Tall Man Group, Inc (TMG) Proposal
STATEMENT OF QUALIFICATIONS
ECONOMIC DEVELOPMENT AND REAL ESTATE ANALYSIS SERVICES
City Of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Gilbert Villapando
Assistant to the City Manager
City of La Quinta, City Manager’s Office
78-495 Calle Tampico
La Quinta, CA 92253
April 15, 2019
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TABLE OF CONTENTS
Statement of Qualifications Cover Letter ...................................................................................................... 3
Company Profile ........................................................................................................................................... 4
Qualifications and Experience ...................................................................................................................... 5
Resume ........................................................................................................................................................ 7
Hourly Rates and Fees ................................................................................................................................. 8
Current and Previous Projects ..................................................................................................................... 9
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April 15, 2019
Gilbert Villapando
Assistant to the City Manager
City of La Quinta, City Manager’s Office
78-495 Calle Tampico
La Quinta, CA 92253
STATEMENT OF QUALIFICATIONS COVER LETTER
ECONOMIC DEVELOPMENT AND REAL ESTATE ANALYSIS SERVICES
Mr. Villapando:
Tall Man Group, Inc. (TMG) is pleased to present the enclosed Statement of Qualifications (SOQ) to
perform economic development and real estate services on an as-needed basis for the City of La Quinta
(City).
As indicated in this SOQ, TMG staff provides a wealth of knowledge obtained over 32 years in the
development and real estate industry. Focusing on providing services to local government over the last
17 years, TMG has been involved in real estate analyses from the conceptual development stage, to
implementation, to final disposition and operations. Project scales range from housing unit specific to
city-wide planning efforts.
TMG is most successful when face-to-face with complex challenges that require strategic thinking and
ecological solutions. With experience in developing economy-expanding solutions, including agreement
and private develop structuring at Silverrock Resort in La Quinta, the Village Theatre rehabilitation for the
coastal City of Coronado, or expanding the supply of housing for low-income seniors and disabled adults,
such as the Washington Street Apartments in the City of La Quinta, TMG possesses the abilities to
develop real estate solutions for your community.
Through the years, TMG staff has developed strong working relationships with City staff by being involved
in economic development, real estate and affordable housing analyses, design and development
concepts, property acquisitions, residential relocations, property dispositions and owners representation
during developer negotiations and development. We look forward to continuing our work with the City.
Sincerely,
TALL MAN GROUP, INC.
Jon McMillen
President
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COMPANY PROFILE
While TMG is a relatively young corporation, its president has over 30 years experience in development
and real estate analysis and has worked with the City of La Quinta for more than 17 years. Furthermore,
because TMG has existing relationships with City staff and is intimately knowledgeable about the City’s
existing projects, we have the benefit of being able to become instantly engaged.
TMG’s specialties include economic development, real estate and development analysis, affordable
housing implementation strategies, owner’s representation through development, residential and
business relocation, project entitlement, and property acquisition, and disposition.
Developing effective solutions to real estate requires innate creativity and expansive background
knowledge, practical experience and ecological approaches, effective actions and a committed team.
To provide the most effective solutions, TMG will dedicate a Principal to your project with assigned staff
members available to you throughout the duration of the assignment. TMG’s staff is committed and
passionate about serving your community.
General Information:
TMG is a California S-Corporation.
Ownership is held by your project Principal, Jon McMillen.
TMG’s primary office is in Valley Center, California. TMG finds that face-to-face interactions are essential
to developing relationships with your staff and will perform much of the work for your community on-site.
Corporate Office: 9548 Vista Aleta, Valley Center, CA 92082
Direct Phone: 760-212-2322
Federal Tax ID:45-5631932
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QUALIFICATIONS AND EXPERIENCE
In order to present our breadth of real estate experience, TMG includes economic development and real
estate analysis, design development and entitlement, owner’s representation for development, real estate
acquisition and disposition, relocation and real estate programs in this SOQ. Descriptions of our
experience are provided below.
Economic Development and Real Estate Analysis
City of La Quinta Real Estate Analyses
TMG has experience conducting complex real estate analyses for the City of La Quinta. TMG’s staff work
has included pro forma and development analysis for the City in regard to affordable housing
(Watercolors, Vista Dunes, Wolff Waters, Centerpointe, Silverhawk apartments, Coral Mountains, Dune
Palms/ Westward Ho, and Washington Street Apartments), hotel and resort development analysis
(Silverrock Phase 1 and 2, Embassy Suites, and La Quinta Resort and Club) and Big Box conversion
analysis (Sams Club/ Theater conversion), among others. TMG’s analyses have included review and
reconciliation of developer proposals, conceptual modeling for construction budgeting and operations and
long term property and sales tax projections.
City of Coronado
TMG’s staff has performed development and financial analysis on several affordable housing projects
(550 Orange Avenue Senior Housing, 525 Orange Avenue, 225 Orange Avenue, 840 G Avenue). To
highlight one project, 525 Orange Avenue, TMG staff assisted the City with development analysis for
acquisition, rehabilitation construction budgeting, permanent relocation of residents, affordable housing
financing, selection and negotiations with affordable housing operator and their tax credit investors as
well as owners representation during construction and grant monitoring. 525 Orange Avenue has
received multiple awards for excellence for rehabilitated affordable housing. In addition to the many
housing projects TMG staff also assisted the City with development analysis for the rehabilitation of the
Village Theatres. This involved construction budgeting, review of developers pro forma and assumptions,
owner’s representation through design and construction, and grant monitoring. The Village Theatres has
become an economic catalyst for local restaurants and a destination attraction for movie goers in San
Diego.
Reference: Rhonda Huth, 619-522-2426
City of Twentynine Palms Project Phoenix Real Estate Analysis
TMG staff began development and pro forma analysis and cost estimation in 2011 for the City of
Twentynine Palms. The City had recently received over $11.5 million in bond proceeds which were
earmarked for the development of Project Phoenix, a low-income housing development, parking for
adjacent small businesses, and a community center with multi-purpose room, 200-seat theater, and
classrooms. TMG staff assisted in generating acquisition cost estimates, pro forma analyses for the
development, and coordination of utility and sewer improvements. The project would leverage the bond
proceeds to receive City funding for the utilities and community center, and tax credit equity and a
permanent loan for the housing totaling over $18 million in total project costs. Project Phoenix was
suspended when bond proceeds were frozen by the State during the dissolution of Redevelopment
Agencies. Recently the City has obtained some additional funding allowing the project to be revived and
TMG is acting as the project manager for the development of the community center that is currently in the
design stage.
Reference: Frank Luckino, City Manager, City of Twentynine Palms, 760-367-6799
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Design Development and Entitlement
City of La Quinta Washington Street Apartments
In 2012, TMG was engaged to oversee the design development and entitlements for the City-owned and
Rural Development-subsidized Washington Street Apartments. The Apartments, affordable to extremely
low-income seniors and disabled adults, were in desperate need of rehabilitation. TMG, through a
concerted effort with the City of La Quinta, assembled a design team of architects and engineers. The
design team generated and fleshed out concepts in collaboration with City staff to create a project that
would satisfy the requirements of the City’s Planning, Public Works, and Building and Safety
requirements. Shortly after receiving entitlements, the project was suspended in 2012 when the
Department of Finance (DOF) disallowed 2011 bond proceeds as a funding source. In 2016, TMG
working closely with the DOF and City got approval on bond refinancing and a bond expenditure
agreement that would allow the project to move forward utilizing housing bonds. The existing apartments
and an adjacent vacant land parcel were transferred to an affordable housing developer in the spring of
2018, in a construction ready state. TMG in coordination with city staff is now serving as the relocation
consultant and representative during construction managing the Housing Authority’s investment.
Owner’s Representation for Development
City of La Quinta Vista Dunes Courtyard Homes
During the design and construction phase of Vista Dunes Courtyard Homes, TMG staff was involved at
every level, including transitioning and preparing the project to become a LEED certified Platinum project.
This was the result of seizing an opportunity while the project was being delayed by CVWD to re-engineer
sewer tie-in. Staff worked with and coordinated efforts with local utilities, negotiated with Sunline Transit
to reroute bus lines, and encouraged the neighboring Church to abandon their septic and tie into the new
sewer line at Vista Dunes. Representation during development was critical on this project to ensure the
City received the energy efficient and sustainable project that they were investing in. The construction
management made many attempts to substitute non-compliant materials in attempts to value engineer
the project and save on lead times that they had not anticipated. Staff was often in a position to provide
directives to the team in order to maintain the vision that the City had for this project. TMG staff also
served to manage and monitor the Grant funding through construction. Vista Dunes became the largest
multi-family affordable housing project to receive the Platinum designation in the Leed for Homes
program. The project was completed on time and within budget.
Real Estate Acquisition and Disposition
City of La Quinta Vista Dunes, Dune Palms and Westward Ho Properties, Washington Street
Apartments and Testa Parcel
Highlighting a project in each category, TMG staff was instrumental in the negotiations and structuring of
the very complex tax credit financing deal for Vista Dunes Courtyard Homes. This involved last minute
conversion of 9% credits to 4% as well as changing the grantee and adding additional non-profit to the
transaction. Escrow was successfully closed on this projects and credits were awarded. Both the operator
CORE and tax Credit investor Hudson Housing remarked that this transaction could not have been
possible without the expertise, time and dedication that staff provided.
Property assembly at Dune Palms and Westward Ho involved the acquisition and relocation of seven
residences. This assembly was accomplished over several years without the use of eminent domain and
with purchase prices regulated by fair market appraisal values. Residents were initially very scared and
defensive. At the conclusion of the acquisitions all of the residents were successfully relocated and very
appreciative of the care and understanding they were given through this process. One resident wrote a
letter to the editor of the local paper commending the City and their Consultant for such a good job and
great care his family was given.
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JON MCMILLEN, PRESIDENT
RESUME
Jon McMillen has been active in the development and real estate industry for 32 years, and his financial
analysis and construction background are invaluable in any development project. Beginning as a general
contractor building homes and commercial projects, Mr. McMillen now assists clients with real estate
economics and implementation strategies. His role has been diverse, and has included assistance with
property acquisitions, tenant relocation, pro forma analysis, and owner’s representation through
development.
Mr. McMillen’s involvement as development consultant and owner’s representative was instrumental in
the success of the Vista Dunes Courtyard Homes project in La Quinta, CA. Once a dilapidated mobile
home park, Vista Dunes is now an award winning, LEED Platinum certified 80-unit neighborhood
affordable to very low-income families. He led the effort in feasibility studies, relocation of the residents,
development economics, owner’s representation during construction, final disposition of the property and
coordination and compliance with the current operator.
Mr. McMillen also served in a similar capacity as consultant and owner’s representative to the City of
Coronado with the conversion, substantial rehabilitation, and affordability compliance of another award-
winning project, 525 Orange Avenue, a 16-unit affordable apartment building in Coronado, CA. He was
the owners representative and monitored the grant funding during renovation of the historic Village
Theatres for the City of Coronado. Other recent assignments have included pro forma and financial
analysis, developer negotiations, and agreement structuring for SilverRock Resort, as well as property
acquisition, development programming, project management, relocation consultant and owners
representation for the 140-unit Washington Street Apartments project, both in La Quinta. He has worked
with the City of Twentynine Palms to identify and analyze potential development strategies for affordable
housing as well as currently being the city’s project manager for the development of Project Phoenix, a
14,000 sf. multi-purpose community center.
Mr. McMillen’s natural progression from real estate economics and general contractor to development
consultant and owner’s representative has allowed him to aid and benefit a more diverse population,
especially as an advocate for affordable and sustainable housing. He is driven by his commitment to
quality and excellence, and the results are evident in all of his work.
Education: BA, Environmental Design and Planning, School of Architecture, Concentration in Real
Estate, State University of New York, Buffalo
Licensing: State of California Contractors State License – B – General Building No. 551510
Issued December 1988
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HOURLY RATES AND FEES
Principal $ 175
Senior Associate $ 150
Associate $ 135
Senior Analyst $ 115
Analyst $ 95
Clerical $ 60
Reimbursable Expenses Cost plus 10%
TMG does not charge clients for mileage, parking, telephone, general postage or incidental copies. TMG
does charge for messenger services, overnight shipping mail costs, and printing services. We also
charge for copies of reports, documents, notices, and support material in excess of five (5) copies. These
costs are charged back at the actual expense plus the above referenced surcharge.
TMG will issue monthly invoices, payable within 30 days, unless otherwise agreed upon in advance.
Invoices identify tasks completed to date, hours expended and the hourly rate.
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CURRENT AND PREVIOUS PROJECTS
TMG’s staff has worked with the City in various roles. A sampling of previous and current projects are
listed below:
● Pro Forma analysis Watercolors, 2001
● Development and feasibility analysis for original property acquisition Silver Rock Resort, 2001-02
● Conceptual development analysis Vista Dunes and Dune Palms Mobile Home Parks, 2003-04
● Relocation, development analysis, and final disposition of Vista Dunes, 2003-2007
● Property acquisition and relocations Dune Palms/ Westward Ho site assembly 2006-09
● Washington Street Apartments and Testa property acquisition and development analysis 2006
● Wolff Waters development analysis, 2005-2006
● Property acquisition and analysis Village Properties, 2006
● Silver Rock property analysis, 2008
● Coral Mountain development and pro forma analysis, 2008-2010
● Silverhawk apartments conversion and acquisition analysis, 2009
● Village Housing conceptual design development and property analysis, 2009
● La Quinta Resort pro forma and redevelopment analysis, 2009-2010
● Foreclosed Home Purchase and Rehabilitation Program, 2009
● Centerpointe development analysis, 2009
● Cove home acquisition prior to foreclosure, 2010
● Redevelopment legislation analyses and advocacy publication, 2011
● Dune Palms Mobile Home Park conceptual design development and property analysis, 2010-11
● Sam’s Club and Theater pro forma analysis, 2011
● Long Range Property Management Plan, 2014
● Last and Final ROPS including bond refinance, 2015-2016
● Washington Street Apartments disposition, relocation and development, 2012-current
● SilverRock Resort financial analysis, developer negotiations and agreement, 2014-current