Addendum

CITY OF DALLAS

Business Development & Procurement Services

www.bids.dallascityhall.org
1500 Marilla Street, Room 3FN Dallas, Texas 75201-6390

Addendum No. 1
(IFS, RFB, RFP, RFCSP, RFQ)

Date: April 23, 2012 Bid Number: BDZ1223 Bid Title: Dallas Farmers Market Redevelopment Bid Due Date and Time: May 16, 2012 @ 2:00 PM NEW ATTACHMENTS: ATTENDANCE SIGN-IN SHEET TCEQ NOTICE OF CASE CLOSURE OCT 2011

QUESTIONS & ANSWERS: Q: Is the City going to address foot traffic coming to the Farmers Market from The Bridge? A: This is not part of this RFP. Q: Are the developers required to purchase the buildings associated with the Dallas Farmers Market? A: The City is looking for creative solutions for the Dallas Farmers Market property. The RFP allows the bidder to recommend a solution that includes purchasing all, a portion or none of the Farmers Market property as long as other contingencies in the RFP are met, including the permanent reservation of a portion of the site for the public marketplace. Q: Are there any restrictions to the sale of any of the land within the Dallas Farmers Market site? A: There are outstanding bonds that financed improvements to Shed 2 and 3 at the Dallas Farmers Market. Accordingly, there are restrictions limiting the use of those facilities for the public purposes and voted purposes of the bonds. It is possible to retire the outstanding bonds, as a component of the proposal, to void restrictions limiting the use of the bond funded facilities. Q: Is there a survey of the property in the specifications? A: It is included in the RFP (Exhibit D). Q: Is the City looking for varied ideas related to the development of the Dallas Farmers
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Addendum Market? A: The City is looking for a variety of options for maximizing taxable revenue from the site, while maintaining a public market operation. The City is interested in using the public market at the Dallas Farmers Market as a catalyst for redevelopment of the entire site and will evaluate proposals on proposed future tenanting of the market and the rationale for the tenant mix, as well as overall redevelopment plans for the entire site. Q: Will the City of Dallas be operating the Dallas Farmers Market? A: The RFP allows for private operation or City operation of the Dallas Farmers Market. Q: According to the specifications the City is wants to maintain ownership of 60,000 square feet of the Dallas Farmers Market. Where specifically is this space? A: The RFP allows for flexibility on the use of the site. The desire is for the market component of the plan for the area creates a destination for Dallas residents, employees and visitors. Q: Is the 60,000 square feet a flexible amount and is it negotiable? A: The 60,000 square feet is a minimum. Q: What is the current occupancy rate of the Dallas Farmers Market? A: The stalls in the Dallas Farmers Market are licensed to vendors on a daily basis. Occupancy rates vary greatly. Q: Does the Dallas Farmers Market track its annual visitors? A: No. Q: Why is the City putting out this RFP? A: The City believes that the entire site can be better utilized and benefit from a master private developer for the site. Q: Describe the amount of remaining General Obligation bond funds (2006) available for use at the Dallas Farmers Market. Are there limits for the use of these funds? A: $6.3 million in General Obligation Bond funds are available to be spent on the public market component of the project. Since these funds are public, all work, including design, must follow public bidding law and be related to public market and infrastructure improvements. Q: Is the Dallas Farmers Market currently in compliance with TCEQ? A: Yes, please see the new attachment TCEQ Notice of Case Closure October 2011 Q: Discuss Revenue Procedure 97-13. A: These rules apply if the market is to be operated publicly for the City under the current ownership arrangement. The City is willing to consider other management structures. Q: Are there 3 acres deeded to the City with the stipulation that they be used for a Farmers Market? A: The City was unable to substantiate this statement and no such deed restriction was found.

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Addendum Q: What tax exempt bonds are included? A: General obligation bond funds (2003) were used for improvements to Shed 2 and Shed 3. A summary of these expenditures and related debt is shown below:
Farm er's Market Capital Im provements Sum mary April 13, 2012 2006 B ond $6,635,000 $2,996,000 $3,170,498 2003 B ond (s hed # 2) $3,200,000 $3,200,000 $3,529,876 C C CT apita l (s hed # 3) T l ota $9,835,000 $6,196,000 $7,088,708

Propos ition Amount Is ued s Appropria ted Ac l E tua xpens (IT ) es D Architectural Design Building (construction, painting, lighting, testing) City Forces Security Service Land Survey Misc Expenses

$388,334

$231,129 $74,041 $38,551 $16,948 $0 $10,079 $370,748

$472,947 $2,675,023 $71,091

$38,186 $201,020

$17,400 $4,672 $3,223,732 $264,301 $3,488,032 $256,606 $0 $256,606

$742,262 $2,950,084 $109,641 $16,948 $17,400 $14,751 $3,851,086 $439,983 $4,291,068

Debt Service Transfer & Bond Expense T l ITD ota

$175,682 $546,430

Q: Are all the reported losses for the Dallas Farmers Market related to the direct operation of the Dallas Farmers Market? A: Yes Q: Are there any payroll from the Convention Center included in the Dallas Farmers Market operating budget? A: Dallas Farmers Market is operated by the Convention Center. The budget only includes employees that work directly on market operations. The City will provide a breakdown of payroll and operating budget. Q: Are there any expenses adding to the reported Dallas Farmers Market losses that are coming from other City departments? A: No. Q: What is the square footage of the management building? A: The management building includes approximately 17,426 square feet. This information is in the RFP packet (Exhibit D). Q: What is the size of each rental stall space in the sheds? A: 10 feet wide by 75 feet deep. Q: When are the fees collected for stall rental? A: Daily, in cash or by credit card. Q: What is the square footage of the Shed 2? A: 26,077, this information is in the RFP packet (Exhibit D). Q: From direction do most of the visitors come to the Dallas Farmers Market? A: The market draws customers from across Dallas. Primary access is from Harwood and Pearl.
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Addendum Statement made during the pre-proposal meeting tour of Shed 2: Space rental in Shed 2 is as a 12 month license where fees are collected monthly. Each tenant individually metered for electric and billed accordingly. Gas and water are available but no fees are assessed to the tenant for these services. Q: What portion of the Dallas Farmers Market is considered public facilities that could be developed with the of bond funding? A: Any portion that use is restricted to public purposes such as public market space, sidewalks, open spaces, utility work, etc. Q: Would Shed 1 be required to be operated pursuant to a Qualifying Management Agreement? A: If the ownership of Shed 1 is retained by the City, operations will require a Qualifying Management Agreement. If Shed 1 (or any other portion of the market) is sold, these restrictions do not apply. Q: Would Shed 2 be required to be operated pursuant to Qualifying Management Agreement? A: If the ownership of Shed 2 is retained by the City, operations will require a Qualifying Management Agreement. If Shed 1 (or any other portion of the market) is sold, these restrictions do not apply. Q: If Shed 2 is required to be operated pursuant to a Qualifying Management Agreement, could the Operator enter into long-term leases with commercial businesses for the use and redevelopment of Shed 2? A: If Shed 2 is operated pursuant to a Qualifying Management Agreement, the Operator could enter into long-term leases with commercial businesses for the use and redevelopment of Shed 2, subject to 97-13.

If there are any questions pertaining to this addendum, please contact Buyer: Buyer Name: Michelle Charnoski Phone Number: 214-671-8287 Email michelle.charnoski@dallascityhall.com

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