946 CMR, § 2.03

Current through Register 1533, October 25, 2024

Section 2.03 - Criteria

(1)Threshold Criteria

(a) A development proposal must comply with:

1. The development scheme contained in the Redevelopment Plan, including specific requirements set forth therein (minimum parking requirements, etc.);

2. Use restrictions imposed by the Department of Capital Planning and Operations ("DCPO") and the General Court; and

3. Requirements of the RFP distributed for the subject property;

(b) A development proposal must demonstrate the minimum financial strength and ability of the entity submitting the proposal to proceed to implement the development plan in said proposal as evidenced by:

1. The financial strength of the entity, including audited financial statements for the entity and its principals;

2. The level of financial commitment to the proposal, including a detailed break-down of sources of funds available to implement the proposed development, including commitment letters indicating terms and conditions of financing; and

3. The legal ability to undertake and complete the proposal, as indicated by the following evidence of which must be submitted:

a. certificate of good standing from the Department of Revenue;

b. Certification that the development entity is qualified to do business in Massachusetts;

c. Legal actions pending or judgments against the entity; and

d. Any history of tax arrears, bankruptcies, indictments, or convictions.

(c) A development proposal must indicate that it will comply with local, state and federal environmental, zoning, and building statutes, ordinances and regulations, including M.G.L. c. 131 § 40, M.G.L. c. 30 §§ 61 through 62H, M.G.L. c. 9 §§ 26 and 27D and M.G.L. c. 21E.

(2)Performance Criteria

(a) Demonstrated development experience and capability of the entity, including:

1. Names and addresses of properties recently developed or currently owned; and

2. Resumes of all professionals working on the project.

(b) Demonstrated property management experience and capability of the entity, including

1. Names and addresses of all property managed by the entity or its proposed management agent;

2. Number of years in the management business; and

3. Number and qualifications of employees.

(c) Evidence of economic feasibility of the use or uses proposed by the entity submitting the development proposal, which may include:

1. Development Pro Forma indicating:

a. Cost of land and buildings;

b. Estimated hard construction costs, including demolition and site preparation;

c. Estimated soft costs including professional fees, financing fees, construction loan interest, real estate taxes, insurance and all other costs required to bring construction to completion; and

d. Estimated contingencies.

2. Operating Pro Forma for first six years indicating:

a. Projected income from rent or sales, including vacancy allowances;

b. Anticipated operating expenses;

c. Estimated real estate taxes including expected valuation;

d. Debt Service;

e. Date when property is expected to be sold or refinanced; and

f. Depreciation and other deductions indicating cash flow and returns on investment on an after-tax basis.

3. Feasibility and Market Studies;

4. Marketing Plan;

5. Management Plan; and

6. Pre-leasing or pre-sales commitments.

(d) Schedule for implementation of the development proposal and relation of said schedule to:

1. Timeliness in achieving the development goals set forth in the Redevelopment Plan.

2. The overall economic feasibility of the development proposal.

(e) Extent to which the development proposal exceeds minimum design guidelines contained in the Redevelopment Plan, the RFP, and any restriction imposed by DCPO and the General Court for development attributes the RFP designates as preferable, which may include the following considerations:

1. Massing, height and scale;

2. Pedestrian, vehicular, and service access, parking and circulation;

3. Public amenities, street and sidewalk improvements, public spaces and vistas;

4. Building materials;

5. Impacts on wind, shadow, daylight, ground water; and

6. Impacts during construction of the above.

(f) Extent to which the development proposal exceeds public purpose objectives and goals contained in the Redevelopment Plan, the RFP and any restriction imposed by DCPO or the General Court the RFP designates as preferable, which may include:

1. Employment:

a. Estimated number of construction jobs;

b. Estimated number of permanent jobs (retained and new);

c. Quality of permanent jobs;

d. Resident, minority, women hiring plans;

e. Linkages to local training programs, technical schools, universities, etc.; and

f. Backward and forward linkages to other Massachusetts industries and companies.

2. Housing:

a. Number of units for market, moderate- and low- income families;

b. Size of units, both in square feet and number of bedrooms; and

c. Amenities for residents

3. Increased tax revenues:

a. Current vs. projected taxes (including projected valuation); and

b. M.G.L. 121A payments.

4. Participation by local entities;

5. Potential for displacement and proposed mitigating measures;

6. Leveraging of private investment;

7. Kind, size, and extent of public subsidies;

8. Linkage payments, if any;

9. Other benefits; and

10. Mechanisms for sustaining public benefits over time.

(3)Price and Terms. All RFP's will specify a format or formats for submitting price and terms, will indicate which terms, if any, are subject to negotiation, and will indicate the procedures or formula by which the Bank will compute the net present value of each offeree's proposal.

946 CMR, § 2.03