City of Bloomington, Indiana

Request for Qualifications for

Master Developer

And

Brokerage Services

Issued: July 9, 2018

Revised: July 27, 2018

Contents

I. Introduction 3

A. Master Developer Services for the Hospital Site Redevelopment 3

B. Master Developer Services for Switchyard Park 4

C. Trades District Brokerage Services 4

D. Local Commercial Broker 6

E. Conclusion 7

II. Background: The City of Bloomington 7

III. Community Development Financial Institutions (CDFIs) and Opportunity Zones 11

A. About CDFIs 11

B. About Opportunity Zones 11

IV. RFQ Response Requirements 12

V. RFQ Response Process 12

A. Questions 12

B. Response Deadline 13

C. Summary of RFQ Process Deadlines 13

VI. Personal Presentations 13

2

I. Introduction

The City of Bloomington, Indiana (“City”) issues this Request for Qualifications (RFQ) seeking qualified, visionary brokers and developers to assist the City with ongoing development needs and several specific projects. The City is currently engaged in four major development projects--the “string of pearls,” all of which are located adjacent to one of the City’s major assets—the B-Line Trail, a 3.1-mile long, 12-foot wide paved walking and biking path that runs from the near northwest end of the downtown core to south of the downtown. These projects, going from north to south, are a) redevelopment of the Trades District, b) new/expanded convention center and associated hotel, c) redevelopment of the current hospital site, and d) development of a brand new park, Switchyard Park. The convention center project is not a part of this RFQ. The City is seeking partners to provide master developer services for the hospital site project, master developer services for selected properties surrounding the Switchyard Park, brokerage services for the Trades District project, and local brokerage services on an ongoing, as needed, basis.

A. Master Developer Services for the Hospital Site Redevelopment The first project involves redeveloping a 24-acre set of parcels, including a large parcel that is currently occupied by Indiana University Health Bloomington Hospital, and several nearby parcels where operations affiliated with IU Health are located (the parcels collectively referred to as the “Hospital Site”). The City’s Redevelopment Commission is purchasing the Hospital Site from IU Health over the course of the next few years and much of the area will be available for redevelopment as soon as the hospital has vacated its current building and moved to its new location on the east side of the City. That move is anticipated to take place in or around 2021. The Hospital Site is located just south of Bloomington’s downtown core and represents a rare opportunity to create from the ground up a special community hub that will enhance the experience of living and working in, or just traveling through, the City’s downtown for residents and visitors alike.

A specific plan for Hospital Site has yet to be determined, although the City recently engaged the Urban Land Institute (“ULI”) to study the City and the Site and make recommendations based on input from approximately 100 community leaders. The ULI report contains a map of the Hospital Site and other information that will inform RFQ responders, and the final draft will be available on the City's website at www.bloomington.in.gov on July 24. In the meantime, a draft report is available here:

https://bloomington.in.gov/sites/default/files/2018-04/Bloomington%20Final%20PPT_Reduced.pdf

The City considers this report as one proposed vision for the Site, but not necessarily the definitive vision. There are many possibilities, and the City intends to partner with the chosen respondent to this RFQ to solicit extensive additional community input before making final decisions about the

3

future of the Site. The selected development partner will be expected to take the ULI report into consideration, work with the City and the community as a whole to shape the redevelopment project, and implement the ultimate vision for the Site. The Master Developer’s work product should be consistent with the recently adopted Comprehensive Plan and the City’s Unified Development Ordinance (UDO), which is in the process of being updated and expected to be adopted by the spring of 2019.

B. Master Developer Services for Switchyard Park

Switchyard Park is the City’s project to redevelop the former McDoel Railroad Switchyard, which served as a regional hub for railroad activity and commerce from 1892 until 2000, when CSX Railroad phased out its services. The last train left the switchyard in 2004. Bloomington Parks and Recreation and city officials held a Switchyard Park groundbreaking on May 11, 2018 and construction is slated to be completed by May of 2020. Switchyard Park will comprise 65.29 total acres, and plans include an 11,000 square foot pavilion, an outdoor performance stage and grand lawn that will accommodate up to 8,000 people, community gardens, ball courts and fitness stations, a splash pad, a playground, a skate park and a dog park. The City will be planting 600 trees and 2,000 reforestation seedlings. In addition, the former railroad maintenance office will be renovated to serve as a City of Bloomington Police Department substation. As the City constructs the Switchyard Park over the next two years, it is seeking an experienced Master Developer to assist in the development of selected parcels around the park. The City currently owns two parcels on the northeast boundary of the park. The City will be utilizing the most northeasterly parcel as a gateway entrance into the Park. The City is looking to also redevelop the parcel just south of the Gateway parcel. In addition the City continues to identify parcels that would be desirable for redevelopment surrounding the Park. The Master Developer will assist the City in identifying, procuring and redeveloping those parcels.

C. Trades District Brokerage Services

The third project involves marketing and selling vacant parcels located in the City’s “Trades District.” The Trades District is the technology and commercial center of the Bloomington Certified Technology Park, and it is located at the near northwest end of the City’s downtown. Figure 1 below shows the location of the Trades District in the City. A figure showing the district is below.

4

 

5  

Figure 1: Trades District

 

This area is a developing, vibrant district where the City envisions that innovation and collaboration will thrive primarily through employers and employment opportunities in innovation-focused businesses. The master plan for the area is available at this link: https://bloomington.in.gov/business/districts/ctp.

The Bloomington Redevelopment Commission is currently engaged in two construction efforts designed to prepare the Trades District to attract major innovation entities interested in locating there. One project is the renovation of the Dimension Mill, a historic building dating from the beginning of the last century that formerly housed the Showers Brothers Furniture Company’s wood planning operation. Renovations are scheduled to be substantially completed by the end of October 2018. The Dimension Mill will be a 19,000-square-foot co-working and business incubator space operated by a separate non-profit, and it will also be available for events. The other project involves building the infrastructure to support the development of the Trades District, including water, sewer, storm water, energy, and broadband capability. The infrastructure project is slated to be substantially completed by early 2019.

The City does not anticipate needing master developer services for the Trades District, as it believes that purchasers of the vacant parcels in the Trades District will be interested in developing their own sites. However, the City does anticipate benefitting from brokerage services to help it realize a consistent and coherent vision for high-impact development of the different individual parcels. The development should be consistent with the community vision outlined for the Trades District, as capture in the CTP Plan available here: https://bloomington.in.gov/business/districts/ctp. One major employer, Tasus Corporation, has already committed to purchasing a site for its North American headquarters and is engaged in developing its site plan and designing the building.

The Trades District links some of Bloomington’s major cultural, civic, commercial, and residential districts. The City intends that the Trades District will celebrate both the heritage and history of what was here and embrace new and emerging ideas and technologies that allow us to live in a more sustainable manner. It will also incorporate some limited retail, commercial, and residential opportunities in order to support a work/live environment and a complementary mix of land uses.

The selected development partner for the Trades District project will have experience acting as a commercial broker, and the ability to understand the City’s vision for this area and find purchasers who will partner with the City to fulfill its vision for the Trades District.

D. Local Commercial Broker

Finally, the City is looking for experienced local commercial brokers that may be utilized by the City and its Redevelopment Commission periodically in real estate transactions. The City intends to rely upon the services of one or more qualified local brokers on an as-needed basis to assist in developing strategies for the acquisition and sale of property necessary for the continued growth

6

and development of our community in addition to the ongoing development projects. The successful broker(s) would work with the Bloomington Redevelopment Commission and the City to negotiate land acquisitions with buyers and prospects, coordinate real estate transaction closings, and manage many of the accompanying activities and services necessary. The local broker(s) should have intimate knowledge of not only Bloomington but also innovative and vibrant development and design across the country. The broker(s) will partner with the City to implement the City’s cohesive vision that links each of Bloomington’s string of pearls and enhances our community as a thriving hub of technology, tourism, culture, and sustainable development. Bloomington is continually growing and changing and is looking for equally dynamic partners to join us in executing our vision for the future.

The successful local commercial broker(s) should be licensed in the State of Indiana, have experience in our local real estate market, a wide-ranging marketing strategy and reach, experience as a commercial broker, a proven record of successful transactions of all sizes and scale, and be comfortable communicating the intricacies of the transactions in open public forums. As with the Trades District, our local partner should also demonstrate the ability to understand the City’s vision and find purchasers who will partner with the City to fulfill its vision throughout the City.

E. Conclusion

This Request for Qualifications (RFQ) is the first step in selecting a firm or firms that will work with the City on plans for redeveloping the Hospital Site and areas around the Switchyard Park, provide assistance with marketing and selling the Trades District parcels, and provide ongoing, as needed local brokerage services to the City in acquiring real property for future needs and growth. The City is seeking creative, efficient, visionary master developers and brokers to help the City maximize the potential of these centrally located areas. The City seeks input from potential partners regarding the terms and conditions under which they would participate in such a project. Tell us why you are the right partner for one or all of these projects.

II. Background: The City of Bloomington

Nestled in the rolling hills of southern Indiana, Bloomington is a small city with big-city amenities, atmosphere and culture—home of Indiana University’s flagship campus (“IUB”), the Little 500 bicycle race; the Lotus World Music & Arts Festival; the WonderLab Museum of Science, Health, and Technology; a thriving and well-regarded farmers’ market;1 and one of the most sought after craft beers in America.2

1 http://www.cookinglight.com/healthy-living/travel/best-farmers-markets/bloomington-farmers-market, accessed February 26, 2017. 2 http://www.huffingtonpost.com/2015/02/18/most-sought-after-beers_n_6702260.html, accessed February 26, 2017.

7

Bloomington residents appreciate world-class entertainment and cultural festivities, value community and environmental causes, and are committed to preserving and expanding recreational opportunities through the City’s extensive network of trails and its many parks. The community has a passion for the arts as demonstrated by the creation and development of the Bloomington Economic & Arts District, and boasts a budding tech and life sciences sector. The City’s built environment blends historic districts from the last century and a half with collegiate Gothic architecture on the IUB campus and contemporary and modern structures throughout. Bloomington is clearly a community steeped in tradition but with an eye always on progress and sustainability.

Bloomington is the sixth most populous city in Indiana, with an estimated population of approximately 84,067.3 The City is fairly densely populated, with 3,474 people per square mile, compared to only 88 people per square mile, on average, nationwide.4

Bloomington supports a vibrant economy and a thriving business district composed of roughly 6,000 businesses.5 The City’s business community is noted for excellence in pharmaceuticals, medical devices, technology, healthcare, and the arts. Its concentration of employment in the life sciences is six times greater than the U.S. average and growing. Indiana University, IU Health, and IU Health Bloomington Hospital recently announced plans to collaborate to create a regional academic health center expected to employ thousands and expand opportunities for health sciences education and research.

In addition to major employers such as IUB (7,701 employees), IU Health Bloomington (over 2,200 employees), the Cook Group (3,330 employees), Baxter Healthcare Pharmaceuticals (1,100 employees), and the largest limestone quarrier in the United States, Indiana Limestone Company, downtown Bloomington alone boasts more than 140 local and unique restaurants, bars, and coffee shops, seven local breweries, and a distillery.

The City of Bloomington is frequently heralded as a desirable place to live and work, and it has been the recipient of a number of awards recognizing its community assets and quality of life. Bloomington has been recognized by Inc. Magazine as one of “America’s Best Cities for Doing Business” and as one of Entrepreneur Magazine's Top 50 “Hottest Small Cities for Entrepreneurs.” Forbes Magazine ranked Bloomington No. 3 in its “Best Places for Business Careers” feature and as a top city for work-life balance. 6 The City has also been named one of the “Top 5 Food Towns

3 United States Census Bureau, “QuickFacts Beta: United States: Bloomington City, Indiana,” http://www.census.gov/quickfacts/table/PST045214/00,1805860, accessed February 26, 2017. 4 Sperling’s Best Places, Bloomington, Indiana, http://www.bestplaces.net/people/city/indiana/bloomington, accessed February 26, 2017. 5 United States Census Bureau, “QuickFacts Beta: United States: Bloomington City, Indiana,” http://www.census.gov/quickfacts/table/PST045214/00,1805860, accessed February 26, 2017. 6 https://www.forbes.com/lists/2009/5/bizplaces09_Bloomington-IN_2747.html accessed June 19, 2018.

8

in the Midwest” by Midwest Living Magazine and the “7th fastest growing destination for wine and culinary enthusiasts in the nation” by Orbitz Research Travel.7

Potential residents and business owners recognize Bloomington’s attributes—and the City’s population is steadily increasing, with the City’s growth (3.8 percent) higher than that of the United States as a whole (3.3 percent) from April 1, 2010 to July 1, 2014.8 Moreover, Bloomington’s population is younger than the national average, owing in part to the City’s large number of university students. The median age of Bloomington residents is 23.4 years, compared to 37.2 years nationwide.9

Finally, Bloomington is home to several higher education institutions, including IUB, the flagship campus of the State’s eight-campus university system, with 38,364 undergraduate students and more than 10,000 graduate students. IU is a world leader in professional, medical and technological education. The vibrant surrounding community has earned its recognition as one of the “best college towns to live in forever.” 10

7 http://comparebloomington.us/quality-of-life/. 8 United States Census Bureau, “QuickFacts Beta: United States: Bloomington City, Indiana,” http://www.census.gov/quickfacts/table/PST045214/00,1805860. 9 Sperling’s Best Places, Bloomington, Indiana, http://www.bestplaces.net/people/city/indiana/bloomington 10 Livability, City of Bloomington, Indiana, http://www.livability.com/in/bloomington.

9

Figure 2: Bloomington and Surrounding Area11

11 Map of Bloomington, Indiana available online at: https://bloomington.in.gov/maps

10

III. Community Development Financial Institutions (CDFIs) andOpportunity Zones

Successful respondents to this RFQ will be encouraged to work closely with the City on its recent strategic focus on CDFI’s and Opportunity zones. In March 2018, Bloomington Mayor Hamilton announced that the City was developing and piloting a new model for bringing national financing to local community development. Bloomington is encouraging and incentivizing community development financial institutions (CDFIs) to work here by becoming a “CDFI Friendly City.”

A. About CDFIs

CDFIs are financial intermediaries that provide capital and services to underserved populations - low-income, low-wealth and other disadvantaged groups and areas. For more than 30 years, CDFIs have produced substantial community impact through jobs, affordable housing, and sustainable community facilities, as well as solid financial returns. More than 1,000 CDFIs operate in the U.S., providing billions of dollars of financing annually. But smaller markets, including cities such as Bloomington, often face challenges attracting CDFI financing.

As being developed and piloted in Bloomington, a CDFI Friendly City is a new strategy for smaller markets that would benefit from CDFI financing but are less able to support a stand-alone CDFI. A CDFI Friendly City will include:

● A designated local authority and expertise to ensure effective community control;● Local capital investment earmarked to attract and leverage financing from CDFIs and

private and public state, regional, and national partners;● An independent, private, mission-centered organization to lead the work; and● A sustainable business model, with goals and accountability.

B. About Opportunity Zones

In May 2018, the City of Bloomington and Monroe County were awarded four (4) census tracts to be designated as Opportunity Zones. These census tracts include: 18105000100 (City of Bloomington), 18105000401 (City of Bloomington), 18105000501 (Monroe County), 18105001101 (City of Bloomington). The first and second listed above include the Hospital Site and the Trades District respectively.

According to the Economic Innovation Group: “Opportunity Zones are a new community development program established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the chief executives of every U.S. state and territory.”

11

IV. RFQ Response Requirements

The City welcomes all respondents and encourages them to share their expertise, which may be used to shape the direction of these projects. Respondents should demonstrate their interest in providing any or all of the following:

1. Master developer services for the Hospital Site;

2. Master developer services for areas around the Switchyard Park;

3. Brokerage services for vacant parcels in the Trades District; and/or

4. Local commercial brokerage services on an as-needed basis for sale and acquisition ofreal estate throughout the City.

Potential respondents should indicate their interest in either one, all or a combination of the projects listed above, and tailor their responses accordingly. The City will assess the responses based on the respondents’ experience and how well the responses address the City’s objectives.

The City requests the following specific information from respondents:

1. Cover Letter: Please include company name, address of corporate headquarters, addressof nearest local office, contact name for response, and that person’s contact information(address, phone, cell, email, other). Keep response to one (1) page.

2. Compensation: Include the proposed compensation structure and payment schedule foryour services.

3. Experience: Provide a statement of experience discussing past performance, capabilities,and qualifications. Identify other similar projects your firm has designed and/or built.Explain how your firm is a suitable partner for the project(s).

4. Work Approach and Schedule: Summarize the work approach, including number andpurpose of visits to Bloomington and estimated time and material requirements from Citystaff, and the proposed schedule you would employ for the project(s).

5. References: Provide a minimum of three (3) references, including contact information,from previous contracts or partnerships. Keep response to two (2) pages.

V. RFQ Response Process

A. Questions

Questions related to this RFQ should be emailed to Julie Martindale, Purchasing Manager, City of Bloomington at martindj@bloomington.in.gov no later than 4:00 PM EST on Friday, July 13, 2018.

12

B. Response Deadline

Final RFQ submissions must be received in electronic form by 4:00 PM EST on Friday, July 27, 2018. Please send RFQ responses by email in PDF format to martindj@bloomington.in.gov

Please identify any proprietary and/or confidential information as such.

C. Summary of RFQ Process Deadlines

The following is the schedule for responding to this RFQ. The schedule is subject to change:

July 5, 2018 – RFQ issued

July 13, 2018 – Deadline for submitting questions

July 20, 2018 – Responses to questions due from City

July 27, 2018 – RFQ responses due

Following the evaluation of responses the City may begin negotiations with preferred RFQ respondent(s), issue a more detailed Request for Proposal (RFP), issue an RFP to selected RFQ respondents, or choose another direction that is deemed in the community’s best interest. Responding to the RFQ is not a guarantee of a contract award. Further, there is no guarantee an RFP will be developed as a result of this RFQ. The City reserves the right to withdraw the RFQ or any subsequent RFP, or to decline to award a contract. The City of Bloomington thanks you in advance for your thoughtful response.

VI. Personal Presentations

At its discretion, the City may request that vendors and other parties that provide a timely response to this RFQ make an individual and personal presentation to better explain information or proposals provided in the RFQ. These presentations, if requested by the City, shall be held at a time and place of mutual convenience.

13