Novato is pleased to present the Questions and Answers regarding the Hamilton Property.

Q:      Will the 9 million dollars the City of Novato spent to get the project ready be reimbursed through the sale of the project?

A:      Pursuant to the Reuse Plan, the City will be seeking to be reimbursed for the predevelopment expenses that it has incurred. More specific information as to the among of reimbursement that will be expected will be provided in the RFP.

Q:      Do you know what the current rent would be for low and moderate income levels?

A:      The rent ceilings on the units will be affected by the funding sources used to rehabilitate the units. Based on the current HUD income limits, utility information from the Marin Housing Authority, and the requirements of the low income housing tax credit program, we estimate current applicable rent ceilings (after utility allowances) as follows:

Q:      How does New Hamilton Partners fit into this project?

A:      New Hamilton Partners (NHP) is the master developer of the portion of Hamilton that was formerly owned by the Army and is immediately adjacent to the subject property. The NHP project is currently under construction and is a demonstration of the strength of the base's reuse opportunities.

Q:      How long will the entitlement process take after the property is taken down, assuming the plans are appropriately prepared?

A:      The entitlement process should be relatively fast. The developer should anticipate an 18 to 24 month process. The City will devote its most experienced senior staff to the Hamilton project.

Q:      Would you anticipate a Negative Declaration?

A:      A Program Environmental Impact Report (EIR) is currently being prepared by the City of Novato. The Program EIR is being prepared to address the CEQA compliance requirements associated with the implementation of the Reuse Plan pursuant to the Redevelopment Plan, the Purchase Agreement (PA), the Disposition and Development Agreement (DDA) and the Owner Participation Agreement (OPA). This EIR will be the base document by which the need for subsequent environmental review for approvals not specifically addressed in the Program EIR will be measured. Future developments proposed within the Reuse Plan project area will be examined in light of the EIR to determine what additional environmental documentation must be prepared. Developments which do not require additional discretionary review will not be subject to any additional environmental documentation. However, in all cases, the developer will be required to submit documentation substantiating that said development is allowed and in conformance with the Reuse Plan, Redevelopment Plan, OPA, DDA and PA and that their environmental effects are within the parameters and time frame analyzed within the Program EIR. Future developments that require discretionary review (e.g. amendments to the Reuse Plan, Conditional Use Permit, etc.,) will require subsequent environmental review in compliance with the State CEQA Guidelines unless the City finds, after preparing an Initial Study, (1) that the subsequent project is within the scope of the Program EIR, (2) that the project will not cause any additional significant effects on the environment not described in the Program EIR, and (3) that no new or additional mitigation measures or alternatives are required to mitigate the subsequent project's significant environmental impacts. At this time, and given that there are no current development proposals pending within the Project Area, it is too premature to anticipate what type of subsequent environmental review (e.g. negative Declaration, Mitigated Negative Declaration or project-level EIR) may or would be required.

Q:      What is the time constraint for submittal of the R.F.P. and when does the developer have the opportunity to be involved in the Development Agreement process?

A:      The developer selection and negotiation schedule is constrained by the City's obligation to close escrow on the property by November 23, 1999. In order to meet this purchase date, the RFP will be issued on March 2, 1999 to a selected number of respondents to the RFQ and responses to the RFP will be due on June 2, 1999. The City will negotiate with up to three developers and select a master developer by October 12, 1999.

A draft Development Agreement, draft Owner Participation Agreement, and draft Purchase Agreement will be included in the RFP package. These agreements will be modified through negotiations with the selected master developer during the negotiation period of July 19 through October 12, 1999.

Q:      What and who is the Public Finance Authority?

A:      The Novato Public Finance Authority is an entity that the City and the Redevelopment Agency have established. It is a separate joint powers authority under the government code that will purchase the property from the Navy.

The Public Finance Authority Board of Directors consists of the same five people who hold positions on the Novato City Council and the Redevelopment Agency.

Q:      In the Capehart housing area, will there be rent and utility restricted units?

A:      The City has a condition in its agreement to purchase the property from the Navy that will perpetually restrict units to affordability and income levels based on H.U.D. standards (Nov. 1997) for Marin County.

Q:      Must individuals be exclusively on only one development team?

A:      No. Individuals can be on more than one development team. However, once a team is established and the names are submitted, a developer may not substitute a team member without the approval from the City.

Q:      What is the status of the Draft E.I.R. and is it available for review?

A:      The City has distributed the Notice of Preparation. The City has also done a Programmatic E.I.R., on its General Plan and a Negative Declaration on this developer selection process. The next level is to do the Program E.I.R., on the Development and Owner Participation Agreement and the Reuse Plan.

Q:      Prior to the October, 1999 due date, will there be a ranking of respondents (development teams)?

A:      The City Council will be responsible for selecting the master developer. The process is as follows: The ad hoc Selection Advisory Committee will review responses to the RFP and select up to three developers for negotiations with the City. The City will negotiate with the developers, the developers will submit "best and final" offers, and the Council will select the master developer. The Selection Advisory Committee may or may not elect to rank respondents.

Q:      Will there be a prevailing wage requirement?

A:      Depending on the structure of the financing, a prevailing wage requirement could apply to any construction financed or paid for from public moneys, so developers should structure their financing with that in mind.

Q:      Will there be a local hiring preference requirement?

A:      Not anticipated

Q:      Which type of financial consultant is the City of Novato referring to in the RFP, and what are they really looking for here?

A:      The City understands that a range of financial expertise will be needed to structure the project's financing plan. While it is not a requirement of the RFQ that a developer have a financial consultant(s), we are requesting that all known members of development team be identified in responses to the RFQ.

Q:      What does the City anticipate regarding asbestos and lead based paint remediation for Raphael and Capehart housing? The Initial Study indicates that it is the Navy's responsibility. Other documents indicate that remediation will be developer's's responsibility.

A:      All lead in the soil will be remediated by the Navy. In the Capehart and Hillside areas, the Navy and the City have estimated the cost of abating all friable asbestos to be $1.47 million, the cost of which would be borne by the Master Developer. There is no lead paint problem inside the units. Rafael Village is scheduled for demolition and any asbestos found in the units must be disposed of in a proper manner. All of these issues are the responsibility of the selected master developer.

Q:      Quantify City/County expectations of the amount of funds to be paid to City/County and Department of Defense at or subsequent to close of escrow over and above $8.13 million including:

A:      The selected developer will be responsible for funding all entitlement and development costs associated with the developing of the project and implementing the Reuse Plan. A fundamental principal of the Reuse Plan is that the development be, at a minimum, fiscally neutral to the City of Novato. Respondents to the RFP will be asked to submit a plan that achieves, at a minimum, fiscal neutrality. Additionally, the project will be subject to the City's fee ordinances, which are available for review at the City's Community Development Department.

Q:      When will Capehart housing be available for inspection? Will Lanham Village housing also be available for inspection in order to provide an example of acceptable rehabilitated for sale housing?

A:      The Capehart and Hillside Housing will each have one unit available for inspection on January 19, 1999 from 8 AM to 4 PM. The address for the Hillside unit is 100B Andrews. The addresses for the Capehart units are 299 Bolling and 1 Andrews. The Lanham Village homes are privately owned and are unavailable for viewing.