REQUEST FOR PROPOSALS (RFP) No. NP-13518 CLEANTECH MANUFACTURING CENTER

Request for Development Proposals

RFP No. NP-13518

CleanTech Manufacturing Center

http://www.crala.net/internet-site/Projects/Central_Industrial/CleanTech...

20-Acre Industrial Development Opportunity

Central Industrial Redevelopment Project Area

KEY RFP DATES
RFP Issued – September 3, 2010
Pre-Submittal Meeting & Site Tour - October 1, 2010
Written Questions Due – November 1, 2010
RFP Due Date – December 3, 2010
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RFP No. NP-13518
REQUEST FOR PROPOSALS (RFP) No. NP-13518

CLEANTECH MANUFACTURING CENTER

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
1.1 The Vision
1.2 Development Opportunity and Objectives
1.3 Site Location
1.4 Development Team
1.5 Pre-Proposal Conference/Site Tour
1.6 Schedule
2. CLEANTECH MANUFACTURING CENTER DEVELOPMENT OPPORTUNITY SITE
2.1 The Opportunity
2.2 Goals and Objectives
2.3 The Site
2.4 CRA/LA and the City of Los Angeles Involvement
2.5 Background Information About CRA/LA
3. RFP PROCESS
3.1 Submission Requirements
3.2 Development Proposals
3.3 Deadline Date for Submission of Proposal
3.4 Selection Process
3.5 Evaluation Criteria
3.6 City and CRA/LA Non-Liability and Related Matters
3.7 Equal Opportunity/Affirmative Action Requirements
3.8 Insurance Requirements
3.9 Standard Terms and Conditions
3.10 Other CRA/LA Policies
4. GENERAL RFP NOTICES, CRA/LA POLICIES, REQUIREMENTS, FORMS, AND
SUPPLEMENTAL INFORMATION
4.1 CRA/LA Policies for RFP Process
4.2 CRA/LA Development Policies / Requirements
4.3 List of Exhibits
4.4 Appendix
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RFP No. NP-13518
1. EXECUTIVE SUMMARY
1.1 THE VISION
The City of Los Angeles aims to become a national center for industrial manufacturing
businesses devoted to job creation through ecologically sustainable processes and
products. To advance this vision, The Community Redevelopment Agency of the City of Los
Angeles (CRA/LA) seeks development of a 20-acre site to create an industrial development
characterized by quality employment opportunities, sustainability, and innovation in
manufacturing for the 21st century. The target start date for construction is 2013.
1.2 DEVELOPMENT OPPORTUNITY AND OBJECTIVES
CRA/LA invites Industrial Users and Development Teams to submit their conceptual
development proposals, qualifications, business and financing plans for the purchase or
long term ground lease and development of the 20-acre CleanTech Manufacturing Center
(CTMC) development site (the “Site”).
Competitive submissions are expected to result in the development of a state-of-the-art
industrial complex engaged in the sustainable manufacturing, assembly, and/or
development of clean technologies and products (the “Project”).
CRA/LA will ONLY consider those respondents with Development Teams deemed capable
of realizing the following objectives:
a. Attract, to the satisfaction of CRA/LA, established and newly emerging firms
committed to the sustainable manufacture, assembly, and/or development of
products in clean energy generation, green building materials and furnishings,
clean water technology, reduced emission vehicle technology, advanced recycling
of waste or use of organic materials, mass transit solutions, healthy food and
related businesses, and similar cleantech initiatives (“cleantech firms”);
b. Upon receipt of Certificate of Occupancy, provide a minimum of 100 net new
employment opportunities for Los Angeles residents, in particular from the local
residential area, at wage rates above the Living Wage, for a minimum of five
years.
c. Design and develop a modern manufacturing facility incorporating best practices
in a green building, at a minimum of Leadership in Energy and Environmental
Design (LEED) Silver certification or higher and innovation in energy generation
or use;
d. Achieve direct sale or ground rent commensurate with the development
opportunity to compensate CRA/LA appropriate value for the Site and at a
minimum, to repay or refinance the CRA/LA’s $15 million acquisition note at
closing.
In additional to the above minimum requirements, as a desirable component to the preferred
submission, the CRA/LA seeks to provide a target total of 250 jobs by year 5 after Certificate
of Occupancy (an additional 150 jobs above the minimum 100 jobs). CRA/LA will give
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favorable consideration to Development Teams who can demonstrate that they can meet or
exceed the immediate minimum 100 jobs and the 250 jobs target.
While the preferred option for CRA/LA is to convey the entire 20 acre site, CRA/LA will
consider submissions for a portion of the site, as long as the repayment requirement of the
CRA/LA’s $15 million acquisition note is met.
1.3 SITE LOCATION
The Site is located at the intersection of Santa Fe Avenue and 15th Street in the eastern
portion of the greater Downtown Los Angeles area. Situated in Council District 14 and the
Central Industrial Redevelopment Project Area, the total parcel area is approximately
900,000 square feet (about 20 gross acres), as defined in the attached Site map (Exhibit B).
The Project anchors the southern portion of the Los Angeles CleanTech Corridor (Corridor).
CRA/LA encourages the development of clusters of clean technology and green-focused
companies to complement and leverage City environmental initiatives, such as the Port of
Los Angeles Clean Air Action Plan, the City’s Private Sector Green Building Program,
Department of Water and Power’s Renewable Portfolio Standards, and Measure R, a $40
billion measure to fund critically needed transit projects. The Corridor is proximate to the
California Institute of Technology, University of California at Los Angeles (UCLA), University
of Southern California (USC) and the Jet Propulsion Laboratory. Efforts are underway to
establish cleantech business incubator and research and development facilities at Hewitt
and 5th Streets in the Artist-In-Residence District in the Corridor.
Prior to acquiring the Site from the State of California in 2008, CRA/LA conducted extensive
cleanup and remediation of the Site, formerly known as the Crown Coach Brownfield
Demonstration Site. Under the terms and conditions of an environmental oversight
agreement with the California Department of Toxic Substances Control (DTSC), the Project
development parcels have been cleared by regulatory agencies for immediate development.
1.4 DEVELOPMENT TEAM
CRA/LA believes the attraction of cleantech firms, whether established or newly emerging, is
best assured by the successful implementation of the Project by a team of professionals
familiar with the development process for modern industrial buildings. To this end,
Development Teams responding to this RFP are required to submit their proposals in one of
the following two categories:
Category Description
User Development Team Qualified cleantech business owner(s) / user(s)
Master Development Team Traditional development organizations with
demonstrated interest from targeted tenants.
The preferred Development Team(s) will possess proven experience in the following:
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a. Design, construction, and management of LEED-certified modern industrial and
manufacturing facilities;
b. Development and financing of comparably sized projects under direct ownership
or the terms of a long term ground lease; and
c. Business operations or management of cleantech tenants and familiarity with
cleantech manufacturing processes and operations.
1.4.1 Entities
Entities are permitted to be included on more than one Development Team submitting
proposals under this RFP.
1.5 PRE-PROPOSAL CONFERENCE AND SITE TOUR
A non-mandatory pre-submittal conference followed by a tour of the site is scheduled for:
Date / Time: Friday, October 1, 2010; 10:00 a.m.
Place: CRA/LA Downtown Office
448 South Hill Street, Suite 1200
Los Angeles, CA 90013
All interested parties are highly encouraged to attend this meeting. Please submit RSVP’s
and questions by e-mail to Ms. Margie De La Rosa, Contracts Officer, at
mdelarsa@cra.lacity.org. Any changes to this meeting will be posted on the CRA/LA website
at www.crala.org.
1.6 SCHEDULE
It is the desire and intent of CRA/LA to expedite the selection process, followed by the
recommendations to the CRA/LA Board of Commissioners. The following schedule outlines
key deadlines and events for the CTMC RFP process:
Issuance of RFP: September 3, 2010
Pre-Submittal Conference and Tour: October 1, 2010
Questions/Inquiries Due: November 1, 2010
RFP Responses Due: December 3, 2010
The deadline to submit responses to this RFP is Friday, December 3, 2010, at 4:00
P.M. (Pacific Standard Time). Please note that this RFP schedule is subject to change,
and any changes will be posted online at www.crala.org.
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2. CLEANTECH MANUFACTURING CENTER DEVELOPMENT OPPORTUNITY SITE
2.1 THE OPPORTUNITY
CRA/LA is soliciting conceptual development proposals, qualifications, business and
financing plans (“Proposal”) from interested and qualified development or user teams with
relevant and successful operation, development and construction experience, management
expertise, and financial capacity to implement the Project on the 20-acre Site. Development
Teams may include owners/users of the space to be developed.
The Project is envisioned as the southern anchor of the Los Angeles CleanTech Corridor.
The Site is located within the CRA/LA Central Industrial Redevelopment Project Area
(“Project Area”) at the intersection of Santa Fe Avenue and 15th Street in the eastern
portion of the greater Downtown Los Angeles area.
The Site is a prime, industrially-zoned parcel uniquely positioned to provide jobs for those
living in nearby loft and residential developments or for those commuting via local and
regional public transit. Located 18 miles from the Ports of Los Angeles and Long Beach, 12
miles from Los Angeles International Airport, and 35 miles from Ontario International Airport,
the Site enjoys excellent freeway access. Its roadway access offers a strategic location for
logistics and goods movement. The Site shares its easterly property line with an Amtrak
service facility and its southerly property line with the Alameda Corridor, a direct rail cargo
expressway from the Ports to the transcontinental rail network which is serviced by rail yards
within a 3-mile radius from the Site. Union Station, the regional rail passenger transportation
hub for Southern California, is approximately 3 miles north of the Site.
The Site is designated as a City of Los Angeles Brownfield Demonstration Site. CRA/LA in
partnership with the State of California and Alameda Corridor Transportation Authority has
conducted extensive cleanup and remediation of the Site. Under the oversight of the
California Department of Toxic Substances Control (DTSC), the Project development
parcels have been cleared for immediate redevelopment.
2.2 GOALS AND OBJECTIVES
Adopted by the City Council on November 15, 2002, the Central Industrial Redevelopment
Plan includes among its goals and objectives: fostering a healthy industrial environment
attracting new private investment to increase job opportunities, property values, and tax
revenues; encouraging sustainable development in a manner that utilizes precepts of
energy efficiency, renewable energy, water resource conservation and reuse, and
waste/urban runoff management; and eliminating conditions of blight through the
remediation of toxics and contaminated soils in order to provide sites for redevelopment.
The objectives for the Project and this CTMC RFP have been carefully formulated to uphold
those established for the Redevelopment Plan.
The primary objectives for the Project are as follows:
a. Attracting and co-locating cleantech industries with compatible and symbiotic
working relationships to promote the Site and the Los Angeles CleanTech Corridor as a
preferred location for such target users. Space users shall include established or newly
emerging companies with strong cleantech credentials engaged in the sustainable
manufacturing, assembly, and/or development of products related to:
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RFP No. NP-13518
i. Clean energy generation
ii. Green building materials and furnishings
iii. Clean water technology
iv. Reduced emissions vehicle technology
v. Mass transit solutions
vi. Advanced recycling of waste or use of organic materials
vii. Healthy food and related businesses
viii. Similar cleantech initiatives
b. Implementing the Project in a manner that maximizes permanent job creation
incorporating living wage for all employees, provides and maintains a minimum of 100
immediate net new jobs for a minimum of 5 years, aims to reach 250 permanent jobs
by year 5 after the Certificate of Occupancy is issued, and generates opportunities for
upward mobility and career training. Ideal users/tenants will have a strong record of
employee advancement through a range of positions.
c. Integrating best practices in green building and sustainable development in site
planning, building design, and industrial operations. The Project will serve as a model
for environmentally sensitive development by achieving the highest practicable
standards of sustainability, with a minimum of LEED Silver certification. The business
operations of the users/tenants for the Project shall be consistent with the highest
standards in sustainability for both operations and products.
d. Achieving direct sales to provide funds to repay CRA/LA’s $15 million acquisition note
at closing, or generate immediate and long term revenue stream from ground rent to
service the acquisition note.
e. Employing creative strategies to facilitate an orderly phasing of the development to
ensure maximum opportunity to achieve CRA/LA objectives, as well as maximum
flexibility to adapt to changing market conditions and technologies.
2.3 THE SITE
The Site is a 20-acre property located generally south of
Olympic Boulevard, east of Santa Fe Avenue and north
of the newly realigned East Washington Boulevard
within the Central Industrial Redevelopment Project
Area. The Site has frontage on both the newly realigned
15th Street and Washington Boulevard. The
realignment conducted in association with the
completion of the adjacent Alameda Corridor
Transportation Project resulted in the division of the Site
by 15th and 16th Streets into four parcels. All four
parcels are considered part of the Site offered for
development. The Site is vacant of improvements. The
east terminus of 16th Street provides access to the
Amtrak train facility adjacent to the Site and must be
preserved. A map identifying easements on the property
can be found on the RFP website.
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2.3.1 Property Environmental Status
The Site was formerly owned by the State of California as a Brownfields Revitalization
site. During the State’s ownership, surface and subsurface contamination was
discovered. CRA/LA, the State, and the Alameda Corridor Transportation Authority have
since engaged in a series of remediation activities under the oversight of the State
Department of Toxic Substances Control (DTSC). Approximately 46,000 cubic yards of
soil contaminated with heavy metals and other pollutants were removed. All surface
contamination has been excavated. However, perchloroethylene contamination is still
present about 80 feet below the surface.
CRA/LA is now operating a Soil Vapor Extraction and Dual Phase Extraction system to
control and remove the contamination. It is estimated that this operation will take two to
five years to complete. However, the Site has been cleared for immediate development
under the terms of a Project Environmental Oversight Agreement between CRA/LA and
DTSC. When remediation is completed, CRA/LA expects to receive a No Further Action
Letter. The CRA/LA completed the acquisition transaction in April 2008 and is in full
control of the Site and its remediation efforts.
Under the terms of its acquisition agreement, CRA/LA received indemnification
protections from the State of California, which remains obligated for the cost of on-going
remediation and monitoring. The successful Development Team(s) will be required to
administer the monitoring and remediation program subject to State cost reimbursement.
The property is zoned for industrial/manufacturing uses. An Environmental Impact
Report (EIR) was prepared and certified for a previous proposal. CRA/LA anticipates a
subsequent environmental document will be needed, either a supplemental EIR or an
addendum to the EIR.
2.3.2 Neighborhood Context
The Site is located in the heart of a long established industrial area spreading to the east
and south from Downtown Los Angeles. Adjacent uses include an Amtrak service facility
to the east, relatively small industrial buildings between the Site and Santa Fe Avenue,
and, to the north of the Site, a large multi-tenant industrial facility. Industrial vacancy
rates in the area are reported to be less than 2% historically. The industrial area extends
south and east into the cities of Vernon and Commerce.
2.3.3 Property Ownership
CRA/LA owns the entire 20-acre Site.
2.3.4 Current Zoning
The CRA/LA-owned site is currently zoned M-3 as are the third party-owned frontage
parcels along Santa Fe. This zoning designation (heavy manufacturing) allows a wide
array of industrial and manufacturing uses including any use permitted in the more
restrictive “M” zones. It should be emphasized that the requirements of the CRA/LA are
specific as to the type of manufacturing and industrial uses that will be permitted on the
Site. These uses as described previously are focused on cleantech businesses. For
example, while warehousing may be permitted by zoning, the CRA/LA will limit
warehousing on the Site to that developed for and in conjunction with a desired
cleantech manufacturing use. The Site is currently permitted with a floor area ratio (FAR)
of 1:1.5.
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Development Teams are responsible for verifying all zoning information as part of their
submittal preparation work.
It is the CRA/LA’s intention to process a project-specific EIR or an addendum to the
previous project-specific EIR certified for the Site which will enable the proposed Project
to be implemented. Final scope of the EIR will be coordinated with the selected
Development Team.
Additional site information can be obtained at the CTMC website at
http://www.crala.org/ct.
2.4 CRA/LA AND CITY OF LOS ANGELES INVOLVEMENT
2.4.1 Planning and Entitlement Process
The Mayor’s Office, the Office of Councilmember José Huizar, the Department of City
Planning, and CRA/LA are committed to working with the selected Development Team
to achieve all necessary and appropriate entitlements in an efficient manner. In addition,
the CRA/LA will assist with coordinating the other City agencies and departments for
activities such as street dedications, utility relocations, etc. CRA/LA will serve as the lead
agency for CEQA activities and design review. However, it is ultimately the responsibility
of the Development Team to secure all necessary permits, approvals, and entitlements
required for the selected project.
Development Teams further acknowledge that receipt of this RFP does not constitute
approval by CRA/LA or the City of any required permits, applications, or allocations, and
in no way limits the discretion of CRA/LA or the City in the permit review and approval
process.
Development Teams must conduct their own due diligence before submitting a response
and are strongly encouraged to review the following documents related to the planning,
zoning, and entitlements of this area: