Mr. Jim Gilmour City of Fargo Planning Department rd Street North Fargo ND 58102

Transcription

1 January 15, 2016 Mr. Jim Gilmour City of Fargo Planning Department rd Street North Fargo ND RE: Redevelopment Proposal 2 nd Avenue North and Roberts Street (TIF District ) Dear Mr. Gilmour, Roers is pleased to submit our proposal for the redevelopment of 3 parcels located at 624 and nd Avenue North and 217 Roberts Street. We have focused our design on delivering a financially feasible solution to 3 important objectives: providing vitally needed parking (478 stalls) to the downtown area, providing affordable housing options (151 apartments most of which are focused on student and young professionals), and preserving and enhancing the 2 nd Avenue N streetscape by adding retail/office space and concealing the parking structure. The combined investment in this project is expected to exceed $48 million dollars. Additionally, the potential construction of 2 skyways will provide vital links to existing buildings currently being considered for redevelopment. We believe this project will transform 2 nd Avenue North into a pedestrian gateway which leads east to an eventual link with Moorhead. We are excited to share more about our project and our vision with the City. We look forward to that opportunity. Sincerely, James P. Roers President Larry S. Nygard Vice President

2 Development Proposal City of Fargo Downtown Redevelopment Project TIF District

3

4

5

6

7

8

9

10

11 Project Schematic Narrative TIF District Overall Concept The overriding design concept for this downtown mixed use development is to support a medium density of mixed uses in downtown Fargo that is consistent with the fabric of the existing downtown areas. Downtown Fargo has experienced exciting growth and redevelopment in recent years and our project will amplify that progress without overwhelming the neighborhood. Our project will connect people and places, strengthen the downtown economy and create an even more vibrant downtown. Programming components within the proposed buildings, which total 386,520 square feet, include the following: 16,740 SF Leasable Retail / Office 15,900 SF Leasable Office 151 Residential Living Units Roof top patios 478 Parking Stalls Skyway connections Streetscape Plaza The proposed buildings utilize 624 and 625 2nd Avenue North as well as 217 Roberts Street. The project boosts retail along both sides of 2nd Avenue North, provides opportunity for ample office space, and high density residential to support the growing demand for walkable living destinations throughout Downtown Fargo. These two mid-rise buildings are linked by a pedestrian and automobile skyway on 3rd and 4th floors across 2nd Avenue to optimize the use of the 624 2nd Avenue North lot. Redevelopment Goals Mixed Use In addition to providing 478 stalls of parking, the project provides a balance of commercial and residential uses emphasizing the streetscape connection on the ground level, and views to downtown from the apartments. Primary uses include office, retail, and three styles of rental residential targeting students, young professionals, and 2-story loft style luxury living. Proximity to downtown and NDSU s professional program buildings make this development a desirable location for students and professionals alike. Urban Scale This mid-rise development provides a higher level of density in Downtown Fargo, and an overall height that vertically steps-up from the adjacent existing downtown building fabric; matching the height of the Post Office, Black Building, and Graver Inn Apartments. Streetscape and Plaza improvements including landscaping planters, street trees for sidewalk shading, lighting, public seating, attractive signage, and larger areas of window glazing will enhance the pedestrian experience along 2nd Avenue North and improved alley way. Streetscape elements described along this infill project link this development to

12 Project Schematic Narrative TIF District (continued) other higher density mixed use areas of downtown by creating a continuity of experience from one scale to another for a perception of connection and shorter distances to encourage walkability. Pedestrian viewpoints capture the experience of the City, providing an impression of a more vibrant Downtown. Parking The parking structures totaling (478) parking stalls is concealed behind the rhythmic exterior façades and is connected between the two mid-rise buildings via a 3rd and 4th floor pedestrian and vehicular skyway link. Vehicle access into the structure will be from Roberts Street to prevent traffic congestion along 2nd Avenue N and preserve the retail streetscape created along 2nd Avenue N. Service and loading areas will be handled either through the parking structure entry from Roberts Street North, or via the alley. The concept leaves open the option of expanding the parking structure to include the Dillard properties to the North and also provides the option of connecting to the Black Building with a pedestrian skyway across the alley. Material & Design Architectural characteristics, elements, and materials will complement the existing palette within the context of Fargo s downtown. Masonry, storefront glazing, and stone will canvas the lower level stories and integrate with more contemporary materials in the upper residential stories of the development.

13 Financials Funding Sources & Uses TIF District Sources of Funds Financing $20,000,000 TIF District ( ) 12,000,000 Highway Funds, State Revolving Fund A 2,500,000 Equity 13,500,000 Total Sources of Funds $48,000,000 Uses of Funds Land B $550,000 Construction C 40,600,000 Professional Fees 2,500,000 Soft Costs 4,350,000 Total Uses of Funds $48,000,000 A The exact source(s) of these funds have not been finalized. B Assumed to be purchased at City of Fargo assessed values. C Includes 2 nd Avenue N skyway

14 Roers Development Entities Relevant Experience TIF District The Roers Development team has successfully programmed, designed, financed, and executed many projects of similar size and complexity as this Downtown Redevelopment project. We have experience working closely with and are adept at quickly analyzing massing, density, parking needs and the financial feasibility of a project. We are accustomed to working with the city regarding zoning, engineering and code related items. We have architecture experience on many complex design-build projects such as the Commons/Landing Apartments in Minot as well as mixed-use facilities such as SGC Apartments. We are familiar with working with municipalities in several communities and have done so through the complex design process on many occasions. Our architects and designers understand the entire project process from idea conception, preliminary zoning and code review, design, construction documents, and construction administration. We work closely with Roers Construction during the entire process to capitalize on construction experience, efficiencies, cost impact of design decisions, and lead item scheduling. Roers has developed several projects in the $20 to $75 million range and has a long track record of financially successful development projects. Roers will typically maintain ownership in projects it develops and that is the case for this project. Our ability to create effective public/private partnerships is second to none in this region. Once complete, Roers, or related entities, manage our properties using our commercial and residential property management teams which have a long track record of proven performance. Roers Construction Roers Construction has a long 35+ year history of completing complex construction projects in the Red River Valley and across the tri-state area. Over the last 10 years approximately half of our projects have been public bid projects with the other half being private projects. At Roers, we work under various project delivery systems such as: Design/Build, General Contracting, or Construction Management. We design and construct buildings, own and manage buildings, and, most importantly, we manage the construction process. We are familiar with working in confined construction spaces and have worked downtown on the JL Beers, Vinyl Taco and NoBull restaurants as well, so we are accustomed to the downtown space challenges. This vast array of experience gives us the expertise to understand the construction process from all sides. We believe that our team has a unique capability to not only deliver the Downtown Redevelopment project on time, but on budget. Within our team s structure, the budgeting process is crucial to all phases of the design. From preliminary design/budget reviews where building cost history helps the designers choose structure and façade options, to the construction document budget where final material choices are made in accordance with current market pricing and availability. This constant budget feedback eliminates the risk of designing up to a bid date, only to find that the project scope and quality has outgrown the budget through the design process. It also allows the owner and design/build team the flexibility to quickly make changes to the design and budget as the need arises. Our team is committed to providing good information to the Owner to facilitate decision making and to eliminate surprises. As owners, we also understand the complications of missed schedules to the building users or cost overruns to the financial analysis. Neither is acceptable and we will work tirelessly to ensure that this project is delivered on time and in budget. We booked $40 million in projects in 2015 and have another $30 million of projects in the works for 2016.

15 Entities Relevant Experience TIF District Roers Property Management: Residential Roers Property Management (RPM-R) is a competent and experienced property management firm. We manage over $120 million in assets and collect $11 million in annual revenues. RPM has been instrumental in helping Roers Development open and lease multiple new construction apartment buildings in Fargo as well as in Dickinson. The company also has experience in providing property management services for a variety of styles of residential housing, including: Multi-Family Residential Housing Student Housing Mainstream Residential Housing Upscale Housing Corporate Housing RPM-R is headquartered in Fargo, North Dakota with rental offices located at each property. We are committed to providing a premier living experience for our customers and continually focus on what drives business for the benefit of the property owners. Roers Property Management: Commercial Roers Property Management Commercial (RPM-C) manages commercial properties throughout North Dakota, South Dakota and Minnesota. Through our experience and focus on relationships, we help our clients achieve their goals of performance and profitability. No matter the type of property, our specialized team offers a full list of services to maintain high tenant retention and maximize revenue. Our services include: Leasing support and administration Design, development and construction collaboration Tenant-owner relations Vendor & service contracts Property maintenance RPM-C currently manages 17 commercial properties in Fargo, Dickinson, Chanhassen, and Detroit Lakes. That s a total of 679,614 square feet of retail/ office/warehouse space and close to $9 million in annual revenues.

16 Project Name: T Loft Apartments Units Fargo, ND Multi-Family Residential Project Cost: $22,000,000 Date Completed: August 2014 Funding Sources: Project Notables: Private 5-story building with underground parking, pre-cast, concrete pedestal structure with wood-framed residential Project Name: Commons/The Landing Apartments Units Minot, ND Multi-Family Residential Project Cost: $52,000,000 Date Completed: August 2014 Funding Sources: Project Notables: Private 4-story building with underground parking, pre-cast, concrete pedestal, structure with wood-framed residential Project Name: SGC Apartments - 75 Units Fargo, ND Multi-Family Residential/Mixed Use Project Cost: $11,000,000 Date Completed: June 2008 Funding Sources: Project Notables: Private 4-story building with underground parking, post-tension, concrete structure

17 Project Name: NDSU Pavek Hall Units Fargo, ND Multi-Family Residential Project Cost: $15,000,000 Date Completed: 1987 Funding Sources: Project Notables: Public 9-story, pan-formed slab concrete structure Project Name: Prairie Stone Retail Center Fargo, ND Retail/Office Project Cost: $9,500,000 Date Completed: July 2014 Funding Sources: Private Project Notables: 2-story steel framed/concrete structure Project Name: Western Center Fargo, ND Retail Project Cost: $3,750,000 Date Completed: 2008 Funding Sources: Private Project Notables: Steel framed with masonry facade

18 Project Name: Project Cost: Date Completed: Funding Sources: Project Notables: JL Beers Restaurants - 11 Locations Fargo, ND Restaurant $1,000,000 (per restaurant) Various Private Roers has now completed 11 total locations for JL Beers across the state of ND, MN, and SD. Project Name: Vinyl Taco Restaurant Fargo, ND Restaurant Project Cost: $750,000 Date Completed: December 2013 Funding Sources: Project Notables: Private Downtown redevelopment of 100+ year old store front Project Name: NoBull Restaurant Fargo, ND Restaurant Project Cost: $800,000 Date Completed: March 2015 Funding Sources: Project Notables: Private Downtown redevelopment of 100+ year old store front

19 Project Name: NDSU STEM Fargo, ND Institutional Project Cost: $20,000,000 Date Completed: December 2015 Funding Sources: Project Notables: Public - State of North Dakota Steel and concrete framed hi-tech lab and classroom building Project Name: Minot Wellness Center Minot, ND Institutional Project Cost: $12,000,000 Date Completed: June 2012 Funding Sources: Project Notables: Public - State of North Dakota Brand new wellness center complete with fitness area, gymnasium, rock wall and skyway to connect to adjacent buildings Project Name: Sanford (formerly Meritcare) Parking Ramp Fargo, ND Parking Structure Project Cost: $3,000,000 Date Completed: 1999 Funding Sources: Non-profit Project Notables: 2-story unheated precast parking garage

20 Timeline Proposed Timeline & Process TIF District /15/2016 Submit RFP City reviews RFPs and conducts interviews with selected developers. 4/15/2016 Select developer 6/1/2016 Finalize Developer Agreement and City approves Concept Plan 8/1/2016 Complete building plans sufficient to begin platform construction 9/1/2016 Begin construction 11/1/2016 Finalize building plans. 5/1/2018 Complete construction. First occupants move in. Note to Timeline: Roers has not coordinated this proposed timeline with the City of Fargo. It represents Roers anticipated internal timeline and capabilities.

21 ROERS th Street South Fargo, North Dakota Building success.