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2017-06-26 e-packet@3:00
Monday, June 26, 2017 3:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall, City Manager's Conference Room 400 Grand Avenue, South San Francisco, CA Housing Standing Committee of the City Council and Planning Commission Special Meeting Agenda June 26, 2017Housing Standing Committee of the City Council and Planning Commission Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council and the Planning Commission Housing Standing Committee of the City of South San Francisco will hold a Special Meeting on Monday, June 26, 2017, at 3:00 p.m., at City Hall, City Manager's Conference Room, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: Call To Order. Roll Call. Public Comments. MATTERS FOR CONSIDERATION Report regarding the transfer of the property located at 339-341 Commercial Avenue to a nonprofit service agency. (Alex Greenwood, ECD Director) 1. Report regarding the hotel developer solicitation process for the proposed hotel project at Oyster Point (Ernesto Lucero, Economic Development Coordinator) 2. Adjournment. Page 2 City of South San Francisco Printed on 7/3/2017 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-604 Agenda Date:6/26/2017 Version:1 Item #:1. Report regarding the transfer of the property located at 339-341 Commercial Avenue to a nonprofit service agency.(Alex Greenwood, ECD Director) RECOMMENDATION It is recommended that the Housing Subcommittee consider the report regarding the transfer of the property located at 339-341 Commercial Avenue to a nonprofit agency, and provide direction to staff. BACKGROUND The City of South San Francisco,as the housing successor agency,presently owns the property located at 339- 341 Commercial Avenue (Property).This Property consists of four,two-bedroom units in two separate buildings,which the City purchased in 1999,using HOME and former Redevelopment Agency (RDA)funds in order to maintain it as affordable housing units.On October 8,2014,the City Council approved the Housing Investment Plan (“HIP”),see Attachment 1,which recommended the transfer of the property to a nonprofit service agency. DISCUSSION On May 1,2017,staff asked the Housing Subcommittee (Subcommittee)to reaffirm the City Council’s original direction in the HIP to transfer the property located at 339-341 Commercial Avenue to a nonprofit service agency.At the May 1st meeting,the Subcommittee had additional questions specifically pertaining to 1)total amount invested in the property,2)perceived high property management costs,3)any tenant relocation requirements, and 4) use of Section 8 vouchers. 1)Purchase and Investment In 1999,the City purchased the Property for $430,000,based on the appraised value of $450,000 minus $20,000 for dry rot repairs that needed to be undertaken.The acquisition involved $322,500 in HOME funds and $107,500 in former Redevelopment Agency (RDA)funds.Additionally,the Subcommittee inquired about the costs used for rehabilitation/improvements.In 2000,$360,000 of Community Development Block Grant (CDBG)funds were used to rehabilitate the property and $28,000 of RDA funds were used for lead and asbestos abatement, increasing the investment in the property to a total amount of $818,000. 2)Property Management Costs The Subcommittee requested further clarification of the property management costs and associated property upkeep.The Department of Housing and Urban Development (HUD)states that for the eligibility of households for HOME rental housing and rental assistance,at least 90 percent of benefiting families must have incomes that are no more than 60 percent of the HUD-adjusted median family income for the area.The Property is currently managed by SC Properties.The four tenants pay approximately $3,525 (monthly)gross in rent.The property management fee is $211.50,which is six percent of the monthly total.Roughly $1,300 is used for landscaping,water,garbage,recycling,and general maintenance,leaving the City monthly revenue of City of South San Francisco Printed on 6/22/2017Page 1 of 3 powered by Legistar™ File #:17-604 Agenda Date:6/26/2017 Version:1 Item #:1. about $1,900. 3)Notice to Vacate and Relocation Assistance If the City elected to sell the Property,the City could do so in a manner consistent with the HIP.The HIP discusses issuing a RFP for the disposition of this property and having the RFP stipulate the conditions upon which the City would transfer the property (HIP,p.21).Pending the City Council’s direction,Staff would include the following obligations in the RFP: ·The nonprofit selected through the RFP process would be required to accept the current tenants for a set period of time,maintain the units as affordable,and assume responsibility for any relocation benefits,if they were to apply. ·If the City chooses to sell the property,the new property owner will assume responsibility for any relocation assistance. However,the Subcommittee also inquired about the legal process for tenant relocation and notification.The Property is currently being rented out to four low income families.Of the four tenants,three have agreed (by acknowledgment in the lease documents)to ninety (90)days written “Notice to Vacate”,explicitly stating to waive all assistance and/or benefits including but not limited to,moving expenses,replacement housing costs, and/or advisory assistance.The remaining tenant has agreed to 30 days written “Notice to Vacate”with no provision for relocation assistance.If the City were to evict this tenant,the City would need to pay 90 days rent in a new location including actual and reasonable moving expenses. 4)Section 8 The Subcommittee questioned if the Property had any Section 8 tenants.The Housing Authority of San Mateo County administers Section 8 Housing Choice Vouchers.Currently,none of the tenants have Section 8 vouchers.Should a unit in the property become available,potential Section 8 applicants may apply for housing providing they meet the Section 8 eligibility requirements. RECOMMENDATION At this time,staff is preparing to implement the recommendations of the HIP by initiating a RFP process to identify a nonprofit.At the request of the Subcommittee,this matter is being brought back to the Subcommittee to assess whether Council’s original direction for the Property should be revisited.The Subcommittee has several options it could consider recommending to the City Council: If the Subcommittee agrees with the Council’s original direction (per the HIP),then no further action is required at this time,and staff would proceed with a RFP to identify a nonprofit.Under this option,the City would not be required to repay the initial HOME loan to the County of San Mateo. If the Subcommittee recommends that the Council reconsider its original direction for the Property,then the matter would be forwarded to the Council for the HIP to be amended.In this case,the Subcommittee could recommend the following options for the Property: 1.Continue to have the Property managed directly by the City,using the City’s property management consultant; or 2.List the property for sale.On a preliminary basis,the Property could potentially generate a sale price in City of South San Francisco Printed on 6/22/2017Page 2 of 3 powered by Legistar™ File #:17-604 Agenda Date:6/26/2017 Version:1 Item #:1. 2.List the property for sale.On a preliminary basis,the Property could potentially generate a sale price in the range of $1.3 million to $1.5 million (according to Zillow.com).With this scenario,two actions would ensue: a.According to the Cooperation Agreement between the County of San Mateo and the City of South San Francisco,the City would be required to repay $322,500 of the HOME loan to the County of San Mateo.Any additional funds generated from the sale would be classified as program income and would be returned to the County of San Mateo to be dedicated toward other HOME programs,per HUD guidelines.The profit from the sale would be divided between RDA and HOME funds as a percentage of the initial investments; and b.The RDA funds of $107,500 would likely be recaptured as a housing successor asset and would remain obligated to support affordable housing.The City is required to report the receipt of the recaptured RDA funds to the State Department of Finance.These funds would be subject to the affordable housing fund restrictions that housing successor agency funds are subject to. CONCLUSION Staff recommends the Housing Subcommittee reaffirm the Council’s original direction,per the 2014 Housing Investment Plan, to transfer the property located at 339-341 Commercial Avenue to a nonprofit service agency. Attachment: Housing Investment Plan City of South San Francisco Printed on 6/22/2017Page 3 of 3 powered by Legistar™ 0 City of South San Francisco October, 2014 Housing Investment Plan 1 Table of Contents I. Introduction .................................................................................................................................... 2 II. Assets ............................................................................................................................................. 3 Residential Property Assets ........................................................................................................... 3 Loan Portfolio Assets ................................................................................................................... 13 Cash Assets ................................................................................................................................... 14 Total Housing Assets ....................................................................................................................15 III. Current Situation ....................................................................................................................... 16 Property Management ................................................................................................................. 16 Tenant Issues ............................................................................................................................ 16 Maintenance .............................................................................................................................. 17 Current Revenues ...................................................................................................................... 17 IV. Land Utilization Strategies and Options ................................................................................... 18 V. Recommendations for Affordable Residential and Commercial Properties ............................. 19 A. 109 Longford ............................................................................................................................ 20 B. 380 Alta Vista .......................................................................................................................... 20 C. 714-718 Linden ......................................................................................................................... 21 D. 339-341 Commercial ............................................................................................................... 21 E. Miller Avenue ........................................................................................................................... 22 F. 418 Linden Avenue .................................................................................................................. 23 G. 201 Baden Avenue ................................................................................................................... 23 VI. Housing Investment .................................................................................................................. 24 VII. Conclusion ................................................................................................................................ 24 Appendix 1 ........................................................................................................................................ 25 2 I. Introduction The City of South San Francisco seeks to create a thriving city where its residents have the ability to live, work, and participate in the community. In order to create a thriving community, the City needs quality housing for residents of all income levels. Currently, the City has an array of housing and commercial land assets that are underutilized. This Housing Investment Plan (“Plan”) seeks to provide strategies to maximize the development of affordable and market-rate housing while aligning these efforts with the City Council’s goals of improving the Downtown. The recent dissolution of Redevelopment Agencies (“RDA”) by the California Legislature eliminated the City’s main tool for developing affordable housing. Without RDA funding the City must be creative, collaborative, and flexible in order to continue creating affordable housing. During the Redevelopment era the City had a robust and sustainable funding source, however the City now faces an era of limited resources and assets. The few resources the City does have must be strategically used to create quality affordable housing. The end of Redevelopment has also diminished the City’s ability to support the development of market-rate housing. The Successor Agency Oversight Board, however, has been amenable to allowing the City to pursue development opportunities on the properties owned by the former RDA. These properties are discussed in detail in the Successor Agency’s Long Range Property Management Plan (LRPMP) and are not discussed in this Plan. The City, however, does own the former Central Fire Station at 201 Baden Avenue which presents an opportunity to develop housing and is therefore included in this report. This Plan will 1) look at the City’s current housing assets and the 201 Baden Avenue land asseet; 2) describe the current situation and challenges the City faces regarding its affordable housing assets; 3) identify potential strategies for how the City can better utilize and manage its housing assets; 4) assess the possibility of increasing affordable housing for each strategy and; 5) provide recommendations for which strategy to implement on a per property basis. 3 II. Assets The City has limited assets in the form of real property, outstanding loans and cash. When the RDA was dissolved on January 31, 2011 the City opted to become the Housing Successor Agency. This allowed the City to retain the RDA’s housing loan portfolio and real property. However, the City was not able to retain RDA’s $20 million in affordable housing funds which were disbursed to the taxing agencies pursuant to the RDA dissolution statutes. In addition, the City also has cash assets collected from housing developers in the form of housing in-lieu fees. The City’s assets also include the former Central Fire Station. This section looks at each of these assets and their allowable uses. The total estimated value of the City’s affordable housing property assets is $7,262,266 and $1,089,000 for 201 Baden Avenue. Residential Property Assets The City currently owns and manages seven (7) scattered site residential properties ranging from single family homes to multi-unit properties. This section will provide an overview of the properties, their size, the purpose of acquisition, the purchase price and current estimated value1 and their current uses. With the exception of 109 Longford Avenue, these assets were transferred from the RDA to the City. A. 109 Longford – This single family home (3 bedrooms/1 bath) was purchased in 1998 for the purpose of removing a blighted unit. The City rehabilitated the property in 2009 using a wide array of green building techniques, such as solar panels, tank-less water heaters, and recyclable insulation. Since then it has been used as a model “green” home to educate contractors, students, and homeowners. While this home has served as an educational tool for the City, the home’s technology is no longer cutting edge and is quickly becoming obsolete as a model “green” home. 109 Longford Avenue 1 The estimated values of the properties were derived on September 30, 2014 from Zillow.com, an online home and real estate database. 4 Summary Profile: Property size: 4,500 sq. ft. Purchase Date: 1998 Purpose of Acquisition: Mitigate blighted property – previous owner believed home was unsafe, refused to occupy it and let it fall into disrepair. Age of Building: 61 years (1952) Building Sq. Ft.: 1,030 Purchase Price: $207,000 (funding source : General Fund) Current Estimated Value:$585,610 Current Use: Green building model home 5 B. 380 Alta Vista – A single family home (3 bedrooms/2 bathrooms) purchased in 2005. It was purchased by the City because the unit had become a nuisance and social problem for the neighborhood. In order to remove the blighting conditions and illegal bedrooms, the City expended $328,818 in addition to the $1,035,000 acquisition price. Due to the size of this home it could be modified again to accommodate several more bedrooms or subdivided into 2 separate units. 380 Alta Vista 6 Summary Profile Property Size: 9,100 sq. ft. Purchase Date: 2005 Purpose of Acquisition: Mitigate blighted property – previous owner had let house fall into disrepair and had overcrowding conditions with nuisance tenants. Age of Building: 68 years (1945) Building Sq. Ft.: 3,828 Purchase Price: $1,035,000 (funding source: RDA) Estimated Value: $1,507,798 Current Use: rented to city employee at below market rental rates 7 C. 714-718 Linden Avenue – This triplex of two bedroom units is located near the City’s Downtown core. It was purchased in 2005 for the purpose of preserving the affordability of the units. 714-718 Linden Avenue Summary Profile Property Size: 4,500 sq. ft. Purchase Date: 2005 Purpose of Acquisition: Preserve affordable housing – City helped owner rehabilitate property in return for charging affordable rents. At expiration of affordable restriction, owner intended to sell property. City acquired property to maintain affordability. Age of Building: 72 years (1941) Building Sq. Ft.: 2,856 Purchase Price: $862,000 (funding source: RDA) Estimated Value:$864,582 Current Use: Affordable housing 8 D. 339-341 Commercial Avenue – This property consists of four two-bedroom units in two buildings. The City purchased the property in 1999 for the purpose of preserving the affordability of the units. 339-341 Commercial Avenue Summary Profile Property Size: 3,500 sq. ft. Purchase Date: 1999 Purpose of Acquisition: Mitigate blighted property/create affordable housing units – property had fallen into disrepair and presented an opportunity to create affordable units. Age of Building: 118 years (1895) Building Sq. Ft.: 3,874 Purchase Price: $430,000 (funding source: $107,500 RDA, $322,500 HOME) Estimated Value: $1,142,298 Current Use: Affordable housing 9 E. 310 -314 Miller Avenue – The Miller Avenue properties consists of three adjacent properties: a triplex with three one- bedroom units (310 Miller), a fourplex with units ranging from one bedroom to three bedrooms (312 Miller), and a 3 bedroom single family home (314 Miller). The estimated value of the combined properties is $2,461,978. These properties were purchased between 2004 and 2008. The City purchased these units to preserve the affordability in the short-term and for the future development of the property. The City also owns a parking lot adjacent to 314 Miller making this site assemblage more attractive for a new development. 310-314 Miller Avenue Summary Profiles 310 Miller Property Size: 3,500 sq. ft. Purchase Date: 2005 Purpose of Acquisition: Preserve affordable housing – City financed rehabilitation in return for affordable rents. Owner intended to sell property putting affordability at risk. City acquired property to maintain affordability. Age of Building: 101 years (1912) Building Sq. Ft.: Not Available Purchase Price: $589,000 (funding source: RDA) Estimated Value: $800,000 Current Use: Affordable housing. Currently leased to the San Mateo County Emancipated Youth Program. 10 312 Miller Property Size: 6,000 sq. ft. Purchase Date: 2004 Purpose of Acquisition: Preserve affordable housing – City helped owner rehabilitate property in return for charging affordable rents. Owner intended to sell property putting affordability at risk. City acquired property to maintain affordability. Age of Building: 106 years (1907) Building Sq. Ft.: 3,650 Purchase Price: $715,000 (funding source: RDA) Estimated Value: $950,397 Current Use: Affordable housing. Currently leased to the San Mateo County Emancipated Youth Program. 314 Miller Ave Property Size: 3,500 sq. ft. Purchase Date: 2008 Purpose of Acquisition: Parcel assembly for future development. This property sits between City owned properties at 310-312 Miller Avenue and surface parking lot. Acquisition resulted in the assembly of a 0.56 acre site. Age of Building: 107 years (1906) Building Sq. Ft.: 1,456 Purchase Price: $679,950 (funding source: RDA) Estimated Value: $711,581 Current Use: Affordable housing. Currently leased to the San Mateo County Emancipated Youth Program. 11 F. 418 Linden Avenue – In 2008, the City Council amended the Affordable Housing Agreement (Amended AHA) with Myers Peninsula Venture (Myers) that required Myers to construct 32 affordable housing units as a condition of the Final Terrabay Specific Plan. In lieu of developing the 32 affordable housing units, the Amended AHA required Myers to convey to the City the property located at 418 Linden Avenue at no cost. The property was previously entitled to build a 25-unit market-rate development with 7,000 square feet of retail but the project became unviable after the demise of redevelopment. 418 Linden Avenue Property Size: 14,000 sq. ft. Acquisition Date: 2008 Purpose of Acquisition: Land bank for the future development of affordable housing in lieu of Myers developing 32 affordable efficiency units on the site. Age of Building: N/A Building Sq. Ft.: N/A Purchase Price: $0 (conveyed at no cost to the City) Estimated Value: $700,000 (based on $50 per square foot) Current Use: Surface parking lot 12 G. 201 Baden Avenue – This site (APN #012-335-100) is the old City Central Fire Station, located in the southeast part of the downtown area one block south of Grand Avenue near the corner of Baden Avenue and Cypress Avenue. The main building is one- story with a second story area over the apparatus bay and a three-story drill tower. It has three apparatus bays, offices, a kitchen, a recreation room, restrooms, a repair shop, a locker room with showers and a dormitory. It was purchased/built in 1949 for $85,899 for the purpose of housing a fire station. Currently the building is vacant, the bays however are rented to Giorgi Brothers for furniture storage on a month-to-month basis. The building is largely obsolete. Potential options for this property include: (1) Sell property to an interested buyer for the purpose of redevelopment into market-rate housing; (2) Hold as City-owned property for the purpose of redevelopment into affordable housing units. 201 Baden Avenue Summary Profile Property Size: Approximately 21,780 sq. ft. Purchase Date/Year Built: 1949 Purpose of Acquisition: Housing a Fire Station Age of Building: 65 years old Building Sq. Ft.: 11,690 sq. ft. Purchase Price: $85,899 Estimated Value: $1,089,000 (based on $50 per square foot) Current Use: Vacant 13 Loan Portfolio Assets The City has two types of housing loans in its portfolio: 1) amortized first time homebuyer loans, and 2) deferred loans to nonprofit housing developers. Amortized First Time Homebuyer Loans The City of South San Francisco has a first time homebuyer loan program that is open to individuals and households who live or work in the City of South San Francisco. In the past, the program provide qualified buyers low-interest loans of up to $100,000 to purchase a Below Market Rate (BMR) homes or a homes on the open market. At the start of the housing crisis in 2008, the City suspended making loans on homes in the open market and only made loans on BMR units. Since the dissolution of redevelopment, the City program has been limited to rolling existing loans from sellers to new homebuyers at existing BMR units. The City is currently not initiating loans that require new funds going into the program. Excluding loan pay offs, the program currently generates approximately $4,000 per month in payments. As a result of past lending activity, the City currently has 22 outstanding first time homebuyer loans. As of September 30, 2015, the value of this portfolio is valued at $1,401,899. This amount is composed from the following fund sources: o $933,507 is from former RDA funds (now the City’s Housing Fund 241) o $445,856 is from federal Community Development Block Grant funds (CDBG), and o $22,536 is from developer in-lieu fees. Monthly payments received and loan payoffs are deposited into their respective funding sources. Because the monthly cash flows from repayments are limited and loan payoffs are sporadic, the outstanding loan fund balances are not included in the available cash asset discussion below. Deferred Loans to Nonprofit Developers These loans were made to nonprofit developers to build the City’s main affordable housing stock including 636 El Camino, Grand Oak Apartments, Greenridge, Chestnut Creek Senior housing and others. This loan portfolio is estimated at about $24,760,669. The loans were made by the RDA and are now a City asset per the Redevelopment Dissolution Statutes. Unfortunately, the City cannot count on using these funds. First, nonprofit developers only make annual payments on the loans if they have excess cash proceeds after paying for all operating and reserve expenses. Generally the City received total repayments of $0 to $2,000 per year from this source. Second, the loans are not due for 25+ years. In all likelihood when these loans come due they will have to be renewed into new 50 year terms in order to continue the affordability, replacement and maintenance of the 14 properties. The one exception to this that City recently received a repayment of $1,115,839 from Mid-Peninsula Housing due to construction cost savings at 636 El Camino Real (this was negotiated into the funding contract approved by both parties). These funds were deposited into Housing Fund 241 and are available for uses as described below. Cash Assets In addition to the City’s residential properties, the City has cash assets that are available for creating and/or preserving affordable housing. Although the City has these cash assets, the dissolution of the RDA has left the City with no mechanism for generating new funds. The City must consider whether it wants to utilize these funds the traditional way through a single use scenario by working with a nonprofit housing developer, or utilize them in a way that will recycle the funds over the years for continuous use. Currently, the total cash available for affordable housing is $4,535,233. Below is a description of the City’s cash assets and how they can be expended. Affordable Housing Trust Fund (Fund 205) The City’s Affordable Housing Trust Fund was created as a result of developer agreements and the City’s Inclusionary Housing Ordinance. If developers were unable to incorporate affordable units into their housing or commercial developments, the City in limited cases accepted in-lieu fees (e.g. Terrabay). In other cases, the City required a housing fee in addition to the affordable units (e.g. Oak Farms). These funds can only be used for the development of new affordable housing. These funds can be used to help residents at any affordable income level – 0% to 120% of area median income (AMI). Funds Available: $1,045,0002 Housing Fund (Fund 241) Upon becoming the Successor Agency for the RDA’s housing assets on February 1, 2011, the City established the Housing Fund. Revenues from housing rental properties, RDA- funded loan repayments, and interest are deposited into this fund. The fund can be used to develop housing or for any other purposes that advances the creation or preservation of affordable units, including staffing. The funds can be used for any housing related expenses, including new construction, first time homebuyer loans, rehabilitation and staff expenses as long as they are consistent with past RDA law. Currently, these funds are being used for housing related expenses including staff, maintenance and other incidental expenses. Funds can be used to help residents at any affordable income level (0% to 120% AMI). Funds Available: $1,079,444 3 2 Fund balance as of September 30, 2014 15 Bonds On February 1, 1999, the City’s RDA issued bonds for the purpose of creating affordable housing. Pursuant to HSC Section 34176(g)(2) dissolving redevelopment agencies, the housing successor agency (i.e. the City as successor agency) has the right to retain and expend bond proceeds at its discretion so long as it is in a manner that is consistent with the bond covenants. The bond funds are made available to the City upon 1) the Successor Agency receiving its Finding of Completion, 2) the City committing the bond funds to a project, and 3) the Successor Agency including the obligation in an approved Recognized Obligation Payment Schedule (ROPS). The Successor Agency received its Finding of Completion on May 24, 2013. Staff included the bond fund request in ROPS 13-14B (January 1 through June 30, 2014) and the California Department of Finance (DOF) authorized the City to draw these funds down. However, the funds are not committed to a project therefore the City cannot draw the funds until it does so. These funds can only be used for the development of new affordable housing. The use of these funds must also be consistent with past RDA law and can be used to help residents at any affordable income level (0% to 120% AMI). Funds Available: $2,410,789 4 Total Housing Assets The total value of the City’s housing assets is approximately $37,960,067. However, as described above, the liquidity of these funds and the City’s ability to utilize them varies by type. As listed in Table 1 below, the City has approximately $4,535,233 in cash and cash equivalents that the City can immediately utilize for affordable housing purposes. The City also has $7,262,266 in land assets that the City can convert into cash by selling the properties, or in the case of the Miller Avenue properties and 418 Linden Avenue, have the value contributed towards the development of affordable housing. The remaining $26,162,568 is composed of amortized and deferred loans that are not readily available for use, or may not be available at all. Table 1 Asset Type Liquid Assets Illiquid Assets Total Cash Land Sales Not Liquid Cash and Cash Equivalents $4,535,233 $4,535,233 Land $7,262,266 $7,262,266 Loans $26,162,568 $26,162,568 Total $4,535,233 $7,262,266 $26,162,568 $37,960,067 3 Fund balance as of September 30, 2014, net of recent encumbrances 4 Fund balance as of September 30, 2014 16 Given the City’s current cash and land assets, the City has the potential to utilize these assets to increase the City’s supply of affordable housing. Options for utilizing these funds and/or developing affordable housing are discussed in Sections V and VI below. III. Current Situation With the end of redevelopment, the City is faced with the need to reassess and develop new strategies for managing its housing assets. Some of the main issues affecting the City are an increasing property management burden, limited resources, and the desire to stimulate development in the Downtown. Property Management As mentioned earlier, the City owns and manages all of its residential properties. Given the City Council’s new priorities and the need to sell the former RDA’s non-housing land assets, the management of the residential properties has become an increased burden on staff and resources. Property management requires staff to collect rent, market and lease vacant units, issue late payment and eviction notices and address various maintenance issues ranging from large scale repairs such as broken sewer lines to minor repairs such as a clogged sink. Due to the demanding nature of property management, i.e. tenant requests/issues and the timing of when these issues occur, staff is frequently on call. As a result, staff at all levels has to be involved in managing the properties. For example, lower level staff typically deals with collecting rents however higher level staff has to approve repairs and issue late payment or eviction notices. This has created a highly ineffective and costly way of managing the properties. It also takes staff away from fulfilling other responsibilities. Finally, the City is faced with difficult tenants and continuous maintenance issues while receiving minimal rent revenues due to the affordable rents being charged. Tenant Issues The City has difficult tenants who routinely pay rent late, which has required staff to spend an exorbitant amount of time addressing the issue. City inherited these tenants when it acquired the buildings or from North Peninsula Neighborhood Services which briefly managed the properties in the past. Since 2011, staff has had to issue nine (9) Three-Day Notices to Pay or Quit. A Notice to Pay or Quit is a notice whereby if the tenant does not pay within three days the City will proceed with the eviction process. The City has also received twenty-four (24) late payments and evicted one tenant in the last two years. The eviction process is very lengthy and can last up to six months which consumes a significant amount of staff and City Attorney time. In FY 12-13, the Housing and Community Development Division (HCD) staff spent a combined 1,349 hours managing the various properties. Recently, the City leased several of the Miller Avenue properties to the County for its emancipated youth program with the expectation that this would relieve some property management issues as well as provide housing for youth. Unfortunately, the youth have required the same level of City staff resources as past tenants and the County has added an extra level of administrative coordination resulting in a total increase in staff resource utilization. 17 Maintenance The City is also faced with ongoing and deferred maintenance issues due to the age of its residential properties. For example, all of the City’s residential properties are over 50 years old and four of them are over 100 years old. Most of the properties have some deferred maintenance that needs to be addressed, as described in Appendix 1. Additionally, the City has experienced unforeseen and/or emergency maintenance issues due to the age of the buildings. Most recently the City had to spend approximately $180,000 5 to make emergency repairs to the gas and sewer lines at the 310 and 312 Miller Avenue properties. These repairs had to be made immediately to avoid a potentially catastrophic gas explosion. Current Revenues The City’s residential properties are not generating enough revenue to keep up with staff costs to manage the properties and address the increasing maintenance needs. In FY 12-13 the City had $60,575 6 in staff and maintenance expenses while receiving $121,170 in rent revenues. While the City is not operating on a deficit it is only netting approximately 50% of its rent revenues. As shown in Table 2 below the properties also offer the City a low annual return on investment (ROI). Since the properties are intended to be affordable units and are rented at below market rates, there are few options for increasing revenue therefore the City must find a solution to reduce its operating expenses. Table 2 Net Revenue (Rev)-(Exp) 0.03870-387207,000-0.2% 24.51,12716,80015,6731,035,0001.5% 298.613,84828,95015,102430,0003.5% 205.410,23525,16014,925700,0002.1% 310 Miller Ave 338.514,4729,000-5,472589,000-0.9% 312 Miller Ave 398.016,31419,6603,347715,0000.5% 314 Miller Ave 84.94,19221,60017,408679,9502.6% 821.334,97750,26015,2831,983,9502.1% All Properties1,350 60,575121,17060,5954,355,9501.4% Miller Ave* Miller Ave Total 109 Longford Property 380 Alta Vista Commercial Ave Linden Ave ExpensesRevenues HCD Staff Hours City InvestmentROI * This does not include the approximate $180,000 used to make emergency repairs at 310-312 Miller or $328,818 in rehabilitation costs at 380 Alta Vista. 5 This amount is not included in the expenses provided in the section below 6 This does not include the approximate $180,000 used to make emergency repairs at 310-312 Miller 18 IV. Land Utilization Strategies and Options As discussed above, the City’s current property management system is inefficient and needs to change in order to reduce resource utilization. Taking into consideration these issues, this section describes potential strategies to overcome these issues while maintaining or increasing the City’s affordable housing stock. City staff has identified four strategies for managing the City’s housing land assets: 1) divest, 2) transfer to a non-profit, 3) hold, or 4) redevelop (note: the redevelopment option only applies to the Miller Avenue properties). This section will define each strategy and analyze the positive and negative implications of each strategy. The next section will identify which strategy can provide the most benefit on a property by property basis. 1. Divest: The City would sell its housing land asset(s) at market rate. This option would eliminate the staffing and financial issues the City faces regarding property management and would increase the City’s housing cash assets. However the implications of this would be that the City would need to replace the affordable units elsewhere along with providing relocation payments to a few of the current tenants that are eligible for relocation. If the City divests itself of the Miller Avenue properties it will also lose the opportunity to develop new housing on that site. 2. Transfer Management to a Non-profit: The City would transfer management of its housing land assets to a non-profit organization and impose affordability restrictions on the properties. This would allow the City to preserve the affordability of the units and relieve the City of its property management burdens. However, this strategy would not relieve the City of on-going repair liabilities 3. Hold Assets: The City would keep its current housing assets however it would need to make operational changes. For example, the City would need to contract with a third party property management company to oversee the lease up process, rent collection, maintenance, and tenant eligibility screening. This strategy would relieve City staff of its property management burdens and potentially increase the City’s net rent revenue by allowing the property manager to increase the affordability income levels of the tenants. Currently the City is only netting 50% of its rent revenues, however, if the City uses a property management company, the City could allow the company to increase the income affordability to 80% AMI, thus offsetting the property management cost and potentially increasing the City’s net revenue. Holding the City’s housing land assets, however, does not increase the City’s affordable housing stock, generate significant new cash flows, and still leaves the City facing the deferred maintenance and rehabilitation needs of the properties. 4. Redevelopment: Staff has been studying the development potential of City-owned and Successor Agency-owned downtown properties. The City Council has expressed the goal of revitalizing the Downtown through the development of market-rate and mixed- income housing. Staff has determined that the best way to accomplish this on the smaller 19 sites is by collaborating with a private developer to build mixed-income projects or an affordable housing project. Under this strategy the City would contribute the land and potentially make a financial contribution to the project in return for the developer providing a specified number of affordable units within a market-rate housing development. This strategy would relieve the City of the burden of managing scattered affordable housing sites with myriad problems and create revenues for additional future affordable housing development. V. Recommendations for Affordable Residential and Commercial Properties This section recommends an optimal strategy for each of the City’s properties. Each property is discussed in detail below and the information is summarized in Table 3 below. The recommendations are based on the issues the City is currently facing and an analysis of the potential strategies described above. Table 3 Property Divest Transfer to NPO* Hold Assets Redevelopment A. 109 Longford B. 380 Alta Vista C. 714-718 Linden D. 339-341 Commercial E. 310-314 Miller Avenue Properties F. 418 Linden Avenue G. 201 Baden Avenue *Non-profit Organization 20 A. 109 Longford Recommendation: Divest It is recommended the City sell this property on the open market. Its value is approximately $585,610. As mentioned previously in this report, the home is quickly becoming unusable as a model “green” home due to outdated technology. It is also operating on a deficit due to no rental revenue. The property would be able to generate a high sale price due to its fairly recent remodel and green technology upgrades. Additionally the City wouldn’t need to pay any relocation costs or replace this unit elsewhere as the property was never operated as an affordable rental unit. The City would contract with a real estate company to market, show, and sell the property. Due to the limited supply of housing on the market and an increasing demand, the City anticipates that this property would sell quickly. Since the property was purchased with general funds, part of the proceeds could be deposited into the general fund and part should be deposited into the housing fund since the housing fund paid for the extensive rehabilitation of the property. Alternatives: No other alternative recommended. This property is not suitable for redevelopment and continuous ownership by the City is not financially sound. The property may be transferred to a nonprofit housing agency and maintained as affordable housing. However, when leased to Shelter Network in the past, the house frequently remained vacant for long stretches of time due to the City’s requirement that only South San Francisco victims of domestic violence be housed there. B. 380 Alta Vista Recommendation: Divest It is recommended the City sell this property on the open market. Its value is approximately $1,507,798. The home is very large and underutilized in its current single-family configuration. It is also rented as a low-income unit and generates very little rental revenue. Having been recently remodeled and in a fairly desirable area, the property should sell quickly. There are no relocation issues but the current tenant (a City employee) must be given a 90-day notice to vacate. The affordable unit has to be replaced but it can easily be accommodated in an affordable or mixed-income project elsewhere. The replacement unit cost will be offset by the estimated sale price of approximately $1,000,000. The City may consider remodeling the unused lower portion of the building to create a legal second unit if it results in a net financial gain to the City. Alternatives: No other alternative recommended. This property is not suitable for redevelopment and continuous ownership by the City is not financially sound. The property may be transferred to a nonprofit housing agency and maintained as affordable housing. However, its distance from public transit could be a burden to low-income tenants that would likely rely on public transit. 21 C. 714-718 Linden Recommendation: Divest It is recommended the City sell this property on the open market. The property’s resale value is approximately $864,582. Selling the property relieves the City of the property management burden and generates revenue for use in a new affordable or mixed-income housing development. As indicated earlier in this report, the revenue generated from this property is insufficient to fund operating expenses, maintenance and a replacement reserve. However, if the City sells the property it will have to replace three affordable units. The City will also have to relocate two families currently residing there that are eligible for relocation assistance. The City will have to relocate the families at a cost of $15,000 to $20,000 each. The funds generated by the sale will be sufficient to replace the units in another development and to reimburse the housing fund for relocation costs. Alternative: Transfer to a Nonprofit The City Council also considered transferring the property to a nonprofit agency but opted to go with recommendation to sell the property. D. 339-341 Commercial Recommendation: Transfer to NPO It is recommended the City transfer this property to a nonprofit service agency through an RFP process that gives priority to agencies serving clients in priority areas identified by the City Council. This property was largely purchased with Federal HOME funds. Because it was predominantly purchased with HOME funds there is little financial advantage for the City to divest of the property as it would have to repay the HOME program. Additionally, it is not clear whether City (or a subsequent owner) could terminate the affordability restrictions due to the HOME funds. Therefore, the best option for the City is to reduce its management burden by transferring the property to a nonprofit agency that would continue to operate it as affordable housing serving a special needs group. Under this scenario, the City can issue an RFP to nonprofit agencies offering them the opportunity to take ownership of the property and utilize it to serve their clients. The nonprofit agency would assume the HOME loan and either repay the City its limited investment or take a second loan against the City’s funds. In the RFP the City can stipulate its conditions for transferring the property as well as giving the nonprofit agencies the opportunity to indicate whether they would be able to repay the City its funds and/or establish a repayment schedule (if any). 22 Alternative: Hold Based on the use of restrictive HOME funds to purchase this property and the City’s limited financial interest, the second best alternative is to hold this property under its current status. However, if the City Council elects to hold this property, staff recommends that City contract with a commercial property manager to manage the property. Doing so would increase the operating costs of owning property but will substantially reduce the utilization of City Resources. The City would still have a net positive cash flow from the property which it would need to set aside in a capital replacement reserve. E. Miller Avenue Recommendation: Redevelopment It is recommended these properties be redeveloped. The City currently owns three affordable residential properties and a parking lot on the 300 block of Miller Avenue. The 0.56 acre site is suitable for a housing development of 50 or more residential units that would make better use of the land. A market-rate project can potentially be built on the site but the City will face challenges finding a developer willing to build the project due to the smaller lot size. The site may also be suitable for a mixed-income project or an affordable project as described below. A 100% affordable project could be built on the site. Nonprofit housing developers have expressed an interest in building in the City. However, a 100% affordable project may require financial assistance from the City including the contribution of land. If a nonprofit housing developer is not able to raise sufficient private capital, the City would likely have to contribute the land. A mixed-income project on the site would have to include a minimum of seven affordable units to replace the units currently existing on the site. Given the site’s development challenges, it is likely the City would need to collaborate with a developer in some capacity to develop the site. The City’s participation would make the project feasible by reducing the developer’s entitlement and financial risk. By helping to reduce these risks, a developer will be more likely to develop a smaller project (<100 units) and invest in an unproven housing market. To participate in such a project, the City would contribute the land to the project in return for the required affordable units. The new units would benefit the City and residents by replacing the older, run down units with modern units. Alternative: No other alternative recommended. Continuous ownership by the City is not a financially sound option. The property may be transferred to a nonprofit housing agency and maintained as affordable housing. However, even a nonprofit agency taking ownership of these homes would likely look at the land as a future higher-density development site. If not developed, the parking lot next to the units would also go underutilized. 23 F. 418 Linden Avenue Recommendation: Redevelopment It is recommended this property be redeveloped. The City currently uses the property as a surface parking lot. The 14,000 square foot site is suitable for a housing development of 25-30 residential units. A market-rate project can potentially be built on the site but the City will face challenges finding a developer willing to build the project due to the smaller lot size. Therefore, the site is more suitable for a mixed-income project. Given the site’s development challenges, the City Council has determined that the City would collaborate with a developer on the site. The City’s participation will consist of grant and loan financing in return for the production of affordable units in the project. Alternative: No other alternative recommended. G. 201 Baden Avenue Recommendation: Redevelopment It is recommended this property be redeveloped. The property is currently vacant with the exception of a month-to-month lease with Giorgi Brothers who uses the bays for storage. The 0.5 acre site is suitable for a housing development of 50-60 residential units that would make better use of the land. A market-rate project can potentially be built on the site. Given the site’s smaller size, the City may need to provide developer incentives to have this site developed. Alternative: No other alternative recommended. The site is underutilized and the building may exterior may become blighted soon and require upkeep if an alternate use is not found. 24 VI. Housing Investment The City has a total of approximately $11,797,499 available to invest on affordable housing. The funds must be used for the production or rehabilitation of affordable housing. Funds can be used for 100% affordable projects (newly constructed or rehabilitated) or to subsidize units in market-rate projects so that a portion of them are affordable (i.e. mixed-income projects). Currently the City Council is considering the current projects: $2,461,978 Rotary, approximately 69-94 senior units on Miller Avenue properties $3,105,000 Brookwood, approximately 12 affordable in 60 unit development (48 market- rate) at Grand-Cypress $1,615,000 Brookwood, approximately 6 affordable in 30 unit development (24 market- rate) at 418 Linden Avenue $2,500,0007 Acquire and rehabilitate an existing 25-unit apartment building $2,115,521 Future projects $11,797,499 Total Available Strategic Economics estimated the subsidy needed to produce a two-bedroom affordable rental unit in San Mateo County for a family at 90% of median income as $200,083. Using this metric, the City would be able to produce and additional 11 affordable units with the $2,115,521 remaining for future projects. If the City Council elected to use these funds to encourage the development of mixed-income projects with 20% of the units affordable, this would yield a 55 unit development with 11 affordable units and 44 market rate units. VII. Conclusion The Housing Asset Management Plan is recommending that the City end the practice of owning hard-to-manage, scattered affordable housing sites and instead recapture financial resources by selling various sites and using the Miller Avenue properties to advance the development of higher density housing in the downtown. Combined with cash assets, the sale properties and/or the contribution of land into projects gives the City over $11 million with which to advance its affordable housing mission and to potentially facilitate market-rate housing in the downtown through mixed-income projects. Finally, the City should attempt to utilize strategies that would leverage the limited supply of affordable housing funds and ensure that these funds are recycled so they can be reutilized again in the future. Enacting the recommendations in this plan will allow the City to achieve various goals including, initiating development of market-rate housing in the downtown, eliminating the City’s cost and burden of managing affordable housing, replacing old affordable housing units with new units and potentially recycling affordable housing funds for future developments. If the City Council supports the strategies outlined in this Plan, staff will initiate steps to carry out the strategies contained herein including steps to sell the scattered affordable housing sites and preparing agreements for the development of 418 Linden Avenue and the Miller Avenue properties. 7 This amount is an estimate based on contributing both acquisition and rehabilitation matching funds to a nonprofit entity that would pursue tax credits or other funding sources to complete a project. 25 Appendix 1 Property Repairs Needed 109 Longford No repairs needed 380 Alta Vista New window screens and paint for one exterior wall Fill holes in yard Repair broken fence 339 A Commercial New door bell, window screens, stove fan, and closet door Replace missing kitchen cabinet door 339 B Commercial Not recently inspected 341 A Commercial New screen door and interior painting 341 B Commercial New window screens, interior paint, kitchen fan, and bedroom light fixture Replace missing kitchen cabinet door Remediate mold on bathroom ceiling Repair heater 714 Linden Repair cracked ceiling and damaged wall New interior paint and light covers Remove graffiti from garage door 716 Linden New blinds, refrigerator, door, window screen, and light covers 718 Linden No repairs needed 310 Miller New window screen and refrigerator Fix hard to open windows and damaged ceiling Clean the flooring 310 A Miller Remediate mold in bedroom Fix hard to open windows and repair broken window New stove, porch light, and door bell Entire unit needs to be cleaned 311 Tamarack New stove 312 Miller New interior paint, carpet, and light fixtures Repair damaged wall 312 A Miller New interior paint and carpet 313 A Tamarack No repairs needed 313 B Tamarack Repair leaking toilet New kitchen fan and linoleum 314 Miller Repair broken steps/landing New carpet City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-631 Agenda Date:6/26/2017 Version:1 Item #:2. Report regarding the hotel developer solicitation process for the proposed hotel project at Oyster Point (Ernesto Lucero, Economic Development Coordinator) It is recommended that the Housing Subcommittee review the developer short list and give direction to staff regarding issuance of the Request for Proposals (RFP) to the developer short list. BACKGROUND/DISCUSSION Oyster Point includes a City-owned 4.7 acre site that is identified for a future hotel,which is entitled for up to 350 rooms.On February 24,2017,staff issued a Request for Qualifications (RFQ)to solicit interest from experienced hotel developers (see Attachment 1).Submittals were due by March 31,2017,and the Economic and Community Development Department (ECD) received eight submittals from the following teams: ·AJ Capital Partners (Attachment 2) ·OTO Development (Attachment 3) ·M-Rad Architecture & Oliver Companies (Attachment 4) ·Shashi Group, LLC (Attachment 5) ·Glacier House Hotels, LLC (Attachment 6) ·Ensemble Real Estate Investments & AECOM Capital (Attachment 7) ·Bayview Development Group (Attachment 8) ·JMA Ventures (Attachment 9) A Review Panel was convened on May 1,2017,to review and score paper submittal qualifications and recommended a list of developers to be invited to an in-person interview.The Review Panel included representatives from:Genentech,City -ECD,City -Planning,City -Public Works,and the California Life Sciences Association. The evaluation criteria included qualifications,such as relevant experience in hotel development,project team experience,references of similar projects,and a preliminary concept of the hotel programming.After discussion and evaluation of the submittals based on the criteria (score sheet-Attachment 15),the review panel recommended six developer teams to be invited to interviews.Prior to the interviews,AJ Capital Partners and Bayview Development Group declined to continue in the process because they did not feel their proposed concept would be feasible.The four remaining developers interviewed were JMA Ventures,Ensemble,Shashi Group, and OTO Development. Interviews took place on May 22-23,2017.Qualifications,conceptual programming of the hotel and meeting spaces,and the overall presentation were scored.After careful review of the four teams,the selection panel recommended establishing a short list that includes all four of the remaining developers (score sheet- City of South San Francisco Printed on 6/22/2017Page 1 of 3 powered by Legistar™ File #:17-631 Agenda Date:6/26/2017 Version:1 Item #:2. recommended establishing a short list that includes all four of the remaining developers (score sheet- Attachment 15): 1.Ensemble Real Estate Investments &AECOM Capital:Preliminary concept included an upper scale brand with 200-250 rooms,meeting space of 10,000-20,000 square feet,food and beverage amenities, and outdoor communal space (Interview PowerPoint - Attachment 10) 2.JMA Ventures:Preliminary concept included two hotel towers with 350 rooms total,to include a full service brand and an extended stay brand,18,000 square feet of meeting space,and four food and beverage amenities (Interview PowerPoint - Attachment 11) 3.OTO Development:Preliminary concept included a dual-branded hotel and conference center with 300-340 rooms:Hyatt Place (upper tier of travelers in town for shorter stays)and Hyatt House (serving extended stay guests),5,000 square feet of meeting space,and food &beverage amenities (Interview PowerPoint - Attachment 12) 4.Shashi Group:Preliminary concept included two hotels with 250 rooms.One would be an upper upscale full service and an upscale extended stay,shared with a common area,and meeting space between 5,000-15,000 square feet (Interview PowerPoint - Attachment 13) The selection panel recommends that all four of these developers be invited to continue to the next phase of the selection process,which will be a Request for Proposals (Attachment 14).Unlike the RFQ -which focuses on the qualifications of the developer,the RFP will ask the developers to provide greater detail about the proposed hotel,with the City providing a disclosure package of known studies and plans currently underway as part of the developments taking place at Oyster Point. The RFP will include submittal requirements such as: ·In-depth project team and company information ·Proposed hotel brands ·Development program ·Schematic drawings ·Project schedule ·Financial information ·Proposed community benefits Next Steps After receiving input and a recommendation from the Housing Subcommittee,staff intends to initiate the RFP process,which would allow approximately 90 days for the remaining four teams to submit their proposals. Proposals will be reviewed based on the following criteria: ·Appropriateness of project concept ·Community benefits in terms of economic development objectives of Oyster Point ·Financial strength to consummate the proposed deal ·Design ·Thoroughness, creativity, and clarity of proposal ·Financial capability to obtain project funding of developments of comparable magnitude and scope ·Results of developer interviews at the Housing Subcommittee City of South San Francisco Printed on 6/22/2017Page 2 of 3 powered by Legistar™ File #:17-631 Agenda Date:6/26/2017 Version:1 Item #:2. Developers that submit proposals will be invited to an in-person interview before the Housing Subcommittee, with the action of recommending the selection of one developer and one alternate.The Housing Subcommittee’s recommendations will then go to the full City Council for approval,and ultimately the approval of a lease agreement with the selected developer.The overall RFP process should take about six months to complete, with a target date of December 2017 or January 2018 for completion. CONCLUSION This report provides an update on the developer solicitation process for the Oyster Point Hotel.Staff requests that the Housing Subcommittee receive this staff report and provide feedback. Attachments: 1.Request for Qualifications 2.Submittal - AJ Capital Partners 3.Submittal - OTO Development 4.Submittal - M-Rad Architecture & Oliver Companies 5.Submittal - Shashi Group, LLC 6.Submittal - Glacier House Hotels, LLC 7.Submittal - Ensemble Real Estate Investments & AECOM Capital 8.Submittal - Bayview Development Group 9.Submittal - JMA Ventures 10.Interview PowerPoint - Ensemble Real Estate Investments 11.Interview PowerPoint - JMA Ventures 12.Interview PowerPoint - OTO Development 13.Interview PowerPoint - Shashi Group 14.Draft - Request for Proposals 15.Score Sheet City of South San Francisco Printed on 6/22/2017Page 3 of 3 powered by Legistar™ HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 1 CO N T A C T : PR E P A R E D O N B E H A L F O F : RE Q U E S T F O R Q U A L I F I C A T I O N S : HO T E L D E V E L O P M E N T O P P O R T U N I T Y TH E D E V E L O P M E N T O F A W A T E R F R O N T H O T E L PR O J E C T A T O Y S T E R P O I N T F E B R U A R Y 2 0 1 7 Ch r i s K r a u s Ma n a g i n g D i r e c t o r CB R E H o t e l s - C o n s u l t i n g 10 1 C a l i f o r n i a S t r e e t , 4 4 th Fl o o r Sa n F r a n c i s c o , C a l i f o r n i a 9 4 1 1 1 Te l : + 1 4 1 5 6 5 2 4 4 8 3 Em a i l : c h r i s . k r a u s @ c b r e . c o m Su b j e c t S i t e Mi k y K u o Di r e c t o r CB R E H o t e l s - C o n s u l t i n g 10 1 C a l i f o r n i a S t r e e t , 4 4 th Fl o o r Sa n F r a n c i s c o , C a l i f o r n i a 9 4 1 1 1 Te l : + 1 4 1 5 7 7 2 0 3 5 8 Em a i l : m i k y . k u o @ c b r e . c o m HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 2 TA B L E O F C O N T E N T S 07 PR O J E C T & S I T E OV E R V I E W 16 SO U T H S A N FR A N C I S C O OV E R V I E W 23 LO C A L L O D G I N G MA R K E T O V E R V I E W 03 EX E C U T I V E SU M M A R Y 28 SUBMITTAL REQUIREMENTS HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 3EXECUTIVE SUMMARYSubject Site HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 4 AN E X C E L L E N T O P P O R T U N I T Y T O D E V E L O P A H I G H - Q U A L I T Y , WA T E R F R O N T H O T E L O N O Y S T ER P O I N T I N S O U T H S A N FR A N C I S C O , C A L I F O R N I A Th e C i t y o f S o u t h S a n F r a n c i s c o ( t h e “ C i t y ” ) , t h r o u g h i t s e l f o r a n af f i l i a t e , s e e k s t o s o l i c i t a s t a t e m e n t o f q u a l i f i c a t i o n s a n d pr e l i m i n a r y p r o j e c t c o n c e p t f r o m q u a l i f i e d D e v e l o p m e n t T e a m s t o bu i l d a h i g h - q u a l i t y , h o t e l o r h o t e l s , t o b e l o c a t e d a t O y s t e r P o i n t in S o u t h S a n F r a n c i s c o , C a l i f o r n i a . Pa r t i a l l y e n t i t l e d w i t h p r o g r a m l e v e l C E Q A c l e a r a n c e f o r u p t o 35 0 g u e s t r o o m s o n 4 . 7 - a c r e s i t e Wa t e r f r o n t l o c a t i o n , a p p r o x i m a t e l y 2 . 5 m i l e s e a s t o f d o w n t o w n So u t h S a n F r a n c i s c o a n d 1 0 m i l e s s o u t h o f S a n F r a n c i s c o Ow n e d b y t h e C i t y a n d w i l l b e d e l i v e r e d v a c a n t a n d g r a d e d i n Q3 o r Q 4 2 0 1 8 Of f e r s u n o b s t r u c t e d v i e w s o f S a n F r a n c i s c o , O a k l a n d , S a n Fr a n c i s c o I n t e r n a t i o n a l A i r p o r t , a n d S a n B r u n o M o u n t a i n s Si t e i s p a r t o f O y s t e r P o i n t M a r i n a R e d e v e l o p m e n t P r o j e c t ; a mu l t i - p h a s e d d e v e l o p m e n t c o ns i s t i n g o f o v e r 2 . 2 m i l l i o n sq u a r e f e e t o f o f f i c e a n d R & D s p a c e , r e t a i l , a n d o p e n s p a c e ( t o be g i n c o n s t r u c t i o n i n 2 0 1 7 ) Lo c a t e d i n c l o s e p r o x i m i t y t o o v e r 2 0 0 b i o t e c h c o m p a n i e s , em p l o y i n g o v e r 2 0 , 0 0 0 p e o p l e Th e p r o p o s e d h o t e l o r h o t e l s i s a n t i c i p a t e d t o r e p r e s e n t a n u p p e r up s c a l e o r u p s c a l e h o t e l , o f f e r i n g t h e a p p r o p r i a t e c o m p l i m e n t o f fa c i l i t i e s a n d a m e n i t i e s t o c a t e r t o t h e l a r g e c o n c e n t r a t i o n o f tr a n s i e n t c o m m e r c i a l a n d l e i s u r e a s w e l l a s c o r p o r a t e g r o u p de m a n d i n t h e l o c a l m a r k e t a r e a . Th r o u g h t h i s R e q u e s t f o r Q u a l i f i c a t i o n s ( “ R F Q ” ) , t h e C i t y s e e k s t o id e n t i f y h i g h l y - q u a l i f i e d , f i n a n c i a l l y c a p a b l e D e v e l o p m e n t T e a m s ab l e t o e n t e r i n t o a l o n g - t e r m g r o u n d l e a s e w i t h t h e C i t y a n d EX E C U T I V E S U M A R Y pe r f o r m a l l s e r v i c e s n e c e s s a r y t o s u c c e s s f u l l y d e v e l o p a h o t e l o r ho t e l s w i t h u p t o 3 5 0 g u e s t r o o m s ( t h e “ H o t e l P r o j e c t ” ) . Fo l l o w i n g a r e v i e w o f q u a l i f i c a t i o n s s u b m i t t e d b y i n t e r e s t e d De v e l o p m e n t T e a m s , t h e C i t y p l a n s t o i n t e r v i e w t h o s e p a r t i e s i t de t e r m i n e s a r e b e s t - s u i t e d t o s u c c e s s f u l l y d e v e l o p t h e H o t e l Pr o j e c t . U l t i m a t e l y , t h e C i t y w il l t h e n s e l e c t t h e m o s t q u a l i f i e d De v e l o p m e n t T e a m s t o s u b m i t a f o r m a l d e v e l o p m e n t p r o p o s a l . Subject Site HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 5 EX E C U T I V E S U M M A R Y Subject Site Sa n F r a n c i s c o In t e r n a t i o n a l A i r p o r t HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 6 EX E C U T I V E S U M M A R Y Su b j e c t S i t e Sa n F r a n c i s c o In t e r n a t i o n a l A i r p o r t Go l d e n G a t e Br i d g e Bay Bridge HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 7 PR O J E C T & S I T E O V E R V I E W Su b j e c t S i t e HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 8 PR O J E C T & S I T E O V E R V I E W SI T E D E S C R I P T I O N : Th e d e v e l o p m e n t s i t e r e p r e s e n t s a o n e o f a k i n d w a t e r f r o n t lo c a t i o n , o f f e r i n g v i e w s o f t h e S a n F r a n c i s c o a n d O a k l a n d s k y l i n e s to t h e n o r t h a n d e a s t a n d S a n F r a n c i s c o I n t e r n a t i o n a l A i r p o r t t o th e s o u t h . C o m p e t i t i v e a d v a n t a g e s o f t h e s i t e i n c l u d e : Wa t e r f r o n t V i e w s : Wi t h i t s i r r e p l a c e a b l e w a t e r f r o n t l o c a t i o n , t h e si t e o f f e r s u n o b s t r u c t e d 2 7 0 - d e g r e e w a t e r f r o n t v i e w s . Pr o x i m i t y t o D e m a n d G e n e r a t o r s : Th e s i t e w i l l b e n e f i t f r o m a n ex c e l l e n t l o c a t i o n i n t h e C i t y ’ s B i o t e c h C l u s t e r , t h e l o c a l a r e a ’ s pr i m a r y e c o n o m i c d r i v e r . B i o t e c h c o m p a n i e s a n c h o r i n g l o c a l R& D a n d o f f i c e d e v e l o p m e n t s i n c l u d e , b u t a r e n o t l i m i t e d t o , Ge n e n t e c h , A m g e n , T h e r m o F i s h e r S c i e n t i f i c , T h e r a v a n c e , I n c . , Ca l i c o L i f e S c i e n c e s ( G o o g l e ) , N G M B i o p h a r m a c e u t i c a l s , I n c . , Pf i z e r / R i n a t , J o h n s o n & J o h n s o n In n o v a t i o n , J L A B S , F i v e P r i m e Th e r a p e u t i c s , I n c . , S u t r o B i o p h a r m a , P o r t o l a P h a r m a c e u t i c a l s , In c . , C L S A , a n d E x e l i x i s , I n c . Oy s t e r P o i n t R e d e v e l o p m e n t P r o j e c t : Th e p r o p o s e d H o t e l Pr o j e c t w o u l d b e p a r t o f t h e O y s t e r P o i n t R e d e v e l o p m e n t Pr o j e c t . T h e O y s t e r P o i n t R e d e v e l o p m e n t P r o j e c t i s a m u l t i - ph a s e d r e d e v e l o p m e n t o f O y s t e r Po i n t a n d w i l l i n c l u d e o v e r 2. 2 5 m i l l i o n s q u a r e f e e t o f R & D a n d o f f i c e s p a c e , t h e p r o p o s e d ho t e l d e v e l o p m e n t , r e t a i l , a n d p u b l i c o p e n s p a c e ( b a s e d o n 20 1 1 e s t i m a t e s ) . I n a d d i t i o n , 1 , 1 9 1 r e s i d e n t i a l u n i t s h a v e b e e n pr o p o s e d a s p a r t o f t h e p r o j e c t a r e a a n d a r e u n d e r co n s i d e r a t i o n f o r a p p r o v a l . Su b j e c t S i t e Ac c e s s i b i l i t y : Th e s i t e i s e a s i l y a c c e s s e d f r o m S t a t e H i g h w a y s 10 1 a n d 2 8 0 , t h e p r i m a r y n o r t h / s o u t h r o u t e s s e r v i n g t h e B a y Ar e a . B A R T , C a l t r a i n , a n d F e r r y s e r v i c e a l s o p r o v i d e c o n v e n i e n t pu b l i c t r a n s p o r t a t i o n c o n n e c t i v i t y t o t h e e n t i r e B a y A r e a . Pr o x i m i t y t o S a n F r a n c i s c o I n t e r n a t i o n a l A i r p o r t ( S F O ) : The Su b j e c t S i t e i s c o n v e n i e n t l y l o c a t e d l e s s t h a n f i v e m i l e s n o r t h , vi a a u t o m o b i l e , o f S a n F r a n c i s c o A i r p o r t . Pr o x i m i t y t o S a n F r a n c i s c o : Wh i l e t h e s i t e ’ s l o c a t i o n i s i d e a l f o r co m m e r c i a l g u e s t s v i s i t i n g l o c a l c o m p a n i e s , t h e p r o p o s e d Ho t e l P r o j e c t w i l l a l s o b e w e l l - p o s i t i o n e d t o c a p t u r e o v e r f l o w de m a n d f r o m S a n F r a n c i s c o . HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 9 PR O J E C T & S I T E O V E R V I E W DE S I G N G O A L S : Th e p r i m a r y d e s i g n g o a l s a r e a s f o l l o w s : 1. Im p l e m e n t a n e n v i r o n m e n t a l l y s u s t a i n a b l e d e s i g n a p p r o a c h 2. Cr e a t e a v a r i e t y o f u n i q u e a n d i n t e r e s t i n g o u t d o o r p l a c e s a n d a st r o n g p e d e s t r i a n n e t w o r k 3. Pr o m o t e a l t e r n a t i v e t r a n s p o r t a t i o n m o d e s , t o , f r o m , a n d w i t h i n th e s i t e 4. In t e g r a t e p r i v a t e a n d p u b l i c s p a c e s 5. Pr o v i d e f o r e c o n o m i c a l l y v i a b l e co m m e r c i a l u s e s t h r o u g h q u a l i t y de s i g n a n d p l a n n i n g 6. Pr o v i d e a m o r e d e s i r a b l e a n d u s a b l e p u b l i c r e a l m . Ad d i t i o n a l d e t a i l s o n t h e O y s t e r P o i n t S p e c i f i c P l a n a n d D e s i g n Gu i d e l i n e s c a n b e f o u n d a t ( C l i c k o n l i n k ) : Oy s t e r P o i n t S p e c i f i c P l a n OY S T E R P O I N T R E D E V E L O P M E N T P R O J E C T O V E R V I E W : Th e v i s i o n o f t h e O y s t e r P o i n t R e d e v e l o p m e n t P r o j e c t i s t o tr a n s f o r m 8 0 a c r e s o f u n d e r u t i l i z e d a n d u n d e r d e v e l o p e d Ba y f r o n t l a n d i n S o u t h S a n F r a n c i s c o i n t o a s u s t a i n a b l e m i x e d - u s e de v e l o p m e n t t h a t w i l l i n c l u d e a st a t e - o f - t h e - a r t l i f e s c i e n c e ca m p u s , a p a r k a n d r e c r e a t i o n d e s t i n a t i o n , a v i b r a n t m a r i n a en v i r o n m e n t , a n d a s i t e t h a t c a n a c c o m m o d a t e c o m m e r c i a l a n d ho t e l l a n d u s e s . T h i s v i s i o n w i l l b e a c h i e v e d b y i m p l e m e n t i n g in n o v a t i v e s u s t a i n a b l e d e s i g n a p p r o a c h e s , s u p e r i o r a r c h i t e c t u r e , an d u r b a n d e s i g n . Ph a s e I o f t h e r e d e v e l o p m e n t p r o j e c t i s c u r r e n t l y u n d e r w a y . Th e p r o p o s e d r e d e v e l o p m e n t o f O y s t e r P o i n t i s i n t e n d e d t o in c l u d e : A n e w c o r p o r a t e c a m p u s w h i c h w i l l i n c l u d e R & D a n d o f f i c e bu i l d i n g s , s t r u c t u r e d p a r k i n g , a n d a c c e s s o r y u s e s . A s i t e t o a c c o m m o d a t e a f u t u r e h o t e l o r h o t e l s , r e s t a u r a n t an d / o r r e t a i l n e a r t h e n e w F e r r y T e r m i n a l Pu b l i c O p e n S p a c e a n d B a y T r a i l I m p r o v e m e n t s Ma r i n a a n d F e r r y T e r m i n a l s e r v i n g a m e n i t i e s i n c l u d i n g p a r k i n g , sh u t t l e d r o p o f f a r e a s , a n d w a t e r s i d e i m p r o v e m e n t s . 1, 1 9 1 r e s i d e n t i a l u n i t s h a v e b e e n p r o p o s e d a s p a r t o f t h e pr o j e c t a r e a a n d a r e u n d e r c o n s i d e r a t i o n f o r a p p r o v a l . Cu r r e n t l y a J o i n t P o w e r s A g r e e m e n t e x i s t s b e t w e e n t h e C i t y o f So u t h S a n F r a n c i s c o a n d t h e S a n M a t e o C o u n t y H a r b o r D i s t r i c t fo r m a i n t e n a n c e a n d o p e r a t i o n s o f t h e s i t e a n d s u r r o u n d i n g u s e s . Th e a g r e e m e n t i s i n t e n d e d t o b e a m e n d e d i n t h e f u t u r e . Subject Site HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 10 PR O J E C T & S I T E O V E R V I E W Su b j e c t S i t e In t e n d e d u s e s i n c l u d e r e t a i l , p a r k i n g , o p e n sp a c e , r e c r e a t i o n , m a r i n a , o f f i c e , co m m e r c i a l s e r v i c e s a n d o t h e r p o t e n t i a l pu b l i c a n d p r i v a t e u s e s . HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 11 PR O J E C T & S I T E O V E R V I E W Su b j e c t S i t e In t e n d e d u s e s i n c l u d e r e t a i l , p a r k i n g , o p e n sp a c e , r e c r e a t i o n , m a r i n a , o f f i c e , co m m e r c i a l s e r v i c e s a n d o t h e r p o t e n t i a l pu b l i c a n d p r i v a t e u s e s . HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 12 PR O J E C T & S I T E O V E R V I E W HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 13 PR O J E C T & S I T E O V E R V I E W HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 14 PR O J E C T & S I T E O V E R V I E W HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 15 PR O J E C T & S I T E O V E R V I E W DE V E L O P M E N T O P P O R T U N I T Y O V E R V I E W : Th i s H o t e l P r o j e c t i s i n t e n d e d t o b e n e f i t b o t h t h e C i t y o f S o u t h S a n F r a n c i s c o an d t h e S o u t h S a n F r a n c i s c o B i o t e c h C l u s t e r . T o a c c o m p l i s h t h e s e o b j e c t i v e s , th e C i t y s e e k s a q u a l i f i e d D e v e l o p m e n t T e a m t o c o n s t r u c t a p r o j e c t w i t h u p t o 35 0 g u e s t r o o m s a n d s u c h s u p p o r t a m e n i t i e s a s f o o d a n d b e v e r a g e f a c i l i t i e s , me e t i n g a n d e v e n t s p a c e , a n d r e c r e a t i o n a l o f f e r i n g s , t h o u g h t h e p r e c i s e pr o g r a m m i n g a n d a m e n i t y m i x w i l l b e d e t e r m i n e d b y t h e D e v e l o p m e n t T e a m . Up o n e n t e r i n g i n t o a d e v e l o p m e n t a g r e e m e n t a n d p o s s i b l y a l o n g - t e r m gr o u n d l e a s e , t h e C i t y e x p e c t s t h a t t h e s e l e c t e d D e v e l o p m e n t T e a m w i l l h a v e pr i m a r y r e s p o n s i b i l i t y f o r s e c u r i n g f u n d i ng f o r p r e d e v e l o p m e n t , n e c e s s a r y s i t e pr e p a r a t i o n , n e c e s s a r y i n f r a s t r u c t u r e, v e r t i c a l c o n s t r u c t i o n , a n d a l l o t h e r ex p e n s e s a n d a c t i v i t i e s n e c e s s a r y to m a k e t h e p r o j e c t s u c c e s s f u l w h i l e co m p l y i n g w i t h a p p l i c a b l e r e g u l a t i o n s . It i s e n v i s i o n e d t h a t t h e s e l e c t e d D e v e l o p m e n t T e a m c a n h a v e c o n t r o l o f t h e si t e b e g i n n i n g s o m e t i m e d u r i n g t h e 3 rd or 4 th qu a r t e r o f 2 0 1 8 . T h e H o t e l Pr o j e c t s i t e w i l l b e a v a i l a b l e a s l e v e l e d a n d g r a d e d l a n d , w h i c h c o m e s w i t h an i n v e s t m e n t o f $ 1 m i l l i o n ( b a s e d o n 2 0 1 1 c o s t e s t i m a t e s ) . ” SI T E S P E C I F I C A T I O N S Si t e S i z e A p p r o x i m a t e l y 4 . 7 a c r e s Ow n e r s h i p I n t e r e s t L e a s e h o l d I n t e r e s t Si t e c o n t r o l d a t e f o r De v e l o p m e n t T e a m 3Q o r 4 Q 2 0 1 8 En t i t l e m e n t Pa r t i a l l y e n t i t l e d w i t h p r o g r a m l e v e l CE Q A c l e a r a n c e f o r u p t o 3 5 0 gu e s t r o o m s He i g h t Su b j e c t t o F A R P a r t 7 7 h e i g h t re s t r i c t i o n s ( F A A r e g u l a t i o n ) FA R 1. 6 B a s e F A R 2. 2 F A R w i t h i n c e n t i v e s Pa r k i n g R e q u i r e m e n t s Re d u c t i o n s r e l a t e d f o r a i r p o r t - or i e n t e d h o t e l s , Municipal Code Ch. 20 . 3 3 0 . 0 0 6 Re s o u r c e s ( C l i c k o n l i n k : ) Oy s t e r P o i n t S p e c i f i c P l a n So u t h S a n F r a n c i s c o M u n i c i p a l C o d e Oy s t e r P o i n t D D A ( D i s p o s i t i o n a n d D e v e l o p m e n t A g r e e m e n t ) an d D A ( D e v e l o p m e n t A g r e e m e n t ) Mu n i c i p a l C o d e C h . 2 0 . 3 3 0 . 0 0 6 ( P a r k i n g ) HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 16 SO U T H S A N F R A N C I S C O O V E R V I E W HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 17 CI T Y O F S O U T H S A N F R A N C I S C O : So u t h S a n F r a n c i s c o i s h o m e t o t h e w o r l d ’ s l a r g e s t b i o t e c h ce n t e r . T h e a r e a ’ s g e o g r a p h y , b u s i n e s s c l i m a t e , a n d in f r a s t r u c t u r e i n f u s e t h e a r e a w i t h a c u l t u r e o f c o l l a b o r a t i o n an d e n t r e p r e n e u r i a l s p i r i t u n l i k e a n y w h e r e e l s e . S o u t h S a n Fr a n c i s c o o f f e r s v e n t u r e c a p i t a l n e x t d o o r , a n e t w o r k w i t h t h e mo s t t a l e n t e d p e o p l e i n L i f e S c i e n c e , a s w e l l a s t h e p r e s e n c e of i n d u s t r y l e a d i n g c o m p a n i e s . T h e e a s y a c c e s s t o S a n Fr a n c i s c o I n t e r n a t i o n a l A i r p o r t h e l p s f a c i l i t a t e c l i e n t s e r v i c e s a l l ov e r t h e w o r l d . SO U T H S A N F R A N C I S C O M A R K E T O V E R V I E W So u t h S a n F r a n c i s c o i s o f t e n r e f e r r e d t o a s t h e b i r t h p l a c e o f bi o t e c h n o l o g y . T h e C i t y i s t h e c en t e r o f t h e l a r g e s t , f a s t e s t - gr o w i n g b i o t e c h n o l o g y c l u s t e r i n t h e w o r l d . L o c a t e d a t t h e cr o s s r o a d s o f S a n F r a n c i s c o a n d S i l i c o n V a l l e y , S o u t h S a n Fr a n c i s c o o f f e r s u n p r e c e d e n t e d a c c e s s t o a w o r l d o f op p o r t u n i t y : UC S F , S t a n f o r d , a n d U C B e r k e l e y #1 B i o t e c h n o l o g y W o r k f o r c e i n t h e W o r l d Si l i c o n V a l l e y Mi s s i o n B a y Sa n F r a n c i s c o F i n a n c i a l D i s t r i c t Sa n F r a n c i s c o I n t e r n a t i o n a l a n d O a k l a n d I n t e r n a t i o n a l Ai r p o r t s HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 18 #1 c i t y i n t h e w o r l d f o r b i o t e c h l a b s p a c e : 21 1 e x i s t i n g b i o t e c h f i r m s i n o n e c l u s t e r o f f e r i n g a h u b o f co l l a b o r a t i o n a n d o p p o r t u n i t y f o r p a r t n e r s h i p 11 m i l l i o n S F 20 , 0 0 0 j o b s #1 c i t y i n t h e w o r l d f o r p a t e n t s #1 c i t y i n t h e w o r l d f o r V C f u n d i n g #1 c i t y i n t h e w o r l d f o r b i o t e c h w o r k f o r c e Ro o m t o g r o w : 6 . 5 m i l l i o n S F o f R & D s p a c e u n d e r c o n s t r u c t i o n o r ap p r o v e d f o r d e v e l o p m e n t i n t h e n e x t t h r e e y e a r s Au t h e n t i c d o w n t o w n , s t u n n i n g w a t e r f r o n t , f a m i l y - f r i e n d l y ne i g h b o r h o o d s , r i c h c u l t u r a l l i f e Co n v e n i e n t a c c e s s t o t r a n s i t : T w o B AR T s t a t i o n s , C a l T r a i n , S F F e r r y , an d S F O A i r p o r t Bu s i n e s s f r i e n d l y c i t y g o v e r n m e n t t h a t h a s 4 0 - y e a r p r o v e n t r a c k re c o r d o f s e r v i n g b i o t e c h c o m p a n i e s Ex p e r t s t a f f a n d c o n s u l t a n t s d e d i c a t e d t o e x p e d i t i n g p l a n r e v i e w an d a p p r o v a l o f n e w b i o t e c h p r o j e c t s Fa s t e s t t u r n a r o u n d t i m e f o r e n t i t l i n g a n d p e r m i t t i n g b i o t e c h de v e l o p m e n t SO U T H S A N F R A N C I S C O M A R K E T O V E R V I E W HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 19 Ex i s t i n g A n c h o r s Ge n e n t e c h Am g e n Th e r m o F i s h e r S c i e n t i f i c Th e r a v a n c e , I n c . Ca l i c o L i f e S c i e n c e s ( G o o g l e ) NG M B i o p h a r m a c e u t i c a l s , I n c . Pf i z e r / R i n a t Jo h n s o n & J o h n s o n I n n o v a t i o n , J L A B S Fi v e P r i m e T h e r a p e u t i c s , I n c . Su t r o B i o p h a r m a Po r t o l a P h a r m a c e u t i c a l s , I n c . CL S A Ex e l i x i s , I n c . SO U T H S A N F R A N C I S C O M A R K E T O V E R V I E W Un d e r C o n s t r u c t i o n Th e C o v e a t O y s t e r P o i n t ( 8 8 4 , 0 0 0 s q u a r e f e e t ) Ge n e s i s T o w e r s ( 7 0 0 , 0 0 0 s q u a r e f e e t o f R & D l a b sp a c e ) Ve r i f y L i f e S c i e n c e s ( G o o g l e ) ( 4 0 0 , 0 0 0 s q u a r e f e e t ) Ca l i c o L i f e S c i e n c e s ( G o o g l e ) ( 3 5 , 0 0 0 s q u a r e f e e t ) Ge n e n t e c h E m p l o y e e C e n t e r ( 6 6 , 0 0 0 s q u a r e f e e t ) Fu l l y E n t i t l e d / I n P l a n n i n g La n d i n g a t O y s t e r P o i n t ( 2 . 2 5 m i l l i o n s q u a r e f e e t mi x e d - u s e c a m p u s w i t h P h a s e 1 o f 5 0 8 , 0 0 0 s q u a r e fe e t o f R & D l a b s p a c e s t a r t i n g c o n s t r u c t i o n i n 2 0 1 7 ) Ge n e s i s T o w e r s ( 7 0 0 , 0 0 0 s q u a r e f e e t o f R & D l a b sp a c e ) Al e x a n d r i a , 2 1 3 E . G r a n d A v e . ( 2 9 0 , 0 0 0 s q u a r e f e e t or R & D l a b s p a c e ) Bi o m e d R e a l t y , 4 7 5 E c c l e s ( 2 6 2 , 0 0 0 s q u a r e f e e t R & D la b s p a c e ) a n d G a t e w a y o f P a c i f i c ( 1 . 3 m i l l i o n s q u a r e fe e t b i o t e c h c a m p u s ) Ge n e n t e c h E x p a n s i o n ( 6 0 0 , 0 0 0 s q u a r e f e e t e x p a n s i o n to i t s e x i s t i n g 6 m i l l i o n s q u a r e f o o t w o r l d c o r p o r a t e he a d q u a r t e r s c a m p u s ) Me r c k ( 2 9 4 , 0 0 0 s q u a r e f o o t r e s e a r c h a n d de v e l o p m e n t f a c i l i t y s e r v i n g a s W e s t C o a s t he a d q u a r t e r s l o c a t e d a t 2 1 3 E . G r a n d A v e . ) An a d d i t i o n a l 6 . 5 m i l l i o n s q u a r e f e e t of R & D a n d o f f i c e s p a c e h a s b e e n ap p r o v e d f o r d e v e l o p m e n t o v e r t h e ne x t t h r e e y e a r s ! HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 20 SO U T H S A N F R A N C I S C O M A R K E T O V E R V I E W Su b j e c t S i t e HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 21 SO U T H S A N F R A N C I S C O M A R K E T O V E R V I E W Subject Site So u r c e : h t t p : / / c o n s t r u c t i o n . s s f . n e t / HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 22 SO U T H S A N F R A N C I S C O M A R K E T O V E R V I E W Sa n F r a n c i s c o I n t e r n a t i o n a l A i r p o r t Mo s t v i s i t o r s t o S o u t h S a n F r a n c i s c o t r a v e l i n g b y a i r w i l l f l y i n t o Sa n F r a n c i s c o I n t e r n a t i o n a l A i r p o r t ( “ S F O ” ) , l o c a t e d d i r e c t l y t o th e s o u t h o f S o u t h S a n F r a n c i s c o . SF O a c c o m m o d a t e s o v e r 5 0 m i l l i o n p a s s e n g e r s a n n u a l l y 2nd la r g e s t i n t e r n a t i o n a l a i r p o r t i n C a l i f o r n i a 7th bu s i e s t a i r p o r t i n t h e U . S . 21 st bu s i e s t a i r p o r t i n t h e w o r l d Ve h i c u l a r T r a n s p o r t a t i o n So u t h S a n F r a n c i s c o i s s e r v e d p r i m a r i l y b y S t a t e H i g h w a y s 1 0 1 a n d 28 0 t h e p r i m a r y n o r t h - s o u t h r o u t e s w h i c h s e r v e t h e B a y A r e a a n d No r t h e r n C a l i f o r n i a . S t a t e H i g h w a y 1 0 1 c o n n e c t s t o I n t e r s t a t e 8 0 , wh i c h l e a d s f r o m S a n F r a n c i s c o t o S a c r a m e n t o . So u t h S a n F r a n c i s c o i s c o n v e n i e n t l y l o c a t e d a p p r o x i m a t e l y 1 0 m i l e s so u t h o f S a n F r a n c i s c o , 2 0 m i l e s s o u t h w e s t o f O a k l a n d , a n d 4 0 mi l e s n o r t h w e s t o f S a n J o s e . Fe r r y S e r v i c e Fe r r y s e r v i c e i s o f f e r e d f r o m Oy s t e r P o i n t inSouthSanFranciscoto th e S a n F r a n c i s c o F e r r y B u i l d i n g , O a k l a n d J a c k L o n d o n S q u a r e , an d A l a m e d a M a i n S t r e e t . In c r e a s e d c o m m u t e r s e r v i c e i s e x p e c t e d w i t h t h e r e d e v e l o p m e n t o f Oy s t e r P o i n t . Sa n F r a n c i s c o B a y A r e a R a p i d T r a n s i t (“ B A R T ” ) BA R T , a h i g h - s p e e d r a i l s y s t e m tr a n s p o r t a t i o n s y s t e m Li n k s 4 3 s t a t i o n s i n t h e C o u n t i e s of A l a m e d a , C o n t r a C o s t a , S a n Ma t e o , a n d S a n F r a n c i s c o BA R T s e r v e s a p p r o x i m a t e l y 1 2 9 mi l l i o n p a s s e n g e r s a n n u a l l y Ca l t r a i n Ra i l s y s t e m s e r v i n g S a n F r a n c i s c o , S a n M a t e o , a n d S a n t a C l a r a Co u n t i e s Sp a n s 7 7 . 4 m i l e s a n d i n c l u d e s 3 2 s t a t i o n s f r o m S a n F r a n c i s c o t o Gi l r o y Se r v e s o v e r 1 9 m i l l i o n p a s s e n g e r s a n n u a l l y Th e H o t e l P r o j e c t s i t e i s l o c a t e d a d j a c e n t t o t h e O y s t e r P o i n t F e r r y Te r m i n a l , a p p r o x i m a t e l y 4 m i l e s ea s t o f t h e S o u t h S a n F r a n c i s c o BA R T s t a t i o n a n d 1 . 5 m i l e s e a s t o f t h e S o u t h S a n F r a n c i s c o C a l t r a i n st a t i o n , f a c i l i t a t i n g e a s y a c c e s s t o s u c h d e s t i n a t i o n s a s S a n F r a n c i s c o , Oa k l a n d , S a n J o s e , a n d t h e s e c i t i e s ’ r e s p e c t i v e a i r p o r t s . DI S T A N C E T O N E A R B Y M A J O R M A R K E T S Ci t y A p p r o x . D i s t a n c e Sa n F r a n c i s c o , C A 1 0 Oa k l a n d , C A 2 0 Sa n J o s e , C A 4 0 Sa c r a m e n t o , C A 1 0 0 Lo s A n g e l e s , C A 3 7 5 HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 23 LO C A L L O D G I N G M A R K E T O V E R V I E W HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 24 Th e o u t l o o k f o r t h e S a n F r a n c i s c o M S A l o d g i n g i n d u s t r y i s p r e s e n te d i n t h e t a b l e b e l o w b a s e d o n C B R E H o t e l ’ s A m e r i c a s R e s e a r c h Ho t e l H o r i z o n s ® D e c e m b e r – F e b r u a r y 2 0 1 7 . T h e S a n F r a n c i s c o M S A i s i n c l u s i v e o f S a n F r a n c i s c o , S a n M a t e o C o u n t y ( i n c l u d i n g So u t h S a n F r a n c i s c o ) , a n d p a r t s o f M a r i n C o u n t y . SA N F R A N C I S C O M S A L O D G I N G M A R K E T O V E R V I E W Fo o t n o t e s 1 S o u r c e : C B R E H o t e l s ’ A m e r i c a s R e s e a r c h H o t e l H o r i z o n s ® D e c e m b e r 2 0 1 6 – F e b r u a r y 2 0 1 7 Na t i o n a l E d i t i o n 2 T h e p e r i o d s d e n o t e d b y a n a s t e r i s k i n d i c a t e p r o j e c t e d p e r f o r m a n c e . 50%55%60%65%70%75%80%85%90% $1 0 0 $1 2 5 $1 5 0 $1 7 5 $2 0 0 $2 2 5 $2 5 0 $2 7 5 '1 1 ' 1 2 ' 1 3 ' 1 4 ' 1 5 ' 1 6 * ' 1 7 * ' 1 8 * ' 1 9 * ' 2 0 * Sa n F r a n c i s c o M S A L o d g i n g M a r k e t ADR RevPAR Occ Se c o n d r a n k e d m a r k e t i n U . S . w i t h r e s p e c t t o R e v P A R Do u b l e - d i g i t a n n u a l R e v P A R g r o w t h f r o m 2 0 1 1 t h r o u g h 2 0 1 4 Re v P A R i n c r e a s e d a t 1 1 . 3 % C A G R f r o m 2 0 1 1 t h r o u g h 2 0 1 5 Es t i m a t e d o c c u p a n c y o f 84 % in 2 0 1 6 – n e a r r e c o r d h i g h Ma r k e t o p e r a t i n g a t m a x i m u m c a p a c i t y – r e s t r i c t i n g R e v P A R gr o w t h Hi g h b a r r i e r t o e n t r y m a r k e t w i t h l i m i t e d a v a i l a b i l i t y o f l a n d Sa n F r a n c i s c o M S A N a t i o n a l R a n k i n g – 2 0 1 6 ( E ) Oc c u p a n c y – 2 nd AD R – 2 nd Re v P A R – 2 nd HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 25 SO U T H S A N F R A N C I S C O C O M P E T I T I V E L O D G I N G P E R F O R M A N C E Th e f o l l o w i n g s e c t i o n p r o v i d e s a n o v e r v i e w o f t h e S o u t h S a n F r a n c i s c o ho t e l m a r k e t , b a s e d o n d a t a f r o m S m i t h T r a v e l R e s e a r c h ( “ S T R ” ) . T h i s da t a i s i n t e n d e d t o p r o v i d e r e s p o n d e n t s w i t h s u m m a r y i n f o rm a t i o n p e r t a i n i n g t o t h e S o u t h S a n F r a n c i s c o m a r k e t . Th e p r i m a r y c o m p e t i t i v e S o u t h S a n F r a n c i s c o l o d g i n g m a r k e t c u r r e n t l y f ea t u r e s 1 1 u p p e r u p s c a l e , u p s c a l e , a n d u p p e r m i d s c a l e h o t e l s t o t a l i n g 1, 8 3 0 g u e s t r o o m s . T h e r e m a i n d e r o f t h e l o d g i n g ma r k e t c o n s i s t s o f s m a l l e r e c o n o m y a n d m i d s ca l e p r o p e r t i e s . T h e p r i m a r y c o m p e t i t i v e lo d g i n g s u p p l y i s p r e s e n t e d i n t h e t a b l e b e l o w . SO U T H S A N F R A N C I S C O C O M P E TI T I V E L O D G I N G S U P P L Y Ho t e l R o o m s Op e n i n g Da t e C h a i n C l a s s A f f i l i a t i o n Re s i d e n c e I n n S a n F r a n c i s c o A i r p o r t O y s t e r P o i n t W a t e r f r o n t 1 5 2 M a r - 0 1 U p s c a l e M a r r i o t t Co u r t y a r d S a n F r a n c i s c o A i r p o r t O y s t e r P o i n t W a t e r f r o n t 1 9 8 D e c - 0 0 U p s c a l e M a r r i o t t Ha m p t o n I n n S a n F r a n c i s c o A i r p o r t 1 0 0 N o v - 9 9 U p p e r M i d s c a l e H i l t o n Fo u r P o i n t b y S h e r a t o n H o t e l & S u i t e s S a n F r a n c i s c o A i r p o r t 1 0 1 J u l - 0 1 U p s c a l e M a r r i o t t Ho l i d a y I n n E x p r e s s S a n F r a n c i s c o A i r p o r t No r t h 8 9 D e c - 0 1 U p p e r M i d s c a l e I n t e r C o n t i n e n t a l Ho l i d a y I n n S a n F r a n c i s c o A i r p o r t 2 2 4 Ap r - 8 7 U p p e r M i d s c a l e I n t e r C o n t i n e n t a l Em b a s s y S u i t e s S a n F r a n c i s c o A i r p o r t 3 1 2 A u g - 9 8 U p p e r U p s c a l e H i l t o n Be s t W e s t e r n P l u s G r o v e s n o r A i r p o r t H ot e l 2 0 6 J u n - 7 0 U p p e r M i d s c a l e B e s t W e s t e r n La r k s p u r L a n d i n g S a n F r a n c i s c o 1 1 1 A p r - 9 9 U p s c a l e L a r k s p u r L a n d i n g Hi l t o n G a r d e n I n n S a n F r a n c i s c o A i r p o r t N o r t h 1 6 9 A u g - 9 9 U p s c a l e H i l t o n Co m f o r t I n n & S u i t e s S a n F r a n c i s c o Ai r p o r t 1 6 8 J u n - 8 6 U p p e r M i d s c a l e C h o i c e To t a l 1, 8 3 0 - - - HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 26 SO U T H S A N F R A N C I S C O C O M P E T I T I V E L O D G I N G P E R F O R M A N C E Wh i l e t h e S o u t h S a n F r a n c i s c o m a r k e t , l i k e n e a r l y a l l m a r k e t s a c r o s s t h e U n i t e d S t a t e s , w a s a f f e ct e d b y t h e n a t i o n a l r e c e s s i o n o f 2 0 0 9 , a v e r a g e da i l y r a t e ( “ A D R ” ) i n t h e l o c a l m a r k e t h a s r e b o u n d e d s t r o n g l y s i n c e , e x c e e d i n g p r e - r e c e s s i o n a r y p e a k l e v e l s . A s n o t e d , o c c u p a n c y h a s co n t i n u e d t o i n c r e a s e i n e a c h i n d i v i d u a l y e a r s i n c e 2 0 0 9 . C o u p l e d w i t h s tr o n g A D R g r o w t h o v e r t h e p a s t f i v e y e a r s , t h e m a r k e t h a s a c h i e v e d do u b l e d i g i t R e v P A R g r o w t h b e t w e e n 2 0 1 1 a n d 2 0 1 5 . T h e t a b l e p r o v i d e d b e l o w d e t a i l s t h e S o u t h S a n F r a n c i s c o m a r k e t ’ s o c c u p a n c y a n d A D R pe r f o r m a n c e f o r t h e y e a r s 2 0 0 0 t o 2 0 1 5 , a s w e l l a s t h r o u g h y e a r - t o - d a t e ( “ Y T D ” ) N o v e m b e r 2 0 1 5 a n d 2 0 1 6 . A s n o t e d , t h e c o m p e t i t i v e lo d g i n g m a r k e t i s c u r r e n t l y a c h i e v i n g r e c o r d o c c u p a n c y , A D R a n d R e v P A R l e v e l s . SO U T H S A N F R A N C I S C O H O T E L M A R K E T - U P P E R U P S C A L E , U P S C A L E , & U P P E R M I D S C A L E HI S T O R I C A L P E R F O R M A N C E O F T H E C O M P E T I T I V E M A R K E T An n u a l P e r c e n t O c c u p i e d P e r c e n t M a r k e t P e r c e n t P e r c e n t Ye a r S u p p l y C h a n g e R o o m s C h a n g e O c c u p a n c y A D R C h a n g e R e v P A R C h a n g e 20 0 0 5 4 3 , 1 2 0 - 38 0 , 0 1 4 - 79 . 7 % $ 1 3 0 . 4 9 - $1 0 3 . 9 6 - 20 0 1 6 6 7 , 5 8 5 2 2 . 9 % 3 6 6 , 9 8 9 - 3 . 4 % 6 0 . 1 % $ 1 1 4 . 7 0 - 1 2 . 1 % $ 6 8 . 9 2 - 3 3 . 7 % 20 0 2 6 6 7 , 5 8 5 0 . 0 % 4 1 2 , 3 3 2 1 2 . 4 % 6 1 . 8 % $ 8 7 . 8 4 - 2 3 . 4 % $ 5 4 . 2 6 - 2 1 . 3 % 20 0 3 6 6 7 , 5 8 5 0 . 0 % 4 4 1 , 2 7 3 7 . 0 % 6 6 . 1 % $ 7 9 . 2 1 - 9 . 8 % $ 5 2 . 3 6 - 3 . 5 % 20 0 4 6 6 7 , 5 8 5 0 . 0 % 4 8 1 , 1 0 7 9 . 0 % 7 2 . 1 % $ 8 1 . 3 4 2 . 7 % $ 5 8 . 6 2 1 2 . 0 % 20 0 5 6 6 7 , 5 8 5 0 . 0 % 5 0 5 , 3 6 2 5 . 0 % 7 5 . 7 % $ 8 6 . 5 5 6 . 4 % $ 6 5 . 5 2 1 1 . 8 % 20 0 6 6 6 7 , 5 8 5 0 . 0 % 5 0 5 , 3 6 2 0 . 0 % 7 5 . 7 % $ 9 9 . 5 1 1 5 . 0 % $ 7 5 . 3 3 1 5 . 0 % 20 0 7 6 6 7 , 5 8 5 0 . 0 % 5 1 2 , 7 0 5 1 . 5 % 7 6 . 8 % $ 1 1 2 . 1 7 1 2 . 7 % $ 8 6 . 1 5 1 4 . 4 % 20 0 8 6 6 7 , 5 8 5 0 . 0 % 5 2 0 , 7 1 6 1 . 6 % 7 8 . 0 % $ 1 1 8 . 2 8 5 . 4 % $ 9 2 . 2 6 7 . 1 % 20 0 9 6 6 7 , 5 8 5 0 . 0 % 4 8 6 , 6 6 9 - 6 . 5 % 7 2 . 9 % $ 9 9 . 9 2 - 1 5 . 5 % $ 7 2 . 8 4 - 2 1 . 0 % 20 1 0 6 6 7 , 5 8 5 0 . 0 % 5 1 6 , 0 4 3 6 . 0 % 7 7 . 3 % $ 9 9 . 9 4 0 . 0 % $7 7 . 2 5 6 . 1 % 20 1 1 6 6 7 , 5 8 5 0 . 0 % 5 3 9 , 4 0 9 4 . 5 % 8 0 . 8 % $ 1 1 1 . 9 3 1 2 . 0 % $9 0 . 4 4 1 7 . 1 % 20 1 2 6 6 7 , 5 8 5 0 . 0 % 5 5 3 , 4 2 8 2 . 6 % 8 2 . 9 % $ 1 2 9 . 2 2 1 5 . 4 % $1 0 7 . 1 2 1 8 . 4 % 20 1 3 6 6 7 , 5 8 5 0 . 0 % 5 6 2 , 7 7 4 1 . 7 % 8 4 . 3 % $ 1 4 2 . 3 2 1 0 . 1 % $1 1 9 . 9 8 1 2 . 0 % 20 1 4 6 6 7 , 9 5 0 0 . 1 % 5 6 9 , 7 6 1 1 . 2 % 8 5 . 3 % $ 1 5 9 . 6 4 1 2 . 2 % $1 3 6 . 1 7 1 3 . 5 % 20 1 5 6 6 7 , 9 5 0 0 . 0 % 5 9 6 , 4 7 9 4 . 7 % 8 9 . 3 % $ 1 7 2 . 3 7 8 . 0 % $1 5 3 . 9 3 1 3 . 0 % CA G R / A V G . 1 . 4 % - 3 . 1 % - 7 6 . 2 % 1 . 9 % - 2 . 7 % - YT D N o v ' 1 5 6 1 2 , 2 8 8 - 5 5 1 , 6 7 1 - 9 0 . 1 % $ 1 7 5 . 6 4 - $ 1 5 8 . 2 5 - YT D N o v ' 1 6 6 1 2 , 2 8 8 0 . 0 % 5 4 3 , 7 1 1 - 1 . 4 % 8 8 . 8 % $ 1 8 0 . 5 4 2 . 8 % $ 1 6 0 . 3 2 1 . 3 % So u r c e : Sm i t h T r a v e l R e s e a r c h HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 27 SO U T H S A N F R A N C I S C O C O M P E T I T I V E L O D G I N G M A P HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 28 SU B M I T T A L R E Q U I R E M E N T S HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 29 SU B M I T T A L R E Q U I R E M E N T S Th i s s e c t i o n s u m m a r i z e s t h e b a s i c r e q u i r e m e n t s f o r a l l s u b m i t t a l s a n d p r o vi d e s a n o v e r a l l s c h e d u l e f o r t h e p r e p a r a t i o n , r e v i e w , a n d s e l e c t i o n p r o c e ss. Co n t a c t , D e l i v e r y , a n d S c h e d u l e Al l r e s p o n s e s t o t h i s R F Q m u s t b e s u b m i t t e d o n o r b e f o r e 5 : 0 0 P . M . P S T o n F r i d a y , M a r c h 3 1 , 2 0 1 7 to th e f o l l o w i n g a d d r e s s a n d c o n t a c t : On e ( 1 ) e l e c t r o n i c c o p y t o b o t h C h r i s K r a u s a n d M i k y K u o . O n e h a r d c o p y t o M i k y K u o . Ch r i s K r a u s M i k y K u o Ma n a g i n g D i r e c t o r D i r e c t o r 10 1 C a l i f o r n i a S t r e e t , 4 4 th Fl o o r 1 0 1 C a l i f o r n i a S t r e e t , 4 4 th Fl o o r Sa n F r a n c i s c o , C a l i f o r n i a 9 4 1 1 1 S a n F r a n c i s c o , C a l i f o r n i a 9 4 1 1 1 Te l : + 1 4 1 5 6 5 2 4 4 8 3 T e l : + 1 4 1 5 7 7 2 0 3 5 8 Em a i l : c h r i s . k r a u s @ c b r e . c o m E m a i l : m i k y . k u o @ c b r e . c o m Fo u r ( 4 ) h a r d c o p i e s a n d o n e e l e c t r o n i c c o p y t o R o n G e r b e r . Ro n G e r b e r Ec o n o m i c D e v e l o p m e n t a n d H o u s i n g M a n a g e r Ci t y o f S o u t h S a n F r a n c i s c o Ec o n o m i c & C o m m u n i t y D e v e l o p m e n t D e p a r t m e n t PO B o x 7 1 1 So u t h S a n F r a n c i s c o , C a l i f o r n i a 9 4 0 8 3 Te l : + 1 6 5 0 8 2 9 6 6 2 0 Em a i l : r o n . g e r b e r @ s s f . n e t La t e s u b m i t t a l s a n d i n c o m p l e t e s u b m i t t a l s m a y b e r e j e c t e d . As s o o n a s i t i s k n o w n , b u t n o l a t e r t h a n 5 : 0 0 P M o n F r i d a y , M a r c h 1 7 , 2 0 1 7 , a l l po t e n t i a l p r o p o s e r s s h a l l s u b m i t a n e m a i l s t a t e m e n t o f t h e i r i n t e n t t o su b m i t a s t a t e m e n t o f q u a l i f i c a t i o n s t o t h e C i t y o f S o u t h S a n F r a n c i s c o . T h i s n o t i c e o f i n t e n t s h a l l b e e m a i l e d t o M i k y K u o a t t h e e m a i l a d d r e s s l i s t e d ab o v e . To m a i n t a i n a n o p e n p r o c e s s , w e r e q u e s t t h a t a l l q u e s t i o n s b e d i r e c t e d v i a e- m a i l t o M i k y K u o a n d / o r C h r i s K r a u s a t t h e e m a i l a d d r e s s e s l i s t e d a b o v e . HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 30 SU B M I T T A L R E Q U I R E M E N T S Yo u a r e r e q u e s t e d t o p r o v i d e a s u b m i t t a l o f y o u r f i r m ’ s q u a l i f i c a t i o n s t o t h e C i t y o f S o u t h S a n F r a n c i s c o . Y o u r s u b m i t t a l s h o u l d i n c l u d e t h e f o l l o w i n g : Su m m a r y o f y o u r f i r m ’ s q u a l i f i c a t i o n s , i n c l u d i n g , b u t n o t l i m i t e d t o s u m m a ry o f r e l e v a n t h o t e l d e v e l o p m e n t e x p e r i e n c e , o w n e r s h i p e x p e r i e n c e , a n d op e r a t i n g e x p e r i e n c e . Ov e r v i e w o f t h e p r o p o s e d D e v e l o p m e n t T e a m i n c l u d i n g r o l e s , r e s p o n s i b i l i t i e s , a n d e x p e r i e n c e . Pr o v i d e f i n a n c i a l i n f o r m a t i o n n e c e s s a r y t o d e m o n s t r a t e t h a t t h e D e v e l o p m e n t T e a m w i l l h a v e t h e n e c e s s a r y f i n a n c i a l s t a n d i n g , c a p a c i t y , e x p e r i e n c e, an d r e s o u r c e s t o u n d e r t a k e , f i n a n c e , a n d d e l i v e r t h e p r o j e c t . N o t e t h a t a ll m a t e r i a l s s u b m i t t e d u n d e r t h i s S e c t i o n m a y b e s e p a r a t e l y s e a l e d a n d ma r k e d a s “ C o n f i d e n t i a l a n d P r o p r i e t a r y C o m m e r c i a l I n f o r m a t i o n ” a t t h e p r o p o s e r ’ s d i s c r e t i o n . Pr o v i d e a p r e l i m i n a r y d e s c r i p t i o n o f t h e c o n c e p t a n d v i s i o n f o r t h e o v e r a l l p r o j e c t w i t h a s m u c h s p e c i f i c i t y a s p o s s i b l e . T h i s s h o u l d i n c l u d e , b u t n o t ne c e s s a r i l y b e l i m i t e d t o , p r o j e c t s i z e a n d c o n f i g u r a t i o n ( n u m b e r o f r o o m s, f l o o r s , a n d t o t a l s q u a r e f e e t ) , b r a n d , a m e n i t i e s , a n d p a r k i n g p l a n . Vi s u a l / a r c h i t e c t u r a l r e n d e r i n g s c o u l d a i d i n c o n c e p t u a l i z i n g t h e p r o j e c t, b u t a r e n o t r e q u i r e d . T h e p r o p o s e r s ho u l d s e e k t o d e m o n s t r a t e k n o w l e d g e an d a f u l l u n d e r s t a n d i n g o f t h e p r o j e c t ’ s e x c e p t i o n a l p o t e n t i a l s a n d c o m p et i t i v e a d v a n t a g e s . T h e D e v e l o p m e n t T e a m m a y a l s o u s e t h i s s e c t i o n t o de s c r i b e i t s s p e c i f i c r e a s o n s , m o t i v a t i o n s , a n d g o a l s f o r u n d e r t a k i n g t h e p r o j e c t . Sp e c i f i c a l l y a d d r e s s p r o g r a m m i n g a s i t r e l a t e s t o m e e t i n g a n d e v e n t s p a c e ( h o w m u c h s p a c e f o r t h e n u m b e r o f g u e s t r o o m s , t h e s i z e o f l a r g e s t me e t i n g r o o m ) . Gi v e n t h e s i t e s i z e o f 4 . 7 - a c r e s , c o m m e n t o n t h e o p t i m a l l o c a t i o n a n d o r i e n t a t i o n o f t h e p r o p o s e d i m p r o v e m e n t s o n t h e s i t e . An y a d d i t i o n a l i n f o r m a t i o n y o u f e e l w o u l d b e h e l p f u l i n t h e e v a l u a t i o n o f y o u r f i r m ’ s q u a l i f i c a t i o n s . Co n t e n t a n d O r g a n i z a t i o n o f S u b m i t t a l s Re s p o n d e n t s t o t h i s R F Q a r e r e q u e s t e d t o s u p p l y a l l t h e i n f o r m a t i o n d e s c r i b e d h e r e i n , i n a c o m p l e t e y e t c o n c i s e f o r m a t . T h e C i t y o f S o u t h S a n F r a n c i s c o ex p e c t s s u b m i t t a l s t o p r o v i d e e n o u g h i n f o r m a t i o n t o a l l o w s t a f f a n d o t h e r ad v i s o r s t o e v a l u a t e a n d r a n k q u a l i f i c a t i o n s o f t h e D e v e l o p m e n t T e a m s . We l o o k f o r w a r d t o w o r k i n g w i t h y o u o n t h i s e x c i t i n g o p p o r t u n i t y . HO T E L D E V E L O P M E N T O P P O R T U N I T Y | SOUTH SAN FRANCISCO, CA | 31 DI S C L A I M E R Di s c l a i m e r © 2 0 1 7 C B R E , I n c . T h e i n f o r m a t i o n c o n t a i n e d i n t h i s d o c u m e n t h a s b e e n o b t a in e d f r o m s o u r c e s b e l i e v e d r e l i a b l e . W h i l e C B R E , I n c . d o e s n o t d o u b t i t s ac c u r a c y , C B R E , I n c . h a s n o t v e r i f i e d i t a n d m a k e s n o g u a r a n t e e , w a r r a n t y o r r e p r e s e n t a t i o n a b o u t i t . I t i s y o u r r e s p o n s i b i l i t y t o i n d e p e n d e n t l y c o n f irmits ac c u r a c y a n d c o m p l e t e n e s s . A n y p r o j e c t i o n s , o p i ni o n s , a s s u m p t i o n s o r e s t i m a t e s u s e d a r e f o r e x a m pl e o n l y a n d d o n o t r e p r e s e n t t h e c u r r e n t o r f u t u r e pe r f o r m a n c e o f t h e p r o p e r t y . T h e v a l u e o f t h i s t r a n s a c t i o n t o y o u d e p e n d s o n ta x a n d o t h e r f a c t o r s , w h i c h s h o u l d b e e v a l u a t e d b y y o u r t a x , f i n a n c i a l a n d le g a l a d v i s o r s . Y o u a n d y o u r a d v i s o r s s h o u l d c o n d u c t a c a r e f u l , i n d e p e n d e n t i n v e s t i g a t i o n o f t h e p r o p e r t y t o d e t e r m i n e t o y o u r s a t i s f a c t i o n t h e s u i t ability of t h e p r o p e r t y f o r y o u r n e e d s . Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 1 I. EXECUTIVE SUMMARY AJ Capital Partners (“AJ Capital”) is pleased to present this proposal to be the developer of the Oyster Point Hotel & Conference Center (“Oyster Point Hotel” or “Hotel”). Oyster Point Hotel will be more than just a hotel and more than just a conference center… it will be a destination. Serving the needs of the City of South San Francisco, the Biotech Cluster, and the traveling public, Oyster Point Hotel will offer an unparalleled hospitality experience through design and extensive food & beverage offerings inspired by and tailored to express the industrial history and culture of South San Francisco. The Oyster Point Hotel will boast unobstructed views of the Bay, Downtown San Francisco, and the San Bruno mountains. The Hotel will be an integral component of the Oyster Point Redevelopment Project establishing a gateway to the biotech cluster, and creating a collision space where some of the world’s brightest individuals will percolate tomorrow’s medical breakthroughs. The lobby experience will be communal and thought provoking, whether catching up over a cup of coffee in the cafe or making new friends over a game of bocce ball in the game room, visit ors will have a wide range of experiences to choose from. Guests will also be able to take in breathtaking views of the bay, the city and the mountains while sipping craft cocktails or local beers at our rooftop bar and pool. Oyster Point Hotel will be a multi-dimensional hub of activity that concentrates talent, innovation and creativity by providing the winning combination of high-tech meeting and conference space, a bespoke hotel, a forward-thinking food and beverage program and collaborative common areas. Development Team Sponsor / Developer – AJ Capital Partners Brand – Independent Architect – Solomon Cordwell Buenz Hotel Manager – Benchmark Developer Qualifications & Experience AJ Capital is a dynamic organization of value-add hospitality and real estate developers and investors with the collective goal to acquire, reposition, and develop highly sought after hotels, restaurants and destinations in major urban and university-oriented and iconic resort markets. We have the experience and demonstrated track record needed to succeed. Since inception in Q4 2008, we have successfully deployed over $1.5 billion of capital across a variety of projects. Below is a sampling of some of our more recent projects: Thompson Chicago - $120mm renovation and repositioning in Chicago’s Gold Coast neighborhood SoHo House Chicago - $66mm adaptive-reuse project in Chicago’s bustling West Loop Chicago Athletic Association - $150mm adaptive-reuse project of the historic men’s athletic club on Chicago’s Michigan Ave Graduate Oxford - $32mm ground-up hotel development near Ole Miss in Oxford, Mississippi Graduate Ann Arbor - $83mm renovation and repositioning of the former Campus Inn near University of Michigan in Ann Arbor, MI WeWork West Loop - $27mm adaptive-reuse project of a former meatpacking warehouse into creative, flex office space in Chicago’s West Loop Thompson Nashville - $80mm ground-up hotel development in Nashville’s Gulch District Pontchartrain Hotel - $33mm hotel rehabilitation in New Orleans’ Garden District Graduate Berkeley - A $50mm renovation of the historic Hotel Durant located in the heart of UC Berkeley’s campus Calistoga Ranch - Purchased the iconic resort in Napa Valley in 2013, improved operations and tripled the NOI in just four years Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 2 II. PROGRAMMING OVERVIEW Vision Statement All of our hotels offer the requisite creature comforts – a plush bed, spacious bathroom, efficient well-lit workspaces, fast, free Wi-Fi, 42” flat screen televisions, personal refrigerators, etc., but the similarities stop there. When waking up in the Oyster Point Hotel, we want the guest to know definitively that he or she is in South San Francisco, visiting the beautiful Bay Area. We pride ourselves on the subtleties of place-making, keeping within the traditions and ethos of our host community and using interior design and art to tell the stories of that community’s history and culture . For example: o At Chicago Athletic Association, most of the hotel’s history and charm was preserved through extensive rehabilitation. Elemen ts such as the flooring from the fencing room was repurposed for the elevator, and fireplaces were restored to reveal the charm an d elegance of the iconic athletic club. o At the Pontchartrain Hotel in New Orleans, we repurposed a luxury hotel from the mid-1900’s that hosted luminaries as diverse as Frank Sinatra, Rita Hayworth, and presidents Gerald Ford and George H. Bush. Throughout the redevelopment process, we maintained the hotel’s clubby comfort-meets- sophisticated elegant carriage and a design scheme that mirrors the city’s tropically exotic indigenous color schemes. o At the Graduate Athens, the vast majority of the hotel is decorated in vintage art sourced within a 50-mile radius around the property; the property offers five suites with chalkboard paint feature walls that the CCO is now commissioning local artists to change on an ongoin g basis. o At the Graduate Oxford, AJ Capital’s in-house Chief Creative Officer (“CCO”) commissioned large format paintings and mixed media installations from local artists, Charlie Buckley and William Goodman; the hotel is also boasts the photography archive of Fat Possum Records, a loca l blues and rock record label that has represented a myriad of artists including The Black Keys. Oyster Point Hotel’s guestrooms will embrace a markedly different aesthetic than those in Chicago Athletic Association, Pontchartrain, Athens, and Oxford. The Hotel will be distinct striking an appropriate balance between approachability and sophistication. Key features of Oyster Point Hotel will include: South San Francisco Boutique Hotel - The Oyster Point Hotel will serve as a gathering place for the community, local and visiting; a noticeable departure from the impersonal and imposing marble-clad lobbies found in big-box convention hotels, the Hotel lobby will exude warmth and encourage lingering; a mix of comfy seating and communal workspaces, complimentary high-speed Wi-Fi and ample power outlets will foster congregation and collaboration. Extensive Food & Beverage Offerings – The Oyster Point Hotel will offer a wide-range of food & beverage options that both cater to hotel guests and attract members of the South San Francisco community. There will be a total of four outlets ranging from a lobby café to a rooftop lounge. Communal Beer Hall & Game Room – The Hotel will feature an indoor/outdoor Beer Hall offering a variety of local beers. Additionally, the beer hall will be connected to a game room boasting a mix of arcade games, foosball, air hockey, ping pong tables, and a bocce ball court. Conference Center – The Hotel will offer 30,000 square feet of meeting & event space that will cater to the needs of the Biotech Cluster and broader community. This includes a 12,000 square foot divisible grand ballroom, 5,000 square foot divisible junior ballroom, and a variety of breakout rooms and pre-function space. Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 3 Detailed Program Overview Hotel Name: Oyster Bay Hotel & Conference Center Keys: 250 Number of Floors: 8 Total Hotel Square Footage: 225,000 square feet Food & Beverage Outlets: 4 - a Lobby Café; a Beer Hall and Game Room; a Full-Service Restaurant; and a Rooftop Lounge Meeting Space: 30,000 square feet Parking Spaces: 400 Amenities: Approximately 2,500 square foot Fitness Center; approximately 6,000 square foot indoor / outdoor Rooftop Bar & Lounge with infinity pool Guestroom Mix Double Queens – 100 Kings – 100 Junior Suites – 30 Suites - 20 Ratio of Suites – 20% Food & Beverage Overview Outlet 1 – Lobby Café o Menu Offerings: Coffee, Juices, Breakfast Items, Grab and Go o Service Hours: 6:00a – 7:00p daily Outlet 2 – Beer Hall and Game Room o Menu Offerings: Extensive Beer Selection, Full Bar with Light Bites and Shared Plates o Service Hours: 12:00p – 12:00a (midnight), extended hours on weekends Outlet 3 – Full-Service Restaurant o Menu Offerings: Full Bar with full lunch and dinner menu, plus brunch on Saturday and Sunday o Service Hours: 11:00a – 12:00a (midnight), extended hours on weekends Outlet 4 – Rooftop Lounge and Pool o Menu Offerings: Full Bar with Light Bites and Shared Plates o Service Hours: 4:00p – 12:00a (midnight), extended hours on weekends Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 4 Conference Center Overview Overall o 30,000 square feet of total meeting and event space across two floors First Level o 12,000 square foot divisible grand ballroom o 5,000 square foot divisible junior ballroom w/ connected outdoor plaza space o 8,000 square feet of pre-function space Second Level o 5,000 square feet of breakout rooms, spread across 5 rooms (divisible to 6) All ballrooms and breakout rooms will feature state-of-the-art audio/visual systems Location and Orientation of Improvements The improvements on site will be positioned to offer striking visibility and a dramatic sense of arrival off Marina Boulevard. Guestrooms, meeting spaces and food and beverage outlets will be oriented to maximize views of the marina, bay and downtown skyline. Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 5 III. OPERATIONS AND MANAGEMENT PLAN The Oyster Point Hotel will be positioned as a unique, vibrant, high-quality, full service hotel and conference center serving all Oyster Point and the South San Francisco constituents. The emphasis of the project will be creating an outstanding physical footprint, as well as providing highly per sonalized and individualized guest service, exciting food and beverage offerings and high quality amenities and accommodations. Our mission will be to appeal to all traditional hotel and meeting market segments: business and leisure transient customers, group business, associations, executive level meetings, etc., as well as to the Biotech Cluster and South San Francisco communities. The Hotel’s design, décor and grounds will intertwine with the Oyster Point Development Project and become an important gathering place for the growing community and workforce. We envision the Hotel serving as the “living room” for visiting guests of local companies and the meeting spaces and food & beverage outlets serving as the “meeting room”, where businesses will gather. Through our extensive experience with both small and large communities across the country, we know how to relate and respond to the specific needs of all constituents. We feel strongly that leveraging the young and collaborative South San Francisco culture in creating an upper upscale hotel will significantly set our Hotel apart from the competition. We believe this is the best approach based on our proven expertise and ability to win in similar markets, with similar products, and without the brand confusion, scale concerns and potential conflicts, costs and encumbrances affiliated with utilizing a chain brand. As part of our strategy to clearly differentiate the Oyster Point Hotel from local and regional competitors, we will create and promote guest experiences that extend well beyond the Hotel’s facilities to include the unique ability to take advantage of Oyster Point Development’s phenomenal resources. From individual client communications to broad marketing campaigns, we will tell a story that no other hotel in the market can replicate. With a location adjacent to the Biotech Cluster, and by providing a highly personalized guest service experience, the Oyster Point Hotel & Conference Center will be the first choice for individual business and leisure travelers visiting the area. The Hotel will forge partnerships and offer spe cific programming geared to the Hotel’s top customer segments. Oyster Point Hotel will be a vital component of the fabric of the community with spaces for planned and impromptu gatherings, meetings and collaborations. With a lively rooftop bar, beer hall and game room, great restaurant and special events geared toward local businesses, the Hotel will quickly become a vibrant, focal point of the entire community. Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 6 Overview of the Proposed Operator Founded in 1980, Benchmark is a recognized global leader in the development, management and marketing of resorts, hotels and conference centers. The company’s two distinctive portfolios of hotel and resort properties, Benchmark Resorts & Hotels® and the Ge mstone Collection®, represent the finest in guest-dedicated hospitality in unique destinations across the United States, Caribbean and Japan. As a founding member of the International Association of C onference Centers (“IACC”), Benchmark Conference Centers®, our conference center brand, maintains the highest standards for certification in meeting excellence. Benchmark’s portfolio consists of 55 open and operating unique destinations across the United States, Canada, Caribbean and Japan, as well as 11 additi onal projects currently under development. Benchmark’s capabilities and services cover all phases of a project, from consulting on market demand and feasibility analysi s, facilities construction and design, complete pre-opening marketing and technical services and the profitable operational marketing and management of the property. We have developed more than 60 new -build development projects in the company’s history and we employ key personnel who have been involved in many more new -build development projects prior to their tenure with Benchmark. Therefore, we are well versed in the planning, designing, constructing and pre -opening of new-build projects, as well as the creation and launching of new, unique hotel brands. Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 7 IV. LEASE TERMS Key Ground Lease Terms o Term – 99 years o Commencement Date – Upon receiving a certificate of occupancy o Base Rent – Greater of (i) percentage rent or (ii) minimum rent Percentage Rent: 2.0% of rooms revenue + 1.0% of F&B revenue Minimum Rent (years 1-20): $500,000 o Incentive Rent – 15.0% of cash flow after debt service in excess of a 9.0% annual return on equity Project Risks and Considerations Unknown Site Topography and Implications on Hard Costs - Without evaluating a geotechnical or environmental report, it is difficult to predict site preparation and excavation costs. The hard costs presented above are best estimates on the cost of construction made with limited informa tion. Actual costs may be slightly higher or lower than the numbers presented above. Increased costs may risk project feasibility. Significant Amount of Public and Conference Space Driving Up Costs - In general, public and conference center space is more expensive to fit out compared to hotel keys. Based on the city’s desired programming, the developer warns of the risk of potentially high costs that may not generate a high enough return-on-investment via operating cash flow to make the project feasible and financeable. Scarcity of Debt Capital for Ground-Up Hotel Projects - Lenders are becoming increasingly risk-averse when it comes to ground-up hotel projects. Leverage as a percent of total costs is expected to fall in the range of 50-55%. The cost of debt capital for ground-up hotels is also expected to be significantly higher than that provided for stabilized hotel product. AJ Capital is underwriting a 1-month LIBOR plus 600 basis points cost of debt. Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 8 V. DEVELOPER OVERVIEW AJ Capital was founded in 2008 and is headquartered in Chicago. We are a dynamic organization of value-add hospitality and real estate investors with the collective goal to acquire, reposition, and develop highly sought after hotels in major urban and university-oriented markets and iconic resort destinations. While many firms focus on year-over-year RevPAR growth, AJ Capital’s disciplined approach is squarely focused on maximizing profitability through long -term value creation and operational efficiencies, which is significantly more meaningful to well-studied investors and lenders. AJ Capital operates as a full-service, real estate development and investment management firm with assets throughout the United States, and the Caribbean. As a firm, AJ Capital has owned and managed a diverse range of hotel assets from the 39 -key Isle de France in St. Barths to the 184-key Hotel Lincoln in Chicago. Current holdings in AJ’s portfolio include the 247-key Thompson Hotel Chicago and the 241-key Chicago Athletic Association. AJ Capital was also the co-developer of WeWork Fulton Market, the re-opening of Maxim’s Chicago restaurant, and the recently completed Soho House Chicago. SoHo House Chicago is the latest SoHo House offering in a portfolio of private member clubs around the world, featuring luxurious hotel accommodations and critically acclaime d food & beverage. AJ Capital has identified inefficiencies in college and university markets and became dedicated to creating a portfolio of we ll-located, dynamic lifestyle hotels in these towns. Graduate Hotels, AJ Capital’s in-house, purpose-designed brand, delivers a fusion of unique style and approachable hospitality, making it “the place to be” and “the place to stay” in each of these communities. Through the creation of the portfolio, AJ Capital has once again demonstrated it s ability to develop one-of-a-kind hotels that draw on the unique neighborhoods in which they are located. Graduate Hotels launched in August 2014 and currently has 808 key s in operation and an additional 1,188 keys in various stages of renovation. AJ Capital plans to have 20 Graduate Hotels open and operating by the end of 2019. AJ Capital has assembled a highly accomplished team of over 35 professionals with diverse and multidisciplinary backgrounds, spanning investment management, real estate development, design, construction, and hospitality operations. Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 9 Select Bios Ben Weprin – Chief Executive Officer Ben Weprin is the founding Principal and CEO of AJ Capital. Since founding AJ Capital in the fourth quarter of 2008, Mr. Wepr in has successfully led the company through the acquisition of over $1.5 billion in real estate, the development of distinctive projects such as the Chicago Athletic Association, Soho House Chicago, and Pontchartrain Hotel in New Orleans, and creation of the Graduate Hotels® brand and real estate platform. Mr. Weprin is a graduate of the University of Tennessee and holds an M.B.A from Northwestern University’s Kellogg School of Management. Eric Hassberger – Chief Operating Officer/Head of Asset Management Mr. Hassberger is a Principal and COO for AJ Capital focusing on the strategic direction future growth of Graduate Hotels ®. Prior to joining AJ Capital, he was Senior Vice President Asset Management & Acquisitions at Strategic Hotels & Resorts. Mr. Hassberger is a graduate of the Honors College a t Michigan State University and holds an M.B.A. from the University of Chicago Booth School of Business. Andrew Alford – Chief Creative Officer Mr. Alford is Chief Creative Officer for AJ Capital and Graduate Hotels ®. Mr. Alford began his hospitality design career as the Style Manager for Kimpton Hotels and Restaurants. After his tenure with Kimpton, he launched his own firm, Dirty Lines Design, where projects have ranged from luxury resorts to eccentric neighborhood hotels to dive bars on the Pacific Coast Highway. Mr. Alford received his Bachelor of English from the University of Akron. Julie Saunders – Chief Marketing Officer Ms. Saunders is the Chief Marketing Officer of AJ Capital and Graduate Hotels® leading marketing, branding and public relations for the collection. Ms. Saunders oversees the brand’s omnichannel strategy, as well as brand messaging across all guest touchpoints. Prior to joining AJ Capital, Ms. Saunders served as Director of Marketing at Saks Fifth Avenue. Ms. Saunders is a graduate of Pennsylvania State University and holds a M.A. in Art History from Christie’s Ne w York. Timothy Ryan – SVP Acquisitions As Senior Vice President of Acquisitions, Mr. Ryan is focused on growing the Graduate Hotels portfolio through the identification, negotiation and acquisition of strategic development sites and buildings that present unique opportunities for adaptive reuse. Prior to joining AJ Capital Partners, M r. Ryan worked with Transwestern Development Company in Austin, Texas where he led the development of multifamily, office, mixed -use and industrial projects in the Southwest markets of Austin, San Antonio, Denver, Phoenix and San Diego. Mr. Ryan has also worked with USAA Real Estate, JMI Realty and CBRE. His experience includes ground-up development, acquisitions, debt and equity finance, project management and portfolio strategy Mr. Ryan is a graduate of The University of San Diego, and earned his Master of Business Administration from The McCombs School of Business at The University of Texas at Austin. Cooper Manning – Head of Investor Relations Mr. Manning is a Principal and Senior Managing Director of Investor Relations, focusing primarily on new business development and managing investor relationships from AJ Capital’s New Orleans office. Previously, Mr. Manning worked in institutional equity sales with Howard Weil in New Orleans specializing in the oil and gas business. He was involved in the sale of Howard Weil to Scotia Bank in 2012 and remained on through the transition as a partner. He is also the host of “The Manning Hour (minus 58 minutes)” on Fox Sports. Mr. Manning graduated from the University of Mississippi. Oyster Point Hotel & Conference Center AJ Capital Partners RFP Response March 2017 10 Justin Patwin – Head of Development Mr. Patwin is Vice President of Development for AJ Capital and Graduate Hotels. He began his career as an architect before sh ifting his focus to investment and development. His development experience includes multi-family adaptive reuse, retail and large scale hospitality projects in the U.S. and Asia. Mr. Patwin received his Bachelor of Architecture from Auburn University and an M.B.A. from Chicago's Booth School of Business. David Rochefort – VP, Acquisitions & Asset Management Mr. Rochefort is Vice President of Acquisitions and Asset Management and is involved in overseeing AJ Capital and Graduate Hotels® portfolio of properties, as well as evaluating real estate acquisition and development opportunities. Prior to joining AJ Capital, Mr. Rochefort worked in the as set management group at Pebblebrook Hotel Trust. Mr. Rochefort graduated with a minor in real estate finance from the Cornell University Hotel School. Sample of Past Projects & Experience AJ Capital has significant experience with acquiring, renovating, developing, and asset managing hospitality assets with unique needs in diverse markets across the country. The following are just some of our latest notable projects: Thompson Chicago: Through a $120mm renovation, repositioned a once tarnished hotel in Chicago’s iconic gold coast, into a top performing urba n boutique. Soho House Chicago: A $66mm adaptive-reuse project of a 1920’s era manufacturing building into a boutique hotel with construction completed on schedule and under budget. Chicago Athletic Association: A $150mm rehabilitation and adaptive re-use of the iconic 1893-vintage former members club on Michigan Avenue. Graduate Oxford: A $32mm ground-up development just steps from Oxford’s storied and charming “Square” next to Ole Miss, featuring The Coop, a rooftop bar named after alumni and eldest of the Manning brothers, Cooper Manning. Graduate Ann Arbor: An $83mm acquisition and renovation of the 204-key Dahlmann Campus Inn, adjacent to the iconic University of Michigan campus. The hotel features the Allen Rumsey Supper Club, which is named after the founders of Ann Arbor. WeWork West Loop: A $27mm adaptive-reuse project of a former meatpacking warehouse into creative, flex office space in Chicago’s West Loop. Thompson Nashville: An $80mm ground-up development of the 224-key Thompson Nashville hotel in the Gulch District. Pontchartrain Hotel: A $33mm restoration of a historic full-service hotel with four restaurant bar options located in the Garden District of New Orleans. Graduate Berkeley: A $50mm renovation of the historic Hotel Durant located in the heart of UC Berkeley’s campus. Calistoga Ranch: Purchased the iconic resort in Napa Valley in 2013, improving operations and tripling the bottom line in just four years. AJ CAPITAL PARTNERS CHICAGO ATHLETIC ASSOCIATION WE WERE UPSTARTS. WE ARE STILL THE CHALLENGERS. 3 CALISTOGA RANCH WE DARE TO DREAM. AND CREATE. 5 WE SEE VALUE WHERE OTHERS SEE DECAY. CHICAGO ATHLETIC ASSOCIATION 76 SOHO HOUSE CHICAGO WE CONQUER SPACE AND GIVE IT BACK MEANING. 98 MALLIOUHANA RESORT & SPA WE REJUVENATE PLACES THAT OTHERS PASS BY. MALLIOUHANA RESORT & SPA 10 11 THE ONLY THING GREATER THAN OUR PASSION IS OUR POSSIBILITY GRADUATE TEMPE 1312 WE ARE AJ CAPITAL PARTNERS. We are counter-culture investors who acquire, design, and develop transformative real-estate. We began our adventurous journey in 2008 in the midst of the financial crisis. With decades of combined experience in the hospi- tality space, we saw an opening few others would dream of — and we pounced. While the world saw doom and gloom, we saw opportunity. Our bets were placed on the luxury segment. Soon we owned our first luxury boutique hotel — the storied Isle de France on St Barth. The rest is, as they say, history. In our own hometown of Chicago, when we noticed the West Loop neighborhood on the rise but under-served, we developed a unique urban club and hotel, Soho House — a space we specially prepared for members and guest to feel comfortable, connected, and inspired. When we noticed an unappreciated landmark with 130 years of history — the Chicago Athletic Association — whose story wasn’t being told, we set our sights on carefully restoring it while enhancing it to its full potential. And when we visited unique college towns and noticed that the big box hotels and run-down motels had a lock on the market — we saw an opportunity to inspire by delivering an experience worthy of the storied universities that people have come to visit. While each of the cherished projects are significant and meaningful themselves, these are just the beginning of our story. What stirs us, what drives us, is what we and our partners will accomplish next. “ WE ARE COUNTER-CULTURE INVESTORS WHO ACQUIRE, DESIGN, AND DEVELOP TRANSFORMATIVE REAL-ESTATE.” 1514 PONTCHARTRAIN HOTEL THE WORLD IS FILLED WITH SPACES BUT LARGELY DEVOID OF PLACES Our senses are assaulted by spaces that either lack inspiration or where their original intent has been diluted through time. And as a culture, we still have much to learn from our past mistakes. We replaced strip malls with out- door malls that present repeating cookie-cutter stores; and our 1950s suburbs grew in scale as McMansions— but didn’t gain any more character or meaning. Likewise, placid sameness endures in the hotel space with chains that differentiate on the surface, but all serve up the same stale experiences. The world doesn’t need another cookie-cutter venue delivered by disconnected real estate developers. What’s missing from the conversation is an understanding of who we are as a species. Human beings wither away without social interaction. We crave authenticity and connection. We define our- selves in relation to each other—context is everything. Our firm belief is that if presented with the opportunity to partake in an experience that has been crafted with compassionate consideration the public will choose this over the alternatives time and again. We build not for tourists but for travelers. The dreamers and the seekers, the romantics, the lovers of life. To boil things down: we seek out and exploit lackluster experiences and inefficiencies in micro-markets to deliver experiences that far exceed our slow-moving competition and that bests expectations. 16 17 EVERYTHING WE DO TELLS A STORY. WE EMBRACE: BOUNDLESS OPTIMISM We want to make the world a better place by making better places in the world. And no place is too small to make a difference—a hotel lobby, if designed well, can transform and rejuvenate an entire neighborhood. Design is a proven cure. The only thing we are limited by is our imagination. THE PURSUIT OF EXCEPTIONALISM Rich experiences are the only ones worth pursuing. And we pursue these with tenacious determination, often despite the odds. We seek to create places that relax and stir—where people are more deeply connected with themselves and others. COMPOUNDING RETURNS Each project we take on is more than the sum of its parts. And when we deliver something that matters, the returns follow—both for people and our bottom line. GUARANTEED EXECUTION Execution is not a goal or a promise. For us it is a certainty. We close deals that we initiate and develop what we set out to do. We are both starters and closers. CULTURE OVER FASHION We celebrate timeless style and consider history a good lens to filter and highlight that which carries enduring significance. We embrace the contemporary but reject trends of fashion or markets. Our intent is to create lasting value and we aspire to inspire. COMMUNITY-BASED DEVELOPMENT We develop spaces and experiences that are at home within their environments and communities. Capture locality and travelers will follow. CHICAGO ATHLETIC ASSOCIATION 1918 REAL ESTATE = OUR TANGIBLE IMPACT AND LEGACY. Where others see bricks, mortar and square feet we see a frame for storytelling, passions, and shared experiences. As stewards of these places, it is our job to allow each of them to sing and to treat each person who enters as a member of our family. We create true, lasting value when we honor the context, people and stories of a location. TRANSFORMATIVE HOSPITALITY AJ CAPITAL IS: We believe in the basic goodness and decency in people and we think they are deserving of the best hospitality and consideration possible. With steadfast conviction we dare to dream big, work hard, and to stick it through to break new ground. SOHO HOUSE CHICAGO2021 Auberge Resorts manages a collection of exceptional hotels, resorts and private clubs, all of which embody a unique sense of place, while sharing Auberge’s signature sense of understated luxury, timeless sophistication, and warm, gracious service. AUBERGE RESORTS 2008 The 184 room Hotel Lincoln was bought as a shuttered Days Inn and successfully renovated and repositioned, opening to the public in March 2012. Situated in the beautiful Lincoln Park neighborhood of Chicago, the Hotel offers a window into the most dynamic part of Chicago’s North Side and features artfully appointed rooms, the award winning Perennial Virant Restaurant, Elaine’s Coffee Shop and the J Parker Rooftop bar. Like the neighborhood, the hotel is historic yet fresh, fun though eccentric and active but relaxed. It’s where the energy of urban life meets 1,200 green acres and Lake Michigan. HOTEL LINCOLN CHICAGO — 2010 22 23 OPERATING PORTFOLIO Located in the heart of Chicago’s Gold Coast, Thompson Chicago debuted in the Fall of 2013 after a complete renovation of the former Sutton Place Hotel. This luxury, 247-room lifestyle hotel features bold interior architecture by acclaimed British designer Tara Bernerd and a signature restaurant, bar and private dining experience by the innovative Chicago restaurateurs One Off Hospitality (Blackbird, Avec, Publican). THOMPSON HOTEL CHICAGO, IL — 2011 Soho House Chicago is a prominent hotel and private club, located in a historic five-story industrial in Chicago’s West Loop neighborhood. Originally built in 1908 as the Chicago Belting Factory and most recently functioning as a rubber seal manufacturer, the loft-style building has large, efficient floor plates and is solidly built of concrete and brick. Soho House combines a hotel and private social club with exquisite food and dining options, including 40 guest rooms, two public restaurants, a full floor fitness center, spa, 40 seat screening room and a club floor available only to guests and members. The building features an enclosed rooftop bar and an outdoor deck with an 80 foot swimming pool. SOHO HOUSE CHICAGO, IL — 2012 24 25 The renowned Calistoga Ranch lies tucked away into a private canyon in Upper Napa Valley on a 157-acre site marked by ancient oaks, majestic hills, a rock-hewn stream and a private lake. The 50-room luxury resort captures the rich culture of food, wine and nature inherent to the region. Designed with relaxation in mind, lodges offer visitors the ultimate experience with a collection of indoor and outdoor spaces that allow guests to fully experience the pristine setting. CALISTOGA RANCH 2013 Located on the Island of Anguilla, British West Indies, Malliouhana is one of the original gems of the Caribbean. The Hotel is a world- renowned, 44-key hotel set within 20 acres of prime beachfront land (with two private beaches) located on Meads Bay in Anguilla, one of the world’s finest natural beaches in one of the most charming and exclusive islands of the Caribbean. The Hotel consists of a number of buildings including private villas, two restaurants and bars, a world-class spa and various sports amenities. AJ Capital successfully sourced the off- market acquisition, completed the extensive renovation in a very challenging Caribbean locale, launched the Hotel to wide acclaim, and continues to actively asset manage all aspects of the resort. MALLIOUHANA RESORT & SPA ANGUILLA, BWI — 2013 26 27 Launched in 2014, Graduate Hotels is a new, boutique hotel collection targeting dynamic university towns across America. Graduate Hotels provide students, parents, locals, visitors and professors alike a respite from the ordinary. Inspired by community enthusiasm surrounding Chicago’s highly successful Hotel Lincoln, AJ Capital embarked on a road trip – of sorts — traveling the nation’s leading college and university markets. What we found surprised us: College towns are awash in enthusiasm – for sports, restaurants, bars, museums, and boutiques. Hotels, however, left much to be desired. GRADUATE HOTELS 2014 Each Graduate Hotel is part of a well-curated, thoughtfully crafted collection of hotels celebrating and commemorating the optimistic energy of its community while offering an extended retreat to places that played host to some of the best days of our lives. Current locations include Oxford, MS; Charlottsville, VA; Madison, WI; Tempe, AZ; and Athens, GA. Opening in 2016, Ann Arbor, MI; Berkeley, CA; Durham, NC; Lincoln, NE; and Richmond, VA. By 2019, Graduate Hotels will operate 20 hotels across the country. 28 29 Located in the West Loop, one of Chicago’s most desirable and rapidly growing areas, this 89,916 square foot former meat packing facility is being redeveloped into creative co-working office space to be occupied and managed by industry leading WeWork based out of New York. WeWork West Loop Chicago is anchored between Fulton Market and Randolph St., two thoroughfares that continue to attract the world’s top restaurateurs and businesses including the Chicago headquarters for neighboring, Google. WEWORK WEST LOOP CHICAGO, IL — 2013 Situated in the heart of one of Nashville’s most dynamic neighborhoods, Thompson Nashville in The Gulch will feature a signature ground floor restaurant, boutique retail space, and 224 guest rooms and suites. Twelve stories above the intersection of 11th and 12th Avenues will be a distinct indoor-outdoor rooftop venue set against the backdrop of dramatic, panoramic views from Downtown to SoBro. Thompson Nashville will be opening in 2016. THOMPSON NASHVILLE 2014 30 31 An architectural gem located on Michigan Avenue, directly across from Millennium Park, the Chicago Athletic Association (“CAA”) is the perfect marriage of irreplaceable location and distinctive character. The building enjoys uninterrupted views of the park and lake while at the same time being prominently visible and accessible to visitors of Chicago’s top attractions. A former club for Chicago’s elite, the reborn CAA will now contain over 225k square feet of carefully and dynamically programmed space designed to be both destination for the educated traveler and playground for inquisitive Chicagoans. Architecturally, the CAA is flush with ornate spaces. Emotionally, it’s an embarrassment of riches with 130+ years of stories just waiting to be told. The landmark property, originally constructed in 1892, is set to open in the summer of 2015 and will provide an experience heightened by unparalleled food and beverage options. CHICAGO ATHLETIC ASSOCIATION CHICAGO, IL — 2012 This 1927 gothic relic is as well-known for its illustrious past and distinguished guests as its cultural significance within the Lower Garden District. The hotel has been thoughtfully restored to maintain a historic feel while imparting a sense of modern comfort and style through- out the 106 rooms and suites that reflect the unique personality of today’s New Orleans and the Garden District. Lead by John Besh, the locally beloved and nationally-acclaimed Besh Restaurant Group will operate The Pontchartrain’s four distinguished food and beverage outlets – the re-imagined Caribbean Room, Bayou Bar and Silver Whistle Café, along with the hotel’s new roof- top bar, Hot Tin boasting unparalleled views of the New Orleans skyline. THE PONTCHARTRAIN 2014 32 33 Set in the French West Indies amidst enchanting tropical gardens overlooking the sea, each of the 40 rooms, suites and villas is individually decorated with refined European heritage. The hotel heralds a first class poolside restaurant, a beachfront restaurant, a high-end boutique, a first class spa and fitness room and two main swimming pools. This extraordinary asset was sold to strategic buyer, LVMH Group, becoming the jewel in their illustrious portfolio. HOTEL SAINT BARTH ISLE DE FRANCE — 2009 Known as “One of the Grand Dames” of the legendary Art Deco style architecture, this 105-room hotel has a prime beachfront location on Collins Avenue in South Beach. The outdoor restaurant and beach oasis further enrich the Raleigh Pool, long considered the best pool in America. THE RALEIGH HOTEL MIAMI, FL — 2009 34 35 REALIZED INVESTMENTS PROVEN APPROACH. CONSISTENT RESULTS. WE GET THERE OUR WAY. CONTRARIAN MINDSET • Invest and develop when others show hesitation • Find rough gems to avoid the herd and competitive bidding • Strategically pursue new platform opportunities 01 02 06 07 05 03 04 RIGOROUS EVALUATION • Maintain disciplined decision making and institutional quality practices • Conduct exhaustive due diligence • Cultivate a vast network of experts and advisors CREATIVE EXECUTION • Create alternative forms of liquidity by partnering with distressed owners • Capitalize on opportunities to purchase notes • Purchase at deep discounts to replacement costs STRATEGIC DEVELOPMENT • Align architecture, design, and engineering teams with their strengths • Organically develop programs to match local market needs • Maintain aggressive speed to market while mitigating investor risk BRAND BUILDING • Creatively and comprehensively reposition, rebrand, and renovate • Pursue strategic expansion opportunities • Uncover value by finding alternative uses for underutilized spaces • Selectively execute adjacent acquisitions AGGRESSIVE MANAGEMENT • Actively asset-manage investments through frequent and detailed reviews and adjustments • Restructure existing hotel agreements and other contracts that limit the customer experience • Utilize benefits of scale across the AJCP platform— sales, marketing, purchasing and technology STRATEGIC MONETIZATION • Constantly monitor and evaluate of exit alternatives • Determine hold period determined for each investment to avoid forced sales (avg. 4-6 years) 36 37 OUR TRACK RECORD 2008 2010 2014 AJCP is founded by Ben Weprin Auberge Resorts Investment Isle De France – Saint Barth Investment The Raleigh – Miami Investment 2011 2013 Thompson – Chicago Investment The Raleigh – Miami Exit 2009 2015 2012 Soho House – Chicago Investment Chicago Athletic Association Investment Malliouhana – Anguilla Investment Isle De France – Saint Barth Exit WeWork – Chicago Investment Graduate Hotels® Established Hotel Lincoln – Chicago Recapitalization Calistoga Ranch – Napa Valley Investment Pontchartrain Hotel – New Orleans Investment Graduate Tempe Graduate Oxford Graduate Athens Graduate Madison Graduate Charlottesville Investment Thompson – Nashville Investment Graduate Richmond Graduate Durham Graduate Lincoln Graduate Berkeley Graduate Ann Arbor Investment Hotel Lincoln – Chicago Investment 2016 Hotel Lincoln – Chicago Exit Auberge Resorts Exit Soho House – Chicago Pending Exit 3938 A FAMILY OF LIKE-MINDED ENTREPRENEURS WE ARE ENTREPRENEURS WITH INSTITUTIONAL SMARTS AND RIGOR. Our close-knit, highly accomplished team draws on our diverse and multi-disciplinary backgrounds to source deals, manage our portfolio, raise capital, design and develop real estate, manage properties, build brands and inspire people. WE CHOOSE OUR PARTNERS WELL. Our investors span the gamut from private individuals to storied institutions. They are matched with our projects based on needs, risk, and characteristic. Our partners, be they hotel managers, designers or developers are all at the top of their fields. Each project we do is unique and so are the people we choose to work with. 4140 CONTACT P 312.267.4185 E info@ajcpt.com 133 N Jefferson St, 4th floor, Chicago, IL 60661 www.ajcpt.com “ EVERY MORNING YOU HAVE TWO CHOICES: CONTINUE TO SLEEP WITH YOUR DREAMS OR WAKE UP AND CHASE THEM. ” WE ARE AJ CAPITAL PARTNERS— COUNTER-CULTURE INVESTORS WHO ACQUIRE, DESIGN, AND DEVELOP TRANSFORMATIVE REAL-ESTATE. WHERE OTHERS SEE BRICKS, MORTAR AND SQUARE FEET, WE SEE A FRAME FOR STORYTELLING, PASSIONS, AND SHARED EXPERIENCES. RFQ – Waterfront Hotel Project at Oyster Point March, 31, 2017 March 31, 2017 Miky Kuo Director CBRE 101 California Street, 44th Floor San Francisco, CA 94111 Ernesto Lucero Economic Development Coordinator City of South San Francisco | Economic & Community Development Department PO Box 711 South San Francisco, CA 94083-0711 South San Francisco – Oyster Point Hotel Development Request for Qualifications Miky and Ernesto, We are pleased to present this proposal in response to the RFQ for the hotel development at Oyster Point. We are big believers in the strength and momentum of South San Francisco and we hope to be able to work together with the leaders of your city to bring another great hotel development to this forward-thinking community. Although there is some mutual familiarity, following is some information on our company’s recent activities. OTO Development is one of the nation’s premier developers and operators of the best brands in the lodging industry. Our deep local development and management experience is exemplified by our recently opened hotels in Palo Alto, Redwood City, and Napa and the four other hotels under construction on the Peninsula. Perhaps the most applicable example of our commitment to excellence in design, construction, execution, and cooperation is demonstrated by our AC Hotel that is nearing completion at HCP’s Cove at Oyster Point in South San Francisco. We have worked in a lot of communities all over the country and it has been truly refreshing to experience the professionalism and spirit of partnership demonstrated by members of the city council and staff that resulted in our collaborative effort to deliver one of the most attractive and sophisticated hotel projects on the entire Peninsula. Based upon our knowledge of the South San Francisco market’s demand generators, we believe that a Hyatt Place/Hyatt House dual-branded hotel and conference center would completely satisfy the broad array of needs for corporate and leisure visitors to South San Francisco. The Hyatt Place provides a best-in-class lodging experience that is tailored for the upper tier of travelers in town for a shorter stay, and the Hyatt House concept is the premier product that serves the particular needs of extended stay travelers with a full kitchen in each expansive guest suite. Both brands have received the JD Power award for the top guest satisfaction in their segment. We propose to construct a central shared high-quality dining and beverage experience that will provide three meals a day and an active bar and lounge in the evening. We intend to focus the design of the restaurant, lounge, and conference facilities to capitalize on the natural beauty of this waterfront location. We intend to provide 5,000 square feet of flexible meeting spaces that will accommodate the vast majority of the community’s corporate and social demands. Our proposed hotel’s meeting facility will accommodate seated banquet-style meetings for groups of up to 250 people, theatre style meeting/cocktail receptions for approximately 400 people and boardroom style meetings for smaller groups. In addition, we will provide an upscale restaurant and bar for our guests and the community featuring fresh local ingredients, micro brews, craft cocktails and Napa and Sonoma Valley wines. Overview of Development Team OTO is headquartered in South Carolina, and has experienced development teams located in major markets across the US including Washington, DC, Los Angeles, New York City, and the San Francisco Bay Area. Based upon our experience with the AC in SSF, our team is well qualified to handle a project of this scope and we have the development expertise and financial resources to make this project a reality. We have a clear understanding of the process required to navigate a complex development project, including experience in: Timeline and Budget Management Planning and Development Integration EIR/ MND Processing – Traffic, Environmental, Etc. Architectural/ Interior Design and Integration Community Outreach and Presentations City Staff Coordination and Management Political Outreach and Consultation Cal-Green and LEED Certification Structured Parking/ Podium/ 5-Story Wood Frame Experience Architectural Design and Construction Administration Opening on Time, achieving the Desired Results OTO Development’s headquarters is in Spartanburg, SC. OTO’s address and our primary project contacts are as follows: OTO Development Steve Pieters 100 Dunbar Street, #420 Regional Director of Real Estate Spartanburg, SC 29306 408-202-8478 864/596-8930 spieters@otodevelopment.com Mike Gallen Joe Vieira Director of Development Development Manager 310/379-2785 408-375-0346 MGallen@otodevelopment.com JVieira@otodevelopment.com Our group has almost twenty years of experience designing and building dozens of Upscale hotels in Northern California. Financial Information (Attached) Concept Overview Our proposal is to build an upscale, Hyatt Place/ Hyatt House project consisting of approximately 50% transient hotel rooms and 50% extended stay hotel rooms. This concept will help us optimize the usefulness of this site while at the same time provide the city with an upscale, high-end design project with an orientation towards the beautiful views of the SF Bay. Due to the lack of an ALTA survey or parcel map, we have not drawn a site plan yet, but we have done a preliminary study based on the estimated gross square footage of approximately 640 square feet per room and are comfortable that this hotel will fit on the site. The hotel will have 300-340 rooms, contain approximately 220,000 square feet and provide many upscale amenities, including: 15+ foot ceilings on the ground floor and meeting rooms with beautiful views of the Bay, complimentary breakfast, restaurant, bar, swimming pool, state of the art gym, fully equipped business center, luxury bedding and all the amenities both corporate and leisure guests would expect in a high end branded hotel property. Our plan is to provide on-grade parking at a ratio of approximately .7:1, contracting with a local company for additional and/or valet parking on an as needed basis for events. Attached to this RFQ are Inspirational photos of both brands, a link to CallisoniRTKL’s other developments (our architect and also the Architect of the AC in SSF) and a brochure of other OTO Developments on the west coast, including the AC in SSF, which is expected to open this summer. Market Demand and Site Development Opportunity The proposed hotel development site will serve a combination of corporate, leisure and meeting business coming from local life sciences companies, the city of San Francisco and Moscone Center, the SF Airport and the incredible diversity of local social demand in SSF. These are a few of the reasons that we are supportive of additional investment in South San Francisco: - The Bay Area is home to incredible universities, including: UCSF, Stanford and Berkeley - SSF is #1 in the world for the amount of lab space, patents and VC funding - 6.5 Million square feet of new R&D space either under construction or approved for development over the next three years. - 20,000 new employees expected over the next five years - Home to Genentech and over 12,000 employees - Major Office presence for Amgen, Thermo Fischer Scientific, Merck, Calico Life Sciences, Pfizer, Johnson and Johnson and over 200 over bio-tech companies. - SSF is 11 miles south of downtown SF. Expansion of Moscone Center in downtown SF expected to be completed in 2018. Moscone Center is expanding by adding over 42% more usable space. Over 1 million conference attendees a year and expected to grow. - SFO accommodated 53 million passengers in 2017 and is expected to grow to more than 65 million passengers by 2035. - 86% occupancy hotel market in 2016. Hotel Siting and Orientation This hotel will be oriented to take advantage of beautiful Bay views on the water for the arrival experience, while dining or having a cocktail in the lounge and so that guests can experience the beautiful views while using the meeting space. In addition, we will design the hotel so that as many rooms as possible will have views of the water. The design will also create a sheltered outdoor experience so that guests can enjoy the beautiful California weather, outdoor fire pits, swimming pool, etc. Unique Information and Qualifications for OTO We believe our current development experience in the Bay Area and especially in SSF, uniquely qualifies us to develop this hotel location. Our understanding of the approval process, development costs, soil conditions, dealing with a clay cap, working with the local labor market, etc. will all be important factors for any developer to understand in executing and delivering a world class hotel property for SSF. We have had a great relationship with city council and staff in SSF and anticipate that would continue if we are selected. Predictability of execution and working with a great partner is a critically important part of a successful development project. OTO is unusual in the hotel business in that we not only develop our hotels, we also operate them. OTO has received about every development and operating award that Marriott, Hilton and Hyatt give out and we are a preferred developer for all three. In fact, last year OTO won the North American Project of the year award for our Hyatt Place in downtown Chicago. In addition, a rendering of our AC hotel under construction in SSF, was on the cover of USA Today for a hotel article about Marriott’s new developments (See Attached). We develop in some of the most upscale, high quality markets in the country, which requires a high level of sophistication, attention to detail and design savvy. We also manage 55 hotels today and we are the largest manager of hotels for the Blackstone Group. Meeting Space It is anticipated that we will provide approximately 5,000 square feet of meeting space (exact size to be finalized during the design process). In our research in the local market, there is a significant amount of corporate demand for off-site meeting space. In past discussions with Genentech, they cited over 2,000 meetings a year both on and off campus. Our Corporate sales team also believes there is an especially significant demand for meeting space with Bay Views – including not only corporate events but also wedding receptions, bar mitzvahs, Quincineras and other types of banquets. We propose to offer 4,000 Square feet of contiguous space (divisible into 4-1,000 square foot meeting spaces or can be used as one space for 250+ people in a dining configuration or 400 in theater style seating) A cocktail reception or theater style seating for 400 people and, an additional 1,000 square feet of space divisible into two 500 square foot spaces. This will allow us to accommodate the majority of events in the SSF area, and provide breakout rooms for larger meetings for individual teams and departments to meet separately from the overall group. The hotel will have a full-service kitchen that will provide a great variety of high quality food, wine and beverages for meeting guests. Chris, Miky, and Ron, we hope that our proposal is the continuation of an ongoing collaboration with SSF that will result in delivering another top-tier lodging experience. Although there will be some challenges throughout the design, entitlement, planning, and permitting processes, we know that strengthening relationships with key people from the City and community early in the process will be a critical ingredient towards achieving project approval. Delivering a great experience for employees, guests and the community will be primary driving factors in all of our decisions. We believe strongly that OTO’s recent development experiences in SSF and the Bay Area, and in building multiple Hyatt properties across the country enables us to be at the forefront of these two brands and gives us confidence that we understand the costs and standards required to build and operate a world-class hotel. Predictability of execution and a consistent, high-quality experience for the community and our guests is critical to deliver at this upscale, high profile location with fantastic views to the SF Bay. It is our hope that we continue to grow our partnership in delivering a First Class Hyatt Place/Hyatt House dual brand in SSF. Please call me with any questions. Corry Oakes and Todd Turner will be back in town the week of April 10th and we would love to get together to discuss this proposal further and answer any questions. We would also be glad to give you a tour of our newest hotel, the Courtyard by Marriott in Redwood City or a hard hat tour of the AC by Marriott coming soon to SSF. Best Regards, Steve Pieters Regional Director of Real Estate OTO Development The Hyatt brand literature describes the Hyatt Place concept as follows: A different kind of place. Created for multi-blenders with 24/7 lifestyles seeking a select-service hotel that will allow them to balance work and play, Hyatt Place is a new generation of hotels that offers casual hospitality in a smartly designed, high-tech and modern environment. The brand is an industry leader in defining the upscale select-service category, and still exclusively offers food and beverage options freshly prepared 24-hours a day, seven days a week. The Hyatt Place brand uniquely appeals to Bay Area business professionals. Hyatt Place was rated first in 2015 by JD Power and Associates in guest satisfaction among Upscale Hotel Chains. With an upscale and contemporary design, inside and out, all rooms are spacious suites with a microwave and fridge in every room to accommodate longer stays and providing one of the best designed and most comfortable hotel rooms in the industry. Other amenities include: o High-speed internet with increased capacity to handle greater demand o Fully equipped business center o High-quality fitness facility o Swimming pool o Complimentary hot breakfast o Bar and Lounge o Full Serve Restaurant o 5,000 square feet of meeting space with the latest AV technology o Luxury bedding o Hyatt Gold Passport Travel Points Hyatt Place Concept Example – Downtown Chicago Loop – Developed and Operated by OTO *(North American Design Project of the Year for Hyatt in 2016) Hyatt Place Lobby Hyatt Place Front Desk Hyatt Place Bedroom - King Hyatt Place Bedroom – Double Queen Hyatt Place Workout Room Hyatt Place Pool Hyatt Place Meeting Room Hyatt Place Bar The Hyatt brand literature describes the Hyatt House concept as follows: A place to live, not just stay. Hyatt House ® is a distinctive hotel concept that will evolve the extended-stay model into a social and modern environment where guests feel like residents of an upscale community. Inspired by extensive research of guest experiences, Hyatt House is designed to surprise and delight with form and function that will remind guests of home. Featuring contemporary, residentially inspired Studios, One- and Two-Bedroom Kitchen Suites and Den Guestrooms, Hyatt House boasts unexpected amenities and services, including indoor and outdoor social spaces, a Lounge that resembles the living space of today’s modern home with an adjacent H BAR and Social Sectional, as well as other multi-purpose areas to do everything, or simply do nothing. A Happy Hour with extended hours and premium wine, beer, cocktails and light fare for purchase provides guests with extensive food and beverage options. Hyatt House also has an upscale and contemporary design, inside and out. All rooms are spacious suites with a microwave, stove, dishwasher and refrigerator in every room to accommodate longer stays and providing one of the best designed and most comfortable hotel rooms in the industry. Other amenities include: o High-speed internet with increased capacity to handle greater demand o Fully equipped business center o High-quality fitness facility o Swimming pool o Complimentary hot breakfast o Bar and Lounge o Full Serve Restaurant o 5,000 square feet of meeting space with the latest AV technology o Luxury bedding o Hyatt Gold Passport Travel Points Hyatt House Exterior Example Hyatt House Lobby Hyatt House Front Desk Hyatt House Bedroom Hyatt House Kitchen Hyatt House Bar Meeting Rooms in Napa, CA List of References Jon Bergschneider HCP 650-875-1002 Peter Merlone Merlone Geier 415-693-9000 Paul Power Pauls Corp. 303-371-9000 Mark Regoli Southbay Development 408-379-0400 CallisonRTKL Architects http://www.callisonrtkl.com/markets/hospitality/ ARCHITECTURE | DESIGN | DEVELOPMENT M-RAD ARCHITECTURE & OLIVER COMPANIES 03.31.2017 projects@m-rad.com www.m-rad.com OYSTER POINT HOTELCITY OF SOUTH SAN FRANCISCO m-rad.com CONTENTS 1.1 OYSTER POINT HOTEL: OPTION 1 Ground Plane Connection 1.2 OYSTER POINT HOTEL: OPTION 2 the Tower Option OUR PROPOSAL1 2.1 STRATEGY How M-Rad is revolutionizing the industry of architecture. 2.2 PHILOSOPHY Culture. Community. Climate 2.3 TEAM Experienced. International. Innovative 2.4 CLIENTS Who we work with 2.5 PRESS Where we are featured 2.6 PRINCIPALS Who runs the show 2.7 ADVISORS Who helps us get better 2.8 SELECTED BUILT PROJECTS Completed work 2.9 SELECTED CURRENT PROJECTS Projects in development and under construction 2.10 SELECTED PAST PROJECTS Projects we have worked on in the past OUR PRACTICE2 m-rad.com CONTENTS 3.1 OLIVER COMPANIES Real Estate Development 3.2 RANA CREEK DESIGN Landscape Architecture OUR PARTNERS3 m-rad.com4 1.1 OYSTER POINT HOTEL OPTION 1 Ground Plane Connection ÝťČěKĄĀÝÇěÝěK¸Čě:¶Ç{:Ąě y¸ÝÝĄ K¸KřěÝÇ ӯyKKěӰ ĄÝÝyўї ќѝѕ :ĩĄÝ ћћѝ ¸ěÝÇ њњћ љљљ јјї їїѕ {ĄÝĩÇAѕ Āĩ9¸:Ā¸Ź ¸ÝěĄKyÝÝěĀĄÇěĀĄÝ{ĄÃ{ĄÝČČĄKĂěťӝӍĀĄ¶Ç{ĄKĂӝ їѕњӗѕѕѕǹɽұўћӗњѕѕǹɽұÝěK¸јѕѕӗѕѕѕǹɽұјњѕјњїўњӗѕљѕǹɽұ yÝÝAծ9KřKĄ{Kїѕӗѕѕѕǹɽұћќіѝӗѕѕѕǹɽұ yӝӝĄӝʥӣȈȶƺljȶɽȈʤljɰ ÃKKěÇ{ČĀ:Kњӗѕѕѕǹɽұіќљӗњѕѕǹɽұ іӝћїӝїĀĄ¶Ç{ііќӗњљѕǹɽұ јїѝӗѕѕѕǹɽұљњіӗѕѕѕǹɽұ ěÝě¸{ĄÝČČ љљїӗњљѕǹɽұ hhÚ h/ҀҁѽӹѼѼѼDžȻӘ ¸Ýě:ÝřKĄ{Kӯ҂ѼշrßӰ љќӝѕќՐ Ӵ ƃȮƭƦȀǵƭȻǍƭƟɃȦȦƭǵȻ/S¥ƃǪǪȀɛƃǵƟƭӹǍȀȻƭǪȮǒǵƭɠƟƭȮȮȀDžѿҁѼȦȀȀdzȮȮǍƃǪǪȦƭȥɃǒȦƭƃǵƃƦƦǒȻǒȀǵƃǪ ƃǪǒDžȀȦǵǒƃ/ǵɚǒȦȀǵdzƭǵȻƃǪ¤ɃƃǪǒȻɡǵƃǪɡȮǒȮӾ m-rad.com5 OYSTER POINT HOTEL Option 1: Curio & Hilton Homewood Suites The Oyster Point Hotel strives to help establish and facilitate the pedestrain connection between the proposed bicycle lanes, sidewalks, and public spaces connecting the various phases of the Oyster Point development plan. Reaching down to the sidewalks, the building never strays too far from the walkable elevation; the food and beverage sections put themselves on display for passersby, while the hotel above boasts views of the Marina and even further to the Channel. Curio Collection is a Hilton brand, boasting a collection of independent, remarkable hotels whose only unifying characteristic is their glorious individuality. Each hotel is hand-picked for its distinct character and personality, appealing to passionate travelers seeking local discovery. Hilton Homewood Suites by Hilton is comprised of all-suite residential-style hotels managed by the Hilton Worldwide; consisting of over 350 hotels in the United States, Canada, and Mexico, Homewood Suites hotels are independently owned and operated by individual franchisees. m-rad.com6 1.2 OYSTER POINT HOTEL OPTION 2 the Tower Option ÝťČěKĄĀÝÇěÝěK¸Čě:¶Ç{:Ąě y¸ÝÝĄ K¸KřěÝÇ ӯyKKěӰ ĄÝÝyіѝѝ іњіќћ ěÃK іљіћљ іјіњї іїіљѕ іііїѝ іѕііћ ўіѕљ ѝўї ќѝѕ Ślj¸Ȉʤlj ћћѝ њњћ љљљ јјї їїѕ {ĄÝĩÇAѕ Āĩ9¸:Ā¸Ź ¸ÝěĄKyÝÝěĀĄÇěĀĄÝ{ĄÃ{ĄÝČČĄKĂěťӝӍĀĄ¶Ç{ĄKĂӝ їѕњӗѕѕѕǹɽұѝњӗѝѕѕǹɽұÝěK¸јѕѝӗѕѕѕǹɽұјњѕјњїўњӗѕљѕǹɽұ yÝÝAծ9KřKĄ{Kїѕӗѕѕѕǹɽұћќіѝӗѕѕѕǹɽұ yӝӝĄӝʥӣȈȶƺljȶɽȈʤljɰ ÃKKěÇ{ČĀ:Kњӗѕѕѕǹɽұіќљӗњѕѕǹɽұ іӝћїӝїĀĄ¶Ç{ііќӗњљѕǹɽұ јїѝӗѕѕѕǹɽұљњіӗѕѕѕǹɽұ ěÝě¸{ĄÝČČ љњѕӗњљѕǹɽұ hhÚ h/ҀҁѽӹѼѼѼDžȻӘ ¸Ýě:ÝřKĄ{Kӯ҂ѼշrßӰ љіӝѝњՐ Ӵ ƃȮƭƦȀǵƭȻǍƭƟɃȦȦƭǵȻ/S¥ƃǪǪȀɛƃǵƟƭӹǍȀȻƭǪȮǒǵƭɠƟƭȮȮȀDžѿҁѼȦȀȀdzȮȮǍƃǪǪȦƭȥɃǒȦƭƃǵƃƦƦǒȻǒȀǵƃǪ ƃǪǒDžȀȦǵǒƃ/ǵɚǒȦȀǵdzƭǵȻƃǪ¤ɃƃǪǒȻɡǵƃǪɡȮǒȮӾ m-rad.com7 OYSTER POINT HOTEL Option 2: Time Hotels & WeLive The Oyster Point Hotels are not only reaching above the site’s pedestrian-friendly landscape, but also climbing to the limit of possibility in South San Francisco. The towers embody the movement of the choppy West Basin as it fl ows out into the Channel, off ering views of the Marina all the way out on the Gulf to the west. The landscape, connecting the towers, keeps the bothersome parking tucked away from the publicly-accessible park, while allowing the hotel patrons to take full advantage of the 360° views that South San Fran has to off er. Time Hotels is a brand of Dream Hotels, a brand rooted in the insatiable human need to explore the other side of oneself. They’ve created the perfect playground in which to do just that: a hotel that translates into a multitude of experiential spaces. WeLive is the residential arm of the tenacious and entrepreneurial self-starters, WeWork. They’ve built more than beautiful, shared offi ce spaces; they’ve built a community. You join as an individual, but you become part of a greater ‘we.’ It’s a place where they redefi ne success by personal fulfi llment, not just the bottom line. Community is their catalyst. m-rad.com8 M-Rad is here to fi x the business of architecture. OUR PRACTICE STRATEGY 2.1 m-rad.com9 CULTURE . COMMUNITY . CLIMATE Our inspiration draws on a deep respect for the cultures and individuals that our work immediately aff ects. We envision landscapes that enrich communities, inspiring people to interact with each other as well as the structures that we draft. Incorporating science and climate data allows us to produce buildings that push the frontiers of environmental sustainability. In this way, we are both locally and globally minded. Small details can impact our world in great ways. Clients are considered partners and we take our relationships ver y seriously. By seeking strategic partnerships, we work alongside like-minded, ambitious people to create high-functioning, environmental and aesthetically-progressive projects. By achieving these goals, it means that we have succeeded in building better businesses for ourselves, our clients, and our communities. M-Rad provides bespoke solutions to universal problems. PHILOSOPHY m-rad.com10 EXPERIENCED . INTERNATIONAL . INNOVATIVE M-Rad is an international, award-winning design studio that looks to re- conceptualize architecture through social and environmental research. The Los Angeles-based design fi rm was founded in 2012 by Matthew Rosenberg, a Canadian-born designer who has worked and studied across twenty-four countries. M-Rad Architecture is dedicated to exploring progressive solutions with clients who are interested in redefi ning the architectural style of our time. The work, while varied in scale and eclectic in scope, is harmonized by alternative sustainable solutions and enhanced social exchanges. We are working to facilitate the development of socially-generated solutions that will maximize the function of our buildings or strengthen a community’s infrastructure. Our goal at M-Rad is to introduce elements that reinvigorate the existing landscape into public spaces and off er the community a chance to defi ne a thriving culture. Our hope is that our designs help to build a stronger bond between the community and their built environment by off ering them a part in its development. TEAM m-rad.com11 CLIENTS m-rad.com INTERIOR DESIGN MAGAZINE | ‘ONES TO WATCH IN 2013’ USA ABC ACTION NEWS | ON SITE TELEVISION INTERVIEW FOR VEGAS EXTREME USA LAS VEGAS SUN | FRONT PAGE FEATURE ON VEGAS EXTREME USA PLANET MAGAZINE | INTERVIEW ON FRESH HILLS AFTER HURRICANE SANDY USAY PRESTEL PUBLICATIONS | REGENERATIVE INFRASTURCTURES USA ARCHITECT MAGAZINE OF AMERICAN INSTITUTE OF ARCHITECTS | FRESH HILLS USA CANADIAN ARCHITECT MAGAZINE | LAND ART GENERATOR INITIATIVE FEATURE CANADA DOMUS MAGAZINE | FRESH HILLS FEATURE ITALY DANISH ARCHITECTURE CENTRE PUBLICATION | FRESH HILLS FEATURE DENMARK LANDSCAPE WORLD MAGAZINE | FEATURE ON FRESH HILLS KOREA DANISH ARCHITECTURAL PRESS | FEATURE ON FRESH HILLS DENMARK INHABITAT | FEATURE ON FRESH HILLS USA ARCHITECTS NEWSPAPER | ‘M-RAD DESIGNS LIVE-WORK IN DOWNTOWN VEGAS’ USA DWELL | ‘LIVE WHERE YOU WORK & WORK WHERE YOU LIVE IN VEGAS TOWER’ USA’ ARCHDAILY | ‘M-RAD PROPOSES LIVE-WORK TOWERS TO REVITALIZE LAS VEGAS’ USA ’ FAST COMPANY | ‘A FUTURISTIC LOOK AT THE NATION OF SAN FRANCISCO’Y USA’ AIA MAGAZINE | INTERVIEW; ‘M-RAD WEIGHS IN ON SMALL FIRM SUCCESS’ USA’ WORLD ARCHITECTURE NEWS | ‘ABORIGINAL SYMBOLS INSPIRE DESIGN CONCEPT’ AUSTRALIA’ HONEST BUILDINGS | ‘ONE LOFTY BUILDING IDEA’ USA SWIPE LIFE | FEATURE INTERVIEW ‘DESIGNING THE RESPONSIBLE SOLUTION’ USA CIVIL ENGINEERING MAGAZINE | FEATURE INTERVIEW; ‘VEGAS EXTREME’ USA’ PHAIDON | ‘GREEN EXTREME SPORS PARK DRAFTED FOR LAS VEGAS’ USA GIZMAG | FEATURE ON VEGAS EXTREME USA PRESS m-rad.com MATTHEW ROSENBERG is an international award-winning designer who was born and raised in the agricultural epicenter of the Canadian prairies. Matthew left Saskatoon in 2000 to study and work across twenty-four cities and fourteen countries. Matthew holds a Bachelor of Fine Arts in Studio Art (University of Saskatchewan), a Bachelor of Environmental Design in Architecture (Dalhousie University), and a Masters of Architecture (SCI-Arc) which he received alongside a Selected Thesis Award. He has also studied architecture at McGill University in Montreal and the Louvre in Paris. Matthew has signifi cant experience in the design and implementation of unique, complex and large scale architecture. After over a year living and working in Beijing, he returned to Los Angeles in 2012 to launch M-Rad where he aims to re-conceptualize architecture and urban growth through social and environmental research. He founded M-Rad in 2012 and is acting design principal and head of business acquisition. He currently resides in Los Angeles, California where he celebrates the fact that he can climb a mountain, run on a beach, and explore the thriving urban culture in a single day. MATTHEW ROSENBERG M-RAD ARCHITECTURE | FOUNDING PRINCIPAL m-rad.com FOUNDER 2.6 m-rad.com TINA HOVSEPIAN Tina Hovsepian is an architect, inventor, and social entrepreneur with a bachelor of architecture from the University of Southern California. Hovsepian has a high level of profi ciency in effi cient conceptual design and the translation of conceptual intent through all phases of design and construction. Extensive experience in the process of taking a project from concept through construction. Familiar with Los Angeles, Santa Monica, and New York city building codes and experience obtaining permits. Project types include education, commercial, mixed-use, high-end retail, residential, and interiors, including DSA approvals. Currently directing programs to help house displaced persons with her award winning portable shelter design that is manufactured and distributed through the 501c3 charitable nonprofi t founded by Hovsepian in 2010. She is most interested in innovation, sustainability, and design excellence in the built environment. TINA HOVSEPIAN PROJECT ARCHITECT m-rad.com PATRICK LUN is lead Project Principal specializing in project management, BIM coordination, and digital fabrication. With over 6 years of experience in various offi ces such as Marmol Radziner + Associates and MOS Architects, Patrick comes well versed in a variety of scales. Patrick also boasts extensive experience in interior development and furniture fabrication. Patrick holds a Master of Architecture from Yale University where he earned the Samuel J. Fogelson Award. He also holds a Bachelor of Architecture from Taubmann College of Architecture at the University of Michigan. PATRICK LUN PROJECT PRINCIPAL m-rad.com PRINCIPALS m-rad.com MARKUS SOHST joins M-Rad as a Senior Designer bringing with him 15+ years of experience at Gehry Partners, Neil M. Denari Architects and Adamson Associates. Markus has worked on a number of projects at various scales, ranging from retail spaces in Los Angeles to residential towers in Hong Kong. Markus has studied at the University of Wismar, Kuntsthochschule Berlin Weissensee as well as earning his Masters Degree in Architecture from UCLA. His body of research on emerging technologies and advanced ecology is allowing M-Rad to become a unique asset with many of our tech startup clientele. MARKUS SOHST PROJECT MANAGER m-rad.com CARLOS AUGUSTO GARCIA is an internationally recognized designer from Annapolis, Maryland with over eight years experience in the fi elds of architecture, web design, graphic design, hand rendering, and architectural visualization. A designer with both a Master’s Degree in Architecture & Bachelor’s Degree in Architectural Design from Tulane University in New Orleans, Louisiana. His work has been featured in international architecture magazines, honored with a gallery installation at the Ogden Museum of Art, and addressed the City Council as a proponent of his design for the Planned Parenthood Federation of America. His web design clients range from various medical practices to a boutique bed and breakfast in the heart of New Orleans, while his graphic design claims clients such as Joule Energy and the HBO Network. PROJECT PRINCIPAL m-rad.com CARLOS GARCIA PRINCIPALS m-rad.com MIGUEL MCKELVEY is Co-Founder and Chief Creative Offi cer of WeWork, a company recently valued at $17 billion. He directs all architecture, design, and construction activities and continues to push the boundaries of the work-share business and design model. Miguel is a multi-disciplinary designer and entrepreneur with diverse experiences in architectural design, construction management, and web development. CHRIS DANNEN is a business journalist who has written for Fast Company, Wired, MIT Tech Review, the Atlantic, and others. He was senior editor at Fast Company, where he led startup and technology innovation coverage. He is currently a managing partner at Iterative Instinct, an early- stage venture capital fund focused on technology. Chris also co-founded Sneakers Agency, an iOS development shop in Williamsburg. He was a management consultant for several boutique agencies. WEWORK | CO-FOUNDER New York, NY MIGUEL MCKELVEY CHRIS DANNEN ITERATIVE INSTINCT | CO-FOUNDER FAST COMPANY | SENIOR EDITOR New York, NY ADVISORS 2.7 m-rad.com DINO ZAHAROPOULOS currently acts as VP Finance at Golfstream Inc. He has worked in fi nancial advising and accounting at Merrill Lynch, Credit Suisse, Bank of America, EventQuest, and The Sigfried Group. The majority of Dino’s professional career was spent with Marriott International, over 12 years, where he worked his way from an entry level position to Senior Manager, Accounting, overseeing a $100 +MM global sales offi ce operation. DINO ZAHAROPOULOS GOLFSTREAM | VP FINANCE PLANNING & ANALYSIS Los Angeles, CA CHRIS MILLER brings 23 years of experience in the luxury hospitality industry. His clientele extend from Michelin-Star restaurants, multi-unit on-premise corporate programs, casinos, wineries, to private clubs. He has been involved in new openings, facility design, full program builds, systems implementations, and complete facility, operational, and fi nancial overhauls. WOLFGANG PUCK, GOLFSTREAM | MASTER SOMMELIER Los Angeles, CA CHRIS MILLER ADVISORS m-rad.com HARBIN OPERA HOUSE Harbin, China MAD Completed: 2016 HUANGSHAN RESORT Huangshan, China MAD Completed: 2016 TRANSBAY TERMINAL San Francisco, CA, USA Pelli Clarke Pelli Architects Estimated Completion: 2017 DOTERRA Pleasant Grove, UT VCBO Completed: 2014 JUNG HOTEL New Orleans, LA Williams Architects Completed: 2016 MEXICO CITY TEMPLE Mexico City, Mexico VCBO Completed: 2016 BUILT WORK SELECTED PREVIOUS WORK2.8 m-rad.com19 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status MAD Matthew Rosenberg Project Manager Opera House Built, Completed 2015 HARBIN OPERA HOUSE Harbin, China The inspiration for the fl owing form of this government-funded project was the continuous ribbons of cracks through the massive ice blocks that drift along the Harbin River. Hints of the interior program are seen in the overall gestures of crescendo peaks and tranquil interludes of the continuous wrapping skin. The Cultural Island includes a 1,600 seat main theatre, a 400 seat secondary theatre, studios, education facilities, an exhibition space and a variety of retail and plaza space. The site rests on a preserved wetland that guided the incorporation of waterways through the various built programs allowing 70% of the site to retain its wetland characteristics. m-rad.com20 HUANGSHAN TAIPING RESORT Huangshan, China The jutting landscape over Taiping Lake makes Huangshan Mountain a canvas that is both inspiring and phenomenal. We wanted to integrate a smart and sustainable community development and provide the client with as many waterfront rooms as possible. In Chinese culture, water is thought to exude pliant and yielding characteristics that are necessary for ease in both interpersonal relationships and in the relationship between building and land. The intention was to build among rather than on the mountains. Much like an ancient Chinese painting, the design dances across the landscape, blurring thresholds of nature and built environment. The undulating terrain defi nes the placement of each lakeside building, while the views situate each unit within those plots. Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status MAD Matthew Rosenberg Project Manager, Head of Design Residential / Commercial / Hotel Built, Completed 2015 m-rad.com21 TRANSBAY TERMINAL San Francisco, CA, USA The San Francisco Transbay redevelopment project realizes the world’s largest rooftop park in the center of one of the world’s most exciting cities. The building, by Pelli Clarke Pelli Architects together with Adamson Associates, restructures the existing transport hub in the city center. It features innovations such as water purifi cation, air fi ltration, ecosystem services, improved biodiversity, and adds an exhilarating new green space to the center of the city. The transbay terminal will be completed in 2017. Photos courtesy of Pelli Clarke Pelli Architects Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status Pelli Clarke Pelli Architects, Adamson Associates Markus Sohst Executive Project Manager Transit Center & Ecological Rooftop Under Construction, Expected Completion: 2017 m-rad.com22 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status VCBO Jon Lee Project Designer Offi ce Headquarters Built, Completed 2014 doTERRA Pleasant Grove, UT doTERRA, a leading producer and distributor of therapeutic grade essential oils, required an expansion of their headquarters in Pleasant Grove to an international level. The $65 million expansion was needed to help meet the global demand for its booming essential oils and essential oil-infused products. With over 300,000 square feet of corporate, manufacturing, distribution, and customer service accommodations, the doTERRA worldwide corporate campus will become an inspirational destination for doTERRA consultants and customers, and a center of beauty and vitality for the local community. m-rad.com23 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status Williams Architects Carlos Augusto Garcia Project Designer Hotel Built, Completed 2016 JUNG HOTEL New Orleans, LA First opened in 1908, then expanded in 1925 and again in 1928, the Jung Hotel totals 759 rooms spanning 18 stories and was designed by Weiss, Dreyfous, & Seiferth. Developer and hotelier Joseph Jaeger bought the building in October 2007, has announced construction on the $130 million project would begin in 2015 with aims to complete it by fall 2016. The architecture fi rm of Williams Architects applied for the latest round of renovation; the plans for the hotel call for 175 apartments, 145 hotel suites and 50,000 square feet of retail, wrapping construction in late 2016. There are also plans to build a 484-space parking garage addition along the rear facade. m-rad.com24 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status VCBO Jon Lee Project Designer Temple Built, Completed 2016 MEXICO CITY TEMPLE Mexico City, Mexico In March 2007, the Mexico City Mexico Temple was closed for a year-and-a-half renovation and remodeling project, which included seismic enhancements, replacement of the precast concrete exterior panels, refurbishment of the angel Moroni statue, revamping of the landscaping, and remodeling of the baptistry, main lobby, corridors, sealing rooms, and ordinance rooms. In January 2014, the Mexico City Mexico Temple closed for an 18-month renovation of the interior. The evening prior to the rededication, the youth of the temple district presented a cultural celebration entitled A Legacy of Faith and Sacrifi ce. President Henry B. Eyring, fi rst counselor in the First Presidency, rededicated the temple. m-rad.com MIXED USE BIOTECH PHASE 1 San Francisco, CA, USA Status: Design Development, City Planning Review MIXED USE BIOTECH PHASE 2 San Francisco, CA, USA Status: Design Development, City Planning Review HOLLYWOOD MIXED USE HOTEL Hollywood, CA, USA Status: Under Construction HELLO SATURN CONDOS Los Angeles, CA, USA Status: Under Construction BURBANK APARTMENTS Burbank, CA, USA Status: Under Construction BEVERLY ESTATES HOUSE Beverly Hills, CA, USA Status: Under Construction HUDSON AMERICANO HOTEL New York, CA, USA Status: Schematic Design GOLD COAST CULTURAL PRECINCT Gold Coast, AUSTRALIA Status: Invited Competition DUNDAS DANDELION Glasgow, SCOTLAND Status: Invited Competition GETAWAY Joshua Tree, Catskills, Monterey, Boston, Chicago, USA Status: In Development, Under Construction CURRENT WORK SELECTED CURRENT WORK2.9 m-rad.com26 FLEXIBLE LEGEND SOCIAL ACTIVE LOOKOUT COMMON SPACE Restaurant / Bar Seating Cafe Seating Hotel Walking Path & Lookout Hotel Conference Balcony Pool / Sun Deck Walking / Running Track Yoga & Meditation Space Movie Screening Outdoor Dining Office / R&D Collaborative Meeting Zone Hotel Conference Collaborative Meeting Zone Meditation Space Think Tank Outdoor Dining Extended Stay Balcony MIXED-USE BIO-TECH, PHASE 1 MASTERPLAN South San Francisco, CA The proposed site begins with an intelligent mix of programs at a highly concentrated density to allow for maximum interaction between the Research and Development (R&D) creative biotech community, transient hotel residents, and public and professional users of curated commercial retail. Next comes an active exchange through a redeveloped Grand Avenue corridor that encourages both foot and bicycle traffi c through the 101 barrier, as well as targeting our neighboring offi ces to encourage a cross-pollination of relationships and ideas. The fl exible arrangement of the buildings in terms of confi guration and layout creates an opportunity for multiple operators and future fl exibility with program uses. The Project off ers a wide variety spaces and uses: the hotel, various amenities and the offi ce spaces can be run and operated independently from each other, thereby allowing the projects to be based on more fl exible economic assumptions. level 03 Caltrain Station LEGEND ZONINGS CIRCULATION level 02 level 01 Plaza Bicycle Pedestrian Vehicular SITE Playground Amphitheater Sports court Outdooor meeting Space Promenade Festival & Market lawn Native Plants Garden Train Track Preservation Fountain Amphitheater Shaded Picnic Area Urban Agriculture Pavilion Sculpture Garden Firm Program Size Status Client Budget M-Rad Architecture Hotel / Retail / Bio-Tech Research / Offi ces 750,000 SF Design Development Oliver Companies $265,000,000 m-rad.com27 Firm Program Size Status Client Budget M-Rad Architecture Hotel / Retail / Bio-Tech Research / Offi ces 750,000 SF Design Development Oliver Companies $265,000,000 MIXED-USE BIO-TECH, PHASE 2 South San Francisco, CA The central concept for our development proposal at 121 East Grand Ave is to transform an otherwise typical corporate hotel into a vibrant anchor for the accelerated, and future, growth of South San Francisco. The project aims to transform the traditional suburban style offi ce towers which all-too-often fi nd themselves surrounded by seas of parking, a litany of light poles and vast, disengaging environments into a destination. We seek to create a fl exible hub which combines value-generating spaces with strategically stable, sustainable, and engaging programming. The typical offi ce tower confi guration supports bad habits, where automotive-centric commuting and isolation from public interaction prevail. In contrast, we are proposing an interactive site that fosters continuing participation from its guests, community, businesses, and area residents through dynamic circulation. m-rad.com28 Firm Program Size Status Client Budget M-Rad Architecture Mixed-Use Long Stay Hotel 28,500 SF Under Construction Private $14,500,000 AIRBNB MIXED USE HOTEL Los Angeles, CA Hollywood will always be an international draw for tourists, but Hollywood Apartments looks to redefi ne the neighborhood as a hub for creative culture and economic diversity among both local and international clientele. As the building steps back, each fl oor shifts to feature views of the Hollywood Hills while fl ooding the terraces with natural light. The most exciting aspect to the project is the public park that steps up the front of the building and defi nes the entire front facade. The building almost disappears as guests, residents, and visitors begin to activate the building edge and blur the lines between urban fabric and building envelope. m-rad.com29 Firm Program Size Status Client Budget M-Rad Architecture Aff ordable Multi-Family Residential 57,000 SF Under Construction Private $18,500,000 HIPOINT APARTMENTS Los Angeles, CA HiPoint Apartments focuses on the relationships of building to individual unit as well as building to street. By pressing down a corner of this square development, common open space is no longer insular in nature, but rather looks outward toward the city. This not only provides each unit with more exposure to sunlight, but also allows for green balconies and access to city views atypical in most low-income, aff ordable housing developments. m-rad.com30 Burba n k B l v d W i l l i s A v e N a t i c k A v e 261 ft 1 1 6 f t Burban k B l v d W i l l i s A v e N a t i c k A v e 261 ft 1 1 6 f t Firm Program Size Status Client Budget M-Rad Architecture Aff ordable Multi-Family Residential 46,200 SF Under Construction Private $9,500,000 BURBANK APARTMENTS Los Angeles, CA Rather than leveling the site in order to build anew, we worked the footprint of the Burbank Apartments around existing trees will that shape a communal space for residents and the local community. We removed the building’s center, splitting the mass to create an elevated platform that serves as a ‘walk in the forest’ amidst the tree tops, as well as allowing for additional sunlight to reach the residences’ interiors. Smaller volumes are carved from the initial massing to provide each unit with extra balcony space and immediate exterior access. Burba n k B l v d W i l l i s A v e N a t i c k A v e 261 ft 1 1 6 f t m-rad.com31 Firm Program Size Status Client Budget M-Rad Architecture Hotel / Condo / Retail / Restaurant / Spa 110,000 SF | 740’ Tall Design Development Blackhouse $65,000,000 HUDSON AMERICANO HOTEL New York, NY, USA Manhattan is a vertical city. At the base of these vertical extrusions, lost in the gridded urban fabric, we forget to look up. It’s easy to get caught up in the energy of the city, not stopping to change our perspectives. Hudson Americano aims to do just that - to challenge our expectation of Manhattan’s linear verticality with a 4-dimensional facade that shifts with light and perspective. It works to break up the monotonous fabric of Manhattan, off ering moments of serendipity in doing so. The tower’s facade projects inward and outward at specifi c angles to increase natural light, control heat absorption, and frame views of the city and the Hudson River. It is a stunning display of ground-breaking design, construction, and sustainability. m-rad.com32 Firm Program Size Status Client Budget M-Rad Architecture Single Family Residence, Attached Pool and 4 car Garage 10,000 SF Under Construction Ilan Sharone $8,500,000 BEVERLY ESTATES HOUSE Beverly Hills, CA, USA Situated on a pristine hilltop in Beverly Hills, the Beverly Estates residence is inspired by its unique and dynamic topography of which it sits. The structure embraces large courtyards and terraced spaces throughout its two levels. Light wells are created on both sides of the project, connecting the fi rst level courtyards to the second level terraces. The occupants are constantly exposed to the outdoor environment while navigating along the paths of the house. At the end of these paths, the edge of the hill allows for an extensive view of the the city we all love, Los Angeles. The fi rst level is angled to project a view corridor towards Beverly Hills while the second level looks out facing Santa Monica and Catalina beyond. These angled ends of the project also create additional outdoor open and covered decks to enjoy the pool view on the fi rst level and the landscape of the city from the second level. m-rad.com33 GOLD COAST CULTURAL PRECINCT Gold Coast, Australia Firm Program Size Status Client Budget M-Rad Architecture Museum, Theatres’, Galleries, Event Space 44 acres Competition Gold Coast Cultural Precinct $380,000,000 Manhattan is a vertical city. At the base of these vertical extrusions, lost in the gridded urban fabric, we forget to look up. It’s easy to get caught up in the energy of the city, not stopping to change our perspectives. Hudson Americano aims to do just that - to challenge our expectation of Manhattan’s linear verticality with a 4-dimensional facade that shifts with light and perspective. It works to break up the monotonous fabric of Manhattan, off ering moments of serendipity in doing so. The tower’s facade projects inward and outward at specifi c angles to increase natural light, control heat absorption, and frame views of the city and the Hudson River. It is a stunning display of ground-breaking design, construction, and sustainability. m-rad.com34 DUNDAS DANDELION Glasgow, Scotland Firm Program Size Status Client Budget M-Rad Architecture Museum, Training & Educational Facility, Research Facility 64 acres Invited Competition Glasgow City Council $60,000,000 The ‘Dundas Dandelions’ is ambitious. It will grow to create an integrated identity for a place that does not yet exist, an unusual hinterland of a place. We will engage with the true qualities of the site, resist the urge to tidy up and create a genuine, authentic and distinctive response. ‘Dundas Dandelions’ is a chance for people to imagine an alternative way of living together, engage in cutting edge thinking and explore the future of their city. It is a landscape of learning; transforming familiar surroundings and provoking us to challenge our preconceived ideas about the future. Through LAGI we will embrace the opportunity to create interruptions across Dundas Hill that will provide new venues for everyday, and extraordinary, activities which will open up people’s eyes to new possibilities and educational experiences. m-rad.com35 GETAWAY HOUSE Joshua Tree, Monterey, Catskills, Boston, Chicago Firm Program Size Status Client Budget M-Rad Architecture Temporary Cabins 30-80 acres Under Construction Getaway House Private Getaway builds tiny houses, places them on beautiful land and rents them to city dwellers looking to escape the digital grind and test-drive tiny house living. 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HV-503 4112.19 HV-503 4112.19 HV-504 4164.11 DIRT DIRT DIRT ',57 ',5 7 ',5 7 ',57 ',57 ',57 ',57 ',57 $63+ $63 + BASISOFBEARING N0°03'25"E 1336.35' (1337.16')R2 N89°58'34"W 1330.03' N0°06'28"W 1338.07' BM705.303585.81 MOBILE BATH POD, CONSISTS OF (2) MALE AND FEMALE TOILETS, LAVATORY, AND SHOWER WITH MINIMUM CLEARANCES, EACH ±40.91 ACRES PIP E S C A N Y O N R O A D 2 4 6 5 9 11 LIGHTING ALONG ROAD TO BE ILLUMINATED DURING HOURS OF DARKNESS, TYP. 10' LONG PICNIC TABLE, TYP. 8'x20' (160 SF) MOBILE SLEEPING POD, "MINI- CABIN," TYP. (1) PARKING SPACE PER LOT, TYP. PROPOSED 15' WIDE ILLUMINATED DIRT ROAD GATED FIRE ACCESS, POTENTIAL HIGHWAY DEDICATION AND PAVED ROAD AS DETERMINED BY DEPARTMENT OF LAND USE SERVICES MOBILE OPERATIONS POD EXISTING WATER TANKS, TO REMAIN EXISTING DIRT ROAD J U N IP E R T R AIL JUNIPE R T RAIL H U D S O N L A N E EXISTING DIRT ROAD CLEAR SCATTERED BRUSH @ CAMPGROUND PAD AND PARKING LOCATIONS. ENSURE MINIMAL IMPACT TO EXISTING LIVING VEGETATION, TYP. 13 12 14 15 16 17 18 19 20 21 22 23 24 25 26 2830 2729 32 34 31 33 POTENTIAL HIGHWAY DEDICATION AND PAVED ROAD AS DETERMINED BY DEPARTMENT OF LAND USE SERVICES REFUSE / RECYCLING STORAGE AREA, ALLOW FOR DOUBLE BIN CAPACITY EXISTING GATE EXISTING GATE PROPOSED 15' WIDE ILLUMINATED DIRT ROAD CONNECTING HUDSON LANE TO JUNIPER TRAIL GATED FIRE ACCESS, POTENTIAL HIGHWAY DEDICATION AND PAVED ROAD AS DETERMINED BY DEPARTMENT OF LAND USE SERVICES EXISTING DIRT ROAD CURTIS DRIVE CURTIS DRIVE 3 PROPOSED SEPTIC FIELD WATER SPIGOT, TYP. DEEP TEST HOLE PROPOSED WELL GRAVITY FED WATERLINE TO SUPPLY SPIGOTS, BATH AND OPERATIONS POD GRAVITY FED WATERLINE TO SUPPLY SPIGOTS, BATH AND OPERATIONS POD EXISTING RESIDENCE FOUNDATION AND FIREPLACE, TO REMAIN 1 7 8 10 35 EXISTING DIRT ROAD OR TRAIL PROPOSED DIRT ROAD TYPICAL CAMPGROUND PAD LAYOUT ~160 SF, RIVA CERTIFIED NON-MOTORIZED CAMPER STANDARD PARKING SPOT TYPICAL 10' LONG PICNIC TABLE DASHED LINE DENOTES GENERAL LOT BOUNDARY ROAD TYPES WATER SPIGOT W/ HOSE BIB GRAVITY FED WATER LINE FROM PROPOSED WELL PROJECT NO.:DATE: REVISIONS: ( ' & % $ STAMP ( ' & % $ 05DG$UFKLWHFWXUH 6:-HIIHUVRQ %OYG/RV$QJHOHV&$ 3 0 & ? 8 V H U V ? S D W U L F N ? ' R F X P H Q W V ? * H W D Z D \ B & HQ W U D / B S D W U L F N # P U D G F R P U Y W 00''<<<<YY### Pr o j e c t S t a t u s Unnamed GE T A W A Y - P I O N E E R T O W N 53 3 6 0 P i p e s C a n y o n R o a d A01.016&$/( 352326('6,7(3/$1 NORTH GENERAL SITE PLAN NOTES GRADING AT THE BUILDING SHALL HAVE A 5% MINIMUM SLOPE AWAY FROM THE BUILDING FOR A MINIMUM OF 10'-0”, UNO. CONCRETE SHALL BE SLOPED 2% AWAY FROM BUILDING. FOUNDATION TO BE 6” ABOVE FINISHED GRADE UNO. ALL CONNECTIONS FROM CITY STREETS TO THE BUILDING ARE TO BE PROVIDED UNDER THIS CONTRACT. CONTRACTOR TO VERIFY CITY STANDARDS FOR ROAD, CURB, UTILITY AND SIGNAGE REQUIREMENTS. ALL EXTERIOR SIDEWALKS, STAIRS AND LANDINGS TO HAVE POSITIVE DRAINAGE BUT NO MORE THAN A MAXIMUM OF 1/4” SLOPE PER FOOT TO ALLOW POSITIVE DRAINAGE. ALL STAIRS AND RAMPS TO HAVE A LANDING OF 48 INCHES LONG (MINIMUM) AT THE TOP AND BOTTOM WITH A MAXIMUM SLOPE OF 1/4” PER FOOT. ALL HARDSCAPE TO BE A MINIMUM OF 4" THICK AIR ENTRAINED CONCRETE OVER 6” ROAD BASE, UNO, AND ALL SIDEWALKS SHALL BE NO LESS THAN 5'-0" WIDE, UNO. FINISH GRADE OF SOFTSCAPE SHALL BE 2” UNIFORMLY BELOW PAVING SURFACES UNLESS NOTED OTHERWISE. LIGHT POLE BASE IN ALL LANDSCAPE LOCATIONS TO BE 6” ABOVE FINISHED GRADE, BE LOCATED AT LEAST 36” FROM FACE OF POLE BASE TO BACK OF CURB AND HAVE A CONCRETE MOW STRIP PER DETAIL X/X. VERIFY LOCATION ON SITE WITH ARCHITECT PRIOR TO ANY INSTALLATION. LIGHT POLE BASE IN ALL PAVED LOCATIONS TO BE 36” ABOVE FINISHED GRADE. VERIFY LOCATION ON SITE WITH ARCHITECT PRIOR TO ANY INSTALLATION. COORDINATE ORIENTATION OF FIRE HYDRANT OUTLETS WITH THE FIRE MARSHALL'S OFFICE PRIOR TO THE FINAL INSTALLATION OF THE HYDRANT ASSEMBLY. SEE LANDSCAPE DRAWINGS FOR ALL SIDEWALK FINISHES AND JOINT DIMENSIONS. SEE LANDSCAPE PLANS FOR ALL PLANT MATERIALS. SEE CIVIL FOR GRADES. ALL INSULATION MATERIALS SHALL BE CERTIFIED BY THE MANUFACTURER AS COMPLYING WITH THE CALIFORNIA QUALITY STANDARDS FOR INSULATION MATERIAL. DOORS AND WINDOWS BETWEEN CONDITIONED AND UNCONDITIONED SPACE SHALL BE FULL WEATHER-STRIPPED. AN APPROVED SEISMIC SHUTOFF VALVE WILL BE INSTALLED ON THE FUEL GAS LINE ON THE DOWN STREAM SIDE OF THE UTILITY METER AND BE RIGIDLY CONNECTED TO THE EXTERIOR OF THE BUILDING OR STRUCTURE CONTAINING THE FUEL GAS PIPING. CONTRACTOR SHALL PROVIDE, ERECT AND MAINTAIN ALL TEMPORARY BARRIERS AND GUARDS, AND ALL TEMPORARY SHORING AND BRACING AS REQUIRED BY ALL CITY AND STATE REGULATIONS. CONTRACTOR SHALL PROVIDE ADEQUATE WEATHER PROTECTION FOR THE BUILDING AND ITS CONTENTS DURING THE COURSE OF WORK. CONTRACTOR TO PROVIDE TEMPORARY POWER POLE AND METER FOR THE DURATION OF THE WORK. CONTRACTOR TO MAINTAIN TEMPORARY LIGHT AS REQUIRED FOR THE DURATION OF THE WORK. CONTRACTOR SHALL PROVIDE TEMPORARY SANITARY FACILITIES AS TO LEAST IMPACT NEIGHBORS AND AS DIRECTED BY CITY REGULATIONS. ENSURE ALL SUB-SURFACE DRAINAGE AND CONDUIT CLEAR EXISTING AND FUTURE TREE ROOT SYSTEMS, ROUTE AS NECESSARY TO ENSURE CLEARANCE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 6&$/( 6,7(3/$1/(*(1' m-rad.com BEIJING CENTRAL BUSINESS DISTRICT MASTERPLAN Beijing, China Status: Proposal HARBIN OPERA HOUSE Harbin, China Completed: 2016 HUAXI MASTER PLAN FOR A NEW CITY Huaxi, China Status: Proposal BAISHUIZHAI HOT SPRING RESORT MASTER PLAN Guangzhou, China Status: Under Construction HUANGSHAN TAIPING LAKE RESORT Huangshan, China Completed: 2014 BEIJING WUJIACAN MASTER PLAN Beijing, China Status: Proposal PAST WORK SELECTED PAST PROJECTS2.10 m-rad.com37 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status MAD Matthew Rosenberg Project Designer Masterplan Proposal BEIJING CENTRAL BUSINESS DISTRICT MASTERPLAN Beijing, China m-rad.com38 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status MAD Matthew Rosenberg Project Designer Cultural District Master Plan Complete 2016 HARBIN CULTURAL DISTRICT MASTERPLAN Harbin, China m-rad.com39 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status Emergent Matthew Rosenberg Project Designer New City Masterplan Proposal HUAXI MASTER PLAN Huaxi, China m-rad.com40 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status Pure Matthew Rosenberg Project Designer Resort Master Plan Under Construction BAISHUIZHAI HOT SPRING RESORT MASTERPLAN Guangzhou, China m-rad.com41 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status MAD Matthew Rosenberg Project Manager Resort Master Plan Completed 2016 TAIPING LAKE HUANGSHAN MASTERPLAN Huangshan, China m-rad.com42 Associated Offi ce Associated M-Rad Staff Associated Staff Role Program Status MAD Matthew Rosenberg Project Designer Master Plan Proposal BEIJING WUJIACAN MASTER PLAN Beijing, China m-rad.com43 DEVELOPER PARTNER OLIVER COMPANIES olivercompanies.com OLIVER COMPANIES, Inc. is the result of a partnership between father and son. We believe in supporting those that supported us; our partners, team members, and communities. We have a duty to use our success to ensure their success. For our partners, this means living up to our promises, delivering predictable returns, and doing so with transparency. For our team members, this means understanding their strengths and weaknesses and allowing them to play to their strengths, as well as to provide advancement opportunities. For our communities, this means encouraging a higher standard of living by supporting initiatives that promote economic prosperity and a higher quality of life. We specialize in Hospitality & Multi-Family projects. We are strategic in our thinking, decisive in our decision making, opportunistic in our approach, and our handshake is as good as our signature. We invest in real estate projects in rising tide markets; rather than making decisions today based on 5 years out, we look 20 years out. If that market has strong prospects 20 years out, it will also have strong prospects 5 years out. Swimming with the current has always increased our ROI. We look at Opportunity Cost, the value of the next best option. When comparing two potential sites, one in a remote area verses another in a densly populated urban area, such as San Francisco, we will choose places like San Francisco. When we develop, the broader our vision, the greater our ROI and growth potential. 3.1 m-rad.com44 SETH OLIVER OLIVER COMPANIES | PRESIDENT & CEO olivercompanies.com SETH OLIVER oversees the operation of Oliver Companies, Inc. He leads the development team in acquiring and developing quality income-producing properties. He received his Business Administration degree from the College of Saint Scholastica. He enjoys working out, snowboarding, is a “foodie”, and aviatior. Seth lives in Duluth with his wife and 2 daughters. KENT OLIVER OLIVER COMPANIES | CHAIRMAN of the BOARD olivercompanies.com KENT OLIVER’s primary focus is new construction projects. Responsible for partnership administration and investor relations, he diversifi ed Oliver Companies, Inc. into retail and service oriented businesses and is the senior developer & consultant to the development team. Mr. Oliver is a certifi ed Journeyman Bricklayer who has developed over 50 income producing properties since 1969. He is also a certifi ed Property Manager, and maintains a Minnesota Real Estate Broker’s license. Mr. Oliver received his degree from the University of Minnesota and is a member of the UMD Alumni Association. He is a member of Rotary International-Skyline, the Economic Development Committee, Duluth Chamber of Commerce, Superior Chamber of Commerce, and Housing Task Force. He was the past president of the Antique Automobile Club, Duluth Regional Care Centers, and Grace Lutheran Church. Mr. Oliver is an avid collector of late 1960’s era muscle cars. m-rad.com45 BREEZY POINT RESORT Breezy Point, MN, USA HILTON GARDEN INN Miami, FL, USA EMBASSY SUITES Brooklyn Center, MN, USA SELECTED PROJECTS OLIVER COMPANIES olivercompanies.com 3.1 m-rad.com46 Developer Program Status Client Budget Oliver Companies Resort Hotel Completed 1985 OCI $60 Million BREEZY POINT RESORT Breezy Point, MN, USA For over 90 years Breezy Point Resort has built its reputation as the Minnesota 4-season vacation destination for families, golf groups, conferences and weddings. Our Minnesota resort guests from throughout the Midwest and Canada enjoy their wide choice of lodging options, great food in 4 distinctively diff erent restaurants and superior service. Our state-of-the-art conference center hosts groups up to 450 with style. Let’s not forget golf vacations! Breezy Point Resort has 3 spectacular golf courses, including Deacon’s Lodge, the premier championship course in the Brainerd Lakes Area of Minnesota. Adding to the beauty of this Northwoods resort is our location…on the shores of crystal clear Pelican Lake. Whether you’re just looking for a relaxing hideaway or a recreation-fi lled vacation, Breezy Point Resort has it all and is only a half-tank away from the Twin Cities. m-rad.com47 HILTON GARDEN INN Miami, FL, USA Developer Program Status Client Budget Oliver Companies Hotel Proposed 2018 OCI $45 Million Our ground-up Miami hotel, just minutes from Miami airport, and off ers access to beaches and attractions. Featuring a 100-acre natural lake with jogging trail, outdoor pool and tennis and basketball courts, spacious guest rooms and suites. Our 30,000ft² of meeting space in the Miami Blue Lagoon business complex is just across from the airport. This hotel campus was in the Top 20 of all Hotels in Miami 2015 by US News & World Report. m-rad.com48 EMBASSY SUITES Brooklyn Center, MN, USA Developer Program Status Client Budget Oliver Companies Hotel Completed 2009 OCI $35 Million The Embassy Suites Minneapolis hotel is directly attached to the historic Earle Brown Heritage Conference Center. This hotel in Brooklyn Center, MN provides access to both Minneapolis and St. Paul, and is situated 17 miles from the Minneapolis-St Paul International Airport. Located near a number of business corporations, this Brooklyn Center hotel off ers a wide range of versatile meeting and banquet space for up to 280 guests. It features spacious two-room suites with separate living areas, a pool, whirlpool, and a modern 24-hour fi tness center. m-rad.com49 LANDSCAPE ARCHITECTURE RANA CREEK ECOLOGICAL DESIGN ranacreekdesign.com RANA CREEK is a renowned ecological design fi rm specializing in landscape architecture, environmental planning, native plant propagation, landscape construction and habitat restoration. A passion for true innovation and a fi delity to natural systems drives our mission to design and build landscapes that connect people, places, culture and ecology. Rana Creek integrates ecological principles and processes into the built environment to ensure that site systems for water, energy, food and other resources are designed to complement and benefi t the living systems and communities they are a part of. Rana Creek applies a unique ecological design framework on a range of scales in both urban and natural environments, driven by goals to improve building performance, biodiversity, habitat, watershed health, water conservation, carbon emissions reduction, human wellness, cultural and aesthetic value, return on investment and other benefi ts. Rana Creek off ers expertise through all stages of project development, from compliance and permitting to construction documentation and project implementation. Our client list is comprised of world-renowned architects, developers, municipalities, non-profi ts, land- use planners, government agencies, industrial clients and community associations. 3.2 m-rad.com50 PAUL KEPHART has a keen ability to see the geologic, natural and cultural history embodied in a landscape, and simultaneously imagine its most vibrant future. For thirty years, Paul has given himself to observation, scientifi c understanding and intimate relationship with the great diversity of natural systems here on the Central Coast of California – from coastal terrace prairie to chaparral, serpentine grassland, coastal scrub, oak woodland, redwood forest, wetland, dune, and bluff . It is Paul’s deepest joy to design landscapes that integrate regionally adapted biodiversity and goal-driven ecological function into both restored wildlands and the built environment. As Principal Ecologist and Designer at Rana Creek, Paul is sought after as a pioneer and innovator of living architectural systems, a thought-leader in ecological design, and a dedicated horticulturalist. Paul has consulted on many groundbreaking and iconic projects, including large-scale living roofs at the Croton Water Treatment Plant, Vancouver Convention Center, Transbay Terminal, and California Academy of Sciences; impressive living walls at 8800 West Sunset Boulevard and Fiddler’s Green Amphitheatre; site and master plans for Deacero 3M, AltaSea, JNBY Headquarters, and the island of Lanai; and the cumulative restoration of many thousands of acres of grassland, wetland and coastal landscapes in the Western U.S. Paul regularly shares his expertise and passion at public lectures and keynotes for USGBC, ASLA, Bioneers, Cities Alive, International Green Roof Conference, Green Build, and various universities in a single day. PAUL KEPHART RANA CREEK ECOLOGICAL DESIGN | PRESIDENT, CEO PRINCIPAL ECOLOGIST AND DESIGNER, ASLA ranacreekdesign.com m-rad.com51 MATTHEW YURUS is a fourth-generation Northern Californian with 17 years of experience as a registered Landscape Architect and over 20 years experience in the design industry. Matt brings an exceptional level of insight and skill to his position as Senior Landscape Architect at Rana Creek Design. Matt has designed and coordinated numerous large scale projects from permitting through to completion, with experience in residential, commercial, agricultural, and ecological design, including natural resource planning and habitat restoration. He has developed a strong reputation as an outstanding and enthusiastic site designer and mentor. Matt enjoys both the creative and technically detailed aspects of design, and works to incorporate ecological design principles into traditional landscape architecture practices. Matt’s previous work as a wine-maker and viticulturist provided him with experience and insight into irrigation system design and management, propagation techniques, and agroecological restoration, which allows him to further excel in his current role at Rana Creek. When not in the studio, Matt continues to pursue his interest in wine-making or can be found hiking or skiing in his favorite native California landscapes. MATTHEW YURUS RANA CREEK ECOLOGICAL DESIGN SENIOR LANDSCAPE ARCHITECT, ASLA ranacreekdesign.com m-rad.com52 JESSICA NEAFSEY exercises a passion for true innovation and a fi delity to natural systems to drive Rana Creek’s mission to connect people, places, culture and ecology. A diverse background that includes aerial photography and agriculture lends her a unique geographic sensibility and a deep affi nity for close observation of nature at the macro and micro scale. As Project Manager at Rana Creek, Jessica has helped execute an island-wide sustainability plan; master planning projects for public and private clients, and ecological site design. Through interdisciplinary collaboration and the principled integration of cultural, ecological and aesthetic values, she enjoys creating landscapes that are authentic, vibrant, and enduring. JESSICA NEAFSEY RANA CREEK ECOLOGICAL DESIGN PROJECT MANAGER AND LANDSCAPE ECOLOGIST, ASLA ranacreekdesign.com BLAKE JOPLING has a design approach that integrates technology, architecture and ecology to create beautiful and functioning landscapes. His diverse project background includes: master planning, site planning, residential, civic and commercial landscape design, restoration planning and water reuse system design. Blake has led many projects where graywater or water reuse were critical to the overall design and always tries to fi nd a way for these water systems to serve an ecological role for the project. BLAKE JOPLING RANA CREEK ECOLOGICAL DESIGN PROJECT MANAGER AND LANDSCAPE DESIGNER, ASLA ranacreekdesign.com m-rad.com53 CALIFORNIA ACADEMY OF SCIENCES San Francisco, CA, USA 8800 WEST SUNSET BLVD. LIVING WALL West Hollywood, CA, USA ALTASEA MARINE RESEARCH AND INNOVATION CENTER Port of Los Angeles, San Pedro, CA, USA SELECTED PROJECTS RANA CREEK ECOLOGICAL DESIGN ranacreekdesign.com 3.2 m-rad.com54 Firm Program Size Status Client Rana Creek Ecological Design Living roof 160,000 SF Completed 2008 California Academy of Sciences CALIFORNIA ACADEMY OF SCIENCES San Francisco, CA, USA In the heart of one of the country’s largest urban parks, the California Academy of Sciences is a LEED Platinum Museum in San Francisco’s Golden Gate Park. Rana Creek worked with Renzo Piano Building Workshop, SWA Group, ARUP Engineering, and the Academy to create a living roof that covers 160,000 square feet over four steeply-sloped domes replicating the surrounding rolling hills. The roof is planted with over 50 plant species native to San Francisco. Rana Creek Nursery grew all of the plants in the biodegradable trays invented for the project. The California Academy of Sciences is unique amongst natural history museums in its dedication to combining research and education under one roof. m-rad.com55 Firm Program Size Status Client Rana Creek Ecological Design Living walls 2,650 SF Completed 2015 IAC 8800 WEST SUNSET BLVD. LIVING WALL West Hollywood, CA, USA California native plants grace a sculptural living facade at the IAC headquarters. This striking living wall canopy designed by Rios Clementi Hale Studios “carries the landscape up the sides of the building, inspiring a connection to the nearby California hillside,” in the midst of the busy Sunset strip. Rana Creek contributed planting and irrigation system design. Considerations such as bloom time, foliage contrast, and habitat opportunities were central to the selection of plant species. The innovative water reuse system supplies 100% of the wall and landscape irrigation demand from the building’s de-watering system. m-rad.com56 BEEBBEBRRRRTTTTHHHHH 55555666666666 Seawater Backwash Recovery Wetland • Freshwater wetlands filter nutrient rich back- wash water prior re-use for filter backwash, irrigation or other non-potable uses. 5 Tidal Water Feature • Treated seawater is returned to the ocean through tidal pools that are integrated into the landscape and architecture. 6 Floating Kelp Beds • As the final step in the seawater pro- cess, seawater from the tide pools move through a series of kelp beds. 7 Seawater Wetlands• Final Treatment of Seawater Filtration Plant backwash • Residual nutrients from aquaculture process used to grow native saltwater wetland plant species • Wetland treated seawater is returned to the East Channel through constructed tide pools 4 Integrated Multi-Trophic Aquaculture System• Using highly concentrated nutrient rich water from the Seawater Filtration Plant and backwash water from the post waste treat- ment systems • Tiered aquaculture system raises mollusks and shellfish, taking advantage of waste nutrients from seawater filtration processes Elevated Head Tanks • Filtered seawater stored in elevated tanks for use on demand in research tanks.Seawater Filtration Plant • Filters 1,000,000 gal of seawat• Creates 5,000-10,000 gal of nu filter backwash water per day 12 Seawater System Wastewate SEAWATER LIVING SYSTEMS LEGEN Integrated Multi-Trophic Aquaculture System Filtered Seawater return to o Seawater Wetlands Freshwater Wetlands ttutu 3 Firm Program Size Status Client Rana Creek Ecological Design Campus 35 acres Completed 2014 Annenberg Foundation ALTASEA MARINE RESEARCH AND INNOVATION CENTER Port of Los Angeles, San Pedro, CA, USA Rana Creek collaborated with William McDonough + Partners on a conceptual master plan for a new, world-class, urban marine research campus in the Port of Los Angeles. The campus will host a variety of elements including research labs and facilities, accessible waterfront space, an interpretive center, tidal habitat gardens, classrooms, a public promenade and open space. Water utilized for research purposes will be continually recycled through a series of native habitat gardens designed by Rana Creek, which will include vertical aquaponics systems, living roofs, freshwater and saltwater constructed wetlands, and interpretive elements. M-RAD ARCHITECTURE 5901 Blackwelder Street Culver City, CA 90232 MATTHEW ROSENBERG projects@m-rad.com M: 323.202.0950 20370 Town Center Lane, Suite 100 Cupertino, CA 95014 RESPONSE TO REQUEST FOR QUALIFICATIONS The Development of a Waterfront Hotel Project at Oyster Point March 30, 2017 2 I. Summary of Firm’s Qualifications With a blend of professional experience in the technology sector, real estate development sector, and public sector, Shashi is ideally positioned to execute on the strategy of developing market- leading hotel properties proximate to technology, innovation, and corporate clusters. In this type of location, Shashi commits itself to bringing world-class experiences to business travelers through appropriate hotel product choices for each respective market area and customer base, offering cutting-edge technology, modern and oversized fitness centers, vibrant bar/lounge areas, top quality and organic food options, and supporting amenities. Shashi Group was honored with Starwood’s President’s Award in 2014. Shashi’s strategy is exemplified in its current development project, the 200 room Shashi Hotel in the North Bayshore District of Mountain View, which is located adjacent to the worldwide headquarters of Google. Mountain View’s cumbersome Precise Plan Process for the North Bayshore was created to handle the entitlement of the expansions of corporate campuses for Google, Linked In and Microsoft, but through extensive direct work with the City Shashi was able to get its hotel project fully entitled under the Precise Plan. Shashi’s development plan here is for a high quality, contemporary destination hotel with supporting amenities to include a world class indoor-outdoor bar and restaurant, a lobby designed to be a magnet for casual executive meetings, leased restaurant and café space and conference space. Construction is slated to begin in June of 2017 with the hotel to open in the fourth quarter of 2018. Exhibits illustrating the hotel are attached in Appendix A. Shashi’s portfolio of owned hotels includes the following: Hotel Opening or Acquisition Date Room Count Summary of Development Work Status Aloft Cupertino January 2013 123 keys Assembled land, obtained entitlements, and built hotel from the ground up Operating Aloft San Jose Cupertino August 2014 81 keys Acquired as an independent subject to ground lease, obtained a Starwood brand, made a significant renovation and repositioned as an Aloft to maximize RevPAR Index Operating Aloft Sunnyvale March 2015 85 keys Acquired as an economy hotel in downtown, completed a gut renovation, and obtained a Starwood brand Operating 3 Nest Palo Alto December 2015 54 keys Acquired as a limited service hotel then transformed hotel and redesigned entire guest experience around a welcoming outdoor patio, wine bar, and contemporary guest rooms Operating Hilton Garden Inn January 2016 160 keys Upon acquisition successfully repositioned corporate negotiated rates at market levels; in March 2017 completed a patio expansion and creation of indoor- outdoor space at the bar area, and doubled size of fitness room Operating Shashi Hotel Shoreline Mountain View Q4 2018 200 keys Acquired land, designed hotel, acquired entitlements Construction to begin in June 2017 Element Hotel Mountain View 120-160 keys Designing a new construction extended stay hotel within the parking lot of the Shashi owned Hilton Garden Inn Mountain View Initial Planning Stages Key Attributes of Shashi Group Hotels: Industry-leading Technology Infrastructure: Aloft Cupertino was one of the first hotels in North America to offer Apple TV in every guestroom and full implementation of smart, RFID technology for Starwood’s “Smart Check-in” program; other enhancements include 5x brand standard bandwidth, Apple IPad concierge stations, and remote control/monitoring of guestroom climate control. LEED Silver Design & Construction Health & Fitness Amenity Focus: Oversized fitness centers with state-of-the art equipment; organic, eclectic, and international food offerings; swimming pools at multiple locations. 4 Vibrant Atmosphere: Oversized bars and lounges with expanded food menus; often times indoor/outdoor patio spaces with lounge seating, fire pits, water features and shade structures; special event offerings including regular live entertainment; numerous and varied seating/gathering places with full technology and WIFI support; private meeting/function space. World-Class Location: Central locations within the dynamic Silicon Valley providing efficient access and full amenities for the global business traveler; often located adjacent to corporate campuses such as Apple, Google, or within walking distance of Stanford Research Park; ample shopping, restaurant and entertainment offerings nearby; at select locations, complimentary shuttles. II. Overview of the Proposed Development Team Team Representative: Dipesh Gupta, CEO – T: 408.621.3094 Project Oversight: Jim Hansen, Chief Development Officer – T: 916.416.6243 Project Manager: Brian Froelich, AICP, Vice President – T: 408.887.0255 Agency Liaison: Jean DiMaria, Director of Development – T: 408-816-8762 Shashi’s in-house team is made up primarily of professionals with extensive experience in hotel entitlements, design and construction. Team biographies are attached as Appendix C. Dipesh and Manish Gupta, Co-Founders, have worked extensively with the cities of Cupertino, Sunnyvale, Palo Alto and Mountain View, forging relationships with City Council that led to Council approval for Shashi’s hotel projects. They have also outlined the product and design vision for each of Shashi’s hotels. Jim Hansen, Chief Development Officer, has been involved in the new construction of over 75 hotels and renovation of another 30 hotels, restaurants and conference centers in his 34 year+ hotel career. Mr. Hansen built the Hilton Garden Inn and Larkspur Landing on Gateway Boulevard in South San Francisco in 1999 and was involved with the operation of both, the HGI through 2005 and the Larkspur Landing through 2014. Brian Froelich, Vice President of Development, led Shashi’s two year entitlement efforts under a Precise Plan of the Shashi Hotel Mountain View in the North Bayshore District. He has over 10 years public sector experience and has worked in City Planning Departments for the cities of Belmont and Los Altos Hills. Fred Weaver, Director of Design and Construction, has over 30 years experience in multi-million dollar development and construction projects, including work on the San Jose Hilton Homewood Suites and 12 hotels for Homestead Village Hotels. Jean DiMaria, Director of Development and Analytics, has 17 years of experience in hotel development and acquisitions. She worked with the Redevelopment Agency of Santa Rosa on the development of the Hyatt Vineyard Creek Hotel and Conference Center on a brownfield site 5 and with the Presidio Trust of San Francisco on the negotiations for construction of a new hotel on the Main Parade Grounds. Jared Butterworth, Project Manager, has over 15 years of experience in project management, including the finish construction work of the Ritz-Carlton Highlands Lake Tahoe. He has just completed his third major renovation project with Shashi. On its projects Shashi has worked with several key Bay Area hospitality consultants, and would likely work with one of the following here: Gensler Architects AXIS Architecture and Design Arcsine – Architecture and Design HBA III. Financial Capacity The financial information requested for this RFQ response is Confidential and Proprietary Commercial Information. It is being provided under separate cover and Shashi Group requests that it be kept confidential at all times. IV. Proposed Preliminary Development Concept and Vision Shashi Group proposes a development concept of two high quality hotels to serve the robust biotech industry of South San Francisco, joined by a lobby, meeting space and supporting restaurants that would serve the local area as well. The existing biotech cluster with over 200 biotech companies is underserved for high quality hotels as hotel development in the area has not kept pace with recent construction of office and R&D space. The site being proposed by the City of South San Francisco is an excellent destination for a landmark hotel and meeting space, adjacent to Genentech, across from the Ferry Terminal, surrounded by water and the San Francisco Bay Trail. Of the two hotels, one would be a 200-room upper upscale full service hotel and the other would be a 120-150 room upscale extended stay hotel. The full service hotel may carry a Westin brand, and has already been preliminarily approved by Marriott for such, or possibly a boutique independent, and the extended stay hotel may carry an Element brand or may be independent. The two hotels would share meeting space on the order of 5,000-15,000 sf, with the largest room at 5,000 sf. The hotels would be built to LEED Silver standards. The two hotels would look architecturally distinct from one another, would blend well with their surroundings, and would also include building façade articulation consistent with their surroundings. The development would maximize the benefits of the natural surroundings, the views, and the park setting. It would include outdoor spaces with patios, a pool and spa, cabana and other features to create a unique Shashi Hotel experience. Partnering with one of Shashi’s favored architectural firms, a true destination hotel, conference center and F&B operation will be created to serve the Oyster Point market for years to come. 6 The F&B program at the hotels would include: a shared hotel restaurant serving breakfast and dinner a lobby bar that will extend into the hotel courtyard and pool area, that will be open-air in good weather, serving a full drink menu and a selection of light bar snacks a lively leased restaurant facing Marina Boulevard and accessible from both the hotel and the Oyster Point area that will serve the multitude of area employees seeking lunch and dinner options a leased café/coffee bar positioned to serve local employees or those on the San Francisco Bay Trail or coming from the Ferry Terminal nearby in-house banquet operations for the meeting space Grab and Go food pantry featuring fresh salads and sandwiches as well as drinks and snacks, accessible to hotel guests, conference attendees, and to area employees and visitors Room service operations for the hotels Other hotel amenities shared between the two hotels would include expansive fitness center, outdoor pool with patio, steam and sauna, and guest laundry. The windows would be sound reducing glass to protect guests from the noise of nearby airplanes and the nighttime operations at the UPS distribution center. The configuration may be: Full service hotel 200 rooms 5 stories 120,000 square feet Extended stay hotel 120-150 rooms 5 stories 60,000 square feet Conference Space 5-8 rooms 1 story 10,000 square feet Lobby and Shared Amenities 1 story 10,000 square feet Total 200,000 square feet Parking would be accommodated with surface parking, possibly 225-275 spaces on the site itself. As an airport hotel the required parking is only 1 space per 3 rooms, but the size of the meeting space may add a city requirement for a significantly larger number of parking spaces to be added. We may explore a Shared Parking reduction between the hotel and meeting space, or explore the potential to develop a parking agreement for use of the city parking lots at the surrounding marinas during times of high conference demand. V. Optimal Location and Orientation of Proposed Improvements The hotels would be oriented with guest room views to the north and south to maximize the excellent views of the San Francisco Bay. The site would be designed in a corporate campus style with a strong curb appeal from both Marina Boulevard and from the San Francisco Bay Trail at the rear. Parking lots would be located to the sides of the hotel; however, special attention would be given to the open space on either side of the hotel so that the hotel incorporates well into the overall setting. 7 The lobby entrance would face Marina Boulevard, but access to the hotel and its amenities would be available from the Bay Trail at the rear so that local employees might easily stop in for lunch. The event space would include an outdoor component, but special attention would be given to create outdoor space shielded from the wind so prevalent on the site every afternoon. While surface parking may take up much of the site, effort would be made to landscape the remaining green space with native species and bay friendly plant materials. A very preliminary conceptual layout of the hotel site follows, which is subject to change upon further architectural review of the site. VI. Additional Information Shashi Group looks at this as an exciting opportunity to grow in line with its strategy. It is a nearby market featuring a corporate campus, similar to the environments in which Shashi has been successful to date. Shashi maintains a hotel development and asset management team in Cupertino, so the South San Francisco location is easily accessible. Shashi has a relationship with the Marriott Development Team. Marriott has expressed interest in working with Shashi on this location as a dual branded Westin and Element. Their Letter of Interest is attached as Appendix B. 8 VII. List of Appendices APPENDIX A – SHASHI HOTEL MOUNTAIN VIEW DRAWINGS APPENDIX B –LETTER OF INTEREST FROM MARRIOTT INTERNATIONAL APPENDIX C – SHASHI GROUP BIOGRAPHIES APPENDIX D – SHASHI PORTFOLIO DESCRIPTIONS 9 APPENDIX A – SHASHI HOTEL MOUNTAIN VIEW DRAWINGS Shashi Hotel Mountain View Exterior Shashi Hotel Mountain View Floor Plan 10 Shashi Hotel Mountain View Front Desk Shashi Hotel Mountain View Lobby Lounge 11 Shashi Hotel Mountain View Indoor Outdoor Bar Shashi Hotel Mountain View Guest Room 12 APPENDIX B –LETTER OF INTEREST FROM MARRIOTT INTERNATIONAL March 30, 2017 Mr. Dipesh Gupta Shashi Corporation 10050 Wolfe Rd, Ste sw1-276 Cupertino, CA 95014 RE: Proposed Westin Hotel and Element Hotel in South San Francisco, Californa Good day Mr. Gupta, Thank you for your interest in our Westin and Element Brands, we greatly value and look forward to continuing and growing our relationship with Shashi Corporation. We understand that you are proposing to develop a full-service Westin Hotel and extended-stay Element by Westin Hotel located at Oyster Point in South San Francisco, CA. After a review of the location, we welcome the opportunity to continue working with Shashi Corporation on the proposed development of this property as both a Westin and Element Hotel. Regarding our Westin Brand - every aspect of the Westin experience is designed with travelers well-being in mind, ensuring that guests leave feeling better than when they arrived. Through innovative, signature products and programs combined with instinctive, personal service and intuitive design, Westin delivers on each guest’s every need, driving unmatched guest loyalty and industry-leading performance. With a remarkable portfolio of over 200 properties in nearly 40 countries, Westin continues to grow strategically, with almost 50 properties in the pipeline. Whether innovating from the ground up or revitalizing a property, owners are well equipped to produce a world-class property with robust returns. With respect to our Element Brand - Element Hotels offers the essentials of balanced travel for today’s standard and longer-stay traveler who does not want to compromise on comfort and design. Element Hotels is grounded in smart, environmentally friendly thinking, from its products, services and programs to its physical spaces with flowing, multipurpose areas that maximize space. Its vibrant, optimistic energy is contagious and has developers signing on and guests eagerly approving with soaring satisfaction scores. Marriott International, Inc. is a leading lodging company based in Bethesda, Maryland with more than 5,600 properties, in 85 countries and territories. For more than 59 years, the company has been committed to guest satisfaction. Upon review of the market, we believe this to be a great opportunity to offer both our Westin and Element Brands. Please let me know if there is anyone you would like for us to meet with to share the Brand stories and their overall performance within the upper-upscale, full service and extended-stay hotel segments. Thank you again for your interest in Marriott Internat ional and our Westin and Element Brands, and please let us know how we can assist in progressing discussions to move forward with this very exciting project. We look forward to working with you again on another successful Shashi hotel development project. Kind Regards, Tiffany Cooper Robert Sanger Vice President, Marriott Full Service Brands Vice President, Marriott Select Brands **Please note that this project will be subject to our standard due diligence and corporate approval process. This is a non-binding letter which speaks only to our level of interest and in no way should be interpreted as approval of a deal or execution of an agreement. Marriott International, Inc. Lodging Development Tiffany Cooper, Vice President, Development – Marriott Full Service Brands Robert Sanger Vice President, Development – Marriott Select Brands 13 APPENDIX C – SHASHI GROUP BIOGRAPHIES Shashi Group’s team of experienced professionals comes from a wide-variety of sectors (including technology, real estate, financial, hospitality, public, and construction) and provides diversified internal expertise in such areas as acquisitions, planning, design, construction and development, project management, finance, and asset management. The team has developed a core competency in hotel- related properties, with an understanding of their unique attributes. The team’s broad set of expertise enables Shashi Group to continue to be a cutting-edge leader in the hospitality market. Dipesh Gupta, Co-Founder and Chief Executive Officer Dipesh Gupta co-founded Shashi Group, along with his brother, Manish Gupta. Mr. Gupta serves as the Chief Executive Officer, overseeing the company’s acquisition, development, operations, and investment functions. Under Mr. Gupta’s leadership, Shashi Group has experienced substantial, positive financial growth in a relatively short period of time. In 2014, Shashi Group received the prestigious Starwood President’s Award for exceptional achievement. With a focus on design, amenities, and technology, Mr. Gupta has built the Aloft Cupertino Hotel and The Nest in Palo Alto; and converted existing underutilized hotels in Sunnyvale and Cupertino into world class hotels. Shashi Group is nearing the start of construction of the Shashi Hotel Mountain View -- a 200 room hotel across the street from Google worldwide headquarters. Shashi Group is a significant force and a much sought-after and coveted partner in the Silicon Valley real estate and hotel development business. Prior to founding Shashi Group, Mr. Gupta was Director of Global CRM Solutions at Oracle, where he worked with Fortune 100 clients including AT&T, GE, Honeywell, EMC, and Sun to improve their business competitiveness by adopting leading industry practices and automating their end-to-end business processes. Prior to working at Oracle, Mr. Gupta was Director of E-Business at Fleet Boston Financial (Bank of America), where he was responsible for product development and marketing. During his tenure at Fleet, he led the development and launch of one of the most high-profile products at Fleet and Visa: Fusion, the first Visa smart card in the United States. He assembled and led a team of over 200 people spanning across ten companies to launch the product in record time and acquired over 200,000 new customers with the first two months of launch. Dipesh Gupta was born into a real estate business family in Dehradun, India. He received his BS in Engineering from Indian Institute of Technology, Roorkee, India—one of the most prestigious engineering colleges in India—and an MBA from Alfred Lerner College of Business & Economics, University of Delaware. Manish Gupta, Co-Founder and Chairman Manish Gupta co-founded Shashi Group along with his brother Dipesh Gupta. Manish Gupta serves as the company’s Chairman, overseeing the company’s acquisition, development, operations, and investment strategies. Under Mr. Gupta’s supervision, Shashi Group has experienced tremendous growth and financial success. Shashi Group’s portfolio of properties consistently achieve among the highest RevPARs (revenue per available room) and ADRs (average daily room rate) among comparable Silicon Valley hotels. 14 Prior to founding Shashi Corporation, Mr. Gupta was the Founder and Chief Executive Officer of Panache Services (2003-2008). Mr. Gupta grew Panache from a PowerPoint concept into a profitable software engineering services company, operating with development centers in the United States, India, and Australia. Mr. Gupta built world-class sales, global engineering, and support teams, and successfully led Panache against top global technology services companies to structure and deliver large multi-year blended-shore contracts with several leading technology companies, including Genesys (Alcatel-Lucent) Telecommunications, Premier Global Services, Intel, Herbal Life, Oracle, Sybase, and Amdocs. Before Panache, Mr. Gupta was an Officer and Executive Vice President of Operations and Delivery at Zamba (a NASDAQ listed company). Mr. Gupta helped transform Zamba from a niche IT player into a leading high-end CRM solutions provider. Zamba implemented over 300 Contact Center and Business Analytics solutions for Fortune 1000 clients, including Best Buy, GE Medical Systems, Blue Cross Blue Shield, BellSouth, Hertz, General Mills, Northrop Grumman, and Towers Perrin. Mr. Gupta also was responsible for developing strategic partnerships with several of the leading technology companies, such as Oracle, Genesys, Aspect, HP, Siebel, Cisco, Amdocs, IBM, and Business Objects (SAP). Mr. Gupta also previously worked with KPMG Consulting as the Global Director of CRM solutions and with Ernst & Young LLP in a variety of management roles focused on business development and delivery of CRM and ERP services to Global 2000 clients. Mr. Gupta also co-founded an engineering company in India focused on large government and defense projects in several cities, where he led a coveted reengineering and remodeling project with the Reserve Bank of India in Mumbai. Mr. Gupta received his MBA in Global Service Operations Management from William E. Simon School of Business, University of Rochester, and a BS in Computer Engineering from the National Institute of Technology, Karnataka. James A. Hansen, Chief Development Officer James A. Hansen serves as Shashi Group’s Chief Development Officer, overseeing hotel development, acquisitions, funding, and new business opportunities. Mr. Hansen has been involved in the hospitality industry for over 34 years. His experience encompasses virtually all disciplines of the hotel industry including all phases of hotel development and construction; site selection, negotiations, feasibility, permitting, design, project management, repositionings, historical renovations and furniture, fixtures and equipment specification, purchasing and installations. Mr. Hansen has been involved in the new construction of over 75 hotels and restaurants as well as the repositioning and renovation of another 30 hotels, restaurants and conference centers in multiple states. During one particular expansion phase Mr. Hansen oversaw the new construction development of 16 hotels in a 3- year period, five of which were Hilton Garden Inn hotels that were brand new prototypes for Hilton at the time. Mr. Hansen was a founding partner of Larkspur Hotels & Restaurants in Marin County California as an independent developer and operator in 1996. At Larkspur Mr. Hansen was the co-lead in the development of the upscale, independently owned and operated extended stay all-suite Larkspur Landing, Home Suite Hotel brand; the three star Larkspur Hotels limited service brand; and the 4 and 5 star full service Larkspur Collection brand. Before exiting the platform Larkspur owned and operated 23 hotels and 9 restaurants ownership and operations concentration in the San Francisco Bay Area. Earlier in his career Mr. Hansen was instrumental in the expansion of the Days Inn brand to the western United States when Days Inn was independently owned and operated by its founder Cecil B. Day. 15 During his career Mr. Hansen has managed at a senior level all areas of the hotel business including all phases of development, hotel operations, marketing, sales, IT, engineering, general counsel, revenue management and finance and accounting. His breadth of knowledge is truly unique in the industry. His focus on providing a high quality hotel product with exceptional guest satisfaction in a positive and supportive company culture helped propel Larkspur to an overall portfolio 4.5 Trip Advisor rating (out of 5), in the top 5 of all hotels ranked by Market Metrix guest satisfaction rankings and a perennial finalist in the Best Places to Work in the Bay Area. Larkspur’s financial performance excelled under Mr. Hansen’s leadership with RevPar Penetration Indexes exceeding 100 for the portfolio with some markets regularly exceeding 150. Mr. Hansen is a licensed Civil Engineer in the State of California earning his BS Engineering degree from California State University at Sacramento and his MS degree from Stanford University. He is a frequent contributor at hotel forums and conferences for industry leaders. Brian Froelich, AICP, Vice President of Development Brian Froelich serves as Shashi Group’s Vice President of Development, overseeing development opportunities and projects. Mr. Froelich is a native of the South Bay Area. He received a BS in City and Regional Planning from the College of Architecture and Environmental Design at Cal Poly, San Luis Obispo. He has worked in City Planning Departments for the Bay Area Cities of Belmont and Los Altos Hills. With over 10 years of public sector experience, he has worked in a management role on the full range and scale of development projects. Mr. Froelich’s municipal planning background includes project management of environmental issues and CEQA compliance, application of local planning codes, and working closely with Planning Commissions and City Councils. Mr. Froelich excels in project synthesis and communicating as an insider when working with local governments. He is a member of the American Institute of Certified Planners. In 2008 and 2009, he worked with the Shashi Group on the entitlements for the Cupertino Aloft project. In 2016 he led Shashi Group to successfully earning full City Council entitlement of its 200 room hotel in the North Bayshore District of Mountain View, a Precise Plan area. Fred Weaver, Director of Design and Construction Fred Weaver serves as Shashi Group’s Director of Design and Construction. Mr. Weaver has over 30 years of experience leading large-scale multi-million dollar development projects and corporate real estate initiatives across North America and Asia in hospitality, retail, and fueling. During his career, Mr. Weaver has managed all aspects of design and construction, due diligence, pre- development, entitlement management, project programming, acquisitions, and budgeting, with special expertise in ground up construction. Prior to joining Shashi Group, Mr. Weaver held development positions with OTO Development, LLC working on the San Jose Hilton Homewood Suites, and with Apple working in China and the United States. Additionally, Mr. Weaver developed projects for Hertz Corporation in the Western US and 16 Canada, and also Homestead Village Hotels (now Extended Stay of America) completing 12 West Coast hotel projects. Mr. Weaver is a California licensed Class B General Contractor. Originally from the Chicago area, he holds a Construction Management degree from Western Illinois University. Jared Butterworth, Sr. Project Manager Jared Butterworth is Shashi Group’s Sr. Project Manager. Mr. Butterworth has over 15 years of experience in project management, construction, contract management, project planning, and project coordination. Two of his recent projects include: RITZ-CARLTON HIGHLANDS LAKE TAHOE –$300 MILLION o Managed finish construction and punch process of five-star LEED Certified project including 170 hotel units and 23 whole-ownership units; o Managed construction of Manzanita restaurant from design to open. TRAILSIDE TOWNHOMES – $26 MILLION o Managed custom construction of sixteen, 3500+ SF, luxury townhomes, o Coordinated with design team, owners, and contractors to ensure high-quality, unique requirements met and exceeded individual owner expectation. Prior to joining Shashi Group, Mr. Butterworth was a Construction Administrator for NTPUD, where he managed all construction projects for all District involving an outside contractor. Mr. Butterworth was also a Construction Manager for East West Partners managing the design and construction five-start, top quality projects. Jean DiMaria, Director of Development and Analytics Jean DiMaria serves as Shashi Group’s Director of Development and Analytics. Ms. DiMaria has 17 years of experience in the hotel and hospitality industry and specializes in hotel transactions, financing efforts, investment evaluation and due diligence, financial and strategic analyses, hotel valuation, and property management. At Shashi Group she supports the Asset Management of the company’s portfolio. Prior to joining Shashi Group Ms. DiMaria was the Senior Director of Business Development for Larkspur Hotels and Restaurants (which owned and managed 23 independent hotels), managing the company's acquisition and development work. During her 10 years with Larkspur she served as project hub for multiple events in the hotel life cycle, including acquisitions, dispositions, refinancings and brand conversions. She developed the property management function for Larkspur, with 12 retail tenants in the portfolio whose combined annual rent revenue exceeded $2 million. Ms. DiMaria has a master’s degree in Hospitality Studies from New York University’s Tisch Center for Hospitality, Travel, and Tourism; and an Advanced Certification in Real Estate and Hotel Investments from Cornell University’s School of Hotel Administration. 17 Kevin Kanehiro, Controller Keven Kanehiro serves as Shashi Group’s Controller overseeing the accounting of the company. Prior to joining Shashi Group, Mr. Kanehiro served as Controller for United Site Services, Inc, the largest national construction site services company with annual revenues greater than $250 million. In his role at United, he was responsible for financial statement preparation, financial planning and analysis, taxes and audits and the financial integration and due diligence of acquisitions. Notable accomplishments at United include continuous improvement of cash flow, development of accurate forecasting models, reduction of sales and property tax liability and significant expense and headcount reduction from technology implementation, process streamlining, procedural improvements, vendor negotiations and internal controls implementation. Prior to United, he worked for Silicon Valley venture capital and technology companies. Mr. Kanehiro received his Bachelor's degree in Finance from the University of Colorado at Boulder and Master's degree from San Jose State University. Vanessa Bruckner, Staff Accountant Vanessa Bruckner is Shashi Group’s Staff Accountant. Prior to joining Shashi, Ms. Bruckner was a Staff Accountant and Income Auditor at MetWest Terra, a hotel management and ownership company. Her responsibilities included month end financial processing and preparing budgets. Prior to MetWest Terra she was the Accounts Payable Coordinator at Larkspur Hotels and Restaurants. She handled Accounts Payable for 11 hotels, ensuring timely payment of vendor invoices and assisting hotel accountants from all 11 hotels with any accounting questions. She also served as a Hotel Accountant at the Pruneyard Plaza Hotel in Campbell, CA. She processed month end financial reports for the hotel as well as payroll. She was in charge of all accounts receivable and accounts payable for the property, audited hotel charges on a daily basis and processed night audit results. 18 APPENDIX D – SHASHI PORTFOLIO HOTEL DESCRIPTIONS Aloft Cupertino – 123 Rooms 10165 North De Anza Boulevard, Cupertino CA Shashi Group’s core strategy is exemplified in the award winning Aloft Cupertino, which is located adjacent to the worldwide headquarters of Apple Inc. in the heart of Cupertino, California with walkable amenities. Shashi was able to secure land and entitlements for 123 room hotel on a 0.8 acre parcel in the City of Cupertino, which has extremely high barriers to entry in California. Construction was completed within 13 months; the hotel opened in January 2013. The last hotel in Cupertino was built in 2002 when Apple had 9,600 employees compared to their current headcount of 80,000 and growing. To offer a highly differentiated experience to its’ hi-tech clientele, Shashi has introduced cutting-edge technology and world-class amenities at Aloft Cupertino: It was the first hotel in North America to have Apple TVs in all guest rooms It was the first hotel in North America to introduce a robotic butler for room service – “The Botlr” Aloft Cupertino is one of only two Starwood hotels in the United States to implement the smart check-in option through smart phones. It has an oversized, vibrant WXYZ bar with an eclectic menu Highly energy efficient LEED design - The Aloft Cupertino was recently recognized by the City of Cupertino as the winner of Cupertino’s Green Business Challenge for water conservation saving an estimated 539,000 gallons less per year than a comparable hotel. Aloft Cupertino achieved the highest RevPAR in the entire Aloft portfolio in North America in 2014. Hilton Garden Inn Mountain View – 160 Rooms 840 E. El Camino Real, Mountain View CA The Hilton Garden Inn Mountain View on historic El Camino Real was acquired by Shashi Group on January 27, 2016. The Hilton Garden Inn Mountain View is surrounded by companies with strong fundamentals, such as Apple, Google, HP, Intel, Microsoft, Siemens, Symantec, and LinkedIn. The hotel features a fitness center, outdoor pool and spa, as well as a business center and conference space. Guests can also enjoy American cuisine at the Garden Grille & Bar. Shashi Group is planning upgrades for the hotel in late 2016 that include the introduction of its signature technology features such as AppleTVs, an iLounge with meeting booths that have AppleTVs and charging stations, Smart CheckIn and Nest thermostats in the rooms. Aloft Cupertino Hilton Garden Inn Mountain View 19 Aloft Sunnyvale – 85 Rooms 170 South Sunnyvale Avenue, Sunnyvale CA The Aloft Sunnyvale opened on March 12, 2015 in the heart of downtown Sunnyvale. The adaptive reuse project began with a vision to rehabilitate an existing hotel thereby short-circuiting the permitting and approvals process. Aloft Sunnyvale is located close to some of the largest corporate campuses in Silicon Valley and has Yahoo HQ, Juniper Networks HQ, LinkedIn, Apple, Google, Broadcom, Amazon, Motorola, Nokia, Broadcom, Lockheed Martin, NetApp, Microsoft, HP, and Synopsys within one and a half miles. Hotel is also close to Highway 101 and a block from the CalTrain station. The hotel will appeal to technology and business travelers seeking the central proximity and the option of nightlife and excellent restaurants one block from Sunnyvale’s Murphy Street. The property has a state-of-the-art fitness center, focal fireplace in the lobby and bar with floor to ceiling windows to Sunnyvale Avenue, and iLounge booths to stream from a phone or tablet to Apple Monitors. Aloft San Jose-Cupertino – 81 Rooms 4241 Moorpark Avenue, San Jose CA Aloft San Jose-Cupertino is located along Interstate 280 along the West San Jose and Cupertino boundary. The property was previously a Joie de Vivre boutique property called the “Moorpark Hotel.” The hotel is conveniently located with under a 10 minute drive from the New Apple Spaceship Campus. Many other high-tech corporations including Agilent HQ, Netflix HQ, eBay HQ, Xilinx HQ and Seagate HQ are within close proximity. Guests also enjoy convenient access to the Santa Row shopping and entertainment district, Santa Clara University, SAP Center, Winchester Mystery House, and a selection of wineries and world-class golf courses. Aloft San Jose-Cupertino also offers an outdoor pool, fitness center, WXYZ Bar, and a wide selection of craft and imported beer as part of the signature Best Brews program. The Nest Palo Alto – 54 Room Boutique Hotel 3901 El Camino Real, Palo Alto CA The Nest Palo Alto is located in the heart of Silicon Valley within extremely close proximity to the prestigious, 10.0MM SF Class A Stanford Research Park, with major employers such as Tesla HQ, VMware HQ, HP HQ, Facebook, AOL HQ, Google, SAP North America HQ, and Stanford University. In addition, a strong amenity and service base of Aloft San Jose Cupertino - Guest Room Aloft Sunnyvale The Nest Palo Alto 20 retail, restaurants, nightlife, and transportation hubs are easily accessible from the Property. The property was formerly a Quality Inn and completed a remodel and transformation in October 2015. The Hotel is landscaped with lush gardens and has multiple fire and water features. The hotel offers top-tier amenities including Apple TV, welcoming bar with best in class Wine & Beer, and a fitness center. Shashi Mountain View – 200 Rooms 1625 North Shoreline Boulevard Mountain View CA The Shashi Mountain View is currently under development. It will be a five-story, 200-room hotel on 1.395 acres. The site is within walking distance to Google HQ, LinkedIn HQ, Intuit HQ, Samsung, and Microsoft’s Silicon Valley HQ. The project will be the first hotel built in Mountain View in over 20 years and the only hotel north of Highway 101 in the five-mile stretch between Highway 237 and Palo Alto. Shashi owns the site and has received all the necessary entitlements. The project has received unanimous support from the City Council and is estimated to be completed in 2018. Aloft Mountain View – Google HQ _j Glacier House Oyster Point in South San Francisco New Build Element / Springhill Suites * Glacier House Chandler Element Cali oR is M, by Marriott Presented By: Glacier House Hotels, LLC Jordan Scott iordan(c�glacierdev.com (602) 750 -8407 Ryan Kucker rvanaglacierdev.com (701) 318 -3652 Response Request Table of contents 1 ........... Cover 2 ........... Table of contents 3.......... Response Letter • No 3rd party financing • Element - Springhill 5........... Brand cut sheets 7.......... Company History • Company Profile • Existing Hotels • Franchise Approved Projects • Future Developments • Principals • List of Past Projects • Corp Org Chart • References 16......... Disclaimer 2 Glacier House Chandler Element Response Request Chris Kraus Managing Director CBRE Hotels - Consulting 101 California Street, 44th Floor San Francisco, CA 94111 415 -562 -4483 Chris.kraus gicbre.com Dear Mr. Kraus, After reviewing the Request for Qualifications Opportunity provided, we are pleased to present our response and appreciate the opportunity to be a part of this selection process. We understand the objective is to find a qualified developer that can deliver a development that the city of South San Francisco can be proud of. We acknowledge that there will be vast array of developers to select from, but believe our competitive advantage lies in our ability to move forward with zero financing contingencies. Our business model encompasses selecting premier sites and utilizing the best brand when available. We are incredibly interested in working together and if selected we feel the optimal decision is to move forward with an Element by Westin / Springhill Suites development. We have evaluated the total key counts and feel that 280 units total (140 each) would be the proper blend of Element's upscale extended stay product and Springhill's modern social experience. By combining both product types we believe we can capture the mix of demographics that will be experiencing the beauty of Oyster Point. The power behind the Marriott reservation system will not only maximize top line revenue but draw both leisure and corporate travelers. Both products would have separate entrances but share a common area pool and conference center. This will allow all guests to experience their selected product type but allows the project to allocate more capital towards those shared amenities. After meeting with Marriott brand representatives, we have been given verbal approval and they have agreed to be flexible with brand design to assure that the modifications to the exterior of the building can satisfy both the City and the Brand. 3 k Response Request Outside of the hotel portion of the project we believe there is room for an added amenity to the area to provide at minimum a separate full service restaurant and possible blend of shopping options. Glacier House Hotels will be partnering with Retail Advisors to handle the retail leasing for the project. We have worked together on other projects and believe they are the right fit to help facilitate the right end users (profile below). Glacier House Hotels does not have any pending lawsuits or disputes. We currently own 6 existing properties and only manage our owned assets. We have an additional 13 projects that we are purchasing or entitling (including 4 other Element by Westin approved Franchises). We only look for long -term hold projects and hope the below information helps add the Element/ Springhill at Oyster Point to our portfolio. We look forward to working with you. Kindest Regards, Jordan Scott President Glacier House Hotels jordan!uglacierdev.com rd -w a Element Hotels offers the essentials of balanced travel for today's standard and longer -stay traveler who does not want to compromise on comfort and design. Element Hotels is grounded in smart, environmentally friendly thinking, from its products, services and programs to its physical spaces With flowing, multipurpose areas that maximize space. Its vibrant optimistic energy is contagious and has developers signing on and guests eagerly approving with soaring satisfaction scores, Guestr'ooms Fully equipped kitchens, spa - inspired bathrooms flexible work space with Wired and wireless Internet and printer access and the signature Heavenly' Bed. Rise Breakfast Complimentary signature healthy breakfast with individual and communal tables Restore Gourmet Pantry A gourmet, self -serve. one-stop shop. open 2417 Guests can enjoy easily prepared ready- set -cook meals plus healthy snacks, indulgent treats local specialties and more Relax Evening Reception Savory food and beverage paifings bring guests and locals into our public spaces four nights a week every week. Location — Urban suburban and airport Limited public areas Limited Food & Beverage offerings Minimal back of house areas Eti:rirent will double Its portfolio by 2017 Element debtrme nS first hotel outside of Norio Amertea, in 2014 With W.- Et>,mtntFMnkiurl, Arid its nrsinoisi in Cliin,j in 2015, (t) r•iernant W W41lM 1 r'1 �.ot j ,fir. 1j3.'. ��_• _'. �i 1 , _ ') 2v .`��Sjte Public Areas NSF GSF Lobby 3,945 4.730 Food & Beverage 750 900 Function Space 565 670 Recreation (excluding spa) 1.000 1,200 Rooms Keys Bays Net Area Studio King 52 52 21.268 Studio 010 30 30 12,270 One - Bedroom Suite 27 27 12,204 Standard King 11 11 3553 Conference Suite 3 6 1,936 Total 123 126 541.233 Room Width Length Type 1 (Studio King) 190, 215' Type 2 (Studio Coq 19.0' 215 Type 3 (One- Bedroom Suite) 21.0' 21.5r Type 4 (Standard King) 15U 21.5' Type 5 (Conference Suite) 190, 281Y :�j.J 22 hotels Amsterdam Aspen, Boston Bozeman Irving, Denver. Ewing, Fargo, Frankfurt Hanover, Harrison. Houston. Las Vegas. Lebanon, Lexington, Miami (2) New York, Omaha, Suzhou Vancouver. Vaughan 65 hotels in 11 countries Marriott GROW WITH THE WORLD'S FAVORITE TRAVEL COMPANY DEVELOPMENT VISIT MARRIOTTDEVELOPMENT.COM 0 SPRINGHILL SUITES BY MARRIOTT C4lesM love Springhill Sultes by Marriott, the lar(iest all - suites style brand, for Itc fresh Average occupancy Rate: P" plwm anrt inlem -ling take nn the !ravel expariera. The brand rrrtsfsliontly ranks amnrk lhr^ top Marriott hr3nds in guest satisfaction, and has won nt+mcrous J,O. Dower awards for � Aver Daily ROOM (date: $117.87 service. Oriners anl1 franchisees love SprirgHill Suites' ton. with a development ,rmrtc! presemirg options tr ease new- buildcosts. nationatly recognized marketing c3mDaigrs SON Average ReVPAR; $88.10 driving ,Ieman!1, and an optimised operating model delivering remarkable returns. Fusing form and tunctinn and wrapping It alt in attractive. modern decor. Sprinll I t• o•. Suites ot'ers (rare extras sucl- as craft beer and Nines in :he Market and fttles< and wellness np)inns 11tunert to evolving guest needs. The Icbhy and guest suite rraiure Loyal COMMer Saw. � proprietary west elm* IurniIure m an industry- leading partnership and deliver a h' hly Marriott RewardC Member Paul Night" dillererxiated experierice that solidif :cs I`le brand's leadcrsh:p in the upper rnode!' itC rWrMnl54l6n +IDial $priry;HaflSuilesNiRhls uer Lower CoA Sookirgs: Springit," Suites cclivers year - over -year RevPAR g rovrth with rerrai-Kabae occupancies/ Marriott -s channels generate 644% of springl -rill Suites reservations rates on hoth weekdays and weekends. With a rohust pipei=nc. ,his rlitterenuated prM -^lust is Weil received by nwners. large RE!TS and lnvestrtent firms with conlmuerf grn.vth in bcilt ur`tjn and suburban mar {cis. CG APF. PDVF FEE 5TR :JCT1J -1, KEY C[iMPE7ffORS: :; r. 1r r Application Fee: $50.000 nr $400 per R.hest roT. DISTRIBUTION Royalty Fee: 5 5 X of Grass Wm Sales (Q3 2016> MarketingFUndFee :2- S�fpfG'C55ldnnm����: As the largest doper -nndera_e atI suite brand SaringFiill 5u-',e5 cantrnues its growth With a st•nng rVelitie of 1.50 n1rels. _ U.S. AND CANADA open: 353 / 41.965 + 120 110 key- Pipeline 150,; 17,622 7' Average Cost Per Ices: 393,50,.^ $144.800 120 - 150 keys A _ Average Cost Per Key: $89.8CO $136,gt '201,65aringff,11 Sines Frawhr5e D%cjjcure C,)rUfllent For all Aftl cngs an3 lees, refer to the FDO. A" Response Request Company Profiles Glacier House Hotels Glacier House Hotels is headquartered in Scottsdale, Arizona. Their core focus is the purchase, development and construction of hospitality projects. Glacier consists of a team of entrepreneurial individuals who have been successful in all aspects of the hotel, retail and mixed use projects. The Glacier team has many decades of experience; knowledge and expertise in operating planning, development and construction of real estate, including years of experience with top tier hospitality brands such as Hilton, Marriott, IHG and Starwood. The Glacier principals played a major role with Tharaldson Hospitality, who built and operated more than 400 select service hotels since 1984 and sold 130 hotels to Goldman Sach's real estate arm, the Whitehall Real Estate Fund, in a transaction valued at $1.2 billion. Glacier expertise include development, construction, operations, sales and marketing, procurement, revenue management, risk management, finance and accounting, disposition, debt and equity, re- positioning, site selection and brand recommendations. Radius Retail Advisors Radius Retail Advisors, Inc. brings over 30 years of leadership encompassing all facets of Real Estate Development. The principles of the company, Cody Small and Brent Ogden have a portfolio of properties that include: neighborhood, power, life style and small strip centers, as well as several hotels in Southern California, Arizona and Utah. We have demonstrated a record of success recommending and facilitating tenant enhancements, increasing value and profits, streamlining operations, and development growth. Radius has a proven ability as owner to manage multiple, complex projects in a timely, cost efficient manner. 7 I "\ Existing Hotels Marriott: Hilton: Response Request Fairfield Inn & Suites - Yakima, WA Fairfield Inn & Suites - Denver Tech, CO Fairfield Inn & Suites - Aurora, CO Fairfield Inn & Suites - Westminster, CO Element - Chandler, AZ Doubletree - Farmers Branch, TX Franchised Approved Developments (Est. Completion Date) Marriott (Starwood): Residence Inn - Moreno Valley, CA (Dec 2018) . TownePlace - Whitefish, MT (April 2018) Element -- Superior, CO (July 2018) Element - Ontario, CA (Dec 2018) Element - Oak Creek, AZ ( Dec 2018) IHG: Holiday Inn Express - Moreno Valley, CA (Dec 2018) Holiday Inn Express 8s Suites - Santa Ana, CA (Dec 2018) Hilton: Home 2 Suites - Lewisville, TX ( Dec 2018) N3 Response Request (Rendering from Glacier House Superior Element) 10 AV'I'! Principals Response Request Jordan Scott, Principal /Acquisitions and Development Mr. Scott is a 3rd generation hotel owner and developer that grew up working hotel jobs in Glacier National Park, MT. Working his way up, he continued on to work 11 years with Tharaldson Development Companies as their South West Director of Development. In 2012, he started Glacier Development and leads the development and acquisition divisions, which include the organization's deal sourcing, underwriting, equity deployment and all development related activities. Jordan is responsible for strategic planning and helping to identify new opportunities for Glacier that capitalizes on improving business fundamentals. His team is also responsible for value maximization efforts for all internally owned assets and has been instrumental in negotiating, developing and focusing on Glacier's mission of maximizing the value of every asset. Jordan is a graduate of the University of Arizona, he resides in Scottsdale, Arizona with his wife and daughter. Ryan Kucker, Principal /Chief Financial Officer Mr. Kucker entered the hospitality industry in 2006 as Tharaldson Hospitality's Chief Financial Officer, before joining Glacier in 2014. Ryan brings a financial focus to Glacier which is critical to the health and development of the company. His ability to analyze data and provide ongoing assessment of critical operational costs and budgets is instrumental in creating a higher return on investment for Glacier. Ryan is the team leader in developing relationships with investors and franchise companies and creating new business opportunities. Ryan provides a key leadership to the entire team and directs the budget process and completion as well as the daily, weekly and monthly tools which enable Glacier to efficiently manage their financial operations. Ryan received a bachelor's degree in Accounting from North Dakota State University, is a Certified Public Accountant and resides in Scottsdale, Arizona with his wife and 3 daughters. 11 yam\ Response Request Director of Operations Jennifer Romantic Mrs. Romantic has over 20 years of above property management level experience working for several leading hospitality franchisee companies. In Jennifer's 20 years of experience she has managed properties for all the leading brands including Marriott, Hilton and IHG. Jennifer has overseen the operations of over 100 hotels during her career and opened more than 25 hotels across the country. Jennifer has extensive Human Resource, Safety, Revenue Management and Sales 8:, Marketing experience. Capital Partner Troesh Family Trust Troesh Family Trust is Glacier House Hotel's exclusive investor and capital partner. Troesh Family Trust joined forces with Glacier House Hotels at the end of 2014 in their first hotel acquisition of a 218 room Full Service Days Hotel and has committed to invest in their next 50 hotel developments. The Troesh Family Trusts are active Real Estate Investors in all industries. *Proof of Funds arc available upon request. 12 Response Request List of Past Projects The below projects are hotels that the principlas were involved in with Tharladson Hospitality during their time with the organization. * Principal Ryan Kucker was previously listed on Marriott Franchise as a Director Prior Hotel Experience Marriott Brand / Location Rooms Courtyard West Orange* 132 North Little Rock Fairfield Inn* 86 Residence Inn Little Rock North* 96 Fairfield Inn & Suites Cincinnati* 78 Courtyard Kingston* 90 Residence Inn Corona* 95 Residence Inn Manassas* 107 Residence Inn San Bernardino* 96 Courtyard Rancho Cucamonga* 117 Fairfield Inn & Suites San Bernardino* 94 Erie TownePlace Suites* 160 Fredericksburg Residence Inn* 124 Courtyard West Des Moines* 102 SpringHill Suites Roseville* 124 West Greenwich Residence Inn* 100 Residence Inn Dayton North* 105 Hilton Brand / Location Rooms Hilton Garden Inn Rancho Cucamonga 122 Homewood Suites Rancho Cucamonga 103 IHG Brand / Location Rooms Staybridge Suites Las Vegas 118 Staybridge Sacramento 117 Toledo Staybridge Suites 160 Staybridge Suites Stapleton, CO 102 Staybridge Suites Chandler, AZ 104 Staybridge Suites Folsom, CA 104 13 I Alissa GudeREI Accounting ManaW Christy Rife_ Accounts Payable & Accounting Assistant ____Ryan Kucker CFD y� ev Alimri k LM VanKudw chasing Manager j rof R an•._ D���iceManager anagement Director of F &B K3 HOTELS Jennifer Director of Sales & Above Property Sales & Marketing f Customer Relabans Manager Calkins Director of HB and Payroll HR Carnwftant 61 Jordan Scott __ ------ - --- — meet Devlin Keogh Niched Erchn� Er_Ancle_ son Chief Engineer Direror of Capi:.a Director of lmprovemenG Construction Joe Sperduto Procurement Manager - Ww construction /PiP AVk1P \ Response Request nces Marriott: Jason Farmer Scott McAllister Marriott Lodging Development Marriott Lodging Development CO, IS, MT, ND, SD, WY CA (720) 244 - 3966 (760) 331 - 4666 IHG: Laurie Carr Regional Director AZ, CO, NM, UT, WY (602) 206 - 6750 Starwood: Steve Browder LEED Green Associate (914) 439 - 7518 Wyndham: Jim Renahan Director, Franchise Operations (480) 748 - 1200 1s ire\ Response Request DISCLAIMER FINANCIAL PROJECTIONS CONTAINED HEREIN WERE PREPARED BY MANAGEMENT FOR GLACIER HOUSE HOTELS, LLC. ALTHOUGH THE PROJECTIONS HAVE BEEN PREPARED BASED UPON THE ESTIMATES AND ASSUMPTIONS STATED HEREIN, SUCH STATEMENTS ARE ALSO BASED UPON CERTAIN ASSUMPTIONS AS TO FUTURE EVENTS AND, THEREFORE MAY NOT ACCURATELY REFLECT THE ACTUAL RESULTS WHICH OCCUR. OCCURRENCES IN THE FUTURE MAY SUGGEST NECESSARY CHANGES IN THE PROJECTIONS. THE PROJECTIONS SHOULD THEREFORE BE VIEWED AS AN ORDERLY PRESENTATION OF THE RESULTS TO BE EXPECTED IF ALL OF THE MANY ASSUMPTIONS BASED UPON FUTURE OCCURRENCES ARE FULFILLED. THE PROJECTIONS HAVE BEEN PREPARED ON THE BASIS OF CERTAIN ASSUMPTIONS THAT MANAGEMENT BELIEVES ARE REASONABLE. NO REPRESENTATION IS MADE OR SHOULD BE INFERRED WITH RESPECT TO THE ACTUAL ATTAINMENT OF THE PROJECTED RESULTS OR AS THE COMPLETENESS OF THE PROJECTIONS SINCE IT IS EXTREMELY DIFFICULT TO ESTIMATE FUTURE INCOME AND EXPENSES ITEMS ACCURATELY. 16 MARCH 31, 2017 OYSTER POINT HOTEL RESPONSE TO RFQ 01 10 20 22 Development Team Overview Qualifications and Experience Financial Capacity Project Concept/Financial Profile Ensemble Real Estate Investments and AECOM Capital, collectively, the “Partnership”, are excited to present our response to City of South San Francisco’s request for the development of a waterfront hotel at Oyster Point. As demonstrated in the following, we strongly believe that we have the right kind of approach and experience best suited to your project. Our tried and true process of identifying the right positioning, programming, brand, and operational model through a detailed, iterative, and collaborative process, bringing all constituent groups together and focusing them on the goal of delivering the best solution, whatever that ends up being, is the trademark of our success. We are confident that you will feel the same way. The Oyster Point hotel project will be developed by a to-be-formed 50/50 joint venture development partnership between Ensemble Investments, LLC and AECOM Capital—AECOM Capital is the investment arm of AECOM, a publicly-traded, global engineering and design firm. The Ensemble/AECOM Capital team has recent and relevant experience working together on a Marriott Autograph Collection hotel in Menlo Park, California. DEVELOPMENT TEAM OVERVIEW DISTINCT GLOBAL PRESENCE HISTORY OF DELIVERING SUPERIOR HOTELS SUCCESS WORKING WITHIN MASTER DEVELOPMENTS VAST KNOWLEDGE OF HOTEL BRANDS AND PROGRAMMING FOCUSED ON CRAFTING UNIQUE AND APPROPRIATE SOLUTIONS INTIMATE FAMILIARITY WITH CITY OF MENLO PARK’S ENTITLEMENT AND APPROVAL PROCESS AND OFFICIALS $268M $110M $1.4B40030+ ENSEMBLE INVESTMENTS AT-A-GLANCE Real estate investment company with asset management, development and repositioning expertise. AREAS OF FOCUS YEARS OF PROVEN EXPERTISE EMPLOYEES COMPLETED OVER IN LONG BEACH (HEADQUARTERS), PHOENIX, RENO, LAS VEGAS, AND SAN FRANCISCO HEALTHCARE HOSPITALITY MULTIFAMILY COMMERCIAL IN TOTAL REAL ESTATE INVESTMENTS IN ACTIVE CONSTRUCTION 2017 PROJECTS STARTS Kam Babaoff Managing Director, Chairman Kam Babaoff trained in civil engineering then embarked upon the practical application of science through a number of Los Angeles area hotel development and repositioning projects. Kam’s first development and renovation efforts in the early 1980s included Santa Monica’s Holiday Inn and Bayview Plaza, the Hollywood Roosevelt Hotel and the Ramada Renaissance Hotel in Agoura Hills. Both an engineer and an entrepreneur, he formed Ensemble with the other partners of the company to capitalize on their complementary skillsets. Kam continues to spearhead Ensemble’s hospitality and multifamily projects. Based in Ensemble’s Long Beach office, he has overseen the development or acquisition of several million square feet of hotel, multifamily and high-density office space for the company. Kam remains dedicated to the cultivation of community-based arts and culture. He is an ongoing supporter of several California municipalities. Michael Moskowitz Managing Director, Chief Financial Officer A founding partner of Ensemble, Michael Moskowitz has been involved in commercial real estate for more than 25 years. Michael has played significant roles in real estate development in California where he managed the development of several large-scale hospitality and healthcare projects. At Ensemble, Michael is responsible for overseeing development, construction financing, accounting and reporting, tax planning and corporate management. Randy P. McGrane Managing Director, Chief Executive Officer A founding partner of Ensemble, Randy McGrane plays a pivotal role in all aspects of Ensemble’s business model. In addition to working extensively on business development, he oversees all leasing and building operations of Ensemble’s growing portfolio, manages all acquisition and disposition of property and arranges for long-term financing with the institutional debt markets. He has cultivated his vast operational expertise throughout his 30-plus year career, which began in the commercial construction industry in California. In his capacity as CEO of Ensemble, Randy manages the day-to-day operations of Ensemble’s Phoenix headquarters office, as well as branch offices in Las Vegas, Reno and Long Beach. He is also responsible for leading Ensemble’s senior management committee. ENSEMBLE TEAM Ed Proenza Chief Operating Officer, Hotels Joining the company in 2005 as Senior VP of Ensemble Hotel Partners, Ed Proenza became COO in 2012. Previously, Ed spent five years with Hilton Corporation as General Manager of the Long Beach Hilton & Executive Meeting Center. Ed was with Marriott Hotels & Resorts for 19 years in various positions, including Corporate Director of Sales, Reservations and Revenue Management for Courtyard and Fairfield Inn. He also was on the original development team for the Courtyard brand. Ed oversees the management of Hotel Maya, a DoubleTree by Hilton, and asset manages the Dream Inn, DoubleTree Carson, and Residence Inn Long Beach. He uses his marketing and operational background to maximize results for owners and investors. With two union hotels in the Ensemble portfolio, Ed has experience working with unions in Northern and Southern California to negotiate the collective bargaining agreements for the respective properties. Brian Ehrlich Chief Investment Officer, Hotels Brian Ehrlich has decades of diverse experience in hospitality real estate. From investment banking and brokerage to his experience as a hotel investment principal, his full view of the market allows him to provide a value-added perspective on all transactions. His background encompasses significant experience in acquisitions, dispositions, management contract negotiations, financing, underwriting, market analysis, and asset management of full-service, select-service and boutique hotels. As a result, he has developed wide-ranging contacts throughout the hotel real estate spectrum, including owners, operators, franchisers, lenders, specialty finance companies, brokers, servicers and receivers. As Chief Investment Officer, Brian researches, evaluates, and analyzes options and information that will lead to optimal decision-making for hotel acquisitions and development. He also oversees third parties and manages the closing and post-closing process to ensure a smooth, successful transition. Conrad Garner Sr. Vice President, Development Services Conrad Garner’s extensive financial and architectural background provides a broad base of knowledge that facilitates a diverse understanding of real estate development. Operating out of Ensemble’s Long Beach office, Conrad has managed more than $200M of hospitality, commercial and medical office developments. Conrad is responsible for the execution of Ensemble’s real estate investment objectives. He manages the planning and execution of all ground- up new development, value-add renovations, and major capital expenditures on the existing portfolio. He has successfully managed over $200M in development and transformational renovations in a diverse portfolio of branded and boutique properties. Conrad’s responsibilities include strategic deal planning, design and entitlement management, and Owner’s representation in contract negotiation and construction. Jacob Owen Sr. Vice President, Finance Jacob Owen has flourished at Ensemble since joining the team in 2005. Prior to Ensemble, Jacob was a vice president at Universal Mortgage, a successful boutique mortgage lender for higher wealth clients in the New York City metro area. In New York, he cemented his industry-leading reputation, which garnered him significant praise from the New York real estate community. As Senior Vice President, Jacob has a lead role in the origination, underwriting and execution of Ensemble’s new development and acquisition opportunities. Through these endeavors, Jacob has helped structure and deploy at Ensemble well over $500 million of capital. Jacob’s work covers land use, operation, performance, and market feasibility in addition to managing due diligence and land control. Jacob also directs much of the efforts in the sourcing of equity and debt for the various investments within the Ensemble portfolio. ENSEMBLE TEAM AECOM CAPITAL INVESTMENTS AT-A-GLANCE The real estate investment platform of AECOM, focusing on ground-up development. AECOM Capital (ACAP) enters projects through co-GP partnerships to provide equity capital, real estate development and financial expertise, and construction services. ACAP targets various assets classes with an emphasis on residential, hospitality, retail, and mixed-use developments. ACAP invests in US gateway markets and select tier-1 international cities. ACAP's seasoned team of real estate investment professionals, backed by operational and investment expertise, oversees transforming ground-up developments in major markets around the world. REAL ESTATE PROFESSIONALS ACTIVE PROJECTS INVESTED IN COMPRISED OF OF CAPITAL THROUGH AECOM CAPITAL GLOBAL FUND 1 IN GROUND-UP REAL ESTATE DEVELOPMENT AND OFFICES IN NEW YORK, LOS ANGELES, AND LONDON SQUARE FEET OF REAL ESTATE (INCLUDING PARKING) $200M $3B 8M WITH DECADES OF EXPERIENCE20 15 John T. Livingston Chief Executive Officer Mr. Livingston is the Chief Executive Officer of AECOM Capital, a Board Member of Tishman Construction Corporation, and a Member of AECOM’s Executive Committee, with over 38 years in the real estate and construction industry. He is currently responsible for all aspects of the AECOM Capital platform as well as managing the execution and full life cycle of the fund’s individual investments. Previously, Mr. Livingston led a successful tenure at Tishman Realty & Construction, which began in 1994, serving as President and COO of Tishman Urban Development Corporation. He was named President of Tishman Construction Corporation in 2002. At Tishman, Mr Livingston led the successful development of the Westin New York at Times Square and the E-Walk Retail project at Times Square, and oversaw $30B of construction nationally. Mr. Livingston holds a BA in Architecture from the University of Pennsylvania and a MA in City Planning from Harvard University. He is a founding member of the Advisory Board for the Institute for Urban Research at the University of Pennsylvania, a member of the Urban Land Institute and former Chairman of the Entertainment Development Council, and is an Adjunct Professor at Columbia University Business School. Timothy D. Haskin Senior Managing Director Mr. Haskin is a Partner and a Senior Managing Director of AECOM Capital, where he is responsible for deal origination, structuring, and execution of investments. He has an extensive background in real estate finance, with over 37 years of experience and expertise in acquisitions, financing, and repositioning of large scale real estate projects, and is an expert in the domestic and global commercial real estate and hospitality markets. Mr. Haskin holds a BBA in Business Administration with certificates in Real Estate and Finance from Southern Methodist University, Edwin L. Cox School of Business. He is a Trustee of Brick Presbyterian Church, and has been a visiting speaker at various academic institutions. Ted Fentin Managing Director Mr. Fentin is a Managing Director with AECOM Capital, with over seventeen years in the real estate industry. He is currently responsible for originations and execution of AECOM Capital’s West Coast platform, as well as providing support for our Fund’s capital markets efforts. Mr. Fentin has an MBA from Columbia Business School, a Juris Doctor from University of Michigan Law School and a BA from the University of Pennsylvania. Mr. Fentin is a member of the Urban Land Institute and the California Bar Association. He is also on the Board of Directors of the Envision Foundation and the Board of Governors for Cedars-Sinai Hospital. AECOM CAPITAL TEAM Warren Wachsberger Principal Warren Wachsberger is a Partner and Principal of AECOM Capital with over ten years of professional experience in corporate finance, commercial real estate and investment management. In his role at AECOM Capital, he focuses on deal acquisition, structuring and closing transactions, and managing corporate relations with AECOM. Mr. Wachsberger manages the Los Angeles office. At AECOM Capital Mr. Wachsberger is responsible for all investment activities on the west coast. Mr. Wachsberger holds a BA in Economics, a BS in Business Finance and a Master’s degree in Finance and Accounting from the University of Southern California. He is an active member of the Urban Land Institute and the USC Alumni Association. William R. Smith Executive Vice President of Design and Construction Mr. Smith is the Executive Vice President of Design and Construction at AECOM Capital, with over 25 years in the real estate development industry. He is responsible for the execution of the company’s development portfolio nationally. Bill brings extensive development leadership experience, conceiving and delivering complex mixed-use urban projects. Bill is a graduate of Temple University in Philadelphia with a Bachelor of Science degree in Architecture. He is a Registered Architect and Member of the American Institute of Architects. His recent hard cover book “Creating CityCenter” has been released internationally by W.W. Norton & Company of New York City. David Kim Vice President of Design and Construction David Kim is both a licensed architect and builder, bringing 27 years of industry experience as a construction manager, construction consultant, and architect to an integrated and comprehensive approach to the delivery of real estate. He is a Corporate Vice President of Design and Construction and is responsible for the execution of all investments on the West Coast and Texas. He also plays a key role in due diligence activities for potential acquisitions. Specialties include project planning, programming, budgeting, design management, value engineering, and technical resolution of highly complex urban projects. Mr. Kim holds a BA in Architecture and a BS in Building Science from Rensselaer Polytechnic Institute and a Master’s degree in Real Estate Development from Massachusetts Institute of Technology (MIT). He is also the President of the MIT Club in Southern Nevada and AECOM’s Liaison in its National Alliance with BASF’s Center for Building Excellence. AECOM CAPITAL TEAM Design & Construction Project Managers Conrad Garner (Ensemble) William Smith (AECOM Capital) David Kim (AECOM Capital) Barry Talley (AECOM Capital) Ensemble Principals Kam Babaoff Michael Moskowitz Randy McGrane AECOM Capital Partners John Livingston Timothy Haskin Warren Wachsberger Ted Fentin DEVELOPER ENSEMBLE/AECOM CAPITAL DEVELOPMENT SUPPORT Development Brian Ehrlich (Ensemble) Assistant Project Managers Randy McPherson (Ensemble) Will Korchek (AECOM Capital) Finance Jacob Owen (Ensemble) Cate Jones (AECOM Capital) Operations/Asset Management Ed Proenza ORGANIZATIONAL CHART Ensemble/AECOM Capital will work collaboratively to deliver a one-of-a-kind tailored hotel experience. QUALIFICATIONS AND EXPERIENCE The Ensemble and AECOM Capital teams have decades of collective development and opering experience across multiple property types. This breadth of experience allows us to develop best practices and novel approaches to solve development challenges within the hotel space. We offer refreshing and innovative solutions, allowing each hotel project to stand out for exceptional design, utility, guest satisfaction, and financial success. Locally, the team has completed and is currently working on hotel development projects in the Silicon Valley and Bay Area including the Autograph Collection project, Hotel Nia, minutes from the Facebook Campus. Our team can bring a wealth of knowledge already gleaned from working on similar projects. Hotel Nia Menlo Park, CA Hotel Nia, a world class Autograph Collection hotel, will serve as the hospitality component to the Menlo Gateway development and will feature 250 rooms, 21,000 square feet of meeting space, a full-service restaurant, outdoor pool and entertainment deck with poolside bar, and a spectacular event courtyard and garden. Within blocks of the Facebook campus in the prime of Silicon Valley, this full-service luxury hotel fills the absence of creative indoor and functional outdoor meeting space in the competitive market. With a name that means “bright light”, Hotel Nia provides a highly stylized and customized design experience that will appeal to both the tech industry’s creative set, as well as the area’s sophisticates of the venture capital and legal industries. Its refreshing decor and “edited-for-clarity” gathering places embrace a counterculture vibe—simplicity with beauty—where high-design meets minimal complexity. Hotel Nia is being built for LEED gold designation or higher. Ensemble/AECOM Capital will own and operate the property. Address U.S. 101 & Bayfront Expressway, Menlo Park, CA Keys 250 Keys Completion Late 2017 Development Cost $142M Financing ACORE Team Members Involved Each of the proposed Ensemble and AECOM Capital team members are involved in development of this project. Reference Julius Robison Vice President and Global Lead, Autograph Collection Hotels (301) 380-5793 julius.robinson@marriott.com ENSEMBLE PROJECT EXPERIENCEENSEMBLE PROJECT EXPERIENCE ENSEMBLE PROJECT EXPERIENCEENSEMBLE PROJECT EXPERIENCE The Dream Inn Santa Cruz, CA Ensemble purchased the Coast Hotel in 2006 and subsequently renovated and relaunched the property as the Dream Inn, a full-service, 165-key boutique hotel in 2009. The beachfront hotel features fully-renovated guestrooms, new bathrooms, new finishes and décor, and private balconies with ocean views. Ensemble’s redevelopment concept was “retro-chic” making it attractive across all generations, but with a millennial vibe. The hotel features the Jack O’Neill lounge, a surfing-inspired lounge named for the site of Jack O’Neill’s first surf shop upon which the hotel now sits. The trendy beachside hotel drives $400 ADR in the summer with its iconic cool redesign and name. Ensemble is the current owner of the property and is currently renovating the prop- erty to include an addition of a spa, meeting space, pool deck and a rooftop lounge and renovations to rooms, lobby, corridors and restaurant. Address 175 West Cliff Drive Santa Cruz, CA, 95060 Keys 165 Keys Initial Renovation Completion 2009 Development Cost Purchased for $42M; Additional $21M in renovations Current Renovation Completion April 2017 Current Development Cost $8M Financing Bank of America Team Members Involved Each of the proposed Ensemble’s team members were involved in development of this project. Reference Juliana Rebagliati AICP Director of Planning & Community Development, City of Santa Cruz (831) 420-5103 jrebagliati@cityofsantacruz.com ENSEMBLE PROJECT EXPERIENCE ENSEMBLE PROJECT EXPERIENCEENSEMBLE PROJECT EXPERIENCE Hyatt Place Emeryville/San Francico Bay Emeryville, CA Located adjacent to the successful Bay Street lifestyle retail center, this six-story Hy- att Place Hotel boasts 175 keys of newly built guest rooms. The select-service product has an upscale design that harmonizes with the surrounding offerings. Emeryville’s proximity at the nexus of San Francisco, Berkeley, and Oakland makes it centrally located for business and leisure travelers looking for high-quality but reasonably priced accommodations easily accessible by these different communities. Similarly, Bay Street Emeryville caters to a range of people by combining retail, entertainment, hospitality, and residential uses and by creating a diverse social hub. Ensemble approached the design of the Hyatt Place with a more customized version of the brand to tie in the local flavor of the Emeryville area. Customized features include a fully upgraded lobby and dining area with art created by local artists to reflect the culture of the surrounding area; an outdoor veranda with fire pits; enhanced and enlarged fitness center and the installation of oversized windows to promote daylighting and views of the Bay. Ensemble owns and operates the property. Address 5700 Bay Street Emeryville, CA, 94608 Keys 175 Keys Completion November 2016 Development Cost $34M Financing Bank of Ozarks Team Members Involved Each of the proposed Ensemble’s team members were involved in development of this project. Reference Charles Bryant AICP Community Development Director, City of Emeryville (510) 596-4361 cbryant@emeryville.org ENSEMBLE PROJECT EXPERIENCE Emeryville/San Francisco Bay ENSEMBLE PROJECT EXPERIENCEENSEMBLE PROJECT EXPERIENCE Emeryville/San Francisco Bay Hotel Maya, Long Beach, CA Hotel Maya a Doubletree by Hilton was acquired in March 2005 as the Coast Hotel. Ensemble sought to redevelop the hotel to live up to its full potential as a destination waterfront property and maximize long-term net income. After an extensive renovation it was repositioned as a design award winning boutique hotel in 2009. In 2010 the hotel franchised as Hilton Doubletree to enjoy the connectivity and national marketing programs available through Hilton Hotels. The 199-room Mayan themed full service hotel has enjoyed tremendous revenue growth. Included in the growth are food and beverage revenues from its Fuego specialty restaurants. From the development of our multiple outdoor event spaces the hotel now hosts hundreds of weddings and banquets every year. The nine acres of resort style land provide guests with gardens, a private beach, marina access, and a beautiful pool and lounge. Subsquent renovations were recently completed to include new room flooring and addition of meeting space. Ensemble owns and operates the property. Address 700 Queensbay Drive Long Beach, CA Keys 199 Keys Renovation Completion 2009 Development Cost $40 M Financing Bank of America Team Members Involved Each of the proposed Ensemble’s team members were involved in development of this project. Reference Marchell Hilliard Bank of America (213) 6621-4837 marchell.hilliard@baml.com ENSEMBLE PROJECT EXPERIENCE ENSEMBLE PROJECT EXPERIENCEENSEMBLE PROJECT EXPERIENCE Marriott Ithaca Philadelphia, PA 159 Keys Bernardus Lodge & Spa Carmel Valley, CA 73 Keys Ñ Ò Residence Inn by Marriott Long Beach, CA 178 Keys Courtyard Marriott Navy Yard Philadelphia, PA 172 Keys Camden Waterfront Hilton Garden Inn Long Beach, CA 180 Keys ENSEMBLE ADDITIONAL PROJECT EXPERIENCE Pendry West Hollywood West Hollywood, CA The Pendry West Hollywood will serve as Montage Hotels & Resorts’ flagship property for its new luxury lifestyle concept and 40 luxury residences. The Project will feature 149 guestrooms, 6,000 square feet of irreplaceable, full motion digital signage, 25,000 square feet of world-class, chef-driven restaurant and entertainment venues, retail space, multiple rooftop decks and lounges, and 400 subterranean parking spaces. Located at the corner of Sunset Boulevard and Olive Drive, the Pendry Hotel and Pendry Residences by Montage Hotels & Resorts is located in the heart of Los Angeles’ iconic Sunset Strip. The Project will be an international venue offering owners and guests unprecedented hospitality, entertainment, and luxury living, surpassing anything that Los Angeles has to offer and rivaling the world’s premier lifestyle destinations. Address Sunset Boulevard and Olive Drive West Hollywood, CA Keys 149 Keys, 40 Luxury Residences, 5 Affordable Housing Units Completion Late 2019 Development Cost $415M Team Members Involved AECOM Capital Reference Jason Herthel President and Chief Operating Officer, Montage Hotels & Resorts 1 Ada Parkway, Suite 250 Irvine, California 92618 m (305) 606-9811 o (949) 715-5007 JHerthel@montagehotels.com AECOM CAPITAL PROJECT EXPERIENCE Ivy Station Culver City, CA Ivy Station is a transit-oriented, mixed-use development ideally located immediately adjacent to the Culver City Station on the Metro Expo Light Rail line, offering direct and continuous access to Downtown Los Angeles and Santa Monica. Situated on 5.53 acres at the confluence of three of the Westside’s most important arterial thoroughfares, Ivy Station will consist of 205,000 square feet of state-of-the-art office space, 200 stylish rental apartment units, a boutique 148-key hotel, exciting retail stores and popular and unique restaurants, over 1,500 parking stalls, and more than two acres of shared open park space. The hotel component of Ivy Station will include 148 rooms and offer a boutique lifestyle positioning to attract both visitors to the Los Angeles area as well as local residents. Hotel amenities will include approximately 9,790 square feet of courtyard space, a fitness center with terrace space, a 4,000 square foot ballroom, meeting space, and a 6,200 square foot rooftop pool/deck and event space. The hotel will place significant focus on creating memorable public spaces in the lobby, lobby bar, restaurant, and rooftop lounge, and will serve as a social destination in the creative local market. Address Washington Boulevard and National Boulevard, Culver City, CA Keys 148 Keys, 205,000 SF of Office, 47,000 SF of Retail & Restaurant, 200 Apartments Completion Mid 2019 Development Cost $359M (Total Cost) $62M (Hotel Component) Team Members Involved AECOM Capital Reference Matt Jacobs Project Manager, Biederman Redevelopment Ventures 441 N. Beverly Drive, Suite 205 Beverly Hills, CA 90210 m (917) 930-0002 o (323) 782-0115 mjacobs@brvcorp.com AECOM CAPITAL PROJECT EXPERIENCE Town & Country Resort and Convention Center San Diego, CA The Town & Country Resort and Convention Center is located on 39.4 lushly- landscaped acres within the Mission Valley area of San Diego, approximately five miles north of Downtown San Diego. Consisting of 954 rooms spread over 38 buildings and a 225,000 square foot convention center, Town & Country is ideally located immediately adjacent to the 27-hole championship Riverwalk Golf Course and is connected to the popular Simon Properties Fashion Valley Shopping Center, the largest and highest grossing shopping center in San Diego. AECOM Capital, along with their Partner, is currently renovating Town & Country. The renovation will transform the asset into a more upscale, contemporary, vibrant property that will appeal to both group and leisure customers, and will offer a high-quality experience with superior resort amenities at an affordable price relative to downtown San Diego. Planned renovations include a new lobby, entry drive, parking garage, spa and fitness center, a centralized food and beverage building, a park, and a water amenity. Additionally, the room count will be reduced to 688 fully renovated rooms. Address 500 Hotel Circle North San Diego, CA Keys 688 Keys Completion Late 2018 Development Cost $205M Team Members Involved AECOM Capital Reference Darcy Miramontes Executive Vice President, Jones Lang LaSalle 4747 Executive Drive #400 San Diego, California 92121 m (858) 945-2297 o (858) 410-6341 Darcy.Miramontes@am.jll.com AECOM CAPITAL PROJECT EXPERIENCE Jebel Dhanna Hotel and Resort Sharm El Sheikh, Egypt 290 Keys Function Architecture & Design Construction CityCenter Las Vegas, Nevada, United States 4800 Keys Function Program Management Construction Management Ñ Ò Chedi Hotel Muscat, Oman 159 Keys Function Program Management/Construction Management 2016 Rio Olympic and Paralympic Games Rio de Janeiro, Brazil 120 Hectares Function Architecture & Design Engineering Pedestrian Modeling Planning and Consulting AECOM PROJECT EXPERIENCE One Bryant Park New York, New York, United States 2.1 Million SF Function Construction Environmental Services Program Management/Construction Guangxi Yangshuo Banyan Tree Resort Guilin, Yangshuo, China 142 Keys Function Architecture & Design Halley VI Research Station Brunt Ice Shelf, Antarctica 8 Modules Function Architecture & Design Engineering Environmental Services Planning & Consulting JW Marriott Indianapolis Indianapolis, Indiana, United States 1005 Keys Function Construction Program Management/Construction Management Ñ Ñ Ò Ò One World Trade Center New York, New York, United States 11 Million SF Function Program Management/Construction Management Abu Dhabi International Airport Abu Dhabi, United Arab Emirates Midfield Terminal 6.8 Million SF Function Construction Cost Management Planning & Consulting AECOM PROJECT EXPERIENCE FINANCIAL CAPACITY Financial Statements Ensemble is a closely-held private company and does not, as a matter of course, audit and/or publicly make available its financial statements. That said, Ensemble does maintain a healthy balance sheet including a broad array of investments in both marketable securities and real estate investments, and is often called upon to issue completion guarantees and carve out recourse for lenders. If Ensemble is selected to participate in the project, the company will be happy to provide financial statements and other detailed financial and credit information to assure its ability to fulfill its role as a valued consultant. AECOM Capital is a wholly-owned subsidiary of AECOM, a publicly traded, Fortune 500 Company. Audited financials are public information and can be found on AECOM’s Investors website: http://investors.aecom.com Current Real Estate Portfolio Ensemble has developed well over four million square feet of properties and manages a portfolio containing over fifty commercial properties thus far. A collection of properties in urban, resort and suburban settings, Ensemble’s hospitality portfolio currently consists of twelve hotels encompassing nearly 2,227rooms, equating to hotel real estate value in excess of $700 million. AECOM Capital has closed on, or is in contract for, approximately $3B / 8M SF of real estate development projects. Based in gateway cities across the US, AECOM Capital focuses on residential, hospitality, retail, and mixed-used projects. AECOM Capital’s hospitality portfolio includes four properties and 1,235 keys located throughout California. Copy of Form 10K A copy of AECOM’s SEC Filings can be found at http://investors.aecom.com. FINANCIAL CAPACITY FINANCING PLAN AECOM Capital/Ensemble has a significant history of financing projects ranging from $20-200million. AECOM Capital is a publicly traded company with global financing and equity partner relationships. Ensemble’s strength is the ability to design the ideal, balanced capital stack to protect and preserve capital. The team has a history of thorough, grounded-in-research to mitigate risk and identify values other may overlook. The institutions to the right highlight the depth of our existing equity and debt partners that we would draw from to finance the Oyster Point Hotel project. AECOM Capital and Ensemble anticipate financing the hotel with traditional financing ratios between equity and debt. AECOM Capital and Ensemble will source 100% of the equity required from our collective traditional sources (internally and externally). We further reserve the right to explore alternative structures including but not limited to local and regional subsidies and development incentives. The exact financing structure is predicated upon some currently undetermined factors (ultimate cost, anticipated performance, special requests or stipulations from the City, nature of the ground lease, etc.) that it would be inadvisable to express more specifically that this time. With this being said, we anticipate the cost to build this hotel to be between $275,000-$375,000 per room. Regardless of this, our goal would be to find a solution that delivers the highest possible value and guest experience at the lowest feasible cost. We anticipate to negotiate the ground lease with the City on mutually agreeable terms that will allow the project to be financially viable. Length of terms, structure and stipulations will all be negotiated in good faith once the hotel project is more further defined. PROJECT PROCESS & CONCEPT AECOM/Ensemble take a unique approach to branding, programming, architecture, and financial feasibility. Our approach is to create the right hotel experience through more rigourous, proven and sustained process. We excel at opportunities where our challenge is to make a hotel succeed within or adjacent to another master development. Our job is to solve for the hotel design/brand/style that will complement and support the master development and succeed economically in the market. To accomplish this we run a detailed process that is both interactive and iterative with the master developer. (See development flow chart on following page.) In the case of the Oyster Point hotel, we need to meet and understand in much more intimate detail all we can about the site and environment and the desires and goals for the City on this site. After we gather all of this information, we will then present ideas and seek feedback. We build consensus for the conceptual of the hotel in stages, testing different design and brand/style ideas at a concept level until we have something we and the City both like and then we push that concept further, testing our market assumptions, refining our proforma, getting better cost information and refining the design, all the while meeting regularly with the City to make sure we are on the right track. We don’t do this in a vacuum as if this were a stand-alone hotel. This is done with the City as our “client” as much as our ground lessor. We have done this successfully many times, such as recently with Liberty Trust at the Courtyard Navy Yard in Philadelphia, with Madison Marquette and UBS on the Hyatt Place in Emeryville, with DDR and Cypress Equities on the Hyatt Place in Pasadena, with Rimland Company on the Marriott Hotel in Ithaca, and with the Bohannon Company and David Bohannon on Hotel Nia in Menlo Park. PROCESS Hyatt Place Emeryville/San Francisco Emeryville, CA Hotel Nia Menlo Park, CA Courtyard at Navy Yard Philadelphia, PA Dream Inn Santa Cruz, CA PROCESS - DEVELOPMENT FLOWCHART Entitlement Assumptions DEVELOPMENT PROCESS CONCEPT PHASE DUE DILIGENCE PHASE ENGAGEMENT PHASE CLOSING PHASE ANALYSIS TRACK CAPITAL/ PARTNERSHIP TRACK OPERATIONS TRACK DESIGN, CONSTRUCTION, & ENTITLEMENT TRACK CONCEPT PACKAGE • Investment Summary • Market Hypothesis • Capital Hypothesis • Development Budget • Pre-Development Budget (all phases) • Due Diligence Planned • Projected Schedule • Concept Pro Forma Preliminary Land Control Document(s) FIT STUDY SCHEMATIC DESIGNDESIGN DOCUMENT PROCESS CONCEPT DESIGN DESIGN DEVELOPMENT CONSTRUCTION DOCS DUE DILIGENCE PACKAGE • Investment Summary • Market Analysis • Development Concept • JV Structure/Fees • Due Diligence Pro Forma • Pre-Development Budget • Update Schedules ENGAGEMENT PACKAGE • Investment Summary • Market Analysis • Development Concept • JV Structure/Fees • Engagement Pro Forma • Pre-Development Budget • Updated Schedules • “Are we still OK to close?” CLOSING PACKAGE • Investment Summary • Development Concept • Comparable Penetration • Closing Development Budget • Closing Pro Forma • Final Capital Stack/JV Fees Hypothesis • Program Fit Study Concept Development Budget/Schedule Entitlement Plan Concept Program/Design Preliminary Pricing Due Diligence Budget/Schedule Pre-Development Budget Update Due Diligence Assessment Entitlement Process Internal DRB Contractor Input Engagement Budget/ Schedule Permit Process Contract Bidding Construction Contract Closing Budget/Schedule Branding/Management Evaluation Branding/Management Initiation (Term Sheets/LOI) Branding/Management Negotiation Branding/Management Execution Hypothesis • Operating Model Market Research Capital & Partnership Evaluation Capital & Partnership Initiation (Term Sheets/LOI) Capital & Partnership Negotiation Capital & Partnership Execution Hypothesis • Capital • JV Options Debt/Equity Packages Hypothesis • Program • Investment Strategy Diligence Budget Projected Schedule Concept Pro Forma Engagement Pro FormaDue Diligence Pro Forma Closing Pro Forma Due Diligence Checklist • Historicals/Tax/Title • Appraisal • Leases/Operations Contracts • Third Party Findings Draft Capital Plan Final Land Control Document(s) Pre-Development Budget Update Pre-Development Budget Update CONSTRUCTION PHASE Financial Reporting Pre-Opening Sequence Construction Management Capital Funding Preliminary Project Vision Our goal is to partner with the City to deliver an ideal match of the site and the setting with the surrounding users and city residents to create a best-in-class hotel for Oyster Point, South San Francisco and the entire Bay Area region. Given the site’s lack of freeway visibility or immediate access to the Biotech cluster, located along Grand and Gateway Avenues, we would endeavor to deliver a unique hotel experience that takes full advantage of its waterfront location with unequaled picturesque views. We would look to create a one-of-a-kind hotel, an oasis that evokes an “ah-ha” reaction to the guest turning the corner and seeing our property for the first time. The key to this would be to create memorable indoor and outdoor spaces with a distinct yet sustainable architecture as well as vibrant and unique décor, food, service culture, and unexpected amenities. Our vision is to provide an authentic destination experience with a genuine sense of place. Configuration The hotel would be upper scale in nature, lifestyle in design and orientation, and would likely encompass between 200- 250 rooms in the first of possibly two phases of development, contain a signature three meal restaurant, have amazing indoor and outdoor meeting space (on the order of 10,000-20,000 SF in total), and will be full of appropriate yet unique programming and experiences for its guests. The hotel will be seamlessly integrated into the larger mixed use Oyster Point development, allowing it to exceptionally service guests and surrounding employees, but will also have a strong self-identity that will be open and welcoming to the public in general. Developing the right balance between servicing guests, business travelers and servicing the rest of the community at large will be a key point of emphasis in our design and programming process, and to the ultimate success of the project. The site orientation will take advantage of the waterfront views and be positioned to reduce energy by orientating the hotel to receive ample ambient natural light while reducing solar glare. Tall windows and vertically glazed areas allow natural light to reach deeply into room interiors. The glazed areas allow visitors and hotel guests to connect with the outside, and provide stunning views of the waterfront. CONCEPT & VISION ACTIVATE THE WATERFRONT Energize Illuminate Enhance CREATE A DESTINATION Unexpected Oasis Business & Social Sense of Place THINK OUTSIDE THE BOX Architecture Brand Service & Amenities PART OF THE NEIGHBORHOOD Special Events Everyday Occasions Sense of Familiarity COLLABORATE & CONNECT WITH City & Residents Greenland USA Biotech Companies PUT THE HOTEL ON THE MAP WE BELIEVE THE HOTEL SHOULD… ACTIVATE THE OYSTER POINT WATERFRONT ARCHITECTURE INTEGRATED WITH NATURE ARCHITECTURE AS CANVAS BRING THE INSIDE OUTSIDE ACTIVATE THE WATERFRONT F&B FRAME THE WATER LIKE A CANVAS ENERGETIC PUBLIC SPACES INSPIRE OPENNESS & CONNECTIVITY BE FLEXIBLE & MULTI -FUNCTIONAL EVENT SPACES DELIGHT WITH UNIQUE DEVELOP CONTRAST & TEXTURE INTIMATE SPACES INSTILL ULTRA CASUAL EVOKE VIBRANCY BE PRACTICAL BUT UNIQUE FEATURED F&B DELIVER CHOICES EMBRACE THE MARINA VIEW LANDSCAPE WITH LAYERED BREAKAWAY SPACES INSTILL MEANDERING STROLLS NURTURE THE LUSH & COLORFUL AS WELL AS ECOLOGY & SUSTAINABILITY LOCAL INSPIRATION When spaces are comfortable and welcoming, they become spots where people simply love to hang out. We will begin the Oyster Point project with questions: ‘What are the favorite local gathering places for surrounding employees? How can our project help to bring travelers together?’ When the answers are in place, we can craft something greater than a regular hotel stay. LOCALS=AUTHENTIC =SUCCESS COLLABORATION Ensemble/AECOM collaborated on this RFQ with Salas O’Brien and Ellumus. • Years in business: 42 (founded 1975) • Employees: 300 • Annual Revenue: $70 million • Active Projects (Revenue): $47 million • Areas of focus: Hospitality, commercial, hospitality, retail, critical environments, government • Salas O’Brien’s firm has 13 offices throughout the country and one located in Oakland. Proximity to the site and experience with local permitting and other processes is one of our advantages. • Salas O’Brien’s architectural team resides in our Oakland and Seattle offices. The City of South San Francisco will have immediate access to our team. • Notable hotel projects include: Hyatt Regency Broadway Plaza (LA, CA), Sheraton Boston Hotel (Boston, MA), Desert Horizons Hotel (Indian Wells, CA) and the Disneyland Hotel (Anaheim, CA), Airport Way Hotel Seattle,WA) Firm Overview Highlight Project Silver Cloud Hotel, Carr Street Landing Tacoma, WA 94 Keys/54,540 SF Built on a pier at the Carr Street Landing in Tacoma, this 94-unit hotel is positioned to take advantage of the view along Tacoma’s waterfront. Salas O’Brien coordinated all land use and environmental issues with the developer and neighboring community, resulting in a program that was sensitive to the neighborhood while creating the least negative impact to the waterfront area. The resulting project enhanced the waterfront area while providing lodging with excellent accessibility to downtown. Salas O’Brien was involved in the waterfront development permits, schematic design, design development, design review board approval, and all permits (aside from building permit). • Years in business: 7 (founded 2010 • Multi-disciplinary MWESB (Federal / Washington) Design Firm • Located in Bellevue, Washington • Areas of focus: Hospitality and mixed-use • Services offered: Branding and strategy, Master Planning, Landscape, Architecture and Interior Design • Ellumus is culturally and professionally diverse and renown for our intuitive and perceptive understanding of societal, historical and environmental conditions that challenges the success of projects • Known for succesfully integrating brand, master planning, architecture, interiors, lighting and landscape into beautiful, holistic design, driven by a powerful idea, tailored to the essence of the client’s investment vision. • Notable hotel projects include: Mountain Lodge (Telluride, CO, Teton Lodge (Jackson Hole, WY, Greenland Xuhui Mixed Use (Xuhui District, Shanghai), Hyatt Hotel @ Hopson One (Shanghai China) Firm Overview Highlight Project Shanghai Marriott Riverside GreenLand Luwan, China 291 Keys/28 Floors Greenland Luwan Riverside CBD was the first retail mixed use complex developed by one of China’s top real estate developer in Shanghai-Greenland China. Located in the southern part of Luwan District in Shanghai. This project was developed with an intention to create an exclusive destination of shopping, entertainment and leisure to activate the river front. The 100 meter tall, five-star hotel is located at the south side to take the advantage of views of the river and World Expo site.Landscape and building blend the best of nature and man-made environment, providing the “City within a City” experience. ellumus.comsalasobrien.com For the Oyster Point development RFQ, SALAS O’BRIEN, lead architect, has joined forces with ELLUMUS. SALAS O’BRIEN and ELLUMUS have experience with highly innovative and sophisticated design projects as well as with local design and construction practices. This combined experience enables our team to deliver compelling designs that at the same time, focus on constructability, cost, and schedule. TOP REASONS ENSEMBLE/AECOM CAPITAL SHOULD BE SELECTED TO CREATE THIS HOTEL We intend to work closely and collaboratively with the City to create a hotel experience wholly relevant to its culture, location and its guests. We will create refreshing, stimulating new-look environments that are a relief from the norm. We won’t just sell rooms; we will sell feelings, moods and guests’ physical needs in surprising ways. We intend to design & build an environmentally outstanding architectural icon that will complement the existing surroundings and pay homage to the adjacent Oyster Point environment. We will bring local development knowledge garnered from our current development process for our team’s recent Bay Area Hotel projects. From the first touch and first smile to the head sinking into a pillow, we will craft memorable experiences. Staff will be naturally warm, friendly and savvy, they will be eager in an unassuming way to ensure that every need is met in an effortless manner. A powerful sense of connectedness to the entire world is a given. Making that same connection to fellow travelers is not always so easy. We will create an environment that fosters and eases meeting, greeting and exchange of stories and ideas. Our DNA is instilled with carefully balanced character traits that induce invigoration when needed and intrigue when not expected. We are always interested in new ways of doing things and endlessly seek new ways to keep our thinking fresh and our guests’ ‘outstanding reviews’ inevitable. We intend to start new conversations! 1 2 3 4 5 6 7 8 9 THANK YOU Building Northern California BDIG BaWiewQevelopmentGroup March 31, 2017 Dear Miky, Chris and Ernesto, We are pleased to submit our qualifications for this exciting opportunity on Oyster Point. The compelling growth of SSF as the global hub of bio -tech gives us the confidence to approach this project with an eye toward creating a landmark project to be the cornerstone of our portfolio. As you will see in the following documents, we have assembled a highly - qualified team to develop this site. This group of professionals, several of whom I believe will be familiar to you, are uniquely capable of bringing this project to fruition. The key members are: • Bayview Development Group Inc.(BDG) • Intercontinental Hotels Group (IHG) • Steinberg • Ball + Winter The team plans to structure a joint venture between BDG and IHG. We will in turn retain both Steinberg, given their hospitality track record and in -depth familiarity with South San Francisco and the site itself, and Ball + Winter to ensure we fully understand the cost drivers unique to this site. We are very excited about the potential of this location and feel we can provide the right product, from quality and aesthetic to positioning and public interface. Please see the attached documents that outline the team's qualifications and initial thoughts around hotel brands and positioning. You will note on pages 15 and 34 (Design Guidelines) in the IHG document that we would plan to utilize all 350 keys divided across two brands. We look forward to exploring the City's preferences for event and meeting space if we are chosen for the next round and to answering any questions that you may have. Kindest regards, Ted McMahon VP of Finance and Development 60 S Market Street, Suite 450, San Jose, CA 95113 TABLE OF CONTENTS SECTION 1. BAYVIEW DEVELOPMENT GROUP COMPANYOVERVIEW ................................................................................................... ............................... 1 U. S. PROJECTS .............................................................................................................. ............................... 1 HOTELPROJECTS ......................................................................................... ............................... 2 CHINAPROJECTS ............................................................................. ............................... 2 DEVELOPMENTTEAM BIOS ............................................................................................ ............................... 4 * Note: Ball + Winter Bio in Development Team Bios SECTION 2. INTERCONTINENTAL HOTELS GROUP EXPRESSIONOF INTEREST ............................................................................................. ............................... 1 CREDENTIALS & QUALIFICATIONS ................................................................................ ............................... 2 EVEN HOTELS DEVELOPMENT EXPERIENCE .................................................................... .............................29 NOTABLE EVEN HOTELS PROJECTS ................................................................................ .............................30 EVEN HOTELS DESIGN ELEMENTS ................................................................................... .............................34 OTHER NOTABLE DEVELOPMENT EXPERIENCE ............................................................... .............................45 SECTION 3. STEINBERG FIRMOVERVIEW ........................................................................................................... ............................... 1 HOTELDESIGN PROJECTS .............................................................................................. ............................... 2 TEAMBIOS ..................................................................................................................... .............................22 SFCT_IQN 1 BAYVIEW DEVELOPMENT GROUP Company Y Overvie w /Description Bayview Development Group ( "BDG "), headquartered in San Jose, CA, is a privately held real estate develop- ment and investment company focused on high - density, mixed -use projects in Northern California. As an affili- ate of Beijing Damei Investment Co. ( "Beijing Damei"), a mixed -use developer in China with recent and current r projects totaling over 16 million square feet, BDG benefits greatly from their experience and financial backing. BDG and Beijing Damei bring experience and capital markets relationships that help create exceptional value for both our investors and the communities in which we build. 1� U.S. Projects SJSC Towers, San Jose, California Location: Across the street from City hall between 4th and 5th Street in downtown San Jose. Project: Mixed -use residential project with approx. 610 units in two 28 -story towers and first floor retail /office. Total Construction Area: 1,100,000 square feet Status: Acquired 1.4 Acres from the San Jose Redevelopment Agency for $12.8M (All cash in 2015) / Entitlement received in March of 2017 Kifer Office Park, Santa Clara, California Location: 3689 Kifer Road, Santa Clara Project: A three- story, Class A office building Total Rentable Area: 140,440 square feet Present Leased: 100% Status: Acquired for $89.5 million all cash in 2016 Lawrence Station Development Site, Santa Clara, California Location: On the corner of Lawrence Expressway and Kifer Road with a prime location that just 1/3 of a mile to the Lawrence Caltrain Station Project: Entitled five - story, Class A office building with a neighboring five - story, 917 -stall parking structure Total Leaseable Area: 170,000 square feet Status: Acquired as part of a small portfolio with entitlement in 2016 for $14.5million all cash Hotel Projects c 2AK__ China Proj- � :, Oakwood Residence Damei Beijing, Beijing, China Rooms: 171 Hotel Type: Residential hotel Location: Within the Damei Center, a 3,767,368 square feet multi -use complex with Class A office, retail center and art gallery located in core area of CBD East Expansion, Chaoyang District, Beijing Hotel Operator: Oakwood Worldwide Status: Officially opened Nov 2016 The PUTT House, Beijing, China Location: Located between the east 4th ring road & 5th ring road, surrounded by parks, central business district & sports center Project Type: Boutique hotel and office Total Construction Area: 30,000m2 (322,917 sq, ft.) Status: The construction will start in Oct 2017 Central Business District International Building, Beijing First real estate development project of Beijing Damei Location: The core of CBD in Chaoyang District, Beijing Project: 5A office building Building Height: 100m high (328 ft.) Total Construction Area: 80,000m2 (861,113 sq. ft.) space Design Concept: Sleek & modern design Status: Completed in 2007 and all sold out 2 r r— f 1. .1*. Damei Center, Beijing Location: Central part of CBD east expansion, easy access to all transportations Total Lot area: 48,000m2 (516,668 sq. ft.) Total Construction Area: 350,000m2 (3.8mil sq.. ft.) Project: Mixed -use business complex of 5A office buildings, residential hotel (Oakwood Residence Damei Beijing), retail /restaurants, grand gallery /theater in four towers Building Height: 2 x 150m (492ft), 2 x 100m (328 ft) space Design Concept: Integrated balanced German style design with oriental philosophical Zen spirit Status: Completed in 2015 Damei Center Phase II, Beijing Location: Core area of CBD East Expansion, Chaoyang District Beijing Project: 8 luxury courtyards houses Total Construction Area: 86,000m2 (925,696 sq. ft.) above the ground and ]50,000m2(1,614,S86 sq. ft.) underground Status: Design stage Damei City Plaza, Beijing, China Location: Xiaohongmen township at the Southeast 4th ring road of Chaoyang district Project: Mixed -use business complex of 5A office, SOHO office, serviced apartments and boutique retail Total Construction Area: 300,000m2 (3,552,090 sq. ft.) Status: Land acquired — Master Planning Phase Yukou Business and Recreational District, Beijing, China Location: Northwest of Pinggu New City, 5 kilometers from the town center, 12 kilometers to highway, 35km to Beijing Intl airport. Project: Urban planning project, a functional integration of headquarters economy, industrial clusters, conference and exhibition, recreational facilities Total Construction Area: 700,000m2 (173 acres) Status: Land acquired - Master Planning Phase e Development Team Bios Lucy Li - President of Bayview Development Group Lucy established Bayview Development Group (BDG) in 2015 and began with an acquisition of a 1.4 acres site in downtown San Jose which is currently being entitled for over 600 residential units and 25,000 square feet of commercial space. She and her family established Beijing Damei Investment Company (Damei) in Beijing China in the 1990s and now Damei is actively expanding into the US market through its cooperation with BDG. Lucy oversees and shapes the vision of company's planned US growth and leverages the experience of Beijing Damei and her 15 years of experience in Real Estate development and investment. Lucy has been deeply involved in high -end real estate development with a project portfolio of over 1.5 million square feet in China including Oakwood Residence, as well as multiple multi - family assets here in the US. Edward McMahon - VP of Finance and Development of Bayview Development Group Edward oversees BDG's investment portfolio and development projects. He recently completed the entitlement of a 1 million+ square foot residential project in San Jose and closed a $50 million financing on an acquired office complex. He has spent most of his career in finance, real estate and construction with a number years working in emerging markets. Experience of note include heading up construction for Blu Homes, privatizing a large (6 million square feet) industrial property in the Baltic States and establishing tax- credit enhanced real estate investment funds for banks in New Orleans and Baltimore. He is a member of SPUR and active in the INSEAD alumni community. Lucas Liu - Director of Design of Bayview Development Group Lucas Liu first started his career as an architectural design and urban design professional after receiving his undergraduate and postgraduate degrees in architecture from University of Melbourne, followed by accreditations from Architects Accreditation Council of Australia. Early in his career, Lucas worked for leading architectural and urban design companies such as Woods Bagot and Denton Corker Marshall. He worked on a large variety of project types including high, medium and low density residential, commercial office buildings, campuses, large scale shopping centers, hotels and master planning of new urban areas. He played key design roles as well as project management roles on prominent projects such as Chongqing D9 Complex (450,000 sqm /4.8M sq. ft. of residential, hotel, office, shopping and entertainment complex), Adelaide Balfours Apartments, Sunshine 100 residential towers and North Melbourne residential development project. After years of working as a designer and architectural project consultant, Lucas went on to seek new career development opportunities in real estate development and joined Greenland Group, one of the largest real estate developers in the world based in Shanghai, China. As the lead Design Manager in Greenland Melbourne, Lucas managed the planning, design and development process and led the project team of architects, engineers and consultants on a large -scale high- density residential development in Melbourne consist of one landmark 37 -story tower in its first stage, and three smaller towers and townhouses in second and third stages with a total of 1,100 residential units. Lucas joined Bayview Development Group Inc. /SJSC Properties LLC as Director of Design in 2015. Since then he has been focusing on the product positioning, architectural design, planning, brand design, and project management. Andrew Ball - Partner at Ball + Winter Andrew Ball of Berkeley is a Partner with Ball + Winter, a consulting firm specializing in Real Estate Development services, Project Design, and Preconstruction and Construction Management for large commercial projects. He was previously President for Suffolk Construction West Region and prior to that served as President and CEO of Webcor Builders; both companies provided General Contracting services for Residential, Commercial, Hospitality and High Technology Projects. During Mr. Ball's tenure, Webcor built the Intercontinental Hotel, the W Hotel and the Saint Regis in San Francisco. Mr, Ball is a California Water Commissioner, a Board member of the Bay Area Council, and co -Chair of its Water Committee and has served as a Board member of the Silicon Valley Leadership Group heading up Water Policy. He has been involved in other industry organizations including the San Francisco Chamber of Commerce, the San Francisco Center for Economic Development, SPUR, Stanford Center for Integrated Facility Engineering, and UC Berkeley's Center for the Built Environment. 4 S ECT INTERCONTINENTAL HOTEL GROUP r 17 Expression of Interest InterContinental Hotels Group ( "IHG ") is excited to confirm our strong interest in and commitment to supporting the development and operation of a Hotel Indigo and an EVEN Hotel in South San Francisco at Oyster Point. We are pleased to present our experience, credentials and the Hotel Indigo and EVEN Hotels brands for the hotel development opportunity. IHG recognizes the importance of this project to the City of South Francisco (the "City "), and we also recognize the City's desire to build first class hotels that complement the innovative and progressive vision of Oyster Point. IHG is one of the world's leading hotel companies, with more than 350,000 people working across almost 100 countries in over twelve distinct brands to deliver Great Hotels Guests Love®. Our diverse portfolio of differentiated brands are well known and loved by millions of consumers around the world. We have the right hotel brands for both our guests and owners, whatever their needs, and we invest in our brands and the teams who support them. . We are an $8.13 billion market capitalization global organization with a broad portfolio of twelve hotel brands that operates hotels in three different ways - as a franchisor, a manager, and on an owned and leased basis. Please use the following link to access our 2016 annual report which contains financial statements: hMs-Nlhqplc -cdn azureedae net.'fileslreLs rts ar2Ql6/fltes/pdf /2016 annual report pdf7d1 2017030 IT 1 1020OZ In addition to being a world class hospitality company, IHG is also committed to the cities and communities in which we operate. We use the IHG® Green Engage system, an online sustainability management system that tracks a hotel's environmental performance and recommends ways to improve it. From energy and water use to waste management, the system helps our hotels use fewer resources, preserving the authentic nature of the destinations. Our commitment to Responsible Business is being activated around the world. Using our Green Engage tools, we have helped our hotels and resorts reduce energy consumption by up to 25 %. Just like South San Francisco and the greater Bay Area, the Hotel Indigo and EVEN Hotels brands are rapidly expanding. Growing these brands in the western regions of the United States, specifically within South San Francisco, is a top priority for IHG. We see this project as an ideal fit for both Hotel Indigo and EVEN Hotels and are committed to helping make the project a reality with Bayview Development Group ( "Bayview"). While we continuously look to expand our footprint, we grow our brands strategically, with the right hotels, in the right markets, with the right owners. With Bayview and the City of South San Francisco, we see an opportunity where all of these key success criteria are met. We have assembled an outstanding team that will work closely with Bayview to complement their strategy and vision for the development of the hotels at a one of a kind location in Oyster Point. Our goal is to help develop and operate an outstanding Hotel Indigo and EVEN Hotel, while building a long -term, mutually beneficial relationship with the City of South San Francisco. We understand the redeveloped Oyster Point will be designed to introduce a mix of uses that will meet the needs and interests of residents and students, and continue to attract visiting patrons, while emphasizing an urban "village feel" through an activated, pedestrian - friendly community plaza. We are confident that the Hotel Indigo and EVEN Hotels brand will strongly complement this design and vision, and a Hotel Indigo and EVEN Hotel will be a natural catalyst in the activation of the community. Thank you for considering IHG, Hotel Indigo, and EVEN Hotels for this project. We look forward to working with Bayview to help develop and operate two outstanding hotels at this iconic development project. hotel HOTELS ,.+INDIGO. InterContinental Hotels Group IHG is a global organization with a broad portfolio of hotel brands, including InterContinental® Hotels & Resorts, Kimpton Hotels & Restaurants, HUALUXE® Hotels & Resorts, Crowne Plaza® Hotels & Resorts, Hotel Indigo@), EVEN Hotels, Holiday Inn® Hotels & Resorts, Holiday Inn Express ®, Staybridge Suites®, and Candlewood Suites ®. IHG's Competitive Advantage IHG offers owners a unique competitive advantage combining preferred brands with IHG's 60 year history in the industry, along with the scale of one of the world's largest hotel companies. By becoming part of IHG, the proposed hotels will benefit from: One of the most respectable hotel management companies with over 800 hotels managed worldwide. The powerful operating system of IHG, including a dozen distinct hotel brands, the world's largest loyalty program with over 95 million members, 10 call centers, a Global Sales Team of over 400 professionals, and industry leading b7 ft" Gaup INIERCO*fTINENTA4 KIMPTON � xs �lt�NfDIGQ Cap HUALUXE [tiWME PLAZA •l3�tAdftl' •�•! resew. sr�reRloc� CANTLE-MM ...rb r. hotel website presence and functionality. 'iHG Rewards club nqt applicable to n Ktrn, ton" Hotels and Restaurants, tm t• Our experienced franchise support teams, along with IHG "s management f "claoed at a future date teams will provide for operational efficiencies at the hotels, and offering two brands targeted towards differentiated customer needs and segments will satisfy a larger demand base, thereby allowing for greater portfolio profitability. IHG Has Sign} f cant Scale IHG franchises, leases, manages or owns over 5,000 hotels and more than 754,000 guest rooms in nearly 100 countries, with over 1,400 hotels in its development pipeline. Over 350,000 people work across IHG's hotels and corporate offices worldwide. Global Sales &America Sales IHG's Global Sales organization manages over 2,000 accounts globally to deliver business to IHG branded hotels. Our teams leverage their long standing relationships with key global and regional corporate accounts that span across a wide range of key industries that are a perfect fit for our brand footprint (technology, biomedical and pharmaceutical, insurance, financial services, automotive, consumer goods, and entertainment). IHG Global Sales also manages other key account segments such as national associations, incentive buyers, international federations, and third party planning organizations to provide a fundamental base for sourcing transient and group sales opportunities. Under the Global Sales Organization is our Americas Sales team, who work in conjunction with our European Sales, China Sales, and Asia, Middle East and Africa Sales Teams to extend the reach of IHG branded hotels globally. Americas Sales Teams are managed and enabled through our Sales Force platform, Javelin, to ensure connectivity. 2 r' Loyalty Program - IHG Rewards Club IHG Rewards Club is the world's first and largest loyalty program with over 95 million members globally. It offers industry leading benefits and increased opportunity for point redemption across the IHG portfolio. Globally recognized, IHG Rewards Club has been named Best Hotel Rewards Program in the World consecutively since 2006. IHG Rewards Club provides members points per every stay at our over 5,000 hotels worldwide. Members can redeem their points for free night stays, car rentals, airline tickets and merchandising from our vast catalogue. IHG Rewards Club has 4 levels of membership: Club, Gold, Platinum and Spire. In the Americas, IHG Rewards Club members deliver nearly 45% of total rooms revenue to IHG branded hotels. Member benefits include: • Free internet to all IHG Rewards Club members. • Ability to earn Elite status faster by staying in three or more IHG branded hotels. • Ability to count reward nights toward earning Elite status, extra nights (in excess of 50 nights) will roll over towards the next year's Platinum Elite qualification. • Exclusive member -only, in -hotel perks. • Collecting points or miles. • Extended check out until 2pm (when requested and available). • Complimentary Weekday Newspaper. • Priority Check -InTA° for Gold and Platinum Elite members. • Complimentary room upgrades at check -in (if available) for Platinum Elite members. • Guaranteed room availability (72 hours in advance) for Platinum Elite members. • No blackout dates for Reward Nights. • Faster rewards by using a combination of points and cash. • Ability to redeem points for flights on over 400 airlines with Flights AnywhereTm. • IHG Rewards Club Concierge available to help guests find a specific merchandise reward. • Ability to earn points through our partners and other programs. Hotels benefit from: • Members provide 24% more revenue per stay than non - members • Members are 4.4 times more likely to use low -cost booking channels IHG 3 Effective Channel Management Our channel management strategy aims to deliver the highest quality revenue to IHG branded hotels at the lowest possible costs, recognizing that the guest experience changes .along the entirety of the travel journey. Guests use multiple devices and new technology to personalize their travel experience, from choosing where they want to go, to what they want to do, and, of course, where they want to stay. Our focus is therefore to deliver against a guest's needs across this journey, which we break down into five distinct steps: Dream, Plan, Book, Travel, and Share. We use our systems and technology to drive demand for IHG branded hotels, manage revenue per booking, and encourage guest loyalty, whereby delivering the highest quality revenues at the lowest possible cost and maximizing owner returns. However, we recognize that guest trends, technology, and the competitive environment are continually evolving and it is therefore important to keep ahead of new technologies and systems, and to continue to deliver a consistent, locally relevant, and differentiated guest experience. Our Booking Systems & Channels Our multi - lingual web and mobile sites, call centers, and global sales force allow guests to use the channel most appropriate for their needs to plan and book IHG branded hotels. We also recognize that social media has an important role to play as part of the booking process as a method of advocacy and influence. As a result, we have changed the way we communicate with guests, using social media marketing innovations to make connections between hotels and guests, and through our Guests Rating and Review tool, providing guests a forum to share their thoughts. Web and Mobile As hotels and other booking competitors continue to invest in the online experience, we expect direct web sales to continue growing at the expense of traditional reservation services. IHG was the first major hotel chain to offer branded mobile applications across all of our brands as mobile technology continues to be a growing booking channel. We continue to innovate in this area in line with advancing technology. Reservation Centers IHG operates ten central reservations offices globally, with 14 different language capabilities to help potential guests and IHG Rewards Club members with queries they may have in their travel planning and to make bookings. Digital Marketing IHG's digital marketing channels place your hotel first and foremost in front of customers to create demand, increase conversion, and optimize revenue. IHG is the industry leader on the forefront of digital marketing technologies. As the first hotel company to accept reservations over the internet in 1995, today our websites receive over 30 million visits each month. In 2015, IHG websites receive 415M visits, resulting in $5.413 of gross revenue, up 12% on the previous year. Mobile traffic to IHG websites accounted for 40% of visits, with a recorded annual mobile revenue of $1.213, up from less than $50M in 2010. IHG Mobile App • First hotel company to have apps across all major platforms • #1 rated travel app in iTunes • Generated $1.213 in mobile bookings in 2015 • Accessible in 15 languages 4 Architecture & Design Team — Technical Services Further, IHG has a comprehensive Architecture & Design team that helps deliver exceptionally designed properties and provides technical assistance to owners and developers of our brands. Comprised of architects, engineers, and interior designers, the team provides advice and consultation throughout the design and construction process to ensure economic and efficient operation through optimizing the spatial requirements and operational relationships in both front and back -of- the -house are -as of a hotel. By delivering unique design solutions that reflect our brand philosophy and exceed market expectations, our global professional design consultants help guide the planning and design phase to the specification, construction, and fitting -out process. We will coordinate with the construction timeline while working with the architects and designers to share best practices to ensure the property meets brand standards all while helping guide through the architecture, engineering, and life safety requirements. IHG Global and Greater San Francisco Bay Area Management Experience We operate hotels in three different ways — as a franchisor, a manager and on an owned and leased basis. We focus on the upper midscale, upscale and luxury segments of the hotel industry and have a targeted portfolio of brands individually tailored to meet guests' needs and occasions. As of December 31, 2016, IHG managed 845 hotels (222,073 rooms) of our 5,174 hotels (767,135 rooms) globally (approximately 30% of our rooms). i Franch se^ . ,c2" All of the major international multi -brand companies have significantly more representation that IHG in the greater San Francisco Bay Area. Because of this, we anticipate there to be far less internal competition with the other IHG hotels for bookings. Given IHG is underrepresented in the region and that there are no existing Hotel Indigos or EVEN Hotels in the greater San Francisco Bay Area, Bayview and the City of South San Francisco can take advantage of the pent up demand in our system for a South San Francisco location by affiliating with Hotel Indigo and EVEN Hotels. Furthermore, we have extensive management experience in the region as evidenced by the following list of IHG owned hotels. Hotel Name InterContinental Mark Hopkins San Francisco InterContinental San Francisco Holiday Inn San Francisco - Citric Center Holiday Inn San Francisco - Fisherman Wharf Holiday Inn Express - San Francisco Fisherman Wharf Staybridge Suites Sunnyvale Staybridge Suites San Jose_ Candlewood Suites Silicon Valley /San Jose Crowne Plaza San Jose - Silicon Valley City Room Owner Count San Francisco 383 Leadwell Global Property, LLC San Francisco 550 Continental Development Corp. San Francisco 388 Civic Hotel Company, LLC San Francisco 585 FelCor Lodging Trust, Inc. San Francisco 252 Summit Hotel Properties Sunnyvale 138 Hospitality Properties Trust San Jose 114 Hospitality Properties Trust Santa Clara 122 Hospitality Properties Trust Milpitas 304 Hospitality Properties Trust Resources to Complete Project Joel Eisemann, Chief Development Officer, The Americas Joel Eisemann is Chief Development Officer, Americas. He is also a member of our Regional Executive Committee. In this role, Joel is responsible for leading all development and conversion activities (both managed and franchised) in the Americas region across the company's brands. Joel is also responsible for the company's Transactions & Asset Management group for the Americas which handles dispositions, workouts and restructurings and asset management. Additionally, he also heads up the region's Owner & Franchise Services team which focuses on attracting, supporting and growing with those owners and franchisees who will strengthen the company's continued brand growth, distribution and preference. Joel was previously with Marriott International for 29 years, where he held several senior positions including Chief Owner & Franchise Relations Officer; Chief Development Officer, Select Service, and Extended -Stay Brands; Executive Vice President, Global Asset Management; and Senior Vice President, Lodging Development, Asia /Pacific, based in Hong Kong. Prior to joining Marriott, he was with Leventhal & Horwath in Tampa, Florida for 3 years. He serves on a variety of committees and boards including the AH &LA Government Affairs Committee, the AH &LA Hotel PAC, Fellow of the Cornell Center for Real Estate Finance, member of the Hotel Development Council at the Urban Land Institute, and on the Executive Planning Committee for the New York University International Hospitality Industry Investment Conference. Joel is a graduate of the Master of Professional Studies program at Cornell University's School of Hotel Administration, and he received his A.B. degree in Economics from Stanford University. Jolyon Bulley- Chief Operating Officer, Americas Jolyon Bulley is Chief Operating Officer, Americas. He is also a member of our Regional Executive Committee and is the longest serving member of IHG's Global Operations Council. In this role, Jolyon is responsible for leading Americas operations for franchised and managed hotels in addition to cultivating franchisee relationships and facilitating system growth by making IHG- branded hotels the first choice for guests and hotel owners. Jolyon and his team provide the services and support necessary to open new hotels in a timely manner. An experienced hotelier with a global outlook and a performance- driven mindset, Jolyon brings over a decade of experience at IHG across various divisions to his current role. Previously, he was chief operating officer for IHG's Greater China region where he led a portfolio of over 200 managed operating hotels & resorts with over 150 additional in the pipeline. He also had oversight of strategic planning across the region's hotel performance, food & beverage offerings, brand performance and owner relations. Lewis Fader - Senior Vice President of Operations for the Americas East Region and Canada Lew serves as Senior Vice President of Operations for the Americas East Region and Canada at Intercontinental Hotels Group PLC. Mr. Fader served as Vice President Operations, InterContinental Hotels & Resorts, North America of Intercontinental Hotels Group PLC. He was responsible for overall operations and performance of all InterContinental Hotels & Resorts in North America. Mr. Fader joined InterContinental Hotels Group in 1980, working at various InterContinental hotels located in cities such as New York, San Francisco, Geneva, Paris, and London. Throughout his tenure with the company, Mr. Fader opened five hotels and has worked as manager, Hotel InterContinental Sydney, general manager, Hotel InterContinental Los Angeles, general manager, Hotel InterContinental Cleveland and general manager and regional vice president operations, Hotel InterContinental Chicago. Mr. Fader earned a bachelor's degree in business administration at Catawba College and master's degree in professional studies from the Graduate School of Hotel Administration at Cornell University. r,re-" ol f eft ,rf !Vi'i'i iii I. i -fiow sr I A t I hote I Hotel Indigo Introduction - Making Travel Inspiring 6INDIGO. At Hotel Indigo® we serve the curious — people who are inspired by new places, new people and new ideas. With hotels in culturally diverse locations all over the world, no two properties are the same. Each is part of the pulse and the rhythm of a place, drawing on the story of its local area to inspire every aspect of the hotel, from intriguing design to distinctive local ingredients in our menus. The Hotel Indigo brand offers guests the individuality and character of a boutique hotel with the assured service of a leading global brand. Established in culturally -rich neighborhoods around the world, the brand reflects the neighborhoods it calls home and inspires guests with an approachable boutique experience. The brand is recognized globally with impressive design, engaging and tailored service, stylish decor, a great bar /cafe, and modem guest rooms. These elements provide investors with the ease of developing a Hotel Indigo property with consistent facilities and features, while ensuring inspiring and flexible design. Hotel Indigo targets leisure and business travelers with focused facilities and services that deliver just what its guests need at an attractive proposition to owners. We continue to strengthen the positioning of Hotel Indigo through innovative marketing campaigns such as 'Flavors of the Neighborhood' and 'Sounds of the Neighborhood' — locally inspired food and music programs for guests and the wider community. These campaigns allow guests to have unique, local experiences and also drive greater awareness for the Hotel Indigo brand. About the Brand • The first Hotel Indigo was the Hotel Indigo Atlanta Midtown, opened in October 2004 • Industry's first branded boutique hotel • Combines the consistency of a branded hotel with the unique design and service of a boutique property • Located in urban and near -urban markets proximate to business, restaurants, and entertainment venues • Delivers a superior guest experience and the distinct character of the neighborhood and the community About the Guests • The Savvy Individualist • Hotel Indigo guests share common attributes that express who they are and how they interact with the world. They seek assurance of a brand and the experience of an independent boutique. They are creative. They enjoy life, fashion, and style, as well as work and new experiences. • Average age 34 -54, 50/50 male /female • Married and may or may not have children • Household Income of up to $200,000 Brand Hallmarks hotel INDIGO, • Neighborhood Story - Just as no two neighborhoods are alike, no two Hotel Indigo hotels are alike. And, each neighborhood has a story. This story is told throughout the hotel from the design and decor to service delivery. The Neighborhood Story gives each property a distinct personality. Inspired Service - By being vibrant, curious and original, we make it easy to discover the neighborhood and accomplish business with ease. Hotel Indigo team members engage in an authentic and intimate way that is personalized to each guest. • Fresh Design - Hotel Indigo hotels are stylish, yet approachable, filled with intriguing and energetic details that encourage discovery throughout the guest's stay. A vibrant modern color palette, complemented by natural light and locally influenced design and decor, make for an inviting and refreshing atmosphere. Since launching the Hotel Indigo brand in 2004 in the United States, IHG has been working with owners and operators to develop the brand in major cities around the world. As of December 31, 2016, there are 75 Hotel Indigos open with another 75 properties in the pipeline. The success of the Hotel Indigo brand is largely due to the fact that IHG has created a structure and foundation for designing a boutique hotel while still providing the services, support, marketing, and reservation system of a global hotel company. Brand Distribution* ^4ctc Indigo` €a•eZraphic Wstribution * AMEA O Greater Chine r-^ i IHG` Rooms Hotels Rooms in Open Global 75 Americas 46 Europe 21 "EA 2 Greater China 6 *As of December 31, 2o16 323 ^4ctc Indigo` €a•eZraphic Wstribution * AMEA O Greater Chine r-^ i IHG` Rooms Hotels in Rooms in Open Pipeline Pipeline 8,905 75 10,593 5,932 32 3,965 1,910 18 2,264 323 14 2,582 740 11 1,782 M. Hotel Indigo Open & Operating Hotels Country Hotel Name Room Relationship IHG Open Finland Helsinki - Boulevard Count Franchised Date China Lijiang Ancient Town 68 IHG Managed Sep -2013 China Shanghai On The Bund 184 IHG Managed Dec -2010 China Tianjin Haihe 77 IHG Managed Nov -2012 China Xiamen Harbour 125 IHG Managed Mar -2012 Finland Helsinki - Boulevard 120 Franchised Mar -2015 France Paris - Opera 57 IHG Managed Sep -2014 Germany Berlin - Centre Alexanderplatz 153 Franchised May -2012 Germany Berlin - Ku'damm 81 IHG Managed Feb -2012 Germany Dusseldorf - Victoriaplatz 126 Franchised Dec -2013 Hong Kong Hong Kong Island 138 IHG Managed Apr -2013 Israel Tel Aviv - Diamond District 91 Franchised Aug -2013 Italy Rome - St. George 64 Franchised Mar -2014 Mexico Veracruz Boca Del Rio 106 Franchised Aug -2012 Poland Krakow - Old Town 56 Franchised Sep -2016 Russian Federation Singapore Spain St. Petersburg - Tchaikovsko o Singapore Katong Barcelona - Plaza Catalunya 120 131 77 Franchised IHG Managed Franchised Mar -2014 Jun -2016 Feb -2013 Spain Madrid - Gran Via 85 Franchised Apr -2014 Taiwan Thailand Kaohsiung Central Park Bangkok Wireless Road 129 192 IHG Managed IHG Managed Dec -2016 Jan -2015 United Kingdom Birmingham 52 Franchised Dec -2011 United Kingdom Edinburgh 60 Franchised Mar -2012 United Kingdom Edinburgh - Princes Street 64 Franchised Nov -2016 United Kingdom Glasgow 94 Franchised Apr -2011 United Kingdom Liverpool 151 Franchised Jun -2011 United Kingdom London - Kensington 100 IHG Managed Dec -2012 United Kingdom London - Paddington 64 Franchised Dec -2008 United Kingdom London - Tower Hill 46 Franchised Jun -2010 United Kingdom Newcastle 148 Franchised Jun -2012 United Kingdom York 101 Franchised Jul -2015 United States Albany Latham - 107 Franchised -Oct -2008 United States Anaheim 104 Franchised May -1992 United States Asheville Downtown 115 Franchised Nov -2009 United States Athens Downtown - Univ Area 130 Franchised Aug -2009 United States Atlanta - Vinings 160 Franchised Nov -2015 United States Atlanta Airport - College Park 142 Franchised Jul -2012 United States Atlanta Downtown 206 Franchised Dec -2015 10 r Country Hotel Name Room Relationship IHG Open Count Date United States Atlanta Midtown 140 Franchised _ Oct -2004 United States Austin Downtown - University 134 Franchised Mar -2016 United States Baltimore Downtown 162 Franchised Jun -2015 United States Basking Ridge - Warren 112 Franchised Aug -2008 United States Baton Rouge Downtown 93 Franchised Feb -2011 United States Boston - Newton Riverside 191 Franchised Jan -2008 United States _ Brooklyn 128 Franchised Aug -2012 United States Chicago Downtown Gold 165 Franchised May -2005 Coast United States _ Chicago- Vernon Hills 127 Franchised May -2008 United States Cleveland- Beachwood 100 Franchised Jul -2014 United States Columbus Architectural 85 Franchised Feb -2008 Center United States Dallas Downtown 170 Franchised Nov -1993 United States Denver Downtown 180 Franchised Jan -2017 - United States El Paso Downtown 119 Franchised Jan -2016 United States Ft Myers Dtwn River District 67 Franchised Mar -2009 United States Houston at the Galleda 131 Franchised Jun -2006 United States Jacksonville- Deerwood Park 96 Franchised Jan -2009 United States Long Island - East End 100 Franchised Aug -2010 United States Los Angeles Downtown 350 IHG Managed Mar -2017 United States Lower East Side New York 294 IHG Managed Nov -2015 United States Miami Lakes 86 Franchised Dec -2008 United States Naperville Riverwalk 158 IHG Managed Nov -2016 United States Nashville 161 Franchised Mar -2010 United States New Orleans Garden District 132 Franchised Dec -2012 United States Newark Downtown 108 Franchised Dec -2014 United States Pittsburgh East Liberty 135 Franchised Sep -2015 United States Raleigh Durham Airport At Rtp 125 Franchised Aug -2009 United States Saint Petersburg Downtown 76 Franchised Feb -2009 United States San Antonio Downtown - 91 Franchised Apr -2010 Alamo United States _ San Antonio- Riverwalk 149 Franchised Oct -2009 United States San Diego Del Mar 94 Franchised Mar -2012 United States San Diego - Gaslamp Quarter 210 IHG Managed Jul -2009 United States Santa Barbara 41 Franchised Feb -2012 United States Sarasota 95 Franchised Oct -2006 United States Savannah Historic District 252 IHG Managed Mar -2016 United States Traverse City 107 Franchised May -2016 United States Tuscaloosa Downtown 91 Franchised Sep -2016 t - United States Waco - Baylor 111 Franchised Apr -2012 1HG" l 11 Pipeline Country Hotel Name Room Count Hotel Status Relationship Australia Brisbane Fortitude Valley 140 Planning Phase IHG Managed Australia Melbourne Docklands 175 Planning Phase IHG Managed Australia Chengdu City Center 200 Planning Phase IHG Managed China Chongqing Guanyinqiao 130 Under Construction IHG Managed China Dalian Fandian 100 Planning Phase IHG Managed China Shanghai Hongqiao 300 Planning Phase IHG Managed China Shanghai Nanjing Road 108 Planning Phase IHG Managed China Shenzhen Qianhai 250 Planning Phase IHG Managed China Suzhou Grand Canal 200 Planning Phase IHG Managed China China Yangzhou Slender West Lake Zhengzhou CBD 125 136 Planning Phase Under Construction IHG Managed IHG Managed China Berlin City - East Side 125 Under Construction Franchised Germany Dresden - Wettiner Platz 132 Planning Phase Franchised Germany Frankfurt 236 Planning Phase Franchised Germany Bali Jimbaran 180 Planning Phase IHG Managed Indonesia Indonesia Bali Sanur Bali Seminyak Beach 180 289 Planning Phase Under Construction IHG Managed IHG Managed Indonesia Bali Ubud Peliatan 120 Planning Phase IHG Managed Indonesia Bintan Lagoi Bay 150 Planning Phase IHG Managed Indonesia Jakarta Sudirman 200 Planning Phase IHG Managed Indonesia Tel Aviv - City Center 159 Under Construction Franchised Israel Milan - Corso Monforte 55 Planning Phase Franchised Italy Osaka Namba 243 Planning Phase IHG Managed Japan Melaka 80 Planning Phase IHG Managed Malaysia The Hague - Royal Palace 63 Under C_ onstruction Franchised Netherlands Warsaw - Nowy Swiat 60 _ Under Construction Franchised Poland Riyadh - KAFD 209 Under Construction _ IHG Managed Saudi Arabia Belgrade 45 Planning Phase IHG Managed Serbia Alishan 84 Planning Phase IHG Managed Taiwan Taipei North 149 Planning Phase IHG Managed IHG 12 ■iii M_ 1" Country Hotel Name _ Room Count Hotel Status Relationship p Thailand Phuket Patong 180 Planning Phase IHG Managed Thailand Kiev (Dormant) 220 Planning Phase IHG Managed Ukraine Dubai Business Bay 285 Planning Phase IHG Managed United Franchised Planning Phase Franchised Under Construction Emirates Dubai Sustainable City 143 Planning Phase IHG Managed United Arab Emirates Bath 160 Under Construction Franchised United Kingdom Brighton 98 Under Franchised Construction United Kingdom Cardiff 100 Under _ Franchised Construction United Kingdom Dundee 96 Planning Phase Franchised United Kingdom Durham 81 Under Franchised Construction United Kingdom London - Aldgate 207 Under Franchised Construction United Kingdom Manchester - Piccadilly Gdns. 139 United Kingdom United Kingdom United Kingdom United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States [HG' Manchester - Victoria Station Stratford Upon Avon Birmingham Flushing Frisco Gainesville- Celebration Pointe Greenville Harrisburg Hattiesburg Jacksonville Kansas City Kansas City Louisville Memphis Miami Brickell Miramar Beach Napa Valley Nashville New York NYC - Financial District Oklahoma City 187 101 63 147 110 137 120 149 100 89 80 110 106 120 140 112 4 4 C 130 122 190 110 Planning Phase Franchised Under Franchised Construction Under Franchised Construction Planning Phase Franchised Under Construction Franchised Under Construction Franchised Planning Phase Franchised Planning Phase Franchised Planning Phase Franchised Planning Phase Franchised Planning Phase Franchised Planning Phase Franchised Planning Phase Franchised Planning Phase Franchised Planning Phase Franchised Under Construction Franchised Planning Phase Franchised Under _ Planning Phase Planning Phase Under Construction Planning Phase Franchised Franchised Franchised Franchised 13 Country Hotel Name United States Old Town Alexandria United States Orange Beach - Gulf Shores United States Philadelphia United States Philadelphia Center City United States Pittsburgh United States Saratoga Springs United States St. Louis United States Tallahassee - College Town United States Tulsa United States Wilmington Downtown Riverfront United States Winston -Salem Operating and pipeline Hotel Indigo as of December 31, 2016 IHG Room Count Hotel Status Relationship 120 _ Under Construction _ IHG Managed 62 Under Construction Franchised 95 Planning Phase IHG Managed 150 Planning Phase IHG Managed 111 140 Under Construction Planning Phase Franchised Franchised 80 Planning Phase Franchised 140 Planning Phase Franchised 93 Planning Phase Franchised 125 _ Under Construction Franchised 75 Planning Phase Franchised 14 Hotel Indigo — Typical Design Guidelines Neighborhood Story IHG is selective about determining the right locations for the Hotel Indigo brand, which is located in culturally rich neighborhoods that reflect the communities in which they reside. The hotels are designed to inspire guests with an approachable boutique experience. The neighborhood story is a design directive used to create and establish a character for the hotel that will be told through the entire design of the hotel including materials, color palette, the artwork and photography, and even the locally sourced food and beverages. For this reason, there is no prototype for the Hotel Indigo brand. The Hotel Indigo brand team and IHG's Architecture and Design team will work directly with the developer to define the "neighborhood story" and program for the project in question. In this location, we would orient as many guest rooms and as much public space as possible towards the water and downtown San Francisco skyline to capitalize on the waterfront and scenic views. Tentative Programming for a i5o -200 Key Prototypical Hotel Indigo # of Rooms 150-200 Room Size Standard Guestroom - 300 -375 SF Suites (55vo of total rooms) - 600 -75o SF Restaurant & Bar Meeting Space - 4,000 -8,00o Net SF Amenity Package Rooftop Bar - optional Business Center Fitness Center IHG 15 Hotel Indigo - Design Elements Hotel Indigo Lower East Side New York, NY 293 Rooms 16 Hotel Indigo Downtown Los Angeles, CA 350 Rooms 1HG' 17 Hotel Indigo Nashville, TN 160 Rooms 'Ai all M. h tNDICO k OS Im. s IHG "."i 18 W W N' Y T + 4 t . Hotel Indigo Downtown Atlanta, GA 206 Rooms �I N IHG Hotel Indigo San Diego Gaslamp Quarter, CA 210 Rooms If.`. y� 4 F m t Y r. IHG 20 ESE N I� .+cam • � y i i i rt :i l a l I I '! WTELS IT low ' F j s. - M _ EVEN Hotels Introduction -Where wellness is built in In 2014, IHG launched EVEN Hotels to meet the needs of today's travelers and address an unstoppable trend toward health and wellness. At EVEN Hotels, we provide a lifestyle offering for guests who want to be healthier and happier when they are away from home. The design, furnishings and amenities of EVEN Hotels, combined with our wellness -savvy staff, offer guests a best -in -class fitness experience, healthier food choices and natural, relaxing spaces. EVEN Hotels is a challenger brand designed to fill an underserved space — meeting customer's wellness needs. The brand is high in design with a distinct service culture. It stands out as differentiated in a sea of new brand entrants and traditional brands all with similar customer value propositions. HIGH CAWMNRANCH. Fuort ftonx, . Aw..✓,�... WESTIN HYATT CENTRIC y (HOTELS ( 1 I .i�Ff CAMBRu LOW • Hih�on ODURTYARV a=. IM Nii[ In the brand's short existence, EVEN Hotels is capturing our guest's attentions. Our guests are informing family, friends, colleagues, and the public about their positive and unique travel experiences, and they are calling for more EVEN Hotels across the country. In November 2015, we opened the EVEN Hotel New York City — Times Square South. After just one year open, the hotel is one of TripAdvisor's Top 25 Hotels in the United States, ranking 14 on the exclusive list. The awards highlight the country's top properties based on the millions of reviews and opinions collected in a single year from travelers around the globe. Of the top 25 hotels in the U.S., EVEN Hotel Times Square South stands out as being the only wellness- minded hotel in the mix. The property is still the number one ranked branded hotel in the entire New York City market. IHG 22 So why do customers stay at an EVENHotel, talk about it and return? Wellness value proposition For the price paid, an experience that far better matches my life and meets my needs then other alternatives Service — Inspiring service that keeps our guests on track and ensures that they check out feeling better then when they checked in More about EVEN Hotels Product features — Purposeful and unmatched exercise, eating, drinking, relaxation and work options — in the guest room and throughout the hotel Design — Simple, natural and modern spaces that offer a balance of energy and calm — and enable our guests to be well With EVEN Hotels, we offer more options to help travelers Eat Well, Rest Easy, Keep Active, and Accomplish More. Eat Well Maintaining a healthy diet gets complicated when traveling. So, we set out to make eating well on the road possible with simple, natural, healthier food and beverage options. Whether guests are working out or just working hard, EVEN Hotels recognizes that guests deserve to reward themselves now and again. So we're providing exciting and indulgent food and beverage items that are delicious yet supportive of their nutritional needs. After all, indulging a little is healthy, too. Rest Easy While on the road, guests will feel a sense of relief from the intensity of their day through the services provided by Hotel staff as well as calming environments throughout the property. Guests can find open and natural areas inside and out, offering relaxing and revitalizing options. From the premium bedding to the evening tea service, guests will have a variety of options to ensure they get their most restful night of sleep while on the road. We call it Sleep Fuel. Keep Active At EVEN Hotels, guests can expect a range of fitness options to help them keep active. From our best -in -class Athletic Studio to our in -room training zone and outdoor fitness routes, guests will have a variety of options to maintain a familiar workout or incorporate fresh, new exercises into their routines. Accomplish More We understand that people work in a variety of ways, and having to adjust that working style can be considerably disruptive. Our flexibly designed spaces can be configured to integrate with our guests' working preferences, enabling them to work as they please. We also know that balance means more than just work, so we encourage guests to allow for some "me time" during their stays. 23 Food & Beverage Concept - Cork & KaIe Cork & Kale Market and Bar offers a wide variety of good tasting, good- for -you foods that are freshly prepared and fully customizable during breakfast and dinner. We're giving wine and dine a whole new meaning. From grab- and-go selections to sweet indulgences, there's no second guessing- just good -for- you choices with simple, natural ingredients. cor ale. here. who you Oft b Odw you eat From l vobwx p rr w iomK to $Niel! fmduNge -M i„KI good -6-yw t hokmS made v th Hrnpkk rA wal rMW9divv% »1PLE NATURAL. GOOD- _off! 1*06 G IHG 24 7 IHG is investing in the EVENHotels brand to build awareness with key customers: �4 a CHOOSE WELL IHG's marketing efforts behind EVEN Hotels amplify brand awareness and work harmoniously under simple brand idea of "choose well". EVEN Hotels offers guests that ability to make choices that match their lifestyles, in a way that other hotel brands do not. To that end, choose well comes to life through our marketing platforms and efforts to ensure guests understand what EVEN Hotels is all about. IHG then executes marketing across the right channels to reach the right audiences. IHG 25 IHG has focused heavily on building national awareness with wellness minded travelers. Two partners of the EVEN brand in 2016 were MindBodyGreen and Well +Good. Both a national lifestyle publications with several million followers through online, social and email platforms. Leveraging partners, EVEN Hotels was able to greatly expand its reach, build awareness with our potential guests and firmly root itself as a wellness leader. 14 1 Cr- I•'f DISCOVER A HOB' WELLNESS 'SUILT-, �1�'•�"' Wfil t Y; il�� EAT MOVE LIVE BREATHE LOVE CL y } CHOOSE WELL r �. imam 20 Wellness Leaders Who Need To Be On Your Radar Right Now SH F . by mn�odrpraan A"gua! li, IOIn Ll9 4M -—,000, 32 Rl µY MW USM Naek". An-q" On 9"w" (plow Tlw d" ) In Q4 2016 EVEN Hotels fueled "Mission Wellness ", a shark -tank like competition seeking the next health travel innovation. This was a large scale awareness building national competition, with a big focus on amplification through social and media channels. Through multiple phases where consumers were engaged with EVEN Hotels, the competition saw 100+ products and services enter the competition and over 80 thousand votes for a winner. In total, the brand reached over 20 million through impressions on just this effort, and time spent of those engaging was much greater then the typical time readers spend with our partner. Then, the brand was highlighted as part of the top 2017 wellness trends that MindBodyGreen released in January. These examples show how EVEN Hotels is connecting to the lives of potential guests at a deeper level then just "being a hotel" — a major consideration in choosing a partner as part of a tech forward and wellness driven development. IHG 26 Mission Wellness: : ' - I - :: - GOOD SWEAT GOOD LOOKS GOOD ADVICE GOOD FOOZ D171Ea f V r E a Q MISSION WELLNESS. CALLING ALL ENTREPRENEURSi SEEKING THE NEXT HEALTHY TRAVEL INNOVAT10I1 W— seir 1104401 of [[.r1c9 far a aaOaai ei YIp cis Oh taw 1411f.ilx 4tipi. W e+W Fa+ONf Ob[ !r 10710910, e) ATTENTION GENIUSES! WE'RE SEEKING THE NEXT HEALTHY TRAVEL INNOVATION 0000 4aY10e ®� ft. BS".OeGO RII T01i, itIRRYRif. 1i, iile T •� - MISSION WELLNESS: "LLINC 131 IRIT •Ii.Tat wal wlw m" _ r ' i H' hengmlefivisgouofasefitasRtl' stafftlltalsnycss�aP. ihcbsyxE'IaRx:- m3ifR— ulxtt�gc�e sa[i�aingaapefct {m Psica bxe??�. tr?•Fligm slavhj*amd and C..iw g a fln aa. ct QeaL-rgxj* iet bL 1+'hr doRS cha+n m be thie wa;? Q AcwaIIx it dmm'L Wt bdim fm- the -road titGx shw'd be as haa'tky at ds son ceyew de—m a[81e kddzq Sec the aeon bteaL8la,4h L%W* h uawL 1 AI&7:: ".r.:,.,.:;'•t1e':e latmehi11F h6iaioa SieBwu: lxddagew Ned FRatiily Tk"&aforstiaq as atntiyeeneu cf:mpoudanto Sind fdfe nanfmrrpcad.ua or somnce tiatwa mobs malt gn-Svcs hx a.Wor —and we wan: Tvc fc only. is srae.pee?17mS S�B�fa "'ixT Y� smazL snae�w:mal &iwfos exdmd sbaccit— bcca•,w Svc fraal nafsmmiss tha �.wF d� Hfdbfea: Sialdeaatho Ian Aaa:thgiYatB hmv[atims.l2's staetirgfada..5xpa®bxr 19. ieaa.t;�c.a spt {:,x':ahr:fp, sa�sasrsEglit�•;rsli tts a[rs:•��.:s_f -fc: • -. °::. €.mss. brim. Sxpxalba 29. One xinno twmhoafrudedtbeftf7lnrsiagl prardirftvcidhle 'LRandpnblfetytople gwa cry on 8a haahk zwAd map! Featured spat on a Tam Squrc D].'board • Adrtfrtilag and Oftw.X] ce7wao an Well-Good • Fcoduaglaatmxx[amL:oip7x1=111mb • Hume cnit'e^S aw.Lfam • Cashpisa MISSION WELLNESS: ARK" 11% RAW OEU70 TRAM 14""filmr; ![Ills, ", I'Ki1�L. A CALLING ALL ENTRRPRINEURSI !!pall tie3 mcxixf O• /xfll[I let A ARAAGO f0 Y1p 1w on txl "Imiss'"A D.W 11 s1007toorx as 27 Brand PR: M i I The %BeMFluW ForRtnm kY0/ IbrQ.f 1bY.ew•IIM M..E moceµtmmineK tiemraf NOVb GmoYew vnvYn RL hxerd.blahh atl belns p.+Y q'FSC Marl. s+kn � eaq'c we- an eahxaeoh lorbtir almsamYaya brmdib. AA, &.k had pwm wYYa rxhw•.a.dNlxd mma+edad)wfph0.6e1lheb @ taR'm tYripi Y �'� � �rigq, pmn.� trri.yequRiamt.rvdm . a. rid.or. ptewb x flt\ a Cai d CaY nxwmr ne drsipnt<wid as pps a dwtr i. med.wiebrew•rtrsetap m.wnR.PV pterb•Me, er W,mba aA mn M' Yanm` Wea�k.wai seen itm 1.6eled r raper bodr..eV*, mdn .xgr.bie wrt►aoQ.ardprarb, rd mvrt fmd fl'� fiaaY Y fne btWirar k lre.rkbrk Cm'Iix�.p aedd)e1:2:wwalt R: aatNb -)ro- rwaa�a'ew:ro.mnarW wwr.arw�aeub. 10 Not New Hotels Opening in the U.S. This Summer ��Fl .�br�.wr�watrgl.,Mr.rlMwwbpwb M pirwore q itFa.rw�agw a..ew.ra.. .. e.a�.w.wc.a�....a. x�aRx �.. sq�arr. aoam s^ WPM Ac Xctu molt c~imco Hate Hats Y�r•Round Plans (a fimcxc Resdulions� AS+a��. Yam ma,r..twxw d.trY tom. hr�.n,es.ere.rwYexd nuoitim xe. NO.— n xlerhdrd loop -.1h. Ycx,.m i. the r.RA Rrieathn }eae,tG• fie•t ntb. !>�'vwa W eertl.. c: MmLxtm. Y q.e j'thnmrh Atltwrea rnn.uakwdark har.eevmiw xearwm rewus•rhwp,.fmtue� W{i.Mr }.ya mx'. ftneadavr wh�meo�n .ara.;m•.witagai.�np.emr Wrapapmra, AD p. ire.,. Y.h.rr.w.n.,.�t�mbr..r�amYw�,u. s�rm.a THE rM HUFFINGTO 11q kaltlihk k- IHnt�tlolcl�`1sr (cttini ... _ r LODGING 1 MA% Wa>h m a Yw -Rand W tp (mts wd 4rmen 4.+..N. a4twsiaw)fYFH WOw -abW wTw✓neg6 �r- 1[.'M1ww M.�.c �w6alae.vwr..M1.Rrabc d �n.ait amaa Raw. �r 1) Mbn w.b.w �..•Gy • rere�a'. ab Mxbeaw MaM.nreatngw a.)aW krYx r•e. wan' wei awYq IHG 28 We have stepped up and spent or committed to spend over $150-OM to develop, manage, and/or own the first EVEN Hotels. And our capital commitment to the brand will continue. IHG has been working with owners and operators to develop the brand in major cities around the world. The first two EVEN Hotels opened in North America in 2014, and we have since opened 4 more hotels and have another 7 hotels in the development and construction pipeline. IHG is in various stages of negotiation around the development of 30 more EVEN Hotels. IHG and EVEN Hotels are aggressively targeting the following North American markets for growth opportunities: Greater Los Angeles, Orange County, San Diego, Greater Bay Area, Seattle, Portland, i Denver, Salt Lake City, Phoenix, Austin, Dallas, Fort Worth, Chicago, Minneapolis, Atlanta, Ft. Lauderdale, Miami, Charlotte, Nashville, Boston, New York, and several other top 100 MSAs in the United States in addition to Canadian markets. In October 2016, IHG announced the signing of a partnership with Pro - invest Group, an Australian boutique investment firm, which would see the brand's debut for the first time outside the United States. IHG ® recognizes that health and wellness is one of the fastest growing industries in Australia, making it the perfect place to grow the brand. Pro - Invest is planning to develop 10 -15 new EVEN Hotels in the first phase in major capital cities. Open & Operating EVENHotels Hotel Name Room Owner/ Operator IHG Count Developer Open Date Brooklyn, NY 202 IHG IHG 07/2016 Norwalk, CT 129 IHG IHG 06/2014 Rockville, MD 167 IHG IHG 06/2014 New York City - Times Square 150 South Raber Enterprises IHG 11/2015 Omaha - Downtown, NE 132 Anant Operations Anant Operations 09/2016 New York City - Midtown East 230 Raber Enterprises IHG 12/2016 Pipeline EVENHotels Hotel Name Room Owner / Operator Anticipated Count Developer Open Date Status Seattle Downtown - South Lake Union 123 IHG/ Noble Investment Group IHG Q2 2018 Under Construction Miami - Airport, FL 180 EDG Hospitality Focus Hospitality Q4 2017 Under Construction Pittsburgh - Downtown, PA 155 Reception Hotels IHG Q2 2018 Planning Eugene, OR 100 VIP Hospitality VIP Hospitality Q4 2017 Under Construction Shenandoah (The 120 Woodlands), TX FuelMa� x Hospitality P Y TBD Q1 2018 Planning Arlington, TX 92 Raj. C. Patel TBD Q1 2018 Under Construction Sarasota, FL 128 Zieg Hospitality Z1eg Hospitality Q1 2018 Under Construction Operating and pipeline EVENHotels as of March s, 2017 1HG i 29 Notable EVEN Hotels Fut-i , EVENHoteI /Staybridge Suites Seattle Doumtoum (South Lake Union) Owner Developer(s) IHG/ Noble IHG/ Noble Investment Group Investment Group IHG acquired a land parcel and retained the design team and other consultants to secure entitlements and permits. IHG utilized JN +A to create the floor plans, exterior renderings, and high level cost estimates to assist in underwriting this project. IHG structured a Joint Venture (the VV') with Noble Investment Group, with Noble having controlling interest. We assigned our rights under the PSA to the JV, and entered into a 25 year management agreement for the Hotels with the JV. The JV is developing and will own the Hotels which are under construction and scheduled to open in early 2018. IHG entered into a Technical Services Agreement with the JV to help manage the development. Development Open Type Date Room Count New - build, dual Q2 -2018 235 (123 EVEN, branded hotels 112 Staybridge) We are very excited about this EVEN Hotels project in Seattle's South Lake Union district. The hotel is under construction and will be immediately adjacent to Amazon's global headquarters, which occupies 2.7 million SF of space, about a quarter of the total office space in the neighborhood. Additionally, in March 2016, Google announced that they will be moving into over 600,000 SF of office space in four buildings in South Lake Union near the EVEN Hotels project. South Lake Union is considered part of the technology corridor of Seattle's Puget Sound Region and is the number one region in the country for technology job growth, surpassing even Silicon Valley. Positioned just north of Seattle's Central Business District, South Lake Union is Seattle's fastest growing urban market and has a diverse product and tenancy type that has continued to mature over the last decade. Within South Lake Union, the most prominent employer is Amazon.com, which moved its headquarters to the submarket in 2010 and is currently expanding. Other major employers in the South Lake Union submarket include Microsoft, Google, the Bill & Melinda Gates Foundation, Group Health, Facebook, Salesforce.com and Tommy Bahama. Due to recent development plans by Paul Allen's Vulcan Inc., as well as other prominent developers, South Lake Union is becoming a hub for life science organizations. Some of these organizations include the Fred Hutchinson Cancer Research Center, Seattle Cancer Care Alliance, Zymogenetics, Battelle, Seattle Biomedical Research Institute, Seattle Children's Hospital, PATH (global health organization), Rosetta (now part of Merck & Co.), Bio -Rad, and the University of Washington Medical Research Center. IHG 30 0 IHG purchased a site and the existing designs for a Double Tree by Hilton that was already under construction, and assumed the development agreement in place with McSam Hotel Group and Barone Management. IHG managed the Project Management and Construction Management firms in overseeing the construction and delivery of the hotel. 'The hotel opened in July 2016 EVENHotel Brooklyn, NY Owner Developer(s) Development open Room Type Date Count 1HG McSam Hotel Group / New -build July -2016 202 Barone Management EVEN Hotel Rockville, MD W no MW XO rr err is F9 Owner Developer IHG 1HG In September 2013, IHG acquired an operating a 162 -room Holiday Inn Express & Suites hotel and renovated and converted it into a 167 -room EVEN Hotel. IHG engaged RTKL as the Architect and Interior Designer to complete the design and renovation. IHG also engaged JN +A Construction Management to assist in overseeing the Project Management and Construction Management firms. `The hotel opened in June 2014. Development Open Type Date Renovation/ June -2014 Conversion Room Count 167 31 In September 2013, IHG acquired an operating 129 - room Four Points by Sheraton hotel and renovated and converted it into a 129 -room EVEN Hotel. !HG engaged JN +A, Interior Design, and Construction Management to design and assist in completing the renovation of the hotel. *The hotel opened in June 2014. EVENHoteINorwalk, CT ,f !T Owner Developer Development Open Room Type Date Count Renovation/ IHG IHG Conversion under June -2014 '129 a ground lease EVENHotel Atlanta -Alpharetta, GA Owner Developer TBD IHG IHG purchased a site and performed extensive due diligence to secure the necessary entitlements. IHG has received approval from the City of Alpharetta for the development of the hotel and has advanced the design well into construction drawings. Development Open Room Type Date Count New -build TBD 131 32 EVENHotel Denver, CO (Ballpark) Owner Developer Development Open Room Type Date Count TBD Third Party New -build TBD 153 IHG has the right to assume the purchase rights under an existing purchase and sale agreement between a third party and the seller of the site to develop a hotel one block from Coors Field. IHG and the third party retained an architect and other consultants to design the project and secure entitlements with the city. We are leveraging our strong balance sheet against this project to grow the EVEN Hotels footprint in the Mountain Region of the US. Like the greater Bay Area, we have identified Denver as a key target market to advance the distribution for EVEN Hotels. We truly believe EVEN Hotels can penetrate and outperform competitor brands in the marketplace due to the unique and differentiated nature of the EVEN Hotels brand offering. The Hotel will be developed on a 12,500 SF site that is well situated between the Lower Downtown ( "LoDo ") and the bustling River North Arts District ( "RiNo ") neighborhoods. The 153 -room Hotel will have a Cork & Kale restaurant, a Market place /Grab- and -Go, a full bar, 1,100 SF of meeting space, a 1,500 SF fitness center, and a garden /games flex space. The Hotel will offer valet parking. RiNo is a hub for creativity and entrepreneurism with hundreds of businesses ranging from visual artists, designers, and furniture makers, to craft distillers and brewers, winemakers, and new adventurous restaurants. Historic warehouses and factories now house jazz bars, restaurants, brewpubs, art galleries and working studios. LoDo is an upscale urban renewal area and one of Denver's most sought -after neighborhoods. The neighborhood is characterized by historic storefronts, brick warehouses, industrial buildings and commercial structures that have been renovated into offices, lofts, and retail space. The neighborhood attracts residents and visitors with its dynamic mix of entertainment, shopping, and cultural amenities, including art galleries, restaurants, specialty retail, nightclubs, and jazz parlors all housed in preserved historic buildings. IHG 33 EVEN Hotels Desion F, - EVENHotel - Typical Design Guidelines Tentative Programming for a 15o -2oo Key Prototypical EVEN Hotel # of Rooms 150-200 Room Size Standard Room — 300 -325 SF Suites - based on need of the market F &B Concept Cork & Kale Restaurant Market Place Pantry Meeting Space — 1,000 -2,00o Net SF ±1400 SFAthletic Studio Green Wall (vertical garden) Amenity Package & 3 Zone Athletic Studio Design Highlights In Room Workout Station Open concept guest bath Public space should have enough seats to accommodate 40% of the number of rooms IHG 34 m IHG' X L an L at AA La owl ■a L ONE an a mum U MW -9 UN a R z if k � I I 35 IHG' 36 IHG' 37 38 i a I F I 1 39 IHG 40 IHG' 41 *w" p - - TA� IHG 42 H43 T �`-- -- s- i EVEN Hotel Rockville, MD Prototypical Wellness Bathroom Lj r IHG 44 1 H Hotel Indigo San Diego - Gaslamp Quarter Owner Chesapeake Lodging Trust .M01111M.- Developer(s) Development Open Type Date IHG / Phelps New -build Aug -2008 Development Room Count 210 InterContinentaI San Francisco (Moscone Center) 'A& Owner Developer(s) Development Type Continental IHG / Continental New -build Development Corp. Development Corp. I - 11 I - ' I i ~ R Open Room Date Count Feb -2010 210 s 45 InterContinental Mark Hopkins - San Francisco Owner Developer(s) Development Open Room Type Date Count Woodridge Capital IHG Major Renovation 2014 383 Partners InterContinental Los Angeles Downtown Owner Developer Development Open Room Type Date Count Korean Air Lines / Martin Project New - build, April -2017 89G Hanjin Intl Management mixed -use 46 i� t r1 r- Hotel Indigo Los Angeles Doumtoum Owner Developer(s) Development open Room Type Date Count Greenland USA Tishman/ New -build April -2017 35D AECon InterContinental Buckhead Atlanta r Owner Developer Development Open Room Type Date Count Pebblebrook Hotel IHG / Hogan New -Build Aug -2008 422 f Trust i 1HG 47 d InterContinental New York Barclay �+r ti r VIP � L y Owner Developer/ Development Open Manager Type Date Constellation Hotels IHG Major Renovation / Aug -2008 Holding Redevelopment Room Count 704 InterContinental Boston Owner Developer 1HG Eydeli Development Open Room Type Date Count New - build, mixed -use under Nov -2006 424 Ground Lease 48 F 9 (c:A :"464 ."1& N AM 4' lit IT. TVwx M i OW I pp 01 InterConenta V .•rte AP i -4990010- dp elk S ter•• � - �.�r..- �, r otel Indigo lower EaSide —N w Yor Y SECTION- 3 STEINBERG Steinberg is a full service architecture firm that blends sustainable initiatives with a thoughtful, innovative approach to design from master planning through building design. With a focus in hopitality, urban mixed -use, transit oriented, public interest, education projects, we create environments that seek to sculpt space to shape lives in subtle and empowering ways. Our work relates to the internal and external environment, history, communities, and most importantly people and cultures. We treasure the relationship between land and building, looking holistically at spaces to integrate architecture with their environments. OUR LEGACY Steinberg is a long established and award - winning architecture, urban planning, and interior design firm committed to its core values of design excellence, improving communities, and fostering an entrepreneurial culture. With a 63 -year legacy, the firm shapes environments and creates inspiring places through research, technology, and innovative design. In 1953, Goodwin ( "Goody ") Steinberg started an innovative design studio in San Jose, California, with an initial focus on custom residential design throughout Silicon Valley. Now in its third generation of ownership, the firm had expanded its success beyond residential design to education, community, civic, and urban mixed -use residential design, scaling up in project scale and scope. AT PRESENT Steinberg has evolved significantly since its founding, now an international firm with over 150 employees. We bring an idea driven, result- oriented approach to the design and development of projects around the world. As leaders in urban development, we are widely recognized for our unique approach to architecture as urban placemaking, skillfully integrating new buildings into a larger urban fabric. We have a long track record of working with developers and builders to create cost effective projects that become assets to their communities. We are committed to protecting the environmental, social, and economic interests of future generations; sustainability is weaved through all facets of our firm's life. CREATING VALUE -BASED DESIGN Today, more than ever, the value of a building is defined by more than just its aesthetic beauty or functionality. A financially successful venture is comprised of a myriad of tangible and intangible assets and deliverables —brand equity, efficient use of space, sustainability, and the human experience. At Steinberg, we have developed a methodology of "Value Based Design" that focuses on the synchronization of design and business performance. Whether the hotel is a new boutique concept or a repositioning of a more traditional property, our firm works hand in hand with the owner to align the process, budget, and design with the brand. This approach enables our designers to explore new ideas that enhance the property's long -term business goals, as well as the guests' experience. 0 v 0 y n r z a m N W LOCATION This extensive hotel renovation resulted in a carefully Palo Alto, CA considered aesthetic which embodies the spirit of Palo Alto - offering a new luxury option in the heart of SIZE silicon valley. 51,021 SF KEYS 86 Casa originally Olga, on g g' y permitted as a hotel in 1971, has been remodeled into an 86 -room, four -star hotel and renamed The Epiphany. The renovation, completed in AMENITIES partnership with Joie de Vivre, included voluntary seismic upgrades, an exterior skin Suites, Meeting Rooms, Restaurant, renovation, conversion of the first floor into a lobby and 24 -hour restaurant with back - Lobby of -house functions, and the addition of eight guest rooms on the eighth floor where current dining facilities exist. The conversion into a boutique hotel follows a thorough ideation phase orchestrated by design firm IDEO, where the aesthetic character of the hotel's interior were carefully considered. The new hotel aims to capture the spirit of Palo Alto — curious, optimistic, entrepreneurial, tapped in, and vital. Its aesthetic vision also embodies the region's commitment to sustainability through the use of raw, rustic, and natural materials. TrFj "0 AW - - i N 4 r �i IN �1 dillM "A � 11111111 111111!. u a ran ImIllu mam 111ilill 1111111111011111 J1111111 1,11111til 11111 ItIllillm)[11111 0 IM11111 11111M 1101111! 111111L E1111111 11111111 111111111111111111111 tVVIV1 11 III t11M 11 $41 mom 4 1.1m I mll 11.111i'l W" vl4 lit, ftylyy To ra . ...... ....... it i�4A4 Y, I rr m GALLERIA LOCATION This newly repositioned hotel redefines comfort for Dallas,Tx business travelers while accomodating the community at- large. SIZE 500,000 SF — - KEYS For many years, The Westin at Galleria Dallas has been a popular destination for 448 business travelers as well as leisure travelers who are drawn to the recently renovated Galleria Dallas shopping mall. After a new owner purchased the hotel in May 2005, the decision was made to fully renovate and remodel the property, even though it already AMENITIES enjoyed a high occupancy rate. In order to minimize disruptions to guests and mall Fitness Studio, 24 -hour business center, users, the project was phased over several months, beginning with the guest rooms. Rooftop pool and splash deck, In -room spa, Connected to Galleria Shopping To reposition the hotel at the top of the Dallas hospitality market, the newly renovated Center guestrooms have been transformed into spacious junior suites, providing ample space for breakout meetings for business travelers. Underutilized decorative balconies were replaced by an armoire and a window seat that offers views of the surrounding Dallas skyline. High - performance glazing increases energy efficiency and reduces traffic noise, while also addressing security and maintenance concerns. Newly expanded conference space, catering and event space, and a spa are designed to host business meetings and social events. A new bar and restaurant is attracting customers from among the 10,000 people who work in the adjacent office towers. The grand re- opening is scheduled for February 2009. ti CONTINUED ON NEXT PAGE I� co !9 r'" v jl� y r. 0 0 D r z a m a a"o LOCATION With lush greenspace and an array of outside Hollywood, CA amenities, this new Tommie Hotel offers minimal service and micro units for those looking to spend the SIZE majority of their stay outside their room. 72,576 SF KEYS 200 The Tommie Hotel Los Angeles sits at the intersection of Wilcox and Selma Avenues in Hollywood, adjacent to an existing Mama Shelter hotel. The project bridges a gap in a AMENITIES vibrant neighborhood that is home to several stalwarts of the entertainment industry, Ground -floor lobby with bar /lounge, including Capitol Records, the historic Pantages Theatre, the Hollywood Palladium, Rooftop bar /lounge /restaurant, Rooftop and the Cinerama Dome. The hotel is designed to entice the young professional crowd going out in Hollywood to stay for the night or weekend. pool, Shared courtyard, Conference room /Flex space The Tommie will feature a lush ground -level courtyard that spills into an interior bar, lobby, and flexible spaces. A new paseo will run along the eastern side of the building, connecting Selma Avenue to the courtyard, and providing separation from the existing Mama Shelter hotel. The greenscape will extend to the roof, where guests will be able to enjoy a vibrant social scene set around the pool and lounge spaces. r O O N Q �I I L.T 1 THOMPSON HOLLYWOOD LOCATION Bridging a gap in a vibrant neighborhood with a lush Hollywood, CA ground -level courtyard that spills into an interior bar with greenscape extending to the roof, where guests SIZE will be able to relax and enjoy. 114,000 SF KEYS 200 This Tommie Hotel sits at the intersection of Wilcox and Selma Avenues in Hollywood, adjacent to an existing Mama Shelter hotel. The project bridges a gap in a vibrant AMENITIES neighborhood that is home to several stalwarts of the entertainment industry, Restaurant, Bar, Rooftop Pool Deck, including Capitol Records, the historic Pantages Theatre, the Hollywood Palladium, and the Cinerama Dome. A number of hotel developments lie within a three -block radius. Automated Robotic Parking System, Fitness Center The Tommie will feature a lush ground -level courtyard that spills into an interior bar, lobby, and flexible spaces. A new paseo will run along the eastern side of the building, connecting Selma Avenue to the courtyard, and providing separation from the existing Mama Shelter. The greenscape will extend to the roof, where guests will be able to relax and enjoy a pool, lounge spaces, and bar service. r I Al Pi 00 Influ r 1 ail 00, 70 •'' -`'�t" "� ,I r . GODFREY HOTEL OXFORD CAPITAL GROUP, LLG LOCATION Hollywood, CA SIZE 60,000 SF KEYS 176 AMENITIES Restaurant, Bar, Rooftop Pool Deck, Sauna, Fitness Center, Meeting Areas Designed to address the lifestyle of the contemporary jet- setting professional, this new hotel features guest and meeting rooms equipped with state -of- the -art technology, and an expansive fitness center. Steinberg is currently designing this high -end boutique hotel. The design caters to the lifestyle of the contemporary jet-setting professional, with amenities that will allow travelers to conduct business both locally and remotely. Located in the heart of Hollywood, the Cahuenga Boulevard site is within walking distance of amenity - filled Sunset Boulevard. JU -.5 to Fit k Psi :,I�Uojul I a a Mara a�a� v rig- 11 C1 i�ir�1 94 N O1 UC BERKELEY HOTEL COMPETITION UC BERKELEY LOCATION Creating an upscale quality and design enhancing the Berkeley, CA culture of the Berkeley neighborhood SIZE 146,000 SF The proposed program was approximately 146,000 SF in size, with 200 guestrooms KEYS and 12 floors, including a sub -grade basement for B.O.H. space. The project program 200 included amenities designed to maximize the ground floor retail on University Avenue and meeting and conference and event space to service the needs of UC Berkeley and the local community. AMENITIES Restaurant, Coffee Shop, Ballroom The Hotel was poised to be upscale in quality, and designed to enhance the culture of Space, Fitness Center, Retail Space, Roof the Berkeley neighborhood, and it was positioned as a lifestyle hotel. The Development Top Bar and Terrace Team included Commune Hotels + Resorts for management of the hotel under its Joie de Vivre brand. The Joie de Vivre brand is a soft brand providing the hotel with the opportunity to create its own identify grounded in the local culture of Berkeley and the University. IF 9 IONG 3909E STD SUITE MW VING 3605 KING 3505E BBLQ 3763E 1R SUITE MW STB SURE Too 9T KING 35057 0 0 GBLQ 375u BBL Q 1760 KING 330Y m SURE 53091 BBL Q 6P6S Typical Floor Plan �i I TRASH LOADING BBCN 6C09P ,.9669 s5o6ss I KITCHEN / LOBBY �T'DRIE COCHERg' P; tj PRIVATE F/ .• �� DININD "' 1 3 New I S I � \' E RETAIL RESTAURANT LOUNGE/BAR I 130057 LWOW WEEEE 660 t First Floor Plan CONTINUED ON NEXT PAGE ► 0 a 0 N D r Z D m m e= m to Maximum volume on site The Inflection points at the ground level on University Avenue expand the side- walk to create a place for entry to retail, restaurant and coffee bar spaces. The second floor Inflections create moments for the pre - function spaces to spill out on to outdoor terraces. Northern portion of volume subtracted to create zone for light and air The vertical carves in the volume break down the overall massing an optimizes the hotel floor plates. Hotel rooms with comer light and view conditions are creat- ed r 7 r- t-° Subtracted comers to re- orient facades towards both the bay and the university. The subtraction of these volumes allows for the view corridors along University Avenue to open up spatially. In addition, Walnut Street gains additional daylight during the afternoon hours At the ground level, this carve creates the front door to the hotel and conference facilities. The roof top level has a terrace opening out onto bay views Q3 LOCATION Creating a poetic solution within a unique urban San Jose, California context. SIZE 250,000 SF 15,000 SF retail KEYS 80 boutique hotel rooms AMENITIES Rooftop Terrace, ground floor retail, and fitness center Steinberg, working with Insight Realty Co., is in the process of developing a mixed -use tower that combines residential, office, and hotel spaces, as well as a new expansion for the San Jose Tech Museum of Innovation. Punctuated by landscaped outdoor terrace steps and wrapped in an undulating glass skin, the iconic, new 270 -foot tower — dubbed Museum Place —will include 60,000 SF of expansion space for the Tech Museum on the ground floor; 210,000 SF of "creative office" on the five stories above the museum space; twelve stories of condos; and three stories at the top for a boutique hotel, with luxury penthouse residences on the highest floor. 0 z ,lift . - m N N EDUCATION Texas Tech University Bachelor of Architecture (Cum Laude) REGISTRATION Licensed Architect, California Licensed Architect, New Mexico LEED Accredited Professional National Council of Architectural Registration Board (NCARB) AFFILIATIONS American Institute of Architects (AIA) Urban Land Institute (ULI) Urban Revitalization Council, Member Los Angeles Conservancy Los Angeles Business Council, Board of Directors, Member (LABC) Society of College & University Planning (SCUP) American Association of Community Colleges (AACC) Central City Association (CCA) DAVID HART AIA, NCARB, LEED AP PRESIDENT & CEO David Hart brings more than 26 years of experience in planning, programming, and design for a variety of projects on university campuses, with emphasis on student housing environments. He completed the first LEED Platinum student housing projects in the nation for the CSU system and has designed more than fifteen high- density or urban housing projects over the past decade. David's work evokes a strong sense of place and identity and incorporates sustainable elements that promote a healthy learning /living mix, and he will work with the team to develop the each project to meet our students future needs. David is recognized as an industry expert in design and place- making and has been widely recognized through awards, speaking engagements, and juror appointments locally, nationally, and internationally. PROJECT EXPERIENCE UDR, INC. Los Angeles, CA 3033 Wilshire Tower Korea Town 1 305,000 SF Wilshire & Crescent Heights Tower Mid -City 1 408,000 SF SJSC PROPERTIES, LLC San Jose, CA SJSC Towers 1,000,000 SF HMS WILSHIRE LA JOLLA, LLC Los Angeles, CA NMS Wilshire & La Jolla Tower Mid -City 1273,000 SF HAZENS Los Angeles, CA City Center Towers Downtown, South Park 1 778,000 SF INDIVEST Los Angeles, CA Wilshire & Gayley Apartment Tower 274,500 SF CITY CENTURY Los Angeles, CA 1233 S. Grand Ave 164,000 SF BRIDGE HOUSING CORPORATION San Francisco, CA Heritage Square Senior Housing Pasadena, CA Sage Park Affordable Workforce Housing Los Angeles 1 143,000 SF TRAMMEL CROW COMPANY Pasadena, CA Pasadena Gateway Pasadena 1 440,000 SF V6 Vermont Corridor 1 192,000 SF ASHESHH SAHEB► RA, LEED AP BD +C MANAGING PARTNER I DESIGN DIRECTOR Asheshh has over two decades of experience as a design architect. His work strives to connect the creation of a building's concept to the craft of construction. Initiating his career with Renzo Piano Building Workshop in Italy, Asheshh has gained professional experience at firms in Houston, Ahmadabad, Atlanta, Boston, New York and San Francisco, and his unique design aesthetic is influenced by this global perspective. EDUCATION GREENLAND USA South San Francisco, CA Massachusetts Institute of Technology (MIT) Oyster Point Residential 325,000 SF Master of Science in Architecture Studies, Architecture and Technology Concentration FIVE CHAIRS Los Angeles, CA University of Texas at Austin Tommie Hotel Hollywood 1 60,000 SF Bachelor of Architecture (with Honors) REGISTRATION UC BERKELEY Berkeley, CA Licensed Architect, California Berkeley Hotel Competition 146,000 SF Licensed Architect, New York Licensed Architect, Georgia SJSC PROPERTIES, LLC San Jose, CA LEED Accredited Professional SJSC Towers 1,000,000 SF AFFILIATIONS San Francisco Housing Action Coalition DM DEVELOPMENT/DOG GROUP San Francisco, CA (SFHAC) 450 Hayes* 64,470 SF San Francisco Planning & Urban Research Association (SPUR) TRUMARK COMPANIES San Francisco, CA 580 -598 Bryant Street 130,000 SF The Pacific - 2155 Webster Development* 250,000 SF 1554 Market Street* 90,000 SF CRESCENT HEIGHTS San Francisco, CA 325 Fremont Residential Tower* 142,465 SF WOLF URBAN /J.P. DINAPOLI COMPANIES, INC. San Jose, CA 333 W. San Fernando Street 718,000 SF UDR, INC. Mountain View, CA * Experience prior to Steinberg Verve Mountain View 333,000 SF N W 0 N D r z m Q W EDUCATION Kansas State University Bachelor of Architecture University of Missouri, Kansas City Environmental Design AFFILIATIONS American Institute of Architects (AIA) * Experience prior to Steinberg JOSEPH XIONG PROJECT MANAGER I PROJECT MANAGER Joseph has over ten years of experience in business development, marketing pursuits, marketing strategies, master planning, project design, BIM management, and project documentation of multiple types of projects. These projects include: Convention Centers, Sports Facilities (Stadiums, Arena /Indoor Practice Facilities), Office Buildings, Transportation, Golf Courses & Parks, Medical, Housing, and Retail. Expertise includes Conceptual Design, Design Coordination, Construction Detailing, and Collaborate Design issues with strategies and technically based solutions in an efficient and comprehensive manner. Other skills include: managing design of all construction phases (from design development to production), and administering quality controls (for design consistency, accuracy and completeness), BIM management, and coordinating between all disciplines. PROJECT EXPERIENCE SJSC PROPERTIES, LLC SJSC Towers THOMPSON DORFMAN PARTNERS, LLC The Waverly Residential FIVE CHAIRS Tommie Hotel CARMEL PARTNERS The Vintage HAZENS GROUP Hazens' LA Center CITY OF SANTA CLARA Levi's Stadium* San Jose, CA 1,000,000 SF Foster City, CA 214,325 SF Los Angeles, CA Hollywood 1 60,000 SF Pleasanton, CA 558,949 SF Los Angeles, CA Downtown, South Park 1 778,000 SF Santa Clara, CA 68,000 -seats JMA VENTURES Oyster Point RFQ 3.31.17 2 CONFIDENTIALITY STATEMENT This presentation is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. This presentation may not be reproduced or redistributed in any manner and is strictly confidential. Certain information contained herein has not been obtained from published sources prepared by third parties. In addition, certain information contained herein relates to and has been obtained from companies in which investments have been made by a prior investment vehicle and its affiliated entities. While such information is believed to be reliable for the purpose used herein, none of JMA Ventures LLC nor any of its affiliates assumes any responsibility for the accuracy of such information. 3 EXECUTIVE SUMMARY ▪JMA ventures, LLC (“JMA”) is pleased to present its response to the Request For Qualifications in regards to the development of a waterfront hotel project at Oyster Point (the “Project”) ▪Headquartered in San Francisco, JMA is a full-service real estate development and investment firm with 30+ years of experience in the Bay Area, as well as other major West Coast locations ▪JMA has a strong track record of similar hospitality developments that position the firm well to deliver to the City of South San Francisco an exciting, unique, destination oriented dual branded hotel that will be the anchor for the evolving Oyster Point ▪Select experience applicable to the Project include: ▪Redevelopment of Ghirardelli Square including the repositioning of 100,000 SF of existing retail and conversion of historical office into a 53 room residence club, the Fairmont Heritage Place ▪Redevelopment of Downtown Plaza Shopping Center in Sacramento into a 1.5MMsf Mixed Use Development composed of 350,000sf of retail, 475,000sf of office, 250 room hotel and 50 condos all surrounding a new 675,000sf NBA Entertainment Sports Center Arena ▪Development of a 168-key Aloft hotel across from the Reno Airport ▪Ownership of the 417-key Hyatt Regency La Jolla hotel in San Diego ▪Ownership of the High & Dry Marina on the West Shore of Lake Tahoe in front of JMA’s 1,260-acre Homewood ski resort and adjacent to JMA’s West Shore Café and Inn ▪Conversion of the Hearst office building in downtown San Francisco to a 150-key boutique hotel ▪The following provides additional information on JMA and our preliminary vision for the Project COMPANY OVERVIEW Why Oyster Point? The opportunity to develop a marquis hotel at Oyster Point would be an honor for JMA Ventures. As a San Francisco based firm, we pride ourselves in our ability create destinations in the communities we are a part of. From the San Francisco waterfront, to our marinas in Lake Tahoe, to our efforts to revitalize downtown Sacramento, we focus on challenging projects in the communities we care about. We would be thrilled by the opportunity to work with the city of South San Francisco on this landmark project and welcome the opportunity to discuss creative strategies for unlocking the site’s underutilized potential. 6 KEY STRENGTHS Development Finance Entitlements Hospitality Sales and Marketing Architecture Accounting Food & Beverage Legal / Structuring City Planning JMA’s multi-disciplined platform including in-house verticals of finance, construction, entitlement, design and asset management create a complimentary relationship for the City to ensure the ultimate success of the Project 7 JMA Ventures, LLC is a full service real estate investment firm with in-house capabilities such as: Acquisition Development Finance Leasing and Management JMA VENTURES PROFILE 3 Hospitality Resort/Leisure Residential Retail Office Restaurant The firm is the managing partner of over in existing projects spanning $2.0 Billion 8 HISTORICAL EXPOSURE TO MAJOR ASSET CLASSES Over the last 30 years, JMA has successfully invested in projects in a wide range of asset classes. JMA has the ability to leverage this deep experience when working on new projects. Residential: 13 Projects Office: 32 Projects Retail: 5 ProjectsHotel/Resort: 8 Projects Restaurant: 4 Projects Data Centers: 8 Projects 9 JMA OFFICE LOCATIONS San Francisco, CA 460 Bush Street San Francisco, CA 94108 Sacramento, CA 660 J Street, Suite 390 Sacramento, CA 95814 Lake Tahoe, CA 850 North Lake Blvd., Suite 15 Tahoe City, CA 96145 Nevada California Utah Arizona 10 PRIMARY VERTICALS OF JMA Acquisition and Financial Analysis Highly capable, analytic and experienced team of acquisitions professionals JMA has a long term track record of acquiring and providing diligence for high profile and complex projects in the Western United States Asset Management Innovative yet institutional, the JMA platform is driven by a hands on approach to real estate asset management with best in class reporting and analytic capabilities Development Management In-house capability to manage development for Hospitality, Leisure, Resort, Residential, Retail, and Office developments Hotel Management JMA’s team of hospitality professionals directly manage operations, distribution, and revenue management at a number of properties with a focus on providing unique high touch customer experiences while protecting bottom line performance Finance The finance team is highly disciplined and experienced in financial and treasury management operations at JMA’s various projects JMA’s finance and accounting teams come from some of the most well known banking, finance, and accounting firms in the industry Operations and Operations Management With a unique capability to run operating businesses as well as real estate assets, JMA’s management teams across the consumer facing leisure, resort, hospitality, and F&B industries provide a strong multi- disciplinary resource to engage in complex and challenging projects that other real estate platforms are unable to undertake Sales and Marketing JMA prides itself on staying up to date on the latest trends and technologies, effectively identifying and segmenting its target audience, and producing creative, effective marketing programs that ensure a high-velocity of sales and strong returns for investors Experienced in-house sales and marketing teams specializing in luxury residential and commercial destinations 11 MULTIPLE PLATFORMS THAT LEVERAGE CORE COMPETENCIES –CURRENT PORTFOLIO Lodging Leisure Development Residential Sales Distressed NotesRestaurants Office I-5 Technology Center Vista Ridge II 1515 S Street Sun Center Retail 18 acres on Las Vegas Strip 12 BROAD OPERATIONAL EXPERIENCE ACROSS INVESTING SPECTRUM Leisure Operations ✓✓✓✓✓✓✓✓ Hotel Management ✓✓✓✓ Development Management ✓✓✓✓✓✓✓✓ Restaurant Operations ✓✓✓✓ Office Management ✓✓✓ Entitlements ✓✓✓✓✓✓✓✓ Residential Sales ✓✓✓ Leasing ✓ Loan Servicing ✓ JMA is not just an investment firm, we take a hands on approach to all of the projects in which we invest. Our operating and development expertise are two of our defining characteristics that are major contributors to our success. 13 KEY FINANCIAL PARTNERS 14 EXPERIENCED TEAM LEVERAGING DIVERSE BACKGROUNDS JMA’s professionals have experience across a number of different fields providing our investors with deep deal structuring, execution and management experience. Legal Brokerage Investment Banking Development Finance Accounting Sales & Marketing Entitlements Economics •AGI Capital Group •Campeau Corporation •Caruso Affiliated •Devonian Properties •East West Partners •GFI Partners •Intra West Development •Prologis Global Trust •Walt Disney Company •Winding Road Development •Deutsche Bank •KeyBanc Capital Markets •Morgan Stanley •Farallon Capital Management •Fremont Group •Invesco •Ironwood Capital Management •Legg Mason •MSREF at Morgan Stanley •Starwood Capital •UBS •US Bank •Wedbush Securities•Allen Matkins Leck Gample and Mallory •Orrick Herrignton and Sutcliffe, LLP •Caruso Affiliated •City of Long Beach Redevelopment Agency •East West Partners •Prologis Global Trust •CB Richard Ellis •Marcus/ & Millichap •Analysis Group •NERA Economic Consulting •CBIZ, Inc. / Mayer Hoffman McCann P.C. •PWC •Four Seasons Hotels and Resorts •Big Bang Idea Engineering •Greenhaus •Lyon and Associates •Smith + Jones •Sotheby’s International Realty 15 JMA PROJECT AWARDS Waterbar Awards Fairmont Heritage Place Ghirardelli Square •TripAdvisor GreenLeaders, 2014 •Best Private Residence Club in North America, •T+L 500 World’s Best Hotels, 2014 •America’s Best Coastal Hotels, World’s Best Hotels for Families •#22 Best California Hotels •#2 Best Hotel in San Francisco West Shore Café and Inn Rated Excellent on Tripadvisor by 58 travelers TEAM BIOGRAPHIES 17 OYSTER POINT –PROJECT TEAM Executives Kevin Morgan VP of Acquisitions & Finance 12 Years Investment Banking Harold Levy Financial Analyst 2 Years Economic Consulting Todd Chapman President & CEO 16 Years Acquisitions, Legal Jamie Robertson Finance & Development 10 Years Development Finance & Accounting Monica Cornejo Property Accountant 8 Years Accounting Belinda Silva Controller 13 Years Accounting Sales & Marketing Amy Owen Director of Marketing 12 Years Advertising Human Resources Kathy Chan Vice President 16 Years Human Resources Development & Construction Chris Heinrich Vice President 25 Years Development David Tirman Sr. Vice President 27 Years Development 18 OYSTER POINT –PROJECT TEAM (CONTINUED) Todd Chapman President & CEO •Prior to joining JMA as executive vice president and general counsel, Mr. Chapman was an attorney with the law firms of Orrick, Herrington and Sutcliffe, LLP (San Francisco) and Allen Matkins Leck Gamble and Mallory (Los Angeles and San Francisco) where he served as JMA’s primary outside counsel for six years. Art Chapman Founder & Chairman •Mr. Chapman has served as President of JMA for 25 years and has 30 years of professional experience in real estate management and development. •At Campeau, Mr. Chapman served as Vice President of Commercial Development and General Manager of Housing where he was responsible for multiple residential projects throughout California. 19 OYSTER POINT –PROJECT TEAM (CONTINUED) Kevin Morgan VP, Acquisitions & Finance •Prior to joining JMA, Mr. Morgan was a Vice President in Deutsche Bank’s Real Estate, Gaming, Lodging and Leisure Investment Banking Group in New York City. Chris Heinrich VP, Resort Development •Prior to JMA, Chris served as Vice President of Development for Winding Road Development, Director of Development for Intrawest Development Jamie Robertson Director, Development & Finance •Prior to joining JMA, Mr. Robertson worked in various engineering and project management related capacities for both DPR and Turner on a variety of landmark projects around the Bay Area. David Tirman Executive Vice President •Prior to JMA Ventures, Mr. Tirman served as Vice President with East West Partners- Tahoe charged with management of entitlements, planning and design for the Village-at-Northstar and the Northstar Highlands. Amy Owen Director of Marketing •Prior to JMA, Ms. Owen held national and regional marketing leadership roles supporting sales operations and contact center management with premier brands including Marriott International and KSL Resorts. Belinda Silva Controller •Belinda previously worked for AGI Capital Group in San Francisco, CA and GFI Partners in Boston, MA as part of their accounting groups. OYSTER POINT PROJECT VISION 21 EXECUTIVE SUMMARY ▪Given the unique geographic and market related attributes of the site, our initial idea is to explore a dual branded hotel concept ▪This will allows the property to capture upper upscale executive and leisure travel positioned toward the life science personnel in the area in addition to the traditional upscale business segments ▪The property will become the nexus of the evolving Oyster Point and accommodate further growth as the entire Oyster Point community expands ▪The optimal product mix will be validated as part of an in depth market study Event Space Executive Terrace 22 PROJECT OVERVIEW Project Overview 4.7 acre site with CEQA clearance for up to 350 guestrooms Located directly on the water, 2.5 miles east of downtown South San Francisco and 10 miles south of San Francisco 250 degree unobstructed views of San Francisco, Oakland, San Francisco International Airport and San Bruno Mountains Project is part of Oyster Point Marina Redevelopment Project, a multi-phased developed consisting of over 2.2 million SF of office and R&D space, retail, and open space Located in close proximity to over 200 biotech companies, employing over 20,000 people Key Components 350 hotel rooms 2 hotel towers Dual-branded concept to appeal to both transient, corporate, group and long-term stays Investment Thesis ✓Irreplaceable location with captive demand generators given the burgeoning office and residential community at Oyster Point ✓Unique waterfront offering (closest to water in San Francisco at ~165 feet), especially relative to existing new-build construction constraints along the San Francisco city waterfront (Prop B) ✓Supportive hospitality metrics including 89% occupancy and $181 ADR indicating a capacity for additional supply ✓Close proximity to SFO (14 minute drive) and only 30 minutes to downtown San Francisco by car while also have several modes of transportation easily accessible ✓Future plans to further support demand with over 6.5 million SF of R&D and office space that has been approved for development over the next three years ✓Located in front of Oyster Point Marina providing unique programing opportunities as well as a complimentary offering to the 408 berths as well as the 300 foot fishing pier ✓Ability to program Oyster Point and have the Project be the anchor for this “corner” of South San Francisco The Project will be the only true waterfront hotel in San Francisco, providing guests and visitors with 270-degree unobstructed views in a unique, exciting and unmatchable location Located in close proximity to over 200 biotech companies, employing over 20,000 people Full service brand –100 rooms Extended stay –250 rooms 18,000 SF of meeting space 4 F&B outlets Preliminary estimates indicate zoning that would require 485 parking spots. If selected, JMA would commission an in depth parking study to determine if parking could be optimized to maximize surrounding natural amenities. 23 IDEA MAP & POTENTIAL SITE ACTIVATION STRATEGIES Idea Map Activating location Chariot partnership for easy transportation to city and airport Recreational programs to attract locals SF Ferry building connection Book “destination” events that attract large group business Program Bike rentals for exploring Oyster Point Sailing school in partnership with the marina Paddle board rentals Health & wellness focus with water and running trailsCreating the nexus for Oyster Point Off site meeting rooms for Oyster Point tenants Sponsored happy hours for nearby tenants Open air lobby areas activating a new boardwalk area Working pods in lobby Product position Upscale boutique Comfortable extended stay A new type of business getaway Following a site visit to Oyster Point, the JMA team brainstormed about the Project and strategies to activate the site concurrent with the construction of the hotel. As a next step in the process, we will explore all of these areas to better define the programing of the hotel and Project overall. Our goal is to create a fully activated waterfront –an amenity for visitors and locals alike. 24 CONCEPT & VISION Component Concept Key Metric Example Hotel –Full Service ▪Higher end,4 star service hotel providing executives, including nearby life science personnel, and transient guests with an upper upscale experience ▪100 keys ▪Independent (Shade, Noble Hotel) ▪Curio ▪Kimpton ▪Indigo ▪NYLO ▪EVEN ▪Cambria Hotel – Extended Stay ▪Select service hotel offering guests comfortable amenities for longer term stay business guests ▪250 keys ▪Hyatt Place ▪element ▪Home 2 Suites ▪Town Place Meeting Space ▪Extension of nearby corporate offices ▪Larger ballroom with segmented optional separating walls ▪18,000 SF ▪~500SF / room Food & Beverage ▪2 full services restaurants ▪2 grab & go style / bar areas ▪4 restaurant areas Lobby ▪Communal space looking out to bay ▪Working pods ▪Inviting to public with open feel ▪Not exclusive to hotel Outdoor Area ▪Patio overlooking bay ▪Fire pits ▪Bocce courts ▪Bikes available to rent ▪Music and entertainment ▪Nexus of Oyster Point 25 POTENTIAL ACTIVATION STRATEGIES –CONCEPT IMAGES 26 HOTEL POSITIONING -CONCEPT IMAGES 27 PRELIMINARY SITE PLAN ➢In walking the site, we felt the design priority should be to maximize the hotel’s proximity to the waterfront, the marina, and the pedestrian green way ➢Food and beverage outlets would be designed with an indoor / outdoor configuration that invites marina guests into the property, creating a true waterfront destination experience ➢Multiple food and beverage outlets would be designed to target both the hotel guest segment in addition to the local marina recreation community, all with an eye towards the core life science customer base in the area ➢Hotel rooms would be oriented to maximize captivating views of the bay ➢Green space would be maximized and the trail network would seamlessly integrate with the hotel grounds 28 PRELIMINARY TIMELINE RFQ Submittal •March 31, 2017 Begin Feasibility study including brand(s) exploration •April 21, 2017 Brand & architecture design discussions •June 19, 2017 Follow-up presentation to City •August 28, 2017 Developer control of the site per RFQ outline •October 1, 2018 Begin design phase •November 15, 2018 Target construction to begin •June 2019 Target Hotel opening •November 2020 RELEVANT PROJECTS 30 SACRAMENTO DOWNTOWN PLAZA – KINGS ENTERTAINMENT AND SPORTS COMPLEX Project Overview Redevelopment of Downtown Plaza Shopping Center into a 1.5MMsf Mixed Use Development composed of 350,000sf of retail, 475,000sf of office, 250 room hotel and 550 apartments all surrounding a new 675,000 sf NBA Entertainment Sports Center Arena. The first phase of the Mixed Use components will include 300,000sf of new Retail; a new 250 room Hotel; 100 new Apartment units; and a refurbishment of an existing 95,000 sf Office building as well as an existing 332,000 sf Macy’s full-line department store. The Development will be designed to leverage activity generated by the new 675,000sf Arena, as well as our location just four blocks from the State Capitol Building. Project Highlights/Investment Thesis Acquired property in August 2012 at a low basis from Westfield; 12 acres of land at center of State Capital’s downtown. Existing operations generated ample cash flow to provide time to pursue redevelopment strategies while keeping basis low. Managed property through small-scale improvements that built back community support and brought in local tenants to provide new vibrancy while maintaining redevelopment flexibility. New project will leverage its central location near the State Capitol and new transportation infrastructure and will serve as the catalyst for adjacent redevelopment projects that have been stalled since the onset of the great recession. Due to the density of the new project, the land basis remains low and provides an opportunity to create a substantial first phase of the redevelopment at relatively low risk to investors. JMA retained the ability for its investors to invest in the new mixed-use development going forward. Value Added by JMA Off-market acquisition from Westfield. •Master developer of the new Entertainment Sports Complex site and developer of the mixed-use components. •Acquisition diligence of the site •Development and construction management •Hire and manage architect team (Rios Clemente Hale) to deliver development concept with favorable economics •Deliver hotel partnership with national hotel operator •Asset manage all aspects of the project including retail and leasing and financial oversight JMA’s role included: Executed sale of property to Sacramento Kings investment group doubling investor’s equity over an18 month hold period. Lobbied for the property to become the site for new Sacramento Kings arena; convinced potential team investors and the NBA of the project’s viability. 31 FAIRMONT HERITAGE PLACE GHIRARDELLI SQUARE – SAN FRANCISCO Project Overview Ghirardelli Square is a world-renowned national historic landmark sitting on one of the most coveted waterfront properties in San Francisco. Site acquired by JMA in 2004 in an off market transaction. Subsequently developed into mixed use retail (101,000 SF across 12 buildings and 283 parking spaces) and a 53 private residence club. Transformational project given landmark designation of the site and change in tenant mix from tourist centric to high-end. JMA maintains ownership and oversight of sales for the unsold fractional inventory at Fairmont Heritage Place Private Residence Club . Project is 65% sold out. Value Added by JMA JMA’s role included: JMA led the historic $50M+ remodel of the property in 2004. Hornberger + Worstell acted as the lead architect and designer and Swinerton acted as lead contractor. •Acquisition diligence of the site •Development and construction management •JMA in-house specialists worked hand-in- hand with contractors and designers on redevelopment concept •Sourced and negotiated sponsorship from Fairmont to be the brand and manager of the 54 fractional hotel project •Asset managed all aspects of the project including retail lease and financial oversight •Hired and currently manage a JMA in- house sales team for the fractional sales of the Fairmont Heritage Place Project Highlights/Investment Thesis Fairmont Heritage Place opened in 2008 and was Fairmont's first urban private residence. Offers regular hotel stay opportunities and deeded second home ownership in one, two and three bedroom residences across 53 residences offering a total 530 units (1/10th interest). Extremely complex structure given fractional portion and hotel function of unsold inventory. Have sold four of the four available whole units at market record prices on average of $1,733 PSF. Recognized as the #1 hotel in San Francisco: •Consistently in top 5 ranking on TripAdvisor out of over 230 hotels in San Francisco for past 3+ years •2012 Fractional Life Award for Best Private Residence Club in North America •RevPAR penetration index of over 200 32 HOMEWOOD HIGH & DRY MARINA –LAKE TAHOE Project Overview Located on the West Shore of Tahoe, the Marina is only one of the two commercial marinas on this part of the Lake. Across from JMA’s Homewood Mountain Resort and adjacent to its West Shore Café, Marina’s strategic location was a key driver of this 2016 acquisition. Marina operation consists of indoor and outdoor dry rack storage, buoy field, harbor, and off-site leased storage. Acquisition included a book of over 300 long-term storage customers, a customer base on which JMA will build. Marina combines the more-steady aspects of a storage business with the customer-facing aspects of a service operation. Value Added by JMA JMA’s role included: Realization of synergies with Homewood Mountain Resort and West Shore Café and integration into the Homewood organization. Off-market acquisition from a family estate bankruptcy. Direct management of the marina operations. •Acquisition diligence of the real estate and operations •Hands-on property and asset management of all aspects of the project •Capital expenditure planning In process of a ground-up marketing rebranding. Restructured pricing to align it with available storage capacity, demand trends. Introduced dynamic pricing. Project Highlights/Investment Thesis Marina moratorium on the Lake Tahoe poses a major barrier to entry, creating favorable supply/demand dynamics. Although steeped in history on the West Shore, this family operation had low-hanging improvement opportunities that lend themselves to a more institutional-level management. Significant cross-market and cross-sell opportunities with other JMA Tahoe assets, in contrast with virtual absence of marketing and online presence during prior ownership. Marine gantry and forklifts as well as deeper water on the West Shore serve as mitigants of low water level risk. Longer term, ability to replace leased off-site storage with a closer, built-to-suit warehouse would provide an upside. 33 HYATT REGENCY LA JOLLA –SAN DIEGO Project Overview 417-key hotel with adjacent 32,000 SF fitness center in a prime location right off of I-5, 12.5 miles north of San Diego International Airport and Downtown San Diego. The Hotel is located within the Aventine, an 11 acre campus that also includes 4 upscale restaurants including Japengo, one of San Diego’s highest rated Asian-fusion restaurants, a 11-story 238,979 SF office building and ~1,200 space parking garage. The Hotel was built in 1989 and was previously owned in a partnership between Strategic Hotels and GIC. The Hotel underwent a $12mm renovation ($28,777 per key) in 2014, upgrading the rooms to a best-in-class standard among the Property’s comp set, limiting significant near-term capex needs. The Property consists of 56,900 SF of meeting space. Acquisition included the hotel, 32,000 SF gym and leased interest in the Japengo restaurant. Value Added by JMA JMA’s role included: A personal relationship with Strategic Hotels generated an off-market deal at a time in the lodging cycle when hotel trades, especially in major coastal markets like San Diego, are rare and receive significant interest. •Sourcing and negotiating acquisition •Acquisition diligence including unique environmental items •Asset management and executing business plan including possibly selling gym site, renovating on-site restaurant and implementing best practices for hotel operations as well as cleaning up the common area maintenance budget for the project JMA leveraged its growing hospitality platform as well as disciplined asset management approach to identify a mismanaged asset in need with a more focused ownership group. Project Highlights/Investment Thesis Property is located in the La Jolla/University City (“UTC”) market directly off, and with high visibility from, the I-5, a prominent submarket with significant barriers to entry. Submarket is home to UC San Diego, and is the center of the booming biotech and pharmaceutical industries, containing 3.8mm SF of Class-A office, immediately adjacent to coastal beaches. Representing less than 2% of Strategic’s total EBITDA, the Property had not received focused asset management required to successfully enable the Property to return to peak NOI achieved in 2007 as well as regain lost market share. GOP margin of almost 600bps lower than full service peers. Recent success includes: •Eliminated 50% of Hotel’s CAM budget through diligent review •Restructured top management team bringing in a new GM •2015 NOI exceeded underwriting by 7% •Accessed a portion of the available $8.0M debt earn-out 6 months prior to underwriting 34 WATERBAR –SAN FRANCISCO Project Overview Acquired: February 2005/Constructed: January 2008. Pat Kuleto’s 200-seat seafood restaurant located on the San Francisco waterfront is nothing short of spectacular, offering panoramic views of the bay and the freshest seafood. The main floor at Waterbar features dramatic, 19- foot tall, five-foot diameter, floor-to-ceiling circular aquariums filled with an eye-catching array of fish and marine life from the Pacific Ocean, while walls of vividly illuminated fish tanks display a gallery of fresh catches available on that day's menu. The extravagant cascading raw bar, towering with shellfish and lit through glistening ice, sets the tone for the raw bar dining area. Value Added by JMA JMA continues to work with the current tenant, Pat Kuleto’s group, to maximize their opportunities and success. In the past year, we have pushed them to make changes in operating schedules and banquet structure, which resulted in a 4% increase in revenue year over year. The San Francisco waterfront wasn’t accessible until the highway was deconstructed in 1989. Thereafter, development moved very slowly and JMA was one of the first players in the waterfront redevelopment. The entitlement process alone took over 10 years to finalize as there were several municipalities involved in the notoriously difficult San Francisco process (Redevelopment Agency, Port of SF, Bay Conservation & Development Commission, Rec & Park, etc.). Waterbar is one of those properties that must be seen to be believed –the quality of the construction and the location of the property are truly world class and among the very best in California. Project Highlights/Investment Thesis The San Francisco waterfront is arguably the most active investment and development area in the region. The current art installation along the Bay Bridge, the America’s Cup, Exploratorium, potential Warriors stadium, current Giants stadium, Ferry Building redevelopment, etc. are all within walking distance of the property and continue to enhance their success. The South Financial District is also bursting at the seams with office and residential development as Silicon Valley continues it’s northern climb into San Francisco proper. The average resident or office worker within a one mile radius belong to some of the most compelling demographic groups for an asset of this type. 35 HEARST HOTEL –SAN FRANCISCO Project Overview Originally built in 1911, the Hearst building was the headquarters of the Hearst media operations over the bulk of the past century. Currently, the building serves as the Heart company’s west coast headquarters in addition to hosting a variety of small office tenants and ground floor retail. JMA has entered into a ground lease with Hearst to redevelop the property into a higher and better use. The building’s inefficient layout and historic nature has made it extremely inefficient as an office space. After conducting a highest and best use analysis, Hearst concluded a hotel would be the best use for the site and engaged JMA to help bring this vision to reality. JMA is currently working with the Hearst family to implement a creative development plan that will convert the building into a 160 room boutique hotel with a 5-star dining experience on the ground floor. Value Added by JMA JMA has worked with the Hearst family to create a development plan that overcomes the immensely complex task of financing and re- developing a 105 year old building listed on the National Historic Register •Structuring original acquisition and ground lease terms between Hearst and the development team. •Capitalizing the project with a variety of outside-the-box sources •Assembling the design team and consultants to permit the project. •Development management •Design management JMA leveraged financial expertise to include a capitalization strategy that leverages historic tax credits and EB-5 financing. JMA developed a creative financing structure –essential to making the project economically viable. Project Highlights/Investment Thesis Unique historic asset with underutilized intrinsic value. Unbeatable location in one of the nation’s strongest hotel markets. Underserved segment of SF travelers present a market opportunity. Complexity of ground lease structure, historic designation, and challenging cost environment limit firm’s capable of unlocking value. Valuable customer base with less sensitivity to economic cycles. Attractive capital structure only available to experienced developers with deep capital relationships. JMA’s Role Included: Unbeatable hotel location. New to the SF Market, this NY concept should capture a disproportionate share of the SF lodging market as people search for experiential travel options. 36 ALOFT HOTEL –RENO Project Overview 168-key Aloft hotel to be constructed across from the Reno Airport Target construction start February 2018 with opening in February 2019 JMA participated in an extensive review process with the Reno-Tahoe Airport Authority JMA is also pursuing the construction of an adjacent 65,000 SF office building as well as a 6,000 SF F&B offering JMA signed the ground lease with the Reno- Tahoe Airport Authority in Q1 2017 and is working through the design and construction planning phase JMA Role JMA will be the developer and owner of the to be constructed Aloft hotel Project Highlights/Investment Thesis Opportunity to establish an ideally situated hotel in a burgeoning lodging market with current occupancy at a record 80% Capitalize on the strong macroeconomic dynamics that are driving the notable growth of the Reno economy (population growth of 6.8% annually since 2010, Tesla’s new $5bn battery factory and sub 5% unemployment) Review process included structuring a ground lease, on airport land, having to consider height restrictions, FAA lease term parameters and other unique characteristics JMA is tasked with programing and amenitizing the “front door” to the Reno Airport at a critical stage in the airport’s growth and evolution of Reno in becoming a tech-forward city Target the upscale lifestyle hotel market, which is underserved by Reno’s existing inventory The location will also allow the Hotel to be one of the upscale hotels closest to downtown Reno. In addition to increasing the general appeal of the property to travelers conducting business or enjoying leisure activities downtown, this will provide a competitive advantage when the city becomes compressed over peak dates. As compression from city center activity works its way out of the downtown core, the Hotel will be one of the first desirable, branded lodging options. 37 BAY CLUB –NORTHERN & SOUTHERN CALIFORNIA Project Overview Founded in 1977, The Bay Club (formerly Western Athletic Clubs) is an active lifestyle and hospitality company with a network of 24 modern country clubs across 10 campuses. The Company is the pioneer of the sports resort model defined by high-end, private clubs with an expansive offering of signature amenities that combines the traditional health clubs with the family- oriented stickiness of country clubs. Five campuses are located in Northern California (Marin, San Francisco, Redwood Shores, Silicon Valley and Los Gatos) and five in Southern California (Santa Barbara, San Diego and three in Los Angeles). Headquartered in San Francisco, the growing enterprise welcomes 85,000 members and is home to 3,400 associates, with anticipated new growth including the acquisition of golf clubs, country clubs, and swim & swim venues up and down the coast. Value Added by JMA JMA leveraged a personal relationship with the previous owners, KSL Capital, to acquire the Company in June 2014 in an off-market transaction in partnership with York Capital and the existing senior management team. •Structuring original acquisition •Unique insight into owned real estate portfolio •Assisting the Company with monetizing select real estate •Board representation •Helping to identify, underwrite, structure and assess bolt-on acquisition opportunities •Work directly with management on maximizing operations JMA’s role included: JMA local Bay Area presence and real estate platform helped to identify significant real estate value across the Company’s portfolio. Project Highlights/Investment Thesis Market leading business with significant underlying real estate value across 38 acres of owned real estate. Located in some of the wealthiest neighborhoods in the U.S. Have grown the platform from an acquired 11 locations to now 24 mostly through the acquisition of Spectrum Athletic Clubs in LA. Unique platform with large pipeline of distressed clubs, mom & pop owned assets and ability to expand in additional markets. Valuable customer base with less sensitivity to economic cycles. Economically resilient and predictable revenue stream through dues based model. Significant moats within each market given dominant position. Large ancillary spend and several revenue generating channels given captive nature of assets. Attractive capital structure and long-term leases in place. MAY 22, 2017 OYSTER POINT HOTEL DEVELOPER PRESENTATION AGENDA Overview Relevant Hotel Experience Program & Brand $268M $110M $1.4B40030+ AREAS OF FOCUS YEARS OF PROVEN EXPERTISE EMPLOYEES COMPLETED OVER IN LONG BEACH (HEADQUARTERS), PHOENIX, RENO, LAS VEGAS, AND SAN FRANCISCO HEALTHCARE HOSPITALITY MULTIFAMILY COMMERCIAL IN TOTAL REAL ESTATE INVESTMENTS IN ACTIVE CONSTRUCTION 2017 PROJECTS STARTS ENSEMBLE INVESTMENTS AT-A-GLANCE Real estate investment company with asset management, development and repositioning expertise. CONCEPTUAL PROGRAMMING Kam Babaoff Managing Director, Chairman Michael Moskowitz Managing Director, Chief Financial Officer Randy McGrane Managing Director, Chief Executive Officer Brian Ehrlich Chief Investment Officer, Hotels ENSEMBLE TEAM Ed Proenza Chief Operating Officer, Hotels Conrad Garner Sr. Vice President, Development Services Jacob Owen Sr. Vice President, Finance Ensemble Principals Kam Babaoff Michael Moskowitz Randy McGrane DEVELOPMENT TEAM Capital Partner DEVELOPER DEVELOPMENT TEAM Development Brian Ehrlich Chief Investment Officer Finance Jacob Owen Operations/Asset Management Ed Proenza Design & Construction Project Management Conrad Garner Development Executive Randy McPherson Project Manager CURRENT HOTEL PORTFOLIO Emeryville, CA Ithaca, NY Long Beach, CA The Navy Yard, PA Santa Cruz 175 Keys 159 Keys 178 Keys 212 Keys 165 Keys Opened November 2016 Opened December 2016 Opened 2009 Opened 2014/Expanded 2017 Acquired 2006 & Renovated 2009 & 2017 Carmel Valley, CA Carson, CA Long Beach, CA Mesa, AZ 73 Luxury Suites & Villas 225 Keys 199 Keys 275 Keys Acquired & Renovated 2015/2016 Acquired & Renovated 2012 Acquired 2003 & Renovated 2010/16 Acquired 2015 Menlo Park, CA Pasadena, CA Camden, NJ Philadelphia, PA 250 Keys 186 Keys 180 Keys 231 Keys Opening 2017 Opening 2018 Planned 2018 Planned 2018 Bernardus Lodge & Spa DoubleTree Hotel Maya DoubleTree Marriott UNDER CONSTRUCTION Autograph Hyatt Place Hilton Garden Inn Kimpton Hyatt Place Marriott Residence Inn Courtyard Dream Inn 9 Operating Hotels 1,661 Rooms PIPELINE 2 Hotels Under Construction 436 Rooms 2 Pipeline Hotels 411 Rooms $800M Portfolio Value RELEVANT EXPERIENCE Menlo Park, CA 250 Keys RELEVANT FEATURES - Northern California - Part of an Overall Master Development - Collaboration with City Stakeholders RELEVANT EXPERIENCE Emeryville, CA 175 Keys RELEVANT FEATURES - Embedded in Mixed Use Retail - Part of a City Land Vision - Fully Custom and Local Design Approach RELEVANT EXPERIENCE Courtyard Marriott Navy Yard Philadelphia, PA 172 Keys RELEVANT FEATURES - Part of a Master Development - Unique Design - Customized Above Brand Standard RELEVANT EXPERIENCE Long Beach, CA 199 Keys RELEVANT FEATURES - Waterfront Success - Variety of Outdoor Meeting Spaces - Maximized Views - Guest Connection to Water - Relation to Active Marina - Highly Customized Brand Adaptation BRAND DISCUSSION Full Service: Select Service: • 180 - 225 rooms • Full service or highly customized (private label) premium select service • Lifestyle and design oriented • Outdoor and indoor spaces are essential - 5 - 10K SF of meeting space • Restaurant • Fitness Hotel Program: MEETING SPACE PROGRAM MEETING SPACE PROGRAM SITE EXPLORATION • Relationship to Marina • Connectivity to the Retail/Mixed Use zone • Collective approach to parking solution • View lines and primary nodes within the master development SITE ANALYSIS May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION Site Location May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION U.S. ROUTE 101 SITE SITE SPECIFICATIONS Proximity Trail Vehicle Route Bike Route Site Size: Approximately 4.7 acres Subject to FAR Part 77 height restrictions 1.6 Base FAR 2.2 FAR with incentives Height: FAR: May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION CEE 4674 - Airport Planning and Design 6 of 28 Obstructions to Navigation An object constitutes an abstruction to navigation if: •If 200 ft. above ground level or 200 ft. above the airport elevation (whichever is greater) up to 3 miles (for runway lengths > 3200 ft.) from the airport. - Increase 100 ft. every mile up to 500 ft. at 6 miles from the ARP (airport refrence point) •Is 500 ft. or more above ground level at the object site •If penetrates an imaginary surface (a function of the precision of the runway) •If penetrates the terminal obstacle clearance area (includes initial approach segment) 3 mile Project Location SFO Airport Flight Path May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION SITE FERRY Site Factors Legend Road Winds Winter Solstice Summer Solstice May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION N * SITE FERRY VIEW TRAVELING FROM Arrival Sequence 1 May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION N * P A T H SITE FERRY V I E W Arrival Sequence 2 May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION N *P A TH TRAVELING FROM RESPONSE May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION RESPONSE May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION RESPONSE May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION SITE ORIENTATION • Penisula orients to optimal East-West placement, reducing heat gain + optimizing building energy performance • Site accessed from Marina Blvd. RESPONSE May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION RESPOND TO SITE INFLUENCES • Allow the North + South Outdoors to penetrate the Site. RESPONSE May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION INVITE GUESTS TO SITE • Create open, flexible vehicular court to accomodate Multi-model transportation uses. • Site porosity increases the visual + physical access, and allows the Public + Private uses to blend MARINA BAY Create a dramatic Entry Portal that connects the guest arrival with views of the Marina + the Bay. RESPONSE May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION ACTIVATED ZONES • Featured areas of gathering, reflection, or engagement are surrounded with glass and open air to connect interior + exterior space. • The public levels and outdoor spaces are connected with the Public realms of the site. • Access to Light + Air activates guests. Offset large function spaces from the Hotel tower for efficient structure. Orient the outdoor amenity spaces to the South for optimal orientation of sun + views. Separate the parking structure from the Hotel tower for a more economically viable solution. RESPONSE May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION PROTECTIVE SHELTER • Positioning of Tower to shields public, active areas from dominant winds on site. • High-rise Guest Room tower takes advantage of spectacular views. Narrow tower floor plate allows an efficient envelope- to-floor area ratio. RESPONSE May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION IDENTITY + FORM • Tower lifts + shapes to define iconic formal character. • Celebrate views around all site orientations. • Consider an opportunity for a penthouse-level club or event function. May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION PROJECT DESCRIPTION An 11-story, full-service lifestyle hotel, located on a scenic bayfront lot in Oyster Point of South San Francisco. The Hotel consists of: • 220-250 rooms; • Event + Meeting Space, including ballroom - 8,000 to 10,000 SF • Three-meal Restaurant; • Bar + Lounge; • Wellness Spa; • Fitness Center; • Outdoor Pool + Event Grounds; • and possible Top-Floor Function Space. Open Space Marina Parking Pedestrian Walk Ramp up/dn Pkg Lobby Fitness PoolService Access F&B Kitchen/HK B.O.H Ball/Mtg Service North Penesula North San Francisco Bay Ferry Terminal Hotel Arrival Court 2- 2.5 Level Parking Structure 200 - 250 Cars (.75 - 1.0/Room) Marina Bay Trail South San Francisco Bay Open Space Outdoor Courtyard Pool & Event Grounds South Distribution Facility Mixed Use/ Parking PROJECT SUMMARY Site Area: 4.7 acres Allowable: F.A.R: 1.6 max Floor Area: 320,000 SF Allowable Height Limit: 200 FT Proposed: Hotel: 220,000 SF Parking: 80,000 SF Total: 300,000 SF Building Height: 130 FT Site Plan + Level One Floor Plan May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION L-1 Patio Dining Roof Planted Edges/ Roof Level 2 Parking Open Courtyard Below Outdoor Terrace Meeting/Event L -2 Bar/ Lounge Views Mtg/ Office Open Lobby SPA & Terrace Level Two Floor Plan May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION ROOM SUMMARY 27-30 Rooms Per Floor Total: 200 - 250 Rooms ( 7 - 8 Floors) L e v e l 3 - 1 1 G u e s t R o o m s V i e w s Vi e w s V i e w s V i e w s Level 3 through 11 Floor Plan May 22, 2017 S O U T H S A N F R A N C I S C O | C A L I F O R N I A OY S T E R P O I N T D E S T I N A T I O N H O T E L R F Q P R E S E N T A T I O N Conceptual Site Section Marina Marina Pkg/ Park Marina Blvd Patio Dining Hotel Lobby Hotel Restaurant Pool/ EventBay Side Open Space/ Trails San Francisco Bay May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION Conceptual Sketches May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION Lobby Level to BarArrival Porte Cochere Overlook / Event Framed Views May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION Defined Architectural Identity May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION Garden Fitness Pre-Function SpaceOutdoor EventMorning Brunch Views Bay View Lounge May 22, 2017 SOUTH SAN FRANCISCO | CALIFORNIA OYSTER POINT DESTINATION HOTEL RFQ PRESENTATION WORKING WITH ENSEMBLE • Hospitality experts with relevant experience • Adept listeners • Masters at crafting unique and appropriate solutions • Dream big and execute • Selective on deal commitments, allowing us to provide a focused and effective approach to our work JMA VENTURES Oyster Point RFQ 5.23.17 2 EXECUTIVE SUMMARY JMA ventures, LLC (“JMA”), is pleased to present to the South San Francisco Hotel Site at Oyster Point Review Panel (the “Review Panel”), its additional ideas and qualifications in regards to the development of a waterfront hotel project at Oyster Point (the “Project”) Headquartered in San Francisco, JMA is a full-service real estate development and investment firm with 30+ years of experience in the Bay Area, as well as other major West Coast locations JMA has a strong track record of similar hospitality developments that position the firm well to deliver to the City of South San Francisco an exciting, unique, destination oriented dual-branded hotel that will be the nexus for the evolving Oyster Point Key questions that we will be addressing in today’s meeting include: 1)Please describe your firm’s relevant experience in hotel development.Please include any experience related to ground up construction and/or successfully completed hotel projects. 2)Please describe the identified Project Team, explain everyone’s specific roles, and how they would provide strong project management experience on this type of development. 3)Please describe your firm’s experience in owning and/or operating hotels. 4)Please provide a description of the conceptual programming of the proposed hotel concept.This should include, at a minimum, types of hotel and identified brands, if any, targeted market, food & beverage concepts, proposed amenities, approach to common areas and open space, parking, and any proposed retail component. 5)Please provide a description of the conceptual programming of meeting and event space. This should include estimated square footage, break down of spaces including outdoor space, and potential users. 3 1) RELEVANT EXPERIENCE -DEVELOPMENT ProjectSizeOverview FairmontHeritage Place 53 residences at ~1,200 SF $50M total cost Complex adaptive re-use from historic office, located within a national landmark, to residential / hotel Significant work with the City on entitlements, zoning, structural and neighborhood concerns Transformed Ghirardelli Square into first-class private residence club with complemented work to upgrade and reprogram 101k SF of retail KimptonSawyer Sacramento 250 rooms 50 residences 300,000 SF retail $300M Transforming a major mall located on 12 acres in downtown Sacramento into a world-class entertainment destination Worked with the City, Mayor, Sacramento Kings and the NBA toentitle, re-zone and capitalize the project Complex project with multiple verticals and product types A true" place-making" development strategy given Sacramento's urban decay and vacant downtown HearstHotel 150 rooms $125M Adaptive reuse of a 105 year old, National Historic Registered, building in the heart of San Francisco Complex process for ground lease, entitlements, zoning, construction and hotel branding Creating a “New York City” esquehotel experience and the first of its kind in San Francisco Aloft Reno 160 rooms $25M Create a new program to the entrance of the Reno-Tahoe Airport with hotel, F&B and office Complex process for ground lease with the FAA, unique building considerations and hotel branding 4 THE FAIRMONT, GHIRARDELLI SQUARE 5 KIMPTONSAWYER –SACRAMENTO, CA 6 THE HEARST HOTEL, SAN FRANCISCO, CA 7 ALOFT HOTEL-RENO,NV 8 WATER BAR & EPIC STEAK-SAN FRANCISCO, CA 9 2) MAIN PROJECT TEAM NameExperienceProject Responsibility Todd Chapman, President Presidentsince 2004 Oversees JMA including sourcing new business, developing capital relationships, executing business plans and leading the strategic focus of the firm Former real estate attorney at Orrick, Herrington and Allen Matkins Keyliaison with City Oversees all key elements of the deal including structure, capitalization, and programming Kevin Morgan, Vice President Vice Presidentsince 2012 Sources and executes new business including equity and debt partners as well as asset managing hospitality and leisure investments Former investment banker in New York City Keyliaison with City and hotel brand Oversee asset management Create strategy Jamie Robertson, Directorof Development •A Director at JMA since 2016, Jamie has helped in the development of over$2B ofreal estate in his career Prior experience in acquisitions, finance, engineering, project management, & estimating •Underwriting & analysis •Programing & strategy •Deal structure •Value engineering Chris Heinrich, Director of Development Leader in urban and resort real estate development, Chris has 20+ years of experience that includes involvement in over 4,100 units and a combined $2.1 billion in project value Served as Vice President of Development for Winding Road Development, Director of Development for Intrawest Development •Programming •Development management •Bidding •Design management David Tirman, Director of Architecture & Planning Served as Vice President with East West Partners-Tahoe charged with management of entitlements, planning and design for the Village- at-Northstarand the NorthstarHighlands Previously served in posts with East West Partners-Tahoe, Walt Disney Company and Prologis Global Trust where he led the entitlement, planning and design process •Design management •Entitlement management •Development management Amy Owen, Director of Marketing Held national and regional marketing leadership roles supporting sales operations and contact center management with premier brands including Marriott International and KSL Resorts •Branding •Marketing •Product positioning BelindaSilva, Controller •Belinda previously worked for AGI Capital Group in San Francisco, CA and GFI Partners in Boston, MA as part of their accounting groups •Accounting 10 3) RELEVANT EXPERIENCE –OWNING AND / OR OPERATING HOTELS ProjectSizeOverview FairmontHeritage Place 53 residences at ~1,200 SF $50M total cost Complex management of a residential property with multiple stakeholders (Fairmont, Exclusive Resorts, Fractional Inventory, Whole Units, Developer, Retail Owner) Combination of unique balance of hotel yield management and residential sales Unique product type requiring different marketing approach Hyatt Regency La Jolla 417 rooms $120M •Marquee asset in the La Jolla market •Significant “clean-up” post acquisition (common area charges, management, yield management, capital, parking, separate 32,000 SF empty gym) •Implemented a new PR campaign to re brand the asset from business oriented to a mix of business and leisure •Full management reorganization focused on maximizing efficiencies and productivity •Reprogrammed themain restaurant to help successfully re- brand the asset as a leisure destination West Shore Café & Inn 8 rooms $25M Unique Tahoe resort previously owned by long-standing local owners Self manage all hotel and restaurant operations Implemented Standard Operating Procedures Cross-sell with other JMA assets 11 THE FAIRMONT, GHIRARDELLI SQUARE 12 THE HYATT –LA JOLLA, CA 13 WEST SHORE INN & CAFÉ -LAKE TAHOE, CA 14 HIGH & DRY MARINA –LAKE TAHOE, CA 15 4 & 5) CONCEPTUAL PROGRAMING HOTEL & MEETING SPACE ConceptLogic Dual branded hotel concept Upper upscale executive and leisure travel Nexus of the evolving Oyster Point Maximize captivating views of the bay Create a fully activated waterfront Optimal product mix will be validated as part of an in depth market study Enables a unique product offering for multiple customer segments of both leisure and business / group Leverage a wider customer database to drive occupancy Natural amenity spacesto compliment hotel product offering through environmental conscience approach Create F&B offering that caters to location and evolving guest and pedestrian traffic Create an inviting and open customer experience to leverage surrounding amenities 16 DEVELOPMENT LEVERS Oyster Point Hotel Market & Oyster Point Specific Plan Brand Parking + Infrastructure Needs Costs Capital Markets Lease Terms Alternative Hotel Related Revenue Operating Expense Exogenous Variables: •Costs •Infrastructure •Hotel fundamentals •Capital Markets Endogenous Variables: •Brand •Activation strategies •Alternate revenue •Operating expenses •Lease terms 17 4 & 5) CONCEPTUAL PROGRAMING HOTEL & MEETING SPACE Idea Map Activating location Chariot partnership for easy transportation to city and airport Recreational programs to attract locals SF Ferry building connection Book “destination” events that attract large group business Program Bike rentals for exploring Oyster Point Sailing school in partnership with the marina Paddle board rentals Health & wellness focus with water and running trailsCreating the nexus for Oyster Point Off site meeting rooms for Oyster Point tenants Sponsored happy hours for nearby tenants Open air lobby areas activating a new boardwalk area Working pods in lobby Product position Upscale boutique Comfortable extended stay A new type of business getaway 18 4 & 5) CONCEPTUAL PROGRAMING HOTEL & MEETING SPACE ComponentConceptKeyMetricExample Hotel –Full Service •Higher end,4 star service hotel providing executives, including nearby life science personnel, and transient guests with an upper upscale experience •100keys•Independent (Shade, Noble Hotel) •Curio •Unbound •Kimpton •Indigo •NYLO •EVEN •Cambria •Ace Hotel Hotel –Extended Stay •Selectservice hotel offering guests comfortable amenities for longer term stay business guests •250keys•HyattPlace •element •Home 2 Suites •Town Place •Cambria •AKA •Staybridge Suites Meeting Space •Extension of nearby corporate offices •Larger ballroom with segmented optional separating walls 18,000SF ~50SF / room Bay views Food & Beverage •2 full service restaurants •2 grab & go style / bar areas •1 “Chowder” window 4main restaurant areas Lobby •Communalspace looking out to bay •Working pods •Inviting to public with open feel •Not exclusive to hotel •Visitors •Locals •Destination feel Outdoor Area •Patio overlooking bay •Fire pits •Bocce courts •Bikes available to rent •Music and entertainment •Nexus of Oyster Point •Visitors / year •Local vs tourist •Retention Rates •Target demographics 19 POTENTIAL ACTIVATION STRATEGIES –CONCEPT IMAGES 20 HOTEL POSITIONING -CONCEPT IMAGES Interview with City of South San Francisco –5/22/17 •Introductions •Key Individuals •Corry Oakes –CEO •Todd Turner –VP of Real Estate •Steve Daley –VP of Construction and Development •Steve Pieters –Regional Director of Real Estate •Mike Gallen –Director of Development •Clay Markham –CRTKL –Sr. VP and Head of Global Hospitality •Background of OTO Development •Experience in SSF –AC Hotel •Local and National Experience -Review Brochure •Best-in-Market Upscale Hotel Segment •History and Current Projects •Predictability of Execution •Operations and Development Awards •Advantage of OTO –Involved at all stages •Concept, Design, Construction, Ownership and Management •How we Finance our hotels –Structure of Ownership •Availability of Financing and Ability to Obtain •Hotel Feasibility •CRTKL Background and Project Overview •Hyatt House and Hyatt Place –Dual Brand •Redefining Best-in-Class Upscale Hotels •Sophisticated, thoughtful, relevant, local, takes advantage of a site’s assets •Will operate as one experience •Upscale materials and finishes •High Ceilings and Glass –15+ foot ceilings •Full Food and Beverage offering •Meeting Space –Can be sub-divided with break-out rooms •Diversity of room type –Meets different needs •King, Double Queen, Suite, Extended Stay •A different kind of place. Created for visitors with 24/7 lifestyles seeking a beautifully designed hotel that will allow them to balance work and play, Hyatt Place is a new generation of hotels that offers casual hospitality in a smartly designed, high-tech and modern environment. The brand is an industry leader in defining the upscale category, and offers food and beverage options freshly prepared 24-hours a day, seven days a week. The Hyatt Place brand directly appeals to Bay Area business professionals.Hyatt Place was rated first in 2015 by JD Power and Associates in guest satisfaction among Upscale Hotel Chains. •With an upscale and contemporary design, inside and out, all rooms are spacious suites that provide one of the best designed and most comfortable hotel rooms in the industry. Other amenities include: •High-speed internet with increased capacity to handle greater demand •Fully equipped business center •High-quality fitness facility •Swimming pool •Complimentary hot breakfast •Bar and Lounge •Full-Service Restaurant •5,000 square feet of meeting space with state -of-the-art AV technology •Luxury bedding •Hyatt Gold Passport Travel Points Hyatt Place Concept Example – Downtown Chicago Loop – Developed and Operated by OTO (Hyatt North American Project of the Year – 2015) Hyatt Place Lobby Hyatt Place Bedroom - King Hyatt Place Meeting Room Hyatt Place Bar •Hyatt House ®is a distinctive hotel concept that will evolve the extended-stay model into a social and modern environment where guests feel like residents of an upscale community. Inspired by extensive research of guest experiences, Hyatt House is designed to surprise and delight with form and function that will remind guests of home. Featuring contemporary, residentially inspired Studios, One and Two-Bedroom Kitchen Suites and Den Guestrooms, Hyatt House boasts unexpected amenities and services, including indoor and outdoor social spaces, a Lounge that resembles the living space of today’s modern home with an adjacent H BAR and Social Sectional, as well as other multi-purpose areas to do everything, or simply do nothing. •Hyatt House will incorporate design features that complement the contemporary qualities of the latest design projects in SSF. All rooms are spacious suites with a microwave, stove, dishwasher and refrigerator in every room to accommodate longer stays and provide one of the best designed and most comfortable extended stay hotel rooms in the industry. Other amenities include: •High-speed internet with increased capacity to handle greater demand •Fully equipped business center •High-quality fitness facility •Swimming pool •Complimentary hot breakfast •Bar and Lounge •Full Serve Restaurant •5,000 square feet of meeting space with the latest AV technology •Luxury bedding •Marriott Rewards Hyatt Gold Passport Travel Points Hyatt House Lobby Hyatt House Bedroom Hyatt House Kitchen Napa Meeting Space Napa Meeting Space •Conceptual Programming of Hotel Space •340 Keys –Split evenly between both brands •Lounge, bar, restaurant, meeting space, pool oriented towards the water •Take Advantage of Views throughout the space (Similar to what we are doing at the AC) •Parking -.7:1 ratio, plus contract for valet as needed •No additional retail outside of the hotel concept •Hotel will include Restaurant, Bar and a suite shop for convenience items. •Event Space and Programming •5,000 square feet •Local Research -Genentech –2,000 meetings per year •Divisible into 3 spaces, plus breakout rooms •Can accommodate 250-300 people in a banquet/Wedding Reception •400 people for a cocktail party or theater style seating •Full Menu and Bar options available •Outdoor space will be connected and integrated into the event space •Food and Beverage •Upscale restaurant and bar for our guests and the community featuring fresh local ingredients, micro brews, craft cocktails and Napa and Sonoma Valley wines. •Design Examples •CRTKL •AC South San Francisco •Element by Westin –Santana Row West •Hyatt Centric Mountain View AC South San Francisco -Renderings AC South San Francisco –Lobby AC South San Francisco AC South San Francisco –Lounge AC South San Francisco -Bar AC South San Francisco –Room AC South San Francisco –Meeting Space Element by Westin -San Jose Santana West Hyatt Centric –Mountain View Bar and Sitting Area Hyatt Centric –Mountain View Bar Hyatt Centric –Pool Deck Hyatt Centric –Ballroom •Why OTO? •Predictability of Execution •Development and Operational Excellence •Two-time recipient of Marriott’s Partnership Circle Award •Developer of the Year for Marriott and Hilton –2016 •We build and operate our hotels •Committed to growing in the Bay Area •Three hotels open, four under construction, two more starting in the next year •Familiarity with the Bay Area and high barrier, sophisticated Markets •Understand Costs, Soil issues, CEQA, etc. •Best-in-Class Upscale Hotel •SSF and Mountain View •If Selected for RFP Process •Will Provide a complete design package with inspirational renderings Shashi Group Hotel Development at Oyster Point 5.23.17 Interview •Founded in 2007 by Dipesh & Manish Gupta •Exclusively focused on Hotel Development & Ownership •Focus on Long Term Fundamentals •Guiding Principles – Focus on Customer Experience •Location – Proximity to Corporate Hubs & Amenities, High Barriers •Product – Focus on Design, World-class Amenities, Indoor Outdoor •Technology – Video Streaming, Keyless Check-in, Botlr, Green, AR, VC •Service – Corporate Full Service NOT Traditional Full Service, Cluster •Brand – Brand Image, Design & Programming Flexibility, Res System •Shashi Team Capabilities •Planning: Underwriting, Design, Entitlements Management •Construction: Bidding, Contractor Selection, Oversight •Upon Opening: Active Asset Management with a Third Party Manager Shashi Group LLC Ground Up Construction – Aloft Cupertino •Zero lot line podium, sub-grade garage, entitled in six (6) months •123 rooms, opened January 2013 •Earned Shashi the Starwood President’s Award in 2014 for its successful debut Ground Up Construction – Shashi Hotel Shoreline •Project is fully entitled and slated to break ground July 2017 •200 room LEED Gold hotel with meeting space, pool, fitness center, and three F&B outlets Adaptive Reuse – Aloft Sunnyvale and Nest Palo Alto •85 room hotel - complete reuse of Pacific Inn Sunnyvale •One of highest RevPAR Aloft hotels in the entire Aloft system •Opened March 2015 •54 room hotel – complete reuse of existing lodging, opened Dec 15 •Indoor-Outdoor experience sets the standard for Shashi Group hotels Major Renovation– Aloft San Jose Cupertino •81 room hotel – acquired August 2014 and rebranded as Aloft •Diverse mix of corporate travelers, local visitors and group business Renovation – Hilton Garden Inn Mountain View •Created Indoor-Outdoor Patio with Signature Shashi Wine Experience Addition – Hilton Garden Inn Mountain View •40 room planned addition to the 160 room hotel acquired Jan 2016 •This is a top location for corporate travelers to Google Project Team/Project Management Experience •Development Team: •Dipesh and Manish Gupta, Co-Founders – Design and branding vision •Jim Hansen, CDO – All aspects of project execution •Brian Froelich, VP Development – Entitlements and city process •Jean DiMaria, Dir. of Development and Analytics – Agency liaison •Fred Weaver, Dir. of Design and Construction – Cost and contractor management •Jared Butterworth, Sr. Project Manager – Contractor management •Kevin Kanehiro, Controller – Project accounting and disbursements •Vanessa Bruckner, Staff Accountant – Project accounting •Design Team: •Architects: Architectural Dimensions (Gensler, ELS, AXIS, Archsine) •Landscape Architecture: April Phillips Design Works, BFS •Interior Design: HBA, Arcsine Interiors •Civil Engineers: Sandis, O’Dell, Giuliani and Kull Ownership/Operating Experience •Shashi owns 5 hotels in the Bay Area with another 2 in development •Third party manager since company inception •Strong internal, hands-on Asset Management capability and involvement-Revenue Management, Operations •Direct experience in South San Francisco and Burlingame hotel development, construction and hotel market operations •Biotech and other: Roche (Genentech), SAP, Intel, Thermo Fisher, Amgen, SuccessFactors Shashi Group Hotel Development at Oyster Point South San Francisco 5.23.17 Interview Vision – Conceptual Hotel Site Layout Key Elements of Design Vision for Hotel •Orientation with guest room views to north and south to maximize water views •Destination development with all needed amenities •Corporate campus style with strong curb appeal from Marina Boulevard and from San Francisco Bay Trail •Design attention to the open space and its surroundings; integration surrounding uses; pedestrian links, bikes, trails, circulation •Feature integration with Bay Trail, park, ferry, office campus •Protected and screened outdoor recreation and event space with pool & spa •Landscaping with native species and bay friendly plant materials; garden walks •Technology, Green, Sensitivity Conceptual Design Conceptual Design Hotel Conceptual Programming •Food and Beverage Concepts •Shared hotel restaurant serving breakfast and dinner •Lobby bar that extends into hotel courtyard and pool area •Lively restaurant facing Marina Boulevard and accessible from Bay Trail and surrounding uses that serves area employees, as well as guests, seeking lunch and dinner •Several spaces with water views •In house banquet operations for catering meeting space •Coffee bar accessible to the public •Grab and Go food pantry with fresh sandwiches, salads, drinks and snacks -picnics •Room service operations •Amenities •Pool & Spa •Fitness Room Facilities •Loaner bike program, trail maps, area running maps, wellness amenities, gardens, patios •Public Space •Lobbies, meeting/conference spaces •Open Space design •Parking on grade •Transportation linkages to shuttles, ferry, shared ride services •Retail Component Conceptual Design Conceptual Design Conceptual Design-Statistics •Parking: 251 spaces, 0.72/room •Rooms: 348 •Height: 7 floors, less than 77’ •Total Building: 239,165 SF •Site: 200,700 SF •FAR: 1.19 •Mtg Space: 10,000 SF •F&B-Internal: 4,500 SF •F&B-External: 8,000 SF Branding •Marriott has committed to supporting the Shashi Group development as a dual branded Westin and Element •348 rooms split between Element Extended Stay and Westin Full Service Hotel •Dual branding accommodates guests who stay 1-6 nights and those who stay 7+ nights •Destination travelers for conferences, retreats, family reunions, as well as, corporate individual and group travelers Vision – Branding Element – Extended Stay by Marriott Vision – Branding Westin – Transient Hotel Meeting and Event Space Programming •Total Space- 10,000 SF •Maximum flexibility and options •Small impromptu meetings to large, planned conferences •Space Types: ballroom, breakout, patio, Shashi Meeting Pods, iLounges, lounge areas •Spaces divisible •Well planned, and fitted Audio-Visual •Technology Meeting and Event Space Programming •Users •Local corporate clients-Roche, Solazyme, Exelixis, Epibiome and others •Local and Regional association business •Regional conferences-alternative to downtown San Francisco or San Jose •Family Reunions and other celebrations •Industry conferences and meetings •Small corporate groups for retreats, planning & strategy sessions-local and regional •International corporate visiting biotech industry leaders •Civic events and parties •Advantages •Unique environment, resort feel •Easy access and parking •Ferry option •Recreational alternatives •On site amenities-no need to leave Questions from Review Panel 1 | Page DRAFT REQUEST FOR PROPOSALS For the Development of a High-Quality, Waterfront Hotel at Oyster Point Located in South San Francisco, California Issued July 3, 2017 Deadline to submit responses: Monday, October 2, 2017 by 5:00pm PST CONTACT: Ernesto Lucero, Economic Development Coordinator (650) 829-6620 or ernesto.lucero@ssf.net 2 | Page Table of Contents 1.0 Background and City Goals Page 3 2.0 Submittal Requirements Page 11 3.0 Phase II RFP – Evaluation and Selection Process Page 15 4.0 Term Sheet Negotiations Page 17 5.0 Other Important Information Page 18 6.0 Appendices Page 19 3 | Page The City of South San Francisco (“City”) is pleased to issue a Request for Proposals (“RFP”) to the approved Developer Short List. This 90-day solicitation will conclude on October 2, 2017. If additional information on the hotel site or surrounding development is completed or made available during this solicitation process, it will be provided to the Developer Short List directly. 1.0 Background and City Goals 1.1 Oyster Point Development The vision of the redevelopment of Oyster Point is to transform 81 acres of underutilized and under developed bay front land in South San Francisco into a sustainable mixed-use Oyster Point Development 4 | Page development that will include a state-of-the-art life science campus, a park and recreation destination, a vibrant marina environment, and a site that can accommodate commercial and hotel land uses. This vision will be achieved by implementing innovative sustainable design approaches, superior architecture, and urban design. The existing Development Agreement (DA) and Disposition and Development Agreement (DDA), between the City and Developer, Oyster Point Development, consists of the redevelopment of a multi-phased project that will include over 2.25 million square feet of office/research and development (R&D) space, the proposed hotel development, retail, and public open space. In 2011, the Oyster Point Specific Plan (OPSP) and related entitlements were approved to allow for the development of the 2.25 million square feet of office/R&D uses across an approximately 41.4 acre developer-owned site to be built out in four Phases (ID, IID, IIID, IVD). In addition, two phases of infrastructure and open-space improvements were approved throughout the site and across the adjacent 40-acre site owned by the City (Phases IC and IIC). The hotel site is located at the eastern edge of the Phase IC improvement area. Phase ID is proposed to include approximately 508,000 SF of Office/R&D buildings on a site of approximately 10 acres and Phase IC is proposed to include infrastructure and open space improvements across approximately 25 acres. The Phase I Precise Plan, which outlined the detailed design of Phase ID and Phase IC, was approved concurrently with the Oyster Point Specific Plan in 2011. 5 | Page Phases IID through IVD were entitled for approximately 1,750,000 SF of Office/R&D buildings. This would also include new infrastructure and open space improvements consisting of the continuation of the streets, sidewalks and utilities from Phase IC, a new sewer pump station, bicycle facilities, shuttle bus stops, and new open spaces including courtyards, plazas, parks, recreation facilities and Bay Trail improvements along the Oyster Cove Marina shoreline (subject to BCDC guidelines and approval). Phase IIC at the eastern portion of the Oyster Point Specific Plan was conceptually developed in 2011 to include minor landscape, parking and landfill cap improvements. Detailed designs of these improvements have not yet been finalized. The City is in the process of beginning a Master Planning effort that will include the public areas within Phase IIC and the open space parcel within Phase 1C. In January 2017, Oyster Point Development proposed modifications to Phases IIID and IVD of the Oyster Point Specific Plan (Chapter 20.230 of the South San Francisco Zoning Ordinance) and related entitlements to include residential and commercial uses. The new proposed residential component of the project could add up to 1,191 new housing units to the project. The illustration on page 6, shows the potential residential component to the project. • DDA and DA (2011) • Oyster Point Specific Plan (2011) • City Land Use Online Tool • Business Journal Article – Newly Proposed Residential at Oyster Point 6 | Page 1.2 Infrastructure and Construction Sequence Project Infrastructure The Project will require the construction of infrastructure to serve the proposed uses. This infrastructure includes the following: • A new street configuration with updated traffic signalization to provide a more rational circulation system throughout the project. • A new sanitary sewer system connecting into the existing sewer system. This system would include the replacement of one existing pump station and provisions for an additional pump station in the future. • A new stormwater drainage system to collect, filter/treat and discharge into the Bay. • New domestic water distribution system and fire truck access. • A new join utility trench system including electrical power and telecommunication services. 7 | Page • An updated landfill closure system with an improved impermeable clay layer, methane mitigation and monitoring systems. Phase I Infrastructure Construction The initial phase of the Project’s construction will include the installation of necessary infrastructure to support the office/R&D development, the public amenities at Oyster Point Marina and the future hotel and commercial uses. Vehicular access to the existing Oyster Point Boulevard will remain intact throughout this phase. Temporary access to the remainder of the Oyster Point Marina will also be maintained throughout this phase. The possible sequence of construction is as follows: • Demolition of the Oyster Point Inn, adjacent office building, entry kiosk and marine services building. • Construction of the reconfigured Oyster Point and Marina Boulevard intersection. • Installation of the proposed utilities in Oyster Point and Marina Boulevard. • Relocation of sewer pump station #1 adjacent to 377 Oyster Point Boulevard. • Site work, landfill cover modifications, and grading for Phase ID of the office/R&D development, open space and future hotel site. Phase I of the Office/R&D Development and Open Space Once the new road configuration and site work is complete, construction can begin on Phase ID of the office/R&D development. Work to be completed during this phase will include: • Construction of 508,000 to 600,000 square feet of office/R&D space and podium garage structure on the 10-acre site to the south of Oyster Point Boulevard. • Completion of the open space on the 3.8-acre site to the west of the hotel site. • Completion of the open space and associated parking area to the north of the new Marina Boulevard. Phases IID-IVD of Office/R&D These phases will include: • Phased demolition of the buildings at 375 to 389 Oyster Point Boulevard. • Grading and site preparation. • Completion of the northern extent of the new roadway and utilities. • Construction of additional office/R&D buildings and supporting parking structures. Each phase will include approximately 500,000 to 600,000 square feet of space. • Construction of the associated outdoor plazas, courtyards and open space. • Improvement in the Bay Trail on the northern and western portions of Oyster Point. 8 | Page Future Phases at Oyster Point Marina This work will include: • Construction of the proposed hotel. • Additional landfill cover modifications at the eastern portions of Oyster Point Marina as required. • Landscaping and Bay Trail improvements at all areas east of the open space. Infrastructure Financing – Community Facilities District The infrastructure improvements necessary for development of the Specific Plan District are proposed to be financed through a Community Facilities District (CFD). The formation process is currently underway. 1.3 Hotel Development Site APN 015-010-600 Owner City of South San Francisco. City will retain ownership of site, and enter into a ground lease agreement at FMV with the selected developer. Area The total developable site is approximately 4.7 acres. Zoning Oyster Point Specific Plan Municipal Code: Chapter 20.230 Parking Municipal Code: Chapter 20.330 Entitlements CEQA clearance has been provided for up to 350 rooms. Current Site Conditions Since this area sits on top of a closed landfill, work will be performed to grade the area and recap the existing landfill. This work is projected to be completed in Q3 2018. San Francisco Bay Conservation and Development Commission (BCDC) BCDC will not have jurisdiction over the specific hotel site. However, the City would be interested in knowing if the proposed hotel development would want to include bay trail access and connectivity to the existing and modified trails surrounding the site. 9 | Page 1.4 Existing Site Conditions In preparation for a proposed hotel, the City-owned hotel site will undergo significant site preparation in 2017/18. The existing structures and uses will be demolished, and the closed landfill that sits below the majority of the Oyster Point peninsula will be opened, relocated on site, and covered with a new clay cap for purposes of grading the area for new development. This work is planned to be completed in Q3/Q4 of 2018. When the selected developer receives site control in late 2018, the hotel site will be leveled and graded. Please view the following reports and information as it relates to the existing site conditions and work that will take place prior to site control: • Preliminary Geotechnical Report (2017) o Oyster Point City Parcel Refuse Relocation and Future Hotel Site. This report was prepared by Langan Engineering and Environmental Services for Oyster Point Development in February 2017. • Reliance Letter – Preliminary Geotechnical Report (2017) • Closure Plan (2017) o Oyster Point Landfill Closure Plan for Phase 1 of developments in Oyster Point. This report was prepared by Langan Engineering and Environmental Services (San Francisco) for Oyster Point Development in March 2017. • Grading Plan (2017) o This plan is prepared by Wilsey Ham (San Mateo) for the grading of the Phase 1D site, hotel site, open space parcel and adjacent sites. • Tentative Map (2017) o Oyster Point Development applied for a tentative parcel map that was reviewed by the Planning Commission at its June 15, 2017 meeting. Attached is the staff report for the Planning Commission meeting from June 15, 2017. 1.5 Opportunity The hotel site boasts an excellent opportunity to develop a high-quality, waterfront hotel in keeping with South San Francisco’s pristine new vision of Oyster Point. With partial entitlement already programmed for a hotel(s) of up to 350 rooms through the Oyster Point Specific Plan, the 4.7-acre site sits in a prime location with unobstructed waterfront views of San Francisco, Oakland, San Francisco International Airport, and the San Bruno Mountains. The hotel site is situated only steps from surrounding new developments, a world-premiere bio-tech cluster, and easy access to San Francisco and the East Bay via ferry service. 10 | Page The proposed hotel(s) is anticipated to represent an upper upscale or upscale hotel, offering the appropriate compliment of facilities and amenities to cater to the larger concentration of transient commercial and leisure as well as corporate group demand in the local market area. 1.6 Design The City is interested in iconic high-quality architecture for this prominently located hotel development. As part of the Oyster Point Development waterfront, significant open space landscaping is planned for the area, and design of public spaces will be important. The overall design will be a key consideration of the RFP evaluation. The hotel design should align with the vision and design guidelines in the Oyster Point Specific Plan. 1.7 Phase II RFP Schedule The proposed schedule of Phase II of the RFP solicitation process is as follows, and is subject to modification: Milestone Anticipated Date PHASE 2 City invites Short List of Developer(s) to respond to an RFP (90 days) July 3, 2017 Pre-submittal informational meeting July 26, 2017 Last day to submit questions September 25, 2017 RFP proposals due October 2, 2017 Housing Subcommittee to interview developer teams that submitted a proposal, and make a recommendation of a selected developer, with an alternate. (Open Session for developer interviews & Closed Session for Price & Terms.) Special Mtg TBD in October 2017 11 | Page City Council meeting to consider the Housing Subcommittee recommendations and finalize developer selection November 2017 City Council meeting to consider a long-term land lease agreement with the selected developer Q1 2018 2.0 Submittal Requirements Responses to this RFP must be packaged as a submittal with: • Twelve (12) hard copies presented in collated binders, and • One (1) unbound, (8.5” x 11”) • One digital file, either sent electronically or on a thumb drive Responses must include, at a minimum: 2.1 Table of Contents Outline in sequential order the major sections as listed here, including enclosures that should also be identified. All pages must be consecutively numbered and correspond to the table of contents. 2.2 Executive Summary Summarize your proposal in no more than three(3) pages, outlining why your team is best qualified to meet the objectives of the City as set forth in the RFQ/RFP. 2.3 Development Team 2.3.1 Developer A. Company Information 12 | Page Provide background information on the company such as area of specialty, years in business, and number of employees. Outline the organization of your team, any additional companies involved, key personnel in each company, summarize respective roles and responsibilities, and include any other information that will offer the City a good understanding of the Proposer’s capabilities. Also, provide the contact information for the primary individual(s) who will be leading the development work and the person(s) who is authorized to bind the Proposer with respect to the RFQ/RFP. B. Development Team Members List key individuals of the development team, their roles in the proposed project, including resumes. C. Relevant Experience Summarize developments that Proposer has completed, and/or is currently entitling, of similar size and scope to those described in the RFQ/RFP. 1. Project name, location, year completed, # of hotel rooms, development cost 2. Key personnel who worked on the development and in what capacity 3. Summary of financing 4. Any public/private partnership 2.3.2 Design Consultants The Development Team must include a Lead Architect, Landscape Architect and Civil Engineer. A. Company Information Provide background information on each of the design companies such as area of specialty, years in business, number of employees, and any other information that will communicate capabilities. B. Relevant Experience Summarize developments that Design Consultant has performed services similar in scope to those described in the RFQ/RFP. 1. Project name, location, year completed, project cost 2. Design personnel who worked on the development 3. Description of services provided 4. Images 13 | Page 2.3.3 Hotel Brands Hotel brands are welcomed to be included as part of the Development Team if they are submitting as a Co-Developer or Investor. 2.4 Approach to Proposed Development Plan Prepare a summary of how the Proposer will approach the development plan implementation; include how Proposer will work with the City and the OPD community, approach to site planning, waterfront and open space design. 2.5 Development Program Include all uses with proposed specific use types and square footages for each type of use, including open space. Also provide number of parking spaces. • Detailed project description listing major milestones in a timeline format, assuming site control in Q3 2018 • Market study and analysis of the proposed hotel at Oyster Point • Operational relationship of the hotel and approach 2.6 Schematic Plans / Drawings Include schematic diagrams and 3D renderings that communicate the vision for the site, showing gross building area and parking by use and by phase, conceptual plan and elevations. 2.7 Project Schedule/Phasing Plan Describe the general proposed development schedule and any phasing plan. 2.8 Financial Capability and Financing Plan (Confidential) Financial Capability Provide a description of the general financial capability of the Proposer. Financing Plan 14 | Page Summarize the Proposer’s broad approach to financing the proposed development. Include the Proposer’s role in the capitalization of the project, and relationships with capital resources. Include Proposer’s commitment to all or a portion of the financing, or commitment of financing sources for this project. 2.9 City Benefits Describe what economic and community benefits the City will receive as a result of the proposed development project. Proposer shall estimate all projected economic impacts of their proposal, including one-time fees such as building permit fees and impact fees, and ongoing payments such as estimated property taxes, hotel taxes, food & beverage taxes, and land lease payments. Describe any other community benefits to the City. 2.10 Financial Analysis (Confidential) Include a detailed analysis of project development costs, and projected revenue and operating expenses over a five-year period that support the economic impacts described in the City Benefits section above. Project cost to include direct construction costs and sources, other costs with sources and assumptions, and all costs in current dollars (date of response) (Financial analysis should be packaged as a separate submittal and will remain confidential. This information will be discussed in closed session at any committees and governing bodies) 2.11 References Provide references that the City or its authorized representatives can contact. Please include public entities if possible. 2.12 Other Information Provide any other relevant information to demonstrate capabilities and experience. 15 | Page 3.0 Phase II RFP – Evaluation and Selection Process 3.1 Phase I RFQ Selection Process for Shortlisting Developers for Phase II RFP A Request for Qualifications (“RFQ”) was issued to the public on February 24, 2017, seeking a statement of qualifications and a preliminary project concept from qualified development teams to build a high-quality, hotel or hotels, located at Oyster Point. The deadline for the RFQ was March 31, 2017. Request for Qualifications (2017) Eight submittals were received and were reviewed and scored by a Review Panel. Firms that submitted included: • AJ Capital Partners (Chicago, IL) • OTO Development (Spartanburg, SC) • M-Rad Architecture & Oliver Companies (Los Angeles, CA) • Shashi Group, LLC (Cupertino, CA) • Glacier House Hotels, LLC (Scottsdale, AZ) • Ensemble Real Estate Investments (Long Beach, CA) • Bayview Development Group (San Jose, CA) • JMA Ventures (San Francisco, CA) After the review of paper submittals received, and interview presentations, the Review Panel made the recommendation of a Developer Short List to include: 1. Ensemble Real Estate Investments (Long Beach, CA) 2. JMA Ventures (San Francisco, CA) 3. OTO Development (Spartanburg, SC) 4. Shashi Group (Cupertino, CA) The RFQ that was issued gave the City the opportunity to hear from the hotel development community about relevant experience on similar projects, determine the most qualified developers for a hotel at Oyster Point, as well as understand a very preliminary concept of the proposed hotel development and initial understanding of how the hotel would be programmed. 16 | Page With the recommended Short List, the City is now issuing an RFP to the selected developers to provide more specific information about the program and financial structure of the hotel, and a site and schematic plan. The developers will be given sufficient time to perform due diligence on the site. The RFP also includes a current disclosure package to the Short List of current reports and plans related to the entire development of Oyster Point. 3.2 Pre-submittal Informational Meeting An informational meeting will take place on Wednesday, July 26, 2017 for the purposes of providing an overview of developments occurring at Oyster Point and to answer any questions related to the RFP. Details will be provided about the meeting via email, separate from the RFP. Questions may also be emailed to Ernesto Lucero (Ernesto.Lucero@ssf.net) until Monday, September 25, 2017. Any questions received will be provided with responses and will be provided to the entire Short List of developers. 3.3 Housing Subcommittee Phase 2 of the selection process will proceed with the following milestones, with the goal of selecting a developer and entering into a lease agreement, no later than the 1st Quarter of 2018. This will include: • Housing Subcommittee – two City Council members and three Planning Commissioners o 1 meeting: In-person interviews of RFP submittals, to make the recommendation of one developer and one alternate 3.4 Evaluation Criteria Criteria that will be used by the Housing Subcommittee to evaluate the proposals of the developers that respond to this RFP will include: • Appropriateness and quality of project concept • Community and economic benefits to Oyster Point and the City • Financial capability to consummate the proposed deal • High-quality iconic design • Completeness, creativity, and clarity of proposal • Results of developer interviews at the Housing Subcommittee Note that the approval and selection of a development team as outlined in this RFP will be at the discretion of the City Council. 17 | Page 3.5 City Council Approval and Selection • City Council – comprised of the Mayor, Vice-Mayor and three City Council Members o 1 meeting: Consideration of the Housing Subcommittee’s recommendations, and selection of a developer, and o 1 meeting: Approval to execute a lease agreement with the selected developer 4.0 Term Sheet Negotiations Following developer selection by the City Council, the City and the selected developer will enter into negotiations of a Term Sheet that will form the basis of a Long-Term Land Lease and Development Agreement. The Term Sheet will address: 4.1 Schematic Plans/Drawings Diagrams and Renderings that communicate the vision of the site 4.2 Development Program Development Program that includes square footages for each component of the development 4.3 Project Schedule/Phasing Plan Development Schedule and any Phasing Plan 4.4 Development Cash Flow Analysis Development Cash Flow Analysis (revenues, expenses, capital etc.) for each component (hotel, food & beverage, meeting space etc.) with a summary of significant assumptions, demonstrating project financial feasibility 4.5 Terms for Leasing City Land Terms for Leasing City Land for private development 4.6 Development Capitalization Plan for Raising Capital and Financing for the proposed development 18 | Page 4.7 Summary of City Revenues Summary of projected City Revenues generated by the proposed development over time, including property taxes, hotel taxes, food & beverage taxes, and estimated one-time fees such as building permit and impact fees 4.8 Economic Impact and Support Documentation Analysis of the economic impact of the proposed development plan with documentation supporting the projected economic impacts 4.9 Oyster Point Community Engagement Plan to involve the City and the OPD community in the refinement of the development vision 5.0 Other Important Information 5.1 Prevailing Wage Development on the Site will be subject to prevailing wage requirements. 5.2 Disclaimers/Additional Requirements The City reserves the right to: • Extend the due date of the RFP, or cancel, in whole or in part of this solicitation. • Interview none, any or all developers that submit responses to the RFP. • Request additional information. • Reject, in whole or in part, any or all proposals, and to waive minor irregularities in the submittal. • Award in whole or in part, by item or group of items, when such action serves the best interests of the City. • Seek and obtain additional information beyond the due date if the proposals received are unsatisfactory. • All RFP submittals will become the property of the City. The City may use any and all ideas and materials included in any submittal, whether or not the respondent is selected as the developer. • No reimbursement will be made by the City for any cost incurred by developers in 19 | Page preparation or submittals of a response to this RFP. • The RFP is not a contract or a commitment of any kind by the City and does not commit the City to award exclusive negotiating and/or development rights. The issuance of this RFP does not constitute an agreement by the City that the City Council will actually enter into any contract. • Issue Addenda to clarify or modify elements of this RFP. • Require Proposers to accept the City’s standard insurance and indemnification requirements. • By responding to this RFP, the Proposer represents that it and its subsidiaries do not and will not discriminate against any employee or applicant for employment on the basis of race, religion, sex, color, national origin, sexual orientation, ancestry, marital status, physical condition, pregnancy or pregnancy-related conditions, political affiliations or opinion, age, or medical condition. • Respondent's Duty to Investigate: 1. It will be the sole responsibility of the selected respondent to investigate and determine conditions of the Site, including existing and planned utility connections, and the suitability of the conditions for any proposed improvements. 2. The information presented in this RFP and in any report or other information provided by the City is provided solely for the convenience of the interested parties. It is the responsibility of interested parties to assure themselves that the information contained in this RFP or other documents is accurate and complete. The City and its advisors provide no representations, assurances or warranties pertaining to the accuracy of the information. • Proposals and all other information and documents submitted in response to this RFP are subject to the California Public Records Act, California Government Code §§ 6250 through 6276.48) (CPRA), which generally mandates the disclosure of documents in the possession of the City upon the request of any person, unless the content of the document falls within a specific exemption category. • Non-Liability: By participating in the RFP process, each respondent agrees to hold the City and its and their officers, employees, agents, representatives, and consultants harmless from all claims, liabilities, and costs related to all aspects of this RFP. 6.0 Appendices 1. RFQ 2. Preliminary Geotechnical Report 3. Closure Plan 4. Grading Plan 5. Tentative Map Application – Planning Commission Staff Report (6/15/17) Oyster Point Hotel Developer Selection RFQ Submittals – Paper Submittal Scoring May 1, 2017 Firm Evaluator 1 Evaluator 2 Evaluator 3 Evaluator 4 Evaluator 5 Score out of 100 Rank 1 AJ Capital Partners 91 69 90 66 86 80.4 5 2 OTO Development 85 86 85 67 83 81.2 4 3 M-Rad 58 69 64 25 17 46.6 8 4 Shashi Group 90 79 81 81 76 81.4 3 5 Glacier House 59 78 59 39 46 56.2 7 6 Ensemble 86 85 87 72 87 83.4 2 7 Bayview 84 89 73 39 56 68.2 6 8 JMA Ventures 88 93 92 81 89 88.6 1 Oyster RFQ Submittals – Interview Scoring May 22 and 23, 2017 Firm Evaluator 1 Evaluator 2 Evaluator 3 Evaluator 4 Evaluator 5 Score out of 100 Rank 1 OTO Development 86 69 85 83 85 81.6 3 2 Ensemble 85 83 86 85 83 84.4 1 3 JMA Ventures 91 76 86 85 83 84.2 2 4 Shashi Group 88 64 80 82 82 79.2 4 Scoring Notes: 1. Paper submittals were scored on qualifications, proposed concept, and overall package. 2. Interviews were scored on a presentation based on experience in hotel development, the project team, experience owning/operating hotels, and conceptual programming of hotel and meeting spaces.