Request for Qualifications Development of PSB Lands in Northeast El Paso, Texas Fermin Acosta, Jr., Chair Richard O. Martinez, P.E., Vice-Chair Ruben E. Guerra, Secretary Maria F. Teran, Member Mayor John Cook, Member Edmund G. Archuleta, P.E., General Manager Nicholas J. Costanzo, Assistant General Manager Issue Date: October 15, 2006 Due Date: December 29, 2006 Northeast El Paso Master Developer RFQ I. THE NORTHEAST MASTER PLAN ........................................................................................................2 OVERVIEW................................................................................................................................................................................2 II. NORTHEAST EL PASO: A UNIQUE ECONOMIC GROWTH OPPORTUNITY .....................................5 A GROWING MARKET: GREATER EL PASO ...............................................................................................................................5 THE FORT BLISS EXPANSION ....................................................................................................................................................6 HIGH TECHNOLOGY/HIGHER EDUCATION ...................................................................................................................................9 THE BORDER ECONOMY .........................................................................................................................................................10 OUTPACING REGIONAL GROWTH ............................................................................................................................................11 LOCATIONAL ADVANTAGES ....................................................................................................................................................13 REGIONAL TRANSPORTATION CENTER ....................................................................................................................................13 III. NORTHEAST EL PASO: A UNIQUE LIFESTYLE OPPORTUNITY .......................................................14 LOW COST OF LIVING .............................................................................................................................................................14 RETIREE MARKET ...................................................................................................................................................................14 COMFORTABLE CLIMATE ........................................................................................................................................................16 HEALTH CARE ........................................................................................................................................................................16 HIGHER EDUCATION ...............................................................................................................................................................16 SPORTS VENUES ....................................................................................................................................................................18 ATTRACTIONS AND CULTURAL SITES ......................................................................................................................................18 MUSEUMS AND GALLERIES .....................................................................................................................................................19 IV. NORTHEAST EL PASO: A UNIQUE DEVELOPMENT OPPORTUNITY .............................................21 UNIQUE SITE CHARACTERISTICS .............................................................................................................................................21 MARKET OPPORTUNITIES FOR THE SITE ..................................................................................................................................21 FOR-SALE RESIDENTIAL DEVELOPMENT OPPORTUNITIES ........................................................................................................22 RENTAL RESIDENTIAL OPPORTUNITIES ...................................................................................................................................25 RETAIL/COMMERCIAL OPPORTUNITIES ....................................................................................................................................25 PUBLIC FUNDING OPPORTUNITIES ...........................................................................................................................................26 V. MASTER DEVELOPMENT VISION AND REQUIREMENTS ...........................................................................27 MASTER PLAN CHARACTERISTICS ..........................................................................................................................................27 PARCELIZATION ......................................................................................................................................................................28 PARK, OPEN SPACE AND TRAIL FEATURES .............................................................................................................................31 ROADWAY FEATURES .............................................................................................................................................................32 DRAINAGE FEATURES .............................................................................................................................................................32 WATER AND WASTEWATER FEATURES....................................................................................................................................33 PARTICIPATION BY EL PASO AREA FIRMS AND SUPPLIERS ......................................................................................................33 DEVELOPMENT COVENANTS ...................................................................................................................................................33 VI. RFQ EVALUATION PROCESS AND SCHEDULE .........................................................................................36 PRE-SUBMITTAL CONFERENCE AND SITE TOUR .......................................................................................................................36 SUBMITTAL SCHEDULE ...........................................................................................................................................................36 RFQ RESPONSE EVALUATION PROCESS .................................................................................................................................37 RFQ EVALUATION CRITERIA ...................................................................................................................................................39 VII. GENERAL TERMS AND CONDITIONS ................................................................................................43 Page 1 Northeast El Paso Master Developer RFQ I. THE NORTHEAST MASTER PLAN Overview The El Paso Water Utilities Public Service Board (“the PSB” or “the Board”) is seeking a Master Developer (“master developer” or “developer”) for development of approximately 3,300 acres of PSB land in northeast El Paso, Texas. This Request for Qualifications (RFQ) process is being utilized to qualify a shortlist of master developers to bid for the purchase and subsequent development of this land. The PSB owns over 15,000 acres in northeast El Paso. It is the PSB’s intent to sell approximately 3,300 acres of this land to accommodate the development of a master planned community, phased over a 10-year timeframe. The project site (“site”) is located within the municipal boundaries of El Paso, east of the Franklin Mountain Range and north of the US-54 Patriot Freeway. Project Area Fort Bliss Downtown The PSB seeks a master developer with El Paso demonstrated success in development of large, complex master planned communities. The developer can be a single firm, a consortium of several firms, or a development team assembled for this unique project. The developer and/or development team should include participants with relevant experience for sites of this size, who are capable of planning, designing, financing and developing this site into a dynamic master planned community. At this time, the PSB seeks statements of qualifications. The prospective developer must demonstrate financial solvency and ability to construct a high-quality design based upon the City- and PSB-adopted Northeast Master Plan. Prospective developers will be short-listed to participate in the subsequent bidding process based on their responses to the requirement and qualification criteria in three categories: Organizational Strength and Capacity Requirements/Qualifications Financial Requirements/Qualifications Planning and Vision Requirements/Qualifications The RFQ Evaluation Process and Schedule of this document provides further explanation of required responses. The PSB is prepared to offer, for bid, a qualified master developer the following: Large Footprint A ±3,300 acre site located east of the Franklin Mountain range and north of US 54 in Northeast El Paso. Site amenities include Painted Dunes Golf Course, an award Page 2 Northeast El Paso Master Developer RFQ winning course owned by the PSB, regional access via the US-54 Patriot Freeway, and adjacency to Franklin Mountains State Park and Fort Bliss. Unified Land Ownership The entire site is owned by the PSB; therefore, the selected developer will work with a single entity. The PSB has a vision to bring the site to the forefront of the El Paso community and the desire to partner with a developer to implement this vision. Infrastructure Improvements The PSB is planning to invest approximately $20 million in infrastructure. The PSB intends to provide water/wastewater improvements over 12 inch diameter pipes and improvements to McCombs Street in order to significantly offset initial development costs for the developer. Painted Dunes Golf Course This championship desert-style 27-hole golf course has been given 4.5 stars and ranked the second-best municipal golf course in the nation by Golf Digest. It may be available for purchase to the successful bidder as an already operational amenity to anchor the development site. Flexible Terms The PSB is prepared to be flexible on the terms of agreement with the successful bidder. The PSB expects the successful bidder to agree to a preliminary takedown schedule, such as the one outlined in Section 6, Master Development Vision and Requirements. A Defined Vision In 2005, the PSB prepared a master land use plan for their land in Northeast El Paso. The process was based upon high levels of input from citizen groups and the City, and was facilitated by engineering consulting firm Kimley-Horn. The City has adopted the Northeast Master Plan as part of its Comprehensive Plan. The PSB contracted with URS Corporation and Goodkin Consulting to develop an Implementation Strategy for the Northeast Master Plan. URS and Goodkin Consulting prepared a comprehensive real estate market assessment to identify residential and commercial growth and absorption rates for Northeast El Paso. This assessment incorporates the US Army’s official troop growth projections for Fort Bliss, which were not available at the time the land use plan was prepared earlier in 2005. The base is going through the largest increase of troops and expansion of facilities of any base in the U.S. through the Base Realignment and Closure (BRAC) process. Findings of the market assessment were used to develop the land parcelization and phasing recommendations in this RFQ. Commitment by the City of El Paso The City of El Paso is committed to the successful realization of the Master Plan. The City has been proactively engaged in a public process to build consensus vision for future development in El Paso based upon “Smart Growth” principles. The City has adopted the Northeast Master Plan as a part of its Comprehensive Plan and revised its zoning ordinance to accommodate the Master Plan development on this site. The City will work with the successful bidder to minimize regulatory delays. Page 3 Northeast El Paso Master Developer RFQ A Sound Partner The Public Service Board was established May 22, 1952, by City Ordinance to completely manage and operate the water and wastewater system for the City of El Paso. The five-member board of trustees, which makes up the Public Service Board, consists of the Mayor of the City of El Paso and four residents of El Paso County, Texas, who are appointed by the City Council for four-year staggered terms. Page 4 Northeast El Paso Master Developer RFQ II. NORTHEAST EL PASO: A UNIQUE ECONOMIC GROWTH OPPORTUNITY The project site offers a tremendous master development opportunity to the successful bidding team. El Paso is a thriving city that plays a key role in world trade, manufacturing and distribution. It is a regional center for health care, higher education and cultural arts. El Paso is located at the crossroads of the U.S. and Mexico, with roots that go back 400 years to Native Americans, Spanish conquistadores, Mexican immigrants, and American pioneers. This unique blend of cultures and customs make for an international city, though El Paso has the intimate character of an American small town. El Paso is ranked as the second safest city in the U.S., and it is home to a vibrant cultural scene. The City is poised to experience unprecedented population growth over the next 10 years due primarily to operational changes associated with Fort Bliss, but also due to growth in the higher education/high technology sector and expansion of crossborder trade. There is strong community interest in maintaining and improving the City’s overall quality-of-life, and support for sustainable economic growth. A Growing Market: Greater El Paso The City of El Paso has an estimated population of 594,716 people (2005). Greater El Paso, defined as El Paso County, Texas, and Doña Ana County, New Mexico, has an estimated population of 927,047. While the community had been expected to grow naturally and to continue to attract people from across the country to its warm climate and relatively low cost of living, population projections increased exponentially in 2005 when the Base Realignment and Closure (BRAC) Commission announced that Fort Bliss would be realigned to receive more military personnel than any other base in the nation. The graph below illustrates El Paso’s future growth through 2010. 2005 - 2010 Population Growth Forecast Greater El Paso Market (El Paso & Las Cruces MSAs) 1,080,000 1,060,000 1,040,000 1,020,000 Baseline Population Forecast 1,000,000 Population with Ft. Bliss Expansion 980,000 960,000 940,000 920,000 900,000 880,000 2005 2006 2007 2008 2009 2010 Page 5 Northeast El Paso Master Developer RFQ Accounting for the direct, indirect and induced growth due to the expansion of Fort Bliss, as well as historic levels of growth, the market’s projected population is expected to grow to over 1.05 million by 2011. This projection translates to over 25,000 people being added to El Paso and Doña Ana Counties annually on average over the next five years. By all accounts, El Paso’s housing market is strong, and projected to be stronger. The Real Estate Center at Texas A&M University recently published a report entitled “El Paso Gears Up for the Future.” This report states that lot supply is the lowest of any time in recent history; the average days-on-market citywide for new residential construction is no more than ten days, and many homes are sold before completion. Ciudad Juárez is the largest city in the State of Chihuahua and the 5th largest city in Mexico, with a population of almost 2 million people. Growth is still fueled by the maquiladora program and the general belief by Mexicans that economic opportunities are better in the north. It is one of the largest manufacturing centers in North America, as well as a major government presence. Its economy is highly integrated with the U.S. and is gradually diversifying into the service sector knowledge-based, high-technology industries such as software and electronics. With nearly twice as many people in Ciudad Juárez located immediately across the Rio Grande, the Ciudad Juárez -El Paso boderplex of more than two million inhabitants is one of the largest multinational regions in North America and the urban center of the mid-border region. The Fort Bliss Expansion The following table summarizes the huge housing demand over a five-year timeframe, based on the expansion of Fort Bliss. The demand projections take into account direct Page 6 Northeast El Paso Master Developer RFQ and indirect growth and annual housing demand to fully illustrate the need for for-sale and rental housing in the El Paso region. The net inflow of 21,230 military personnel will be accompanied by 1,140 direct civilian employees. The military estimates that of the military personnel, 53% of them are married and have on average 2.1 dependents. Based on those estimates, the net new 21,230 military personnel will be accompanied by 23,629 family members (20,125 net military and 33,065 families). If the timeline holds true and we estimate that one sixth of the personnel arrive every year from 2006 through 2011, and all civilian employees are transitioned prior to 2010, the net increase of population to the area from 2005 to 2010 will be about 44,600 people. Housing Demand Opportunity, 2006-2010 Housing Demand - Opportunity 2006 2007 2008 2009 2010 5 Year Total Military Demand: DirectGrowth Troops (net new) Housing needed off base Civilian Base Employees (net new) Housing needed off base Housing Needed - Direct Growth - Gross Housing Needed - Direct Growth - For Sale 3,690 2,210 229 229 2,439 1,537 1,622 970 229 229 1,199 756 6,265 3,760 229 229 3,989 2,513 4,144 2,490 229 229 2,719 1,713 4,404 2,640 229 229 2,869 1,808 20,125 12,070 1,147 1,147 13,217 8,327 Military Demand: Indirect and Induced Growth Jobs (net new) New Residents to El Paso Housing Needed - Indirect and Induced Growth - Gross Housing Needed - Indirect and Induced Growth - For Sale 7,621 5,030 4,192 2,641 3,350 2,211 1,843 1,161 12,940 8,540 7,117 4,484 8,559 5,649 4,707 2,966 9,096 6,003 5,003 3,152 41,566 27,434 22,861 14,403 Military Demand: For-Sale Housing Units Needed 4,178 1,916 6,997 4,679 4,959 22,729 Historic Annual Housing Absorption 4,000 4,000 4,000 4,000 4,000 20,000 Estimated Total For-Sale Housing Demand 8,178 5,916 10,997 8,679 8,959 42,729 Military Demand: Total Rental Housing Units Needed 2,454 1,126 4,109 2,748 2,913 13,349 In addition to new personnel, the Department of Defense has approved over $500 million in new capital expenditures at Fort Bliss. The total expected capital investment is anticipated to grow to $3-5 billion in the coming decades. This is in addition to ongoing investment in maintenance and expansion. Because of the addition of military personnel and direct civilian employees, and significant new capital investment, a large number of indirect and induced employment in the Greater El Paso community will occur. Preliminary estimates by local and national economic development agencies estimate that approximately two jobs for every one on the base will be added to the market. The result could be the addition of 41,600 new jobs to the market. Assuming that the El Paso market will not be able to naturally fill these positions and some of the jobs will be imported, an importation of half the employees will draw an additional 20,800 people to the market during the next five years. Troop growth at Fort Bliss will include development of Future Combat Systems (FCS), a high-technology effort that will change the way soldiers fight in the future. Fort Bliss is Page 7 Northeast El Paso Master Developer RFQ the first base to develop and test this program. Program managers Boeing and SAIC expect to have 300 technical, highly-skilled professionals in place by 2008; it is possible that the number of highly-skilled employees from these and other high-tech contract firms could range between 2,000 and 2,500 by 2011 as the FCS program continues through development and evaluation. The net new military and civilian employees arriving at Fort Bliss between 2005 and 2010 will reside both on base and off base. An estimated 60% of the military personnel would require off base housing. This demand, coupled with the assumption that, like the El Paso market in general, 63% of the homes would be owned, results in 1,700 units annually, or 8,500 new housing units in the El Paso region will be demanded over a five year period. Additionally, new residents to the El Paso region who will fill the jobs induced by the base expansion will require 2,300 housing units annually. This annual housing demand has been segmented into three categories of housing products for households under the age of 65: Luxury Housing, Market Standard Housing, and EntryLevel Housing. According to a 2004 regional economic impact study by the University of Texas at El Paso’s Institute for Policy and Economic Development (UTEP-IPED), a key force in the El Paso regional economy is the presence of the US Military at Fort Bliss in El Paso, Holloman Air Force Base (HAFB) and the White Sands Missile Range (WSMR) in New Mexico. IPED found that 23% of total retail and wholesale sales in the region is due to military presence, or almost $1 of every $4 spent for business purposes. The military presence generates multiplier income effects of $2.594 billion in the regional economy that will bring $1of every $8 in personal income. The graphs below illustrate the strong need for for-sale housing in the El Paso region, based on historical demand and Fort Bliss’ expansion. Rental housing opportunities are highlighted in a subsequent section of this RFQ. El Paso Housing Demand projected need of for-sale housing 45,000 40,000 Projected Fort Bliss Demand 35,000 For-sale units 30,000 Historic Annual Absorption 25,000 20,000 Cumulative Demand (2006-10) 15,000 10,000 5,000 0 2006 2007 2008 2009 2010 Year Page 8 Northeast El Paso Master Developer RFQ Estimated Market Demand for New Housing by Type 12000 10000 Units 8000 6000 4000 2000 Historic Annual Housing 5 Ye ar 4 Ye ar 3 Ye ar 2 ar Ye Ye ar 1 0 Military Demand High Technology/Higher Education To complement defense-related employment growth in El Paso, local economic development and business organizations are interested in developing other sectors of the economy to bring high-skill (and high-paying) jobs to the region. Initiatives include expansion of the medical research and development sector. The border location of research programs in El Paso provides opportunities for companies to partner in research and development of medical devices, test protocols and cures for Hispanic and border health challenges. Over the past several years, El Paso’s health care community has been expanding. The community is committed to developing El Paso into the “Medical Center for the Americas,” a center of research and service excellence for the Paso del Norte binational, bi-state region (defined in next section). Thomason Hospital completed an expansion of its facility that included $20.5 million in capital expenditures and $7 million in new equipment. El Paso is home to a campus of the Texas Tech University School of Medicine, which serves as a full-time teaching facility for third- and fourth-year medical students. It employs more than 1,000 faculty and staff. Texas Tech completed a $14-million remodeling of facilities in El Paso, and will complete a new $45 million research facility next year. It is an active research center, a busy metropolitan care facility, and a hub for border healthcare. In 2003, Texas Tech El Paso had 22,000 admissions, 62,000 emergency room visits, and a total of 233,000 clinic visits in 11 specialty areas. The University is in the process of expanding its medical programs to include a full four-year medical program, which will expand educational, research, and service opportunities in the region. Page 9 Northeast El Paso Master Developer RFQ Additionally, the University of Texas at El Paso and New Mexico State University in Las Cruces graduate more than 1,000 scientists and engineers with specialized technical skills annually. The Border Economy The El Paso regional economy, sometimes called Paso del Norte, includes the booming economy of Ciudad Juárez, Mexico. The economic fortunes of two cities are intertwined, so it is important to understand the cross-border dynamics of the region. The North American Free Trade Agreement (NAFTA) went into effect in 1994 and encouraged the development of the maquiladora manufacturing and distribution model along US and Mexican border cities. Oftentimes, complementary facilities were created on both sides of the border to facilitate manufacturing (typically, on the Mexican side) and distribution (typically, on the US side). This “twins” model maintained some employment in the US border cities despite job losses in other parts of the US as manufacturing facilities moved to Mexico. UTEP’s short-term economic indicators for the Ciudad Juárez metropolitan area, analyzed between 1997 and 2007, are summarized below: Projected 2007 economic value added of $3.8 billion, an increase of 96% over the 1997 value added. Projection of 300 maquiladora plants in Juárez as of 2007, employing 235,000 workers at an average hourly wage of $3.89. Daily Border Crossings Long-term economic indicators for Juárez, analyzed between 1984 and 2024, are summarized below: 2200% growth in economic value added between 1984 and 2024. The projection for 2024 is $10.2 billion. Projection of 326 maquiladora plants in Juárez by 2024, employing 353,000 workers at an average hourly wage of $7.10. This is estimated employment growth of over 280,000 jobs since 1984, when there were only 155 maquiladora plants. North-bound border crossings by freight-hauling trucks are projected to reach 1.2 billion crossings in 2024, up from an estimate of 726 million in 2005 and 597 million in 1984. Ciudad Juárez’ target industries include computers, appliances, automotive parts, and logistics. Major companies expanding in Ciudad Juárez or elsewhere in the State of Chihuahua in 2005 included Electrolux, Lexmark, Asus, Automotive Lighting, and Foxconn. Electrolux just announced a major new expansion. With El Paso situated in a border economy, a component of the retail consumer market is the cross-border shopper from Ciudad Juárez. The International Council of Shopping Centers (ICSC) found that in the border regions, lower per-capita incomes in the US border cities relative to the US national average are accompanied, surprisingly, by Page 10 Northeast El Paso Master Developer RFQ higher-than-expected per-capita retail sales, indicating an inflow of retail dollars from outside the city. UTEP has recorded historic and projected retail sales by category for their Border Region Modeling Project. As was noted in the ICSC report, actual retail expenditures reported for historical periods are higher than the expected expenditures forecast by the Bureau of Labor Statistics in their 2004 Consumer Expenditures Survey for the South region, and particularly for the $30,000-$39,000 household income category for the South region, the range that reflects El Paso’s median household income. This variance in actual vs. expected expenditures could be a result of shoppers coming from Ciudad Juárez and from adjacent areas of New Mexico and Texas to shop, or higher-thantypical levels of disposable income expenditure by resident military personnel. Outpacing Regional Growth The July 2006 edition of “Big Builder” Magazine featured an article on the “hot” Texas real estate market. El Paso was featured on the top 100 cities for housing in the U.S. and median prices for 2006 from Global Insight. Housing starts for 2006 are estimated at 4,512 with a median home value of $89,185. Several other Texas cities are on the list, including Houston, Dallas/Ft. Worth/Arlington, McAllen/Edinburg/Mission, and Austin/Round Rock. District 11 (which includes Northern Louisiana, Southern New Mexico, and Texas) was cited as “the national housing market’s proverbial silver lining”, as home demand remains strong, especially for homes with prices exceeding $200,000 (Housing Market Report, August 2, 2006). Drivers of Texas’ strong housing market include the oil industry, affordability, job growth, domestic and international in-migration (especially thousands of former Louisiana residents relocated as a result of the hurricanes), and the expansion of military bases, such as Fort Bliss, following the BRAC Commission’s recommendations. With the planned expansion of Fort Bliss, El Paso is now projected to outpace the growth of other major Texas metro areas such as Dallas, Houston and San Antonio. Page 11 Northeast El Paso Master Developer RFQ Taken together, the expansion of Fort Bliss, the growing medical/high technology sector, and the cross-border economy, helps place the El Paso region on par with other expanding southwestern market areas such as Albuquerque (population projected at 826,138 by 2010) and Tucson (1,010,334). The tables below illustrate El Paso’s growth rate as compared to other southwestern markets. With the exception of the Phoenix area, El Paso’s projected growth rate outpaces all of the comparable markets. 2005 - 2010 Population Growth Forecast Greater El Paso Market (El Paso and Las Cruces MSAs) Baseline Population Forecast 2005 2006 927,047 942,424 8,949 13,011 28,045 38,067 48,703 927,047 951,373 970,811 1,001,222 1,026,620 1,052,633 Impact of Fort Bliss Expansion Population with Fort Bliss Expansion 2007 957,800 2008 2009 973,177 988,553 2010 1,003,930 Source: Texas State Data Center (UTSA), Claritas & URS Corp. Average Annual Population Growth 2005 - 2010 Phoenix MSA +101,535 2.58% Greater El Paso (w/ Fort Bliss Expansion) +25,118 2.57% Austin MSA +31,547 2.15% +105,772 1.80% Tucson MSA +17,174 1.79% Greater El Paso (baseline) +15,377 1.61% Houston MSA +85,428 1.61% Albuquerque MSA +12,024 1.52% San Antonio MSA +23,540 1.25% Dallas-Ft. Worth MSA Source: Texas State Data Center, Claritas & URS Corp. 2000 - 2010 Population Forecasts Dallas-Ft. Worth MSA 2000 5,161,544 2005 5,668,679 2010 6,197,537 Houston MSA 4,715,407 5,121,573 5,548,714 San Antonio MSA 1,711,703 1,830,229 1,947,929 Austin MSA El Paso MSA (w/ Fort Bliss expansion) 1,249,763 1,407,732 1,565,466 679,622 740,525 852,673 El Paso MSA 679,622 740,525 803,967 McAllen-Edinburg MSA 569,463 656,899 749,868 Corpus Christi MSA 403,280 430,784 459,482 Brownsville MSA 335,227 374,529 415,569 Beaumont-Port Arthur MSA 385,090 395,275 405,539 Lubbock MSA 249,700 263,147 273,268 Laredo MSA 193,117 226,847 262,823 Amarillo MSA 226,522 240,416 254,636 Source: Texas State Data Center & UTSA Page 12 Northeast El Paso Master Developer RFQ Locational Advantages Located in the northeast section of El Paso, the subject site is in close proximity to both Downtown El Paso and the U.S. Army installation at Fort Bliss. This location includes the following advantages: Proximity to Fort Bliss and access via U.S. 54 to Holloman Air Force Base and White Sands Missile Range; Access to expressway routes into downtown El Paso and to Ciudad Juárez (U.S. 54); and Access to the proposed Northeast Parkway bypass, a 21-mile, limited access highway connecting Loop 375 near Railroad Drive to Route 54 in Northeast El Paso and to Interstate 10 in Anthony, NM. Regional highways include: U.S. 54 North to Ruidoso, NM (135 miles) U.S. 62/180: NE to Carlsbad Caverns, NM (140 miles) Interstate 10: From Los Angeles, CA to Jacksonville, FL goes through El Paso Interstate 25: North from Las Cruces, NM (40 miles) Regional Transportation Center El Paso International Airport has the border region’s largest and newest passenger terminal and is emerging as the border’s most centralized intermodal hub, according to the El Paso Convention and Visitor’s Bureau. There are nonstop flights to several national and international destinations, including Albuquerque, Atlanta, Austin, Chicago, Dallas, Ft. Worth, Houston, Las Vegas, Los Angeles, Lubbock, Midland/Odessa, Minneapolis, Phoenix, Salt Lake City, San Antonio, San Diego, Chihuahua, and Mexico City. Nine commercial airlines service El Paso, with an average of 136 flights arriving and departing daily, including: Southwest, American, Delta, Continental, Northwest, America West, United Express, and Frontier Airlines. The airport is located near the project site, three miles north of Interstate 10, and five miles northeast of Downtown El Paso. In addition to air transportation, El Paso is served by different modes of ground transportation. These include Greyhound and Trailways bus service, and Amtrak rail service. Page 13 Northeast El Paso Master Developer RFQ III. NORTHEAST EL PASO: A UNIQUE LIFESTYLE OPPORTUNITY Low Cost of Living Compared to other cities in the southwestern U.S., El Paso has a relatively low cost of living. El Paso has no city, state, or county income tax. The sales tax rate is 8.25%. The cost of living in comparable communities in relation to El Paso is provided below. Phoenix, AZ +7.5% Tucson, AZ +5.2% Albuquerque, NM +6.6% Source: New York Times Salary Calculator and URS Corporation, August 2006. Retiree Market El Paso is an ideal location for retirees for several reasons. In addition to the low cost of living and lack of income taxes, El Paso offers a choice of quality home products at attractive price points. The housing market in the region has strong potential for growth in senior/retirement housing due to relatively lower prices. The chart below illustrates that El Paso is not in an overheated market, such as several nearby Arizona/New Mexico metropolitan areas. Compared with other Texas metro areas, El Paso is the most affordable housing market, and is still an undervalued market among southwestern cities. According to the Urban Land Institute, second-tier cities (as defined by population size) such as El Paso will continue to grow because they offer benefits such as less traffic, strong job growth, and affordable housing. Many other western and southwestern U.S. markets, such as Phoenix and most of California, have become overpriced and overbuilt. The charts below illustrate the great value that El Paso offers as compared to other Texas and regional markets. O v e rv aluation Inde x M ajor S outhwes tern M etro A reas 50.0% 40.0% 30.0% Phoenix Tuc s on 20.0% Santa Fe Las Cruc es A lbuquerque 10.0% San A ntonio El Pas o 0.0% -10.0% -20.0% -30.0% 2002/Q1 2003/Q1 2004/Q1 2005/Q1 2006/Q1 Page 14 Northeast El Paso Master Developer RFQ Metro Area Housing Valuations Santa Fe Phoenix Tucson Albuquerque Austin Dallas Las Cruces Houston San Antonio El Paso 2002/Q1 $185.8 $132.5 $114.0 $124.3 $135.6 $116.0 $79.3 $94.7 $81.2 $70.6 2003/Q1 $201.8 $141.0 $123.0 $130.9 $140.5 $122.0 $84.5 $100.3 $85.6 $76.1 2004/Q1 $224.7 $151.7 $134.2 $139.0 $142.3 $125.6 $91.1 $104.7 $89.7 $80.2 2005/Q1 $246.0 $181.8 $153.4 $148.4 $143.3 $126.9 $100.1 $107.5 $93.1 $82.8 2006/Q1 $267.9 $243.0 $193.2 $170.9 $149.9 $129.0 $112.5 $110.6 $98.8 $94.0 Source: Global Insight/National City, June 2006 Metro Area House Valuations El Paso & Other Regional MSAs $300.0 $250.0 El Paso MSA $200.0 Las Cruces MSA Albuquerque MSA $150.0 Santa Fe MSA Phoenix MSA San Antonio MSA $100.0 Tucson MSA $50.0 $0.0 2002 2003 2004 2005 2006 In a report by the Federal Home Loan Mortgage Company (Freddie Mac) dated August 3, 2006, decreasing mortgage interest rates are cited as an indication that inflation is under control. At the time, current mortgage rates had fallen from 6.80% to 6.72% for a 30-year fixed rate; from 6.25% to 6.35% for a five-year adjustable rate mortgage (ARM), and down -.2% for one-year ARMs from the previous week. These indications point to steady interest rates. Locally, El Paso reports positive news with regard to mortgages. One local mortgage firm, Rocky Mountain Mortgage, notes that the average mortgage amount in 2005 increased by approximately $4,000. Of the 600 homes for which the firm is providing financing, 77 percent are under contract. The firm’s owner believes soldiers are Page 15 Northeast El Paso Master Developer RFQ becoming better educated about the benefits of homeownership and notes that loan applications from military personnel are very active. (“El Paso Gears Up for the Future,” by Harold D. Hunt, Real Estate Center of Mays Business School, Texas A&M University). Comfortable Climate El Paso is known for its warm, sunny weather. The sun shines over 300 days a year. The average daytime temperature in the winter is 60 ºF and the average low is 32.5 ºF. The summers are hot and dry, with an average daytime temperature of 95 ºF (June, July, and August). Summers actually run from May through September. The average daytime temperature is 91.5 ºF. The average yearly rainfall is less than nine inches. Health Care El Paso is a regional health center for the binational / bi-state area of Southwest Texas, New Mexico, and Juarez, Mexico. Healthcare facilities in the City of El Paso include five private hospitals, a public hospital, Thomason General Hospital, and the Army facility, William Beaumont Army Medical Center. Thomason and Beaumont are Level I trauma centers and both serve El Paso County. Thomason General Hospital is the largest public hospital located directly on the U.S./Mexico border El Paso is a Major with 327 beds. In 1996 and 1997, Thomason Regional Healthcare Center Hospital was recognized as one of the nation’s top performing hospitals in a study by Mercer Health Care Consulting of New York and HCIA, Inc. It is staffed by faculty doctors and residents from Texas Tech University. The five private hospitals and one public hospital within the city limits provide a total of 1,895 beds. This is a ratio of 3.19 beds per 1,000 residents (2005, City of El Paso), a higher ratio than the average for the State of Texas and for the U.S., at 2.6 and 2.8 beds per 1,000 persons, respectively. To service the community’s large military population, William Beaumont Army Medical Center provides an additional 479 beds for the area. Beaumont Hospital is one of the seven largest U.S. Army general hospitals in the nation. El Paso also has well-organized public health service programs managed by the statedirected City-County Health Department. Higher Education The El Paso area is home to a number of well-regarded institutions of higher education. University of Texas at El Paso: The University of Texas at El Paso (UTEP), founded in 1914, is a major university in the University of Texas system. UTEP is a major research university with more than 19,200 students. UTEP ranks third in federal research spending among all UT-system academic institutions, with about $36 million a year, and is designated as a Doctoral/Research-Intensive University in the Carnegie Classification of Institutions of Higher Education. UTEP has received a Page 16 Northeast El Paso Master Developer RFQ number of prestigious federal grants, including Teachers for a New Era, Partners for the Advancement of Collaborative Engineering Education and the Mathematics and Science Partnership from the National Science Foundation (NSF). It ranks third in the nation in awarding bachelor’s degrees to Hispanics, and was noted by Hispanic Business magazine as having the No. 1 graduate engineering school for Hispanics. The NSF has designated UTEP as a “Model Institution for Excellence.” UTEP Campus UTEP offers more than 160 degrees, including 13 doctoral programs. UTEP’s six colleges include the College of Business Administration (enrolling 3,000 students each fall), the College of Education (3,000), the College of Engineering (2,500 students), the College of Health Sciences (2,000 students), the College of Liberal Arts (6,000 students), and the College of Science (1,500 students). Because of its unique border location, UTEP is able to offer doctoral degrees in U.S.-Mexico borderlands history, international business, intercultural rhetoric, and cross-cultural psychology. Students can also earn degrees in bioinformatics, engineering, computer science, materials science, and military science. Faculty research focuses on areas such as environmental science and engineering, borderlands history, and manufacturing engineering. UTEP undergraduate students participate in hands-on research. Students also have many opportunities to participate in bi-national research programs between UTEP and higher education institutions in Mexico. Texas Tech University Health Sciences Center (TTUHSC) at El Paso: Since 1973, Texas Tech has offered a rich learning environment for students interested in infectious diseases, diabetes, migrant health and community-oriented primary care. The Health Sciences Center has clinics located throughout El Paso, one of which is located on the northeast side. Texas Tech completed a $14-million remodeling of facilities and will soon complete a new $45 million research facility. The university is looking to expand its medical programs to include a full four-year medical program, which will expand the educational, research, and services available in the region. El Paso Community College: This system has five conveniently located campuses throughout the area. One of the largest comprehensive community colleges throughout the U.S., it offers over 130 programs of study to earn an associate’s degree or a certificate of completion. New Mexico State University (NMSU) in Las Cruces, New Mexico: NMSU and UTEP have a reciprocal agreement whereby residents of each city may attend the other’s university and pay in-state tuition. NMSU is a major land-grant research institution and a minority serving institution, as designated by the Carnegie Foundation and the Federal government. In addition, Howard Payne University, the University of Phoenix, and Webster University offer opportunities to pursue higher education. Page 17 Northeast El Paso Master Developer RFQ Sports Venues El Paso offers many opportunities for sporting events, both at the professional and collegiate level. UTEP: The University offers Division 1-A men and women’s collegiate sports as a member of Conference U.S.A, with exciting seasons during recent years. The Miners football team played in bowl games in both 2004 and 2005 and is considered “El Paso’s team.” Their Sun Bowl stadium, which seats 51,500, is the site of the oldest independent college football bowl game in the country, the Brut Sun Bowl, which matches teams from the PAC-10 with the Big East or the Big 12. The men’s basketball team played in the NCAA tournament in both 2004 and 2005. El Paso Diablos Baseball: The team is a member of the American Association of Independent Professional Baseball and plays home games at Cohen Stadium. The stadium is located in northeast El Paso at Patriot Freeway (U.S. 54) just south of Trans Mountain Road. Average attendance at home games is 3,500 fans, the fourth highest attendance in the league. The stadium was built in 1990 and hosts other community and athletic events off-season, such as the Southwest International PRCA Rodeo. El Paso Patriots Soccer: The professional team plays home games at Patriot Stadium, located in east El Paso. They are a member of the United Soccer Leagues (U.S.L). El Paso Rhinos Hockey: The hockey team is a member of the Western States Hockey league and plays home games at Sierra Providence Events Center. Attractions and Cultural Sites El Paso’s regional location makes it very attractive to potential residents. Located across the U.S.-Mexico border from Ciudad Juárez, and very close to Las Cruces, New Mexico, El Paso offers a variety of unique visitor attractions. Ft Bliss Museum and Study Center: This Army post was established in Downtown El Paso in 1848 and today is America’s Air and Missile Defense Center of Excellence. Old Fort Bliss Museum: This museum recreates Fort Bliss as it appeared from 18541868. The museum contains authentic period room exhibits and outdoor displays. Interpretive exhibits tell the story of this important army post from its inception to present day. Chamizal National Memorial: This memorial and park is located near the Bridge of the Americas and recognizes the 1963 amicable dispute between U.S. and Mexico over this section of the borderland. Other attractions that are located in or near El Paso include: Concordia Cemetery Fray Garcia Monument MeKelligon Canyon Park & Amphitheater Magoffin Homestead State Historical Park Mt. Cristo Rey Page 18 Northeast El Paso Master Developer RFQ Plaza de los Largartos Tigua Indian Cultural Center at Ysleta del Sur Pueblo El Paso Zoo LaVina Winery Zin Valle Winery Ruidoso Downs Racetrack and Casino Sunland Park Racetrack and Casino Wyler Aerial Tramway Museums and Galleries El Paso has a vibrant art and cultural scene. Attractions include: Adair Margo Gallery El Paso Historical Society El Paso Firefighters Museum El Paso Holocaust Museum & Study Center Border Patrol Museum Centennial Museum El Paso Museum of Archaeology El Paso Museum of Art Insights El Paso Science Museum International Museum of Art Juarez Museum of History and Art Los Portales Museum and Tourist Information Center El Paso Railroad & Transportation Museum El Paso Medical Museum McCall Neighborhood Center UTEP Art Department Galleries Stanlee & Gerald Rubin Center for the Visual Arts War Eagles Air Museum There are several major attractions outside of El Paso that are easily accessible. These strengthen the tourist/visitor market and contribute to the quality of life of El Paso residents. Downtown El Paso El Paso Convention Center Ciudad Juárez, Old Mexico: The Rio Grande River separates the U.S. and Mexico. Juarez lies right across the river and is accessible by auto or the Border Jumper trolley. Of particular interest are the old Mercado (crafts mall) and the Cathedral of Our Lady of Guadalupe, established in 1659. Hueco Tanks State Historical Site: This site is located 45 minutes from El Paso. It is one of the most historic sites in Texas because of its Indian pictographs and use as a stagecoach stop along the old Butterfield Trail. Mission Trail: This trail is home to three stately adobe churches located in El Paso’s lower valley. The oldest was established in 1682. The missions are still active. Page 19 Northeast El Paso Master Developer RFQ Cloudcroft, New Mexico: Located 9,000 feet above sea level, the town has a wealth of recreational opportunities, such as hiking, mountain biking, fishing, horseback riding, snow tubing, alpine and cross-country skiing. Carlsbad and Carlsbad Caverns, New Mexico: Located approximately three hours from El Paso, Carlsbad Caverns National Park is one of America’s great natural treasures. The breathtaking cave system was formed millions of years ago. Page 20 Northeast El Paso Master Developer RFQ IV. NORTHEAST EL PASO: A UNIQUE DEVELOPMENT OPPORTUNITY The Northeast Master Plan project site is an exciting opportunity for the El Paso community to meet the demands for new housing and services that will inevitably result from near-term population growth. The project site offers a tremendous master planning opportunity to the sophisticated developer. Unique Site Characteristics There are many unique and exciting attractions near the site, including: Painted Dunes Golf Course: One of the best golf courses in the region. This championship desert-style 27-hole golf course has been rated 4.5 stars by Golf Digest, and has a practice facility with driving range, chipping, pitching, and putting greens. Franklin Mountains State Park: Located directly to the west of the site. This State Park is a fantastic recreational and open space amenity with great hiking, biking, picnicking, and camping. Northeast El Paso Regional Park and Preserve: This new public facility is located south of the Patriot Freeway (U.S.-54) with open space and recreational uses. In order to fully maximize usage of these amenities, the Northeast Master Plan calls for a “Green Link” to be established to provide strong linkages between them. This green link will connect the regional park and preserve with a high school site by utilizing a series of pedestrian underpasses. The green link should also be extended in subsequent phases of development to connect town center development to school sites north of Stan Roberts Drive, as well as to the golf course and to the regional park and preserve on the south. Market Opportunities for the Site The development opportunities defined for this site are the result of the Market Analysis conducted during early 2006 as part of URS Corporation and Goodkin Consulting’s Implementation Study for the PSB. Painted Dunes Golf Course Page 21 Northeast El Paso Master Developer RFQ For-Sale Residential Development Opportunities Based upon review of the existing market conditions and a review of the site’s strengths, weaknesses, opportunities and threats, overall market demand may be segmented into four product groups: (1) Senior Housing, (2) Luxury Housing, (3) Market Standard Housing, and (4) Entry-Level Housing. Annual Market Demand (Owner Occupied) Market Segment Senior - Market - Created Demand Capture Rate Potential Captured Units Annually 5 Year Program 300 100 13% 60% - 20% 70% 40 60 100 - 60 70 130 200 300 500 - 300 350 650 Market Rate Homes - Market - Military (Direct) - Military (Indirect and Induced) 800 260 920 10% 15% 15% - 15% 20% 20% 80 40 140 260 - 120 50 180 350 400 200 700 1,300 - 600 250 900 1,750 Luxury Homes - Market - Military (Direct) - Military (Indirect and Induced) 400 170 690 10% 12% 12% - 15% 15% 15% 40 20 80 140 - 60 30 100 190 200 100 400 700 - 300 150 500 950 Entry Level - Market - Military (Direct) - Military (Indirect and Induced) 3,000 1,280 690 4% 8% 8% - 5% 10% 10% 120 100 60 280 - 150 130 70 350 600 500 300 1,400 - 750 650 350 1,750 Total 8,610 9.1% - 11.8% 780 - 1,020 3,900 - 5,100 The preceding table identifies annual and five-year projections for each of the housing product groups from all population segments, including the current El Paso regional market area (including El Paso County, Texas, and Doña Ana County, New Mexico), direct military and civilian employment at Fort Bliss, and households created by the indirect and induced employment market created by the planned Fort Bliss expansion. Potential Units, Years 1 - 5 Entry Level, 1750 (34%) Senior, 650 (13%) Market Rate, 1750 (34%) Luxury Homes, 950 (19%) Page 22 Northeast El Paso Master Developer RFQ Descriptions of each product segment shown in the preceding graph follow. Senior Housing Senior Housing is defined as housing for individuals over the age of 65. Currently, this population comprises 10% of the combined populations of El Paso and Doña Ana Counties. Based on previous growth patterns of this age cohort within the general population and the projected 2010 population of the two counties of 727,120 (excluding growth associated with Fort Bliss), there will be an annual growth of 1,714 net new seniors in the area over the next five years. Assuming that the development of the northeast property will contain an attractive, senior focused community within the larger development, above what is currently offered in the market place; we estimate that the capture for this site could be 14% to 21%, or 40 to 60 units per year. The total development of a senior’s community could be 200 to 300 units over the five year build out. Because this development will be new to the market and if developed/promoted by a national senior builder, the local market could add 30% to the development. A capture of 60% to 70% of this “imported” demand could result in an additional 60 to 70 units per year. The resulting development package would entail 100 to 130 units a year or 500 to 650 units during the five year build out. Luxury Housing Luxury housing for this opportunity is defined as homes priced over $175,000. Using the homeowner affordability model presented by the U.S. Department of Housing and Urban Development, a household would need an annual income greater than $75,000 to afford a Luxury Home. In 2000, the households headed by an individual under the age of 65 and earning over $75,000 per year cohort of the population accounted for over 11% of the households in El Paso and Doña Ana Counties. Based on the following assumptions: 63.4% home ownership rate Continued growth of this cohort consistent with growth over the previous 15 years 40% percent of the households may decide to move to a new home (upgrade or new purchase in the price range) Annual demand for Luxury Housing is projected to grow at 400 households per year. Based on the level of amenities potentially offered with a high class, large development and the option of golf course views, a capture rate of 10% to 15% for the Project Site is assumed, yielding 40 to 60 units per year priced over $175,000. It is estimated that a share of the demand for Luxury Housing would come from the Fort Bliss expansion. It is estimated that 10% of the military personnel and direct civilian employees will earn, as a household, over $75,000 or have equity from selling a more expensive unit at their previous location, affording them a home priced over $175,000. This 10% of 1,700 annual military-demanded units results in 170 luxury homes that could potentially be purchased annually in the greater El Paso market by military personnel and direct civilian contractors. A capture of 12% to 15% of these luxury units by the Project Site would result in 20 to 30 units a year. Furthermore, approximately 30% of indirect and induced households created by the Fort Bliss expansion, as a household could afford a Luxury Home. This 30% of 2,300 Page 23 Northeast El Paso Master Developer RFQ annually demanded housing units results in 690 luxury-rate households that could potentially be purchased annually in the greater El Paso market by indirect and induced households created by the Fort Bliss expansion. A capture of 12% to 15% of these luxury units on the Project Site would result in 80 to 100 units a year. Total annual demand from all population segments for Luxury Housing units on the Project Site is 140 to 190 units per year, or 700 to 950 units over the five-year build out. Market-Standard Housing For this area, Market-Standard housing is defined as homes valued between $125,000 and $175,000. Using the affordability model of the US Department of Housing and Urban Development of using 30% of an annual income on housing, a household would need incomes of $35,000 to $75,000 annually to afford these units. According to the 2000 Census, households with a head of household under the age of 65 and earning between $35,000 and $75,000 accounted for 27% of all households in the El Paso region. Based on the following assumptions: Continued growth of this cohort during the build out of the five year plan at the rate experienced during the past 15 years 63.4% homeownership rate Two in three homes would have a propensity to move to a new unit or move up to more expensive housing in this class There would be 800 potential new households annually able or willing to purchase a new Market-Standard home. Assuming the capture rate of 10% to 15% based on the high level of amenities envisioned in the Northeast Master Plan, the site could capture 80 to 120 units a year. Of the military personnel and direct civilian employees at Fort Bliss, 15% of households could afford a Market-Standard housing unit based on household earnings or current home equity. This 15% of 1,700 annually military-demanded units results in 260 market standard households that could potentially be purchased annually in the greater El Paso market by military personnel and direct civilian contractors. A capture of 15% to 20% of these Market-Standard units in the Project Site, which is in close proximity to the main functions of Fort Bliss, would result in 40 to 50 units a year. Additionally, approximately 40% of the indirect and induced households created by the Fort Bliss expansion will be able to afford a Market-Standard home. This 40% of 2,300 annual demanded units results in 920 market standard households that could potentially be purchased annually in the greater El Paso market by indirect and induced households created by the Fort Bliss expansion. A capture of 15% to 20% of these Market-Standard units on the Project Site would result in 140 to 180 units a year. Total annual demand from all population segments for Market-Standard housing units on the Project Site is 260 to 350 units per year, or 1,300 to 1,750 units over the five-year build out. Page 24 Northeast El Paso Master Developer RFQ Entry-Level Housing Entry-Level Housing includes homes priced under $125,000. During the past ten years, this segment of housing has continually represented almost two-thirds of the built housing stock according to interviews with local developers, builders and financers and supported by building permit information. In 2005, approximately 53% of all households were headed by an individual under the age of 65 and earned under $35,000 per year. At an estimated rate of 3,000 units per year in El Paso and Doña Ana Counties, this trend is expected to continue. Assuming the rate of 3,000 new units valued under $125,000 continues, a capture of 4% to 5% of the market would result in 120 to 150 units annually for a total of 600 to 750 units over the build out of the five year plan. Additionally, approximately 75% of the military personnel and direct civilian employees will earn, as a household, less than $35,000 annually, which affords homes priced under $125,000. This 75% of 1,700 annual estimated military-demanded units results in 1,280 affordable households that could potentially be purchased annually in the greater El Paso market by military personnel and direct civilian contractors. Assuming the Project Site would capture 8% to 10% of these households, demand for Entry-Level units would be 100 to 130 units a year. Approximately 30% of the indirect and induced households created by the Fort Bliss expansion will afford Entry-Level homes. This 30% of 2,300 annual units results in 690 affordable households that could potentially be purchased annually in the greater El Paso market by indirect and induced households created by the Fort Bliss expansion. Assuming the Project Site would capture 8% to 10% of these households, demand for Entry-Level units would be 60 to 70 units a year. Total annual demand from all population segments for Entry-Level housing units on the Project Site is 280 to 350 units per year, or 1, 400 to 1, 750 units over the five-year build out. Rental Residential Opportunities The 20,125 net new military personnel and 1,147 direct civilian employees to Fort Bliss between 2005 and 2010 will reside both on base and off base. While exact numbers of those living off base are not yet available, URS in consultation with various local economic development professionals, Fort Bliss personnel, and research of previous impacts on other communities due to the BRAC process has estimated that 60% of the military personnel would require off base housing. Over half of these units are anticipated to be owner-occupied; however, a significant number of housing units are programmed for rental housing. This demand results in 13,350 new rental housing units needed over the five year plan. A capture of 10% to 20% of this need should result in an additional 1,335-2,670 total units, or 267-537 units per year. These rental units should be divided into “rental villages” across the 3,300 acres in the site and adjacent properties and built near the town centers and commercial areas. The remaining rental unit demand should be developed in the area south of Patriot Highway. Retail/Commercial Opportunities URS Corporation and Goodkin Consulting’s residential market analysis estimated approximately 1,700 new households each year on the Project Site. This annual projected increase in households over a five-year period, taken together with the existing population in the northeast, suggests that the retail developments on the Project Site Page 25 Northeast El Paso Master Developer RFQ could have access to a shopper base of 32,510 households over a variety of household incomes ranges by 2010. According to typical household retail spending patterns recorded by the Bureau of Labor Statistics for the US South, these households are estimated to have annual retail purchasing power of $480 million to $640 million. The Northeast El Paso Master Plan designates three commercial nodes for future retail and commercial development: Town Center #1 along the east side of Martin Luther King (MLK), Jr. Boulevard Town Center #2 at Painted Dunes Golf Course McCombs Street Community Retail at US-54/Patriot Freeway and McCombs Street Local Transportation Improvements The PSB and the Texas Department of Transportation (TxDOT) will improve McCombs Street in order to establish a prominent entrance into the center of the project site and the golf course around which a series of planned communities can be developed. McCombs will be expanded from a two lane section to a four lane section with a landscape median. TxDOT, in cooperation with the New Mexico Department of Transportation, has begun preparation of design schematics and an environmental assessment for a 22-mile long, limited access highway connecting Loop 375 in northeast El Paso near Railroad Drive to Interstate Highway 10 in Anthony, NM. The project spans Texas and New Mexico, with roughly half of the alignment located in each state. The preferred alternative passes through PSB land in northeast El Paso but not through the ±3,300 acres comprising this project site. Design schematics should be completed by December 2006. Public Funding Opportunities New Interchange & Road The Implementation Study for the Northeast Improvements at MLK Blvd. Master Plan indicated that state and local public funding sources may be available for some development and infrastructure activities associated with the development of the project site. These may include: Texas Water Development Board State Participation Program Texas Parks and Wildlife Department (TPWD) Programs: - Outdoor Recreation Grants - Recreation Trail Grants Local Charitable/Philanthropic Efforts to Support Parks and Trail Development Department of Defense (DOD) Impact Assistance Funding City of El Paso participation in parks and drainage improvements Page 26 Northeast El Paso Master Developer RFQ V. MASTER DEVELOPMENT VISION AND REQUIREMENTS Master Plan Characteristics The residential demand modeling and creation of residential development programs is based on the development of a master planned community. The development of a master planned community of the caliber envisioned by the PSB and city residents has many aspects not currently common practice in the El Paso new construction residential market. These include: Developing of sub-communities. The development of sub-communities, or neighborhoods, allows for well planned, phased development that will have a variety of product types and price points in marketing at any given time in distinct areas. A unified marketing identity will be established for the community. Rather than each individual builder or developer promoting their product on a small scale, a master marketing program will target and reach a larger audience. A component of this larger audience will include retirees that may not have previously considered moving to the El Paso market from other states. Promotion of the largest amenity of any community in El Paso: Painted Dunes Golf Course. With homes that can face the golf course, Painted Dunes will become a focal point of the development. The inclusion of larger amenities can only be supported by a larger, more cohesive development. Research in the market has identified the opportunity for the site to be the location of a new regional high school. The addition of this school could further enhance the projected demand and again differentiate the community from others in the greater El Paso Market. Embodiment of Smart Growth Principles. The smart growth principles embodied by the envisioned master plan community include: 9 Development directed towards existing community investments in roads and utility infrastructure 9 Concentrated development in pedestrian-oriented activity nodes 9 Compact development with a mix of housing options 9 Maximization of open space and pedestrian linkage 9 Preservation of critical environmental features 9 Emphasis on high quality design & community character Existing Site Conditions Analysis of existing site conditions was performed to identify land planning opportunities and constraints. Parcelization recommendations for the site are the result of delineation utilizing the existing road network, floodplain areas and electric utility easements. Existing conditions maps are available on the EPWU website. Development Process The envisioned master plan community will bring a new level of residential development to the El Paso market by: Page 27 Northeast El Paso Master Developer RFQ Attracting a national or regional builders capable of being a master developer for the entire program Inclusion of a single, unified marketing center and program Collaboration between a master developer and local builders for different neighborhoods while phasing land sales Infrastructure planning will be facilitated by an active and collaborative working relationship with the PSB. Parcelization Long-term parcelization was considered in order to identify desirable land uses for future development as depicted on the following page. The most dynamic feature of this vision is the 375 Loop Extension and its intersection with US-54. This may provide opportunity for development of a larger mixed-use town center with commercial, entertainment and housing features. Significant land area remains for the development of additional residential with a wide range of product types. A “green link” park and/or trail extension is proposed to link land in the north and eastern portions of the area back to the commercial nodes, neighborhoods to the west, and the city Regional Park. School sites will be provided throughout the entire area to anchor neighborhood development. A 10-year parcelization strategy was devised, based on three major factors: 1. Leveraging the existence of Painted Dunes Golf Course; 2. The market analysis, which identified mix and absorption program; and 3. Infrastructure staging Approximately 3,300 acres of land will be required to accommodate 10 years of development. First phases of development should occur around the golf course, and adjacent to existing neighborhoods. Conceptual recommendations for location and phasing of each product type are provided in the following plan graphic and table which indicate a preliminary “minimum” version of the take-down schedule of land that the PSB will require from the designated developer. This schedule is subject to change and will be re-published in the final bid documents. PSB will also consider modified “visions” as long as they are based on the three criteria listed immediately above. Page 28 Northeast El Paso Master Developer RFQ Preliminary Land Take-Down/Phasing Schedule Preliminary Land Take-Down/Phasing Schedule Years 1-3 E1: Senior …………...…..…………… E2: Luxury ……………………….…… 225 acres W2: Entry/Market Standard …………. 350 acres W3: Entry/Market Standard …………. 265 acres W6: Commercial/Rental Village …….. Subtotal = 200 acres 75 acres 1,115 acres Years 4-5 W1: Market Standard ……….……… W4: Market Standard …………..…… 265 acres W5a: Senior/Market Standard ……… 200 acres W5b: Market Standard …………….… Subtotal = 175 acres 250 acres 890 acres Years 6-8 W7a: Luxury ……………….………...… 200 acres W8a: Market Standard ……………...… 125 acres W9a: Entry/Market Standard ………… 125 acres W10a: Entry/Market Standard ………... 175 acres W11a: Market Standard ……………...… 90 acres Subtotal = 715 acres Years 9-10 W7b: Luxury ………………….………… 125 acres W8b: Market Standard …………...…… 125 acres W9b: Entry/Market Standard …………. 125 acres W10b: Entry/Market Standard …………. 175 acres W11b: Market Standard ……………...… 85 acres Subtotal = 635 acres GRAND TOTAL = 3,355 acres Page 30 Northeast El Paso Master Developer RFQ Smart Growth Principles Smart Growth is a series of inter-connected polices that leverage public resources, promote healthy lifestyles, protect the environment and create pedestrian-oriented places that people value and choose to spend time. Land will be required to accommodate new homes, businesses, institutions and open spaces to meet the needs of its residents. Development of PSB land in northeast El Paso is a major opportunity for the City to establish high-quality design standards for both private and public projects that may serve as models for new development and redevelopment citywide. New development within northeast El Paso should be in accord with the following Smart Growth principles: Build upon existing road and utility networks Work with the environment by integrating development with natural features Concentrate development in pedestrian-oriented activity nodes Maximize open space – golf, parks, and preserves Provide choices in housing Minimize driving with on-site convenience shopping Integrate recreational amenities and public services (schools, etc.) Connect all major communities with park and/or trail features Emphasize high-quality design and community character Development Program The development program envisioned for the site is comprised of a series of residential neighborhoods that include a range of product types, including luxury, senior, market rate and entry-level housing. Areas for mixed-use commercial development and rental villages are included at strategic locations throughout the site. The Master Plan is organized around a proposed comprehensive park and open space system, to be anchored by the existing Painted Dunes Golf Course and a new regional park being developed by the City of El Paso. Park, Open Space and Trail Features A key feature of the land parcelization strategy is the establishment of a series of major public open spaces and park amenities. A new 150-acre linear park is proposed between McCombs and MLK Jr. Boulevard. This park would serve as the organizing feature around which a series of neighborhoods could be developed over time. Linkage to this park from the Franklin Mountain trail system will be required. The PSB will provide the land for this park and the Master Developer will build it. New Linear Park to Link Development Pods Grade-separated pedestrian access should be established between the new linear park and the golf course at McCombs to provide linkage between these amenities, and pedestrian access under US-54 should be provided south of the golf course in order to provide pedestrian access from the north to the new Regional Park being developed by the City. This linkage will also provide access for neighborhoods from the south to the Page 31 Northeast El Paso Master Developer RFQ new town center and park developments north of US-54. Grade separated pedestrian access should also be established between the Linear Park and land to the west of MLK Jr. Boulevard. Roadway Features Phase 1 is anticipated to require improvements to two arterial roadways, MLK Jr. Boulevard and McCombs, and extension of Sean Haggerty Drive north into the Project Site. A new east-west connector system will be required to provide access throughout the site and linkage to the north-south arterials. The main east-west roadway proposed for the 10-year program is anticipated to be built in two phases. The first phase will provide a two-lane cross section. This would be built during the first five years of development. During the second five years, an additional two lanes would be built to provide a four-lane, median divided boulevard section. This is being proposed as a wide median that will contain a major drainage channel and linear park. The second phase of construction will also include span crossings of the channel at appropriate intervals to provide full access intersections for adjacent development. In order to support private sector investment in the development of the Master Planned Community, the PSB is prepared to invest in McCombs between US 54 and Stan Roberts Sr. Avenue. This road is intended to serve as the new entryway to Painted Dunes Golf Course and the Luxury and Senior product developments proposed adjacent to that facility. Visual character enhancements such as landscape, decorative walls and signage will be included as part of the improvement. Stan Roberts Sr. Ave. McCombs Street Improvements Drainage Features The drainage characteristics of the Northeast Master Plan area present unique challenges to development. The majority of the site lies within an alluvial fan deposit. This condition necessitates certain controls to be compatible with urban development. These controls are required to attenuate and safely convey peak storm flows downstream and off of the site. The current City of El Paso development ordinance, which is presently under review and study, requires that impoundments be designed for 100-year events and channels and pipelines for 50-year events. The development ordinance may be revised in the near future. The strategy envisioned for the detention facilities was the use of park-ponds. The City of El Paso is encouraging the concept of regional park-ponds and appears to fit well with the Northeast Master Plan development. These ponds can be developed into parks or athletic fields. The other key component of the drainage strategy is the principal conveyances. These principal conveyances are anticipated to be open channels. Due to the erodability of the alluvial fan soils, the channels will most likely require concrete lining. Page 32 Northeast El Paso Master Developer RFQ Water and Wastewater Features Water and wastewater service will require development of off-site facilities and major on-site trunk infrastructure of which those over 12” diameter will be provided by EPWU. Pipelines internal to individual development pods will be the responsibility of the Master Developer. These improvements would be divided into two phases corresponding roughly to a Phase 1 serving the first five years of the development program and a Phase 2 serving the second fiveyear development program. Participation by El Paso Area Firms and Suppliers The PSB is committed to involving local builders, suppliers and related business ventures in the development process to the maximum extent by law. Development teams that include local membership will receive points in the RFQ evaluation ranking process. Development teams that commit to utilizing local builders, lenders, and suppliers will receive points in the RFQ evaluation ranking process. Historically Underutilized Business Initiative PSB has a very successful program, called Historically Underutilized Business (HUB) initiative, to increase minority and female-owned business participation in the purchase of goods and services. A commitment to meet, or exceed, the goals of this program will be considered in the ranking process. Development Covenants The following covenants will be included in the sale of the land for development of the master-planned community. These covenants are intended to assure that all aspects of the development meet community expectations for high quality in accord with Smart Growth principles. The covenants are grouped by category. Parks Develop a linear park between McCombs and MLK Jr. Boulevard to anchor a series of residential neighborhood developments. Link area trail systems into the development and allow pedestrian access along identified “greenways” to link all northeast development to the City Regional Park and the Franklin Mountain Range. Meet or exceed City requirements for park set asides. Golf Course Purchase of the golf course is an option available to the selected bidder. The PSB will choose whether or not to sell the golf course based upon the bid price. Utilize Painted Dunes Golf Course to anchor luxury and senior development Guarantee public access to golf course as condition of sale Specify golf course management expectations with a management recapture clause in case of poor management performance Roads Provide access from McCombs through golf course to development sites to the east. Develop east-west collector streets linking McCombs to MLK Jr. Boulevard. Recommend development of a two-way street south of the linear park set-aside as part of Phase 1 development; construct an identical street north of linear park Page 33 Northeast El Paso Master Developer RFQ set-aside in Phase 2. Upon completion reconfigure the two roads as one-way couplets. Extend Sean Haggerty from the south into the design to link to the east-west collectors. Incorporate traffic calming design feature, such as a traffic signal or “roundabout,” into the design of the intersection of the new east-west collector with MLK; incorporate grade-separated pedestrian/vehicular access into the design to provide safe pedestrian access between land east and west of MLK Jr. Boulevard. Visual Character Establish and maintain a significant visual buffer of EPNG and Newman Power Plant. (Consider native species, such as Italian Cyprus and/or Mondal Pines). Utilize electric transmission right-of-ways for recreation trails and playfields. Require gateway treatment, perimeter fencing and landscape features for intersections of McCombs, MLK and any other roadways that serve as an entrance into a development node Require every development maintain at least one low water usage tree and/or shrubs between the primary façade of the structure and the frontage street Require pedestrian-scale street lighting and street trees as part of all commercial and residential development Require coordinated signage program for gateway features, street signs, business and institutional signage, parks and golf course signage, etc., to unify visual character of development Residential Development Specify minimum lot size (50 ft.) and average lot size of 60 ft. for detached product. Require 20 ft. minimum frontage setbacks for primary facades of residential development. Prohibit protrusion of garage façade and entrance in front of primary façade of residence; encourage side and rear yard locations Require central HVAC for each residential unit. Evaporative coolers are prohibited for residential developments. Commercial Development Require build to lines for commercial development along frontage setback (or build-to lines) to assure visual connection and intimate scale of development with automobiles and pedestrians Require the primary façade and entrance of commercial structures be oriented toward street frontage Require rear and/or side-yard located parking for commercial development. Prohibit parking between street frontage and primary façade of commercial buildings Establish cross-access easements between commercial development sites and require shared curb cuts for vehicular access to development sites Public Facilities The PSB will reserve land for schools, police stations, fire stations, libraries and other public facilities within the project area. Page 34 Northeast El Paso Master Developer RFQ Co-locate at least 50% of park sites with designated school sites Trails and Pedestrian Connections Connect all school and park sites with trail system Provide trail system through linear park and all major park areas Connect all major communities with trail system suitable for walking and bicycling Provide trail underpasses at Patriot Freeway, McCombs and MLK Jr. Boulevard Utilize drainage features to maximize trail access to natural areas Page 35 Northeast El Paso Master Developer RFQ VI. RFQ EVALUATION PROCESS AND SCHEDULE Pre-Submittal Conference and Site Tour A pre-submittal conference and site tour will be conducted on Wednesday, November 8, 2006. Overview presentations will be made on the El Paso marketplace, changes at Fort Bliss and the Northeast Master Plan. This will also provide the opportunity to ask questions regarding the qualification process. A bus tour of the site will follow and include lunch at Painted Dunes Golf Course. Attendance is not mandatory but is strongly encouraged. The conference will convene at the El Paso Water Utilities office which is conveniently located near the El Paso airport. Details follow: El Paso Water Utilities 1154 Hawkins Blvd. El Paso, TX 79925 4th Floor Conference Room 10:00 a.m. – 12:00 p.m. (MST) ……… Presentation 12:00 p.m. – 2:00 p.m. …………….…. Lunch and Site Tour Reservations are required for attendance. Email Nick Costanzo at [email protected] to RSVP by Friday, November 3rd. Questions regarding this RFQ should be submitted in writing via email prior to the presubmittal conference. Email questions to Nick Costanzo at [email protected]. If questions submitted to the PSB make issuance of addenda to this RFQ necessary, such addenda will be distributed to all RFQ recipients with requirements to acknowledge receipt. If telephone communication is required, Mr. Costanzo may be reached at (915) 594-5624. Submittal Schedule The PSB will make every effort to adhere to the following sequence of events regarding the selection of a Master Developer. October 15, 2006 RFQ Issued RFQ will be posted on the PSB website for download and a printed copy will be sent to developers on PSB’s developer list. Also, PSB is advertising this RFQ nationally and will send copies to those who request it. November 8, 2006 Pre-Submittal Conference and Site Tour The pre-submittal conference and site tour will be conducted on Wednesday, November 8, 2006. December 29, 2006 RFQ Due Statements of Qualifications are due by 4:00 p.m. MST on December 29, 2006. All submittals will be reviewed in Page 36 Northeast El Paso Master Developer RFQ accord with the evaluation criteria. The Evaluation Committee will submit a recommendation to the PSB. January 2007 Presentation of Qualifications An opportunity may be extended to all parties with a qualified submittal to present their qualifications and vision for development of this site to the Evaluation Committee. Presentations would be scheduled in January 2007. The following details will be outlined in a formal Invitation to Bid document. The PSB will make every effort to adhere to the following sequence of events regarding the Bid process: February 2007 Invitation to Bid Issued April 2007 Bids Due May 2007 Bid Award RFQ Response Evaluation Process Prospective developers will be pre-qualified and short-listed to participate in the subsequent bidding process based on their responses to requirement and qualification criteria in three categories: Organizational Strength and Capacity Requirements/Qualifications Financial Requirements/Qualifications Planning and Vision Requirements/Qualifications The weighted matrix for tabulating scores is presented on the following page, followed by a detailed description of the criteria. Each team will receive individual scores for each of the criteria in each of the three requirement / qualification categories. The scores will be totaled for the category and combined with the scores of the other two categories to establish a final requirement / qualification score. A minimum threshold qualifying score of 50 points will be required for a team to be short-listed. The qualifying process will include two steps: 1) The teams that do not submit a completed and qualified package will be eliminated and notified; and 2) The teams with complete and qualified packages will then receive a “Pass or Fail” determination based on whether they have met the minimum threshold qualifying score. Page 37 Northeast Master Plan Request for Qualifications Score Sheet 1 Team Information Lead Entity: Presenters: 2 Scoring On a basis of 0-5 (5 being highest) please score the team on the following criteria. Organizational Strength & Capacity Requirements - 25 Point Maximum a Lead Firm and Team Description Description of the lead firm, structure of the team and identification of leadership individuals b Team Capabilities Team capabilities in project areas spanning the lifecycle of a master-planned development project 0 1 2 3 4 5 0 1 2 3 4 5 c Local Participation Inclusion of local development partners, home builders and suppliers 0 2 4 6 8 10 d PSB HUB Program Requirements Inclusion of minority- and female-owned businesses to meet HUB initiative goals 0 1 2 3 4 5 Subtotal = Financial Requirements/Qualifications- 30 Point Maximum a Overall Financing Capabilities Description of financing capabilities related to PSB development and infrastructure timetable. b Data on Completed or Current Projects Project information that demonstrates development and financial abilities to meet the minimum criteria c Creativity in Structuring Public/Private Arrangements Demonstrated ability to structure creative public/private financial arrangements 0 2 4 6 8 10 0 2 4 6 8 10 0 2 4 6 8 10 Subtotal = Planning & Vision Requirements/Qualifications- 20 Point Maximum a Master Plan Vision for the Site Preliminary concept for the site that demonstrates creative vision and adherence to City Master Plan b Infrastructure Requirements Ability to meet roadway, drainage, water/wastewater infrastructure requirements c Park, Open Space and Trail Amenities Commitment to park and open space expectations d Development Standards/Covenants Development concepts and program meet key planning standards 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 0 1 2 3 4 5 Subtotal = TOTAL = 3 Comments Please use the remainder of this page to comment on the team's ability to develop Northeast El Paso to a quality expected by EPWU and the City of El Paso. Northeast El Paso Master Developer RFQ RFQ Evaluation Criteria 1. Organizational Strength and Capacity Requirements Lead Firm and Team Description A lead firm should be identified and a comprehensive description of the firm’s capabilities should be included. A consortium of firms partnering together to create a lead entity to undertake this project is also allowed. Documentation of the partnership should be provided, with a lead firm identified. The lead firm’s ownership, organization, number of offices, employees, business lines, history, and growth record are some of the factors to be described. The key leadership individuals in the firm shall also be identified with appropriate resume and job description materials. Those individuals who would specifically be assigned to this project should be identified with resume and job description materials. Any promotional materials, brochures, annual reports and other secondary materials that will further describe the firm’s capabilities should be included. A listing and description of other key development partners and professional associates on the development team should be provided. An organization chart showing all members of the team should be provided. Team Capabilities The lead firm and/or team must demonstrate unique capabilities to undertake this complex project. Define how this project fits your business strategy and organizational strengths, as well as your approach for fulfilling the following capabilities spanning the lifecycle of a master-planned development project. 1. 2. 3. 4. 5. 6. 7. Land Acquisition and Land Development Capabilities Market Analysis, Site Planning and Design Capabilities Project Scheduling and Organizational Capabilities Infrastructure Design and Development Capabilities Product Design and Production Capabilities Project Marketing Capabilities – Local, Regional, National Project Maintenance and Management Capabilities Local Participation The inclusion of development partners, home builders and local suppliers in the development effort is desired. Please indicate how each of these will be addressed in your approach. Participation of Local Partners: The inclusion of local development and financial/lending partners on your team is desired. Participation of Local Home Builders: The participation of local home builders in developing product on the site is desired. Different types of participation are possible, including making lots and parcels available, joint-venturing, and actual partnering on different project phases. Utilization of Local Suppliers: The utilization of local materials, product, and professional service suppliers in your development program is desired. Page 39 Northeast El Paso Master Developer RFQ PSB Program Requirements PSB has a very successful program, called Historically Underutilized Business (HUB) initiative, to increase minority and female-owned business participation in the purchase of goods and services. Please indicate your familiarity with this or similar programs, and how you would comply with such goals and requirements. 2. Financial Requirements and Qualifications Overall Financing Capabilities Provide information on the financing capabilities of your team to undertake a project of the scale and quality of that proposed for the PSB site, in accord with the development timetable and goals of the PSB. Describe and support with documentation your financial capabilities to address the following project thresholds: $70-$100 million of privately funded core project infrastructure over ten years Funding for infrastructure within development parcels Financial capabilities of purchasing approximately 3,000 acres Construction financing capabilities to deliver 10,000 units in ten years, directly or through home builder/development partner relationships Financial strength to install and operate marketing and amenity facilities Access to capital to cover unanticipated project costs that may arise Annual reports, prospectuses and other financial statements that document the financial capacity of the lead firm and key team partners should be included. Any documentation of ongoing lender relationships that demonstrate financing capability should be included. Data on Completed or Current Projects As a further indicator of financial and development capabilities, project profile information is requested including financing of completed and/or current projects, particularly those that would meet the following minimum size criteria: 1,000 units or more in multiple phases Upfront infrastructure costs of several million dollars or more Total project development costs of $50 million or more Creativity in Structuring Public/Private Arrangements The PSB is interested in the experience of the development team in working with public entities in a collaborative way – in particular in ways which reduce the public participant’s capital investment and risk for infrastructure. Respondents should describe examples of creative public/private arrangements, teamwork and collaborations on previous major projects. 3. Planning and Vision Requirements and Qualifications Please indicate in your response your familiarity with the following requirements and how your approach will comply. Page 40 Northeast El Paso Master Developer RFQ Master Plan Vision for the Site The development team is invited to develop a preliminary concept “vision” for the site for presentation to the PSB Board in the interview process, and for inclusion in the final RFQ submission. The vision should be developed in accord with the Northeast Master Plan and Implementation Study described in this solicitation, but should also demonstrate the development team’s own creative vision in addressing the site opportunity. This vision can be preliminary and conceptual in nature, and include visual, diorama, scale model and illustrative drawings as the team sees fit. The development concept should illustrate both team capabilities and unique development ideas to create a master planned community that sets a new planning level for the El Paso market. Infrastructure Requirements The developer will be expected to provide $70-100 million of core infrastructure in addition to individual parcel development costs. Indicate your ability to work with El Paso and PSB on the following requirements: Roadway Requirements Provide access from McCombs through golf course to sites to the east Develop east-west collector streets linking McCombs to MLK Extend Sean Haggerty from the south into the project site Incorporate a traffic calming design element, such as a “round-about” or signalized intersection, at the intersection of MLK and the new east/west collector Drainage Requirements The current City of El Paso development ordinance requires that impoundments be designed for 100-year events and channels and pipelines for 50-year events, though this is presently under review and subject to change. The strategy envisioned for the detention facilities was the use of park-ponds. Developer needs to demonstrate the capabilities of the team to work with the city and PSB to address these needs. Water and Wastewater Requirements: PSB will provide all wastewater infrastructure over 12” pipe diameter. Developer will be responsible for all other water/wastewater utility infrastructure. Park, Open Space and Trail Amenities A comprehensive system of parks and open spaces is envisioned for Northeast El Paso. El Paso has recently adopted new standards for park development related to new development. The development team must meet or exceed these standards. Additional park, open space and trail features that will be required include: Linear park Grade separated pedestrian underpasses Franklin Mountain trail linkage Page 41 Northeast El Paso Master Developer RFQ Development Standards/Covenants Development covenants will be included in the purchase and sale agreement of the land for development of the master planned community. Categories will include the following, at a minimum: Connectivity – between all major elements of community Visual character – gateway, streetscape and site design elements Drainage and water features that work with existing environment Residential site and commercial site standards to protect adjacent users Landscaping standards within communities as well as commercial sites Incorporation of sites for public facilities –schools, public safety, etc. Product design that brings variety and interest Please indicate in your response your capabilities and previous experience in addressing standards of these types. Page 42 Northeast El Paso Master Developer RFQ VII. GENERAL TERMS AND CONDITIONS Submittal Details 10 copies of the Statement of Qualifications are required. Submittals should be addressed to the following: Nick Costanzo, Asst. General Manager El Paso Water Utilities 1154 Hawkins Blvd. El Paso, TX 79925 Submittals are due by 4:00 p.m. MST on December 29, 2006. Submittals received after this time will be returned to sender unopened and, therefore, will not be considered. Submittal Evaluation Submittals will be screened by PSB management and technical staff and their consultants to determine compliance with requirements of this RFQ prior to submission to the Evaluation Committee. The Evaluation Committee is comprised of members of the Public Service Board, PSB senior management, and City senior management. All Submittals received in response to this RFQ will be evaluated by this Committee in their sole and absolute discretion. The Evaluation Committee will submit their ranking of the submittals to the PSB for approval of the short list of entities invited to bid. Submittal Completeness and Compliance with Request All Submittals will be reviewed for completeness and compliance with the terms and conditions of this RFQ. The PSB may at any time exclude any Submittal that they deem in the exercise of their sole and absolute discretion to be incomplete or to not comply with this RFQ. Supplemental Information The PSB may request from any and all Submitters additional material, including submittals that are incomplete or non-conforming. PSB may also prepare a written interpretation of any aspect of any Submittal and seek the Submitters acknowledgement of the interpretation. A Submitter may also be requested to provide an oral presentation of its Submittal. All such supplemental information will be considered part of the Submittal. Except at the request or by the consent of PSB, Submitters will not be entitled to change their Submittals. Investigation PSB may investigate any and all information with respect to any Submitter, its Submittal, or its development team. The results of any investigation may be considered in the evaluation of the Submittal and need not be disclosed to the Submitter or any member of its development team. Notification of Status At the conclusion of the evaluation period, all Submitters will be advised in writing of their status under this RFQ. Page 43
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