HomeMy WebLinkAbout6.B.(5)&(6) Request for Proposals Management Properties
SPECIFICATIONS FOR 11ANAC,EI1E\T OF
REREVELOP~IENT RETAIL
PROPERTIES
Scaled Bids shall be submitted no later than 9:00 a.m. December 5, 2008, in the
Office of the Department of Economic and Conununity~ Development, 1200 County-
City Building, 227 V1'. Jefferson Bh~d., South Bend, Indiana 46601, for Management
of Redevelopment Retail Properties Services for the South Bend Redevelopment
Commission.
DESCRIPTION OF PROPERTI'. The Rcdevelopmcnt Retail Propa-tics arc all located
in Suuth Bail. Indiana, and described as t~~llo~,~s:
• 1 I7 Gast Wayne Strcct-Wayne Strcct Garage Retail
• I 1 R- 131 S~~uth 'Michigan Street - Leighton Plaza Garage Retail
• 1 30 South Main Strcct -Leighton Plaza Courtyard
TER:y1 OF ~1ANAGE~IIENT SERVICES. The term of the management sa-~~ices shall
be for a period of three (;) years commencing on February I. 2009, and terminating on
.lanuarv 31, 2012.
MANAGE~9ENT FEE. Each bidder shall specific the amount of and method of
computation of the bidder's mana~~cmenl fee ~~ithin U1c tollo~~in~~ maximum fee
parameters:
• 117 East Wayne Strcct -Wayne Street Garage Rental monthly management fee
of Two Hundred Dollars (S200A0) or 5% of gross revenues collected
whichever is greater.
• 118-131 South :Michigan Strcct -Leighton Plaza Guage Retail Redc~clopment
Retail Shops monthly mana~rcment fee of Sig Hundred TwenY~~ Five Dollars
(5625.00) or 5% of gross revenues collected whichever is greater.
• I >U South Main Strcct -Leighton Plaza Courtyard monthly management fcc will
be a flat fcc of Seventy-Five Dollars (x75.00).
In addition to the monthly- mana~~emcnt fcc. the Bidder ~~~ill be compensated tax the
fibllowin~ sen-ices:
a. All expenses for maintenance. repair and work order hroecssing linciuding any
inspections by maintenance staft~ arc Property Expenses and arc invoiced bi-
~~~cekly and arc due ~~ ithin see cn business days. Maintenance rates shall be
specilicd in the bid.
b. For coordination of modernization. rehabilitation. and construction the Bidder
shall be paid Fi~~c percent (>.0°ro) of the cost in excess of Two Thousand Fi~~c
I fundred Dollars (~?.SU0.00) of the cost of such modernization. rehabilitation,
and construction provided, howe~~cr, that if the O~~~ner retains the scr~°ices of a
rehabilitation coordinator. the Bidder shall receive a fee of T~~o and One Halt
percent (?.5"'l0) of the cost in excess of ~hwo Thousand Five Hundred Dollars
(?,500.00).
c. For coordination of tiro restoration eft<xts, the Bidder shall be paid a fee of
Fi~~c percent (5.0°~0) of the cost in excess of Two Thousand Five Hundred
Dollars (S?,SOO.OU) of the cost of such restoration: provided, however, that if
the O~~-ner retains the sereices of a fiirc restoration coordinator. the Bidder
shall recci~e a fee of "h~~~o and One Half percent (?.5`io) of the cost in excess
of T~~'o Thousand Fi~c Hundred Dollars ($?.500.00).
d. For leasing. the Bidder shall be paid one half (V?) of the amount of its
commission upon ]case execution and one half (l,'?) upon lease
conuncncemc;nt. The Icasinr~ sa~~ices rendered by the Bidder shall be
compensated by O~~-ner as follows:
I. New leases and expansions: eight percent (8%) of the ~~ross rental
income scheduled over the ori~~inal term of the Icase fiix any nc~a~ lease or
expansion negotiated by Bidder.
?. Co-brokered transactions ten percent (10`%) of the gross rental income
scheduled over the original term of the lease ft~r an_v ne~~- lease or
expansion co-brokered.
>. Rcnc~wals and extensions three and one-half percent (3.5%) of the gross
rental income collected during the term of any extension of any Icase
negotiated by the Bidder.
4. If a prospecti~~c tenant tails to consummate a Icase and the Owner receives
a defaulted deposit from the prospecti~~c tenant. then the Bidder shall
receive one half (1-?) of the defaulted deposit, not to exceed the amount of
commission otherw~isc payable. The O~~°ner shall have no further
obligation to the Bidder fr~r anv commission for the lease.
SCOPE OF PROPERTI' ~IANAGE1~9E1V~T SGR~"ICES. Each bidder is speciticall_y
instructed to become completely familiar with the Redevelopment Retail Properties prior
to submitting a bid. Bids shall encompass management of all the Rcde~~elopmcnt Retail
Properties. Bids encompassing less than all of the Rcdc~~elopment Retail Properties ~~~ill
be deemed rejected as non-responsi~c. The Bidder agrees to pert~irm all of the following
Scr~~iccs:
• Assist Frith marketing acti~~ities ofthc properties: and
• Offer for Icuse the commercial units, conu»crcial space and other rental Cacilities
and concessions in the properties in accordance ~~~ith the fr~lli~~~~ing provisions:
a. Follo~a~ the retail tenant selection policy prescribed by the O~i~ner:
b. Show the premises to prospecti~c tenants and not discriminate in the
performance of any sen~ices rendered because of the race, color, religion. sex,
familia{ status, handicap, age or national origin of the prospecti~~c tenant:
c. Solicit. rc;ceivc and process applications t~~r leases and de~~c{op and maintain a
current list of prospecti~~c Lenants;
d. Collect security deposits in accordance ~~ilh the terms of each tenants lease
and the requirements of applicable state la~~~:
e. C`olleet rents, char~~cs, and otha~ amounts due from fcnants promptly ~~~hcn
such amounts become due and deposit all such amounts in a separate account
with a bank or other financial institution ~~~hose deposits arc insured by an
agency of the United States Go~~crnmcnt
~~. Secure full compliance by each tenant ~~~~ith the terms of the lease:
h. Secure prior appro~~al of the O~wncr bct~~re making any expenditure ~~~hich
exceeds T~~~o Thousand Fi~~c Hundred Dollars (5?,500.00) in any one instance
fir labor, materials. or otherwise in connection ~a~ith the maintenance and
repair of the property:
i. Prepare a recommended annual operating budget for each tiscal year and
present that budget fior appro~~al by the Rede~~dopment Couu»ission prior to
January 1 of each year:
j. Establish and maintain a eomprehensi~~e system of records, books and
accounts in a manner satistaetory to the owner and subject to applicable state
la~~~. and submit monthly reports of all receipts and expenses by line item to
the o~~~ncr ~~~ithin (15) days of each month end: and
k. Pro~~ide a ca-titicatc cxidencing tidelity insurance cox~cragc ~~~ith sureties in
the amount of not Icss than Onc Million Dollars (S 1.000,0OO.OU).
BID F,~'ALUATIO'.V. The Rede~~elopment Commission shall c~•aluate and consider the
follo~a~inr~ factors in its rc~ iew of Bids:
I . 'hhc degree to ~~°hich the bid meets the objecti~ cs of the De~~elopment Plan for the
South Bend Central De~~elopment eArea and meets or exceeds the Scope of
Property Management Scr~-ices stated abo~~e.
2. ~I~hc 13iddcr~s linancial responsibility, qualitications, experience and ability to
manage the Raley clopment Retail Properties ~~~~ith reasonable expertise.
~. The l3iddc r~s proposed management fee structure.
4. "hhc l3idder~s compliance ~~ith all applicable General Requirements stated bclo~~~.
5. The immediate and long-term potential impact on employment in the area
anticipated to result from the [3idder~s proposal.
6. ;1m other lzutors ~~hich ~~ill assure the Commission that the 13idde(s proposal
will further the execution of the South Bend Central De~clopulent Arco
Dc~clopmart Plan and ~,~ill seryc the interests of the community from the
standpoint of both human and economic ~~~elfarc.
CE1'F.RAL RGQUIRE~IENTS.
I. All of the provisions of I.C. 36-7-14-~~ ~~~ill apply to the biddin~~ process.
2. Any bid submitted by a trust as detined by IC ~0-4-1 must identify each
hcncticiary of the trust and the scttlor cmpo~rcral to rc~~okc or modify the trust.
,~ copy of the document that establishes the ~I rustec~s authority to acquire the
Property must be included ~~~ith the bid.
~. The succcsstul bidder w-ill he rcyuircd to enter into a conUact kith the South 6cnd
Rcde~~clopmcnt Commission.
=~. The Redc~~clopmcnt Commission has also im~itcd bids fbr the Spccitic.atirms tur
the Master Lease of Rcdc~~clopmcnt Retail Properties. A bid pursuant to the
Specifications t<u- Mana~remait ~~f Rede~~clopment Retail Properties does n~~t
require a bid f~~r the Specifications i~~r the i~aS1eI' Lcasc of Redc~~elopment Retail
Pr~~pertics. If the Bidder ~~~~ishes t~~ submit bids pursuant to both, the Bidder must
submit each bid separately.
5, The Redevelopment Commission expressl~~ reserves the right to reject an}~
and all Bids. In The c~°cnt that uo Bid is awarded, the Redevelopment
Commission ma~~ proceed b~~ prig-ate negotiation in accordance ~~~ith Indiana
Code § 36-7-14-22.