Development of PSB Lands in Northeast El Paso, Texas

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:
ƒ
ƒ
ƒ
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:
ƒ
ƒ
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:
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
ƒ
ƒ
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
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
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
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
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
ƒ Develop a linear park between McCombs and MLK Jr. Boulevard to anchor a
series of residential neighborhood developments.
ƒ 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.
ƒ Meet or exceed City requirements for park set asides.
Golf Course
ƒ 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.
ƒ Utilize Painted Dunes Golf Course to anchor luxury and senior development
ƒ Guarantee public access to golf course as condition of sale
ƒ Specify golf course management expectations with a management recapture
clause in case of poor management performance
Roads
ƒ Provide access from McCombs through golf course to development sites to the
east.
ƒ 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
ƒ
ƒ
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
ƒ Establish and maintain a significant visual buffer of EPNG and Newman Power
Plant. (Consider native species, such as Italian Cyprus and/or Mondal Pines).
ƒ Utilize electric transmission right-of-ways for recreation trails and playfields.
ƒ 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
ƒ 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
ƒ Require pedestrian-scale street lighting and street trees as part of all commercial
and residential development
ƒ 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
ƒ Specify minimum lot size (50 ft.) and average lot size of 60 ft. for detached
product.
ƒ Require 20 ft. minimum frontage setbacks for primary facades of residential
development.
ƒ Prohibit protrusion of garage façade and entrance in front of primary façade of
residence; encourage side and rear yard locations
ƒ Require central HVAC for each residential unit. Evaporative coolers are
prohibited for residential developments.
Commercial Development
ƒ 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
ƒ Require the primary façade and entrance of commercial structures be oriented
toward street frontage
ƒ Require rear and/or side-yard located parking for commercial development.
Prohibit parking between street frontage and primary façade of commercial
buildings
ƒ Establish cross-access easements between commercial development sites and
require shared curb cuts for vehicular access to development sites
Public Facilities
ƒ 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
ƒ
Co-locate at least 50% of park sites with designated school sites
Trails and Pedestrian Connections
ƒ Connect all school and park sites with trail system
ƒ Provide trail system through linear park and all major park areas
ƒ Connect all major communities with trail system suitable for walking and bicycling
ƒ Provide trail underpasses at Patriot Freeway, McCombs and MLK Jr. Boulevard
ƒ 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:
ƒ
ƒ
ƒ
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.
ƒ
Participation of Local Partners: The inclusion of local development and
financial/lending partners on your team is desired.
ƒ
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.
ƒ
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:
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
$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:
ƒ
ƒ
ƒ
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
ƒ Provide access from McCombs through golf course to sites to the east
ƒ Develop east-west collector streets linking McCombs to MLK
ƒ Extend Sean Haggerty from the south into the project site
ƒ 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:
ƒ
ƒ
ƒ
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:
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
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