_Water Works Bldg RFP (080825) (002).pdf

REQUEST FOR PROPOSAL

REDEVELOPMENT/REUSE FOR

540 WATER STREET

HOLLY WATER WORKS

BUILDING

TABLE OF CONTENTS

1.Redevelopment Opportunity 01

Site Overview

Community Profile

Nearby Amenities

Site Context

Zoning + Allowable Uses

Development Incentives

2. Proposal Criteria 02

3.Submission Form 03

Holly Water Works

540 WATER STREET

MANISTEE, MICHIGAN

The City of Manistee is searching for a creative partner for the redevelopment of 540 Water Street near downtown Manistee. The City is eager to work with a qualified developer to help activate this unique, historical space.

SITE OVERVIEW

The historic Manistee Holly Water Works building is located just west of

Downtown Manistee, with the shores of Lake Michigan half a mile to the east of the site. The existing structure contains 3,200 square feet of space, and the lot is 0.36 acres. This site is considered to be a redevelopment-ready priority site for the City of Manistee.

Parcel ID: 51-365-703-02

Address: 540 Water Street, Manistee MI 49660

Walk Score: 56

Ownership: City of Manistee

Zoning: C-2 (Neighborhood Commercial District)

Total Acreage: 0.36 acres

Building Size: 3,200 sq ft

Utilities: N/A

About

City of Manistee The City of Manistee, located on the western edge of Manistee County, is a dynamic community of 6,279 residents situated along the shores of Lake Michigan. As the county’s largest city and economic hub, Manistee offers a unique blend of historic charm, natural beauty, and modern development opportunities.

Manistee’s prime location provides unparalleled access to outdoor recreation. With Lake Michigan to the west and the Manistee National Forest to the east, the city is a gateway to some of Northern Michigan’s most sought-after natural assets. The Little and Big Manistee Rivers are renowned for their world-class fishing, drawing anglers year-round, while miles of scenic trails and waterways support a thriving outdoor recreation industry.

Tourism has grown by 148% since 2012, with downtown Manistee standing as the county’s number one visitor destination. The historic downtown district, featuring preserved 19th-century architecture, a vibrant mix of local businesses, and the picturesque Manistee Riverwalk, attracts both residents and visitors seeking a unique waterfront experience.

Beyond its tourism appeal, Manistee is a city with significant redevelopment potential.

Northern Michigan is increasingly recognized as a climate haven, offering a desirable quality of life with access to fresh water, a strong sense of community, and room for sustainable growth. With ongoing investment in infrastructure and economic development, Manistee is well-positioned for innovative projects that enhance its long-term vitality.

NEARBY AMENITIES

Holly Water Works Building

Armory Youth Project

Lighthouse Park

Hampton Inn & Suites

Manistee Waterfront

1st Street Beach

5th Avenue Beach

Manistee Public Boat Ramp

Manistee Municipal Mariana

Downtown Manistee

SITE CONTEXT

The City of Manistee entered into an agreement with the Manistee Water Company in May

1882 to develop and build a water supply system, which included a waterworks building and steam-powered pumphouse. After the acquisition, Holly Manufacturing Company of Lockport, New York, was announced to supply the equipment for the public works improvement, including their proprietary Holly Quadruplex Engine Pump.

Construction on the building began in August 1882, and the building bears the name of the

Holly company, as the technology was cutting edge at the time. The building and equipment were completed in June 1883. The building served as the community’s water supply until

1947, when an electric system replaced the Holly system.

The unique design of the building’s interior can best be described by thinking about the steam-powered equipment needed to pump water from the Manistee River via a tunnel to the pumphouse and then out to the growing community. The eastern half of the building has an open floor plan, all on the ground level. The western half of the building housed the pump equipment and provided access to the underground tunnel. Two sub-levels with stairs and walkways provide a fascinating look into industrial 1880s architecture. Part of the structure offers a view of the vault well where the large pump equipment would have been placed.

Since the 1960s, the building has served as the County Museum and Museum Annex. It was recently vacated and currently sits empty and available for its next phase of useful life.

The City recently replaced the roof, which will not be represented in the photographic materials. Museum collections are not included in the building.

ZONING + ALLOWABLE USES

The subject property is located within the Neighborhood Commercial District, which is intended to support a mix of commercial and residential uses that serve both the immediate neighborhood and the broader Manistee community. This district is designed to promote development that complements surrounding residential areas while managing key elements such as traffic, parking, loading/unloading zones, and overall site design.

Permitted Uses

A variety of commercial and mixed-use developments are allowed by right within this district, including but not limited to:

● Retail & Services: Retail businesses, personal service establishments, financial institutions, and professional offices

● Dining & Entertainment: Eating and drinking establishments, galleries, museums, and studios for performing and graphic arts

● Residential & Mixed-Use: Mixed-use developments, single-unit dwellings, duplexes, and multiple-unit dwellings

● Community-Oriented Uses: Parks, places of public assembly (small), day care (group), and medical or dental offices

● Accessory & Alternative Uses: Accessory buildings, community gardens, wind energy conversion systems (accessory), and home occupations (minor)

Special Uses

Certain uses may be allowed through a special use permit, subject to additional review and approval. These include:

● Hospitality & Residential: Bed & breakfasts, nursing homes, convalescent homes, and planned unit developments

● Automotive & Transportation: Automobile repair facilities, car washes, gasoline stations, and drive-thru establishments

● Commercial & Institutional Uses: Educational facilities, veterinary clinics, marinas, contractor facilities, and adaptive reuse projects

● Home-Based & Live-Work Opportunities: Home-based businesses and major home occupations

This zoning designation provides flexibility for a range of development possibilities while ensuring compatibility with the surrounding area. Proposals should align with the intent of the Neighborhood Commercial District and contribute to the vibrancy and economic growth of Manistee.

DEVELOPMENT INCENTIVES

Below are a number of incentives that have been used in the City of Manistee. Note that incentives application to a project is largely determined by the project type. Please contact

Andrew Stafford, Director of Economic Development at development@manisteechamber.com for more information.

Industry & Commercial Incentives

● Commercial Facilities Exemption (PA 255 of 1978): Tax exemption (1-12 years) for redevelopment in designated districts.

● Commercial Rehabilitation Act (PA 210 of 2005): Freezes taxable value for 1-10 years for commercial/multi-family properties in designated districts.

● Industrial Facilities Exemption (PA 198 of 1974): Tax incentives (1-12 years) for manufacturing and high-tech expansions.

● Obsolete Property Rehabilitation Act (PA 146 of 2000): Tax exemption for redeveloped commercial and housing properties.

Housing Incentives

● Payment in Lieu of Taxes (PILOT): Alternative tax agreements to support housing development.

● Residential Housing Facilities Act (PA 237 of 2022): Tax exemption (1-12 years) for renovation or new construction of rental housing (4+ units).

Historic Preservation Tax Credits

● Federal Tax Credit: 20% tax credit for rehabilitating historic commercial, industrial, agricultural, or rental properties.

● Michigan Historic Tax Credit: Up to 25% tax credit for certified historic commercial and residential properties.

Brownfield Tax Increment Financing (Act 381)

● Allows reimbursement of eligible costs for environmental remediation, demolition, and site preparation to support redevelopment.

mailto:development@manisteechamber.com

2) PROPOSAL CRITERIA

Deadline for Receipt of Proposals

The deadline for receipt is September 9, 2025, at 10:00 AM.

Submission and Receipt of Proposals

For a submission to receive consideration, it must be received prior to the deadline. No late submissions will be accepted. An authorized officer of the development group shall sign all proposal forms. Proposals must be clearly labeled “Manistee Holly Water Works Historic

Building.” A sealed envelope that includes a signed paper copy of the proposal along with a thumb drive containing the proposal and attachments in PDF format shall be mailed or delivered to the City of Manistee, Attn: Heather Pefley, City Clerk, 70 Maple Street, Manistee, MI 49660. Proposals are considered received when in the possession of the City Clerk’s office.

Timeline

The timeline for the City of Manistee RFP is as follows:

RFP/RFQ Issued August 8, 2025

Tour Date (Optional) August 19, 2025 (2:30 PM to 3:30 PM)

Questions Due August 26, 2025 COB

Addendum with Q and A’s September 3, 2025

Responses Due September 9, 2025 (10:00 AM)

Committee Reviews Responses September 10 - 19, 2025

Tentative Interview Dates September 24 - 26, 2025

City Council Considers Proposals October 7 or 21, 2025

Content of Proposals

Proposals are to be written using the following format and covering the specific areas in sufficient detail to enable evaluation of the proposal. Additional information can supplement the proposal that may best demonstrate the capacity of the developer to complete the project. Please keep responses to the following questions as well as complementary information to 20 pages or less (excluding financials and timeline charts). These responses will contain important factors and criteria that will be considered in evaluating proposals submitted by developers for this project:

1. Developer/Entity: Indicate the name, address, email address and phone number of the developer(s). If the proposal is being submitted by a development group or corporation, please indicate the primary contact and significant principals for this proposal.

2. Background and Previous Experience/Qualifications: Provide a resume or bio for each of the principals involved in the project, including examples of projects that have been completed that are similar to the project being proposed.

3. Overview of Proposal: Present a narrative statement, which explains in detail the proposal for reuse of the Manistee Holly Water Works Building.

Be specific as to the uses or business being proposed. If proposing a multi-use project, please list all proposed uses, the business names, and/ or types of potential tenants. Describe the project’s commitment to historic preservation. Please indicate whether the proposal will include purchase or lease of the site.

4. Financial Plan/Pro-Forma: Outline the proposed financial plan for the project, including how the project is to be financed and an estimated breakout of the anticipated project costs. Include any information that shows how financing will be secured and evidence of capacity to obtain financing for the project. Use of the MEDC proforma template is acceptable.

5. Anticipated Time Frame: Prepare a detailed timeline indicating proposed time frame for completing major areas of the project, along with the anticipated completion and occupancy of the building. A Gantt chart is acceptable, but not required.

6. Economic Impacts of Project and Community Benefits: Describe the anticipated economic impacts and other community benefits, including jobs to be created; property and sales tax expected to be generated; etc.

7. Planned Building Improvements/Exterior Uses: Provide a description of the improvements and any alterations/modifications that will be initiated to the interior and exterior of the building. Provide a draft rendering/floor plan of the proposed improvements. The City desires a project that will maintain the historic nature of the building and incorporate as many historic features into a new development as possible while also creating a long-term, sustainable, beneficial reuse for the developer. Please describe how you will address this within your project plans.

Evaluation of Proposals

A Development Review Committee will review the proposals received in response to this RFP. In addition to the RFP response package, presentations may be made by qualified developers before the Manistee City Council. Final recommendations for a direction will be presented to the City Council for consideration and selection of the proposal that best addresses the objectives as set forth and meets the needs of the community. One possible outcome might be to not move forward with a recommended proposal.

The following factors and criteria will be considered in evaluating proposals submitted by developers for this project:

1. Experience of the individuals/developers and capacity to carry forth the project to successful completion.

2. The overall scope of the project and full utilization of the building.

3. Project compatibility and consistency with the goals of the City and its commitment to historic preservation.

4. Economic development potential the project may have on the community, including job creation and overall investment.

5. Ability of the developer to complete the project in a timely manner. Evidence was provided regarding the resources of the developer to ensure feasibility of the project.

6. Financial plan of the project is sound and commensurate with the proposed improvements. Does the developer have adequate equity in the project as well as the ability to secure the necessary financing to complete the project?

Official Documents

The City of Manistee, Michigan, officially distributes proposal documents via its website.

Copies of all official documents will also be available at the City of Manistee City Hall, 70

Maple Street, Manistee, MI 49660, at the City Clerk’s office. The City of Manistee cannot guarantee the accuracy and is not responsible for any errors contained in any information received from alternate sources.

Interpretation of the Proposal and/or Contractual Documents

Any interpretation to a proposer regarding the RFP or any part thereof is valid only if given by the City Manager. Any information given by departmental contacts is unofficial. Interpretations may or may not be given orally and may be written depending on the nature of the inquiry. Interpretations that could affect other proposers will be in writing and issued by the City Manager. All inquiries shall be made within a reasonable time prior to the stated deadline in order that a written response in the form of an addendum, if required, can be processed before proposals are opened. Any inquiries related to the RFP should be sent by email to Executive Assistant

Kelly McColl at kmccoll@manisteemi.gov.

Changes and Addenda to Proposal Documents Each change or addendum issued in relation to this proposal will be posted on the City website and will also be on file in the City Clerk’s office. It shall be the proposer’s responsibility to make inquiries as to the changes or addenda issued. All such changes or addenda shall become part of the contract, and all proposers shall be bound by such changes or addenda.

Alternates

Proposers are cautioned that any alternate proposal, unless requested by the City, or any changes, insertions, or omissions to the terms and conditions, specifications, or any other requirements of this proposal, may be considered non-responsive, and at the opinion of the City, may result in rejection of the proposal.

Awards

Proposals will be reviewed by an internal committee where the proposals will be evaluated and ranked. Proposing firms may be asked to participate in an interview to further discuss qualifications and to answer questions from the committee. The contract will be awarded to the responsible, responsive firm whose proposal, conforming to this solicitation, will be most advantageous to the City, price and other factors considered. The City reserves the right to accept or reject any or all proposals, in part or whole and to waive informalities and minor irregularities in bids received.

Withdrawal

Proposals may only be withdrawn by written notice prior to the date and time set for the submission of proposals. No proposal may be withdrawn after the deadline for submission.

Default

No bid or proposal shall be accepted from any party (contractor) who is in default on the payment of taxes, licenses or other monies due the City.

Non-Collusion Clause

By signing and submitting this proposal, proposer states that his proposal is genuine and not collusive or sham; such proposer has not colluded, conspired, connived, or agreed, directly or indirectly, with any proposer or person, to put in a sham bid, or that such other person will refrain from proposing and has not in any manner, directly or indirectly, colluded, conspired, connived, or agreed, with any person, to fix the price of affiant or any other proposer, or to fix any overhead, profit or cost element of said proposal price.

Non-Discrimination Clause

By signing and submitting this proposal for consideration of an award by the City of

Manistee, the contractor and any subcontractor covenants not to discriminate against an employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment or a matter directly or indirectly related to employment, because of race, color, religion, national origin, age, sex, height, weight, marital status or a disability that is unrelated to the individual's ability to perform the duties of a particular job or position. Breach of this covenant may be regarded as a material breach of the contract.

3) SUBMISSION FORM

The required information for the submission is listed below. Respondents must include all the information requested when submitting their information.

Name of Business

Primary Contact

Address

Phone Number

Cell Phone Number

Email Address

Website Address

Authorized Agent Signature: Date:______________

By signing this form, you are certifying that you are authorized to submit this proposal on behalf of your organization.

References- List of three clients you have provided similar work for:

1) Name and title of client: ___________________________________ Services provided: ___________________________________ Contact name and title: ___________________________________ Phone number: ___________________________________

2) Name and title of client: ___________________________________ Services provided: ___________________________________ Contact name and title: ___________________________________ Phone number: ___________________________________

3) Name and title of client: ___________________________________ Services provided: ___________________________________ Contact name and title: ___________________________________ Phone number: ___________________________________

2.) QUESTIONNAIRE TO BE FURNISHED BY THE BIDDER

The signatory of this bid guarantees the truth and accuracy of all statements and of all answers to interrogatories hereinafter made. If more room is needed, attach separate sheets to the submittal as needed.

1) Provide a brief history of the firm, including organization type, age, size, number and location of offices, number of employees (full-time & part-time) and their level of experience, number of clients and any specialty areas:

2) How many years have you been in business under your present name?

3) List the key differentiators for your firm. What factors distinguish your firm from your competitors?

4) Describe your experience with historic building redevelopment or adaptive reuse projects.

Include the scope, scale, and outcomes of at least three projects completed in the last five years.

5) Outline your proposed vision and intended use for the historic building. How does your proposal align with the community’s character and economic development goals?

6) Provide an overview of your project financing strategy and timeline. Include sources of funding, anticipated phasing, and any contingencies that may affect project implementation.

NOTE: THE BIDDER SHALL BE PREPARED TO PROVIDE THE CITY WITH A

FINANCIAL STATEMENT IF THE CITY SO DESIRES.