006-18 - Resolution - Declare Waterman Investment Partners Proposal as Winning Response Related to 640 Bay StreetRESOLUTION NO. 006-18
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, TO DECLARE
THE WATERMAN INVESTMENT PARTNERS LLC PROPOSAL AS THE WINNING
RESPONSE TO THE CITY'S REQUEST FOR PROPOSALS RELATED TO THE
REDEVELOPMENT OF 640 BAY STREET AND AUTHORIZING THE MAYOR TO
NEGOTIATE WITH WATERMAN INVESTMENT PARTNERS LLC FOR THE PURCHASE
AND REDEVELOPMENT OF 640 BAY STREET.
WHEREAS, On November 14,2017, the City Council declared 640 Bay Street as surplus to
the needs of the City; and
WHEREAS, on November 17, 2017, the City published a Request for Proposals for the
purchase and redevelopment of 640 Bay Street; and
WHEREAS, the Request for Proposals, attached hereto as Exhibit A, was published on the
City's website and in the Daily Journal of Commerce, the Kitsap Sun, and the Port Orchard
Independent; and
WHEREAS, the City received one (1) proposal for the purchase and redevelopment of 640
Bay Street by the 4:00 p.m. January 12, 2018 deadline from Waterman Investment Partners LLC;
and
WHEREAS, the city clerk determined that the proposal was complete, as it included the
required contents as identified in the Request for Proposals; and
WHEREAS, in accordance with the Request for Proposals, a committee met to review the
proposal received from Waterman Investment Partners LLC and determined that the proposal
met the review and evaluation criteria as listed in the RFP; and
WHEREAS, the Director of Community Development on recommendation from the
proposal review committee has recommended that the City Council declare the proposal
submitted by Waterman Investment Partners LLC as the winning proposal and for the Council to
instruct the mayor to begin negotiations for the purchase and redevelopment of 640 Bay Street;
now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS
FOLLOWS:
1. Declaration. The City Council hereby declares the Waterman Investment Partners LLC
proposal as the winning response to the City's Request for Proposals for the purchase
and redevelopment of 640 Bay Street.
2. Authorization. The City Council authorizes the Mayor to negotiate with Waterman
Investment Partners LLC for the purchase and redevelopment of 640 Bay Street.
Resolution No. 006-18
Page 2 of 2
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the City Clerk in authentication of such passage this 13th day of February 2018.
Robert Putaansuu, Mayor
^ORTOpXATTEST:
I ' ': SEAL IBrandy Rinearson, MMC, City Clerk • =% ;.cn
IT
1/22/2018 640 Bay Street RFP - Port Orchard
https://www.cityofportorchard.us/640-bay-street-rfp/1/7
Click here to see the Tremont Street Widening Project Website / (http://www.tremontstreetwidening.com/)Click here to see the
(http://www.tremontstreetwidening.com/)Bethel Road and Sedgwick Road Corridor Study (https://www.cityofportorchard.us/bethelsedgwick-
road-corridor-study/)
REQUEST FOR PROPOSALS
FOR CITY-OWNED PROPERTY AT
640 BAY STREET, PORT ORCHARD, WA
November 17, 2017
RFP Issued by:
City of Port Orchard, WA – Department of Community Development
216 Prospect Street, Port Orchard, WA 98366
Contact:
Jim Fisk at j×sk@cityofportorchard.us (mailto:j×sk@cityofportorchard.us)
For issues related to this RFP
Introduction
On behalf of the City of Port Orchard, the Department of Community Development is seeking proposals to purchase and develop a vacant property
located at 640 Bay Street in Port Orchard. This property is in downtown Port Orchard with water and mountain views and is located approximately
500 feet from the Port Orchard Foot Ferry with convenient access to Downtown Bremerton via the Port Orchard Passenger Ferry and to Downtown
1/22/2018 640 Bay Street RFP - Port Orchard
https://www.cityofportorchard.us/640-bay-street-rfp/2/7
Seattle via Bremerton on the new Kitsap Transit high speed passenger ferry. The City seeks a transit-oriented mixed-use catalyst project for the
redevelopment of downtown Port Orchard that harnesses downtown’s strategic location near the foot ferry, Kitsap County Government Campus,
Port Orchard City Hall, and businesses and activities available in downtown Port Orchard. The City recently passed a mixed-use pilot program
ordinance (Ord. 046-17) to aid in the process of constructing several mixed-use projects in downtown Port Orchard. This program has implemented
many incentives for development including reduced parking requirements, more Øexible development regulations, clearly de×ned design standards,
and a streamlined project review process.
The City’s development goals for this site include:
1. Maximizing the site’s development potential and contributing to the vibrancy of the downtown area with well-designed development that will bring
employees, residents, customers, and visitors to the area.
2. The construction of a mixed-use project containing at least 3,000 square feet of commercial (retail or restaurant) space and at least 20 residential
dwelling units.
3. The construction a mix of market-rate and affordable housing units.
4. Streetscape improvements along the frontages immediately abutting the project site.
5. Enhancement of the Frederick Ave right-of-way abutting the site which may include a proposal for the partial vacation of the right of way (the west
half).
6. Project construction to begin within 30 months of entering into an agreement to sell the property.
Proposal Deadline: January 12, 2018 at 4:00 p.m.
Proposals are due to the City Clerk’s of×ce no later than 4:00 p.m. local time on Friday, January 12, 2018. Pre-applications meetings may be requested
on a ×rst-come, ×rst-served basis by completing a pre-application meeting request form. Pre-application meetings must be scheduled and conducted
prior to December 15, 2017.
Background Information
Location: 640 Bay Street is located at the southwest corner of the intersection of Bay Street (SR-166) and Frederick Street. The southern uphill
boundary of the site abuts Prospect Street.
The parcel is approximately 10,454 square feet and includes approximately 85 feet of frontage along Bay Street (Port Orchard’s Main Street). Up to 30
feet of the Frederick Street right-of-way (the west side) could be proposed for a street vacation under this proposal, though ×nal approval of any
vacation is subject to City Council approval. Project proponents could seek to redevelop adjacent parcels to the west of the site and include those
properties as part of the developer’s proposal, provided that any affected owners include a letter of support for the project.
Zoning Framework
The development of this site may occur under one of two sets of development standards. The property may be developed consistent with the codi×ed
zoning standards as found in POMC Title 20, or through the alternative standards under the Mixed-Use Pilot Program (MUPP) Ordinance as passed
on November 14, 2017.
Port Orchard Municipal Code Title 20 is available at https://www.cityofportorchard.us/regulations/ (https://www.cityofportorchard.us/regulations/)
The MUPP was written to encourage the development of mixed-use projects in Downtown Port Orchard. The MUPP has no maximum densities and
allows a 5-story building not to exceed 58-feet building on this site. In addition, a 10-foot (1-story) height bonus may be granted for this site if a
grocery store is included in the proposal as described in the pilot program ordinance. Parking is required either on-site or off-site, or a combination of
on- and off-site, at a minimum of 0.5 stalls per dwelling unit. All proposals will be required to comply with the City’s architectural design standards in
effect at the time of building permit submittal. These guidelines are currently available for review in draft form and a scheduled for a public hearing
before the Planning Commission in January 2018.
Ordinance 046-17 Mixed Use Pilot Program
(https://storage.googleapis.com/proudcity/portorchardwa/uploads/2017/11/046-17-MUPP-PC-Recommended-
Ordinance.pdf)
Environmental
The City acquired this site when the previous building at the location was destroyed by ×re. A Phase 1 Environmental Assessment was prepared by the
City and is available upon request. The property will be sold as-is. The developer would be solely responsible for any unknown environmental risk.
Phase 1 Environmental Assessment (https://storage.googleapis.com/proudcity/portorchardwa/uploads/2017/11/Phase-1-
10-8-13.pdf)
Land Sale Terms
1/22/2018 640 Bay Street RFP - Port Orchard
https://www.cityofportorchard.us/640-bay-street-rfp/3/7
The City seeks to recover the funds spent acquiring the property including the purchase price and other miscellaneous expenses totaling
approximately $145,000. Proposal submittals shall include a purchase price; price will be one of the factors considered in evaluation. The parcel will be
sold pursuant to an agreement that will include several terms intended to establish milestones for developing the site and to ensure that the site is
developed in accordance with the accepted proposal. The City seeks assurances that the property will be developed shortly after acquisition.
Proposals may be viewed more favorably if they include speci×c and strong assurances that would ensure that the property is developed in a timely
manner were that proposal to be accepted. Proposals should quantify other valuable consideration being offered as part of a proposal such as the
value of any public improvements proposed or dedications of land. An appraisal will be obtained by the City prior to entering into an agreement to sell
the property for development to ensure that the City receives valuable consideration equal to or exceeding the appraised property value.
Optional Pre-Proposal Informational Meeting
An informational meeting will be held: Monday December 4, 2017 at 11:00 a.m. at City of Port Orchard Council Conference Chambers, 216 Prospect
Street, Port Orchard, WA 98366. Please contact Jim Fisk at j×sk@cityofportorchard.us (mailto:j×sk@cityofportorchard.us) for more information.
Questions and Contact Information
In order to meet the City’s schedule, it is extremely important that requests for clari×cation or additional information be submitted in writing no later
than December 15, 2017, 4:30 P.M. PST. Questions submitted after this date may not elicit a response. All proposals or requests for clari×cation should
be sent to the Department of Community Development at: planning@cityofportorchard.us. (mailto:planning@cityofportorchard.us)
All questions pertaining to this RFP must be submitted in writing. City staff will provide written responses addressing submitted questions available
on a weekly basis on this website page.
Proposal Submission
Proposers must submit copies of their proposals as follows: one unbound copy, 10 bound copies and one electronic version in Microsoft compatible or
PDF format on CD or USB drive. Proposals must be on standard 8 ½” by 11” paper. All supporting documentation must be on paper no larger than 11”
by 17”. Proposals and supporting documentation must be submitted in a sealed envelope labeled “640 Bay Street Parcel Development.” Faxed
proposals will not be accepted. Proponents may choose to provide additional sets when invited to do so for presentation purposes. Submissions will
not be returned. Proposals shall be delivered to the City on or before Friday, January 12, 2018 at 4:00 p.m.
To:
City of Port Orchard – Clerk’s Of×ce
Request for Proposals for: 640 Bay Street
216 Prospect Street
Port Orchard, WA 98366
Proposals received after the deadline will not be accepted. Proposals postmarked prior to the deadline will be considered.
Proposal Contents
The information being requested through this RFP is necessary for the City of Port Orchard to adequately evaluate your proposal. Failure to supply
the requested information may result in rejection of your proposal. The City is not responsible for the costs incurred by proponents or their
subcontractors related to the RFP process, including but not limited to costs associated with preparing a proposal, or associated with participating in
any presentations or negotiations related to this RFP. Proposals must include 7 copies of the following:
1. A cover page.
a. Developer’s name and mailing address
b. Developer’s current legal status: corporation, partnership, sole proprietor, etc.
c. Federal ID number
d. State ID number
e. Contact person’s name, title, phone number, fax number and e-mail address
f. Signature of authorized corporate of×cer or owner for each entity proposing as a partnership or team
2. A Description (narrative, schematic plans and elevations) of the proposed development (e.g., size of building and square footage of speci×c
components; nature of improvements and how the improvements would bring active public uses to the block; amount and type of parking spaces
needed; anticipated materials and design style/concept; circulation patterns; proposed public-realm improvements; loading/service provisions) to be
built on the site. The proposal should include tentative information about the bedroom compositions, rents and/or sales prices and amenities/services
included. If commercial development is proposed, information should be included about the type of tenants expected.
3. An identi×cation of the entities that will be involved, a description of the roles they will play (e.g., developer, building owner, tenant, professional
consultant) and a summary of the team’s past experience in working together. A description of the entities' experience in developing similar projects
must be included, including location, type of development, proposer’s role(s), cost of project, funding sources, status of project and information about
1/22/2018 640 Bay Street RFP - Port Orchard
https://www.cityofportorchard.us/640-bay-street-rfp/4/7
any continued ×nancial or operating interest in each. Identify the principal person who will speak for the development team and any other key
participants who will be involved in negotiating the project terms. Specify whether the development entity is or intends to form a corporation, a
general or limited partnership, a joint venture or other type of business association to carry out the proposed development. Design consultants on the
team must be licensed in the State of Washington, and contractors must be licensed to work in the city of Port Orchard; the submission must include a
certi×cation that identi×ed team members meet these requirements.
4. Documentation of ×nancial ability to perform such as a conditional ×nancing commitment or other letter of intent from a ×nancial institution or
investor.
5. A description of the public bene×ts that will result from the development, e.g., the number and types of housing units, the creation or retention of
jobs (including the estimated number, type and wage levels), tax base enhancement, the provision of retail goods and services, public realm
improvements, etc. This should include an estimate of the taxable real estate value upon completion and annual real estate taxes.
6. A proposed timeframe for the development, including identi×cation of any conditions that must be met before the proposal can become a reality.
The schedule should include the time needed to obtain ×nancing, complete design and secure permits and approvals, prepare the site, start and
complete construction, and start and complete lease-up and/or sellout.
7. Any other information that would help City staff understand and evaluate the concept.
a. Proposer should use this section to present any additional information such as letters of recommendation, letters of interest from prospective
lenders or tenants, or other information that supports the proposal.
The contents of the proposal and any clari×cation to the contents submitted by the successful proposer may become part of the contractual obligation
and be incorporated by reference into the redevelopment contract between the selected developer and the City.
Developers responding to this RFP are not required to provide a Good Faith Deposit on the land with their proposals. However, the developer whose
proposal is ultimately selected by the City Council must make the required deposit (10% of the purchase price) at the time of selection.
Review and Evaluation Criteria
In reviewing potential development concepts, the following criteria are among those that will be considered:
• The experience and the ×nancial and organizational capacity of the developer in successfully planning and completing development projects of
similar type and scale, on time and within budget. The developer’s development track record with the City of Port Orchard, including any history of
meeting (or not meeting) its contractual commitments to the City, will be an important factor.
• The extent to which the proposed development meets the goals and requirements outlined in this RFP, as well as the goals of the City’s
Comprehensive Plan.
• The existence of committed building tenant(s), for any commercial spaces proposed.
• The degree to which the proposal supports the downtown’s character and contributes to the public realm.
• The quality of the proposed project’s exterior design and materials and the intended application of LEED or other environmental standards.
• The market and ×nancial feasibility of the project, and its ability to secure necessary private funds and be started and completed in a timely manner.
• The public bene×ts to be provided by the development (e.g., the generation of real estate taxes, the creation or retention of jobs, the provision of
housing units and/or commercial goods and services).
• The land price and whether any additional public investment would be needed to make the project feasible.
• The proposed terms of a purchase including but not limited to assurances that project construction will commence within a short timeframe.
• Overall quality of the submission. The City may, in its sole discretion, expand or reduce the criteria upon which it bases its ×nal decisions regarding
selection of the developer for this parcel.
Acceptance or Rejection of Proposals
The City reserves the right to accept or reject any or all proposals, to waive all minor technicalities, and to accept the proposal or proposals
determined to be the most advantageous to the City. Additionally, the City may accept a proposal subject to an exception if, in the sole judgment of the
City, the proposal meets or exceeds the City’s speci×cations.
Review and Selection Process
A committee that will include City representatives will review proposals received by the due date. Input may also be sought from the Port Orchard
Design Review Board. Some or all of the proposers may be requested to present their proposals to the review committee and/or Design Review Board.
During the review process, proposers may be asked questions to clarify their proposals, but cannot modify their proposals. The review committee will
make a recommendation as to the proposal that best meets the review and evaluation criteria. This recommendation will be considered by the
Department of Community Development Director, and the Director’s recommendation will be forwarded to the City Council for action. At this point,
the City Council will select a development proposal and authorize staff to negotiate the terms of the redevelopment contract that will include the
terms of the transaction.
1/22/2018 640 Bay Street RFP - Port Orchard
https://www.cityofportorchard.us/640-bay-street-rfp/5/7
Once redevelopment contract terms have been negotiated and any further analysis completed, staff will return to the City Council for a land sale
public hearing and consideration of approval of the land sale and related terms.
The City reserves the right to reject any or all proposals or parts of proposals, to negotiate modi×cations of proposals submitted, and to negotiate
speci×c work elements with a proposer into a project of lesser or greater magnitude than described in this RFP or the proposer’s reply.
Schedule
Following is the anticipated tentative timeline:
Pre-proposal meeting: December 4, 2017
Last day for Proposers to submit written questions and pre-application meeting deadline: December 15, 2017
Submission deadline for proposals: January 12, 2018, 4:00 pm
Review/evaluation of proposals: January 29, 2018
Recommendation of selected developers to Community Development & Regulatory Services Committee and ×nal action by City Council: February 13,
2018
City Contracting Requirements
Any proposed agreement to purchase the property shall include development milestones such as dates by which building permits or site development
permits will be submitted seeking building or site construction plan review and/or dates by which construction activities will commence. An agreement
to purchase the property shall include contingencies requiring the achievement of certain development milestones prior to closing or other assurances
that project construction will occur within a speci×ed timeline.
Ownership of Work Product
Any and all data, reports, analyses, documents, photographs, pamphlets, plans, speci×cations, surveys, ×lms or any other materials created, prepared,
produced, constructed, assembled, made, performed or otherwise produced by the Developer, Contractor or the Contractor’s subcontractors or
consultants for delivery to the City under this RFP shall be the sole and absolute property of the City. Such property shall constitute “work made for
hire” as de×ned by the U.S. Copyright Act of 1976, 17 U.S.C. §101, and the ownership of the copyright and any other intellectual property rights in such
property shall vest in the City at the time of its creation. Ownership of the intellectual property includes the right to copyright, patent, and register,
and the ability to transfer these rights. Material which the Developer or Contractor uses to prepare a proposal in response to this RFP but is not
created, prepared, constructed, assembled, made, performed or otherwise produced for or paid for by the City is owned by the Developer or
Contractor and is not “work made for hire” within the terms of this RFP.
Public Records Requests
This RFP and all public records associated with proposals submitted in response to this RFP shall be available from the City for inspection and copying
by the public where required by the Public Records Act, Chapter 42.56 RCW (the “Act”). To the extent that public records then in the custody of the
Developer or Contractor are needed for the City to respond to a request under the Act, as determined by the City, the Developer or Contractor agrees
to make them promptly available to the City. If the Developer or Contractor considers any portion of any record provided to the City under this
Agreement, whether in electronic or hard copy form, to be protected from disclosure under law, the Developer or Contractor shall clearly identify any
speci×c information that it claims to be con×dential or proprietary. If the City receives a request under the Act to inspect or copy the information so
identi×ed by the Developer or Contractor and the City determines that release of the information is required by the Act or otherwise appropriate, the
City’s sole obligations shall be to notify the Contractor of: (a) the request; and (b) the date that such information will be released to the requester
unless the Developer or Contractor obtains a court order to enjoin that disclosure pursuant to RCW 42.56.540. If the Developer or Contractor fails to
timely obtain a court order enjoining disclosure, the City will release the requested information on the date speci×ed.
Parcel Map
1/22/2018 640 Bay Street RFP - Port Orchard
https://www.cityofportorchard.us/640-bay-street-rfp/6/7
Parcel Map with Aerial Photo
1/22/2018 640 Bay Street RFP - Port Orchard
https://www.cityofportorchard.us/640-bay-street-rfp/7/7
Helpful
Share
Size
Translate
Contact
216 Prospect Street
Port Orchard, WA 98366
Phone: (360) 876-4407
Hours: 8:00 a.m. - 4:30 p.m.
Monday-Friday
Directory (/contact) Feedback (/feedback)
Accessibility (/accessibility-commitment) Sitemap (/sitemap)
Subscribe
Subscribe to our general news & public notices.
Subscribe to more lists > (/subscribe)
Enter email
Subscribe
Connect