REQUEST FOR QUALIFICATIONS Regarding Development of the Churchs Properties Located 400 I street SW July 11, 2014 Prepared By: Westminster Presbyterian Church Redevelopment Steering Committee In Behalf of: The Session Westminster Presbyterian Church The Congregation of Westminster Presbyterian Church 2 INTRODUCTION Westminster Presbyterian Church (Westminster) invites and welcomes your participation in a process to select a development partner(s) for the Church's properties along 4th & I Street SW, which is within three blocks of the new $3 Billion Waterfront Wharf Development. The project is an outstanding opportunity to lead the redevelopment of a historic church and neighborhood of the nation's capital. This Request for Qualifications ("RFQ") is the first step in the Church's process to select a development partner. The Church has requested its Steering Committee (the Committee), to oversee and manage this process. It is the intent of Westminster to select from this RFQ, a partner. The Committee may follow up with a more focused detailed Request for Proposal ("RFP") that will be circulated to a smaller group of finalist candidates. Westminster is interested in identifying a development partner who will embrace the Development Vision illustrated in this RFQ, while complementing it with their ideas for success in the market. Westminster is seeking an equity development partner who can bring the necessary experience and financial capacity to fund and deliver all vertical improvements and infrastructure components. It is anticipated that the development partner(s) will lead the process to increase zoning entitlements and development rights through the appropriate District of Columbia channels. Westminster believes that this process will be primarily guided by the principles in the Comprehensive Plan, Small Area Plan (SAP), and Westminsters design principles. The Church expects the developer to be centrally involved in a program (working with the Church and the District) to improve and fund the infrastructure, streetscape, and connectivity between the Church and the surrounding developing area. CONTENTS I. Overview II. Present zoning implications III. Development partner roles & Responsibilities IV. RFQ Selection Process & Submission Requirements V. Statement of Limitations 3 I. OVERVIEW WESTMINISTER PRESBYTERIAN CHURCH Westminster Presbyterian Church has been serving the Southwest Waterfront region of Washington, D.C. for over 150 years. Originally situated on 7th Street near many of the federal buildings and well-known D.C. landmarks, urban renewal in the 1960's forced the church to relocate to its present site at I Street and Fourth. The urban renewal project drastically changed the face of the whole community, bulldozing the neighborhood homes and small businesses and replacing them with high-rise condominiums, offices and townhouses. In recent years the area has been targeted for major redevelopment again, so another widespread transformation is underway. The membership peak of this congregation was likely in the 1930's when participant rolls were in the 150-200 range. The impact of urban renewal was devastating to both the church and the community at large, and the church struggled in the 1970s to adjust from being a small neighborhood church to more of a commuter destination. In 1979, the Rev. Dr. Jeanne MacKenzie was called to serve Westminster, becoming the first woman ordained in National Capital Presbytery. In 1983 Westminster designated themselves as a More Light Presbyterian Church, making them the first church in the Presbytery, and the third church nationwide, to do so. Beginning in 1986, a time marked by much fear and hysteria surrounding the AIDS epidemic, the church began their "Food and Friends" outreach ministry that prepared and delivered meals to homebound persons living with HIV/AIDS. In 1997 the church launched the Southwest Renaissance Development Corporation to foster community development in the Southwest Waterfront area. The Friday Jazz Nights began in 1999, and the program was later expanded to include Monday Night Blues. Under the leadership of Co-Pastors Ruth and Brian Hamilton, the church has expanded its focus beyond LGBT ministry concerns to include a broader range of social justice issues. Today, the church averages 63 in worship and they support two 501C outreach programs, the SRDC program mentioned above and START, a harm reduction, prevention, and awareness initiative targeting injection drug users and others highly vulnerable to blood-borne infectious diseases. Most of Westminster's participants reside in the Southwest Waterfront neighborhood where the church is located, although there are some who travel from other parts of the city and also from the suburbs (particularly to the north). 4 THE DEVELOPMENT AREA 5 THE SOUTHWEST WATERFRONT NEIGHBORHOOD Washington D.C. is the capitol of the United States and home to all three branches of the federal government, hundreds of foreign embassies, and many national monuments and museums. The Southwest Waterfront area is located in the Southwest quadrant of the city, the smallest of the city's four regions. It offers close proximity and easy access to other areas of the city, with the freeways to the north, the waterway to the west, and the military (Fort McNair) and industrial (Buzzard Point) developments to the south. The L'Enfant Plaza, the abundant federal buildings, and even the Smithsonian Museum that can be found just to the north of 395 are actually part of the Southwest quadrant. In the first half of the twentieth century, the Southwest Waterfront area was an impoverished yet bustling region full of new immigrant populations. In the early 1960's the entire area was razed in a large scale "urban renewal" project. Through forced evictions and eminent domain assertions, the row houses and mom-and-pop shops were replaced with large high-rise apartments, office buildings and townhouses. What resulted had a much more sterile, detached feel than the close-knit neighborhood community that had been there before. Today the Southwest Waterfront neighborhood is known as an affordable, quiet place to live that is convenient to many Washington D.C. workplaces and destinations. Many buildings are gated with off-street parking so residents are able to keep to themselves so much so that the area can appear desolate at night with few pedestrians around. The area is ethnically and economically diverse. Locals sometimes refer to the "Delaware Divide" to describe the properties on the east side of Delaware Street as lower income than those found to the west. This is a general characterization only, as much of the Southwest Waterfront area is financially "block to block" depending on its development history. High priced condominiums are being constructed rapidly just a street or two over from public housing projects. There is a surprising lack of commercialization in the area there are only a few restaurants and very few basic services such as banks or hairdressers. The area has been targeted in the newest wave of Washington D.C. redevelopment, which includes a large-scale overhaul of the waterfront itself. Noteworthy landmarks in the area include the Waterfront Metro Station, the recently renovated Arena Stage, the Maine Avenue Fish Market, the $3 Billion Wharf Development, DC Government Town Center Development and the Washington Nationals Baseball Stadium. Westminster Presbyterian Church is located at the intersection of I Street and Fourth Street in the Southwest quadrant of Washington, D.C. The building is set back from the streets toward the center of the property, and it is partially obscured by trees. The "screen" design that covers the entrance adds to the closed-in feel of the church, but the colorful banners that have been hung there help to counteract this effect. Fourth Street is a major local road, home to the Waterfront Metro Station and the only grocery store in the area. The landscaping appears attractive and well-maintained. There are many high-rise buildings in 6 the Southwest Waterfront neighborhood and a new 120-foot high building is going in next door to the church. The church could potentially feel "dwarfed" in the shadows of all of the new redevelopment occurring in the immediate area. DEMOGRAPHIC PROFILE OF AREA SURROUNDING WESTMINSTER Westminster holds an important role in the Southwest Washington, DC community. Its mission statement provides that it is an accepting, caring, risk-taking church. Although Westminster is a Presbyterian church, it serves a spiritual heaven for many of different faiths. Westminster fosters numerous traditional and non-traditional religious mission services. Westminster is known as Not Just a Church. The churchs doors are always open to the Southwest Community. The church facilities are used by tenant associations, government entities, youth groups, health and human services organizations, schools and youth groups and many more organizations; and individuals. 7 8 9 THE WESTMINSTER PROPERTY & VIEWS VIEW FROM FRONT I STREET SW VIEW FROM FRONT I STREET SW-WEST 10 VIEW FROM WEST OFF MAKEMIE PLACE SW VIEW FROM EAST OFF 4th STREET 11 II. PRESENT ZONING IMPLICATIONS TO WESTMINSTER DEVELOPMENT Although the Southwest Quadrant is in the process of finalizing a Small Area Plan, at the time of the creation of this RFQ, the plan has not been adopted. The development of the Westminster property is presently effected by the following zoning policies: ZONING REGULATIONS R-3 DISTRICTS Permits matter-of-right development of single-family residential uses (including detached, semi-detached, and row dwellings), churches and public schools with a minimum lot width of 20 feet and a minimum lot area of 2,000 square feet for row dwellings, 30 feet and 3,000 square feet for single-family semi-detached dwellings, 40 feet and 4,000 square feet for all other structures and 120 feet and 9,000 square feet for schools, a maximum lot occupancy of 60% for row dwellings, churches and schools, 20% for public recreation and community centers, and 40% for all other structures, and a maximum height of three (3) stories/forty (40) feet (60 feet for churches and schools and 45 feet for public recreation and community centers). Rear yard requirement is twenty (20) feet. COMPREHENSIVE PLAN-LOWER ANACOSTIA WATERFRONT/NEAR SOUTHWEST AREA ELEMENT Policy AW-1.1.4: Waterfront Development Amenities Leverage new development in the Waterfront Planning area to create amenities and benefits that serve existing and new residents. These amenities should include parks, job training and educational opportunities, new community services, and transportation and infrastructure improvements Policy AW-1.1.10: Upgrading the Bridges Upgrade the bridges across the Anacostia River to better manage transportation flows, facilitate pedestrian and bicycle travel across the river, and provide attractive and distinctive civic landmarks. 1908.11 Policy AW-1.1.5: River Basins as a Planning Guide Recognize and be responsive to the distinct settings and environments created by varying conditions along the shoreline. Consistent with the Anacostia Framework Plan, the river should be viewed as a series of "basins," each defined by their unique physical and visual characteristics. In general, there should be a progression from a more urban environment on the lower basins (Washington Channel and the river gateway) to a more natural environment on the upper basins (Kingman and Heritage Islands, Arboretum, etc.) 1908.6 Action AW-1.1.A: Anacostia Waterfront Framework Plan Implement the recommendations of the Anacostia Waterfront Framework Plan through interagency coordination, ongoing activities of the Anacostia Waterfront Corporation, and continued cooperative efforts with the federal government. 1908.12 Action AW-1.1.B: River Crossing Improvements Implement the recommendations of the Middle Anacostia River Transportation Crossings Study that seek to improve local and regional traffic mobility 12 Policy AW-1.1.6: Pedestrian Orientation of Waterfront Uses Provide a high level of pedestrian amenities along the shoreline, including informational and interpretive signs, benches and street furniture, and public art. 1908.7 Policy AW-1.1.7: Multi-modal Waterfront Streets Design streets along the waterfront to be truly multi-modal, meeting the needs of pedestrians, bicyclists, and transit users as well as motor vehicles. Safe pedestrian crossings, including overpasses and underpasses, should be provided to improve waterfront access. 1908.8 Policy AW-1.1.8: Barriers to Shoreline Access Minimize the visual and accessibility impacts of railroad and highway infrastructure, surface parking, and industrial uses along the Anacostia River shoreline. In particular, the impacts of freeways on waterfront access should be mitigated by supporting the redesign of these facilities as tunnels or landscaped boulevards. 1908.9 Policy AW-1.1.9: Strengthening the M Street and Maine Avenue Corridors Strengthen the connection between Central Washington and the Anacostia Waterfront by rebuilding Maine Avenue and M Street SE as graciously landscaped urban boulevards. These streets should be designed with generous pedestrian amenities, public transit improvements, landscaping, and ground floor uses that create a vibrant street environment. Policy AW-1.2.1: Historic and Cultural Waterfront Assets Capitalize on the historic and cultural assets located near the Lower Waterfront, such as the Washington Navy Yard and Fort McNair. Public education about these assets should be expanded, the physical connections between them should be enhanced, and greater recognition of their value and importance should be achieved. 1909.1 Policy AW-1.2.2: Waterfront Cultural and Commemorative Sites Encourage the siting of new museums, memorials, civic gathering places, and cultural attractions on or near the Anacostia River as a way to catalyze revitalization and meet the demand for additional commemorative works without further crowding the National Mall and monumental core of the city. Such facilities should make the most of their waterfront locations and create an integrated system of gracious, beautiful, and vibrant places. 1909.2 Policy AW-1.2.3: Waterfront Sports and Recreation Destinations Develop new destinations for sports, recreation, and celebration on or near the Anacostia waterfront. Ensure that these destinations are served by adequate and efficient transportation systems and infrastructure. 13 III. DEVELOPMENT GUIDELINESCONTEXT, MATERIALS, QUALITY AND SUSTAINABILITY Development of the Church property should be appropriate for the unique site and defined program conditions. However the overall massing and architectural style within the corridor should mediate between the distinctly different qualities of the Southwest community. The development corridor should have a coherent and distinguishing style that complements, rather than imitates the mixed use area. Overall building massing should draw from the straightforward, purpose-built architecture now being the standard used in the developing area. The use of timeless materials would be a necessity in order to reduce the financial burden on the Westminster treasury. Building massing should provide visual interest and promote view and access to daylight, and provide an open atmosphere. In order to ensure long-term success, an emphasis is placed on the quality of the public realm as an attractive amenity that is safe, comfortable and engaging for pedestrians in all seasons and daytime and evening hours. All elements within the streetscapesincluding architectural elements and signage within the first thirty feet will be guided by comprehensive design standard and considered to include space for a restaurant and possible other retail easily accessible to all. Landscape is to be considered an integral component of the overall development for comfort, identity and sustainability. Planting, hardscape and landscape elements on the parcel must integrate with the communitys desire to retain as much green space as possible. Sustainability is a high priority for Westminster Presbyterian Church. The Church does not have a large congregation and it relies on its pledges and tithes to operate the many and diverse Church missions and programs. Therefore, the development should consider strongly the use of geothermal, solar power and econ-friendly energy support. 14 WESTMINSTERS DEVELOPMENT PROGRAM GOALS The Steering Committee is in the process of assessing the program development needs of Westminster. The Committee when its work is completed will provide the Development Partner its development goal in priority order. The preliminary assessment of the committee follows: PRESENT PROPERTY PROGRAMED SPACE Lot size is 30,056 sq. ft. Church Building 7,351 sq. ft. on two floors (basement and ground floor) Parking 25 off-street spaces Sanctuary Worship Area- 3,125 sq. ft. Basement Multi-purpose- 1,400 sq. ft. Commercial Kitchen- 810 sq. ft. PRELIMINARY CHURCH PROGRAMMING NEEDS Sanctuary/Worship 7,000 sq ft. Multi-purpose Dividable Room- to allow seated event for 600 people (Sanctuary/Worship included in this space) Commercial Kitchen-1000 sq. ft. Office Space- 4 separate (150 sq ft. each) Session (Board) Meeting Room-one of which able to accommodate 20 tabled persons Mail/Copier/Computer Room- 300 sq ft. Storage Space-500 Sq. Ft. Parking -25 spaces PRELIMINARY GOALS Affordable Housing () Restaurant 2,500 sq. ft. located street level Workforce Development Center Community Center space Maintain and Enhancing Church Mission and Programs 15 III. DEVELOPMENT PARTNER ROLES & RESPONSIBILITIES Westminster intends to enter into a long-term agreement with a Development Partner to help structure and oversee the development of the Church. An overview of the anticipated responsibilities of the Development Partner is described below and includes, but is not limited to three immediate steps in the development process: STEP ONE: MASTER DEVELOPMENT PLAN The Development Partner will work with Westminster to assess the development potential of the Church property in terms of marketability and financial feasibility, and then use that information to create and implement a Master Development Plan that enhances the character and quality of urban design for mixed use to include a church, housing, retail and community center. As part of the master planning process, Westminster anticipates working with the Development Partner to increase zoning entitlements and development rights through the appropriate District of Columbia channels. At this time, Westminster has not defined specific roles and responsibilities in obtaining project entitlements and development approvals. Westminster also anticipates making an unsolicited offer to acquire the land just east of the Church presently owned by the District of Columbia. STEP TWO: INFRASTRUCTURE PLAN AND FINANCING STRATEGY The Development Partner will be centrally involved in a program (working with Westminster and the District) to improve the infrastructure, streetscape, and connectivity between the existing town center and the area development. This effort will result in an Infrastructure Plan that includes a financing strategy that clearly articulates the sources and uses of funds for the development of project-related infrastructure and public realm improvements. STEP THREE: FINANCING, DESIGN & CONSTRUCTION The Development Partner will structure and implement the financing, design, and construction, of the mixed-use development to be determined by the agreed upon Master Development Plan. FINANCIAL STRUCTURE Westminster aims to maximize ongoing cash flow from the development of its property and intends to structure its agreement with a Development Partner as a long term ground lease. However, Westminster is willing to discuss alternative financial structures should they be to the benefit of Westminster and the overall development of the property. 16 IV. RFQ PROCESS & SUBMISSION REQUIREMENTS A. SOLICITATION PROCESS A two-phase process may be used by Westminster for soliciting a Development Partner to work with Westminster to create and implement the Church development. The first phase involves this RFQ, in which Westminster aims to identify candidate partners who have proven experience in redeveloping church or urban properties, and successful experience with interfacing with the District of Columbia government. At the option of Westminster, the solicitation process may only entitle consideration of candidates based upon this RFQ. However, Westminster may create a second phrase solicitation step. The second phrase process may identify finalist candidates in this phase to be invited to respond to a subsequent RFP. The second phase may involve an RFP, during which finalist candidates will be asked to submit detailed project and developer information, including: conceptual development proposals; overall phasing plan and market feasibility; innovative ideas for incorporating uses that support Westminster's religious, social and community mission; and a financial proposal. The following Submission Requirements and Selection Criteria only apply to the RFQ phase of the solicitation process: B. SUBMISSION REQUIREMENTS Respondents must submit the following to be deemed responsive for evaluation in the RFQ phase: 1. Transmittal Letter Respondents must include a cover letter acknowledging receipt of the RFQ and any subsequent addenda addressed to the following: CONFIDENTIAL Redevelopment Steering Committee Westminster Presbyterian Church 400 I Street SW Washington, DC 20024 17 2. Development and Partnership Approach Please provide us with your strategy for achieving a Westminster/Development Partner vision for the Church property and its intersecting neighborhood. We are not looking for conceptual development proposals or development teams at this time, but rather a narrative response to the following questions. (Please limit your response to a combined total of 5 pages.) a. Explain how you would "position" the development opportunity in the local real estate market, District officials, and local community. Comment on the Vision Plan, specifically in the context of the surrounding neighborhood and how you see it evolving, as well as how Westminster can maximize the value of its property as well as at the same time maintain its commitment to its church members and the community. b. Describe your experience(s) with working with churches in developing church property. c. Explain how you would approach to the development and funding of the project. d. Describe your preferred interest in the development projects, e.g. fee developer, equity investor, owner and/or property manager. Do you intend to retain a long term ownership position in the project(s) or do you intend to sell to third parties? e. Provide your firm's experience with ground leased development projects or similar structures. What has been the degree of success for your land partner? What have been the benefits and challenges of these structures for your projects? Please be as specific as possible. f. Discuss how your team would propose working with Westminster through the entitlement and development approvals process. Elaborate on the roles that you would anticipate Westminster and your team playing in communications, decision making, public relations, representing the project to the District in the entitlement process, meeting with neighbors, etc. 3. Developer Information a) Provide a brief overview of your organization and describe the growth and development history of your firm. b) Identify the office responsible for this project and the available resources of that office. c) If you are submitting a joint response with a development partner, describe each firm's role and contribution to the team, as well as overall management structure. 18 d) Include resumes for all principals expected to be involved in the project, highlighting experience with mixed-use, public-private development. e) Identify who on your team will manage the day-to-day relationship with Westminster. f) Describe the current workload of the office assigned to this project, including scope and scale of current projects and the locations of those projects. 4. Project Experience a. Provide at least three (3) pertinent project examples that demonstrate the following: Experience in partnering with institutions such as Westminster to manage projects that require careful balancing of community stakeholder objectives. Experience working with municipal agencies in the entitlements and rezoning process with similar parcels. Experience working with neighborhood groups and other local shareholders. Commitment to sustainability and experience incorporating sustainable design features. Place-making philosophy, including examples of your project's successful place-making elements. Ability to attract unique local and regional retailers and creative industries/activities that build value for long term development. Successful integration of institutional uses in a market-driven mixed-use program. Public and private land assemblage. Capability to leverage public resources (e.g., tax increment financing, special assessments, tax credits, etc.) for funding of project infrastructure and public realm improvements. 5. Financial Capability Please provide an overview of your company's financial strength which will be relied upon for completion of this project. Describe the sources of equity and debt for the last three (3) projects you completed that are similar in scope and scale to this project. 19 C. EVALUATION CRITERIA Each response will be thoroughly evaluated on the basis of the respondent's experience and demonstrated ability to manage and complete a project of the scale contemplated by Westminster. The basis upon which Developers will be measured includes, but is not limited to, the following: a) Experience with similar development projects with an emphasis on experience partnering with church institutions; b) Understanding and acknowledgement of Development Partner responsibilities as set forth in this RFQ; c) Familiarity with and willingness to structure a long-term ground lease transaction; and d) Ability to bring creative ideas to the redevelopment of the Church that will incorporate the aspirations and goals of Westminster as an energetic Church and community center. Westminster would like to stress the importance of finding a long-term development partner through the RFQ/RFP process. Developers are urged to clearly demonstrate their experience and interest in partnering with institutional partners on multi-phase, mixed-use development projects. The weighing of each evaluation criterion will be determined by the Steering Committee. SUBMISSION INSTRUCTIONS RFQ responses are requested no later than 5:00pm on July 25, 2014. Please submit nine (9) hard copies and one (1) electronic version on CD-ROM, DVD or flash drive in .pdf format to: CONFIDENTIAL Redevelopment Steering Community Westminster Presbyterian Church 400 I Street SW Washington, DC 20024 ADMINISTRATIVE FEE In order to offset Westminsters cost in evaluating responses to the RFQ, each respondent shall submit a non-refundable check in the amount of $1,000 made payable to Westminster Presbyterian Church. 20 PROJECT SITE TOUR Those wishing to tour Westminster Presbyterian Church please set an appointment for a tour by calling Brian Hamilton or Ruth Hamilton at (202) 484-7700 F. QUESTIONS We appreciate your thoughts and responses to this RFQ and encourage you to contact us with any questions or comments you might have regarding this opportunity. All questions about this RFQ must be submitted via email only to Lloyd.Jordan@motleywalller. V. STATEMENT OF LIMITATIONS This RFQ is for informational purposes only and is not intended to create any legally binding obligations on the Church or Westminster, and respondents to this RFQ are participating at their own cost and risk. All documentation submitted with the response shall become the property of Westminster. Westminster reserves the right to discontinue the process described in this RFQ at any time, and to amend and/or modify such process as necessary to meet the needs of Westminster. If any changes are made, all recipients of the RFQ will be informed via an official written Addenda.