REQUEST FOR QUALIFICATIONS (RFQ) HOTEL DEVELOPMENT OPPORTUNITY (SW CORNER OF HUNTINGTON DRIVE / MYRTLE AVENUE IN MONROVIA, CA)
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1 REQUEST FOR QUALIFICATIONS (RFQ) FOR A HOTEL DEVELOPMENT OPPORTUNITY (SW CORNER OF HUNTINGTON DRIVE / MYRTLE AVENUE IN MONROVIA, CA) RFQ ISSUANCE DATE March 2, 2016 RFQ RESPONSE DUE DATE Thursday, March 24, 2:00 p.m. DIRECT QUESTIONS TO Lauren Vasquez, Deputy City Manager lvasquez@ci.monrovia.ca.us Phone: (626) South Ivy Avenue Monrovia, CA Office: (626) Facsimile: (626)
2 PROJECT OVERVIEW Development Opportunity The City of Monrovia (City) is pleased to issue this Request for Qualifications (RFQ) seeking qualified developers who are interested in acquiring and developing a hotel on a vacant lot located at the southwest corner of South Myrtle Avenue and West Huntington Drive in Monrovia, California ( West Huntington Drive and 1109 South Myrtle Avenue). Six adjacent connected parcels (referred to as Property ) together comprise the overall Property in question. The parcels are currently owned by the Successor Agency to the City s former Redevelopment Agency (RDA), and given the State s dissolution of RDAs in 2012, it is now necessary to dispose of the property through a coordinated sale process. Project Objectives The Property is located at one of the most visible intersections in the City. Given that factor, one of the primary objectives we hope to achieve through issuance of this RFQ is the selection of a development partner that will be able to build a high-quality hotel that exhibits unique and special architectural styling elements. Indeed, we would like the project to result in the construction of a premier building in the City. Property Description The subject site contains +/- 77,168 square feet (or +/ acres) of land. The Property is generally rectangular in shape, with +/ feet of frontage along the south side of West Huntington Drive, and +/ feet of frontage along the west side of South Myrtle Avenue. There is also a 10-foot wide alley along the southern boundary of the Property, which is +/ feet in length. Local Hotel Market Performance Data The City identified the Property as a hotel development location after conducting extensive research and analysis. Based on that assessment, there appear to be strong brand possibilities for a potential hotel use at the Property in question. Within a five mile radius of the proposed hotel development site, there are seven (7) hotels operating a total of 1,099 hotel rooms available across the Select Service, Full Service, and Extended Stay categories. The cumulative performance of the seven (7) hotels includes the following: Competitive Set Hotel Performance Overview Year Occupancy ADR RevPAR YOY % Change Percentage ($/room) ($/room) in RevPAR % $ $ % $ $ % % $ $ % % $ $ % Page 1 of 11
3 PROPERTY DETAILS Property Location, Size, & Shape The Property is located at the signalized, southwest corner of West Huntington Drive and South Myrtle Avenue, in the city of Monrovia, County of Los Angeles, and State of California. The situs addresses are West Huntington Drive and 1109 South Myrtle Avenue. The site is also identified as Los Angeles County Assessor Parcel Nos through The subject site contains +/- 77,168 square feet (or +/ acres) of land. The Property is generally rectangular in shape, with +/ feet of frontage along the south side of West Huntington Drive, and +/ feet of frontage along the west side of South Myrtle Avenue. There is also a 10-foot wide alley along the southern boundary of the Property, which is +/ feet in length. Visibility / Accessibility The Property is located at the signalized southwest corner of West Huntington Drive and South Myrtle Avenue, two major arterial streets. The average daily traffic count is 47,097 vehicles per day. The Property has legal and physical access along both West Huntington Drive and South Myrtle Avenue, as well as access through a rear alley. Both West Huntington Drive and South Myrtle Avenue provide two lanes of traffic in each direction, and the Property is also located four (4) blocks north of the on/off ramp for the Interstate 210 Freeway. Utilities All utilities / services are available to the Property. Utility services are provided by the following companies Gas: Southern California Gas Company; Water: City of Monrovia; Electric: Southern California Edison Company; Telephone: AT&T, with other telecommunication options available; Sewer: City of Monrovia. Furthermore, there are curbs, gutters, and street lights along West Huntington Drive and South Myrtle Avenue adjacent to the Property. Topography / Flood Zone The topography of the Property is nearly level at-grade with both West Huntington Drive and South Myrtle Avenue. The site is located in Zone X of the National Flood Insurance Program, Community Panel Number 06037C-1415F. Zone X is considered an area of minimal flooding. Property Taxes The Tax Rate Area for APN is 06208, while the Tax Rate Area for APNs through 906 is The actual tax rate for the Property was per $100 of assessed value for the 2014/15 Tax Year. Page 2 of 11
4 HOTEL DEVELOPMENT LOCAL MARKET CONTEXT Project Strengths Property is situated on a primary commercial corridor with excellent access to the Interstate 210 Freeway. The area has enjoyed historically strong hotel market operating metrics. The City enjoys a very healthy local economy. o In 2015, the City added over 250,000 square feet of new office users. Key Monrovia based companies include the Beckman Research Institute; the City of Hope; the Los Angeles News Group; AeroVironment; Amada Miyachi America, Inc.; Xencor; Ducommun Aero Structures; Oak Crest Institute of Science; ChromoLogic; Yang Ming Marine Transport Corporation; Mt. Sierra College. Key Monrovia based corporate offices include Trader Joe s Corporate Office; Naked Juice Corporate Office; and Tommy s Burger Corporate Office. Project Challenges Property has no freeway visibility. The Monrovia hotel market is considered a secondary market to Arcadia. There are seven (7) established hotel brands (under the Marriott & Hilton flags) that are currently operating within five (5) miles of the Property, including: o Select Service (615 Rooms) Courtyard Marriott (152 Rooms Marriott) Hampton Inn (132 Rooms Hilton) SpringHill Suites (86 Rooms Marriott) Hilton Garden Inn (124 Rooms Hilton) o Full Service (363 Rooms) Embassy Suites (192 Rooms Hilton) DoubleTree (171 Rooms Hilton) o Extended Stay (121 Rooms) Residence Inn (121 Rooms Marriott) There are two hotel projects underway in Arcadia located within 5 miles of the Property. o The two hotel projects include 210 new hotel rooms, including an 89 room Fairfield Inn and a 121 room Residence Inn. Potential Hotel Brand Opportunities Given the current hotel operators in the area, the Property location offers strong hotel brand possibilities, including: o InterContinental Hotels Group: Holiday Inn, Holiday Inn Express, Staybridge Suites o Hyatt Hotels Corporation: Hyatt Place, Hyatt House o Hilton Woldwide: Canvas by Hilton, Home 2 Suites o Starwood Hotels: Sheraton Suites, Aloft Page 3 of 11
5 CONTENT OF PROPOSALS A qualifying proposal must address all of the following points: 1. Cover Letter a. The cover letter signed by the individual authorized to represent / negotiate on behalf of the responding firm. 2. Firm Qualifications a. The overview of qualifications for the firm should include the type of organization, size, professional registration, and affiliations of the company. b. Please include an outline of recent projects completed that are directly related to this project. Responses should demonstrate specific expertise relating to the proposed hotel development opportunity. c. Please provide references from recent related projects, with information to ensure easy contact ( including but not limited to name, address, , and phone number of individual(s) to contact for referral). 3. Development Team Overview a. Responses should include the resume / background of the principal individual(s) from the firm who will be working on this initiative, including the project lead who will be responsible for the day-to-day management of the project. b. Please identify and outline the qualifications for other members of the development team, including any equity partners, planning firms, or design consultants. 4. Demonstration of Financial Capacity a. Responses should demonstrate the financial capacity of the firm to execute the development of a hotel at the Property site. 5. Understanding of and Approach to the Hotel Development Opportunity a. Please include an overview of the firm s vision for the Property and project. b. Provide a summary of the development approach to be taken. c. Other relevant information that each respondent deems appropriate. Page 4 of 11
6 SUBMITTAL GUIDELINES The deadline for receiving proposals is 2:00 p.m. on Thursday, March 24, Respondents are required to submit the following: Three (3) hard-copy proposals in response to the RFQ. A copy of the proposal in an electronic format via either of the following methods: o o CD Flash Drive All responses should be sent to the City by the submittal deadline with the following information located on the front of the submittal envelope: City of Monrovia Office of the City Clerk 415 South Ivy Avenue Monrovia, CA RE: Response If you have any questions or requests for information, please direct those inquiries to: Lauren Vasquez Deputy City Manager City Manager s Office City of Monrovia 415 South Ivy Avenue Monrovia, CA lvasquez@ci.monrovia.ca.us Phone: (626) It is important to note that the City reserves the right to reject any and all proposals. The City will not be liable for, nor pay for any costs incurred by responding firms relating to the preparation of the proposal. An explicit provision of this RFQ is that any oral communication is not binding on the City s RFQ proposal process or selection criteria. Page 5 of 11
7 SELECTION OF FIRMS RFQ Assessment Process The City Manager s Office will review and evaluate the proposals received by the City. As part of the assessment process, the City will place particular emphasis on the qualifications / experience of the individuals assigned to the project; directly relevant qualifications / experience of the firm; proven financial capability; ability to undertake the proposed development; and proposed approach to the project. The following specific criteria will be used in the evaluation process: 1. Qualifications and experience of the individuals assigned to the project. 2. Qualifications and experience of the responding firm. 3. Financial capability. 4. Overall ability to undertake the proposed hotel development opportunity. 5. Approach to the proposed hotel development opportunity. Overall Project Development Process After assessing all of the responses received, the most qualified respondents will be invited to participate in an interview with City staff. Following that interview process, the City will identify a selected firm to partner with on this project. The selected firm will be asked to enter into an Exclusive Negotiation Agreement (ENA) with the City to establish a period of time during which a formal development agreement will be negotiated. The anticipated timeline for these next steps includes the following: RFQ Submittal Deadline: March 24, 2:00 p.m. Interviews w/ Selected Firms: March 28, 2016 through April 8, 2016 Selection of Firm: Week of April 11, 2016 Approval of ENA: April 19, 2016 Page 6 of 11
8 TERMS AND CONDITIONS The following terms and conditions apply to this RFQ: 1. All responses shall become the property of the City. 2. Due care and diligence has been exercised in the preparation of this RFQ and all information contained herein is believed to be substantially correct. However, the responsibility for determining the full extent of the services rests solely with those making responses. Neither the City nor its representatives shall be responsible for any error or omission in this response, nor for the failure on the part of the respondents to determine the full extent of their exposures. 3. The City reserves the right to select firms from the responses received; to waive any or all informalities and / or irregularities; to re-advertise with either an identical or revised scope, or to cancel any requirement in its entirety; or to reject any or all proposals received. 4. A response to this RFQ does not constitute a formal bid, therefore, the City retains the right to contact any / all proposing firms after submittal in order to obtain supplemental information and / or clarification in either oral or written form. Furthermore, an explicit provision of this RFQ is that any oral communication made is not binding on the City s proposal process. 5. The City will not be liable for, nor pay for any costs incurred by responding firms relating to the preparation of any proposal for this RFQ. Page 7 of 11
9 PROJECT SITE Page 8 of 11
10 CITY MAP Page 9 of 11
11 NEIGHBORHOOD MAP Page 10 of 11
12 PLAT MAP Page 11 of 11
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