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RFP

1602-1606 Broadway Avenue

Tuesday, July 28 2020
Tuesday, October 20, 2020 at Noon ET

The URA is requesting proposals from redevelopers or redevelopment teams to purchase and redevelop 1602-1606 Broadway Avenue. The goal of this RFP is to select a Redeveloper who can complete a high-quality, mixed-use development as permitted by Local Neighborhood Commercial zoning guidelines while preserving the architectural character of the building.


Interested developers should note there is no public commitment to provide funding for renovation, construction or site work. URA has amortizing loan products that can be leveraged as gap financing for commercial portions of the project. If a proposal is conditioned upon suchfunding, the amount and terms of such funding will be a consideration of approval.

Tentative Schedule

A tentative schedule for the proposal selection process is below. Schedule changes will be posted as an addendum on Public Purchase. Redeveloper(s) must be available for the following meetings, interviews and deadlines.

*The URA intends to open the building for site tours, but due to COVID-19, site tours have not been scheduled. Please contact the URA to schedule a site tour. Please note that attendance to at least one (1) site tour will be mandatory for Redevelopers interested in responding to this RFP. Redevelopers are encouraged to bring their architect, engineer, or any other applicable team members to the site tour.

Site Information

A site map showing the development area is shown below.

Neighborhood: Beechview
RFP for 1602-1606 Broadway Avenue
Location: 19th Ward, City of Pittsburgh
Council District: 4
Councilperson: Anthony Coghill
Zoning: LNC – Local Neighborhood Commercial
Preferred Reuse: Mixed-Use
Appraised Value: $82,000* (See Exhibit “A” for appraisal)

* Please propose a sales price that allows for a project that is economically viable and meets a “highest and best use” standard with the least amount of public subsidy.

Background

  A. URA Information

As the economic development agency for the City of Pittsburgh (City), the URA is committed to creating jobs, expanding the City’s tax base, and improving the vitality of businesses and neighborhoods within the City. The URA achieves this mission by assembling, preparing and conveying sites for major mixed-use developments and by providing a portfolio of programs that include financing for business location, relocation, and expansion, housing construction and rehabilitation, and home purchases and improvements, among many others. The URA conducts these activities using unique powers granted by the Commonwealth’s Urban Redevelopment Law to deploy and attach conditions to the use of public subsidy and the disposition of publicly owned land. The URA is committed to equitable development and incorporates best practices for equity and inclusion into the URA's internal and external policies and activities.   The URA is a legal entity separate and distinct from the City of Pittsburgh. The URA works closely with the City in fulfilling its redevelopment mission. Additional information regarding the URA may be found on the URA’s website at www.ura.org.  

B. Neighborhood Context

Beechview is located just three miles southwest of Downtown Pittsburgh, near Brookline, Dormont and Banksville. Founded in 1905, the area is predominantly residential with separated, single-family homes and is known for its sweeping vistas. The “T” runs the length of Broadway Avenue, making the area highly visible to nearly 14,000 commuters who ride the “T” to and from work each day. The population of Beechview in 2019 was 3,425.  IGA Market on Broadway / Las Palmas is a URA sponsored project adjacent to the 1602-1606 Broadway development site.   The URA has created business district market profiles to provide a statistical snapshot of the area. The market profiles use a 2-minute drive time radius as a designation of the trade/market area around the center of the commercial corridor. These reports are meant to provide basic information and should not be considered conclusive comprehensivemarket studies. Data has been collected through ESRI Business Analyst, a GIS-based market data program. The 2019 Beechview Market Profile –  Broadway Avenue Commercial District can be accessed here: https://www.ura.org/business-district profiles/beechview-broadway-avenue

C. Community Outreach

Beechview is home to several nonprofit advocacy organizations that are dedicated to improving the quality of life for Beechview’s residents. These organizations include Beechview Revitalization Advisory Group (BRAG), which was founded under the auspices of the Pittsburgh Hispanic Development Corporation (PHDC). Its mission is to build positive relationships with Beechview residents, business owners, government officials, foundations, and other communities. BRAG promotes Beechview’s living and business amenities and quality of life, through positive media coverage, public relations and by bringing potential business owners, new home buyers, developers and funders together to improve the community. The Pittsburgh Hispanic Development Corporation (PHDC) is a unique non-profit development corporation, in that its focus is more on supporting a growing group of immigrants throughout Pittsburgh and the region. PHDC chose to locate and launch its projects in Beechview because of its excellent location, transportation infrastructure and housing stock combined with its high concentration of Hispanic residents and businesses. PHDC’s Board of Directors is diverse and possesses significant development capacity and expertise. PHDC recognizes the need for community input from Beechview stakeholders and the importance of undertaking projects that benefit all Beechview residents, regardless of ethnic background. Therefore, the PHDC has embraced the idea of organizing and mentoring BRAG. More information on BRAG can be found here: https://beechviewing.org/brag.

D. Public Funding and Resources Available

Interested Redeveloper(s) should note there is no commitment by the URA to provide subsidy for this project. Proposals must take this into consideration. Equitable Empowerment Program (EEP): The URA has partnered with Neighborhood Allies to provide technical resources to improve access to small-scale, community-based neighborhood development opportunity. These resources are designated for organizations and businesses with annual revenue of less than $500,000 per year with fewer than ten (10) employees. Respondents meeting the criteria are eligible to receive help with items such as RFP language/packet development, budget and proforma development, site analysis, feasibility analysis, and general project support. Small grants of up to $5,000 may be available to those who qualify. Please note that grants are not awarded to individuals. Grants are utilized to secure resources that may be necessary to support the preparation of the RFP packet. Please  Please email glenn@neighborhoodallies.org or call 412-471-3727 ext. 220 to find out how to seek assistance with building your RFP response packet. Neighborhood Initiatives Fund (NIF): The NIF Program is designed to increase visibility and accessibility to funding and reduce barriers for small businesses and nonprofit developers in doing business with the URA. It provides grants to help unlock the economic and placemaking potential within neighborhoods, and support vision-to-action community investment strategies that build an equitable Pittsburgh for neighborhood scale projects.  Only nonprofit entities are eligible to apply for NIF.  Questions about the NIF Program should be directed to Matt Reitzell at mreitzell@ura.org or (412) 255-6560.    

Submission Requirements

Please note that the URA is currently using Public Purchase as its RFP Platform.

Redevelopers must register online at https://www.publicpurchase.com/ to submit their proposal.

All questions regarding this RFP should be submitted through the Public Purchase platform. See instructions on registering for and accessing Public Purchase in Exhibit “B.”

The URA will not reimburse firms for any expenses incurred in preparing responses to this RFP.

Proposal Requirements

The following proposal requirements will serve to establish a Redeveloper’s overall capacity to complete this project and to meet the requirements and obligations associated with the land. 

Each submission should include the following:

  • RFP Summary Sheet: This should be the cover page and include the firm’s name, contact person, and contact information. See Exhibit “C.” Please include this as a Microsoft Excel document in the electronic submission.
  • Table of Contents
  • Development Team Profile: Provide a description of the development team, including but not limited to the developer, architect, engineer, etc.
  • Project Narrative
    • Description of development scenario and plan – specific use, number, type of units, square footage and affordability mix for residential and/or commercial units
    • Parking plans
    • Community engagement plan – explain how you plan to engage the community and how you plan to incorporate their input if selected
    • Explanation of ownership entity (single owner, partnership, LLC)
    •  Prospective development timeline, including major milestones
  • Schematic Drawings of the Proposed Project
    • Massing Plan
    • Site Plan
    • Elevations
    • Renderings
  • Financial Capacity
    •  Detailed description of the ability to finance the costs associated with the project
    • Identification of the people or entities in the proposed development team, including any and all joint venture, general, or limited partners and respective percentages of interest
    •  Role of each listed in b. above in the implementation of the development plan
    •  Statement of equity contribution with source identified
    •  Letter of Interest or references from lending institutions, if applicable
    •  Letters of Interest from potential tenants, if applicable
    • Redeveloper’s financial statements (under separate cover, with redeveloper’s name and marked “confidential”)
  • Budgets
    • Financing sources with funding gaps identified
      •  If you propose to use Low Income Housing Tax Credits (LIHTC) as a source (either 9% credits or 4% credits), please include a LIHTC equity calculation.
      •  If there is a gap identified and you plan to apply for URA financing, please clearly identify funding amount, source and use
    • Project uses including Redeveloper’s offer as well as projected hard and soft costs
    •  Proforma including all anticipated operational and maintenance costs
    • Phased sources and uses, if applicable, with the first phase clearly identified
    • Completion of attached Project Sources and Uses of Funds Template (Exhibit “D”)
  • Minority and Women-Owned Business Enterprise (MWBE) Requirements
    • The URA has a long history of diversity and inclusion within all of its programs and other activities. The URA encourages the full participation of minority and women business owners and professionals in this effort. The URA requires that all applicants demonstrate a good faith effort to obtain minority and women-owned business participation in work performed in connection with URA initiatives. The URA acknowledges and adheres to the City’s goal of 18 percent (18%) minority and 7 percent (7%) women participation. 
    • An MWBE narrative needs to be included with the respondent’s proposal. See Exhibit “E” for MWBE Narrative Requirements. MWBE participation can be satisfied by:
      •  Ownership/partnership of firm
      • Use of minority or women-owned businesses as vendors
      • Subcontracting with firms owned and controlled by minorities and/or women. If this is to be done, that fact, and the name of the proposed subcontracting firms must be clearly identified in the proposal.
    •  Any questions about MWBE requirements should be directed to the URA’s MWBE program office at mwbe@ura.org.


Notice to MWBE Firms Interested in Contracting Opportunities

If you are an MBE or WBE firm interested in working on this project, you may submit a capability statement describing your firm and the work that your firm would like to perform. Upon receipt of this statement, your firm will be added to a list of potential MWBE subcontractors, to be shared for consideration with the contract awardee(s). Interested firms should send capability statements to mwbe@ura.org  no later than Friday September 18, 2020. Capability statements must be within the scope of work related to this project and clearly identify the limited scope.

Please note: Providing a capability statement does not guarantee that your firm will be contacted or contracted to work on this project.

The URA will not make an official recommendation as to which MWBE firms the project awardee(s) must utilize. All capability statements submitted by qualifying firms by Friday September 18, 2020 will be shared with the selected Redeveloper(s) to aid in the Redeveloper’s good faith effort to meet the 18 percent (18%) MBE and 7 percent (7%) WBE goals for the project.

  •  Minority Workforce Inclusion (MWI) Narrative Requirements
    •  In accordance with City of Pittsburgh Executive Order Number 2018-03, the URA requires that all respondents demonstrate and document a good faith effort to meet or exceed the City’s 12 percent (12%) minority workforce inclusion (MWI) goal for all URA projects with total project costs of $500,000 or greater. As a matter of policy, all proposal packages submitted to the URA must include an MWI narrative detailing how the respondent plans to meet the URA’s expressed MWI goal of 12 percent (12%). If awarded the project, the respondent will be asked to submit an MWI plan evidencing that 12 percent (12%) of the labor hours are fulfilled by minority workers. 
    • MWI participation can be fulfilled by:
      • Employment level of minorities and/or women in the firm
      • Staffing of minorities and/or women on URA matters
    •  See Exhibit “F” for MWI requirements. Any questions about MWI requirements should be directed to the URA’s MWBE program office at mwbe@ura.org.
  • Pittsburgh p4 Performance Measures: The p4 Performance Measures are an evaluation tool that informs the alignment of investments in real estate development projects to the City’s commitment to sustainable and equitable practices. If project costs are expected to exceed $2,000,000, a p4 Narrative must be included with the Redeveloper’s proposal. See Exhibit “G” for p4 Narrative requirements.
  •  Relevant Development Experience
    • Brief description of similar projects (date, location, concept)
    • Experience with Local and Federal preservation requirements on similar projects
    •  Photographs of projects
    •  References - strong references include banks, municipal entities, co-developers, tenants and press clippings that include project descriptions to describe previous work
    • Brief description of community engagement in previous projects
  • Other Information:Please provide any other information you believe is pertinent to the URA’s   consideration of your firm. 

 

 

 

Selection Criteria

Proposal responses will be evaluated by a review committee comprised of community representatives, representatives of local elected officials, a representative from the Department of City Planning, and various URA staff. The URA may make a recommendation to its Board to enter into exclusive negotiations with a Redeveloper.

One or more Redevelopers may be asked to meet with the selection committee in a formal interview process. 

A Redeveloper will be recommended to the URA Board based on, but not limited to, the criteria listed below. The URA reserves the right to weigh each of these criteria differently and as set forth in Section 9, waive any of these criteria in its discretion.

  1. Demonstration of the ability to attract and secure financing
  2. Redeveloper’s experience in completing similar projects and/or Redeveloper’s training, skills, and experiences that provide evidence of Redeveloper’s ability to complete the proposed development  
  3. Ability to assemble a team with the appropriate specialties
  4. Commitment to p4 Performance Measures
  5. Commitment to MWBE participation
  6. Experience with community engagement in previous projects and demonstration of commitment to follow the URA’s Community Input Process, (Exhibit “H”), for community participation and interaction for the project 
  7. Commitment to giving community residents first consideration for employment opportunities

A Redeveloper will be recommended to the URA Board based on the overall quality of the proposed project. The URA does not sell land for speculative purposes. Any such proposal to acquire and hold the land with construction to occur when, and if, it is successfully marketed will be rejected. Furthermore, the URA will reject any Redeveloper which intends to purchase the entire site but develop only a portion of that site. If that is the intention, the Redeveloper should submit a response for a portion of the site. 

The evaluation of the Redeveloper’s qualifications, experience and capacity will be based upon information in the proposal submitted by the Redeveloper, interviews, investigation of projects completed by the Redeveloper, assessment of performance in previous undertakings and other pertinent factors. The URA will follow its Disposition Process (see Section 8 below) which includes significant design review and construction oversight.

The URA Board must approve any and all Redevelopers who purchase URA land.   

Disposition Process

Should the URA Board select a Redeveloper for the site, such Redeveloper will be required to comply with the URA’s Disposition Process. As part of this process, the Redeveloper must show that all funds needed for the fully realized project are available at the time of closing. In order to give the community a level of comfort that the site will be responsibly redeveloped, the URA will review the Opinion of Probable Cost and construction plans against the evidence of financing to determine if the information presented is reasonable and corresponds. The URA will not close on a property until all the terms of the disposition process are fulfilled. See Exhibit “I” for Disposition Process Overview.

The Redeveloper must be willing to enter into a written Disposition Contract with the URA. The Disposition Contract is the binding document that details the Redeveloper’s plan to design, finance, purchase and construct the redevelopment project. Taxes, liability insurance, site security, and all aspects of owning and redeveloping the property shall be the full responsibility of the Redeveloper at the time of sale as specified in the Disposition Contract.

The URA Board must approve any and all Redeveloper(s) who purchase URA property. Upon URA Board approval, the Redeveloper’s purchase of the property will occur after execution of a Disposition Contract, approval of the final construction documents and issuance of a building permit. The purchase of the property will occur simultaneously with the closing on the Redeveloper’s construction financing.

Legal Information

The URA shall have the right to verify the accuracy of all information submitted and to make such investigation as it deems necessary to determine the ability of a Redeveloper to perform the obligations in the response. The URA in its discretion reserves the right to reject any response when the available evidence or information does not satisfy the URA that the Redeveloper is qualified to carry out properly the obligations of the response or if the Redeveloper refuses to cooperate with and assist URA in the making of such investigation.

  1. Inspection of Parcel: Redeveloper(s) shall be given an opportunity to inspect the property and the title to the property, among other things. If the Redeveloper is selected and elects to proceed after exercising its due diligence, it shall acquire or take possession of the parcel(s) in “AS-IS” CONDITION, unless otherwise agreed to by the URA in its discretion, in a Disposition Contract.
  2. Building Permits, Zoning Variances and Financial Viability: The sale of the property in no way guarantees or warrants grading permits, building permits, zoning variances or financial viability. The URA reserves the right to refuse to sell the property until a Redeveloper is able to obtain all necessary permits.
  3. Disclaimer of Liability: Redeveloper(s) acknowledge by submitting information and proposals to the URA that the URA does not undertake any obligations and shall have no liability with respect to the development program, this RFP and responses thereto, nor with respect to any matters related to any submission by a Redeveloper.
  4. MWBE Requirements: The URA requires that all applicants demonstrate a good faith effort to obtain minority and women-owned business participation in work performed in connection with URA initiatives. The URA acknowledges the City’s goal of 18 percent (18%) minority and 7 percent (7%) women participation in planning and/or professional service activities. Any questions about MWBE requirements should be directed to the URA’s MWBE program office at mwbe@ura.org.  
  5. Sustainability Requirements: The selected Redeveloper(s) will be required to demonstrate a good faith effort to incorporate environmentally sustainable features and practices into their development plan. If selected by the URA’s Board of Directors as the Redeveloper(s) for this project, the Respondent(s) will be asked to submit an updated MWBE Narrative with its Redevelopment Proposal Package, and a detailed p4 checklist prior to closing on a loan and/or land transaction.  
  6. The Redeveloper(s), for itself and its employees, contractors, and primary subcontractors, agrees not to discriminate against or segregate any person or group of persons on any unlawful basis in the construction, sale, transfer, use, occupancy, tenure or enjoyment of the property or any improvements erected or to be erected thereon, or any part thereof.  
  7. The URA reserves the right to accept an offer or proposal other than the highest offer.
  8. The URA reserves the right to negotiate with any, all, or none of the Redevelopers and to recommend another Redeveloper in the event that the originally selected Redeveloper defaults or fails to execute a disposition contract.
  9. The URA shall be the sole judge as to which, if any, proposals and Redeveloper(s) best meet the selection criteria. Notwithstanding anything in this RFP to the contrary, URA reserves the right to reject any or all proposals received, to waive any submission requirements contained within this RFP, and to waive any irregularities in any submitted proposal.
  10. This RFP is submitted subject to errors, omissions and/or withdrawal without notice by the URA at any time.  
  11. All proposals, including attachments, supplementary materials, addenda, etc. shall become the property of the URA and will not be returned.
  12. Addenda will be posted on Public Purchase. All such addenda shall become part of the RFP documents. All Redevelopers shall be bound by such addenda, whether or not received by the Redevelopers. 
  13. Conflicts of Interest: Responsive firms and their team members must have no conflicts of interest with regards to any other work performed by the Redeveloper for the URA, the City, or any related entity.
  14.  RFP Compliance: All responsive firms must adhere to the instructions contained in this RFP in preparing the submitted proposal.
  15. Waiver of Defects: The URA shall be the sole judge as to which Redeveloper(s) best meet the selection criteria. The URA reserves the right to reject any or all qualifications submitted. The URA reserves the right to reject any proposal for failure to comply with the requirements of this RFP. The URA further reserves the right, in its sole discretion, to waive any such defect(s) or failure(s). Submission of a response indicates acceptance by the firm of the conditions contained in this RFP.
  16. Nondiscrimination: Each responsive firm agrees not to discriminate, whether in employment, contracting or otherwise, in violation of any federal, state, or local law and/or on the basis of sexual orientation, gender identity and/or gender expression.

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