SR-11-D (4)
Santa Monica, California,
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March 19, 1981
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Mayor and City Council
FROl.1.
City Staff
SUBJECT: Request for Proposal; Santa Bonica Airport Land
Development Project
Introduction
'!his report concerns a :::1.equest for Proposal :for development of
vacant Airport land as directed by City Council.
Backqound
The attached invitation and related development guidelines are
submitted for City Council review as pertains to development of
vacant Airport land. Council has previously directed Staff to obtain
development proposals for the land; said development to be sinular
and compatible with the existing Barcl~-Curci development.
At this time the following schedule prevails for the proposed 3equest
for Proposals;
1. The matter will be reviewed by the Airport Commission on
Monday, March 23, 1981. The Airport Commission recollll!lendation will
be presented to City Council the following Tuesday, March 24, 1981.
2. Development Standards for the property will be reviewed by the
Planning Commission on April 6, 1981. The Director of Planning has
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recommended that the Planning Commission reaffirm the development guide-
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lines previously adopted f'or the Airport area and initiate a change of
district for the remaining area to M 2-3
Site Review District.. A~U.....bliC..
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Mayor fu~d City Coun~ll
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March 19 ~ 1981
hearing is scheduled for the matter on April 6, 1981.
The Request for P:ropO:3al is predicated upon the change to ;~ 2-3
Site Revi€~ Dls~r~ct. TIle major guidelines of ~he Request for
Proposal are as fol10ws:
1. The land is to be marketed on a long term lease basis;
lease term is 55 years. Potential land area to be developed is
19.52 acres.
2. Land use shall be primarily Office Park, Industrial and
RecreatLmal, with Commercial uses limited to and supportive of
office-industrial development and neighborhood residential areas.
Recreational. uses &hall be consistent with neighborhood and Compre-
hensive Community needs and plans.
3. Environmental Considerations are well defined in the
development guidelines.
4. ;.!arket Survey. The developer is required to perform an
extensive market analysis of demand and un:net demand on proposed and
existing facilities.
5. Site Deve~opment Plan is required with submission of' Develop-
ment proposal.
6. ~tinimurn mL~ual rental is $2,000,000.00, subject to periodic
adjustment based on CPI and/oT City participation in gross revenues.
7. Bid Bonds in the amount of $25,000.00 are required.
8. A depoait of 50% of minimum annual rental as bid is
requ~red of the Successful Bidder at the time of selection by
City Council.
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Mayor and City Council
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Harch 191 1981
9. Minimum annual rental payment commences one (1) year after
date of execution of' Lease and Development Agreement.
10. It is intended to award the Development project to that
bidder who provides the f'ollowing attributes:
a. Financial capability and e:lqJer:!.ence.
b. Qual:!. ty of development concept.
c. Timing of development and construction.
d. Highest annual rental.
Alternatives
The alternatives are;
1. Proceed with Request for Proposal to develop the subJect
property under M 2-3 guidelines.
2. Develop the property to other uses.
3. Let the property remain vacant.
Recommendation
Staff recommends Alternative No.1; that the City proceed with Request
for Proposal to develop the property to M 2-8 District land uses.
Prepared by: David L. Shirey
CITY 0'
SANTA
e
MONICA
CALIFORNIA
March 19, 1981
Dear Sir or Madam:
The enclosed Development package includes a Request For Propos-
al (RFP) for the development of vacant land owned by the Clty of
Santa Monica; the land lS located between the eXlsting Santa
Monlca Business Park (Barclay-Curcl development) and the Santa
Monlca Alrport. A plot plan lS lncluded In the Development
package showlng the proposed development area.
The Development package contalns development guidellnes WhlCh are
intended as an aid to assist potentlal developers In preparing
proposals. The gUldelines are not lntended to preclude lnovatlve
approaches to development of the slte, but rather to pOlnt out
certain establlshed standards, such as helght llmltations, in-
cludlng maxlmum helght contours adJacent to Alrport operating
areas. Please note that 45' lS the maximum height limlt In the
development area; the limlt lS 22' at the airport property line.
Other development requlrements and parameters are outlined In var-
lOUS attachments and the Prelimlnary Development Map. The develop-
ment plan lS predlcated on a 55-year ground lease of City-owned
land; sealed bid procedures will be the rule In the advertisement
and award of thlS proJect. Bid bonds or certlfied check or cashler's
check are requlred and subJect to be forfieted to the City In the
event of default on the part of the bidder. Mlnlmum acceptable
bld (annual rent) lS $2,000,000.00. The mlnimum annual rent will
be subJect to periodlc CPI adJustment factors and/or City partlci-
patlon In gross Revenues of The Development Project. The success-
ful Bldder must furnlsh a Deposlt in the amount of 50% of the annual
rental, as bid, at the tlme of selectlon by the Santa Monica Clty
COunCll.
Sealed proposals wlll be recelved at the office of the Clty Manager,
Clty Hall, 1685 Maln Street, Santa Monica, CA 90401 untll 3:00 P.M.
on June 30, 1981 and will be opened and read publlcly after sald
time on sald date.
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A TTACHMENT NO. 3
PROPOSAL TO LEASE AND DEVELOP
SANTA MONICA AIRPORT LAND PROJECT
The (Developer)
has studied the Airport Land Development Project as advertised
by the City of Santa Monica. The
(Developer) hereby submits the following Proposal with respect
to said Development Project.
1. Lease term is 55 years.
2. Annual rental bid: $
3. Bid Bond (or Certified Check/Cashiers Check) @ $25,000.00
enclosed
4. Development concept enclosed.
Also enclosed is information indicating the experience and capa-
bility of Developer, as well as a summary of what we believe is
cne poterttial for development of the land and the general approach
we suggest for that development. Also attached is a financial
statement and a proposed schedule for the lease and development
of the subject land.
The (Developer)
hereby agrees, upon acceptance of this Proposal by the City, to
negotiate diligently and in good faith with City, for a period
of ninety (90) days and to use our best efforts to arrive at a
final Lease and Development Agreement which is mutually acceptable.
The (Developer)
agrees to deposit with the City, within five (5) days of acceptance
hereof, a Deposit in the amount of 50% of the annual rental, as bid.
If this Proposal is accepted by City, the City agrees to negotiate
with Developer for a period of ninety (90) days, beginning upon
the day of acceptance and during that period to negotiate with no
one else regarding the Project. City agrees to negotiate in good
faith and to use its best efforts to reach a final Lease and
Development Agreement which is mutually acceptable. City hereby
declares that It will not unreasonably withhold approval of a
Develon AgxeeI'lent 'v-hich confOYI11_S to the proposal submitted bv
the developer. .-
City and Developer agree that if Agreement is concluded the Deposit
shall be retained by City and that twelve (12) months from date of
final execution of Agreement Developer shall commence minimum annual
rental payments.
This Proposal shall terminate without notice at the expiration of
the ninety (90) day period, unless extended in writing by mutual
Agreement of the parties hereto.
Deyeloper understands and agrees that City will not be liable for
any real estate or brokerage fees which may arise in relation to
the development parcel.
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The award of thls Development ProJect wl11 be made to the high-
est and/or best bldder at the Clty'S dlscretlon. The Clty of
Santa Monlca reserves the rlght to reJect any and all bids, to ne-
gotlate for better terms or rent and to waive all mlnor irregular-
lt~es.
Please contact Davld Shlrey, Clty Property Servlces Manager,
(213) 397-0980, to resolve guestlons or obtaln further lnforrna-
tlon concern~ng the Development ProJect.
Slncerely,
Charles Kent McClaln
Clty Manager
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Enclosure
CITY 0'
SANTA
CALIFORNIA
e
MONICA
D EVE LOP MEN T PAC K AGE
AIRPORT LAND DEVELOPMENT PROJECT
MARCH 19, 1981
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Alrport Land Development Project
Attachment No.1.
Attachment No.2.
Attachment No.3.
Attachment No.4.
Attachment No.5.
Attachment No.6.
Attachment No.7.
Table of Contents
Develop GUldellnes
Marketlng Procedure
Proposal To Lease And Develop Airport
Land PrOJect
Outllne For Statement of Developers Quali-
flcatlons, Flnancial Responslbility and
Proposed Development
Bid Bond
General Vlclnlty Map
Parcel Development Map
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ATTACHMENT NO. 1
AIRPORT LAND DEVELOPMENT PROJECT
DEVELOPMENT GUIDELINES
These gu~del~nes should be f~ven full cons~derat~on by prospect~ve
developers. The area proposed for development is M 2 D~str~ct, pro-
posed for change to M2-S S~te Rev~ew D~str~ct. The guidel~nes are:
l.
2.
Lease Term
Land Use
a. Land uses shall
Recreat~onal.
Lease Term ~s f~fty flve (55) years.
be primarlly Office, Industrlal and
(1) Industrial uses shall be l~mlted to non-
pollutlng types of uses.
b. Commerclal uses shall be llm~ted to facilltles In-
cldental to and supportive of the lndustrlal de-
velopment and nelghborhood resldentlal areas.
c. Recreatlonal uses shall be conslstent Wlth neighbor-
hood and eomprehenslve Comrnunlty needs and plans.
3. Env~ornmental Conslderatlons
a. Recreational and open areas shall be situated so as
to provlde buffer areas between resident~al areas
and ~ndustr~al development.
b. Parking and storage areas shall be screened so as
not to be vlslble from resldent~al and recreatlonal
areas In add~t~on to exist~ng publ~c r~ghts-of-way.
c. Commerc~al and lndustrLal structures shall not ex-
ceed 30% of land coverage nor 45' In helght. Ad-
ditional helght llmLtat~ons are imposed by the
Federal AVlat~on Adm~nLstratLon In areas adJacent
to Alrport runways.
d. All roof structures shall be appropriately screened.
e. All structures, slgnlng, parking areas and land-
scaplng shall be subject to architectural review
and approval.
f. Setbacks from publlc streets or any publlc property
shall be not less than 35'.
g. Development plans shall conslder the impact of nOlse,
llghtlng, trafflc and general aesthetlcs of varlOUS
slte alternatlves.
h. Development plans shall conslder publlc transpor-
tatlon, energy conservatlon, and performance stan-
dards for lndustrlal uses.
ATTACHi\lliNT NO.
1 'ont~nUed)
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4. Market Survey
a. The developer ~s requlred to perform an analys~s of
demand and unmet demand and the~r effect on proposed
eXlstlng fac~llt~es. Santa Mon~ca M2 D~str~ct regu-
lat~ons were recently amended to preclude medlcal,
dental and arcade uses.
5. S~te Development Plan
One black 'and wh~te' ~llustration (schemat~c drawing) of
the site development plan ~s regulred. The plan should
~nclude the followlng ~tems:
a. General land coverage by uses expected for the devel-
opment.
b. Representat~ve bUlld~ng bulks and the~r locations for
each s~te.
c. Open space and publ~c areas and their interrelation-
ship.
d. Overall approach to slte landscap~ng.
e. Overall approach to Parklng.
f. Ind~cat~ons of ex~stlng topography, f~nlsh grades,
dra~nage and ut~lity connections.
No other render~ngsr elevat~ons, plans or other graph~c mater~als are
requIred at th~s t~me.
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ATTACHMENT NO.2 (Continued)
The City's award to a Developer will be based primarily upon:
1. Financial capability and experience
2. Quality of development concept
3. Timing of construction
4. Annual rental, as bid
Form of Proposal
An outline of the data required is included as Attachment No.3.
Information must be included regarding the proposed developer's
financial and administrative capacities, past performance record,
and membership of the proposed development team.
An outline of the proposed development is required in sufficient
physical and economic detail to assure that the prospective
developer proposes to meet the City's general objectives.
Development Objectives
The City has included development guidelines in the package as
Attachment No.1. These guidelines should be given full consid-
eration by prospective developers, but they are not intended to
preclude different, innovative approaches to development of the
site.
While creative and practical design is one of the foremost
considerations desired, the City does not want expensive draw-
ings and architectural models from prospective developers.
Neither are extensive renderings or building elevations required
with the proposal.
Rather to capitalize on the flexibility of the site the selected
developer should expect to work closely with the City staff,
Commissions and consultants during the preparation of the neces-
ary schematic plans and drawings prior to the execution of a
final Lease and Devopment Agreement.
Lease and Development Agreement
Following receipt of proposals, the City, its staff and appropriate
consultants will review the proposals and report their findings and
recommendations to the City Council of the City of Santa Monica.
The City Council will select the proposal of one developer for
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ATTACHMENT NO. 2 (contlnued)
lease and development of the Alrport Land ProJect. The
selected developer wlll be requlred at that tlme to make a
Deposlt, equal to 50% of the annual rental, as bid.
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ATTACHMENT NO. 3 (Continued)
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proposal submitted
this date
Developer
by
Address
Phone
This Proposal is hereby accepted as of the day of
, 1981, on terms and conditions stated hereinabove.
City of Santa Monica
By
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ATTACHMENT NO. 4
OUTLINE FOR STATEMENT OF DEVELOPER'S QUALIFICATIONS,
FINANCIAL RESPONSIBILITY AND PROPOSED DEVELOPMENT
1. Developer's Name and Address:
2. Nature of Developer's Business Organization (Corporation,
Partnership, Joint Venture, etc.):
3. Principals of the Developer (set forth Corporate Officers,
Principal Stockholders, genera1 or limited Partners, etc.) and
names of proposed Architect and project manager, if available:
4. Describe the relationship of Developer with other entities
(parent corporations, subsidiaries, joint ventures, etc.):
5. Describe anticipated sources of financing. Attach a copy (or
copies if relevant) of current certified financial statements
of current certified financial statements of the proposed
Developer or its principals to indicate financial capability:
6. Name and Address of Bank and other business references:
7. List and describe relevant development experience completed
or underway by the proposed development entity or by its
principals during at least the last three (3) years:
8. Describe briefly in narrative form the general concept of the
development proposed, to communicate what the Developer proposes
to create in the way of the general aesthetic and economic
environmen~ (including estimated rental schedules, major tenants
and proposed industrial/commercial/recreational mix.)
9. Outline in general the proposed timing of the physical develop-
ment, plus the approximate economic character and financial
magnitude of the development (including the total estimated
development cost exclusive of land):
NOTE: In describing the proposal, the Developer should use what-
ever format he desires. City recognizes that full details will
evolve after selection of the Developer and during the ninety (90)
day negotiation phase. Accordingly, reliance must be placed
principally upon written narrative or upon general numerical esti-
mates and not upon graphics, which can be limited to a single black
and white drawing of an illustrative plan concept of site development.
This illustration should convey for each phase an idea of the gener-
al land coverage expected, representative building heights antici-
pated and the overall approach to traffic circulation and parking.
No renderings or elevations or other graphic materials are required
at this time by the City.
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ATTACHMENT NO. 5
BID BOND
(25,000.00)
(Not required if Certified Check or Cashier's Check accompanies the Bid)
KNOW ALL !-1E1~ BY THESE PRESE.NTS: That we,
, as Principal , and
, as Surety, are held
and firmly bound unto the City of Santa Monica, State of California, in the
sum of Tw'enty-f'ive Thousand Dollars (25,000.00) for the payments vhereof lie
hereby bind ourselves, our successors, heirs, executors, and administrators,
jointly and severally, firmly by these presents.
The condi tiOD of the foregoing obligation is such that, whereas the above
bounden Principal is about to submit to the City Council of the City of
Santa !-bnica a Bid or Proposal for the performance of the Project therein
mentioned, in compliance vith the plans a..lJ.d guidelines therefor, pursuant
to published notice inviting Bids;
Nov, if the Bid or Proposal of the Principal is accepted and the Project
awarded to the Principal by said City Council, and if the Principal shall
fail or neglect to enter into a contract therefor in accordance with the
provisions of said Bid or Proposal and the accompanying Instructions to
Bidders and to execute to the satisfaction of said City; then the sum
guaranteed by this Bond is forfeited to the City of Santa Monica.
It is expressly agreed and understood that any errors, clerical, mathe-
matical, or otherwise, in the Bid or Proposal shal1 not be or constitute
a defense to a forfeiture under this Bond.
WITNESS our hands and seals this
day of
A.D., 19
(SEAL)
Principal.
PROJECT TITLE:
Santa Monica Airport
Lease and Development
Agreement
By
Title
(SEAL)
Surety
By
Title
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AT'f:ACill-1EN1' NO. 6
GE:NEHAL VICINITY MAP
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ATTACHMENT NO. 2
LEASE k~D DEVELOPMENT PROCEDURE
The C1ty of Santa Mon1ca proposes to lease land for development
as outl1ned 1n the Development GUldellnes. The land will be
leased to a developer who possesses h1gh qual1f1cat1ons, the
necessary f1nanClal resources and prevlous performance record
of maJor development accompl1shments.
Developers are lnvlted to enter lnto dlSCUSSlons with the Clty
lead1ng to submlsslon of a proposal to the Clty, lncludlng and
spec1fylng the followlng:
Lease Term:
Flfty-flve (55) years.
Annual Rent:
M1nlmum acceptable @ $2,000,000.00; subJect
to perlod1c CPI adJustments and/or C1ty par-
t1clpatlon ln gross revenues generated by the
Development project.
B1d Bond:
$25,000.00 (Cert1fled or Cashiers check may be
subm1tted in lleu of Bld Bond)
Deposl t:
50% of annual rental as bld
(required of successful bldder, at t1me of
selectlon by Clty Councll)
Rent Due:
M1n1mum annual rental, as bld, to be pald to
City ln equal monthly lnstallments, 12 months
after final executlon of Lease Agreement and
Development Plan.
All proposals must be ln wr1ting and ln a form substantlally the
same as the form of Proposal to Lease and Develop A1rport Land
ProJect, included 1n the development package as Attachment No.3.
The proposal must be accompan1ed by a statement of the developer's
quallf1catlons, f1nanclal statement and proposed development
plan. Proposals must be recelved by 3:00 p.m., June 30, 1981, at
the Offlce of the Clty Manager, Clty Hall, 1685 Main Street, Santa
Monlca, CA 90401. The Clty reserves the rlght to reJect any and
all proposlas, to negotlate for better terms or rent and to walve
mlnor lrregularltles.
D~y'eloper Selectlon
The Clty intends to award excluslve lease and development rlghts
to quallfled persons or entitles. If awarded the excluslve rlght
to lease and develop, the developer must, for a perlod of 90 days
seek 1n good falth to conclude a Lease and Development Agreement
Wlth the Clty for the subJect land. If no agreeMent is reac~ed
within 90 days, Develouers 50% denosit notea under "Denosit" above
shall be forfeited to the Citv as liGuidated damages.
DATE
TO
FROM
SUBJECT
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CITY OF SANTA MONICA
INTER-DEPARTMENT MEMO
March 24, 1981
Mayor and City Council
"j ,.oto' (: ftk( CQ<--
Charles Kent McClain, Acting Airport
Proposed Development AdJacent to Airport
The Alrport Commission at its regular meeting held Monday,
March 23, 1981, unanimously voted to recommend the City
Council not act on the Request for Proposals for 45 days,
so the Airport Commission can formulate recommendations
regarding the development of the Airport land comprising
a total of 215 acres more or less. To further the above
action, the Commission voted to hear the matter at the
next regular meeting April 27, 1981, and invite FAA
officials to discuss future development.
CKM/vb
cc: Airport Commission
Airport Supervisor
Property Manager
loe
MAR 2 4 1981
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MAR 2 4 1981