Request for Proposals

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Clarissa Lucas
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1 E CONOMIC DEVELOPMENT AUTHORITY of the City of Norfolk Board of Directors Officers Robert E. Garris, Jr., Chairman Executive Director Michael W. Lee, Vice Chairman Peter Chapman Jeffrey F. Brooke Kim Brown Assistant Secretary-Treasurer B. Wayne Coleman Andrew Yancey Michael F. Cox Jaeson E. Dandalides Secretary-Treasurer Richard H. Ottinger Dawn Ryan W. Craig Reilly Ursula Rhodes Antonio L. Sisco August 5, 2016 Request for Proposals Immigrant Investor Regional Center Investment Manager I. Background The Economic Development Authority of the City of Norfolk (the Authority ) is distributing this Request for Proposals ( RFP ) to identify, and enter into a formal understanding with, an EB-5 Regional Center (the Investment Manager ) that is qualified to undertake and administer within the City of Norfolk, Virginia (the City ) the Employment Based Fifth federal visa program established under Section 203(b)(5) of the Immigration and Nationality Act ( INA ) (the EB-5 Program ). The Authority, with assistance from the Department of Development of the City (the Department of Development ) and in coordination with the Investment Manager, will identify projects that are aligned with local economic development objectives and support the development of target industries and neighborhoods within the City. Projects selected for EB-5 financing by the City and Investment Manager will meet the following criteria: 1. $25 million total project minimum. 2. Have commitments from conventional financial resources. 3. EB-5 funding will not compose more than 50% of the total capital stack. 4. Support local economic priorities that include support for brownfield projects, mixed income housing development, and under-developed neighborhood target areas. 5. Meet all USCIS job creation requirements. 6. Impose no financial obligations on the Authority or the City. II. Scope of Request This RFP seeks to identify an Investment Manager that owns and operates a United States Citizen and Immigration Services (USCIS) authorized EB-5 Regional Center qualified to manage local economic development projects within the City funded by EB-5 capital. The Investment Manager must manage the following responsibilities.

2 1. Project Development, Documentation - In cooperation with the Department of Development, identify project opportunities that meet the criteria set forth for City EB-5 projects. - Prepare, at no cost to the Authority or the City, all project documentation including without limitation project marketing material, Target Employment Area ( TEA ) eligibility documents, proforma income statements, management agreements, comprehensive business plans, economic impact analysis, and all project transactional documents such as investor subscription agreements and private placement memorandums. The Authority and the Department of Development shall have access to all such documentation. - At no cost to the Authority or the City, secure and manage the professional consultants required to prepare necessary project documentation including; business plan writers, escrow agents, economists, financial underwriters, securities and immigration counsel (identified under USCIS I-924). - In cooperation with the Department of Development, review final project documentation prior to USCIS submission of I-924 application materials. 2. Project Funds Management - Implement and manage a due diligence process in compliance with applicable regulations to establish how investors shall be required to identify all sources of capital; document that such investment was lawfully obtained and; screen potential investors for eligibility under all applicable regulations. - Collect and manage escrow funds in accordance with federal, state and local regulations. Manage the investments in compliance with the INA as well as Federal and Virginia securities laws. 3. Project Marketing, Investor Relations Management - Utilize appropriately licensed brokers for project marketing to potential immigrant investors and ensure that all representatives (of marketing firms) act in accordance with Federal and Virginia laws and the laws of the country in which an investor is a citizen. - In cooperation with the Department of Development, market City EB-5 projects to immigrant investors. Work with immigrant investor immigration counsel to coordinate the preparation and submission of Form I-526 petitions to the USCIS and provide evidence required for USCIS approval. - In cooperation with the Department of Development, review strategies for how the EB-5 Program can encourage the use of EB-5 financing to accelerate economic development and job creation in the City. In cooperation with the Department of Development, determine appropriate use of the City s name, emblems, and logos in any promotion materials. The Investment Manager will only use pre-approved content in its marketing materials. The Investment Manager will not be authorized to act on behalf of or represent itself as the Authority or the City. 4. Regional Center Administration, Federal Reporting and Securities Compliance - Maintain good standing and be up to date with all reporting requirements with the USCIS and the SEC. - For projects selected for EB-5 capital funding, structure investments so that they are in accordance with City, Virginia and Federal regulations. - Implement a compliance program in accordance with and responsive to USCIS regulations. Provide quarterly and annual portfolio reports and other reporting documentation within thirty days of request for immigrant investors and the Department of Development. - Prepare annual USCIS annual compliance reporting as well as required SEC and state or local securities filings. 2

3 - Maintain records of Federal filings and communications, statistics on filing, denials, appeals, and approvals; admission and conditional residence end dates of all investors; project expenditures and job data. - In coordination with the Department of Development, maintain relationships with project developers, monitor project progress, including expenditures and job creation. - Maintain regular communication with the Department of Development for project and investor oversight and status changes. - Maintain processes and ethical standards that protect the Authority, the City, the State of Virginia, immigrant investors and project developers. 5. Investor and Project Closeout - Prepare updated econometric analysis and other USCIS compliant project documents to verify project investment results. - Work with investor immigration counsel to coordinate the preparation and submission of Form I-829 petitions to the USCIS and provide evidence required for USCIS approval. - Work with project developers to ensure that USCIS compliant exit strategies are designed and implemented. Due to the complex technical and securities regulations associated with the EB-5 Program, proposals should demonstrate the Investment Manager s ability to effectively administer the EB-5 Program in the City and should also demonstrate a successful track record with projects funded through the EB-5 Program. Appropriate indemnifications shall be granted to the Authority and the City regarding the Investment Manager s administration of the EB-5 Program in the City. III. Evaluation Process and Criteria Proposals will be reviewed by a Selection Committee comprised of select members of the Authority and the City. Proposals will be evaluated and ranked according to the proposal criteria required in this RFP. Proposers may be requested to submit additional documentation or provide clarifications regarding their submitted proposals by the Selection Committee. Proposals will be evaluated by the proposal content requested below and the Department of Development may recommend to the Authority to make an award or reject all proposals. IV. Proposal Content Proposals that do not comply with instructions and do not provide the details requested in this Proposal Content section of this RFP will be disqualified. 1. Organizational Background Business Organization and History and EB-5 Regional Center Organization and History State the full name, physical address, address and phone and fax numbers of the Investment Management team. Provide a detailed history of the USCIS approved EB-5 regional center, including date of establishment and relevant I-924 Regional Center application materials. Executive Summary Provide a brief and concise overview of each section from the Proposal Content required. 2. Professionals- Investment Management Team Proposal respondents must employ a project team that is able to meet the requirements of this RFP. Identify the primary project and investment manager responsible for managing EB-5 projects 3

4 in the City. In addition to the primary manager, include the biographies and relevant professional history of core team members as well as consultants, vendors and sub-consultants that will support the scope of request detailed in this RFP. Describe how the core team communicates and engages with the consultant team. Provide an organizational structure for this team. Neither the Authority nor the City shall have any obligation to pay for any goods or services provided by the team. For core project team and consultants, submit a description of the team and consultants that possess significant and relevant experience in the following fields, including number of years directly involved with the EB-5 Program. In addition, list the past and current EB-5 regional centers and specific EB-5 projects that the team and consultants are affiliated with. 1. Economics and Finance 2. Securities Law 3. Immigration Law 4. International Marketing 5. Escrow Management 6. Capital Stack Development 7. Tax Credits 8. Federal Programs 9. Fluency in other Languages 10. Public-Private Partnerships 3. Investment Strategy and Marketing Describe how the Investment Manager will develop an EB-5 Program that promotes economic development in the City, collaborate with the Authority and the City and other stakeholders in realizing the objectives of the EB-5 Program and generate a marketing strategy that will attract vetted immigrant investors to projects in the City. 1. Provide your recommended structure and administration of collaboration between the Department of Development and Investment Management team. Explain how this will meet the responsibilities laid out in the Scope of Request. Describe the resources that the City would need to dedicate under the proposed structure. 2. Provide feedback on the project selection criteria, as outlined in the Background Section. Include your approach in evaluating and determining projects that are eligible for EB-5 funding. Include notes on whether you would propose modifications to such project eligibility criteria. 3. Describe the marketing structure to be implemented to attract immigrant investors to EB-5 projects in the City. Specify the marketing firms/consultants that you will work with. Provide a breakdown in the international investor markets they are active in. 4. Prior Experience Describe your organization s prior relevant experience with the EB-5 Program. Proposals should include details on project descriptions, costs and starting and completion dates of projects successfully completed; also include the name, physical address, address, and phone number of the responsible official of the client organization who may be contacted. 1. Background and experience administering an EB-5 regional center 2. Ability to attract, qualify and source immigrant investment by foreign investors seeking to participate in the program 3. Ability to successfully complete EB-5 projects 4. Familiarity with the development community in the City 5. Experience collaborating with government in public private partnerships Provide detailed responses in each of the following areas: 4

5 1. Experience with EB-5 compliance a. Provide a detailed narrative or flow chart showing how your organization has solicited investors, subscribed or engaged those investors and, addressed or complied with USCIS requirements in connection with the EB-5 Program process. b. Provide a detailed narrative or flow chart showing the standard immigration compliance process used for EB-5 Programs. 2. Experience in successfully marketing, attracting and executing investment on behalf of EB- 5 investors by responding to the following: a. Total number of I-924 applications filed, and the number approved by the USCIS including start and completion dates. b. Provide a list of secured investments and the related projects. c. Describe the investor markets targeted and marketing efforts used. d. Describe the process of identifying and securing EB-5 investors. 3. Methodology and structure for collaborating with the Department of Development. 4. Experience engaging and completing real estate development in the City. 5. Track record of success with the EB-5 Program. a. USCIS approved EB-5 Regional Center qualification documentation. b. EB-5 Programs completed and in progress, including the following: i. Amount of EB-5 capital raised for each project ii. Project industry/ type iii. Amount of time taken to raise money from EB-5 investors to fund the project iv. Amount of investment leveraged by EB-5 capital raised v. Details on job creation and economic impact vi. Investment returns to EB-5 investors vii. Background and country of origin of EB-5 investors viii. Financing structure c. Incomplete EB-5 projects and explanation of why the project did not succeed. d. Total Number of I-526 Petitions filed and number approved by USCIS. e. Total Number of I-829 Petitions filed and number approved by USCIS. f. Litigation arising out of any project relating to the financing, the investment return or the disclosure of the project s investment risks. V. Administrative Information 1. The issue date for this RFP is 08/05/ This RFP is issued by the Authority. 3. The contact for this RFP is Dawn Ryan. No other contacts within the Authority or the City regarding this RFP is allowed. 4. The pre-bid conference for this RFP will be held Wednesday 08/24/2016 at 1PM EST. Respondents interested in joining the pre-bid meeting must contact the designated point of contact by 08/23/2016 via for meeting details. 5. Questions regarding this RFP must be submitted to Dawn Ryan at dawn.ryan@norfolk.gov and are not accepted via telephone. The closing date for submitting all questions is 09/25/2016 at 5:00PM EST. 6. The deadline for submission of all proposals is 10/01/2016 at 5:00PM EST. 7. Interested respondents must submit their proposal in electronic PDF form to dawn.ryan@norfolk.gov. Proposals will not be accepted via fax. 8. By submitting its proposals, respondents acknowledge and agree that neither the Authority nor the City will not be liable for any costs, expenses, losses, damages or liabilities incurred 5

6 by the proposal respondent as a result of or arising out of, submitting qualifications, negotiating changes to subsequent proposals or due to the acceptance or non-acceptance of the submittal. 9. Proposals are property of the Authority and the City. VI. Deliverables and Milestones 1. Selection of an Investment Manager. 2. Execution of a Memorandum of Understanding between the Authority and the Investment Manager consistent with the scope and details of this RFP. 3. USCIS approval of EB-5 projects in the City (I-924). 4. USCIS approval of immigrant investors filings (I-526 & I-829) in cooperation with investors immigration counsel. 5. Secure and structure EB-5 investment for projects. 6. Project and investor management. 6

The Florida EB-5 Investments, LLC shall have a geographic scope which includes the entire State of Florida.

The Florida EB-5 Investments, LLC shall have a geographic scope which includes the entire State of Florida. U.S. Department of Homeland Security 24000 Avila Road, 2 nd Floor Laguna Niguel, CA 92677 u.s. Citizenship and Immigration Services July 15, 2010 Walter Cummins, Jr. Florida EB-5 Investments, lic 125 Spring