RFP No. NC 19-8 Lease & Development of Vacant Land

Palm Beach County's Department of Airports issued Request for Proposals NC 19-8 on June 12, 2019, to solicit qualified proposers to lease and develop approximately 142.5 acres of vacant non-aeronautical land at the North Palm Beach County General Aviation Airport. The procurement seeks compatible commercial or industrial uses that will maximize property utilization, generate revenues for airport operations, ensure community compatibility, and encourage small, minority, and women-owned business enterprise participation. Deliverables include a proposed lease term not exceeding 50 years from the date of beneficial occupancy, with proposed uses limited to warehousing, distribution centers, office space, contractor storage yards, repair and maintenance facilities, recycling centers, manufacturing, vehicle sales and rental, and wholesale operations; residential uses are not permitted. Proposers must commit to a minimum capital investment, complete substantial construction within 24 months of the lease's effective date, provide minimum annual ground rental of no less than $16,000 per acre, lease a minimum of 20 acres and a maximum of 142.5 acres, and maintain a minimum 20-percent small business enterprise participation in design and construction activities. The proposal evaluation employs a 100-point scoring methodology allocating 40 points to the financial proposal (based on net rental amount after mitigation credits), 20 points to experience, qualifications, and financial information, and 40 points to the project approach (considering acreage leased, lease duration, proposed uses, capital investment, and alignment with county objectives). A mandatory pre-proposal conference was held on May 14, 2019, at 10:00 a.m. at the Department of Airports' Administrative Offices in West Palm Beach, with failure to attend resulting in automatic disqualification, and complete proposals consisting of one unbound original, five hard copies, and one electronic copy were due by June 13, 2019, at 3:30 p.m.

The RFP contains no specific set-aside designations restricting participation to particular business categories; however, the procurement emphasizes maximizing small, minority, and women-owned business enterprise participation and requires all design and construction contracts to include commercial non-discrimination clauses with a minimum 20-percent small business enterprise participation goal. Proposers may request a mitigation credit of up to 50 percent of the first lease year's initial annual rental for reasonable, actual, and necessary costs incurred in securing wetland mitigation; for example, a 75-acre lease at $16,000 per acre would yield a maximum mitigation credit of $600,000. The property is burdened with significant environmental constraints, including approximately 70.118 acres of jurisdictional wetlands and 5.423 acres of surface waters requiring permits from the U.S. Army Corps of Engineers and the South Florida Water Management District, with the county potentially serving as co-applicant. Existing infrastructure includes electric service available through Florida Power & Light with 23kV distribution lines along Beeline Highway and Aviation Road, and water and wastewater services provided by Seacoast Utility Authority. The selection process will utilize a Selection Committee to evaluate proposals, conduct oral presentations if necessary, and make recommendations to the Department for Board approval, with proposers required to submit a $5,000 proposal guarantee and maintain a security deposit equal to three months' rental plus comprehensive insurance coverage with minimum limits of one million dollars. Based on an independent appraisal valuation of $200,000 per acre for the property and estimated annual market rent of $16,000 per acre, the anticipated award value could range from $2.84 million to $28.5 million in total lease payments depending on the acreage leased and lease duration selected by the successful proposer.