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HomeMy WebLinkAboutComplete RFP Document Request for Proposal(RFP)300 Rainier Ave Development At City of Renton, Renton Municipal Airport Renton,Washington Solicitation of Proposal: Renton Municipal Airport is soliciting proposals from interested parties who may be interested in leasing building and/or land to develop at 300 Rainier Ave North, Renton WA(Airport Property). Issue Date: July 12, 2019 On Site Pre-Proposal Granted upon request (non-mandatory) must be completed by July 17, 2019 Written Questions/Comments Due: July 22, 2019 Responses Due Back: July 26, 2019 Proposal Due Back: July 31, 2019 Proposal Award Notification: August 5, 2019 Mailing Address 3 Copies to: Renton Municipal Airport Attn: Casey Boatman 616 W. Perimeter Rd. Renton,WA 98057 Contact: Casey Boatman Renton Municipal Airport c n�trngn( rgntc n ..g mvv (425)430-7478 1 Table of Contents Background......................................................................................................................................................3 Site...........................................................................................................................................................3 Design.....................................................................................................................................................4 Maintenance..........................................................................................................................................4 LandLease Agreement.........................................................................................................................4 LeaseCriteria.........................................................................................................................................4 AwardCriteria.......................................................................................................................................5-6 Timelinefor Proposals...................................................................................................................................6 Disclaimers......................................................................................................................................................6-7 2 Before beginning review, please see Disclaimers on page 6. Background The Renton Municipal Airport(RNT) is owned and managed by the City of Renton, and is a general aviation airport serving Renton and other nearby communities. Located at the south shore of Lake Washington,the Airport has a land-based and sea-based airstrip.The Boeing 737 series are built at the Renton Boeing Plant across the Cedar River and leave Renton on their maiden flight. The airport is a general aviation and FAA-designated reliever airport under jurisdiction of the Federal Aviation Administration-Northwest Mountain Region. It consists of a one-mile asphalt runway,two parallel taxiways, and an adjoining water landing surface on Lake Washington. The airport provides regional airport services for air charter, air taxi, corporate flights, business, and recreational flyers. Several operators offer charter service to the San Juan Islands,Vancouver Island, and lower British Columbia and flightseeing tours of Seattle. Flight instruction and pilot services are provided through the airport's FBOs. US Customs and Border Patrol services are available with a 24-hour notice. Seattle-Tacoma International Airport is six miles to the west; King County International Airport is four miles to the northwest. RNT is centrally located within the greater Puget Sound Region, approximately 11 miles away from downtown Seattle.The City of Renton provides abundant transportation access options for businesses and employees and RNT serves an important role in the regional transportation system (i.e.,ground, rail, and waterway).A water taxi service is also being planned between downtown Seattle and Renton along the west channel of Lake Washington.These key locational factors combine to make RNT a prime location for Aviation Industrial Facilities, General Aviation (GA) Based Aircraft and Seaplane Facilities. The existing airport footprint, consisting of 168 acres, is extremely site constrained,with limited property available for new or expanded landside development.There are limited land parcels along the perimeter of the Airport, and some existing airport parcels that can be evaluated for potential landside development expansion and/or redevelopment/repurposing. Site 300 Rainier Ave N is situated on the east side of Rainier Avenue North, but west of West Perimeter Road,with approximately 635 feet of road frontage. The average vehicle exposure is 28,700 vehicles per day(based on 2016 information). This parcel contains a 3,047 sqft building constructed in the 1960's, and a 4,000 sqft(approx.) parking lot on 42,011 sqft total. The following is an excerpt from a previous survey: "That portion of the northeast quarter of the northwest quarter and the northwest quarter of the northeast quarter of section 18 and the southeast quarter of the southwest quarter and the southwest quarter of the southeast quarter of section 7, all in township 23 north, range 5 east,Willamette Meridian, in King County Washington described as follows: Commencing at the north quarter corner of section 18;thence north 88°06'48"west, along the north line of said section, a distance of 54.33 feet to a point on the east right-of-way line of Rainier Avenue North, according to that particular right-of-way vacation recorded under recording number 3 20151217000714, records of King County,Washington and the point of beginning;thence southerly, along said east right of way, line the following courses;south 00°06'48" east a distance of 97.77 feet to a point of curve; southeasterly, along the arc of a curve to the left, said curve having a radius of 3034.56 feet,through a central angle of 03°43'18" a distance of 197.12 feet; south 01°45'57" west a distance of 138.61 feet; south 06°43'11" east a distance of 74.94 feet; south 26°32'16" east a distance of 11.93 feet; Thence north 67°53'02" east, departing said right-of-way line, a distance of 90.07 feet; thence north 09°29'06" west a distance of 215.67 feet;thence north 09°46'14"west a distance of 65.71 feet;thence north 30°43'52"west a distance of 20.70 feet; thence north 85°09'20" east a distance of 48.14 feet; thence south 04°50'40" east a distance of 50.38 feet; thence north 85°09'20" east a distance of 14.99 feet;thence north 04°52'59"west a distance of 244.13 feet;thence south 85°09'20" west a distance of 77.00 feet; thence south 80°07'30"west a distance of 11.88 feet to an angle point on said east right-of- way line; a distance of 2.20 feet; thence south 00°06'48" east continuing along said right-of-way line, a distance of 2.63 feet to the point of beginning. Parcel contains 42, 011 square feet. The following subsections provide additional information that will apply to any lease between the successful proposer and the City of Renton. Include in Your Proposal 1. Airport Lease/Operating Permit Application Form 2. Detailed Business Plan Including: a. Ownership Information b. Mission Statement c. Objectives d. Marketing Plan e. Startup Cost/Financing Source Information f. Product Information g. Value Proposition h. Basic Renderings of all Proposed Renovations and/or New Construction i. Dunn & Bradstreet Credit report j. All Remaining Requirements from Requirements Table on Page 7 as well as this document in its entirety Design All buildings, structures, and improvements must meet FAA Part 77 regulations and any current applicable local, State, and Federal building and fire codes, including but not limited to seismic, structural, electrical, and plumbing. Prior to approval of major changes to existing building or any new construction, the City of Renton design approval is required. Maintenance Maintenance of the site and existing/proposed buildings will be the sole responsibility of a successful proposer if a lease agreement is executed, such as but not limited to,trash removal, snow removal, mowing, painting, and general facilities maintenance and up keep. Maintenance and improvements shall be conducted in such a manner as to ensure maximum retention of value upon termination of the 4 lease. Upon said termination of the lease, ownership of the building and improvements will be surrendered and reverted to the Airport. Land Lease Agreement All leasing agreements will follow the terms and guidelines in the Airport Leasing Policies and Airport Minimum Standards. If building is rented it is the Proposers sole responsibility to ensure all applicable codes and regulations are met. Lease Criteria To obtain a land or building lease at Renton Municipal Airport, a person shall submit a written application for review by the Airport Manager. As a prerequisite to occupancy or the granting of commercial operating privileges at the Airport, any prospective commercial tenant must also submit a specific, detailed description of the intended commercial and/or aeronautical activities, and the means and methods employed to accomplish the proposed activities.The application shall be on a form provided by the City of Renton.The Renton Municipal Airport's Regulations and Minimum Standards contain the minimum application information and should be referenced prior to initiation of an application. After receiving an application,the Airport Manager will determine whether the application as submitted contains the necessary information to continue the application process. If the application is deemed complete, and the criteria and requirements set out in these Airport Landside Leasing Policies are met,the Airport Manager will draft a lease.The City Attorney will then review the draft lease, before submission to the City Council for approval. Award Criteria The applicant must, at the applicant's expense, obtain a score, as described below,from a consultant acceptable to the City.The consultant will evaluate whether the applicant has the financial capacity to meet the long-term obligations of a lease of Airport property.The following financial statements shall be provided directly from the applicant to the consultant: Balance sheet and income statement for the current year and two years prior; Projected income statement and business plan if activities at the Renton Municipal Airport are a new business enterprise for the Lessee; Schedule of current debt payments (principal and interest) and lease obligations (and, if a new enterprise, a schedule of obligations incurred or to be incurred for the new enterprise);A Dunn & Bradstreet credit report on the applicant;Any additional information as may be needed to compute the score as set out in Attachment B Approval of a completed application shall be determined by, but not limited to, the following criteria to assess the financial capacity of the applicant lessee: Number of years in related activities;Aeronautical and/or business-related management experience of principal owner/manager; Dunn & Bradstreet Credit report/pay history; Financial viability of operations; Ability to support lease payments from earnings net of cost of operations,taxes, depreciation/amortization, other debt/lease obligations; Current ratio (current assets divided by current 5 liabilities) of at least 1:1; Debt Service Coverage ratio of at least 1.25; Net Worth;A credit score of 650 or better;The criteria above may be modified as needed to improve the evaluation of prospective lessees. The above criteria will be evaluated by the Consultant using the rating scale stated in Attachment B of the Landside Leasing Policies (shown below),which may be modified as needed to improve the evaluation of prospective lessees. An applicant receiving a score of 25-32 shall be eligible for a lease over 5 years. An applicant receiving a score of 17—24 may be considered for a short-term lease. An applicant receiving a score of 16 and under, or a score of"0"for criteria A or B shall not be considered for a lease. Criteria Rating Scale Score Years in airport-related business No experience 0 Less than 1-2.9,years 1 3....6.9 years 2 7--12 vears 3 more titan 12 years 4 Aitpoit-related nranagenrew experience of No experience 0 Principal owner/nlanaager Less than 3 years 1 3-6.9 years 2 7-12 veais more than 12 years 4 Draw&Bradstreet Pay history/credit report No credit history 0 Pay History-high risk 1 Pay History---medium risk 2 Pay History-low risk Pay History-low risk and clear credit re port(no ba rkniptcies,judgments,liens,etc.) 4 Viability of operations Cannot denionstrate profitability 0 Losses(net)in all 3 years 1 Profitable(net)in 1 of last 3 years 2 Profitable(net)in 2 of last 3 years 3 Profitable(net)iii last 3 years 4 Earnings net of cost of operations.taxes. Net Eanains s less than animal lease payment 1 depreciation/satnottization.other debtllease Net Earrings equal to or less than 1.25x annual lease payment 2 obligations(ifirew enterprise,use projected Net Eanaings 1.25-2.0 times over annual lease payment 3 income and obligations) Net Eanrhat rtuare than 2.p times over atmual lease a anent 4 ('orient ratio Current ratio is less than 1.Ox 1 Current ratio is 1.0x-1.5x 2 C'utrent ratio is 1.6x-2.Ox 3 Current ratio is above 2.Ox 4 Debt Service Coverage(DSC) DSC is less than 1.Ox 1 DSC is 1.Ox-1.5x 2 DS( is 1.6x-2.Ox 3 DSC is above 2.Ox 4 Net worth Negative net worth 0 Net worth is positive,but less than animal lease Payment 1 Net worth is equal to martial lease pa5nnent but less than 2x annual lease payment 2 Net worth is 2x-5x airaial lease Payment - Net worth is more than 5x annual lease payment 4 Timeline for Proposals Issue Date: July 12, 2019 On Site Pre-Proposal Granted upon request (non-mandatory) must be completed by July 17, 2019 Written Questions/Comments Due: July 22, 2019 Responses Due Back: July 26, 2019 Proposal Due Back: July 31, 2019 6 Proposal Award Notification: August 5, 2019 Award may be subject to review and approval by the City of Renton City Council. Disclaimers 1.The information presented in this Request for Proposal is presented in good faith, and care has been taken in preparing this document, but the Airport makes no representations and gives no warranties of whatever nature in respect to the accuracy or completeness of any information,facts and/or opinions contained herein. The Airport cannot be held liable for any use of and reliance on any information in this document. 2. The Airport reserves the right in its sole and absolute discretion to choose to reject any or all proposals which are in response to this RFP either on the basis of an evaluation of the factors listed in this RFP or for other reasons deemed necessary. The Airport reserves the right to reject the proposal of any proposer who in the Airport's sole judgement has been delinquent or unfaithful in any contract with the City of Renton, is financially or technically incapable or is otherwise not a responsible responder, or unable to effectively perform needed tasks. The Airport reserves the right to cancel the award of the agreement without liability. 3. Neither the furnishing of this RFP to proposer,the submission of any materials, documents, or other information by the proposer, nor the acceptance thereof by Airport staff, nor any correspondence, discussions, meetings or other communications between proposer and Airport staff, nor anything stated by Airport staff or selection committee in or at any such correspondence, discussions, meetings or other communications shall be construed or interpreted by proposer to mean that the Airport has made a determination that proposer is qualified to develop or shall be deemed to impose any obligations whatsoever to approve proposer or to compensate or reimburse proposer for any costs or expenses incurred in responding to the RFP. 4.The Airport reserves the right to conduct a thorough investigation to verify the qualifications and financial resources of each proposer.The Airport may consult all personal, business and financial references familiar with proposer's prior operations and construction or management of prior projects. Submission of proposer's response to the RFP shall constitute permission for the Airport to make such inquiries and authorization to third parties to respond thereto. 5. Any information given to Airport staff in any correspondence, discussion, meeting or other communications between the proposer and Airport staff before,with or after the submission of proposer's response to this RFP, either orally or in writing,will not be or be deemed to have been,given in confidence and may be used or disclosed to others for any purpose at any time without obligation or compensation and without liability by the Airport of any kind whatsoever.The foregoing applies to any information,whether or not given at the invitation of the Airport. Any statement which is inconsistent with the foregoing provisions of this paragraph whether made as a part of, or in connection with, any information received from proposer or otherwise made at any time in any fashion, and whether made orally or in writing, shall be deemed null and void and of no force or effect. Neither the Airport, nor any officer, agent nor employee thereof shall be liable to proposer as a result of any statements made. 7 6. Once the RFP is issued, proposers and their representatives, agents, and affiliates (including their prospective subtenants and joint venture partners, and the agents and representatives of any subtenants or joint venture partners), shall contact only the Airport staff designated on page 1 of this RFP to ask questions about the contents of this RFP. No person is permitted to improperly influence the selection process. All questions shall be submitted in writing as described above. Inappropriate contact by the proposer during the process can result in rejection or disqualification of the proposer's response. 8