2012 Tall Man Group, Inc - ResponseRECEIVED
2012 AUG 22 A19 1110
CITY OF LA OUINTA
CITY CLERK'S OFFICE
STATEMENT OF QUALIFICATIONS
PROFESSIONAL REAL ESTATE ANALYSIS SERVICES
City Of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
Debbie Powell
Economic Development/Housing Manager
City of La Quinta, City Manager's Office
78-495 Calle Tampico
La Quinta, CA 92253
August 21, 2012
TALL
MAN
GROUP, INC.
9548 Vista Aleta
Valley Center, CA 92082
760-212-2322
TABLE OF CONTENTS
Statement of Qualifications Cover Letter.....................................................................................................
3
CompanyProfile..........................................................................................................................................
4
Qualificationsand Experience .....................................................................................................................
5
RealEstate Analysis................................................................................................................................5
Design Development and Entitlement......................................................................................................
7
Owner's Representation for Development...............................................................................................
7
Real Estate Acquisition and Disposition..................................................................................................
7
RealEstate Programs..............................................................................................................................
8
Personnel.................................................................................................................................................
9
HourlyRates and Fees..............................................................................................................................
12
Currentand Previous Projects...................................................................................................................
13
OA
August 21, 2012
Debbie Powell
Economic Development/Housing Manager
City of La Quinta, City Manager's Office
78-495 Calle Tampico
La Quinta, CA 92253
STATEMENT OF QUALIFICATIONS COVER LETTER
REAL ESTATE ANALYSIS AND ADVISORY SERVICES
Ms. Powell
Tall Man Group, Inc. (TMG) is pleased to present the enclosed Statement of Qualifications (SOQ) to
perform 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 25 years in the
development and real estate industry. Focusing on providing services to local government over the last
decade, 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 the Village
Theatre rehabilitation for the coastal City of Coronado, or expanding the supply of housing for low-income
families, such as the Vista Dunes Courtyard Homes 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 real estate and affordable housing analyses, design and development concepts, property acquisitions,
residential relocations, property dispositions and owners representation during development. We look
forward to continuing our work with the City.
Sincerely,
TALL MAN GROUP, INC.
� m®
Jon McMillen
President
COMPANY PROFILE
While TMG is a relatively new entity, its staff has a combined 30 years experience in development and
real estate analysis and has worked with the City of La Quinta for more than 10 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 real estate and development analysis, affordable housing implementation
strategies, owners 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 also has staff in Orange, 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
QUALIFICATIONS AND EXPERIENCE
In order to present our breadth of real estate experience, TMG includes real estate analysis, design
development and entitlement, owner's representation for development, real estate acquisition and
disposition, and real estate programs in this SOQ. Descriptions of our experience are provided below.
Please note that the experience and qualifications listed are that of TMG's staff while contracting with
Rosenow Spevacek Group, Inc.
Real Estate Analysis
City of La Quinta Real Estate Analyses
The members of TMG have 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.
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, and 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,
owners representation through design and construction, and grant monitoring. The Village Theatres has
been open for just over a year has become a destination attraction for movie goers in San Diego.
Reference: Rachel Hurst, Community Development Director and 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.
Reference: Michael Tree and Richard Warne, City Manager, City of Twentynine Palms, 760-367-6799
City of Los Angeles Economic Impact Analysis
TMG's staff has worked to provide the City of Los Angeles Community Redevelopment Agency with
detailed analysis relating to the rehabilitation of the fabled Marlton Square retail site. For nearly twenty
years after it was identified as an opportunity site, it remained vacant, covered with graffiti. In 2012, TMG
staff generated pro forma analyses for the development of a new commercial retail center, hospital, and
low income housing development. The pro forma analyses were utilized to estimate the economic
impacts in terms of jobs generated and net increases in property, sales, and utility taxes for the City,
County, and associated taxing entities. The report was utilized to explain the significant impacts that
rehabilitation of the site could have on the surrounding community to the City's State and County
representatives, and potential developers. In June and July of 2012, a portion of the site was acquired by
Kaiser Permanente for development of a hospital and the remainder of the site was the subject of
negotiations with a developer for the retail center portion.
Reference: Carolyn Hull, Regional Administrator, City of Los Angeles Community Redevelopment
Agency, 714-316-2136.
City of Irvine Great Park Real Estate Analysis
In 2012, TMG's staff was engaged with a team of consultants to provide real estate analysis services to
the City of Irvine. The City of Irvine's proposed Great Park and associated commercial and housing
development was under scrutiny from developers of surrounding land — the developers had proposed a
realignment plan for the Great Park's wildlife corridor. The City was open to realignment but sought to
determine the fiscal benefit that the realignment would have on the developer housing and commercial
projects. Staff worked with the consultant team to develop estimations of the existing project value and
increased project value resulting from the realignment. The City was then able to determine the benefits
that the developers would receive from the proposed realignment.
Reference: Jeffrey T. Melching, Rutan, 714-641-3422.
City of San Carlos Real Estate Profile and Analyses
TMG staff assisted with the analyses necessary to convert an existing City -owned parking lot to a parking
structure to serve the downtown commercial district and nearby transit station with podium housing.
Staff prepared alternative project pro forma analyses and site layouts in order to determine the most
effective use of the urban site. Because a portion of the site was owned by commercial property owners
and another portion was developed as affordable housing, the City needed to develop solutions to
relocate the existing housing and acquire the commercial properties prior to development. The scenarios
provided options for the City to ultimately decide the direction that the project would take.
Reference: Mark Sawicki, 650-802-4220.
Employment Based Immigration Preference #5 Program Economic Impact Analysis
TMG's staff has experience working with both public and private entities. Recently, staff conducted an
economic impact analysis for a private client seeking permanent citizenship in the United States via the
U.S. Citizenship and Immigration Service Employment Based Immigration Preference #5 Program (EB-5).
One requirement of the program is an economic impact analysis that illustrates how the immigrant's
investment of $500,000 in a U.S.-based business will generate at least 10 direct jobs. The economic
impact analysis utilized IMPLAN input-output modeling software to generate direct, indirect, and induced
impacts of the investment, including jobs created, estimated employee wages, and the impact on the
gross regional product.
Reference: Scott MacLeod, Innovation Surfaces, 949-282-8045.
Ll
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. As of July, 2012, the project has been reviewed by the Planning Commission and Housing
Authority and undergone entitlement review by the Planning, Public Works, and Building and Safety
divisions. The project is slated for a phased construction over the coming years.
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 on. 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 negations 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 another 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.
Real Estate Programs
City of La Quinta Home Purchase and Rehabilitation Program
TMG staff was previously engaged to develop the City's Home Purchase and Rehabilitation Program.
The Program sought to provide opportunities for low-income households to purchase and rehabilitate
dilapidated homes in the City. The Program, aimed to address the recent economic collapse and
resulting foreclosed home problems, included site identification, acquisition, rehabilitation, and
disposition, and was allocated $3.2 million.
Personnel
TMG commits to your project a qualified and experienced team. Principal, Jon McMillen will oversee and
manage the team and their respective responsibilities. Analyst, Brandon Fender will provide research,
financial modeling, and prepare documents and presentations.
See attached resumes:
TALL
MAN
GROUP, INC.
9548 Vista Aleta
Valley Center, CA 92082
760-212-2322
JON MCMILLEN, PRESIDENT
RESUME
Jon McMillen has been active in the development and real estate industry for 25 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 he renovation of the historic Village
Theatres for the City of Coronado. Other recent assignments have included pro forma analysis for the
SilverRock Resort, as well as property acquisition and development solicitation for the 218-unit Dune
Palms Apartment development, both in La Quinta. He has worked with the City of Twentynine Palms to
identify and analyze potential development strategies that would allow the City to meet their affordable
housing mandates.
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
Professional Memberships and Certifications:
Board of Directors, Deer Springs Fire Safe Council
President, Gordon Hill Road Fund
Licensing: State of California Contractors State License — B — General Building No. 551510
Issued December 1988
T
TALL
MAN
GROUP, INC.
9548 Vista Aleta
Valley Center, CA 92082
760-703-7920
BRANDON FENDER, ANALYST
RESUME
Brandon Fender graduated from the Social Ecology undergraduate program at the University of
California, Irvine in 2010. Mr. Fender specializes in spatial analysis with Geographic Information Systems
software, regional economic impact analyses using IMPLAN modeling software, housing administration
and compliance monitoring, project pro forma analyses, and municipal financing.
Mr. Fender worked on a project team for the City of Los Angeles Community Redevelopment Agency's
Marlton Square Project. Marlton Square is a retail development in an economically depressed area of
South Los Angeles. For almost two decades, the Agency listed Marlton Square as an opportunity site,
but every effort to redevelop the site fell through. In 2012, Mr. Fender analyzed the site and prepared pro
forma analyses for a hypothetical development, property, sales, and use tax projections, and an
economic impact analysis. The results of the economic impact analysis, projections of direct, indirect and
induced employment, were utilized to persuade potential developers and State -level politicians that the
project was worthy of their attention. In June and July of 2012, a portion of the site was acquired by
Kaiser Permanente for development of a hospital and the remainder of the site was the subject of
negotiations with a developer for the retail center portion.
One of Mr. Fenders most exciting engagements has been the rehabilitation planning of the Washington
Street Apartments housing complex in La Quints, California. In an effort to provide safe and healthy
housing to the seniors and disabled adults of La Quinta, the City implemented rehabilitation of the
housing development, which will house nearly one hundred residents. The City, design team and
consultants worked in concert to develop concepts, refine plans, and review for code compliance in order
to approve project development entitlements in under four months. While the project was put on hold in
2012 with the dissolution of redevelopment agencies, Mr. Fender remains hopeful that Washington Street
Apartments will be rehabilitated.
Mr. Fender is committed to community development and thrives under challenging conditions. His
passion lies in creating urban spaces that are equitable, economically feasible and sustainable.
Education: BA, Social Ecology, University of California, Irvine
Professional Memberships and Certifications:
ESRI Certified Geographic Information Systems
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HOURLY RATES AND FEES
Principal
Senior Associate
Associate
Senior Analyst
Analyst
Clerical
Reimbursable Expenses
$ 165
$ 145
$ 130
$ 110
$ 95
$ 60
Cost plus 10%
TMG does not charge clients for mileage, parking, telephone or fax expenses, general postage or
incidental copies. TMG does charge for messenger services, overnight shipping mail costs; and
teleconferencing 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
mentioned 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. Previous and current projects are listed below:
• Pro Forma analysis Watercolors, 2001
• Development and feasibility analysis for original property acquisition Silver Rock Resort, 2001-
2002
• Conceptual development analysis Vista Dunes and Dune Palms Mobile Home Parks, 2003-2004
• Relocation, development analysis, and final disposition of Vista Dunes, 2003-2007
• Property acquisition and residential relocations Dune Palms/ Westward Ho site assembly 2006-
2009
• 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
• Washington Street Apartments Rehabilitation, Current
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