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HomeMy WebLinkAboutItem #11 Agreement with Trammell Webb Partners Inc. for Assistance in preparation and Evalaution of an RFP for Purchase of the Crown Point Property tie Center of Good ip!„ J . O •E AGENDA ITEM STAFF REPORT Meeting Date: August 16, 2011 Item # Reviewed By: Contact Name: Craig Shadrix, Assistant City Director: Manager Contact Number: 407 - 905 -3100 City Manager: Subject: Agreement with Trammell Webb Partners, Inc. for assistance in preparation and evaluation of an RFP for purchase of the Crown Point Property (Coca Cola Property) Background Summary: In 2006, the City of Ocoee released a request for proposals and received responses for the purchase and development of the Crown Point Property, formerly known as the Coca Cola Property. Subsequently, the City had a contract with a large home builder company which ultimately was never finalized. In the years that have ensued, the land development market has fluctuated commensurate with the continued economic decline and growth. In late 2009, the City began seeing considerable interest from prospective buyers, who wish to develop the property. Since that time, the City has met with numerous home - builders and developers, and realized the myriad possibilities for the types of submittals and purchase options that could be proposed should the City Commission authorize another request for proposals. In anticipation of a variety of possible purchase options and due to the prudence of evaluating and modifying the original request for proposals, the City has evaluated a proposal by Trammell Webb Partners, Inc. to assist in evaluation of the existing plan with current market conditions, preparation of a new rfp for purchase of the property, and evaluation and assistance in selection of a winning proposal. Trammell Webb brings a wealth of knowledge and skill to this type of project, and would be well - equipped to evaluate the anticipated wide variety of responses, optimizing the City's financial position through their ability to create detailed proformas and model the expected returns. Issue: Should the Honorable Mayor and City Commissioners authorize execution of a purchase order with Trammell Webb Partners, Inc. for an amount not to exceed $24,900 to assist with drafting and evaluation of a request for proposals for purchase of the Crown Point Property? Recommendations: Staff recommends that the Honorable Mayor and City Commissioners authorize execution of a purchase order with Trammell Webb Partners, Inc. for an amount not to exceed $24,900 to assist with drafting and evaluation of a request for proposals for purchase of the Crown Point Property. Attachments: Letter Proposal from Trammell Webb Partners, Inc. Financial Impact: The balance available to fund this item would come from the remnants of the Coca Cola (Crown Point) Property funding, which has a current unencumbered balance of approximately $52,000. TYPE OF ITEM: (please mark with an "x") Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. X N/A Reviewed by ( ) N/A TRAMELL WEBB • PARTNERS. INC John L. "Chip" Webb, C.P.A. Joe B. Tramell, P.E. Principal Principal Mr. Craig Shadrix City of Ocoee 150 N Lakeshore Drive Ocoee, FL 34761 July 14, 2011 Re: Crown Point Dear Craig: We are pleased to outline for you our suggested services regarding the City's desire to market its Crown Point development. As we understand, the City has spent considerable time in the acquisition and planning of the Project and at one point had the property under contract with a national production builder. The City now desires to review the current approvals and test them in today's market and then formulate an RFP and seek proposals from interested buyers and then conclude a sale of the Property. As such, we are submitting this outline in an effort establish the necessary steps to accomplish this goal. We suggest the following program: 1. Plan Review: a. Tramell Webb Partners (TWP) will conduct a thorough review of all plans and development approvals. b. TWP will provide comments and suggestions for any plan changes. The goal of this review to ascertain the marketability of the development plan and the level of approvals given the current state of the real estate market. 2. Plan Changes: a. If the City wishes to modify any part of the plan, TWP will: i. assist in the selection of the consultants necessary for plan changes • ii. supervise the preparation of any plan changes iii. assist the City in seeking the approvals for any modifications to the plan. Phone 407 - 420 -4792 - Fax 407- 420 -4793 JUL 18 2011 801 N. Orange Ave. Suite 518, Orlando, FL 32801 3. Proforma: a. TWP will prepare a proforma of expected financial results of the plan selected for the RFP. This proforma will include estimated costs, estimated revenues and estimated timing. The purpose of the proforma will be to assist the City in setting expectations of value. 4. RFP: a. TWP will draft a RFP for the City to review and will prepare a list of suggested buyers. b. TWP will develop a ranking matrix for City approval. c. TWP will pre- interview potential buyers and determine a level of interest and craft the RFP to meet the market conditions. d. TWP will meet with the prospective buyers as necessary and answer questions leading up to the RFP submittal and communicate the results of these interviews to the City. 5. Review and Analysis: a. TWP will analyze the RFP responses including direct financial benefits to the City as well as buyer's ability to perform. b. TWP will make recommendations based upon a ranking matrix. TWP will interview the top three submitters and provide comments to the City. 6. Final Assistance leading to Contract and Sale: a. TWP will assist the City in the selection of the winning RFP. b. TWP will supervise the finalization of the Contract and Sale. This will include suggestions to be included in the contract for the benefit of the City. This program is set up in a way to allow the City to consistently analyze the potential outcomes of each step and determine whether or not to proceed. The proposed fee structure is as follows: Plan Review $2,500 Plan Changes $2,500 to $5,000 if necessary Proforma $2,000 RFP $5,000 Review and Analysis $5,000 Final Assistance $5,000 Total $19,500 to $24,500 We would need a retainer of $2,500 to be applied to the last billing to begin work. Our preliminary estimates of timing would be as follows: Plan Review 2 weeks from start Plan Changes 3 to 4 weeks if needed Proforma 1 week RFP 2 weeks including buyer interviews Review and Analysis 2 weeks Final Assistance 2 to 3 weeks to contract preparation Please call me when you have had a chance to review this proposal. We appreciate the opportunity to work with you. Sincerely, John L. Webb Principal