Response to Request for Proposals

Redevelopment of City-Owned Property

LaVilla District Jacksonville, FL Bid No: ESC-0456-13

Gorman & Company, Inc.

Hana Eskra, Florida Market President
9100 S. Dadeland Blvd, Suite 1500 Miami, Florida 33156 (305)668.5810

May 1, 2013 COPY

 May1,2013 DeidraBaines,CPPB PurchasingAnalyst 214N.HoganStreet,Suite800 Jacksonville,FL32202 RE: RequestforProposalsforRedevelopmentofCityOwnedPropertyLaVillaDistrict BidNo:ESC045613 DearMs.Baines, Gorman&CompanyisproudtosubmittotheCityofJacksonvilletheattachedresponsetotheabove referencedRequestforProposals.Gorman&Company,Inc.hasover27yearsofexperiencein developingsomeofthenationshighestqualityworkforcehousingandneighborhoodrevitalization projects.Gormanregularlyreceiveslocalandnationalrecognitionforitsdevelopmentsincludinga recentnationalawardfortheBestMixedUse/MasterPlannedDevelopmentforVillardSquarein Milwaukee,Wisconsin.Thispastfall,wereceivedanawardfromtheAmericanPlanningAssociationfor excellenceinaffordablehousingforthedevelopmentoftheGlendaleEnterpriseLoftsinGlendale, Arizona. GormanhasdevelopedareputationinFloridaandourothercoremarketsforbeingastrongpartner withnonprofitorganizationsandlocalgovernmentagencies.Wehaveareputationforbeingan innovativeproblemsolverthatgetsthingsdoneacrosstheUnitedStates.YouwillfindGorman& Companytobeextremelyflexible,cooperativeandcreativeinstructuringauniquepartnershipmodel thatwillservetobenefittheobjectivesofboththeCityofJacksonvilleandGorman.Wehaveaccessto significantshorttermpredevelopmentcapital,constructionandpermanentfinancing,aswellasastellar trackrecordwithallofourequitypartners.Wehavestructuredmanycomplextransactionsinvolvinga multitudeoflayersofpublicandprivatefinancing,andhaveaccesstosomeofthenationsmost experiencedattorneys,CPAsandconsultantstosupplementourcollectivecapacitiestotakeany feasibleprojectacrossthefinishline. OurresponsetothisRFPincludestwoseparateproposals;bothincludemarketraterentalapartments withlive/workloftsandcommercial/retailspace:

REAL ESTATE DEVELOPMENT AND MANAGEMENT 200 N. Main Street Oregon, WI 53575 phone 608.835.3900 fax: 608.835.3922 www.GormanUSA.com

StatementofQualifications
1.DevelopmentPlan,EconomicImpact,Design ConceptandVision Gorman&Company,Inc.sresponsetothisRFPincludestwoseparateproposalsforthesites. ProposalAencompassesDevelopmentSite2only,asdescribedbelow.ProposalBincludesthesame plansforDevelopmentSite2asProposalA,butalsohasanoptionofincludingDevelopmentSite1. Detailsofeachproposalarebelow.Westronglybelievethatbothproposalscontainthevision, design,andfeaturesofacatalyticprojectthatwillfurthertheCityseffortstoadvancethe investmentandeconomicopportunitiesintheneighborhood.Ourproposalsprovideforhousing, retailspaceandaninviting,walkableneighborhoodthatisreminiscentofthehistoricLaVilla community. ProposalA(DevelopmentSite2) Gorman&Company,Inc.sProposalAincludesDevelopmentSite2only.Itencompassesreopening ArthurStreetbetweenW.UnionStreetandW.BeaverStreetandincludesthree,threestory buildings,openspace,andparking.TwoofthebuildingslineeithersideofArthurStreet,eachwith 3,000squarefeetofcornerretailspaceattheintersectionwithW.UnionStreetandresidential unitsalongArthurStreet.ThethirdbuildingrunsalongN.JeffersonStreetandincludesapartments andretailspacefrontingthecorneratW.UnionStreet.Streetlevelapartmentswillbedesignedas liveworkloftsforneighborhoodentrepreneursandhousingforlocalfamilies.Thisdesignoffers economicopportunitiesforlocalresidentsandispedestrianorientedwithparkinglocatedonthe streetorbehindthebuildings. LaVillaEnterpriseLoftsincludes105apartmentunitstotal,24ofwhichareliveworkunits,giving localentrepreneurstheabilitytoliveandworkintheirneighborhood.Theremainingunitsare availableforfamiliesandseniorsfromthecommunity.Theproposedunitmixincludes(39)one bedroomunits,(51)twobedroomunits,and(15)threebedroomunitsdistributedwithinthethree mixedusebuildings.Theplansalsofeature9,000SFofcommercialspace(3,000SFperbuilding)and 115parkingspaces. ReopeningArthurStreet,addingretailspacealongW.UnionStreet,andbuildinglive/worklofts frontingArthurStreetandW.JeffersonStreetbringbackthehistoryoftheLaVillaneighborhood.It allowstheresidentstoavailthemselvesofhousingandeconomicdevelopmentopportunitiesin theirownneighborhood.OpengreenspacewouldbuffertheparkingareafromW.UnionStreet. ProposalB(DevelopmentSites1&2) ProposalBincludesallelementsofProposalAasoutlinedabove,butwouldalsoaddanoptionto includeDevelopmentSite1,witha6,000SFRestaurantandanadditionalthreestorybuildingwith

35apartments,including8liveworkunits.TheproposedunitmixforbothDevelopmentSite1and 2includes(52)onebedroomunits,(68)twobedroomunits,and(20)threebedroomunits distributedwithinthefourmixedusebuildings.ThetotalunitcountforProposalBistherefore140 apartmentunits,including32liveworkunits,9,000SFofretailspace,andthe6,000SFrestaurant. Thecurrentrestaurantbuildingwouldbedemolished,withthenewspacedlocatedatthecornerof N.DavisStreetandW.UnionStreet.Outdoorseatingisavailablefortherestaurantaswellasan additionalentrancetotheparkingfromW.UnionStreet. SiteplansandpreliminaryrenderingsforbothProposalsAandBareenclosedwiththisresponse. EconomicImpact AtGorman&Company,werecognizethattheprojectswebuildnotonlybringqualityhousingand actacatalyticdriversforurbanrenewalneighborhoods,buttheyarealsoimportanteconomicand jobgenerators.Newconstructionanddevelopmentofprojectsofthismagnitudebringsignificant jobopportunitiestolocalcommunitiessuchastheCityofJacksonville.Inourexperience,our100+ unitmultifamilyprojectscreate70100jobsduringtheconstructionphaseoftheproject.This experienceisborneoutbya2009studybytheNationalAssociationofHomeBuilderswhichstates thatevery100unitsofnewconstructionmultifamilyhousingcreates80directjobsandananother 42indirectjobs(throughthebuyingofmaterials,etc.).Accordingtoarecentanalysisofthe economicimpactofrentalhousingconstructioncompletedbyFloridaHousingFinanceCorporation, newconstructionprojectscreateapproximately350newjobsperproperty1.Thisincludesdirect, indirect,andinducedjobscreatedbytheconstructionofthedevelopment.Newconstructionalso createsadditionalpermanentjobs,particularlyformanagementandmaintenanceofthenew development.Itisanticipatedthatthisdevelopmentwillexperiencesimilarjobopportunitiesfor Jacksonvilleandwillcreateaminimumof80directjobsand30indirectjobsduringconstruction.All constructionjobswillprovidefamilysupportingwages. BothProposalsA&Bincludecommercial/retailspacewithinthebuilding.ProposalAhas9,000 squarefeetofcommercialspaceandProposalBincludesthat9,000squarefeetandaddsan additional6,000squarefeetforarestaurant.Successfulbusinessesinthesecommercial/retail spaceswillcreateadditionaleconomicopportunitiesandadditionalpermanentjobsfordowntown Jacksonville.Thetypeofbusinessesthatoccupythesespaceswilldeterminethenumberofjobs createdbutweestimatearangeof1050permanentjobswillbecreatedbythisdevelopment(the higherendoftherangeincludesemployeesoftherestaurant). Inaddition,ProposalsA&Bhaveatotalof30streetlevellive/workunits,whichwouldbeavailable forneighborhoodentrepreneurs.Thisdesignfeaturewillprovideadditionaleconomicopportunities forresidents,givingthemtheopportunitytorunsmallbusinessesintheseunits. Lastly,constructionoftheproposeddevelopmentwillresultinanincreasedtaxbasefortheCityof Jacksonville.Currently,thepropertiesaremostlyvacantandareownedbytheCity,whichmeans
FinancingAffordableRentalDevelopment:JobsCreatedbyNewConstructionandPreservationMarch 2011,FloridaHousingFinanceCorporation
1

theyarepropertytaxexempt.Thedevelopmentandtransferofthesiteswouldleadtoincreased propertytaxes.Weestimate,basedonsimilarresidentialpropertiesdowntown,thatthevalueof LaVillaEnterpriseLoftsunderProposalAwouldgenerateanadditional$189,000inannualproperty taxesfortheCityofJacksonvilleandforProposalB,thatamountwouldincreaseto$252,000. Design&Compatibility Gorman&Companysproposalsareconsistentwiththelocalplansanddistrictsreferencedinthis RequestsforProposal: DowntownJacksonvilleMasterPlan,2000 o Ourproposalsincludeamixtureofcommercialandresidential,maximizedlot coverage,neighborhoodretailandincubatorbusinesses,andworkforceurbanlive workhousingtoservedowntownemployees,asoutlinedinthePlan. ZoningOverlayDistrictLaVillaNeighborhood,2003 o Consistentelementsincludezerobuildingsetbackatlotline,maximizedlot coverage,invitingfacadeswithawningsandoverhangs,avarietyofmaterials,close proximityofuses,landscapinginandaroundparkingareas,wroughtironfencing andshrubsaroundparking,andtransparentmaterialsatstreetfrontage. CityofJacksonvilleDowntownActionPlan,2007 o Ashighlightedinthisplan,ourproposals:encouragewalkability;aredestinationsfor uniqueretail;createaneighborhoodfeel;provideworkforcehousing;include streetscapingwithtrees,benches,andlighting;andhelptoslowdowntraffic. JEDCStrategicPlanDowntownWorkforceHousingStrategy o Ourproposalsincludeanarrayofworkforcehousingoptionsforfamiliesand residentsintheneighborhood,includingliveworkloftsforentrepreneurs. DowntownTransportationConcurrencyExceptionAreaImplementationPlan,2005 o BothProposalsA&Bencouragesharedparkingwhereappropriate,particularlywith theliveworkunits. 2.QualificationsandExperienceofProposer ResumesofKeyIndividualsatGorman&Company,Inc. GARYJ.GORMAN PRESIDENT AftercompletinghisB.A.inEconomicsandLawDegreesfromthe UniversityofWisconsinatMadison,Mr.Gormanbeganhiscareerasa practicingattorneyfocusingonrepresentationofdevelopersandreal estatesyndicators. In1984Mr.Gormanformedafirmforthepurposeofdevelopingand syndicatingmultifamilyrealestateprojects.AfterthepassageoftheTax ReformActof1986,Mr.Gormanspecializedinthedevelopmentof affordablemultifamilyrentalcommunitiesutilizingthetaxcreditcreated bySection42ofthe1986TaxReformAct.

Gorman&Company,Inc.isnowamajordeveloperofaffordablerentalhousingaswellashistoric renovations.ThefirmhasofficesinWisconsin,Illinois,Arizona,andFlorida,aswellasprojectsinsix states.Gorman&Company,Inc.hasinhousedesignandconstructiondivisionsthathave successfullycompletedover$350millionofnewconstructionandmajorrenovations.Itsaffiliated propertymanagementfirmmanagesoverthreethousandunits. Mr.GormanservesasaboardmemberforCatholicCharitiesandNorthernBankshares,Inc.Mr. GormanalsoservesasamemberoftheSteeringCommitteefortheHousingCreditGroupof NationalAssociationofHomebuilders(NAHB)andontheAdvisoryBoardfortheFederalHomeLoan BankofChicago.Inaddition,Mr.GormanpreviouslyservedontheBoardofDirectorsforthe MadisonAreaApartmentAssociation,CreditBureauofMadison,SouthMadisonCommunity DevelopmentCorporation,andBusinessEducationPartnership. TOMCAPP CHIEFOPERATINGOFFICER TomCapphasdirectedGorman&Company'srealestatedevelopmentsince 1994.Underhisdirection,thecompanyhasfocusedonurbanrevitalization, mixedincomehousing,historicpreservationandthepreservationof affordablehousing. PriortojoiningGorman&Company,Mr.CappwasaSeniorAssociateat Camiros,Inc.,anurbanplanningfirmbasedinChicago.Mr.Cappisaformer publicofficialhavingservedasmayorofFitchburg,Wisconsin,wherehealso servedaschairmanofthecity'sPlanningCommissionandchairmanofitsEconomicDevelopment Commission.AsexecutiveassistanttoDaneCountyExecutiveRickPhelpsfrom19931994,he directedlanduseanddevelopmentpolicyforDaneCounty(Madison,Wisconsinandsurrounding areas). Mr.CapphasadegreeinEconomicsandPoliticalSciencefromtheUniversityofIllinoisat ChampaignUrbana.Tomhasservedonmanyindustryboardsandcommissions.Hecurrentlyserves ontheBoardofDirectorsoftheNationalHousingandRehabilitationAssociation.In2007hewas appointedbytheWhiteHouseasaPanelExpertforthePreserveAmericaSummit,aninitiative createdbyexecutiveordertomodernizeournationsapproachestohistoricpreservation.Heisa frequentspeakerandpresenteratconferencessponsoredbystatehousingauthorities,planning associations,andhousingindustrygroupssuchasNCSHA,NH&RA,andIPED. HANAESKRA FLORIDAMARKETPRESIDENT HanaEskraservesasFloridaMarketPresidentforGormanandCompany. Herexperienceincludesmorethan18yearsofaffordablehousing developmentconsultationandfinancialfeasibilityandprojectmanagement services,aswellashousingpolicyanalysisandimplementation.Ms.Eskra hasworkedforlocalgovernmentsandbothnonprofitandforprofit housingdevelopmentorganizations.Shehasanoperationalknowledgeof nearlyallaspectsofaffordablehousing.

Ms.Eskrahasbeendirectlyinvolvedinthedevelopmentofover$140millionofaffordable multifamilyandsinglefamilyhousingunitsandhasworkedwithlocalofficialstocreatehousing policiesthatencouragethedevelopmentofaffordablehousingintheircommunities.Inherprevious positions,Ms.Eskraworkedforanationalnonprofittoacquire,recapitalizeandrehabilitatea failinglowincomehousingtaxcreditportfolioandwasActingDirectorofMiamiDadeCountys OfficeofCommunityandEconomicDevelopment.Inthatcapacity,shemanaged120employeesand oversawa$400millionoperatingandcapitalbudgetthatincorporatedfederal,stateandlocal fundingforaffordablehousing.Ms.EskrahasalsoworkedasatechnicaladvisorforaFlorida statewideaffordablehousingorganization,providingtechnicalassistanceandtrainingtononprofits andlocalgovernments.ShealsowastheDirectorofRealEstatefortheGreystonFoundation,a nonprofitcommunitydevelopmentcorporationlocatedinYonkers,NewYork. Ms.EskrahasaMasterofPublicAdministrationfromtheUniversityofNorthCarolinaatChapelHill andwroteherMastersthesisonthelowincomehousingtaxcredit.SheresidesinMiami,Florida. PATRICKPATRELLO LEADARCHITECT,FLORIDA Patrick Patrello has more than 10 years of experience in commercial and residential architectural design. He is a registered Architect in Wisconsin, Illinois, Florida, Michigan and is NCARB certified. His experience includes a wide range of construction types and occupancy classifications including adaptive reuse.Prior to joining Gorman & Company, Patrick worked for the City of Detroit. Previously, he was with an award winning Chicago architecture firm recognized as a leader in the design of mid to highrise residential and mixeduse developments.Patrick received his Bachelors and Masters of Architecture degrees from the University of Michigan. He is passionate about urban redevelopment. FirmExpertise Gorman&Company,Inc.hasdevelopedaportfolioofover50multifamilyrentalproperties, representingover3,000unitsofhousingin6states,includingFlorida,Arizona,Wisconsin,Illinois, Mississippi,andLouisiana.GaryJ.GormanstartedGorman&Companyin1984todevelop, syndicate,andmanagemultifamilyhousingproperties.Ourmissionistocreatehighqualityhousing opportunitiesforavarietyofincomelevels.Gorman&Company,Inc.islistedasthe26thlargest developeroflowandmoderateincomehousingintheMay2013issueofAffordableHousing FinanceMagazine.Gorman&Companysabilitytoassembletheresourcesnecessarytotackle toughdevelopmentshasmadeitanindustryleaderinpartneringwithcommunitiestoaddress housingneeds.Thecompanyhasextensiveexperienceindevelopingawidevarietyoflow, moderate,andmixedincomehousingforentrepreneurs,youngprofessionals,specialneeds populations,families,andtheelderly. Gorman&Companyworkscloselywithlocalgovernmentsandcommunitygroupstohelp communitiesmeettheirdevelopment,planning,economicandsocialgoals.Gormansstaffbringsa broadrangeofdevelopment,constructionandreallifeexperiencetothedevelopmentprocessand appliesthoseskillstosolveproblemsandhelpcommunitiesbringtheirplanstoreality.Our developmentsrangefromupscalecondominiumcommunitiestomixedusedevelopmentsin downtownredevelopmentareas.Gormansuniqueaffordablehousingcommunitiesofferhigh qualityamenitiesthatservethecreativeclass,seniors,accessibilitychallenged,entrepreneurs, families,andindividuals.

 Oftheover50projectsthatGorman&Companyhasdevelopedinthepast27years,thecompany hasneverhadaforeclosure,neverdefaulted,andneverhashadthegeneralpartnerreplacedbythe investor. WsGandPartnersLLC WightGreger,PresidentandCEOofWsGandPartnersLLC,openedherownpracticeasa RedevelopmentConsultantwithafocusonrealestatedevelopmentandpublicfinance.Wights expertisecomesfromover20yearsofexperienceinthecommunitydevelopmentarenainFlorida, andshehasworkedinmanycommunitiesthroughoutFloridaleveragingpublicfinancingprograms withprivatecapital.WightcurrentlyservesontheJacksonvilleHousingFinanceAuthorityBoard,the FloridaHousingCoalitionBoardExecutiveCommittee,andisamemberoftheJacksonvilleChamber ofCommerceandNortheastFloridaBuildersAssociation. Untilrecently,WightservedastheDirectoroftheCityofJacksonvillesHousingandNeighborhoods Department.AsDirectoroftheHousingandNeighborhoodsDepartment,WightwastheExecutive DirectoroftheJacksonvilleHousingFinanceAuthority(JHFA).Wightsprimaryresponsibilities includedmanagingthedepartments46memberstaffand$20+millionbudget,creatingand structuringprogramstorespondtocommunityneeds;andrecommendingpolicyoptionstothe MayorandCityCouncil.PriortoheremploymentwiththeCity,WightservedfortenyearsasSenior TechnicalAdvisorfortheFloridaHousingCoalition. Ms.Gregerwillhaveaconsultantroleontheproject.Shewillserveasaliasonwiththelocal government,assistingwiththeentitlementprocessandlendingherlocalexpertisetotheproject.

ProjectExperience PARKEASTENTERPRISELOFTS MILWAUKEE,WI These stylish urban lofts provide entrepreneuriallyminded residents with creative space in their units and also unit and project amenities that give them the opportunity to start businesses from their homes. Community amenities include multiple conference rooms, office spaces, copy and media/presentation center, and a library. The development also has a community kitchen, fourthfloor community room with rooftop patio andfireplace,andhealthfacility.This property has helped spur redevelopment of the Park East corridor in Milwaukee and is across the street from Manpower Internationals new world headquarters. In 2007, Park East received an award of excellence in urban design from Milwaukee Mayor Tom Barrett, received a 2007 WCREW award, was a large projectfinalistin the2007 MANDIawards,andwasanAffordable HousingFinancesreaderschoice finalist. VILLARDSQUAREGRANDFAMILY MILWAUKEE,WI VillardSquareGrandFamilyMilwaukeeisamixedusedevelopmentthataddressestwostrongneeds of Northwest Milwaukee relocation of a neighborhood library that was housed in a building that was failing, and housing for families where grandparents are the primary caregiversfortheirchildrenskids.Villard Square was recently awarded a national award from Affordable Housing Finance for Best MasterPlanned/MixedUse Development, The Milwaukee Mayors Design Award, Public Policy Forums Project of the Year for Best PublicPrivate Cooperation, and the 2012 MANDI LISC State Farm Insurance Building Blocks Award for a real estate project that contributed significantly to the enhancementofthecommunity.

 STATEATMAIN RACINE,WI State at Main is the northern anchor of Racines downtown redevelopment. This mixeduse community provides 16,800 square feet of retail, 84 activeadult affordable apartment homes and 23 marketrate condominiums. This multifaceted development brings a vibrant urban feel to Racines reemerging downtown. Located across the street from Belle Harbor, State at Main is helping Racine meet its goals of bringing and keeping more people and employment back to downtown Racine. State at Main received a recognition award from SustainableRacine. GRANDRIVERSTATION LACROSSE,WI Grand River Station Apartments is comprised of a number of components which include a transit center, retail, rental housing, and a parking deck. The rental housing component of this development includes 72 units and is targeted toward artists and entrepreneurs. The design of the units includes live/work space and project amenities such as a business center, artists workspace, and an art gallery to cater toward these populations. The first floor transit center serves as a hub for public transportation in downtown La Crosse consisting of 10,000 square feet and also located at ground level. The third floor of the building has a parking deck available to all residents.

BLUEWATER TAVERNIER,FL BlueWaterisa36unitdevelopmentona2.7acresiteonTavernierKeyinMonroeCounty.Gorman & Company teamed with Duany PlaterZyberk (DPZ), an internationally renowned architectural and planning firm to focus on creating innovative design approach to housing.Theteamwas competitively selected by the Florida Keys (Monroe County, FL) to develop viable workforce housing. The County contributed land, fees and entitlements to theproject. GLENDALEENTERPRISELIVEWORKLOFTS GLENDALE,AZ GlendaleEnterpriseLiveWorkLoftsisa28unit,mixedincomedevelopmentspecificallydesignedto serve the citys downtown workforce as a livenearwork development. Gorman & Company, along with ABIL, worked closely with Glendales largest employers to understand their workforce housing needs. The idea, in part, is to offer Glendale Enterprise LiveWork Lofts as an asset to companies in their efforts to recruit and retain employees. In addition, some of the unit designs, and most of the common amenities, are designed to allow entrepreneurial people to further their work and small businesses.

 MOLINELIVEWORKLOFTS MOLINE,IL IntheQuadCities,Gorman&Companycreatedamixeduse,mixedincome,69unit"livework" development.Itisdesignedtoserveupandcomingentrepreneursandothermembersofthe regionsevolving"creativeclass."Thedevelopmentistheresultofaninnovativepartnershipthat includes:thecity;thelocalHousing Authority;abusinessfocused nonprofitorganization;andthree oftheregionslargestemployers. Thedevelopmentfeatureslive workunitsthathavecommercial streetentrances,activatingthe streetandallowingsmallbusiness ownerstocombinetheiroffice, studio,andresidenceinoneplace. THELOFTSATMCKINLEY PHOENIX,AZ TheLoftsatMcKinleyisa60unit,mixeduse,affordabledevelopmentspecificallydesignedtoserve independentseniors55yearsandbetterinthecitysdowntowncore.Thedevelopmentisa3story, urbanloftbuilding.ItfrontsW.McKinleySt.andN.5thAvenueindowntownPhoenixshistoric RooseveltNeighborhood.LoftsatMcKinleyinvolvesasubterranean,podiumparkingstructurewith threestoriesof residentialunits constructedontopof thepodium.Amenities aretargetedtowards thecreativeclass,witha computergraphicslab,a claypottersroom,anda paintingstudio.This offersuniquesynergies betweenthecreative classofferingsinthe RooseveltHistoric Neighborhood.

References:(Descriptionsofprojectsarelistedabove) WisconsinHousingandEconomicDevelopmentAuthority(WHEDA) o 201W.WashingtonAve.Ste.700Madison,WI53703 o BillBoerigter,Manager,MultifamilyHousing o (608)2671450;bill.boerigter@wheda.com o Projects:VillardSquare,GrandRiver,ParkEastEnterpriseLofts CityofMoline o 61916thSt.Moline,IL61265 o RayForsythe,EconomicDevelopmentDirector(309)7970708 rforsythe@moline.il.us o Project:MolineEnterpriseLiveWorkLofts CityofMilwaukee o 200E.WellsSt.CityHallRm.201Milwaukee,WI53202 o MayorTomBarrett(414)2862200 o MariaPrioletta,HousingandNeighborhoodDevelopmentManager o (414)2865903;mpriol@milwaukee.gov o Projects:VillardSquare,ParkEast MonroeCountyCommissioners(Florida) o 102050O/SHighway,Suite234KeyLargo,FL33037 o SylviaMurphy,Commissioner o (305)4538787;boccdis5@monroecountyfl.gov o Projects:BlueWater 3.FinancialCapabilityandCapacity Withaportfolioofover50propertiescurrentlyinourportfolio,Gorman&Companyhasextensive multifamilyexperienceandstrongrelationshipswithsyndicatorsanddirectplacementinvestors.In addition,wehavestronglendingpartners(USBank,JPMorganChase,andBankofAmericatoname afew)andhavefinancednumerouspropertiesusingFHAprograms. Gorman&Companyalsoemploysawiderangeoflocal,stateandnationalfundingsourcestargeted tostimulateinfillrentalhousingtorevitalizeurbanneighborhoods.ExamplesrangefromFederal HomeLoanBankAHPGrants,HOMEandCDBGfunding,localgeneralfundsandgeneralobligation bondsandmunicipalTaxIncrementalFinancing.Weareskilledinthelayeringoffundingsourcesto ensurethataprojectisfinanciallysuccessful.Inour27yearsinbusiness,Gorman&Companyhas neverhadadefaultorforeclosureonanyproperty. Gorman&CompanyhasthefinancialcapacityandexperiencetodeveloptheLaVillasites.As developersofresidentialpropertieswearefinanciallyresponsibleto:fundpredevelopmentcosts; financegapsinprojectfinancing;payforprojectoverruns;financiallyguaranteeleaseup;andfund anyoperatingdeficitsforseveralyears.Oftheover50projectsthatGorman&Companyhas

developedinthepast27years,thecompanyhasneverhadaforeclosure,neverdefaulted,and neverhashadthegeneralpartnerreplacedbytheinvestor.Thecurrentstockholderequityfor Gorman&Companyanditsaffiliate,GormanGeneralContractors,isvaluedat$42,000,000. Inaddition,wereducethefinancialriskofourprojectsbyreducingourriskofcostoverruns.We investheavilyinduediligencefromtheearlystagesofthedevelopmentprocess,haveanarchitect onstaff,andemployourinhousegeneralcontractingdivisiontoproducedetailedcostestimates fromearlydesigndrawings. Wereduceouroperatingriskbyincorporatingfeaturesandamenitiesthatarecuttingedgeforthe marketinwhichwearebuilding.Inaddition,ourpropertymanagementaffiliateworksveryearlyin theprocesstoidentifyourtargetmarketandcreatedemandpriortothecompletionofthe construction. AuditedfinancialstatementswerenotincludedduetothepagelimitrequirementsofthisRFP. Proforma,Sources&Uses,financingcommitment,evidenceofabilitytofund AsurveyofmarketraterentalunitsindowntownJacksonvilleindicatethataveragesquarefoot rentsare$1.35indowntownJacksonville.Thissquarefootagerentwasusedtodeterminetherents forLaVillaEnterpriseLofts. ProformasforbothProposalsAandBareenclosedforreference,includingasources&usesanalysis foreachscenario.AlsoattachedisafinancingcommitmentforeachProposal,forthePermanent Mortgagefinancing. Equitycommitmentandtiming/disbursement Asistypicalinurbanrevitalizationareas,marketrentsindowntownJacksonvilledonotsupportthe costofthedevelopment.Gorman&Companywillcontribute$3,467,151and$4,611,489in developerequityforProposalsAandB,respectively,toprovideneededfinancingfortheproject.As partofourcommitmenttotheLaVillaEnterpriseLoftsandtoourpartnershipwiththeCityof Jacksonville,Gormanwillreinvestdeveloperfeesandgeneralcontractorfeesbackintotheproject toensureitsfinancialfeasibility.ThisinvestmentofthefeesthatarenormallyearnedbyGormanto offsetconstructionanddevelopmentriskwillbeusedinsteadtofundprojectcosts.Feeswillbere investedasearnedthroughoutthedevelopmentoftheLaVillaEnterpriseLofts. Bankreferences JPMorganChaseBank,N.A. 10S.DearbornMailcode:IL10953 Chicago,IL60670 RhondaMcFarland,VicePresident,CommunityDevelopmentBanking (312)3255075 rhonda.r.mcfarland@chase.com

BMOHarrisBank 111W.MonroeStreet/2East Chicago,Il.60603 KatherineB.Mazzocco,SeniorVicePresidentofCommunityDevelopmentLending (312)4612797 Katherine.Mazzocco@harrisbank.com Projectedfinancialstructureofproject Gorman&Companyspecializesinurbaninfillandurbanrenewalprojectsthatactascatalytic developmentsforthesurroundingneighborhood.Gormansprojectshavespurredprivate investment,revitalizedcommunitiesandencouragedsurroundingdevelopmentbytheprivate sector.Wehavebuiltandoperatedover50multifamilyandmixeduseproperties,primarilyin partnershipwithlocalgovernments,andhavealwaysbeenaskedbacktodevelopadditional projectsinthecommunitiesinwhichwehaveserved. Becauseofourextensiveexperiencedevelopingurbanrenewalproperties,weunderstandthe financingstructureneededtoensurethattheseprojectsaresuccessfulandthattheybecomethe catalyticdriverforthesurroundingarea.Currentmarketdemand(i.e.rentandpropertyvalues)in LaVilllaisnothighenoughtospurprivateinvestment,yetdevelopmentisneededinthisareato attractthatadditionalprivateinvestment.OurexperienceshowsthatpropertiesliketheLaVilla propertyneedatrueprivate/publicpartnershiptobesuccessfuland,assuch,weareproposingthe followingfinancingstructure: ProposalA(DevelopmentSite2) o PermanentMortgage(FHA221(d)(4)program)$14,190,000 o DeveloperEquity(Gorman&Company)$3,467,151 o CityofJacksonville$1,819,840 ProposalB(DevelopmentSite1&2) o PermanentMortgage(FHA221(d)(4)program)$18,915,000 o DeveloperEquity(Gorman&Company)$4,611,489 o CityofJacksonville$2,287,940 Thisfinancingstructureallowsustomaximizethedebtavailabletotheproject(FHAproducts currentlyhavethelowestinterestrateavailableonthemarketwithanextendedamortization period)andcreatesatruepartnershipbetweentheCityofJacksonvilleandGorman&Company. BoththeCityandGormanwillbenefitfromthesuccessofLaVillaEnterpriseLofts.TheCitywill increaseitstaxbasebothbythedevelopmentofthisprojectandbysurroundingdevelopment spurredbyLaVillaEnterpriseLofts.Gorman&Companywillbenefitbyreceivingareturnonits

equityinvestmentintotheprojectintheformofcashflowfromoperations.Thisfinancialstructure hasbeenverysuccessfulwithnumerousurbanrenewalprojectswehavedevelopedinpartnership withlocalgovernments. 4.DevelopmentSchedule(seeSection4ofRFP) Thedevelopmentscheduleforbothproposalsisoutlinedbelow: ProposalA(DevelopmentSite2) ForProposalA,thedevelopmentschedulewillmirrorthePerformanceSchedulerequestedinthe RFP: Within15monthsoftheeffectivedateofthepurchaseandsale,Gorman&Companywill haveappliedforallpermitsfortheconstructionofLaVillaEnterpriseLoftsforDevelopment Site2. o EffectivedateofthePurchaseandSaleSeptember,2013 o CompletionofarchitecturalplansDecember,2013 o SubmittaltotheDowntownDevelopmentReviewBoardJanuary,2014 o PreApplicationtoFHAforthe221(d)(4)financingJanuary,2014 o FullapplicationforFHAfor221(d)(4)financingMarch,2014 o SubmittalforsiteplanapprovalJune,2014 o CompletionofconstructiondrawingsOctober,2014 o ApplicationforallbuildingpermitsNovember,2014 Within60daysoftheissuanceofthepermits,Gorman&Companywillhavebrokenground andbeinmaterial,ongoingphysicalconstructionoftheimprovements o PermitsissuedJanuary,2015 o Groundbreaking/commencementofconstructionFebruary,2015 Withinoneyearofthatdate,Gorman&Companywillhavecompletedconstructionand receivedcertificatesofoccupancy. o Completionofconstruction/certificatesofoccupanciesFebruary,2016 ProposalB(DevelopmentSite1&2) ThedevelopmentscheduleforProposalBwillbethesameasthescheduleforProposalA. Within15monthsoftheeffectivedateoftheleaseagreement,Gorman&Companywill haveappliedforallpermitsfortheconstructionofLaVillaEnterpriseLoftsforDevelopment Site2. o EffectivedateofthePurchaseandSaleSeptember,2013 o CompletionofarchitecturalplansDecember,2013 o SubmittaltotheDowntownDevelopmentReviewBoardJanuary,2014 o PreApplicationtoFHAforthe221(d)(4)financingJanuary,2014 o FullapplicationforFHAfor221(d)(4)financingMarch,2014 o SubmittalforsiteplanapprovalJune,2014

o CompletionofconstructiondrawingsOctober,2014 o ApplicationforallbuildingpermitsNovember,2014 Within60daysoftheissuanceofthepermits,Gorman&Companywillhavebrokenground andbeinmaterial,ongoingphysicalconstructionoftheimprovements o PermitsissuedJanuary,2015 o Groundbreaking/commencementofconstructionFebruary,2015 Withinoneyearofthatdate,Gorman&Companywillhavecompletedconstructionand receivedcertificatesofoccupancy. o Completionofconstruction/certificatesofoccupanciesFebruary,2016

5.PurchasePriceorLeaseTerms Asistypicalinurbanrenewalareas,currentmarketrentsindowntownJacksonvilleremainbelow whatisneededtoenabletheprivatesectortopurchaselandanddevelopnewhousingunitsinthe downtownarea.Tofinancethisproject,Gorman&Companyisreinvestingitsnormallyearned developerandgeneralcontractorfeesbackintoprojectcostsaswellasrequestingadditionalcapital fundingfromtheCityofJacksonville.Becausemarketconditionsrequireadditionalfundingforthe constructionofLaVillaEnterpriseLofts,Gorman&CompanyisproposingtoacquireDevelopment Site1andDevelopmentSite2for$100,utilizingaPurchaseandSaleContract.Whenconstructed, weestimatethatourproposalswillgeneratesignificantpropertytaxesfortheCityofJacksonvilleon propertythatisnowtaxexempt.WeestimatethatthevalueofLaVillaEnterpriseLoftsunder ProposalAwouldgenerateanadditional$189,000inannualpropertytaxesfortheCityof JacksonvilleandforProposalB,thatamountwouldincreaseto$252,000.

ProposalAProforma,Sources&Uses
KeyAssumptions Incomeincrease Expenseincrease Vacancyrate Otherrevenue/unit/month Interestrateseniorloan Amortizationseniorloan Stabilizeddebtcoverageratio Investorservicesfee 1% 1% 7% 0 4.50% 40 1.20 $ 1 Tenantpaidrent 1,687,635 Otherrevenue 0 Potentialincome 1,687,635 Vacancyloss (118,134) Netincome 1,569,501 Operatingexpense 598,500 Replacementreserve 52,500 Netoperatingincome 918,501 1stloandebtservice Principal 129,617 Interest 635,898 Newloanbalance 14,060,383 Cashflowafter1stloan 152,985 Debtcoverageratio 1.200 Investorservicesfee 0 Cashflowafterfee 152,985 Deferreddevfeedebtservice Principal 0 Interest 0 Newloanbalance 0 CashflowafterdeferredfeeDS 152,985 2 1,704,511 0 1,704,511 (119,316) 1,585,196 604,485 53,025 927,686 135,572 629,944 13,924,811 162,170 1.212 0 162,170 0 0 0 162,170 141,800 623,716 13,783,011 171,447 1.224 0 171,447 0 0 0 171,447 610,530 53,555 936,962 148,314 617,201 13,634,697 180,816 1.236 0 180,816 0 0 0 180,816 3 1,721,556 0 1,721,556 (120,509) 1,601,048 616,635 54,091 946,332 155,128 610,388 13,479,569 190,280 1.249 0 190,280 0 0 0 190,280 4 1,738,772 0 1,738,772 (121,714) 1,617,058 622,802 54,632 955,795 5 1,756,160 0 1,756,160 (122,931) 1,633,229

ProposalBProforma,Sources&Uses
KeyAssumptions Incomeincrease Expenseincrease Vacancyrate Otherrevenue/unit/month Interestrateseniorloan Amortizationseniorloan Stabilizeddebtcoverageratio Investorservicesfee 1% 1% 7% 0 4.50% 40 1.20 2 2,272,682 0 2,272,682 (159,088) 2,113,594 805,980 70,700 1,236,914 180,715 839,703 18,561,508 216,496 1.212 0 216,496 0 0 0 216,496 189,017 831,401 18,372,491 228,865 1.224 0 228,865 0 0 0 228,865 814,040 71,407 1,249,283 197,700 822,718 18,174,791 241,358 1.237 0 241,358 0 0 0 241,358 3 2,295,409 0 2,295,409 (160,679) 2,134,730 822,180 72,121 1,261,776 206,782 813,635 17,968,009 253,976 1.249 0 253,976 0 0 0 253,976 4 2,318,363 0 2,318,363 (162,285) 2,156,077 830,402 72,842 1,274,394 5 2,341,546 0 2,341,546 (163,908) 2,177,638

$ 1 Tenantpaidrent 2,250,180 Otherrevenue 0 Potentialincome 2,250,180 Vacancyloss (157,513) Netincome 2,092,667 Operatingexpense 798,000 Replacementreserve 70,000 Netoperatingincome 1,224,667 1stloandebtservice Principal 172,777 Interest 847,640 Newloanbalance 18,742,223 Cashflowafter1stloan 204,250 Debtcoverageratio 1.200 Investorservicesfee 0 Cashflowafterfee 204,250 Deferreddevfeedebtservice Principal 0 Interest 0 Newloanbalance 0 CashflowafterdeferredfeeDS 204,250

(Proposal A)

(Proposal B)