Request for for Real Estate Development March 3, 2014 · 2018. 3. 29. · Reno-Tahoe Airport...

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Reno Reno - - Tahoe Airport Authority Tahoe Airport Authority Reno Reno - - Stead Airport Stead Airport Request for Request for Qualifications Qualifications for for Real Estate Real Estate Development Development March 3, 2014 March 3, 2014

Transcript of Request for for Real Estate Development March 3, 2014 · 2018. 3. 29. · Reno-Tahoe Airport...

Page 1: Request for for Real Estate Development March 3, 2014 · 2018. 3. 29. · Reno-Tahoe Airport Authority Reno-Stead Airport Reno-Stead Airport Vacant Land Real Estate Development RFQ

RenoReno--Tahoe Airport AuthorityTahoe Airport Authority RenoReno--Stead AirportStead Airport

Request for Request for Qualifications Qualifications

forfor Real Estate Real Estate

DevelopmentDevelopment

March 3, 2014March 3, 2014

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REAL ESTATE DEVELOPMENT

REQUEST FOR QUALIFICATIONS RENO-STEAD AIRPORT

The Reno-Tahoe Airport Authority (RTAA) is issuing this Request for Qualifications (RFQ) to solicit competitive qualifications from development firms or a group of firms that have assembled themselves into a Master Development team with expertise in large scale industrial developments. The RTAA is seeking to create a public-private partnership that will maximize long-term revenues for both parties and generate economic benefit to the RTAA and the Northern Nevada region through development of approximately 3,500 acres of aeronautical and/or non-aeronautical land located at the Reno-Stead Airport (RTS) in Reno, Nevada. Specifically, there are approximately 2,800 acres of undeveloped non-aeronautical land and approximately 700 acres of aeronautical land, which includes 3.5 acres of previously developed hangar pads surrounding the airport. The ideal team will have expertise in real estate development strategy, marketing, airport development, leasing and property management, real estate economics, deal structuring, financing, public private partnerships, cost estimating, urban planning, architectural design, engineering and construction. Alternatively, qualification packages for smaller scale industrial developments on any portion less than 3,500 acres will also be considered. SECTION 1 - INTRODUCTION & COMMUNITY OVERVIEW Welcome to Reno, Nevada where the geographic proximity to major markets such as the San Francisco Bay Area create an ideal location for business opportunities including aviation, logistics and distribution networks, telecommunication, manufacturing, and start-up opportunities. As a state, Nevada ranks near the top for corporate advantages based on our reputation for business-friendly laws and tax structure. Additionally, Nevada was recently identified as the third best state in the nation for friendly business tax climate according to The Tax Foundation, a nonpartisan research association. 1.1 Advantages of Doing Business in Nevada 1.1.a. State Strategic Plan

The Governor’s Office of Economic Development (GOED) was created during the 2011 Session of the Nevada Legislature through a collaboration of the Nevada Governor's Office and the Leadership of the Nevada State Senate and State Assembly. GOED’s purpose is to promote a robust, diversified and prosperous economy in Nevada, stimulate business expansion and retention, encourage entrepreneurial enterprise, attract new business and facilitate community development.

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As part of this initiative, GOED has identified target sectors and opportunities in the Northern Nevada region. Among other initiatives, GOED has identified aerospace and defense as a key initiative for the state which includes Unmanned Aerial Systems (UAS), assembly and testing, as well as maintenance and repair operations. Logistics and Operations have also been identified as a key initiative that includes warehousing and distribution, advanced logistics, air cargo, integrated manufacturing-distribution, assembly manufacturing, food processing operations, and freight transportation (ground and rail).

1.1.b. State Incentives

Nevada’s tax incentive program is one-of-a-kind and one of the best reasons to do business in Nevada. Business owners and their employees keep more of what they earn than those in other states because Nevada offers one of the most attractive tax structures in the country.

No corporate income tax No inventory tax No personal income tax No franchise tax on income No inheritance or gift tax No unitary tax No estate tax Competitive sales and property tax rates Minimal employer payroll tax (modified business tax)

In addition to the minimal tax environment, the state offers programs to reduce the amount of taxes they do impose, including sales and use tax abatement and deferral programs, payroll tax abatements and personal property tax abatements. The state also offers financial support for workforce training. Nevada is also a right-to-work state, which allows employers to hire based on their own standards.

1.1.c. Nevada Unmanned Aerial Systems (UAS) Program

On December 30, 2013, the Federal Aviation Administration (FAA) selected the State of Nevada as one of the six UAS test site operators that will allow the agency to develop research findings and operational experiences to help ensure the safe integration of UAS into the national airspace system. Researchers will develop and demonstrate new UAS technologies to fly safely in the same skies shared by all other aircraft. The Governor’s Office of Economic Development anticipates that Nevada’s selection as a UAS test site could bring 15,000 jobs to the state at an average wage of $62,000 per job with the potential of $2.5 billion in economic impact, $125 million in state and local tax

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revenue, and thousands more in feeder industries. As a Statewide effort, the UAS program is supported by the Governor’s Office of Economic Development (GOED), University of Nevada, Reno (UNR), Desert Research Institute (DRI), Nevada Institute of Autonomous Systems (NIAS), and the Nevada congressional delegation among others.

1.2 Reno-Sparks Region Located on the border of northern California, the Reno-Sparks region is centrally located for the west coast, farther west than Los Angeles and farther north than San Francisco providing one day truck distribution to the entire west coast from Seattle to San Diego. The geographic position of the Reno-Tahoe International Airport results in a thriving cargo operation that is served by nearby Interstate 80, State Highway 395, helping to fuel e-fulfillment, logistics, and distribution growth. The community is also served by Union Pacific Railroad’s Class 1 Transcontinental rail line providing outstanding transportation opportunities to the Region. According to a 2011 study commissioned by the Governor’s Office of Economic Development, logistics and distribution were identified as key industries that Nevada should focus on as part of its economic diversification efforts. (Findings are documented in a November 2011 report entitled Nevada Industry and Competitive Analysis: Identification of Industry Opportunities). The report calls the logistics industry cluster “a natural target industry for Nevada,” and one which “has strong potential for job creation over both the short- and long-terms.” Additionally, it identifies an opportunity for Nevada to “serve as a West Coast hub of operations” for warehousing and distribution; advanced logistics; air cargo; integrated manufacturing- distribution, assembly manufacturing and food-processing operations; and freight transportation (ground and rail). According to the report, key to the state’s success is its location and geographic advantages, strong existing infrastructure and cost and regulatory advantages. Urban Outfitters Inc. recently opened large e-fulfillment, warehouse, and distribution centers that join existing facilities like Amazon.com, Barnes & Noble, Wal-Mart, Starbucks, Petsmart and JC Penney. As further evidence of this sectors growth, OLE Mexican foods, a large manufacture and distribution facility chose Reno as its central location for distribution to their customers on the West Coast. According to the Economic Development Authority of Western Nevada (EDAWN), this new facility is expected to bring approximately 350 new jobs to Reno over the next few years. Reno is also a Network Access Point for internet traffic. The Interstate 80 (I-80) corridor and rail road Right-of-Ways (ROWs) is the primary east/west, state-of-the-art digital and fiber optic highway with recent upgrades. The Reno and Northern Nevada region is served by six major interstate fiber-optic networks and all major long-distance carriers, including AT&T, Level3, Qwest, and Verizon. Recent fiber dense wave digital modulation (DWDM) infrastructure improvements by major network operators allow for superior, large corporate volume data throughput. There is a lower latency, a synonym for the delay it takes for a packet of data to get from one designated point to another, from Reno to the Pacific Rim than the San Francisco Bay Area. Reno has completed Sonnet Fiber Optic technology covering the valley and it is readily available to all businesses in the region.

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Internet fulfillment, bio-pharma, and hi-tech business have realized the endless possibilities of locating in the Reno-Sparks region. One of the largest hi-tech companies in the world, Microsoft, has their licensing division located here, producing half of the organization’s total revenue at $32 billion dollars and supporting their partner groups globally in Dublin, Ireland and Singapore, as well as their manufacturing facility in Puerto Rico. In 2013, Apple, Inc. completed construction on a data center to house its various online services, such as the iTunes store, the App Store, and its iCloud data storage and syncing services. This data center, a 20,000 square foot, 2.5-megawatt facility is located at the Reno Technology Park, approximately 11 miles east of Sparks. It is estimated that the data center will result in 41 full-time jobs, 200 long-term contractor jobs and approximately 580 construction jobs on top of an expected $343 million of economic activity. Apple also plans to construct a downtown Reno office where the equipment for the data center will be purchased. This business and purchasing office will be in the Tėsserra District, a state and local government sanctioned “tourism improvement district” that allows for sales tax abatement.

The anticipated 10-year investment in Northern Nevada by Apple is estimated to be approximately $1 billion. The economic benefits of Apple’s announcement will likely multiply because the company is so well-respected that other corporations may give Northern Nevada a closer look. UNR, DRI and Truckee Meadows Community College provide a continuous supply of workers with higher education credentials. Programs at the UNR and TMCC are emphasizing Science, Technology, Engineering and Mathematics (STEM) curriculums, which has been identified by the State as a growing area of emphasis in the state’s K-12 schools as well. This nexus of geographic location, educated and skilled workforce, fiber infrastructure and a strong transportation element, make the region ideal for manufacturing and distribution centers. 1.2.a. Business Market Overview

The Reno-Sparks region is outwardly pro-business and continues to expand as numerous large name industries and corporations call the area home. With a population of approximately 409,000, the area provides the essence of a close-knit community while offering the amenities available in a larger city. High quality of life is enhanced by quality education with institutions such as the University of Nevada, Reno, Truckee Meadows Community College, Western Nevada College, Great Basin College, University of Phoenix, Morrison College and the Desert Research Institute. The area enjoys four complete seasons which enhance the multitude of activities in the area. Citizens enjoy cultural events, excellent public services, and boundless recreational opportunities including nearby skiing, golfing, fishing, hiking and boating just to name a few. The Reno-Tahoe region is also the home of several annual special events such as the Reno Rodeo, the Reno Tahoe Open, the Reno National Championship Air Races & Air Show, the Great Reno Balloon Races and Hot August Nights.

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1.2.b. Commercial Real Estate Market Overview

According to the 2013 Fourth Quarter Reno Industrial Market View, published by the CB Richard Ellis group, occupier demands have strengthened the industrial sector rental rates in Northern Nevada through 2013 and it appears the trend will continue into 2014. The fourth quarter of 2013 saw 1,168,921 square feet of net industrial absorption continuing, with an overall vacancy rate of 8.8% at year end. Despite strong demand, there was minimal speculative construction throughout the year. Year-to-date net absorption of nearly 4 million square feet was recorded – the highest level in approximately eighteen years. The increase in demand (over one million square feet for the last two quarters of 2013) has been a major factor in base rent growth across property types. Current base rental rates, while still shy of peak levels of 2007, are forecast to continue to increase across all property types as demand remains strong. Specific to the Reno-Stead submarket (located in the North Valleys), there is currently approximately 14.5 million square feet of net rentable industrial product. The vacancy rate at the close of 2013 was 9.2%, which is down significantly after a strong year to date net absorption of approximately 530,000 square feet. Average asking lease rates in this submarket are currently approximately $0.35 per square foot per month. Further supporting the commercial real estate market, the Truckee Meadows Regional Planning Agency (TMRPA) adopted an Industrial Land Analysis in December 2013. The analysis identified the Reno-Stead Airport as the last large (100± acres) contiguous site in the Truckee Meadows large enough to accommodate large scale industrial development. Looking forward into 2014, the general consensus among commercial real estate professionals is that tightening supply, rental rate growth and continued demand will bring the next wave of speculative development in Northern Nevada. In response to continued demand in the North Valleys, Dermody Properties broke ground on a new build-to-suit project offering approximately 624,000 square feet in February 2014.

1.3 Reno-Tahoe Airport Authority The Reno Tahoe Airport Authority (RTAA) is a quasi-municipal corporation that was created by the Nevada State Legislature and began operation on July 1, 1978. The act creating the RTAA provides that it will serve a public use and will facilitate safe and convenient air travel and transport to and from the Reno-Tahoe area. The RTAA is an independent entity that is not part of any other unit of local government and does not use local property or sales tax revenue to fund its operation. The nine-member Board of Trustees (the Board) that governs the RTAA is appointed by the City of Reno, City of Sparks, Washoe County and the Reno-Sparks Convention & Visitors Authority. Four members are appointed by the City of Reno, two by the City of Sparks, two by Washoe County, and a ninth board member is appointed by the Reno-Sparks Convention & Visitors Authority. The Board members’ terms are staggered to ensure the presence of experienced members.

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The RTAA owns and operates the Reno-Tahoe International Airport (RNO) and Reno-Stead Airport (RTS). RNO is the 66th busiest airport in the nation with 3.5 million passengers and 80,000 operations per year. RTS is a 5,000 acre general aviation facility that serves as a designated reliever airport for the RTIA. Additionally, RTS is home to 200 based aircraft, as well as the famous Reno National Championship Air Races & Air Show.

RTAA leadership has pro-development philosophy and offers several advantages to developing and operating a business on RTAA -owned property such as including no land loans or acquisition costs and customized incentive programs. Additionally, all land owned by RTAA is currently exempt from property taxes in accordance with legislation from 1978. It should be noted that RTAA is unable to guarantee the exemption for the term of any Lease; however, RTAA will meet and discuss the impact of such legislation should this change.

Specifically, at RTS, advantages include rare airside access and direct taxi lane opportunities, Industrial and Commercial zoning in place, proximity to existing fiber infrastructure, road and rail infrastructure, and Foreign Trade Zone opportunities. RTS is less than 10 miles away from the University of Nevada, Reno and the Desert Research Institute and approximately 15 miles from the Reno-Tahoe International Airport.

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SECTION 2 – RENO-STEAD AIRPORT INFORMATION The RTAA owns and operates the Reno-Stead Airport (RTS), which began as a military base used for training purpose by the Air Force, Navy, Marines, foreign officers and most of the pre-1965 astronauts. From 1952 to 1958 the United States Air Force Survival School also occupied the base for training purposes. In June of 1966, the former Stead Air Force Base began operation as Reno-Stead Airport. In 1977, the Nevada Legislature established the RTAA to own and operate RTS. The vast majority of RTS property, in excess of 4,000 acres, was acquired by the RTAA after 1978. Following acquisition in 1978, RTS was identified as a general aviation reliever airport for Reno-Tahoe International Airport (RNO) capable of handling all general aviation and small scale air cargo activities. Today, the airport offers two runways (9,000 ft and 7,608 ft), an Instrument Landing System and Global Positioning System (GPS) capabilities, and a number of flight training aviation services to the Northern Nevada and California areas. In addition to aviation opportunities, RTS is served by State Highway 395 and a Union Pacific rail spur. The proximity of the rail spur provides opportunities for cargo rail service and on a larger scale, the potential for development of a multi-modal business park. RTS includes a number of existing structures used primarily to support aviation activities such as buildings used for aircraft storage (e.g. hangars), aircraft maintenance, service and fueling, and airport operations (e.g. airport terminal and emergency operations center). RTS includes the last large contiguous undeveloped piece of industrially zoned land located in the City of Reno and Washoe County. It has been identified as a regional employment center by the Truckee Meadows Regional Planning Agency with 5,170 total acres, 3,500 acres of which are zoned to accommodate industrial development (refer to Exhibit B – Development Areas). At the City level, RTS property is zoned Mixed Use (MU) which allows high intensity mixed use (including industrial) development in designated regional centers. MU zoning is only permitted where regional centers, such as the Reno-Stead Airport Regional Center Overlay, have been adopted as part of the City of Reno Master Plan. Over $50 million has been invested in airport improvements over the last 12 years including a new terminal building. In December 2013, the Freedom Flight Terminal and Emergency Operations Center was opened at RTS. The $6 million, two-story, 12,000 square foot building houses an Administrative Office, an Emergency Operations Center, a Pilot’s Lounge, a Community Conference Room, and offers approximately 1,500 square feet of leasable space with rare airside and landside access.

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2.1.a. Airfield

Runway 8/26: the primary runway; 7,608’ X 150’; grooved asphalt; PAPI, REILS, and HIRLs; load-bearing capacity 60,000 lbs. single wheel, 100,000 lbs. dual wheel and 150,000 lbs. duel-tandem wheel.

Runway 14/32: the secondary runway; 9,000’ X 150’; grooved asphalt; ILS, PAPI, REILS, and HIRLs; load-bearing capacity 75,000 lbs. single wheel, 200,000 lbs. dual wheel and 320,000 lbs. duel-tandem wheel.

Runway 32’s threshold was displaced 1,200’, so that landings have 7,800’ usable runway; other operations have use of the full 9,000’.

An Automated Weather Observation System (AWOS) provides pilots with phone and radio messages.

Six (6) lighted windcones. 2.1.b. Tenants, Users and Amenities

RTS operates a 24 hour per day/ 7days a week operation with snow removal as necessary to maintain operations. There are over 150 tenant leases at RTS. For the period June 2012–May 2013, RTS had approximately 42,000 local operations, 19,000 itinerant operations and 10,000 military operations, for a total of 64,000 operations. Major tenants include the fixed-base operator (FBO) Aviation Classics, Ltd.; the Reno Air Racing Association, Inc. (RARA); the Nevada Army National Guard (NV-ARNG); and the Bureau of Land Management (BLM). Aviation Classics opened a self-service fuel island on March 6, 2002, near its facilities

at the east side of the airfield.

RARA conducts the National Championship Air Races each September; certain pilots are certified to fly in the Air Races through the Pylon Racing (aka Rookie) Seminar held each June; its main facilities are at the west end of the airfield. Refer to Exhibit C, Reno-Stead Airport Master Plan, for additional information regarding race course parameters.

The NV-ARNG has the Harry Reid Training Center, named for one of Nevada’s United

States Senators, on 100+ acres on the west side. It conducts a variety of military activities and works with helicopter and fixed-wing entities on-site.

The BLM occupies an air tanker base, built by RTAA, on the east side of the airfield,

used primarily for fire-fighting support services during fire season, typically May through September.

In addition to these major tenants, RTS has a diverse group of aircraft, including civilian helicopters, piston, turbine and jet aircraft, amphibious aircraft and various restored or converted former military aircraft. Annual fuel flowage of both Jet A and 100LL is typically in excess of 100,000 gallons each.

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RTS is designated a Foreign Trade Zone which further augments its attractiveness for future business development.

Over the last ten years, multiple improvements have occurred at RTS: Adoption of the Reno-Stead Airport Regional Center Plan in 2003, which aids in

advancing development. Runway 14/32 was completely reconstructed in 2005. A Wide Area Augmentation System (WAAS), to supplement the GPS approach, was

completed in 2006. In 2008-09, NV Energy made significant electrical infrastructure improvements. In 2009, the FAA completed the ILS approach to Runway 32. In December 2010, the RTAA completed FAA-approved Runway Safety Area

improvements for both Runways 8/26 and 14/32. In December 2013, the Freedom Flight Terminal and Emergency Operations Center

opened offering tenants a new pilot’s lounge, community meeting space, and leasable ground floor space.

Taxiway C will be reconstructed to better serve the airport in 2014. 2.1.c. Reno-Stead Unmanned Aerial Systems (UAS) Program

Identified as one of the initial four authorized test ranges within the State of Nevada, the Reno-Stead Airport provides an ideal location for research and development and testing of Unmanned Aerial Systems (UAS). RTS was identified as a test range primarily because of the non-military controlled airspace corridors and the access to the Reno Military Operations Area (MOA), located north of the airport. RTS provides a variety of unique testing conditions for UAS development including, but not limited to, uncontrolled airspace, abundant open space, basin and range topography, variable weather, an educated workforce and existing infrastructure. These testing conditions have positioned RTS on the forefront of research and development, testing and manufacturing to complement efforts by the Desert Research Institute (DRI) and the University of Nevada, Reno (UNR), as well as businesses that currently operate at RTS like Sierra Nevada Corporation (SNC), Tactical Air Support, and Helitrak.

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SECTION 3 – REAL ESTATE DEVELOPMENT OPPORTUNITY OVERVIEW The RTAA is seeking a development partner(s) that can integrate economic and development strategies into a comprehensive business model that results in a sustainable and economically viable development. The ideal development partner(s) will have extensive experience in large scale public-private projects throughout the United States. Experience spanning a variety of sectors, including aviation, retail, infrastructure, real estate development, transportation, and water supply and delivery will be considered favorably. The Reno-Stead Airport (RTS), which includes 5,170 acres of land, is located in the community of Stead, approximately 10 miles northwest of the central business district of the City of Reno, Nevada. The development opportunity includes approximately 3,500 acres, or any portion thereof, of aeronautical land that could accommodate aircraft general aviation hangars and/or ancillary aviation services, as well as non-aeronautical land appropriate for non-aviation businesses on leased airport property. Specifically there are approximately 2,800 acres of undeveloped non-aeronautical land and approximately 700 acres of undeveloped and developed aeronautical land, of which approximately 3.5 acres have been improved for private hangar development (with taxi lanes in place) adjacent to the Airfield (refer to Exhibit B). As depicted on Exhibit B, the undeveloped land excludes the existing airfield, Runway Protection Zones, and existing development surrounding RTS. Qualification packages for smaller scale industrial developments on any portion less than 3,500 acres will also be considered. In accordance with the City of Reno’s land use and zoning code, the property is zoned Mixed Use/Reno-Stead Airport Regional Center (MU/RSARC). This zoning designation allows for a mix of Industrial/Manufacturing/Commercial uses, including general aviation uses. The RTAA has a good standing relationship with City Staff and Discretionary Review Boards including Washoe County Citizen Advisory Boards, Reno Planning Commission, and Reno City Council. RTS is surrounded by Washoe County Open Space to the north, Bureau of Land Management directly to the east, commercial and industrial uses to the south, and sparsely populated residential uses to the west. Through this RFQ, the RTAA is soliciting market interest for aeronautical and non-aeronautical development opportunities with the goal of maximizing revenue through the development of an industrial campus leveraging the Unmanned Aerial Systems (UAS) test site designation, market proximity for logistics and distribution, and rare airside land. In accordance with FAA grant assurances, RTAA cannot sell the land, or any portion thereof; however, potential developers may be offered an agreement term of up to fifty (50) years depending on the amount of the proposed investment in new improvements, with all improvements required to revert to the ownership and control of RTAA at the expiration or termination of the agreement. The final available agreement term offered shall be based on the

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financial investment commitment of the Developer, contained in the agreement as negotiated between the RTAA and the Developer. This land was recently identified by the Truckee Meadows Regional Planning Agency as the last large (greater than 10 acres) contiguous undeveloped piece of land with Industrial zoning in Washoe County. Based on the large acreage available, this land has been identified as an appropriate location to develop an Industrial/Commercial campus focused on leveraging airfield facilities, including a “center of excellence” for Unmanned Aerial Systems business. As a pro-development organization, the RTAA will consider agreement structures of a Master Developer, such as public-private partnerships, development agreements, preferred lease structuring, etc. Such development is compatible with the Regional Center Plan and the City of Reno Master Plan, which designates the site as an emerging employment center. As mentioned earlier, the aeronautical land includes approximately 3.5 acres of previously improved land immediately available for development of hangar pads intended to support aeronautical development at RTS. Three existing taxi lanes provide direct access from Runway 8/26 to the improved pads. These pads have been rough graded slightly above taxi lane grade to ensure adequate drainage exists on site. The pads, as graded, could support up to up to 60 hangars depending on size and layout. These pads are offered as a ground lease agreement or may be part of a Master Developer agreement. The improved pads consist of four (4) large pads and four (4) small pads. Specifically, the large pads have been designed to accommodate two building envelopes, each 60’ x 245’ or approximately 14,700 square feet in size. As an option, the two envelopes could be combined to create a single building envelope, 135’ x 245’, or approximately 33,000 square feet in size. In addition, there are four (4) smaller pads around the perimeter of the taxi lanes. These pads have been designed with a building envelope 60’ x 245’, or approximately 14,700 square feet in size. These improved pads have been designed to accommodate a variety of sizes and types of hangars including large individual/corporate hangars or smaller box hangars, with incidental amenities, for storage of piston, turbo-prop and small fixed-wing jet aircraft. A unique aspect of this opportunity is the ability of a company or user to taxi directly up to a hangar from the runway. Non-aviation uses will not be approved for development on these pads. A map depicting this development opportunity can be found at Exhibit B. Development of any site(s) shall be subject to all requirements for development of airport property include but not limited to 14 C.F.R. Part 77, Objects Affecting Navigable Airspace. Respondents, and thereafter Proposers, must research federal, state and local development requirements, standards and/or restrictions for construction on and use of the site(s) including, but not limited to, building height and setback, site coverage, landscaping, parking, fencing, security and fire protection. The successful Respondent will be responsible for having a survey of the final leasehold performed, for preparation of a drawing and metes and bounds legal description, which if deemed suitable, will be appended to a Lease.

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The entire development site offers several attributes that further support development at RTS including an existing roadway network, a rail spur, nearby utilities including fiber, logistics, and political and community support. Development of the site will likely require that certain utility, storm water drainage and access infrastructure systems be upgraded or installed. In some cases, existing infrastructure systems and/or lines may have to be relocated to support development. The following provides an overview of the current infrastructure available at RTS: Roadway Infrastructure The undeveloped land, located approximately 10 minutes from downtown Reno, is accessed via Highway 395 North. Highway 395 includes multiple direct grade freeway interchanges to arterial roadways including Stead Boulevard and Lemmon Drive. Stead Boulevard, the primary access point, is designated by the Regional Transportation Commission (RTC) as a Major Arterial road. As a Major Arterial road, Stead Boulevard has been designed to carry relatively high numbers of trucks that serve industry and warehousing in the area. Typically, these roads provide drivers alternatives to highways and help relieve congestion when available.

Rail Infrastructure The site also includes a rail spur along the southern boundary which connects to the Union Pacific (UP) Railroad line located approximately four miles south of RTS. This UP spur currently provides service for several off-airport industries that have been constructed and expanded in the area along Moya Boulevard. It is anticipated that this spur could readily serve or be extended to serve existing and new on-airport businesses in the future. Drainage The majority of RTS property drains to the south and southwest. Surface water drainage from the north of RTS originates in the hills to the north and flows across the airport in a south-southwest pattern. There are no existing ponds or permanently wet channels within the airport boundaries. The natural drainage of RTS ultimately empties into either Silver Lake, to the southwest of RTS, or Swan/Lemmon Lake to the southeast of the airport. Any development on RTS may increase storm/surface drainage runoff and, therefore, will likely require drainage controls to avoid increased flows into the neighboring communities. Consideration of these potential drainage requirements must be included in planning and design concepts at RTS. Utility Infrastructure

POWER NV Energy operates a 120kv power transmission line located along the western boundary of RTS. In addition to the existing 120kv line, there is a new substation on Red Rock Road near the northwestern corner of the RTS property boundary. Construction of this substation has been delayed based on a decrease in growth and lower energy demands in the area. However, as demands increase and growth occurs, construction will resume. According to NV Energy, if significant growth occurs in the North Valleys, system upgrades at the substation will be made along with conductor upgrades.

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Northern Nevada has multiple renewable energy options. As an alternative, developers may have the option to utilize deregulated wholesale power. This option could enable developers multi-year power purchase contracts to lock in rates on a long-term basis. Additionally, developers may have the opportunity to purchase and assign transmission rights to Shell Energy North America to support energy requirements.

WATER RTS is located within two water service districts; Washoe County Utilities and Truckee Meadows Water Authority (TMWA). TMWA is responsible for the water supply to the existing airport facilities and buildings including the RTS Freedom Flight Terminal building. As development occurs at the site, discussions with both TMWA and Washoe County Utilities will be necessary on how to best serve new development. TMWA is currently working on upgrades to their existing system in the Reno-Stead area that could provide up to 200 acre feet of water to the area. RTAA has a limited number of available water rights available to support development at RTS; however, additional water rights may be available for purchase from private parties. Currently, there is a domestic water line network that enters RTS from the south off of Alpha Avenue. This network generally runs east-west along the southern edge of the apron. These lines provide water to all of the airport facilities, with the exception of one tenant who has their own on-site well and water supply lines. SEWER The City of Reno provides sanitary sewer service to the Reno-Stead Airport. The sanitary sewer lines that serve RTS are part of the original collections system installed by the U.S. Army over 50 years ago. The main line that runs east-west between Alpha Avenue and Bravo Avenue provides service to the Reno-Stead Airport. The Reno-Stead Sewer Plant has capacity and could accommodate a large multi-building campus project with minimal upgrades. GAS Natural gas service is provided to the property by NV Energy. Natural gas lines on the site generally run east-west along Texas Avenue and Alpha Avenue and access the airport facilities from these locations. Also, there is an existing 8-inch gas line running north-south along the majority of the western property line that provides service to the western area of RTS property. FIBER A variety of voice and high-speed data services are available at the Reno-Stead Airport. These include PRI and SIP voice offerings, as well as DSL, T1, and 10 Meg through 10 Gig leased fiber optic data services. These services are currently provided by Charter Communications at the Reno-Stead Freedom Flight Terminal. Additionally, AT&T and Verizon Wireless provide wireless service in the area and have indicated service may be extended to other points on the property via wireless media.

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For specific information regarding the existing utility network at RTS, please refer to Exhibit D of the Airport Master Plan. SECTION 4 – SUBMITTAL PROCESS & REQUIREMENTS

This Request For Qualifications (RFQ) will be accomplished through a three-phase process. Phase 1 – Interested parties will have a 45-day period to formulate a Master Development team if interested in the entire 3,500 acres. Master Development teams or individuals interested in development of smaller portions of the undeveloped land will submit Qualifications based on the requirements below. The Qualifications should highlight the Respondent and/or Team’s ability to develop strategies for the aeronautical and non-aeronautical development opportunities and demonstrate the ability to integrate those strategies into a comprehensive development plan that creates economic synergies. The RTAA will hold a mandatory Pre-Submittal meeting on March 18, 2014 at 2:00 pm Pacific Daylight Time (PDT) at the RTS Freedom Flight Terminal Community Room, 4895 Texas Avenue, Reno Nevada 89506. Prospective Respondents may ask questions during the Pre-Submittal meeting; reasonable efforts will be made to accurately memorialize any such questions and respond to them in an Addendum. RTAA strongly encourages a representative attend this meeting in person; however, RTAA may arrange for conference call attendance if requested in writing 2 days prior to the meeting for those unable to attend in person. Prospective Respondents not in attendance at this Pre-Submittal meeting will not be considered for Phase 2. A Selection Committee will review and rate each Responder’s initial response via a pre-determined scoring system and establish a shortlist of Responders that are determined to be the most qualified, in the RTAA’s sole discretion, pursuant to the evaluation criteria set forth in Section 6.1. The shortlisted Respondents will be invited to participate in Phase 2, a due diligence period allowing for detailed research of the proposed project. Phase 2 – Respondents invited to participate in Phase 2 will be responsible for completing their own due diligence of the property. Respondents shall be afforded a One Hundred Twenty (120) calendar-day period to perform any desired testing or other site investigations to determine if the site is suitable for their proposed use. Any permitting, engineering, testing and construction costs associated with due diligence for either opportunity referenced herein (entire 3,500 acres or any portion thereof) shall be at the sole expense of the Respondents. Approximately thirty (30) days following commencement of the due diligence period, Respondents will be required to attend a mandatory review meeting at the RTS Freedom Flight Terminal Community Room, 4895 Texas Avenue, Reno Nevada 89506. Respondents should be able to demonstrate they have started due diligence and may ask questions regarding the process or opportunity during the meeting; reasonable efforts will be made to accurately memorialize any such questions and respond to them as appropriate.

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Following the mandatory review meeting, if initial due diligence identifies development issues or concerns, the Respondents may terminate all discussions and due diligence with 10-days written notice that includes delivery to the RTAA of all materials/reports produced during due diligence. All materials generated will become the property of the RTAA. Selection or rejection of any submittal does not affect this right. At the completion of the Due Diligence phase, each interested Respondent will be required to submit an overview of their proposed development approach with a broad outline of the development strategy and scope, a review of the Respondent’s market perspective and economic potential, financial feasibility and initial business structure. Before asking any Respondent to invest significant time and resources into Phase 3, the Selection Committee will provide feedback to the Respondents to ensure that both parties are in agreement with the general approach and overall direction of the development plan prior to proceeding with the next phase. Following the due diligence period, selected Respondents completing the due diligence period will be invited to Phase 3, Request for Development Proposals. Phase 3 – Respondents, now considered “Proposers” submitting development proposals should include detailed information describing the approach for development (including cost estimates), financial underwriting, site plan and facility design, marketing, leasing and management plan, property management and maintenance plan, tenant relations and customer service plan, conceptual planning, phased development approach, financial underwriting, marketing, management procedures, and business term requirements. As in Phase 1, a Selection Committee will review the final Development Proposals and select a recommended Proposer or if more than one team proposes on smaller portions of the property, two or more Proposers will be forwarded to the RTAA Board of Trustees for consideration. If the RTAA Board of Trustees approves the recommended Proposer(s) and Development Plan(s), RTAA will commence contract negotiations in accordance with Section 7.4.

The following schedule has been established for the solicitation process:

ACTIVITY COMPLETION DATE

PHASE 1 Request for Qualifications Issued March 3, 2014 Pre-Submittal Meeting (Mandatory)

March 18, 2014

Responder Question & Answer Period March 13 - 20, 2014 Addendum Issued (if necessary) March 25, 2014 RFQ Response Due April 17, 2014 Selection Committee Review Period April 21 – May 2, 2014 Preferred Responders Notified May 15, 2014 The RTAA reserves the right to extend or expedite Phases 2 and/or 3 schedules as appropriate.

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PHASE 2 Due Diligence Period (120 calendar days) May 16 – Sept 15, 2014 Mandatory Review Meeting June 18, 2014 PHASE 3 Development Proposals Due October 17, 2014 Select Preferred Developer(s) November 1, 2014 Recommendation to Board November 13, 2014

Notwithstanding anything in this RFQ to the contrary, the RTAA reserves the right to select more than one Proposer to recommend to the Board of Trustees if the combined Development Proposals result in a better overall development in terms of long-term revenues and economic results. 4.1 Phase 1 – Request for Qualifications Response Requirements The initial response must contain the elements outlined in Section 4.2, designated as separate sections. Respondents must include all material necessary to respond fully, with sufficient detail to allow ready comprehension. Failure to provide any of the information below may be cause for rejection of response. Each response shall conform to the requirements set forth in this section. The RTAA will base their selection of the top Respondents on the best overall response to this Request for Qualifications (RFQ). The Respondent shall examine all terms of this RFQ including, but not limited, to any Exhibit or Addendum and/or any other information provided by RTAA. All statistics, data, drawings and/or other information included in this RFQ or provided in connection herewith including, are for informational purposes only. RTAA is not liable for any inaccuracy or incompleteness. The Respondent shall exercise reasonable business judgment in obtaining information needed to prepare a complete and viable response. RTAA may, at its discretion, disqualify any qualification packet that is not in compliance with these requirements.

4.2 Qualifications Format Responses should be designated as separate sections as outlined in this RFQ. The response should include all information requested in this RFQ presented in a clear and concise manner and in the order requested below. Other than as specifically stated, there are no length requirements or limitations. Respondents should include any material necessary to fully respond to the elements of this RFQ. Each response must include the following elements:

a. Response Letter signed by authorized agent of the firm. Letter should include a brief

summary (two-page maximum) of the RFQ response related to qualifications, personnel, development opportunity, marketing abilities, financial capabilities, and business plan for the development. Letter should also include legal name, mailing address, principal place of business and telephone number of authorized contact person.

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b. Narrative of the Firm, including:

i. A brief history of the business and/or Team.

ii. Organizational structure of business and/or Team; key officers or other personnel as appropriate.

iii. Disclose if any officer, director, shareholder, manager, member, partner, joint venture

or person having a controlling interest in the Responder and/or Team is currently a lessee at Reno-Tahoe International Airport or Reno-Stead Airport or otherwise has any interest in or at either airport.

iv. Designation of the legal entity by which the business operates (i.e. sole

proprietorship, partnership, limited liability partnership, corporation, Limited Liability Corporation, etc.).

v. As applicable, attach a copy of any Nevada Fictitious Name Certificate for any trade,

“doing business as” or “dba” or brand name.

vi. Active business venues (areas of business outside region).

vii. Present status and projected direction of business.

c. Qualifications in the areas below with supporting documentation as appropriate:

i. Organizational experience in financing, developing, operating, marketing and managing large development projects with particular attention to the airport environment, within the preceding ten (10) years, of such development at similar sites and locations including the project start date of each project and duration from concept to first tenant move-in or business public opening.

ii. Names, titles and resumes of key personnel and of managerial and supervisory

personnel who would be assigned to the project including such personnel of any parent, sibling, subsidiary or other affiliate of the Responder, and of any proposed sublessee, partner, joint venture and/or affiliated entity, consistent with the terms of this Section regarding the Responder’s duty to communicate RFQ terms with related persons and entities.

iii. At least three (3) business references for which the Responder has provided

services in a similar scope and scale to the proposed project in the preceding ten (10) years. References should be able to discuss Responder’s capabilities to finance, develop, operate and manage a large scale project. References should include names, addresses, telephone numbers and contact persons.

iv. Describe if and how the Responder intends to afford Disadvantaged Business

Enterprises, as defined in 49 CFR Part 26, the opportunity to participate in providing services to the RTAA.

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d. Financial Information with supporting documentation as appropriate:

i. Financial statements and/or any other documentation appropriate to evaluate the Responder’s present, actual financial capacity to design, construct and operate the proposed development. Private firms that do not issue public financial statements may submit alternative document and references.

ii. A current business credit report for each party owning or having a financial interest in

the Responder and a current credit report on the Responder.

iii. Other financial documents demonstrating financial capacity.

e. Information regarding Leasing and Property Management should include:

Explain previous Leasing and Property Management experience. In particular, any projects that were specific to airport development, enhanced uses leases, or were performed on federal land should be described.

f. Information regarding Marketing should include:

Discuss previous experience with marketing industrial development projects, including any experience with projects on federal lands.

g. Information regarding Community Relationships should include:

i. Identify how good relations with all involved parties (including the City, County, RTAA, and general public) would be maintained through the duration of the project.

ii. Explain previous community relations experience, including any relationships with

governmental entities on similar projects. In particular, any projects that were public-private partnerships, enhanced uses leases, or performed on federal land should be described.

The RTAA may, at its discretion, request additional documentation and/or ask questions about the Respondent’s financial capability and/or conduct its own research of the Respondent’s financial condition and capability. Respondents should clearly identify any financial information they wish to remain confidential. In the event they are not selected to proceed to Phase 2, information identified as confidential will be returned to them following the Phase 3 final award date. All other information will be deemed public and subject to the Public Records Act. 4.3 Phase 2 – Due Diligence Respondents invited to proceed to Phase 2 will be offered a 120-day period to gather information about the property. Respondents should understand that RTAA is offering this property “as-is” and cannot warrant or guarantee any conditions of the land. This process should include a thorough analysis of existing assets that serve as the foundation for the potential industrial

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development. The RTAA will host a mandatory 30-day meeting to answer any questions regarding the due diligence period. In addition to the materials provided in this Request for Qualification, Responders are encouraged to conduct research including, but not limited to the following:

i. Site research including zoning, environmental matters, and other constraints ii. Infrastructure analysis including water, sewer, power, etc. iii. Site survey/ALTA iv. Title Report v. Geotechnical Study/Soils Analysis vi. Market research and analysis

Upon completion of this effort, each interested Respondent shall submit a preliminary development plan overview, which will include a broad outline of the development strategy and scope, a review of the Respondent’s market perspective and economic potential of the RTS site, financial feasibility and initial business structure. 4.4 Phase 3 - Development Proposal Submittal Following the due diligence period, Responders, now considered “Proposers” will be invited to submit a Development Proposal that outlines an integrated process and understanding of private-public development opportunities. Proposers shall exercise reasonable business judgment in obtaining information needed to prepare a complete and viable proposal, with sufficient detail to allow ready comprehension. RTAA may, at its discretion, disqualify any proposal that is not in compliance with these requirements. The RTAA is seeking development proposals that address, in detail, the following minimum qualification requirements:

a. Comprehensive Development Strategy and Plan. The proposal should identify the strategy for development and explain how they can be integrated into a comprehensive development project that creates an economic synergy within the community. This may also include a plan depicting the scope and scale of the Proposer’s physical construction project along with their approach to managing the project on time and on budget.

b. Economics and Market Potential. The proposal should integrate evaluation of the market, the value created by the proposed development, and strategies for obtaining the necessary infrastructure improvements to achieve the development plan objectives. Additionally, the proposal should include a plan to fund infrastructure improvements through, but not limited to, a blend of investor equity, project-supported land revenues, community financing districts, and other up-front financing mechanisms, post development financing mechanisms or infrastructure financing districts.

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c. Development Economics and Alternatives.

The proposal should include an explanation of how the design-planning process will be integrated with the development and financial elements. Alternatives should be developed based on economic and market inputs to ensure that physical and program parameters are incorporated in all development scenarios.

d. Public and Private Investment Strategies. The proposal should look closely at public and private partnerships that can help the development project be successful. This section should explain how the project will be designed to generate significant revenues or taxes that can be applied to the project infrastructure and other costs.

e. Land Value Contributions. The proposal should identify the general land value versus residual land value based on net supportable rent/value, product costs, assumed financing structure, and an appropriate level of return on investment.

f. Infrastructure Financing Plan. The proposal should examine options for public financing capacity and strategies. The proposal should include methods or leveraging public finance tools and capabilities to create viable options for the development team and investment partners.

All Proposals will be evaluated for compliance with minimum qualification requirements; Proposals not meeting all such criteria shall be disqualified from further consideration, and Proposers will be so notified in writing. All proposals passing the minimum criteria during the initial proposal phase will be evaluated by the Selection Committee on the basis of all factors set forth in this Proposal. Following proposal submittal and evaluation by the Selection Committee, the Selection Committee will recommend a preferred Proposal and Development team or teams to the RTAA Board of Trustees. Notwithstanding anything in this RFQ to the contrary, the RTAA reserves the right to select more than one Proposer to recommend to the Board of Trustees if the combined Development Proposals result in a better overall development in terms of long-term revenues and economic results.

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SECTION 5 – REQUEST FOR QUALIFICATIONS SUBMISSION INSTRUCTIONS 5.1 Deadline for Submission – Phase 1 Qualifications are due by 2:00 p.m., Pacific Daylight Time (PDT), April 17, 2014. Ten (10) hard copies (one original and nine (9) photocopies) plus one electronic copy on CD-ROM shall be enclosed in a sealed envelope addressed to:

Reno-Tahoe Airport Authority Ms. Tina West Iftiger

Vice President of Airport Economic Development P.O. Box 12490

2001 E. Plumb Lane Reno, Nevada 89510-2490

Respondents may deliver the package to the office in person. The sealed package should be labeled with the Respondent’s name and address, “Real Estate Development Request for Qualifications” and the opening date. Original copy shall be marked “Original”. Electronic, telegraphic or facsimile offers and modifications will not be considered without express written authorization. Any submission received after the time and date specified above will be rejected and returned to the sender unopened. Sealed hard copy responses shall be publically opened in the RTAA Administrative Offices at 2:00 pm PDT, April 17, 2014. Only the names of firms submitting responses shall be read at this time. The RTAA reserves the right to reject any or all responses or parts thereof, and to waive any informalities or irregularities.

Response information shall be kept confidential pending subsequent evaluation and negotiation. Response contents not identified by the Respondent as confidential will only be released once a Board agenda has been posted for selection consideration by the Board of Trustees. The RTAA reserves the right to negotiate any terms and conditions of responses received prior to acceptance/rejection of said response or contract resulting from response. The RTAA assumes no responsibility for errant delivery of responses, including those relegated to a courier agent who fails to deliver in accordance with the time and receiving point specified.

The RTAA shall not be responsible for the opening of a response prior to the submission deadline that is not properly addressed or identified. All responses shall be submitted in a form and manner as indicated in this Request for Qualifications document and by the response forms. Any response that is not submitted in a form and manner indicated by the Request for Qualifications document and response forms or that contain information, statements, conditions, or qualifications that place conditions or qualifications on the response

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submittal for purposes of making an award, or that alter any response terms, conditions, specifications, or forms that had not previously been approved by written addendum issued, or that does not meet legal requirements, shall be declared as a non-responsive response and may be rejected without further consideration. Any response that does not fully respond to and comply with all of the detailed terms, conditions, specifications or any requests for information including the execution of the response forms may be declared non-responsive by the RTAA and rejected without further consideration. The RTAA shall not be responsible for errors or omissions of the Responder. 5.2 Request for Qualifications Document and Addenda Copies of the Request for Qualifications document and all addenda issued thereto may be obtained from the Reno-Tahoe Airport Authority Administrative Offices, 2001 East Plumb Lane, Reno, Nevada 89502 or downloaded directly from the Reno-Tahoe International Airport’s website at www.renoairport.com “the Airport Authority” “Competitive Solicitations” “BIDS/RFP’s/RFQs – Real Estate Development”. The Airport Economic Development Division shall issue all addenda to this Request for Qualifications in writing. Responders are solely responsible for checking the website for any addenda issued for this solicitation. 5.3 Withdrawal of Response A response may be withdrawn by written or email notice provided such notice is received prior to the date and time set for the response opening. 5.4 Responder Expenses Prospective Responders are solely responsible for their own expenses in preparing any response. 5.5 Validity Period Responses to this Request for Qualifications solicitation are required to be valid through December 31, 2015. 5.6 Questions/Clarifications Questions (if any) regarding the Request for Qualifications shall be directed in writing no later than March 19, 2014 to: Tina West Iftiger Mailing Address Vice President of Airport Economic Development P.O. Box 12490 Reno-Tahoe Airport Authority Reno, Nevada 89510-2490 [email protected] All questions will be answered only through the inquiry and addendum process, but prospective Responders may ask questions during the mandatory Pre-Submission meeting. Oral answers and/or direct, individual answers will not be provided.

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Communications from prospective Responders, such as in person, by telephone, voice-mail, electronic mail, facsimile or other similar means, to any Trustee, officer, agent or employee of the RTAA, other than the Vice President of Airport Economic Development, are prohibited. Except for inquiries directed through the Vice President of Airport Economic Development, the RTAA, through its officers and employees, will neither meet nor otherwise communicate individually with prospective Responders. The RTAA may, at its sole discretion, disqualify any Responder who fails to observe this requirement. If any questions or responses require revision to this solicitation as originally published, such revisions will be by formal addendum only. SECTION 6 – QUALIFICATIONS SUBMITTAL EVALUATION CRITERIA A selection committee will review and rate each Respondent’s initial response as outlined in Phase 1 via a pre-determined scoring system and establish a shortlist of Responders that it determines to be the most qualified. Following a 120-calendar day due diligence period, interested Respondents in Phase 2 will submit a preliminary development overview and approach. The submittals will be evaluated and invited to submit detailed Development Proposals as outlined in Phase 3. A Selection Committee will review the Development Proposals and make a recommendation to the Board of Trustees for the top Proposer(s).

6.1 Evaluation Criteria

Respondents will be evaluated based upon the evaluation criteria listed below. The evaluation criteria are listed in descending order of importance with the first having the most weight and with each of the following evaluation factors having equal or lesser weight than the one preceding it. A Responder may be required to submit additional or supplemental information to the RTAA to facilitate the short listing process. An initial response may be rejected if it is determined by the RTAA to be non-responsive provided that the RTAA reserves the right to waive any irregularities or technicalities that it determines, in its sole discretion, to be minor in nature and in the best interests of the RTAA. Further, any response may be rejected if it is determined by the RTAA that the Responder is not capable of providing the services satisfactorily or due to the failure of the Responder to provide information requested relating to such determination.

Factor 1 Qualifications, Experience and Past Performance

Factor 2 Financial Capacity and Approach

Factor 3 Leasing and Management Plan

Factor 4 Marketing Plan

Factor 5 Community Relations

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SECTION 7 – MISCELLANEOUS TERMS AND CONDITIONS 7.1 Legal Requirements Respondents, and subsequent Proposers, are responsible for complying with all legal requirements as set forth. 7.2 Indemnification Agreement The successful Responder, and any subsequent Proposers, shall defend, indemnify, and hold harmless the RTAA, its Trustees, officers, agents, and employees from and against any and all liabilities, damages, losses, claims, actions, or proceedings, including, without limitation, reasonable attorneys’ fees that are caused by the negligence, errors, omissions, recklessness or intentional misconduct of the successful Responder, or subsequent Proposer, or the employees or agents of the successful Responder, or subsequent Proposer, in the performance of this contract. The RTAA shall give the successful Responder, or subsequent Proposer, reasonable notice of any such claims or actions. The successful Responder, or subsequent Proposer, shall also use counsel acceptable to the RTAA in carrying out its obligations. Indemnity requirements shall survive the expiration or early termination of this agreement. Acceptance of the successful Responder, or subsequent Proposer, services by the RTAA shall not operate as a waiver of the rights granted the RTAA herein. The Indemnity provisions set forth herein shall survive the expiration or early termination of any Agreement. 7.2 Non-Collusion Responders, or subsequent Proposers, by submitting a signed response, certify that the accompanying response is not the result of, or affected by, any act of collusion with any other person or company engaged in the same line of business or commerce or any other fraudulent act. 7.3 Ownership of Responses All responses to this RFQ solicitation shall become the property of the RTAA. 7.4 Contract Negotiations After recommendation and approval of a selected Proposer(s) and key business terms by the RTAA Board of Trustees, final contract negotiations will commence. If at any time contract negotiation activities are judged to be ineffective or materially change from Board approval, the RTAA may, in its discretion cease all activities with that Proposer.

7.5 Security The successful Responder or Proposer must agree to maintain security standards consistent with the security policy of the RTAA. The successful Responder or Proposer shall be required to ensure

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that all personnel employed on any subsequent contract that require access to RTAA information or facilities meet the criteria for personal security clearance prescribed by the RTAA. 7.6 Treatment of Assets Title to all property furnished by the RTAA shall remain in the name of the RTAA and the RTAA shall become the owner of the work product and other documents, prepared by the successful Responder pursuant to any agreement unless otherwise expressly provided therein. 7.7 Status of Successful Responder or Proposer Successful Responder or Proposer shall have the status of an “Independent Contractor” as defined by N.R.S. §§ 284.173 and shall not be entitled to any of the rights, privileges, benefits, and emoluments of either an officer or employee of the RTAA. 7.8 Right to Award Notwithstanding anything in this RFQ to the contrary, the RTAA reserves the right to select more than one Proposer to recommend to the Board of Trustees if the combined Development Proposals result in a better overall development in terms of long-term revenues and economic results.

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EXHIBIT A

RESPONDER’S CERTIFICATION

As a Responder, the company listed below has carefully examined the Reno-Tahoe Airport Authority Real Estate Development Services Request for Qualifications (RFQ) that includes scope, requirements for submission, general information, and the evaluation and award process. The Responder below acknowledges receipt and incorporation of the following addenda, and the cost, if any, of such revisions has been included in the terms and conditions of the Responder’s response. Addendum #________ Date:______ Addendum #________ Date:______ The Responder hereby proposes to provide the services requested in this response. I agree to hold the response valid through December 31, 2015. The Responder agrees that the RTAA terms and conditions herein shall take precedence over any conflicting terms and conditions submitted with the response and agree to abide by all conditions of this document. I certify that all information contained in the response is truthful to the best of my knowledge and belief. As a representative of the Responder, I further certify that I am duly authorized to submit this response on behalf of the company as its agent and that the company is ready, willing and able to perform if awarded a contract. I further certify that this response is made without prior understanding, agreement, connection, discussion, or collusion with any other person, company, or corporation submitting a response for the same product or service; no officer, employee, or agent of the RTAA or of any other Company who is interested in said response; and that the undersigned executed this Responder’s Certification with full knowledge and understanding of the matters therein contained and was duly authorized to do so. Firm Name In compliance with this “RFQ” and subject to all the terms

Address and conditions thereof, the undersigned offers and agrees

City if this response is accepted to furnish any and all goods and

State Zip Code services described herein at the prices, term, and delivery

Telephone stated.

Responder’s Federal Tax I.D. # Signed E-Mail Print Name Print Title

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Reno-Tahoe Airport Authority

Reno-Stead Airport

Reno-Stead Airport Vacant Land Real Estate Development RFQ Page 28 of 29

MINORITY STATUS: Has this firm been certified as a minority, woman, or disadvantaged business enterprise by any governmental agency? Yes No If yes, please specify government agency: Date of certification: The above is for information only. The RTAA encourages minority business participation; however, no preferences shall be given. EXCEPTIONS: Does the Responder take exception to any of the terms and conditions of this Request for Qualification and attachments hereto or the plans, drawings, or specifications? Yes No If yes, please indicate the specific nature of the exception or clarification in the space provided below. Attach additional sheet(s) if necessary.

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Reno-Tahoe Airport Authority

Reno-Stead Airport

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DISCLOSURE OF PRINCIPALS

(Please print or type)

Company Name Street Address City, State, and Zip Code

NAMES OF OFFICERS, MEMBERS, OR OWNERS, PARTNERSHIP, ETC.

Name Official Capacity Street City, State, and Zip Code Name Official Capacity Street City, State, and Zip Code Name Official Capacity Street City, State, and Zip Code Name Official Capacity Street City, State, and Zip Code

If further space is required please attach additional pages.

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£¤395

Reno-Tahoe Airport AuthorityP.O. Box 12490Reno, Nevada 89510-2490(775) 328-6400

Exhibit B - Development Areas - Reno Stead Airport

For Planning Purposes OnlyNot a Survey

Source: RTAA Planning and Engineering Department - GIS

o

(

LegendDevelopable Non-AeronauticalDevelopable AeronauticalNot A PartBuffer SpaceAirport Property BoundaryAirfield PavementRailroadUrbanized Area

0 2,300 4,6001,150Feet

728 Acres

2,822 Acres

Mar. 3 , 2014