Loading...
HomeMy WebLinkAboutR-85-0478- J-85-397a 5/7/8 5 5-478_ RESOLUTION N0. A RESOLUTION ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER FOR THE SELECTION OF CAN-AMERICAN REALTY CORPORATION AS DEVELOPER FOR THE DEVELOPMENT OF PARCEL 37 WITHIN THE SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT PROJECT PHASE I; AUTHORIZING AND DIRECTING THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE A CONTRACT WITH THE PROPOSER; AND FURTHER DIRECTING THE CITY MANAGER TO PRESENT THE NEGOTIATED CONTRACT TO THE CITY COMMIS- SION AS SOON AS PRACTICABLE FOR CONSIDERATION AND APPROVAL BY THE CITY COMMISSION PRIOR TO U { THE EXECUTION THEREOF. 1 i WHEREAS, the City Commission by Resolution No. 82-755, approved in principle, the Southeast Overtown/Park West Redevelopment Plan; and WHEREAS, by Resolution No. 84-893 the City Commission authorized the City Manager to issue a Request for Unified ' Development Project Proposals for the Southeast Overtown/Park West Redevelopment Project Phase I; and 6. WHEREAS, the City Commission selected Touche Ross & Co. as the certified public accounting firm and appointed members of a review committee; and r' WHEREAS, the request for proposals for the unified develop- s ment project contained specific evaluation criteria to be used by the certified public accounting firm and the review committee; and WHEREAS, proposals for the development of Parcel 37 were submitted by Can -American Realty Corporation and Cruz Development Company in response to the request for proposals on December 14, 1984 the published date for receipt of proposals; and WHEREAS, the certified public accounting firm developed a -` model to evaluate the viability of the development teams and their ability to maintain prices at proposed levels, the viability of the proposed financing strategies, the viability of - the proposed projects, and the short and long-range economic and CITY COVIMISSION MEETING Cj'r' MAY 9 1985 r #41N' 41, I fiscal return to the City and rendered its written report to the City Manager; and WHEREAS, the review committee received the presentations of the proposers and, after extensive analysis and discussion of the proposals, rendered a written report to the City Manager con- taining an evaluation of each proposal based on the specific evaluation criteria included in the request for proposals; and WHEREAS, the review committee adjudged two development teams as equally superior with respect to their proposals for the development of Parcel 37; and WHEREAS, the development teams were equally ranked by the certified public accounting firm; and WHEREAS, the City Manager, taking into consideration the findings of the certified public accounting firm and the evalua- tions of the review committee, recommends the acceptance of the proposal from Can -American Realty Corporation for the development of Parcel 37; and WHEREAS, on April 11, 1985, the City Commission accepted the recommendation of the City Manager for the selection of developers for parcels 24, 25, 36, 45, 46, 55, and 56; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recommendation of the City Manager is accepted and Can -American Realty Corporation is selected to develop parcel 37 in the Southeast Overtown/Park West Redevelop- ment Project Area Phase I. Section 2. The City Manager and the City Attorney are hereby authorized and directed to negotiate a contract with the aforementioned development team. Section 3. The City Manager is further directed to present the negotiated contract to the City Commission as soon as practicable for consideration and approval by the City Commission prior to execution thereof. :PC r BS-478.. lrwp i . P ILL, fiscal return to the City and rendered its written report to the =' City Manager; and WHEREAS, the review committee received the presentations of k:. the proposers and, after extensive analysis and discussion of the proposals, rendered a written report to the City Manager con- taining an evaluation of each proposal based on the specific evaluation criteria included in the request for proposals; and WHEREAS, the review committee adjudged two development teams as equally superior with respect to their proposals for the development of Parcel 37; and WHEREAS, the development teams were equally ranked by the certified public accounting firm; and WHEREAS, the City Manager, taking into consideration the findings of the certified public accounting firm and the evalua- tions of the review committee, recommends the acceptance of the proposal from Can -American Realty Corporation for the development of Parcel 37; and WHEREAS, on April 11, 1985, the City Commission accepted the recommendation of the City Manager for the selection of developers for parcels 24, 25, 36, 45, 46, 55, and 56; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recommendation of the City Manager is accepted and Can -American Realty Corporation is selected to develop parcel 37 in the Southeast Overtown/Park West Redevelop- ment Project Area Phase I. Section 2. The City Manager and the City Attorney are hereby authorized and directed to negotiate a contract with the aforementioned development team. Section 3. The City Manager is further directed to present the negotiated contract to the City Commission as soon as practicable for consideration and approval by the City Commission prior to execution thereof. Wa 4 PASSED AND ADOPTED this 9th day of May i 1985. TEST: Maurice A. Ferre '.1 ? MAURICE A. FERRE, Mayor RA PH G. ONGIE ` City Clerk PREPAREa AND APPROVED BY: -v .na ". JG Gp Assistan it Attorney AP OVED Tp F M AND CORRECTNESS: City Attorney RNS/wpc/pb/209 -3- r 85-4'78_.. A I tI" OF MIAMI, PLORIOA INTER-cF'FIct MEMORANDUM To. The Honorable Mayor and DATE. April lit 1985 FILM Members of the City Commission I` SUBJECT: S.E. Overtown/Park West ! Developer Selection _ City Commission Agenda PRO": Sergio Pereira REFERENCES: April 18 1985 r City Manager •� ENCLOSURES: ( 55 ) It is recommended that the City Commission approve the attached resolution selectin a developer for Parcel 37 of the Southeast Overtown Par- West Project pursuant to pro- cedures established or Unified Development Projects (UDPs) and to authorize the City Manager to initiate the preparation of dis- position agreements with said developers. The recommended development firm for Parcel 37 is the Can -American Realty Corporation. On July 31, 1984, the Miami City Commission approved Resolution No. 84-893 authorizing the issuance of a request for proposals for a Unified Development Project (UDP) for the Southeast Over- town/Park West Phase I Redevelopment Area, establishing a Selec- tion Review Committee, and appointing Touche Ross and Company to analyze the financial feasibility of the proposals. On December 14, 1984, the City of Miami received 20 proposals from nine developers for Phase I development. The Selection Review Committee met on January 2, 8, 22, 31, and February 13, 1985, to review the proposals. On February 13th the committee report was submitted to the Manager for review. Touche Ross & Co. completed their financial evaluation of competing redevel- opment proposals and submitted their report on January 30, 1985. On April 11, 1985, the City Commission approved the selection of developers for seven of the nine parcels in the Phase I redevel- opment area. Parcel-37 was held in abeyance until the Commission had additional time to review the proposals, and Parcel 44 will be reviewed in June when additional documentation will be avail- able concerning the sports arena. The selection of developers for Phase I redevelopment is the cul- mination of over two years of work by the City with the assis- tance of Dade County. The proposals recommended for approval Lido 85-4'76 - y k, i I 1 Mayor and Commission -2" April 12, 1985 i meet the objectives of the redevelopment program, which is to create a residential community within the downtown area geared for moderate -income families with some provision for low-income r residency, and to provide the impetus for the revitalization of the Overtown community. In planning for and seeking development proposals for Phase I of this project, the City has been concerned that true and substan- tial involvement of minorities be achieved. We are especially pleased with the level of minority participation in the proposals recommended. All of the recommended developers have committed to adhere to the participation goals established for the project, and this has been impressively exceeded by most. Almost all the development teams, including the general partners and support professionals, have minorities among the lead individuals. Of special note is the Circa/ Barnes a/ Sawyer group, which includes representation of a former project area property owner from Over - town and minority individuals as equity participants. The Cruz Development Company is a minority -owned firm. I. Project Background Phase I of this project is focused on public investment adjacent to -the Overtown Metrorail Station and along the 9th Street Mall. A nine -block Transit Station Impact Area has been designated as the location where public investment will be concentrated. This has been approved by the Miami City Commission (Resolution No. 83-972) and the Dade County Commission (Resolution No. R-1006-84). This area was selected due to its strategic location adjacent to the Overtown Metrorail Station and the Downtown Gov- ernment Center. Redevelopment within this area will maximize benefits to both the Park West and Overtown portions of the pro- ject area and leverage previous capital improvement expenditures plus committed public funds (Urban Initiatives Project). There are feasible development opportunities along the nine blocks surrounding the proposed 9th Street Mall and the Overtown Metrorail Station. Market forecasts indicate that this nine - block area is capable of supporting the development of approxi- mately 2,000 residential units and 250,000 sq.ft. of commercial space, to be phased in over a five-year period. The development program will be geared for moderate -income housing for families with an income range of $15,000 to $50,000. The development mix is predicated upon the identified market potential for the area (Hammer, Siler, George Associates analysis). 85-47& _'N Mayor and Commission -3- II. Solicitation of Developers April 12, 1985 r A concerted effort has been made to promote and market the South- east Overtown/Park West project area since the establishment of a project office in September 1982. A significant effort was made to attract developers locally, nationally, and internationally. Major marketing activities have included: -- Distribution of 900 marketing folders nationwide to potential developers, investors, etc. -- Distribution of 300 copies of the Phase I Request For Proposals nationwide. -- Publication of two editions of �Pro remi�ss, the Southeast Overtown/Park West newt ttter, distribution of 1,500 and 3,000 respectively. -- Preparation of numerous articles and press releases con- cerning the project. Information concerning the project has been printed in local and national publications. -- Hiring of a marketing consultant to assist in preparing a market strategy for the project. -- Sponsoring a developers conference on April 30, 1984, at the James L. Knight International Conference Center, attended by more than 200 people; and a presubmission conference held on August 30, 1984, with 60 persons in attendance. -- Appearances on local television, radio broadcasts, and before civic and business groups to promote the project. -- Distribution of over 1,000 flyers nationally promoting the project and development opportunities. Placed advertise- ments in the Wall Street Journal, the National Real Estate Investor Magazine and the local newspapers. -- Hosting a conference/workshop for minority contractors on August 9, 1984, at the City Administration Building. 85-4'78_- S I Mayor and Commission -4= 1 April 12, 1985 III. Response to the Request for Proposals r Written proposals were submitted by the following nine development teams: Affordable Housing Corporation 666 llth Street N.W., Suite 1103 Washington, D.C. 20005-4542 Can American Realty Corporation 1117 Marquette Avenue, Suite 200 Minneapolis, MN 55403-2457 Circa/Barness/Sawyer 628 W. Rittenhouse Street Philadelphia, PA 19144 Cruz Development Company 10 Fairway Street Mattapan, MA 02126 The Decoma Venture Suite 700 1110 Brickell Avenue Miami, FL 33131 Indian River Investments II, Ltd. 1023 N.W. Third Avenue Miami, FL 33136 New Washington Heights Community Development Conference, Inc. Culmer/Overtown Neighborhood Service Center 1600 N.W. 3rd Avenue Miami, FL 33136 Stocks Construction Florida 299 Alhambra Circle, Suite 512 Coral Gables, FL 33134 Walter Sweating & Associates, Inc. 5825 Sunset Drive, Suite 210 Miami, FL 33143 85-4'78-_ r v, _ y I Mayor and Commission X { T -5- SMART OF PtOPOSALS FOR PHASE I OEVELOPNERT April 12, 1985 Parcel Residential Commercial Number Proposer's Name Units Sq.Ft. 24 (a) Cruz Development 386 R 30,000 (b) Stocks Construction 350 R 15,000 (c) Can -American Realty Corp. 350 R 30,000 25 (a) Cruz Development 199 R 15,875 36 (a) Cruz Development 221 C 25.000 (b) Affordable Housing Corp. 174 C 20,000 37 (a) Cruz Development 386 R 30,000 (b) Can -American Realty Corp. 350 R 30,000 44 (a) Affordable Housing Corp. 304 C 20,000 (b) Halter Sweeting i Assoc. Inc./ 248 C •- Angles, Esteban (joint venture) (c) Circa/Barness/Sawyer 426 C -- (d) Decoma Venture •- Centrum Arena •- 45 (a) Affordable Housing Corp. 46 C -- (b) Circa/Barness/Sawyer 225 C 33,800 46 (a) Indian River Investments II Ltd. 152 C -- (b) Affordable Housing Corp. 484*C 20,000* 55 (a) Affordable Housing Corp. 484*C 20,000* (b) Circa/Barness/Sawyer 150 R 14. C 292 41.800 56 (a) Circa/Barness/Sawyer 91 R 60 C 151 63,200 (b) New Washington Heights -- 200 Room Community Development Conference Hotel 1/30/95 *Combination of parcels 55 and 46 R a Rental C • Condominium 85-4'78_ _ =1i .T h F t . i b i tr, 04 Mayor and 'Commission =6- I W. Report of_theSelection Review Committee April 12, 1985 On February 13, 1985, the Phase I Selection Review Committee sub- mitted their report to the City (note attachment). The Selection Review Committee held interviews with each of the development teams for each of their submissions (20 interviews) and exten- sively reviewed each of the proposals. The Selection Review Committee recommended the following devel- opers for Phase I development: Parcel No. 24 Developer: Cruz Development Company Uses Proposed: 386 Rental Units 30,000 Sq.Ft. Commercial Space 425 Parking Spaces Parcel No. 25 Developer: Cruz Development Company Uses Proposed: 199 Rental Units 15,875 Sq.Ft. Commercial Space 220 Parking Spaces Parcel No. 36 Developer: Cruz Development Company Uses Proposed: 221 Condominium Units 25,000 Sq.Ft. Commercial Space 248 Parking Spaces Parcel No. 37: A tie, with two developers equally ranked. Developers Can -American Realty Corporation Cruz Development Company Uses Proposed: Can -Am: 350 Rental Units 30,000 Sq.Ft. Commercial space 395 Parking Spaces Cruz: 386 Rental Units 30,000 Sq.Ft. Commercial Space 425 Parking spaces Parcel No. 44: Housing Use Developer: Circa/Barness/Sawyer Uses Proposed: 426 Condominium Units 430 Parking Spaces Sports Arena Use Developer: Oecoma Venture Uses Proposed: Sports Arena (See Oecoma Proposal) 85-4'78__ k r' t i Mayor and Commission r7- April. 12-, 198S Parcel No. 45 Developer: Circa/Berness/Sawyer Uses Proposed: 296 Condominium Units 33,800 Sq.Ft. Commercial 275 Parking Spaces Parcel No. 46 Developer: Indian River Investments II, Ltd. Uses Proposed: 152 Condominium Units 152 Parking Spaces Parcel No. 5S Developer: Circa/Berness/Sawyer Uses Proposed: 160 Rental Units 142 Condominium Units 41,800 Sq.Ft. Commercial 425 Parking Spaces Parcel No. 56 Housing Use Developer: Circa/Berness/Sawyer Uses Proposed: 91 Rental Units 60 Condominium Units 63,200 Sq.Ft. Commercial Space 215 Parking Spaces Parcel No. 56 Hotel Use Developer: No recommended developer. • �, a. _-�� :a ' :�• �� tee' i : -� - •��' . �� 44 17, RIND • Yam..... Y...N Rtw� AW■ SP Inv -- I a iLh 85-4'78__ a .1) Mayor and Commission -8- April 12, 1985 The committee evaluated developers in terms of their abilities to develop individual parcels for which they submitted proposals, based only upon the evaluation criteria established by the City Commission and included in the RFP. However, since the results of the evaluations and rankings include recommendations for two developers for multiple parcels, it was recommended that the City Manager further evaluate the developers' capabilities for doing these multiple parcels before making final recommendations to the City Commission. Touche Ross & Co. has prepared this analysis and has concluded that these firms have the financial capability to undertake multi -parcel development (note attachment). The committee has attached to its recommendations some important considerations that they believe are crucial tc. a successful pro- ject implementation: 1. The financing data submitted with the recommended Phase I development proposals show that most of the projects are not feasible without additional public subsidies and special financing programs. It is, therefore, important that the City move uig_ckly to conclude the selection process and help the developers secure this assistance. Federal budget deci- sions and 1985 tax legislation may reduce or eliminate some of these subsidies in the very near future. Even though federal funding for Urban Development Action Grant (UDAG) projects is in place until the end of the cur- rent federal budget year (and appears to stand a reasonable chance of being continued in the next year), UDAG assistance is not assured. Miami does not rank high under the current UDAG eligibility criteria relating to distress and impaction, which favors older northeastern industrial cities. Congress is now considering changes in the eligibility formulas that might help Miami's standing, and those changes could be in effect by the time our project application is reviewed. 2. The committee sees a need for the City to act as a master coordinator for the timing, phasing, and marketing of devel- opment on individual parcels. This is important for the creation of an initial critical mass to give the area market appeal to the first prospective renters and homebuyers. Mas- ter coordination can also insure that initial construction will not be concentrated in a single location in the Phase I area but will occur on a more balanced basis on several par- cels. Adjustments in the stated construction timetables for the individual parcels may need to be made. 3. The City must also assume an active role in insuring design compatibility, particularly among those adjacent parcels Undertaken by different developers. 85-4'78__ r 1 1 i Mayor and Commission a r -9- April 12, 1985 V. Financial Analysis s I Touche Ross & Co. prepared an independent financial analysis of each of the 20 development proposals, pursuant to the procedures Ir established for unified Development projects, which was utilized by the Selection Review Committee in their review. The Touche Ross & Co. analysis consisted of an evaluation of the developers' financial strength as well as the project proposals. The ele- ments reviewed include: -- the viability of the development teams and their ability to secure financing and maintain prices at proposed levels; -- the viability of the proposed financing strategies; -- -the viability of the proposed projects; and -- the short- and long-range economic return to the City. Based on this analysis, the following parcel ranking was estab- lished. ( It should be noted that a total score of less than 70 on a particular parcel indicated the lack of project viability.) TOUCHE ROSS A CO. RANKING BY PARCEL PARCEL FIRST SECOND THIRD 024 Cruz Can -Am Stocks (96) (88) (82) 025 Cruz (97) 036 Cruz Affordable (97) (57) 037 Cruz Can -AN (94) (94) 0" C/B/S Oecoma Affordable (95) (55) (55) #45 C/B/S Affordable (90) (SS) 046 I.Rirer Affordable (73) (58) 055 C/B/S Affordable (94) (55) 056 C/B/S New Wash. (97) (45) FOURTH W.Sweetinq (46) 85- 4 / 8--- Mayor and Commission VI. Developer Recommendations �10 April 12, 1985 Taking into consideration the recommendations of Touche Ross & Co., a certified public accounting firm, and the Phase I Selec- tion Review Committee, the following developer is recommended for redevelopment of Parcel 37, pursuant to the procedures for Unified Development Projects, as set forth in the City of Miami Charter Section 53(c) (ranked by preference per parcel): Parcel No. 37: (1) Can -American Realty Corporation (2) Cruz Development Company The first -ranked developer is the preferred choice and the other listed developer should be considered only if the City is unable to negotiate a disposition agreement with a first -ranked devel- oper. These recommendations are consistent with the Touche Ross & Co. financial evaluation and the Selection Review Committee report. Information concerning Parcel 37 is attached for your review. It should be noted that both the Can -Am and Cruz Devel- opment responses to the RFP were determined by the Law Department to be complete. Both Touche Ross & Co. and the Selection Review Committee ranked Can -American Realty Corporation and Cruz Development as equally qualified. we are recommending Can -American for the development of this parcel based on the overall benefit to the project of having multiple developers which will lessen the impact on the project if a developer defaults. The Can -Am project design, amenities, interior -block parking arrangement and security plan were all given high marks. To achieve the lowest possible rents, Can-Am's financial plan requires a very large front-end public subsidy. Should this be impossible, Can -Am also listed financing schemes that could substitute for HoDAG or UDAG subsidies to keep rental rates to marketable levels. The Can -Am organization has a substantial net worth and has recent successful experiences in the development of similar, UDAG-supported, projects in Minnea- polis and Baltimore, and it is already heavily involved in real estate development in Florida. Can -American Realty Corporation, in its =espouse to the RFP, did not provide detailed information on minority participation but stated that it would meet the pro- ject goals. In their response to the RFP, Can -Am provided an example of an affirmative action program that they developed for a project in Minneapolis and indicated that they would do the same for this project (note attachment). Detailed information supplementing previously submitted information on minority participation was provided at the public hearing for developer selection (note attachment). '. 85--475. _ 1 Y. s a 3 ATTACHKEn 1 Excerpt from the Touthe Ross & Company Financial Evaluation of Competing Redevelopment Proposals, January 30, 1985 soUTFIEAST OVERTOWN/PARK WEST REDEVELOPMENT PROJECT FINANCIAL EVALUATION OF COMPETING REDEVELOPMENT PROPOSALS January 30, 1985 ToucheRoss &Ca 85-4 78, R P1 ►A 14 Soutbeast Overtow pork west Redevelopumt Financial Evaluation Project Viability A. Pro.;ect Reasonable • Occupancy i yr. 1 i 2 • Phasing/1st year • Construction Cost/S4. Ft. • Pricing/8ase Year Subtotal 1. Financing Strategy • Interest rate Level/type - Achievaoility • Method (Y/N) Subtotal C. Developer Viability A i story - Yet Worth • Financial Record No litigation No bankruptcy Suototal Return to City A. Measurable (Y/N) ft Lana lease - Tax revenue Subtotal L quantitative Return • NPV (Scaled lest to Want) • Increrntal Tax Rev. Tian horizon Subtotal C. Ressonaoleness (Y/N) allD TOTAL TOTAL CAM POINTS CRYZ ANMCAN AVAILABLE DEVELOPMENT REALTY COW 6 3 6 a 6 8 g 8 8 11 i I1 33 ' 28 32 t 1 1 2 2 Z 9 9 4 12 12 12 7 7 7 6 7 3 3 3 4 4 4 21 20 21 S 5 10 5 3 2 10 14 lff:-1 al l- Parcel ft. 3 85-4'7f. P,i y3 L 2 ►47 I Seethaut Ovate/hok Writ Redevelopment Financial Evalustton Project Viability A. araiect Romania • Occupancy s yr. 1 i 2 • Phasin4/ist year • Construction C4st/S4. Ft. • Pricing/ease Year Subtotal 1. Financing Strategy - Interest rate • Level/type • Achieve llity • MOWN (Y/N) Subtotal C. Oevelop�or Viability - History • Yet North Financial Record No litigation No ban nptcy Subtotal Return to City, �►. Koasuesblo (YlN) Lana lam - Tax revenue Subtotal L quantitative Return NPV (Scaled nest to Worst) • Incremental Tax Rev. • Time Horizon Subtotal C. Roasonaoleness WN) AMC TOTAL TOTAL CAN Points CMZ A1ERIC'AN AVAILABLE OEyEL� T REALTY LW.i - 5 3 5 8 6 8 9 8 8 11 1 11 33 ' 28 32 1 1 1 2 2 2 9 9 9 12 12 1Z 7 7 7 6 7 3 3 3 4 44 21 20 21 5 5 10 5 3 2 10 14 panel No. 3 M .� p,TtAcmcm 2 E%CetPt from the Repot Of the Seleetiou as Review comittee ou Deve-11"Pseut phase I Redevelopment Areat Yebtuary 1985 �y of rn�m; m SOUTiIEAST OVERTOWN/PARKWEST . REDEVELOPMENT PROJECT REPORTOF THE SELECTION REVIEW COMMITTEE DEVELOPMENT PROPOSALS PHASE I REDEVELOPMENT AREA FEBRUARY 1985 85--476 - I I X 11 X ■ ■ it wnereny the selection Revzou developers of equal ranking. Equally Ranked Developer: Proposal: Private investment: Financing Plan: ttee Can -American Realty Corporation 350 Rental Units. (Number of units affordable to low and moderate income families varies, depending upon financing plan alternatives.) 30,000 square feet commercial space. Parking for 395 cars. $21,256,625 This project utilizes graduated payment tax exempt bonds for permanent mortgage !inancing and syndication -raised equity. The project requires the commitment of $7,000,000 loan of supplemental public assistance from UDAG or SoDAG or other sources to be invested and utilized, with earnings, as a declining subsidy to achieve the proposed affordable rents during the first 15 years of the project. (This would make nearly all units affordable to low and moderate income families.) Loan is to be repaid from resale proceeds or future cash flows. An alternative to the public -source loan was also proposed, whereby bond holders can convert to equity positions in years where project income cannot support full interest payments. Under this plan, rental rates would have to be higher. Minority Involvement: Construction hiring and contracting at 50 percent minority. No other involvement identified at this time. Equally Ranked Developer: Proposal: Cruz Development Company 386 Rental Units, with at least 58 units affordable to low and moderate income families. 30,000 square feet commercial space. -14- 85-4'78_ :. 'i rF rS i 7 f Parking for 435 cars. Private Investment: $29,545,144 Financing Plan: This project utilizes tax exempt rate permanent mortgage financing available through the Dads County Affordable Rental Housing Program and syndication -raised equity. The project requires the commitment of $911,327 in supplemental public assistance from UDAG, HoDAG, CDBG or other sources to achieve a debt service coverage of 1.2:1 for years 3 through 6 inclusive. This would be repaid from subsequent project cash flows or from net proceeds at time of sale. Minority involvement: General partnership proposing development is 100 percent minority -owned. Construction hiring is to be 50 percent minority, with contracting to be 30 percent minority. By a tie vote, Cruz Development Company (Cruz) is equally s: preferred by the committee for Parcel 37. Cruz has an h established team that has experience in working together. It .. has been involved in inner-city residential rental development elsewhere. The principals have a substantial combined net worth and will sign personally, if necessary, to secure financing. Their proposed construction company and local architects have reputations for good work. The development design shows good building arrangements, larger than minimum unit sizes and more h'= than the minimum required parking spaces. :Minority involvement is excellent and well-defined. By a tie vote, Can -American Realty (Can -Am) is equally preferred by the committee for Parcel 37. The project design, amenities, interior -block parking arrangement and security plan were all given high marks. To achieve the lowest possible rents, Can-Am's financial plan requires a very large front-end public subsidy. Should this be impossible, Can -Am also listed financing schemes that could substitute for HoDAG or UDAG subsidies to keep rental rates to marketable levels. The Can -Asa organization has a substantial net worth and has recent successful experiences in the development of similar projects in Minneapolis and Baltimore, which were UDAG-supported, and it is already heavily involved in real estate development in Florida. IComposite committee rank scoring shoot follows this page. 1 =15- 85-4'76 _. 10 A MAU' VOTING SwLa'G'"�0:1 C :n the voting balow, ooMittee member3 were a3k94 to rank their top choice as "1" and their second ':voice as "2". A "'" received 2 oint3 and R "2" received one point. ; or same parcels, the :ommittae voted separately to not recommend the proposal receiving the :over pout scow.) ?or parcels or land use .ategoriese shers there was only one proposal beiag evaluated, committee members used "Recommend" or "Not Recommend" instead of "t" or "2". If a majorit7 of the committee voted "Recommend", the developer was recommended, and if the committee majority voted "'Ut lecommend", the ieveloper was not recommended. ?ARCEL :10. 37 l:+:tD CO USE A:EGORY: b4us�1WA O DEVELOPER 4AN - AM DVISLOPER G� y �ca�c:1 I Z 'J•.r:rN HUNT y 1 PRESTMO I Z ?r"�.r l 3..... Z xCCRIP? Z t 3CDR_3JEZ Z i • i TC.A.., # I"23" ,. T is n"I"A . „= OF X. "R ECW0441C E10 ".1G': RECOe D" For Parcels 44 and 36, the comaittda 3ep4:s; ! :and •:ses. -16- 85-4 (£ . - P Y N EXPERIENCE OF TEAM FINANCIAL CAPABILITY FINANCIAL RETURN PROJECT OESIGH MINORITY PARTICIPATIO Cw^NFORMANCE TO PROGRAM PRIORITY RANKING CONTIGUOUS PARCELS EXPERIENCE OF TEAM FINANCIAL CAPABILITY • i RECORD OF COMMITTEE RANKING ON PARCEL It PROPOSALS FOR EACH EVALUATION CRITERIA LISTED IN PART IV DEVELOPER- CRUL DEVELOPMENT COMPANY RUMITCH GORDON GREEN HUNT PRESTANO REEVES FLETCHER GEREAUX MACBErn MWIFF KUmtravu I mow,Lim , t DEVELOPER: CAN-AMERICAN REALTY CORPORATION RUVITCH GORGON GREEN HUNT PRESTANO REEVES FLETCHER GEREAUX MACBETH MCGRIFF RODRIGUEZ FINANCIAL RETURN I PROJECT DESIGN 1 1 MINORITY A i PARTICIPATIONO ' CONFORMANCE ;; ! TO PROGRAM {i PRIORITY RANKING CONTIGUOUS !I PARCELS — J. 1 2 2 Z 1 I 85-4'76 - 1 4 ATTACHMENT 3 Can -American Realty Corporation Minority Participation Plan, December 14, 1984. H CA i-Ai•?a',ICAN ^IZA:.aY C3RPO:ZATI0ir . ,i SCJT:I'ZAST OVE:TOWN /2ARI: ,:EST APARCEL 37 REDEVELOP::ENT PROPOSAL ' DECUIBER 14, 14304 t .7!+T! �' .. � tiro �.»�'".-=?�"-:c:'i=' �.y :►.r�.,r: ,..�' •, » .N►. _ �; �5,�^ •� ,,,,.:• .•� •':. �. �,M r� st`� ti!'!IYti ��,.it�'}.. sa' �'C'�' �Ir. 'mit .;• x.. .s;� nr.R• '�Cit` r'{ .. ` . ` i , 'S••,t�7. • a.... ,.� . ... 'teu. � ��' •� ~ ; is.- di.-'"�; •i� - fix•. �- i-•� '°p,�61}.�`�'y ,r,M .. . ,v. r •r spy ' ,: •'�i:,•t s+ r.. 'y^^I�'� �i' i • 1= '.;y.!_ ice• „�•r.�'_ y�,js 1.. 9tA • .. , ` RK^•"+"/,#40 ifs'. �11.: "•.M1�. �{ �y�,� , �•fj, • _ rr � •�R•�'• • ��. �! S�i..�Ki.y � •1 - .w4/ aY- • • '4. ���, `r 't� .. s 'a !L s ��i• ;wl •..�� _W..te �—�M3F+i► � �ir�"� 85-4178_. P 4 RICHARD S. KAHN, 32, Vice President. Mr. Kahn is also Vice President of Can -American Corporation. He is in charge of all development activities for the Can -American Group in the Minneapolis area and Southeast Florida, as well. Prior to joining the Can -American Group in 1976, Mr. Kahn was employed by the Minnesota Housing Finance Agency for three years. Mr. Kahn holds a Bachelor of Arts Degree from Carleton College, and a Juris Doctorate from William Mitchell College of Law. MARK K. JOSEPH, 45, Vice President. Mr. Joseph is also President of Shelter Development Corporation Limited, which is a subsidiary of Can -American Realty. Since 1975, he has been in charge of all development activities for the Can -American Group in the Baltimore area. Since 1973, Mr. Joseph has been a partner in the Baltimore law firm of Gallagher, Evelius & Jones. From 1971 to 1973, he served as an assistant to the Mayor of Baltimore and the City Development Coordinator, and was Deputy Housing Commissioner for the Baltimore City Department of Housing and Community Development during the years 1968 to 1971. Mr. Joseph holds a A.B. Degree from Brown University and an L.L.B. from Harvard Law School. ARNI C. THORSTEINSON, 35, Treasurer. Mr. Thorsteinson is also Executive Vice President of Shelter Corporation of Canada Limited ft, and of Shelter Holdings, and is Treasurer of Can -American Corporation. Prior to joining Shelter in 1976, Mr. Thorsteinson was employed by Richardson Securities of Canada, initially as a financial analyst and later as an underwriting executive. His background includes real estate finance and equity investments. Mr. Thorsteinson holds a Bachelor of Commerce Degree from the University of Manitoba and was awarded the designation of Charted Financial Analyst in 1974. 1W. 3(1) Minority Participation Plan By agreement with the City of Minneapolis and a community organization, our Seven Corners Apartments project was built in accordance with an Affirmative Action Plan which incorporated minority employment and subcontracting goals considerably in excess of the usual goals for City -assisted projects. Attached (Section 16) is a copy of this Affirmative Action Plan and an excerpt from the Construction contract on that project which not only compelled the contractor to comply with our Plan, but also gave us a meaningful mechanism for enforcing the contractor's compliance. We propose to do exactly the same for this Project, incorporating the goals set forth in the Request for Proposals. 3-3 85.-4 7FS.. . I ,1. v W The time available for preparing our proposal has not been sufficient to put into place the kind of minority participation in the non -construction side of the Project, including equity ownership, that the City would deem appropriate (no rent -a- citizens). We fully intend to ultimately meet or exceed the City's goals and expectations for minority participation. 3-4 ft r 85-4'78__. F AFFIRMATIVE ACTION PLAN FOR SEVEN CORNERS HOUSING PARTNERS Revised 7/29/82 85-4'78, _ I. A. I. B. I. C. I. D. I. E. I. I. I. I. I. I. F.1 F.2 G.1 G.2 H. I. A. B. C. SEVEN CORNERS HOUSING PARTNERS 1906 NpC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1865 TABLE OF CONTENTS Table of Contents . . . . . . . . . . . . . . 1 Description of Work/Economic Forecast 2 Organization of Company/Relationship with Subcontractors . . . . . . . . . . . . . . . 3 Equal Opportunity/Affirmative Action Policy Statement - June 16, 1972 . . . . . . . . . . 4 Designation of EEO Officer/Implementation Responsibilities . . . . . . . . . . . . . . . 6 Dissemination Methods - Internally. 9 Dissemination Methods - Externally. 10 Recruitment - Procedures. . . . . . . . . . . . 10 Recruitment - List of Recruitment Sources . . . 10 Employee/Staff EEO/AA Orientation . . . . . . . 21 EEO Grievance Process . . . . . . . . . . . . . 22 Goals for Construction Workers. . . . . . . . . 23 Goals for Non -Construction Workers. 24 Women and Minority Business tW/MBE) Goals 25 Internal Audit Progress Reporting System. . . . 26 Subcontractors . . . . . . . . . . . . . . . . . 27 Signatures . . . . . . . . . . . . . . . . . . . 28 r 65--4'78M --tu. a A SEVEN CORNERS HOUSING PARTNERS 1906 NFC 'Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1865 I. B. DESCRIPTION OF WORK/ECONOMIC FORECAST Pursuant to a Contract for Sale and Development of Certain Land and an Urban Development Action Grant Agreement, Seven Corners Housing Partners, a Minnesota limited partnership, will construct a 248-unit rental housing project on a site in Minneapolis. The project is expected to start construction this Fall, and be completed in the Spring of 1984. Seven Corners Housing Partners does not presently have any employees, and does not anticipate hiring any employees in the future. The Project will be known as Seven Corners Apartments. 85-4'76 r M SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1863 I. C. ORGANIZATION OF COMPANY/RELATIONSHIP WITH SUBCONTRACTORS Seven Corners Housing Partners is a Minnesota limited partnership. The Project will be constructed by an independent general contractor, pursuant to a construction contract. There will be no direct relationship between the owner and any subcontractor. Seven Corners Housing Partners 1% 1% 9 8% Can -American Realty West Bank CDC Investor Limited Corporation, General General Partners Partner Partner -3- r 85-476._. SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1865 I. D. It is the policy of Seven Corners Housing Partners (the "Company") to take Affirmative Action to ensure that women, minorities, and handicapped persons are adequately represented at all levels of Company employment. The Company is committed to affirmatively seeking out, addressing and remedying the effects of present and past discrimination that may present barriers to the full employment -of these persons. This will include establishing reasonable goals and timetables for the hiring and ' promotion of women and minorities. t. It is the policy of the Company to ensure nondiscrimination in recruiting, application, selection, hiring, placement, job assignments, training, compensation, benefits, promotions, upgrading, disciplinary actions, transfers, layoffs, recalls, terminations, educational opportunities, employee social and recreational programs, Company facilities and service, Company sponsored activities and other conditions of employment, regardless of race, color, creed, religion, ancestry, national f`; origin, sex, affectional preference, handicap, marital status, ' status with regard to public assistance, Vietnam era veteran . status, or age. It is the policy of the Company to comply with all r applicable Equal Employment Opportunity/Affirmative Action laws ' and regulations promulgated at the Federal, State, or Local level, specifically including the Minneapolis Civil Rights Ordinance (CH 139.10 - 139.60; CH 141.10 - 141.80), Title VII of the Civil Rights Act of 1964, and Chapter 363 of Minnesota Statutes.. It shall be considered a violation of this policy for any person to retaliate against a person for pursuing his/her rights under this policy, opposing acts he or she reasonably feels violate this policy, or cooperating with investigations into alleged violations of this policy. It is the policy of the Company to prohibit harassment because of the race, sex, or national origin of any employee, applicant for employment, or subcontractor. Any employee not complying with this Policy Statement or the Company's Affirmative Action Plan shall be subject to disciplinary actions. Any contractor of the Company not in compliance shall be subject to legal sanctions. -4- b SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota SS431 Phone (612) 835-1865 I. D. EQUAL OPPORTUNITYIAFFIRMATIVE ACTION POLICY Further, it is the policy of the Company to take affirmative action to ensure using the goods and services of minority and female business enterprises in the community. To implement this policy, the Company has developed a comprehensive plan of action. This plan sets goals and timetables for the hiring and promotion of women and minorities. This plan shall have priority in all personnel actions and management decisions. Good faith efforts toward the attainment of these goals shall be considered in the performance appraisals, merit increases, promotions and retention of all Company managers and supervisors. The Company's Equal Employment Opportunity Officer shall have full authority and the Company shall commit the necessary resources, both human and financial, for the administration of the Company's Affirmative Action Plan. The President and all other officers of the Company are individually and collectively committed to implementing this policy and the Company's Affirmative Action Plan. SEVEN CORNERS HOUSING PARTNERS By: Can -American Realty Corporation, General Partner Garrett G. Carlson, President -5- 85-4'78, i i i - y SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1865 I. E. DESIGNATION OF EEO OFFICER/IMPLEMENTATION RESPONSIBILITIES Seven Corners Housing Partners fully endorses the principal _ of Equal Employment Opportunity as ,set forth in the Company's Policy Statement. '= Richard S. Rahn is hereby appointed as Equal Employment { Officer, with full authority for the administration of the Company's Affirmative Action Plan. All policies and procedures of this Company will be analyzed on a continuing basis to ensure that the full spirit and intent of our stated policy is being adhered to in every respect. k: The Company is committed to a firm and just policy of Equal Employment Opportunity, and the Company expects the cooperation of every employee of this Company. Any deviation or willful departure from this concept of fair ::. and equitable treatment for all employees will be reported }}' directly to me and may be cause for dismissal. Any person who believes he or she has been discriminated against on the basis of race, color, creed, religion, ancestry, national origin, sex, -:i affectional preference, handicap, marital status, status with regard to public assistance, Vietnam era veteran status, or age, should contact the Equal Employment Opportunity Officer. Richard S. Kahn is designated Company EEO Officer. His responsibilities include, but are not limited to, the following: I. Developing policy statements, Affirmative Action Programs, internal and external communication techniques. 2. Assisting in the identification of problem areas. 3. Assisting line management in arriving at solutions to problems. 4. Designing and implementing audit and reporting systems that will: -6- r 85-4'78__ a r l SEMEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1865 I. E. DESIGNATION OF EEO OFFICER/IMPLEMENTATION RE; A. Measure effectiveness of the Company's program. B. Indicate need for remedial action. C. Determine the degree to which the goals and objectives are progressing. D. Maintain and review necessary records. 5. Serving as liaison between the Contractor and enforcement agencies. 6. Serving as liaison between minority organizations, women's organizations, handicapped organizations, and community action groups concerned with employment opportunities of minorities and women serve as to recruit minorities. 7. :seeping management informed of latest developments in the entire equal opportunity area. 8. Giving assistance to managers and supervisors in the establishment of appropriate goals and timetables. `+3 9. Participating by active involvement with local minority organization, women's organizations, handicapped organizations, community action groups, and community service programs. 10. Auditing of Training Programs, hiring and promotion patterns to remove impediments to the attainment of goals and timetables. 11. Discussing the EEO Program regularly with managers, supervisors, and employees to assure that the policies and procedures are being adhered to. 12. Reviewing qualifications of all employees on a continuing basis to assure that minority, female, and handicapped employees are given full opportunities for transfers and promotions. 13. Counseling all employees regarding career development and promotion potential. -7- 85-4'76.. r i �r a $' SEVEN CORNERS HOUSING PARTNERS ftw a 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota, 55431 Phone (611) 835-1865 i. E. I ON OF EEO OFF ICER/IMPLEMENTATION RESPONSIBILITIES 14. Insuring that posters are properly displayed. 15. Insuring that all facilities, including Company housing, are desegregated. 16. Insuring that minority, female, and handicapped employees are afforded a full opportunity and are encouraged to participate in Company -sponsored educational, training, recreational and social activities. 17. Insuring that supervisors understand that their work performance will be evaluated on the basis of their EEO efforts and results, as well as other criteria. 18. Insuring that supervisors understand it is their responsibility to take actions to prevent harassment of employees placed through affirmative action efforts. 19. Insure that all salaries, wages, hiring, layoffs, promotions, transfers, fringe benefits, opportunities for training, opportunities for overtime, demotions are decided upon without regard to race, religion, color, national origin, sex, creed, ancestry, affectional preference, handicap, marital status, status with regard to public assistance, Vietnam era veteran status, or age. 20. Thoroughly investigate any worker's or applicant's complaint of discrimination. 21. Encourage minority contractors and subcontractors to submit bids for the Project. Give special attention to those who recruit from the local community. 22. Counsel and assist minority craftsmen who are potential subcontractors and subcontractors on securing bonds, writing ' contracts, making competitive bids, and keeping necessary legal and financial records. .r -8- r 85-4'78- 0 t SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 1900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 833-1865 I. F. DISSEMINATION METHODS 1. INTERNALLY 1. The Company's policy statement will be contained in the Company policy manual which is updated annually. ' 2. All Company publications and annual reports will contain -� an EEO statement. I. Ar 3.. Quarterly meetings will be conducted with executive, management and supervisory personnel to explain intent of policy and individual responsibility for effective implementation, making clear the attitude of the chief executive officer. 4. Each supervisor will be responsible for communicating ' the policy to each employee under his or her supervision, at least semi-annually, and a report of this action taken will be entered into the EEO Officer's file. x~an1rGX a. 5. EEO will be a part of all employee orientation and } training programs. r: 6. Company representatives will meet with union officials 'era. at least annually to inform them of the corporation EEO policy. 7. A nondiscrimination clause will be included in all union agreements. 8. Company internal publications will be used to Iive publicity to EEO progress, such as significant minorityfemale promotions. 9. EEO policy will be posted on all bulletin boards. 10. When employees are featured in a product or consumer advertising, employee handbooks or similar publications both minority and non -minority men and women employees will be ' pictured. 11. The Company will communicate to all employees the existence of the employer's Affirmative Action Program and make the program available to them so they can avail themselves of its benefits. -9- 85-4'7F__ t SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1865 I. F. DISSEMINATION METHODS - Continued 2. EXTERNALLY 1. Effective immediately, recruiting sources will be informed orally and in writing of Company policy, stipulating that these sources actively recruit and refer minorities, women, s and handicapped persons for all positions. 2. The EEO clause will be placed in or attached to all purchase orders, leases, and contracts covered by Executive Order 11246, as amended, and its implementing regulations. 3. Minority, women's and handicapped organization, community agencies, community leaders, secondary schools and qUW colleges will be notified of Company policy, in writing. 4. The Company will communicate to prospective employees the existence of the employer's Affirmative Action Program and make the program available to prospective employees so they can avail themselves of its benefits. fto 5. When employees are pictured in consumer or help wanted advertising, both minorities and non -minorities, men and women should be shown. 6. Written notification of Company policy will be sent to all subcontractors, vendors, and suppliers certifying policy. -10- 85-4'78_:. 0 10 r SEVEN CORNERS HOUSING FARTMERS 1906 NFG Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1865 I. G. RECRUITMENT I. PROCEDURES The Company will contact protected class oriented organizations on a regular basis, making known any present and projected future job openings. All such organizations shall be strongly encouraged to identify prospective applicants for all lobs. Job opening advertisements, with an "EEO Employer W/M/H" egend, will be placed in protected class oriented media, including: La Voz, The Circle, LaRoza, Spokesman, and Courier. 2. LIST OF RECRUITMENT SOURCES Please refer to attached list. -11- 85 -47s. ' r It I SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota S5431 Phone (612) 835-186S I. G. RECRUITMENT i 1. PROCEDURES The Company will contact protected class oriented organizations on a regular basis, making known any present and projected future job openings. All such organizations shall be strongly encouraged to identify prospective applicants for all jobs. Job opening advertisements, with an "EEO Employer W/M/H" legend, will be placed in protected class oriented media, including: La Voz, The Circle, LaRoza, Spokesman, and Courier. 2. LIST OF RECRUITMENT SOURCES Please refer to attached list. -il- 85-47fi. r • rl! • RECRUITHENT.RESOURCES Saearls Romans Therapy Collective • Kathy Winecoff 2619 Garfield Soutb Minneapolis. MN 55408 ' 872-8866 YWCA (Career Clinic) Kathy Adam 1130 Hicollet Avenue Minneapolis, M SS403 332-OSO1 Womens Component (Urban League) Brenda Reid 1210 Glenwood Avenue North Minneapolis. MN SS405 .r 374-2S30 • Chrysalis Kathryn Ssymoniak • 2104 Stevens Avemn South Minneapolis, M S5404 371-0118 Working Opportunities for Women/Displaced Homemakers- Marita Honer 2344 Hicollet Avenue. Suite 240 Minneapolis. MI SS409 874-6636 Minnesota "omens Center • Anne Truax , 322 Walter Ubrary if7 Pleasant Street Southeast Minneapolis, 1N SS45S MIN Marie Collins r3rd 'Floor Unemployment 341-7410 ., CIIMT (Center for Humanism 3 Resource Training) Nancy Cosgriff • 123 East Grant Street 11210 Minneapolis, !N 55403 (Wesley Temple Building - by Auditorium) 171-9100 -12- r + • An �z Minneapolis kosen for better Job! Ruby WI l son Pov4erhorn Community Council 2636 Portland Avenue South Miftnespol is, Mtf $1407 X 8900 Lesbian Resource Center 2104 Stevens Avenue South Minnespolis, MIf SS404 $71-2601 3'- I f AGOG (All the Good Old Girls) Patti Gepner Etkin Y; 640 East Grant Street •EW Minnespolis, MN SS404 37S-9496 t ' -13- 85-4'7E � t ., M ACK Afro=AA. Studies Department• Tani Ziegler University of Minnesota 214 Social Sciences building Minneapolis$ KH 55455 373-0143 TV, s The War Randy Barber ` R 1913 P1 ymouth Avenue North Minneapolis. M SS411 t 521-36S1 . Sabathani Conwnitr Center Clarissa Walker 3801.• 1st Avenue South ,.. Minneapolis. HN 55409 fir. 3 827-3981 Y° Phyllis Wheatler Community Center Clarene Porter T' 919 Fremont Avenue North Minneapolis, HN SS411 374-4342 ,- Minneapolis Urban League -LEAP s� Nary Abed nY: 1210 Glenwood Avenue M Minneapolis, NN S540S k 374-2530 i Orthodox Baptist Church Reverend Andreas — 1018 Russell Avenue Nortli Minneapolis, W SS411 - 521-2501 =- Southside LEAP. • Eric Smaller 409 East 38th Street Minneapolisj-W SS409 $27-1789 f = NAACP . Hobart Mitchell ' P.O. Box 15082 ., Minneapolis. Of S5415 -14- - r 85-4'76 H PLUCK (CohUhtled) tipl$. Urban IAA&Ue (main office) sbtt Johnson Gleason cover 1121 l2th Ave. me* S5411 85-476 • ;c CH 1 CA`a0 4 Chicano Studies Department Erlando Hinojosa-Smith g` tMiversitr of Minnesota • ' 489 Ford Hall m • Minneapolis. MN SUSS • 373-9797 Centro- Cultural Chicano Inc. • Done Vargas • Augustin "Willie" Dowinques 3300 Olson Highway f,. Minneapolis. MN SS411 374-2996 r_ 8574'76 h&r aptMont of Amerlegh Indian Studies John Clark 812 Social Science building Minneapolis, M SS455 373-0146 Branch-1 Sister Joan Connors .1308 East Franklin Minneapolis. mN SS404 870-1886 STA John Hartinsin IS South Sth Street Minneapolis, Hai S5402 72S-2936 0 Indian Neighborhood Club Joe Bedeau 180S Portland Avenue Minneapolis. MN S5404 Anishinabe Longhouse Fen Bedeau (JudyL) 1016 Newton Avenue North Minneapolis, M SS411 S21-22SI American Indian Services Dave Sand 73S East Franklin Minneapolis, MN SS404 871-2175 Minneapolis Regional Native American Center Ben White/Bob Pendleton IS30 East Fianklin Minneapolis,, MN S5404 • 871-740S ext. 38 Division -of Indian Works Rosalie Brown Thundqr 3045 Park Avenue.. Minneapolis, 14H SS403 327-1795 -17- 0 85!!!-476 tY. Minnesota Chippewa tribe Lloyd tafave .r 2344 Nicollet Avenue Minneapolis, MN SS404 871 •S940 Little Earth of United Tribes • Artley Slcenandore- 2501 Cedar Avenue Southe Minneapolis, MN SS404 729-9361 Indain Health Board Norrine Smith/JOAnne.Barr 249S - 18th Avenue South Minneapolis. HN S5404• 721-742S ' Branch III Dick Mitchell loth b Chicago . Minneapolis, MR SS401 37S-9476 • ZM Minnesota Indian Affairs =r Inter Tribal Board = Francis Felix • -�` North 360 Creggs Midway Building #a 1821 University Avenue ' St. Paul, tX 55104 296-3611 American Indian Chemical Dependency Diversion Project Sharon Shapiro/Herb San --= 809 B: Franklin Minneapolis, MN SS404 871.4836 Upper Midwest Indian Center �^ Emily Peaks • • 2113 M. Broadway Minneapolis,.101 55411 522-4436 American Indian Student Culture Center 204 Jones Hail 27 Pleasant Street Southeast Minneapolis, MM S5455 -18- FWL- S5-7476 i -+M4' _.d...: •j L 1y C • r _ pact Center Otto Mirgau/George•Munsey !, 1101 - 3rd Avenue South Minneapolis. M 55404 34866293 Catholic 1lelfarf Virginit Birkner =Y 404 South 3th Street Minneapolis. MN $3404 , 340-7500 ' Women Helping Offenders Stanley Hatcher 1422 pest Lake Room 204 S5408 Minneapolis. MH 824.0741 ,.:. HIRED '- 4 John George 1009 Hicollet Hall Minneapolis. M SS403 : x 8S50 , Urban Coalition _ Earl Craig ' mt 1009 Nicollet !fall ' Minneapolis. NN . SS403 ' n: X 8550 Pilot City • Jeanne Pettiford/Corey Kissel -� 131S Penn Avenue North Minneapolis. MN SS411 X 4 700 TCOIC , INS Olson Memorial Highway • Aiternier Cook ' Minneapglis..NN S5411 5 r 377.41SO •' Dunwoody Industrial Institute John Hanson - 618 Wayzata Blvd: Minneapolis. M S5403 ' 374-SB00 -19- a 4_u 85-476 lK y Occupational Skills training Center Cave JaSSeri/Olga Yunis/to: Lundy 1006 best take Minneapolis, MN S1408 x 4031 Pillsbury -Waite Neighborhood Services Wendy saver 720 East 26th Street x Minneapolis$ MN SS404 • a71-21oi Comunity Cixrrer Center Betty Olson Fair School 391S Adair Avenue North . Minneapolis, W SS422 S46-0466 Minority Resource Center r 302 Eddy Nall ;- 192 Pillsbury Avenue Southeast University of Minnesota :. Minneapolis, MN SS6SS 373-7947 .; re t 71 -20- d 85-4'76 �K -tC• a i } T- 9 SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 53431 Phone (612) 835-1865 1. H. EMPLOYEE/STAFF EEO/AA ORIENTATION The Equal Employment Opportunity Officer shall be responsible for training all employees on EEO/AA matters. All aspects of the Company's Equal Opportunity Policy and Affirmative Action Plan will be thoroughly reviewed at employee meetings held at least quarterly, and quarterly internal distributions of written materials. -21- ^� 85-478 H� 1 .6 SEVEN CORNERS HOUSING PARTNERS 1906 NPC Tower 7900 Xerxes Avenue South Minneapolis, Ninsnesota 55431 Phone (612) 835-1865 It. A. GOALS FOR CONSTRUCTION WORKERS The Company does not anticipate ever, having any employees in trades positions. All subcontractors of the Company shall be contractually obligated to establish the following minimum goals for their trades positions: 1. 5% women - skilled and unskilled 2. 15% minorities - skilled 3. 15% minorities - unskilled Preference shall be given to residents of the Cedar - Riverside neighborhood. However, neighborhood preference shall not pre-empt the goals for minority and women participation. It is estimated that at the maximum periods of activity, approximately 75 construction workers will be employed on the site. -23- A �i M. SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) SSS-1965 II. B. GOALS FOR NON -CONSTRUCTION WORKERS The Company presently has no employees, and does not plan to hire any. 85-4"Pfi v SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Ninneapolis, Minnesota 55431 Phone (612) 835-1865 I. I. EEO GRIEVANCE PROCESS Applicants for Company employment, present employees, part and full time employees, temporary or permanent employees, and persons terminated from Company employment have a right to file a grievance with the Equal Employment Opportunity Officer when they feel their employment or potential employment has been adversely affected because of race, color, creed, religion, ancestry, national origin, sex, affectional preference, disability, marital status, status with regard to public assistance, Vietnam veteran status, or age. All grievances are handled in an expeditious manner. Investigations are objective. Federal, state and local court and administrative decisions are used as guides in these investigations. All information in the case files is confidential unless properly subpoenaed by a court or administrative body. Individuals will not be subject to discipline or discrimination in terms and conditions of employment as a result of using the grievance procedure. The grievance procedure is initiated by the filing of a complaint with the Equal Employment Opportunity Officer. If the Equal Employment Opportunity Officer is unable to resolve the complaint on an informal basis, he or she shall make a thorough investigation of the matter. On the basis of such investigation, he or she shall make a written report to the President of the Company, including a recommended disposition. The President shall review such report, and take such action as he or she deems appropriate. No more than 30 days shall elapse from the date the complaint is filed and the date a final resolution is made by the President. In addition to the above, each employee shall receive a periodically updated form, listing the administrative agencies they have a right to file a complaint with concerning an alleged discriminatory act, and any applicable time limits for such filings. -22- 85-4'715 i SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 835-1865 It. C. WOMEN AND MINORITY BUSINESS (W/MBE) GOAL The Company will work with the City's Women and Minority Business Office to establish goals for the Project before any bids are solicited or contract negotiations commence. The Company agrees to incorporate the agreed upon W/14BE goals in the approved Affirmative Action Plan. f The Company's proposed goal for the utilization of minority -owned and woven -owned businesses is 207.. No more than 5% (equal to 25% of the 20% goal) with any one such subcontractor shall be counted towards the goal. Preference shall be given to neighborhood subcontractors, but such preference shall not pre- empt the goals for women and minority participation. �r fi The Company shall contact protected class oriented organizations and the City of Minneapolis to obtain lists of W/MBEs. Letters will be sent out to all identified W/MBEs describing the nature of the Company's present and anticipated future projects. These letters shall solicit a response, a' indicating whether the W/MBEs would like to be personally contacted to discuss a specific participation in any Company ,.,._ project. Periodic 'follow-ups and further solicitations shall be made. All subcontractors of the Company shall also be contractually obligated to establish the same goals for W/MBE utilization among their subcontractors, as those adopted by the Company. In addition, by contractual provisions, the Company may elect to impose monetary penalties on its subcontractors for their failure to comply with the provisions of this Plan. All W/MBE firms to be counted toward the W/MBE goals must be I certified by the City of Minneapolis W/MBE Office. -25- 85-47E" s SEVEN CORNERS HOUSING PARTNERS 1906 NFC Tower 7900 Xerxes Avenue South . Minneapolis, Minnesota S5431 Phone (612) 835-1865 III. INTERNAL AUDIT PROGRESS REPORTING SYSTEM The effectiveness of the Company's Affirmative Action Plan shall be measured by the degree to which it achieves Its AA goals. The Equal Employment Opportunity Officer shall be obligated to monitor all Company employment activities (recruiting, hiring, promotion, and firing) and 'A/MBE utilization 4 at all times. Quarterly reports shall be submitted to the President of the Company for his or her review, with recommendations noted thereon for any necessary remedial acttons. The Company shall submit monthly and other reports, as necessary, to the City for the purpose of the City's assessing the Company's compliance with its Contractual Agreement, the Affirmative Action Plan, and the City Ordinance. f° If and when the utilization of women and minority businesses or women and minority employees is below the goals established in the Company's Affirmative Action Plan, the Company will notify the appropriate City EEO Compliance Agency and Prov.de a written explanation of the reasons why the utilization has fallen below the goals. ,r -26- SS-4'76 Y, SEVEN CORNERS HOUSING PARTNERS r: 1906 NFC Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 53431 Phone (612) 835-186S Iv. SUBCONTRACTORS The Company will notify all subcontractors, including the operator of the Hotel, of their responsibility for Equal Opportunity and Affirmative Action under this Plan, and will hold subcontractors fully accountable for compliance, including sanctions where appropriate. -27- r- `e- 85 4'76 J t SEVEN CORNERS HOUSING PARTNERS 1906 NN Tower 7900 Xerxes Avenue South Minneapolis, Minnesota 55431 Phone (612) 83S-1865 VI. SIGNATURES SEVEN CORNERS HOUSING PARTNERS By: Can -American Realty. Corporation, General Partner Garrett G. Carlson, President By. Richard S. Kahn, Equal Employ- ment Opportunity Officer MINNEAPOLIS AFFIRMATIVE ACTION By Its Director MINNEAPOLIS CIVIL RIGHTS DEPARTMENT By Its Director .028- 85-476 I p. � - t AI F1I:F".AI tYf ACTION PLAN J / SirN-OFF This is to ar.knowled!ne that an affirmative action plan has becu al+N+•oved for the . SEYEH.LORHELI-:— APARTMENTS Project as requirod by Chapter 139.S0 of the tiinneapol is Code of Ordinances. This plan will be available for review at SEVEN TUCORwNE, y_ilpUSl 1?0-UFC rOWWJR 7900 XERXES AVE. SO. Address of Company and at the Minneapolis department of Civil Rights (348-7736) and at the I•tinneapol i s Affirmative Action Mananement 4_ Program (348-6601). a tie r0ct 'tCils. Aff: fiction Ftc+�t. Prod. CC: -.�i0� rer, i+pT . Dept. 9 C,i vi 1 R� gFits 85-4'7f A t ARTICLE 3. THE CONTRACTOR'S DUTlrS AND STATUS a ----The -Contractor accer+ts the relationship of trust and confidence established between him and the Owner by this Agreement. He covenants with the Owner to furnish his best skill and judgment and to cooperate with the Architect in furthering the interests of the Owner. He agrees to furnish efficient business administration and superintendence and to use his best efforts to furnish at all times an adequate supply of workmen and materials, and to perform the Work in the best way and in the most expeditious and economical manner consistent with the interests of the Owner. .. aw 3.2. The Contractor, prior to the issuance of the Owner's start order, shall provide the Owner with a payment bond and a performance bond, in a form satisfactory to the Owner and the Lender, each in the amount of the Guaranteed Maximum Cost stated in Article 5. 3.3.1. The Contractor shall be responsible for complying with all affirmative action and equal opportunity requirements applicable to the Project, specifically including the requirements set forth in the Owner's Affirmative Action Plan filed with the City of Minneapolis, the provisions of which are Incorporated herein by this reference. The Contractor shall also be solely responsible for ensuring compliance with such requirements by all of its subcontractors. 3.3.2. The Contractor shall provide the Owner with duplicate copies of all reports issued to the City of Minneapolis with respect to the Owner's Affirmative Action Plan (the "Plan") at the same time all such reports are submitted to the City. Such duplicate copies shall be delivered to: Richard S. Rahn Can -American Realty Corporation 7900 Xerxes Avenue South, Suite 1906 Minneapolis, MN 55431 Jeanie LaBore Seven Corners Community Housing Corporation 2000 South Fifth Street Minneapolis, MN 55454 The Contractor agrees to provide the Owner or its designee reasonable access to the site to monitor performance under this Section 3.3.2 and to verify the accuracy of the Contractor's reports. Failure to comply with the aforesaid Plan may result in the Owner imposing, in its sole discretion, liquidated damages of up to $1,000 per week of non-compliance. Submission of a compliance report with suhstantial and material erroneous information may result in the Owner imposing, in its sole -2- 85-4'7f 0 3 ATTACR UXT 4 Can -American Realty Corporation Minority t� Participation Plan, March 290 1985. CAN-AMERICAN REALTY CORPORATION MINORITY PARTICIPATION PLAN t I PARCEL 37 SOUTHEAST OVERTOWN/ PARK WEST _y JEM K i . -1 a =� 85-4'7£ 4 CAN-AMSRiCAN REALTY CORPORATION j I Minority Participation Plan Par Parcel 31 of the Southeast Overtown/Park West_Redeyelooment Proiect Phase L_ Can -American Realty Corporation of Minneapolis ("Can -American") has a demonstrated history of commitment to the development and implementation of affirmative action plans. These affirmative action plans incorporate minority employment and subcontracting goals into the development of inner-city and distressed area, mixed use and residential projects. Because of the unique undertaking of the City of Miami in its Southeast Overtown/Park West Redevelopment Plan, Can -American feels it is particularly committed to exceeding the usual goals for city assisted projects. This commitment translates into an effort to fully integrate the concerns and objectives of Miami's black community into meaningful participation in this redevelopment project. Can -American and its development partners for this undertaking (the "Can -American Group"), propose to meet or exceed the City of Miami's established goals for the Park West portion of the project area which includes Parcel 37; the proposed Can -American development site.l Through the lCan-American Proposal ("Proposal") Section 3 p. 4 r 85--4'78 i e implementation of its minority participation plan, the Can -American Group will meet or exceed the following minority participation goalss (1) twenty-five (25%) percent black construction goal in city sponsored activities; (2) twenty-five (25%) percent black contracting goal; (3) twenty-five (25%) percent black construction hiring goal; (4) twenty-five (250) percent black retail space ownership goal;2 and (5) fifty (508) percent black permanent hiring goal.3 Further, the Can -American Group will comply with all applicable federal, state and local fair housing and affirmative action legislation and regulations, including the City of Miami Code Section 18-73, and City of Miami Resolution No. 83-297 adopted April 6,'1983.4 2Southeast Overtown/park West Request for Proposals ("R.F.P.") p. 50 and Proposal section 3, p. 4 } 3Proposal section 11, p. 79 4R.F.P. p. 50 and Proposal section 16, p. 4 —r -2- 85-4'76 4 rt- 2, While it is not specifically required for the Park '. west portion of the project area, the Can -American Group proposes to include as a part of this minority participation ! a plane, an equity participation program for local black p p P 9 4. a investsent involvement and ownership of the project, Demonstrated Record of Minority Participation As outlined in its submission, Can -American together with affiliated companies owned and operated by the same group of individuals since 1974, has been responsible for the development of two thousand five hundred and sixty-eight (2,568) subsidized housing units. in each instance Can -American has demonstrated an aggressive compliance with all federal, state and local affirmative action requirements.6 Can -American is particularly proud of one of these development projects, the Seven Corners Apartments Housing Project. This development represents a two hundred and forty-eight (248) unit, UDAG-financed, rental housing project, located in the Cedar -Riverside neighborhood of Minneapolis (originally a federal new -town -in -town project). The project was developed in partnership with a neighborhood non-profit corporation in 1983 and 1984. Can -American now manages SProposal section 31 p. 4 6Proposal section 1, p. 1 -3- 85-4'76 4 � x. r� �t 4 the project. Mortgage and equity proceeds totaled 21.4 million dollars.? in all respects, Seven Corners Apartments comes closest to what the Can -American Group hopes to accomplish in Southeast Overtown/Park west. Seven Corners is located in a neighborhood adjacent to downtown Minneapolis, which has long been targeted as a high -priority redevelopment area by the City. it is economically feasible only by virture of substantial financial assistance from the City and from HQO tin the form of an urban development action grant). Seven Corners offers highly affordable rents for people of modest means.8 Under an agreement with the City of Minneapolis and a community organization, the Seven Corners Apartments Project was built in accordance with an affirmative action plan which incorporated minority employment and subcontracting goals considerably in excess of the usual goals for city assisted projects. The construction contract on the Seven Corners project not only compelled the contractor to comply with the affirmative action plan, but also contained a meaningful mechanism for enforcing contractor compliance. On the Seven 7Proposal section i, p. 3 BProposal section 1, p. 4 -4- f 85-4'78 6 Corners _._ora ect,_ __failurebv a _contractat to____fulfill minorit involvement _coals was __cause_ for default. The. Can -American Group proposes to do exactly the same with the Southeast Overtown/Park West Parcel 37 Redevelopment Project, in addition to incorporating the goals set forth in the Request For Proposa18.9 rarcei it mLnuritY rarticipazion program Because of the importance of the Southeast Overtown/Park West Redevelopment Project to Miami's black community, the Can -American Group will make the fullest commitment for black involvement in this development process as is possible. The Can -American Group, as a principal element -of this proposal will implement a Minority Participation Plan which will contain the following features% (1) local black minority equity participation, through solicitation of investment in the development costs and ownership of the Project, from individuals in the local black community;10 (2) the achievement of at least twenty-five (25%) percent black construction contracting in the overall development project; 9Proposal section 3, p. 3 and section 12, pp 33-34 1Oproposal section 3, p. 4 -5- 85-476 i 1 (3) a commitment to achieve a twenty-f ive (256) +r percent black professional contracting goal, involving black professionals in all aspects of the project development- (4) the achievement of at least twenty-five (256) percent black construction hiring= (5) a commitment to achieve a twenty-five (256) percent black retail space ownership goal in the project's proposed thirty thousand (30,000) square feet of commercial spacesll and (6) the achievement of at least a fifty (50%) percent black permanent hiring goal for the maintenance and operation of the project.12 Black Equity Participation The Can -American Group has made a commitment to accept equity participation investments from individuals in the local black community. At this time Can -American has entered into a preliminary agreement with Mr. Otis Pitts for his 15% equity investment in the development costs and ownership of this project. Mr. Pitts will share with Can -American proportionally in the cash flow and tax benefits of this project, as well as in the profit of any subsequent sale of the same. 11R. F. P. p. 50 and Proposal section 31 p. 4 12Proposal section 11, p. 79 and section 16, p. 10 -6 - 85-4'76 9 D 40 Attendant to his investment are the normal commercial risks and losses of a development project of this nature.13 Black Construction Contracting The Can -American team proposes to target at least twenty-five (250) percent of the value of contracts for the construction of this project to black contractors and subcontractors. in order to achieve this goal, the Can -American team proposes to employ the following techniquess14 (1) the targeting of specific trades for competitive bidding among black subcontractors; ,. (2) the facilitation of joint venture agreements �4t between black contractors and established contractors for the s• performance of a single construction contract; and (3) the active solicitation of black contractors and subcontracts for bidding on all project contracts.l5 Black Professional Contracting The Can -American Group, in its efforts to reach or exceed a twenty-five (25%) percent black professional 13proposal'section 3, p. 4 14proposal section 16, p. 8 15Proposal section 3, pp 3-4 -7- 85--4'7Fs contracting goal, has directed its local law firm of Fine Jacobson Schwarts Nash Block a England, P.A., to joint venture s. with local black attorney Ximmberly L. Parker for the performance of legal services to the project. Ms. Parker has reached an agreement in this regard to perform twenty-five (251) percent of the local legal services required by the project. The Can -American Group will continue to make every effort to involve blacks in each area of professional services required by this development project.l6 Black Construction Hiring The Can -American Group will, in all solicitations or a, f advertisements for employees, state that all qualified r applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. Can -American and its partners will comply with all federal, state and local laws regarding fair labor hiring practices. Equal employment opportunity provisions will be included in each labor union contract, collective bargaining agreement, or .." other contract or understanding, with a requirement that all sub -contractors report to the general contractor on a daily MW basis for the immediate assessment of goal achieveirent. Copies �" of these provisions shall be posted as notices in conspicuous 16proposal section 3, pp 3-4 -8- 85-47b 1 3 places available to employees and applicants for employment. In addition, equal employment opportunity provisions wilt be included in each contract or purchase order and will be required in the inclusion of each subcontract entered into by any of its contractors or vendors. In the event of non-compliance, the_Can-American Grouo reserves the riaht to cancel, terminate or suspend, in whole or in part.any contract or agreement held by the non -complying -party. The Can -American Group will actively pursue through the established local mechanism appropriate, the solicitation of applications from black construction workers.17 Black Retail Space Ownership In response to its commitment to reach a twenty-five (25%) percent black retail space ownership goal for this project, Can -American will target twenty-five (251) percent of the retail space available in the project for black ownership and actively pursue local black enterprise for such occupancy and ownership. Mr. Pitts, with his real estate development experience will assist in this effort.18 175ee Proposal section 12, pp 33-34 and section 16, pp 8 and 31 - Article 3 18Proposal section 3, pp 3-4 -9- 85-4'78 I. . black__PerManent___Mirin Canadian financial Mousing Corporation of Minneapolis, Minnesota will be responsible for the management and operation of the project upon completion. Canadian financial an affiliate of Can -American, will be responsible to the Can -American team for the implementation of a fifty (500) percent black hiring goal. Hiring practices as outlined in the construction hiring section of the Minority Participation Plan will be implemented for the permanent hiring of individuals, for the maintenance and operation of the project.19 19Proposal section 11, p. 79 7261E 032285/6/AT -10- 85-4'78