Request for Proposals

Kelly Street Restoration is pleased to announce a Request for Proposals (RFP) for the development of a new healthy and fresh food purveyor in the South Bronx.

The Kelly Street Green storefront, at 163rd Street and Kelly Street in the Longwood section of the Bronx, is seeking proposals for the development and operation of a business that will provide accessible healthy and fresh food to local residents. The business will work with the adjacent community garden and local farms.

The information below is also available in this pdf.

A Business Use Operator & Developer

"llegan a cielo"

RFP RELEASE DATE: August 2, 2012

DEADLINE FOR PROPOSALS: September 21, 2012

Workforce Housing Advisors, Monadnock Construction, Banana Kelly CIA

Inquiries

Questions regarding the RFP can be directed to info@kellystgreen.com.

Table of Contents

Summary of the Request for Proposals
Site Description
Submission Requirements
Selection Criteria
Application Timetable
Questions Concerning the RFP

SUMMARY OF THE REQUEST FOR PROPOSALS

I. Opportunity Summary

Through this RFP, Kelly Street Restoration LP (KSR) actively seeks proposals from individuals, companies, or organizations to lease, operate, and maintain any portion up to and including the full 2,822 square feet of commercial space that is part of the Kelly Street Portfolio. Successful respondents will be those who can fill the commercial space with a business use that will produce significant impact in at least two of the three following areas of interest:

• Increasing access, availability, and awareness of affordable, healthy food for all members of the community.
• Improving health and nutrition.
• Generating economic opportunities through the creation of fulltime and part time jobs for community residents.

This RFP is open to any individuals, companies, or organizations, with an engaging community-based concept, and a sound business plan that generates profit for the operator while creating jobs for community residents. KSR recognizes that this opportunity would allow an entrepreneur to implement a business model that they may not have fully considered before, and so individuals who are looking to start a new business are strongly encouraged to apply.

In order to develop this new vision, KSR is forming an Advisory Committee that will include local stakeholders, food industry experts, and business specialists. This Advisory Committee will be available to meet with the winning respondent to provide guidance and feedback for the project as it proceeds.

II. Neighborhood and Project Context

In 2011 KSR acquired the Kelly Street housing portfolio, consisting of 916, 920, 924, 928, and 935 Kelly Street. These buildings are located at the nexus of an active commercial and residential intersection in the Longwood neighborhood of Bronx Community District 2 (CD2) (Exhibit 1).

Despite the bustling commercial activity and buying power in the area, which is largely derived from the 47,000 residents of CD2, and the 4,800 workers employed within the surrounding community, there remains an insufficient supply of healthy and fresh food purveyors. The limited opportunities to purchase fresh and healthy foods help to explain the neighborhood population having a high level of diet-related diseases.

KSR is committed to developing this largely untapped market by providing this opportunity for an operator to address the need for consumer access to affordable and healthy food, while working to generate local economic development and decrease diet-related diseases via promoting healthy behaviors.

III. Incentives

The following are ways in which KSR will support the tenant throughout the first operating year:

• The site will be leased in "as-is" condition for a subsidized rent of $7 per square foot. The lease agreement will be a conventional structure (Exhibit 6), where the term of the lease will be based upon what the applicant is proposing in their plan. "As-is" condition is meant to refer to the fact that the space will be finished to a level of completeness for general business use but that no special equipment or infrastructure will be put in place by the owner.
• Access to GrowNYC, who will assist in securing one or more New York state farm(s) to be a supplier of the locally grown, fresh foods as desired in the winning plan.
• KSR, in collaboration with our various financial and philanthropic members, will work to help defray or absorb with up to $250,000 of the capital costs (through a combination of grants and low interest loans) associated with the winning commercial endeavor.
• The lease of an apartment within the Kelly Street housing portfolio at no cost for the operator or designee.
• Access to the Advisory Committee, who will offer business counsel and advice to the tenant as needed, and at least once per month for the first year of operation.
• Access to and coordinated use of the adjoining food-producing community garden to supplement the goods sold.

SITE DESCRIPTION

The commercial space is located at 935 Kelly Street, a five story building that sits on the corner of Kelly Street and 163rd Street (Exhibit 2). The site is currently zoned R7-1 with a C1-4 commercial overlay. Proposals must address as-of-right uses permitted in a C1-4 zoning district in in accordance with the New York City Zoning Resolution. Although the uses of the site contemplated by this RFP are most likely to be permitted in this zoning district, the respondent should ensure that their specific plan is compliant with zoning.

This property has immediate access to the "2" and "5" trains at the Intervale Avenue subway station stop (located approximately 800 feet northwest), and the "6" train at the Hunts Point Avenue subway station stop (located approximately 1100 feet east). Several bus routes operate along major streets in the area, including Westchester Avenue (Bx4), Bruckner Boulevard (Bx5), and Hunts Point Avenue (Bx6) (Exhibit 3). Street parking is available on both Kelly Street and 163rd Street.

KSR has just completed significant structural stabilization and renovation work to the building. The 2,822 square foot commercial space is currently broken into three commercial spaces, all of which are equipped with heating, one handicapped accessible bathroom, lighting, and storage space in a below ground cellar (Exhibit 4). Primary ingress/egress is through the front of the building on 163rd Street, which is a busy business corridor with a high volume of foot traffic. Respondents are encouraged to view the commercial space as a blank slate, where the non-load bearing interior walls could be moved as needed for the success of the proposed business use(s) (Exhibit 5).

SUBMISSION REQUIREMENTS

The total submission cannot exceed 8 pages excluding any supporting documents. The proposals will be judged on the 8 pages, which means that any appendices can't directly answer any of the following question, that must be done in the 8 pages. Each complete proposal must contain the following elements:

• Part I: Project Description - A detailed narrative describing relevant aspects of the proposal, including:
  • The concept of the initiative.
  • The type(s) of business use(s).
  • A description of the type of programming that will be made available to the public, if applicable.
  • If the respondent desires/needs to improve the site, include a description, design schematics, construction budget, and estimated construction schedule of the proposed improvements.
  • Highlight how the business will be accessible to low-income people, such as the acceptance of WIC or SNAP.
• Part II: Planned Operations
  • A detailed operational plan for the entire facility, including but not limited to hours of operation, prices, if applicable, etc.
  • An estimated number of full-time and part-time employees, the positions these employees will fill, and the percentage of these employees that you expect to hire from the community.
• Part III: Financial Information
  • Sources (with status of availability) and uses of funds, be as detailed as possible as to the revenue model.
  • Construction budget defining specific hard and soft costs, if applicable. Provide clear, itemized sources and uses for all hard costs, such as equipment quotes and estimates.
  • Detailed description of proposed equity investment and permanent financing and debt service, if applicable.
  • Cash flow projections and proforma of program and operations for 5 years out.
  • Provide clear, itemized sources and uses for startup costs.
  • Letters of interest and/or intent from lenders if applicable.
  • Description of any awarded grants or funding.
• Part IV: Respondent Description
  • A description of the individual, organization, or company's history.
  • Resumes of each contributing member.
  • Any additional documentation or information evidencing the strength of the respondent's team, and their ability to succeed in this business initiative.
  • A credit and background check may be requested before awarding the site.

SELECTION CRITERIA

The Advisory Committee will work with KSR to assist in reviewing the proposals to determine their likelihood of success, adherence to the generally desired outcomes, and general feasibility. The following criteria will be used as a guideline to review submissions and select a proposal:

• Effectiveness: The extent to which the overall concept and quality of the proposed business use utilizes the commercial space in a manner that compliments the vision expressed in this RFP, and produces significant impact in at least two of the three following areas of interest:
  • Increasing access, availability, and awareness of affordable, healthy food for all members of the community.
  • Improving health and nutrition.
  • Generating economic opportunities through the creation of fulltime and part time jobs for community residents.
• Operating Feasibility: The respondent's availability of identifiable funding sources to finance the business initiative, and the respondent's ability to demonstrate an economically viable business use that generates sufficient revenue to support operating expenses and capital costs.
• Project Team Qualifications: Respondent merit, qualifications and professional record, including previous or current business successes.
• Commitment: As entrepreneurs, KSR recognizes that the winning proposal may be from someone or some group of generally limited economic means. With that understood, it is imperative that the winning proposal demonstrate a total commitment of time and effort to put the business plan's vision into action.
• Submitted proposals must include all completed parts, and are not to exceed 8 pages in length. Supporting documentation such as but not limited to resumes, letters of interest and/or intent from lenders, and design schematics can be submitted as attachments, and are considered excess to the 8-page limit.

APPLICATION TIMETABLE

RFP RELEASE DATE	August 2, 2012
DEADLINE FOR PROPOSALS	5:00 PM, Friday, September 21, 2012
NOTIFICATION OF SELECTED RESPONDANT	October 15, 2012 (or sooner)

The proposal must be submitted to and received by KSR by 5:00 PM, Friday, October 15, with "935 Kelly Street RFP" either on the envelope or subject line of the e-mail. Mailed proposals must be delivered to the following address:

Kelly St Green
244 Madison Ave, Suite 249
New York, NY 10016
Please write "Kelly St Green RFP" on the subject line of any e-mail regarding this RFP opportunity.

QUESTIONS CONCERNING THE RFP

A list of questions about the RFP that are received from potential respondents, and answers to those questions, will be posted on the RFP website www.Kellystgreen.com along with the electronic version of this RFP. Questions and responses will be posted as questions are received. Respondents are encouraged to check the website frequently for the announcement of the Pre-Application Phone Conference Call, which will allow interested parties to pose questions about the project and the application process.

PROJECT HISTORY

In December 2010 the prior owner of the Kelly Street portfolio was held in default on the mortgage and the portfolio went into foreclosure. On January 7, 2011 Kelly Street Restoration LP, a three way partnership made up of Monadnock Construction, Banana Kelly Community Improvement Association, and Workforce Housing Advisors, purchased the debt on the portfolio from Ridgewood Savings Bank with the intention of pursuing the foreclosure and, if successful, undertaking a full gut rehabilitation to correct all housing code violations, updating the inadequate and deteriorated building systems, and achieving energy efficient operations going forward. Workforce Housing Advisors pursued foreclosure proceedings against the original owner, eventually taking title to the five buildings after a foreclosure auction held on August 1, 2011. In March 2011 Harry De Rienzo, president of Banana Kelly Community Improvement Association, was appointed by the Bronx Housing Court as the 7-A administrator for the properties, effectively allowing him to address the unsafe and unsanitary conditions within the buildings, manage the day-to-day operations, establish legal tenancies, collect rent and perform the necessary repairs to keep the properties in stable condition until KSR acquired title. Monadnock, who serves as the general contractor, will complete the rehabilitation of all buildings by December of 2012, making Kelly Street a high quality place to live. With financial support from HPD, HUD and JP Morgan Chase, the total cost of acquisition and rehabilitation for the five buildings is totaled at approximately $16.5 million.

Brief Biographies of Project Partners:

Banana Kelly Community Improvement Association (BK): Founded in 1978 BK is registered as a 501 (c)(3) non-profit. BK is recognized by the community they serve and by New York City at large, as committed to the growth and independence of individuals, families, and to the self-sufficiency of the Longwood - Hunts Point community as a whole.

Established in 1975 Monadnock Construction has grown into one of the largest and most reputable residential contractors in the New York area. Monadnock's operations are supported by a staff that is experienced in all aspects of government compliance and reporting. Monadnock has a Contractors Controlled Insurance Program (CCIP) with dedicated safety staff monitoring all projects and a large bonding capacity from a AAA- rated company.

Workforce Housing Advisors (WFHA) is a for profit affordable housing development firm that operates at the forefront of the multifamily real estate market in the New York metropolitan area. WFHA works collaboratively with for-profit, not-for-profit, and government partners to reposition financially and physically distressed properties as long term affordable housing resources.

Exhibit 1 - Aerial view of Site within Community District

Exhibit 2 - Land Use

Exhibit 3 - Transportation

New York City Department of City Planning

Exhibit 4 - Drawings of Site (as-is with walls)

Exhibit 5 - Drawings of Site (without walls)

Exhibit 6 - Sample Lease Agreement (SEE ATTACHED)