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HomeMy WebLinkAboutReso 34-2025 (25-276)Contact: Katie Donner, Management Analyst | [email protected] | (650) 829-4601 Launch Local! Program Guidelines This guide offers an overview of the Launch Local Program and application process. Overview Launch Local! is the City’s pilot program designed to lower the barriers to entry for businesses looking to open a brick-and-mortar space. Through the program, the City is the landlord of City-owned vacant retail spaces on El Camino Real and Grand Avenue, leasing these spaces to various pop-up tenants for a 12- month term. Lease terms are set at $1 per square foot. Long-term lease options may be negotiated with the City based on the initial 12-month term. Applications will be reviewed on a rolling basis. Background The economic challenges brought on by the pandemic, inflation, ADA litigations, and the rise of remote work have severely impacted businesses in South San Francisco. Like many communities in the past several years, small businesses in South San Francisco have experienced economic challenges, which cause an uptick in vacant storefronts in commercial corridors. Vacant storefronts are often associated with increased maintenance challenges, including graffiti and vandalism, and can contribute to perceptions of neglect in business districts, potentially impacting surrounding property values. Launch Local! aims to provide a strategic framework to address these challenges by: • Stabilizing the South San Francisco commercial real estate market by: o Reducing operating costs for businesses Contact: Katie Donner, Management Analyst | [email protected] | (650) 829-4601 o Creating pathways to permanent tenancy by allowing new business concepts to be tested • Maintaining Downtown and El Camino Real as thriving commercial destinations by: o Activating and filling vacant storefronts o Cultivating a vibrant and dynamic retail environment • Encouraging local entrepreneurship and expanding business opportunities by: o Lowering barriers to entry for aspiring business owners through subsidized commercial rents o Providing “test pilot” opportunities for new and growing businesses to scale successfully The tenant would assume some proportion of the NNN costs of operating the property, based on space used or other arrangements. The City welcomes all lease proposals for ground-floor retail space. However, the most successful tenants are expected to be those offering retail merchandise or experiential services that are not currently available in the existing corridors. Please note that these spaces are not equipped for food service. The City encourages proposals that enhance the streetscape and social environment of the surrounding area. Applicants should propose concepts that appeal broadly to diverse customer bases, complement rather than compete with nearby businesses, and provide a memorable experience to potential customers and window shoppers. Priority will be given to small businesses and entrepreneurs who have successfully completed at least one of the Renaissance programs at the Economic Advancement Center (EAC). Eligible applicants must be for-profit businesses seeking their first brick-and- mortar location in South San Francisco. The program is open to businesses without a storefront and is not limited to those with a business license in South San Francisco. Nonprofits are not eligible for this program, but for-profit businesses that meet the criteria will be considered. Additional eligibility requirements may include demonstrating a viable business plan and the capacity to operate in a retail environment. Eligibility Successful applicants meet the following minimum qualifications: 1. Experience in the operation and management of a retail, service, and/or a business plan demonstrating a clear plan for operation and management. 2. Demonstrated managerial and staffing resources to maintain a high quality, successful operation. 3. Demonstrated financial capacity to finance operating costs and initial lease. Contact: Katie Donner, Management Analyst | [email protected] | (650) 829-4601 Lease Terms City staff will draft a lease agreement with the selected tenant(s) to be submitted to the City Council for final approval. Timeline Leases will run for an initial term of twelve (12) months with monthly evaluation of sales by the City. Additional options are dependent on additional interest, space availability, etc. Space Selection City Staff will determine the placement for selected tenants in available spaces. City reserves the right to relocate pop-up tenants, as needed. Terms Leases will run for an initial term of twelve (12) months with monthly evaluation of sales by the City. Basic Terms: • City reserves right to select and relocate pop-up tenants, as needed. • City monitors tenant sales reports. • City streamline of permits for tenant b businesses and minor TI’s, if needed. Rent Tenants will be responsible for: • Security Deposit - $2.00 per square foot • Rent - $1.00 per square foot • Any additional triple net costs – variable Tenant Improvement Allowance Selected businesses can qualify for up to a $10,000 tenant improvement allowance, disbursed as rent credit. The final allowance amount is determined by Council approval, based on the specific upgrades needed to make the space move-in ready, as outlined in the tenant’s proposal. The Tenant Improvement Allowance, disbursed as a rent credit, does not apply to the required security deposit, which remains the tenant’s responsibility. Other Costs In addition to rent, tenants are responsible for the following: Contact: Katie Donner, Management Analyst | [email protected] | (650) 829-4601 • Insurance • Utilities and garbage pickup • Security Deposit • City of South San Francisco Business License Required Hours of Operation Minimum hours of operation must be at least: • A minimum of seven (7) hours per day, between 8:00 AM and 10:00 PM daily. • A minimum of five (5) days per week. • Open between the hours of 11:00 AM and 6:00 PM is encouraged. How to Apply To apply, interested parties must submit a completed online application at www.ssf.net/retail. To prepare for the application, you will need: • A signed cover letter with primary contact information; • Company profile and qualifications; • A detailed business concept, including product/service description, target audience, experience, and intended impact on local corridors; • Business status (e.g., online-only, new, or existing business seeking relocation); • A business plan; and • Financial projections Important Dates: RFI Issued Tuesday, April 1, 2025 Deadline for RFI Questions Tuesday, April 15, 2025 RFI Q&A Posted Thursday, April 17, 2025, or sooner Proposals Due Wednesday, April 30, 2025 Selection of Businesses Friday, May 30, 2025 REQUEST FOR INTEREST for Businesses Interested in Participating in Launch Local! the Vacant Retail Activation Pilot Program Issued: April 1, 2025 Submittal Deadline: April 30, 2025, by 5:00PM Electronic submissions only. Respondents must create a FREE account with ProcureNow by signing up at https://secure.procurenow.com/signup. Once you have completed account registration, browse back to this page, click on "Submit Response” and follow the instructions to submit the electronic response. Staff Contact: Katie Donner, Management Analyst I City of South San Francisco Phone: (650) 829-4601 Email: [email protected] RFI – Launch Local! April 1, 2025 Page| 1 Table of Contents INTRODUCTION ....................................................................................................................................................... 2 BACKGROUND .......................................................................................................................................................... 2 LAUNCH LOCAL! PROGRAM SPECIFICIATIONS ........................................................................................... 2 SUBMITTAL INSTRUCTIONS ................................................................................................................................ 4 Submittal Requirements ..................................................................................................................... 4 Submittal Location and Deadlines ..................................................................................................... 5 RFI Schedule ........................................................................................................................................ 5 SELECTION PROCESS ............................................................................................................................................ 5 Evaluation Criteria ............................................................................................................................... 5 LIMITATIONS & CONDITIONS ............................................................................................................................. 6 BUSINESS LICENSE ................................................................................................................................................. 6 RFQ – On-Call Economic Development & Housing Services November 2, 2021 Page| 2 INTRODUCTION The City of South San Francisco (City) is seeking submissions from entrepreneurs and small business owners interested in participating in the Launch Local! Retail Activation Pilot Program. This Request for Interest (RFI) provides the necessary details for applicants to prepare and submit their qualifications. The RFI process aims to identify potential commercial tenants with whom the City may, at its sole discretion, choose to enter into a lease agreement. Submission of interest does not obligate the City to pursue a contract with any respondent. Responding businesses or individuals must meet the following minimum qualifications: experience in operating and managing a retail or service business, or a business plan demonstrating a clear operational strategy; the managerial and staffing resources to maintain a high-quality business operation; and the financial capacity to cover operating costs and the initial lease. BACKGROUND The City of South San Francisco has a population of 63,484 and occupies the basin and portions of the sides of a broad valley formed by the San Bruno Mountains to the north and the Coast Range to the west. Most of the valley faces the San Francisco Bay, affording sweeping vistas from higher elevations and a strong sense of identification with the Bay. South San Francisco is conveniently accessed by Highway 101, Interstate 280, Caltrain, two BART stations (including a free shuttle), and numerous bus routes. The City’s up and coming historic downtown boasts international dining, Michelin reviewed restaurants, a wine school, and various retail establishments. Known as the “The Birthplace of Biotech”, South San Francisco is home to over 220 biotech firms and has a daytime workforce of over 50,000 people. Furthermore, the city is moving forward with planning streetscape improvements to widen downtown sidewalks to enhance the urban experience and promote the City’s walkability. LAUNCH LOCAL! PROGRAM SPECIFICIATIONS The economic challenges brought on by the pandemic, inflation, ADA litigations, and the rise of remote work have severely impacted businesses in South San Francisco. Like many communities in the past several years, small businesses in South San Francisco have experienced economic challenges, which cause an uptick in vacant storefronts in commercial corridors. Vacant storefronts are often associated with increased maintenance challenges, including graffiti and vandalism, and can contribute to perceptions of neglect in business districts, potentially impacting surrounding property values. Launch Local! aims to provide a strategic framework to address these challenges by: • Stabilizing the South San Francisco commercial real estate market by: o Reducing operating costs for businesses o Creating pathways to permanent tenancy by allowing new business concepts to be tested • Maintaining Downtown and El Camino Real as thriving commercial destinations by: o Activating and filling vacant storefronts o Cultivating a vibrant and dynamic retail environment • Encouraging local entrepreneurship and expanding business opportunities by: o Lowering barriers to entry for aspiring business owners through subsidized commercial rents o Providing “test pilot” opportunities for new and growing businesses to scale successfully The tenant would assume some proportion of the NNN costs of operating the property, based on space used or other arrangements. RFI – Launch Local! April 1, 2025 Page| 3 The City welcomes all lease proposals for ground-floor retail space. However, the most successful tenants are expected to be those offering retail merchandise or experiential services that are not currently available in the existing corridors. Please note that these spaces are not equipped for food service. The City encourages proposals that enhance the streetscape and social environment of the surrounding area. Applicants should propose concepts that appeal broadly to diverse customer bases, complement rather than compete with nearby businesses, and provide a memorable experience to potential customers and window shoppers. Priority will be given to small businesses and entrepreneurs who have successfully completed at least one of the Renaissance programs at the Economic Advancement Center (EAC). Eligible applicants must be for-profit businesses seeking their first brick-and-mortar location in South San Francisco. The program is open to businesses without a storefront and is not limited to those with a business license in South San Francisco. Nonprofits are not eligible for this program, but for-profit businesses that meet the criteria will be considered. Additional eligibility requirements may include demonstrating a viable business plan and the capacity to operate in a retail environment. Eligibility Successful applicants meet the following minimum qualifications: 1. Experience in the operation and management of a retail, service, and/or a business plan demonstrating a clear plan for operation and management. 2. Demonstrated managerial and staffing resources to maintain a high quality, successful operation. 3. Demonstrated financial capacity to finance operating costs and initial lease. Lease Terms City staff will draft a lease agreement with the selected tenant(s) to be submitted to the City Council for final approval. Timeline Leases will run for an initial term of twelve (12) months with monthly evaluation of sales by the City. Additional options are dependent on additional interest, space availability, etc. Space Selection City Staff will determine the placement for selected tenants in available spaces. City reserves the right to relocate pop-up tenants, as needed. Terms Leases will run for an initial term of twelve (12) months with monthly evaluation of sales by the City. Basic Terms: • City reserves right to select and relocate pop-up tenants, as needed. • City monitors tenant sales reports. • City streamline of permits for tenant b businesses and minor TI’s, if needed. Rent Tenants will be responsible for: • Security Deposit - $2.00 per square foot • Rent - $1.00 per square foot RFI – Launch Local! April 1, 2025 Page| 4 • Any additional triple net costs – variable Tenant Improvement Allowance Selected businesses can qualify for up to a $10,000 tenant improvement allowance, disbursed as rent credit. The final allowance amount is determined by Council approval, based on the specific upgrades needed to make the space move-in ready, as outlined in the tenant’s proposal. The tenant improvement allowance disbursed as a rent credit does not include the security deposit, which remains the responsibility of the tenant and must be paid independently. Other Costs In addition to rent, tenants are responsible for the following: • Insurance • Utilities and garbage pickup • Security Deposit • City of South San Francisco Business License Required Hours of Operation Minimum hours of operation must be at least: • A minimum of seven (7) hours per day, between 8:00 AM and 10:00 PM daily. • A minimum of five (5) days per week. • Open between the hours of 11:00 AM and 6:00 PM is encouraged. SUBMITTAL INSTRUCTIONS Submittal Requirements Submittals shall include a complete response to the requirements outlined in this section. Submittals should be a straightforward discussion of the respondent’s ability to provide the services outlined above. An officer authorized to make the submittal should sign the cover letter. To be deemed responsive, submittals must include the following elements. 1. Cover Letter: Provide a cover letter expressing your interest in and affirming your ability to operate a business and be a commercial tenant for the City. Include name, address, phone number, and email address of the primary contact, as well as their title and capacity within the organization. 2. Company Profile and Qualifications a. Experience 3. Business Concept a. Explain your product/service b. Target Audience c. Background of your experience and creativity d. How are you enhancing our business corridors? (El Camino Real and Grand Avenue) 4. Identify Your Current Business Status a. Online business seeking a brick-and-mortar location b. New business c. Existing business wanting to relocate to a new location 5. Business Plan 6. Marketing and Social Media Plan 7. Operations and Management RFI – Launch Local! April 1, 2025 Page| 5 8. Financial Projections (One (1) Year Cash Flow Summary) Submittal Location and Deadlines Interested firms should provide an electronic copy of its submittal via ProcureNow by April 30, 2025, no later than 5:00 PM (PST). Visit www.ssf.net/retail for the direct link to the RFI. Respondents shall create a free account with ProcureNow by signing up at https://secure.procurenow.com/signup. Once Respondents have completed account registration, click on "Submit Response", and follow the instructions to submit Proposal of this Request for Qualifications. All inquiries regarding the RFI shall be submitted via ProcureNow. RFI Schedule RFI Issued Tuesday, April 1, 2025 Deadline for RFI Questions Tuesday, April 15, 2025 RFI Q&A Posted Thursday, April 17, 2025, or sooner Proposals Due Wednesday, April 30, 2025 Selection of Businesses Friday, May 30, 2025 SELECTION PROCESS Evaluation Criteria Business selection will be based on demonstrated readiness, creativity, and the potential to contribute to a vibrant, diverse commercial environment in South San Francisco. The City aims to support entrepreneurs with viable business models and a strong vision for growth, while ensuring a positive impact on the community and surrounding businesses. Submittals will be evaluated based upon, but not limited to, the following criteria.  Clarity and strength of the business concept  Demonstrated operational and management readiness  Financial capacity and sustainability  Contribution to the vitality of Grand Avenue and El Camino Real  Readiness to occupy the space  Completeness of submittal Applicants may also be invited to participate in an interview or pitch presentation as part of the final evaluation process. It is the City’s intention to select high-potential businesses that will thrive in a storefront environment, strengthen the local economy, and contribute positively to South San Francisco’s retail corridors. RFI – Launch Local! April 1, 2025 Page| 6 LIMITATIONS & CONDITIONS The City reserves the right to: • Request additional information. • Extend the due date of the RFI. • Interview none, any or all developers that submit responses to the RFI. • Reject, in whole or in part, any or all qualifications submittals, and to waive minor irregularities in the submittal. • Seek and obtain additional qualifications beyond the due date if the qualifications received are unsatisfactory. • Cancel, in whole or in part, this Request for Interest solicitation. • The RFI 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. • No reimbursement will be made by the City for any cost incurred by developers in preparation of the response to this RFI. • The issuance of this RFI does not constitute an agreement by the City that the City Council will actually enter into any contract. • The information presented in this RFI 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 RFI 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. • All responses to this RFI shall 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. • Proposals and all other information and documents submitted in response to this RFI 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 RFI process, each respondent agrees to hold the Successor Agency and City and its and their officers, employees, agents, representatives, and consultants harmless from all claims, liabilities, and costs related to all aspects of this RFQ. BUSINESS LICENSE The selected firm will be required to obtain a City of South San Francisco Business License prior to any services or work being rendered.