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PO Box 508, Portland, Maine 04112
RFP
SUBMITTAL
Library Lot Development
June 1, 2015
PO Box 508, Portland, Maine 04112
A. SMART/Olympia Letter of Interest
B. Project Proposal
1. Project Concept Summary
2. Conceptual Site plan & Renderings
3. Proposed Terms
4. Ownership Objectives - Financial
5. Hyatt Support Letter
C. Team Qualifications
1. SMART/Olympia Profile
a. Campus Community Focus
b. Development Expertise
c. Award-Winning Management
d. Sustainability
e. Relevant Projects
f. Executive Bios
2. Architect and Contractor Profiles
[separate attachments]
CONTENTS
CONFIDENTIAL
June 1, 2015
Via email: [email protected]
City of Ann Arbor
c/o John Latessa
CBRE, Inc.
2000 Town Center, Suite 500
Southfield, MI 48075
Re: 319 S. 5th Street, Ann Arbor
Dear Mr. Latessa:
On behalf of SMART Hotels LLC and The Olympia Companies (SMART/OLYMPIA), we are pleased to
submit this response to the City of Ann Arbor’s RFP to develop the air rights above the Library Lot
parking structure.
We prepared to develop a new Hyatt House hotel on the site, adding an important, sustainable
amenity that would serve the community, downtown businesses and the University of Michigan,
while reserving the entire Fifth Avenue frontage for the envisioned civic plaza Our project would
utilize existing parking and infrastructure to maximum efficiency, without straining it, while
complement the scale and uses of surrounding properties.
SMART/ OLYMPIA develops hotels and mixed-use projects in university and medical center
communities nationwide. With decades of experience in all phases of hotel development and
operation, multi-use projects, complex financing and sustainable design, we have the experience to
deliver an outstanding facility that meets and exceeds your project goals.
Our collective portfolio of approximately 20 hotels includes, an award-winning Chicago project that
has strong similarities to the Library Lot opportunity In Chicago, we constructed a Hyatt Place hotel
on a parking garage podium in Chicago, IL. That mixed-use project has been a catalyst for
redeveloping Hyde Park’s commercial corridor and contributed to the selection of that neighborhood
for the Obama Presidential Library.
SMART HOTELS LLC
Ed Small, President
Enclosure
cc: Gordon Hendry, CBRE, Inc., 101 W. Washington St., Suite 1000 E, Indianapolis, IN 46204
via email: [email protected]
Project Concept Summary (pg. 1 of 2)
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We propose developing Michigan’s first Hyatt House hotel, with distinctive design, quality
materials and place-making elements all suitable for this dynamic urban location. The 8-
sltory building would contain 135 spacious guestrooms for extended-stay guests. The
project is proposed to include amenities such as kitchens, outdoor patio, pool, fitness center,
meeting space, lounge, business center and dining area. A bar and lounge would serve
guests and be open to the public during evening hours.
The project would have four prominent elevations to complement and enhance the civic,
business and multi-family projects surrounding the hotel. The project is sited to work
synergistically with the city’s proposed civic plaza and would reserve sufficient area along
Fifth Avenue to permit full expression of the community’s vision for that public amenity (+/-
15,000 s.f.). The existing garage stair/elevator tower and lobby at the center of the garage
would be retained, incorporated into the hotel footprint and oriented to the civic plaza with a
distinctive entry and awning complementing the original design.
The project size would efficiently utilize the available building area within the garage surface
level without impairing garage ingress/egress in the least. Approximately 1 parking space
per guestroom would be required, but that parking might be available on a shared-parking
basis. Since the hotel is contemplated to offer shuttle service and would require fewer than
the 200 available spaces, the project would not strain available parking.
The project is currently estimated to have a total cost of approximately $25M, of which
approximately $17M would be hard costs (+/- $170 psf). The estimated Project development
budget is $29,000,000. The capital structure for the project will consist of debt of
$20,300,000, a contribution of $500,000 from Hyatt and equity of approximately $8M.
The proposed price for the offered land interest is $3,000,000, inclusive of CBRE’s fee. This
equates to a price per building square footage of $30.00.
As depicted in the enclosed layout sketches and renderings, the project details are currently
estimated as follows:
Total Building Area: +/- 100,000 SF
Area per Floor: 1st - 8,530 s.f.
2nd - 12,650 s.f. + 2,100 s.f. deck
3rd -8th - 12,650 s.f.
Retained area for civic plaza: 15,200 s.f.
Approximately 79 of the 135 guestrooms would be over-sized studios and suites, all with
kitchens. Approximately 56 of the guestrooms are proposed to be spacious King- and
Double Queen-bed guestrooms w sofa seating area.
Project Concept Summary (pg. 2 of 2)
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As with all SMART/OLYMPIA projects, this Ann Arbor hotel would be designed to LEED
green building certification specifications. To the extent the budget permits, the project may
include such elements as premium HVAC system, LED lighting, low-E glass, partial green
roof, recycling of project waste, building commissioning.
To meet project requirements, design would need to be completed and entitlements
received in time to permit construction commencement early Spring 2016. The hotel
opening would be targeted in time for University of Michigan’s 2017 commencement..
The economic impact of the Project includes real estate taxes and room tax. We estimate
the real estate taxes to be approximately $375,000 per year, and the room tax to be
approximately $55,000 per year once the hotel is stabilized. The room tax offers a superior
benefit to the city over office or multi-family projects.
SMART/OLYMPIA would fully comply with the City of Ann Arbor’s public review and
entitlement process. We embrace public engagement with the understanding that the
community’s support will best ensure our project’s success.
Architectural plans, designs and renderings follow.
Project Concept Drawings
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Project Concept Drawings (Pg. 1 OF 2)
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Project Concept Drawings (Pg. 2 OF 2)
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Proposed Terms
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We are pleased to propose the following terms and conditions for
SMART/OLYMPIA to purchase a condominium interest and related rights in a
portion of the Library Lot parking structure:
1. Property: The property would comprise one or more condominium parcels
and all related easements and appurtenances required to construct and
operate the building improvements proposed to be located thereon. The site
would encompass the parking spaces off of Library Lane at the hotel front
entrance, a sidewalk of approximately 5’ on the west of the building and
accommodate all column locations.
2. Price: The purchase price for the Property (the “Purchase Price”) shall be
THREE MILLION DOLLARS ($3,000,000), inclusive of CBRE’s project fee.
3. Assumptions and Contingencies: Purchaser’s offer assumes and is
contingent on the following:
A. Utilities: City to ensure all required public utilities with sufficient capacity to
serve the project are available adjacent to the site from active, fully
functioning lines;
B. Parking:135 parking spaces within the parking structure on terms to be
mutually approved.
C. Zoning: D-1 zoning permitting the proposed hotel and all related uses
D. Diligence: 90-day Diligence Period with reasonable periods
necessary to meet project entitlements and approvals.
E. Site: Development ready site with utilities, structural support, etc.
suitable to accommodate the hotel building without premium cost and no
environmental issues.
F. Title/Survey – Clean and marketable fee simple title to a condominium
interest in the subject property, including all required easements.
G. Signage – Right to have signs installed at Library Lane at its intersections
with Division St. and Fifth Avenue.
H. Easements – Rights to facilitate construction (e.g., staging, construction,
maintenance, structural support, parking, signage, access.
I. Entitlements – Approvals to construct and operate the proposed hotel to be
secured by early Spring 2016.
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Ownership Objectives - Financial
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SMART / OLYMPIA has a strong track record in securing lending
from a variety of sources. Institutions that have provided financing
solutions for past development projects include:
• Wells Fargo
• MB Financial
• Bank of America
• TD Bank
• McDonald Partners
Based on other current projects, we are projecting construction
loan interest at an annual rate of approximately 4% (interest only),
increasing to 5% for take-out financing. We have equity ready
available for our projects with a targeted IRR of approximately
20%. We are estimating equity for this project at approximately
30% of project costs or $8M. If selected for this project, SMART /
OLYMPIA would provide financial statements.
Developer Qualifications
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The project would be developed by an affiliate of
SMART/OLYMPIA, whose principals are identified below.
We have developed several projects that have strong similarities
with this project. Most notable of those projects would be our
award-winning Hyatt Place Chicago South project, which was
built on a parking garage structure podium as part of a $100M
mixed-use project near University of Chicago. That project has
been a catalyst for the revitalization of Hyde Park’s commercial
district, is widely embraced by the community and has been
cited as exemplary in its local hiring and WBE-MBE practices.
Our team qualifications follow.
HYATT SUPPORT LETTER
VIA EMAIL
May 29, 2015
Mr. Ed Small
President
SMART Hotels LLC
20600 Chagrin Boulevard, Suite 705
Shaker Heights, OH 44122
Tel: 216.485.2311
Email: [email protected]
RE: Liberty Lot - Proposed Hyatt House – Ann Arbor, MI
Dear Ed,
Thank you for your interest in proposing a newly built Hyatt House hotel located 319 S. Fifth
Avenue in downtown Ann Arbor, Michigan. Given the project’s downtown location, along
with its proximity to the University of Michigan and area business, we would be excited to
have you and your partners develop a Hyatt House in this lodging market. We at Hyatt Hotels
Corporation look forward to continuing our relationship with SMART Hotels in key strategic
markets such as downtown Ann Arbor. Your Hyatt Place hotel in Hyde Park/Chicago is a
great example of what we can do together and has strong similarities to the hotel proposed
for the Liberty Lot site.
As you know, Hyatt House is our upscale extended stay brand. The unique offering is
designed to welcome residents rather than guests and offer services, amenities, upscale
spaces and a casual, comfortable environment that reminds guests of home. Hyatt House
offers distinctive design, residentially inspired studios, one- and two-bedroom suites feature
contemporary full kitchens and a variety of food and beverage options are offered.
I look forward to exploring this exciting opportunity further with you and your partners.
Best Regards,
Mark Younadam
Mark Younadam Director of Development 71 S. Wacker Drive Chicago, IL 60606 Tel: 312-780-6093
HYATT HOUSE HOTEL
CAMPUS COMMUNITY FOCUSSMART/OLYMPIA brings a focus on campus communities
New Standard for Campus Hospitality
• Intimate and service-oriented
• Quality atmosphere and architectural character
• Amenities tailored to visitor needs and preferences
• Responsive to university requirements
• Embrace sustainability
Campus + Community Context
• Complement existing context (setbacks, materials, scale)
• Reconcile campus and community interests
• Catalytic projects that integrate campus and community
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DEVELOPMENT EXPERTISESMART/OLYMPIA brings deep hotel & real estate experience
Experience and Expertise
• New construction, renovation and adaptive reuse
• Infill sites
• Mixed-use projects
• Complex financing
• Entitlement process
• Sustainability leader in hospitality
• Boutique and flagged hotels
• Broad national and international experience
• Track record in difficult, high-barrier-to-entry markets
Financial Strength
The combined value of the project portfolio is estimated at over $300,000,000.
SMART/OLYMPIA’s principals have the financial capability to provide and secure
required project equity and financing. Institutions that have provided financing
solutions for past development projects include:
Wells Fargo MB Financial Bank of America
TD Bank McDonald Partners
Development Awards
• Developer of the Year – Downtown Portland Corp.
• Pride in Construction Award – Construction Industry Service Corporation -
Hyatt Place Chicago South
• Team Building Award– Building Design & Construction Magazine - Hyatt Place
Chicago South
• Gold Key Award for Best Eco or Socially Conscious Hotel (Finalist) - Boutique
Design – Hyatt Place Chicago South
• Best Residential / Hospitality Project – ENR Midwest - Hyatt Place Chicago
South
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AWARD WINNING MANAGMENTAward Winning Hotel Management
Olympia brings over 30 years’ experience in providing unparalleled guest service and
outperforming the competition. Olympia consistently achieves high service quality
scores, often ranking in the top 10%.
Recent Awards
Travel + Leisure Top 500 Worldwide - Inn by the Sea (7-time winner)
Best new Chef – Silver Spoon Awards – The Alfond Inn (2014)
Conde Nast Gold List - Inn by the Sea (2013, 2014)
Conde Nast #2 hotel in Florida – The Alfond Inn (2014)
#2 Resort in the Northeast, Conde Nast Traveler -- Inn by the Sea
Wine Spectator Award of Excellence – Inn By The Sea (Seven time winner)
#1 Hotel in Durham – TripAdvisor – Durham HGI
Best New HGI Nationwide – Hilton Hotels Ramp-Up Award – Durham HGI
Top 10% in ‘Overall Satisfaction’ Nationwide - Hyatt Place Chicago South
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SUSTAINABILITY
Committed To Sustainable Building and Operating Practices.
• SMART/OLYMPIA hotels are designed and constructed to promote
environmental and economic sustainability.
• Members of the United States Green Building Council (USGBC/LEED),
the International Living Future Institute (Living Building Challenge),
Urban Land Institute (ULI) and National Trust for Historic Preservation
• Hotels designed to meet LEED Silver, Gold and Platinum criteria
• Green Lodging designations in Maine, Illinois, New Hampshire,
Connecticut, Florida and North Carolina
Oberlin College’s Peter B. Lewis Gateway Project
• Innovative mixed-use project (hotel, retail, office) designed to LEED
PLATINUM criteria
Hyatt Place Chicago-South
Gold Key Award Finalist for Best Eco Friendly Hotel (2014)
Recognized as “Green Leaders Silver” by Trip Advisor
LEED Gold Certification (pending)
Inn By the Sea - Recognized as one of America’s most sustainable hotels
Trip Advisor Top Ten Environmentally-Friendly Accommodations
MSNBC Top 10 American Green Hotel
Forbes Traveler Top 10 North American Green Hotel
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The Alfond Inn at Rollins College:
RELEVANT PROJECTS
Hyatt Place Chicago South– University / Medical Center
Chicago, IL
The first hotel in Hyde Park in
almost fifty years.
Top 10% of all Hyatt Place
hotels nationwide.
Hilton Garden Inn - Duke University / Medical CenterDurham, NC
#1 Performing hotel in Durham.
#1 Hotel in Durham – TripAdvisor.
Best new HGI nationwide – Hilton.
Olympia adapted the lobby
prototype design to create
custom public spaces that
compete with luxury properties
in the market.
Gateway Hotel & Mixed-Use Project - Oberlin CollegeOberlin, OH
.
LEED Platinum boutique hotel ,
farm-to-table restaurant and
event center under construction
on Oberlin College’s campus. As
the anchor for the Green Arts
District, the project will link the
campus with Downtown Oberlin.
The Alfond Inn at Rollins CollegeWinter Park, FL
Top Hotel in its Market.
#2 Hotel in Florida –
Conde Nast Readers’
Choice Awards.
A four-diamond
Preferred Boutique hotel
with signature
restaurant and
conference center.
. The Inn incorporates the
Alfond Collection of
Contemporary Art, bringing
musem-quality works of art to
the local community and
enticing guests into “the living
room” of Winter Park.
Inn by the Sea Cape Elizabeth, ME
Since 1993, this boutique destination resort has been awarded
AAA Four Diamond ratings every year and consistently ranks as
one of the most financially successful inns in New England.
Consistently recognized by
regional and national publications
as a leader in the luxury travel
space, including five-time Travel +
Leisure Top 500, two-time T+L
World’s Best, Conde Nast Gold
and #2 Resort in the Northeast by
Conde Nast Traveler.
The Brunswick Hotel & Tavern at Bowdoin CollegeBrunswick, ME
We were selected as a third-
party manager for this 52-room
independent Inn and full-
service tavern located directly
across from the Bowdoin
College Campus.
The hotel is the RevPAR leader in the
market.
Hilton Garden Inn Downtown Waterfront
Portland, ME
Consistently ranks in the top 10% on the HGI
Brand Performance Scorecard.
The top-ranked RevPAR hotel in greater Portland.
This hotel anchored the redevelopment of
Portland’s downtown waterfront.
The hotel’s titanium façade and customized public
areas create the look and feel of a boutique hotel
while meeting Hilton’s program requirements
Hyatt Place Crocker ParkWestlake, OH
The hotel will be a custom
Hyatt Place that primarily
services the new American
Greeting Headquarters and
the surrounding Crocker Park
development
Olympia is working with Stark Enterprises
in Cleveland, OH to develop a 115 room
Hyatt Place that will fit seamlessly into the
next phase of expansion of this 2.5 million
sf lifestyle development.
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EXECUTIVE TEAM
JON ADAMS, CEO
Smart Hotels
Co-founder of Smart Hotels
35 years’ experience as a successful entrepreneur, technology manager
and hospitality executive
MBA from Stanford University; BA from Harvard University
ED SMALL, President
Smart Hotels
Co-founder of Smart Hotels
25 years’ experience in the development of hotel, retail, office, multi-family
and mixed-use projects
Developed catalytic inner city revitalization projects
Member of The Richard E. Jacobs Group development team
JD from CWRU; BA from UCLA
CHRISTOPHER NOBLE, Project Manager
Smart Hotels
25 years’ experience in the development and construction of unique,
sustainable mixed-use projects
Strong background in architecture, construction, and environmental design
Post-Graduate Studies at Georgia Institute of Technology;
BA in Environmental Design from Miami University
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EXECUTIVE TEAM
KEVIN MAHANEY, CEO
The Olympia Companies
Founder of The Olympia Companies
35 years’ experience in real estate development
Numerous development awards, including Hilton Developer of the Year
MBA from University of Chicago; BA from Middlebury College
JOHN SCHULTZEL, Vice President Hotel Management
The Olympia Companies
25 years of experience in hotel and restaurant operations
General Manager of Patrizio Restaurants and Operations Management
roles with Bristol Hotels (now Intercontinental) and Host Marriott
MA in Hospitality from Cornell University School of Hotel Administration; BA
from Wesleyan University
MIKE ZIMMERMAN, Vice President Development
The Olympia Companies
Oversees construction of SMART/Olympia hotels
Worked in public and private construction projects in Europe and the USA
with Railtrack, Harbor Properties and Bechtel
LEED Accredited Professional
BSc from Georgetown University
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DESIGN & CONSTRUCTION TEAMJ. Bradley Moore & Associates, Ann Arbor, Michigan
J Bradley Moore & Associates Architects, Inc. was founded in 1985 by Bradley Moore with the goal of
creating an architectural practice that could provide excellent service to a diverse clientele. The firm has five
areas of primary focus - Commercial, Single Family Homes, Multi-family Dwellings, Adaptive Reuse and
Mixed Use projects. Mr. Moore has over 30 years’ experience in bringing a high degree of creativity and
dedication to each project.
Notable local projects include such landmark Ann Arbor buildings as The Varsity (associate Architect),
Arbor Blu (Design Architect with Meier architects, associate architect), Big George’s Home Appliance (with
the first green roof on a retail building in Ann Arbor), Pizza House restaurant near the University of Michigan
campus, and The Quarter Bistro restaurant on the city’s west side. Urban infill housing projects have
included the William Street Townhomes in the heart of downtown Ann Arbor (cited in the Ann Arbor
Architectural Design Guidelines appropriate, contextual, design) and Catherine Commons condominiums
near the old St. Joseph’s hospital. Projects in local historic districts have included the conversion of the
Liberty Racquet Club (at the corner of Liberty and Main Streets) into urban lofts, the State Street Lofts above
Espresso Royal, the renovation of the “Riders” building at 115 W. Liberty ( including residential lofts above
retail) and the Montgomery House Lofts (under construction).
J Bradley Moore & Associates Architects (JBMAA) has completed more multi-family dwelling units in
Ann Arbor and Washtenaw County over the last two decades than any other architectural firm – 3,200 units
and counting. Residential projects have also been completed in Vail, Colorado and South Beach, Florida.
JBMAA has also collaborated with Hensly Lamkin Rachel (HLR) of Dallas, Texas on numerous mixed-use
and multi- family projects across the country. JBMAA has functioned in the capacities of entitlement
consultant as well as Associate Architect on several projects including the 14 story high-rise residential
project known as ‘The Varsity’ in Ann Arbor with WDG Architects of Bethesda, Maryland.
Mr. Moore is a graduate of the University of Michigan and a 36-year resident of Ann Arbor, Michigan. The
firm’s work has been intended to enhance and reinforce the sense of community within the city and project
environs and has been recognized with a number of local and national awards, including the Innovation in
Land Use Design Award (by the Huron Land Use Alliance) as well as the Best in American Living Award
(by the National Association of Home Builders).
Mr. Moore has been appointed by the Ann Arbor City Council to advisory boards for several major zoning
revisions in the city of Ann Arbor over last decade including the new D1 & D2 urban ‘core’ rezoning, the
Architectural Design Guidelines and the new Area Height and Placement regulations.
J Bradley Moore & Associates, Inc. places a high priority on creating and sustaining long-term relationships
with those we serve as well as with the communities in which we work. We prefer a team or collaborative
design process which enriches the result with the expertise and creative energies of those involved. The
synergy that results from this approach yields projects which not only meet but usually exceed client
expectations. Simply stated, our goal is to provide an experience in project design and development which
is only surpassed by the end result.
4844 Jackson Rd Suite # 150, Ann Arbor, MI 48103
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DESIGN & CONSTRUCTION TEAMW. A. Randolph, Inc., Chicago, IL
Wm. A. Randolph
excellence since 1958 820 Lakeside Drive, Suite 3, Gurnee, Illinois 60031
847-856-0123 I warandolph.com
50+ years. Committed to excellence.
We are committed to providing you with the kind of engineering and construction expertise
you require to complete your project successfully. Our personal, one-on-one service manages
your project every step of the way. Our philosophy is simple: we’re not satisfied until you are.
One contract, one integrated team, Wm. A. Randolph.
50+ years. Hotels and Hospitality.
We approach hotel construction with the drive and desire to provide our clients with the ultimate
property. Utilizing today’s technology and adhering to the most stringent standards, we construct
beautiful, energy efficient hotels on time and on budget.
50+ years. Delivering Results.
Our teams are comprised of the very best craftsmen and our project management is second to
none. Our goal reaches beyond just completing your project. We expect our work to reflect
craftsmanship of the highest quality. Craftsmanship the sets your project above just another building.
We know it takes a lot more than just hard work and hard hats to get the job done right. Our portfolio
of satisfied clients spans a wide spectrum — from commercial and industrial to theaters and multi-
tenant residences. Our commitment to you is quality, craftsmanship and delivery.