOMAIN HOTEL | SUNNYVALE, CA | 138 ROOMS (RECENTLY SOLD) DOUBLE TREE BY HILTON | TEMPE, AZ | 270 ROOMS, 30,000 SQ.FT. CONFERENCE CENTER COMFORT INN | MISSOULA, MT | 95 ROOMS HOME2 SUITES BY HILTON | FARMINGTON, NM | 97 ROOMS HOME2 SUITES BY HILTON | LAKEWOOD, CO | 116 ROOMS CHAPARRAL SUITES | SCOTTSDALE, AZ | 312 ROOMS (CONVERTING TO EMBASSY SUITES) FAIRFIELD INN | STEAMBOAD SPRINGS, CO | 66 ROOMS TOWNPLACE SUITES | OAK CREEK, WI | 110 ROOMS (OPENING MAY 2017) Project Reference City of Napa Scott Klingbeil-City Planner 1600 First Street Napa, CA 94559 Phone: 707.257.9502 Developer 7 About Mosaic Mosaic is a continued collaboration of two Montana Architects, Ben Tintinger and Jeff Downhour that began a number of years ago in Bozeman under the mentorship of Architect Don McLaughlin. After establishing a new practice in Helena, Montana in 1994, the firm has evolved into the design-driven and community-oriented studio of Mosaic Architecture. With a staff of ten, including five registered architects, Mosaic’s studio is located on Last Chance Gulch in Helena, Montana. Through a design philosophy that is grounded in the idea of collaborative design, Mosaic is committed to providing our clients with exceptional design solutions and high performance buildings. As architects, we engage all participants in learning about a place through its history, its people and its connections, and together, envision a place that defines its own character. Our ability to solve problems, coordinate and organize the project team, and provide site-appropriate design, has been the cornerstone of our ability to deliver successful projects throughout the Northwest. Mosaic excels at bringing teams of people together to accomplish community projects. We take a great amount of pride in our project management skills and approach to successful architecture. That success is grounded in excellent communication. To create designs that truly respond, we must listen and learn from the local culture, the people, & the surroundings of a place, both current and historical. Creating an appropriate architecture for our clients is our passion. An integral part of that commitment is the inclusion of sustainable design principles in all our projects. Not only do we have that obligation to our clients, we also feel we have that obligation to our neighborhoods, cities and surrounding environment. Sustainable design can be most simply thought of as designing buildings to have the most positive and least negative long-term impacts on people, their community, natural resources and the environment. Using sustainable design principles, we can design buildings that are healthier for people, improve productivity, lower energy and maintenance costs, and reduce environmental degradation. Principal Architect-Jeff Downhour, AIA, LEED With over 20 years of experience, Jeff has been responsible for the design of projects totaling over $100 million in construction costs. These projects cover a vast array of project types from residential design to entire campus master planning efforts. In addition, Jeff has extensive experience in sustainable design, gleaned from his role as project architect in charge of sustainable design for the Montana State University EpiCenter (an $80 million science and student center that was designed, but did not proceed through to construction.) Jeff is a graduate of Montana State University, where he received his Bachelor of Architecture degree. He spent two years working with CTA Architects and Engineers in Billings, prior to working with McLaughlin Architecture (now Place Architecture) in Bozeman for six years where he led design as an associate of the firm. He joined DT Architecture as a Principal in 1998 and helped lead the growth of the firm to become a leading architectural firm in the State of Montana. Jeff continues as Principal of Mosaic Architecture where one of his ambitions continues to be incorporating sustainable principles into the design work that the firm produces. Architect 8 GREAT NORTHERN TOWNCENTER | HELENA, MONTANA The Great Northern area in Helena was an undeveloped abandoned rail yard in the downtown district comprising over 11 acres. The area has significant historical meaning to the city in that it served as the major rail connection to the rest of Montana and the United States. Nine years ago, a local developer with a vision for urban infill and an appreciation for well-defined architecture, purchased the land from the city of Helena. With the goal of creating a destination place within Helena as an extension of the downtown district the developer initiated a master plan effort for retail, office, housing above main floor stores, an entertainment area including a carousel, and a quality hotel. The area is central to Helena and is surrounded by city services and support amenities. Unlike more common fringe developments, the Town Center would incorporate structured parking, in-place utilities and zero lot-line development. • Master plan Design Began Oct. 1997 • Ahmann Block and Discovery Block - Completed Fall 2000 • Mountain West Bank - Completed February 2001 • Expedition Block - Completed Spring 2002 • ExWorks! - Children’s discovery center—in construction • Lewis & Clark Montana Experience—Completed Fall 2005 ARCHIE BRAY FOUNDATION MASTER PLAN, ARTIST STUDIO COMPLEX | HELENA, MONTANA Founded in 1951, the Archie Bray Foundation is a nonprofit, educational institution dedicated to the enrichment of the ceramic arts, offering residencies and specialized workshops to ceramic artists from around the world. Located on the 26-acre site of the former Western Clay Manufacturing Company, the Bray facilities include year- round resident studios, site-specific sculpture, community class facilities, a sales gallery, a summer warehouse gallery, extensive kiln facilities, and a retail ceramic supply business. In the spring of 2000 the Bray board took a giant step forward in proceeding with long awaited plans to enhance, preserve and stabilize the facilities that make up the Archie Bray Foundation Campus. The focus of this work is to study the facilities within the Bray, including all the existing buildings of the brickyard, and provide a master plan that defines how these buildings will be reused and how new buildings will be incorporated into the campus. Size: 20 acres Year: 2005. Project Reference Alan Nicholson-Owner Helena, Montana 406.443.2160 Architect Selected Works Project Reference Archie Bray Foundation Steve Lee-Current Director 406.443.3502 9 About ESM ESM is a tightly knit team of professionals including civil engineers, surveyors, planners and more, with a proven track record of success. Since 1982, they’ve been offering development services to private sector clients and municipalities throughout the Pacific Northwest and beyond. They are a creative, technologically-advanced civil engineering firm with a complement of other in-house professions and resources. Selected Project Point Ruston | Washington ESM is helping to transform this superfund site into Northwest's premier waterfront, Built GreenTM urban community. Point Ruston offers living, dining, shopping, entertainment, and recreation on 97 acres along nearly a mile of Puget Sound shoreline. We seek bids from local, regional and national contractors for all of our projects. The hard bid process at time can be difficult but with a strong design team we are able to alleviate many of those concerns. We have also used a guaranteed maximum price structure for several projects. There is no perfect delivery method. As part of our process in selecting general contractors to bid our projects we request that they seek bids from local suppliers and contractor for all areas of construction. When the general contractors submit their bids to us we ask for a list of local contractors they have contacted and a list of those who submitted bids. This allows us to insure that they are seeking local bids. Typically, with hotels you have a group of contractors have experience with the product and the size to complete the project in aggressive timelines. They are the most competitive with their bids. As an example with our recent construction in Salinas, California each bidder requested bids from local contractors. Of the contractors contacted only a small number submitted bids and of those who did submit bids only one or two had competitive bids but it is always our goal to seek their involvement. Civil Engineer Contractors 10 Hotel and Site Concepts The attached designs and renderings are intended to show not only our concept for the proposed hotel development, but for the development of the whole Town Center III parcel. The schematic designs answer most of the questions raised in RFP Section Four. The proposed location for the hotel is shown adjacent to the "Grand Staircase," promenades, and the PAEC. The hotel footprint is projected to be roughly 14,000 SF requiring an overall lot size of 56,000 square feet to accommodate parking a circulation. The hotel will have four wood framed floors and a possible penthouse built over on concrete podium for a total of 75,000 square feet. There will be no guest rooms on the first floor both for security and to allow flexible and ample space for the public spaces and back of house operations. The location and building design were chosen for several reasons. First, we wanted to create a clear connection between the hotel, the promenades, the PAEC and "Grand Staircase." The L/V shape gives us rooms that parallel the promenade from the “Grand Staircase” to the PAEC. We see this area having a high amount of activity during events and during normal daily use with people using the stairs to take pictures, eat lunch and just watch people or view Mount Rainer. Secondly, the shape was selected to provide more rooms and the proposed penthouse lounge with a clear view of Mount Rainer and provide the balance of the rooms with east west and north views as well. Finally, the building angle was chosen to mimic the angle of the "Grand Staircase" and promenade as they connect with the PAEC. Meeting rooms and a restaurant will be located on the southern end of the hotel providing further synergies with the PAEC via outdoor dining and break out areas from the meeting room. All this will serve to tie the development of the PAEC, hotel and Town Center III to the Town Center Park and Transit Center below. The "Grand Staircase" as envisioned, is the key linkage between the Town Center III and PAEC area and the 316th Street which is about 20 feet lower. It is imperative that guest and patrons feel like they can move easily from the Town Center Park and Transit Center to PAEC and hotel as well as other development on the Town Center III parcel. In our overall plan we also include a focal point stairway in the southeast corner of the Town Center III parcel that will provide a direct link to what we understand is the location of the light rail station on the corner of 317th Street and 23rd Ave. We believe the design encourages pedestrians to explore the whole site which will generate much needed foot traffic for the retail businesses we hope will eventually locate in the development on the Town Center III parcel. The unique design of the staircase essentially extends the Promenade down to the 316th Street level providing a direct line of site to the PAEC entrance for those arriving on foot from 316th Street. The Staircase will be a place to linger and enjoy the views and activity in the area. The public plaza above the staircase serves to connect the hotel, PAEC, and potential city hall building, as well as providing direct access to potential retail, residential, and office buildings. Primary vehicular access will be from 314th Street providing direct routes to all site structures, while simultaneously allowing the southern portion of the parcel to be a pedestrian-only zone. Proposed Development and Operations 11 Project Timeline The Following is a tentative Best Case Timeline for the hotel Project: City Council Approval August 2016 Overall site and hotel design Begins September 2016 Concurrent Site Plan and Construction Document approval February 2017 Hotel Construction Begins March 2017 Grand Staircase Construction Begins October 2017 Hotel and Grand Staircase Construction Completed May 2018 Generally speaking, the best time to open a hotel is a few weeks before Mother’s Day. The timeline we have is tight but this would be ideal. Every month later into the year requires greater operating reserves to get through the off-season. Starting construction in the Spring allows the framing to take place during the drier summer months which allows construction to be more efficient. Hotel Amenities and Operations Our concept is for a 120 -140 room lifestyle/select service hotel. We believe this product type best complement the performing arts center, the location and the long term plans for the immediate area. The hotel will be flagged with a Hilton, Marriott or Hyatt brand. Right now the brands we are considering are Hilton Garden Inn, Canopy by Hilton, AC by Marriott, Hyatt Place and Hyatt Centric. Each of these are excellent brands and are supported by what we believe to be the best hotel companies. We do not want a typical suburban hotel footprint our design is more urban and the amenities will reflect that. We also feel that these brands give us the best ability to achieve the rates we need. The amenities vary from brand to brand. In general, we will provide the amenities that are standard to our product class. This would include some meeting space, a fitness center, perhaps a pool (these are not widely used by business travelers), restaurant and lounge, business center, media/board rooms, and ample lobby area. The meeting room provided will be from 650 – 2000 square feet. The obviously a meeting room on the smaller end of that range will not be dividable and one the larger end will likely be dividable into three separate spaces. A board room and/or Media Rooms will also likely be provided. These are wired spaces for smaller meetings or social events. It will be beneficial for us to be able to work with the management of the performing arts center on a standard rate for our use of the meeting facilities and to coordinate our calendars so that we book group and meeting during times when the performing arts center will be underutilized. As developers we provide larger than required fitness centers. We feel this is a key amenity for business travelers. Fitness centers can be as small as 300 square feet. We don’t believe that is an adequate size. We typically provide a space that is 600 – 800 square feet in size. An option we are exploring is providing a small steam room or sauna for both men and women as another fitness amenity. Over time hotel pools have become smaller and smaller while the ADA requirements for them Proposed Development and Operations 12 have gone up. As mentioned above business traveler typically do not use the pools provided. Pools are mainly used by leisure family travelers. We will assess the market and determine whether or not a pool is a necessary amenity. The brands we are looking at offer several different food and beverage options. Many of the brands we are looking at allow you to have a restaurant that is run and managed by a third party. We believe this is an ideal model for this location. As the site develops out ideally the restaurant would be of a quality that people living and working in the area we frequent the restaurant. Typically, restaurants run as part of a hotel don’t create much excitement. We believe a restaurant with its own identity and the right operator will be an outstanding success. A third party operator has greater incentive to work for the success of the restaurant given that it is their only source of revenue. If possible with the building height restrictions, we may build the restaurant on the top floor to take advantage of the views of Mount Rainer and create an even nicer dining experience. We envision the restaurant operator working closely with the performing arts center to provide their catering needs. The lobby will have a contemporary feel with lots of glass that will allow guest and hotel visitors to look out over the grand staircase, have meetings and just people watch. The size of the lobby varies by brand but he space will be ample. The hotel will have a mix of standard king rooms 45-65%, one bedroom suites 1-3%, studio suites 1-3% double queen rooms 30-40% and required ADA units. The actual nit mix will be based on final design, brand requirements and market needs. Financing and Job Creation We work with many different national and regional lenders. Given the size and cost of the project we would likely work with Wells Fargo Bank or US Bank but we wait until the parameter of the deal are better known and then work with whomever offers us the best terms on interest rate and loan structure. For equity we have a stable of regular investors that we work with on or projects and we very often bring in new investors for a small amount of a deal so that we can become comfortable working with each other. Each deal is structured with a special purpose entity and we would likely have one entity with which we would acquire the land and another with which we would develop the hotel. While we are very interested in the hotel project alone, our large goal would be to negotiate the acquisition of all the land in Town Center III and possible Town Center IV and complete the build out of the whole area. During the construction period it is reasonable to assume that the project will create 75 – 125 full-time equivalent jobs. This includes local construction and service jobs as well as manufacturing jobs for the materials and products used in construction of the hotel. The operation of the hotel will generate about 25-30 full-time equivalent jobs. A typical monthly payroll would be between $50,000 and $60,000 per month. The restaurant and lounge would provide another 15 – 30 Full time equivalent jobs. Proposed Development and Operations 13 Tourism Promotion It is hard for a hotel to drive tourism. But, that being said, we will be making a significant investment into the success of the Town Center with the hotel and possible other development. In light of this we will expect our sales staff to work tirelessly to inform guest and potential guest of the qualities of the surrounding area and Federal Way in general. A key to our continued success is repeat business. As such it is always our goal to provide the best accommodations in or product class and in each market we work in. Our staff are always ready with dining and entertainment options for our guests and exhibit a guest first attitude of friendliness and accommodation. Restaurants, entertainment, shopping and accessibility are all important to the business and leisure traveler. We pride ourselves in providing outstanding accommodations in all the markets we serve. The Federal Way Town Center if executed correctly can be a place of unique local character that provides a great place to live, shop and lodge. We believe Federal Way can create this unique and local identity. The location is great for business travelers in the south Seattle –Tacoma region given the easy access to regional business area and SeaTac via Interstate 5, Pacific Highway and Highway 167. Business travel will only increase with development of the Town Center and the redevelopment of the Weyerhaeuser Campus. Federal Way benefits from being a young city allowing great opportunity to quickly develop that unique character. The PAEC, Town Center Park and the proposed hotel are big investments in developing that identity. However, their success is dependent on how the rest of the area develop. Each element must receive and provide support that encourages their success and fosters like kind development so that the vison of the Town Center can become a full reality. That is why we as developers are interested in acquiring all the Town Center III and possibly the Town Center IV land so that we can develop the area in such a way that insures the success of the hotel and the whole Town Center area. Land Pricing Tim Johnson represented in an email that the property could be purchased at $27 per SF. We think this is a reasonable price. AS proposed we only need 56,000 square feet for the hotel. That being said, if we were able to negotiate the purchase of the balance of the Town Center III parcel we would expect to participate in the construction and costs of the grand staircase and have a use and cost sharing agreement for any parking structure built in the future. This would obviously make the real cost of the land higher but we believe our participation in those elements is crucial. Proposed Development and Operations Federal Way usesparking requirements Office Use1 per 300 sf Hotels1 per room Residential1.7 per unit Restaurant1 per 100 sf Retail1 per 300 sf reductions per FWRC 19.130.020 (a), (b), ©, and (d) PARKING CALCULATIONS Parking Requirement NotesAreaSF/parking spaceParking Stalls PAEC parking req's taken from plan171.00 Hotel 1 per room x 1/2 required to be provided, assume 120 rooms60.00 Office SE 12,000 footprint x 4 floors48,000300.00 160.00 Office NE 20,000 sf footprint x 3 floors60,000300.00 200.00 Public Building 100,000300.00 333.33 Retail NE building 20,000300.00 66.67 Retail -1st floor residential 40,000300.00 133.33 Retail - future east of NW garage 8,000300.00 26.67 Residential block 40,000 sf x 4 floors/1900891.70 151.11 Residential- above future 161.70 27.20 Restaurant - allowance 20,000100.00 200.00 BASE PARKING REQUIRED 1,529.31 20% reductions reductions estimated per FWRC 19.130.020 (b)up to 20%(305.86) Shared reductions reductions estimated per FWRC 19.130.020 (a)assume 20%(305.86) Handicap Spaces Required 1-25 spaces req's 1 ADA1 - included in total Total Parking Spaces Required 917.59 Total Parking Spaces Provided - after garage construction912.00 PAEC on site 80 Hotel on site 32 Surface 40 NW garage 380 East garage 260 Under residential 120 TOWN CENTER HOTEL PROPOSAL CO N C E P T U A L D E S I G N P A C K A G E 4 . 1 5 . 2 0 1 6 Pr o p o s e d H o t e l S i t e Ho t e l D r o p O f f To w n C e n t e r P l a z a Ci t y H a l l - P u b l i c B u i l d i n g Gr a n d S t a i r PA E C Offi c e B u i l d i n g Pa r k i n g S t r u c t u r e Mi x e d U s e B u i l d i n g Mi x e d U s e - R e t a i l a n d Re s i d e n t i a l Re s i d e n t i a l R o o f - t o p Ga r d e n s Be l o w G r a d e P a r k i n g Ac c e s s Fu t u r e M i x e d U s e ( w i t h Pa r k i n g G a r a g e ) Pa r k i n g S t r u c t u r e O v e r F i r s t Fl o o r R e t a i l PL A N L E G E N D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 TOWN CENTER HOTEL PROPOSAL 2 6 1 3 4 5 14 10 11 12 791011 8 12 13 S 3 1 6 t h S T R E E T S 3 1 4 t h S T R E E T 23rd AVENUE SOUTH 20th AVENUE SOUTH TOWN CENTER HOTEL PROPOSAL S 3 1 6 t h S T R E E T S 3 1 4 t h S T R E E T GRAND STAIR PAEC PLAZAHOTEL PLAZATOWN CENTER MAIN STREET HOTEL DROP OFF HOTEL GROUND FLOOR: -LOBBY -LOUNGE -CONFERENCE -RESTAURANT PUBLIC PLAZAPEDESTRIAN FOCUSED RETAIL-RESIDENTIAL CENTER WITH UNDER-GROUND PARKINGHOTEL PARKING INITIALLY, RETAIL-RESIDENTIAL BUILDING WHEN PARKING GARAGE COMPLET-ED ACCESS EASEMENT THROUGH HOTEL LOT HO T E L I N F O R M A T I O N - S I T E A R E A = 5 6 , 0 0 0 S F i n c l u d i n g a c c e s s ea s e m e n t -7 2 P A R K I N G S P A C E S P R O V I D E D -H O T E L F O O T P R I N T 1 4 , 0 0 0 S F -C O N N E C T I O N T O P A E C & G R A N D S T A I R -G R O U N D F L O O R L O B B Y , L O U N G E , D I N - IN G A N D M E E T I N G A R E A S R E I N F O R C E AC T I V E U R B A N S T R E E T Z O N E HOTEL PENTHOUSE LOUNGE &MEETING ROOMS TOWN CENTER HOTEL PROPOSAL AE R I A L V I E W F R O M S O U T H W E S T PA R K I N G G A R A G E P A E C R E T A I L - H O U S I N G H O T E L P U B L I C B U I L D I N G TOWN CENTER HOTEL PROPOSAL SO U T H E L E V A T I O N EA S T E L E V A T I O N SO U T H D I N I N G P A T I O & PL A Z A C O N N E C T S T O P A E C DROP-OFF & LOBBY FRONT MAIN TOWN CENTER STREET AND PLAZA ST U C C O W O O D M E T A L P A N E L GL A S S ST U C C O W O O D M E T A L P A N E L GLASS TOWN CENTER HOTEL PROPOSAL PR O J E C T I M A G E S TOWN CENTER HOTEL PROPOSAL PR O J E C T I M A G E S