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Home My WebLink AboutSS3 - City Hall Reuse Proposals - Supplemental Report�EW�oR> CITY OF °� m= NEWPORT BEACH c9C /F00.NP City Council Staff Report Supplemental Report Agenda Item No. SS3 April 23, 2013 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community Development Department Kimberly Brandt, AICP, Director 949 - 644 -3226, kbrandt @newportbeachca.gov PREPARED BY: James Campbell, Principal Planner APPROVED:ia 0. TITLE: First Look at City Hall Reuse Proposals (PA2012 -176) 3300 Newport Boulevard & 475 32nd Street Supplemental Report DISCUSSION: On April 18, 2013, the City received three development proposals from the following teams: RD Olson Development, Sonnenblick Development, and The Shopoff Group. A brief summary and the development proposals can be accessed at the following webpage: http://www.newportbeachca.gov/CitvHa11Reuse Three teams declined to submit proposals and their response is attached. Submitted by: Kimberly Brand , AICP Director Attachments: E -Mail from Olen Development E -Mail from AMLI Residential Letter from Pacific Hospitality Group 1 From: Mark Zonarich [ mailto: mzonarich(a)olenorooerties.com] Sent: Thursday, February 14, 2013 10:45 AM To: Nguyen, Anthony Cc: Dale Lyon Subject: RFP No. 13 -35 City Hall Site Reuse Importance: High Dear Mr. Nguyen and the City of Newport Beach, Regretfully, I write to inform you that Olen Properties Corp is officially withdrawing from our pursuit of the City Hall Reuse RFP. Following much analysis, we determined that the realities of today's market do not support a viable, and what we believe to be, competitive bid given the prescribed development program, requirements and constraints. We appreciate the opportunity and should anything change, please do not hesitate to contact us. We wish you the best of luck in this venture and look forward to other future opportunities with the City. Sincerely, Mark Zonarich, AICP, LEED -AP Design /Project Manager OLEN DEVELOPMENT CORP. Seven Corporate Plaza Newport Beach, CA 92660 (949) 719 -7222 - Direct (949) 719 -7274 - Fax www.olenDrot)erties.com ptASE CONSIDER rNE LNVIYONMENr VIM 511PO!E POINTING nQ5 lMAIE Note: The information contained in this email and in any attachments is intended only forthe person or entity to which it is addressed and may contain confidential and /or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. The recipient should check this email and any attachments for the presence of viruses. Sender accepts no liability for any damages caused by any virus transmitted by this email. If you have received this email in error, please notify us immediately by replying to the message and delete the email from your computer. This e-mail !sand any response to !twill be unencrypted and, therefore, potentially unsecure. Thankyou. OLEN PROPERTIES CORP. 2 From: Carlson, Nate [NCARLSON @amli.com] Sent: Wednesday, March 27, 2013 10:49 AM To: Nguyen, Anthony Cc: Campbell, James; Armison, Jason; philip @bettencourtplans.com;'Robert Brower' Subject: Newport Beach city Hall site Reuse Competition (RFP 13 -35) Dear Mr. Nguyen After careful consideration of the RFP 13 -35 specifications and all of the particulars concerning the City and community expectations for reuse of the former city hall property, AMLI Residential hereby respectfully withdraws from further participation in the current competitive process. This was not an easy decision and was not taken lightly. AMLI Residential is one of the preeminent multifamily companies in the nation focused on developing luxury apartment communities across the United States. We have the financial strength that comes with being financed by the Morgan Stanley PRIME Property Fund. We have the resources to meet all of the City's demanding requirements. We had also assembled a talented and experience team of KGTY, Inc. MJS Design Group and Bettencourt and Associates among others to respond to the RFP. We wanted to make this announcement at this time to respect to the City's interests in having a robust design competition in the event you select an alternate participant. We thank you for your consideration and wish you all the best with your ongoing completion and efforts to do the very best for this challenging and exciting property. Nate Carlson Vice President, Southern California Focused on the Core Competency: Development & Acquisitions AMLI Residential 13195 Red Hill Ave., Loft F I Costa Mesa, CA 92626 1 949.413 -5716 APlease join AMLI and consider our environment before printing this e-mail. This Message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. Any dissemination, disclosure, copying, or distribution of this message, or the taking of any action based on it, is strictly prohibited. Ifyou have received this message in error, please notify the sender and destroy the original message and all attachments. Thank you 3 file: / //P1/PA's/PAs - 2012/ PA2012- 176/Proposals/Declined/Newport Beach city Hall site Reuse Competition (RFP 13- 35).htm[04/19/2013 4:00:24 PM] PHG PACIFIC HOSPITALITY GROUP" April 17, 2013 VIA E -MAIL anguyen@newportbeachca.gov City of Newport Beach 3300 Newport Boulevard P.O. Box 1768 Newport Beach, CA 92658 Attn: Anthony Nguyen, Purchasing Agent Re: City of Newport Beach City Hall Re -Use RFP Our File No. 4899 -2.0 Dear Sir: Pacific Hospitality Group, LLC was pleased to have been chosen as one of three hotel finalists among the six total finalists to respond to the request for proposal ( "RFP ") for the City of Newport Beach City Hall re -use site. Understanding the importance of this site to the City, we took special care over the last several months to evaluate the RFP. However, we have reluctantly decided not to respond to the RFP and must regretfully withdraw from being considered for this project. In order for a hotel as we contemplate it —a four - diamond boutique hotel with the necessary amenities consistent with the resort hotel portfolio we currently operate —to be a successful business enterprise, additional increased density must allocated to this site. A 99,625 gross sq. ft. limit is substantially inadequate for a viable hotel of this type, particularly considering that a higher limit could be established while remaining within Measure S parameters. The current arbitrary limit does not allow sufficient conference and meeting space nor the minimum number of hotel rooms to be financially feasible. The City's General Plan allows for the transfer of development rights within a statistical area. For this to be a successful hotel site, we would propose allowing increased density to this site by transferring unbuilt intensity within Statistical Area B5 while staying within Measure S limits. Additionally, we believe the highest and best use of this site is mixed use — retail, hotel and multi- family. Such highest and best use would require, at a minimum, 150,000 gross sq. ft. While we recognize this concept would require amendments to the General Plan and Coastal Land Use Plan, we believe the site deserves more than the current restrictions would allow and is worth the necessary processing and community outreach to make it possible. Pacific Hospitality Group, LLC • 2532 Dupont Drive • Irvine, CA 92612 -1524 • pacifichospitality.com • 949.474.7368 al City of Newport Beach April 17, 2013 Page 2 We certainly appreciate the City of Newport Beach choosing us to respond to the RFP; however, given the current density limitations, we believe that a hotel project is not consistent with the City's own RFP, and therefore not a viable consideration. We wish you the very best in your deliberations and if you decide to proceed differently than the current RFP process outlines, please consider us for a future opportunity. Very truly yours, PACIFIC HOSPITALITY GROUP, LLC IN Its: Chief I U(9ramerPDacifichoSDita ent Officer Phone: 474 -7368 Ext. 223 EFax: ) 315 -3895 Email: KJK:gty 4899.0000/ 568597.docx 5