Hunts Point Marine TerminalRequest for Proposals

Information Session

April 8th, 2019 | 2:00pm-4:00pm

Agenda

1. Welcome

2. Project Overview

- RFP Timeline

- FreightNYC

- Project Goals

- City Offerings

- Selection Criteria

3. Proposal Requirements

4. Questions

5. Networking

The Project

NYCEDC, on behalf of the City of New York, is seeking responses to the RFP

from entities interested in operating a non-exclusive marine terminal on the

Bronx’s Hunts Point peninsula.

We encourage responses that result in frequent reliable cargo transportation

options serving businesses within the Hunts Point Food Distribution Center.

Modal shift from road to waterway.

Project Overview - RFP Timeline• Release: March 18

• Site Visit: March 26

• Info Session: April 8

• Final Questions Due: April 25 (2.5 weeks away)• to hpmarineterminal@edc.nyc by 5:00 pm EDT

• Final Answers Posted by: May 9• on project webpage

• https://www.nycedc.com/opportunity/hunts-point-marine-terminal-rfp

• Proposals Due: June 7 • Five (5) hardcopy proposals plus one (1) digital copy on a USB drive, identified as

“RFP – Hunts Point Marine Terminal” on the envelope, must be submitted to and received by NYCEDC no later than 4:00pm EDT

• Such proposals must be delivered to the following address: New York City Economic Development Corporation 110 William Street, 6th Floor New York, NY 10038 Attn: Maryann Catalano, Chief Contracting Officer

Project Overview - FreightNYC

Key pillar of New York Works, Mayor de Blasio’s jobs plan

$100m multimodal strategy to modernize NYC’s freight distribution system

Goals:- Create 5,000 jobs- Reduce congestion - Improve air quality

Strategies:- Maritime investments - Rail investments- Urban distribution- Clean trucks

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Project Overview - FreightNYC

Urban Distribution

Maritime

Rail

Clean Trucks

Change how freight enters NYC

Change where freight is stored/warehoused

Ensure that trucks that serve those facilities are green

Hunts Point Peninsula

• Largest food cluster in NYC and the US• 690-acre peninsula with about 650 businesses and 13,000 employees• Hunts Point Food Distribution Center occupies 329 acres, 115 public and private

industrial food business, with more than 8,500 employees• Businesses distribute 4.5 billion pounds of food annually, serve 22 million people

• Large generator of truck traffic• Peninsula generates roughly 15,000 truck trips each day

Project Overview – Goals

1. Operate a Marine Terminal

- Non-exclusive

- Various cargo types, ideally various vessel types

- Potential to scale, potential to integrate with regional service

2. Provide a Reliable Barge Service

- Commits to operating or contracting reliable service

3. Create Good-Paying Jobs

- Workforce development programs targeted at the local communities

4. Reduce Truck Traffic and Improve Air Quality

- Decrease in overall truck traffic in NYC and Hunts Point

Project Overview - City Offerings

Land

Capital

Incentives

Project Overview - City Offerings

Land

- Site A: City-owned, approx. 5 acres that may be made available for the Project, currently under lease to a third party, subject to NYCEDC’s successful negotiation with third party

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Project Overview - City Offerings

Site A option

Project Overview - City Offerings

Land

- Site A: City-owned, approx. 5 acres that may be made available for the Project, currently under lease to a third party, subject to NYCEDC’s successful negotiation with third party

- Site B: Respondents may propose to locate the Project on a private site in Hunts Point under their control

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Project Overview - City Offerings

Project Overview - City Offerings Land

- Site A: City-owned, approx. 5 acres that may be made available for the Project, currently under lease to a third party, subject to NYCEDC’s successful negotiation with third party

- Site B: Respondents may propose to locate the Project on a private site under their control

Capital

- NYCEDC may choose to activate some portion of a $25M City Capital allocation for capitally eligible Project expenses. Ex: site development, equipment

- NYCEDC is prepared to activate some portion of these funds based on the financial needs of the Project and the amount of investment being counter proposed by Respondents.

- City Capital funds at Site B? Yes, if the site/equipment is under City control.

- Respondents should note that City Capital cannot be used to construct improvements on a private site not under City or NYCEDC control.

Incentives:

- The Project may be eligible to apply for BuildNYC tax-exempt bonds and Industrial Development Agency (IDA) benefits, which include property tax, mortgage recording tax, and sales tax relief.

Project Overview - Selection Criteria

RFP Goals30%

Feasibility25%

Economic Offer25%

Qualifications20%

Project Overview - Selection Criteria

Consistency with RFP Goals - 30%

- Ability to operate a marine terminal

- Ability to provide reliable water transportation services

- Estimated number of direct jobs created

- Estimated reduction in truck traffic in NYC and local Hunts Point

Project Feasibility – 25%

- Cargo Demand

o Types to target for switching to waterborne transit

o Inbound & outbound

- Financial Feasibility

o Sufficient revenue to fully fund proposed operations

Economic Offer – 25%

- Produce a direct, measureable dollar net benefit to NYCEDC through operating fees or other revenue streams

- Indirect and induced economic benefits to the City

Qualifications, Relevance, and Experience – 20%

- Record of terminal operations and business development

- Staffing and management plan

- Project implementation plan

Proposal Requirements

1. A completed Proposal Checklist

2. Respondent Description

3. Project Description *

4. Project Financials *

5. Truck Reduction and Environmental Sustainability Plan *

6. Internal Background Investigation Questionnaire

7. Living Wage, Prevailing Wage, and HireNYC

8. Local Law 34 Doing Business Data Form

9. Statement of Agreement

Proposal Requirements – Project Description

1. Site Selection and Design

2. Project Implementation Plan

3. Business Plan

4. Respondent Needs

Proposal Requirements – Project Description

1. Site Selection and Design

• Every proposal should include a conceptual design

2. Project Implementation Plan

• Identify major milestones and actions needed

3. Business Plan

• Hefty, will elaborate

4. Respondent Needs

• What exactly needed for this Project to happen?

Proposal Requirements – Project Description

Business Plan

• Customers – proposed and ideally committed

• Site A

• NY Agriculture & Markets, predominantly serve customers in FDC

• If outside the FDC, additional approvals may be needed

• Site B

• Outside FDC, not the same requirements

Proposal Requirements – Project Description

Business Plan

• Minimum Guarantees – detail terms willing to commit to

• Financial

• Flat monthly

• Revenue Split

• Performance

• Throughput

• Employment

Proposal Requirements – Project Description

Business Plan

• Barging Service Plan

• Example:

• Points served

• Number of sailings per week

• Cargo types of inbound/outbound

• Capacity of the service

Proposal Requirements – Project Description

Business Plan

• Terminal Operations Plan

• Business Partners

• Jobs Plan

• If Site B, Lease Terms to NYCEDC

Proposal Requirements – Project Financials

• Excel spreadsheet for download on project website

• Include a printout and the live digital file

Proposal Requirements – Project Financials

• A peak inside the spreadsheet?

• Tab 1 – ProForma

• Tab 2 - Respondent Fee Offer to NYCEDC

• Tab 3 – NYCEDC Rent Expense (site size)

• Tab 4 – Project Budget

• Tab 5 – Net to NYCEDC

Proposal Requirements – Environmental Sustainability Plan

• How does the proposal remove trucks from streets?

• either in absolute terms or in truck miles travelled.

• All best efforts should be made to use vessels with the cleanest emitting engines (per EPA standards) and safety features.

• Yard equipment such a reach-stackers, front loaders, etc. should also be candidates for clean emissions engines such as Compressed Natural Gas and electric.

• Respondents are encouraged to describe zero or low emission equipment used across all modes.

• A commitment to transparency with the community will be looked upon favorably.

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That’s a Wrap! THANK YOU.

Questions?

hpmarineterminal@edc.nyc

www.nycedc.com/opportunity/hunts-point-marine-terminal-rfp

Contracts Hotline: (212) 312-3969

Networking

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M/WBE Participation Proposal

M/WBE Program

- M/WBE Program established in NYC Administrative Code, LL129 of 2005 and LL1 of 2013

- M/WBEs must be certified by NYC Dept. of Small Business Services

If it is determined that MWBE requirements are applicable, the requirements would apply only towards the design and construction components of this Project. Typical target participation goals range from 20-30% for design and construction projects at the time of release of this RFP.