Star Brewery Bldg RFP's
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MEMORANDUM
September 12, 2005
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TO: The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
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SUBJECT: Request for Proposals - Redevelopment of the Former Dubuque Star
Brewery Building and Site
In 2002, the City initiated a request for qualifications process to select a developer for
the former Star Brewery project. The Alexander Company of Madison, Wisconsin was
selected as the preferred developer at the end of that process with anticipation of a $5+
million redevelopment project to include a microbrewery operation, restaurant and bar
initially. However, the local partners involved in the brewery production portion of the
planned redevelopment were unable to finance their planned project.
The City moved ahead with a 1-year lease with Alexander during which time both
parties were to finalize a development agreement and long-term lease. Since then,
Alexander has supervised over $1 million in renovation costs, including gutting the
building, sandblasting paint from interior walls, necessary brick replacement, complete
tuckpointing of the exterior masonry, reroofing 2/3 of the building and demolition of a
metal addition.
The Alexander Company marketed the building regionally, hired Prudential Realty to
market the property locally and had multiple showings of the property without
successfully signing an anchor tenant for the building. An amendment to the 1-year
lease in March 2005 provided for a 5 month extension to continue their marketing
efforts. A further amendment has extended the lease until December 31,2005.
Without an anchor tenant and a certain percentage of the building leased, Alexander
cannot secure conventional financing for the overall project.
In the latest lease amendment with Alexander, it was agreed that the City would issue a
new RFP, with Alexander encouraged to submit another proposal if desired, so that the
potential redevelopment process would not be unnecessarily delayed.
Economic Development Director David Heiar is recommending City Council approval to
issue a Request for Proposals for the former Dubuque Star Brewery redevelopment
project. The RFP process, as proposed, will allow time for negotiation of a development
agreement with the selected developer and construction could then be underway by
spring 2006.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mithael G. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
September 9,2005
TO:
FROM:
Michael Van Milligen, City Manager
David Heiar, Economic Development Directoc:IJ ~
Request for Proposals - Redevelopment of the Former Dubuque Star
Brewery Building and Site
SUBJECT:
Introduction
The purpose of this memorandum is to request City Council authorization to issue a
renewed Request for Proposals (RFP) to solicit qualified developers or development
teams for the redevelopment of the former Dubuque Star Brewery building and site in
the Port of Dubuque. The proposed RFP is attached to this memorandum.
Background
In 2002, the City initiated a request for qualifications process to select a developer for
the former Star Brewery project. The Alexander Company of Madison, Wisconsin was
selected as the preferred developer at the end of that process with anticipation of a $5+
million redevelopment project to include a microbrewery operation, restaurant and bar
initially. However, the local partners involved in the brewery production portion of the
planned redevelopment were unable to finance their planned project.
The City moved ahead with a 1-year lease with Alexander during which time both
parties were to finalize a development agreement and long-term lease. Since then,
Alexander has supervised over $1 million in renovation costs, including gutting the
building, sandblasting paint from interior walls, necessary brick replacement, complete
tuckpointing of the exterior masonry, reroofing 2/3 of the building and demolition of a
metal addition.
The Alexander Company marketed the building regionally, hired Prudential Realty to
market the property locally and had multiple showings of the property without
successfully signing an anchor tenant for the building. An amendment to the 1-year
lease in March 2005 provided for a 5 month extension to continue their marketing
efforts. A further amendment has extended the lease until December 31, 2005. Without
an anchor tenant and a certain percentage of the building leased, Alexander cannot
secure conventional financing for the overall project.
In the latest lease amendment with Alexander, it was agreed that the City would issue a
new RFP, with Alexander encouraged to submit another proposal if desired, so that the
potential redevelopment process would not be unnecessarily delayed.
Discussion
The proposed RFP provides for a selection process to identify the best-qualified
developer or development team to work with the City in the continued rehabilitation and
reuse of this significant riverfront building. The former brewery is located in a key
opportunity site next to the new Grand River Center and should be another anchor
property for the Port of Dubuque. It is incumbent that the City work carefully and
deliberately to find the right developer and the right reuse for this important building.
The RFP will solicit interested developers and will allow the City to identify those that
have the expertise, knowledge and capacity to undertake a significant historic
redevelopment project. The developer should propose a planned reuse for the property
and identify the lease terms and financial assistance necessary to undertake the project.
A Selection Committee comprised of the following City staff will review the RFP's and
make their recommendation to the City Manager:
Cindy Steinhauser, Assistant City Manager
Dawn Lang, Budget Manager
Rich Russell, Building Safety Manager
Dave Heiar, Economic Development Director
Pam Myhre, Economic Development Planner
In addition, Amy Wickham of Greater Dubuque Development will be asked to serve on
the committee in her role as the new retail expansion specialist for the community.
Recommendation
I recommend moving forward with the Request for Proposals process for the former
Dubuque Star Brewery redevelopment project at this time. The process coincides with
the timeline of the brewery lease extension with The Alexander Company. The RFP
process as proposed will allow time for negotiation of a development agreement with the
selected developer and construction could then be underway by spring 2006.
Action Step
The action step for the City Council is to authorize the issuance of a Request for
Proposals for the redevelopment of the former Dubuque Star Brewery building and site.
attachment
F:\US ERS\Pmyhre\WPDOCS\LOANDOC\Alexander\rfp92005memo.doc
SEPTEMBER 20, 2005
Request for Proposals:
Redevelopment of the Former Dubuque Star Brewery
Building and Site
Dubuque, Iowa
INTRODUCTION
The City of Dubuque, Iowa issues this Request for Proposals (RFP) for the
redevelopment of the former Dubuque Star Brewery building and site to solicit qualified
developers interested in joining the riverfront renaissance occurring in the Port of
Dubuque America's River. The RFP requests the submittal of sufficient information
regarding the development concept and financial capability of the developer to enable
the City to select a preferred developer to long-term lease and redevelop the property.
The Brewery, built in 1898 in a Romanesque industrial style, was an active brewery until
it closed in 1998. The statuesque brick building is 41,959 square feet. First floor
square footage is 24,228 square feet, second floor is 8,074, the second floor mezzanine
is 560, third floor is 5,200, fourth floor is 3,408 and fifth floor is 489. Additional property
west of the building is available for further development and/or parking. The Brewery is
not currently listed on the National Register of Historic Places but is eligible.
The City has completed an initial phase of building restoration. This has included over
$1,000,000 to remove an inappropriate metal addition, gut the building interior, remove
interior paint from brick walls, completely repair and tuckpoint exterior masonry walls
and reroof approximately 2/3 of the structure.
The Dubuque Star Brewery building is a significant local landmark offering a unique
opportunity for riverfront redevelopment. The City looks forward to working in
partnership with a developer or development team with a vision of the possibilities
afforded by this historic building at the Port of Dubuque.
SUBMITTAL REQUIREMENTS
To assist the City in selecting the best development proposal, the following information
must be submitted:
1. Statement of Qualifications, to include:
a. Developer/development team description including identification of all team members, their
roles, responsibilities and authorities. Provide brief resumes of all key persons who will be
directly involved with this project;
b. Legal name of development entity, business form (corporation, partnership, not-for-profit, etc.)
and date established;
c. A listing of relevant projects completed by the developer or development team within the last
five years (including photographs). Include type of project, project address, size and intensity,
major tenants, current occupancy and ownership, completed value, lenders involved (with contact
references) and construction/completion dates;
d. Each developer or development team member must include at least three professional
references (lenders, investors, major accounts, etc.) with full name, relationship to the team
member, address and phone number;
e. Financial information (1 copy submitted in separate sealed envelope to be kept confidential)
for developer or development team must include CPA prepared financial statements and federal
income tax forms for your corporation or partnership and personal financial statements for all
principals with 20% or greater majority ownership; and
f. List any pending litigation, bankruptcy or other disputes in which developer or development
team members are involved, including status and potential impact on ability to execute this
project.
2. Project description: provide a concise narrative describing the development
concept for the building.
3. Development space program: provide proposed square footage space usage for
the building.
4. Development time line: describe anticipated timing of build out and occupancy of
building.
5. Development costs: provide estimated development costs for the proposed
project including both hard and soft costs and developer fees.
6. Development financing: identify funds available for the proposed project,
including developer equity.
7. Proforma analysis: provide a financial proforma for the proposed project
indicating financial feasibility.
8. Site plans or interior floor plans are not required at this time; however, concept
plans and drawings or elevation drawings to illustrate the proposal are
encouraged.
SELECTION CRITERIA
The City will use the following information to evaluate developer proposals:
Developer Expertise
. Experience in developing, marketing, and selling and/or managing mixed-use
developments;
. Demonstrated ability to develop projects which are an asset and a "correct fit"
with the neighborhood;
. Qualifications of the key individuals proposed for involvement in the
development; and
. Experience in project construction management and compliance with budgets
and schedules.
Financial Resources
. Ability to generate a development concept for the property that will create an
economically feasible project;
· Ability to provide funding resources, including current relationships with major
lenders, past funding experience, and the knowledge of other funding sources or
mechanisms for the project; and
. Ability to provide sufficient project equity to satisfy conventional lender
requirements, as needed.
Project Architecture/Planning/Design Experience
· Demonstration of architectural and urban design experience on other projects;
· Experience with historic properties and ability to redevelop the property within the
guidelines of the Secretary of the Interior's Standards for Rehabilitation;
. Experience with waterfront properties; and
· Ability to generate a development concept that supports the vision for
redevelopment as defined and illustrated in the Port of Dubuque Master Plan.
SELECTION PROCESS
The selection committee will review all responses to the RFP. The selection committee
may meet with any or all of the development teams and may have teams make
presentations to the committee. The City reserves the right to request additional
information from applicants prior to making a recommendation; however, special care
must be taken to prepare and submit the best response as the City may not permit
additional information to be submitted after the submittal deadline.
The recommendation of the selection committee will be forwarded to the City Council for
consideration and final selection of the developer.
A Development Agreement will subsequently be negotiated with the selected developer.
Under the terms of the Development Agreement, the developer will be required to
submit:
. detailed financial and development cost information relating to the development
proposal;
. project site plan, exterior elevations, and interior floor plans;
. site landscaping plan; and
. site parking plan.
The Development Agreement will provide for the final scope and design of
development, schedule for development, terms of the lease and terms and conditions
for any public financial participation in the project.
The City reserves the right to reject all proposals.
PROPOSED SCHEDULE
The time frame for the solicitation, receipt, evaluation of developer proposals and
selection process is as follows:
September 20, 2005
November 18, 2005
December 19, 2005
April 3, 2006
I nvite Proposals
Responses due
Recommendation to City Council to select a developer
Development Agreement and Lease negotiated/approved
DEVELOPER'S PACKET
Interested developers are encouraged to explore this unique opportunity by requesting
a Developer's Packet, which includes the following documents:
. Building Assessment and Floor Plans
· Environmental Assessments
· Master Plan and Design Standards for the Port of Dubuque
· Economic Analysis for the Port of Dubuque
· Port of Dubuque Property Ownership Map
The Developer's Packet may be requested by calling the Economic Development
Department at 563/589-4393 or emailing the Point of Contact listed below.
CLOSING DATE FOR SUBMITTALS
Seven (7) copies of the RFP response, plus an unbound original for copying purposes,
must be received by the City no later than 12:00 p.m. noon on Friday, November 18,
2005. All proposals shall be delivered to the City of Dubuque, City Hall, 50 W. 13th
Street, Dubuque, Iowa 52001, Attention: Dave Heiar, Economic Development Director.
Responses arriving later than 12:00 p.m. noon or at a different location will not be
considered.
POINT OF CONTACT
Dave Heiar will be the sole point of contact for this solicitation. Questions regarding the
RFP should be submitted in writing to the address above or via email at
dheiar@cityofdubugue.org.
To view additional information on the Port of Dubuque America's River projects or the
city of Dubuque, visit these websites:
www.americasriver.orq
www.citvofdubuque.orq
www.qreaterdubuque.orq
www.dubuquechamber.com
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