Taconic Development Center RFP Final 02.18.25.pdf

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REQUEST FOR PROPOSALS

FOR THE PURCHASE AND DEVELOPMENT OF

TACONIC DEVELOPMENTAL CENTER

26 Center Circle, Wassaic, Dutchess County, New York

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Issued: February 19, 2025

Important Notice: A restricted period under the Procurement Lobbying Law is currently in effect for this Procurement and it will remain in effect until approval of the Contract. Bidders are prohibited from contact related to this procurement with any New York State employee other than the designated contacts listed below.

Designated Contacts for this RFP:

Primary Contact: Ralph Volcy Secondary Contact: Julia Borukhov

All contacts/inquiries shall be made by email to the following address:

TaconicRFP2025@esd.ny.gov

Proposals must be uploaded to the designated Dropbox:

https://www.dropbox.com/request/YxNCwacmoSCJ6nzvvn40

This RFP is posted on the Empire State Development website:

https://esd.ny.gov/doing-business-ny/requests-proposals

Submission Deadline: June 20, 2025, by 2:00 PM EST Late submissions will not be taken into consideration.

mailto:202XWassaic@esd.ny.gov https://www.dropbox.com/request/YxNCwacmoSCJ6nzvvn40

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Table of Contents

I. INTRODUCTION

II. RFP TIMELINE

III. SITE CONTEXT AND DESCRIPTION

A. Site

B. Zoning and Land Use

C. Existing Structures, Infrastructure, and Utilities

D. Environmental Conditions and Review Process

E. Historic Resources

F. Ownership and Taxes

IV. REDEVELOPING UNDERUTILIZED SITES FOR HOUSING

V. DEVELOPMENT OBJECTIVES AND REQUIREMENTS

A. Development Objectives

B. Development Program

C. Transaction Structure and Approvals

D. Cost Agreement and Imprest Account and Other Fees

E. MWBE and SDVOB Subcontractor Interest

VI. REQUIRED PROPOSAL CONTENTS

A. Project Description

B. Site Plan and Architectural Design

C. Community Engagement Plan

D. Local Hiring Plan

E. Financial Proposal

F. Development Schedule

G. Respondent Description and Qualifications

VII. SELECTION CRITERIA

VIII. DEVELOPER DUE DILIGENCE

A. Disposition and Approvals

IX. PROPOSAL SUBMISSION INSTRUCTIONS

A. Submission of a Complete Two-Part Proposal

B. Questions

C. Site Visit

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X. GENERAL PROVISIONS

XI. PROCUREMENT FORMS AND REQUIREMENTS

A. Conflicts of Interest

B. State Finance Law Sections 139-j and 139-k Forms

C. Vendor Responsibility Questionnaire

D. Iran Divestment Act

E. Executive Order 16

F. Executive Order 177

G. Non-Discrimination and Contractor & Supplier Diversity Requirements

H. Encouraging the Use of NYS Businesses in Contract Performance Form

I. Certification under State Tax Law Section 5-a

J. Schedule A

K. Project Sunlight

L. Insurance Requirements

M. W-9 Form

XII. APPENDICES

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I. INTRODUCTION

New York State Urban Development Corporation, d/b/a Empire State Development, a public authority of the State of New York, constituting a political subdivision and public benefit corporation (“ESD”), is seeking proposals (“Proposals”) from qualified and responsible parties for a project (the “Project”) that entails the disposition and redevelopment of state-owned land for residential use, including affordable housing, and associated mixed uses. Each party that submits a Proposal to this RFP is referred to herein as a “Respondent”. A Respondent that is conditionally designated through this RFP process is referred to herein as a “Designated Developer.”

The project site is approximately 330 acres located at 26 Center Circle, Wassaic, New York 12592 (the “Site”). It encompasses the remainder of the Taconic Developmental Center campus (the “Taconic Campus”), which currently houses the Taconic Developmental Disabilities Services Office (the “Taconic

DDSO”).

ESD invites all qualified parties to submit proposals for the redevelopment of the Site in accordance with the goals and objectives of the Project and the parameters specified in this Request for Proposals (“RFP”).

ESD is interested in proposals that will provide maximum benefits to the State of New York and the surrounding community. The Site’s size, location, and accessibility to New York City and the Hudson Valley make it an exciting opportunity for creative, well-planned development.

Respondents are invited to propose a mixed-use development plan that provides housing and generates economic development. Housing should include affordable and market rate units and consider uses to support the Site and surrounding area’s residents including but not limited to, retail, community facility, and open space. Economic development uses should be informed by the current Mid-Hudson Regional Economic Development Council Strategic Plan and provide well-paying job opportunities for residents of the surrounding area. The proposal should include a master plan (the “Plan”) for the entire Site (see Figure

1) and a detailed plan for phase 1 (the “Phase 1 Plan”) for the portion of the Site within a ½ mile of the Tenmile River commuter railroad station that is operated by Metro-North Commuter Railroad Company (“Metro-North”), a subsidiary of the Metropolitan Transportation Authority (“MTA”) (see Figure 2). The Designated Developer will be selected to execute the Phase 1 Plan. Further phases are expected to be developed by the Designated Developer, subject to its Plan, contingent on achieving defined milestones.

https://regionalcouncils.ny.gov/sites/default/files/2023-12/MHREDC_Strategic_Plan_2023.pdf

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II. RFP TIMELINE

The following are significant dates under the RFP Process:

Milestone Timeline

1. RFP Release Date February 19, 2025

2. Deadline for Submission of 1st Round Questions March 5, 2025

3. Deadline to RSVP for Site Tour March 11, 2025 by 6:00 PM

4. Deadline for ESD Responses to 1st Round Questions March 17, 2025

5. Site Tour March 18, 2025

6. Deadline for Submission of 2nd Round Questions April 1, 2025 by 6:00 PM

7. Deadline for ESD Responses to 2nd Round Questions April 15, 2025

8. Deadline for Submission of Proposals June 20, 2025 by 2:00 PM

9. Interviews (if necessary) TBD

10. Announcement of Designated Developer TBD

11. Anticipated Contract Start Date TBD

Please note, ESD reserves the right to change any of the dates listed in this RFP.

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III. SITE CONTEXT AND DESCRIPTION

A. Site The Site is located at 26 Center Circle, Wassaic, New York in Dutchess County. It is approximately 2.5 miles west of the New York-Connecticut border. By vehicle, it is approximately two hours north of New York City, 1 ½ hours south of Albany, and 45 minutes east of Poughkeepsie.

The Harlem Valley, named for the New York and Harlem Railroad that served it, is known for its scenic and natural resources. The rural landscapes surrounding the Site feature rolling hills, farmland, streams and wetlands, and steep forested valleys and gorges.

Wassaic was historically developed as a small railroad village where the New York and Harlem Railroad company connected the area’s many small dairy farms to the rest of the region. Today, the hamlet, as well as the Town of Amenia, remain rural communities, increasingly home to recreational, cultural, creative, and tech opportunities that serve the New York metropolitan area. Examples include the scenic Harlem Valley Rail Trail and the Wassaic Project’s artist-in-residence programs.

The Taconic Campus is owned by the People of the State of New York acting through the Dormitory Authority of the State of New York (“DASNY”) and is managed by the New York State Office for People With Developmental Disabilities (“OPWDD”). The Site is approximately 330 acres and consists of approximately 53 buildings and structures in varying condition that were formerly used as a State-operated long-term care center for disabled individuals. By December 31, 2013, all dorms were vacated by inhabitants of the facility, and the Site has remained generally vacant since that time. Vacant buildings include space for residency, programs, athletics, and auditoriums. The Site is currently used for OPWDD administrative and work control functions in 21 buildings, which include ancillary structures, such as the sewage treatment plant, transformer vault, water tower, and well pump stations. The existing structures were built between 1927 and 1950 and total approximately 740,000 gross square feet. At its peak, the Site housed 5,500 residents. Most of the Site’s buildings are situated on top of a hill, offering expansive views of the bucolic Harlem Valley to the west, north and south (see Appendix A: Building Location and Status Map for a list of buildings on the Site).

Over the past decades, OPWDD has shifted how it provides services to better serve its clients, from an institutionalized to a community-based approach of care. This service approach has facilitated a consolidation of operations and resulted in OPWDD no longer providing services in the buildings spread across the remaining Taconic Campus. However, the agency continues to bear the financial and administrative burdens of securing and maintaining vacant and deteriorating buildings and the grounds upon which they sit.

The Tenmile River Metro-North Rail Station is located at the entrance to the facility, alongside of which flows the Tenmile River. The station is the next to last stop on Metro-North’s Harlem Line and approximately two hours from Grand Central Terminal via Metro-North rail service or by vehicle. In anticipation of new development on the Site, the station was constructed as part of Metro-North Railroad’s extension of its Harlem Line from Dover Plains to Wassaic and opened in 2000. Proximity to this station makes the Site well suited for a mixed-use, transit-oriented development. Dutchess County “Route D” buses connect the Site and the Tenmile River Metro-North Station with nearby Millbrook, Dover Plains, Pleasant Valley, and Poughkeepsie. The Site is within 1,000 feet of Route 22 and located near the Route 22 commercial corridor between Pawling and Amenia. This Site is also easily accessible from I-84, I-90, and I- 95.

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Figure 1: Site and area map.

For the purpose of this RFP, the Site is divided into five parcels (see Figure 1):

• Parcel 1 - Includes four wells, and a pump house that supply water to the Site. It is primarily wetlands. The approximate size is 33 acres.

• Parcel 2 - Houses a recreational building. It is accessed via a gravel road that begins on Parcel 1 and traverses private property courtesy of an easement. The parcel is bisected by Webatuck Creek and is partially wetlands. The approximate size is 19 acres.

• Parcel 3 - Contains a residential home that was once the Center Director’s house. The approximate size is 4 acres.

• Parcel 4 - Contains the majority of the Site’s buildings. The approximate size is 188 acres.

• Parcel 5 - Separated from Parcel 4 by Metro-North Railroad tracks. It contains an electrical substation, a nonoperational wastewater treatment plant, at least two closed landfills, and a cemetery. It is anticipated that the cemetery would not be subject to the disposition and would continue to be maintained by OPWDD, with a reservation of an easement across other portions

Page 9 | Taconic DC RFP of the Site to allow the cemetery to be accessed by visitors and maintenance workers. The parcel is partially wetlands. The approximate size is 86 acres.

ESD requires that the Phase 1 Plan (see Figure 2 for boundary) be developed on Parcels 3 and 4 within a ½ mile of the Tenmile River Metro-North station. The ½ mile radius around the station is consistent with the Town of Amenia’s zoning regulations and comprehensive plan for transit-oriented development. Refer to Section III(B): Zoning and Land Use for more information on the zoning districts and their purposes.

Proposals should maximize the underlying zoning regulations. In doing so, should Proposals not need to utilize all portions of land within the Phase 1 Plan boundary the remaining portions should be included in a subsequent phase or phases of the master Plan. The location of infrastructure to be constructed to support the Phase 1 Plan is not required to be within the Phase 1 Plan boundary or the ½ mile radius of the Tenmile River station.

Figure 2: Phase 1 Plan boundary map.

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B. Zoning and Land Use Development in the Town of Amenia is informed by its 1991 Amenia Master Plan, which was updated in the 2007 Comprehensive Plan and amended in the 2023 Comprehensive Plan Addendum. The Comprehensive Plan Addendum notes that, in conjunction with zoning text amendments, it is meant to "encourage more housing - low, affordable, moderate-income, high-end, and rental - to create a genuinely multigenerational community.” Applicable zoning requires that a development exceeding 10 dwelling units provide a minimum 10% for workforce housing. Additionally, conservation subdivision regulations, which are applicable for portions of the Site, allow for a density bonus of up to 50% if a residential development includes 25% or more affordable units in its program. The Town of Amenia has also applied for certification under the State’s Pro-Housing Communities Program.

Should Proposals contemplate approval of local zoning changes, ESD will evaluate such Proposal based on financial viability, justification, and level of community benefit to the Town, County, and State.

Figure 3: Zoning map.

https://ameniany.gov/wp-content/uploads/2022/07/7.19.2022-Comprehensive-Plan-Update.pdf https://ameniany.gov/wp-content/uploads/2022/07/7.19.2022-Comprehensive-Plan-Update.pdf https://ameniany.gov/wp-content/uploads/2024/09/42.2023-Resolution-adopting-Amendments-to-the-Town-of-Amenia-Comprehensive-Plan.pdf https://hcr.ny.gov/phc

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The following text is directly from the Town of Amenia’s zoning code, available here.

The Site consists of five zoning districts (see Figure 3):

• Hamlet Mixed Use (HM) - The purposes of this district are to maintain the traditional scale, density, architectural style, and mixed-use character of the existing Amenia and Wassaic hamlet core areas, to allow them to be restored, revitalized and expanded to become more economically viable, and to allow for the creation of new hamlet centers where access to commuter rail stations makes such centers viable for transit-oriented development.

• Hamlet Residential (HR) - The purpose of this district is to maintain the traditional scale, density, and character of small hamlets and the residential neighborhoods surrounding the hamlet cores and to allow expansion into surrounding land areas that are generally within walking distance from the hamlet centers or the train stations.

• Industrial/Manufacturing (M) - The purpose of this district is to allow industrial and related uses and adult entertainment, uses that are not compatible with most commercial, office, or residential uses, in isolated and well-buffered locations.

• Rural Agricultural (RA) - The purpose of this district is to maintain the Town's working landscape by promoting agriculture, forestry, recreation, land conservation, and low-density residential uses, as well as compatible open space and rural uses, by encouraging such activities and discouraging large-scale residential development.

• Rural Residential (RR) - The purpose of this district is to allow residential uses in a rural setting, at a lower density than is allowed in the hamlets.

The Site consists of one land use and development overlay zoning district (see Figure 3):

• Mixed-Use Institutional Conversion Overlay District (MCO) - The purpose of this overlay district is to facilitate the redevelopment of privately owned portions of land that were formerly part of the Taconic Developmental Disabilities Services Office (TDDSO) as a mixed-use transit-oriented community that fulfills the goals of the Town of Amenia Comprehensive Plan by providing needed jobs, public facilities, open space, housing, commercial, and other nonresidential uses. The Town wishes to attract development to this site because it contains serviceable buildings and water and sewer infrastructure, as well as good highway and commuter rail access. The provisions of this overlay district are intended to implement the specific goals of the Comprehensive Plan for this site by streamlining permitting and allowing use flexibility. The Town recognizes that, as of the date of enactment of this section, about half of the land in the MCO District is owned by the State of New York for the care of developmentally disabled persons. The intent of this section is to support the continuation of the TDDSO as the Town's major employer and to encourage a public-private partnership that enables development to occur in the immediate future for the portion of the site in private ownership. Such development should meet the needs of both the Town and the employees, customers, and other users of the TDDSO, while encouraging an integrated site design for the entire MCO District.

C. Existing Structures, Infrastructure, and Utilities The Site currently contains 53 buildings and structures. For the full list of buildings and their location, operational status, year built, and square footage see Appendix A: Building Location and Status Map. It is anticipated that current OPWDD operations in buildings 16, 17, 18, 19, and 39 will continue. In the event these operations are relocated, there may be potential for redevelopment of these buildings.

Respondents may contemplate conversion of existing structures for residential or non-residential use to the extent they enable efficient design and programming and enhance economic viability. Demolition of https://ecode360.com/13959753#13959753

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Utilities that serve the Site include water, heat, and electricity. Four wells that feed a pump station operated by OPWDD, on Parcel 1, distribute water to the water tower, on Parcel 4, and buildings on the site. Heat is provided to the Site via steam tunnels operated by OPWDD. Electricity is provided to the Site via an electrical substation on Parcel 5 operated by New York State Electric & Gas Corporation.

The wastewater treatment plant is nonoperational and will need to be replaced. The road network within the site will need to be upgraded to meet Town standards.

The Designated Developer is responsible for the full cost of planning, designing, implementing, and on-going maintenance of appropriate safety improvements to each grade crossing in the development area.

Improvements may include installation of signals, gates, and other warning devices that are tied into the Metro-North signal system. Planning, design, implementation, and maintenance must comply with MTA/Metro-North standards, as well as NYS Department of Transportation and/or other requirements and approvals as applicable.

D. Environmental Conditions and Review Process Pursuant to New York's State Environmental Quality Review Act (“SEQRA”), an environmental review of the proposed Project must be completed prior to ESD’s approval of the Project. Dependent on the Proposal, it is anticipated that an Environmental Impact Statement will be required to evaluate potential environmental impacts of the proposed development, together with any feasible and prudent measures that may be required to avoid or minimize certain anticipated environmental impacts. The lead agency for environmental review will be established during the SEQRA process for the proposed Project. For more information on environmental review and the disposition process, see Section VIII: Developer Due Diligence.

In July 2018, a Phase 1 Environmental Site Assessment was conducted by HRP Engineering, PC, see Appendix B: ESA Phase I Report. This report is to be used for informational purposes only in preparing responses to this RFP; ESD makes no representations about the accuracy or completeness of the report’s review of environmental conditions on the Site that were documented in the report.

Due to the presence of wetlands and streams on and near the Site, a wetland and stream screening is required. See Appendix E: Wetland and Stream Screenings Guidance for information on how to conduct the screening. Proposals should include the desktop research portion of the screening.

The Designated Developer will be responsible for conducting all due diligence investigations and remediation, including, but not limited to, environmental site assessments, which include sampling and testing of the soil, sediments, and ground water (if any). No representation or warranty is made nor shall be given by ESD, the State of New York, or any other entity as to any environmental condition at or under the Project Site, which is offered “AS IS” and “WHERE IS”. The term “environmental condition” as used herein includes but is not limited to any hazardous and/or toxic substance as defined in any State or Federal law, rule or regulation, solid waste, petroleum and/or petroleum by-products, endangered species of fauna or flora, archeological feature or artifact or any other matter or site condition which may affect the development of the Project Site.

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E. Historic Resources The State Historic Preservation Office (“SHPO”) of the New York State Office of Parks, Recreation and Historic Preservation has previously determined that development at the Site will have no impact on archaeological and/or historic resources listed in or eligible for the New York State and National Registers of Historic Places. This determination will need to be reevaluated by SHPO during the environmental review process.

The contents of the Chapel are owned by the New York Archdiocese, and their return to the Archdiocese will have to be discussed upon determination of the Chapel’s future.

F. Ownership and Taxes The Site is currently owned by the People of the State of New York acting through DASNY and is managed by OPWDD and is thus exempt from property taxes. Upon disposition of each project phase, property taxes of the subject property will be assessed by local government entities, including Dutchess County, the Town of Amenia, and the Dover Union Free School District. Respondents are encouraged to contact the Town of Amenia’s Assessor’s Office to obtain information regarding future property tax charges regarding their proposal.

Property tax exemptions may be available for eligible Projects or Project components through, for example, the Dutchess County Industrial Development Agency (“IDA”). Should the Town of Amenia opt into the newly created 421-p or 421-pp programs, adopted in the FY 2025 enacted budget, projects meeting applicable affordability and other requirements may enter into a Payment in Lieu of Taxes (“PILOT”) reflecting the tax benefits of the 421-p and 421-pp programs. For details of any relevant tax exemption programs, Respondents should consult relevant statutes and rules.

Proposals should indicate which tax exemption program(s), if any, Respondents plan to utilize. It is the Designated Developer’s responsibility to apply for and meet the requirements of any specific tax benefit program(s).

ESD reserves the right to request revised Proposals that reflect a PILOT to be issued by ESD. ESD reserves the right to make such requests to all Respondents or to a subset of all Respondents as set forth in Section VII: Selection Criteria. Any Respondents still under consideration may be given the opportunity to revise their Proposals, and any related provisions of the RFP will be amended or deemed amended as necessary.

IV. REDEVELOPING UNDERUTILIZED SITES FOR HOUSING

As part of the 2024 State of the State and the FY2025 Enacted Budget, Governor Kathy Hochul outlined a vision for addressing New York State’s housing crisis to make the State more affordable and livable for all New Yorkers. This groundbreaking and multifaceted plan to build new housing across the State included a $500 million capital fund to develop up to 15,000 new homes on state land through the Redevelopment of Underutilized Sites for Housing initiative (“RUSH”) after signing an executive order last year requiring all state agencies to examine properties within their control to determine their housing potential.

RUSH funding is available to meaningfully offset the cost to the Designated Developer to construct the wastewater treatment plant, upgrade the street network, demolish existing structures, and remediate environmental issues needed to facilitate the Phase 1 Plan and indicate how investments will facilitate future development phases. When submitting Proposals, Respondents should clearly note how much

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RUSH funding is being requested and provide basis for that request, including a breakdown of the construction estimate for each item. ESD will evaluate Proposals in part on Respondents’ ability to propose approaches that accommodate the applicable infrastructure costs while limiting the amount of RUSH Funding requested.

V. DEVELOPMENT OBJECTIVES AND REQUIREMENTS

A. Development Objectives The primary development objectives of the Project are to develop a mixed-use, mixed-income community that provides residential housing, including affordable housing, to meet housing demand, advance the Town of Amenia’s larger goals for creating a transit-oriented community, and improve economic opportunities for the Town of Amenia and surrounding municipalities. ESD is seeking Proposals for a high-quality mixed-used, mixed-income development that meets the following objectives (the “Development Objectives”):

1. Provide residential rental and homeownership opportunities, with a minimum 10% of units across the Site set aside for households earning up to 80% of AMI. Housing units should serve a broad range of incomes and populations;

2. Maximize benefits to the State of New York and surrounding community through the disposition and redevelopment of the Site while minimizing the State’s economic burden and environmental risk;

3. Create local job opportunities for residents complementing industries identified in the Mid- Hudson Regional Economic Development Council Strategic Plan, including but not limited to:

a. Sustainable Agriculture

b. Biotech and Life Sciences

c. Distribution Centers

d. Film and TV Production

e. Green Energy and Technology

f. Manufacturing

g. Research and Innovation

h. Tourism

4. Provide retail, community facility, and cultural uses to support the new residential development and contribute to the Town of Amenia and surrounding area’s existing establishments and services;

5. Provide meaningful open space opportunities to promote passive and active recreation;

6. Ensure adequate parking for the proposed development;

7. Improve infrastructure and undertake environmental remediation necessary to facilitate the proposed development;

8. Incorporate environmentally sustainable, resilient, and energy efficient development and building design that align with the New York State Climate Leadership and Community Protection Act’s greenhouse gas reduction goals and broader climate objectives. Proposals that contemplate the highest certification levels will be considered by ESD to be more competitive than Proposals that contemplate lower certification(s) or no certification; and

9. Ensure meaningful participation by certified MBE, WBE, and SDVOB entities.

B. Development Program Respondents must include the following development program in their Proposals. Failure to comply with the State requirements may result in disqualification of the response from evaluation:

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A Plan to be implemented by the Respondent, phased over a reasonable timeline, including:

• Residential Component o A minimum 10% of residential units will be set aside as affordable housing for households earning up to 80% of AMI.

o Residential units should be located in buildings with varied typologies that utilize the density and height allowances of the underlying Town of Amenia zoning regulations.

o Parking for residential units should be included and comply with the underlying Town of

Amenia zoning regulations.

• Non-Residential Component o Supporting non-residential uses including but not limited to, strategic business development, community-serving retail, community uses, arts and cultural programming, and agricultural uses.

o Parking for non-residential units should be included and comply with the underlying Town of Amenia zoning regulations.

• Adaptive Reuse o Respondents may convert existing structures for residential or non-residential use if doing so is more cost effective than demolition and new construction.

• Public Realm o A street grid with a pedestrian and bike friendly environment; and o Open spaces for passive and active recreation.

• Infrastructure o Respondents to include in the Proposal all infrastructure investments necessary to achieve the project. This includes but is not limited to environmental remediation, utilities, water and sewer, demolition of existing buildings, road upgrades and construction.

• Note that it is anticipated that current OPWDD operations in buildings 16, 17, 18, 19, and 39 will continue to be operated by OPWDD (see Appendix A: Building Location and Status Map). In the event these operations are relocated, there may be potential for redevelopment of these buildings.

Detailed proposal for the Phase 1 Plan, including:

• Up to 250 residential units including a mix of rental and homeownership opportunities.

o Proposals should assume to the extent possible income generated from market rate units cross-subsidize affordable units.

o The Phase 1 Plan is required to provide a minimum 20% of total units as rental housing.

o For homeownership buildings, Proposals should include a minimum of 10% of the units affordable to households earning an average of 80% of AMI. Proposals should consider additional affordable housing units through cross subsidization from market rate units.

Respondents should provide homeownership opportunities at a range of price points but in no event should sale price exceed what is affordable to households earning 200% of AMI (“Homeownership Program”). ESD reserves the right to consider the use of housing capital subsidy to promote greater affordability.

o For rental buildings, Proposals should include two scenarios that will be independently evaluated:

A minimum of 10% of the rental units affordable to households earning an average 80% of AMI. Consider additional affordable housing units through cross subsidization from market rate units (“Mixed-Income Rental Program”).

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A 100% affordable rental housing program complying with New York State Homes and Community Renewal (HCR) programs and term sheets (“Affordable Rental Program”). Proposals should not include use of the 9% LITHC program, however, this does not preclude a future application by a Designated Developer.

o Note that exceeding the 10% minimum in one phase does not offset the 10% minimum affordable housing requirement in other phases.

• Supporting non-residential uses.

• Infrastructure investments necessary to realize the Phase 1 Plan.

Note that development cannot occur within 25 feet from the centerline of the railroad tracks to allow for maintenance and safe access for railroad workers. Additionally, an eight-foot, non-scalable fence is required to separate the development from the active rail operation. The fencing will be installed and maintained by the designated developer and the materials used and installation plans are subject to Metro-North review and approval.

C. Transaction Structure and Approvals It is anticipated that the portion of the Site comprising the Phase 1 Plan will be conveyed to the Designated Developer at Phase 1 closing, and that the Designated Developer will hold title during development of the Phase 1 Plan. The Designated Developer will acquire fee title, subject to a purchase and sale agreement, restrictive declaration and any other customary transaction documents for this type of development. ESD also will enter into one or more development-related agreements with the Designated Developer at Phase 1 closing to implement the Phase 1 Plan. Among these documents will be a development agreement that will include detailed requirements for the Phase 1 Plan and outline terms, materials needed, and approval processes for the advancement of subsequent project phases. Should the Designated Developer fail to meet its obligations or is unable to achieve milestones for proceeding with subsequent project phases pursuant to the development agreement, ESD will reserve the right to terminate the development agreement with the Designated Developer.

ESD reserves the right to request revised Proposals that reflect a long-term ground lease of the portion of the Site comprising the Phase 1 Plan instead of a sale. ESD reserves the right to make such requests to all Respondents or to a subset of all Respondents as set forth in Section VII: Selection Criteria. Any Respondents still under consideration may be given the opportunity to revise their Proposals, and any related provisions of the RFP will be amended or deemed amended as necessary.

D. Cost Agreement and Imprest Account and Other Fees The Designated Developer must enter into agreements with ESD that will require the Designated Developer to pay, from the date of its conditional designation:

• ESD’s ongoing out-of-pocket costs and expenses incurred in connection with the Project and Site disposition to the Designated Developer, as memorialized in a Cost Agreement between ESD and Respondent described below ; and

• ESD’s administrative fee, one hundred thousand dollars ($100,000) of which will be paid a Term Sheet execution for ongoing work in connection with the Plan. An ESD administrative fee equal to the cost of direct and actual staff time on the project from the time of conditional designation until conveyance of each project phase, capped at five hundred thousand dollars ($500,000) and due at the Closing of each project phase. ESD reserves the right to adjust the cap of its administrative fee taking into consideration the Project’s development program and use of public funding sources.

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As part of their Proposal, Respondents must sign an agreement with ESD (the “Cost Agreement” provided in Appendix C: Cost Agreement) pursuant to which the Respondent will pay ESD for ESD’s reasonable out-of-pocket costs and expenses, including without limitation, those for consultants and legal counsel, incurred by ESD in the event the Respondent is selected as the Designated Developer. The signed Cost Agreement shall be accompanied by the Respondent’s check in the amount of $300,000 ( the“Cost Agreement Check”) payable to “NYS Urban Development Corporation d/b/a Empire State Development”.

The Cost Agreement Check will not be deposited initially. If the Respondent is selected as the Designated Developer to enter negotiations with ESD, the Cost Agreement Check will be deposited into an ESD imprest account (the “Imprest Account”) for the Designated Developer. If a Respondent is not selected as the Designated Developer, the Cost Agreement Check will be returned to the Respondent. ESD will draw on the Imprest Account to pay costs related to the Project. The Cost Agreement provides that the Designated Developer will fully replenish the Imprest Account in the amount of $300,000 each time the balance of the Imprest Account is reduced to below $125,000. Following Closing, any amount remaining in the Imprest Account and not required to pay outstanding costs will be returned to the Designated Developer.

If, at any time, ESD determines, in consultation with the locality, that ESD will serve as lead agency for the Project’s environmental review, and/or ESD determines it is necessary to seek approval of an override of certain municipal zoning requirements pursuant to the GPP to the extent necessary and legally required to implement the Project, and/or ESD otherwise reasonably determines that additional funds are required under the circumstances to implement the Project, the Designated Developer will make an additional deposit into the Imprest Account in the amount necessary to increase the balance to $500,000. In the case where the balance is increased to $500,000, that the Designated Developer will fully replenish the Imprest Account in the amount of $500,000 each time the balance of the Imprest Account is reduced to below $250,000.

E. MWBE and SDVOB Subcontractor Interest New York State certified Minority- and Women-Owned Businesses (“MWBE”) and Service-Disabled Veteran Owned Businesses (“SDVOB) may request that their firm’s contact information be included on a list of firms interested in serving as a subcontractor for this procurement. The listing will be publicly posted on ESD’s website for reference by the bidding community. A firm requesting inclusion on this list should send contact information and a copy of its NYS certification to: TaconicRFP2025@esd.ny.gov.

Nothing prohibits an MWBE Vendor from proposing as a prime contractor.

VI. REQUIRED PROPOSAL CONTENTS

The following must be submitted with all Proposals responding to the RFP. ESD reserves the right, in its sole discretion, to reject any Proposal that is deemed incomplete, inconsistent with stated requirements within this RFP, or nonresponsive to the RFP requirements. ESD also reserves the right, in its sole discretion, to reject any and all Proposals, and to proceed (or not proceed) with the development of the Site without completing this RFP process.

In evaluating the capabilities of the Respondents, ESD may utilize any and all information available, including information not provided by the Respondent. Proposals should clearly and concisely state the unique capabilities, experience, and advantages of the Respondent and demonstrate the Respondent’s mailto:TaconicRFP2025@esd.ny.gov

Page 18 | Taconic DC RFP capability to satisfy the requirements and objectives set forth in this RFP. ESD further reserves the right to ask additional written or oral clarifying questions to all Respondents or to a subset of Respondents.

In addition to the forms required as described later in Section XI: Procurement Forms and Requirements, each complete Proposal must contain the following elements (the “Technical Proposal”) outlined in this section.

A. Project Description The project description should include a detailed narrative describing all relevant aspects of the Project.

The description should address the following for the Plan and the Phase 1 Plan:

The Plan should describe how the Project will advance the Development Objectives set forth in the RFP and include, at a minimum:

• Proposed development program, including the estimated number of affordable and market rate units, rental and homeownership housing types and numbers, and square footages for each non-residential use;

• Type, height, bulk, and size (gross and net square footages) of the development; and

• A list of proposed partners or tenants and any letters of intent from potential tenants, including proposed strategic business development, community-serving retail, community and recreation uses, arts and cultural programming, and agricultural uses.

The Phase 1 Plan should provide a more detailed description of the Plan as it related to the Phase 1 area and include, at a minimum:

• Proposed development program, including estimated number of affordable and market rate units (up to 250 units), rental and homeownership housing types and numbers, and square footages for each non-residential use;

• Type, height, bulk, and size (gross and net square footages) of the development;

• A list of any specific zoning overrides that would be necessary to effectuate the proposed development, if applicable;

• A list of proposed partners or tenants and any letters of credit or intent from potential tenants, including proposed community facilities;

• Total development costs, including acquisition fees and costs associated with land acquisition.

• Data and market analysis or studies that support the demand for proposed retail and commercial uses;

• Estimated number of direct and indirect permanent and construction jobs estimated to be created by the Project; and

• A detailed plan on how the Respondent would meet Non-Discrimination and Contractor and

Supplier Diversity Requirements outlined in Section XI: Procurement Forms and Requirements.

B. Site Plan and Architectural Design Proposals must include the following per phase:

• A summary of the proposed building program for the Project with gross and net square footages for each use;

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• A set of concept sketches of the full proposed Project and a set of schematic renderings of the proposed Project showing the site plan, site circulation, principal elevations and massing, typical floor plans, streetscape, open space network and landscape plans, entry features and signage;

• A description of the proposed architectural character, exterior materials, and other relevant specifications;

• The Phase 1 Plan should provide a more detailed description of the building elevations, floor plans, necessary infrastructure included in the total development costs, and connectivity to the train; and

• A narrative and images supporting any preservation and adaptive reuse of the historic structures onsite.

Proposals should also address how the Plan will support the State’s agenda for environmentally sustainable, resilient, and energy efficient development and building design0F

1. Accordingly, Respondents must provide:

• A comprehensive table describing how the project responds directly to the targets stipulated in the Climate Act, including any net-zero design principles included in the Plan (e.g., clean energy generation); and

• A narrative describing the broader sustainability, energy, carbon neutrality, and resilience strategies for the Project construction and operation, including the proposed types and levels of certifications that best support that strategy (e.g., LEED Platinum)1F

2. Proposals that contemplate the highest certification levels will be considered by ESD to be more competitive than Proposals that contemplate other lower certification(s) or no certification

C. Community Engagement Plan Respondents must submit a community engagement plan that details how residents and local stakeholders will be informed of project plans throughout the design and construction process. The Designated Developer will be expected to present their plans at community and stakeholder meetings as needed. This includes, but is not limited to, meetings with adjacent property owners, local civic and chamber organizations, and local elected officials. At a minimum, the Respondent must be prepared to present to stakeholders: elevation and site plan renderings, an overview of key project facts (unit count, building height, amenities, community benefits, etc.), and the overall project timeline.

D. Local Hiring Plan Respondents should include a narrative as part of the Proposal describing their commitment to local hiring, including an explanation of how the Project will create jobs for local residents and a summary of which community organizations Respondents will partner with in order to maximize local hiring.

E. Financial Proposal Respondents must submit a financial proposal (the “Financial Proposal”) for the Phase 1 Plan including a narrative description of project financing and sufficient evidence that the proposed redevelopment and operation will be successfully accomplished by the Respondent and achieve the Development Objectives.

1 The Climate Leadership and Community Protection Act (https://climate.ny.gov/) 2 At a minimum, Proposals must comply with all applicable federal, state, or local environmental law requirements.

https://climate.ny.gov/

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The Financial Proposal should include purchase price, anticipated sources and uses of funds, and details of proposed financing, including equity and any development and/or financing fees. If the Financial Proposal includes payments to New York State, include the timing of when such payments will be made throughout the Project. Proposals should also include a market study including listings comparable to the Phase 1 Plan’s non-residential elements, comparable rental listings, and comparable multifamily unit sales. Each set of comparables should include at least three properties.

The Financial Proposal must contemplate the housing program for homeownership and rental housing units detailed in Section V(B): Development Program. Respondents interested in including adjacent or related properties as part of their Project should detail the impact of this additional property in the Financial Proposal. Development phases may be subject to a fair market value (“FMV”) acquisition price as determined at the time of each development phase disposition.

The Financial Proposal must detail sources and uses of funds for project development and cash flow for operation, presented in live-linked Excel format with supporting calculations (the “Pro-Forma”).

Respondents must provide two separate Pro-Forma Excel documents that include: (1) the Homeownership Program, the Mixed-Income Rental Program, and any contemplated non-residential uses; and (2) the Homeownership Program, the Affordable Rental Program, and any contemplated non-residential uses. Each requested Pro-Forma must include as a tab Appendix D: Financial Proposal Summary.

The live-linked Excel format with supporting calculations must include the following information:

• Total estimated development costs;

• Estimated costs of environmental review, remediation, construction/renovation, including any demolition costs, and a break-out of hard and soft cost fees; indicate escalation rates as appropriate;

• Projected operating revenues, operating and maintenance expenses, and net operating income (this data should extend out to at least thirty (30) years of operations and include all necessary capital investments over time, and reserves and debt services payments associated with financings;

• Estimates of local property tax payments and/or PILOTs to various public jurisdictions;

• Debt service payments on any short-term or long-term financing for improvements;

• Sources and amounts of financing and equity to be invested in the development and operation of the Site;

• Information regarding minimum financial returns sought and all necessary capital investments over time and reserves and debt service payments associated with all financings; and

• Evidence of financing consistent with sources and uses, including but not limited to expressions of interest from lenders, letters of credit, and performance bond capacity.

Respondents must submit a financing narrative that clearly explains the financing structure of the Phase 1 Plan. The Financial Proposal should detail the extent of increased affordability through cross subsidization from the Homeownership Program and the Mixed-Income Rental Program. The Financial Proposal should also include a description of the Mixed-Income Rental Program and Affordable Rental Program and how each achieves the Development Objectives.

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Respondent’s Financial Proposal for the Site should assume that the Site, including any and all improvements, infrastructure and equipment at the Site, will be conveyed “AS IS” and “WHERE IS” without any representation, warranty, or guaranty as to quantity, quality, title, character, condition, size, or kind, or that the same is in condition or fit to be used for the Designated Developer’s purpose.

F. Development Schedule Respondents must submit a development timeline for the Plan by development phase. The Phase 1 Plan should include a development schedule identifying the estimated length of time to reach key milestones, including commencement and completion of design, financing, commencement and completion of construction, and operational stabilization for the development program. Any contingencies that may affect this timeline should be identified.

G. Respondent Description and Qualifications Each Respondent must demonstrate sufficient financial resources and professional ability to develop the Site in a manner consistent with its Proposal. To be considered a “Qualifying Organization,” Respondent firms or joint ventures of firms (“Respondent Teams”) must demonstrate collectively significant experience, expertise, and capacity in:

• Developing and operating residential or mixed-use projects that incorporate affordable housing;

• Equity investments in substantial or ground-up real estate development projects;

• At least two (2) completed similar development projects in the last ten years; and

• At least two (2) projects in the last seven years for which Respondent acted as a developer and/or principal operator of buildings incorporating affordable housing and community space.

For this RFP, up to ten (10) points (see Section VII: Selection Criteria) will be awarded to Respondent Teams that include one or more New York State Certified Minority and/or Women-Owned Business Enterprise(s) (each an “MWBE Developer”) that will solely or collectively hold at least 10% of the managing ownership interest in the Residential Component of the Project and must receive a commensurate interest in the totality of the economic benefits of the Project, including, but not limited to, all available cash flows and sale/refinancing proceeds.

A fee-only arrangement for the minority and/or women owned business(es) will not satisfy this requirement (unless developer fee is the only cashflow available to the Respondent Team under any applicable term sheet(s) used).

Projects with lower MWBE ownership percentages will be awarded fewer points in the Quantitative Factors section of the Selection Criteria. ESD reserves the right to determine whether a Respondent satisfies these requirements based on the experience of the Respondent Team’s constituent members.

Entities that do not meet the above eligibility criteria (e.g., construction contractors, facility managers and operators, providers of design, engineering,…