You are on page 1of 8

City of Dallas

Notice of Funding Availability (NOFA)


For Southern Dallas Food Desert
Grocery Store Development
Issued July 2016

INTRODUCTION
The purpose of this Notice of Funding Availability (NOFA) is to announce the availability of funding in an
amount up to $3 million from the City of Dallas (COD) through the Office of Economic Development to
assist in the development and/or location of one or more high quality grocery stores within or adjacent
to a southern Dallas food desert.
The City of Dallas goal is to promote sustainable neighborhoods, enhanced quality of life, economic
development and job creation by providing access to healthy food options, including fresh fruits and
vegetables, for our citizens through the development of high quality grocery stores in the citys most
underserved areas.
This NOFA is limited to minimum 25,000 SF grocery store projects to be located within or adjacent to a
current food desert as defined by the United States Department of Agriculture Economic Research
Service, within the southern sector of the City of Dallas (see included Food Desert Map). Projects must
have a City of Dallas physical address located in the southern sector of the city and within a USDA
defined low-income Census tract where a significant number or share of residents are more than 1 mile
from the nearest supermarket. Please visit the USDA Food Access Research Atlas online interactive map
at http://www.ers.usda.gov/data-products/food-access-research-atlas/go-to-the-atlas.aspx for more
information. All final geographic eligibility will be determined by the City of Dallas.
In accordance with the City of Dallas Public/Private Partnership Program, the funds available through
this NOFA are intended to be used on a reimbursement basis to fill a funding gap between available
funding sources and the projected total development/operational cost of the project to ensure that a
desirable project will move forward.
This NOFA should not be construed as implying or suggesting that the City of Dallas is under any
obligation to provide funding or other incentives to any applicant, and all proposals shall be considered
on a case-by-case basis. Proposals submitted pursuant to this NOFA will be competitively evaluated with
potential funding subject to a negotiation of material terms with city staff and final approval of a
development or grant agreement by the Dallas City Council.
Through this NOFA, the City of Dallas Office of Economic Development intends to gap fund the
development of one or more new grocery stores serving residents living in food deserts within the
southern portion of the city of Dallas. The City will place great emphasis on proposed projects that
clearly demonstrate the ability to fulfill the intent of this NOFA as evidenced by prior operating and/or
development experience with a track record of developing projects on time and within budget.
As it is the Citys intent to proactively secure the development of a grocery store(s) in areas of most
need, in addition to the proposed funding available herein, the City will consider other programs,
resources, and forms of financial participation to achieve the objectives of this NOFA.
This NOFA and related information will be made available on the Office of Economic Development web
page (www.dallas-ecodev.org/groceryinfo).
2

Proposal Evaluation Process


Proposals submitted pursuant to this NOFA will be competitively evaluated. All proposals will be kept
confidential until such time that terms and a project agreement is finalized for City Council
consideration. Proposers that present the capability to develop and operate a high quality full service
grocery store at the least financial cost to the City may be selected for further discussions. Incomplete
proposals will likely be rejected.
Questions and Technical Assistance
All questions must be submitted via email to groceryinfo@dallascityhall.com or by calling the Dallas
Office of Economic Development at 214-671-9819.

TIMELINE
DESCRIPTION
SD Food Desert NOFA posting

July 2016

Proposals due by 12 p.m. CT (Noon)

November 30, 2016

Minimum Qualifications
Proposals will be accepted from grocery companies, for-profit developers, joint ventures, limited liability
corporations, and limited partnerships, or teams thereof.
A. Minimum of five years prior experience in project development, management and/or
operational oversight of a grocery store. Additional preference will be given to grocers
and/or developers with direct experience in Dallas-Fort Worth urban areas or with similar
urban markets.
B. Proven financial capacity to develop a similar-size site (according to the proposed plan) and
maintain operations over a three to four year stabilization period.
C. Adequate cash reserves to manage all components of the project for a minimum of three (3)
years after completion.
D. Demonstrated ability to bring needed partners and related financial commitments to the
table.
E. Inclusion of team members with proven experience operating in culturally and ethnically
diverse neighborhoods is preferred.
3

Submission Instructions
Submit a hard copy of the proposal including the list of items described under the following section with
a cover letter to the attention of J. Hammond Perot at 1500 Marilla Street, Room 5CS, Dallas, TX 75201
by 12 p.m. CT (noon) on November 30, 2016. Applications submitted late will not be accepted.
The proposal submissions shall:
1. Provide a site plan for the proposed development and elevations of the proposed
development.

Proposed Uses
a. Grocery Store (required), additional associated proposed uses may include:
b. Commercial (other retail, office, hotel/hospitality, medical, and/or entertainment uses);
c. Housing (may include multifamily, townhouse, for sale or rental, and/or assisted living
facilities), with a preference for market rate housing or mixed-income housing.
Site Plan
a. Identify mixture of land uses on the site if multiple uses are included in the proposal.
b. Provide a consistent landscaping and streetscaping plan for the project; and
c. Show pedestrian connections within the site and adjacent property, as well as
open/green spaces, pedestrian/transit connections, and internal site circulation.
d. To the extent possible, minimize surface parking visible from any street.
Elevations
a. Show faades of all portions of the project that face any street; and
b. Maximize visual transparency through the number and size of doors and windows.

2. Provide proposed finance structure with capital stack including a sources and uses worksheet
for the proposed development. If applicable, provide a pro forma and include ongoing
investment program for capital expenditures.
3. Outline provisions of all contractual agreements needed between the development team,
other parties, and the City to implement the proposed development plan including land
acquisition, needed leases of property, operating agreements, proposed financial incentives,
etc. Detailed information about key deal points needs to be included with this information.
4

Eligible Project Types

Stand-alone new construction


Anchor within new shopping center or mixed-use development
Rehabilitation of vacant or underutilized space

Project Review
All projects submitted will be qualitatively reviewed for the following:

Experience: Proven track record of the applicant to build and/or operate quality grocery stores;
Financial Capacity: The ability of the applicant to acquire or control the proposed site and
obtain the additional private financing to operate the facility at high standards;
Timeliness: The ability to initiate and complete the project within a timely manner;
Quality: The ability of the applicant to deliver a high quality development with an established
brand;
Design: The ability of the applicant to design and sustainably integrate a minimum 25,000 SF
grocery store within the community;
Community Outreach: The ability of the applicant to engage with and respond to the needs of
the community; and
Local Hiring: The commitment of the applicant/grocer to recruit and hire from the adjacent
neighborhoods and include qualified Minority and Women-Owned Business Enterprises in the
project.

Eligible Funding Uses


The Citys proposed funding participation is envisioned as a reimbursement subsequent to substantial
completion of the project. Funds can generally be used as reimbursement for acquisition,
predevelopment, rehabilitation or construction related costs as well as operational costs. The City of
Dallas will not consider financing for the sole purpose of acquisition, refinancing existing debt, or
renovation of an existing grocery store operation. Funding is contemplated for the reimbursement of
the following project costs:

Site acquisition, new construction, reconstruction, or rehabilitation of a vacant grocery


store, including real property acquisition, site improvements, conversion demolition, and
other expenses, including financing costs.

Construction and permanent financing expenses including demolition and construction


bonds; general contractor and subcontractor payments including overhead, profit and
general conditions.

Process Steps
The City will review proposals for completion for content and pertinent information to make a
determination of feasibility and reasonableness. At a minimum, the following steps will occur:
a.
b.
c.
d.
e.

Preliminary review by staff


Developer discussions/negotiations
Selection of project(s)
City Council Economic Development Committee review/recommendations
City Council review for approval

Other
Defaults, Foreclosures and Citations:
All proposers, including partners and principals, must disclose bankruptcies, defaults or foreclosures,
conflicts of interest or any event which could lead to a potential bankruptcy, default or foreclosure or
conflict of interest. In addition, proposers should not be in litigation with the City and should be current
on taxes with the City.
For this purpose, violation of terms, conditions and/or covenants, whether or not a Notice of Default has
been recorded, is deemed a default. Failure to disclose an actual or potential bankruptcy, default or
foreclosure or conflict of interest may result in the rejection of the proposal.
Code violations and their remediation on any existing projects within the City should also be disclosed.
If disclosure is made with respect to the above, the applicant must provide a complete explanation of
the circumstances and current status. The City of Dallas, in its sole discretion, will determine if the
explanation is acceptable. An unacceptable history of delinquencies, bankruptcies, defaults or
foreclosures, or conflicts of interest are all, singularly or in combination, grounds for rejection of a
proposal.

Food Desert Map

DEVELOPMENT PROPOSAL CHECKLIST


I. Cover Letter with description of specific proposal(s) to the City
II. Project Data
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.

Project Name/Description/Location (map)


Project Manager(s)
Project Contact Phone # and email address
Proposed grocery with plans for proposed development, site plan, financing, etc
Grocery and/or developer experience, resume & references
Market assessment for the property under consideration
Evidence of ability to control site
Discussion of anticipated rezoning or replatting
Describe any neighborhood/community input considered in your project proposal
Development schedule and timeline

III. Project Financial Data


A. Sources and uses of project funds
B. Capital Stack
C. Lender and builder commitments
IV. Proposer Information
A. Company/Organization legal name
B. Names of affiliated companies, including general and limited partners
C. Type of business (sole proprietorship, corporation, partnership)
D. Name of owner(s), Executive Director, President, Vice President, Treasurer
E. Official Address
F. Previous development history
G. Applicants background (experience of applicant and key personnel)
H. Disclosure of defaults, foreclosures, bankruptcies, litigations, etc.

You might also like